11–29–01 Thursday Vol. 66 No. 230 Nov. 29, 2001 Pages 59529–59672
VerDate 11-MAY-2000 19:00 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00001 Fmt 4710 Sfmt 4710 E:\FR\FM\29NOWS.LOC pfrm07 PsN: 29NOWS
1 II Federal Register / Vol. 66, No. 230 / Thursday, November 29, 2001
The FEDERAL REGISTER is published daily, Monday through SUBSCRIPTIONS AND COPIES Friday, except official holidays, by the Office of the Federal Register, National Archives and Records Administration, PUBLIC Washington, DC 20408, under the Federal Register Act (44 U.S.C. Subscriptions: Ch. 15) and the regulations of the Administrative Committee of Paper or fiche 202–512–1800 the Federal Register (1 CFR Ch. I). The Superintendent of Assistance with public subscriptions 512–1806 Documents, U.S. Government Printing Office, Washington, DC 20402 is the exclusive distributor of the official edition. General online information 202–512–1530; 1–888–293–6498 Single copies/back copies: The Federal Register provides a uniform system for making available to the public regulations and legal notices issued by Paper or fiche 512–1800 Federal agencies. These include Presidential proclamations and Assistance with public single copies 512–1803 Executive Orders, Federal agency documents having general FEDERAL AGENCIES applicability and legal effect, documents required to be published Subscriptions: by act of Congress, and other Federal agency documents of public interest. Paper or fiche 523–5243 Assistance with Federal agency subscriptions 523–5243 Documents are on file for public inspection in the Office of the Federal Register the day before they are published, unless the issuing agency requests earlier filing. For a list of documents currently on file for public inspection, see http://www.nara.gov/ What’s NEW! fedreg. Federal Register Table of Contents via e-mail The seal of the National Archives and Records Administration authenticates the Federal Register as the official serial publication Subscribe to FEDREGTOC, to receive the Federal Register Table of established under the Federal Register Act. Under 44 U.S.C. 1507, Contents in your e-mail every day. the contents of the Federal Register shall be judicially noticed. If you get the HTML version, you can click directly to any document The Federal Register is published in paper and on 24x microfiche. It is also available online at no charge as one of the databases in the issue. on GPO Access, a service of the U.S. Government Printing Office. To subscribe, go to http://listserv.access.gpo.gov and select: The online edition of the Federal Register is issued under the Online mailing list archives authority of the Administrative Committee of the Federal Register FEDREGTOC-L as the official legal equivalent of the paper and microfiche editions (44 U.S.C. 4101 and 1 CFR 5.10). It is updated by 6 a.m. each Join or leave the list day the Federal Register is published and it includes both text Then follow the instructions. and graphics from Volume 59, Number 1 (January 2, 1994) forward. GPO Access users can choose to retrieve online Federal Register documents as TEXT (ASCII text, graphics omitted), PDF (Adobe Portable Document Format, including full text and all graphics), or SUMMARY (abbreviated text) files. Users should carefully check retrieved material to ensure that documents were properly downloaded. On the World Wide Web, connect to the Federal Register at http:/ /www.access.gpo.gov/nara. Those without World Wide Web access can also connect with a local WAIS client, by Telnet to swais.access.gpo.gov, or by dialing (202) 512-1661 with a computer and modem. When using Telnet or modem, type swais, then log in as guest with no password. For more information about GPO Access, contact the GPO Access User Support Team by E-mail at [email protected]; by fax at (202) 512–1262; or call (202) 512–1530 or 1–888–293–6498 (toll free) between 7 a.m. and 5 p.m. Eastern time, Monday–Friday, except Federal holidays. The annual subscription price for the Federal Register paper edition is $699, or $764 for a combined Federal Register, Federal Register Index and List of CFR Sections Affected (LSA) subscription; the microfiche edition of the Federal Register including the Federal Register Index and LSA is $264. Six month subscriptions are available for one-half the annual rate. The charge for individual copies in paper form is $10.00 for each issue, or $10.00 for each group of pages as actually bound; or $2.00 for each issue in microfiche form. All prices include regular domestic postage and handling. International customers please add 25% for foreign handling. Remit check or money order, made payable to the Superintendent of Documents, or charge to your GPO Deposit Account, VISA, MasterCard or Discover. Mail to: New Orders, Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250–7954. There are no restrictions on the republication of material appearing in the Federal Register. How To Cite This Publication: Use the volume number and the page number. Example: 66 FR 12345.
.
VerDate 11-MAY-2000 19:00 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00002 Fmt 4710 Sfmt 4710 E:\FR\FM\29NOWS.LOC pfrm07 PsN: 29NOWS
2 III
Contents Federal Register Vol. 66, No. 230
Thursday, November 29, 2001
Agricultural Marketing Service Environmental Protection Agency PROPOSED RULES RULES Milk marketing orders: Air pollution control: Northeast et al.; extension of comment period, 59546 State operating permits programs— Vermont, 59535–59537 Air pollution control; locomotives and locomotive engines: Agriculture Department Equations, etc.; CFR correction See Agricultural Marketing Service Republication, 59602–59608 See Animal and Plant Health Inspection Service NOTICES See Forest Service Agency information collection activities: Submission for OMB review; comment request, 59589– Animal and Plant Health Inspection Service 59593 NOTICES 29661 Environmental statements; availability, etc.: Reports and guidance documents; availability, etc.: Veterinary services— Carcinogen Risk Assessment Guidelines, 59593–59594 Bison fetuses; disappearance rate, 59555–59556 Executive Office of the President Coast Guard See Presidential Documents RULES See Trade Representative, Office of United States Drawbridge operations: Washington, 59534–59535 Federal Aviation Administration RULES Air carrier certification and operations: Commerce Department Flightcrew compartment access and door designs See International Trade Administration Correction, 59611 See National Institute of Standards and Technology NOTICES See National Oceanic and Atmospheric Administration Meetings: See Technology Administration Aviation Rulemaking Advisory Committee; correction, 59600 Committee for the Implementation of Textile Agreements NOTICES Federal Deposit Insurance Corporation Cotton, wool, and man-made textiles: RULES Burma (Myanmar), 59576 Risk-based capital: Egypt, 59576–59577 Adequacy guidelines, maintenance, recourse treatment, India, 59577–59578 direct credit substitutes and residual interests in Korea, 59578–59580 asset securitizations, 59613–59667 Mexico, 59580–59581 Nepal, 59581 Federal Election Commission Oman, 59581–59582 NOTICES Qatar, 59582–59583 Meetings; Sunshine Act, 59595 Russia, 59583 Turkey; correction, 59602 Federal Energy Regulatory Commission NOTICES Comptroller of the Currency Electric rate and corporate regulation filings: RULES Blythe Energy, LLC, et al., 59586–59587 Risk-based capital: UtiliCorp United Inc. et al., 59587–59589 Adequacy guidelines, maintenance, recourse treatment, Applications, hearings, determinations, etc.: direct credit substitutes and residual interests in Florida Gas Transmission Co., 59584–59585 asset securitizations, 59613–59667 International Transmission Co., 59585–59586 NOTICES Agency information collection activities: Federal Housing Finance Board Submission for OMB review; comment request, 59600 NOTICES Meetings; Sunshine Act, 59595 Energy Department See Federal Energy Regulatory Commission Federal Reserve System NOTICES RULES Grants and cooperative agreements; availability, etc.: Risk-based capital: Development of Technologies and Capabilities for Adequacy guidelines, maintenance, recourse treatment, Developing Coal, Oil, and Gas Energy Resources, direct credit substitutes and residual interests in 59583–59584 asset securitizations, 59613–59667
VerDate 11
NOTICES International Trade Commission Federal Reserve Bank services: NOTICES Priced services and electronic connections; fee schedules Import investigations: and private sector adjustment factor; correction, Silicomanganese from— 59608–59611 India, Kazakhstan, and Venezuela, 59596–59597
Federal Retirement Thrift Investment Board National Aeronautics and Space Administration NOTICES NOTICES Meetings; Sunshine Act, 59595 Agency information collection activities: Proposed collection; comment request, 59597 Fish and Wildlife Service RULES National Highway Traffic Safety Administration Endangered and threatened species: PROPOSED RULES Carson wandering skipper, 59537–59545 Motor vehicle safety standards: PROPOSED RULES Child restraint systems— Endangered and threatened species: Labels and instructions; simplification; correction, Carson wandering skipper, 59550–59552 59549–59550
Food and Drug Administration National Institute of Standards and Technology NOTICES NOTICES Meetings: Inventions, Government-owned; availability for licensing, Antiviral Drugs Advisory Committee, 59595–59596 59573–59574
Forest Service National Oceanic and Atmospheric Administration NOTICES PROPOSED RULES Environmental statements; notice of intent: Fishery conservation and management: Hiawatha National Forest, MI, 59556–59558 Magnuson-Stevens Act provisions— Meetings: Domestic fisheries; exempted fishing permit North Central Idaho Resource Advisory Committee, applications, 59552–59554 59558 NOTICES Meetings: Health and Human Services Department Mid-Atlantic Fishery Management Council, 59574 See Food and Drug Administration New England Fishery Management Council, 59574–59575 Pacific Fishery Management Council, 59575 Interior Department See Fish and Wildlife Service Nuclear Regulatory Commission RULES Internal Revenue Service Spent nuclear fuel and high-level radioactive waste; NOTICES independent storage; licensing requirements: Meetings: Approved spent fuel storage casks; list, 59531–59534 Electronic Tax Administration Advisory Committee, PROPOSED RULES 59601 Production and utilization facilities; domestic licensing: Structures, systems, and components; risk-informed International Trade Administration treatment, 59546–59547 NOTICES Spent nuclear fuel and high-level radioactive waste; Antidumping: independent storage; licensing requirements: Circular welded carbon steel pipes and tubes from— Approved spent fuel storage casks; list, 59547–59548 NOTICES Taiwan, 59558–59559 Petitions; Director’s decisions: Fresh crawfish tail meat from— Entergy Nuclear Operations, Inc., 59597–59598 China, 59559 Hot-rolled carbon steel flat products from— China, 59561–59562 Office of United States Trade Representative Netherlands, 59565–59566 See Trade Representative, Office of United States Romania, 59566–59568 Taiwan, 59563–59565 Presidential Documents Thailand, 59562–59563 PROCLAMATIONS Ukraine, 59559–59561 Special observances: Stainless steel flanges from— National Family Week (Proc. 7506), 59529–59530 India, 59568 EXECUTIVE ORDERS Stainless steel sheet and strip in coils from— Government agencies and employees: Italy, 59568–59569 Central Intelligence Agency Retirement Act of 1964, Tapered roller bearings and parts, finished and waiver of dual compensation provisions (EO 13236), unfinished, from— 59669–59671 China, 59569–59573 Meetings: Public Health Service U.S. Automotive Parts Advisory Committee, 59573 See Food and Drug Administration
VerDate 11
Railroad Retirement Board Transportation Department PROPOSED RULES See Coast Guard Railroad Retirement Act: See Federal Aviation Administration Spouse application for annuity or lump sum filed See National Highway Traffic Safety Administration simultaneously with employee’s application for disability annuity, 59548–59549 Treasury Department See Comptroller of the Currency Securities and Exchange Commission See Internal Revenue Service NOTICES See Thrift Supervision Office Meetings; Sunshine Act, 59599 Applications, hearings, determinations, etc.: Spinnaker Industries, Inc., 59598–59599 Separate Parts In This Issue Technology Administration NOTICES Part II Senior Executive Service: Federal Deposit Insurance Corporation; Federal Reserve Performance Review Board; membership, 59575–59576 System; Treasury Department, Comptroller of the Currency; Treasury Department, Thrift Supervision Textile Agreements Implementation Committee Office, 59613–59667 See Committee for the Implementation of Textile Agreements Part III Executive Office of the President, Presidential Documents, Thrift Supervision Office 59669–59671 RULES Risk-based capital: Adequacy guidelines, maintenance, recourse treatment, Reader Aids direct credit substitutes and residual interests in Consult the Reader Aids section at the end of this issue for asset securitizations, 59613–59667 phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. Trade Representative, Office of United States To subscribe to the Federal Register Table of Contents NOTICES LISTSERV electronic mailing list, go to http:// Trade Policy Staff Committee: listserv.access.gpo.gov and select Online mailing list Steel imports; adjustment actions; comment request, archives, FEDREGTOC-L, Join or leave the list (or change 59599–59600 settings); then follow the instructions.
VerDate 11
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 Proclamations: 7506...... 59529 Executive Orders: 13236...... 59671 7 CFR Proposed Rules: 1000...... 59540 1001...... 59540 1005...... 59540 1006...... 59540 1007...... 59540 1030...... 59540 1032...... 59540 1033...... 59540 1124...... 59540 1126...... 59540 1131...... 59540 1135...... 59540 10 CFR 72...... 59531 Proposed Rules: 50...... 59540 72...... 59541 12 CFR 3...... 59614 208...... 59614 225...... 59614 325...... 59614 567...... 59614 14 CFR 121...... 59611 20 CFR Proposed Rules: 217...... 59542 33 CFR 117...... 59534 40 CFR 70...... 59535 92...... 59602 49 CFR Proposed Rules: 571...... 59543 50 CFR 17...... 59537 Proposed Rules: 17...... 59544 600 (2 documents) ...... 59546, 59547
VerDate 11-MAY-2000 19:01 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00001 Fmt 4711 Sfmt 4711 E:\FR\FM\29NOLS.LOC pfrm07 PsN: 29NOLS 59529
Federal Register Presidential Documents Vol. 66, No. 230
Thursday, November 29, 2001
Title 3— Proclamation 7506 of November 21, 2001
The President National Family Week, 2001
By the President of the United States of America
A Proclamation
American families are the bedrock of our society. They are the primary source of strength and health for both individuals and communities across our Nation. As we continue our recovery from the horrific acts committed by terrorists against the United States on September 11, our families provide us with a vital source of comfort and reassurance. Americans grieve with those who suffered the loss of a family member in the brutal and cowardly terrorist attacks. The September 11 tragedy has allowed America to see firsthand the profound bonds of love that characterize the American family. Parents, children, spouses, and siblings mourned their lost loved ones, cared for the injured, and prayed for protection and health for all Americans. In the midst of great loss, we saw great love flowing from the hearts of America’s families. My Administration is committed to strengthening the American family. Many one-parent families are also a source of comfort and reassurance, yet a family with a mom and dad who are committed to marriage and devote themselves to their children helps provide children a sound foundation for success. Government can support families by promoting policies that help strengthen the institution of marriage and help parents rear their chil- dren in positive and healthy environments. My proposed budget includes initiatives that encourage family cohesion. It provides over $60 million for grants that encourage responsible fatherhood. Grants would be awarded to groups that promote successful parenting and strong marriages and to faith-based and community organizations that help unemployed or low-income parents and their children avoid or leave welfare. This initiative will help spur new community-level approaches to aid low- income families. To strengthen States’ ability to promote child safety, stability, and well- being, my budget also proposes a substantial increase in funding for the Promoting Safe and Stable Families program. These additional resources will help States keep children with their biological families, when safe and appropriate, or place children with loving adoptive families. By under- taking more preventative efforts to help families in crisis, the prospects for children to live in a permanent home are enhanced. As we observe National Family Week, we must work to strengthen families in America as individuals and through Government and community-based organizations. This week serves to remind us of the values, security, and love that we give and receive in our families. NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim November 18 through November 24, 2001, as National Family Week. I invite the States, commu- nities, and people of the United States to join together in observing this day with appropriate ceremonies and activities to honor our Nation’s families.
VerDate 11
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-first day of November, in the year of our Lord two thousand one, and of the Independence of the United States of America the two hundred and twenty- sixth. W
[FR Doc. 01–29809 Filed 11–28–01; 8:45 am] Billing code 3195–01–P
VerDate 11
Rules and Regulations Federal Register Vol. 66, No. 230
Thursday, November 29, 2001
This section of the FEDERAL REGISTER ADDRESSES: Submit comments to: Washington, DC 20555–0001, telephone contains regulatory documents having general Secretary, U.S. Nuclear Regulatory (301) 415–8126, email [email protected]. applicability and legal effect, most of which Commission, Washington, DC 20555– FOR FURTHER INFORMATION CONTACT: are keyed to and codified in the Code of 0001, Attn: Rulemakings and Merri Horn, telephone (301) 415–8126, Federal Regulations, which is published under Adjudications Staff. Deliver comments 50 titles pursuant to 44 U.S.C. 1510. e-mail [email protected], of the Office of to 11555 Rockville Pike, Rockville, MD, Nuclear Material Safety and Safeguards, The Code of Federal Regulations is sold by between 7:30 a.m. and 4:15 p.m. on U.S. Nuclear Regulatory Commission, the Superintendent of Documents. Prices of Federal workdays. Washington, DC 20555–0001. new books are listed in the first FEDERAL Certain documents related to this SUPPLEMENTARY INFORMATION: REGISTER issue of each week. rulemaking, as well as all public comments received on this rulemaking, Background may be viewed and downloaded Section 218(a) of the Nuclear Waste NUCLEAR REGULATORY electronically via the NRC’s rulemaking Policy Act of 1982, as amended COMMISSION website at http://ruleforum.llnl.gov. You (NWPA), requires that ‘‘[t]he Secretary 10 CFR Part 72 may also provide comments via this [of the Department of Energy (DOE)] website by uploading comments as files shall establish a demonstration program, RIN 3150–AG 88 (any format) if your web browser in cooperation with the private sector, supports that function. For information for the dry storage of spent nuclear fuel List of Approved Spent Fuel Storage about the interactive rulemaking site, at civilian nuclear power reactor sites, Casks: Standardized NUHOMS–24P, contact Ms. Carol Gallagher, (301) 415– with the objective of establishing one or –52B, and –61BT Revision 5905; e-mail [email protected]. more technologies that the [Nuclear Certain documents related to this rule, Regulatory] Commission may, by rule, AGENCY: Nuclear Regulatory approve for use at the sites of civilian Commission. including comments received by the NRC, may be examined at the NRC nuclear power reactors without, to the ACTION: Direct final rule. Public Document Room, 11555 maximum extent practicable, the need Rockville Pike, Rockville, MD. For more for additional site-specific approvals by SUMMARY: The Nuclear Regulatory the Commission.’’ Section 133 of the Commission (NRC) is amending its information, contact the NRC Public Document Room (PDR) Reference staff NWPA states, in part, that ‘‘[t]he regulations revising the Transnuclear Commission shall, by rule, establish West, Inc. Standardized NUHOMS– at 1–800–397–4209, 301–415–4737 or by email to [email protected]. procedures for the licensing of any 24P, –52B, and –61BT cask system technology approved by the listing within the ‘‘List of Approved Documents created or received at the Commission under section 218(a) for Spent Fuel Storage Casks’’ to include NRC after November 1, 1999, are also use at the site of any civilian nuclear Amendment No. 4 to Certificate of available electronically at the NRC’s power reactor.’’ Compliance (CoC) No. 1004. Public Electronic Reading Room on the To implement this mandate, the NRC Amendment No. 4 will allow the storage Internet at http://www.nrc.gov/NRC/ approved dry storage of spent nuclear of low burn-up spent fuel in the ADAMS/index.html. From this site, the fuel in NRC-approved casks under a NUHOMS –24P canister. In addition, public can gain entry into the NRC’s general license by publishing a final the Technical Specifications (TS) will Agencywide Documents Access and rule in 10 CFR part 72 entitled, ‘‘General be revised to correct administrative Management System (ADAMS), which License for Storage of Spent Fuel at errors regarding the width dimension of provides text and image files of NRC’s Power Reactor Sites’’ (55 FR 29181; July the spent fuel. Specific changes will be public documents. An electronic copy 18, 1990). This rule also established a made to TS 1.2.1 and 1.2.15, Tables 1– of the proposed CoC and preliminary new subpart L within 10 CFR part 72, 1a, 1–1b, 1–1c, 1–1d, 1–2a, and 1–2c, safety evaluation report (SER) can be entitled ‘‘Approval of Spent Fuel and Figure 1–1. The CoC will be revised found under ADAMS Accession No. Storage Casks’’ containing procedures to change the certificate holder from ML012620237. If you do not have access and criteria for obtaining NRC approval Transnuclear West, Inc. to Transnuclear to ADAMS or if there are problems in of spent fuel storage cask designs. The Inc. Minor editorial changes will also be accessing the documents located in NRC subsequently issued a final rule on made to the CoC. ADAMS, contact the NRC PDR December 22, 1994 (59 FR 65920), that DATES: The final rule is effective Reference staff at 1–800–397–4209, 301– approved the Standardized February 12, 2002, unless significant 415–4737or by e-mail to [email protected]. NUHOMSTM–24P and –52B cask design adverse comments are received by CoC No. 1004, the revised Technical and added it to the list of NRC-approved December 31, 2001. A significant Specifications, the underlying Safety cask designs in § 72.214 as Certificate of adverse comment is a comment where Evaluation Report for Amendment No. Compliance Number (CoC No.) 1004. the commenter explains why the rule 4, and the Environmental Assessment, Amendment No. 3 added the –61BT dry would be inappropriate, including are available for inspection at the NRC storage canister to the system. challenges to the rule’s underlying Public Document Room, 11555 premise or approach, or would be Rockville Pike, Rockville, MD. Single Discussion ineffective or unacceptable without a copies of these documents may be On February 23, 2001, and as change. If the rule is withdrawn, timely obtained from Merri Horn, Office of supplemented on June 8, and October 4, notice will be published in the Federal Nuclear Material Safety and Safeguards, 2001, the certificate holder Register. U.S. Nuclear Regulatory Commission, (Transnuclear West, Inc.) submitted an
VerDate 11
application to the NRC to amend CoC Procedural Background Agreement State Programs’’ approved by No. 1004 to permit a part 72 licensee to This rule is limited to the changes the Commission on June 30, 1997, and allow the storage of low burn-up spent contained in Amendment 4 to CoC No. published in the Federal Register on fuel in the NUHOMS –24P canister. In 1004 and does not include other aspects September 3, 1997 (62 FR 46517), this addition, the Technical Specifications of the Standardized NUHOMS–24P, rule is classified as compatibility (TS) will be revised to correct –52B, and –61BT cask system design. Category ‘‘NRC.’’ Compatibility is not administrative errors regarding the The NRC is using the ‘‘direct final rule required for Category ‘‘NRC’’ width dimension of the spent fuel. procedure’’ to issue this amendment regulations. The NRC program elements Specific changes will be made to TS because it represents a limited and in this category are those that relate 1.2.1 and 1.2.15, Tables 1–1a, 1–1b, 1– routine change to an existing CoC that directly to areas of regulation reserved 1c, 1–1d, 1–2a, and 1–2c, and Figure 1– is expected to be noncontroversial. to the NRC by the Atomic Energy Act of 1. The Certificate of Compliance will be Adequate protection of public health 1954, as amended (AEA) or the provisions of the Title 10 of the Code of revised to change the certificate holder and safety continues to be ensured. The Federal Regulations. Although an from Transnuclear West, Inc. to amendment to the rule will become effective on February 12, 2002. Agreement State may not adopt program Transnuclear Inc. Minor editorial elements reserved to NRC, it may wish changes will also be made to the CoC. However, if the NRC receives significant adverse comments by December 31, to inform its licensees of certain No other changes to the Standardized requirements via a mechanism that is NUHOMS–24P, –52B, and –61BT cask 2001, then the NRC will publish a document that withdraws this action consistent with the particular State’s system design were requested in this administrative procedure laws, but does application. The NRC staff performed a and will address the comments received in response to the proposed not confer regulatory authority on the detailed safety evaluation of the amendments published elsewhere in State. proposed CoC amendment request and this issue of the Federal Register. A Plain Language found that an acceptable safety margin significant adverse comment is a The Presidential Memorandum dated is maintained. In addition, the NRC staff comment where the commenter June 1, 1998, entitled, ‘‘Plain Language has determined that there is still explains why the rule would be in Government Writing’’ directed that reasonable assurance that public health inappropriate, including challenges to the Government’s writing be in plain and safety and the environment will be the rule’s underlying premise or language. The NRC requests comments adequately protected. approach, or would be ineffective or on this direct final rule specifically with This direct final rule revises the unacceptable without a change. A comment is adverse and significant if: respect to the clarity and effectiveness Standardized NUHOMS –24P, –52B, of the language used. Comments should and –61BT cask design listing in (1) The comment opposes the rule and provides a reason sufficient to require a be sent to the address listed under the § 72.214 by adding Amendment No. 4 to heading ADDRESSES above. CoC No. 1004. This amendment will substantive response in a notice-and- allow the storage of low burn-up spent comment process. For example, in a Voluntary Consensus Standards fuel in the NUHOMS–24P canister. In substantive response: (a) The comment causes the NRC staff The National Technology Transfer Act addition, the TS will be revised to to reevaluate (or reconsider) its position of 1995 (Pub. L. 104–113) requires that correct administrative errors regarding or conduct additional analysis; Federal agencies use technical standards the width dimension of the spent fuel. (b) The comment raises an issue that are developed or adopted by Specific changes will be made to TS serious enough to warrant a substantive voluntary consensus standards bodies 1.2.1 and 1.2.15, Tables 1–1a, 1–1b, 1– response to clarify or complete the unless the use of such a standard is 1c, 1–1d, 1–2a, and 1–2c, and Figure 1– record; or inconsistent with applicable law or 1. The CoC will be revised to change the (c) The comment raises a relevant otherwise impractical. In this direct certificate holder from Transnuclear issue that was not previously addressed final rule, the NRC would revise the West, Inc. to Transnuclear Inc. Minor or considered by the NRC staff. Standardized NUHOMS –24P, –52B, editorial changes will also be made to (2) The comment proposes a change and –61BT cask system design listed in the CoC. or an addition to the rule, and it is § 72.214 (List of NRC-approved spent apparent that the rule would be fuel storage cask designs). This action The amended Standardized does not constitute the establishment of NUHOMS–24P, –52B, and –61BT cask ineffective or unacceptable without incorporation of the change or addition. a standard that establishes generally system, when used in accordance with (3) The comment causes the NRC staff applicable requirements. the conditions specified in the CoC, the to make a change to the CoC or TS. Finding of No Significant Technical Specifications, and NRC These comments will be addressed in Environmental Impact: Availability regulations, will meet the requirements a subsequent final rule. The NRC will of part 72; thus, adequate protection of not initiate a second comment period on Under the National Environmental public health and safety and this action. However, if the NRC Policy Act of 1969, as amended, and the environment will continue to be receives significant adverse comments NRC regulations in subpart A of 10 CFR ensured. by December 31, 2001, then the NRC part 51, the NRC has determined that this rule, if adopted, would not be a Discussion of Amendments by Section will publish a document that withdraws this action and will address the major Federal action significantly Section 72.214 List of Approved Spent comments received in response to the affecting the quality of the human Fuel Storage Casks proposed amendments published environment and, therefore, an elsewhere in this issue of the Federal environmental impact statement is not Certificate No.1004 is revised by Register. required. The rule would amend the adding the effective date of Amendment CoC for the Standardized NUHOMS– No. 4 and changing the applicant name Agreement State Compatibility 24P, –52B, and –61BT cask system from Transnuclear West, Inc. to Under the ‘‘Policy Statement on within the list of approved spent fuel Transnuclear Inc. Adequacy and Compatibility of storage casks that power reactor
VerDate 11
licensees can use to store spent fuel at as supplemented on June 8, and October involve any provisions that would reactor sites under a general license. 4, 2001, the certificate holder impose backfits as defined. Therefore, a This amendment will allow the storage Transnuclear West, Inc.), submitted an backfit analysis is not required. of low burn-up spent fuel in the application to the NRC to amend CoC Small Business Regulatory Enforcement NUHOMS–24P canister. In addition, No. 1004 to permit a part 72 licensee to Fairness Act the TS will be revised to correct store low burn-up spent fuel in the administrative errors regarding the NUHOMS–24P canister. In addition, In accordance with the Small width dimension of the spent fuel. the TS will be revised to correct Business Regulatory Enforcement Specific changes will be made to TS administrative errors regarding the Fairness Act of 1996, the NRC has 1.2.1 and 1.2.15 and Tables 1–1a, 1–1b, width dimension of the spent fuel. determined that this action is not a 1–1c, 1–1d, 1–2a, and 1–2c, and Figure Specific changes will be made to TS major rule and has verified this 1–1. The CoC will be revised to change 1.2.1 and 1.2.15 and Tables 1–1a, 1–1b, determination with the Office of the certificate holder from Transnuclear 1–1c, 1–1d, 1–2a, and 1–2c, and Figure Information and Regulatory Affairs, West, Inc. to Transnuclear Inc. Minor 1–1. The CoC will be revised to change Office of Management and Budget. editorial changes will also be made to the certificate holder from Transnuclear List of Subjects In 10 CFR Part 72 the CoC. The environmental assessment West, Inc. to Transnuclear Inc. Minor and finding of no significant impact on editorial changes will also be made to Administrative practice and which this determination is based are the CoC. procedure, Criminal penalties, available for inspection at the NRC The alternative to this action is to Manpower training programs, Nuclear Public Document Room, 11555 withhold approval of this amended cask materials, Occupational safety and Rockville Pike, Rockville, MD. Single system design and issue an exemption health, Penalties, Radiation protection, copies of the environmental assessment to each general license. This alternative Reporting and recordkeeping and finding of no significant impact are would cost both the NRC and the requirements, Security measures, Spent available from Merri Horn, Office of utilities more time and money because fuel, Whistleblowing. Nuclear Material Safety and Safeguards, each utility would have to pursue an For the reasons set out in the U.S. Nuclear Regulatory Commission, exemption. preamble and under the authority of the Washington, DC 20555–0001, telephone Approval of the direct final rule will Atomic Energy Act of 1954, as amended; (301) 415–8126, email [email protected]. eliminate this problem and is consistent the Energy Reorganization Act of 1974, with previous NRC actions. Further, the as amended; and 5 U.S.C. 552 and 553; Paperwork Reduction Act Statement direct final rule will have no adverse the NRC is adopting the following This direct final rule does not contain effect on public health and safety. This amendments to 10 CFR part 72. a new or amended information direct final rule has no significant collection requirement subject to the identifiable impact or benefit on other PART 72—LICENSING Paperwork Reduction Act of 1995 (44 Government agencies. Based on this REQUIREMENTS FOR THE U.S.C. 3501 et seq.). Existing discussion of the benefits and impacts INDEPENDENT STORAGE OF SPENT requirements were approved by the of the alternatives, the NRC concludes NUCLEAR FUEL AND HIGH-LEVEL Office of Management and Budget, that the requirements of the direct final RADIOACTIVE WASTE Approval Number 3150–0132. rule are commensurate with the NRC’s 1. The authority citation for part 72 responsibilities for public health and Public Protection Notification continues to read as follows: safety and the environment and the If a means used to impose an common defense and security. No other Authority: Secs. 51, 53, 57, 62, 63, 65, 69, information collection does not display available alternative is believed to be as 81, 161, 182, 183, 184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, a currently valid OMB control number, satisfactory, and thus, this action is the NRC may not conduct or sponsor, 955, as amended, sec. 234, 83 Stat. 444, as recommended. amended (42 U.S.C. 2071, 2073, 2077, 2092, and a person is not required to respond Regulatory Flexibility Certification 2093, 2095, 2099, 2111, 2201, 2232, 2233, to, the information collection. 2234, 2236, 2237, 2238, 2282); sec. 274, Pub. In accordance with the Regulatory Regulatory Analysis L. 86–373, 73 Stat. 688, as amended (42 Flexibility Act of 1980 (5 U.S.C. 605(b)), U.S.C. 2021); sec. 201, as amended, 202, 206, On July 18, 1990 (55 FR 29181), the the NRC certifies that this rule will not, 88 Stat. 1242, as amended, 1244, 1246 (42 NRC issued an amendment to 10 CFR if issued, have a significant economic U.S.C. 5841, 5842, 5846); Pub. L. 95–601, sec. part 72 to provide for the storage of impact on a substantial number of small 10, 92 Stat. 2951 as amended by Pub. L. 102– spent nuclear fuel under a general entities. This direct final rule affects 486, sec. 7902, 106 Stat. 3123 (42 U.S.C. license in cask designs approved by the only the licensing and operation of 5851); sec. 102, Pub. L. 91–190, 83 Stat. 853 (42 U.S.C. 4332); secs. 131, 132, 133, 135, NRC. Any nuclear power reactor nuclear power plants, independent licensee can use NRC-approved cask 137, 141, Pub. L. 97–425, 96 Stat. 2229, 2230, spent fuel storage facilities, and 2232, 2241, sec. 148, Pub. L. 100–203, 101 designs to store spent nuclear fuel if it Transnuclear West, Inc. The companies Stat. 1330–235 (42 U.S.C. 10151, 10152, notifies the NRC in advance, spent fuel that own these plants do not fall within 10153, 10155, 10157, 10161, 10168). is stored under the conditions specified the scope of the definition of ‘‘small Section 72.44(g) also issued under secs. in the cask’s CoC, and the conditions of entities’’ set forth in the Regulatory 142(b) and 148(c), (d), Pub. L. 100–203, 101 the general license are met. A list of Flexibility Act or the Small Business Stat. 1330–232, 1330–236 (42 U.S.C. NRC-approved cask designs is contained Size Standards set out in regulations 10162(b), 10168(c),(d)). Section 72.46 also in § 72.214. On December 22, 1994 (59 issued by the Small Business issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239); sec. 134, Pub. L. 97–425, 96 Stat. 2230 FR 65920), the NRC issued an Administration at 13 CFR part 121. amendment to part 72 that approved the (42 U.S.C. 10154). Section 72.96(d) also Backfit Analysis issued under sec. 145(g), Pub. L. 100–203, Standardized NUHOMS –24P and –52B 101 Stat. 1330–235 (42 U.S.C. 10165(g)). cask design by adding it to the list of The NRC has determined that the Subpart J also issued under secs. 2(2), 2(15), NRC-approved cask designs in § 72.214. backfit rule (10 CFR 50.109 or 10 CFR 2(19), 117(a), 141(h), Pub. L. 97–425, 96 Stat. Amendment No. 3 added the –61BT 72.62) does not apply to this direct final 2202, 2203, 2204, 2222, 2244, (42 U.S.C. cask design. On February 23, 2001, and rule because this amendment does not 10101, 10137(a), 10161(h)). Subparts K and L
VerDate 11
are also issued under sec. 133, 98 Stat. 2230 Washington sport facilities, Seattle, WA routes with similar capacity around the (42 U.S.C. 10153) and sec. 218(a), 96 Stat. from November 12, 2001, through June bridge do not exist. 2252 (42 U.S.C. 10198). 9, 2002. Before and after games the traffic 2. In § 72.214, Certificate of DATES: This temporary final rule is becomes extremely dense. Normal Compliance 1004 is revised to read as effective from November 5, 2001, weekend traffic across the bridge is follows: through June 9, 2002. about 40,000 vehicles each day. Draw ADDRESSES: § 72.214 List of approved spent fuel Unless otherwise noted, openings would aggravate congestion. storage casks. documents referred to in this rule are Even on days without large public available for inspection and copying at events, an opening of this bascule on the * * * * * Commander (oan), Thirteenth Coast Certificate Number: 1004. weekend can queue traffic for a mile to Guard District, 915 Second Avenue, the north and a mile to the south. While Initial Certificate Effective Date: Seattle, Washington 98174–1067,room January 23, 1995. the Lake Washington Ship Canal does 3510 between 7:45 a.m. and 4:15 p.m., bear some commercial navigation Amendment Number 1 Effective Date: Monday through Friday, except federal April 27, 2000. beneath the Montlake Bridge, most of holidays. The Bridge Section of the Aids the draw openings are for sailboats. Amendment Number 2 Effective Date: to Navigation and Waterways September 5, 2000. Many of the tugs that operate on this Management Branch maintains the part of the canal are able to pass under Amendment Number 3 Effective Date: docket for this temporary final rule. September 12, 2001. the drawbridge in its closed position. FOR FURTHER INFORMATION CONTACT: Amendment Number 4 Effective Date: Austin Pratt, Chief, Bridge Section, Aids From September 2000 through February 12, 2002. February 2001 the bridge opened on SAR Submitted by: Transnuclear Inc. to Navigation and Waterways Management Branch, Telephone (206) average 8 times on Saturday and 8 times SAR Title: Final Safety Analysis on Sunday between the hours of 10 a.m. 220–7282. Report for the Standardized NUHOMS and 9 p.m. Since these are only the SUPPLEMENTARY INFORMATION: Horizontal Modular Storage System for bracketing hours of the football periods, Irradiated Nuclear Fuel. Regulatory Information the number of openings that would be Docket Number: 72–1004. We did not publish a notice of affected is actually less than 8 on Certificate Expiration Date: January proposed rulemaking (NPRM) for this average. In other words, the earliest start 23, 2015. regulation. Under 5 U.S.C. 553(b)(B), the of a closed period (10 a.m.) is not Model Number: Standardized Coast Guard finds that good cause exists utilized with the latest end time (9 p.m.) NUHOMS–24P, NUHOMS–52B, and for not publishing an NPRM. Under 33 The morning and afternoon closed NUHOMS–61BT. Code of Federal Regulations 117.37 the periods vary in duration but none is * * * * * District commander may authorize more than three hours. Therefore, the Dated at Rockville, Maryland, this 13th day closures for public interest concerns maximum daily affected period between of November, 2001. based on the necessity for the closures, 10 a.m. and 9 p.m. is 5.75 hours, not 11 For the Nuclear Regulatory Commission. the reasonableness of the times and hours. On average these public interest William D. Travers, dates, and the overall effect on closures would affect two or three Executive Director for Operations. navigation and users of the bridge. vessels at most. Most of the basketball [FR Doc. 01–29443 Filed 11–28–01; 8:45 am] The closed draw of the Montlake games are in the evening hours and Bridge across the Lake Washington Ship BILLING CODE 7590–01–P most of the closures for the basketball Canal, mile 5.2, at Seattle, Washington, games are only for one hour. These provides 48 feet of vertical clearance closures have been authorized for many above the mean regulated lake level of years and are known and expected by DEPARTMENT OF TRANSPORTATION Lake Washington for the central 100 feet many local boaters and members of the of the bascule span. The University of Coast Guard marine industry in Seattle. The Washington football stadium is located schedule has also been published in the on Montlake Boulevard about 300 yards 33 CFR Part 117 Local Notice to Mariners prior to the north of the Montlake Bridge. The first affected date so that vessel [CGD13–01–023] University of Washington and the operators may plan accordingly. Seattle Seahawks football teams use RIN 2115–AE47 Husky Stadium, which has a maximum This temporary final rule allows the seating capacity of 78,000. The indoor bridge to remain closed to navigation Drawbridge Operations Regulations; during times of heavy traffic before and Lake Washington Ship Canal, WA stadium for basketball games is located just north of Husky Stadium. The same after the football and basketball games at the University of Washington. AGENCY: Coast Guard, DOT. parking facilities are used for all games. ACTION: Temporary final rule. Furthermore, the emergency entrance to Regulatory Evaluation the University of Washington Hospital SUMMARY: The Coast Guard is is about the same distance north as This rule is not a ‘‘significant establishing a temporary final rule Husky Stadium on the opposite side of regulatory action’’ under section 3(f) of governing the operation of the dual Montlake Boulevard. The Montlake Executive Order 12866 and does not Montlake Drawbridge across the Lake Bridge provides the closest crossing of require an assessment of potential costs Washington Ship Canal, mile 5.2, at the Lake Washington Ship Canal for and benefits under section 6(a)(3) of that Seattle, Washington. This rule allows ambulances. The canal bisects Seattle Order. The Office of Management and the bridge operator to keep the bridge in from east to west. About 300 yards Budget has not reviewed it under that the closed-to-navigation position at south of the bridge, Montlake Boulevard Order. It is not ‘‘significant’’ under the certain times to accommodate vehicular has access to State Route 520, a major regulatory policies and procedures of traffic before and after football and east-west highway that connects to the Department of Transportation (DOT) basketball games at the University of Interstate 5 and 405. Practical alternate (44 FR 11040; February 26, 1979).
VerDate 11
Small Entities Children from Environmental Health 1. From November 5, 2001, until June Under the Regulatory Flexibility Act Risks and Safety Risks. This rule is not 9, 2002, § 117.1051(e) is amended by (5 U.S.C. 601–612), we have considered an economically significant rule and adding a new paragraph (e)(4) to read as whether this rule would have a does not create an environmental risk to follows: health or risk to safety that may significant economic impact on a § 117.1051 Lake Washington Ship Canal. substantial number of small entities. disproportionately affect children. * * * * * The term ‘‘small entities’’ comprises Environment (e)*** small businesses, not-for-profit The Coast Guard considered the (4) The Montlake bridge need not organizations that are independently environmental impact of this rule and open during the following dates and owned and operated and are not concluded that under figure 2–1 times: dominant in their fields, and paragraph (32)(e) of Commandant governmental jurisdictions with 12–Nov–01—9 p.m.–10 p.m. Instruction M16475.1D, this rule is 17–Nov–01—10 a.m.–12:45 p.m.; 3 populations of less than 50,000. The categorically excluded from further Coast Guard certifies under 5 U.S.C. p.m.–6 p.m. environmental documentation because 23–Nov–01—8 p.m.–9 p.m.; 10 p.m.–11 605(b) that this rule will not have a promulgation of changes to drawbridge p.m. significant economic impact on a regulation have been found to not have 24–Nov–01—3 p.m.–4 p.m.; 8 p.m.–9 substantial number of small entities. a significant effect on the environment. p.m. Collection of Information A writer ‘‘categorical Exclusion 24–Nov–01—10 p.m.–11 p.m. Determination’’ is not required for this This rule calls for no new collection 27–Nov–01—9 p.m.–10 p.m. temporary final rule. of information under the Paperwork 28–Nov–01—9 p.m.–10 p.m. Reduction Act of 1995 (44 U.S.C. 3501– Indian Tribal Governments 7–Dec–01—10:30 a.m.–1:15 p.m.; 3:30 3520). p.m.–6:30 p.m. This rule does not have tribal 7–Dec–01—10 p.m.–11 p.m. Federalism implications under Executive Order 9–Dec–01—5 p.m.–6 p.m. 13175, Consultation and Coordination A rule has implications for federalism 11–Dec–01—9:30 p.m.–10:30 p.m. with Indian Tribal Governments, under Executive Order 13132, 20–Dec–01—9:30 p.m.–10:30 p.m. because it does not have a substantial 21–Dec–01—9 p.m.–10 p.m. Federalism, if it has a substantial direct direct effect on one or more Indian effect on State or local governments and 26–Dec–01—10:45 a.m.–1:30 p.m.; 3:45 tribes, on the relationship between the p.m.–6:45 p.m. would either preempt State law or Federal Government and Indian tribes, impose a substantial direct cost of 27–Dec–01—9:30 p.m.–10:30 p.m. or on the distribution of power and 4–Jan–02—9 p.m.–10 p.m. compliance on them. We have analyzed responsibilities between the Federal 6–Jan–02—3 p.m.–4 p.m. this rule under that Order and have Government and Indian tribes. 10–Jan–02—9 p.m.–10 p.m. determined that it does not have 12–Jan–02—4 p.m.–5 p.m. Energy Effects implications for federalism. 17–Jan–02—9 p.m.–10 p.m. Unfunded Mandates Reform Act We have analyzed this rule under 24–Jan–02—9 p.m.–10 p.m. Executive Order 13211, Actions The Unfunded Mandates Reform Act 26–Jan–02—4 p.m.–5 p.m. Concerning Regulations That 7–Feb–02—9 p.m.–10 p.m. of 1995 (2 U.S.C. 1531–1538) requires Significantly Affect Energy Supply, Federal agencies to assess the effects of 9–Feb–02—3 p.m.–4 p.m. Distribution, or Use. We have 14–Feb–02—9 p.m.–10 p.m. their discretionary regulatory actions. In determined that it is not a ‘‘significant 16–Feb–02—7 p.m.–8 p.m. particular, the Act addresses actions energy action’’ under Executive Order 21–Feb–02—9 p.m.–10 p.m. that may result in the expenditure by a 12866 and is not likely to have a 23–Feb–02—3 p.m.–4 p.m. State, local, or tribal government, in the significant adverse effect on the supply, 28–Feb–02—9 p.m.–10 p.m. aggregate, or by the private sector of distribution, or use of energy. It has not 9–Jun–02—11 a.m.–2 p.m.; 4:30 p.m.–6 $100,000,000 or more in any one year. been designated by the Administrator of p.m. Though this rule will not result in such the Office of Information and Regulatory an expenditure, we do discuss the Dated: November 5, 2001. Affairs as a significant energy action. Erroll Brown, effects of this rule elsewhere in this Therefore, it does not require a preamble. Rear Admiral, U.S. Coast Guard, Commander, Statement of Energy Effects under Thirteenth Coast Guard, District. Taking of Private Property Executive Order 13211. [FR Doc. 01–29644 Filed 11–28–01; 8:45 am] This rule will not effect a taking of List of Subjects in 33 CFR Part 117 BILLING CODE 4910–15–P private property or otherwise have Bridges. taking implications under Executive Order 12630, Governmental Actions and Regulations ENVIRONMENTAL PROTECTION Interference with Constitutionally For the reasons set out in the AGENCY Protected Property Rights. preamble, the Coast Guard amends 33 Civil Justice Reform CFR part 117 as follows: 40 CFR Part 70 [VT–021–1224a; A–1–FRL–7110–2] This rule meets applicable standards PART 117—DRAWBRIDGE in sections 3(a) and 3(b)(2) of Executive OPERATION REGULATIONS Clean Air Act Final Approval of Order 12988, Civil Justice Reform, to Operating Permits Program; State of minimize litigation, eliminate 1. The authority citation for part 117 Vermont ambiguity, and reduce burden. continues to read as follows: Protection of Children Authority: 33 U. S. C. 499; 49 CFR 1.46; AGENCY: Environmental Protection 33 CFR 1.05–19g); section 117.255 also Agency (EPA). We have analyzed this rule under issued under the authority of Pub. L. 102– ACTION: Final rule. Executive Order 13045, Protection of 587, 106, Stat 5039
VerDate 11
SUMMARY: EPA is granting full approval effective under state law until program. The change from the interim to the Clean Air Act (Act), Operating November 29, 2001. Vermont state law approved program which substantially Permits Program of the State of Vermont provides that state regulations ‘‘take met the part 70 requirements, to the (program). Vermont submitted its effect fifteen days after adoption is fully approved program is relatively program for the purpose of complying complete.’’ V.S.A. t. section 845(d). This minor, in particular if compared to the with the Act’s directive that states waiting period has no effect on the changes between a state-established and develop programs to issue operating substance of the fully adopted state administered program and the federal permits to all major stationary sources regulation that EPA is approving, nor on program. and certain other stationary sources. EPA’s authority to sign this action III. Administrative Requirements EPA granted interim approval to approving the adopted program. Vermont’s initial operating permit Unlike the prior interim approval, this Under Executive Order 12866, program on October 2, 1996. On full approval has no expiration date. ‘‘Regulatory Planning and Review’’ (58 September 28, 2001, EPA proposed full However, the state may revise its FR 51735, October 4, 1993), this final approval of Vermont’s pending revised program as appropriate in the future by approval is not a ‘‘significant regulatory program, provided the state finalized following the procedures of 40 CFR action’’ and therefore is not subject to the sections of its proposed rules that 70.4(i). EPA may also exercise its review by the Office of Management and address EPA’s interim approval oversight authority under section 502(i) Budget. Under the Regulatory Flexibility conditions. On November 15, 2001, EPA of the Act to require changes to a state’s Act (5 U.S.C. 601 et seq.) the received Vermont’s adopted revisions to program consistent with the procedures Administrator certifies that this final its program. The Agency has determined of 40 CFR 70.10. approval will not have a significant economic impact on a substantial that Vermont has adequately addressed II. What Is the Effective Date of EPA’s all interim approval conditions as number of small entities because it Full Approval of the Vermont Title V merely approves state law as meeting described in EPA’s proposed approval. Program? DATES: This rule is effective on federal requirements and imposes no November 30, 2001 without further EPA is using the good cause exception additional requirements beyond those notice. under the Administrative Procedure Act imposed by state law. This rule does not (APA) to make the full approval of the contain any unfunded mandates and ADDRESSES: Copies of the documents state’s program effective on November does not significantly or uniquely affect relevant to this action are available for 30, 2001. In relevant part, the APA small governments, as described in the public inspection during normal provides that publication of ‘‘a Unfunded Mandates Reform Act of 1995 business hours, by appointment at the substantive rule shall be made not less (Pub. L. 104–4) because it approves pre- Office of Ecosystem Protection, U.S. than 30 days before its effective date, existing requirements under state law Environmental Protection Agency, EPA except—* * * (3) as otherwise and does not impose any additional New England Regional Office, One provided by the agency for good cause enforceable duties beyond that required Congress Street, 11th floor, Boston, MA. found and published with the rule.’’ 5 by state law. This rule also does not FOR FURTHER INFORMATION CONTACT: U.S.C. 553(d)(3). Section 553(b)(3)(B) of have tribal implications because it will Donald Dahl, (617) 918–1657. the APA provides that good cause may not have a substantial direct effect on SUPPLEMENTARY INFORMATION: be supported by an agency one or more Indian tribes, on the determination that a delay in the relationship between the federal I. What Is EPA Approving? effective date is impracticable, government and Indian tribes, or on the EPA is taking final action to approve unnecessary, or contrary to the public distribution of power and the changes Vermont made to its interest. EPA finds that it is necessary responsibilities between the federal regulations (Environmental Protection and in the public interest to make this government and Indian tribes, as Regulations, Air Pollution Control action effective sooner than 30 days specified by Executive Order 13175, Chapter V, Definitions and Subchapter following publication. In this case, EPA ‘‘Consultation and Coordination with X) regarding the state’s title V believes that it is in the public interest Indian Tribal Governments’’ (65 FR permitting program. The Agency is for the program to take effect before 67249, November 9, 2000). This rule granting full approval to Vermont’s title December 1, 2001. EPA’s interim also does not have Federalism V permitting program because Vermont approval of Vermont’s prior program implications because it will not have has made all the necessary changes to expires on December 1, 2001. In the substantial direct effects on the states, its program required by EPA’s interim absence of this full approval of on the relationship between the national approval. Details of the state changes Vermont’s amended program taking government and the states, or on the can be found in EPA’s proposed effect on November 30, the federal distribution of power and rulemaking, 66 FR 49577 (September 28, program under 40 CFR part 71 would responsibilities among the various 2001). EPA did not receive any automatically take effect in Vermont levels of government, as specified in comments on the proposed rulemaking. and would remain in place until the Executive Order 13132, ‘‘Federalism’’ In the final adoption, the state effective date of the fully-approved state (64 FR 43255, August 10, 1999). This legislative council made three minor program. EPA believes it is in the public rule merely approves existing changes to the proposed rule. These interest for sources, the public and the requirements under state law, and does changes that do not effect the substance state to avoid any gap in coverage of the not alter the relationship or the of the provisions EPA relied on when it state program, as such a gap could cause distribution of power and proposed to grant full approval to confusion regarding permitting responsibilities between the state and Vermont’s program. The exact changes obligations. Furthermore, a delay in the the federal government established in the state made can be found as part of effective date is unnecessary because the Clean Air Act. This final approval EPA’s public record. Vermont has been administering the also is not subject to Executive Order It should be noted that the state title V permit program for 5 years under 13045, ‘‘Protection of Children from regulation, although fully adopted on an interim approval. Through this Environmental Health Risks and Safety November 14, 2001, and submitted to action, EPA is approving a few revisions Risks’’ (62 FR 19885, April 23, 1997) or EPA on November 15, 2001, is not to the existing and currently operational Executive Order 13211, ‘‘Actions
VerDate 11
Concerning Regulations That extend the time within which a petition Endangered Species Act of 1973, as Significantly Affect Energy Supply, for judicial review may be filed, and amended (Act). The Carson wandering Distribution, or Use’’ (66 FR 28355 (May shall not postpone the effectiveness of skipper is currently known from only 22, 2001), because it is not a significant such rule or action. This action may not two populations, one in Washoe regulatory action under Executive Order be challenged later in proceedings to County, Nevada, and one in Lassen 12866. This action will not impose any enforce its requirements. (See section County, California. The subspecies is collection of information subject to the 307(b)(2).) found in grassland habitats on alkaline provisions of the Paperwork Reduction substrates. Act, 44 U.S.C. 3501 et seq., other than List of Subjects in 40 CFR Part 70 Extinction could occur from naturally those previously approved and assigned Environmental protection, occurring events or other threats due to OMB control number 2060–0243. For Administrative practice and procedure, the small, isolated nature of the additional information concerning these Air pollution control, Intergovernmental remaining populations of the Carson requirements, see 40 CFR part 70. An relations, Operating permits, Reporting wandering skipper. These threats agency may not conduct or sponsor, and and recordkeeping requirements. include habitat destruction, a person is not required to respond to, Dated: November 21, 2001. degradation, and fragmentation due to a collection of information unless it Robert W. Varney, agricultural practices (such as excessive displays a currently valid OMB control livestock grazing and wetland habitat Regional Administrator, EPA New England. number. modification), urban development, and In reviewing state operating permit Part 70, title 40 of the Code of Federal non-native plant invasion. Other threats programs submitted pursuant to title V Regulations is amended as follows: include collecting, livestock trampling, of the Clean Air Act, EPA will approve water exportation projects, road PART 70—[AMENDED] state programs provided that they meet construction, recreation, pesticide drift, the requirements of the Clean Air Act 1. The authority citation for part 70 and inadequate regulatory mechanisms. and EPA’s regulations codified at 40 continues to read as follows: We find these threats constitute CFR part 70. In this context, in the Authority: 42 U.S.C. 7401, et seq. immediate and significant risk to the absence of a prior existing requirement Carson wandering skipper. for the state to use voluntary consensus 2. Appendix A to part 70 is amended This emergency rule provides Federal standards (VCS), EPA has no authority by revising the entry for Vermont to protection pursuant to the Act for the to disapprove a state operating permit read as follows: Carson wandering skipper for a period program for failure to use VCS. It would of 240 days. A proposed rule to list the Appendix A to Part 70—Approval thus be inconsistent with applicable law Carson wandering skipper as Status of State and Local Operating for EPA, when it reviews an operating endangered is published concurrently Permits Programs permit program, to use VCS in place of with this emergency rule in this issue of a state program that otherwise satisfies * * * * * the Federal Register in the proposed the provisions of the Clean Air Act. Vermont rule section. Thus, the requirements of section 12(d) (a) Department of Environmental DATES: This emergency rule becomes of the National Technology Transfer and Conservation: submitted on April 28, 1995; immediately effective November 29, Advancement Act of 1995 (15 U.S.C. interim approval effective on November 1, 2001 and expires July 29, 2002. 272 note) do not apply. 1996; revised program submitted on ADDRESSES: The complete file for this The Congressional Review Act, 5 November 15, 2001; full approval effective emergency rule is available for U.S.C. 801 et seq., as added by the Small November 30, 2001. inspection, by appointment, during Business Regulatory Enforcement (b) [Reserved] normal business hours at the U.S. Fish Fairness Act of 1996, generally provides * * * * * and Wildlife Service, Nevada Fish and that before a rule may take effect, the [FR Doc. 01–29653 Filed 11–28–01; 8:45 am] Wildlife Office, 1340 Financial agency promulgating the rule must BILLING CODE 6560–50–P Boulevard, Suite 234, Reno, Nevada submit a rule report, which includes a copy of the rule, to each House of the 89502. FOR FURTHER INFORMATION CONTACT: Congress and to the Comptroller General DEPARTMENT OF THE INTERIOR of the United States. EPA will submit a Robert D. Williams, Field Supervisor, report containing this rule and other Fish and Wildlife Service Nevada Fish and Wildlife Office (see required information to the U.S. Senate, ADDRESSES section; telephone 775/861– the U.S. House of Representatives, and 50 CFR Part 17 6300; facsimile 775/861–6301), or the Comptroller General of the United Wayne White, Field Supervisor, States prior to publication of the rule in RIN 1018–AI18 Sacramento Fish and Wildlife Office, the Federal Register. A major rule 2800 Cottage Way, Room W–2605, cannot take effect until 60 days after it Endangered and Threatened Wildlife Sacramento, California 95825–1846 is published in the Federal Register. and Plants; Emergency Rule To List (telephone 916/414–6000; facsimile This action is not a ‘‘major rule’’ as the Carson Wandering Skipper as 916/414–6712). Endangered defined by 5 U.S.C. 804(2). This rule SUPPLEMENTARY INFORMATION: will be effective on November 30, 2001. AGENCY: Fish and Wildlife Service, Background Under section 307(b)(1) of the Clean Interior. Air Act, petitions for judicial review of ACTION: Emergency rule. The genus Pseudocopaeodes in the this action must be filed in the United family Hesperiidae and subfamily States Court of Appeals for the SUMMARY: We, the U.S. Fish and Hesperiinae (grass skippers) contains appropriate circuit by January 28, 2002. Wildlife Service (Service), exercise our only one species, Pseudocopaeodes Filing a petition for reconsideration by emergency authority to list the Carson eunus. Members of Hesperiidae are the Administrator of this final rule does wandering skipper (Pseudocopaeodes called skippers because of their not affect the finality of this rule for the eunus obscurus) in California and powerful flight. While their flight may purposes of judicial review nor does it Nevada as endangered under the be faster than other butterflies, they
VerDate 11
seldom fly far and few species migrate darkened veins (Austin and Emmel There are no data in the literature on (Scott 1986). 1998). the micro-habitat requirements of the The species Pseudocopaeodes eunus Carson wandering skipper females lay Carson wandering skipper (Brussard et consists of five subspecies. The Carson their cream-colored eggs on salt grass al. 1999). However, it is likely that wandering skipper (Pseudocopaeodes (Distichlis spicata var. stricta), the larval suitable larval habitat is related to the eunus obscurus) is locally distributed in host plant for the subspecies (Scott water table. Many salt grass areas are grassland habitats on alkaline substrates 1986). This is a common plant species inundated in the spring, and larvae do in eastern California and western in the saltbush-greasewood community not develop under water. During wet Nevada. Pseudocopaeodes eunus eunus of the intermountain west. Salt grass years, larval survival depends on salt is located in western desert areas of usually occurs where the water table is grass areas being above standing water. southern California; Pseudocopaeodes high enough to keep its roots saturated In dry years, survival is probably related eunus alinea is found in eastern desert for most of the year (West 1988, as cited to the timing of the host plant areas of southern California and in in Brussard et al. 1998). senescence (aging). Therefore, micro- southern Nevada; and P. eunus flavus is No other observations have been topographic variation (slight found in western and central Nevada made of the early life stages of the irregularities of a land surface) is (Brussard 2000). In 1998, what is Carson wandering skipper. However, probably important for larval survival believed to be an undescribed fifth the Carson wandering skipper’s life because it provides a greater variety of subspecies of P. eunus was found in cycle is likely similar to other species of appropriate habitat over time (Brussard Mono County, California. Efforts to Hesperiinae. Larvae (immature, et al. 1999). Since the few historic formally describe this fifth subspecies wingless, often worm-like form) of the collections of the Carson wandering are being conducted by Mr. George subfamily Hesperiinae live in silked-leaf skipper have been near hot springs, it is Austin of the Nevada State Museum and nests, and some species make their nests possible this subspecies may require the Historical Society in Las Vegas, Nevada partially underground. Larvae are higher water table or ground (Brussard 2000). Except for the Carson usually green or tan and have a dark temperatures associated with these areas wandering skipper, none of these other head and black collar. Pupae (Brussard et al. 1999) to provide the subspecies of P. eunus have common (intermediate stage between larvae and appropriate temperatures for successful names. adult) generally rest in the nest, and larval development (Brussard et al. The Carson wandering skipper was larvae generally hibernate (Scott 1986). 1999). Adult Carson wandering skippers collected in 1965 by Peter Herlan, Some larvae may be able to extend their require nectar for food. Few plants that Nevada State Museum, at a location period of diapause (period of dormancy) can serve as nectar sources grow in the north of U.S. Highway 50, Carson City, for more than one season depending on highly alkaline soils occupied by salt Nevada. It was first described by George the individual and environmental grass. For a salt grass area to be Austin and John Emmel (1998), based conditions (Dr. Peter Brussard, appropriate habitat for the Carson on 51 adult specimens. The body is University of Nevada, Reno, pers. wandering skipper, an appropriate tawny orange above except for a narrow comm., 2001). Carson wandering nectar source must be present and in uniform border and black veins near the skippers may differ from other bloom during the flight season. Plant border at the outer edge of the wing. The Pseudocopaeodes eunus in producing species known to be used by the Carson upper forewing and hindwing are only one brood per year during June to wandering skipper for nectar include a orange with darker smudging. The lower mid-July (Austin and Emmel 1998). The mustard (Thelypodium crispum), surface of the hindwings is pale creamy other subspecies produce a second racemose golden-weed (Pyrrocoma orange with two creamy rays extending brood in late July to late September racemosus), and slender birds-foot form the base of the wing to its margin. (Austin and Emmel 1998). Additional trefoil (Lotus tenuis) (Brussard et al. There may be dusky suffusions along research is needed to confirm that the 1999). If alkaline-tolerant plant species the wing veins (Howe 1975). Males tend Carson wandering skipper produces are not present, but there is a fresh- to average 13.1 millimeters (mm) (0.52 only one brood per year, however. water source to support alkaline- inches (in)) in size (ranging from 12.0– Little is known about the specific intolerant nectar sources adjacent to the 13.9 mm (0.47–0.55 in)). Females habitat requirements of the Carson larval host plant, the area may provide average 14.7 mm (0.58 in) in size, and wandering skipper beyond the suitable habitat (Brussard et al. 1999). range from 13.4–15.6 mm (0.53–0.61 in). similarities recognized among known No information is available on The female’s dorsum (upper surface) is locations of this subspecies. As a result, historic population numbers of the similar to the male’s but with heavier the habitat requirements stated could Carson wandering skipper. It is possible dusting on the discal (relating to a disk) apply to the species as a whole that a fairly large population of the area of the hindwing. The female’s (Brussard et al. 1999). Habitat subspecies occurred from the Carson venter (undersurface of the abdomen) is requirements for butterflies in general Hot Springs site to the Carson River. similar in appearance to the male’s. include: (1) Presence of a larval host Outflow from the springs likely The Carson wandering skipper can be plant; (2) appropriate thermal supported a water table high enough to distinguished from the other subspecies environment for larval development and support salt grass and a variety of nectar of Pseudocopaeodes eunus by a diapause, and adult mate location and sources. Urban development, water combination of several characteristics. oviposition (to lay eggs); and (3) a nectar diversions, and wetland manipulations The Carson wandering skipper is source (Brussard et al. 1999). Based on have eliminated most of the habitat type browner and less intensely orange on its commonalities of known, occupied in this area (Brussard 2000). dorsal surface (the insect’s back), with sites, suitable habitat for the Carson Likewise, it is possible that thicker black coloring along the veins, wandering skipper has the following appropriate habitat once existed for the outer margin, and on both basal characteristics: elevation of less than Carson wandering skipper between the surfaces; and it is duller, overall, with 1,524 meters (5,000 feet); located east of existing populations in Lassen County, an expanse of bright yellow and orange the Sierra Nevada; presence of salt grass; California, and Washoe County, Nevada ground color, especially on the ventral open areas near springs or water; and (P. Brussard, pers. comm., 2001). The surface, interrupted by broadly geothermal activity. population locations are approximately
VerDate 11
120 kilometers (km) (75 miles (mi)) Habitat changes resulting from drainage private property nectar site location, apart, and while the dispersal capability manipulations for residential and none were seen on the public lands. Salt of the Carson wandering skipper is commercial development are likely grass is abundant in this area but the unknown, it is unlikely that any current responsible for this possible extirpation attraction appears to be the nectar genetic exchange occurs between the (Brussard et al. 1999). Construction of a source, which is slender birds-foot two populations. Over time, the habitat freeway bypass will eliminate and trefoil. In 2001, searches were between the two populations has fragment the remaining habitat (5 ha (12 conducted to confirm the Carson become unsuitable and fragmented due ac)) of the Carson wandering skipper at wandering skipper’s presence. A few to agriculture and development, and the this site. sightings (three one day and four on two populations have become isolated An area just south of the Carson Hot another day) were observed on the from one another. The subspecies likely Springs site was also surveyed in 1997 private property nectar site, but again, represents a remnant of a more widely and 1998. Twelve hectares (ha) (30 acres none were observed on the nearby distributed complex of populations in (ac)) of potential habitat were present public lands (V. Rivers, pers. comm., the western Lahontan basin (Brussard et (Paul Frost, NDOT, in litt. 1998), 2001). al. 1999). however, no Carson wandering skippers In 1998, collections of four of the were found during the surveys Pseudocopaeodes eunus subspecies Population Sites (Brussard et al. 1999). Approximately 5 were made for a genetic study. In Historically, population locations ha (12 ac) of this potential habitat will addition to collections made of the included the type locality found near be impacted by the construction of the Carson wandering skipper at the the Carson Hot Springs in Carson City, Carson Highway 395 bypass (Alan Washoe County site (24) and the Lassen Douglas County, Nevada, and one other Jenne, Nevada Department of County site (25) by UNR researchers, site in Lassen County, California. When Transportation (NDOT), pers. comm., individuals of three other P. eunus described in Austin and Emmel (1998), 2001). subspecies (173) were also collected. specimens from two additional sites, Because of habitat degradation and Pseudocopaeodes eunus eunus Dechambean Hot Springs at Mono Lake fragmentation, the Carson wandering individuals were not collected due to and Hot Springs, Mono County, were skipper has probably been extirpated their scarcity. Genetic analysis was assigned, with uncertainty due to their from the Carson Hot Springs site. based on an analysis of allozyme (i.e., small numbers, to the Carson wandering Washoe County Site protein) variation (Brussard et al. 1999). skipper subspecies. Based on 1998 Levels of heterozygosity (genetic surveys (Brussard et al. 1999), these The nectar site in Washoe County variability) were low in all but two Mono County specimens would be more occurs on Bureau of Land Management populations of P. eunus, and the average appropriately assigned to the currently (BLM) administered lands and adjacent heterozygosity over the nine undescribed subspecies (George Austin, private lands. This nectar site is populations was also low. The low Nevada State Museum and Historical estimated to be about 10 to 12 ha (25 to levels of heterozygosity in many of the Society, pers. comm., 2001). 30 ac), with approximately half of the populations is likely due to repeated Surveys conducted in 1998 site occurring on BLM lands and half on extirpation events, recolonizations, and throughout potential, suitable habitat in private lands (Brussard et al. 1999). The population and genetic bottlenecks Nevada and California found two new nectar source at this site (racemose throughout the Holocene geologic nectar sites occupied by the Carson golden-weed) is abundant, as is salt period to present time (Brussard et al. wandering skipper. One site was located grass. A few Carson wandering skippers 1999). in Washoe County, Nevada, and the were seen approximately 1.6 km (1 mi) other site (two locations) was found in northeast of the nectar site. This Previous Federal Action Lassen County, California. The site in suggests the Carson wandering skipper On May 22, 1984, we published an Lassen County could be a rediscovery of may occur in small numbers elsewhere invertebrate wildlife Notice of Review the area where skippers were collected in the valley (Brussard et al. 1999). in the Federal Register (49 FR 21664) in the 1970s; however, the collection Surveys were not conducted in 1999 or designating Pseudocopaeodes eunus record is too vague to be certain (P. 2000 at this site. In 2001, searches of eunus as a category 2 candidate. Brussard, pers. comm., 2001). Despite this area were made to confirm the Category 2 candidates were those additional, more limited attempts at Carson wandering skipper’s presence. species for which we had information finding other populations in 2000 and Five individuals were found at the indicating that listing may be 2001, none have been found (P. nectar site on BLM lands; private lands appropriate, but for which additional Brussard, pers. comm., 2000; Rebecca were not searched (Virginia Rivers, information was needed to support the Niell, University of Nevada-Reno (UNR), Truckee Meadows Community College, preparation of a proposed rule. The pers. comm., 2001). pers. comm., 2001). population known as the Carson wandering skipper was included in P. Carson City, Douglas County Site Lassen County Site eunus eunus; however, in early 1995, The Carson City site was surveyed for The new site found in 1998 in Lassen we were informed by Mr. George Austin the Carson wandering skipper by the County, California, occurs on public that the Carson wandering skipper was UNR from 1997 to 2001. Only five lands (one location) managed by the a distinct subspecies, not yet described individuals (four males and one female) California Department of Fish and Game (G. Austin, pers. comm., 1995). On were observed during surveys in June (CDFG) and private lands (one location). February 28, 1996, the designation of 1997. One possible sighting of a Carson In 1998, two individuals were observed category 2 species as candidates for wandering skipper occurred at a project on the public lands, while several listing under the Act (61 FR 7596) was site in 1998 (Brussard et al. 1999). No individuals were observed at a nectar discontinued. individuals were observed at this site in site less than 2 ha (5 ac) in size on the Following an updated assessment of 1999 or in 2000 (P. Brussard, pers. private lands. UNR did not conduct the status of the Carson wandering comm., 2000). In 2001, searches were surveys at this site in 1999. Surveys skipper and its increased vulnerability again conducted with no individuals were conducted in 2000, and, while to threats in 1998, we included this observed (R. Niell, pers. comm., 2001). several individuals were seen on the taxon as a candidate species in the
VerDate 11
Notice of Review published in the Summary of Factors Affecting the cheatgrass (Bromus tectorum). Adjacent Federal Register on October 25, 1999 Species lands surrounding this site will (64 FR 57533). Section 4 of the Act and the continue to be developed for On November 10, 2000, we received regulations (50 CFR part 424) issued to commercial and residential use. a petition dated November 9, 2001, from The remaining habitat at the type implement the listing provisions of the Mr. Scott Hoffman Black, Executive locality will also be fragmented or Act set forth the procedures for adding Director, The Xerces Society, to destroyed by construction of a freeway species to the Federal list. We may emergency list the Carson wandering bypass and associated flood control determine that a species is endangered skipper as an endangered species facilities being planned by the NDOT. or threatened due to one or more of the throughout its range, and to designate The bypass was approved and the right- five factors described in section 4(a)(1) critical habitat concurrent with the of-way corridor was purchased several of the Act. These factors and their listing. We responded in a letter dated years ago. At the time, this was the only February 20, 2001, that we would not application to Carson wandering known site occupied by the Carson publish a petition finding for the Carson skipper are as follows. wandering skipper. The only suitable A. The present or threatened wandering skipper because it was nectar source available during the already listed as a candidate species in destruction, modification, or Carson wandering skipper’s flight the most recent Notice of Review (64 FR curtailment of its habitat or range. The season at this site was the native 57533). This meant that we had already primary cause of the decline of the mustard, Thelypodium crispum determined that its listing was Carson wandering skipper is loss of salt (Brussard et al. 1999). Construction of warranted. We indicated we would grass and wetland habitats from human the bypass began in 2000 and impacts continue to monitor the status of the activities, primarily agricultural uses to Carson wandering skipper habitat Carson wandering skipper, and if an and development. This includes habitat will likely occur in 2002 (Julie Ervin- emergency listing was warranted, we fragmentation, degradation, and loss Holoubek, NDOT, pers. comm., 2001). would act accordingly, or list the due to agricultural uses (such as The alignment will impact species when not precluded by higher livestock over-grazing and wetland approximately 2.4 ha (6 ac) of priorities. habitat modification), urban previously occupied habitat and about 8 In addition, the petitioner requested development, non-native plant invasion, ha (20 ac) of the potential habitat emergency listing of the entire species. road construction, water exportation remaining at both areas north and south We responded in our February 20, 2001, projects with their subsequent change in of U.S. 50 (P. Frost, in litt. 1998). letter to the petitioner that we did not water table levels and plant According to Brussard (2000) this will believe that an emergency situation composition, and recreation. Threats at leave inadequate habitat to support a existed at the time for the remaining each known or historic site are restored population. subspecies, other than the Carson discussed below. Habitat loss and modifications of the wandering skipper. Surveys for Carson City, Douglas County Site Carson City site have also occurred due Pseudocopaeodes eunus spp. were to the construction of a wetland conducted in 1998 throughout potential, Habitat at the original Carson City site mitigation area in the early 1990s to suitable habitat in Nevada and has been greatly modified over time, mitigate for wetlands lost approximately California (Brussard et al. 1999). Of the and most of it was destroyed by 0.8 km (0.5 mi) southwest of this site. 78 sites (48 new; 30 historic) visited, P. construction of a shopping center This site is located in a highly eunus spp. were found at 14 sites. Of (Brussard et al. 1999). Several years developed area, with recreational use by the 30 historic sites, P. eunus spp. were later, an extension of this population walkers and bikers in the remaining found at 8 sites. Seven areas (2 in was discovered north of the original open area. The U.S. Army Corps of Nevada; 5 in California) which were location (Brussard et al. 1999). The Engineers (Corps) issued a section 404 historic sites for this species were not current site includes about 10 ha (24.7 permit on March 10, 1993, for a visited. We conducted additional status ac) of known and potential Carson residential housing and golf course surveys in 2001 for these other wandering skipper habitat (P. Frost, in project, impacting about 2 ha (5 ac) of subspecies of P. eunus, and results of litt. 1998). Collections were made at this wetlands. Mitigation for these impacts these surveys are pending. These site from the late 1960s through the involved the creation of 9 ha (22 ac) of surveys will assist in more early 1990s, though population numbers intermittent, seasonal, and semi- appropriately determining their status. were small (Austin and Emmel 1998; permanent wetlands adjacent to the If our ongoing status review indicates a Brussard et al. 1999). In the 1990s, existing wetlands (Robert W. Junell, listing of the remaining subspecies is additional urban development further Corps, in litt. to Charles L. Macquarie, warranted, we will act accordingly. reduced the remaining habitat, and the Lumos and Associates, Inc. 1993; Lumos On August 28, 2001, the Service site is now completely surrounded by and Associates, Inc. 1993). To date, this reached an agreement with the Center development. Adult Carson wandering mitigation site has not met its objectives for Biological Diversity, Southern skippers have not been observed at this to provide high-value urban wetlands Appalachian Biodiversity Project, and location since 1997. and enhance wetland function (Nancy the California Native Plant Society to The Carson wandering skipper has Kang, Corps, in litt. to Dwight Millard, complete work on a number of species likely been extirpated from the Carson J.F. Bawden and Stanton Park proposed for listing. Under this City site due to development and habitat Development 2001). agreement, we will issue several final changes resulting from drainage listing decisions, propose a number of manipulations for residential and Washoe County Site other species for listing, and we will commercial development (Brussard et Threats at the Washoe County site review three species for emergency al. 1999). Not only has direct loss of include excessive livestock grazing and listing, including the Carson wandering habitat occurred, but adjacent trampling, residential development, skipper (Center for Biological Diversity, development appears to have also increased potential recreational use, et al. v. Norton, Civ. No. 01–2063 (JR) impacted the groundwater table, and the such as by off-road vehicles (ORV), a (D.D.C.), entered by the Court on salt grass community is being invaded proposed water export project, and October 2, 2001). with non-native, upland species such as impacts associated with pesticide drift.
VerDate 11
Current grazing practices on BLM- Lassen County Site 1996). The specialist trade differs from administered lands at the Washoe Threats at the Lassen County site both the live and decorative market in County site allow for a November to include the invasion of the non-native that it concentrates on rare and March grazing season. Although this plant species tall whitetop (Lepidium threatened species (U.S. Department of season of use avoids impacts to adult latifolium), and excessive livestock Justice 1993). In general, the rarer the Carson wandering skipper nectar grazing on host plants and trampling of species, the more valuable it is, and sources and salt grass during spring and larvae. A water development project, prices may exceed US $2,000 for rare summer, high livestock densities can affecting the ground water table, is also specimens (Morris et al. 1991). cause larval mortality through trampling of concern. Simply listing a species can result in during the winter. On adjacent private Whitetop, which was first noted in an increase in commercial or scientific lands, cattle densities and timing are not 2000, has encroached onto the nectar interest, both legal and illegal, which regulated, and cattle have access to site on private property and has become can threaten the species through nectar sources during the Carson established in patches of slender birds- unauthorized and uncontrolled wandering skipper’s flight season. foot trefoil, this site’s nectar source. collection for scientific and/or While the level of grazing on salt grass Whitetop is a perennial native to Europe commercial purposes. The listing of has not been measured at this site, cattle and Asia which grows in disturbed species as threatened or endangered readily utilize this dominant forage sites, wet areas, ditches, roadsides, and publicizes their rarity and may make species (Walt DeVaurs, BLM, pers. cropland. Spreading roots and them more susceptible to collection by comm., 2001). Residential development is occurring numerous seeds make this plant researchers or other interested parties. in the area surrounding the Washoe difficult to control (Stoddard et al. Even limited collection pressure on County site. Increases in domestic wells 1996). While visits during 2001 showed small populations can have adverse could impact the water table in the area, no further advancement of whitetop into impacts on their viability. resulting in changes to the salt grass the nectar site (V. Rivers, pers. comm., While there have been no studies on community in the valley. As this area 2001), the surrounding countryside, the impact of the removal of individuals becomes more populated, fragmentation including both public and private lands, from natural populations for this and degradation of the Carson is severely infested. Failure to control subspecies, it is possible that the Carson wandering skipper’s habitat is expected this invasive species could quickly wandering skipper has been adversely to increase through development and result in the loss of this small nectar affected. At the Carson City site, recreational activities. Also, public site. Depending on the control methods individuals of the Carson wandering lands will likely see additional used (herbicide treatments or skipper are known to have been recreational use as the area becomes mechanical means) and timing, efforts collected for personal butterfly more developed. to control this plant species could also collections during the late 1960s until The Nevada State Engineer’s Office impact the Carson wandering skipper the early 1990s, though populations recently approved change-in-use population and its habitat at this site. were small (Austin and Emmel 1998; applications (agricultural to municipal Cattle have access to the Lassen Brussard et al. 1999). From 1965 to and industrial use) (Hugh Ricci, Nevada County site; however, it is unknown at 1989, at least 86 males and 90 females Department of Conservation and Natural this time what management scenarios were collected during 7 different years Resources, Division of Water Resources, are being implemented. As at the by various collectors (Austin and in litt. 2001) for a private landowner Washoe County site, timing of use and Emmel 1998). During this time, this was plan to export water from this valley to densities of livestock can affect the the only known site on which Carson a neighboring one. This project will availability of nectar sources and larval wandering skipper occurred. The involve the collection of up to 2,900 survival. Carson wandering skipper is now acre-feet per year of surface and ground Additional potential threats include believed to have been extirpated from water through a system of ditches, attempts to export water from the area the site. While habitat degradation and natural channels, diversion structures, to other locations. In 1991, the Nevada loss have occurred at this site, collecting collection facilities, and recovery wells. State Engineer approved exportation of may have also contributed to this The recovered water will be treated and 13,000 acre-feet of groundwater per year extirpation. exported via pipeline to a neighboring from Honey Lake Valley, in Lassen and In 1998, Carson wandering skipper valley (Stantec Consulting, Inc. 2000). Washoe Counties to Lemmon and was collected at the Washoe County and Implementation of this project could Spanish Springs Valleys, Washoe Lassen County sites by UNR researchers result in the lowering of the water table County. In 1993, a draft Bedell Flat in the valley and loss of the salt grass Pipelines Rights-of-Way, Washoe for genetic analysis. Only males were community upon which the Carson County, Nevada Environmental Impact collected, and these were taken late in wandering skipper population at this Statement was prepared (BLM 1993). If the flight season to minimize impacts to site depends. In addition, the this project, or other similar projects, are the population (Brussard et al. 1999). construction of facilities could result in implemented, lowering of the water The two populations of Carson direct impacts to Carson wandering table could occur and result in changes wandering skipper that remain could skipper habitat in the valley. to the salt grass community upon which face strong pressure from collectors. Another potential threat is pesticide the Carson wandering skipper depends. Since the nectar sites occur along public drift from alfalfa fields located adjacent B. Over-utilization for commercial, roadsides, the subspecies is easily to the occupied nectar site. Pesticides recreational, scientific, or educational accessible, and the limited number and are used to control pests such as aphids, purposes. Rare butterflies and moths are distribution of these populations make cutworms, grasshoppers, and mites highly prized by collectors, and an this subspecies vulnerable to collectors. (Carpenter et al. 1998.). Pesticide drift international trade exists for insect Even limited collection from the small from these fields to the nectar site could specimens for both live and decorative populations of Carson wandering eliminate a large part of the Carson markets, as well as the specialist trade skipper could have deleterious effects wandering skipper population (Brussard that supplies hobbyists, collectors, and on its viability and lead to the eventual 2000). researchers (Morris et al. 1991; Williams extinction of this subspecies.
VerDate 11
C. Disease or predation. Disease is not skipper. Development of a conservation current regulations (Nevada Revised known to be a factor affecting this plan was one activity outlined by the Statutes 1999). subspecies at this time. agreement. UNR was contracted by E. Other natural or manmade factors Cattle grazing, as discussed under NDOT to prepare a draft conservation affecting its continued existence. This Factor A, is a threat to the species due plan, which was prepared by UNR in subspecies is highly susceptible to to grazing impacts to adult nectar 2000. Additional biological information extinction as a result of naturally sources and the larval host plant. and agency commitment are needed occurring stochastic (random or chance Livestock can also trample the salt grass, before this plan can be finalized. variables) environmental or causing direct mortality of diapausing However, since signing the CA in 1999, demographic events because the Carson larvae. Predation by other species, such BLM has designated 98 ha (243 ac) of wandering skipper occurs at only two as birds or insects, on larvae or adult their lands at the Washoe County site as known isolated locations and in small Carson wandering skippers is likely, but an Area of Critical Environmental numbers. These events may be wildfire, it is unknown how this may affect the Concern. This designation allows BLM increase in disease or predation, or population’s viability. discretion in determining actions which severe weather events such as flooding. D. The inadequacy of existing can occur within this area (BLM 2001). Additionally, random demographic regulatory mechanisms. The Carson However, these protections only cover a effects (e.g., skewed sex ratios) and loss wandering skipper occurs on Federal, portion of Carson wandering skipper of genetic variability may result in State, and private lands. Existing habitat in the area and are insufficient individuals and populations being less regulatory mechanisms do not fully to protect the species throughout the able to cope with environmental change, protect this subspecies or its habitats on site. and could cause the loss of one or both these lands. Existing regulatory of the populations. mechanisms that may provide some State Laws and Regulations In addition, the loss of habitat protection for the Carson wandering Although California State laws may compromises the ability of the Carson skipper include: (1) Federal laws and provide a measure of protection to the wandering skipper to disperse. regulations including the Clean Water subspecies, these laws are not adequate Populations remain isolated with no Act (CWA); and (2) State laws including to protect the Carson wandering skipper opportunity to migrate or recolonize if the California Environmental Quality and ensure its long-term survival. CEQA conditions become unfavorable. Act (CEQA). pertains to projects on non-Federal A wetlands mitigation bank is being lands and requires that a project established near the Lassen County site. Federal Laws and Regulations proponent publicly disclose the It is located adjacent to existing CDFG The Carson wandering skipper potential environmental impacts of lands. This parcel of land has been appears to be closely associated with proposed projects. Section 15065 of the recently grazed and farmed. The bank is wetland habitats. Current regulatory CEQA Guidelines requires a ‘‘finding of intended to create a minimum of 37 ha mechanisms, such as section 404 of the significance’’ if a project has the (92 ac) of emergent wetlands at this site CWA, have not precluded development potential to ‘‘reduce the number or to mitigate for wetland losses in and alteration of these habitats. Section restrict the range of a rare or endangered sagebrush scrub and juniper woodland 404 regulations require that applicants plant or animal’’ including those that habitats due to road construction in obtain a permit from the Corps for are eligible for listing under CESA. Lassen and Modoc counties, and the projects that place fill material into However, under CEQA, where eastern portion of Plumas County. This waters of the United States. Whether an overriding social and economic bank will be managed by CDFG individual or nationwide permit may be considerations can be demonstrated, a (California Department of required depends upon the activity and project may go forward despite Transportation (CalTrans) and CDFG the amount of fill proposed. Regulatory significant adverse impacts to a species. 1998). The site has not been surveyed mechanisms addressing alterations to The California Natural Diversity Data for the Carson wandering skipper, but stream channels, riparian areas, springs Base classifies the Carson wandering potential habitat exists. Depending upon and seeps from various activities such skipper as a S1S3 species, which the location of constructed wetlands, as agricultural activities, development, identifies this subspecies as one that is loss of Carson wandering skipper and road construction have been extremely endangered with a restricted habitat could occur. We will continue to inadequate to protect the Carson range within California (California work with CalTrans and CDFG wandering skipper habitat in Nevada Natural Diversity Data Base 2001). This regarding implementation of this bank and California. designation provides no legal protection in consideration of the Carson Until publication of this emergency in California. The CDFG is unable to wandering skipper. rule, we considered the Carson protect insects under its current wandering skipper a candidate species; regulations (Pete Bontadelli, CDFG, in Reasons for Emergency Determination this designation carries no formal litt. 1990). Under section 4(b)(7) of the Act, and Federal protection under the Act. In Nevada, there are no local or State regulations at 50 CFR 424.20, we must Some protection is afforded to the regulations protecting the Carson consider development of an emergency Carson wandering skipper on lands wandering skipper on State or non- rule to list a species if threats to the administered by the BLM at the Washoe Federal lands. The Nevada Natural species constitute an emergency posing County site due to their commitment to Heritage Program ranks the Carson significant risk to its continued survival. assist in the conservation of this wandering skipper as S1, meaning it is Such an emergency listing expires 240 subspecies through the Cooperative considered in the State of Nevada as days following publication in the Agreement (CA) signed in 1999. This critically imperiled due to extreme Federal Register unless, during the 240- CA was signed by the Service, NDOT, rarity, imminent threats, or biological day period, we list the species through the Federal Highway Administration factors (Nevada Natural Heritage our normal listing procedures. We (FHWA), and BLM in October 1999. It Program 2000). This designation discuss below the reasons why was developed to outline the actions provides no legal protection in Nevada. emergency listing of the Carson necessary for the conservation and The Nevada Division of Wildlife is wandering skipper as endangered is management of the Carson wandering unable to protect insects under its necessary. In accordance with the Act,
VerDate 11
we will withdraw this emergency rule Critical Habitat would aid our prudency analysis. When if, at any time after its publication, we Critical habitat is defined in section 3 a ‘‘not determinable’’ finding is made, determine that substantial evidence of the Act as the—(i) specific areas we must, within 2 years of the does not exist to warrant such a rule. within the geographical area occupied publication date of the original The immediate concerns for the by a species, at the time it is listed in proposed rule, designate critical habitat, Carson wandering skipper are accordance with the Act, on which are unless the designation is found to be not associated with the extremely small found those physical or biological prudent. number of populations, habitat We will protect the Carson wandering features (I) essential to the conservation fragmentation, and significant decrease skipper and its habitat through section of the species, and (II) that may require in its historical range in Nevada and 7 consultations to determine whether special management considerations or California. While historic population Federal actions are likely to jeopardize protection, and (ii) specific areas numbers are not known, current the continued existence of the outside the geographical area occupied population sizes at the two locations subspecies, through the recovery by the species at the time it is listed in appear small. As discussed in the process, through enforcement of take accordance with the provisions of Summary of Factors Affecting the prohibitions under section 9 of the Act, section 4 of the Act, upon a Species, a number of threats face the and through the section 10 process for subspecies. These include habitat determination by the Secretary that such activities on non-Federal lands with no destruction, degradation, and areas are essential for the conservation Federal nexus. fragmentation due to agricultural uses of the species. ‘‘Conservation’’ means Available Conservation Measures (such as excessive livestock grazing and the use of all methods and procedures wetland habitat modification), and non- needed to bring the species to the point Conservation measures provided to native plant invasion. Other immediate at which listing under the Act is no species listed as endangered or threats include impacts from collecting, longer necessary. threatened under the Act include livestock trampling, pesticide drift, and Section 4(a)(3) of the Act and recognition, development of recovery inadequate regulatory mechanisms. implementing regulations (50 CFR actions, requirements for Federal Another threat is the approved and 424.12) require that, to the maximum protection, and prohibitions against proposed water exportation projects. extent prudent and determinable, the certain activities. Recognition through These projects could severely impact Secretary of the Interior (Secretary) listing encourages conservation actions Carson wandering skipper habitat designate critical habitat at the time the by Federal, State, and local agencies, through lowering of the water table, and species is determined to be endangered private organizations, and individuals. degrading or eliminating the salt grass or threatened. Our implementing The Act provides for possible land community upon which the Carson regulations (50 CFR 424.12(a)) state that acquisition and cooperation with the wandering skipper depends. critical habitat is not determinable if States, and requires that recovery This subspecies is also vulnerable to information sufficient to perform the actions be carried out for listed species. chance environmental or demographic required analysis of impacts of the We discuss the protection required of events, to which small populations are designation is lacking, or if the Federal agencies, considerations for particularly vulnerable. The biological needs of the species are not protection and conservation actions, combination of only two populations, sufficiently well known to allow and the prohibitions against taking and small range, and restricted habitat identification of an area as critical harm for the Carson wandering skipper, makes the subspecies highly susceptible habitat. Section 4(b)(2) of the Act in part, below. to extinction or extirpation from a requires us to consider economic and Section 7(a) of the Act requires significant portion of its range due to other relevant impacts of designating a Federal agencies to evaluate their random events such as fire, drought, particular area as critical habitat on the actions with respect to any species that disease, or other occurrences (Shaffer basis of the best scientific data available. is proposed to be listed or is listed as 1981, 1987; Meffe and Carroll 1994). The Secretary may exclude any area endangered or threatened, and with Such events are not usually a concern from critical habitat if she determines respect to its critical habitat, if any is until the number of populations or that the benefits of such exclusion being designated. Federal agencies are geographic distribution become severely outweigh the conservation benefits, required to confer with us informally on limited, as is the case with the unless to do so would result in the any action that is likely to jeopardize subspecies discussed here. Once the extinction of the species. the continued existence of a proposed number of populations or the Because information relevant to the species, or result in destruction or population size is reduced, the remnant specific biological needs of the Carson adverse modification of proposed populations, or portions of populations, wandering skipper is not currently critical habitat. If a species is have a higher probability of extinction available, we are unable to adequately subsequently listed, section 7(a)(2) from random events (Primack 1993). perform the analysis required to requires Federal agencies to ensure that Because the Carson wandering designate critical habitat. Therefore, we activities they authorize, fund, or carry skipper remains at only two known find that critical habitat for the Carson out are not likely to jeopardize the locations, and because both locations wandering skipper is not determinable continued existence of such a species, are subject to various immediate, at this time. We are also concerned that or to destroy or adversely modify its ongoing, and future threats as outlined the designation of critical habitat could critical habitat. If a Federal agency above, we find that the Carson increase the degree of threat to the action may affect a listed species or its wandering skipper is in imminent species through collecting or from critical habitat, the responsible Federal danger of extinction throughout all or a intentional habitat degradation. In the agency must enter into consultation significant portion of its range and Public Comments Solicited portion of with us. Federal agency actions that warrants immediate protection under the proposed rule published may require consultation include, but the Act. Emergency listing the Carson concurrently with this emergency rule, are not limited to, those within the wandering skipper as endangered will we specifically solicit information on jurisdictions of the Service, BLM, Corps, increase the regulatory protections and potential critical habitat, biological FHWA, and Natural Resources resources available to the subspecies. information, and information that Conservation Service.
VerDate 11
We believe that protection and from the Corps under section 404 of the emergency listing rule in the Federal recovery of the Carson wandering CWA. The Corps is required to consult Register; skipper will require reduction of the on permit applications they receive for (2) Any actions that may affect the threats from habitat destruction, projects that may affect listed species. Carson wandering skipper that are degradation, and loss of salt grass and Highway construction and maintenance authorized, funded or carried out by a wetland habitats due to excessive projects that receive funding from the Federal agency when the action is livestock grazing, development, water FHWA would be subject to review conducted in accordance with the exportation projects, non-native plant under section 7 of the Act. Activities consultation requirements for listed invasion, and road construction. Threats authorized under the Natural Resources species pursuant to section 7 of the Act; from collection, livestock trampling, Conservation Service’s Emergency (3) Any action taken for scientific pesticide drift, and recreation must also Watershed Protection program, such as research carried out under a recovery be reduced. These threats should be fire rehabilitation projects, would also permit issued by the Service pursuant to considered when management actions be subject to section 7 review. In section 10(a)(1)(A) of the Act; and are taken in habitats currently and addition, activities that are authorized, (4) Land actions or management potentially occupied by the Carson funded, or administered by Federal carried out under a habitat conservation wandering skipper, and areas deemed agencies on non-Federal lands will be plan approved by the Service pursuant important for dispersal, and subject to section 7 review. to section 10(a)(1)(B) of the Act, or an connectivity or corridors between The Act and implementing approved conservation agreement. Activities that we believe could known locations of this subspecies. regulations found at 50 CFR 17.21 set potentially result in a violation of Monitoring should also be undertaken forth a series of general prohibitions and section 9 include, but are not limited to: for any management actions or scientific exceptions that apply to all endangered (1) Unauthorized possession, investigations designed to address these wildlife. These prohibitions, codified at trapping, handling, or collecting of threats or their impacts. 50 CFR 17.21, in part, make it illegal for Carson wandering skipper. Research Listing the Carson wandering skipper any person subject to the jurisdiction of efforts involving these activities will provides for the development and the United States to take (includes require a permit under section implementation of a recovery plan for harass, harm, pursue, hunt, shoot, the subspecies. This plan will bring 10(a)(1)(A) of the Act; wound, kill, trap, capture, or collect; or (2) Possession, sale, delivery, carriage, together Federal, State, and regional attempt any such conduct), import or agency efforts for conservation of the transportation, or shipment of illegally export, transport in interstate or foreign taken Carson wandering skipper; subspecies. A recovery plan will commerce in the course of commercial establish a framework for agencies to (3) Activities authorized, funded, or activity, or sell or offer for sale in carried out by Federal agencies that may coordinate their recovery efforts. The interstate or foreign commerce any plan will set recovery priorities and affect the Carson wandering skipper, or listed species. It is also illegal to its habitat, when such activities are not estimate the costs of the tasks necessary possess, sell, deliver, carry, transport, or to accomplish the priorities. It will also conducted in accordance with the ship any such wildlife that has been describe the site-specific management consultation requirements for listed taken illegally. Certain exceptions apply actions necessary to achieve species under section 7 of the Act; and to our agents and State conservation conservation and survival of the (4) Activities (e.g., habitat conversion, agencies. subspecies. excessive livestock grazing, farming, Listing will also require us to review Permits may be issued to carry out road and trail construction, water any actions that may affect the Carson otherwise prohibited activities development, recreation, development, wandering skipper for lands and involving endangered wildlife under and unauthorized application of activities under Federal jurisdiction, certain circumstances. Regulations herbicides and pesticides in violation of State plans developed pursuant to governing permits are codified at 50 label restrictions) that directly or section 6 of the Act, scientific CFR 17.22 and 17.23. Such permits are indirectly result in the death or injury investigations of efforts to enhance the available for scientific purposes, to of adult Carson wandering skippers, or propagation or survival of the enhance the propagation or survival of their larvae or eggs, or that modify subspecies, pursuant to section the species, and for incidental take in Carson wandering skipper habitat and 10(a)(1)(A) of the Act, and conservation connection with otherwise lawful significantly affect their essential plans prepared for non-Federal lands activities. behavioral patterns including breeding, and activities pursuant to section It is our policy, as published in the foraging, sheltering, or other life 10(a)(1)(B) of the Act. Federal Register on July 1, 1994 (59 FR functions. Otherwise lawful activities Federal agencies with management 34272), to identify, to the maximum that incidentally take Carson wandering responsibility for the Carson wandering extent practicable at the time a species skipper, but have no Federal nexus, will skipper include the Service, in relation is listed, those activities that would or require a permit under section to Partners for Fish and Wildlife would not constitute a violation of 10(a)(1)(B) of the Act. projects and issuance of section section 9 of the Act. The intent of this Questions regarding whether specific 10(a)(1)(B) permits for habitat policy is to increase public awareness of activities risk violating section 9 should conservation plans, and other programs. the effects of the listing on proposed be directed to the Field Supervisor of Other activities on BLM lands could and ongoing activities within the the Nevada Fish and Wildlife Office or include livestock grazing and associated subspecies’ range. We believe the the Field Supervisor of the Sacramento management activities, sale, exchange, following actions would not be likely to Fish and Wildlife Office (see ADDRESSES or lease of Federal land containing result in a violation of section 9: section). Requests for copies of the suitable habitat, recreational activities, (1) Possession, delivery, including regulations on listed wildlife, and or issuance of right-of-way permits for interstate transport and import or export general inquiries regarding prohibitions various projects across lands from the United States, involving no and issuance of permits under the Act, administered by them. Occurrences of commercial activity, of dead Carson may be addressed to the U.S. Fish and this subspecies could potentially be wandering skipper that were collected Wildlife Service, Ecological Services, affected by projects requiring a permit prior to the date of publication of this Endangered Species Permits, 911 N.E.
VerDate 11
11th Ave., Portland, Oregon 97232–4181 information unless it displays a List of Subjects in 50 CFR Part 17 (telephone 503/231–2063; facsimile currently valid OMB control number. 503/231–6243). The existing OMB control number is Endangered and threatened species, 1018–0093 and expires 3/31/2004. Exports, Imports, Reporting and National Environmental Policy Act recordkeeping requirements, and Executive Order 13211 Transportation. We have determined that an environmental assessment and On May 18, 2001, the President issued Regulation Promulgation environmental impact statement, as an Executive Order (E.O. 13211) on defined under the authority of the regulations that significantly affect Accordingly, we amend part 17, National Environmental Policy Act of energy supply, distribution, and use. subchapter B of chapter I, title 50 of the 1969, need not be prepared in Executive Order 13211 requires agencies Code of Federal Regulations as set forth connection with regulations adopted to prepare Statements of Energy Effects below: pursuant to section 4(a) of the Act. We when undertaking certain actions. This PART 17—[AMENDED] published a notice outlining our reasons rule is not expected to significantly affect energy supplies, distribution, or for this determination in the Federal 1. The authority citation for part 17 Register on October 25, 1983 (48 FR use. Therefore, this action is not a significant energy action and no continues to read as follows: 49244). Statement of Energy Effects is required. Authority: 16 U.S.C. 1361–1407; 16 U.S.C. Paperwork Reduction Act References Cited 1531–1544; 16 U.S.C. 4201–4245; Pub. L. 99– 625, 100 Stat. 3500, unless otherwise noted. This rule does not contain any new A complete list of all references cited collections of information that require herein, as well as others, is available 2. In § 17.11(h), add the following, in approval by OMB under the Paperwork upon request from the Nevada Fish and alphabetical order under INSECTS, to Reduction Act. This rule will not Wildlife Office (see ADDRESSES section). the List of Endangered and Threatened impose record keeping or reporting Wildlife: requirements on State or local Author governments, individuals, businesses, or The primary author of this emergency § 17.11 Endangered and threatened organizations. An agency may not rule is Marcy Haworth, U.S. Fish and wildlife. conduct or sponsor and a person is not Wildlife Service, Nevada Fish and * * * * * required to respond to a collection of Wildlife Office (see ADDRESSES section). (h) * * *
Species Vertebrate popu- Historic range lation where endan- Status When listed Critical Special Common name Scientific name gered or threatened habitat rules
******* INSECTS
******* Skipper, Carson Pseudocopaeodes U.S.A. (CA, NV) ..... U.S.A., (Lassen E 716 NA NA wandering. eunus obscurus. County, CA; Washoe County, NV).
*******
Dated: November 21, 2001. Marshall P. Jones, Jr., Acting Director, Fish and Wildlife Service. [FR Doc. 01–29614 Filed 11–28–01; 8:45 am] BILLING CODE 4310–55–P
VerDate 11
Proposed Rules Federal Register Vol. 66, No. 230
Thursday, November 29, 2001
This section of the FEDERAL REGISTER States Department of Agriculture, NUCLEAR REGULATORY contains notices to the public of the proposed Washington, DC 20250. Parties filing COMMISSION issuance of rules and regulations. The comments are advised that faxing purpose of these notices is to give interested comments to (202) 690–0552 or e- 10 CFR Part 50 persons an opportunity to participate in the mailing them to rule making prior to the adoption of the final Risk-Informed Treatment of Structures, rules. [email protected] may better assure their timely receipt and Systems and Components consideration. Reference should be AGENCY: U.S. Nuclear Regulatory DEPARTMENT OF AGRICULTURE made to the title of action and docket Commission. number. ACTION: Availability of draft rule Agricultural Marketing Service FOR FURTHER INFORMATION CONTACT: wording. Clifford M. Carman, Branch Chief, 7 CFR Parts 1000, 1001, 1005, 1006, SUMMARY: The Nuclear Regulatory USDA/AMS/Dairy Programs, Order 1007, 1030, 1032, 1033, 1124, 1126, Commission (NRC) is making available Formulation Branch, Room 2968, South 1131, and 1135 the draft wording of a possible Building, P.O. Box 96456, Washington, amendment of its regulations. The [Docket No. AO–14–A69, et al.; DA–00–03] DC 20090–6456, (202) 720–7183, e-mail proposal would add 10 CFR 50.69, address: [email protected]. Milk in the Northeast and Other ‘‘Risk-Informed Treatment of Structures, SUPPLEMENTARY INFORMATION: Systems and Components.’’ The Marketing Areas; Notice of Extension Prior documents in this proceeding: of Time for Filing Comments proposal would permit power reactor Notice of Hearing: Issued April 6, licensees and applicants to implement 2000; Published April 14, 2000, (65 FR 7 CFR an alternative regulatory framework part Marketing area AO Nos. 20094). with respect to certain treatment Tentative Final Decision: Issued requirements currently imposed beyond 1000 .... General Provisions November 29, 2000; Published practices for commercial grade of Federal Milk December 7, 2000, (65 FR 76832). equipment to add assurance of Marketing Or- capability of structures, systems and ders Extension of Time—Northeast, et al.; 1001 .... Northeast ...... AO–14–A69 DA–00–03 components (SSCs) to perform their intended functions. Under this 1005 .... Appalachian ...... AO–388–A11 Interim Final Rule: Issued December 1006 .... Florida ...... AO–356–A34 framework, licensees, using a risk- 1007 .... Southeast ...... AO–366–A40 21, 2000; Published December 28, 2000, informed process for categorizing SSC 1030 .... Upper Midwest ..... AO–361–A34 (65 FR 82832). according to their safety and risk 1032 .... Central ...... AO–313–A43 Recommended Decision: Issued significance, could remove SSCs of low 1033 .... Mideast ...... AO–166–A67 October 19, 2001; Published October 25, safety significance from the scope of 1124 .... Pacific Northwest .. AO–368–A27 2001, (66 FR 54064). certain identified treatment 1126 .... Southwest ...... AO–231–A65 Notice is hereby given that the time requirements. The availability of the 1131 .... Arizona–Las AO–271–A35 for filing comments to the draft wording is intended to inform Vegas. Recommended Decision on Proposed 1135 .... Western ...... AO–380–A17 stakeholders of the current status of the Amendments to Tentative Marketing NRC’s activities to adopt 10 CFR 50.69 Agreements and to the Class III and IV AGENCY: Agricultural Marketing Service, and to provide stakeholders the price formulas used under Federal milk USDA. opportunity to comment on the draft orders is hereby extended from ACTION: changes. The NRC has also provided Proposed rule; extension of time November 26, 2001, to January 25, 2002. for filing comments. additional (‘‘[ ]’’) information within the This notice is issued pursuant to the body of the draft rule language which is SUMMARY: This document extends the provisions of the Agricultural Marketing bracketed (‘‘[ ]’’) to facilitate time for filing comments on a Agreement Act of 1937, as amended (7 understanding of the NRC’s intent on recommended decision issued October U.S.C. 601–674), and the applicable certain aspects of the proposed rule. 19, 2001, concerning proposed rules of practice and procedure DATES: Comments should be submitted amendments to the minimum Class III governing the formulation of marketing on or before December 31, 2001. Any and Class IV price formulas for Federal agreements and marketing orders (7 CFR comments received after this date may milk orders. Additional time to file part 900). not be considered during drafting of the comments was requested by a number of List of Subjects in 7 CFR Parts 1000, proposed rule. Because of scheduling proprietary and cooperative handlers. 1001, 1005, 1006, 1007, 1030, 1032, considerations in preparing a proposed Those requesting the extension state 1033, 1124, 1126, 1131, and 1135 rule, the NRC requests that stakeholders that more time is needed to fully provide their comments at their earliest Milk marketing orders. analyze the impacts of the technical convenience before the end of the changes in the pricing formulas. Dated: November 26, 2001. comment period, if practicable. DATES: Comments are now due on or Kenneth C. Clayton, ADDRESSES: Submit written comments before January 25, 2002. Acting Administrator, Agricultural Marketing to: Secretary, U.S. Nuclear Regulatory ADDRESSES: Comments (six copies) Service. Commission, Washington, DC 20555– should be filed with the Hearing Clerk, [FR Doc. 01–29677 Filed 11–26–01; 3:07 pm] 0001, Attention: Rulemakings and Room 1083, South Building, United BILLING CODE 3410–02–P Adjudications Staff, Mail Stop O–16C1
VerDate 11
or deliver written comments to One rulemaking and to publish the ANPR the Technical Specifications (TS) would White Flint North, 11555 Rockville (65 FR 11488, March 3, 2000). In SECY– be revised to correct administrative Pike, Rockville, Maryland, between 7:30 00–0194, dated September 7, 2000, the errors regarding the width dimension of a.m. and 4:15 p.m. on Federal workdays. NRC staff subsequently communicated the spent fuel. Specific changes would You may also provide comments via to the Commission its preliminary be made to TS 1.2.1 and 1.2.15, Tables the NRC’s interactive rulemaking Web analysis of public comments on the 1–1a, 1–1b, 1–1c, 1–1d, 1–2a, and 1–2c, site through the NRC’s home page at ANPR and discussed issues involving and Figure 1–1. The CoC would be http://ruleforum.llnl.gov. This site 10 CFR 50.69. revised to change the certificate holder provides the capability to upload The NRC has now developed draft from Transnuclear West, Inc. to comments as files (any format), if your wording for the changes to its Transnuclear Inc. Minor editorial web browser supports that function. For regulations and has made them changes would also be made to the CoC. information about the interactive available on the NRC’s rulemaking Web DATES: Comments on the proposed rule rulemaking Web site, contact Ms. Carol site at http://ruleforum.llnl.gov. This must be received on or before December Gallagher at (301) 415–5905 or by e-mail draft rule language is preliminary and 31, 2001. to [email protected]. Copies of any comments may be incomplete in one or more ADDRESSES: Submit comments to: received and certain documents related respects. This draft rule language was Secretary, U.S. Nuclear Regulatory to this rulemaking may be examined at released to inform stakeholders of the Commission, Washington, DC 20555– the NRC Public Document Room, current status of the 10 CFR 50.69 0001, Attn: Rulemakings and located at One White Flint North, 11555 rulemaking and to provide stakeholders Adjudications Staff. Rockville Pike (first floor), Rockville, with an opportunity to comment on the Deliver comments to 11555 Rockville Maryland. The NRC maintains an draft revisions. Comments received Pike, Rockville, MD, between 7:30 a.m. Agencywide Documents Access and prior to publishing the proposed rule and 4:15 p.m. on Federal workdays. Management System (ADAMS), which will be considered in the development Certain documents related to this provides text and image files of NRC’s of the proposed rule. Comments may be rulemaking, as well as all public public documents. These documents provided through the rulemaking Web comments received on this rulemaking, may be accessed through the NRC’s site at http://ruleforum.llnl.gov/ or by may be viewed and downloaded Public Electronic Reading Room on the mail as indicated under the ADDRESSES electronically via the NRC’s rulemaking Internet at http://www.nrc.gov/NRC/ heading. The NRC may post updates website at http://ruleforum.llnl.gov. You ADAMS/index.html. If you do not have periodically on the rulemaking Web site may also provide comments via this access to ADAMS or if there are that may be of interest to stakeholders. website by uploading comments as files problems in accessing the documents Dated at Rockville, Maryland, this 21st day (any format) if your web browser located in ADAMS, contact the NRC of November 2001. supports that function. For information Public Document Room (PDR) Reference For the Nuclear Regulatory Commission. about the interactive rulemaking site, staff at 1–800–397–4209, 301–415–4737 Cynthia A. Carpenter, contact Ms. Carol Gallagher, (301) 415– or by email to [email protected]. Chief, Risk-Informed Initiatives, 5905; e-mail [email protected]. FOR FURTHER INFORMATION CONTACT: Environmental, Decommissioning, and Certain documents related to this rule, Eileen M. McKenna, Risk-Informed Rulemaking Branch, Division of Regulatory including comments received by the Initiatives, Environmental, Improvement Programs, Office of Nuclear NRC, may be examined at the NRC Decommissioning, and Rulemaking Reactor Regulation. Public Document Room, 11555 Branch, Division of Regulatory [FR Doc. 01–29584 Filed 11–28–01; 8:45 am] Rockville Pike, Rockville, MD. For more Improvement Programs, Office of BILLING CODE 7590–01–P information, contact the NRC Public Nuclear Reactor Regulation, U.S. Document Room (PDR) Reference staff Nuclear Regulatory Commission, at 1–800–397–4209, 301–415–4737 or Washington, DC 20555–0001; NUCLEAR REGULATORY by email to [email protected]. Telephone: (301) 415–2189; Internet: COMMISSION Documents created or received at the [email protected]. NRC after November 1, 1999 are also 10 CFR Part 72 SUPPLEMENTARY INFORMATION: Since the available electronically at the NRC’s Commission published a Policy RIN 3150—AG 88 Public Electronic Reading Room on the Statement on the Use of Probabilistic Internet at http://www.nrc.gov/NRC/ List of Approved Spent Fuel Storage ADAMS/index.html. From this site, the Risk Assessment in 1995, the NRC’s efforts to consider risk insights in the Casks: Standardized NUHOMS –24P, public can gain entry into the NRC’s regulatory infrastructure have evolved –52B, and –61BT Revision Agencywide Documents Access and over the years. In SECY–98–300, dated AGENCY: Nuclear Regulatory Management System (ADAMS), which December 23, 1998, under Option 2, the Commission. provides text and image files of NRC’s public documents. An electronic copy NRC staff proposed to add provisions to ACTION: Proposed rule. Part 50 for risk-informed alternative of the proposed Certificate of regulations, revise existing requirements SUMMARY: The Nuclear Regulatory Compliance (CoC) and preliminary to reflect risk-informed considerations, Commission (NRC) is proposing to safety evaluation report (SER) can be and to remove unnecessary or amend its regulations revising the found under ADAMS Accession No. ineffective regulations. In SECY–99– Transnuclear West, Inc. Standardized ML012620237. If you do not have access 256, dated October 29, 1999, the staff NUHOMS–24P, –52B, and –61BT cask to ADAMS or if there are problems in provided a rulemaking plan and an system listing within the ‘‘List of accessing the documents located in Advance Notice of Proposed Approved Spent Fuel Storage Casks’’ to ADAMS, contact the NRC PDR Rulemaking (ANPR) for risk-informed include Amendment No. 4 to Certificate Reference staff at 1–800–397–4209, 301– changes using 10 CFR 50.69. In a Staff of Compliance (CoC) No. 1004. 415–4737or by e-mail to [email protected]. Requirements Memorandum dated Amendment No. 4 would allow the FOR FURTHER INFORMATION CONTACT: January 31, 2000, the Commission storage of low burn-up spent fuel in the Merri Horn, telephone (301) 415–8126, directed the staff to proceed with the NUHOMS–24P canister. In addition, e-mail, [email protected] of the Office of
VerDate 11
Nuclear Material Safety and Safeguards, List of Subjects in 10 CFR Part 72 Amendment Number 2 Effective Date: U.S. Nuclear Regulatory Commission, Administrative practice and September 5, 2000. Washington, DC 20555–0001. procedure, Criminal penalties, Amendment Number 3 Effective Date: SUPPLEMENTARY INFORMATION: For Manpower training programs, Nuclear September 12, 2001. additional information see the direct materials, Occupational safety and Amendment Number 4 Effective Date: final rule published in the final rules health, Penalties, Radiation protection, February 12, 2002. section of this Federal Register. Reporting and recordkeeping SAR Submitted by: Transnuclear Inc. SAR Title: Final Safety Analysis Procedural Background requirements, Security measures, Spent fuel, Whistleblowing. Report for the Standardized NUHOMS Horizontal Modular Storage System for This rule is limited to the changes For the reasons set out in the Irradiated Nuclear Fuel. contained in Amendment 4 to CoC No. preamble and under the authority of the Docket Number: 72–1004. 1004 and does not include other aspects Atomic Energy Act of 1954, as amended; Certificate Expiration Date: January of the Standardized NUHOMS –24P, the Energy Reorganization Act of 1974, 23, 2015. –52B, and –61BT cask system design. as amended; and 5 U.S.C. 553, the NRC The NRC is using the direct final rule Model Number: Standardized is proposing to adopt the following procedure to issue this amendment NUHOMS –24P, NUHOMS –52B, and amendments to 10 CFR part 72. because it represents a limited and NUHOMS –61BT. routine change to an existing CoC that PART 72—LICENSING * * * * * is expected to be noncontroversial. REQUIREMENTS FOR THE Dated at Rockville, Maryland, this 13th day Adequate protection of public health INDEPENDENT STORAGE OF SPENT of November, 2001. and safety continues to be ensured. NUCLEAR FUEL AND HIGH-LEVEL For the Nuclear Regulatory Commission. Because NRC considers this action RADIOACTIVE WASTE William D. Travers, noncontroversial and routine, the Executive Director for Operations. proposed rule is being published 1. The authority citation for part 72 concurrently as a direct final rule. The continues to read as follows: [FR Doc. 01–29444 Filed 11–28–01; 8:45 am] direct final rule will become effective on Authority: Secs. 51, 53, 57, 62, 63, 65, 69, BILLING CODE 7590–01–P February 12, 2002. However, if the NRC 81, 161, 182, 183, 184, 186, 187, 189, 68 Stat. receives significant adverse comments 929, 930, 932, 933, 934, 935, 948, 953, 954, by December 31, 2001, then the NRC 955, as amended, sec. 234, 83 Stat. 444, as RAILROAD RETIREMENT BOARD amended (42 U.S.C. 2071, 2073, 2077, 2092, will publish a document that withdraws 2093, 2095, 2099, 2111, 2201, 2232, 2233, 20 CFR Part 217 this action and will address the 2234, 2236, 2237, 2238, 2282); sec. 274, Pub. comments received in response to the L. 86–373, 73 Stat. 688, as amended (42 RIN 3220–AB46 proposed amendments published U.S.C. 2021); sec. 201, as amended, 202, 206, elsewhere in this issue of the Federal 88 Stat. 1242, as amended, 1244, 1246 (42 Application for Annuity or Lump Sum U.S.C. 5841, 5842, 5846); Pub. L. 95–601, sec. Register. A significant adverse comment AGENCY: Railroad Retirement Board. is a comment where the commenter 10, 92 Stat. 2951 as amended by Pub. L. 102– ACTION: explains why the rule would be 486, sec. 7902, 106 Stat. 3123 (42 U.S.C. Proposed rule. 5851); sec. 102, Pub. L. 91–190, 83 Stat. 853 inappropriate, including challenges to (42 U.S.C. 4332); secs. 131, 132, 133, 135, SUMMARY: The Railroad Retirement the rule’s underlying premise or 137, 141, Pub. L. 97–425, 96 Stat. 2229, 2230, Board (Board) proposes to amend its approach, or would be ineffective or 2232, 2241, sec. 148, Pub. L. 100–203, 101 regulations to permit a spouse unacceptable without a change. A Stat. 1330–235 (42 U.S.C. 10151, 10152, application, when filed simultaneously comment is adverse and significant if: 10153, 10155, 10157, 10161, 10168). with the employee’s application for a (1) The comment opposes the rule and Section 72.44(g) also issued under secs. 142(b) and 148(c), (d), Pub. L. 100–203, 101 disability annuity, to be filed more than provides a reason sufficient to require a three months in advance of the earliest substantive response in a notice-and- Stat. 1330–232, 1330–236 (42 U.S.C. 10162(b), 10168(c),(d)). Section 72.46 also annuity beginning date. The proposed comment process. For example, in a issued under sec. 189, 68 Stat. 955 (42 U.S.C. changes would bring §§ 217.9 and substantive response: 2239); sec. 134, Pub. L. 97–425, 96 Stat. 2230 217.30 into agreement with the (a) The comment causes the NRC staff (42 U.S.C. 10154). Section 72.96(d) also distinction already found in § 218.7. to reevaluate (or reconsider) its position issued under sec. 145(g), Pub. L. 100–203, DATES: Submit comments on or before or conduct additional analysis; 101 Stat. 1330–235 (42 U.S.C. 10165(g)). January 28, 2002. (b) The comment raises an issue Subpart J also issued under secs. 2(2), 2(15), serious enough to warrant a substantive 2(19), 117(a), 141(h), Pub. L. 97–425, 96 Stat. ADDRESSES: Address any comments response to clarify or complete the 2202, 2203, 2204, 2222, 2244, (42 U.S.C. concerning this proposed rule to the record; or 10101, 10137(a), 10161(h)). Subparts K and L Secretary to the Board, Railroad are also issued under sec. 133, 98 Stat. 2230 (c) The comment raises a relevant Retirement Board, 844 North Rush (42 U.S.C. 10153) and sec. 218(a), 96 Stat. Street, Chicago, Illinois 60611–2092. issue that was not previously addressed 2252 (42 U.S.C. 10198). or considered by the NRC staff. FOR FURTHER INFORMATION CONTACT: (2) The comment proposes a change 2. In § 72.214, Certificate of Marguerite P. Dadabo, Assistant General or an addition to the rule, and it is Compliance 1004 is revised to read as Counsel, (312) 751–4945, TTD (312) apparent that the rule would be follows: 751–4701. ineffective or unacceptable without § 72.214 List of approved spent fuel SUPPLEMENTARY INFORMATION: Section incorporation of the change or addition. storage casks. 217.9 of the regulations of the Board (3) The comment causes the NRC staff * * * * * provides for the effective period of to make a change to the CoC or TS. Certificate Number: 1004. application. This proposed rule amends These comments will be addressed in Initial Certificate Effective Date: section 217.9(b) to permit a spouse a subsequent final rule. The NRC will January 23, 1995. application, when filed simultaneously not initiate a second comment period on Amendment Number 1 Effective Date: with the employee’s application for a this action. April 27, 2000. disability annuity, to be filed more than
VerDate 11
three months in advance of the earliest can begin except if the application is for For legal issues, you may call Deirdre annuity beginning date. This proposed an employee disability annuity or for a Fujita of the NHTSA Office of Chief rule also makes a conforming spouse annuity filed simultaneously Counsel at 202–366–2992. amendment to § 217.30 concerning the with the employee’s disability annuity You may send mail to both of these reasons for denial of an application, and application. officials at National Highway Traffic provides greater clarity for such denials. Dated: November 20, 2001. Safety Administration, 400 Seventh St., The Board, with the concurrence of SW., Washington, DC 20590. By Authority of the Board, the Office of Management and Budget, SUPPLEMENTARY INFORMATION: NHTSA For the Board, Beatrice Ezerski, has determined that this is not a has been mandated by Congress to significant regulatory action under Secretary to the Board. consider whether to prescribe clearer Executive Order 12866. Therefore, no [FR Doc. 01–29429 Filed 11–28–01; 8:45 am] and simpler labels and instructions for regulatory analysis is required. BILLING CODE 7905–01–P child restraints. On November 2, 2001, Information collections associated with NHTSA published a Notice of Proposed § 217.9 have been approved by the Rulemaking (NPRM) that proposes Office of Management and Budget under DEPARTMENT OF TRANSPORTATION changes to the labels and written control number 3220–0002. instructions that accompany child National Highway Traffic Safety restraints (66 FR 55623). Due to an error, List of Subjects in 20 CFR Part 217 Administration the NPRM did not address the issue of Claims, Railroad retirement, when, if adopted, NHTSA would Reporting and record keeping 49 CFR Part 571 require child restraints to comply with requirements. [Docket No. NHTSA–2001–10916; Notice 2] the proposed requirements. This notice For the reasons set out in the corrects that error. preamble, the Railroad Retirement RIN 2127–AI55 In trying to decide how much Board proposes to amend title 20, leadtime to allow manufacturers, Federal Motor Vehicle Safety NHTSA first examined past upgrades of chapter II, part 217 of the Code of Standards; Child Restraint Systems Federal Regulations as follows: labeling requirements. When NHTSA AGENCY: National Highway Traffic updated air bag label requirements for PART 217—APPLICATION FOR Safety Administration (NHTSA), vehicles and child restraints in 1996, ANNUITY OR LUMP SUM Department of Transportation. vehicle manufacturers were required to ACTION: Correction. comply with the new requirements 1. The authority citation for part 217 within 90 days. Child restraint continues to read as follows: SUMMARY: NHTSA has been mandated manufacturers were required to comply Authority: 45 U.S.C. 231d and 45 U.S.C. by Congress to consider whether to within 180 days. The longer leadtime 231f. prescribe clearer and simpler labels and for child restraints was an 2. Section 217.9 of subpart B, is instructions for child restraints. On acknowledgement that child restraint amended by adding directly after the November 2, 2001, NHTSA published manufacturers would have to change words ‘‘paragraph (b)(2)’’, the words an NPRM that proposes changes to the their manufacturing process to include ‘‘and paragraph (b)(3)’’, and by adding a labels and written instructions that a means of permanently labeling the new paragraph (b)(3) to read as follows: accompany child restraints (66 FR padding or cushion, a process that was not then employed. Because the labels § 217.9 Effective period of application. 55623). Due to an error, that NPRM did not address the issue of when, if affected by that rulemaking were * * * * * adopted, NHTSA would require child manufactured using processes that are (b) * * * restraints to comply with the proposed more involved that the typical sticky (3) Application for spouse annuity requirements. This document corrects label on the side of a child restraint, filed simultaneously with employee that error. leadtime of 180 days should be feasible disability annuity application. When the DATES: You should submit your for the current proposal. qualifying employee’s annuity However, the same need for expedited comments early enough to ensure that application effective period is action does not exist as existed for air Docket Management receives them not determined by the preceding paragraph bags. Also, this proposal would require later than January 2, 2002. The reason (b)(2) of this section, a spouse who a change in most, if not all, labels for this closing date is to make it meets all eligibility requirements may currently on child restraints. NHTSA coincide with the the January 2 file an annuity application on the same also acknowledges that, if it were to comment closing date of the November date as the employee claimant. The require permanent molding or some 6, 2001 NPRM. spouse application will be treated as similar technology, a longer leadtime though it were filed on the later of the ADDRESSES: You should mention the would be needed for those labels. In actual filing date or the employee’s docket number of this document in your addition, NHTSA is proposing changes annuity beginning date. comments and submit your comments to the written requirements. * * * * * in writing to: Docket Management, Based upon these considerations, 3. Section 217.30 of subpart E is Room PL–401, 400 Seventh Street, SW., NHTSA is proposing a leadtime of one amended by removing paragraph (b), Washington, DC 20590. year for the proposed changes to child redesignating paragraph (c) as paragraph You may call Docket Management at restraint labels and written instructions. (b), and by adding a new paragraph (c) 202–366–9324. You may visit the In addition, to encourage the earliest to read as follows: Docket from 10 a.m. to 5 p.m., Monday possible installation of the new through Friday. enhanced labels, NHTSA is would allow § 217.30 Reasons for denial of application. FOR FURTHER INFORMATION CONTACT: For manufacturers to install the new labels * * * * * non-legal issues, you may call Mary and provide the new written (c) The applicant files an application Versailles of the NHTSA Office of instructions before the required date. more than three months before the date Planning and Consumer Programs, at This correction does not affect the on which the eligible person’s benefit 202–366–2057. statements made in the ‘‘Rulemaking
VerDate 11
Analyses and Notices’’ section of the How Can I Read the Comments make permanent the provisions of the November 2, 2002 NPRM. Submitted by Other People? emergency rule listing the Carson wandering skipper (Pseudocopaeodes Comments You may read the comments received by Docket Management at the address eunus obscurus) in California and How Do I Prepare and Submit given above under ADDRESSES. The Nevada as an endangered species under Comments? hours of the Docket are indicated above the Endangered Species Act of 1973, as Your comments must be written and in the same location. amended (Act). The emergency rule in English. To ensure that your You may also see the comments on listing the population is published comments are correctly filed in the the Internet. To read the comments on concurrently in this issue of the Federal Docket, please include the docket the Internet, take the following steps: Register. number of this document in your 1. Go to the Docket Management The Carson wandering skipper is comments. System (DMS) Web page of the currently known from only two Your comments must not be more Department of Transportation (http:// populations, one in Washoe County, than 15 pages long. (49 CFR 553.21). We dms.dot.gov/). Nevada, and the other in Lassen County, established this limit to encourage you 2. On that page, click on ‘‘search.’’ California. This subspecies is threatened to write your primary comments in a 3. On the next page type in the four- by a variety of factors including habitat concise fashion. However, you may digit docket number shown at the destruction, degradation, and attach necessary additional documents beginning of this document. Example: If fragmentation due to agricultural to your comments. There is no limit on the docket number were ‘‘NHTSA– practices (such as excessive livestock the length of the attachments. 1999–1234,’’ you would type ‘‘1234.’’ grazing and wetland habitat Please submit two copies of your After typing the docket number, click on modification), urban development, and comments, including the attachments, ‘‘search.’’ non-native plant invasion. Other threats to Docket Management at the address 4. On the next page, which contains include impacts from collecting, given above under ADDRESSES. docket summary information for the livestock trampling, approved and proposed water exportation projects, How Can I Be Sure That My Comments docket you selected, click on the desired road construction, recreation, pesticide Were Received? comments. You may download the comments. However, since the drift, and inadequate regulatory If you wish Docket Management to comments are imaged documents, mechanisms. Extinction could also notify you upon its receipt of your instead of word processing documents, occur by naturally occurring events due comments, enclose a self-addressed, the downloaded comments are not word to the small, isolated nature of the stamped postcard in the envelope searchable. remaining populations. We find these containing your comments. Upon Please note that even after the threats constitute immediate and receiving your comments, Docket comment closing date, we will continue significant risk to the species. Management will return the postcard by to file relevant information in the We solicit additional data and mail. Docket as it becomes available. Further, information that may assist us in How Do I Submit Confidential Business some people may submit late comments. making a final decision on this Information? Accordingly, we recommend that you proposed action. This proposal, if made periodically check the Docket for new final, would extend the Federal If you wish to submit any information material. protection and recovery provisions of under a claim of confidentiality, you the Act to this subspecies. should submit three copies of your Authority: 49 U.S.C. 322, 30111, 30115, complete submission, including the 30117, 30166 and 30177; delegation of DATES: We will accept comments until information you claim to be confidential authority at 49 CFR 1.50. the close of business on January 28, business information, to the Chief Issued on November 26, 2001. 2002. Public hearing requests must be received by January 14, 2002. Counsel, NHTSA, at the address given Stephen R. Kratzke, ADDRESSES: above under FOR FURTHER INFORMATION Associate Administrator for Safety Comment submission: If CONTACT. In addition, you should Performance Standards. you wish to comment, you may submit submit two copies, from which you [FR Doc. 01–29637 Filed 11–28–01; 8:45 am] your comments and materials by any one of several methods: have deleted the claimed confidential BILLING CODE 4910–59–P business information, to Docket (1) You may submit written comments Management at the address given above and information to the Field Supervisor, Nevada Fish and Wildlife Office, U.S. under ADDRESSES. When you send a DEPARTMENT OF THE INTERIOR comment containing information Fish and Wildlife Service, 1340 claimed to be confidential business Fish and Wildlife Service Financial Boulevard, Suite 234, Reno, information, you should include a cover Nevada 89502. letter setting forth the information 50 CFR Part 17 (2) You may hand-deliver written specified in our confidential business comments to our Nevada Fish and information regulation. (49 CFR part RIN 1018–AI18 Wildlife Office at the address given 512.) above. Endangered and Threatened Wildlife (3) You may send comments by Will the Agency Consider Late and Plants; Proposed Rule To List the electronic mail (e-mail) to: Comments? Carson Wandering Skipper as [email protected]. See the We will consider all comments that Endangered Public Comments Solicited section Docket Management receives before the AGENCY: Fish and Wildlife Service, below for file format and other close of business on the comment Interior. information on electronic filing. closing date indicated above under ACTION: Proposed rule. FOR FURTHER INFORMATION CONTACT: DATES. To the extent possible, we will Robert D. Williams, Field Supervisor, also consider comments that Docket SUMMARY: We, the U.S. Fish and Nevada Fish and Wildlife Office (see Management receives after that date. Wildlife Service (Service), propose to ADDRESSES section) (telephone 775/861–
VerDate 11
6300; facsimile 775/861–6301), or which we would withhold from the connection with regulations adopted Wayne White, Field Supervisor, rulemaking record a respondent’s pursuant to section 4(a) of the Act. We Sacramento Fish and Wildlife Office, identity, as allowable by law. If you published a notice outlining our reasons 2800 Cottage Way, Room W–2605, wish us to withhold your name and/or for this determination in the Federal Sacramento, California 95825–1846 address, you must state this Register on October 25, 1983 (48 FR (telephone 916/414–6000; facsimile prominently at the beginning of your 49244). 916/414–6712). comment. However, we will not Executive Order 12866 SUPPLEMENTARY INFORMATION: consider anonymous comments. We will make all submissions from Background Executive Order 12866 requires organizations or businesses, and from agencies to write regulations that are For a discussion of biological individuals identifying themselves as easy to understand. We invite your background information, previous representatives or officials of comments on how to make this proposal Federal action, factors affecting the organizations or businesses, available easier to understand including answers species, critical habitat, and for public inspection in their entirety. to questions such as the following: (1) conservation measures available to Comments and materials received will Is the discussion in the SUPPLEMENTARY listed and proposed species, consult the be available for public inspection, by INFORMATION section of the preamble emergency rule on the Carson appointment, during normal business helpful in understanding the proposal? wandering skipper published hours at the above address. (2) Does the proposal contain technical concurrently in this issue of the Federal In making any final decision on this language or jargon that interferes with Register. proposal, we will take into its clarity? (3) Does the format of the consideration the comments and any Public Comments Solicited proposal (grouping and order of additional information we receive, and sections, use of headings, paragraphing, We intend that any final action such communications may lead to a resulting from this proposal will be as etc.) aid or reduce its clarity? What else final regulation that differs from this could we do to make the proposal easier accurate and as effective as possible. proposal. Therefore, we are soliciting comments to understand? Public Hearings or suggestions from the public, other Paperwork Reduction Act concerned governmental agencies, the The Act requires that we hold one or scientific community, industry, or any more public hearings on this proposal, This rule does not contain any new other interested party concerning this if requested within 45 days of the date collections of information that require proposed rule. We are particularly of publication of a proposed rule. Such approval by OMB under the Paperwork seeking comments concerning: requests must be made in writing and be Reduction Act. This rule will not (1) Biological, commercial trade, or addressed to the Field Supervisor, impose record keeping or reporting other relevant data concerning any Nevada Fish and Wildlife Office (see requirements on State or local threat (or lack thereof) to the Carson ADDRESSES section). Should a public governments, individuals, businesses, or wandering skipper; hearing be requested, then we will organizations. An agency may not (2) The location of any additional announce the date, time, and place for conduct or sponsor and a person is not populations of this species, and the the hearing in the Federal Register, required to respond to a collection of reasons why any habitat should or through legal notices in area information unless it displays a should not be determined to be critical newspapers, and in news releases to the currently valid OMB control number. habitat pursuant to section 4 of the Act; media. The existing OMB control number is (3) Additional information concerning 1018–0093 and expires 3/31/2004. the range, distribution, and population Peer Review size of this species; and In accordance with our policy Executive Order 13211 (4) Current or planned activities or published on July 1, 1994 (59 FR On May 18, 2001, the President issued land use practices in the subject area 34270), we will seek the expert opinions Executive Order 13211 on regulations and their possible impacts on this of at least three appropriate and that significantly affect energy supply, species. independent specialists regarding this distribution, and use. Executive Order If you submit comments by e-mail, proposed rule. The purpose of this 13211 requires Federal agencies to please submit them as an ASCII file and review is to ensure listing decisions are prepare Statements of Energy Effects avoid the use of special characters and based on scientifically sound data, when undertaking certain actions. This any form of encryption. Please also assumptions, and analyses. We will rule is not expected to significantly include ‘‘Attn: [RIN–AI18]’’ and your send the peer reviewers copies of this affect energy supplies, distribution, or name and return address in your e-mail proposed rule, as well as the emergency use. Therefore, this action is not a message. If you do not receive a rule, immediately following publication significant action, and no Statement of confirmation from the system that we in the Federal Register. We will invite Energy Effects is required. have received your e-mail message, them to comment, during the public contact us directly by calling our comment period, on specific Author Nevada Fish and Wildlife Office at assumptions and conclusions regarding telephone number 775/861–6300. the proposed rule to list the Carson The primary author of this proposed Our practice is to make comments, wandering skipper. rule is Marcy Haworth, U.S. Fish and including names and home addresses of Wildlife Service, Nevada Fish and respondents, available for public review National Environmental Policy Act Wildlife Office (see ADDRESSES section). during regular business hours. We have determined that an List of Subjects in 50 CFR Part 17 Individual respondents may request that environmental assessment and we withhold their home address from environmental impact statement, as Endangered and threatened species, the rulemaking record, which we will defined under the authority of the Exports, Imports, Reporting and honor to the extent allowable by law. National Environmental Policy Act of recordkeeping requirements, and There also may be circumstances in 1969, need not be prepared in Transportation.
VerDate 11
Proposed Regulation Promulgation PART 17—[AMENDED] under INSECTS, to the List of For the reasons given in the preamble Endangered and Threatened Wildlife: to the emergency rule listing the Carson 1. The authority citation for part 17 continues to read as follows: § 17.11 Endangered and threatened wandering skipper as endangered, wildlife. published concurrently in this issue of Authority: 16 U.S.C. 1361–1407; 16 U.S.C. the Federal Register, we hereby propose 1531–1544; 16 U.S.C. 4201–4245; Pub. L. 99– * * * * * to amend part 17, subchapter B of 625, 100 Stat. 3500, unless otherwise noted. (h) * * * chapter I, title 50 of the Code of Federal 2. Amend section 17.11(h), by adding Regulations as set forth below: the following, in alphabetical order
Species Vertebrate popu- Historic range lation where endan- Status When listed Critical Special Common name Scientific name gered or threatened habitat rules
******* INSECTS Skipper, Carson Pseudocopaeodes U.S.A. (CA, NV) ..... U.S.A., (Lassen E 716 NA NA wandering. eunus obscurus. County, CA; Washoe County, NV).
*******
Dated: November 21, 2001. be consistent with the goals and The MDMF submitted to NMFS on Marshall P. Jones, Jr., objectives of the Northeast Multispecies October 15, 2001, an application for an Acting Director, Fish and Wildlife Service. Fishery Management Plan (FMP). EFP to conduct gear research in the [FR Doc. 01–29613 Filed 11–28–01; 8:45 am] However, further review and groundfish fishery in the Gulf of Maine BILLING CODE 4310–55–P consultation may be necessary before a (GOM). The Regional Administrator has final determination is made to issue an determined that this application EFP. Therefore, NMFS announces that warrants further consideration. The DEPARTMENT OF COMMERCE the Regional Administrator intends to research would target flatfish and cod in issue an EFP that would allow a single block 124 (a 30 minute square as used National Oceanic and Atmospheric vessel to conduct fishing operations in by the Multispecies FMP), during Administration areas in the Gulf of Maine that would February and March, with the objective otherwise be closed by regulations 50 CFR Part 600 governing the multispecies groundfish of comparing two designs of modified sink gillnets to a traditional sink gillnet [I.D. 110601C] fisheries of the Northeastern United States. This notification is intended to design. The experimental sink gillnets Magnuson-Stevens Act Provisions; provide interested parties the would use modified leadlines and General Provisions for Domestic opportunity to comment on the floatlines to reduce the vertical profile Fisheries; Applications for Exempted proposed experimental fishery. of the nets in order to exploit behavioral Fishing Permits (EFPs) DATES: Comments must be received by differences between cod and flatfish. December 14, 2001. Keeping the nets close to the bottom AGENCY: National Marine Fisheries ADDRESSES: Comments should be sent to may allow flatfish to continue to be Service (NMFS), National Oceanic and Patricia A. Kurkul, Regional captured while cod are avoided. The Atmospheric Administration (NOAA), Administrator, NMFS, Northeast goal of the research is to further the Commerce. Regional Office, 1 Blackburn Drive, design of a sink gillnet that could result ACTION: Notification of a proposal for Gloucester, MA 01930. Mark on the in significant reductions in the bycatch EFPs to conduct experimental fishing; outside of the envelope ‘‘Comments on request for comments. of cod in the sink gillnet sector of the Proposed Experimental Fishery.’’ flatfish fishery. This research is highly SUMMARY: NMFS announces that the FOR FURTHER INFORMATION CONTACT: Tom pertinent to the management of Administrator, Northeast Region, NMFS Warren, Fishery Management Specialist, groundfish species under the FMP. (Regional Administrator), has made a 978–281–9347. A single vessel would conduct 10 preliminary determination that an EFP SUPPLEMENTARY INFORMATION: The overnight gillnet sets, with application, submitted by the regulations that govern exempted approximately 24 hours soak time. Each Massachusetts Division of Marine experimental fishing, at 50 CFR 600.745, Fisheries (MDMF), contains all the allow the Regional Administrator to overnight set would be composed of two information as required by the authorize for certain purposes the strings of experimental nets and two regulations that govern exempted targeting or incidental harvest of strings of standard nets serving as experimental fishing under the managed species that would otherwise controls. Each string would consist of provisions of the Magnuson-Stevens be prohibited. An EFP to authorize such eight nets, each 300 ft (91.4 m) long, for Fishery Conservation and Management activity may be issued, provided there is a total of 32 nets used per overnight set. Act (Magnuson-Stevens Act) and has adequate opportunity for the public to The gillnets would be deployed and determined that the application comment on the EFP application as hauled using standard commercial warrants further consideration. The required under 50 CFR 600.745 (b)(3), practices. Regional Administrator has also made a and the conservation goals and The vessel would utilize its preliminary determination that the objectives of the FMP are not multispecies days-at-sea and fish in activities authorized under the EFP will compromised.
VerDate 11
compliance with the pertinent mesh DEPARTMENT OF COMMERCE FOR FURTHER INFORMATION CONTACT: size, minimum fish size, and trip limit Allison Ferreira, Fishery Management regulations of the FMP. Manomet Center National Oceanic and Atmospheric Specialist, 978–281–9103, for Conservation Sciences observers or Administration [email protected]. MDMF personnel would be on board the SUPPLEMENTARY INFORMATION: NMFS 50 CFR Part 600 vessel during all trips when the gillnets announces that the Regional are hauled. Legal catch would be kept [I.D. 111501A] Administrator intends to issue an EFP and marketed, and the proceeds would that would allow one federally serve as partial compensation to the Magnuson-Stevens Act Provisions; permitted Northeast multispecies vessel vessel owner and crew for participation General Provisions for Domestic to test the effectiveness of a fish in the experiment. All incidental Fisheries; Application for Exempted excluder device, referred to as ‘‘Ex-it,’’ species and non-legal catch will be Fishing Permits (EFPs) at excluding undersized cod using a codend cover having mesh smaller than discarded following measurement and AGENCY: National Marine Fisheries authorized under § 648.80(a)(2). This enumeration. The principal investigator Service (NMFS), National Oceanic and EFP may also allow access to the of the experiment received funding for Atmospheric Administration (NOAA), Conditional Gulf of Maine (GOM) the research from the Northeast Commerce. Consortium (NEC). The NEC is an Closure Area, specified at § 648.81 ACTION: Notification of a proposal for (o)(1)(ii), if it is deemed necessary. organization composed of New England EFPs to conduct experimental fishing; fishing industry members and An industry cooperative proposal was request for comments. received from Manomet on October 19, university staff that facilitates the 2001, for one EFP to test the funding of cooperative fishery research. SUMMARY: NMFS announces that the effectiveness of a fish excluder device, Administrator, Northeast Region, NMFS An EFP would be required to exempt ‘‘Ex-it,’’ at excluding undersized cod in (Regional Administrator), has made a the vessel from the GOM Rolling the mixed groundfish fishery of the preliminary determination that an Closure Area VI and Rolling Closure Northeast. The goal of the experiment is exempted fishing permit (EFP) Area I, during February and March, to develop a selective trawl gear that application for mixed groundfish respectively. The vessel would be releases undersized cod, while retaining fisheries of the Northeast, submitted by prohibited from fishing in that portion fish of marketable size. the Manomet Center for Conservation The proposed study would test two of block 124 that is inclusive of the Sciences (Manomet), contains all the Western GOM area closure. versions of the ‘‘Ex-it’’ device. The required information as required by the device is inserted into the top panel of The proposed location and timing of regulations that govern exempted a codend within a trapezoidal steel the experiment is based on the experimental fishing under the frame, and consists of a net tube in the experience of some industry members provisions of the Magnuson-Stevens shape of an hourglass, and steel grids. and similar research (Phase I) conducted Fishery Conservation and Management The grid system is made of six smaller in December 2000 and January 2001 that Act (Magnuson-Stevens Act) and flexible grids that are joined together, concluded that the absence of an warrants further consideration. The with the distance between the grid bars adequate number of flatfish during Regional Administrator has also made a spaced according to the species and size Phase I of that study was a result of the preliminary determination that the of fish intended to be excluded. One research having been conducted in sub- activities authorized under the EFP ‘‘Ex-it’’ device would have a grid bar optimal places and times. The proposed would be consistent with the goals and interval of 60 mm, while the other experiment (Phase II) in block 124 objectives of the Northeast Multispecies would have a grid bar interval of 70 during February and March is thought Fishery Management Plan (FMP) and mm. In order to test the effectiveness of to be optimal for catching sufficient within the scope of earlier analyses of the two ‘‘Ex-it’’ devices at excluding quantities of cod and flatfish to test the the impacts. However, further review undersized cod, a retaining bag having and consultation may be necessary experimental hypothesis. 3–inch (7.62–cm) mesh would be before a final determination is made to Regulations under the Magnuson- attached to the external side of the issue an EFP. Regulations under the codend, in correspondence to the Stevens Act require publication of this Magnuson-Stevens Fishery notification to provide interested parties trapezoidal steel frame. This codend Conservation and Management Act cover will enable virtually all catch with the opportunity to comment on require publication of this notification escaping through the ‘‘Ex-it’’ device to application for proposed EFPs. Based on to provide interested parties the be retained, thereby allowing for the the outcome of this EFP, this action may opportunity to comment on applications comparison of fish excluded versus fish lead to further rulemaking. for proposed EFPs. retained. This information can then be Authority: 16 U.S.C. 1801 et seq. DATES: Comments on this notice must be used to formulate species-specific received at the appropriate address or Dated: November 21, 2001. selectivity curves for each device. fax number (see ADDRESSES) on or before Fishing operations are expected to Bruce C. Morehead, December 14, 2001. commence at the beginning of December Acting Director, Office of Sustainable ADDRESSES: Written comments should 2001, and last approximately 6 days. A Fisheries, National Marine Fisheries Service. be sent to Patricia A. Kurkul, Regional maximum of 30 tows would be [FR Doc. 01–29640 Filed 11–28–01; 8:45 am] Administrator, NMFS, Northeast completed, with an average of 5 tows BILLING CODE 3510–22–S Regional Office, 1 Blackburn Drive, per day. The study would be conducted Gloucester, MA 01930. Mark the outside in a portion of the Gulf of Maine/ of the envelope ‘‘Comments on EFP Georges Bank Regulated Mesh Area Proposal.’’ Comments may also be sent (GOM/GB RMA) and take place during via facisimile (fax) to (978) 281–9135. daylight hours. The study is proposed to Comments will not be accepted if occur in the area bound by the following submitted via e-mail or the Internet. coordinates: The New Hampshire
VerDate 11
shoreline at 43° N lat. and east to 43° American plaice (dab), winter flounder under the multispecies days-at-sea N lat./70° W long., then south to the 42° (blackback), and grey sole (witch regulations. N lat. line, then west to the Cape Cod flounder). The main incidental species One EFP would be issued to a shoreline, excluding the year-round are expected to consist of skate, smooth federally permitted Northeast Western GOM closure area. This study dogfish, spiny dogfish, sculpins, sea multispecies vessel to exempt it from area does not encompass any GOM raven and sea robin. Based on previous the gear restrictions and, if necessary, seasonal closure areas during the month work in this area, a total catch the Conditional GOM Closure Area of of December. However, depending on amounting to 2,000 lb (907 kg) of cod, the FMP. when the EFP is issued and December 500 lb (227 kg) of yellowtail flounder, Regulations under the Magnuson- weather conditions, the participating 3,900 lb (1,769 kg) of haddock, 50 lb (23 Stevens Act require publication of this vessel may need to complete the kg) of American plaice, 20 lb (9 kg) of notification to provide interested parties required tows in early January 2002, winter flounder, and 260 lb (118 kg) of with the opportunity to comment on when the Massachusetts Bay-Stellwagen applications for proposed EFPs. Based grey sole is expected. The participating Bank Conditional Closure Area (Rolling on the outcome of this EFP, this action vessel would only be authorized to Closure Area VI, § 648.81 (o)(1)(ii)) goes may lead to further rulemaking. retain fish for commercial sale in the into effect. Thus, an exemption from Authority: 16 U.S.C. 1801 et seq. this seasonal closure area may be amounts allowed under its Federal required to complete the proposed fishery permits and days-at-sea Dated: November 21, 2001. study. If necessary, a separate EFP with allocations, and according to the Bruce C. Morehead, an exemption from the rolling closure applicable minimum fish size Acting Director, Office of Sustainable area may be issued. requirements. No undersized fish would Fisheries, National Marine Fisheries Service. The target species would consist of be retained on board the vessel. The [FR Doc. 01–29641 Filed 11–28–01; 8:45 am] cod, yellowtail flounder, haddock, vessel would be required to operate BILLING CODE 3510–22–S
VerDate 11
Notices Federal Register Vol. 66, No. 230
Thursday, November 29, 2001
This section of the FEDERAL REGISTER You may read the environmental over the last century. It is estimated that contains documents other than rules or assessment and any comments that we the disease has cost the Federal proposed rules that are applicable to the receive on the environmental Government, the States, and the public. Notices of hearings and investigations, assessment in our reading room. The livestock industry billions of dollars in committee meetings, agency decisions and reading room is located in room 1141 of direct losses and efforts to eliminate the rulings, delegations of authority, filing of petitions and applications and agency the USDA South Building, 14th Street disease. APHIS has estimated that if statements of organization and functions are and Independence Avenue SW., efforts to eradicate the disease were examples of documents appearing in this Washington, DC. Normal reading room stopped, the costs of producing beef and section. hours are 8 a.m. to 4:30 p.m., Monday milk would increase by an estimated through Friday, except holidays. To be $80 million annually in less than 10 sure someone is there to help you, years. DEPARTMENT OF AGRICULTURE please call (202) 690–2817 before Brucellosis infection occurs in bison coming. in Yellowstone National Park. Bison Animal and Plant Health Inspection APHIS documents published in the roam wild in Yellowstone National Service Federal Register, and related Park, and during winter and spring, information, including the names of some migrate outside of the park onto [Docket No. 01–103–1] organizations and individuals who have State and private lands. The prevention commented on APHIS dockets, are of the spread of brucellosis from bison Veterinary Services; Availability of an available on the Internet at http:// to cattle in and around the park is an Environmental Assessment www.aphis,usda.gov/ppd/rad/ issue of concern. webrepor.html. VS, in cooperation with other Federal AGENCY: Animal and Plant Health and State agencies, proposes to conduct Inspection Service, USDA. FOR FURTHER INFORMATION CONTACT: Dr. Valerie Ragan, Senior Staff Veterinarian, an 11-week study in the West ACTION: Notice of availability and National Animal Health Programs Staff, Yellowstone and Gardiner areas in request for comments. VS, APHIS, 4700 River Road Unit 36, Montana starting in March 2002 to determine how long a bison fetus SUMMARY: We are informing the public Riverdale, MD 20737–1231; (301) 734– remains in the environment as a that the Animal and Plant Health 6954. potential source of Brucella organisms Inspection Service has prepared an SUPPLEMENTARY INFORMATION: before it deteriorates or is consumed by environmental assessment for a Background scavengers. The research on the rate of proposed study to determine the fetal disappearance is supported in the disappearance rate of bison fetuses in The mission of Veterinary Services Record of Decision for the Final the environment. The environmental (VS) of the Animal and Plant Health Environmental Impact Statement and assessment documents our review and Inspection Service (APHIS) is to protect Bison Management Plan for the State of analysis of environmental impacts and improve the health, quality, and Montana and Yellowstone National associated with the proposed study. We marketability of domestic animals by Park, dated December 20, 2000. Also, are making this environmental preventing, controlling, and/or the study will comply with step 1 of the assessment available to the public for eliminating animal diseases and Joint Bison Management Plan within the review and comment. monitoring and promoting animal health and productivity. Record of Decision. DATES: We invite you to comment on the Brucellosis is a contagious disease To provide the public with environmental assessment. We will that affects animals and humans, caused documentation of APHIS’ review and consider all comments we receive that by bacteria of the genus Brucella. analysis of the environmental impacts are postmarked, delivered, or e-mailed Brucella abortus principally affects associated with this study, we have by December 31, 2001. bison and cattle. In bison and cattle, prepared an environmental assessment ADDRESSES: You may submit comments brucellosis localizes in the reproductive titled, ‘‘Proposed Study for Bison Fetal by postal mail/commercial delivery or organs and/or the udder, causing Disappearance Rate,’’ dated November by e-mail. If you use postal mail/ abortion in dams as well as systemic 2001. The environmental assessment commercial delivery, please send four effects in males and females. Female provides a basis for our conclusion that copies of your comment (an original and cattle infected with brucellosis also the potential impacts to the three copies) to: Docket No. 01–103–1, suffer infertility and lowered milk environment of the proposed study are Regulatory Analysis and Development, production. expected to be insignificant. PPD, APHIS, Station 3C71, 4700 River Brucellosis is spread when bacteria The environmental assessment may Road Unit 118, Riverdale, MD 20737– are shed in milk, aborted fetuses, be viewed on the Internet at http:// 1238. Please state that your comment afterbirth, or other reproductive tract www.aphis.usda.gov/ppd/es/ refers to Docket No. 01–103–1. If you discharges and are ingested by a vsdocs.html. You may request paper use e-mail, address your comment to susceptible animal. Cattle and bison copies of the environmental assessment [email protected]. Your have a tendency to sniff and lick an from the person listed under FOR comment must be contained in the body aborted fetus, which provides an avenue FURTHER INFORMATION CONTACT. Please of your message; do not send attached for the disease to spread if Brucella is refer to the title of the environmental files. Please include your name and present. assessment when requesting copies. The address in your message and ‘‘Docket Brucellosis has caused devastating environmental assessment is also No. 01–103–1’’ on the subject line. losses to farmers in the United States available for review in our reading room
VerDate 11
(the location and hours of the reading impacts of budworm defoliation. In Adjust wildlife opening system by room are listed under the heading addition to proposing jack pine salvage creating openings or maintaining ADDRESSES at the beginning of this and regeneration in Interior Wetlands, existing openings by removing woody notice). the Forest Service evaluated some other encroachment to provide habitat for The environmental assessment has management opportunities within the sandhill crane, black bear, ruffed grouse, been prepared in accordance with: (1) entire project area to implement the and other species. (11) Improve fish The National Environmental Policy Act Hiawatha National Forest Land and habitat (primarily brook trout) by adding of 1969 (NEPA), as amended (42 U.S.C. Resource Management Plan (Forest log bank cover and placing spawning 4321 et seq.), (2) regulations of the Plan, 1986). The proposed action gravel. (12) Design projects and/or Council on Environmental Quality for includes salvage and regeneration of develop mitigation measures, as implementing the procedural provisions jack pine, timber harvesting and appropriate, to minimize impacts to the of NEPA (40 CFR parts 1500–1508), (3) regeneration of other species, changes to resources to acceptable levels defined USDA regulations implementing NEPA the transportation system, changes to by laws, regulations, or policies. (7 CFR part 1), and (4) APHIS’ NEPA the old growth system, timber stand A roads analysis for the project area Implementing Procedures (7 CFR part improvement projects, and wildlife and will be conducted in conjunction with 372). fisheries habitat improvement projects. the EIS. The roads analysis is not a decision document but is necessary to Done in Washington, DC, this 27th day of Overall guidance of land management November 2001. activities on the Hiawatha National make an informed decision. At a minimum, the roads analysis will W. Ron DeHaven, Forest is provided by the Forest Plan. In order to meet the objectives and desired identify: needed and unneeded roads; Acting Administrator, Animal and Plant road associated environmental and Health Inspection Service. future conditions set forth in the Forest Plan, the following purpose and need public safety risks; site-specific [FR Doc. 01–29724 Filed 11–28–01; 8:45 am] priorities and opportunities for road BILLING CODE 3410–34–P has been identified for the Interior Wetlands project area: (1) Reduce the improvements and decommissioning; impacts of the jack pine budworm by areas of special sensitivity, unique DEPARTMENT OF AGRICULTURE creating a more evenly distributed age- resource values, or both; and any other class structure (which also improves information that may be needed to Forest Service habitat for sandhill crane, merlin, support project-level decisions. northern harrier, and other species), Adjacent landowners, citizens groups, Interior Wetlands Environmental improving vigor, and increasing growth State, local, and Tribal governments, Impact Statement; Hiawatha National rates in jack pine stands. (2) Regenerate and other Federal agencies are invited to Forest, Chippewa County, Michigan older aspen and mixed balsam fir/ comment on the transportation system. The Draft Environmental Impact aspen/paper birch stands to maintain AGENCY: Forest Service, USDA. Statement (DEIS) will analyze the direct, these forest types; provide habitat for ACTION: Notice of intent to prepare an indirect, and cumulative environmental white-tailed deer, ruffed grouse, Environmental Impact Statement. effects of the alternatives. Past, present, snowshoe hare, and other species; and projected activities on National SUMMARY: The Forest Service will improve vigor, and increase growth Forest system lands will be considered. prepare an Environmental Impact rates. (3) Regenerate older black spruce The DEIS will disclose the analysis of Statement (EIS) to analyze and disclose stands to improve vigor and to increase site-specific mitigation measures and the environmental impacts of proposed growth rates. (4) Remove some trees in their effectiveness. The DEIS is expected land management activities, and some jack pine, aspen, balsam fir/aspen/ to be filed with the EPA and available corresponding alternatives, within the paper birch, northern hardwoods, paper for public review by November 2002. Interior Wetlands project area. The birch, black spruce, red pine, white DATES: project is located on the Sault Ste. Marie pine, and cedar to either concentrate Comments concerning the Ranger District, Hiawatha National growth on the remaining trees or to proposed action and scope of the Forest, Chippewa County, Michigan, provide space for new trees to become analysis should be received within 30 approximately 35 miles southwest of established. (5) Provide useable wood days of this notice to receive timely Sault Ste. Marie, Michigan. The project products to local markets and improve consideration in the DEIS. A public area is approximately 30,600 acres and timber age-class distribution, vigor, and meeting about this project will be held management activities are being growth rates on merchantable stems to on December 4, 2001 at 6:30 pm. proposed on less than 15 percent of the ensure a more even flow of wood ADDRESSES: Mail written comments to area. products in the future. (6) Prepare areas Stevan J. Christiansen, District Ranger, Jack pine stands experience a cyclical where jack pine and black spruce are St. Ignace and Sault Ste. Marie Ranger outbreak of jack pine budworm. Older being regenerated by reducing the slash Districts, 1798 West US–2, St. Ignace, trees are more susceptible to defoliation and exposing mineral soil for a seedbed. MI 49781. The public meeting for this which can lead to mortality and dead (7) Manage an efficient transportation project will be held at the Trout Lake tops. In the Interior Wetlands project system through construction, Town Hall on the main street of Trout area much of the jack pine is more than reconstruction, maintenance, and Lake (M–123). 60 years old. The jack pine in the decommissioning of roads. (8) Improve FOR FURTHER INFORMATION CONTACT: project area experienced budworm the quality and survival of some white Martha Sjogren, Team Leader, St. Ignace defoliation during the 1991/1992 pine stems damaged by white pine Ranger District. Phone: (906) 643–7900 outbreak and is showing some weevil and blister rust. (9) Evaluate ext. 133. Email: [email protected]. defoliation during the outbreak that stands currently in the old growth SUPPLEMENTARY INFORMATION: The began in 2001. The Forest Service is system and other stands to determine if information presented in this notice is evaluating the options available to there is a different arrangement of included to help the reviewer determine develop a more evenly distributed age- stands that could provide better existing if they are interested in or potentially class and to improve the vigor of jack old growth characteristics and better affected by the proposed land pine stands in order to minimize the placement across the landscape. (10) management activities. The information
VerDate 11
in this notice is summarized. Contact 348 acres with limited existing old roads proposed, and other resources the person identified in the For Further growth conditions or in unfavorable (e.g. wildlife, wetlands, soils, and Information Contact section to obtain locations and adding to the system hydrology) would be negatively additional information about desired about 223 acres with some existing old impacted by the construction and by future condition, purpose and need, growth conditions or in more favorable ineffective closure and obliteration of proposed action, design criteria and/or locations. temporary roads. mitigation measures, and maps. The 10. To create wildlife openings on 3. There is too much focus on information packet and color maps are about 9 acres and maintain openings on providing timber products and not also available at: http://www.fs.fed.us/ about 157 acres by removing woody enough focus on restoring the ecosystem r9/hiawatha. encroachment. to more natural conditions. The project area is approximately 11. To improve fish habitat in Biscuit 30,600 acres and is located near the Creek by adding log bank cover along Decisions To Be Made town of Trout Lake, Chippewa County, approximately 750 feet and placing 75 The St. Ignace and Sault Ste. Marie Michigan. Proposed activities within the square yards of spawning gravel in the District Ranger will decide the project area include portions of the stream. following: following areas: T44N, R4W, Sections 12. To develop design criteria and/or 1. Whether or not to salvage and 19, 31; T44N, R5W, Sections 2–11, 13– mitigation measures to reduce the harvest timber and if so, the selection 27, 35, 36; T44N, R6W, Sections 1–18, impacts of management activities on and site-specific location of appropriate 21–24; T45N, R5W, Sections 8–10, 15– resources. Specifically, design projects timber management practices 17, 19–22, 27–33; T45N, R6W, Sections and/or mitigation measures to control (silvicultural prescription, logging 23, 25, 26, 31, 32, 34–36. To meet the road use; protect threatened, system, fuels treatment, and purpose and need, this project proposes: endangered and sensitive species; reforestation); road construction/ 1. To salvage (through clearcut protect plant habitat; protect wildlife reconstruction/maintenance/ harvest) and regenerate approximately and protect and/or improve scenic decommissioning necessary to provide 2,216 acres of mature and overmature integrity; protect heritage resources; access and protect resources; and jack pine. provide safe snowmobiling in area of appropriate mitigation measures. 2. To harvest (clearcut) and regenerate timber harvest; provide good seed 2. Whether or not to make approximately 289 acres of mature and source jack pine cones; and protect soil adjustments to the old growth system. overmature aspen, balsam fir/aspen/ and hydrology. 3. Whether or not to maintain existing paper birch, and black spruce stands. Range of Alternatives wildlife openings and create new ones. 3. To harvest (clearcut) and regenerate 4. Whether or not to modify fish approximately 119 acres of mature black The Forest Service will consider a range of alternatives. One of these will habitat by adding log bank cover and spruce stands. placing spawning gravel. 4. To harvest some trees (partial be the ‘‘no action’’ alternative in which 5. What, if any, specific project removal cuts) on approximately 508 none of the proposed activities will be monitoring requirements would be acres in jack pine, aspen, balsam fir/ implemented. Additional alternatives needed to ensure mitigation measures aspen/paper birch, northern hardwoods, will examine varying levels and are implemented and effective. black spruce, red pine, white pine, and locations for the proposed activities to cedar. achieve the proposal’s purposes in Public Involvement and Scoping 5. To harvest (commercially thin) response to the issues identified during The public is encouraged to attend the about 148 acres in northern hardwoods public involvement. and paper birch. public meeting at 6:30 pm on December 6. Prepare sites for jack pine Preliminary Issues 4, 2001 at the Trout Lake Town Hall. regeneration by rollerchopping about The public has had several previous Forest Service officials will be available 1,400 acres and prescribed burning opportunities to comment on these at that time to present an overview of about 400 acres. proposed actions. The original Interior the purpose and need and proposed 7. To adjust the transportation system Wetlands EA (circa 1997) was included action. It is also an opportunity for the by: constructing approximately 1.7 in the NEPA quarterly, scoping letters public to comment on the project. miles of classified roads, 1.5 miles of were sent out, and public meetings were Public participation is an important temporary roads on existing unclassified held. The public commented again part of the analysis. The public may road corridors and then decommission, during the 30-day public comment visit Forest Service officials at any time and 23.1 miles of temporary roads; period (April 1999), and when the EA during the analysis and prior to the changing the classification of was appealed. In September 2000, the decision. Public scoping has been approximately 2.8 miles from Forest Service released the Revised ongoing for the Interior Wetlands unclassified to classified; performing Interior Wetlands Project Set EA for project. The Forest Service will be road maintenance on approximately 7.8 another 30-day public comment period. seeking additional information, miles of classified roads, and 2.8 miles From the public comments received comments, and assistance from Federal, unclassified roads changed to classified from 1997–2000, preliminary issues that State, and local agencies, as well as roads; reconstructing approximately 0.1 may be addressed in this EIS are as local Native American tribes and other mile of classified road; and follows: individuals or organizations that may be decommissioning approximately 0.3 1. There is too much timber harvest interested in or affected by the proposed miles of classified roads and proposed in the area, there is too much action. This input will be used in approximately 3.2 miles of unclassified clearcutting proposed, and other preparation of the draft and final EIS. roads. resources (e.g. wildlife, wetlands, soils, The scoping process will: 8. To prune approximately 40 acres of and hydrology) would be negatively Identify potential issues. weevil and blister rust damaged white impacted. Identify issues to be analyzed in pine saplings. 2. There is too much road depth. 9. To adjust the old growth system by construction to accommodate the timber Identify alternatives to the proposed removing from the existing system about harvest, there are too many temporary action.
VerDate 11
Explore additional alternatives that to the Council on Environmental Designated Federal Officer, at (208) will be derived from issues recognized Quality regulations for implementing 983–1950. during scoping. the procedural provisions of the Dated: November 26, 2001. Identify potential environmental National Environmental Policy Act at 40 Ihor Mereszczak, effects of this project and alternatives CFR 1503.3 in addressing these points. (e.g. direct, indirect, and cumulative Acting Forest Supervisor. effects and connected actions). Responsible Official [FR Doc. 01–29728 Filed 11–27–01; 11:04 am] Estimated Dates for Filing The District Ranger of the St. Ignace and Sault Ste. Marie Ranger Districts, BILLING CODE 3410–11–M The DEIS is expected to be filed with Hiawatha National Forest, 1798 West the Environmental Protection Agency US–2, St. Ignace, MI 49781, is the (EPA) and to be available for public Responsible Official. As the Responsible DEPARTMENT OF COMMERCE review by November 2002. At that time Official, he will decide if the proposed International Trade Administration EPA will publish a Notice of project will be implemented. He will Availability of the DEIS in the Federal document the decision and reasons for [A–583–008] Register. The comment period on the the decision in the Record of Decision. DEIS will be 45 days from the date the Certain Circular Welded Carbon Steel EPA publishes the Notice of Availability Authority: National Environmental Policy Pipes and Tubes From Taiwan; in the Federal Register. It is very Act of 1969 as amended (42 U.S.C. 4321– 4346); Council on Environmental Quality Rescission of Antidumping Duty important that those interested in the Regulations (40 CFR parts 1500–1508); U.S. Administrative Review management of this area participate at Department of Agriculture NEPA Policies AGENCY: Import Administration, that time. and Procedures (7 CFR part 1b). The final EIS is scheduled to be International Trade Administration, completed by February 2003. In the Dated: November 7, 2001. Department of Commerce. final EIS, the Forest Service is required Clyde Thompson, ACTION: Notice of rescission of to respond to comments and responses Forest Supervisor, Hiawatha National Forest, antidumping duty administrative review received during the comment period 2727 North Lincoln Road, Escanaba, MI of certain circular welded carbon pipes that pertain to the environmental 49829. and tubes from Taiwan. consequences discussed in the DEIS and [FR Doc. 01–29727 Filed 11–28–01; 8:45 am] to applicable laws, regulations, and BILLING CODE 3410–11–U SUMMARY: We are rescinding the May 1, policies considered in making a 2000 through April 30, 2001 decision regarding the proposal. antidumping duty administrative review DEPARTMENT OF AGRICULTURE of Yieh Hsing Enterprise Co. Ltd. (Yieh Reviewer’s Obligations Hsing) in its entirety, in accordance The Forest Service believes it is Forest Service with § 351.213(d)(1) of our regulations, important to give reviewers notice of based on a withdrawal of the company’s Notice of Resource Advisory request. several court rulings related to public Committee Meeting participation in the environmental EFFECTIVE DATE: November 29, 2001. review process. First, reviewers of draft AGENCY: North Central Idaho Resource FOR FURTHER INFORMATION CONTACT: environmental impact statements must Advisory Committee, Grangeville, ID, Thomas Killiam or Mike Heaney, AD/ structure their participation in the USDA, Forest Service. CVD Enforcement, Group III, Office 8, environmental review of the proposal so ACTION: Notice of meeting. Import Administration, U.S. Department that it is meaningful and alerts the of Commerce, 14th Street and agency to the reviewer’s position and SUMMARY: Pursuant to the authorities in Constitution Avenue, NW., Washington, contentions. Vermont Yankee Nuclear the Federal Advisory Committee Act DC 20230; telephone: (202) 482–5222 Power Corp v. NRDC, 435 U.S. 519, 553 (Public Law 92–463) and under the and (202) 482–4475, respectively. (1978). Also, environmental objections Secure Rural Schools and Community SUPPLEMENTARY INFORMATION: that could be raised at the draft Self-Determination Act of 2000 (Public Applicable Statute and Regulations environmental impact statement stage Law 106–393) the Nez Perce and but that are not raised until after Clearwater National Forests’ North Unless otherwise indicated, all completion of the final EIS may be Central Idaho Resource Advisory citations to the Tariff Act of 1930 (‘‘the waived or dismissed by the courts. City Committee will meet Friday, December Act’’) are references to the provisions of Angoon v. Hodel, 803 F.2d 1016, 7, 2001, in Lewiston, Idaho for a effective January 1, 1995, the effective 1022 (9th Cir. 1986) and Wisconsin business meeting. The meeting is open date of the amendments made to the Act Heritages, Inc. v. Harris, 490 F. Supp. to the public. by the Uruguay Round Agreements Act. 1334, 1338 (E.D. Wis. 1980). Because of SUPPLEMENTARY INFORMATION: The In addition, unless otherwise indicated, these court rulings, it is very important business meeting on December 7 begins all citations to the Department’s that those interested in this proposed at 10:00 AM, at the Helm Restaurant in regulations refer to 19 CFR part 351 action participate by the close of the 45 the Sacajawea Center, 1824 Main Street, (2001). day comment period so that substantive Lewiston, Idaho. Agenda topics will comments and objections are made Background include FACA overview, Charter available to the Forest Service at a time In response to a timely request by overview, Process for project when it can meaningfully consider and Yieh Hsing Enterprise Co., Ltd. (Yieh identification/recommendation, election respond to them in the final EIS. Hsing), the Department initiated an of Chairperson, operating guidelines, To be most helpful, comments on the administrative review of the and establishment of future meeting DEIS should be as specific as possible antidumping duty order on certain schedule. and may address the adequacy of the circular welded carbon steel pipe and statement or the merit of the alternatives FOR FURTHER INFORMATION CONTACT: Ihor tubes from Taiwan, in accordance with discussed. Reviewers may wish to refer Mereszczak, Staff Officer and 19 CFR 351.221(c)(1)(i). See Initiation of
VerDate 11
Antidumping and Countervailing Duty DC. 20230; telephone: (202) 482–2312 Extension of Time Limits for Final Administrative Reviews and Requests and (202) 482–0666, respectively. Results for Revocations in Part, 66 FR 32934 The Applicable Statute Section 353.214(i)(1) of the (June 19, 2001). On July 3, 2001, Yieh Department’s regulations requires the Hsing withdrew its request for review. Unless otherwise indicated, all Department to issue final results within No other interested party requested a citations to the Tariff Act of 1930, as 90 days after the date on which the review for this period. Yieh Hsing was amended (the Act) are to the provisions preliminary results in a new shipper the sole respondent in the review. effective January 1, 1995, the effective review were issued. However, if the Rescission or Review date of the amendments made to the Act Secretary concludes that a new shipper by the Uruguay Round Agreements Act. review is extraordinarily complicated, The Department’s regulations, at 19 In addition, unless otherwise indicated, the Secretary may extend the 90-day CFR 351.213(d)(1), provide that the all citations to the Department’s period to 150 days under § 351.214(i)(2) Department will rescind an regulations are to 19 CFR part 351 of the Department’s regulations. The administrative review if the party that (2000). final results for this new shipper review requested the review withdraws the are currently due on November 25, request within 90 days of the date of Background 2001. We find the valuation issues in publication of the notice of initiation of On September 29, 2000, the this review to be extraordinarily the requested review. Because the party complicated, and, therefore, we are requesting review withdrew its request Department received timely requests for review, in accordance with section unable to complete this review by the for an administrative review within the scheduled deadline. Therefore, in 90-day deadline, the Department is 751(a)(2)(B)(ii) of the Act and § 351.214(c) of the Department’s accordance with § 351.214(i)(2) of the rescinding this administrative review. Department’s regulations, the This notice also serves as a reminder regulations, from Coastal (Jiangsu) Foods Co., Ltd. (Coastal), Shouzhou Department is extending the time period to parties subject to administrative for issuing the final results of these new Huaxiang Foodstuffs Co., Ltd. protective order (‘‘APO’’) of their shipper reviews by 15 days until (Shouzhou), and Shanghai Taoen responsibility concerning the December 10, 2001. International Trading Co., Ltd. disposition of proprietary information This extension is in accordance with disclosed under APO in accordance (Shanghai Taoen), to conduct new section 751(a)(2)(B)(iv) of the Act, as with 19 CFR 351.305(a)(3). Timely shipper reviews of the antidumping amended, and § 351.214(i)(2) of the written notification of the return or duty order on freshwater crawfish tail Department’s regulations. destruction of APO materials or meat from the PRC. On November 6, conversion to judicial protective order is 2000, the Department published its Dated: November 23, 2001. hereby requested. Failure to comply initiation of these new shipper reviews Joseph A. Spetrini, with the regulations and the terms of an for the period September 1, 1999 Deputy Assistant Secretary for Import APO is a sanctionable violation. through August 31, 2000. See Administration, Group III. This notice is published in Freshwater Crawfish Tail Meat From the [FR Doc. 01–29671 Filed 11–28–01; 8:45 am] accordance with § 351.213(d)(4) of the People’s Republic of China: Initiation of BILLING CODE 3510–DS–P Department’s regulations. New Shipper Antidumping Dated: November 23, 2001. Administrative Reviews, 65 FR 66525 (November 6, 2000). DEPARTMENT OF COMMERCE Joseph A. Spetrini, Deputy Assistant Secretary for Import On March 16, 2001, the Department International Trade Administration Administration, Group III. published an extension of the deadline [A–823–811] [FR Doc. 01–29673 Filed 11–28–01; 8:45 am] for completion of the preliminary results of these new shipper reviews BILLING CODE 3510–DS–P Antidumping Duty Order: Certain Hot- until August 27, 2001. See Notice of Rolled Carbon Steel Flat Products Extension of Time Limit for Preliminary From Ukraine DEPARTMENT OF COMMERCE Results of Antidumping Duty New Shipper Reviews: Freshwater Crawfish AGENCY: Import Administration, International Trade Administration Tail Meat from the People’s Republic of International Trade Administration, China, 66 FR 15219 (March 16, 2001). Department of Commerce. [A–570–848] On August 9, 2001, we rescinded the ACTION: Notice of antidumping duty new shipper reviews for Coastal and order. Notice of Extension of Time Limit for Shouzhou and extended the period of Final Results of New Shipper review (POR) for Shanghai Taoen by one EFFECTIVE DATE: November 29, 2001. Antidumping Review: Freshwater month. See Freshwater Crawfish Tail FOR FURTHER INFORMATION CONTACT: Lori Crawfish Tail Meat From the People’s Meat From the People’s Republic of Ellison at 202–482–5811, Import Republic of China China: Final Rescission of Antidumping Administration, International Trade Duty New Shipper Reviews, 66 FR 41831 Administration, U.S. Department of AGENCY: Import Administration, (August 9, 2001). Thus, only the new International Trade Administration, Commerce, 1401 Constitution Avenue, shipper review of Shanghai Taoen NW., Washington, DC 20230. Department of Commerce. remained. On September 6, 2001, the EFFECTIVE DATE: November 29, 2001. Department published the preliminary Applicable Statute and Regulations FOR FURTHER INFORMATION CONTACT: results of this new shipper review. See Unless otherwise indicated, all Matthew Renkey or Mark Hoadley, Notice of Preliminary Results of citations to the Tariff Act of 1930, as Import Administration, International Antidumping Duty New Shipper Review: amended (‘‘Act’’), are references to the Trade Administration, U.S. Department Freshwater Crawfish Tail Meat from the provisions effective January 1, 1995, the of Commerce, 14th Street and People’s Republic of China, 66 FR 46602 effective date of the amendments made Constitution Avenue, NW., Washington, (September 6, 2001). to the Act by the Uruguay Round
VerDate 11
Agreements Act. In addition, unless Steel products to be included in the 7208.27.00.30, 7208.27.00.60, otherwise indicated, all citations to the scope of this investigation, regardless of 7208.36.00.30, 7208.36.00.60, Department’s regulations are to the definitions in the Harmonized Tariff 7208.37.00.30, 7208.37.00.60, regulations at 19 CFR part 351 (2000). Schedule of the United States (HTSUS), 7208.38.00.15, 7208.38.00.30, are products in which: (i) Iron Background 7208.38.00.90, 7208.39.00.15, predominates, by weight, over each of 7208.39.00.30, 7208.39.00.90, On September 21, 2001, the the other contained elements; (ii) the 7208.40.60.30, 7208.40.60.60, Department issued its final carbon content is 2 percent or less, by 7208.53.00.00, 7208.54.00.00, determination in the antidumping duty weight; and (iii) none of the elements 7208.90.00.00, 7211.14.00.90, investigation of hot-rolled steel from listed below exceeds the quantity, by 7211.19.15.00, 7211.19.20.00, Ukraine. See Notice of Final weight, respectively indicated: 7211.19.30.00, 7211.19.45.00, 1.80 percent of manganese, or Determination of Sales At Less Than 7211.19.60.00, 7211.19.75.30, Fair Value: Certain Hot-Rolled Carbon 2.25 percent of silicon, or 7211.19.75.60, and 7211.19.75.90. Steel Flat Products from Ukraine, 66 FR 1.00 percent of copper, or Certain hot-rolled carbon steel flat 50401 (October 3, 2001) (‘‘Final 0.50 percent of aluminum, or Determination’’). 1.25 percent of chromium, or products covered by this investigation, including: Vacuum degassed fully On November 13, 2001, the 0.30 percent of cobalt, or stabilized; high strength low alloy; and International Trade Commission (‘‘ITC’’) 0.40 percent of lead, or notified the Department of its final 1.25 percent of nickel, or the substrate for motor lamination steel 0.30 percent of tungsten, or determination pursuant to section may also enter under the following tariff 0.10 percent of molybdenum, or 735(b)(1)(A)(i) of the Act that an numbers: 7225.11.00.00, 7225.19.00.00, 0.10 percent of niobium, or industry in the United States is 7225.30.30.50, 7225.30.70.00, 0.15 percent of vanadium, or 7225.40.70.00, 7225.99.00.90, materially injured by reason of less- 0.15 percent of zirconium. than-fair-value imports of subject 7226.11.10.00, 7226.11.90.30, All products that meet the physical 7226.11.90.60, 7226.19.10.00, merchandise from Ukraine. and chemical description provided 7226.19.90.00, 7226.91.50.00, above are within the scope of this Scope of Investigation 7226.91.70.00, 7226.91.80.00, and investigation unless otherwise 7226.99.00.00. Subject merchandise For purposes of this investigation, the excluded. The following products, by products covered are certain hot-rolled way of example, are outside or may also enter under 7210.70.30.00, carbon steel flat products of a specifically excluded from the scope of 7210.90.90.00, 7211.14.00.30, rectangular shape, of a width of 0.5 inch this investigation: 7212.40.10.00, 7212.40.50.00, and or greater, neither clad, plated, nor • Alloy hot-rolled steel products in 7212.50.00.00. Although the HTSUS coated with metal and whether or not which at least one of the chemical subheadings are provided for painted, varnished, or coated with elements exceeds those listed above convenience and U.S. Customs plastics or other non-metallic (including, e.g., American Society for purposes, the written description of the substances, in coils (whether or not in Testing and Materials (ASTM) merchandise under investigation is successively superimposed layers), specifications A543, A387, A514, A517, dispositive. regardless of thickness, and in straight A506). Antidumping Duty Order lengths of a thickness of less than 4.75 • Society of Automotive Engineers mm and of a width measuring at least (SAE)/American Iron & Steel Institute 10 times the thickness. Universal mill In accordance with section 736(a)(1) (AISI) grades of series 2300 and higher. of the Act, the Department is directing plate (i.e., flat-rolled products rolled on • Ball bearing steels, as defined in the four faces or in a closed box pass, of a Customs officers to assess, upon further HTSUS. advice by the Department, antidumping width exceeding 150 mm, but not • Tool steels, as defined in the duties equal to the amount by which the exceeding 1250 mm, and of a thickness HTSUS. of not less than 4.0 mm, not in coils and • Silico-manganese (as defined in the normal value of the merchandise without patterns in relief) of a thickness HTSUS) or silicon electrical steel with exceeds the export price (or constructed not less than 4.0 mm is not included a silicon level exceeding 2.25 percent. export price) of the merchandise for all within the scope of this investigation. • ASTM specifications A710 and relevant entries of hot-rolled carbon Specifically included within the A736. steel flat products from Ukraine. The scope of this investigation are vacuum • USS abrasion-resistant steels (USS antidumping duties will be assessed on degassed, fully stabilized (commonly AR 400, USS AR 500). all unliquidated entries of hot-rolled referred to as interstitial-free (IF)) steels, • All products (proprietary or carbon steel flat products from Ukraine high strength low alloy (HSLA) steels, otherwise) based on an alloy ASTM entered, or withdrawn from warehouse, and the substrate for motor lamination specification (sample specifications: for consumption on or after May 3, steels. IF steels are recognized as low ASTM A506, A507). 2001, the date on which the Department carbon steels with micro-alloying levels • Non-rectangular shapes, not in published its notice of preliminary of elements such as titanium or niobium coils, which are the result of having determination in the Federal Register. (also commonly referred to as been processed by cutting or stamping Customs officers must require, at the columbium), or both, added to stabilize and which have assumed the character same time as importers would normally carbon and nitrogen elements. HSLA of articles or products classified outside deposit estimated duties on this steels are recognized as steels with chapter 72 of the HTSUS. merchandise, a cash deposit equal to the micro-alloying levels of elements such The merchandise subject to this estimated weighted-average as chromium, copper, niobium, investigation is classified in the HTSUS antidumping duty margins as noted vanadium, and molybdenum. The at subheadings: 7208.10.15.00, below. The ‘‘Ukraine-Wide’’ rate applies substrate for motor lamination steels 7208.10.30.00, 7208.10.60.00, to all exporters of subject merchandise contains micro-alloying levels of 7208.25.30.00, 7208.25.60.00, from Ukraine. elements such as silicon and aluminum. 7208.26.00.30, 7208.26.00.60,
VerDate 11
Weighted- painted, varnished, or coated with (including, e.g., American Society for Exporter/manufacturer average plastics or other non-metallic Testing and Materials (ASTM) margin substances, in coils (whether or not in specifications A543, A387, A514, A517, successively superimposed layers), A506). Ukraine-Wide Rate ...... 90.33 regardless of thickness, and in straight • Society of Automotive Engineers (SAE)/American Iron & Steel Institute This notice constitutes the lengths of a thickness of less than 4.75 mm and of a width measuring at least (AISI) grades of series 2300 and higher. antidumping duty order with respect to • Ball bearing steels, as defined in the hot-rolled carbon steel flat products 10 times the thickness. Universal mill plate (i.e., flat-rolled products rolled on HTSUS. from Ukraine. Interested parties may • four faces or in a closed box pass, of a Tool steels, as defined in the contact the Department’s Central HTSUS. Records Unit, room B–099 of the main width exceeding 150 mm, but not • exceeding 1250 mm, and of a thickness Silico-manganese (as defined in the Department of Commerce building, for HTSUS) or silicon electrical steel with copies of an updated list of antidumping of not less than 4.0 mm, not in coils and without patterns in relief) of a thickness a silicon level exceeding 2.25 percent. duty orders currently in effect. • ASTM specifications A710 and not less than 4.0 mm is not included This order is published in accordance A736. with section 736(a) of the Act. within the scope of this investigation. • USS abrasion-resistant steels (USS Specifically included within the Dated: November 20, 2001. AR 400, USS AR 500). scope of this order are vacuum • Faryar Shirzad, All products (proprietary or degassed, fully stabilized (commonly otherwise) based on an alloy ASTM Assistant Secretary for Import referred to as interstitial-free (IF)) steels, Administration. specification (sample specifications: high strength low alloy (HSLA) steels, ASTM A506, A507). [FR Doc. 01–29665 Filed 11–28–01; 8:45 am] and the substrate for motor lamination • Non-rectangular shapes, not in BILLING CODE 3510–DS–P steels. IF steels are recognized as low coils, which are the result of having carbon steels with micro-alloying levels been processed by cutting or stamping of elements such as titanium or niobium DEPARTMENT OF COMMERCE and which have assumed the character (also commonly referred to as of articles or products classified outside columbium), or both, added to stabilize International Trade Administration chapter 72 of the HTSUS. carbon and nitrogen elements. HSLA The merchandise subject to this order [A–570–865] steels are recognized as steels with is classified in the HTSUS at micro-alloying levels of elements such subheadings: 7208.10.15.00, Notice of the Antidumping Duty Order: as chromium, copper, niobium, 7208.10.30.00, 7208.10.60.00, Certain Hot-Rolled Carbon Steel Flat vanadium, and molybdenum. The 7208.25.30.00, 7208.25.60.00, Products From the People’s Republic substrate for motor lamination steels 7208.26.00.30, 7208.26.00.60, of China contains micro-alloying levels of 7208.27.00.30, 7208.27.00.60, AGENCY: Import Administration, elements such as silicon and aluminum. 7208.36.00.30, 7208.36.00.60, International Trade Administration, Steel products to be included in the 7208.37.00.30, 7208.37.00.60, Department of Commerce. scope of this order, regardless of 7208.38.00.15, 7208.38.00.30, definitions in the Harmonized Tariff ACTION: 7208.38.00.90, 7208.39.00.15, Notice of antidumping duty Schedule of the United States (HTSUS), order. 7208.39.00.30, 7208.39.00.90, are products in which: (i) Iron 7208.40.60.30, 7208.40.60.60, predominates, by weight, over each of EFFECTIVE DATE: November 29, 2001. 7208.53.00.00, 7208.54.00.00, the other contained elements; (ii) the FOR FURTHER INFORMATION CONTACT: 7208.90.00.00, 7211.14.00.90, carbon content is 2 percent or less, by 7211.19.15.00, 7211.19.20.00, Carrie Blozy, Import Administration, weight; and (iii) none of the elements International Trade Administration, 7211.19.30.00, 7211.19.45.00, listed below exceeds the quantity, by 7211.19.60.00, 7211.19.75.30, U.S. Department of Commerce, 14th weight, respectively indicated: Street and Constitution Avenue NW., 7211.19.75.60, and 7211.19.75.90. 1.80 percent of manganese, or Certain hot-rolled carbon steel flat Washington, DC 20230; telephone: (202) 2.25 percent of silicon, or 482–0165. products covered by this order, 1.00 percent of copper, or including: Vacuum degassed fully 0.50 percent of aluminum, or The Applicable Statute stabilized; high strength low alloy; and 1.25 percent of chromium, or Unless otherwise indicated, all 0.30 percent of cobalt, or the substrate for motor lamination steel citations to the statute are references to 0.40 percent of lead, or may also enter under the following tariff the provisions effective January 1, 1995, 1.25 percent of nickel, or numbers: 7225.11.00.00, 7225.19.00.00, the effective date of the amendments 0.30 percent of tungsten, or 7225.30.30.50, 7225.30.70.00, made to the Tariff Act of 1930 (‘‘the 0.10 percent of molybdenum, or 7225.40.70.00, 7225.99.00.90, Act’’) by the Uruguay Round 0.10 percent of niobium, or 7226.11.10.00, 7226.11.90.30, Agreements Act. In addition, unless 0.15 percent of vanadium, or 7226.11.90.60, 7226.19.10.00, otherwise indicated, all citations to the 0.15 percent of zirconium. 7226.19.90.00, 7226.91.50.00, Department’s regulations are to the All products that meet the physical 7226.91.70.00, 7226.91.80.00, and regulations at 19 CFR part 351 (2001). and chemical description provided 7226.99.00.00. Subject merchandise above are within the scope of this order may also enter under 7210.70.30.00, Scope of Order unless otherwise excluded. The 7210.90.90.00, 7211.14.00.30, The products covered by this following products, for example, are 7212.40.10.00, 7212.40.50.00, and antidumping duty order are certain hot- outside or specifically excluded from 7212.50.00.00. Although the HTSUS rolled carbon steel flat products of a the scope of this order: subheadings are provided for rectangular shape, of a width of 0.5 inch • Alloy hot-rolled steel products in convenience and U.S. Customs or greater, neither clad, plated, nor which at least one of the chemical purposes, the written description of the coated with metal and whether or not elements exceeds those listed above merchandise is dispositive.
VerDate 11
Antidumping Duty Order This notice constitutes the painted, varnished, or coated with antidumping duty order with respect to plastics or other non-metallic In accordance with section 735(a) of hot rolled steel from the PRC pursuant substances, in coils (whether or not in the Act, the Department made its final to section 735(a) of the Act. Interested successively superimposed layers), determination that hot-rolled carbon parties may contact the Department’s regardless of thickness, and in straight steel flat products from the People’s Central Records Unit, Room B–099 of lengths of a thickness of less than 4.75 Republic of China (‘‘PRC’’) is being sold the main Commerce building, for copies mm and of a width measuring at least at less than fair value. See Notice of of an updated list of antidumping duty 10 times the thickness. Universal mill Final Determination of Sales at Less orders currently in effect. plate (i.e., flat-rolled products rolled on Than Fair Value: Hot-Rolled Carbon This order is published in accordance four faces or in a closed box pass, of a Steel Flat Products From The People’s with section 736(a) of the Act and 19 width exceeding 150 mm, but not Republic of China, 66 FR 49632 CFR 351.211. exceeding 1250 mm, and of a thickness (September 28, 2001). of not less than 4.0 mm, not in coils and On November 13, 2001, in accordance Dated: November 20, 2001. Faryar Shirzad, without patterns in relief) of a thickness with section 735(d) of the Act, the not less than 4.0 mm is not included International Trade Commission (‘‘the Assistant Secretary for Import Administration. within the scope of this order. Commission’’) notified the Department Specifically included within the scope [FR Doc. 01–29666 Filed 11–28–01; 8:45 am] of its final determination pursuant to of this order are vacuum degassed, fully section 735(b)(1)(A)(e) of the Act that an BILLING CODE 3510–DS–P stabilized (commonly referred to as industry in the United States is interstitial-free (IF)) steels, high strength materially injured by reason of less- DEPARTMENT OF COMMERCE low alloy (HSLA) steels, and the than-fair-value imports of subject substrate for motor lamination steels. IF merchandise from the PRC. Therefore, International Trade Administration steels are recognized as low carbon in accordance with section 736(a)(1) of steels with micro-alloying levels of the Act, the Department will direct U.S. [A–549–817] elements such as titanium or niobium Customs to assess, upon further advice Antidumping Duty Order: Certain Hot- (also commonly referred to as by the Department, antidumping duties columbium), or both, added to stabilize equal to the amount by which the Rolled Carbon Steel Flat Products From Thailand carbon and nitrogen elements. HSLA normal value of the merchandise steels are recognized as steels with exceeds the export price of the AGENCY: Import Administration, micro-alloying levels of elements such merchandise for all relevant entries of International Trade Administration, as chromium, copper, niobium, hot rolled steel from the PRC. These Department of Commerce. vanadium, and molybdenum. The antidumping duties will be assessed on substrate for motor lamination steels all unliquidated entries of hot rolled ACTION: Notice of antidumping duty order. contains micro-alloying levels of steel from the PRC entered, or elements such as silicon and aluminum. withdrawn from the warehouse, for EFFECTIVE DATE: November 29, 2001. Steel products to be included in the consumption on or after May 3, 2001, scope of this order, regardless of the date on which the Department FOR FURTHER INFORMATION CONTACT: Angelica Mendoza or Nancy Decker at definitions in the Harmonized Tariff published its Notice of Preliminary Schedule of the United States (HTS), are Determination of Sales at Less Than (202) 482–3019 or (202) 482–0196, respectively; Antidumping and products in which: (i) Iron Fair Value: Hot-Rolled Carbon Steel Flat predominates, by weight, over each of Products From The People’s Republic of Countervailing Duty Enforcement Group III, Import Administration, International the other contained elements; (ii) the China (66 FR 22183). Customs must carbon content is 2 percent or less, by require, at the same time as importers Trade Administration, U.S. Department of Commerce, 14th Street and weight; and (iii) none of the elements would normally deposit estimated listed below exceeds the quantity, by duties on this merchandise, a cash Constitution Avenue NW., Washington, DC 20230. weight, respectively indicated: deposit equal to the estimated weighted- 1.80 percent of manganese, or SUPPLEMENTARY INFORMATION: average antidumping duty margins as 2.25 percent of silicon, or noted below. The ‘‘PRC-wide’’ rate Applicable Statute and Regulations 1.00 percent of copper, or applies to all exporters of subject 0.50 percent of aluminum, or merchandise not specifically listed. The Unless otherwise indicated, all 1.25 percent of chromium, or weighted-average dumping margins are citations to the statute are references to 0.30 percent of cobalt, or as follows: the provisions effective January 1, 1995, 0.40 percent of lead, or the effective date of the amendments 1.25 percent of nickel, or Weighted- made to the Tariff Act of 1930 (the Act) 0.30 percent of tungsten, or Manufacturer/exporter average by the Uruguay Round Agreements Act. 0.10 percent of molybdenum, or margin In addition, unless otherwise indicated, (In percent) 0.10 percent of niobium, or all citations to the Department of 0.15 percent of vanadium, or Angang Group International Commerce (the Department) regulations 0.15 percent of zirconium. Trade Corporation ...... 69.85 are to the regulations at 19 CFR part 351 All products that meet the physical Shanghai Baosteel Group Cor- (2001). and chemical description provided poration ...... 64.20 above are within the scope of this order Benxi Iron & Steel Group Co., Scope of Order unless otherwise excluded. The Ltd...... 90.83 For purposes of this order, the following products, by way of example, Panzhihua Iron & Steel (Group) products covered are certain hot-rolled are outside or specifically excluded Company ...... 65.59 carbon steel flat products of a from the scope of this order: Wuhan Iron & Steel Group Cor- rectangular shape, of a width of 0.5 inch • Alloy hot-rolled steel products in poration ...... 65.59 PRC-Wide ...... 90.83 or greater, neither clad, plated, nor which at least one of the chemical coated with metal and whether or not elements exceeds those listed above
VerDate 11
(including, e.g., ASTM specifications Antidumping Duty Order Notice of Final Affirmative A543, A387, A514, A517, A506). In accordance with section 735(a) of Countervailing Duty Determination: • Society of Automotive Engineers the Act, the Department made its final Certain Hot-Rolled Carbon Steel Flat (SAE)/American Iron and Steel Institute determination that certain hot-rolled Products from Thailand, 66 FR 50410 (AISI) grades of series 2300 and higher. carbon steel flat products (hot-rolled (October 3, 2001). • Ball bearings steels, as defined in steel) from Thailand is being sold at Therefore, for all entries of hot-rolled the HTS. less-than-fair-value (LTFV). See Notice steel from Thailand entered, or withdrawn from warehouse, for • Tool steels, as defined in the HTS. of Final Determination of Sales at Less • Than Fair Value; Certain Hot-Rolled consumption on or after the date on Silico-manganese (as defined in the which the order in the companion HTS) or silicon electrical steel with a Carbon Steel Flat Products from Thailand, 66 FR 49622 (September 28, countervailing duty investigation is silicon level exceeding 2.25 percent. published in the Federal Register, we • 2001). On November 13, 2001, the U.S. ASTM specifications A710 and will request for duty deposit purposes A736. International Trade Commission (the ITC) notified the Department of its final that the Customs Service deduct the • USS Abrasion-resistant steels (USS determination, pursuant to section portion of the margin attributable to AR 400, USS AR 500). export subsidies as determined in the • 735(b)(1)(A)(i) of the Act, that an All products (proprietary or industry in the United States is countervailing duty investigation. The otherwise) based on an alloy ASTM materially injured by reason of LTFV antidumping duty cash deposit rates, as specification (sample specifications: imports of subject merchandise from adjusted for export subsidies, are as ASTM A506, A507). Thailand. follows: • Non-rectangular shapes, not in In accordance with section 736(a)(1) coils, which are the result of having Margin of the Act, the Department will direct Manufacturer/exporter (In percent) been processed by cutting or stamping Customs officers to assess, upon further and which have assumed the character advice by the Department, antidumping Sahaviriya Steel Industries ...... 3.86 of articles or products classified outside duties equal to the amount by which the Siam Strip Mill Public ...... 19.72 chapter 72 of the HTS. normal value of the subject merchandise All Others ...... 3.86 The merchandise subject to this order exceeds the U.S. price of the subject is classified in the HTS at subheadings: merchandise for all relevant entries of This notice constitutes the 7208.10.15.00, 7208.10.30.00, hot-rolled steel from Thailand. These antidumping duty order with respect to 7208.10.60.00, 7208.25.30.00, antidumping duties will be assessed on hot-rolled steel from Thailand. 7208.25.60.00, 7208.26.00.30, all unliquidated entries of hot-rolled Interested parties may contact the 7208.26.00.60, 7208.27.00.30, steel from Thailand entered, or Department’s Central Records Unit, 7208.27.00.60, 7208.36.00.30, withdrawn from warehouse, for room B–099 of the main Commerce 7208.36.00.60, 7208.37.00.30, consumption on or after May 3, 2001, building, for copies of an updated list of 7208.37.00.60, 7208.38.00.15, the date on which the Department the antidumping duty orders currently 7208.38.00.30, 7208.38.00.90, published its notice of preliminary in effect. 7208.39.00.15, 7208.39.00.30, determination for this investigation in This order is published in accordance 7208.39.00.90, 7208.40.60.30, the Federal Register. See Notice of with section 736(a) of the Act. 7208.40.60.60, 7208.53.00.00, Preliminary Determination of Sales at Dated: November 21, 2001. 7208.54.00.00, 7208.90.00.00, Less Than Fair Value; Certain Hot- Faryar Shirzad, 7211.14.00.90, 7211.19.15.00, Rolled Carbon Steel Flat Products from Assistant Secretary for Import 7211.19.20.00, 7211.19.30.00, Thailand, 66 FR 22199, (May 3, 2001). Administration. 7211.19.45.00, 7211.19.60.00, On or after the date of publication of [FR Doc. 01–29667 Filed 11–28–01; 8:45 am] 7211.19.75.30, 7211.19.75.60, and this notice in the Federal Register, BILLING CODE 3510–DS–P 7211.19.75.90. Certain hot-rolled flat- Customs officers must require, at the rolled carbon steel flat products covered same time as importers would normally by this order, including: Vacuum deposit estimated duties on this DEPARTMENT OF COMMERCE degassed fully stabilized; high strength merchandise, a cash deposit equal to the low alloy; and the substrate for motor estimated weighted-average International Trade Administration lamination steel may also enter under antidumping duty margins: [A–583–835] the following tariff numbers: 7225.11.00.00, 7225.19.00.00, Cash de- Notice of Antidumping Duty Order; 7225.30.30.50, 7225.30.70.00, Manufacturer/exporter posit rate (In percent) Certain Hot-Rolled Carbon Steel Flat 7225.40.70.00, 7225.99.00.90, Products From Taiwan 7226.11.10.00, 7226.11.90.30, Sahaviriya Steel Industries ...... 4.44 7226.11.90.60, 7226.19.10.00, Siam Strip Mill Public ...... 20.30 AGENCY: Import Administration, 7226.19.90.00, 7226.91.50.00, All Others ...... 4.44 International Trade Administration, 7226.91.70.00, 7226.91.80.00, and Department of Commerce. 7226.99.00.00. Subject merchandise The ‘‘All Others’’ rates apply to all ACTION: Notice of antidumping duty may also enter under 7210.70.30.00, exporters in Thailand of subject order. 7210.90.90.00, 7211.14.00.30, merchandise not specifically listed. 7212.40.10.00, 7212.40.50.00, and Article VI.5 of the General Agreement EFFECTIVE DATE: November 29, 2001. 7212.50.00.00. Although the HTS on Tariffs and Trade (GATT 1994) FOR FURTHER INFORMATION CONTACT: subheadings are provided for prohibits assessing dumping duties on Patricia Tran at (202) 482–1121 or convenience and U.S. Customs the portion of the margin attributable to Robert James at (202) 482–0649, purposes, the written description of the an export subsidy. In this case, the Antidumping and Countervailing Duty merchandise under this order is product under investigation is subject to Enforcement Group III, Import dispositive. a countervailing duty investigation. See Administration, International Trade
VerDate 11
Administration, U.S. Department of listed below exceeds the quantity, by 7211.19.15.00, 7211.19.20.00, Commerce, 14th Street and Constitution weight, respectively indicated: 7211.19.30.00, 7211.19.45.00, Avenue, NW., Washington, DC 20230. 1.80 percent of manganese, or 7211.19.60.00, 7211.19.75.30, 2.25 percent of silicon, or 7211.19.75.60, and 7211.19.75.90. Applicable Statute and Regulations 1.00 percent of copper, or Certain hot-rolled carbon steel flat Unless otherwise indicated, all 0.50 percent of aluminum, or products covered by these citations to the Tariff Act of 1930, as 1.25 percent of chromium, or investigations, including: Vacuum amended (the Tariff Act), are to the 0.30 percent of cobalt, or degassed fully stabilized; high strength provisions effective January 1, 1995, the 0.40 percent of lead, or low alloy; and the substrate for motor effective date of the amendments made 1.25 percent of nickel, or lamination steel may also enter under to the Tariff Act by the Uruguay Round 0.30 percent of tungsten, or the following tariff numbers: Agreements Act (URAA). In addition, 0.10 percent of molybdenum, or 7225.11.00.00, 7225.19.00.00, unless otherwise indicated, all citations 0.10 percent of niobium, or 7225.30.30.50, 7225.30.70.00, to the Department’s regulations are to 0.15 percent of vanadium, or 7225.40.70.00, 7225.99.00.90, 0.15 percent of zirconium. the regulations codified at 19 CFR part 7226.11.10.00, 7226.11.90.30, All products that meet the physical 351 (April 1, 2000). 7226.11.90.60, 7226.19.10.00, and chemical description provided 7226.19.90.00, 7226.91.50.00, Scope of the Order above are within the scope of these 7226.91.70.00, 7226.91.80.00, and investigations unless otherwise The products covered by this order 7226.99.00.00. Subject merchandise excluded. The following products, by are certain hot-rolled carbon steel flat may also enter under 7210.70.30.00, way of example, are outside or products of a rectangular shape, of a 7210.90.90.00, 7211.14.00.30, specifically excluded from the scope of width of 0.5 inch or greater, neither 7212.40.10.00, 7212.40.50.00, and these investigations: clad, plated, nor coated with metal and 7212.50.00.00. Although the HTSUS • Alloy hot-rolled steel products in whether or not painted, varnished, or subheadings are provided for which at least one of the chemical coated with plastics or other non- convenience and U.S. Customs elements exceeds those listed above metallic substances, in coils (whether or purposes, the written description of the (including, e.g., American Society for not in successively superimposed merchandise under investigation is Testing and Materials (ASTM) layers), regardless of thickness, and in dispositive. specifications A543, A387, A514, A517, straight lengths of a thickness of less A506). Antidumping Duty Orders than 4.75 mm and of a width measuring • Society of Automotive Engineers In accordance with section 735(a) of at least 10 times the thickness. (SAE)/American Iron & Steel Institute the Tariff Act, the Department made its Universal mill plate (i.e., flat-rolled (AISI) grades of series 2300 and higher. final determination that certain hot- products rolled on four faces or in a • Ball bearing steels, as defined in the rolled carbon steel flat products from closed box pass, of a width exceeding HTSUS. Taiwan are being sold at less than fair 150 mm, but not exceeding 1250 mm, • Tool steels, as defined in the value. See Notice of Final Determination and of a thickness of not less than 4.0 HTSUS. of Sales at Less Than Fair Value: mm, not in coils and without patterns • Silico-manganese (as defined in the Certain Hot-rolled Carbon Steel Flat in relief) of a thickness not less than 4.0 HTSUS) or silicon electrical steel with Products from Taiwan, 66 FR 49617, mm is not included within the scope of a silicon level exceeding 2.25 percent. September 28, 2001. On November 13, these investigations. • ASTM specifications A710 and 2001, the International Trade Specifically included within the A736. Commission (the Commission) notified scope of these investigations are • USS abrasion-resistant steels (USS the Department of its final vacuum degassed, fully stabilized AR 400, USS AR 500). determination pursuant to section (commonly referred to as interstitial-free • All products (proprietary or 735(b)(1)(A)(i) of the Tariff Act that an (IF)) steels, high strength low alloy otherwise) based on an alloy ASTM industry in the United States is (HSLA) steels, and the substrate for specification (sample specifications: materially injured by reason of less- motor lamination steels. IF steels are ASTM A506, A507). than-fair-value imports of subject recognized as low carbon steels with • Non-rectangular shapes, not in merchandise from Taiwan. micro-alloying levels of elements such coils, which are the result of having Therefore, in accordance with section as titanium or niobium (also commonly been processed by cutting or stamping 736(a)(1) of the Tariff Act, the referred to as columbium), or both, and which have assumed the character Department will direct Customs officers added to stabilize carbon and nitrogen of articles or products classified outside to assess, upon further advice by the elements. HSLA steels are recognized as chapter 72 of the HTSUS. Department, antidumping duties equal steels with micro-alloying levels of The merchandise subject to these to the amount by which the normal elements such as chromium, copper, investigations is classified in the value of the merchandise exceeds the niobium, vanadium, and molybdenum. HTSUS at subheadings: 7208.10.15.00, export price (or constructed export The substrate for motor lamination 7208.10.30.00, 7208.10.60.00, price) of the merchandise for all steels contains micro-alloying levels of 7208.25.30.00, 7208.25.60.00, relevant entries of certain hot-rolled elements such as silicon and aluminum. 7208.26.00.30, 7208.26.00.60, carbon steel flat products from Taiwan. Steel products to be included in the 7208.27.00.30, 7208.27.00.60, These antidumping duties will be scope of these investigations, regardless 7208.36.00.30, 7208.36.00.60, assessed on all unliquidated entries of of definitions in the Harmonized Tariff 7208.37.00.30, 7208.37.00.60, certain hot-rolled carbon steel flat Schedule of the United States (HTSUS), 7208.38.00.15, 7208.38.00.30, products from Taiwan entered, or are products in which: (i) Iron 7208.38.00.90, 7208.39.00.15, withdrawn from warehouse, for predominates, by weight, over each of 7208.39.00.30, 7208.39.00.90, consumption on or after May 3, 2001, the other contained elements; (ii) the 7208.40.60.30, 7208.40.60.60, the date on which the Department carbon content is 2 percent or less, by 7208.53.00.00, 7208.54.00.00, published its notice of preliminary weight; and (iii) none of the elements 7208.90.00.00, 7211.14.00.90, determination in the Federal Register
VerDate 11
(66 FR 22204). Customs officers must Applicable Statute and Regulations 1.00 percent of copper, or require, at the same time as importers Unless otherwise indicated, all 0.50 percent of aluminum, or 1.25 percent of chromium, or would normally deposit estimated citations to the statute are references to 0.30 percent of cobalt, or duties on this merchandise, a cash the provisions effective January 1, 1995, deposit equal to the estimated weighted- 0.40 percent of lead, or the effective date of the amendments 1.25 percent of nickel, or average antidumping duty margins as made to the Tariff Act of 1930 (the Tariff noted below. The ‘‘All Others’’ rate 0.30 percent of tungsten, or Act) by the Uruguay Round Agreements 0.10 percent of molybdenum, or applies to all exporters of subject certain Act. In addition, unless otherwise hot-rolled carbon steel flat products not 0.10 percent of niobium, or indicated, all citations to the 0.15 percent of vanadium, or specifically listed. The weighted- Department of Commerce (the average dumping margins are as follows: 0.15 percent of zirconium. Department’s) regulations are to the All products that meet the physical regulations at 19 CFR part 351 (2000). and chemical description provided Manufacturer/exporter Margin (In percent) Scope of Order above are within the scope of this order unless otherwise excluded. The China Steel Corporation (in- For purposes of this order, the following products, by way of example, cluding Yieh Loong) ...... 29.14 products covered are certain hot-rolled are outside or specifically excluded An Feng Steel Co., Ltd...... 29.14 carbon steel flat products of a from the scope of this order: All Others ...... 20.28 rectangular shape, of a width of 0.5 inch • Alloy hot-rolled steel products in or greater, neither clad, plated, nor which at least one of the chemical This notice constitutes the coated with metal and whether or not elements exceeds those listed above antidumping duty order with respect to painted, varnished, or coated with (including, e.g., ASTM specifications certain hot-rolled carbon steel flat plastics or other non-metallic A543, A387, A514, A517, A506). products from Taiwan. Interested substances, in coils (whether or not in • Society of Automotive Engineers parties may contact the Department’s successively superimposed layers), (SAE)/American Iron and Steel Institute Central Records Unit, Room B–099 of regardless of thickness, and in straight (AISI) grades of series 2300 and higher. the main Commerce building, for copies lengths of a thickness of less than 4.75 • Ball bearings steels, as defined in of an updated list of antidumping duty mm and of a width measuring at least the HTS. orders currently in effect. 10 times the thickness. Universal mill • Tool steels, as defined in the HTS. This order is published in accordance plate (i.e., flat-rolled products rolled on • Silico-manganese (as defined in the with section 736(a) of the Tariff Act of four faces or in a closed box pass, of a HTS) or silicon electrical steel with a 1930, as amended. width exceeding 150 mm, but not silicon level exceeding 2.25 percent. exceeding 1250 mm, and of a thickness • ASTM specifications A710 and Dated: November 21, 2001. of not less than 4.0 mm, not in coils and A736. Faryar Shirzad, without patterns in relief) of a thickness • USS Abrasion-resistant steels (USS Assistant Secretary for Import not less than 4.0 mm is not included AR 400, USS AR 500). Administration. within the scope of this order. • All products (proprietary or [FR Doc. 01–29668 Filed 11–28–01; 8:45 am] Specifically included within the scope otherwise) based on an alloy ASTM BILLING CODE 3510–DS–P of this order are vacuum degassed, fully specification (sample specifications: stabilized (commonly referred to as ASTM A506, A507). interstitial-free (IF)) steels, high strength • Non-rectangular shapes, not in DEPARTMENT OF COMMERCE low alloy (HSLA) steels, and the coils, which are the result of having substrate for motor lamination steels. IF been processed by cutting or stamping International Trade Administration steels are recognized as low carbon and which have assumed the character steels with micro-alloying levels of of articles or products classified outside [A–421–807] elements such as titanium or niobium chapter 72 of the HTS. (also commonly referred to as The merchandise subject to this order Antidumping Duty Order: Certain Hot- columbium), or both, added to stabilize is classified in the HTS at subheadings: Rolled Carbon Steel Flat Products carbon and nitrogen elements. HSLA 7208.10.15.00, 7208.10.30.00, From the Netherlands steels are recognized as steels with 7208.10.60.00, 7208.25.30.00, micro-alloying levels of elements such 7208.25.60.00, 7208.26.00.30, AGENCY: Import Administration, 7208.26.00.60, 7208.27.00.30, International Trade Administration, as chromium, copper, niobium, 7208.27.00.60, 7208.36.00.30, Department of Commerce. vanadium, and molybdenum. The substrate for motor lamination steels 7208.36.00.60, 7208.37.00.30, ACTION: Notice of Antidumping Duty contains micro-alloying levels of 7208.37.00.60, 7208.38.00.15, Order. elements such as silicon and aluminum. 7208.38.00.30, 7208.38.00.90, Steel products to be included in the 7208.39.00.15, 7208.39.00.30, EFFECTIVE DATE: November 29, 2001. scope of this order, regardless of 7208.39.00.90, 7208.40.60.30, definitions in the Harmonized Tariff 7208.40.60.60, 7208.53.00.00, FOR FURTHER INFORMATION CONTACT: Schedule of the United States (HTS), are 7208.54.00.00, 7208.90.00.00, Melissa Blackledge at (202) 482–3518 or products in which: (i) Iron 7211.14.00.90, 7211.19.15.00, Robert James at (202) 482–0649, predominates, by weight, over each of 7211.19.20.00, 7211.19.30.00, Antidumping and Countervailing Duty the other contained elements; (ii) the 7211.19.45.00, 7211.19.60.00, Enforcement Group III, Import carbon content is 2 percent or less, by 7211.19.75.30, 7211.19.75.60, and Administration, International Trade weight; and (iii) none of the elements 7211.19.75.90. Certain hot-rolled flat- Administration, U.S. Department of listed below exceeds the quantity, by rolled carbon steel flat products covered Commerce, 14th Street and Constitution weight, respectively indicated: by this order, including: Vacuum Avenue NW, Washington, DC 20230. 1.80 percent of manganese, or degassed fully stabilized; high strength SUPPLEMENTARY INFORMATION: 2.25 percent of silicon, or low alloy; and the substrate for motor
VerDate 11
lamination steel may also enter under the Netherlands, 66 FR 22146, (May 3, the provisions effective January 1, 1995, the following tariff numbers: 2001). the effective date of the amendments 7225.11.00.00, 7225.19.00.00, On or after the date of publication of made to the Tariff Act of 1930 (the Act) 7225.30.30.50, 7225.30.70.00, this notice in the Federal Register, by the Uruguay Round Agreements Act 7225.40.70.00, 7225.99.00.90, Customs officers must require, at the (URAA). In addition, unless otherwise 7226.11.10.00, 7226.11.90.30, same time as importers would normally indicated, all citations to the 7226.11.90.60, 7226.19.10.00, deposit estimated duties on this Department of Commerce (the 7226.19.90.00, 7226.91.50.00, merchandise, a cash deposit equal to the Department) regulations refer to the 7226.91.70.00, 7226.91.80.00, and estimated weighted-average regulations codified at 19 CFR part 351 7226.99.00.00. Subject merchandise antidumping duty margins as noted (2000). may also enter under 7210.70.30.00, below. The ‘‘All Others’’ rates apply to Scope of Order 7210.90.90.00, 7211.14.00.30, all exporters in the Netherlands of 7212.40.10.00, 7212.40.50.00, and subject merchandise not specifically For purposes of this order, the 7212.50.00.00. Although the HTS listed. The weighted-average dumping products covered are certain hot-rolled subheadings are provided for margins are as follows: carbon steel flat products of a convenience and U.S. Customs rectangular shape, of a width of 0.5 inch purposes, the written description of the Cash de- or greater, neither clad, plated, nor merchandise under this order is Manufacturer/Exporter posit rate coated with metal and whether or not dispositive. (percent) painted, varnished, or coated with plastics or other non-metallic Antidumping Duty Order Corus Staal BV ...... 2.59 All Others ...... 2.59 substances, in coils (whether or not in In accordance with section 735(a) of successively superimposed layers), the Act, the Department made its final This notice constitutes the regardless of thickness, and in straight determination that certain hot-rolled antidumping duty order with respect to length, of a thickness of less than 4.75 carbon steel flat products (hot-rolled hot-rolled steel from the Netherlands. mm and of a width measuring at least steel) from the Netherlands is being sold Interested parties may contact the 10 times the thickness. Universal mill at less-than-fair-value (LTFV). See Department’s Central Records Unit, plate (i.e., flat-rolled products rolled on Notice of Final Determination of Sales room B–099 of the main Commerce four faces or in a closed box pass, of a at Less Than Fair Value; Certain Hot- building, for copies of an updated list of width exceeding 150 mm, but not Rolled Carbon Steel Flat Products from the antidumping duty orders currently exceeding 1250 mm, and of a thickness the Netherlands, 66 FR 50408 (October in effect. of not less than 4.0 mm, not in coils and 3, 2001). On October 24, 2001, the This order is published in accordance without patterns in relief) of a thickness Department issued an amended final with section 736(a) of the Tariff Act. not less than 4.0 mm is not included determination (see Notice of Amended within the scope of this order. Final Determination of Sales at Less Dated: November 21, 2001. Specifically included within the Than Fair Value; Certain Hot-Rolled Faryar Shirzad, scope of this order are vacuum Carbon Steel Flat Products from the Assistant Secretary for Import degassed, fully stabilized (commonly Netherlands, 66 FR 55637, November 2, Administration. referred to as interstitial-free (IF)) steels, 2001). On November 13, 2001, the U.S. [FR Doc. 01–29669 Filed 11–28–01; 8:45 am] high strength low alloy (HSLA) steels, International Trade Commission (the BILLING CODE 3510–DS–P and the substrate for motor lamination ITC) notified the Department of its final steels. IF steels are recognized as low determination, pursuant to section carbon steels with micro-alloying levels 735(b)(1)(A)(i) of the Act, that an DEPARTMENT OF COMMERCE of elements such as titanium or niobium industry in the United States is (also commonly referred to as International Trade Administration materially injured by reason of LTFV columbium), or both, added to stabilize imports of subject merchandise from the [A–485–806] carbon and nitrogen elements. HSLA Netherlands. steels are recognized as steels with In accordance with section 736(a)(1) Notice of Amended Final Antidumping micro-alloying levels of elements such of the Act, the Department will direct Duty Determination and Antidumping as chromium, copper, niobium, Customs officers to assess, upon further Duty Order: Certain Hot-Rolled Carbon vanadium, and molybdenum. The advice by the Department, antidumping Steel Flat Products From Romania substrate for motor lamination steels duties equal to the amount by which the AGENCY: Import Administration, contains micro-alloying levels of normal value of the subject merchandise elements such as silicon and aluminum. exceeds the export price (or constructed International Trade Administration, Department of Commerce. Steel products to be included in the export price) of the merchandise for all scope of this order, regardless of EFFECTIVE DATE: November 29, 2001. relevant entries of hot-rolled steel from definitions in the Harmonized Tariff the Netherlands. These antidumping FOR FURTHER INFORMATION CONTACT: Schedule of the United States (HTSUS), duties will be assessed on all Christopher Riker or Charles Riggle, are products in which: (i) Iron unliquidated entries of hot-rolled steel Group II, Office 5, Import predominates, by weight, over each of from the Netherlands entered, or Administration, International Trade the other contained elements; (ii) the withdrawn from warehouse, for Administration, U.S. Department of carbon content is 2 percent or less, by consumption on or after May 3, 2001, Commerce, 14th Street and Constitution weight; and (iii) none of the elements the date on which the Department Avenue, NW, Washington, DC 20230; listed below exceeds the quantity, by published its notice of preliminary telephone: (202) 482–0186, (202) 482– weight, respectively indicated: determination for this investigation in 0650, respectively. • 1.80 percent of manganese, the Federal Register. See Notice of • The Applicable Statute and Regulations 2.25 percent of silicon, Preliminary Determination of Sales at • 1.00 percent of copper, Less Than Fair Value; Certain Hot- Unless otherwise indicated, all • 0.50 percent of aluminum, Rolled Carbon Steel Flat Products from citations to the statute are references to • 1.25 percent of chromium,
VerDate 11
• 0.30 percent of cobalt, may also enter under the following tariff In accordance with section 735(e) of • 0.40 percent of lead, numbers: 7225.11.00.00, 7225.19.00.00, the Act, we have determined that • 1.25 percent of nickel, 7225.30.30.50, 7225.30.70.00, ministerial errors were made in our final • 0.30 percent of tungsten, 7225.40.70.00, 7225.99.00.90, margin calculation in the adjustment of • 0.10 percent of molybdenum, 7226.11.10.00, 7226.11.90.30, electricity consumption and the • 0.10 percent of niobium, 7226.11.90.60, 7226.19.10.00, application of the total overhead rate for • 0.15 percent of vanadium or certain sales. For a detailed analysis of • 7226.19.90.00, 7226.91.50.00, 0.15 percent of zirconium. 7226.91.70.00, 7226.91.80.00, and these allegations, and the Department’s All products that meet the physical 7226.99.00.00. Subject merchandise position, see the October 24, 2001 and chemical description provided may also enter under 7210.70.30.00, Memorandum to Bernard T. Carreau above are within the scope of this order 7210.90.90.00, 7211.14.00.30, from Charles Riggle, regarding unless otherwise excluded. The 7212.40.10.00, 7212.40.50.00, and Ministerial Error Allegations on file in following products, by way of example, 7212.50.00.00. room B–099 of the Main Commerce are outside or specifically excluded Although the HTSUS subheadings are building (Ministerial Error Memo). from the scope of this order: This determination is based on a re- • Alloy hot-rolled steel products in provided for convenience and U.S. Customs purposes, the written examination of the calculations which at least one of the chemical performed to obtain constructed value elements exceeds those listed above description of the merchandise subject to this proceeding is dispositive. and the final dumping margins. We (including, e.g., American Society for determined that all other errors alleged Testing and Materials (ASTM) Amended Final Determination by both parties were methodological specifications A543, A387, A514, A517, and not ministerial, as defined in In accordance with section 735(a) of A506). Society of Automotive Engineers section 735(e) of the Act. In addition, the Act, on September 28, 2001, the (SAE)/American Iron & Steel Institute we discovered that two factor inputs Department published its affirmative (AISI) grades of series 2300 and higher. were mistakenly assigned incorrect final determination of the antidumping • Ball bearing steels, as defined in the surrogate freight values based on HTSUS. duty investigation of certain hot-rolled incorrect freight distances. We have • Tool steels, as defined in the carbon steel flat products from Romania determined that these errors also meet HTSUS. (Notice of Final Determination of the definition of a ministerial error. For • Silico-manganese (as defined in the Antidumping Duty Investigation: a more detailed analysis, see the HTSUS) or silicon electrical steel with Certain Hot-Rolled Carbon Steel Flat Ministerial Error Memo. We notified the a silicon level exceeding 2.25 percent. Products from Romania, 66 FR 49625). U.S. International Trade Commission • ASTM specifications A710 and On October 5 and 9, 2001, we received (ITC) of the changes in the margins A736. ministerial error allegations, timely filed resulting from the Department’s • USS abrasion-resistant steels (USS pursuant to § 351.224(c)(2) of the corrections of its ministerial errors on AR 400, USS AR 500). Department’s regulations, from the October 26, 2001. • 1 2 All products (proprietary or respondents and certain petitioners, On November 13, 2001, in accordance otherwise) based on an alloy ASTM respectively, regarding the Department’s with section 735(d) of the Act, the ITC specification (sample specifications: final margin calculations. On October notified the Department that a U.S. ASTM A506, A507). 10, 2001, we received rebuttal industry is materially injured within the • Non-rectangular shapes, not in comments from these petitioners. meaning of section 735(b)(1)(A) of the coils, which are the result of having The respondents alleged that the Act by reason of imports of certain hot- been processed by cutting or stamping Department (1) Erred in not using the rolled carbon steel flat products from and which have assumed the character purchase price of sulphuric acid from Romania. of articles or products classified outside Bulgaria in its cost of production Therefore, in accordance with section chapter 72 of the HTSUS. calculations, (2) mistakenly increased 736(a)(1) of the Act, the Department will The merchandise subject to this order electricity consumption by almost 30 direct the United States Customs is classified in the HTSUS at percent rather than the intended 10 Service (U.S. Customs) to assess, upon subheadings: 7208.10.15.00, percent, and (3) incorrectly assumed further advice by the Department, 7208.10.30.00, 7208.10.60.00, that several shipments of raw materials antidumping duties equal to the amount 7208.25.30.00, 7208.25.60.00, were transported by barge when they by which the normal value of the 7208.26.00.30, 7208.26.00.60, had in fact been transported by train or merchandise exceeds the export price or 7208.27.00.30, 7208.27.00.60, truck. The petitioners argued that the constructed export price of the 7208.36.00.30, 7208.36.00.60, Department erroneously calculated the merchandise for all relevant entries of 7208.37.00.30, 7208.37.00.60, non-depreciation overhead rate, and certain hot-rolled carbon steel flat 7208.38.00.15, 7208.38.00.30, failed to apply the total overhead rate to products from Romania. These 7208.38.00.90, 7208.39.00.15, certain sales in its margin calculations. antidumping duties will be assessed on 7208.39.00.30, 7208.39.00.90, The petitioners also rebutted the all unliquidated entries of imports of the 7208.40.60.30, 7208.40.60.60, respondents’ claim that the Department subject merchandise that are entered, or 7208.53.00.00, 7208.54.00.00, should have used the purchase price of withdrawn from warehouse, for 7208.90.00.00, 7211.14.00.90, Bulgarian sulphuric acid in its cost of consumption on or after May 3, 2001, 7211.19.15.00, 7211.19.20.00, production calculation. the date of publication of the 7211.19.30.00, 7211.19.45.00, preliminary determination in the 7211.19.60.00, 7211.19.75.30, 1 The respondents are Sidex, S.A. (Sidex), Sidex Federal Register. 7211.19.75.60, and 7211.19.75.90. Trading SRL, Sidex International Plc (collectively, On or after the date of publication of Certain hot-rolled carbon steel flat the Sidex Exporters), Metalexportimport S.A. (MEI), this notice in the Federal Register, U.S. products covered by this order, Metanef S.A. (Metanef) and Metagrimex Business Customs officers must require, at the Group S.A. (Metagrimex). including: vacuum degassed fully 2 These petitioners are Bethlehem Steel same time as importers would normally stabilized; high strength low alloy; and Corporation, LTC Steel Company, Inc., National deposit estimated duties, cash deposits the substrate for motor lamination steel Steel Corporation, and United States Steel LLC. for the subject merchandise equal to the
VerDate 11
estimated weighted-average dumping telephone: (202) 482–5222 or (202) 482– allow, at the option of the importer, the margins listed below. 4475, respectively. posting of a bond or security in lieu of SUPPLEMENTARY INFORMATION: a cash deposit for each entry of the Weighted- subject merchandise exported by Metal average Applicable Statute and Regulations Forgings, until the completion of the Exporter/manufacturer margin percentage Unless otherwise indicated, all review. citations to the Tariff Act of 1930, as Interested parties may submit Sidex Trading, SRL & Sidex amended (the Tariff Act), are references applications for disclosure under International, Plc...... 16.34 to the provisions effective January 1, administrative protective order in Metanef, S.A...... 21.59 1995, the effective date of the accordance with 19 CFR 351.305(b). Metagrimex, S.A...... 16.29 amendments made to the Tariff Act by This initiation and this notice are in Metalexportimport,S.A...... 18.04 the Uruguay Round Agreements Act. In accordance with section 751(a) of the Romania-Wide ...... 88.62 addition, unless otherwise indicated, all Tariff Act (19 U.S.C. 1675(a)) and references to the Department’s § 351.214 of the Department’s This notice constitutes the regulations are to 19 CFR part 351 regulations. antidumping duty order with respect to (2001). Dated: November 23, 2001. certain hot-rolled carbon steel flat products from Romania, pursuant to Background Joseph A. Spetrini, section 736(a) of the Act. Interested The Department received a timely Deputy Assistant Secretary for Import Administration, Group III. parties may contact the Central Records request, in accordance with section Unit, Room B–099 of the Main 751(a)(2)(B) of the Tariff Act and 19 CFR [FR Doc. 01–29672 Filed 11–28–01; 8:45 am] Commerce Building, for copies of an 351.214(b) of the Department’s BILLING CODE 3510–DS–P updated list of antidumping duty orders regulations, for a new shipper review of currently in effect. the antidumping duty order on flanges DEPARTMENT OF COMMERCE This order is issued and published in from India, which has a February accordance with section 736(a) of the anniversary date. (See Antidumping International Trade Administration Act and 19 CFR 351.211. Duty Order and Amendment to Final [A–475–824] Dated: November 20, 2001. Determination of Sales at Less Than Fair Faryar Shirzad, Value, 59 FR 5994 (February 9, 1994). Notice of Extension of the Time Limit See also letter to the Secretary of Assistant Secretary for Import for Final Results of Antidumping Duty Administration. Commerce from law firm of Miller & Administrative Review: Stainless Steel Chevalier, August 31, 2001, requesting a [FR Doc. 01–29674 Filed 11–28–01; 8:45 am] Sheet and Strip in Coils From Italy new shipper review. BILLING CODE 3510–DS–P AGENCY: Import Administration, Initiation of Review International Trade Administration, Pursuant to 19 CFR 351.214(b), Metal DEPARTMENT OF COMMERCE Department of Commerce. Forgings certified in its August 31, 2001 ACTION: Notice of extension of the time International Trade Administration submission that it did not export subject limit for final results of antidumping merchandise to the United States during duty administrative review. [A–533–809] the period of the investigation (POI) (July 1, 1992 through December 31, SUMMARY: The Department of Commerce Certain Stainless Steel Flanges From 1992), and that it was not affiliated with (‘‘the Department’’) is extending the India any exporter or producer of the subject time limit for the final results of the review of stainless steel sheet and strip AGENCY: Import Administration, merchandise to the United States during International Trade Administration, the POI. Metal Forgings submitted in coils from Italy. This review covers Department of Commerce. documentation establishing the date on the period January 4, 1999 through June which it first shipped the subject 30, 2000. ACTION: Notice of initiation of new merchandise for export to the United EFFECTIVE DATE: November 29, 2001. shipper review. States, the volume shipped, and the date FOR FURTHER INFORMATION CONTACT: SUMMARY: The Department of Commerce of the first sale to an unaffiliated Carrie Blozy, Enforcement Group III— has received a request for a new shipper customer in the United States. Office 9, Import Administration, review of the antidumping duty order In accordance with section International Trade Administration, on certain forged stainless steel flanges 751(a)(2)(B) of the Tariff Act and U.S. Department of Commerce, 14th (flanges) from India issued on February § 351.214(d) of the Department’s Street and Constitution Avenue, NW., 9, 1994 (59 FR 5994). In accordance regulations, we are initiating a new Washington, DC 20230; telephone (202) with our regulations, we are initiating a shipper review of the antidumping duty 482–0165. new shipper review covering Metal order on flanges from India. This review SUPPLEMENTARY INFORMATION: covers the period January 1, 2001 Forgings Private Limited/Metal Rings Applicable Statute and Bearing Races Limited (Metal through July 31, 2001. We have defined Forgings). the period of review in order to include Unless otherwise indicated, all the reported dates of sale and shipment citations to the Tariff Act of 1930, as EFFECTIVE DATE: November 29, 2001. and the estimated date of entry. We amended (‘‘the Act’’), are to the FOR FURTHER INFORMATION CONTACT: intend to issue the final results of the provisions effective January 1, 1995, the Thomas Killiam or Michael Heaney, review no later than 180 days from the effective date of the amendments made AD/CVD Enforcement Group III, Import date of publication of this notice. to the Act by the Uruguay Round Administration, International Trade In accordance with 19 CFR Agreements Act (‘‘URAA’’). In addition, Administration, U.S. Department of 351.214(e), effective on the date of unless otherwise indicated, all citations Commerce, 14th Street and Constitution publication of this notice, we will to the Department’s regulations are to 19 Avenue, NW, Washington, DC 20230, instruct the U.S. Customs Service to CFR part 351 (2000).
VerDate 11
Background bearings and parts thereof, finished and On January 26, 2001, we sent out On September 6, 2000, the unfinished, to the United States during antidumping questionnaires to both Department initiated an antidumping the period June 1, 2000 through Yantai Timken and CPZ. We received duty administrative review for the November 30, 2000 for Yantai Timken responses to these questionnaires from period of January 4, 2000 through June Company Limited and June 1, 2000 both companies in February and March 30, 2001 (65 FR 58733). The Department through January 31, 2001 for Peer 2001. We issued and received responses published its preliminary results on Bearing Company—Changshan. to supplemental questionnaires in April and May 2001. August 8, 2001 (66 FR 41517). We have preliminarily found that, during the periods of review, Peer Continuation of New Shipper Review Extension of Time Limit for Final Bearing Company—Changshan and Results Yantai Timken Company Limited have In a letter dated October 26, 2001, the made sales below normal value. The petitioner submitted comments urging Section 751(a)(3)(A) of the Act states the Department to discontinue the new that if it is not practicable to complete preliminary results are listed below in the Preliminary Results of the Reviews shipper review of CPZ. Due to the the review within the time specified, the proprietary nature of these comments, administering authority may extend the section. If these preliminary results are adopted in our final results, we will we are unable to restate them here. 120-day period, following the date of We have analyzed the petitioner’s publication of the preliminary instruct the Customs Service to assess antidumping duties based on the comments. In accordance with 19 CFR determination, to issue its final results 351.214(f), the Department may rescind by an additional 60 days. Completion of difference between the constructed export price and normal value. a new shipper review if: (1) There has the final results within the 120-day not been an entry and sale to an period is not practicable because this Interested parties are invited to comment on these preliminary results. unaffiliated customer in the U.S. of review involves certain complex issues, subject merchandise, or (2) if a party EFFECTIVE DATE: November 29, 2001. including respondent’s request for a withdraws its request for review not constructed export price offset and FOR FURTHER INFORMATION CONTACT: later than 60 days after the date of numerous affiliated entities. Jarrod Goldfeder or Anthony Grasso, publication of notice of initiation of the Therefore, in accordance with section Import Administration, International requested review. CPZ does not meet 751(a)(3)(A) of the Act, the Department Trade Administration, U.S. Department either of these criteria for discontinuing is extending the time period for issuing of Commerce, 14th Street and a new shipper review. Therefore, the the final results of review by 30 days Constitution Avenue, NW, Washington, Department is not rescinding the new until January 7, 2002. DC 20230; telephone: (202) 482–0189, or shipper review of CPZ. Dated: November 23, 2001. (202) 482–3853, respectively. Scope of the Order Joseph A. Spetrini, SUPPLEMENTARY INFORMATION: Merchandise covered by this order Deputy Assistant Secretary for Import Applicable Statute Administration, Group III. includes tapered roller bearings [FR Doc. 01–29670 Filed 11–28–01; 8:45 am] Unless otherwise indicated, all (‘‘TRBs’’) and parts thereof, finished and citations to the Tariff Act of 1930, as unfinished, from the People’s Republic BILLING CODE 3510–DS–P amended (‘‘the Act’’), are references to of China (‘‘PRC’’); flange, take up the provisions effective January 1, 1995, cartridge, and hanger units DEPARTMENT OF COMMERCE the effective date of the amendments incorporating tapered roller bearings; made to the Act by the Uruguay Round and tapered roller housings (except International Trade Administration Agreements Act (‘‘URAA’’). In addition, pillow blocks) incorporating tapered unless otherwise indicated, all rollers, with or without spindles, [A–570–601] references to the Department of whether or not for automotive use. This Tapered Roller Bearings and Parts Commerce’s (‘‘the Department’’) merchandise is currently classifiable Thereof, Finished and Unfinished, regulations are to 19 CFR part 351 under Harmonized Tariff Schedule of From the People’s Republic of China: (2000). the United States (‘‘HTSUS’’) item Preliminary Results of New Shipper Background numbers 8482.20.00, 8482.91.00.50, Reviews 8482.99.30, 8483.20.40, 8483.20.80, On December 28, 2000, Peer Bearing 8483.30.80, 8483.90.20, 8483.90.30, AGENCY: Import Administration, Company—Changshan (‘‘CPZ’’) 8483.90.80, 8708.99.80.15, and International Trade Administration, requested that we conduct a new 8708.99.80.80. Although the HTSUS Department of Commerce. shipper review. On December 29, 2000, item numbers are provided for ACTION: Notice of preliminary results of a similar request was made by Yantai convenience and customs purposes, the new shipper reviews of tapered roller Timken Company Limited (‘‘Yantai written description of the scope of the bearings and parts thereof, finished and Timken’’). We published the notice of order and this review is dispositive. initiation for these new shipper reviews unfinished, from the People’s Republic Verification of China. on January 31, 2001 (66 FR 8385) with a period of review (‘‘POR’’) covering As provided in section 782(i) of the SUMMARY: In response to requests from June 1, 2000 through November 30, Act, we verified information provided Peer Bearing Company—Changshan and 2000 for Yantai Timken and CPZ . On by CPZ and Yantai Timken, using Yantai Timken Company Limited, the May 9, 2001, the Department expanded standard verification procedures, Department of Commerce is conducting CPZ’s POR through January 31, 2001. including onsite inspection of new shipper reviews of the antidumping See Memorandum to Susan Kuhbach: manufacturers’ facilities, the duty order on tapered roller bearings ‘‘Expansion of the Period of Review,’’ examination of relevant sales and and parts thereof, finished and dated May 9, 2001, on file in the financial records, and selection of unfinished, from the People’s Republic Department’s Central Records Unit original documentation containing of China. These reviews cover these (‘‘CRU’’), in room B–099 of the main relevant information. Our verification companies’ entries of tapered roller Commerce building. results are outlined in the public
VerDate 11
versions of the verification reports that measures by the government the laws of the PRC. Chapter X of the are available in the Department’s CRU. decentralizing control of companies. 1988 Regulations discusses supervision For the verification report of Yantai During the PORs, both Yantai Timken and control, and allows companies to Timken, see Memorandum to John and CPZ were joint ventures formed conduct business operations as legal Brinkmann: ‘‘Yantai Timken Company under the laws of the PRC and persons in line with the items of Limited Verification Report,’’ dated controlled by a board of directors. registration and in accordance with September 26, 2001. For the report of Yantai Timken was a joint venture company articles of association and CPZ, see Memorandum to John majority owned by The Timken contracts. The 1994 Law places Brinkmann: ‘‘Peer Bearing Company— Company, with a minority interest held responsibility for profits and losses with Changshan Verification Report,’’ dated by Yantai Bearing Factory. Yantai each company, further demonstrating October 3, 2001. Bearing Factory is a state-owned lack of de jure control. company administered by the Yantai There is no indication from the Separate Rates Determination Machinery Bureau, which is under the company responses that the subject The Department has treated the PRC Yantai municipal government. CPZ is merchandise is listed on any as a nonmarket economy (‘‘NME’’) also a joint venture with majority governmental list of export provisions country in all previous antidumping interest held by a U.S. company and or export licensing. In addition, there cases. In accordance with section minority interest held by a PRC are no reported export quotas regarding 771(18)(C)(i) of the Act, any company (that is not a state-owned the subject merchandise. Consistent determination that a foreign country is enterprise). with Silicon Carbide, we preliminarily an NME shall remain in effect until Information submitted during this determine that there is an absence of de revoked by the Department. None of the review indicates that Yantai Bearing jure governmental control over Yantai parties to this proceeding has contested Factory is owned ‘‘by all of the people.’’ Timken and CPZ’s export pricing and such treatment in this review. Moreover, In Silicon Carbide (at 22586), we found marketing decisions. parties to this proceeding have not that the PRC central government had argued that the PRC TRB industry is a devolved control of state-owned De Facto Analysis market-oriented industry. Therefore, we enterprises, i.e., enterprises owned ‘‘by The Department uses four factors to are treating the PRC as an NME country all of the people.’’ As a result, we determine de facto absence of within the meaning of section 773(c) of determined that companies owned ‘‘by government control: (1) Whether each the Act. all of the people’’ were eligible for exporter sets its own export prices We allow companies in NME individual rates if they met the criteria independently of the government and countries to receive separate developed in Sparklers and Silicon without the approval of a government antidumping duty rates for purposes of Carbide, as described above. authority; (2) whether each exporter assessment and cash deposits when Yantai Timken and CPZ have placed retains the proceeds from its sales and those companies can demonstrate an documents on the record that they claim makes independent decisions regarding absence of government control, both in demonstrate the absence of de jure the disposition of profits or financing of law and in fact, with respect to export governmental control. Additionally, in losses; (3) whether each exporter has the activities. To establish whether a prior TRB cases, the Department has authority to negotiate and sign contracts company operating in an NME country analyzed similar PRC laws and and other agreements; and (4) whether is sufficiently independent to be regulations, and found that they each exporter has autonomy from the entitled to a separate rate, the establish an absence of de jure control. government regarding the selection of Department analyzes each exporting Yantai Timken’s and CPZ’s separation management (see Silicon Carbide, 59 FR entity under the test established in the from the government is explicitly shown at 22587, and Sparklers, 56 FR at Final Determination of Sales at Less under the provisions of Article 3 of the 20589). Than Fair Value: Sparklers from the Sino-Foreign Joint Venture Law of the The following record evidence, which People’s Republic of China, 56 FR 20588 People’s Republic of China which grants is contained in CPZ’s and Yantai (May 6, 1991) (‘‘Sparklers’’), as companies ‘‘the right to do business and Timken’s questionnaire responses and amplified by the Final Determination of conduct business management activities the Department’s company-specific Sales at Less Than Fair Value: Silicon independently.’’ The business licenses verification reports, demonstrates a lack Carbide from the People’s Republic of issued to Yantai Timken and CPZ of de facto government control over the China, 59 FR 22585 (May 2, 1994) authorize these companies to make export activities of both companies. (‘‘Silicon Carbide’’). As shown below, domestic and export sales of tapered Both Yantai Timken and CPZ have CPZ and Yantai Timken meet both the roller bearings as outlined in their asserted that they establish their own de jure and de facto criteria and are respective business scopes. export prices. However, in order to pass entitled, therefore, to a separate rate. Other laws placed on the record in the subject merchandise through PRC Accordingly, we preliminarily this case—the ‘‘Law of the People’s Customs, both companies are required determine to apply a rate separate from Republic of China on Foreign-Capital to have a stamp of approval from their the PRC rate to CPZ and Yantai Timken. Enterprises,’’ effective April 12, 1986 local Chamber of Commerce confirming (‘‘1986 Law’’); ‘‘Regulations of the PRC that the company-established price is De Jure Analysis for Controlling the Registration of above a minimum. The authority of any The Department considers three Enterprises as Legal Persons,’’ adopted PRC Chamber of Commerce to review factors which support, though do not on May 13, 1988 (‘‘1988 Regulations’’); prices for minimum values derives from require, a finding of de jure absence of and ‘‘Company Law of the PRC,’’ the ‘‘Interim Provisions on governmental control. These factors effective July 1, 1994 (‘‘1994 Law’’)— Implementing Seal upon Price Preview include: (1) An absence of restrictive also demonstrate a lack of de jure Process for Export Price Control on stipulations associated with the governmental control. The 1986 Law Certain Key Merchandise.’’ During individual exporter’s business and states that the government will not verification, each company stated that it export licenses; (2) any legislative nationalize or requisition any enterprise was never prevented from exporting enactments decentralizing control of with foreign capital allowing companies subject merchandise due to the level of companies; and (3) any other formal to facilitate their own business within its selling price. Additionally, according
VerDate 11
to their responses, neither company freight, foreign brokerage and handling, multiplying them by the values coordinated or consulted with other foreign inland freight, marine insurance, described below. For a complete exporters regarding its pricing. customs duties, U.S. brokerage, U.S. description of the factor values used, see The board of directors of Yantai warehousing, and U.S. inland freight. In the Memorandum to Susan Kuhbach: Timken controls the company and accordance with 772(d)(1) of the Act, we ‘‘Factors of Production Values Used for chooses the general manager. Other made further deductions from the the Preliminary Results’’ (‘‘FOP high-level officials are nominated by the starting price for CEP for the following Memo’’), dated November 20, 2001, general manager and approved by the selling expenses that related to which is on file in the Department’s board. The general manager and the economic activity in the United States: CRU. vice-managers of CPZ are appointed by commissions, credit expenses, further 1. Steel Inputs. For hot-rolled alloy the company’s board of directors. manufacturing, repacking costs, and steel bars used in the production of Outside of board approval, the general indirect selling expenses (including cups, consistent with Tapered Roller manager may appoint mid-level inventory carrying costs). For CPZ, we Bearings and Parts Thereof, Finished management and make daily routine adjusted upwards its reported indirect and Unfinished, From the People’s manufacturing and merchandise selling expenses. For more information, Republic of China; Final Results of decisions. Although both companies see Preliminary Results Calculation 1999–2000 Administrative Review, report the board members and the Memorandum for CPZ (November 20, Partial Rescission of Review, and appointed managers to the PRC 2001). In accordance with section Determination Not to Revoke Order in government, there is no evidence that 772(d)(3) of the Act, we have deducted Part, 66 FR 57420 (November 15, 2001) any government authority controls the from the starting price an amount for (‘‘TRBs XIII’’), we used an adjusted selection process or has rejected senior profit. For information on how profit weighted-average of Japanese export managers selected. was calculated, see ‘‘Overhead, SG&A values to India from the Japanese CPZ’s and Yantai Timken’s sources of Expenses, and Profit’’ in the ‘‘Normal Harmonized Schedule (‘‘HS’’) category funds are their own respective revenues Value’’ section below. 7228.30.900 obtained from Official or bank loans. They have sole control Normal Value Japan Ministry of Finance statistics. For over, and access to, their bank accounts, a further discussion of selection of steel Section 773(c)(1) of the Act provides which are held in CPZ’s and Yantai value sources, see the Steel Values that the Department shall determine Timken’s own names. Furthermore, Memo. there are no restrictions on the use of normal value (‘‘NV’’) using a factors-of- As in previous administrative reviews the respondents’ revenues or profits, production (‘‘FOP’’) methodology if: (1) in this proceeding, we eliminated from including export earnings. the subject merchandise is exported The general managers of both from an NME country, and (2) the our calculation steel imports from NME companies have the right to negotiate Department finds that the available countries and imports from market and enter into contracts, and may information does not permit the economy countries that were made in delegate this authority to other calculation of NV under section 773(a) small quantities. We made adjustments employees within the companies. There of the Act. We have no basis to to include freight costs incurred using is no evidence that this authority is determine that the available information the shorter of the reported distances subject to any level of governmental would permit the calculation of NV from either the closest PRC port to the approval. using PRC prices or costs. Therefore, we TRBs factory or the domestic supplier to This information supports a calculated NV based on factors data in the TRBs factory. See Notice of Final preliminary finding that there is an accordance with sections 773(c)(3) and Determination of Sales at Less Than absence of de facto governmental (4) of the Act and 19 CFR 351.408(c). Fair Value: Collated Roofing Nails From control of the export functions of Yantai Under the FOP methodology, we are the People’s Republic of China, 62 FR Timken and CPZ. Consequently, we required to value, to the extent possible, 51410 (October 1, 1997), and Sigma preliminarily determine that Yantai the NME producer’s inputs in a market Corporation v. United States, 117 F. 3d Timken and CPZ have met the criteria economy country that is at a comparable 1401 (Fed. Cir. 1997). for the application of separate rates. level of economic development and that CPZ states that it manufactured the is a significant producer of comparable subject merchandise under review using Constructed Export Price merchandise. We chose India as the steel purchased from a market economy For all sales made by CPZ and Yantai surrogate on the basis of the criteria set producer. In accordance with 19 CFR Timken to the United States, we used out in 19 CFR 351.408(b). For further 351.408(c)(1), we generally value steel constructed export price (‘‘CEP’’) in discussion of our surrogate selection see inputs using the actual price reported accordance with section 772(b) of the Memorandum to John Brinkmann from for directly imported inputs from a Act. Section 772(b) of the Act defines Jeff May, ‘‘Antidumping Duty market economy. However, in TRBs CEP as the price at which the subject Investigation of TRBs and Parts, XIII, we found a reasonable basis to merchandise is first sold in the United Thereof, Finished and Unfinished from believe or suspect that certain market States before or after the date of the PRC: Nonmarket Economy Status economy steel inputs purchased by PRC importation, by or for the account of the and Surrogate Country Selection,’’ dated TRB manufacturers and used to producer or exporter of the January 29, 2001; and Memorandum to manufacture TRBs were subsidized. merchandise, or by a seller affiliated Susan Kuhbach, ‘‘Selection of a Consistent with our treatment of with the producer or exporter, to an Surrogate Country and Steel Value subsidized inputs in TRBs XIII, we have unaffiliated purchaser, as adjusted Sources’’ dated November 20, 2001 not used the actual prices paid by CPZ under sections 772(c) and (d) of the Act. (‘‘Steel Values Memo’’). for steel which we have continuing We calculated CEP based on the We used publicly available reason to believe or suspect is packed, ex-warehouse prices from CPZ’s information on Indian imports and subsidized. Instead, we relied on and Yantai Timken’s U.S. subsidiaries exports to India to value the various surrogate values. (See individual to unaffiliated customers. We made factors. Pursuant to the Department’s company calculation memoranda for a deductions, where appropriate, from the FOP methodology, we valued the more detailed company-specific starting price for CEP for international respondents’ reported FOP by discussion of this issue.)
VerDate 11
We valued scrap recovered from the companies by the Department and used results of these new shipper reviews for production of cups, using Indian import in the Notice of Preliminary all shipments of TRBs from the PRC statistics from Indian HS category Determination of Sales at Less than Fair entered, or withdrawn from warehouse, 7204.2909. Value: Bulk Aspirin from the People’s for consumption on or after the Because this information is Republic of China, 65 FR 116 (January publication date, as provided by section contemporaneous with the current 3, 2000) (‘‘Bulk Aspirin from the PRC’’). 751(a)(2)(C) of the Act. PORs, we made no further adjustments We valued rail freight using two Public Comment to the steel input data. November 1999 rate quotes for domestic 2. Labor. 19 CFR 351.408(c)(3) bearing quality steel shipments within Interested parties may request a requires the use of a regression-based India that were also used in Bulk hearing within 30 days of the date of wage rate. We have used the regression- Aspirin from the PRC. Because this publication of this notice. Any hearing, based wage rate available on Import information is not contemporaneous if requested, will be held two days after Administration’s internet website at with the current PORs, we adjusted the the scheduled date for submission of www.ia.ita.doc.gov/wages. freight rate to the PORs using the Indian rebuttal briefs (see below). Interested 3. Overhead, SG&A Expenses, and wholesale price index (‘‘WPI’’). parties may submit written arguments in Profit. For factory overhead, we used 7. Ocean Freight. We calculated a case briefs within 30 days of the date of information obtained from the fiscal value for ocean freight based on May publication of this notice. Rebuttal year 1999–2000 annual reports of five 2000 rate quotes from Maersk Inc. briefs, limited to issues raised in case Indian bearing producers. We calculated Because this information is briefs, may be filed no later than five factory overhead and selling, general contemporaneous with the current days after the date of filing the case and administrative (‘‘SG&A’’) expenses PORs, no further calculations were briefs. Parties who submit briefs in these as percentages of direct inputs and necessary. proceedings should provide a summary applied these ratios to each producer’s 8. Marine Insurance. We calculated a of the arguments not to exceed five direct input costs. These expenses were value for marine insurance based on the pages and a table of statutes, calculated exclusive of labor and CIF value of shipped TRBs. This rate regulations, and cases cited. Copies of electricity, but included employer was obtained for Tapered Roller case briefs and rebuttal briefs must be provident funds and welfare expenses Bearings and Parts Thereof, Finished served on interested parties in not reflected in the Department’s and Unfinished, From the People’s accordance with 19 CFR 351.303(f)(3). regressed wage rate. This is consistent Republic of China; Final Results of The Department will issue the final with the methodology we utilized in 1998–1999 Administrative Review, results of these new shipper reviews TRBs XIII. For profit, we totaled the Partial Rescission of Review, and within 90 days from the issuance of reported profit before taxes for the five Determination Not to Revoke Order in these preliminary results. The Indian bearing producers and divided it Part, 66 FR 1953 (January 10, 2001) Department shall determine, and the by the total calculated cost of through queries made directly to an Customs Service shall assess, production (‘‘COP’’) of goods sold. This international marine insurance antidumping duties on all appropriate percentage was applied to each provider. We adjusted the marine entries. respondent’s total COP to derive a insurance rate to the PORs using the For CEP sales, we divided the total company-specific profit value. U.S. purchase price index. dumping margins for the reviewed sales 4. Packing. We calculated surrogate 9. Brokerage and Handling. We used by the total entered value of those values for packing materials reported by the public version of a U.S. sales listing reviewed sales for each importer/ each company (e.g., wooden pallet, reported in the questionnaire response customer. If these preliminary results plastic bag, steel strip) using import submitted by Meltroll Engineering for are adopted in our final results of new statistics reported in Monthly Statistics Stainless Steel Bar from India; Final shipper reviews, we will direct the of the Foreign Trade of India, Vol. II— Results of Antidumping Duty Customs Service to assess the resulting Imports by Commodity (April 2000 Administrative Review and New percentage margin against the entered through January 2001). We multiplied Shipper Review and Partial Rescission customs values for the subject these surrogate values by the usage of Administrative Review, 65 FR 48965 merchandise on each of that importer’s/ factor reported by each company to (August 10, 2000). Because this customer’s entries during the review calculate packing costs. information is not contemporaneous period. 5. Electricity. Consistent with with the current PORs, we adjusted the Effective upon publication of the final Manganese Metal from the People’s brokerage and handling rate to the PORs results of these new shipper reviews for Republic of China; Final Results of using the Indian WPI. all shipments by the PRC companies Antidumping Duty Administrative named above of the subject merchandise Review, 66 FR 15076 (March 15, 2001), Preliminary Results of the Reviews entered, or withdrawn from warehouse, we calculated our surrogate value for We preliminarily determine that the for consumption on or after the electricity based on a simple average of following dumping margins exist for the publication date, as provided for by the 1998/1999 rates for the ‘‘industrial’’ period June 1, 2000 through November section 751(a)(1) of the Act: (1) The cash category listed for 19 Indian states or 30, 2000 for Yantai Timken and June 1, deposit rates will be the rates for these electricity boards. The source of this 2000 through January 1, 2001 for CPZ: firms established in the final results of data was the Energy Data Directory and these reviews, except that, for exporters Yearbook published by Tata Energy Weighted- with de minimis rates, i.e., less than average Research Institute. We adjusted the Exporter/manufacturer 0.50 percent, no deposit will be margin per- required; (2) for previously-reviewed electricity value to the PORs using the centage Reserve Bank of India electricity- PRC and non-PRC exporters with specific price index. CPZ ...... 1.76 separate rates, the cash deposit rate will 6. Foreign Inland Freight. We valued Yantai Timken ...... 3.84 be the company-specific rate established truck freight using an average of for the most recent period during which November 1999 truck freight rate quotes The above deposit rates will be they were reviewed; (3) for all other PRC collected from Indian trucking effective upon publication of the final exporters, the rate will be the PRC
VerDate 11
country-wide rate, which is 33.18 sales of U.S.-made auto parts and SUMMARY: The inventions listed below percent; and (4) for all other non-PRC accessories in Japanese and other Asian are owned in whole or in part by the exporters of subject merchandise from markets; (3) advises the Secretary of U.S. Government, as represented by the the PRC, the cash deposit rate will be Commerce during consultations with Department of Commerce. The the rate applicable to the PRC supplier other Governments on issues concerning Department of Commerce’s interest in of that exporter. These deposit sales of U.S.-made automotive parts in the inventions is availble for exclusive requirements, when imposed, shall Japanese and other Asian markets; and or non-exclusive licensing in remain in effect until publication of the (4) assists in establishing priorities for accordance with 35 U.S.C. 207 and 37 final results of the next administrative the initiative to increase sales of U.S.- CFR part 404 to achieve expeditious review. made auto parts and accessories to commercialization of results of federally This notice also serves as a Japanese markets, and otherwise funded research and development. preliminary reminder to importers of provide assistance and direction to the FOR FURTHER INFORMATION CONTACT: their responsibility under 19 CFR Secretary of Commerce in carrying out Technical and licensing information on 351.402(f) to file a certificate regarding the intent of that section; and (5) assists these investions may be obtained by the reimbursement of antidumping the Secretary of Commerce in reporting writing to: National Institute of duties prior to liquidation of the to Congress by submitting an annual Standards and Technology, Office of relevant entries during this review written report to the Secretary on the Technology Partnerships, Building 820, period. Failure to comply with this sale of U.S.-made automotive parts in Room 213, Gaitherburg, MD 20899; Fax requirement could result in the Japanese and other Asian markets, as 301–869–2751. Any request for Secretary’s presumption that well as any other issues with respect to information should include the NIST reimbursement of antidumping duties which the Committee provides advice Docket number and title for the relevant occurred and the subsequent assessment pursuant to its authorizing legislation. invention as indicated below. of doubled antidumping duties. At the meeting, committee members SUPPLEMENTARY INFORMATION: NIST may These new shipper reviews and notice will discuss specific trade and sales enter into a Cooperative Research and are in accordance with sections expansion programs related to Development Agreement (‘‘CRADA’’) 751(a)(2)(B) and 777(i)(1) of the Act. automotive parts trade policy between with the license to perform further Dated: November 20, 2001. the United States and Japan and other research on the inventions for purposes Faryar Shirzad, Asian markets. of commercialization. The inventions The Acting Assistant Secretary for available for licensing are: Assistant Secretary for Import Administration, with the concurrence of Administration. NIST Docket Number: 99–013US. the General Counsel formally Title: Efficient Microwave Magnetic [FR Doc. 01–29633 Filed 11–28–01; 8:45 am] determined on November 21, 2001, BILLING CODE 3510–DS–P Recording System. pursuant to section 10(d) of the Federal Abstract: A microwave magnetic Advisory Committee Act, as amended, recording system can enable magnetic DEPARTMENT OF COMMERCE that the December 13 meeting of the recording heads for computer disk Committee and of any subcommittee drives to record efficiently at data rates International Trade Administration thereof, dealing with privileged or in excess of 500 × 10 ¥6 bits per second. confidential commercial information The microwave magnetic recording Closed Meeting of the U.S. Automotive may be exempt from the provisions of system permits a recording head to Parts Advisory Committee (APAC) the Act relating to open meeting and operate a bandwidths which are limited public participation therein because only by the fundamental physical limits AGENCY: International Trade these items are concerned with matters Administration, Commerce. of electron spin precession rates. The that are within the purview of 5 U.S.C. system includes a microwave ACTION: Announcement of meeting. 552b (c)(4) and (9)(B). A copy of the waveguide as the source of the Notice of Determination is available for SUMMARY: The APAC will have a closed energizing field, shaped write pulses to public inspection and copying in the meeting on December 13, 2001 at the reduce overshoot due to ferromagnetic Department of Commerce Records U.S. Department of Commerce to resonance, an rf ac bias signal to Inspection Facility, Room 6020, Main discuss U.S.-made automotive parts thermally excite the recording medium Commerce. sales in Japanese and other Asian and thereby reduce the necessary markets. Dated: November 23, 2001. recording field, higher moment Al Warner, magnetic head materials to increase the DATES: December 13, 2001. Acting Director, Office of Automotive Affairs. spin precession rate in a thin-film FOR FURTHER INFORMATION CONTACT: Dr. [FR Doc. 01–29603 Filed 11–28–01; 8:45 am] geometry, and hard-axis biased Robert Reck, U.S. Department of magnetic head materials to increase the BILLING CODE 3510–DR–P Commerce, Room 4036, Washington, DC flux conduction efficiency of thin pole 20230, telephone: 202–482–1418. tip materials. All of these features SUPPLEMENTARY INFORMATION: The U.S. DEPARTMENT OF COMMERCE complement thin-film head designs or Automotive Parts Advisory Committee may be used with exotic planarized (the ‘‘Committee’’) advises U.S. National Institute of Standards and head structure. Government officials on matters relating Technology NIST Docket Number: 00–010US. to the implementation of the Fair Trade Title: Reagents For Water in Automotive Parts Act of 1998 (Pub. Notice of Government owned Determination In Samples Containing L. 105–261). The Committee: (1) Reports inventions available for licensing Iodine-Reacting Interfering Substances. to the Secretary of Commerce on AGENCY: National Institute of Standards Abstract: The present invention barriers to sales of U.S.-made and Technology, Commerce. relates to reagents for water automotive parts and accessories in determination in materials containing ACTION: Notice of Government owned Japanese and other Asian markets; (2) iodine-reacting interfering substances. inventions available for licensing. reviews and considers data collected on The reagents are use for corrrection of
VerDate 11
results of Karl Fischer (KF) water Board, its Law Enforcement Committee, management unit, and provide analyses determination in matters such as oils, and Executive Committee will hold a of fishing gear impacts on essential fish drugs, cosmetic products, foodstuffs, public meeting. habitat (EFH) for all four species; review chemical products and other polar- and DATES: The meetings will be held on proposed management changes non-polar materials containing iodine- Tuesday, December 11, 2001 to previously mentioned in Amendment 9 reacting substances, which interfere Thursday, December 13, 2001. On to the Squid, Mackerel, and Butterfish with the Karl Fischer methods for water Tuesday, December 11, 2001, the FMP and fishing gear impacts on EFH, determination. The Reagents of the Ecosystem Planning Committee will i.e., remedy EFH disapprovals identified invention comprise iodine, an iodide meet from 1–4 p.m. On Wednesday, in Squid, Mackerel, and Butterfish FMP and a buffer in mixture of solvents in December 12, 2001, the Council and Amendment 8; hear organizational and which at lease one is a polar non- Commission will meet from 8-5 p.m. On committee reports. aqueous solvent and at least one is a Thursday, December 13, 2001, the Law Although non-emergency issues not non-polar non-aqueous solvent. Enforcement Committee will meet from contained in this agenda may come NIST Docket Number: 03–033US. 7:30–8 a.m. The Executive Committee before the Council and the Commission Title: Electrochemical Fluidized Bed will meet from 8-9 a.m. The Council for discussion, these issues can not be Coating of Powders. will meet from 9–5 p.m. the subject of formal Council action Abstract: A method for coating ADDRESSES: This meeting will be held at during this meeting. Council action will particulate substrate materials is the Sheraton Society Hill, One Dock be restricted to those issues specifically provided which comprises (a) Street, Philadelphia, PA; telephone: listed in this notice and any issues combining particles and an electrolyte 215–238–6000. arising after publication of this notice in an imperforate container; (b) Council address: Mid-Atlantic Fishery that require emergency action under vibrating the container to generate a Management Council, 300 S. New section 305 (c) of the Magnuson-Stevens fluidized bed of particles in the Street, Dover, DE 19904, telephone 302– Act, provided the public has been electrolyte; and (c) electrochemically 674–2331. notified of the Council’s intent to take depositing a coating on the particles FOR FURTHER INFORMATION CONTACT: final action to address the emergency. Daniel T. Furlong, Executive Director, from reactants in the electrolyte. An Special Accommodations apparatus for coating particles is also Mid-Atlantic Fishery Management provided which comprises an Council; telephone: 302–674–2331, ext. This meeting is physically accessible imperforate containere for receiving 19. to people with disabilities. Requests for particles to be coated and an electrolyte SUPPLEMENTARY INFORMATION: Agenda sign language interpretation or other and a device for generating afluidized items for the committees and Council auxiliary aids should be directed to bed in the container, the device being meetings are: Identify Council/ Joanna Davis at least 5 days prior to the operatively associated with the Commission priorities for 2003 quota meeting date. container. set-aside species, refine criteria to be Dated: November 26, 2001. Dated: November 20, 2001. used in evaluating proposals received in Richard W. Surdi, Karen H. Brown, response to 2003 Request for Research Acting Director, Office of Sustainable Proposals, recommend adjustments to Deputy Director. Fisheries, National Marine Fisheries Service. weights to be applied to evaluation [FR Doc. 01–29664 Filed 11–28–01; 8:45 am] [FR Doc. 01–29642 Filed 11–28–01; 8:45 am] criteria, discuss need for and timing of BILLING CODE 3510–22–S BILLING CODE 3510–13–M pre-proposal process; review and discuss Monitoring Committee’s DEPARTMENT OF COMMERCE recommendations on summer flounder, DEPARTMENT OF COMMERCE scup, and black sea management National Oceanic and Atmospheric measures, review and discuss Advisory National Oceanic and Atmospheric Administration Panels recommendations on summer Administration flounder, scup, and black sea bass [I.D. 112301D] management measures, develop and [I.D. 112601A] approve management measures for 2002 Mid-Atlantic Fishery Management summer flounder, scup, and black sea Council; Meetings New England Fishery Management bass recreational fisheries; review the Council; Public Meetings AGENCY: National Marine Fisheries Council’s 2002 meeting calendar, i.e., Service (NMFS), National Oceanic and changes to meeting locations and times; AGENCY: National Marine Fisheries Atmospheric Administration (NOAA), initiate Fisheries Achievement Award Service (NMFS), National Oceanic and Commerce. process for second half of 2001; the Atmospheric Administration (NOAA), Commerce. ACTION: Notice of public meeting; Council intends to prepare an EIS under including a notice of intent to prepare the National Environmental Policy Act, ACTION: Notice of public meeting. an Environmental Impact Statement to assess the potential effects on the SUMMARY: The New England Fishery (EIS), convene a scoping meeting, and human environment of its proposed Management Council (Council) is request for public comments. action to initiate Amendment 9 to the Fishery Management Plan for Atlantic scheduling a public meeting of its SUMMARY: The Mid-Atlantic Fishery mackerel, squid, and butterfish fisheries Marine Protected Areas Committee in Management Council (Council) and its under the Magnuson-Stevens Fishery December, 2001. Recommendations Ecosystem Planning Committee, its Conservation and Management Act. The from the committee will be brought to Demersal Species Committee meeting as amendment currently would extend the the full Council for formal consideration a Council Committee of the Whole with moratorium on entry into the Illex and action, if appropriate. the Atlantic States Marine Fisheries fishery, allow for specification of DATES: The meeting will held on Commission’s (Commission) Summer management measures for multiple Thursday, December 13, 2001, at 9:30 Flounder, Scup and Black Sea Bass years for all four species in the a.m.
VerDate 11
ADDRESSES: The meeting will be held at Hoc Groundfish Multi-Year DEPARTMENT OF COMMERCE the Best Western Inn, 401 Lowell Management Committee (GMMC) will Avenue, Haverhill, MA 01832; hold a work session, which is open to Technology Administration telephone: (978) 373–1511. the public. Technology Administration Council address: New England DATES: The GMMC will meet Thursday, Fishery Management Council, 50 Water December 13, 2001, from 1 p.m. until 5 Performance Review Board Street, Newburyport, MA 01950. p.m; and Friday, December 14, 2001, Membership FOR FURTHER INFORMATION CONTACT: Paul from 8 a.m. until business for the day The Technology Administration J. Howard, Executive Director, New is completed. Performance Review Board (TA PRB) England Fishery Management Council; ADDRESSES: The work session will be reviews performance appraisals, (978) 465–0492. held at the Pacific Fishery Management agreements, and recommended actions SUPPLEMENTARY INFORMATION: Several Council, West Conference Room, 7700 pertaining to employees in the Senior individuals involved in the national NE Ambassador Place, Suite 200, Executive Service and reviews marine protected area (MPA) initiative Portland, OR 97220; 503–326–6352. performance-related pay increases for will brief the Committee on recent Council address: ST–3104 employees. The Board makes developments and on-going programs FOR FURTHER INFORMATION CONTACT: Dan recommendations to the appropriate related to MPAs. The Committee will Waldeck or Don McIsaac, Pacific appointing authority concerning such discuss the Executive Order on MPAs Fishery Management Council, 503–326– matters so as to ensure the fair and (E.O. 13158) and the role of the Council 6352. equitable treatment of these individuals. in regards to MPAs. The Committee will SUPPLEMENTARY INFORMATION: The This notice lists the membership of begin the development of a Council formation of this ad hoc committee is in the TA PRB and supersedes the list policy and strategy on MPAs. response to the Council’s request for a published in Federal Register Although non-emergency issues not committee to scope multi-year Document 01–23214, Vol. 66, No. 181, contained in this agenda may come management approaches for the West page 48118, dated September 18, 2001. before this group for discussion, those Coast groundfish fishery. Multi-year Cathleen Campbell (C), Director of issues may not be the subject of formal management of the groundfish fishery International Technology, Policy and action during this meeting. Action will would be synchronized with a multi- Programs, Technology be restricted to those issues specifically year groundfish stock assessment Administration, Washington, DC listed in this notice and any issues schedule. Full accommodation of 20230, Appointment Expires: 12/31/ arising after publication of this notice federal notice and comment 02. that require emergency action under requirements would also be Cynthia Clark (C), Associate Director for section 305(c) of the Magnuson-Stevens incorporated into the multi-year cycle. Methodology & Standards, Census Act, provided the public has been This is the first meeting of the Bureau, Washington, DC 20233, notified of the Council’s intent to take committee, and the primary purpose of Appointment Expires: 12/31/01. final action to address the emergency. the meeting is to refine the purpose and Gordon W. Day (C), Chief, objectives of multi-year management, as Optoelectronics Division, Electronics Special Accommodations well as initiate scoping of alternative and Engineering Laboratory Office, This meeting is physically accessible approaches. National Institute of Standards & to people with disabilities. Requests for Although nonemergency issues not Technology, Boulder, CO 80303, sign language interpretation or other contained in the GMMC meeting agenda Appointment Expires: 12/31/01. auxiliary aids should be directed to Paul may come before the GMMC for Dale E. Hall (C), Deputy Director, J. Howard (see ADDRESSES) at least 5 discussion, those issues may not be the Materials Science, and Engineering days prior to the meeting dates. subject of formal GMMC action during Laboratory, Materials Science and the meeting. GMMC action will be Engineering Laboratory, National Dated: November 26, 2001. restricted to those issues specifically Richard W. Surdi, Institute of Standards & Technology, listed in this document and any issues Gaithersburg, MD 20899–8500, Acting Director, Office of Sustainable arising after publication of this Fisheries, National Marine Fisheries Service. Appointment Expires: 12/31/01. document that require emergency action Daniel Hurley (C), Director of [FR Doc. 01–29639 Filed 11–28–01; 8:45 am] under section 305(c) of the Magnuson- Communication and Information, BILLING CODE 3510–22–S Stevens Fishery Conservation and Infrastructure Assurance Program, Management Act, provided the public National Telecommunications and has been notified of the GMMC’s intent DEPARTMENT OF COMMERCE Information Administration, to take final action to address the Washington, DC 20230, Appointment emergency. National Oceanic and Atmospheric Expires: 12/31/03. Administration Special Accommodations Robert F. Moore (C), Deputy Director for Safety and Facilities, National [I.D. 111301E] This meeting is physically accessible to people with disabilities. Requests for Institute of Standards & Technology, Pacific Fishery Management Council; sign language interpretation or other Gaithersburg, MD 20899–3200, Public Meeting auxiliary aids should be directed to Ms. Appointment Expires: 12/31/03. Dennis Swyt (C), Chief, Precision Carolyn Porter at (503) 326–6352 at least AGENCY Engineering Division, Manufacturing : National Marine Fisheries 5 days prior to the meeting date. Service (NMFS), National Oceanic and Engineering Laboratory, National Atmospheric Administration (NOAA), Dated: November 26, 2001. Institute of Standards & Technology, Commerce. Richard W. Surdi, Gaithersburg, MD 20899–8210, ACTION: Notice of public meeting. Acting Director, Office of Sustainable Appointment Expires: 12/31/02. Fisheries, National Marine Fisheries Service. Kathleen Taylor (C), Chief, Employment SUMMARY: The Pacific Fishery [FR Doc. 01–29643 Filed 11–28–01; 8:45 am] and Labor Law Division, Assistant Management Council’s (Council) Ad BILLING CODE 3510–22–S General Counsel for Administration,
VerDate 11
Office of the General Counsel, Office textile and apparel products into the been exhausted by previous entries, such of the Secretary, Washington, DC General Agreement on Tariffs and Trade products shall be charged to the limits set 20230, Appointment Expires: 12/31/ 1994 will take place on January 1, 2002 forth in this directive. 03. (see 60 FR 21075, published on May 1, Products to be integrated into the General Susan Zevin (C), Deputy Director, Agreement on Tariffs and Trade 1994 on 1995). Accordingly, a previously January 1, 2002 (listed in the Federal Register Information Technology Laboratory, restrained category has been eliminated notice published on May 1, 1995, 60 FR Information Technology Laboratory, and the limit for the remaining products 21075) which are exported during 2001 shall National Institute of Standards & has been revised. Integrated products be charged to the applicable 2001 limits to Technology, Gaithersburg, MD 20899– will no longer be subject to quota. the extent of any unfilled balances. After 8900, Appointment Expires: 12/31/02. In the letter published below, the January 1, 2002, should those 2001 limits be filled, such products shall no longer be Dated: November 20, 2001. Chairman of CITA directs the charged to any limit. Phillip J. Bond, Commissioner of Customs to establish the limits for the 2002 period. In carrying out the above directions, the Under Secretary of Commerce for Technology, A description of the textile and Commissioner of Customs should construe Technology Administration, Department of entry into the United States for consumption Commerce. apparel categories in terms of HTS to include entry for consumption into the numbers is available in the [FR Doc. 01–29675 Filed 11–28–01; 8:45 am] Commonwealth of Puerto Rico. CORRELATION: Textile and Apparel BILLING CODE 3510–18–M The Committee for the Implementation of Categories with the Harmonized Tariff Textile Agreements has determined that Schedule of the United States (see these actions fall within the foreign affairs Federal Register notice 65 FR 82328, exception of the rulemaking provisions of 5 COMMITTEE FOR THE published on December 28, 2000). U.S.C. 553(a)(1). IMPLEMENTATION OF TEXTILE Information regarding the availability of Sincerely, AGREEMENTS the 2002 CORRELATION will be Jim Bennett, Acting Chairman, Committee for the Announcement of Import Restraint published in the Federal Register at a Implementation of Textile Agreements. later date. Limits for Certain Cotton, Wool and [FR Doc. 01–29631 Filed 11–28–01; 8:45 am] Man-Made Fiber Textile Products Jim Bennett, BILLING CODE 3510–DR–S Produced or Manufactured in Burma Acting Chairman, Committee for the (Myanmar) Implementation of Textile Agreements. COMMITTEE FOR THE November 23, 2001. Committee for the Implementation of Textile Agreements IMPLEMENTATION OF TEXTILE AGENCY: Committee for the AGREEMENTS Implementation of Textile Agreements November 23, 2001. (CITA). Commissioner of Customs, Announcement of Import Restraint ACTION: Issuing a directive to the Department of the Treasury, Washington, DC Limits for Certain Cotton, Wool and Commissioner of Customs establishing 20229. Man-Made Fiber Textile Products limits. Dear Commissioner: Pursuant to section Produced or Manufactured in the Arab 204 of the Agricultural Act of 1956, as Republic of Egypt EFFECTIVE DATE: January 1, 2002. amended (7 U.S.C. 1854); Executive Order 11651 of March 3, 1972, as amended; and the FOR FURTHER INFORMATION CONTACT: Ross November 23, 2001. Uruguay Round Agreement on Textiles and AGENCY: Committee for the Arnold, International Trade Specialist, Clothing (ATC), you are directed to prohibit, Office of Textiles and Apparel, U.S. effective on January 1, 2002, entry into the Implementation of Textile Agreements Department of Commerce, (202) 482– United States for consumption and (CITA). 4212. For information on the quota withdrawal from warehouse for consumption ACTION: Issuing a directive to the status of these limits, refer to the Quota of cotton, wool and man-made fiber textile Commissioner of Customs establishing Status Reports posted on the bulletin products in the following categories, limits. boards of each Customs port, call (202) produced or manufactured in Burma 927–5850, or refer to the U.S. Customs (Myanmar) and exported during the twelve- EFFECTIVE DATE: January 1, 2002. month period beginning on January 1, 2002 FOR FURTHER INFORMATION CONTACT: Roy website at http://www.customs.gov. For and extending through December 31, 2002, in information on embargoes and quota re- excess of the following levels of restraint: Unger, International Trade Specialist, openings, refer to the Office of Textiles Office of Textiles and Apparel, U.S. and Apparel website at http:// Department of Commerce, (202) 482– Category Twelve-month restraint otexa.ita.doc.gov. limit 4212. For information on the quota SUPPLEMENTARY INFORMATION: status of these limits, refer to the Quota 340/640 ...... 101,763 dozen. Status Reports posted on the bulletin Authority: Section 204 of the Agricultural 342/642 ...... 27,486 dozen. boards of each Customs port, call (202) Act of 1956, as amended (7 U.S.C. 1854); 347/348 ...... 142,569 dozen. 927–5850, or refer to the U.S. Customs Executive Order 11651 of March 3, 1972, as 351/651 ...... 43,198 dozen. amended. 448 ...... 2,508 dozen. website at http://www.customs.gov. For The import restraint limits for textile 647/648 ...... 26,081dozen. information on embargoes and quota re- products, produced or manufactured in openings, refer to the Office of Textiles Burma (Myanmar) and exported during The limits set forth above are subject to and Apparel website at http:// the period January 1, 2002 through adjustment pursuant to the provisions of the otexa.ita.doc.gov. ATC and administrative arrangements December 31, 2002 are based on limits SUPPLEMENTARY INFORMATION: notified to the Textiles Monitoring Body. notified to the Textiles Monitoring Body Products in the above categories exported Authority: Section 204 of the Agricultural pursuant to the Uruguay Round during 2001 shall be charged to the Act of 1956, as amended (7 U.S.C. 1854); Agreement on Textiles and Clothing applicable category limits for that year (see Executive Order 11651 of March 3, 1972, as (ATC). directive dated January 24, 2001) to the amended. Pursuant to the provisions of the ATC, extent of any unfilled balances. In the event The import restraint limits for textile the third stage of the integration of the limits established for that period have products, produced or manufactured in
VerDate 11
Egypt and exported during the period COMMITTEE FOR THE Category Twelve-month restraint January 1, 2002 through December 31, limit IMPLEMENTATION OF TEXTILE 2002 are based on limits notified to the AGREEMENTS Textiles Monitoring Body pursuant to 313–O ...... 70,040,920 square the Uruguay Round Agreement on meters. Announcement of Import Restraint Textiles and Clothing (ATC). 314–O ...... 38,142,697 square Limits for Certain Cotton, Man-Made In the letter published below, the meters. Fiber, Silk Blend and Other Vegetable 315–O ...... 44,791,312 square Fiber Textiles and Textile Products Chairman of CITA directs the meters. Produced or Manufactured in India Commissioner of Customs to establish 317–O ...... 38,142,697 square the 2002 limits. meters. A description of the textile and November 23, 2001. 326–O ...... 2,508,000 square me- AGENCY: Committee for the apparel categories in terms of HTS ters. Implementation of Textile Agreements numbers is available in the Levels not in a group (CITA). CORRELATION: Textile and Apparel 300/301 ...... 15,120,341 kilograms Categories with the Harmonized Tariff of which not more ACTION: Issuing a directive to the Schedule of the United States (see than 4,742,270 kilo- Commissioner of Customs establishing Federal Register notice 65 FR 82328, grams shall be in limits. published on December 28, 2000). Category 301. Information regarding the 2002 338/339 ...... 4,208,146 dozen. EFFECTIVE DATE: January 1, 2002. CORRELATION will be published in the 340/640 ...... 1,743,376 dozen. FOR FURTHER INFORMATION CONTACT: Ross Federal Register at a later date. 369–S 6 ...... 2,207,655 kilograms. Arnold, International Trade Specialist, 448 ...... 20,481 dozen. Office of Textiles and Apparel, U.S. Jim Bennett, 1 Category 313–O: all HTS numbers except Department of Commerce, (202) 482– Acting Chairman, Committee for the 4212. For information on the quota Implementation of Textile Agreements. 5208.52.3035, 5208.52.4035 and 5209.51.6032. status of these limits, refer to the Quota Committee for the Implementation of Textile 2 Category 314–O: all HTS numbers except Status Reports posted on the bulletin Agreements 5209.51.6015. boards of each Customs port, call (202) 3 Category 315–O: all HTS numbers except November 23, 2001. 5208.52.4055. 927–5850, or refer to the U.S. Customs Commissioner of Customs, 4 Category 317–O: all HTS numbers except website at http://www.customs.gov. For Department of the Treasury, Washington, DC 5208.59.2085. information on embargoes and quota re- 20229. 5 Category 326–O: all HTS numbers except openings, refer to the Office of Textiles Dear Commissioner: Pursuant to section 5208.59.2015, 5209.59.0015 and and Apparel website at http:// 204 of the Agricultural Act of 1956, as 5211.59.0015. 6 otexa.ita.doc.gov. amended (7 U.S.C. 1854); Executive Order Category 369–S: only HTS number 11651 of March 3, 1972, as amended; and the 6307.10.2005. SUPPLEMENTARY INFORMATION: Uruguay Round Agreement on Textiles and The limits set forth above are subject to Authority: Section 204 of the Agricultural Clothing (ATC), you are directed to prohibit, adjustment pursuant to the provisions of the Act of 1956, as amended (7 U.S.C. 1854); effective on January 1, 2002, entry into the ATC and administrative arrangements Executive Order 11651 of March 3, 1972, as United States for consumption and notified to the Textiles Monitoring Body. amended. withdrawal from warehouse for consumption of cotton, wool and man-made fiber textile Products in the above categories exported The import restraint limits for textile products in the following categories, during 2001 shall be charged to the products, produced or manufactured in produced or manufactured in Egypt and applicable category limits for that year (see India and exported during the period exported during the twelve-month period directive dated October 26, 2000) to the January 1, 2002 through December 31, beginning on January 1, 2002 and extending extent of any unfilled balances. In the event 2002 are based on limits notified to the through December 31, 2002, in excess of the the limits established for that period have Textiles Monitoring Body pursuant to following levels of restraint: been exhausted by previous entries, such the Uruguay Round Agreement on products shall be charged to the limits set Textiles and Clothing (ATC). Twelve-month restraint forth in this directive. Category limit Pursuant to the provisions of the ATC, In carrying out the above directions, the the third stage of the integration of Fabric Group Commissioner of Customs should construe textile and apparel products into the 218–220, 224–227, 162,117,786 square entry into the United States for consumption General Agreement on Tariffs and Trade 313–O 1, 314–O 2, meters. to include entry for consumption into the 1994 will take place on January 1, 2002 315–O 3, 317–O 4 Commonwealth of Puerto Rico. (see 60 FR 21075, published on May 1, and 326–O 5, as a The Committee for the Implementation of 1995). Accordingly, certain previously group Textile Agreements has determined that restrained categories have been Sublevels within these actions fall within the foreign affairs modified or eliminated and a limit has Fabric Group exception of the rulemaking provisions of 5 218 ...... 2,508,000 square me- been revised. Integrated products will U.S.C. 553(a)(1). ters. no longer be subject to quota. 219 ...... 38,142,697 square Sincerely, In the letter published below, the meters. Jim Bennett, Chairman of CITA directs the 220 ...... 38,142,697 square Acting Chairman, Committee for the Commissioner of Customs to establish meters. Implementation of Textile Agreements. the 2002 limits. 224 ...... 38,142,697 square [FR Doc. 01–29632 Filed 11–28–01; 8:45 am] A description of the textile and meters. BILLING CODE 3510–DR–S apparel categories in terms of HTS 225 ...... 38,142,697 square meters. numbers is available in the 226 ...... 38,142,697 square CORRELATION: Textile and Apparel meters. Categories with the Harmonized Tariff 227 ...... 38,142,697 square Schedule of the United States (see meters. Federal Register notice 65 FR 82328,
VerDate 11
published on December 28, 2000). In carrying out the above directions, the Category Twelve-month restraint Information regarding the 2002 limit Commissioner of Customs should construe CORRELATION will be published in the entry into the United States for consumption to include entry for consumption into the Federal Register at a later date. Group II 200, 201, 220, 224– 143,071,068 square Commonwealth of Puerto Rico. Jim Bennett, 227, 237, 239pt. 3, meters equivalent. The Committee for the Implementation of 300, 301, 331pt. 4, Textile Agreements has determined that Acting Chairman, Committee for the 332, 333, 352, these actions fall within the foreign affairs Implementation of Textile Agreements. 359pt. 5, 360–362, exception of the rulemaking provisions of 5 Committee for the Implementation of Textile 603, 604, 611– U.S.C. 553(a)(1). Sincerely, Agreements 620, 624–629, 631pt. 6, 633, 638, Jim Bennett, November 23, 2001. 639, 643–646, Acting Chairman, Committee for the Commissioner of Customs, 652, 659pt. 7, Implementation of Textile Agreements. Department of the Treasury, Washington, DC 666pt. 8, 845, 846 [FR Doc. 01–29629 Filed 11–28–01; 8:45 am] 20229. and 852, as a BILLING CODE 3510–DR–S Dear Commissioner: Pursuant to section group 204 of the Agricultural Act of 1956, as 1 Category 341–Y: only HTS numbers amended (7 U.S.C. 1854); Executive Order 6204.22.3060, 6206.30.3010, 6206.30.3030 COMMITTEE FOR THE 11651 of March 3, 1972, as amended; and the and 6211.42.0054. IMPLEMENTATION OF TEXTILE 2 Category 369–S: only HTS number AGREEMENTS Uruguay Round Agreement on Textiles and 6307.10.2005. Clothing (ATC), you are directed to prohibit, 3 Category 239pt.: only HTS number effective on January 1, 2002, entry into the 6209.20.5040 (diapers). Announcement of Import Restraint United States for consumption and 4 Category 331pt.: all HTS numbers except Limits for Certain Cotton, Wool, Man- withdrawal from warehouse for consumption 6116.10.4810, 6116.10.1720, 6116.10.5510, Made Fiber, Silk Blend and Other 6116.10.7510, 6116.92.6410, 6116.92.6420, Vegetable Fiber Textiles and Textile of cotton, man-made fiber, silk blend and 6116.92.6430, 6116.92.6440, 6116.92.7450, other vegetable fiber textiles and textile 6116.92.7460, 6116.92.7470, 6116.92.8800, Products Produced or Manufactured in products in the following categories, 6116.92.9400 and 6116.99.9510. the Republic of Korea 5 produced or manufactured in India and Category 359pt.: all HTS numbers except 6115.19.8010, 6117.10.6010, 6117.20.9010, November 23, 2001. exported during the twelve-month period 6203.22.1000, 6204.22.1000, 6212.90.0010, AGENCY: Committee for the beginning on January 1, 2002 and extending 6214.90.0010, 6406.99.1550, 6505.90.1525, Implementation of Textile Agreements through December 31, 2002, in excess of the 6505.90.1540, 6505.90.2060 and (CITA). following levels of restraint: 6505.90.2545. 6 Category 631pt.: all HTS numbers except ACTION: Issuing a directive to the 6116.10.1730, 6116.10.4820, 6116.10.5520, Commissioner of Customs establishing Category Twelve-month restraint 6116.10.7520, 6116.93.8800, 6116.93.9400, limit 6116.99.4800, 6116.99.5400 and limits. 6116.99.9530. Levels in Group I 7 Category 659pt.: all HTS numbers except EFFECTIVE DATE: January 1, 2002. 218 ...... 21,586,018 square 6115.11.0010, 6115.12.2000, 6117.10.2030, FOR FURTHER INFORMATION CONTACT: Ross meters. 6117.20.9030, 6212.90.0030, 6214.30.0000, 6214.40.0000, 6406.99.1510 and Arnold, International Trade Specialist, 219 ...... 94,504,814 square 6406.99.1540. Office of Textiles and Apparel, U.S. meters. 8 Category 666pt.: all HTS numbers except Department of Commerce, (202) 482– 313 ...... 57,756,193 square 5805.00.4010, 6301.10.0000, 6301.40.0010, 4212. For information on the quota meters. 6301.40.0020, 6301.90.0010, 6302.53.0010, 6302.53.0020, 6302.53.0030, 6302.93.1000, status of these limits, refer to the Quota 314 ...... 11,250,573 square Status Reports posted on the bulletin meters. 6302.93.2000, 6303.12.0000, 6303.19.0010, 6303.92.1000, 6303.92.2010, 6303.92.2020, 315 ...... 18,896,455 square boards of each Customs port, call (202) 6303.99.0010, 6304.11.2000, 6304.19.1500, 927–5850, or refer to the U.S. Customs meters. 6304.19.2000, 6304.91.0040, 6304.93.0000, 317 ...... 50,864,710 square 6304.99.6020, 6307.90.9984, 9404.90.8522 website at http://www.customs.gov. For meters. and 9404.90.9522. information on embargoes and quota re- openings, refer to the Office of Textiles 326 ...... 11,560,163 square The limits set forth above are subject to meters. adjustment pursuant to the provisions of the and Apparel website at http:// 334/634 ...... 201,096 dozen. ATC and administrative arrangements otexa.ita.doc.gov. 335/635 ...... 895,277 dozen. notified to the Textiles Monitoring Body. SUPPLEMENTARY INFORMATION: 336/636 ...... 1,290,776 dozen. Products in the above categories exported 338/339 ...... 5,009,403 dozen. during 2001 shall be charged to the Authority: Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854); 340/640 ...... 2,688,391 dozen. applicable category limits for that year (see Executive Order 11651 of March 3, 1972, as 341 ...... 5,376,759 dozen of directive dated December 13, 2000) to the extent of any unfilled balances. In the event amended. which not more than The import restraint limits for textile 3,226,053 dozen the limits established for that period have shall be in Category been exhausted by previous entries, such products, produced or manufactured in 341–Y 1. products shall be charged to the limits set Korea and exported during the period forth in this directive. 342/642 ...... 1,812,939 dozen. January 1, 2002 through December 31, Products to be integrated into the General 2002 are based on limits notified to the 345 ...... 288,577 dozen. Agreement on Tariffs and Trade 1994 on 347/348 ...... 928,446 dozen. Textiles Monitoring Body pursuant to January 1, 2002 (listed in the Federal Register the Uruguay Round Agreement on 351/651 ...... 383,220 dozen. notice published on May 1, 1995, 60 FR 363 ...... 67,457,452 numbers. 21075) which are exported during 2001 shall Textiles and Clothing (ATC). 369–S 2 ...... 1,023,174 kilograms. be charged to the applicable 2001 limits to Pursuant to the provisions of the ATC, 641 ...... 2,110,724 dozen. the extent of any unfilled balances. After the third stage of the integration of 647/648 ...... 1,225,678 dozen. January 1, 2002, should those 2001 limits be textile and apparel products into the filled, such products shall no longer be General Agreement on Tariffs and Trade charged to any limit. 1994 will take place on January 1, 2002
VerDate 11
(see 60 FR 21075, published on May 1, Twelve-month restraint Twelve-month restraint 1995). Accordingly, certain previously Category limit Category limit restrained categories have been modified or eliminated and certain 300/301 ...... 3,649,502 kilograms. 633/634/635 ...... 1,384,034 dozen of limits have been revised. Integrated 313 ...... 59,474,510 square which not more than meters. 156,946 dozen shall products will no longer be subject to 314 ...... 33,160,379 square be in Category 633 quota. meters. and not more than In the letter published below, the 315 ...... 20,029,567 square 584,890 dozen shall Chairman of CITA directs the meters. be in Category 635. Commissioner of Customs to establish 317/326 ...... 22,102,274 square 636 ...... 297,611 dozen. the 2002 limits. meters. 638/639 ...... 5,388,526 dozen. A description of the textile and 363 ...... 1,273,696 numbers. 640–D 15 ...... 3,234,819 dozen. apparel categories in terms of HTS 410 ...... 3,776,838 square me- 640–O 16 ...... 2,695,682 dozen. numbers is available in the ters. 641 ...... 1,093,330 dozen of CORRELATION: Textile and Apparel 604 ...... 466,128 kilograms. which not more than Categories with the Harmonized Tariff 611 ...... 4,351,794 square me- 41,297 dozen shall Schedule of the United States (see ters. be in Category 641– 613/614 ...... 7,252,989 square me- Y 17. Federal Register notice 65 FR 82328, ters. published on December 28, 2000). 643 ...... 809,992 numbers. 617 ...... 6,014,675 square me- 644 ...... 1,218,597 numbers. Information regarding the 2002 ters. 645/646 ...... 3,705,449 dozen. CORRELATION will be published in the 619/620 ...... 100,521,986 square Federal Register at a later date. meters. 647/648 ...... 1,412,150 dozen. 624 ...... 10,614,131 square 659–H ...... 1,469,293 kilograms. Jim Bennett, meters. 659–S ...... 215,889 kilograms. Acting Chairman, Committee for the 625/626/627/628/629 18,567,652 square Level in Group III Implementation of Textile Agreements. meters. 852, as a group ...... 13,291,359 square Committee for the Implementation of Textile Group II meters equivalent. Agreements 237, 239pt. 6, 568,345,209 square Levels not in a group 331pt. 7, 332–348, meters equivalent. 845 ...... 2,315,056 dozen. November 23, 2001. 351, 352, 359pt., 846 ...... 823,868 dozen. Commissioner of Customs, 433–438, 440– Department of the Treasury, Washington, DC 448, 459–W 8, 1 Category 224–V: only HTS numbers 20229. 459pt. 9, 631pt. 10, 5801.21.0000, 5801.23.0000, 5801.24.0000, Dear Commissioner: Pursuant to section 633–648, 651, 5801.25.0010, 5801.25.0020, 5801.26.0010, 204 of the Agricultural Act of 1956, as 5801.26.0020, 5801.31.0000, 5801.33.0000, 652, 659– 5801.34.0000, 5801.35.0010, 5801.35.0020, amended (7 U.S.C. 1854); Executive Order 11 12 H ,659–S and 5801.36.0010 and 5801.36,0020. 11651 of March 3, 1972, as amended; and the 659pt. 13, as a 2 Uruguay Round Agreement on Textiles and Category 224–O: all remaining HTS num- group bers in Category 224. Clothing (ATC), you are directed to prohibit, Sublevels within 3 Category 369pt.: all HTS numbers except effective on January 1, 2002, entry into the Group II 4202.12.4000, 4202.12.8020, 4202.12.8060, United States for consumption and 237 ...... 72,174 dozen. 4202.22.4020, 4202.22.4500, 4202.22.8030, withdrawal from warehouse for consumption 239pt...... 291,836 kilograms. 4202.32.4000, 4202.32.9530, 4202.92.1500, of cotton, wool, man-made fiber, silk blend 333/334/335 ...... 326,385 dozen of 4202.92.3016, 4202.92.6091, 5601.10.1000, and other vegetable fiber textiles and textile 5601.21.0090, 5701.90.1020, 5701.90.2020, which not more than products in the following categories, 5702.10.9020, 5702.39.2010, 5702.49.1020, 166,820 dozen shall produced or manufactured in the Republic of 5702.49.1080, 5702.59.1000, 5702.99.1010, be in Category 335. Korea and exported during the twelve-month 5702.99.1090, 5705.00.2020, 5805.00.3000, 336 ...... 68,975 dozen. period beginning on January 1, 2002 and 5807.10.0510, 5807.90.0510, 6301.30.0010, 338/339 ...... 1,450,598 dozen. 6301.30.0020, 6302,51.1000, 6302.51.2000, extending through December 31, 2002, in 340 ...... 754,311 dozen of 6302.51.3000, 6302.51.4000, 6302.60.0010, excess of the following levels of restraint: which not more than 6302.60.0030, 6302.91.0005, 6302.91.0025, 391,663 dozen shall 6302.91.0045, 6302.91.0050, 6302.91.0060, Category Twelve-month restraint 6303.11.0000, 6303.91.0010, 6303.91.0020, limit be in Category 340– 6304.91.0020, 6304.92.0000, 6305.20.0000, D 14. 6306.11.0000, 6307.10.1020, 6307.10.1090, Group I 341 ...... 200,297 dozen. 6307.90.3010, 6307.90.4010, 6307.90.5010, 200–220, 224–V 1, 248,235,339 square 342/642 ...... 262,334 dozen. 6307.90.8910, 6307.90.8945, 6307.90.9905, 224–O 2, 225–227, meters equivalent. 345 ...... 140,923 dozen. 6307.90.9982, 6406.10.7700, 9404.90.1000, 347/348 ...... 536,720 dozen. 9404.90.8040 and 9404.90.9505. 300–326, 360– 4 3 351/651 ...... 275,588 dozen. Category 469pt.: all HTS numbers except 363, 369pt., , 5601.29.0020, 5603.94.1010, 6304.19.3040, 4 352 ...... 214,455 dozen. 400–414, 469pt., , 6304.91.0050, 6304.99.1500, 6304.99.6010, 603, 604, 611– 433 ...... 14,372 dozen. 6308.00.0010 and 6406.10.9020. 620, 625-629, 434 ...... 7,371 dozen. 5 Category 666pt.: all HTS numbers except 666pt. 5, as a 435 ...... 37,462 dozen. 5805.00.4010, 6301.10.0000, 6301.40.0010, group 436 ...... 15,859 dozen. 6301.40.0020, 6301.90.0010, 6302.53.0010, Sublevels within 438 ...... 63,582 dozen. 6302.53.0020, 6302.53.0030, 6302.93.1000, Group I 440 ...... 204,872 dozen. 6302.93.2000, 6303.12.0000, 6303.19.0010, 200 ...... 536,720 kilograms. 442 ...... 53,592 dozen. 6303.92.1000, 6303.92.2010, 6303.92.2020, 443 ...... 322,056 numbers. 6303.99.0010, 6304.11.2000, 6304.19.1500, 201 ...... 3,113,606 kilograms. 6304.19.2000, 6304.91.0040, 6304.93.0000, 218 ...... 10,879,484 square 444 ...... 58,400 numbers. 6304.99.6020, 6307.90.9984, 9404.90.8522 meters. 445/446 ...... 53,915 dozen. and 9404.90.9522. 219 ...... 9,906,522 square me- 447 ...... 91,983 dozen. 6 Category 239pt.: only HTS number ters. 448 ...... 37,703 dozen. 6209.20.5040 (diapers). 224–V ...... 12,488,686 square 459–W ...... 101,987 kilograms. meters. 631pt...... 73,592 dozen pairs.
VerDate 11
7 Category 331pt.: all HTS numbers except Conversion factor wool and man-made fiber textile 6116.10.1720, 6116.10.4810, 6116.10.5510, Category (Square meters equiv- products from Mexico are being 6116.10.7510, 6116.92.6410, 6116.92.6420, alent/category unit) 6116.92.6430, 6116.92.6440, 6116.92.7450, established for the period beginning on 6116.92.7460, 6116.92.7470, 6116.92.8800, January 1, 2002 and extending through 333/334/335 ...... 33.75 6116.92.9400 and 6116.99.9510. December 31, 2002. 8 Category 459–W: only HTS number 369–L/670–L/870 ..... 3.8 <––(for changes to 6505.90.4090. year 2001 limit for These restrictions and consultation 9 Category 459pt.: all HTS numbers except group VI) levels do not apply to NAFTA 6505.90.4090 (Category 459–W); 633/634/635 ...... 34.1 originating goods, as defined in Annex 6115.19.8020, 6117.10.1000, 6117.10.2010, 638/639 ...... 12.96 300–B, Chapter 4 and Annex 401 of the 6117.20.9020, 6212.90.0020, 6214.20.0000, NAFTA. In addition, restrictions and 6405.20.6030, 6405.20.6060, 6405.20.6090, In carrying out the above directions, the consultation levels do not apply to 6406.99.1505, 6406.99.1560. Commissioner of Customs should construe 10 Category 631pt.: all HTS numbers except textile and apparel goods that are 6116.10.1730, 6116.10.4820, 6116.10.5520, entry into the United States for consumption assembled in Mexico from fabrics to include entry for consumption into the 6116.10.7520, 6116.93.8800, 6116.93.9400, wholly formed and cut in the United 6116.99.4800, 6116.99.5400 and Commonwealth of Puerto Rico. 6116.99.9530. The Committee for the Implementation of States and exported from and re- 11 Category 659–H: only HTS numbers Textile Agreements has determined that imported into the United States under 6502.00.9030, 6504.00.9015, 6504.00.9060, these actions fall within the foreign affairs Harmonized Tariff Schedule of the 6505.90.5090, 6505.90.6090, 6505.90.7090 exception of the rulemaking provisions of 5 United States item 9802.00.90. and 6505.90.8090. U.S.C. 553(a)(1). 12 In the letter published below, the Category 659–S: only HTS numbers Sincerely, 6112.31.0010, 6112.31.0020, 6112.41.0010, Chairman of CITA directs the 6112.41.0020, 6112.41.0030, 6112.41.0040, Jim Bennett, Commissioner of Customs to implement Acting Chairman, Committee for the 6211.11.1010, 6211.11.1020, 6211.12.1010 levels for the 2002 period. and 6211.12.1020. Implementation of Textile Agreements. 13 Category 659pt.: all HTS numbers except [FR Doc. 01–29624 Filed 11–28–01; 8:45 am] A description of the textile and apparel categories in terms of HTS 6502.00.9030, 6504.00.9015, 6504.00.9060, BILLING CODE 3510–DR–S 6505.90.5090, 6505.90.6090, 6505.90.7090, numbers is available in the 6505.90.8090 (Category 659–H); CORRELATION: Textile and Apparel 6112.31.0010, 6112.31.0020, 6112.41.0010, 6112.41.0020, 6112.41.0030, 6112.41.0040, COMMITTEE FOR THE Categories with the Harmonized Tariff 6211.11.1010, 6211.11.1020, 6211.12.1010, IMPLEMENTATION OF TEXTILE Schedule of the United States (see 6211.12.1020 (Category 659–S); AGREEMENTS Federal Register notice 65 FR 82328, 6115.11.0010, 6115.12.2000, 6117.10.2030, published on December 28, 2000). 6117.20.9030, 6212.90.0030, 6214.30.0000, 6214.40.0000, 6406.99.1510 and Announcement of Levels for Certain Information regarding the 2002 6406.99.1540. Wool and Man-Made Fiber Textile CORRELATION will be published in the 14 Category 340–D: only HTS numbers Products Produced or Manufactured in Federal Register at a later date. 6205.20.2015, 6205.20.2020, 6205.20.2025 the United Mexican States and 6205.20.2030. Jim Bennett, 15 Category 640–D: only HTS numbers November 23, 2001. Acting Chairman, Committee for the 6205.30.2010, 6205.30.2020, 6205.30.2030, Implementation of Textile Agreements. 6205.30.2040, 6205.90.3030 and AGENCY: Committee for the 6205.90.4030. Implementation of Textile Agreements Committee for the Implementation of Textile 16 640–O: only HTS numbers 6203.23.0080, (CITA). Agreements 6203.29.2050, 6205.30.1000, 6205.30.2050, ACTION: Issuing a directive to the 6205.30.2060, 6205.30.2070, 6205.30.2080 November 23, 2001. and 6211.33.0040. Commissioner of Customs establishing Commissioner of Customs, 17 Category 641–Y: only HTS numbers levels under the North America Free Department of the Treasury, Washington, DC 6204.23.0050, 6204.29.2030, 6206.40.3010 Trade Agreement. 20229. and 6206.40.3025. Dear Commissioner: Pursuant to section The limits set forth above are subject to EFFECTIVE DATE: January 1, 2002. 204 of the Agricultural Act of 1956, as adjustment pursuant to the provisions of the FOR FURTHER INFORMATION CONTACT: amended (7 U.S.C. 1854); Executive Order ATC and administrative arrangements Naomi Freeman, International Trade 11651 of March 3, 1972, as amended; and the notified to the Textiles Monitoring Body. Specialist, Office of Textiles and North American Free Trade Agreement (NAFTA), between the Governments of the Products in the above categories exported Apparel, U.S. Department of Commerce, United States, the United Mexican States and during 2001 shall be charged to the (202) 482–4212. For information on the Canada, you are directed to prohibit, effective applicable category limits for that year (see quota status of these limits, refer to the on January 1, 2002, entry into the United directive dated November 14, 2000 ) to the Quota Status Reports posted on the States for consumption and withdrawal from extent of any unfilled balances. In the event bulletin boards of each Customs port, warehouse for consumption of wool and the limits established for that period have call (202) 927–5850, or refer to the U.S. man-made fiber textile products in the been exhausted by previous entries, such Customs website at http:// following categories, produced or products shall be charged to the limits set www.customs.gov. For information on manufactured in Mexico and exported during forth in this directive. embargoes and quota re-openings, refer the twelve-month period beginning on Products to be integrated into the General to the Office of Textiles and Apparel January 1, 2002 and extending through December 31, 2002, in excess of the following Agreement on Tariffs and Trade 1994 on website at http://otexa.ita.doc.gov. January 1, 2002 (listed in the Federal Register levels: notice published on May 1, 1995, 60 FR SUPPLEMENTARY INFORMATION: 21075) which are exported during 2001 shall Authority: Section 204 of the Agricultural Category Twelve-month limit be charged to the applicable 2001 limits to Act of 1956, as amended (7 U.S.C. 1854); the extent of any unfilled balances. After Executive Order 11651 of March 3, 1972, as 410 ...... 397,160 square me- ters. January 1, 2002, should those 2001 limits be amended. 433 ...... 11,000 dozen. filled, such products shall no longer be In order to implement Annex 300–B of the North American Free Trade 443 ...... 205,286 numbers. charged to any limit. 611 ...... 1,267,710 square me- The conversion factors for the following Agreement (NAFTA), restrictions and ters. merged categories are listed below: consultation levels for certain cotton,
VerDate 11
The levels set forth above are subject to SUPPLEMENTARY INFORMATION: Twelve-month restraint adjustment pursuant to the provisions of Category limit Annex 300–B of the NAFTA. Authority: Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854); Products in the above categories exported 342/642 ...... 372,736 dozen. Executive Order 11651 of March 3, 1972, as during 2001 shall be charged to the 347/348 ...... 961,951 dozen. amended. applicable category levels for that year (see 363 ...... 8,698,466 numbers. directive dated October 26, 2000) to the The Bilateral Textile Agreement, 369–S 1 ...... 1,043,347 kilograms. extent of any unfilled balances. In the event effected by exchange of notes dated May 640 ...... 214,942 dozen. the levels established for that period have 30 and June 1, 1986, as amended and 641 ...... 484,640 dozen. been exhausted by previous entries, such extended, and Memorandum of products shall be charged to the levels set 1 Category 369–S: only HTS number Understanding (MOU) dated July 13, 6307.10.2005. forth in this directive. 2000 between the Governments of the The foregoing levels do not apply to The limits set forth above are subject to NAFTA originating goods, as defined in United States and Nepal establish limits for the period January 1, 2002 through adjustment pursuant to the provisions of the Annex 300–B, Chapter 4 and Annex 401 of current bilateral agreement between the the NAFTA. In addition, restrictions and December 31, 2002. Governments of the United States and Nepal. consultation levels do not apply to textile These limits may be revised if Nepal Products in the above categories exported and apparel goods that are assembled in becomes a member of the World Trade during 2001 shall be charged to the Mexico from fabrics wholly formed and cut Organization (WTO) and the United applicable category limits for that year (see in the United States and exported from and States applies the WTO agreement to directive dated November 2, 2000) to the re-imported into the United States under extent of any unfilled balances. In the event Harmonized Tariff Schedule of the United Nepal. In the letter published below, the the limits established for that period have States item 9802.00.90. been exhausted by previous entries, such In carrying out the above directions, the Chairman of CITA directs the Commissioner of Customs to establish products shall be charged to the limits set Commissioner of Customs should construe forth in this directive. entry into the United States for consumption the 2002 limits. These limits may be revised if Nepal to include entry for consumption into the A description of the textile and becomes a member of the World Trade Commonwealth of Puerto Rico. apparel categories in terms of HTS Organization (WTO) and the United States The Committee for the Implementation of numbers is available in the applies the WTO agreement to Nepal. Textile Agreements has determined that CORRELATION: Textile and Apparel In carrying out the above directions, the these actions fall within the foreign affairs Commissioner of Customs should construe exception of the rulemaking provisions of 5 Categories with the Harmonized Tariff entry into the United States for consumption U.S.C. 553(a)(1). Schedule of the United States (see to include entry for consumption into the Sincerely, Federal Register notice 65 FR 82328, Commonwealth of Puerto Rico. Jim Bennett, published on December 28, 2000). The Committee for the Implementation of Acting Chairman, Committee for the Information regarding the 2002 Implementation of Textile Agreements. Textile Agreements has determined that CORRELATION will be published in the these actions fall within the foreign affairs [FR Doc. 01–29630 Filed 11–28–01; 8:45 am] Federal Register at a later date. exception of the rulemaking provisions of 5 BILLING CODE 3510–DR–S U.S.C. 553(a)(1). Jim Bennett, Sincerely, Acting Chairman, Committee for the Jim Bennett, COMMITTEE FOR THE Implementation of Textile Agreements. Acting Chairman, Committee for the IMPLEMENTATION OF TEXTILE Committee for the Implementation of Textile Implementation of Textile Agreements. AGREEMENTS Agreements [FR Doc. 01–29625 Filed 11–28–01; 8:45 am] November 23, 2001. BILLING CODE 3510–DR–S Announcement of Import Restraint Limits for Certain Cotton and Man- Commissioner of Customs, Made Fiber Textile Products Produced Department of the Treasury, Washington, DC 20229. COMMITTEE FOR THE or Manufactured in Nepal Dear Commissioner: Pursuant to section IMPLEMENTATION OF TEXTILE AGREEMENTS November 23, 2001. 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854); Executive Order AGENCY: Committee for the 11651 of March 3, 1972, as amended; the Announcement of Import Restraint Implementation of Textile Agreements Bilateral Textile Agreement, effected by Limits for Certain Cotton and Man- (CITA). exchange of notes dated May 30 and June 1, Made Fiber Textile Products Produced ACTION: Issuing a directive to the 1986, as amended and extended; and the or Manufactured in Oman Commissioner of Customs establishing Memorandum of Understanding dated July limits. 13, 2000 between the Governments of the November 23, 2001. United States and Nepal, you are directed to AGENCY: Committee for the EFFECTIVE DATE: January 1, 2002. prohibit, effective on January 1, 2002, entry Implementation of Textile Agreements into the United States for consumption and FOR FURTHER INFORMATION CONTACT: Roy (CITA). withdrawal from warehouse for consumption Unger, International Trade Specialist, of cotton and man-made fiber textile ACTION: Issuing a directive to the Office of Textiles and Apparel, U.S. products in the following categories, Commissioner of Customs establishing Department of Commerce, (202) 482– produced or manufactured in Nepal and limits. 4212. For information on the quota exported during the twelve-month period status of these limits, refer to the Quota beginning on January 1, 2002 and extending EFFECTIVE DATE: January 1, 2002. Status Reports posted on the bulletin through December 31, 2002, in excess of the FOR FURTHER INFORMATION CONTACT: Roy boards of each Customs port, call (202) following levels of restraint: Unger, International Trade Specialist, 927–5850, or refer to the U.S. Customs Office of Textiles and Apparel, U.S. Twelve-month restraint website at http://www.customs.gov. For Category limit Department of Commerce (202) 482– information on embargoes and quota re- 4212. For information on the quota openings, refer to the Office of Textiles 336/636 ...... 325,259 dozen. status of these limits, refer to the Quota and Apparel website at http:// 340 ...... 427,070 dozen. Status Reports posted on the bulletin otexa.ita.doc.gov. 341 ...... 1,186,561 dozen. boards of each Customs port, call (202)
VerDate 11
927–5850, or refer to the U.S. Customs through December 31, 2002, in excess of the FOR FURTHER INFORMATION CONTACT: Roy website at http://www.customs.gov. For following levels of restraint: Unger, International Trade Specialist, information on embargoes and quota re- Office of Textiles and Apparel, U.S. openings, refer to the Office of Textiles Twelve-month restraint Department of Commerce, (202) 482– Category limit and Apparel website at http:// 4212. For information on the quota otexa.ita.doc.gov. 334/634 ...... 173,191 dozen. status of these limits, refer to the Quota Status Reports posted on the bulletin SUPPLEMENTARY INFORMATION: 335/635 ...... 334,869 dozen. 338/339 ...... 694,855 dozen. boards of each Customs port, call (202) Authority: Section 204 of the Agricultural 340/640 ...... 334,869 dozen. 927–5850, or refer to the U.S. Customs Act of 1956, as amended (7 U.S.C. 1854); 341/641 ...... 251,151 dozen. website at http://www.customs.gov. For Executive Order 11651 of March 3, 1972, as 347/348 ...... 1,197,157 dozen. information on embargoes and quota re- amended. 647/648 ...... 473,429 dozen. openings, refer to the Office of Textiles The import restraint limits for textile and Apparel website at http:// products, produced or manufactured in The limits set forth above are subject to otexa.ita.doc.gov. Oman and exported during the period adjustment pursuant to the provisions of the ATC and administrative arrangements January 1, 2002 through December 31, SUPPLEMENTARY INFORMATION: 2002 are based on limits notified to the notified to the Textiles Monitoring Body. Textiles Monitoring Body pursuant to Products in the above categories exported Authority: Section 204 of the Agricultural during 2000 shall be charged to the Act of 1956, as amended (7 U.S.C. 1854); the Uruguay Round Agreement on applicable category limits for that year (see Executive Order 11651 of March 3, 1972, as Textiles and Clothing (ATC). directive dated December 5, 2000) to the amended. Pursuant to the provisions of the ATC, extent of any unfilled balances. In the event The import restraint limits for textile the third stage of the integration of the limits established for that period have products, produced or manufactured in textile and apparel products into the been exhausted by previous entries, such General Agreement on Tariffs and Trade products shall be charged to the limits set Qatar and exported during the period 1994 will take place on January 1, 2002 forth in this directive. January 1, 2002 through December 31, (see 60 FR 21075, published on May 1, Products to be integrated into the General 2002 are based on limits notified to the 1995). Accordingly, a certain previously Agreement on Tariffs and Trade 1994 on Textiles Monitoring Body pursuant to January 1, 2002 (listed in the Federal Register restrained category has been eliminated the Uruguay Round Agreement on notice published on May 1, 1995, 60 FR Textiles and Clothing (ATC). and a certain limit has been revised. 21075) which are exported during 2001 shall Integrated products will no longer be be charged to the applicable 2001 limits to In the letter published below, the subject to quota. the extent of any unfilled balances. After Chairman of CITA directs the In the letter published below, the January 1, 2002, should those 2001 limits be Commissioner of Customs to establish Chairman of CITA directs the filled, such products shall no longer be the limits for the 2002 period. Commissioner of Customs to establish charged to any limit. A description of the textile and limits for the 2002 period. In carrying out the above directions, the Commissioner of Customs should construe apparel categories in terms of HTS A description of the textile and entry into the United States for consumption numbers is available in the apparel categories in terms of HTS to include entry for consumption into the CORRELATION: Textile and Apparel numbers is available in the Commonwealth of Puerto Rico. Categories with the Harmonized Tariff CORRELATION: Textile and Apparel The Committee for the Implementation of Schedule of the United States (see Categories with the Harmonized Tariff Textile Agreements has determined that Federal Register notice 65 FR 82328, Schedule of the United States (see these actions fall within the foreign affairs published on December 28, 2000). Federal Register notice 65 FR 82328, exception of the rulemaking provisions of 5 Information regarding the 2002 published on December 28, 2000). U.S.C. 553(a)(1). CORRELATION will be published in the Information regarding the 2002 Sincerely, Jim Bennett, Federal Register at a later date. CORRELATION will be published in the Acting Chairman, Committee for the Jim Bennett, Federal Register at a later date. Implementation of Textile Agreements. Acting Chairman, Committee for the Jim Bennett, [FR Doc. 01–29627 Filed 11–28–01; 8:45 am] Implementation of Textile Agreements. Acting Chairman, Committee for the BILLING CODE 3510–DR–S Committee for the Implementation of Textile Implementation of Textile Agreements. Agreements Committee for the Implementation of Textile COMMITTEE FOR THE November 23, 2001. Agreements IMPLEMENTATION OF TEXTILE Commissioner of Customs, November 23, 2001. AGREEMENTS Department of the Treasury, Washington, DC Commissioner of Customs, 20229. Department of the Treasury, Washington, DC Announcement of Import Restraint Dear Commissioner: Pursuant to section 20229. Limits for Certain Cotton and Man- 204 of the Agricultural Act of 1956, as Dear Commissioner: Pursuant to section Made Fiber Textile Products Produced amended (7 U.S.C. 1854); Executive Order 204 of the Agricultural Act of 1956, as or Manufactured in Qatar 11651 of March 3, 1972, as amended; and the amended (7 U.S.C. 1854); Executive Order Uruguay Round Agreement on Textiles and 11651 of March 3, 1972, as amended; and the November 23, 2001. Clothing (ATC), you are directed to prohibit, Uruguay Round Agreement on Textiles and effective on January 1, 2002, entry into the Clothing (ATC), you are directed to prohibit, AGENCY: Committee for the United States for consumption and effective on January 1, 2002, entry into the Implementation of Textile Agreements withdrawal from warehouse for consumption United States for consumption and (CITA). of cotton and man-made fiber textile withdrawal from warehouse for consumption ACTION: Issuing a directive to the products in the following categories, of cotton and man-made fiber textile Commissioner of Customs establishing produced or manufactured in Qatar and products in the following categories, exported during the twelve-month period produced or manufactured in Oman and limits. beginning on January 1, 2002 and extending exported during the twelve-month period through December 31, 2002, in excess of the beginning on January 1, 2002 and extending EFFECTIVE DATE: January 1, 2002. following levels of restraint:
VerDate 11
Twelve-month restraint Executive Order 11651 of March 3, 1972, as of any unfilled balance. In the event the limit Category limit amended. established for that period has been The Bilateral Textile Agreement, exhausted by previous entries, such products 340/640 ...... 642,173 dozen. effected by exchange of notes dated shall be charged to the limit set forth in this 341/641 ...... 296,388 dozen. August 13, 1996 and September 9, 1996, directive. 347/348 ...... 731,089 dozen. as amended on February 26, 2001, and This limit may be revised if Russia April 30, 2001, between the becomes a member of the World Trade Organization (WTO) and the United States The limits set forth above are subject to Governments of the United States and adjustment pursuant to the provisions of the applies the WTO agreement to Russia. ATC and administrative arrangements the Russian Federation establishes a In carrying out the above directions, the notified to the Textiles Monitoring Body. limit for wool textile products in Commissioner of Customs should construe Products in the above categories exported Category 435 for the period January 1, entry into the United States for consumption during 2001 shall be charged to the 2002 through December 31, 2002. to include entry for consumption into the applicable category limits for that year (see In the letter published below, the Commonwealth of Puerto Rico. directive dated October 27, 2000) to the Chairman of CITA directs the The Committee for the Implementation of extent of any unfilled balances. In the event Commissioner of Customs to establish Textile Agreements has determined that this the limits established for that period have the limit for the period January 1, 2002 action falls within the foreign affairs been exhausted by previous entries, such exception of the rulemaking provisions of 5 products shall be charged to the limits set through December 31, 2002. This limit may be revised if Russia U.S.C.553(a)(1). forth in this directive. Sincerely, In carrying out the above directions, the becomes a member of the World Trade Jim Bennett, Commissioner of Customs should construe Organization (WTO) and the United Acting Chairman, Committee for the entry into the United States for consumption States applies the WTO agreement to Implementation of Textile Agreements. to include entry for consumption into the Russia. [FR Doc. 01–29628 Filed 11–28–01; 8:45 am] Commonwealth of Puerto Rico. A description of the textile and BILLING CODE 3510–DR–S The Committee for the Implementation of apparel categories in terms of HTS Textile Agreements has determined that numbers is available in the these actions fall within the foreign affairs CORRELATION: Textile and Apparel exception to the rulemaking provisions of 5 DEPARTMENT OF ENERGY U.S.C. 553(a)(1). Categories with the Harmonized Tariff Sincerely, Schedule of the United States (see National Energy Technology Jim Bennett, Federal Register notice 65 FR 82328, Laboratory; Notice of Availability of a Acting Chairman, Committee for the published on December 28, 2000). Financial Assistance Solicitation Implementation of Textile Agreements. Information regarding the availability of [FR Doc. 01–29626 Filed 11–28–01; 8:45 am] the 2002 CORRELATION will be AGENCY: National Energy Technology BILLING CODE 3510–DR–S published in the Federal Register at a Laboratory, Department of Energy later date. (DOE). ACTION: Notice of availability of a Jim Bennett, COMMITTEE FOR THE Financial Assistance Solicitation. IMPLEMENTATION OF TEXTILE Acting Chairman, Committee for the AGREEMENTS Implementation of Textile Agreements. SUMMARY: Notice is hereby given of the Committee for the Implementation of Textile intent to issue Financial Assistance Announcement of an Import Limit for Agreements Solicitation No. DE–PS26–02NT41422 Certain Wool Textile Products November 23, 2001. entitled Development of Technologies Produced or Manufactured in Russia and Capabilities for Developing Coal, Commissioner of Customs, Oil, and Gas Energy Resources. The November 23, 2001. Department of the Treasury, Washington, DC 20229. Department of Energy (DOE), National AGENCY: Committee for the Dear Commissioner: Pursuant to section Energy Technology Laboratory (NETL), Implementation of Textile Agreements 204 of the Agricultural Act of 1956, as is conducting this solicitation to (CITA). amended (7 U.S.C. 1854); Executive Order competitively seek cost-shared ACTION: Issuing a directive to the 11651 of March 3, 1972, as amended; and the applications for research and Commissioner of Customs establishing a Bilateral Textile Agreement, effected by development of technologies enabling limit. exchange of notes dated August 13, 1996 and development of energy resources September 9, 1996, as amended on February needed to ensure the availability of EFFECTIVE DATE: January 1, 2002. 26, 2001, and April 30, 2001, between the Governments of the United States and the affordable energy for the Nation’s future. FOR FURTHER INFORMATION CONTACT: Russian Federation, you are directed to DATES: Potential applicants are required Naomi Freeman, International Trade prohibit, effective on January 1, 2002, entry to submit a brief, not to exceed four Specialist, Office of Textiles and into the United States for consumption and pages, pre-application. A response to Apparel, U.S. Department of Commerce, withdrawal from warehouse for consumption the pre-applications either encouraging (202) 482–4212. For information on the of wool textile products in Category 435, or discouraging submission of a quota status of these limits, refer to the produced or manufactured in Russia and comprehensive application will be Quota Status Reports posted on the exported during the period beginning on January 1, 2002 and extending through communicated to the applicant within bulletin boards of each Customs port, about 30 days of the closing date for the call (202) 927–5850, or refer to the U.S. December 31, 2002, in excess of 56,309 dozen. 1 pre-application. All pre-applications Customs website at http:// Products in the above category exported must be submitted through the Industry www.customs.gov. For information on during 2001 shall be charged to the Interactive Procurement System (IIPS) embargoes and quota re-openings, refer applicable category limit for that year (see system in accordance with the to the Office of Textiles and Apparel directive dated May 18, 2001) to the extent instructions in the solicitation. The website at http://otexa.ita.doc.gov. solicitation will be available on DOE/ SUPPLEMENTARY INFORMATION: 1 The limit set forth above is subject to adjustment pursuant to the current bilateral agreement between NETL’s Internet address at http:// Authority: Section 204 of the Agricultural the Governments of the United States and the www.netl.doe.gov/business and on the Act of 1956, as amended (7 U.S.C. 1854); Russian Federation. ‘‘Industry Interactive Procurement
VerDate 11
System’’ (IIPS) Web page located at application for consideration. After Issued in Pittsburgh, PA, on November 1, http://e-center.doe.gov on or about agency consideration, the applicant will 2001. November 15, 2001. The deadline for receive a notification that the Dale A. Siciliano, submission of pre-applications and submission of a comprehensive Deputy Director, Acquisition and Assistance comprehensive applications for each of application is either encouraged or Division. the three evaluation periods will be discouraged. After notifications through [FR Doc. 01–29634 Filed 11–28–01; 8:45 am] identified in the solicitation. the IIPS system, applicants will have BILLING CODE 6450–01–P FOR FURTHER INFORMATION CONTACT: about 30 days to prepare and submit the Larry D. Gillham, MS 921–162, U.S. comprehensive application. Offerors are DEPARTMENT OF ENERGY Department of Energy, National Energy hereby notified that comprehensive Technology Laboratory, P.O. Box 10940, applications received on or before the Federal Energy Regulatory 626 Cochrans Mill Road, Pittsburgh, PA pre-application due date will be Commission 15236–0940, E-mail Address: discarded prior to evaluation, and will [Docket No. CP02–27–000] [email protected], Telephone not be evaluated. Applications Number: (412) 386–5817. submitted by, or on behalf of: (1) Florida Gas Transmission Company; SUPPLEMENTARY INFORMATION: Through Another Federal agency (OFA); (2) a Notice of Certificate Application this solicitation, NETL seeks Federally Funded Research and applications in the following fourteen Development Center (FFRDC) sponsored November 23, 2001. (14) separate (i.e., stand alone) Areas of by another Federal agency; or (3) a Take notice that on November 15, Interest: Department of Energy (DOE) 2001, Florida Gas Transmission Company (Florida Gas), 1400 Smith Coal & Environmental Systems Management and Operating (M&O) Street, Houston, Texas 77002, filed an contractor will not be eligible for an (1) Combustion Systems application for a certificate of public award under this solicitation. OFAs, (2) Gasification Technologies convenience and necessity pursuant to (3) Environmental & Water Resources FFRDCs and M&Os will not be eligible Section 7 of the Natural Gas Act (NGA), (4) Sequestration to respond directly to this solicitation, as amended, and the Federal Energy (5) Power Systems Advanced Research nor may they participate as a teaming Regulatory Commission’s (the (6) Vision 21 member or subcontractor under any Commission) Rules and Regulations application. Applications from OFAs, thereunder. Florida Gas requests Strategic Center for Natural Gas FFRDCs or M&Os, or applications which authorization to: 1) construct, install, (7) Fuel Cells include an OFA, FFRDC or M&O as a own, operate and maintain certain (8) Gas Exploration, Production & team member or subcontractor will not facilities to provide up to 85,356 Storage be evaluated. dekatherms per day (Dth/d) of average (9) Infrastructure Reliability Once released, the solicitation will be annual incremental firm natural gas Fuels & Energy Efficiency available for downloading from the IIPS transportation service; and, 2) roll-in the Internet page. At this Internet site you costs associated with the proposed (10) Natural Gas Processing expansion of its facilities with Florida (11) Transportation Fuels & Chemicals will also be able to register with IIPS, enabling you to submit an application. Gas’ Incremental System under Rate (12) Fuels Advanced Research Schedule FTS–2, all as more fully set If you need technical assistance in forth in the application, which is on file Petroleum registering or for any other IIPS with the Commission, and open for (13) Oil and Gas Environmental: function, call the IIPS Help Desk at public inspection. This filing may be Upstream (800) 683–0751 or E-mail the Help Desk _ viewed on the web at http:// (14) Oil and Gas Environmental: personnel at IIPS HelpDesk@e- www.ferc.gov using the ‘‘RIMS’’ link, Downstream Processing, Heavy Oil center.doe.gov. The solicitation will select ‘‘Docket #’’ and follow the Upgrading Technologies and only be made available in IIPS, no hard instructions (call 202–208–2222 for Fundamental Science for Enhanced (paper) copies of the solicitation and assistance). Following its open seasons, Environmental Performance at related documents will be made Florida Gas contracted for firm Refineries available. transportation service with four Applicants must select and target only Prospective applicants who would shippers (Shippers): Orlando Utilities one (1) Area of Interest per application. like to be notified as soon as the Commission (OUC); Reliant Energy DOE anticipates the award of multiple solicitation is available should subscribe Services, Inc.; and, two LDC’s, South cost-sharing cooperative agreements to the Business Alert Mailing List at Florida Natural Gas, and, City of under each Area of Interest. http://www.netl.doe.gov/business. Once Leesburg. Approximately $17 million of DOE you subscribe, you will receive an The facilities will consist of: (i) funds is planned for this solicitation Mainline Expansions, which involve announcement by E-mail that the which will cover all Areas of Interest improvements along Florida Gas’s solicitation has been released to the and all evaluation periods. It is existing pipeline in Alabama, Florida, anticipated that a total of 20–30 awards public. Telephone requests, written Louisiana, and Mississippi including (a) will be made as a result of this requests, E-mail requests, or facsimile approximately 5.3 miles of 36-inch solicitation. In accordance with Section requests for a copy of the solicitation diameter pipeline loops (in Baldwin and 3002 of the Energy Policy Act (EPAct), package will not be accepted and/or Mobile Counties, Alabama), (b) a minimum of 20% cost share will be honored. Applications must be prepared approximately 20.1 miles of 30-inch required for each project. This and submitted in accordance with the diameter pipeline loops (in Bradford, solicitation includes multiple closing instructions and forms contained in the Clay, Suwannee, and Washington dates and uses a Two-Step Application solicitation. The actual solicitation Counties, Florida), (c) compression process for each closing date. Under document will allow for requests for increases totaling 18,600 horsepower at Step 1, applicants will submit a pre- explanation and/or interpretation. ten locations (in Mobile County,
VerDate 11
Alabama; Citrus, Gadsden, Gilchrist, person obtaining party status will be non-environmental benefits to be Orange, Santa Rosa, Taylor, and placed on the service list maintained by provided by the project. Therefore, if a Washington Counties, Florida; the Secretary of the Commission and person has comments on community Washington Parish, Louisiana; and will receive copies of all documents and landowner impacts from this Perry County, Mississippi), and (d) filed by the applicant and by all other proposal, it is important either to file associated mainline valves, piping, and parties. A party must submit 14 copies comments or to intervene as early in the appurtenant pipeline facilities; and (ii) of filings made with the Commission process as possible. Other Expansions, which include (a) and must mail a copy to the applicant If the Commission decides to set the approximately 1.3 miles of 6-inch and to every other party in the application for a formal hearing before diameter pipeline lateral loop in Lake proceeding. Only parties to the an Administrative Law Judge, the County, Florida; (b) approximately 1.4 proceeding can ask for court review of Commission will issue another notice miles of 16-inch lateral loop extension Commission orders in the proceeding. describing that process. At the end of in Brevard County, Florida; and, (c) However, a person does not have to the Commission’s review process, a approximately 5.2 miles of 16-inch intervene in order to have comments final Commission order approving or pipeline lateral in Orange County, considered. The second way to denying a certificate will be issued. Florida from Florida Gas’ existing 26- participate is by filing with the Comments, protests and interventions inch pipeline (Stanton Lateral), and (d) Secretary of the Commission, as soon as may be filed electronically via the associated valves and appurtenant possible, an original and two copies of Internet in lieu of paper. See, 18 CFR pipeline facilities. Florida Gas will comments in support of or in opposition 385.2001(a)(1)(iii) and the instructions construct one new meter station for to this project. The Commission will on the Commission’s web site under the service to OUC from the Stanton Lateral consider these comments in ‘‘e-Filing’’ link. pursuant to its Blanket Certificate issued determining the appropriate action to be in Docket No. CP82–553, 21 FERC ¶ taken, but the filing of a comment alone Linwood A. Watson, Jr., 62,235. will not serve to make the filer a party Acting Secretary. Florida Gas requests that the to the proceeding. The Commission’s [FR Doc. 01–29619 Filed 11–28–01; 8:45 am] Commission issue a preliminary rules require that persons filing BILLING CODE 6717–01–P determination on non-environmental comments in opposition to the project issues by March 1, 2002 and a final provide copies of their protests only to determination on all certificate issues the party or parties directly involved in DEPARTMENT OF ENERGY on or before September 1, 2002 so: (1) the protest. construction can begin by December 1, Persons who wish to comment only Federal Energy Regulatory 2002; (2) deliveries can commence to on the environmental review of this Commission Shippers by June 1, 2003; and, (3) the project should submit an original and [Docket No. EC02–28–000] remaining facilities, including those two copies of their comments to the essential to OUC’s Plant Stanton’s Secretary of the Commission. International Transmission Company; commercial operation, can be Environmental commenters will be Notice of Filing operational by November 1, 2003. The placed on the Commission’s cost of the facilities is estimated to be environmental mailing list, will receive November 23, 2001. approximately $105.4 million. copies of the environmental documents, Take notice that on November 21, Incremental firm transportation service and will be notified of meetings 2001, International transmission of up to 121,000 Dth/d summer peak associated with the Commission’s Company filed an Application for volumes (85,356 Dth/d average annual) environmental review process. Authorization to Transfer Joint Open will be rendered to the Shippers Environmental commenters will not be Access transmission tariff and Related pursuant to Florida Gas’ Rate Schedule required to serve copies of filed Agreements pursuant to Section 203 of FTS–2. The Shippers will pay documents on all other parties. the Federal Power Act. incremental rates to compensate Florida However, the non-party commenters Since the Midwest ISO is scheduled Gas for the costs of the Phase VI will not receive copies of all documents to begin providing transmission service Expansion Project facilities. filed by other parties or issued by the on January 1, 2002, International Questions regarding this filing should Commission (except for the mailing of Transmission respectfully requested be directed to Mr. Stephen T. Veatch, environmental documents issued by the that the Commission grant a shortened Director of Certificates and Regulatory Commission) and will not have the right (fourteen (14) day) notice period in this Reporting, Florida Gas Transmission to seek court review of the docket. Co., 1400 Smith Street, Suite 3997, P.O. Commission’s final order. Any person desiring to be heard or to Box 1188, Houston, TX 77251–1188 or The Commission may issue a protest such filing should file a motion call (713) 853–6549. preliminary determination on non- to intervene or protest with the Federal There are two ways to become environmental issues prior to the Energy Regulatory Commission, 888 involved in the Commission’s review of completion of its review of the First Street, NE, Washington, DC 20426, this project. First, any person wishing to environmental aspects of the project. in accordance with Rules 211 and 214 obtain legal status by becoming a party This preliminary determination of the Commission’s Rules of Practice to the proceedings for this project typically considers such issues as the and Procedure (18 CFR 385.211 and should, on or before December 13, 2001, need for the project and its economic 385.214). All such motions and protests file with the Federal Energy Regulatory effect on existing customers of the should be filed on or before December Commission, 888 First Street, NE, applicant, on other pipelines in the area, 5, 2001. Protests will be considered by Washington, DC 20426, a motion to and on landowners and communities. the Commission to determine the intervene in accordance with the For example, the Commission considers appropriate action to be taken, but will requirements of the Commission’s Rules the extent to which the applicant may not serve to make protestants parties to of Practice and Procedure (18 CFR need to exercise eminent domain to the proceedings. Any person wishing to 385.214 or 385.211) and the Regulations obtain rights-of-way for the proposed become a party must file a motion to under the NGA (18 CFR 157.10). A project and balances that against the intervene. Copies of this filing are on
VerDate 11
file with the Commission and are service agreement for Firm Point-to- Services, Inc. (SCS), as agent for available for public inspection. This Point Transmission Service with Alabama Power Company, Georgia filing may also be viewed on the Southwestern Public Service Marketing. Power Company, Gulf Power Company, Commission’s web site at http:// A copy of the withdrawal filing was Mississippi Power Company and www.ferc.gov using the ‘‘RIMS’’ link, served on Southwestern Public Service Savannah Electric and Power Company select ‘‘Docket#’’ and follow the Marketing as well as all parties included (collectively, Southern Companies), instructions (call 202–208–2222 for on the Commission’s official service list tendered for filing rate schedules assistance). Comments, protests and established in this proceeding. compliant with Commission Order No. interventions may be filed electronically Comment date: December 7, 2001, in 614 for certain Southern Companies via the internet in lieu of paper. See, 18 accordance with Standard Paragraph E Rate Schedules. These Rate Schedules CFR 385.2001(a)(1)(iii) and the at the end of this notice. are Mississippi Power Company First instructions on the Commission’s web Revised Rate Schedule FERC No. 145 3. Calpine Construction Finance site under the ‘‘e-filing’’ link. and Southern Operating Companies Company, L.P. First Revised Rate Schedule FERC No. Linwood A. Watson, Jr., [Docket No. ER02–166–000] 78. Acting Secretary. Take notice that on November 16, Comment date: December 7, 2001, in [FR Doc. 01–29618 Filed 11–28–01; 8:45 am] 2001, Calpine Construction Finance accordance with Standard Paragraph E BILLING CODE 6717–01–P Company, L.P. (CCFC) filed with the at the end of this notice. Federal Energy Regulatory Commission 7. Coral Canada US, Inc. (Commission) a Notice of Withdrawal of DEPARTMENT OF ENERGY the amended Direct Power Transaction [Docket No. ER01–3017–001] Confirmation under its market-based Take notice that on November 16, Federal Energy Regulatory 2001, Coral Canada US, Inc. (Seller) Commission rate schedule in the above-referenced docket number, filed on October 24, filed with the Federal Energy Regulatory [Docket No. EG02–30–000, et al.] 2001. Commission (Commission) an Comment date: December 7, 2001, in amendment to its petition filed on Blythe Energy, LLC, et al.; Electric accordance with Standard Paragraph E September 5, 2001, which requested the Rate and Corporate Regulation Filings at the end of this notice. Commission for an order: (1) Accepting Seller’s proposed FERC rate schedule November 20, 2001. 4. Carolina Power & Light Company for market-based rates; (2) granting Take notice that the following filings [Docket No. ER01–2301–002] waiver of certain requirements under have been made with the Commission: subparts B and C of part 35 of the Take notice that on November 16, regulations, and (3) granting the blanket 1. Blythe Energy, LLC 2001, Carolina Power & Light Company approvals normally accorded sellers (CP&L) submitted its compliance filing [Docket No. EG02–30–000] permitted to sell at market-based rates. Take notice that on November 14, in the above-captioned proceeding in Comment date: December 7, 2001, in 2001, Blythe Energy, LLC (the accordance with Ordering Paragraph C accordance with Standard Paragraph E Applicant), with its principal office at of Carolina Power & Light Company, 97 at the end of this notice. The Grace Building, 41st Floor, 1114 FERC ¶ 61,063 (October 19, 2001). Avenue of the Americas, New York, NY Copies of the filing were served upon 8. Inter-Power/AhlCon Partners, L.P. 10036–7790, filed with the Federal the official service list in this [Docket No. QF87–632–006] Energy Regulatory Commission proceeding. Take notice that on November 13, (Commission) an application for Comment date: December 7, 2001, in 2001, Inter-Power/AhlCon Partners, determination of exempt wholesale accordance with Standard Paragraph E L.P., 2591 Wexford-Bayne Road, Suite generator status pursuant to part 365 of at the end of this notice. 204, Sewickley, PA 15143 submitted for the Commission’s regulations. 5. Carolina Power & Light Company filing an application for Commission Applicant states that it is a Delaware recertification as a qualifying small [Docket No. ER01–2301–002] limited liability company engaged power production facility pursuant to directly and exclusively in the business Take notice that on November 16, section 292.207(b) of the Commission’s of developing and operating an 2001, Carolina Power & Light Company regulations. No determination has been approximately 520 MW generating (CP&L) submitted its compliance filing made that the submittal constitutes a facility located in Blythe, California. in the above-captioned proceeding in complete filing. Electric energy produced by the facility accordance with Ordering Paragraph C Comment date: December 13, 2001, in will be sold at wholesale or at retail of Carolina Power & Light Company, 97 accordance with Standard Paragraph E exclusively to foreign consumers. FERC ¶ 61,063 (October 19, 2001). at the end of this notice. Comment date: December 11, 2001, in Copies of the filing were served upon accordance with Standard Paragraph E the official service list in this Standard Paragraph at the end of this notice. The proceeding. E. Any person desiring to be heard or Commission will limit its consideration Comment date: December 7, 2001, in to protest such filing should file a of comments to those that concern the accordance with Standard Paragraph E motion to intervene or protest with the adequacy or accuracy of the application. at the end of this notice. Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 2. Southwest Power Pool, Inc. 6. Southern Company Services, Inc. 20426, in accordance with rules 211 and [Docket No. ER02–57–000] [Docket No. ER01–602–012] 214 of the Commission’s rules of Take notice that on November 16, Take notice that on November 16, practice and procedure (18 CFR 385.211 2001, Southwest Power Pool, Inc. (SPP) 2001, in compliance with the Federal and 385.214). All such motions or submitted a notice of withdrawal of Energy Regulatory Commission protests should be filed on or before the filing with the Federal Energy (Commission) letter Order dated comment date. Protests will be Regulatory Commission (Commission) a October 17, 2001 Southern Company considered by the Commission in
VerDate 11
determining the appropriate action to be Independent System Operator, Inc. Comment date: December 7, 2001, in taken, but will not serve to make pursuant to section 203 of the Federal accordance with Standard Paragraph E protestants parties to the proceeding. Power Act and section 33 of the at the end of this notice. Any person wishing to become a party Commission’s regulations. The specified 5. International Transmission Company must file a motion to intervene. Copies facilities were omitted from UtiliCorp’s of this filing are on file with the August 20, 2001 application in Docket [Docket No. ER02–351–000] Commission and are available for public No. EC01–142–000. Take notice that on November 16, inspection. This filing may also be Comment date: December 5, 2001, in 2001, International Transmission viewed on the web at http:// accordance with Standard Paragraph E Company (ITC) tendered for filing with www.ferc.gov using the ‘‘RIMS’’ link, at the end of this notice. the Federal Energy Regulatory select ‘‘Docket #’’ and follow the 3. Mirant Zeeland, LLC Commission (Commission) the instructions (call 202–208–2222 for Generator Interconnection and assistance). Comments, protests and [Docket No. EG02–31–000] Operating Agreement between ITC and interventions may be filed electronically Take notice that on November 16, DTE East China LLC (the Agreement), as via the Internet in lieu of paper. See, 18 2001, Mirant Zeeland, LLC tendered for a service agreement under ITC’s Open CFR 385.2001(a)(1)(iii) and the filing with the Federal Energy Access Transmission Tariff (FERC instructions on the Commission’s web Regulatory Commission (Commission) Electric Tariff, Original Volume No. 1) site under the ‘‘e-Filing’’ link. an application for determination of and is designated as Service Agreement Linwood A. Watson, Jr., exempt wholesale generator status No. 130. The Agreement provides the pursuant to part 365 of the general terms and conditions for the Acting Secretary. Commission’s regulations. interconnection and parallel operation [FR Doc. 01–29616 Filed 11–28–01; 8:45 am] Mirant Zeeland is a Delaware limited of East China’s electric generating BILLING CODE 6717–01–P liability company that intends to facility located in East China township, construct, own, and operate a 568 MW Michigan. The Agreement shall continue from the effective date through DEPARTMENT OF ENERGY generation facility at a site in Zeeland, Michigan. Mirant Zeeland is engaged the date on which the Facility Federal Energy Regulatory directly and exclusively in the business permanently ceases commercial Commission of owning or operating, or both owning operations unless terminated earlier as and operating, all or part of one or more permitted and provided for under the [Docket No. EC02–22–000, et al.] eligible facilities and selling electric Agreement. Comment date: December 7, 2001, in UtiliCorp United Inc., et al.; Electric energy at wholesale. accordance with Standard Paragraph E Rate and Corporate Regulation Filings Comment date: December 12, 2001, in accordance with Standard Paragraph E at the end of this notice. November 21, 2001. at the end of this notice. The 6. Southern Company Services, Inc. Take notice that the following filings Commission will limit its consideration have been made with the Commission: of comments to those that concern the [Docket No. ER02–352–000] adequacy or accuracy of the application. Take notice that on November 16, 1. UtiliCorp United Inc. 2001, Southern Company Services, Inc., 4. San Diego Gas & Electric Company [Docket No. EC02–22–000] as agent for Georgia Power Company (Complainant, v. Sellers of Energy and (Georgia Power), tendered for filing the Take notice that on November 15, Ancillary and Services Into Markets Interconnection Agreement between 2001, UtiliCorp United Inc. filed with Operated By the California Georgia Power and Southern Power the Federal Energy Regulatory Independent System Operator and the Company (Southern Power) for Goat Commission (Commission) a California Power Exchange, Rock CC Unit 2 (the Agreement), as a supplement to its application for Respondents, et al.) Commission approval pursuant to service agreement under Southern section 203 of the Federal Power Act [Docket Nos. EL00–95–051 and EL00–98– Operating Companies’ Open Access and section 33 of the Commission’s 045] transmission tariff (FERC Electric Tariff, regulations for authorization to Take notice that on November 7, Fourth Revised Volume No. 5) and is reacquire the approximately 10 percent 2001, and November 8, 2001 Errata, the designated as Service Agreement No. of the shares of Aquila, Inc. held by the California Independent System Operator 417. The Agreement provides the public. Corporation (ISO) submitted a filing general terms and conditions for the Comment date: December 4, 2001, in with the Federal Energy Regulatory interconnection and parallel operation accordance with Standard Paragraph E Commission (Commission) to comply of Southern Power’s electric generating at the end of this notice. with the Commission’s October 23, 2001 facility located in Lee County, Alabama. ‘‘Order Accepting in Part and Rejecting The Agreement terminates forty (40) 2. UtiliCorp United Inc. in Part Portion of Compliance Filing years from the effective date unless [Docket No. EC02–24–000] Related to Outage Coordination,’’ San terminated earlier by mutual written Take notice that on November 14, Diego Gas & Electric Company, et al., 97 agreement. 2001, as supplemented on November 15, FERC ¶61,066. Comment date: December 7, 2001, in 2001, UtiliCorp United Inc. (UtiliCorp) The ISO states that it has served accordance with Standard Paragraph E filed with the Federal Energy Regulatory copies of this filing upon the Public at the end of this notice. Commission (Commission) an Utilities Commission of the State of 7. Commonwealth Edison Company application for approval of the transfer California, all parties of the official of operational control over certain service lists maintained by the Secretary [Docket No. ER02–353–000] specified transmission facilities of its for Docket Nos. EL00–95–000, et al., and Take notice that on November 16, Missouri Public Service, St. Joseph all entities that have entered into 2001 Commonwealth Edison Company Light and Power and WestPlains Participating Generator Agreements (ComEd) submitted for filing two Form Energy-Kansas divisions to the Midwest with the ISO. of Service Agreements for Firm Point-
VerDate 11
To-Point Transmission Service between a copy of this filing upon the New York intended to provide for the continued ComEd and Alliant Energy (Alliant), one State Public Service Commission and interconnection of the PG&E and SVP Form of Service Agreement for Firm Kaleida. electric systems. Point-To-Point Transmission Service Comment date: December 7, 2001, in Copies of this filing have been served between ComEd and Dynegy Power accordance with Standard Paragraph E upon SVP, the California Independent Marketing, Inc. (Dynegy), and five Form at the end of this notice. System Operator Corporation and the of Service Agreements for Firm Point- California Public Utilities Commission. 10. New York State Electric & Gas To-Point Transmission Service between Comment date: December 7, 2001, in Corporation ComEd and Exelon Generation accordance with Standard Paragraph E Company, LLC (Exelon) under the terms [Docket No. ER02–356–000] at the end of this notice. of ComEd’s Open Access Transmission Take notice that on November 16, 13. New York State Electric & Gas Tariff (OATT). Copies of this filing were 2001, New York State Electric & Gas Corporation served on Alliant, Dynegy and Exelon. Corporation (NYSEG) tendered for filing ComEd requests an effective date of pursuant to Section 35.13 of the [Docket No. ER02–359–000] January 1, 2002, for the Service Commission’s Regulations, 18 CFR Take notice that on November 16, Agreements with Alliant, Dynegy and 35.13 (2000), a fully executed service 2001, New York State Electric & Gas Exelon, and accordingly seeks waiver of agreement (Service Agreement) between Corporation (NYSEG) tendered for filing the Commission’s notice requirements. NYSEG and Pro-Energy Development, with the Federal Energy Regulatory Comment date: December 7, 2001, in LLC d/b/a Pro-Energy Resources (Pro- Commission (Commission) pursuant to accordance with Standard Paragraph E Energy). Under the Service Agreement, Section 35.13 of the Commission’s at the end of this notice. NYSEG may provide capacity and/or Regulations, 18 CFR 35.13 (2000), a energy to Pro-Energy in accordance with fully executed service agreement 8. California Independent System (Service Agreement) between NYSEG Operator Corporation NYSEG’s FERC Electric Tariff, Original Volume No. 3. and Wegman’s Food Markets, Inc. [Docket No. ER02–354–000] NYSEG has requested wavier of the (Wegman). Under the Service Agreement, NYSEG may provide Take notice that on November 16, notice requirements that the Service capacity and/or energy to Wegmen in 2001, the California Independent Agreement becomes effective as of accordance with NYSEG’s FERC Electric System Operator Corporation (ISO) September 28, 2001. NYSEG has served a copy of this filing upon the New York Tariff, Original Volume No. 3. tendered for filing First Revised Service NYSEG has requested wavier of the State Public Service Commission and Agreement No. 410 Under ISO Rate notice requirements that the Service Pro-Energy. Schedule No. 1, which is a Participating Agreement becomes effective as of Comment date: December 7, 2001, in Generator Agreement (PGA) between the September 28, 2001. NYSEG has served accordance with Standard Paragraph E ISO and County Sanitation District No. a copy of this filing upon the New York at the end of this notice. 2 of Los Angeles County. The ISO has State Public Service Commission and revised the PGA to update the list of 11. Cleco Power LLC Wegmen. generating units listed in Schedule 1 of Comment date: December 7, 2001, in the PGA. The ISO requests that the [Docket No. ER02–357–000] accordance with Standard Paragraph E agreement be made effective as of Take notice that on November 16, at the end of this notice. August 22, 2001. 2001, Cleco Power LLC (Cleco) filed The ISO states that this filing has been with the Federal Energy Regulatory Standard Paragraph served on County Sanitation District No. Commission (Commission) a Service E. Any person desiring to be heard or 2 of Los Angeles County and the Agreement for Sale of Power and Energy to protest such filing should file a California Public Utilities Commission. with the City of Natchitoches, Louisiana motion to intervene or protest with the Comment date: December 7, 2001, in as a long-term service agreement under Federal Energy Regulatory Commission, accordance with Standard Paragraph E Cleco’s market based rates tariff. The 888 First Street, NE, Washington, DC at the end of this notice. Service Agreement is designated as 20426, in accordance with Rules 211 Cleco Power LLC Service Agreement 9. New York State Electric & Gas and 214 of the Commission’s Rules of No. 26 to FERC Electric Tariff, Original Corporation Practice and Procedure (18 CFR 385.211 Volume No. 2. and 385.214). All such motions or [Docket No. ER02–355–000] Comment date: December 7, 2001, in protests should be filed on or before the Take notice that on November 16, accordance with Standard Paragraph E comment date. Protests will be 2001, New York State Electric & Gas at the end of this notice. considered by the Commission in Corporation (NYSEG) tendered for filing 12. Pacific Gas and Electric Company determining the appropriate action to be with the Federal Energy Regulatory taken, but will not serve to make Commission (Commission) pursuant to [Docket No. ER02–358–000] protestants parties to the proceeding. Section 35.13 of the Commission’s Take notice that on November 16, Any person wishing to become a party Regulations, 18 CFR 35.13 (2000), a 2001, Pacific Gas and Electric Company must file a motion to intervene. Copies fully executed service agreement (PG&E) tendered for filing with the of this filing are on file with the (Service Agreement) between NYSEG Federal Energy Regulatory Commission Commission and are available for public and Kaleida Health (Kaleida). Under the (Commission) a Notice of Termination inspection. This filing may also be Service Agreement, NYSEG may of the 1983 Interconnection Agreement viewed on the web at http:// provide capacity and/or energy to in between PG&E and Silicon Valley Power www.ferc.gov using the ‘‘RIMS’’ link, accordance with NYSEG’s FERC Electric (SVP) on file with the Commission as select ‘‘Docket #’’ and follow the Tariff, Original Volume No. 3. First Revised PG&E Rate Schedule FERC instructions (call 202–208–2222 for NYSEG has requested wavier of the No. 85 and a proposed Interconnection assistance). Comments, protests and notice requirements that the Service Agreement (IA) between PG&E and SVP. interventions may be filed electronically Agreement becomes effective as of The IA supersedes the 1983 via the Internet in lieu of paper. See, 18 September 26, 2001. NYSEG has served Interconnection Agreement and is CFR 385.2001(a)(1)(iii) and the
VerDate 11
instructions on the Commission’s web by telephone at (202) 260–1826, or by e- pursuant to the minimum monitoring site under the ‘‘e-Filing’’ link. mail at [email protected]. frequency and duration at 40 CFR 430.02, to comply with applicable Linwood A. Watson, Jr., SUPPLEMENTARY INFORMATION: Title: chloroform effluent limitations and Acting Secretary. Voluntary Certification in Lieu of Chloroform Minimum Monitoring standards. [FR Doc. 01–29617 Filed 11–28–01; 8:45 am] Requirements for Direct and Indirect All data submitted by mills as part of BILLING CODE 6717–01–P Discharging Mills in the Bleached the initial compliance demonstration Papergrade Kraft and Soda Subcategory and claimed as confidential business of the Pulp, Paper, and Paperboard information (CBI) would be maintained ENVIRONMENTAL PROTECTION Point Source Category (EPA ICR No. pursuant to 40 CFR part 2 when EPA is AGENCY 2015.01). This is a new collection. the permitting authority, and pursuant Abstract: The Environmental to regulations governing such [FRL–7110–3] Protection Agency (EPA) imposed information when States are the minimum monitoring requirements on permitting authorities. Agency Information Collection bleached papergrade kraft and soda An agency may not conduct or Activities: Submission for OMB (subpart B) mills under 40 CFR part 430 sponsor, and a person is not required to Review; Comment Request; Voluntary as part of the final Cluster Rules respond to, a collection of information Certification in Lieu of Chloroform promulgated on April 15, 1998. See 63 unless it displays a currently valid OMB Minimum Monitoring Requirements for FR 18504. These provisions require control number. The OMB control Direct and Indirect Discharging Mills in direct and indirect discharging subpart numbers for EPA’s regulations are listed the Bleached Papergrade Kraft and B mills to monitor their effluent for in 40 CFR part 9 and 48 CFR chapter 15. Soda Subcategory of the Pulp, Paper, certain pollutants, including The Federal Register document and Paperboard Point Source Category chloroform, at specified frequencies. See required under 5 CFR 1320.8(d), soliciting comments on this collection AGENCY: Environmental Protection 40 CFR 430.02. EPA is considering Agency (EPA). promulgating an amendment to the of information was published on March Cluster Rules to allow direct and 19, 2001 (66 FR 15424–15427). EPA ACTION: Notice. indirect discharging subpart B mills, for received one comment, which is SUMMARY: In compliance with the a particular fiber line, to demonstrate addressed in the ICR. Paperwork Reduction Act (44 U.S.C. compliance with applicable chloroform Burden Statement: The annual public 3501 et seq.), this document announces limitations and standards under 40 CFR reporting and recordkeeping burden for that the following Information part 430 in lieu of the minimum this voluntary collection of information Collection Request (ICR) has been monitoring requirements specified in 40 is estimated to average six hours per forwarded to the Office of Management CFR 430.02 by voluntarily certifying response. Burden means the total time, and Budget (OMB) for review and two sets of circumstances. EPA effort, or financial resources expended approval: Voluntary Certification in proposed that amendment on April 15, by persons to generate, maintain, retain, Lieu of Chloroform Minimum 1998. See 61 FR 18796. First, the mill or disclose or provide information to or Monitoring Requirements for Direct and would need to certify that the fiber for a Federal agency. This includes the Indirect Discharging Mills in the line(s) in question is/are not using time needed to review instructions; Bleached Papergrade Kraft and Soda elemental chlorine or hypochlorite as develop, acquire, install, and utilize Subcategory of the Pulp, Paper, and bleaching agents. Second, the mill technology and systems for the purposes Paperboard Point Source Category, EPA would need to certify that the fiber of collecting, validating, and verifying ICR No. 2015.01. The ICR describes the line(s) in question maintain(s) certain information, processing and nature of the information collection and process and operating conditions that maintaining information, and disclosing its expected burden and cost. the facility has demonstrated achieve and providing information; adjust the existing ways to comply with any DATES: Comments must be submitted on compliance with applicable chloroform previously applicable instructions and or before December 31, 2001. limitations. (The proposed rule would require mills wishing to employ the requirements; train personnel to be able ADDRESSES: Send comments, referencing certification alternative to monitor for to respond to a collection of EPA ICR No. 2015.01 to the following chloroform at the minimum frequency information; search data sources; addresses: Sandy Farmer, U.S. required by 40 CFR 430.02 for at least complete and review the collection of Environmental Protection Agency, two years prior to being eligible to make information; and transmit or otherwise Collection Strategies Division (Mail the certification discussed above.) EPA disclose the information. Code 2822), 1200 Pennsylvania Avenue, is also considering requiring Respondents/Affected Entities: NW., Washington, DC 20460–0001; and participating mills to submit a brief Operations that chemically pulp wood to Office of Information and Regulatory report summarizing the results of the fiber using kraft or soda methods to Affairs, Office of Management Budget initial compliance demonstration period produce bleached papergrade pulp, (OMB), Attention: Desk Officer for EPA, and subsequently submit periodic paperboard, coarse paper, tissue paper, 725 17th Street, NW., Washington, DC certifications confirming that the fine paper, and/or paperboard. 20503. participating fiber line(s) continues to Estimated Number of Respondents: FOR FURTHER INFORMATION CONTACT: For operate within the range of process and 80. a copy of the ICR contact Sandy Farmer operating conditions documented Frequency of Response: not less than at EPA by phone at (202) 260–2740, by during the initial compliance annually for direct dischargers and not email at [email protected], or demonstration period. less than twice annually for indirect download a copy of the ICR off the The burden associated with these dischargers. Internet at http://www.epa.gov/icr and additional voluntary reporting Estimated Total Annual Hour Burden: refer to EPA ICR No. 2015.01. For requirements is expected to be offset by 480 hours. technical information about the a substantial savings in burden and Estimated Total Annualized Cost collection contact Mr. Ahmar Siddiqui costs that would otherwise be incurred, Burden (non-labor costs): $0.
VerDate 11
Send comments on the Agency’s need No. 0959.11. For technical questions section 3004. An agency may not for this information, the accuracy of the about the ICR contact Sara Rasmussen conduct or sponsor, and a person is not provided burden estimates, and any by phone at 703–308–8399, by facsimile required to respond to, a collection of suggested methods for minimizing at (703) 308–8609, by mail at the Office information unless it displays a respondent burden, including through of Solid Waste (5303W), United States currently valid OMB control number. the use of automated collection Environmental Protection Agency, Ariel The OMB control numbers for EPA’s techniques to the addresses listed above. Rios Building, 1200 Pennsylvania regulations are listed in 40 CFR part 9 Please refer to EPA ICR No. 2015.01 in Avenue, NW., Mailcode 5303W, and 48 CFR chapter 15. The Federal any correspondence. Washington, DC 20460 or e-mail at Register document required under 5 Dated: November 20, 2001. [email protected]. CFR 1320.8(d), soliciting comments on Oscar Morales, SUPPLEMENTARY INFORMATION: Title: this collection of information was Director, Collection Strategies Division. Facility Ground-water Monitoring published on June 25, 2001 (66 FR 33579); no comments were received. [FR Doc. 01–29652 Filed 11–28–01; 8:45 am] Requirements, OMB Control Number BILLING CODE 6560–50–P 2050–0033, EPA ICR Number 0959.11, Burden Statement: The annual public expiration date November 30, 2001. reporting and recordkeeping burden for This is a request for extension of a this collection of information is ENVIRONMENTAL PROTECTION currently approved collection. estimated to average118 hours per AGENCY Abstract: This ICR examines the response. Burden means the total time, ground-water monitoring standards for effort, or financial resources expended [FRL–7109–7] permitted and interim status facilities at by persons to generate, maintain, retain, Agency Information Collection 40 CFR parts 264 and 165, as specified. or disclose or provide information to or Activities: Submission for OMB The ground-water monitoring for a Federal agency. This includes the Review; Comment Request; Facility requirements for regulated units follow time needed to review instructions; Ground-water Monitoring a tiered approach whereby releases of develop, acquire, install, and utilize Requirements hazardous contaminants are first technology and systems for the purposes detected (detection monitoring), then of collecting, validating, and verifying AGENCY: Environmental Protection confirmed (compliance monitoring), and information, processing and Agency (EPA). if necessary, are required to be cleaned maintaining information, and disclosing ACTION: Notice. up (corrective action). Each of these and providing information; adjust the tiers requires collection and analysis of existing ways to comply with any SUMMARY: In compliance with the ground-water samples. Owners or previously applicable instructions and Paperwork Reduction Act (44 U.S.C. operators that conduct ground-water requirements; train personnel to be able 3501 et seq.), this document announces monitoring are required to report to respond to a collection of that the following Information information to the oversight agencies on information; search data sources; Collection Request (ICR) has been releases of contaminants and to complete and review the collection of forwarded to the Office of Management maintain records of ground-water information; and transmit or otherwise and Budget (OMB) for review and monitoring data at their facilities. The disclose the information. approval: ‘‘Reporting and goal of the ground-water monitoring Recordkeeping Requirements for Respondents/Affected Entities: program is to prevent and quickly detect Entities that operate surface Facility Ground-water Monitoring releases of hazardous contaminants to Requirements’’: OMB Control Number impoundments, waste piles, land ground-water, and to establish a treatment units, and landfills which 2050–0033, expiration date November program whereby any contamination is 30, 2001. The ICR describes the nature manage hazardous waste regulated expeditiously cleaned up as necessary under RCRA. of the information collection and its to protect human health and expected burden and cost; where environment. Subtitle C of the Resource Estimated Number of Respondents: appropriate, it includes the actual data Conservation and Recovery Act of 1976 824. collection instrument. (RCRA) creates a comprehensive Frequency of Response: Quarterly. DATES: Comments must be submitted on program for the safe management of or before December 31, 2001. Estimated Total Annual Hour Burden: hazardous waste. Section 3004 of RCRA 96,913. ADDRESSES: Send comments, referencing requires owners and operators of EPA ICR No. 0959.11 and OMB Control facilities that treat, store, or dispose of Estimated Total Annualized Capital, No. 2050–0033, to the following hazardous waste to comply with O&M Cost Burden: 16,757,560. addresses: Susan Auby, U.S. standards established by EPA that are to Send comments on the Agency’s need Environmental Protection Agency, protect the environment. Section 3005 for this information, the accuracy of the Collection Strategies Division (Mail provides for implementation of these provided burden estimates, and any Code 2822), 1200 Pennsylvania Avenue, standards under permits issued to suggested methods for minimizing NW., Washington, DC 20460–0001; and owners and operators by EPA or respondent burden, including through to Office of Information and Regulatory authorized States. Section 3005 also the use of automated collection Affairs, Office of Management and allows owners and operators of facilities techniques to the addresses listed above. Budget (OMB), Attention: Desk Officer in existence when the regulations came Please refer to EPA ICR No. 0959.11 and for EPA, 725 17th Street, NW., into effect to comply with applicable OMB Control No. 2050–0033 in any Washington, DC 20503. notice requirements to operate until a correspondence. FOR FURTHER INFORMATION CONTACT: For permit is issued or denied. This Dated: November 20, 2001. a copy of the ICR contact Susan Auby statutory authorization to operate prior at EPA by phone at (202) 260–4901, by to permit determination is commonly Oscar Morales, E-Mail at [email protected] known as ‘‘interim status.’’ Owners and Director, Collection Strategies Division. or download off the Internet at http:// operators of interim status facilities also [FR Doc. 01–29658 Filed 11–28–01; 8:45 am] www.epa.gov/icr and refer to EPA ICR must comply with standards set under BILLING CODE 6560–50–P
VerDate 11
ENVIRONMENTAL PROTECTION No. 1741.03; OMB Control No. 2070– currently valid OMB control number. AGENCY 0145). This is a request for extension of The OMB control numbers for EPA’s an existing approved collection that is regulations are listed in 40 CFR part 9 [FRL–7109–6] currently scheduled to expire on and 48 CFR chapter 15. December 31, 2001. Under 5 CFR Agency Information Collection Burden Statement: The annual public 1320.10(e)(2), the Agency may continue Activities; Correction of Misreported reporting burden for this collection of to conduct or sponsor the collection of Chemical Substances on the Toxic information is estimated to average 1.0 information while the submission is Substances Control Act (TSCA) hours per response. Burden means the pending at OMB. total time, effort or financial resources Chemical Substance Inventory; Abstract: Section 8(b) of the TSCA Submission to OMB expended by persons to generate, requires EPA to compile and keep maintain, retain or disclose or provide AGENCY: Environmental Protection current an Inventory of Chemical information to or for a Federal agency. Agency (EPA). Substances in Commerce, which is a This includes the time needed to review listing of chemical substances ACTION: Notice. instructions; develop, acquire, install manufactured, imported, and processed and utilize technology and systems for SUMMARY: In compliance with the for commercial purposes in the United the purposes of collecting, validating Paperwork Reduction Act (44 U.S.C. States. The purpose of the Inventory is and verifying information, processing 3501 et seq.), this document announces to define, for the purpose of TSCA, what and maintaining information, and that the following Information chemical substances exist in U.S. disclosing and providing information; Collection Request (ICR) has been commerce. Since the Inventory thereby adjust the existing ways to comply with forwarded to the Office of Management performs a regulatory function by any previously applicable instructions and Budget (OMB) for review and distinguishing between existing and requirements; train personnel to be approval: Correction of Misreported chemicals and new chemicals, which able to respond to a collection of Chemical Substances on the Toxic TSCA regulates in different ways, it is information; search data sources; Substances Control Act (TSCA) imperative that the Inventory be complete and review the collection of Chemical Substance Inventory (EPA ICR accurate. information; and transmit or otherwise No. 1741.03; OMB Control No. 2070– However, from time to time, EPA or disclose the information. 0145). The ICR, which is abstracted respondents discover that substances Respondents/Affected Entities: below, describes the nature of the have been incorrectly described by Manufacturers and importers of information collection and its estimated reporting companies. Reported chemical substances, mixtures or cost and burden. The Federal Register substances have been unintentionally categories. document required under 5 CFR misidentified as a result of simple Frequency of Collection: On occasion. typographical errors, the 1320.8(d), soliciting comments on this Estimated No. of Respondents: 200. misidentification of substances, or the collection of information, was published Estimated Total Annual Burden on lack of sufficient technical or analytical on February 12, 2001 (66 FR 9842). EPA Respondents: 200 hours. capabilities to characterize fully the received no comments on this ICR Estimated Total Annual Costs: exact chemical substances. EPA has during the comment period. $16,150. developed guidelines (45 FR 50544, July DATES: Additional comments may be Changes in Burden Estimates: There 29, 1980) under which incorrectly is no change in the estimated burden submitted on or before December 31, described substances listed in the 2001. associated with this ICR as compared Inventory can be corrected. The with the ICR most recently approved by ADDRESSES: Send comments, referencing correction mechanism ensures the OMB. EPA ICR No. 1741.03 and OMB Control accuracy of the Inventory without According to the procedures No. 2070–0145, to the following imposing an unreasonable burden on prescribed in 5 CFR 1320.12, EPA has addresses: Sandy Farmer, U.S. the chemical industry. Without the submitted this ICR to OMB for review Environmental Protection Agency, Inventory correction mechanism, a and approval. Any comments related to Collection Strategies Division (Mail company that submitted incorrect the renewal of this ICR should be Code: 2822), 1200 Pennsylvania information would have to file a submitted within 30 days of this notice, premanufacture notification (PMN) Avenue, NW., Washington, DC 20460; as described above. and to: Office of Information and under TSCA section 5 to place the Regulatory Affairs, Office of correct chemical substance on the Dated: November 19, 2001. Management and Budget (OMB), Inventory whenever the previously Oscar Morales, Attention: Desk Officer for EPA, 725 reported substance is found to be Director, Collection Strategies Division. 17th Street, NW., Washington, DC misidentified. This would impose a [FR Doc. 01–29659 Filed 11–28–01; 8:45 am] 20503. much greater burden on both EPA and BILLING CODE 6560–50–P the submitter than the existing FOR FURTHER INFORMATION CONTACT: correction mechanism. Sandy Farmer at EPA by phone on (202) Responses to the collection of ENVIRONMENTAL PROTECTION 260–2740, by e-mail: information are voluntary. Respondents AGENCY ‘‘[email protected],’’ or may claim all or part of a notice download off the Internet at http:// confidential. EPA will disclose [FRL–7109–8] www.epa.gov/icr/icr.htm and refer to information that is covered by a claim Agency Information Collection EPA ICR No. 1741.03 and/or OMB of confidentiality only to the extent Control No. 2070–0145. Activities; Submission for OMB permitted by, and in accordance with, Review; Comment Request; SUPPLEMENTARY INFORMATION: the procedures in TSCA section 14 and Assessment of EPA Compliance Title: Correction of Misreported 40 CFR part 2. An agency may not Assistance Projects Chemical Substances on the Toxic conduct or sponsor, and a person is not Substances Control Act (TSCA) required to respond to, a collection of AGENCY: Environmental Protection Chemical Substance Inventory (EPA ICR information unless it displays a Agency (EPA).
VerDate 11
ACTION: Notice. the quality and delivery of compliance Please refer to EPA ICR No. 1860.02 and assistance tools and services. This ICR OMB Control No. 2020–0015 in any SUMMARY: In compliance with the will only provide anecdotal data for the correspondence. Paperwork Reduction Act (44 U.S.C. purpose of informing EPA of the Dated: November 20, 2001. 3501 et seq.), this notice announces that effectiveness of compliance assistance Oscar Morales, the following Information Collection tools, and customer satisfaction with Request (ICR) has been forwarded to the those tools. All assessments undertaken Director, Collection Strategies Division. Office of Management and Budget under this ICR will adhere to specific [FR Doc. 01–29660 Filed 11–28–01; 8:45 am] (OMB) for approval: Assessment of conditions to ensure that data is BILLING CODE 6560–50–P Compliance Assistance Projects, OMB collected and used properly and Control Number 2020–0015, expiration efficiently. The information collection is date December 31, 2001. The ICR voluntary, and will be limited to non- ENVIRONMENTAL PROTECTION describes the nature of the information sensitive data concerning the quality of AGENCY collection and its expected burden and compliance assistance activities. An [FRL–7109–9] cost; where appropriate, it includes the agency may not conduct or sponsor, and actual data collection instruction. a person is not required to respond to, Agency Information Collection DATES: Comments must be submitted on a collection of information unless it Activities: Submission for OMB or before December 31, 2001. displays a currently valid OMB control Review; Comment Request; Minimum ADDRESSES: Send comments, referencing number. The OMB control numbers for Monitoring Requirements for Direct EPA ICR No. 1860.02 and OMB Control EPA’s regulations are listed in 40 CFR and Indirect Discharging Mills in the Number 2020–0015, to the following part 9 and 48 CFR chapter 15. The Bleached Papergrade Kraft and Soda addresses: Susan Auby, U.S. Federal Register document required Subcategory and the Papergrade Environmental Protection Agency, under 5 CFR 1320.8(d), soliciting Sulfite Subcategory of the Pulp, Paper, Collection Strategies Division (Mail comments on this collection of and Paperboard Point Source Category Code 2822), 1200 Pennsylvania Avenue, information was published on August AGENCY: NW., Washington, DC 20460–0001; and 31, 2001 (66 FR 45982); no comments Environmental Protection to the Office of Information and were received. Agency (EPA). Regulatory Affairs, Office of Burden Statement: The annual public ACTION: Notice. Management and Budget (OMB), reporting and recordkeeping burden for SUMMARY: In compliance with the Attention: Desk Officer for EPA, 725 this collection of information is Paperwork Reduction Act (44 U.S.C. 17th Street, NW., Washington, DC estimated to average 9 minutes per 3501 et seq.), this notice announces that 20503. response. Burden means the total time, effort, or financial resources expended the following Information Collection FOR FURTHER INFORMATION CONTACT: For by persons to generate, maintain, retain, Request (ICR) has been forwarded to the a copy of the ICR contact Susan Auby or disclose or provide information to or Office of Management and Budget at EPA by phone at (202) 260–4901 or for a Federal agency. This includes the (OMB) for review and approval: by e-mail at [email protected] or time needed to review instructions; Minimum Monitoring Requirements for download off the Internet at http:// develop, acquire, install, and utilize Direct and Indirect Discharging Mills in www.epa..gov/icr and refer to EPA ICR technology and systems for the purposes the Bleached Papergrade Kraft and Soda No. 1860.02. For technical questions of collecting, validating, and verifying Subcategory and the Papergrade Sulfite about the ICR contact Ms. Lynn information, processing and Subcategory of the Pulp, Paper, and Vendinello at (202) 564–7066. maintaining information, and disclosing Paperboard Point Source Category, EPA SUPPLEMENTARY INFORMATION: and providing information; adjust the ICR No. 1878.01. The ICR describes the Title: Assessment of EPA Compliance existing ways to comply with any nature of the information collection and Assistance Projects, OMB Control No. previously applicable instructions and its expected burden and cost. 2020–0015, EPA ICR Number 1860.02, requirements; train personnel to be able DATES: Comments must be submitted on expiration date December 31, 2001. to respond to a collection of or before December 31, 2001. Abstract: This information collection information; search data sources; determines how well EPA compliance ADDRESSES: Send comments, referencing complete and review the collection of assistance tools and services meet EPA ICR No. 1878.01 to the following information; and transmit or otherwise customers needs and to assess the addresses: Sandy Farmer, U.S. disclose the information. Environmental Protection Agency, effectiveness of the assistance activities. Respondents/Affected Entities: This will be a voluntary collection of Collection Strategies Division (Mail Business or other for profit, Federal Code 2822), 1200 Pennsylvania Avenue, information to gauge customer Government, or State, Local, and Tribal satisfaction with the compliance NW., Washington, DC 20460–0001; and Government. to Office of Information and Regulatory assistance projects, measure any Estimated Number of Respondents: resulting changes in knowledge and/or Affairs, Office of Management Budget 25,676. (OMB), Attention: Desk Officer for EPA, behavior, and evaluate any Frequency of Response: One time. environmental and human health 725 17th Street, NW., Washington, DC Estimated Total Annual Hour Burden: 20503. impacts. EPA proposes to use 3,956. assessment surveys to provide the Estimated Total Annualized Capital, FOR FURTHER INFORMATION CONTACT: agency with feedback on the compliance O&M Cost Burden: 0. Sandy Farmer at EPA by phone at (202) assistance documents, onsite visits, Send comments on the Agency’s need 260–2740, by email at telephone assistance, web sites, and for this information, the accuracy of the [email protected], or download a compliance assistance seminars and provided burden estimates, and any copy of the ICR off the Internet at workshops delivered by headquarters suggested methods for minimizing http://www.epa.gov/icr and refer to EPA and regional compliance assistance respondent burden, including through ICR No. 1878.01. For technical programs to the regulated community. the use of automated collection information about the collection contact This feedback will help EPA improve techniques to the addresses listed above. Mr. Ahmar Siddiqui by telephone at
VerDate 11
(202) 260–1826, or by e-mail at of collecting, validating, and verifying Guidelines for Carcinogen Risk [email protected]. information, processing and Assessment in 2002. The Agency is SUPPLEMENTARY INFORMATION: maintaining information, and disclosing soliciting additional scientific Title: Minimum Monitoring and providing information; adjust the information and comments that could Requirements for Direct and Indirect existing ways to comply with any assist us in completing the final Discharging Mills in the Bleached previously applicable instructions and Guidelines. In 1996, EPA published for Papergrade Kraft and Soda Subcategory requirements; train personnel to be able public comment proposed revisions to and the Papergrade Sulfite Subcategory to respond to a collection of EPA’s 1986 Guidelines for Carcinogen of the Pulp, Paper, and Paperboard information; search data sources; Risk Assessment. Since the 1996 Point Source Category (EPA ICR No. complete and review the collection of proposal, we have benefitted from 1878.01). This is a new collection. information; and transmit or otherwise extensive public comment and scientific Abstract: The Environmental disclose the information. peer review, including three reviews by Protection Agency (EPA) imposed Respondents/Affected Entities: EPA’s Science Advisory Board (SAB). minimum monitoring requirements on Entities potentially affected by this EPA scientists are currently addressing bleached papergrade kraft and soda action are those operations that these comments under the auspices of (subpart B) and papergrade sulfite chemically pulp wood fiber using kraft the Agency’s Science Policy Council. (subpart E) mills under 40 CFR part 430 or soda methods to produce bleached The draft revised Guidelines from as part of the effluent limitations papergrade pulp, paperboard, coarse which the Agency will proceed to make guidelines and standards promulgated paper, tissue paper, fine paper, and/or its final revisions is that provided to the on April 15, 1998 (63 FR 18504). With paperboard; and those operations that SAB in July 1999 (with minor approval of this ICR, the permitting and chemically pulp wood fiber using formatting changes). Even though EPA pretreatment control authority must papergrade sulfite methods to produce has received considerable input from require applicable facilities subject to pulp and/or paper. the public during the 1996 public subparts B or E to monitor their effluent Estimated Number of Respondents: comment period and thereafter, we are for adsorbable organic halides (AOX), 94. providing an additional opportunity for 2,3,7,8-tetrachlorodibenzo-p-dioxin Frequency of Response: Not less than the public to provide (1) information or (TCDD), 2,3,7,8-tetrachlorodibenzofuran annually for direct dischargers and not comment on experience gained in (TCDF), chloroform, and 12 chlorinated less than twice annually for indirect applying the 1996 proposed Guidelines phenolics at specified frequencies. See dischargers. or the 1999 draft revised Guidelines and 40 CFR 430.02. Under 40 CFR Estimated Total Annual Hour Burden: (2) other new information or comment 122.41(e)(4), the discharger must then 36,858 hours. that addresses issues raised during the report these monitoring results to the Estimated Total Annualized Cost public comment period and the SAB permitting or pretreatment control Burden (non-labor costs): $ 19,002,000. reviews. The major issues currently authority using either Discharge Send comments on the Agency’s need being considered by EPA as it proceeds Monitoring Reports (DMRs) or Periodic for this information, the accuracy of the to issue final Guidelines are identified Compliance Reports (PCRs). These provided burden estimates, and any in the Supplementary Information additional minimum monitoring suggested methods for minimizing section of this notice. Information and requirements and corresponding respondent burden, including through comments already submitted to EPA additional reporting requirements are the use of automated collection need not be resubmitted. Until final necessary to demonstrate compliance techniques to the following addresses. Guidelines are issued, the July 1999 with the effluent limitations guidelines Please refer to EPA ICR No. 1878.01 in draft revised Guidelines will serve as and standards promulgated at 40 CFR any correspondence. EPA’s interim guidance to EPA risk part 430, subparts B and E. An agency Dated: November 11, 2001. assessors preparing cancer risk assessments. may not conduct or sponsor, and a Oscar Morales, person is not required to respond to, a Director, Collection Strategies Division. DATES: Information and comments collection of information unless it [FR Doc. 01–29661 Filed 11–28–01; 8:45 am] should be received by January 28, 2002. ADDRESSES displays a currently valid OMB control BILLING CODE 6560–50–P : The draft revised number. The OMB control numbers for Guidelines for Carcinogen Risk EPA’s regulations are listed in 40 CFR Assessment are available via the part 9 and 48 CFR chapter 15. The ENVIRONMENTAL PROTECTION Internet from www.epa.gov/ncea/raf/ Federal Register document required AGENCY cancer.htm. Also available here are under 5 CFR 1320.8(d), soliciting supplementary materials described comments on this collection of [FRL–7110–6] within the Supplementary Information information was published on March Notice of Opportunity To Provide section of this notice. A limited number 19, 2001 (66 FR 15424–15427). EPA Additional Information and Comment of paper copies of the draft revised received no comments. Guidelines are available from the Burden Statement: The annual public AGENCY: Environmental Protection Technical Information Staff (8623D), reporting and recordkeeping burden for Agency (EPA). NCEA–W, U.S. Environmental this collection of information is ACTION: Notice of opportunity to provide Protection Agency, 1200 Pennsylvania estimated to average 392 hours per additional information and comment on Avenue, NW., Washington, DC 20460; response. Burden means the total time, draft revised Guidelines for Carcinogen telephone: 202–564–3261; facsimile: effort, or financial resources expended Risk Assessment (July 1999), availability 202–565–0050. by persons to generate, maintain, retain, of draft revised Guidelines, and You may submit information and or disclose or provide information to or adoption of draft revised Guidelines as comments in paper form or by e-mail. for a Federal agency. This includes the interim guidance. Your comments will be most useful if time needed to review instructions; you include appropriate and detailed develop, acquire, install, and utilize SUMMARY: EPA is today announcing its supporting rationale, data, and analysis. technology and systems for the purposes intent to proceed to issue final revised Send paper copies of information and
VerDate 11
comments (in duplicate if possible) to environment and inform the public (see Supplementary Materials). Issues the Air Docket at the address listed about these procedures. EPA continues include, but are not limited to, the below. You may also submit to revise its risk assessment guidelines nature and use of default assumptions; information and comments via e-mail to and to develop new guidelines as definition and application of hazard ‘‘[email protected].’’ In your experience and scientific understanding descriptors; identification of correspondence, refer to Docket ORD– evolve. Revisions to the Guidelines for carcinogenic mode(s) of action and, in CAN–2001–01. EPA’s Air Docket makes Carcinogen Risk Assessment are particular, consideration of relevancy materials related to this notice available intended to make greater use of the for children (e.g., the potential for for review in Public Docket No. ORD– increasing scientific understanding of differential life stage susceptibility); and CAN–2001–01 at the following address: the mechanisms that underlie the guidance on the use of the margin of U.S. Environmental Protection Agency carcinogenic process. As part of that exposure analysis. (EPA), Air Docket (6102), Room M–1500 process, the Agency published Proposed Supplementary Materials (on the ground floor in Waterside Mall), Guidelines for Carcinogen Risk 401 M Street, SW., Washington, DC Assessment in 1996 (61 FR 17960, Apr. In addition to the July 1999 draft 20460 between 8 a.m. and 5:30 p.m., 23, 1996). revised Guidelines, supplementary The draft revisions to the Guidelines Monday through Friday, except on materials are available at the website have been subject to extensive public government holidays. You can reach the www.epa.gov/ncea/raf/cancer.htm comment and scientific peer review, Air Docket by telephone at (202) 260– relevant to the development of the including three reviews by EPA’s 7548, and by facsimile (202) 260–4400. current draft revised Guidelines. These Science Advisory Board (SAB). The We may charge a reasonable fee for materials include the SAB’s review SAB provided its initial comments to copying docket materials, as provided in letter (September 1997) and EPA’s the Agency in September 1997. In July 40 CFR part 2. (March 1998) response covering the 1999, the SAB provided additional Persons providing information or 1996 proposed Guidelines; the SAB’s comments on major sections of the 1996 comments should not submit personal review letter (July 1999) summarizing information (such as medical data). If proposed Guidelines that had been revised to address prior SAB and public the January 1999 review of selected you submit proprietary information for revised sections of the 1996 Guidelines; our consideration, you should clearly comments. In September 2000, the SAB provided further comments on new the SAB’s review letter (September separate it from non-proprietary 2000) covering EPA’s July 1999 information and comments by labeling discussions focusing on assessing risks to children that are contained in the revisions to address the protection of it Confidential Business Information children; EPA’s January 2001 response and send it directly to the contact draft revised Guidelines (July 1999). This review, while supportive of EPA’s to the latter two SAB reviews; a letter person listed below under For Further (May 1999) from EPA’s Children’s Information instead of the public efforts, did not reach a consensus on several important issues. Such lack of Health Protection Advisory Committee docket. This will help ensure that no which presented issues for one inadvertently places proprietary consensus is not uncommon in peer reviews. Since 1996, EPA has also consideration by the Agency; and a information in the public docket. summary of a workshop co-sponsored Acknowledgments will not be sent. hosted scientific workshops on children’s cancer risks and received by EPA on information needs to address FOR FURTHER INFORMATION CONTACT: Dr. input from EPA’s Children’s Health children’s cancer risk. William P. Wood, Risk Assessment Protection Advisory Committee. Forum (mail code 8601D), U.S. Interim Use of 1999 Draft Revised Environmental Protection Agency, Issues in Completing the Revised Guidelines Guidelines Washington, DC 20460, telephone (202) Effective immediately, the July 1999 564–3361, or send electronic mail EPA has commenced the process to draft revised Guidelines will serve as inquiries to [email protected]. issue final Cancer Guidelines in light of EPA’s interim guidance to EPA risk SUPPLEMENTARY INFORMATION: these reviews and activities, as well as assessors preparing cancer risk public comments received. The July Background assessments. As with all previous 1999 draft revised Guidelines will be versions of the cancer risk assessment In 1983, the National Academy of the basis from which the Agency moves Guidelines, the predominant guidance Sciences (NAS)/National Research forward to issue final Guidelines and provided in the July 1999 draft revised Council (NRC) published its report are being made available today. EPA is Guidelines is for risk assessors to use entitled Risk Assessment in the Federal in the process of evaluating peer review the best science and risk assessment Government: Managing the Process. In and public comments received in order techniques available to them at the time that report, the NRC recommended that to determine what revisions to the draft a risk assessment is conducted. Thus, Federal regulatory agencies establish revised Guidelines may be appropriate. while the July 1999 draft revised ‘‘inference guidelines’’ to promote Additionally, EPA is providing an Guidelines will be available to EPA risk consistency and technical quality in risk opportunity for the public to provide (1) assessors as guidance, any final cancer assessments and to ensure that the risk information or comment on experience risk assessment may take a different assessment process was maintained as a gained in applying the 1996 proposed approach depending on evolving scientific effort separate from risk Guidelines or the July 1999 draft revised science, the facts of a particular case, or management. EPA responded to this Guidelines and (2) other new comments from peer reviewers, the recommendation by publishing a set of information or comment that addresses public or others. risk assessment guidelines in 1986, issues raised during the public comment including Guidelines for Carcinogen period and in the SAB reviews, Dated: November 20, 2001. Risk Assessment (51 FR 33992, Sept. 24, particularly the 1999 and 2000 SAB Henry L. Longest II, 1986). These Guidelines set forth reports. The issues currently being Acting Assistant Administrator for Research principles and procedures to guide EPA considered by EPA as it proceeds to and Development. scientists in assessing the cancer risks issue final Guidelines are described in [FR Doc. 01–29647 Filed 11–28–01; 8:45 am] from chemicals or other agents in the the January 2001 response to the SAB BILLING CODE 6560–50–P
VerDate 11
FEDERAL ELECTION COMMISSION PLACE: Board Room, Second Floor, DEPARTMENT OF HEALTH AND Federal Housing Finance Board, 1777 F HUMAN SERVICES Sunshine Act Notice Street, N.W., Washington, DC 20006. Food and Drug Administration CANCELLATION OF PREVIOUSLY ANNOUNCED STATUS: The entire meeting will be open MEETINGS: to the public. Antiviral Drugs Advisory Committee; Notice of Meeting Tuesday, December 4, 2001, 10 a.m.; MATTERS TO BE CONSIDERED DURING meeting closed to the public. PORTIONS OPEN TO THE PUBLIC: AGENCY: Food and Drug Administration, Thursday, December 6, 2001, 10 a.m.; • HHS. meeting open to the public. Final Rule: Unsecured Credit Limits for the Federal Home Loan Banks ACTION: Notice. DATE & TIME: Thursday, December 6, • 2001 at 10 a.m. Waiver of Compliance with the This notice announces a forthcoming PLACE: 999 E Street, NW, Washington, Minimum Liquidity Requirements of meeting of a public advisory committee DC. § 932.8 and the Unsecured Credit of the Food and Drug Administration Limits of § 932.9 STATUS: This meeting will be closed to (FDA). At least one portion of the the public. • Proposed Rule: Amendments to the meeting will be closed to the public. Name of Committee: Antiviral Drugs ITEMS TO BE DISCUSSED: Affordable Housing Program Advisory Committee. Compliance matters pursuant to 2 CONTACT PERSON FOR MORE INFORMATION: General Function of the Meeting: To U.S.C. § 437g. Elaine L. Baker, Secretary to the Board, provide advice and recommendations to Audits conducted pursuant to 2 U.S.C. (202) 408–2837. the agency on FDA’s regulatory issues. § 437g, § 438(b), and title 26, U.S.C. Date and Time: The meeting will be Matters concerning participation in civil James L. Bothwell, held on December 12, 2001, from 8:15 actions or proceedings or arbitration. Managing Director. a.m. to 5:15 p.m. Internal personnel rules and procedures [FR Doc. 01–29773 Filed 11–27–01; 2:08 pm] Location: Holiday Inn, Versailles or matters affecting a particular BILLING CODE 6725–01–P Ballroom, 8120 Wisconsin Ave., employee. Bethesda, MD. PERSON TO CONTACT FOR INFORMATION: M. Contact: Tara P. Turner, Center for Ron Harris, Press Officer, telephone: Drug Evaluation and Research (HFD– (202) 694–1220. FEDERAL RETIREMENT THRIFT 21), Food and Drug Administration, INVESTMENT BOARD Mary W. Dove, 5600 Fishers Lane (for express delivery Secretary of the Commission. 5630 Fishers Lane, rm. 1093), Rockville, Sunshine Act Meeting MD 20857, 301–827–7001, e-mail: [FR Doc. 01–29790 Filed 11–27–01; 2:44 pm] [email protected], or FDA Advisory BILLING CODE 6715–01–M TIME AND DATE: 10 a.m. (EST), December Committee Information Line, 1–800– 10, 2001. 741–8138 (301–443–0572 in the PLACE: 4th Floor, Conference Room Washington, DC area), code 12531. FEDERAL HOUSING FINANCE BOARD 4506, 1250 H Street, NW., Washington, Please call the Information Line for up- to-date information on this meeting. DC. Sunshine Act Meeting Agenda: The committee will be STATUS; Open. updated on the approval of biologics FEDERAL REGISTER CITATION OF PREVIOUS license application supplement 103949/ MATTERS TO BE CONSIDERED: ANNOUNCEMENT: 66 FR 57967, 5002, PEG–INTRON (peginterferon alfa- November 19, 2001. 1. Approval of the minutes of the 2b) powder for injection, Schering November 13, 2001, Board member PREVIOUSLY ANNOUNCED TIME AND DATE OF Corp., indicated for use alone or in meeting. THE MEETING: 10:00 a.m., Wednesday, combination with Rebetol (ribavirin, November 28, 2001. 2. Thrift Savings Plan activity report by USP), for the treatment of chronic hepatitis C in patients with CANCELLATION OF THE MEETING: Notice is the Executive Director. compensated liver disease who have not hereby given of the cancellation of the 3. Review of KPMG LLP audit reports: been previously treated with interferon Board of Directors meeting scheduled (a) Thrift Savings Plan Billing Process alpha and are at least 18 years of age. for November 28, 2001. at the Untied States Department of Procedure: On December 12, 2001, CONTACT PERSON FOR MORE INFORMATION: Agriculture, National Finance from 8:15 a.m. to 12:15 p.m., the Elaine L. Baker, Secretary to the Board, Center. meeting is open to the public. Interested (202) 408–2837. (b) Thrift Savings Plan Annuity persons may present data, information, James L. Bothwell, Operations at the Metropolitan Life or views, orally or in writing, on issues Managing Director. Insurance Company. pending before the committee. Written submissions may be made to the contact [FR Doc. 01–29713 Filed 11–26–01; 4:15 pm] CONTACT PERSON FOR MORE INFORMATION: person by December 5, 2001. Oral BILLING CODE 6725–01–P Thomas J. Trabucco, Director, Office of presentations from the public will be External Affairs, (202) 942–1640. scheduled between approximately 10 FEDERAL HOUSING FINANCE BOARD Dated: November 27, 2001. a.m. and 11 a.m. Time allotted for each presentation may be limited. Those Elizabeth S. Woodruff, Sunshine Meeting; Notice Announcing desiring to make formal oral an Open Meeting of the Board Secretary to the Board, Federal Retirement presentations should notify the contact Thrift Investment Board. person before December 5, 2001, and TIME AND DATE: 10 A.M., Wednesday, [FR Doc. 01–29822 Filed 11–29–01; 3:53 pm] submit a brief statement of the general December 5, 2001. BILLING CODE 6760–01–M nature of the evidence or arguments
VerDate 11
they wish to present, the names and For further information concerning Participation in the Investigations and addresses of proposed participants, and the conduct of this phase of the Public Service List an indication of the approximate time investigations, hearing procedures, and Persons, including industrial users of requested to make their presentation. rules of general application, consult the the subject merchandise and, if the Closed Committee Deliberations: On Commission’s rules of practice and merchandise is sold at the retail level, December 12, 2001, from 1:15 p.m. to procedure, part 201, subparts A through representative consumer organizations, 5:15 p.m., the meeting will be closed to E (19 CFR part 201), and part 207, wishing to participate in the final phase permit discussion and review of trade subparts A and C (19 CFR part 207). of these investigations as parties must secret and/or confidential information EFFECTIVE DATE: November 9, 2001. file an entry of appearance with the (5 U.S.C. 552b(c)(4)). Secretary to the Commission, as FDA regrets that it was unable to FOR FURTHER INFORMATION CONTACT: provided in § 201.11 of the publish this notice 15 days prior to the Woodley Timberlake (202–205–3188), Commission’s rules, no later than 21 December 12, 2001, Antiviral Drugs Office of Investigations, U.S. days prior to the hearing date specified Advisory Committee meeting. Because International Trade Commission, 500 E in this notice. A party that filed a notice the agency believes there is some Street SW, Washington, DC 20436. of appearance during the preliminary urgency to bring this issue to public Hearing-impaired persons can obtain phase of the investigations need not file discussion and qualified members of the information on this matter by contacting an additional notice of appearance Antiviral Drugs Advisory Committee the Commission’s TDD terminal on 202– during this final phase. The Secretary were available at this time, the 205–1810. Persons with mobility will maintain a public service list Commissioner of Food and Drugs impairments who will need special containing the names and addresses of concluded that it was in the public assistance in gaining access to the all persons, or their representatives, interest to hold this meeting even if Commission should contact the Office who are parties to the investigations. there was not sufficient time for the of the Secretary at 202–205–2000. customary 15-day public notice. General information concerning the Limited Disclosure of Business Notice of this meeting is given under Commission may also be obtained by Proprietary Information (BPI) Under an the Federal Advisory Committee Act (5 accessing its internet server (http:// Administrative Protective Order (APO) U.S.C. app. 2). www.usitc.gov). The public record for and BPI Service List Dated: November 21, 2001. these investigations may be viewed on Pursuant to § 207.7(a) of the Bonnie H. Malkin, the Commission’s electronic docket Commission’s rules, the Secretary will Acting Senior Associate Commissioner for (EDIS–ON–LINE) at http:// make BPI gathered in the final phase of Communications and Constituent Relations. dockets.usitc.gov/eol/public. these investigations available to [FR Doc. 01–29738 Filed 11–27–01; 11:15 SUPPLEMENTARY INFORMATION: authorized applicants under the APO am] issued in the investigations, provided Background BILLING CODE 4160–01–S that the application is made no later The final phase of these investigations than 21 days prior to the hearing date is being scheduled as a result of specified in this notice. Authorized INTERNATIONAL TRADE affirmative preliminary determinations applicants must represent interested COMMISSION by the Department of Commerce that parties, as defined by 19 U.S.C. 1677(9), imports of silicomanganese from India, who are parties to the investigations. A [Investigations Nos. 731–TA–929–931 party granted access to BPI in the (Final)] Kazakhstan, and Venezuela are being sold in the United States at less than fair preliminary phase of the investigations Silicomanganese From India, value within the meaning of section 733 need not reapply for such access. A separate service list will be maintained Kazakhstan, and Venezuela of the Act (19 U.S.C. 1673b). The by the Secretary for those parties investigations were requested in a AGENCY: authorized to receive BPI under the United States International petition filed on April 6, 2001, by APO. Trade Commission. Eramet Marietta, Inc. (Marietta, OH) and ACTION: Scheduling of the final phase of the Paper, Allied-Industrial, Chemical Staff Report antidumping investigations. and Energy Workers International The prehearing staff report in the final SUMMARY: The Commission hereby gives Union, Local 5–0639. phase of these investigations will be notice of the scheduling of the final placed in the nonpublic record on phase of antidumping investigations merchandise as ‘‘all forms, sizes and compositions January 10, 2002, and a public version of silicomanganese, except low-carbon will be issued thereafter, pursuant to Nos. 731–TA–929–931 (Final) under silicomanganese, including silicomanganese, section 735(b) of the Tariff Act of 1930 including silicomanganese briquettes, fines and § 207.22 of the Commission’s rules. (19 U.S.C. 1673d(b)) (the Act) to slag.’’ Silicomanganese generally contains by Hearing determine whether an industry in the weight not less than 4 percent iron, more than 30 United States is materially injured or percent manganese, more than 8 percent silicon and The Commission will hold a hearing not more than 3 percent phosphorous. Low-carbon in connection with the final phase of threatened with material injury, or the silicomanganese excluded from the scope of these establishment of an industry in the investigations is a ferroalloy with the following these investigations beginning at 9:30 United States is materially retarded, by chemical specifications: minimum 55 percent a.m. on January 24, 2002, at the U.S. reason of less-than-fair-value imports manganese, minimum 27 percent silicon, minimum International Trade Commission 4 percent iron, maximum 0.10 percent phosphorus, Building. Requests to appear at the from India, Kazakhstan, and Venezuela maximum 0.10 percent carbon and maximum 0.05 of silicomanganese, provided for in percent sulfur. hearing should be filed in writing with subheading 7202.30.00 of the 2 Some silicomanganese may also be entered the Secretary to the Commission on or Harmonized Tariff Schedule of the under HTS statistical reporting number before January 17, 2002. A nonparty 12 7202.99.5040. The merchandise covered by the who has testimony that may aid the United States (HTS). scope of these investigations includes all silicomanganese (excluding the aforementioned Commission’s deliberations may request 1 For purposes of these investigations, the low-carbon silicomanganese), regardless of its tariff permission to present a short statement Department of Commerce has defined the subject classification. at the hearing. All parties and
VerDate 11
nonparties desiring to appear at the Authority: These investigations are being Frequency of Report: On Occasion. hearing and make oral presentations conducted under authority of title VII of the David B. Nelson, should attend a prehearing conference Tariff Act of 1930; this notice is published to be held at 9:30 a.m. on January 22, pursuant to § 207.21 of the Commission’s Deputy Chief Information Officer, Office of rules. the Administrator. 2002, at the U.S. International Trade [FR Doc. 01–29646 Filed 11–28–01; 8:45 am] Commission Building. Oral testimony By order of the Commission. and written materials to be submitted at Issued: November 26, 2001. BILLING CODE 7510–01–P the public hearing are governed by Donna R. Koehnke, §§ 201.6(b)(2), 201.13(f), and 207.24 of Secretary. the Commission’s rules. Parties must NUCLEAR REGULATORY [FR Doc. 01–29676 Filed 11–28–01; 8:45 am] COMMISSION submit any request to present a portion BILLING CODE 7020–02–P of their hearing testimony in camera no [Docket No. 50–247, License No. DPR–26] later than 7 days prior to the date of the hearing. Entergy Nuclear Operations, Inc.; NATIONAL AERONAUTICS AND Notice of Issuance of Director’s Written Submissions SPACE ADMINISTRATION Decision Under 10 CFR 2.206 Each party who is an interested party Notice is hereby given that the shall submit a prehearing brief to the [01–152] Director, Office of Nuclear Reactor Commission. Prehearing briefs must Regulation, has issued a Director’s conform with the provisions of § 207.23 Notice of Agency Report Forms Under Decision with regard to a Petition dated of the Commission’s rules; the deadline OMB Review December 4, 2000, filed by Deborah Katz, Marilyn Elie, Tim Judson, Kyle for filing is January 17, 2002. Parties AGENCY: National Aeronautics and Rabin, Mark Jacobs, Paul Gunter, and may also file written testimony in Space Administration (NASA). connection with their presentation at Jim Riccio, hereinafter referred to as the the hearing, as provided in § 207.24 of SUMMARY: The National Aeronautics and ‘‘Petitioners.’’ The Petition was the Commission’s rules, and posthearing Space Administration, as part of its supplemented on January 24, 2001. The briefs, which must conform with the continuing effort to reduce paperwork Petition concerns the operation of the provisions of § 207.25 of the and respondent burden, invites the Indian Point Nuclear Generating Unit Commission’s rules. The deadline for general public and other Federal No. 2 (IP2). filing posthearing briefs is January 31, agencies to take this opportunity to The Petitioners requested that the comment on proposed and/or 2002; witness testimony must be filed Nuclear Regulatory Commission (NRC) continuing information collections, as no later than three days before the take the following enforcement-related required by the Paperwork Reduction hearing. In addition, any person who actions against Consolidated Edison of Act of 1995 (Public Law 104–13, 44 has not entered an appearance as a party New York (ConEd, or the licensee) for U.S.C. 3506(c)(2)(A)). This information to the investigations may submit a IP2: (1) Suspend the license for the IP2 collection is required to ensure proper written statement of information reactor because of the licensee’s accounting of Federal funds and pertinent to the subject of the ‘‘persistent and pervasive, negligent property provided under grants and investigations on or before January 31, management of the reactor,’’ (2) cooperative agreements with state and 2002. On February 21, 2002, the investigate whether the potential local governments. Commission will make available to misrepresentation of material fact by the parties all information on which they DATES: All comments should be utility regarding ‘‘significantly have not had an opportunity to submitted on or before January 28, 2002. insufficient’’ engineering calculations comment. Parties may submit final ADDRESSES: All comments should be was due to a lack of rigor and comments on this information on or addressed to Mr. Paul Brundage, Code thoroughness or was deliberate, (3) before February 25, 2002, but such final HK, National Aeronautics and Space revoke the IP2 operating license if it is comments must not contain new factual Administration, Washington, DC 20546– found that the licensee deliberately information and must otherwise comply 0001. provided insufficient and false information, (4) if the license is not with § 207.30 of the Commission’s rules. FOR FURTHER INFORMATION CONTACT: Ms. revoked, maintain IP2 on the list of All written submissions must conform Nancy Kaplan, NASA Reports Officer, ‘‘agency focus’’ plants until with the provisions of § 201.8 of the (202) 358–1372. management demonstrates it can fulfill Commission’s rules; any submissions Title: Grant Programs, its regulatory requirements and that contain BPI must also conform with Intergovernmental Relations. commitments, (5) not approve the the requirements of §§ 201.6, 207.3, and OMB Number: 2700–0093. transfer of the IP2 license until 207.7 of the Commission’s rules. The Type of review: Extension. management can demonstrate that the Commission’s rules do not authorize Need and Uses: Reporting and Updated Final Safety Analysis Report filing of submissions with the Secretary recordkeeping are prescribed under 14 (UFSAR), the condition report backlog, by facsimile or electronic means. CFR part 1274. Information collected and the maintenance requirements are In accordance with §§ 201.16(c) and ensures the accountability of public up to date and workers have been 207.3 of the Commission’s rules, each funds and proper maintenance of an retrained, and (6) not allow the IP2 document filed by a party to the appropriate internal control system. reactor to restart until the fundamental investigations must be served on all Affected Public: State, Local or Tribal breakdown in management is analyzed other parties to the investigations (as Government. and corrected. The Petitioner also identified by either the public or BPI Number of Respondents: 16. requested that a public meeting be held service list), and a certificate of service Responses Per Respondent: 6. to discuss this matter. must be timely filed. The Secretary will Annual Responses: 95. As the basis for the December 4, 2000, not accept a document for filing without Hours Per Request: 5 hrs. request, the Petitioners stated that the a certificate of service. Annual Burden Hours: 485. licensee’s systemic mismanagement of
VerDate 11
the plant resulted in, among other retrained to the modified UFSAR does Common Stock, no par value things, inconsistencies and inaccuracies not meet the requirements for review (‘‘Securities’’), from listing and in the UFSAR, safety systems whose under 10 CFR 2.206. The reasons for registration on the American Stock compliance with the regulations could these decisions are explained in the Exchange LLC (‘‘Amex’’). not be verified, design basis analyses Director’s Decision pursuant to 10 CFR The Issuer stated in its application that might not be accurate, and a 2.206 (DD–01–04), the complete text of that it has met the requirements of UFSAR that may not be up to date. The which is available in ADAMS for Amex Rule 18 by complying with all Petitioners considers the systemic inspection in the Commission’s Public applicable laws in effect in the State of mismanagement to be potentially unsafe Document Room at One White Flint Delaware, in which it is incorporated, and to be in violation of Federal North, 11555 Rockville Pike (first floor), and with the Amex’s rules governing an regulations. In the Petition, a number of Rockville, Maryland, and electronically issuer’s voluntary withdrawal of a NRC inspection reports, licensee event accessible in ADAMS through the NRC security from listing and registration. reports, letters between the NRC staff Public Electronic Reading Room at On November 9, 2001, the Board of and the licensee, plant performance http://www.nrc.gov/reading-rm.html Directors of the Issuer unanimously review summaries, and other documents (ADAMS Accession No. ML approved a resolution to withdraw the were cited that the Petitioners believe 0103030073). Persons who do not have Securities from listing on the Amex. In document their contentions. access to ADAMS or who encounter making the decision to withdraw the On January 24, 2001, the Petitioners problems in accessing documents Security from listing on the Exchange, and the licensee met with the staff’s located in ADAMS should contact the the Issuer considered the following: Petition Review Board. The meeting NRC PDR reference staff by telephone at 1. The Issuer’s conclusion that it will gave the Petitioners and the licensee an 1–800–397–4209, or locally at 301–415– be unable to achieve compliance with opportunity to provide additional 4737, or by email at [email protected]. the Amex’s continued listing information and to clarify issues raised A copy of the Director’s Decision will requirements in the foreseeable future; in the Petition. During the public be filed with the Secretary of the 2. The Issuer’s decision, after meeting, the Petitioners gave the staff Commission for the Commission’s extensive negotiations with the holders supplemental information which the review in accordance with 10 CFR 2.206 of the Issuer’s 103⁄4% Senior Secured staff considered in making its decision. of the Commission’s regulations. As Notes (due 2006) and its senior secured The Petitioners contended that the provided for by this regulation, the lenders, file a voluntary petition from supplemental information provided Director’s Decision will constitute the relief under Chapter 11 of the United further evidence of the licensee’s final action of the Commission 25 days States Bankruptcy Code in the United mismanagement of the IP2 facility. after the date of the decision, unless the States Bankruptcy Court of the Southern The NRC sent a copy of the proposed Commission, on its own motion, District of Ohio, Western Division, in Director’s Decision to the Petitioners institutes a review of the Director’s Dayton. The petition is being filed on and to the licensee for comment on July Decision in that time. November 13, 2001; 25, 2001. The Petitioners responded 3. The percentage of the Securities with comments on September 14, 2001. For the Nuclear Regulatory Commission. owned by the principal shareholder of The licensee did not respond. The Dated at Rockville, Maryland, this 21st day the Issuer and the four holders of November 2001. Petitioners’ comments and the NRC staff (including the principal shareholder) responses to the comments can be found Samuel J. Collins, owning 5% or more of the outstanding in the cover letter transmitting the Director, Office of Nuclear Reactor Securities as of November 1, 2001 Director’s Decision and Attachment 1 to Regulations. (41.7% and 78.3%, respectively), and the Director’s Decision. [FR Doc. 01–29622 Filed 11–28–01; 8:45 am] the very limited trading activity in the The Director of the Office of Nuclear BILLING CODE 7590–01–P Security; and Reactor Regulation concluded that the 4. The costs associated with information contained in the Petition maintaining the Issuer’s listing on the and the supplement does not warrant SECURITIES AND EXCHANGE Amex in light of the Issuer’s current NRC staff action to suspend or revoke COMMISSION financial position. the operating license for IP2. Likewise, [File No. 1–13961] Additionally, the Issuer represents the staff finds no basis for initiating an that it has fewer than 300 record holders investigation into wrongdoing on the Issuer Delisting; Notice of Application and it intends to file a Form 15 with the part of ConEd. These requested actions To Withdraw From Listing and Commission in accordance with Rule are not granted. The NRC grants the Registration on the American Stock 12g–4 under the Act. Petitioners’ request that IP2 remain on Exchange LLC (Spinnaker Industries, The Issuer’s application relates solely the list of agency focus plants (i.e., Inc., Common Stock, No Par Value and to the Securities’ withdrawal from plants with multiple/repetitive Class A Common Stock, No Par Value) listing and registration under section degraded cornerstones). However, the 12(b) of the Act 3 and shall not affect its NRC staff did not grant the Petitioners’ November 23, 2001. obligation to be registered under section request to define under what conditions Spinnaker Industries, Inc., a Delaware 12(g) of the Act.4 IP2 will be removed from the list of corporation (‘‘Issuer’’), has filed an An interested person may, on or plants with multiple/repetitive application with the Securities and before December 18, 2001 to submit by degraded cornerstones. Exchange Commission (‘‘Commission’’), letter to the Secretary of the Securities In addition, the staff found that the pursuant to section 12(d) of the and Exchange Commission, 450 Fifth Petitioners’ request to delay or deny a Securities Exchange Act of 1934 Street, NW., Washington, DC 20549– request to transfer the operating license (‘‘Act’’) 1 and Rule 12d2–2(d) 0609, facts bearing upon whether the for IP2 until the licensee’s management hereunder,2 to withdraw its Common application has been made in can demonstrate that the UFSAR, Stock, no par value, and Class A accordance with the rules of the Amex condition report backlog, and maintenance requirements are up to 1 15 U.S.C. 78l(d). 3 15 U.S.C. 78l(b). date, and that plant workers have been 2 17 CFR 240.12d2–2(d). 4 15 U.S.C. 78l(g).
VerDate 11
and what terms, if any, should be Dated: November 27, 2001. Request for Comments on what action imposed by the Commission for the Jonathan G. Katz, the President should take under section protection of investors. The Secretary. 203 of the Trade Act to facilitate efforts Commission, based on the information [FR Doc. 01–29823 Filed 11–27–01; 4:02 by the domestic industries producing submitted to it, will issue an order p.m.] certain steel products to make a positive granting the application after the date BILLING CODE 8010–01–M adjustment to import competition and mentioned above, unless the provide greater economic and social Commission determines to order a benefits than costs. See 66 FR 54321. hearing on the matter. OFFICE OF THE UNITED STATES According to the October 26th Notice, For the Commission, by the Division of TRADE REPRESENTATIVE the deadline for the submission of Market Regulation, pursuant to delegated requests for the exclusion of specific authority.5 Trade Policy Staff Committee; products from any action under section Jonathan G. Katz, Extension of Deadline for the 203(a) of the Trade Act was November 13, 2001, and the deadline for the Secretary. Submission of Responses to Requests submission of responses to such [FR Doc. 01–29638 Filed 11–28–01; 8:45 am] for the Exclusion of Specific Products From Any Action Under Section 203 of requests was November 27, 2001. The BILLING CODE 8010–01–M the Trade Act of 1974 With Regard to TPSC is extending the November 27, Imports of Certain Steel and 2001, deadline until not later than December 5, 2001. Parties should refer SECURITIES AND EXCHANGE Modifications to the Earlier to the October 26th Notice, and COMMISSION Instructions for the Submission of Written Comments additional information provided below, Sunshine Act Meeting for instructions for the submission of AGENCY: Office of the United States written comments. Notice is hereby given, pursuant to Trade Representative. The October 26th Notice contained the provisions of the Government in the ACTION: Extension of deadline for instructions for the submission of Sunshine Act, Pub. L. 94–409, that the submission of responses and written comments. In light of recently Securities and Exchange Commission modifications to the earlier instructions implemented security measures, U.S. will hold the following meeting during for the submission of written comments. mail submissions will not be received in the week of December 3, 2001: a closed time for consideration. To improve the meeting will be held on Monday, SUMMARY: The Trade Policy Staff receipt of submissions by electronic December 3, 2001, at 2 p.m. Committee (‘‘TPSC’’) is extending the mail, the TPSC is making the following deadline, from November 27, 2001, to modifications to the instructions: Commissioner Hunt, as duty officer, December 5, 2001, for the submission of • The October 26th Notice allowed determined that no earlier notice thereof responses to requests for the exclusion interested persons filing written was possible. of specific products from any action comments, requests, or other Commissioners, Counsel to the under section 203 of the Trade Act of information to provide the information Commissioners, the Secretary to the 1974, as amended, (19 U.S.C. 2253) by electronic mail or by U.S. mail. It Commission, and recording secretaries (‘‘Trade Act’’) with regard to imports of instructed interested persons submitting will attend the closed meeting. Certain certain steel. In light of recent security documents by U.S. mail to include staff members who have an interest in measures, the TPSC is also modifying twenty (20) copies. The TPSC now the matters may also be present. the instructions for the submission of requests only one (1) copy of any The General Counsel of the written comments in the TPSC Notice documents submitted by U.S. mail. Commission, or his designee, has and Request for Comments of October Interested persons submitting certified that, in his opinion, one or 26, 2001. See 66 FR 54321 (‘‘October documents by U.S. mail should also more of the exemptions set forth in 5 26th Notice’’). make arrangements for the transmission U.S.C. 552b(c)(5), (7), (9)(A), (9)(B), and DATES: The deadline for responses to of an electronic copy of the document (10) and 17 CFR 200.402(a)(5),(7), 9(i), requests for the exclusion of specific by electronic mail in accordance with 9(ii) and (10), permit consideration of products from any action under section the instructions in the October 26th the scheduled matters at the closed 203 of the Trade Act of 1974 with regard Notice, as modified below. Although the meeting. to imports of certain steel is being TPSC prefers the use of electronic mail, The subject matter of the closed extended to December 5, 2001. Other a copy of any documents submitted by meeting scheduled for Monday, dates in the October 26th Notice remain U.S. mail may also be transmitted to the December 3, 2001, will be: institution unchanged. Modifications to the TPSC by fax at (202) 395–9674. • The October 26th Notice indicated and settlement of injunctive actions; instructions for submission of written that interested persons may file institution and settlement of comments are applicable to all documents in any commercial word administrative proceedings of an documents related to action under processing or spreadsheet format. The enforcement nature; formal orders; and section 203 of the Trade Act with regard TPSC strongly encourages the an adjudicatory matter. to imports of certain steel that are submission of documents in Adobe PDF submitted to the TPSC after publication At times, changes in Commission format, as attachments to an electronic of this notice in the Federal Register. priorities require alterations in the mail message. scheduling of meeting items. For further FOR FURTHER INFORMATION CONTACT: • The October 26th Notice instructed information and to ascertain what, if Office of Industry, Office of the United that for any document containing any, matter have been added, deleted or States Trade Representative, 600 17th business confidential information postponed, please contact: Street, NW., Room 501, Washington, DC submitted by electronic transmission, The Office of the Secretary at (202) 20508. Telephone (202) 395–5656. the file name of the business 942–7070. SUPPLEMENTARY INFORMATION: On confidential version should begin with October 26, 2001, the TPSC published the characters ‘‘BC-’’, and the file name 5 17 CFR 200.30–3(a)(1). in the Federal Register a Notice and of the public version should begin with
VerDate 11
the characters ‘‘P–’’. The TPSC further Correction to [email protected]. You requests that the characters ‘‘P–’’ or In the Federal Register of November can inspect and photocopy the ‘‘BC-’’ be followed by the name of the 20, 2001, in FR Doc. 01–28930, on page comments at the OCC’s Public submitter. If a submission represents the 58187 the third column, correct the Information Room, 250 E Street, SW., views of multiple persons, only one DATES caption to read: Washington, DC 20219. You can make needs to be listed in the file name. If the DATES: The meeting will be held on an appointment to inspect the same person or persons has submitted comments by calling (202) 874–5043. multiple documents, each should be December 11, 2001, from 9:30 a.m. to sequentially numbered, with the 5:30 p.m. Alexander T. Hunt, OMB Desk number following the name of the On page 58187, in the third column Officer, Office of Management and submitter in the file name. (E.g., the correct the ADDRESSES caption to read: Budget, New Executive Office Building, sixth public submission by Smith and ADDRESSES: The meeting will be held at Room 3208, Washington, DC 20503. the National Air Carrier Association, Jones would be labeled ‘‘P-Smith-6’’.) FOR FURTHER INFORMATION CONTACT: You 910 Seventeenth Street, NW., Suite • Interested persons who make can request additional information or a 1100, Washington, DC, 20006. submissions by electronic mail should copy of the collection from Jessie not provide separate cover letters. Any Dated: November 21, 2001. Dunaway, OCC Clearance Officer, or information that might appear in a cover Anthony F. Fazio, Camille Dixon, (202) 874–5090, letter should be included in the Executive Director, Aviation Rulemaking Legislative and Regulatory Activities submission itself, or in the electronic Advisory Committee. Division. Questions regarding content of mail message used to transmit the [FR Doc. 01–29636 Filed 11–28–01; 8:45 am] the questionnaire should be directed to submission. To the extent possible, any BILLING CODE 4910–13–M Thomas Baucom, Communications attachments to the submission should Division, (202) 874–5513. be aggregated into a single file with the submission itself, and not transmitted DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION: The OCC separately. is requesting OMB approval of the These modifications are applicable to Office of the Comptroller of the following information collection: all documents related to action under Currency Title: OCC Communications section 203 of the Trade Act with regard Questionnaire. Agency Information Collection to imports of certain steel that are OMB Number: 1557—to be submitted to the TPSC after publication Activities: Submission for OMB determined. of this notice in the Federal Register. Review; Comment Request Description: The OCC is proposing to Carmen Suro-Bredie, AGENCY: Office of the Comptroller of the Currency (OCC), Treasury. collect information from national banks Chair, Trade Policy Staff Committee. regarding the quality, timeliness, and ACTION: Notice and request for comment. [FR Doc. 01–29776 Filed 11–27–01; 3:07 pm] effectiveness of OCC communications BILLING CODE 3190–01–P SUMMARY: The OCC, as part of its products, such as booklets, issuances, continuing effort to reduce paperwork CDs, and Web site. Completed and respondent burden, invites the questionnaires will provide the OCC with information needed to properly DEPARTMENT OF TRANSPORTATION general public and other Federal agencies to take this opportunity to evaluate the effectiveness of its paper Federal Aviation Administration comment on a continuing information and electronic communications collection, as required by the Paperwork products. The OCC will use the Aviation Rulemaking Advisory Reduction Act of 1995. An agency may information to identify problems and to Committee Meeting on Air Carrier and not conduct or sponsor, and a improve its service to national banks. General Aviation Maintenance Issues respondent is not required to respond Type of Review: New collection. to, an information collection unless the AGENCY: Federal Aviation information collection displays a Affected Public: Businesses or other Administration (FAA), DOT. currently valid OMB control number. for-profit (national banks). ACTION: Notice; correction. The OCC is soliciting comment Estimated Number of Respondents: concerning its proposed information 2,300. SUMMARY: The Federal Aviation collection titled, ‘‘OCC Communications Estimated Total Annual Responses: Questionnaire.’’ The OCC also gives Administration (FAA) is issuing this 2,300. notice to advise the public that the notice that it has sent the information December 5, 2001, meeting of the FAA collection to OMB for review and Frequency of Response: One time. Aviation Rulemaking Advisory approval. Estimated Time per Respondent: 30 Committee to discuss Air Carrier and DATES: You should submit your minutes. General Aviation Maintenance Issues comments to the OCC and the OMB Estimated Total Annual Burden: related to repair station ratings and Desk Officer by December 31, 2001. 1,150 burden hours. quality assurance programs has been ADDRESSES: You should direct your Dated: November 21, 2001. rescheduled and the meeting location comments to: Mark J. Tenhundfeld, has been changed. Communications Division, Office of FOR FURTHER INFORMATION CONTACT: the Comptroller of the Currency, Public Assistant Director, Legislative and Regulatory Vanessa R. Wilkins, Federal Aviation Information Room, Mailstop 1–5, Activities Division. Administration, Office of Rulemaking Attention: 1557–OCCPRODUCTS, 250 E [FR Doc. 01–29635 Filed 11–28–01; 8:45 am] (ARM–207), 800 Independence Avenue, Street, SW., Washington, DC 20219. In BILLING CODE 4810–33–P SW., Washington, DC 20591, telephone addition, comments may be sent by fax (202) 267–8029; fax (202) 267–5075. to (202) 874–4448, or by electronic mail
VerDate 11
DEPARTMENT OF THE TREASURY Summarized Agenda for Meeting accommodates approximately 80 Thursday, December 6, 2001 people, including members of ETAAC Internal Revenue Service 9:00 Meeting Opens and IRS officials. Seats are available to members of the public on a first-come, Electronic Tax Administration 1:00 Meeting Ajourns first-served basis. To get your name on Advisory Committee (ETAAC); Meeting The topics that are planned to be covered are as follows: the access list, notification of intent to AGENCY: Internal Revenue Service (IRS), (1) Modernization Update attend the meeting should be made with Treasury. (2) Preview of 2002 Filing Season Ms. Robin Marusin by November 30, (3) Business e-file Plans ACTION: Notice of Open Meeting of the 2001. Ms. Marusin can be reached at (4) ETAAC Future Direction Electronic Tax Administration Advisory 202–622–8184. Notification of intent Committee (ETAAC). Note: Last minute changes to these topics should include your name, organization are possible and could prevent advance and phone number. If you leave this notice. SUMMARY: In 1998 the IRS established information for Ms. Marusin in a voice- the Electronic Tax Administration SUPPLEMENTARY INFORMATION: ETAAC mail message, please spell out all Advisory Committee (ETAAC). The reports to the Director, Electronic Tax names. A draft of the agenda will be primary purpose of ETAAC is to provide Administration, who is the executive available via facsimile transmission the an organized public forum for responsible for the electronic tax week prior to the meeting. Please call discussion of electronic tax administration program. Increasing Ms. Robin Marusin on or after Thursday administration issues in support of the participation by external stakeholders in November 29 to have a copy of the overriding goal that paperless filing the development and implementation of agenda faxed to you. Please note that a should be the preferred and most the Internal Revenue Service (IRS) draft agenda will not be available until convenient method of filing tax and strategy for electronic tax administration that date. information returns. ETAAC offers will help achieve the goal that paperless constructive observations about current filing should be the preferred and most FOR FURTHER INFORMATION CONTACT: To or proposed policies, programs, and convenient method of filing tax and get on the access list to attend this procedures, and suggests improvements. information returns. ETAAC members meeting, to have a copy of the agenda There will be a meeting of ETAAC on are not paid for their time or services, faxed to you, or to get general Thursday, December 6, 2001. The but consistent with Federal regulations, information about ETAAC, call Robin meeting will be held in the Melrose they are reimbursed for their travel and Marusin at 202–622–8184. Hotel, 2430 Pennsylvania Avenue, NW, lodging expenses to attend the public Washington, DC. A summarized version meetings, working sessions, and an Terence H. Lutes, of the agenda along with a list of topics orientation each year. Director, Electronic Tax Administration. that are planned to be discussed are DATES: The meeting will be open to the [FR Doc. 01–29645 Filed 11–28–01; 8:45 am] listed below. public, and will be in a room that BILLING CODE 4830–01–P
VerDate 11
Corrections Federal Register Vol. 66, No. 230
Thursday, November 29, 2001
This section of the FEDERAL REGISTER ENVIRONMENTAL PROTECTION will indicate the total NOX in the NO + contains editorial corrections of previously AGENCY O2 mixture. Record this value. published Presidential, Rule, Proposed Rule, * * * * * and Notice documents. These corrections are 40 CFR Part 92 prepared by the Office of the Federal (xi)* * * (A) Percent Efficiency=(1 + (a ¥ b)/(c Register. Agency prepared corrections are Control of Air Pollution From ¥ d))(100) issued as signed documents and appear in Locomotives and Locomotive Engines; the appropriate document categories Republication where: elsewhere in the issue. a=concentration obtained in paragraph CFR Correction (b)(2)(viii) of this section. b=concentration obtained in paragraph COMMITTEE FOR THE Editorial Note: On Monday, November 26, (b)(2)(ix) of this section. 2001, this rule document FR Doc. 01-55530 IMPLEMENTATION OF TEXTILE c=concentration obtained in paragraph appeared on 66 FR 58953–58964. Due to (b)(2)(vi) of this section. AGREEMENTS additional text being inadvertently added, it d=concentration obtained in paragraph is being reprinted in its entirety. (b)(2)(vii) of this section. Reduction of Charges for Certain In Title 40 of the Code of Federal Cotton Textile Products Produced or Regulations, Parts 87 to 99, revised as of * * * * * Manufactured in the Republic of July 1, 2001, part 92 is corrected in (4)* * * Turkey § 92.120 by revising equations (1) and (iv) Calculate the concentration of the (2) in paragraph (c)(2)(v), in § 92.121 by converter checking gas using the results November 16, 2001. revising paragraphs (b)(2)(vi), (b)(2)(ix), from step in paragraph (b)(4)(iii) of this Correction (b)(2)(xi)(A), and (b)(4)(iv), and by section and the converter efficiency revising § 92.132 to read as follows: from paragraph (b)(2) of this section as In notice document 01–29109 follows: appearing on page 58123 in the issue of § 92.120 NDIR analyzer calibration and checks. Concentration=(((X–Y)(100))/Efficiency) Tuesday, November 20, 2001, make the + Y following corrections: * * * * * (c)* * * * * * * * (1) On page 58123, beginning in the (2)* * * first column, the last paragraph, the § 92.132 Calculations. (v)* * * Authority citation, should have (a) Duty-cycle emissions. This section appeared as follows; y = Ax4 + Bx3 + Cx2 + Dx + E (1) describes the calculation of duty-cycle y = x/(Ax4 + Bx3 + Cx2 + Dx + E) (2) ‘‘Authority: Section 204 of the Agricultural emissions, in terms of grams per brake Act of 1956, as amended (7 U.S.C. 1854); where: horsepower hour (g/bhp-hr). The Executive Order 11651 of March 3, 1972, as y = concentration. calculation involves the weighted amended.’’ x = chart deflection. summing of the product of the throttle notch mass emission rates and dividing (2) On the same page, in the third * * * * * by the weighted sum of the brake column, the first paragraph should have horsepower. The final reported duty- appeared as follows; § 92.121 Oxides of nitrogen analyzer calibration and check. cycle emission test results are calculated ‘‘The Committee for the * * * * * as follows: (1)(i) E =(Σ(M )(F ))/(Σ(BHP )(F )) Implementation of Textile Agreements (b)* * * idc ij j j j has determined that this action falls (2)* * * Where: within the foreign affairs exception of (vi) Turn on the NO generator O (or Eidc=Duty-cycle weighted, brake-specific the rulemaking provisions of 5 U.S.C. X 2 air) supply and adjust the O2 (or air) mass emission rate of pollutant i (i.e., HC, 553(a)(1).’’ flow rate so that the NO indicated by the CO, NOX or PM and, if appropriate, THCE or NMHC) in grams per brake horsepower- [FR Doc. C1–29109 Filed 11–28–01; 8:45 am] analyzer is about 10 percent less than hour; indicated in step in paragraph (b)(2)(v) BILLING CODE 1505–01–D Mij=the mass emission rate pollutant i for of this section. Record the concentration mode j; of NO in this NO + O2 mixture. Fj=the applicable weighting factor listed in * * * * * Table B132–1 for mode j; BHPj=the measured brake horsepower for (ix) Switch off the NOX generation, but maintain gas flow through the mode j. system. The oxides of nitrogen analyzer (ii) Table B132–1 follows:
TABLE B132–1—WEIGHTING FACTORS FOR CALCULATING EMISSION RATES
Locomotive not equipped Locomotive equipped with Throttle notch setting Test mode with multiple idle notches multiple idle notches Line-haul Switch Line-haul Switch
Low Idle ...... 1a NA NA 0.190 0.299
VerDate 11
TABLE B132–1—WEIGHTING FACTORS FOR CALCULATING EMISSION RATES—Continued
Locomotive not equipped Locomotive equipped with Throttle notch setting Test mode with multiple idle notches multiple idle notches Line-haul Switch Line-haul Switch
Normal Idle ...... 1 0.380 0.598 0.190 0.299 Dynamic Brake ...... 2 0.125 0.000 0.125 0.000 Notch 1 ...... 3 0.065 0.124 0.065 0.124 Notch 2 ...... 4 0.065 0.123 0.065 0.123 Notch 3 ...... 5 0.052 0.058 0.052 0.058 Notch 4 ...... 6 0.044 0.036 0.044 0.036 Notch 5 ...... 7 0.038 0.036 0.038 0.036 Notch 6 ...... 8 0.039 0.015 0.039 0.015 Notch 7 ...... 9 0.030 0.002 0.030 0.002 Notch 8 ...... 10 0.162 0.008 0.162 0.008
(2) Example: For the line-haul cycle, points. The throttle notch (operating MPM mode=Mass PM emissions (grams per for locomotives equipped with normal mode) emission test results, final hour) for each test mode. and low idle, and with dynamic brake, reported values and values used in (vii) EAL mode=Aldehydes grams/BHP– the brake-specific emission rate for HC paragraph (a)(1) of this section are hr=MAL mode/Measured BHP in mode. would be calculated as: calculated as follows: (vii) EAL mode=Aldehydes grams/BHP– EHCdc=[(MHCla) (0.190) + (MHC1) (0.190) + (1) Brake specific emissions (Eij) in hr=MAL mode/Measured BHP in mode. (MHC2) (0.125) + (MHC3) (0.065) + grams per brake horsepower-hour of Where: each species i (i.e., HC, CO, NOX or PM (MHC4) (0.065) + (MHC5) (0.052) + MAL mode=Total aldehyde mass emissions (MHC6) (0.044) + (MHC7) (0.038) + and, if appropriate, THCE or NMHC) for (grams per hour) for each test mode. (M ) (0.039) + (M ) (0.030) + each mode j: HC8 HC9 (2) Mass Emissions—Raw exhaust (MHC10) (0.162)]/[(BHP1a) (0.190) + (i) EHC mode=HC grams/BHP-hr=MHC measurements. For raw exhaust (BHP1) (0.190) + (BHP2) (0.125) + mode/Measured BHP in mode. measurements mass emissions (grams (BHP3) (0.065) + (BHP4) (0.065) + Where: per hour) of each species for each mode: (BHP5) (0.052) + (BHP6) (0.044) + M =Mass HC emissions (grams per HC mode (i) General equations. (A) The mass (BHP7) (0.038) + (BHP8) (0.039) + hour) for each test mode. (BHP9) (0.030) + (BHP10) (0.162)] emission rate, MX mode (g/hr), of each (ii) ETHCE mode=THCE grams/BHP- (3) In each mode, brake horsepower pollutant (HC, NOX, CO2, CO, CH4 hr=MTHCE mode/Measured BHP in mode. CH3OH, CH3CH2OH, CH2O, CH3CH2O) output is the power that the engine Where: delivers as output (normally at the for each operating mode for raw MTHCE mode (Total hydrocarbon equivalent measurements is determined based on flywheel), as defined in § 92.2. mass emissions (grams per hour) for each (i) For locomotive testing (or engine one of the following equations: test mode): 6 testing using a locomotive alternator/ Σ MX mode=(DX/10 )(DVol)(MWX/Vm) =MHCj + (Mij) (MWCp)/MWCi 6 MX mode=(WX/10 )(WVol)(MWX/Vm) generator instead of a dynamometer), Mij=the mass emission rate oxygenated brake horsepower is calculated as: pollutant i for mode j. Where: MWCi=the molecular weight of pollutant i BHP=HPout/Aeff + HPacc X designates the pollutant (e.g., HC), DX is divided by the number of carbon atoms per the concentration of pollutant X (ppm or Where: molecule of pollutant i. ppmC) on a dry basis, MWX is the MWC =the molecular weight of a typical HPout=Measured horsepower output of the p molecular weight of the pollutant (g/mol), alternator/generator. petroleum fuel component divided by the DVol is the total exhaust flow rate (ft3/hr) number of carbon atoms per molecule of a Aeff=Efficiency of the alternator/generator. on a dry basis, WX is the concentration of typical petroleum fuel HPacc=Accessory horsepower. pollutant X (ppm or ppmC) on a wet basis, component=13.8756. 3 (ii) For engine dynamometer testing, WVol is the total exhaust flow rate (ft /hr) on a wet basis, V is the volume of one brake horsepower is determined from (iii) ENMHC mode=NMHC grams/BHP- m hr=MNMHC mode/Measured BHP in mode. mole of gas at standard temperature and the engine speed and torque. pressure (ft3/mol). (4) For locomotive equipped with Where: features that shut the engine off after MNMHC mode=Mass NMHC emissions (grams (B) All measured volumes and prolonged periods of idle, the measured per hour) for each test mode. volumetric flow rates must be corrected to standard temperature and pressure mass emission rate Mi1 (and Mi1a as (iv) ECO mode=CO grams/BHP-hr=MCO prior to calculations. applicable) shall be multiplied by a mode/Measured BHP in mode. (ii) The following abbreviations and factor equal to one minus the estimated Where: equations apply to this paragraph (b)(2): fraction reduction in idling time that MCO mode=Mass CO emissions (grams per will result in use from the shutdown hour) for each test mode. α=Atomic hydrogen/carbon ratio of the fuel. feature. Application of this adjustment β=Atomic oxygen/carbon ratio of the fuel. (v) ENOx mode=NOX grams/BHP– is subject to the Administrator’s CMWf=Molecular weight of the fuel per hr=MNOx mode/Measured BHP in mode. carbon atom, or carbon molecular weight approval. α β (b) Throttle notch emissions. This Where: (g/moleC)=(12.011 + 1.008 + 16.000 ). MNOx mode=Mass NOX emissions (grams per DCO=CO concentration in exhaust, ppm paragraph (b) describes the calculation (dry). of throttle notch emissions for all hour) for each test mode. DCO2=CO2 concentration in exhaust, percent operating modes, including: idle (vi) EPM mode=PM grams/BHP–hr=MPM (dry). (normal and low, as applicable); mode/Measured BHP in mode. DHC=HC carbon concentration in exhaust, dynamic brake; and traction power Where: ppm C (dry).
VerDate 11
DNOX=NOX concentration in exhaust, in WHC=FID HC ¥ Σ(rx)(WX) Where: 6 ppm (dry). DCH3OH=(Vm)(10 )[(C1×AV1) + (C2×AV2)]/ 3 Where: DVol=Total exhaust flow rate (ft /hr) on a dry DVolMS. FID HC=Concentration of ‘‘hydrocarbon’’ 6 basis; or WCH3OH=(Vm)(10 )[(C1×AV1) + (C2×AV2)]/ 6 6 plus other organics such as methanol in =(Vm)(Wf)/((CMWf) (DHC/10 + DCO/10 + WVol exhaust as measured by the FID, ppm MS. DCO2/100)). Ci=concentration of methanol in impinger i K=Water gas equilibrium constant=3.5. carbon equivalent. (1 or 2) in mol/ml. r =FID response to oxygenated Kw=Wet to dry correction factor. x AV =Volume of absorbing reagent in species×(methanol, ethanol, or i MF=Mass flow-rate of fuel used in the engine impinger i (1 or 2) in ml. acetaldehyde). in lb/hr=Wf/453.59. DVol =Volume (standard ft3) of exhaust DX=Concentration of oxygenated MS MWC=Atomic weight of carbon=12.011. sample drawn through methanol impingers species×(methanol, ethanol, or MWCO=Molecular weight of CO=28.011. (dry). acetaldehyde) in exhaust as determined MWH=Atomic weight of hydrogen=1.008. WVol =Volume (standard ft3) of exhaust from the dry exhaust sample, ppm carbon MS MWNO2=Molecular weight of nitrogen sample drawn through methanol impingers (e.g., DCH3OH, 2(DCH3CH2OH)). dioxide (NO2)=46.008. (wet). MW =Molecular weight of atomic WX=Concentration of oxygenated O × oxygen=16.000. species (methanol, ethanol, or (E) Ethanol: T=Temperature of inlet air ( °F). acetaldehyde) in exhaust as determined MCH3CH2OH mode=(DCH3CH2OH/ from the wet exhaust sample, ppm carbon. 6 Vm=Volume of one mole of gas at standard 10 )23.035(DVol)/Vm 3 ΣDX=The sum of concentrations DX for all temperature and pressure (ft /mole). MCH3CH2OH mode = (WCH3CH2OH/ W =Mass flow-rate of fuel used in the engine, oxygenated species. 6 f Σ 10 )23.035(WVol)/Vm in grams/hr=(453.59)×(Mf lbs/hr). WX=The sum of concentrations WX for all WCO2=CO2 concentration in exhaust, percent oxygenated species. Where: 6 × (wet). (2) Nonmethane hydrocarbons: DCH3CH2OH=(Vm)(10 )[(C1 AV1) WHC=HC concentration in exhaust, ppm C + (C2×AV2)]/DVolES. MNMHC mode=(DNMHC)CMWf(DVol) WCH3CH2OH=(V )(106) [(C ×AV ) + (wet). 6 m 1 1 (10 )/Vm WVol=Total exhaust flow rate (ft3/hr) on a (C2×AV2)]/WVolES. 6 6 wet basis; or =((DNMHC/10 )(Wf)/((DCO/10 ) + Ci=concentration of ethanol in impinger i (1 6 6 6 =(Vm)(Wf)/((CMWf)(WHC/10 + WCO/10 (DCO2/100) + (DHC/10 ))) or 2) in mol/ml. WCO2/100)). MNMHC mode=(WNMHC)CMWf(WVol) AVi=Volume of absorbing reagent in 6 (10 )/Vm impinger i (1 or 2) in ml. (iii) Calculation of individual 6 6 3 =((WNMHC/10 )(Wf)/((WCO/10 ) + DVolES=Volume (standard ft ) of exhaust pollutant masses. Calculations for mass 6 (WCO2/100) + (WHC/10 ))) sample drawn through ethanol impingers emission are shown here in multiple (dry). Where: 3 forms. One set of equations is used WVolES=Volume (standard ft ) of exhaust DNMHC=FID HC ¥ (rCH4)(DCH4) when sample is analyzed dry (equations ¥ sample drawn through ethanol impingers where the concentrations are expressed WNMHC=FID HC (rCH4)(WCH4) (wet). FID HC=Concentration of ‘‘hydrocarbon’’ as DX), and the other set is used when plus other organics such as methane in (F) Formaldehyde: the sample is analyzed wet (equations exhaust as measured by the FID, ppm M =(DCH2O/106)30.026(DVol)/ where the concentrations are expressed CH2O mode carbon equivalent. Vm as WX). When samples are analyzed for r =FID response to methane. 6 CH4 MCH2O mode=(WCH2O/10 )30.026(WVol)/ some constituents dry and for some DCH4=Concentration of methane in exhaust Vm constituents wet, the wet concentrations as determined from the dry exhaust (1) If aldehydes are measured using must be converted to dry sample, ppm. impingers: concentrations, and the equations for WCH4=Concentration of methane in exhaust 6 × dry concentrations used. Also, the as determined from the wet exhaust DCH2O=(Vm)(10 )[(C1 AV1) + sample, ppm. (C2×AV2)]/DVolFS equations for HC, NMHC, CO, and NOX 6 × (B) Carbon monoxide: WCH2O=(Vm)(10 )[(C1 AV1) + have multiple forms that are × 6 (C2 AV2)]/WVolFS algebraically equivalent: An explicit MCO mode=(DCO)MWCO(DVol)/10 /Vm 6 form that requires intermediate =((MWCO(DCO/10 )(Wf)/((CMWf)(DCO/ (2) If aldehydes are measured using 6 6 calculation of Vm and DVol or WVol; 10 ) + (DCO2/100) + DHC/10 ) + cartridges: Σ 6 6 and an implicit form that uses only the ( DX/10 ))) DCH2O=(Vm)(10 )(CR×AVR)/DVolFS 6 MCO mode=(WCO)MWCO(DVol)(10 )/Vm 6 concentrations (e.g., DCO) and the mass WCH2O=(Vm)(10 )(CR×AVR)/WVolFS 6 flow rate of the fuel. For these + ((MWCO(WCO/10 )(Wf)/ 6 (3) The following definitions apply to calculations, either form may be used. ((CMWf)(WCO/10 ) + (WCO2/100) + 6 Σ 6 this paragraph (b)(2)(iii)(F): (A) Hydrocarbons and nonmethane WHC/10 ) + ( WX/10 ))) hydrocarbons. (C) Oxides of nitrogen: AVi=Volume of absorbing reagent in 6 impinger i (1 or 2) in ml. (1) Hydrocarbons. (i) For petroleum- MNOx mode=(DNOX)MWNO2(DVol)(10 )/ AVR=Volume of absorbing reagent use to fueled engines: Vm rinse the cartridge in ml. 6 =((MWNO2(DNOX/10 )(Wf)/ Ci=concentration of formaldehyde in MHC mode 6 =(DHC)CMW (DVol)(106)/V ((CMWf)(DCO/10 ) + (DCO2/100) + impinger i (1 or 2) in mol/ml. f m 6 Σ 6 6 6 (DHC/10 ) + ( DX/10 ))) CR=concentration of formaldehyde in solvent =((DHC/10 )(Wf)/((DCO/10 ) + 6 6 MNOx mode=(WNOX)MWNO2(DVol)(10 )/ rinse in mol/ml. (DCO2/100) + (DHC/10 ) + (ΣDX/ 3 6 Vm DVolFS=Volume (standard ft ) of exhaust 10 ))) 6 =((MWNO2(WNOX/10 )(Wf)/ sample drawn through formaldehyde MHC mode 6 6 ((CMWf)(WCO/10 ) + (WCO2/100) + sampling system (dry). =(WHC)CMWf(WVol)(10 )/Vm 6 Σ 6 WVol =Volume (standard ft3) of exhaust 6 6 (WHC/10 ) + ( WX/10 ))) FS =((WHC/10 )(Wf)/((WCO/10 ) + sample drawn through formaldehyde 6 Σ (D) Methanol: (WCO2/100) + (WHC/10 ) + ( (WX/ sampling system (wet). 106))) MCH3OH mode=(DCH3OH/ 106)32.042(DVol)/V (G) Acetaldehyde: (ii) For alcohol-fueled engines: m MCH3OH mode=(WCH3OH/ MCH3CHO mode=(DCH3CHO/ 6 6 DHC=FID HC ¥ Σ(rx)(DX) 10 )32.042(WVol)/Vm 10 )27.027(DVol)/Vm
VerDate 11
MCH3CHO mode=(WCH3CHO/ CR=concentration of acetaldehyde in solvent (A) Iterative calculation of conversion 6 10 )27.027(WVol)/Vm rinse in mol/ml. factor. The conversion factor KW is DVol =Volume (standard ft3) of exhaust (1) If aldehydes are measured using AS calculated from the fractional volume of sample drawn through acetaldehyde water in the exhaust on a dry basis impingers: sampling system (dry). 6 3 (DH2O=volume of water in exhaust/dry DCH3CHO=(V )(10 )[(C ×AV ) + (C × WVolAS=Volume (standard ft ) of exhaust m 1 1 2 volume of exhaust). Precise calculation AV2)]/DVolAS sample drawn through acetaldehyde of the conversion factor KW must be 6 × × sampling system (wet). WCH3CHO=(Vm)(10 )[(C1 AV1) + C2 done by iteration, since it requires the AV2)]/WVolAS (iv) Conversion of wet concentrations dry concentration of HC, but HC (2) If aldehydes are measured using to dry concentrations. Wet emissions are measured wet. cartridges: concentrations are converted to dry (1) The conversion factor is calculated 6 × concentrations using the following DCH3CHO=(Vm)(10 )(CR AVR)/DVolAS by first assuming DHC=WHC to 6 × equation: WCH3CHO=(Vm)(10 )(CR AVR)/WVolAS calculate DVol: (3) The following definitions apply to DX=KW WX 6 DVol=(Vm)(Wf)/((CMWf)(DHC/10 + this paragraph (b)(2)(iii)(G): Where: DCO/106 + DCO2/100)) AVi=Volume of absorbing reagent in WX is the concentration of species X on a impinger i (1 or 2) in ml. wet basis. (2) This estimate is then used in the following equations to calculate DVolair, AVR=Volume of absorbing reagent use to DX is the concentration of species X on a dry rinse the cartridge in ml. basis. then DH2O, then KW, which allows DHC Ci=concentration of acetaldehyde in impinger KW is a conversion factor=WVol/DVol=1 + to be determined more accurately from i (1 or 2) in mol/ml. DH2O. WHC:
α DCO2 + DCO 26 ()() 10 10 Y DVolair 1 DH2 O = + DCO 2 DVol 1+ ()()()DCO210 K 4
3 Where: Y=Water volume concentration in intake air, DVolair=Air intake flow rate (ft /hr) on a dry volume fraction (dry). basis, measured, or calculated as:
DCO2 αα DCO DVol=− DVol1 −+05. air 1026 4 10 4
(3) The calculations are repeated in KW between iterations is less than instead of the calculation in paragraph using this estimate of DHC. If the new one percent. (b)(2)(iv)(A) of this section: estimate for KW is not within one (B) Alternate calculation of DH2O percent of the previous estimate, the (approximation). The following iteration is repeated until the difference approximation may be used for DH2O
DCO2 DCO α + 1026 10 1 DH2 O = + ()YDVol() Ratio DCO 2 1+ ()()()DCO210 K 4
Where:
DVol DCO2 αα DCO DVol ==−air 1 −+05. ratio DVol 1026 4 10 4
Y=Water volume concentration in intake air, pollutant (HC, NOX, CO2, CO, CH4 Where: volume fraction (dry). CH3OH, CH3CH2OH, CH2O, CH3CH2O) x designates the pollutant (e.g., HC), Vmix is for each operating mode for bag the total diluted exhaust volumetric flow (3) Mass Emissions—Dilute exhaust 3 measurements. For dilute exhaust measurements and diesel continuously rate (ft /hr), Densityx is the specified heated sampling system measurements density of the pollutant in the gas phase (g/ measurements mass emissions (grams 3 is determined from the following ft ), Xconc is the fractional concentration of per hour) of each species for each mode: 6 6 equation: pollutant x (i.e., ppm/10 , ppmC/10 , or %/ (i) General equations. The mass 100), and Vf is the fraction of the raw emission rate, Mx mode (g/hr) of each Mx mode=(Vmix)(Densityx)(Xconc)/(Vf) exhaust that is diluted for analysis.
VerDate 11
(ii) The following abbreviations and (B) MNOx mode = Oxides of nitrogen COdm=Carbon monoxide concentration of the equations apply to paragraphs (b)(3)(i) emissions, in grams per hour by mode, dilution air sample as measured, in ppm. through (b)(3)(iii)(J) of this section: are calculated using the following (2) If a CO instrument which meets (A) DF=Dilution factor, which is the equations: the criteria specified in § 86.1311 of this volumetric ratio of the dilution air to the MNOx mode=(Vmix) (DensityNO2) (NOxconc/ chapter is used and the conditioning 6 raw exhaust sample for total dilution, 10 ) /Vf column has been deleted, COem must be calculated as: NOxconc=(NOxe ¥ NOxd(1 ¥ (1/DF))) substituted directly for COe, and COdm must be substituted directly for CO − Where: d. WCO22 WCO d (E) MCH4 mode=Methane emissions DF = −1 DensityNO2=Density of oxides of nitrogen is − 3 3 corrected for background, in gram per WCO22ed WCO 54.16 g/ft (1.913 kg/m ), assuming they are in the form of nitrogen dioxide, at hour by mode, are calculated using the Where: standard conditions. following equations: WCO2=Carbon dioxide concentration of the NOxconc=Oxides of nitrogen concentration of MCH4 mode=(Vmix) (DensityCH4) (CH4conc/ 6 raw exhaust sample, in percent (wet). the dilute exhaust sample corrected for 10 ) /Vf background, in ppm. WCO2e=Carbon dioxide concentration of the CH4conc=CCH4e ¥ CCH4d(1 ¥ (1/DF)) dilute exhaust sample, in percent (wet). NOxe=Oxides of nitrogen concentration of WCO2d=Carbon dioxide concentration of the the dilute exhaust bag sample as measured, Where: 3 dilution air, in percent (wet). in ppm. DensityCH4=Density of methane is 18.89 g/ft ° ° (B) V =Diluted exhaust volumetric NOxd=Oxides of nitrogen concentration of at 68 F (20 C) and 760 mm Hg (101.3kPa) mix the dilution air as measured, in ppm. pressure. flow rate in cubic feet per hour CH4conc=Methane concentration of the dilute corrected to standard conditions (528°R, (C) MCO2 mode=Carbon dioxide emissions, in grams per hour by mode, exhaust corrected for background, in ppm. and 760 mm Hg). CCH4e=Methane concentration in the dilute (C) Vf=Fraction of the total raw are calculated using the following exhaust, in ppm. exhaust that is diluted for analysis. equations: CCH4d=Methane concentration in the dilution 2 6 =((CO2conc/10 ) + (COconc/10 ) + (HCconc/ MCO2 mode=(Vmix) (Density CO2) (CO2conc/ air, in ppm. 6 2 10 ))(Vmix)(CMWf)/Vm/Mf 10 ) /Vf (F) MCH3OH mode=Methanol emissions ¥ ¥ (iii) Calculation of individual CO2conc=CO2e CO2d(1 (1/DF)) corrected for background, in gram per pollutants. Where: hour by mode, are calculated using the (A) MHC mode=Hydrocarbon emissions, Density CO2=Density of carbon dioxide is following equations: in grams per hour by mode, are 3 3 51.81 g/ft (1.830 kg/m ), at standard MCH3OH mode=(Vmix)(DensityCH3OH) calculated using the following conditions. (CH OH /106)/V equations: 3 conc f CO2conc=Carbon dioxide concentration of the CH3OHconc=CCH3OHe ¥ CCH3OHd(1 ¥ (1/ 6 MHC mode=(Vmix)(DensityHC)(HCconc/10 )/ dilute exhaust sample corrected for DF)) background, in percent. ¥ 2 Vf CCH3OHe=((3.817)(10 )(TEM) HCconc=HCe ¥ (HCd)(1 ¥ (1/DF)) CO2e=Carbon dioxide concentration of the (((CS1)(AVS1)) + (CS2) (AVS2)))/ HCe=FID HCe ¥ Ξ(rx)(Xe) dilute exhaust bag sample, in percent. CO =Carbon dioxide concentration of the ((PB)(VEM)) 2d –2 Where: dilution air as measured, in percent. CCH3OHd=((3.817)(10 )(TDM)(((CD1) DensityHC=Density of hydrocarbons=16.42 g/ (AVD1)) + (CD2) (AVD2)))/((PB)(VDM)) 3 (D)(1) MCO mode=Carbon monoxide ft (0.5800 kg/m3) for #l petroleum diesel 3 Where: fuel, 16.27 g/ft (0.5746 kg/m3) for #2 emissions, in grams per hour by mode, diesel, and 16.33 g/ft3 (0.5767 kg/m3) for are calculated using the following DensityCH3OH=Density of methanol is 37.71 g/ 3 3 ° ° other fuels, assuming an average carbon to equations: ft (1.332 kg/m ), at 68 F (20 C) and 760 6 mm Hg (101.3kPa) pressure. hydrogen ratio of 1:1.93 for #1 petroleum MCO mode=(Vmix)(DensityCO)(COconc/10 )/ diesel fuel, 1:1.80 for #2 petroleum diesel CH3OHconc=Methanol concentration of the Vf fuel, and 1:1.85 for hydrocarbons in other dilute exhaust corrected for background, in ¥ ¥ fuels at standard conditions. COconc=COe COd(1 (1/DF)) ppm. CCH3OHe=Methanol concentration in the HCconc=Hydrocarbon concentration of the COd=(1 ¥ 0.000323R)COdm dilute exhaust sample corrected for dilute exhaust, in ppm. background, in ppm carbon equivalent Where: CCH3OHd=Methanol concentration in the (i.e., equivalent propane×3). DensityCO=Density of carbon monoxide is dilution air, in ppm. HC =Hydrocarbon concentration of the dilute 32.97 g/ft3 (1.164 kg/m3), at standard TEM=Temperature of methanol sample e ° exhaust bag sample, or for diesel conditions. withdrawn from dilute exhaust, R. continuous heated sampling systems, COconc=Carbon monoxide concentration of TDM=Temperature of methanol sample average hydrocarbon concentration of the the dilute exhaust sample corrected for withdrawn from dilution air, °R. dilute exhaust sample as determined from background, water vapor, and CO2 PB=Barometric pressure during test, mm Hg. the integrated HC traces, in ppm carbon extraction, ppm. VEM=Volume of methanol sample withdrawn 3 equivalent. For petroleum-fueled engines, COe=Carbon monoxide concentration of the from dilute exhaust, ft . HCe is the FID measurement. For methanol- dilute exhaust sample volume corrected for VDM=Volume of methanol sample withdrawn fueled and ethanol-fueled engines: water vapor and carbon dioxide extraction, from dilution air, ft 3. FID HCe=Concentration of hydrocarbon plus in ppm. CS=GC concentration of aqueous sample µ methanol, ethanol and acetaldehyde in COe=(1 ¥ (0.01 + 0.005/α)CO2e ¥ drawn from dilute exhaust, g/ml. dilute exhaust as measured by the FID, 0.000323RH)COem, where α is the CD=GC concentration of aqueous sample ppm carbon equivalent. hydrogen to carbon ratio as measured for drawn from dilution air, µg/ml. rx=FID response to oxygenated species x the fuel used. AVS=Volume of absorbing reagent (deionized (methanol, ethanol or acetaldehyde). COem=Carbon monoxide concentration of the water) in impinger through which Xe=Concentration of species x (methanol, dilute exhaust sample as measured, in methanol sample from dilute exhaust is ethanol or acetaldehyde) in dilute exhaust ppm. drawn, ml. as determined from the dilute exhaust RH = Relative humidity of the dilution air, AVD=Volume of absorbing reagent (deionized sample, ppm carbon. percent. water) in impinger through which HCd=Hydrocarbon concentration of the COd=Carbon monoxide concentration of the methanol sample from dilution air is dilution air as measured, in ppm carbon dilution air corrected for water vapor drawn, ml. equivalent. extraction, in ppm. 1=first impinger.
VerDate 11
2=second impinger. VAE=Volume of sampling solution for NMHCe=FID HCe ¥ (rm)(CCH4e) ¥ (G) M =Ethanol emissions dilute exhaust formaldehyde sample, ml. NMHCd=FID HCd (rm)(CCH4d) C2H5OH mode Q = Ratio of molecular weights of corrected for background, in gram per formaldehyde to its DNPH derivative = Where: hour by mode, are calculated using the 0.1429. DensityNMHC=Density of nonmethane 3 3 following equations: TEF=Temperature of formaldehyde sample hydrocarbons=16.42 g/ft (0.5800 kg/m ) ° for # 1 petroleum diesel fuel, 16.27 g/ft3 MCH3CH2OH mode=(Vmix)(DensityCH3CH2OH) withdrawn from dilute exhaust, R. 3 6 (0.5746 kg/m ) for #2 diesel, and 16.33 for ((CH3CH2OHconc/10 ))/Vf VSE=Volume of formaldehyde sample CH CH OH =C ¥ withdrawn from dilute exhaust, ft3. other fuels, assuming an average carbon to 3 2 conc CH3CH2OHe hydrogen ratio of 1:1.93 for #1 petroleum CCH3CH2OHd(1 ¥ (1/DF)) PB=Barometric pressure during test, mm ¥ Hg. diesel fuel, 1:1.80 for #2 petroleum diesel CCH3CH2OHd=((2.654)(10 fuel, and 1:1.85 for nonmethane 2 CFDA=Concentration of DNPH derivative of )(TDM)(((CD1)(AVD1)) + (CD2)(AVD2)))/ hydrocarbons in other fuels at standard ((PB)(VDM)) formaldehyde from dilution air sample in ¥ sampling solution, µg/ml. conditions. CCH3CH2OHe=((2.654)(10 NMHCconc=Nonmethane hydrocarbon 2 VAA=Volume of sampling solution for )(TEM)(((CS1)(AVS1)) + (CS2)(AVS2)))/ dilution air formaldehyde sample, ml. concentration of the dilute exhaust sample ((PB)(VEM)) corrected for background, in ppm carbon TDF=Temperature of formaldehyde sample × Where: withdrawn from dilution air, °R. equivalent (i.e., equivalent propane 3). NMHCe=Nonmethane hydrocarbon Density =Density of ethanol is 54.23 g/ VSA=Volume of formaldehyde sample C2H5OH concentration of the dilute exhaust bag ft 3 (1.915 kg/m 3), at 68 °F (20 °C) and 760 withdrawn from dilution air, ft3. sample: mm Hg (101.3kPa) pressure. (I) M =Acetaldehyde FID HCe=Concentration of hydrocarbons in CH CH OH =Ethanol concentration of the CH3CHO mode 3 2 conc dilute exhaust as measured by the FID, dilute exhaust corrected for background, in emissions corrected for background, in grams per hour by mode, are calculated ppm carbon equivalent. ppm. rm=FID response to methane. CCH3CH2OHe=Ethanol concentration in the using the following equations: CCH4e=Concentration of methane in dilute dilute exhaust, in ppm. MCH3CHO mode= exhaust as determined from the dilute CCH3CH2OHd=Ethanol concentration in the (Vmix)(DensityCH3CHO)((CH3CHOconc/ exhaust sample. 6 dilution air, in ppm. 10 )/Vf ¥ NMHCd=Nonmethane hydrocarbon TEM= Temperature of ethanol sample CH3CHOconc=CCH3CHOe CCH3CHOd(1— concentration of the dilution air: ° withdrawn from dilute exhaust, R. (1/DF)) FID HCd=Concentration of hydrocarbons in ¥ 2 TDM=Temperature of ethanol sample CCH3CHOe=((2.774)(10 ) dilute exhaust as measured by the FID, ° withdrawn from dilution air, R. (CADE)(VAE)(Q)(TEF))/((VSE)(PB) ppm carbon equivalent. ¥ 2 PB=Barometric pressure during test, mm Hg. CCH3CHOd=((2.774)(10 ) rm=FID response to methane. VEM=Volume of ethanol sample withdrawn (CADA)(VAA)(Q)(TDF))/(VSA)(PB) CCH4d=Concentration of methane in dilute from dilute exhaust, ft 3. exhaust as determined from the dilute Where: VDM=Volume of ethanol sample withdrawn exhaust sample, ppm. from dilution air, ft 3. Density CH3CHO=Density of acetaldehyde is 3 3 ° ° (4) Particulate exhaust emissions. The CS=GC concentration of aqueous sample 51.88 g/ft (1.833 kg/m ), at 68 F (20 C) drawn from dilute exhaust, µg/ml. and 760 mmHg (101.3 kPa) pressure. mass of particulate for a test mode CD=GC concentration of aqueous sample CH3CHOconc=Acetaldehyde concentration of determined from the following drawn from dilution air, µg/ml. the dilute exhaust corrected for equations when a heat exchanger is AVS= Volume of absorbing reagent (deionized background, ppm. used (i.e., no flow compensation), and water) in impinger through which ethanol CCH3CHOe=Acetaldehyde concentration in when background filters are used to sample from dilute exhaust is drawn, ml. dilute exhaust, ppm. correct for background particulate C =Acetaldehyde concentration in AVD=Volume of absorbing reagent (deionized CH3CHOd levels: water) in impinger through which ethanol dilution air, ppm. MPM mode=Particulate emissions, grams sample from dilution air is drawn, ml. CADE=Concentration of DNPH derivative of per hour by mode. 1=first impinger. acetaldehyde from dilute exhaust sample µ MPM mode=(WVol)(PMconc)(1 + 2=second impinger. in sampling solution, g/ml. V =Volume of sampling solution for dilute DF)=(Vmix)(PMconc)/Vf AE ¥ ¥ (H) MCH2O mode=Formaldehyde exhaust acetaldehyde sample, ml. PMconc=PMe PMd(1 (1/DF)) 3 emissions corrected for background, in Q=Ratio of molecular weights of PMe=MPMe/Vsampe/10 3 gram per hour by mode, are calculated acetaldehyde to its DNPH derivative PMd=MPMd/Vsampd/10 using the following equations: =0.182 Where: TEF=Temperature of acetaldehyde sample MCH2O mode=(Vmix)(DensityCH2O) PMconc=Particulate concentration of the 6 withdrawn from dilute exhaust, °R. ((CH2Oconc/10 )/Vf diluted exhaust sample corrected for ¥ ¥ V =Volume of acetaldehyde sample CH2Oconc=CCH2Oe CCH2Od(1 (1/DF)) SE background, in g/ft 3 ¥2 withdrawn from dilute exhaust, ft3. CCH2Oe=((4.069)(10 )(CFDE)(VAE) M =Measured mass of particulate for the P =Barometric pressure during test, mm Hg. PMe (Q)(TEF))/((VSE)(PB) B exhaust sample, in mg, which is the ¥ C Concentration of DNPH derivative of CCH2Od=((4.069)(10 ADA difference in filter mass before and after 2 acetaldehyde from dilution air sample in )(CFDA)(VAA)(Q)(TDF))/(VSA)(PB) µ the test. sampling solution, g/ml. M =Measured mass of particulate for the Where: PMd VAA=Volume of sampling solution for dilution air sample, in mg, which is the DensityCH2O=Density of formaldehyde is dilution air acetaldehyde sample, ml. difference in filter mass before and after 3 3 ° ° 35.36 g/ft (1.249 kg/m ), at 68 F (20 C) TDF=Temperature of acetaldehyde sample the test. ° and 760 mmHg (101.3 kPa) pressure. withdrawn from dilution air, R. Vsampe=Total wet volume of sample removed CH2Oconc=Formaldehyde concentration of VSA=Volume of acetaldehyde sample from the dilution tunnel for the exhaust the dilute exhaust corrected for withdrawn from dilution air, ft3. particulate measurement, cubic feet at background, ppm. (J) M =Nonmethane standard conditions. C =Formaldehyde concentration in NMHC mode CH2Oe hydrocarbon emissions, in grams per Vsampd=Total wet volume of sample removed dilute exhaust, ppm. from the dilution tunnel for the dilution air hour by mode. CCH2Od=Formaldehyde concentration in particulate measurement, cubic feet at dilution air, ppm. MNMHC mode=(Vmix)(DensityNMHC) standard conditions. 6 CFDE=Concentration of DNPH derivative of ((NMHCEconc/10 ))/Vf DF=Dilution factor, which is the volumetric formaldehyde from dilute exhaust sample in NMHCconc=NMHCe—(NMHCd)(1 ¥ (1/ ratio of the dilution air to the raw exhaust sampling solution, µg/ml. DF)) sample, calculated as:
VerDate 11
− ° WCO22 WCO d (5) The water-vapor volume the ambient temperature ( C), where DF = −1 intake manifold air temperature is not WCO22− WCO concentration on a dry basis of the ed engine intake air (Y) is defined as: available). (c) Humidity calculations. (1) The Y=((H)(Mair)/(MH2O)=Pv/(BARO ¥ Pv) (e) Other calculations. Calculations following abbreviations (and units) (d) NO correction factor. (1) NO other than those specified in this section apply to paragraph (b) of this section: X X emission rates (MNOx mode) shall be may be used with the advance approval BARO=barometric pressure (Pa). adjusted to account for the effects of of the Administrator. H=specific humidity, (g H2O/g of dry air). humidity and temperature by [FR Doc. 01–55530 Filed 11–23–01; 8:45 am] KH=conversion factor=0.6220 g H2O/g dry air. multiplying each emission rate by KNOx, Mair=Molecular weight of air=28.9645. Editorial Note: On Monday, November 26, MH2O=Molecular weight of water=18.01534. which is calculated from the following 2001, this rule document FR Doc. 01-55530 PDB=Saturation vapor pressure of water at the equations: appeared on 66 FR 58953–58964. Due to 2 1/2 dry bulb temperature (Pa). KNOx=(K)(1 + (0.25(logK) ) ) additional text being inadvertently added, it PDP=Saturation vapor pressure of water at the K=(KH)(KT) is being reprinted in its entirety. dewpoint temperature (Pa). KH=[C1 + C2(exp(( ¥ 0.0143)(10.714))]/ [FR Doc. R1–55530 Filed 11–28–01; 8:45 am] Pv=Partial pressure of water vapor (Pa). [C1 + C2(exp(( ¥ 0.0143)(1000H))] BILLING CODE 1505–01–D PWB=Saturation vapor pressure of water at C1= ¥ 8.7 + 164.5exp( ¥ 0.0218(A/ the wet bulb temperature (Pa). F)wet) TDB=Dry bulb temperature (Kelvin). C2=130.7 + 3941exp( ¥ 0.0248(A/F)wet) FEDERAL RESERVE SYSTEM TWB=Wet bulb temperature (Kelvin). Y=Water-vapor volume concentration. Where: (2) The specific humidity on a dry (A/F)wet=Mass of moist air intake divided by [Docket No. R–1115] mass of fuel intake. basis of the intake air (H) is defined as: Federal Reserve Bank Services ¥ KT=1/[1–0.017(T30-TA)] for tests conducted at H=((KH) (Pv)/(BARO Pv)) ambient temperatures below 30 °C. (3) The partial pressure of water vapor KT=1.00 for tests conducted at ambient Correction ° may be determined using a dew point temperatures at or above 30 C. In notice document 01–27779 device. In that case: T30=The measured intake manifold air beginning on page 56310 in the issue of temperature in the locomotive when Pv=PDP operated at 30 °C (or 100 °C, where intake Wednesday, November 7, 2001, make (4) The percent of relative humidity manifold air temperature is not available). the following corrections: (RH) is defined as: TA=The measured intake manifold air 1. On page 56310, in Table 1, the title RH=(Pv/PDB)100 temperature in the locomotive as tested (or should have appeared as follows:
TABLE 1.—PRO FORMA COST AND REVENUE PERFORMANCE a
2. On page 56315, in Table 5, in the should read, ‘‘Estimated 2001 growth 3. On the same page, Table 7 should fourth column, the column title, (percent)’’. have appeared as follows: ‘‘Estimated growth 2001 (percent)’’
TABLE 7.—SELECTED CHECK FEES
2001 Current price ranges 2002 price ranges
Items: (per item) (per item) Forward-processed City ...... $0.001 to 0.079 ...... $0.001 to 0.079 RCPC ...... $0.003 to 0.200 ...... $0.003 to 0.300 Forward fine-sort City ...... $0.003 to 0.021 ...... $0.003 to 0.021 RCPC ...... $0.003 to 0.036 ...... $0.004 to 0.036 Qualified returned checks City ...... $0.08 to 0.85 ...... $0.08 to 0.85 RCPC ...... $0.10 to 1.15 ...... $0.10 to 1.15 Raw returned checks City ...... $1.05 to 5.00 ...... $1.05 to 5.00 RCPC ...... $1.05 to 5.00 ...... $1.05 to 5.00 Cash letters: (per cash letter) (per cash letter) Forward-processed a ...... $2.00 to 32.00 ...... $2.25 to 36.00 Forward fine-sort ...... $3.00 to 14.00 ...... $3.50 to 14.00 Returned checks: raw/qualified ...... $2.00 to 14.00 ...... $2.00 to 14.50 Payor bank services: ...... (Fixed) (per item) (Fixed) (per item) MICR information ...... $2–15 $0.0020–0.0070 ...... $2–15 $0.0030–0.0110 Electronic presentment ...... $1–11 $0.0005–0.0100 ...... $1–12 $0.0005–0.0100 Truncation ...... $2–7 $0.0020–0.0180 ...... $2–7 $0.0040–0.0180 Image capture ...... $2–15 $0.0020–0.02 ...... $2–15 $0.002–0.02 Image delivery ...... Varies b $0.001–0.008 ...... Varies b $0.002–0.008 Image archive ...... N/A $0.001–0.01 ...... N/A $0.001–0.01 Image retrieval ...... N/A $0.3–5 ...... N/A $0.3–5 Note: Bold indicates change from 2001 prices. a Cash letter fees for forward-processed items transported on Check Relay for 2001 and 2002 include a fifty-cent surcharge due to higher fuel costs.
VerDate 11
b Fixed fee varies by media type.
4. On page 56319, in Table 10, the 5. On page 56321, in the second 6. On page 56323, Table 13 should line below the title, ‘‘In millions of column, in the footnote, in the second have appeared as follows: dollars’’ should read, ‘‘[In millions of to the last line, ‘‘shore’’ should read, dollars]’’. ‘‘short’’.
TABLE 13.—COMPARISON OF PRO FORMA BALANCE SHEETS FOR FEDERAL RESERVE PRICED SERVICES [Millions of dollars—average for year]
2002 2001
Short-term assets: Imputed reserve requirement on clearing balances27 ...... $ 678.5 $ 742.4 Investment in marketable securities27 ...... 5,473.0 6,681.9 Receivables ...... 81.7 77.3 Materials and supplies ...... 3.8 3.6 Prepaid expenses ...... 27.8 23.4 Items in process of collection28 ...... 4,102.8 3,606.7
Total short-term assets ...... 10,367.6 11,135.3 Long-term assets: Premises29 ...... 431.1 417.5 Furniture and equipment ...... 177.7 185.5 Leasehold improvements and long-term prepayments ...... 70.4 73.9 Prepaid pension costs ...... 800.1 718.5
Total long-term assets ...... 1,479.3 1,395.4
Total assets ...... $11,846.9 $12,530.7
Short-term liabilities: Clearing balances and balances arising from early credit of uncollected items ...... $ 7,377.5 $ 7,424.3 Deferred credit items28 ...... 3,509.8 3,606.7 Short-term debt30 ...... 0.0 18.9 Short-term payables ...... 103.9 85.4
Total short-term liabilities ...... 10,991.2 11,135.3 Long-term liabilities: Postemployment/retirement benefits ...... 263.4 251.9 Long-term debt30 ...... 0.0 479.1
Total long-term liabilities ...... 263.4 731.0
Total liabilities 11,254.6 11,866.3 Equity 592.3 664.4
Total liabilities and equity ...... $11,846.9 $12,530.7
27Funded with clearing balances. 28Represents float costs that are directly estimated at the service level. 29Includes allocations of Board of Governors’ assets to priced services of $1.1 million for 2002 and $0.7 million for 2001. 30No debt is imputed in 2002 because clearing balances are used as an available funding source.
VerDate 11
7. On page 56324, Table 14 should have appeared as follows:
TABLE 14.—PORTION OF CLEARING BALANCES USED TO FUND PRICED SERVICES ASSETS IN 2002 [Dollar amounts in millions] A. Short-term asset funding: Short-term assets to be funded: Receivables ...... $81.7 Materials and supplies ...... 3.8 Prepaid expenses ...... 27.8
Total short-term assets to be funded ...... 113.3 Short-term funding sources: Short-term payables ...... 103.9
Portion of short-term assets funded with imputed short-term debt or non-core clearing bal- ances31 ...... 9.4 B. Long-term asset funding: Long-term assets to be funded: Premises ...... $431.1 Furniture and equipment ...... 177.7 Leasehold improvements and long-term prepayments ...... 70.4 Prepaid pension cost ...... 800.1
Total long-term assets to be funded ...... $1,479.3 Long-term funding sources: Postemployment/retirement benefits liability ...... 263.4 Imputed equity 32 ...... 592.3
855.7
Portion of long-term assets funded with imputed long-term debt or core clearing balances31 ...... 623.6
C. Total clearing balances used for funding priced-services assets ...... $633.0 31 Clearing balances shown on table 13 are available for funding priced-services assets. Using these balances reduces the amount available for investment in Treasury bills for the net income on clearing balances calculation. Short-term assets are funded with non-core clearing balances. Long-term assets are funded with core clearing balances; a total of $4 billion in balances is available for this purpose. No short- or long-term debt is imputed. 32 See table 16 for calculation of required imputed equity amount.
8. On page 56325, in Table 15, under 9. On the same page, in Table 16, the the Total column, in the first entry, title should have appeared as follows: ‘‘$78.5’’ should read, ‘‘$678.5’’.
TABLE 16.—DERIVATION OF THE 2002 AND 2001 PSAF [Dollar amounts in millions]
10. On page 56326, in the continued 11. On the same page, in Table 17, in table, in the fees column, ‘‘ 5240.00’’ Table 16, in the first entry, omit ‘‘Total the Weighted assests column, in the first should read, ‘‘40.0052’’. equity’’. entry, ‘‘0.0’’ should read, ‘‘$0.0’’. 13. On page 56329, the table title 12. On page 56328, in the ‘‘Noncash should appear as follows: Collection Fee Schedule—Continued’’
TEST AND CONTINGENCY OPTIONS61
VerDate 11
[FR Doc. C1–27779 Filed 11–28–01; 8:45 am] DEPARTMENT OF TRANSPORTATION Wednesday, November 21, 2001, make BILLING CODE 1505–01–D the following correction: Federal Aviation Administration SFAR 92–2 [Corrected] 14 CFR Part 121 On page 58653, in the third column, in paragraph 4, in the 10th line, after [Docket No. FAA–2001–10770;SFAR 92–2] ‘‘the’’ should read, ‘‘flightcrew RIN 2120–AH54 compartment shall be available to any crewmember during flight, except for’’. Flightcrew Compartment Access and [FR Doc. C1–29280 Filed 11–28–01; 8:45 am] Door Designs BILLING CODE 1505–01–D Correction In rule document 01–29280 beginning on page 58650 in the issue of
VerDate 11
Part II
Department of the Treasury Office of the Comptroller of the Currency Office of Thrift Supervision 12 CFR Parts 3 and 567 Federal Reserve System 12 CFR Parts 208 and 225 Federal Deposit Insurance Corporation 12 CFR Part 325
Risk-Based Capital Guidelines; Capital Adequacy Guidelines; Capital Maintenance: Capital Treatment of Recourse, Direct Credit Substitutes and Residual Interests in Asset Securitizations; Final Rules
VerDate 11
DEPARTMENT OF THE TREASURY match the risk-based capital Insurance Corporation, 550 17th Street, requirement more closely to a banking NW, Washington, DC 20429. Office of the Comptroller of the organization’s relative risk of loss for OTS: Michael D. Solomon, Senior Currency certain positions in asset securitizations. Program Manager for Capital Policy, The final rule does not include the (202) 906–5654, David Riley, Project 12 CFR Part 3 proposed requirement that the sponsor Manager, Supervision Policy, (202) 906– of a revolving credit securitization that 6669; Teresa Scott, Counsel (Banking [Docket No. 01–24] involves an early amortization feature and Finance), (202) 906–6478, or Karen RIN 1557–AB14 hold capital against the amount of assets Osterloh, Assistant Chief Counsel, (202) under management. 906–6639, Office of Thrift Supervision, FEDERAL RESERVE SYSTEM This rule is intended to result in a 1700 G Street, NW, Washington, DC more consistent treatment for similar 20552. 12 CFR Parts 208 and 225 transactions among the agencies, more SUPPLEMENTARY INFORMATION: consistent regulatory capital treatment [Regulations H and Y; Docket No. R–1055] I. Introduction for certain transactions involving A. Asset Securitization FEDERAL DEPOSIT INSURANCE similar risk, and capital requirements B. Residual Interests CORPORATION that more closely reflect a banking C. The Combined Final Rule organization’s relative exposure to II. Background credit risk. A. Asset Securitization 12 CFR Part 325 B. Risk Management of Exposures Arising DATES: This rule is effective January 1, from Securitization Activities RIN 3064–AB31 2002. Any transactions settled on or C. Current Risk-Based Capital Treatment of after January 1, 2002, are subject to this Recourse, Residual Interests and Direct DEPARTMENT OF THE TREASURY final rule. Banking organizations that Credit Substitutes enter into transactions before January 1, 1. Recourse and Retained Residual Office of Thrift Supervision 2002, may elect early adoption, as of Interests November 29, 2001, of any provision of 2. Direct Credit Substitutes 12 CFR Part 567 3. Concerns Raised by Current Capital the final rule that results in a reduced Treatment [Docket No. 2001–68] capital requirement. Conversely, III. Description of the Final Rule: Treatment banking organizations that enter into of Recourse, Residual Interests and RIN 1550–AB11 transactions before January 1, 2002, that Direct Credit Substitutes result in increased capital requirements A. The General Approach Taken in the Risk-Based Capital Guidelines; Capital under the final rule may delay the Final Rule Adequacy Guidelines; Capital application of this rule to those 1. Combined Final Rule Maintenance: Capital Treatment of transactions until December 31, 2002. 2. Managed Assets Capital Charge Recourse, Direct Credit Substitutes 3. Capital Charge for Residual Interests and Residual Interests in Asset FOR FURTHER INFORMATION CONTACT: a. Concentration Limit Capital Charge Securitizations OCC: Amrit Sekhon, Risk Expert, b. Dollar-for-Dollar Capital Charge Capital Policy Division, (202) 874–5211; B. Definitions and Scope of the Final Rule AGENCIES: Office of the Comptroller of Laura Goldman, Senior Attorney, 1. Recourse the Currency, Treasury; Board of Legislative and Regulatory Activities 2. Direct Credit Substitute Governors of the Federal Reserve Division, (202) 874–5090, Office of the 3. Residual Interests System; Federal Deposit Insurance Comptroller of the Currency, 250 E 4. Credit-Enhancing Interest-Only Strips Corporation; and Office of Thrift Street, SW, Washington, DC 20219. 5. Credit Derivatives Board: Thomas R. Boemio, Senior 6. Credit-Enhancing Representations and Supervision, Treasury. Warranties ACTION: Final rule. Supervisory Financial Analyst, (202) 7. Clean-up Calls 452–2982, Arleen Lustig, Supervisory 8. Loan Servicing Arrangements SUMMARY: The Office of the Comptroller Financial Analyst, (202) 452–2987, or 9. Interaction with Market Risk Rule of the Currency (OCC), the Board of Barbara Bouchard, Assistant Director 10. Reservation of Authority Governors of the Federal Reserve (202) 452–3072, Division of Banking 11. Alternative Capital Calculation for System (Board), the Federal Deposit Supervision and Regulation. For the Small Business Obligations Insurance Corporation (FDIC), and the hearing impaired only, C. Ratings-based Approach: Traded and Office of Thrift Supervision (OTS) Telecommunication Device for the Deaf Non-traded Positions (collectively, the agencies) are changing (TDD), (202) 263–4869, Board of D. Unrated Positions 1. Use of Banking Organizations’ Internal their regulatory capital standards to Governors of the Federal Reserve Risk Ratings address the treatment of recourse System, 20th Street and Constitution 2. Ratings of Specific Positions in obligations, residual interests and direct Avenue, NW, Washington, DC 20551. Structured Financing Programs credit substitutes that expose banks, FDIC: Robert F. Storch, Chief, 3. Use of Qualifying Rating Software bank holding companies, and thrifts Accounting Section, Division of Mapped to Public Rating Standards (collectively, banking organizations) Supervision, (202) 898–8906; Jason C. IV. Effective Date of the Final Rule primarily to credit risk. The final rule Cave, Senior Capital Markets Specialist, V. Miscellaneous Changes treats recourse obligations and direct Division of Supervision, (202) 898– VI. Regulatory Analysis credit substitutes more consistently than 3548; Miguel D. Browne, Manager, A. Regulatory Flexibility Act B. Paperwork Reduction Act the agencies’ current risk-based capital Policy, Risk Management and C. Executive Order 12866 standards and adds new standards for Operations, Division of Supervision, D. Unfunded Mandates Reform Act of 1995 the treatment of residual interests, (202) 898–6789; Marc J. Goldstrom, E. Plain Language including a concentration limit for Counsel, (202) 898–8807 or Michael B. credit-enhancing interest-only strips. In Phillips, Counsel, (202) 898–3581, I. Introduction addition, the agencies use credit ratings Supervision and Legislation Branch, The agencies are amending their and certain alternative approaches to Legal Division, Federal Deposit regulatory capital standards to change
VerDate 11
the treatment of certain recourse or replace the proposed ratings-based Activities 4 in December 1999 obligations, direct credit substitutes, approach. (Securitization Guidance), which residual interests and other positions in On March 8, 2000, the agencies addresses the supervisory concerns with securitized transactions that expose published a third notice of proposed the risk management and oversight of 5 banking organizations to credit risk. rulemaking on recourse and direct securitization programs. The This final rule amends the agencies’ credit substitutes. 65 FR 12320, March Securitization Guidance highlighted the regulatory capital standards to align 8, 2000 (2000 Recourse Proposal). The most significant risks associated with more closely the risk-based capital 2000 Recourse Proposal built on the asset securitization, emphasized the treatment of recourse obligations and ratings-based approach and eliminated agencies’ concerns with certain residual direct credit substitutes, to vary the several options from the 1997 Proposal, interests generated from the capital requirements for positions in including the modified gross-up securitization and sale of assets, and set securitized transactions (and certain approach, the ratings benchmark forth fundamental risk management other credit exposures) according to approach, and the historical losses practices for banking organizations that their relative risk, and to require capital approach. The 2000 Recourse Proposal engage in securitization activities. In commensurate with the risks associated also permitted the limited use of a addition, the Securitization Guidance with residual interests. banking organization’s qualifying stressed the need for management to implement policies and procedures that internal risk rating system, a rating A. Asset Securitization include limits on the amount of residual agency’s or other appropriate third This final rule builds on the agencies’ interests that may be carried as a party’s review of the credit risk of earlier work with respect to the percentage of capital. Furthermore, the positions in structured programs, or appropriate risk-based capital treatment Guidance stated that, given the risks qualifying software to determine the for recourse obligations and direct credit presented by these activities, the capital requirement for certain unrated substitutes. On May 25, 1994, the agencies would actively consider the direct credit substitutes. Finally, the agencies published in the Federal establishment of regulatory restrictions 2000 Recourse Proposal required a Register a proposal to reduce the capital that would limit or eliminate the sponsor of a revolving credit requirement for low-level recourse amount of certain residual interests that transactions, and to treat first-loss (but securitization that contained an early could be recognized in determining the not second-loss) direct credit substitutes amortization feature to hold capital adequacy of regulatory capital. like recourse. 59 FR 27116, May 25, against the amount of assets under In September 2000, the agencies 1994 (the 1994 Notice). The 1994 Notice management in that securitization. published a notice of proposed also contained, in an advance notice of In the international arena, the Basel rulemaking on residual interests in asset proposed rulemaking, a proposal to use Committee on Banking Supervision (of securitizations and other transfers of credit ratings from nationally which the OCC, the Board, and the FDIC financial assets. 65 FR 57993, recognized statistical rating are members) issued a consultative September 27, 2000 (Residuals organizations (rating agencies) to paper entitled, ‘‘A New Capital Proposal). The proposal more directly determine the capital treatment of Adequacy Framework’’ in January addressed the agencies’ concerns with certain recourse obligations and direct 2001,2 on possible revisions to the 1988 residual interests, which were credit substitutes. The OCC, the Board, Basel Accord.3 The Basel Consultative highlighted in the Securitization and the FDIC subsequently Paper discusses potential modifications Guidance. The Residuals Proposal implemented the capital reduction for to the current capital standards, defined residual interests and proposed low-level recourse transactions, thereby including the capital treatment of a deduction from Tier 1 capital 6 for the satisfying the requirements of section securitizations. The standards amount of residual interests held by a 350 of the Riegle Community established by this final rule are banking organization that exceed 25% Development and Regulatory consistent in many respects with the of Tier 1 capital (concentration limit). Improvement Act, Pub. L. 103–325, sec. Basel Consultative Paper. In particular, The agencies further proposed that risk- 350, 108 Stat. 2160, 2242 (1994) (CDRI the use of external credit ratings issued based capital be held dollar-for-dollar Act).1 The OTS risk-based capital by rating agencies as a basis for against the remaining residuals (dollar- regulation already included the low- determining the credit quality and the for-dollar capital charge) even if the level recourse treatment required by the resulting capital treatment of resulting capital charge exceeded the statute. The agencies did not issue a securitizations is consistent with the full risk-based capital charge (e.g., 8%) final regulation on the remaining approach outlined by the Basel typically held against the transferred elements of the 1994 Notice. Committee. While the agencies believe assets that are supported by the On November 5, 1997, the agencies that it is essential to address residual. The Residuals Proposal also published another notice of proposed securitizations by rule at this time, they permitted banking organizations to rulemaking. 62 FR 59943, November 5, intend to consider additional changes to calculate the amount of a residual ‘‘net- 1997 (1997 Proposal). In the 1997 this rule when revisions to the Basel of-associated deferred tax liability’’ in Proposal, the agencies proposed to use Accord are finalized. determining the appropriate amount of credit ratings from rating agencies to B. Residual Interests 4 determine the capital requirements for See OCC Bulletin 99–46 (December 14, 1999) (OCC); FDIC Financial Institution Letter 109–99 recourse obligations, direct credit In response to the increased use of (December 13, 1999) (FDIC); SR Letter 99–37(SUP) substitutes, and senior asset-backed securitizations by instititutions, the (December 13, 1999) (Board); and CEO LTR 99–119 securities in asset securitizations. agencies published Interagency (December 14, 1999) (OTS). Additionally, the 1997 Proposal Guidance on Asset Securitization 5 The agencies previously considered, but requested comment on a series of declined to adopt, capital rules imposing concentration limits on certain residual assets, i.e., options and alternatives to supplement 2 The January 2001 Basel Consultative Paper interest-only strips. See 63 FR 42668 (August 10, amends and refines a Consultative Paper issued in 1998). This 1998 rulemaking is discussed more 1 See 60 FR 17986, April 10, 1995 (OCC); 60 FR June 1999. fully at section II.C.3. of this preamble. 8177, February 13, 1995 (Board); 60 FR 15858, 3 International Convergence of Capital 6 The OTS also uses the term ‘‘core capital’’ to March 28, 1995 (FDIC). Measurement and Capital Standards (July 1988). describe Tier 1 capital.
VerDate 11
capital required. In no event would the For residential mortgages sold Many asset securitizations use a amount of capital have exceeded the through certain Federally-sponsored combination of recourse and third-party residual interest balance. mortgage programs, a Federal enhancements to protect investors from government agency or Federal credit risk. When third-party C. The Combined Final Rule government-sponsored enterprise (GSE) enhancements are not provided, the The agencies collectively received 32 guarantees the securities sold to selling banking organization ordinarily comments on the 2000 Recourse investors and may assume the credit retains virtually all of the credit risk on Proposal and 34 comments on the risk on the underlying mortgages. the assets transferred. Residuals Proposal. Comments were However, many of today’s asset received from banks and thrifts, law and B. Risk Management of Exposures securitization programs involve assets Arising From Securitization Activities accounting firms, trade associations, that are not Federally supported in any and government-sponsored enterprises. way. Sellers of these privately While asset securitization can Commenters generally favored the securitized assets therefore often enhance both credit availability and a ratings-based approach proposed in the provide other forms of credit banking organization’s profitability, 2000 Recourse Proposal, but were enhancement—that is, they take first or managing the risks associated with this concerned about the increased capital second dollar loss positions—to reduce activity can pose significant challenges. requirements outlined for residuals in investors’ credit risk. The risks involved, while not new to the Residuals Proposal. A seller may provide this credit banking organizations, may be less The two proposals overlap in scope in enhancement itself through recourse obvious and more complex than the risks of traditional lending. Specifically, that both address leveraged credit risk. arrangements. The agencies use the term securitization can involve credit, As many commenters noted, for certain ‘‘recourse’’ to refer to the credit risk that liquidity, operational, legal, and positions the Residuals Proposal a banking organization retains in reputational risks in concentrations and required capital treatment that differed connection with the transfer of its forms that may not be fully recognized from that required under the 2000 assets. Banking organizations have long by management or adequately Recourse Proposal. Recognizing the provided recourse in connection with incorporated into a banking overlap and interaction between the two sales of whole loans or loan organization’s risk management proposals, the agencies have developed participations; today, recourse a single final rule that combines aspects systems. arrangements frequently are also The capital treatment required by the of the Residuals Proposal and the 2000 associated with asset securitization Recourse Proposal. final rule provides one important way of programs. Depending on the type of addressing the credit risk presented by II. Background securitization transaction, the sponsor securitization activities. However, a of a securitization may provide a A. Asset Securitization banking organization’s compliance with portion of the total credit enhancement capital standards should be Asset securitization is the process by internally, as part of the securitization complemented by effective risk which loans or other credit exposures structure, through the use of excess management strategies. The agencies are pooled and reconstituted into spread accounts, overcollateralization, expect that banking organizations will securities, with one or more classes or retained subordinated interests, or other identify, measure, monitor and control positions, that may then be sold. similar on-balance sheet assets. When 7 the risks of their securitization activities Securitization provides an efficient these or other on-balance sheet internal (including synthetic securitizations mechanism for banking organizations to enhancements are provided, the using credit derivatives) and explicitly buy and sell loan assets or credit enhancements are ‘‘residual interests’’ incorporate the full range of risks into exposures and thereby to increase the for regulatory capital purposes. Such their risk management systems. organization’s liquidity. residual interests are a form of recourse. Management is responsible for having Securitizations typically carve up the A seller may also arrange for a third adequate policies and procedures in risk of credit losses from the underlying party to provide credit enhancement 8 in place to ensure that the economic assets and distribute it to different an asset securitization. If the third-party substance of their risks is fully parties. The ‘‘first dollar,’’ or most enhancement is provided by another recognized and appropriately managed. subordinate, loss position is first to banking organization, that organization Banking organizations should be able to absorb credit losses; the most ‘‘senior’’ assumes some portion of the assets’ measure and manage their risk exposure investor position is last to absorb losses; credit risk. In this final rule, all forms from risk positions in the and there may be one or more loss of third-party enhancements, i.e., all securitizations, either retained or positions in between (‘‘second dollar’’ arrangements in which a banking acquired, and should be able to assess loss positions). Each loss position organization assumes credit risk from the credit quality of any retained functions as a credit enhancement for third-party assets or other claims that it residual portfolio. The formality and the more senior positions in the has not transferred, are referred to as sophistication with which the risks of structure. ‘‘direct credit substitutes.’’ 9 The these activities are incorporated into a economic substance of a banking banking organization’s risk management 7 For purposes of this discussion, references to ‘‘securitization’’ also include structured finance organization’s credit risk from providing system should be commensurate with transactions or programs and synthetic transactions a direct credit substitute can be the nature and volume of its that generally create stratified credit risk positions, identical to its credit risk from retaining securitization activities. Banking which may or may not be in the form of a security, recourse on assets it has transferred. organizations with significant whose performance is dependent upon a pool of loans or other credit exposures. Synthetic securitization activities, no matter what transactions bundle credit risks associated with on- 8 As used in this final rule, the terms ‘‘credit the size of their on-balance sheet assets, balance sheet assets and off-balance sheet items and enhancement’’ and ‘‘enhancement’’ refer to both are expected to have more advanced and resell them into the market. For examples of recourse arrangements, including residual interests, formal approaches to manage the risks. synthetic securitization structures, see Banking and direct credit substitutes. Bulletin 99–43, November 15, 1999 (OCC); SR 9 For purposes of this rule, purchased credit- The Securitization Guidance Letter 99–32, Capital Treatment for Synthetic CLOs, enhancing interest-only strips are also ‘‘residual addresses the fundamental risk November 17, 1999 (Board). interests.’’ management practices that should be in
VerDate 11
place at banking organizations that 1. Recourse and Retained Residual assume that a banking organization engage in securitization activities. The Interests securitizes $100 million of credit card Guidance stresses the need for The agencies’ risk-based capital loans and records a residual interest on management to implement policies and guidelines prescribe a single treatment the balance sheet of $5 million that procedures that include limits on the for assets transferred with recourse serves as a credit enhancement for the amount of residual interests that may be (including retained residual interests), assets transferred. Before the low-level carried as a percentage of capital. regardless of whether the transaction is recourse rule was issued, the banking Moreover, the Securitization Guidance reported as a sale of assets or as a organization was required to hold $8 sets forth the supervisory expectation financing in a bank’s Consolidated million of risk-based capital against the $100 million in loans sold, as though that the value of a residual interest in a Report of Condition and Income (Call the loans had not been sold. Under the securitization must be supported by Report), a bank holding company’s FR Y–9 reports, or a thrift’s Thrift Financial low-level recourse rule, the banking objectively verifiable documentation of organization is required to hold $5 the asset’s fair market value using Report. For a transaction reported as a financing, the transferred assets remain million in capital, that is, ‘‘dollar-for- reasonable, conservative valuation dollar’’ capital up to the banking assumptions. Residual interests that do on the balance sheet and are risk- weighted. For a transaction reported as organization’s maximum contractual not meet this expectation, or that fail to exposure. However, if the banking meet the supervisory standards set forth a sale, the entire outstanding amount of the assets sold with recourse (not just organization has recorded a residual in the Securitization Guidance, should the contractual amount of the recourse interest of $10 million (rather than $5 be classified as ‘‘loss’’ and disallowed as obligation) is converted into an on- million), the low-level recourse rule assets of the banking organization for balance sheet credit equivalent amount would not have applied. The banking regulatory capital purposes. using a 100% credit conversion factor. organization would have been required Moreover, the agencies indicated in This credit equivalent amount (less any to hold the full capital charge, i.e., $8 million in this example, even though its the Securitization Guidance that applicable recourse liability account maximum contractual exposure was $10 banking organizations found to be recorded on the balance sheet) is then 11 million. lacking effective risk management risk-weighted. If the seller’s balance For leverage capital ratio purposes, if programs or engaging in practices that sheet includes as an asset (other than a a transfer with recourse is reported as a present safety and soundness concerns servicing asset) any interest that acts as financing, the transferred assets remain will be subject to more frequent a credit enhancement to the assets sold, on the transferring banking supervisory review, limitations on that interest is not risk-weighted a organization’s balance sheet and the residual interest holdings, more second time as an on-balance sheet banking organization must hold leverage stringent capital requirements, or other item. Thus, regardless of the method capital against these assets. If a transfer supervisory response. Thus, failure to used to account for the transfer, risk- with recourse is reported as a sale, the understand the risks inherent in based capital is held against the full, assets sold do not remain on the selling securitization activities and to risk-weighted amount of the assets banking organization’s balance sheet incorporate them into risk management transferred with recourse, unless the and the banking organization need not transaction is subject to the low-level hold leverage capital against these systems and internal capital allocations 12 may constitute an unsafe or unsound recourse rule. assets. However, because certain The low-level recourse rule limits the banking practice and may result in a recourse obligations (e.g., retained maximum risk-based capital residual interests) are recorded as an downgrading of a banking organization’s requirement to the lesser of the banking CAMELS or BOPEC 10 rating. asset on the seller’s balance sheet, organization’s maximum contractual leverage capital must be held against C. Current Risk-Based Capital exposure or the full capital charge those obligations. Treatment of Recourse, Residual against the outstanding amount of assets Interests and Direct Credit Substitutes transferred with recourse. When the 2. Direct Credit Substitutes low-level recourse rule applies, a Direct credit substitutes are treated Currently, the agencies’ risk-based banking organization generally holds differently from recourse obligations capital standards apply different capital on a dollar-for-dollar basis under the existing risk-based capital treatments to recourse obligations, against the amount of its maximum standards. Currently, off-balance sheet including residual interests, and direct contractual exposure. In the absence of direct credit substitutes, such as credit substitutes. As a result, capital any other recourse provisions, the on- financial standby letters of credit requirements applicable to credit balance sheet amount of a residual provided for third-party assets, carry a enhancements do not consistently interest represents the maximum 100% credit conversion factor. reflect credit risk, even though the risk contractual exposure. For example, However, only the face amount of the characteristics are similar. The current direct credit substitute is converted into rules of the OCC, Board, and FDIC (the 11 Consistent with statutory requirements, the an on-balance sheet credit equivalent agencies’ current rules also provide for special amount. As a result, capital is held only banking agencies) are also not entirely treatment of sales of small business obligations with consistent with those of the OTS. One recourse. See 12 CFR part 3, appendix A, Section against the face amount of the direct objective of the final rule is to remove 3(c) (OCC); 12 CFR parts 208 and 225, appendix A, credit substitute. The capital or reduce these inconsistencies. II.B.5 (FRB); 12 CFR part 325, appendix A, II.B.6 requirement for a recourse arrangement, (FDIC); 12 CFR 567.6(a)(3) (OTS). See also in contrast, generally is based on the full discussion in section III.B.11 of this preamble. 10 CAMELS is the acronym for the supervisory 12 Section 350 of the CDRI Act required the amount of the assets enhanced. rating assigned to banks and thrifts. It measures agencies to prescribe regulations providing that the If a direct credit substitute covers less Capital, Asset quality, Management, Earnings, risk-based capital requirement for assets transferred than 100% of the potential losses on the Liquidity and Sensitivity to market risk. BOPEC is with recourse could not exceed a banking assets enhanced, the current capital the acronym for the supervisory rating assigned to organization’s maximum contractual exposure. The bank holding companies. It measures performance agencies may require a higher amount if necessary treatment results in a lower capital of Banking subsidiaries, Other subsidiaries, the for safety and soundness reasons. See 12 U.S.C. charge for a direct credit substitute than Parent holding company, Earnings and Capital. 4808. for a comparable recourse arrangement
VerDate 11
even though the economic risk of loss is directly to corporate customers. These interests in relation to capital presents similar. For example, if a direct credit direct credit substitutes are accorded a significant safety and soundness substitute covers losses up to the first significantly lower capital requirement concerns. 20% of $100 of enhanced assets, then than if a banking organization were to Existing regulatory capital rules do the on-balance sheet credit equivalent retain a subordinated position in a not adequately reflect the risks amount equals $20, and risk-based securitization comprised of loans that associated with residual interests. Often, capital is held against only the $20 had originally been carried on its banking organizations that securitize amount. In contrast, required capital for balance sheet, i.e. a recourse obligation, and sell higher risk assets are required a first-loss 20% recourse arrangement notwithstanding that the credit risks of to retain a large residual interest (often on $100 of transferred assets is higher both positions are virtually the same. greater than the full capital charge of 8 because capital is held against the entire Moreover, the current capital standards percent on 100 percent risk-weighted $100 of the assets enhanced. do not recognize differences in risk assets) to ensure that the more senior Currently, under the banking associated with different loss positions positions in the securitization or other agencies’ risk-based capital guidelines, in asset securitizations, nor do they asset sale can receive the desired purchased subordinated interests provide uniform definitions of recourse, investment ratings. The booking of a receive the same capital treatment as residual interest, direct credit substitute, residual interest using gain-on-sale off-balance sheet direct credit and associated terms. accounting can increase the selling substitutes; that is, only the dollar Residual interests, including retained banking organization’s capital and thereby allow the banking organization amount of the purchased subordinated or purchased credit-enhancing interest- interest is placed in the appropriate to leverage the capital created from the only strips (credit-enhancing I/Os), raise risk-weight category. In contrast, a securitization. This creation of capital is further supervisory concerns. Fair value banking organization that retains a most commonly associated with credit- is the basis for the initial measurement subordinated interest in connection enhancing I/Os and other spread-related and, in most cases, the ongoing with the transfer of its own assets is assets. Write-downs of the recorded measurement of residual interests on considered to have transferred the assets value of the residual interest due to banking organizations’ balance sheets. with recourse, even though the changes in assumptions concerning loss, In addition, declines in fair value trigger economic and credit risks are similar. prepayment or discount rates can determinations as to whether other than As a result, the banking organization subsequently result in losses. Any losses temporary impairments of residual must hold capital against the carrying in excess of the full capital charge (8 amount of the retained subordinated interests should be recognized. Banking percent in the example above) will interest as well as the outstanding dollar organizations’ fair value estimates for negatively affect the capital adequacy of amount of all senior interests that it these instruments, however, are often the banking organization and, thereby, supports, subject to the low-level based on unwarranted assumptions its safety and soundness. recourse rule. about expected future cash flows. No Moreover, the current capital rules The OTS risk-based capital regulation active market exists for many residual also do not subject either purchased or treats some forms of direct credit interests, including credit-enhancing I/ retained credit-enhancing I/Os to a substitutes (e.g., financial standby Os. As a result, there is no marketplace concentration limit. In 1998, the letters of credit) in the same manner as from which an arm’s length market agencies amended their capital rules to the banking agencies’ guidelines. price can readily be obtained to support impose strict limits on the amount of However, unlike the banking agencies, the residual interest valuation. Recent nonmortgage servicing assets that may the OTS treats purchased subordinated examinations have highlighted the be included in Tier 1 capital.13 These interests (except for certain high quality inherent uncertainty and volatility strict limitations were imposed due to subordinated mortgage-related regarding the initial and ongoing the lack of depth and maturity of the securities) under its general recourse valuation of credit-enhancing I/Os and marketplace for such assets, and related provisions. The risk-based capital other residual interests. A banking concerns about their valuation, requirement is based on the carrying organization that securitizes assets may liquidity, and volatility. amount of the subordinated interest overvalue its residual interests, The agencies, however, considered plus all senior interests, as though the including its credit-enhancing I/Os, and but declined to adopt similar thrift owned the full outstanding thereby inappropriately generate ‘‘paper concentration limits for I/O strips in amount of the assets enhanced. profits’’ (or mask actual losses) through that 1998 rulemaking, notwithstanding incorrect cash flow modeling, flawed that certain I/O strips possessed cash 3. Concerns Raised by Current Capital loss assumptions, inaccurate flow characteristics similar to servicing Treatment prepayment estimates, and assets and presented similar valuation, The agencies’ current leverage and inappropriate discount rates. This often liquidity, and volatility concerns. The risk-based capital standards raise leads to an inflation of capital, making agencies chose not to impose such a significant concerns with respect to the the banking organization appear more limitation in recognition of the treatment of recourse and direct credit financially sound than it is. Embedded ‘‘prudential effects of banking substitutes. First, banking organizations within residual interests, including organizations relying on their own risk are often required to hold different credit-enhancing I/Os, is a significant assessment and valuation tools, amounts of capital for recourse level of credit and prepayment risk that particularly their interest rate risk, arrangements and direct credit make their valuation extremely sensitive market risk, and other analytical substitutes that expose the banking to changes in underlying assumptions. models.’’ 14 The agencies expressly organization to similar credit risks. Market events can affect the discount indicated that they would continue to Banking organizations are taking rate, prepayment speed or performance review banking organizations’ valuation advantage of this anomaly, for example, of the underlying assets in a of I/O strips and the concentrations of by taking first-loss positions through securitization transaction and can these assets relative to capital. financial standby letters of credit, i.e., swiftly and dramatically alter their direct credit substitutes, in asset-backed value. A banking organization that holds 13 See 63 FR 42688 August 10, 1998. commercial paper conduits that lend an excessive concentration of residual 14 Id. at 42672.
VerDate 11
Moreover, the agencies noted that they • It permits each agency to modify a resulting from revolving loan ‘‘may, on a case-by-case basis, require stated risk-weight, credit conversion commitments even if the banking banking organizations that the agencies factor or credit equivalent amount, if organization is not involved in determine have high concentrations of warranted, on a case-by-case basis. securitization. these assets relative to their capital, or The agencies intend to apply this final For these reasons, the agencies have are otherwise at risk from these assets, rule to the substance, rather than the agreed at this time not to assess risk- to hold additional capital commensurate form, of a securitization transaction. based capital against securitized off- with their risk exposures.’’ 15 Regulatory capital will be assessed balance sheet assets in revolving When the servicing assets final rule based on the risks inherent in a position securitizations incorporating early was issued in 1998, most I/O strips used within a securitization, regardless of its amortization provisions. The agencies as credit enhancements did not exceed characterization. strongly believe, however, that the risks the full-capital charge on the transferred associated with securitization, including A. The General Approach Taken in the assets. However, the securitization of those posed by an early amortization Final Rule higher risk loans has resulted in feature, are not fully captured in current residual interests, such as credit- 1. Combined Final Rule regulatory capital rules and need to be enhancing I/O strips, that exceed the As noted above, this final rule addressed. Therefore, the agencies plan full-capital charge. In addition, certain harmonizes the proposed capital to make a more comprehensive banking organizations engaged in such treatment for residuals with the broader assessment of the risks to a selling securitization transactions have capital treatment for recourse and direct banking organization posed by the significant concentrations in highly credit substitutes. It also permits the use securitization process, including the volatile credit-enhancing I/Os as a of ratings to match the risk-based capital risks arising from early-amortization percentage of capital. requirement more closely to the relative features, implicit recourse arrangements and non-credit risks. The agencies have III. Description of the Final Rule: risk of loss in asset securitizations (see not, as yet, determined whether they Treatment of Recourse, Residual discussion below at section III.C.). will issue a proposed capital rule or Interests and Direct Credit Substitutes Highly rated investment-grade positions supervisory guidance on this matter. This final rule amends the agencies’ in securitizations receive a favorable regulatory capital standards as follows: (less than 100 percent) risk-weight. 3. Capital Charge for Residual Interests • It defines the terms ‘‘recourse,’’ Below-investment grade or unrated The final rule imposes a ‘‘dollar-for- ‘‘residual interest’’ and related terms positions in securitizations would dollar’’ capital charge on residual and revises the definition of ‘‘direct receive a less favorable risk-weight interests and a concentration limit on a credit substitute’’; (generally greater than 100 percent risk- subset of residual interests—credit- • It provides more consistent risk- weight). A residual interest retained by enhancing I/O strips.16 Under the based capital treatment for recourse a banking organization in an asset combined approach, credit-enhancing I/ obligations and direct credit substitutes; securitization (other than a credit- O strips are limited to 25% of Tier 1 • It varies the capital requirements for enhancing I/O strip) would be subject to capital. Everything above that amount positions in securitization transactions this capital framework. Therefore, if the will be deducted from Tier 1 capital. according to their relative risk exposure, external rating provided to such a Generally, all other residual interests using credit ratings from rating agencies residual interest is investment grade or that do not qualify for the ratings-based to measure the level of risk; no more than one category below approach (including any credit- • It permits the limited use of a investment grade, the final rule affords enhancing I/O strips that were not banking organization’s qualifying that residual interest more favorable deducted from Tier 1 capital) are subject internal risk rating system to determine capital treatment than the dollar-for- to a dollar-for-dollar capital charge. In the capital requirement for certain dollar capital requirement otherwise no event will this combined capital unrated direct credit substitutes; required for residuals (see discussion • charge exceed the face amount of a It permits the limited use of a rating below in section III.C.). banking organization’s residual agency’s review of the credit risk of 2. Managed Assets Capital Charge interests. positions in structured programs and a. Concentration Limit Capital Charge. The 2000 Recourse Proposal proposed qualifying software to determine the The final rule imposes a concentration to assess a risk-based capital charge on capital requirement for certain unrated limit on a subset of residual interests. It sponsors of revolving credit direct credit substitutes and recourse limits the inclusion of interest-only securitizations that contain an early exposures (but not residual interests); strips that serve in a credit-enhancing • amortization feature (managed assets It requires a banking organization to capacity (credit-enhancing I/O strips), capital charge). All commenters that deduct credit-enhancing interest-only whether retained or purchased, to 25% addressed the managed assets issue strips, whether retained or purchased, of Tier 1 capital for regulatory capital opposed the adoption of such a capital that are in excess of 25% of Tier 1 purposes (see discussion below at charge. Commenters noted that the risks capital from Tier 1 capital and from III.B.4). the managed assets capital charge is assets (concentration limit); For regulatory capital purposes only, • meant to address (e.g., liquidity risk and It requires a banking organization to any amount of credit-enhancing I/O credit risk) are not unique to maintain risk-based capital in an strips that exceeds the 25% limit will be securitizations with early amortization amount equal to the face amount of a deducted from Tier 1 capital and from features. Several commenters observed residual interest that does not qualify assets. Credit-enhancing I/O strips that that liquidity risk exists in varying for the ratings-based approach are not deducted from Tier 1 capital, degrees in every banking organization, (including credit-enhancing interest- along with all other residual interests and implicit recourse arises any time only strips that have not been deducted not subject to the concentration limit are from Tier 1 capital) (dollar-for-dollar that a banking organization securitizes capital); and assets. Commenters also noted that a 16 The definitions of residual interests and credit- banking organization faces the credit enhancing I/Os are discussed in Sections III.B.3 and 15 Id. risk associated with future receivables 4, below.
VerDate 11
subject to the dollar-for-dollar capital retained and purchased credit- commenters often referred to the requirement (as described below). In enhancing I/O strips that have not been Securitization Guidance, which calculating the capital requirement in deducted from Tier 1 capital) are highlights the supervisory concerns this manner, banking organizations will assessed a dollar-for-dollar capital associated with residual interests. not be required to hold capital for more charge. This charge requires that The agencies believe that a minimum than 100% of the amount of the residual banking organizations hold a dollar in capital standard that more closely aligns interest. The following example capital for every dollar in residual capital with risk, along with supervisory illustrates the concentration calculation interests, even if this capital review, is the appropriate course of required for banking organizations that requirement exceeds the full risk-based action in dealing with residual interests. hold credit-enhancing I/O strips: capital charge on the assets transferred. The agencies remain concerned with the A banking organization has purchased The agencies believe that the current credit risk exposure associated with and retained credit-enhancing I/O strips limited capital requirement could, in these deeply subordinated assets, with a face amount of $100 on its certain instances, be insufficient given particularly subinvestment grade and balance sheet and Tier 1 capital of $320 the risk inherent in large residual unrated residual interests. The lack of (before any disallowed servicing assets, interest positions. Because these assets an active market makes these assets disallowed purchased credit card are a subordinated interest in the future difficult to value and relatively illiquid. relationships, disallowed credit- cash flows of the securitized assets, they Most commenters considered the enhancing I/O strips and disallowed have a concentration of credit and dollar-for-dollar risk-based capital deferred tax assets). To determine the prepayment risk that, depending upon treatment to be overly broad and too amount of credit-enhancing I/O strips the life of the underlying asset, makes harsh, particularly when applied to that fall within the concentration limit, them vulnerable to sudden and sizeable higher quality residual interests. the banking organization would impairment. In addition, when given Commenters also were concerned that multiply the Tier 1 capital of $320 by accounting recognition, certain the proposed treatment could increase 25%, which is $80. The amount of residuals, such as retained credit- the capital requirement for a residual credit-enhancing I/O strips that exceed enhancing I/O strips, have the effect of interest above the capital requirement the concentration limit, in this case $20, creating capital, which may not be for the transferred assets when they is deducted from Tier 1 capital and from available to support these assets if write- were held on the banking organization’s assets. For risk-based capital purposes downs become necessary. Recent balance sheet. (but not for leverage capital purposes), experience has shown that residual The agencies have revised the the remaining $80 is then subject to the interests can be among the riskiest Residuals Proposal in response to some dollar-for-dollar capital charge, which is assets on the balance sheet and, of the industry’s concerns. The agencies discussed below. therefore, most deserving of a higher understand that the dollar-for-dollar Of those organizations commenting capital charge. capital requirement could result in a on the proposed concentration limit, Continuing the above illustration for banking organization holding more most believed that a concentration limit credit-enhancing I/O strips, once a capital on residual interests than on the should not be included in the final rule. banking organization deducts the $20 in underlying assets had they not been However, the narrower concentration disallowed credit-enhancing I/O strips, sold. However, in many cases the limit is consistent with commenters’ it must hold $80 in total capital for the relative size of the retained exposure by suggestions that only interest-only strips $80 that represents the credit-enhancing the originating banking organization be included in this limit. Moreover, I/O strips not deducted from Tier 1 reveals additional market information credit-enhancing I/O strips are not capital. The $20 deducted from Tier 1 about the quality of the securitized asset aggregated with any servicing assets or capital, plus the $80 in total risk-based pool. To facilitate a transaction in a purchased credit card relationships for capital required under the dollar-for- manner that meets with market purposes of calculating the 25% dollar treatment, equals $100, the face acceptance, the securitization sponsor concentration limit. In that respect, the amount of the credit-enhancing I/O will often increase the size of the concentration limit in the final rule is a strips. Banking organizations may apply residual. This practice is often less binding constraint than the a net-of-tax approach to any credit- indicative of the quality of the proposed limit. enhancing I/O strips that have been underlying assets in the pool. In other The agencies narrowed the scope of deducted from Tier 1 capital, as well as words, large residual positions often assets subject to the concentration limit to the remaining residual interests signal the lower credit quality of the to credit-enhancing interest-only strips subject to the dollar-for-dollar sold assets. Further, a banking in recognition of the fact that these treatment. This calculation is illustrated organization’s use of gain-on-sale assets generally serve in a first loss in the preamble of the Residuals accounting affords it the opportunity to capacity and are typically the most Proposal at 65 FR 57998. Under this create capital, the amount of which is vulnerable to significant write-downs method, a banking organization is related to a residual interest that may due to changes in valuation permitted, but not required, to net the not be worth its reported carrying value. assumptions. In addition, interest-only deferred tax liabilities recorded on its Thus, to mitigate the effects of these strips are the asset type most often balance sheet, if any, that are associated gains, the final rule requires banks to associated with the creation of capital as with the residual interests. This may hold dollar-for-dollar capital against the a result of gain-on-sale accounting, result in a banking organization holding related assets. which allows a banking organization to less than 100% capital against residual Commenters suggested several leverage the capital created based on the interests. alternative capital treatments such as current recognition of uncertain future Several commenters on the Residuals using the ratings based approach cash flows. Proposal opposed the proposed capital presented in the 2000 Recourse Proposal b. Dollar-for-Dollar Capital Charge. treatment, believing that concerns to set capital requirements for residual For risk-based capital purposes (but not associated with residual interests interests, excluding certain types of for leverage capital purposes), all should be handled on a case-by-case assets from the dollar-for-dollar residual interests that do not qualify for basis under the agencies’ existing treatment, and revising the existing the ratings-based approach (including supervisory authority. These capital treatment by requiring additional
VerDate 11
capital only against the gain-on-sale ‘‘recourse,’’ which has also been or otherwise, and that exposes a banking ‘‘asset.’’ Other commenters proposed to revised. organization to any credit risk directly limit the maximum capital requirement Several commenters sought or indirectly associated with the to the full capital charge plus any gain- clarification as to whether second lien transferred asset that exceeds a pro rata on-sale amount. positions constitute recourse. While share of that banking organization’s The agencies have decided not to alter second liens are subordinate to first claim on the asset, whether through the dollar-for-dollar capital charge for liens, the agencies believe that second subordination provisions or other credit residual interests that are unrated or liens will not, in most instances, enhancement techniques. Residual rated B or below, although certain constitute recourse. Second mortgages interests do not include interests residual interests rated BB or better will or home equity loans generally will not purchased from a third party, except for be eligible for the ratings-based be considered recourse arrangements credit-enhancing interest-only strips. approach.17 Certain types of assets were unless they actually function as credit Examples of these types of assets not excluded from the definition of enhancements. include credit-enhancing interest-only ‘‘residual interest’’ because every Commenters also requested strips receivable; spread accounts; cash residual reflects a concentration of clarification that third-party collateral accounts; retained credit risk and is, therefore, subject to enhancements, e.g. insurance subordinated interests; accrued but valuation concerns associated with protection, purchased by the originator uncollected interest on transferred estimating future losses. Further, gain- of a securitization for the benefit of assets that, when collected, will be on-sale accounting, while a concern, investors do not constitute recourse. available to serve in a credit-enhancing was not the only criterion in the The agencies generally agree. The capacity; and similar on-balance sheet agencies’ determination of a suitable purchase of enhancements for a assets that function as a credit method for calculating the capital securitization, where the banking enhancement. The functional-based charge for residual interests. Basing the organization is completely removed definition reflects the fact that capital charge on the gain-on-sale from any credit risk will not, in most securitization structures vary in the way amount would have made the rule more instances, constitute recourse. However, they use certain assets as credit complex, and would not necessarily if the purchase or premium price is paid enhancements. Therefore, residual result in the maintenance of adequate over time and the size of the payment interests include any retained on- capital for a residual interest since the is a function of the third-party’s loss balance sheet asset that functions as a gain-on-sale amount can be significantly experience on the portfolio, such an credit enhancement in a securitization, less than the carrying value of the arrangement indicates an assumption of regardless of how a banking residual. credit risk and would be considered organization refers to the asset in its recourse. financial or regulatory reports. In B. Definitions and Scope of the Final addition, due to their similar risk Rule 2. Direct Credit Substitute The definition of ‘‘direct credit profile, purchased credit-enhancing I/O 1. Recourse substitute’’ complements the definition strips are residual interests for The final rule defines the term of recourse. The term ‘‘direct credit regulatory capital purposes. ‘‘recourse’’ to mean an arrangement in substitute’’ refers to an arrangement in Some commenters thought that the which a banking organization retains, in which a banking organization assumes, definition of residual interest was too form or in substance, the credit risk in in form or in substance, credit risk broad and captured assets that are not connection with an asset sale in associated with an on- or off-balance subject to valuation concerns. The accordance with generally accepted sheet asset or exposure that was not agencies have considered these accounting principles, if the credit risk previously owned by the banking comments and, as a result, have refined exceeds a pro rata share of the banking organization (third-party asset) and the the definition of residual interest in the organization’s claim on the assets. The risk assumed by the banking final rule. In general, the definition of definition of recourse is consistent with organization exceeds the pro rata share residual interests includes only an on- the banking agencies’ longstanding use of the banking organization’s interest in balance sheet asset that represents an of this term, and incorporates existing the third-party asset. As revised, it also interest created by a transfer of financial agency practices regarding retention of explicitly includes items such as assets treated as a sale under GAAP. risk in asset sales. purchased subordinated interests, Interests retained in a securitization or Currently, the term ‘‘recourse’’ is not agreements to cover credit losses that transfer of assets accounted for as a defined explicitly in the banking arise from purchased loan servicing financing under GAAP are generally agencies’ risk-based capital guidelines. rights, credit derivatives and lines of excluded from the residual interest Instead, the guidelines use the term credit that provide credit enhancement. definition and capital treatment. In the ‘‘sale of assets with recourse,’’ which is Some purchased subordinated interests, case of GAAP financings, the transferred defined by reference to the Call Report such as credit-enhancing I/O strips, are assets remain on the transferring Instructions. See Call Report also residual interests for regulatory banking organization’s balance sheet Instructions, Glossary (entry for ‘‘Sales capital purposes (see discussion in and are, therefore, directly included in of Assets for Risk-Based Capital section III.B.4). both the leverage and risk-based capital Purposes’’). With the adoption of a calculations. Further, when a 3. Residual Interests definition for recourse in the final rule, transaction is treated as a financing, no the cross-reference to the Call Report The agencies define residual interests gain is recognized from an accounting instructions in the guidelines is no in the final rule as any on-balance sheet standpoint, which serves to mitigate longer necessary and has been removed. asset that represents an interest some of the agencies’ concerns. The The OTS capital regulation currently (including a beneficial interest) created agencies, however, will monitor provides a definition of the term by a transfer that qualifies as a sale (in securitization transactions that are accordance with generally accepted accounted for as financings under 17 Credit-enhancing I/Os are not eligible for the accounting principles) of financial GAAP and will factor into the banking ratings-based approach. assets, whether through a securitization organization’s capital adequacy
VerDate 11
determination the risk exposures being residual interest under the final rule reasonably expects to receive in future assumed or retained in connection with because the banking organization has no periods on the assets it has securitized, a securitization transaction. on-balance sheet asset that is adjusted for some level of prepayments Some commenters stated that sellers’ susceptible to a write-down. if relevant to that asset class, and interests should not constitute residual The capital treatment designated for a discounted at an appropriate market interests because they do not involve a residual interest will apply when a interest rate. Typically, when assets are subordinated interest in a stream of cash banking organization effectively retains transferred in a securitization flows, but rather a pro-rata interest. The the risk associated with that residual transaction that is accounted for as a agencies agree that sellers’ interests interest, even if the residual is sold. The sale under GAAP, the accounting generally do not function as a credit agencies intend to look to the economic recognition given to the credit- enhancement and should not be substance of the transaction to enhancing I/O strip on the seller’s captured by the rule. Thus, if a seller’s determine whether the banking balance sheet results in the recording of interest shares losses on a pro rata basis organization has transferred the risk a gain on the portion of the transferred with investors, such an interest would associated with the residual interest assets that has been sold. This gain is not be a residual interest for purposes of exposure. Banking organizations that recognized as income, thus increasing the rule. However, banking transfer the risk on residual interests, the banking organization’s capital organizations should recognize that either directly through a sale, or position. In determining whether a sellers’ interests that are structured to indirectly through guarantees or other particular interest cash flow functions absorb a disproportionate share of losses credit risk mitigation techniques, and as a credit-enhancing I/O strip, the will be residual interests and subject to then reassume this risk in any form will agencies will look to the economic the capital treatment described in the be required to hold risk-based capital as substance of the transaction, and will final rule. though the residual interest remained reserve the right to identify other cash Other commenters suggested that on the banking organization’s books. For flows or spread-related assets as credit- overcollateralization accounts are not example, if a banking organization sells enhancing I/O strips on a case-by-case residual interests because the banking an asset that is an on-balance sheet basis. For example, including some organization does not suffer a potential credit enhancement to a third party and principal payments with interest and fee loss from the assets transferred. They then writes a credit derivative to cover cash flows will not otherwise negate the argue that certain residual interests, the credit risk associated with that asset, regulatory capital treatment of that asset such as interest-only strips, are subject the selling banking organization must as a credit-enhancing I/O strip. Credit- to valuation concerns that might lead to continue to risk weight, and hold capital enhancing I/O strips include both losses. However, other assets, such as against, that asset as a residual as if the purchased and retained interest-only overcollateralization or spread accounts, asset had not been sold. strips that serve in a credit-enhancing do not present the same level of capacity, even though purchased I/O valuation concerns and, therefore, 4. Credit-Enhancing Interest-Only Strips strips generally do not result in the should not be included in the definition A credit-enhancing I/O strip is creation of capital on purchaser’s of residual interest. defined in the final rule as ‘‘an on- Overcollateralization and spread balance sheet asset that, in form or in balance sheet. accounts are susceptible to the potential substance, (i) represents the contractual 5. Credit Derivatives future credit losses within the loan right to receive some or all of the The proposed definitions of pools that they support and, thus, are interest due on transferred assets; and ‘‘recourse’’ and ‘‘direct credit (ii) exposes the banking organization to subject to valuation inaccuracies. substitute’’ cover credit derivatives to credit risk that exceeds its pro rata claim Further, the agencies do not want to the extent that a banking organization’s on the underlying assets whether encourage arbitrage of the final rule by credit risk exposure exceeds its pro rata affording banking organizations the through subordination provisions or interest in the underlying obligation. opportunity to retain a subordinated other credit enhancing techniques.’’ The ratings-based approach therefore position in an asset labeled Thus, credit-enhancing I/O strips applies to rated instruments such as ‘‘overcollateralization’’ when that asset include any balance sheet asset that credit-linked notes issued as part of a represents the same level of credit risk represents the contractual right to synthetic securitization. With the as another residual interest, just receive some or all of the remaining issuance of this final rule, the agencies otherwise named. As a result, the interest cash flow generated from assets reaffirm the validity of the structural definition of residual interest continues that have been transferred into a trust and risk-management requirements of to include overcollateralization. The (or other special purpose entity), after the December 1999 guidance on agencies agree that spread accounts and taking into account trustee and other synthetic securitizations issued by the overcollateralization that do not meet administrative expenses, interest 19 the definition of credit-enhancing payments to investors, servicing fees, Board and the OCC, while modifying interest-only strips generally do not and reimbursements to investors for the risk-based capital treatment detailed expose a banking organization to the losses attributable to the beneficial therein with the treatment presented in same level of risk as credit-enhancing interests they hold, as well as this final rule. interest-only strips, and thus, have reinvestment income and ancillary 6. Credit-Enhancing Representations excluded them from the concentration revenues 18 on the transferred assets. and Warranties limit. The agencies also believe that Credit-enhancing I/O strips are When a banking organization transfers where a banking organization provides generally carried on the balance sheet at assets, including servicing rights, it additional loans to a securitization at the present value of the expected net customarily makes representations and inception, but does not book as an asset cash flow that the banking organization warranties concerning those assets. a beneficial interest for the present When a banking organization purchases value of the future cash flows from these 18 According to FASB Statement No. 140, loans, the mere contribution of excess ‘‘Accounting for Transfers and Servicing of Financial Assets and Extinguishments of 19 See, Banking Bulletin 99–43, December, 1999 assets, although it constitutes a credit Liabilities,’’ ancillary revenues include such (OCC); SR Letter 99–32, Capital Treatment for enhancement, will not constitute a revenues as late charges on the transferred assets. Synthetic CLOs, November 17, 1999 (Board).
VerDate 11
loan servicing rights, it may also assume activities. Banking organizations should eligible for the 50% risk weight and that representations and warranties made by be prepared to demonstrate to were originated within 1 year of the date the seller or a prior servicer. These examiners that operational risks are of transfer. All other early-default representations and warranties give effectively managed. clauses, including those for periods of certain rights to other parties and The final rule requires recourse or greater than 120 days on qualifying 1– impose obligations upon the seller or direct credit substitute treatment for 4 family residential first mortgages, are servicer of the assets. The 2000 warranties providing assurances about recourse or direct credit substitutes. Recourse Proposal addressed those the actual value of asset collateral, The 2000 Recourse Proposal also particular representations and including that the market value sought comment on premium refund warranties that function as credit corresponds to its appraised value or clauses. A premium refund clause is a enhancements, i.e., those where, that the appraised value will be realized warranty that obligates a seller who has typically, a banking organization agrees in the event of foreclosure and sale. sold a loan at a price in excess of par, to protect purchasers or some other Warranties such as these, which make i.e., at a premium, to refund the party from losses due to the default or representations about the future value of premium, either in whole or in part, if non-performance of the obligor or a loan or related collateral constitute an the loan defaults or is prepaid within a insufficiency in the value of collateral. enhancement of the loan transferred certain period of time. Commenters To the extent a banking organization’s and, thus, are recourse arrangements or responded that premium refund clauses representations and warranties function direct credit substitutes. One are not recourse because they reflect as credit enhancements to protect asset commenter suggested that a interest rate risk, not credit risk. purchasers or investors from credit risk, representation that the seller ‘‘has no Although premium refund clauses can the final rule treats them as recourse or knowledge’’ of circumstances that could be triggered as a result of prepayments, direct credit substitutes. cause a loan to be other than investment they can also be triggered by defaults. The final rule is consistent with the quality is an operational warranty. The Accordingly, premium refund clauses agencies’ longstanding recourse agencies agree that if a seller represents are generally credit-enhancing treatment of representations and that it has no knowledge of the representations and warranties under warranties that effectively guaranty existence of such circumstances at the the final rule. However, the agencies performance or credit quality of time that the loans are transferred the have included an exception for transferred loans. However, the agencies representation would not be recourse. premium refund clauses on U.S. also recognize that banking Commenters sought clarification of government-guaranteed loans and organizations typically make a number the agencies’ statement in the 2000 qualifying 1–4 family first mortgage of factual warranties unrelated to Recourse Proposal that early-default loans that impose a refund obligation on ongoing performance or credit quality. clauses are recourse. Early-default a seller for a period not to exceed 120 These warranties entail operational risk, clauses typically give the purchaser of a days from the date of transfer. These as opposed to the open-ended credit risk loan the right to return the loan to the types of loans hold significantly inherent in a financial guaranty, and are seller if the loan becomes 30 or more reduced credit risk. excluded from the definitions of days delinquent within a stated period For those warranties not exempt from recourse and direct credit substitute. after the transfer—four months after recourse or direct credit substitute Warranties that create operational risk transfer, for example. Once the stated treatment under the final rule, industry include: warranties that assets have period has expired, the early-default concerns about assets that are been underwritten or collateral clause will no longer trigger recourse delinquent at the time of transfer or appraised in conformity with identified treatment, provided that there is no unsound originations may be dealt with standards, and warranties that provide other provision that constitutes by warranties directly addressing the for the return of assets in instances of recourse. condition of the asset at the time of incomplete documentation, fraud or Several commenters stated that early- transfer (i.e., creation of an above misrepresentation. default clauses are not recourse because described operational warranty) and Warranties can impose varying they are designed to cover loans that, compliance with stated underwriting degrees of operational risk. For example, due to their non-payment within the standards. Alternatively, banking a warranty that asset collateral has not first few months of origination, most organizations might create warranties suffered damage from hazard entails risk likely contained underwriting with exposure caps that would permit that is offset to some extent by prudent deficiencies. Early-default clauses can the banking organization to take underwriting practices requiring the allow for a reasonable but limited advantage of the low-level recourse rule. borrower to provide hazard insurance to period of time for a purchaser to review 7. Clean-Up Calls the banking organization. A warranty loan file documentation. Therefore, the that asset collateral is free of final rule specifically exempts from The final rule clarifies the agencies’ environmental hazards may present recourse treatment, for a limited period longstanding interpretations on the use acceptable operational risk for certain of time, these types of warranties on of clean-up calls in a securitization. A types of properties that have been certain 1–4 family residential mortgage clean-up call is an option that permits subject to environmental assessment, loans. The agencies have modified the a servicer or its affiliate (which may be depending on the circumstances. The definition of ‘‘credit-enhancing the originator) to take investors out of agencies address appropriate limits for representations and warranties’’ to their positions in a securitization before these operational risks through exclude warranties, such as early- all of the transferred loans have been supervision of a banking organization’s default clauses and similar warranties repaid. The servicer accomplishes this loan underwriting, sale, and servicing that permit the return of qualifying 1– by repurchasing the remaining loans in practices. Also, a banking organization 4 family residential first mortgage loans the pool once the pool balance has that provides warranties to loan for a maximum period of 120 days from fallen below some specified level. This purchasers and investors must include the date of transfer. To be excluded from option in a securitization raises associated operational risks in its risk the definition, however, these longstanding agency concerns that a management of exposures arising from warranties must cover only 1–4 family banking organization may implicitly loan sale or securitization-related residential mortgage loans that are assume a credit-enhancing position by
VerDate 11
exercising the option when the credit collection of the mortgage loans are Banking organizations that act as quality of the securitized loans is specifically excluded from the servicers, however, should establish deteriorating. An excessively large definitions of recourse and direct credit policies on servicer advances and use clean-up call facilitates a securitization substitute, provided that the residential discretion in determining what servicer’s ability to take investors out of mortgage servicer is entitled to constitutes an ‘‘insignificant’’ servicer a pool to protect them from absorbing reimbursement for any significant advance. The agencies will monitor credit losses and, thus, may indicate advances and this reimbursement is not industry practice and may revisit the that the servicer has retained or subordinate to other claims. To be issue if this exemption from recourse assumed the credit risk on the excluded from recourse and direct treatment is used inappropriately. underlying pool of loans. credit substitute treatment, the banking Further, the agencies will exercise their As a result, clean-up calls are treated organization, as servicer, should make supervisory authority to apply recourse generally as recourse and direct credit an independent credit assessment of the or direct credit substitute treatment to substitutes. However, because clean-up likelihood of repayment of the servicer servicer cash advances that expose a calls can also serve an administrative advance prior to advancing funds and banking organization acting as servicer function in the operation of a should only make such an advance if to excessive levels of credit risk. securitization, the agencies have prudent lending standards are met. 9. Interaction With Market Risk Rule included a limited exemption for these Risk-based capital is assessed only options. Under the final rule, an against the amount of the cash advance, Some commenters responding to the agreement that permits a banking and the advance is assigned to the risk- 2000 Recourse Proposal and the organization that is a servicer or an weight category appropriate to the party Residuals Proposal asked for affiliate of the servicer to elect to obligated to reimburse the servicer.20 clarification of the treatment of a purchase loans in a pool is not recourse If a residential mortgage servicer is transaction covered by both the market or a direct credit substitute if the not entitled to full reimbursement, then risk rule and the recourse rule. This agreement permits the banking final rule generally applies to positions the maximum possible amount of any 21 organization to purchase the remaining nonreimbursed advances on any one held in the banking book. For banking loans in a pool when the balance of organizations that comply with the loan must be contractually limited to an 22 those loans is equal to or less than 10 insignificant amount of the outstanding market risk rules, positions in the percent of the original pool balance. principal on that loan. Otherwise, the trading book arising from asset However, an agreement that permits the servicer’s obligation to make cash securitizations, including recourse remaining loans to be repurchased when advances will not be excluded from the obligations, residual interests, and their balance is greater than 10 percent definitions of recourse and direct credit direct credit substitutes, should be of the original pool balance is substitute. This treatment reflects the treated for risk-based capital purposes considered to be recourse or a direct agencies’ traditional view that servicer in accordance with those rules. credit substitute. The exemption from cash advances meeting these criteria are However, these banking organizations recourse or direct credit substitute part of the normal mortgage servicing remain subject to the 25 percent treatment for a clean-up call of 10 function and do not constitute credit concentration limit for credit-enhancing percent or less recognizes the real enhancement. I/O strips. market need to be able to call a Commenters responding to the 2000 transaction when the costs of keeping it 10. Reservation of Authority Recourse Proposal generally supported outstanding are burdensome. However, Banking organizations are developing the proposed definition of servicer cash to minimize the potential for using such novel transactions that do not fit well advances. Some commenters, however, a feature as a means of providing into the risk-weight categories and support for a troubled portfolio, a expressed concern over the description credit conversion factors in the current banking organization that exercises a of ‘‘insignificant’’ nonreimbursed standards. Banking organizations also clean-up call should not repurchase any advances as advances on any one loan are devising novel instruments that loans in the pool that are 30 days or that are contractually limited to no more nominally fit into a particular risk- more past due. Alternatively, the than 1% of the outstanding principal weight category or credit conversion banking organization should repurchase amount on that loan. They argued that factor, but that impose risks on the the loans at the lower of their estimated this 1% limit would unfairly penalize banking organization at levels that are fair value or their par value plus smaller loans and was unnecessary. not commensurate with the nominal accrued interest. Regardless of the size The agencies suggested the 1% limit risk-weight or credit conversion factor of the clean-up call, the agencies will in the 2000 Recourse Proposal in for the asset, exposure or instrument. closely scrutinize any transaction where response to commenters’ requests for Accordingly, the agencies have clarified the banking organization repurchases guidance from commenters on the 1997 their authority, on a case-by-case basis, deteriorating assets for an amount Proposal. However, upon to determine the appropriate risk-weight greater than a reasonable estimate of reconsideration, the agencies agree that for assets and credit equivalent amounts their fair value and will take action the 1% limit is unnecessarily restrictive and the appropriate credit conversion accordingly. for smaller loans. Accordingly, the final factor for off-balance sheet items in rule does not contain this benchmark. these circumstances. 8. Loan Servicing Arrangements Exercise of this authority by the The definitions of ‘‘recourse’’ and 20 The Board has issued a notice of proposed agencies may result in a higher or lower ‘‘direct credit substitute’’ cover loan rulemaking that considers whether a special risk weight for an asset or credit purpose entity should be characterized as a bank servicing arrangements if the banking affiliate and whether asset securitizations should be organization, as servicer, is responsible classified as covered transactions pursuant to 21 This rule applies also to banking organizations for credit losses associated with the section 23A of the Federal Reserve Act, 12 U.S.C. that hold positions in their trading book, but are not serviced loans. However, cash advances 371c. See ‘‘Transactions between Banks and Their otherwise subject to the market risk rules. Affiliates’’, 66 FR 24186, May 11, 2001 and 66 FR 22 The OTS did not participate in the market risk made by residential mortgage servicers 33649, June 25, 2001. Any final rule resulting from rulemaking. As a result, certain OTS definitions— to ensure an uninterrupted flow of this Proposal could affect the regulatory capital for example, the OTS’s definition of ‘‘face payments to investors or the timely treatment of servicer cash advances. amount’’;—differ from those of the other agencies.
VerDate 11
equivalent amount or a higher or lower credit enhancements or loss positions to organizations. They asserted that credit credit conversion factor for an off- reflect differences in the relative credit ratings are not intended to measure risks balance sheet item. This reservation of risk represented by the positions. associated with regulatory capital and authority explicitly recognizes the To address this issue, the agencies are that, without market discipline imposed agencies’ retention of sufficient implementing a multi-level, ratings- on them, the ratings may not be reliable discretion to ensure that banking based approach to assess capital for that purpose. They also noted an organizations, as they develop novel requirements on recourse obligations, inherent conflict of interest between a financial assets, will be treated residual interests (except credit- rating agency’s ability to objectively appropriately under the regulatory enhancing I/O strips), direct credit assign a rating upon which regulators capital standards. Under this authority, substitutes, and senior and subordinated can rely in imposing capital charges and the agencies reserve the right to assign securities in asset securitizations based one that measures the risks in a risk positions in securitizations to on their relative exposure to credit risk. securitization for the banking appropriate risk categories on a case-by- The approach uses credit ratings from organization who is paying for the case basis if the credit rating of the risk the rating agencies to measure relative rating. position is determined to be exposure to credit risk and determine Investors rely on ratings to make inappropriate. the associated risk-based capital investment decisions. This reliance 11. Alternative Capital Calculation for requirement. The use of credit ratings exerts market discipline on the rating Small Business Obligations provides a way for the agencies to use agencies and gives their ratings market determinations of credit quality relied credibility. The market’s reliance on Certain commenters noted that the upon by investors and other market ratings, in turn, gives the agencies capital treatment in the Residuals participants to differentiate the confidence that it is appropriate to Proposal would have a significant regulatory capital treatment for loss consider ratings as a major factor in the negative impact on banking positions representing different risk weighting of assets for regulatory organizations’ small business lending. gradations of risk. This use permits the capital purposes. Further, the use of a According to these commenters, the agencies to give more equitable single rating will only be adequate dollar-for-dollar capital requirement and treatment to a wide variety of concentration limits for residual under the ratings-based approach for a transactions and structures in interests arising from asset position that is traded. The agencies, administering the risk-based capital securitizations under the Residuals however, reserve the authority to system. Proposal would apply to asset override the use of certain ratings or the securitizations involving the transfer of The use of credit ratings in the final ratings on certain instruments, either on small business obligations. These rule is similar to the 2000 Recourse a case-by-case basis or through broader commenters concluded that, unless the Proposal. Although many commenters supervisory policy, if necessary or Residuals Proposal is amended to expressed concerns about specific appropriate to address the risk that an exclude small business obligations from aspects of the 2000 Recourse Proposal, instrument poses to banking coverage, the capital treatment in the commenters generally supported the organizations. final rule would contravene section 208 goal of making the capital requirements Under the ratings-based approach, the of the CDRI Act. The final rule retains for asset securitizations more rational capital requirement for a position is the alternative capital calculation for and efficient, and viewed the 2000 computed by multiplying the face small business obligations that Recourse Proposal as a positive step amount of the position by the implements section 208 of the CDRI Act. toward this goal. The agencies have appropriate risk weight determined in made several changes to the 2000 accordance with the following tables.23 C. Ratings-Based Approach: Traded and Recourse Proposal and Residual The first chart shown below maps long- Non-Traded Positions Proposal in response to commenters’ term ratings to the appropriate risk- As described in section II.A., each concerns and based on further weights under the final rule. In response loss position in an asset securitization consideration of the issues. to requests from commenters, the structure functions as a credit Several commenters on the 2000 agencies have also included another enhancement for the more senior loss Recourse Proposal expressed concern chart (the second chart shown below) positions in the structure. Currently, the over reliance on external rating agency that maps short-term ratings for asset- risk-based capital standards do not vary ratings for the purposes of assessing backed commercial paper to the the capital requirement for different risk-based capital charges for banking appropriate risk-weights under this rule.
Risk weight Long-term rating category Examples (In percent)
Highest or second highest investment grade ...... AAA or AA ...... 20 Third highest investment grade ...... A ...... 50 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200 More than one category below investment grade, or unrated ...... B or unrated ...... (1)
Risk weight Short-term rating category Examples (In percent)
Highest investment grade ...... A–1, P–1 ...... 20 Second highest investment grade ...... A–2, P–2 ...... 50 Lowest investment grade ...... A–3, P–3 ...... 100
23 The rating designations (e.g., ‘‘AAA,’’ ‘‘BBB,’’ illustrative only and do not indicate any preference for, or endorsement of, any particular rating agency ‘‘A–1,’’ and ‘‘P–1’’) used in the charts are designation system.
VerDate 11
Risk weight Short-term rating category Examples (In percent)
Below investment grade ...... Not Prime ...... (1) 1 Not eligible for ratings-based approach.
The chart for short-term ratings is not therefore, the final rule requires a the banking organization’s balance identical to the long-term ratings table banking organization to use the lowest sheet.27 because the rating agencies do not single rating assigned to a traded Residual interests that are not eligible assign short-term ratings using the same position. Moreover, if a rating changes, for the ratings-based approach receive methodology as long-term ratings. Each the banking organization must use the dollar-for-dollar treatment. Dollar-for- short-term rating category covers a range new rating. dollar treatment means, effectively, that of longer-term rating categories.24 For Rated, but untraded, asset-backed one dollar in total risk-based capital example, a P–1 rating could map to a securities, recourse obligations, direct must be held against every dollar of a long-term rating as high as Aaa or as low credit substitutes and residual interests residual interest, except for credit- as A3. may also be eligible for the ratings-based enhancing I/Os that have already been Under the final rule, the ratings-based approach if they meet certain deducted from Tier 1 capital under the approach is available for asset-backed conditions. To qualify, the position concentration limit.28 Thus, the capital securities,25 recourse obligations, direct must be rated by more than one rating requirement for residual interests is not credit substitutes and residual interests agency, the ratings must be one category limited by the 8 percent cap in place (other than credit-enhancing I/O strips). below investment grade or better for under the current risk-based capital The agencies have excluded credit- long-term positions (or investment grade system. enhancing I/O strips from the ratings- or better for short-term positions) by all Finally, an unrated position that is based approach based on their high risk rating agencies providing a rating, the senior or preferred in all respects profile, discussed above at section ratings must be publicly available, and (including collateralization and III.B.4. the ratings must be based on the same maturity) to a rated position that is While the ratings-based approach is criteria used to rate securities that are traded is treated as if it had the rating available for both traded and untraded traded. If the ratings are different, the assigned to the rated position. The positions, the rule applies different lowest single rating will determine the banking organization, however, must requirement to these positions. A traded risk-weight category. satisfy its supervisory agency that such position, for example, is only required Recourse obligations and direct credit treatment is appropriate. Senior unrated to be rated by one rating agency. A substitutes (other than residual positions qualify for the risk weighting position is defined as ‘‘traded’’ if, at the interests) that do not qualify for the of the subordinated rated positions in time it is rated by an external rating ratings-based approach (or the internal the same securitization transaction as agency, there is a reasonable expectation ratings, program ratings or computer long as the subordinated rated position that in the near future: (1) The position program ratings approaches outlined (1) is traded and (2) remains outstanding may be sold to unaffiliated investors below) receive ‘‘gross-up’’ treatment, for the entire life of the unrated relying on the rating; or (2) an that is, the banking organization holding position, thus providing full credit unaffiliated third party may enter into a the position must hold capital against support for the term of the unrated transaction (e.g., a loan or repurchase the amount of the position plus all more position. agreement) involving the position in senior positions, subject to the low-level which the third party relies on the D. Unrated Positions exposure rule.26 This grossed-up rating of the position. In response to the 2000 Recourse A few commenters expressed concern amount is placed into a risk-weight category according to the obligor or, if Proposal and earlier proposals, over the provision in the 2000 Recourse commenters expressed concern over the Proposal that allowed a banking relevant, the guarantor or the nature of the collateral. The grossed-up amount expense and inefficiency of requiring organization to use the single highest the purchase of ratings to qualify for the rating obtained on a traded position, multiplied by both the risk-weight and 8 percent is never greater than the full ratings-based approach and advocated stating that doing so encourages rating- alternative approaches. In response to shopping. The agencies agree and, capital charge that would otherwise be imposed on the assets if they were on these concerns, the final rule incorporates three alternative 24 See, for example, Moody’s Global Ratings approaches for determining the capital Guide, June 2001, p.3. 26 ‘‘Gross-up’’ treatment means that a position is 25 Similar to the banking agencies’ current combined with all more senior positions in the approach under which ‘‘stripped’’ mortgage-backed transaction. The result is then risk-weighted based 27 For assets that are assigned to the 100 percent securities are not eligible for risk weighting at 50% on the obligor or, if relevant, the guarantor or the risk-weight category, the minimum capital charge is on a ‘‘pass-through’’ basis, stripped mortgage- nature of the collateral. For example, if a banking 8 percent of the amount of assets transferred, and backed securities are ineligible for the 20% or 50% organization retains a first-loss position (other than banking organizations are required to hold 8 cents risk categories under the ratings-based approach. a residual interest) in a pool of mortgage loans that of capital for every dollar of assets transferred with Currently, OTS also includes most interest-only and qualify for a 50% risk weight, the banking recourse. For assets that are assigned to the 50 principal-only strips in the 100% risk-weight organization would include the full amount of the percent risk-weight category, the minimum capital category. See 12 CFR 567.6(a)(1)(iv) (introductory assets in the pool, risk-weighted at 50%, in its risk- charge is 4 cents of capital for every dollar of assets statement) and (a)(1)(iv)(M). However, certain high- weighted assets for purposes of determining its risk- transferred with recourse. quality stripped mortgage-related securities are based capital ratio. The low-level exposure rule 28 Residual interests that are retained or eligible for a 20% risk weight under the OTS’ provides that the dollar amount of risk-based purchased credit-enhancing I/O strips are first capital standards. OTS recently proposed to capital required for assets transferred with recourse subject to a capital concentration limit of 25 percent conform its capital treatment for high-quality should not exceed the maximum dollar amount for of Tier 1 capital. For risk-based capital purposes stripped mortgage-related securities to that of other which a banking organization is contractually (but not for leverage capital purposes), once this agencies, and received not comments in opposition liable. See 12 CFR part 3, appendix A, Section 3(d) concentration limit is applied, a banking to this change. See 66 FR 15049, March 15, 2001. (OCC); 12 CFR 208 and 225, appendix A, III.D.1(g) organization must then hold dollar-for-dollar Accordingly, OTS in conforming these aspects of its (FRB); 12 CFR part 325, appendix A, II.D.1 (FDIC); capital against the face amount of credit-enhancing rule to those of the other agencies. 12 CFR 567.6(a)(2)(i)(C) (OTS). I/O strips remaining.
VerDate 11
requirements for certain unrated direct often with limited performance history. have to obtain two ratings solely to credit substitutes and recourse These characteristics make determining avoid the gross-up treatment that would obligations. Under each of these internal capital requirements difficult. otherwise apply to non-traded positions approaches, the banking organization The agencies also believe that the in asset securitizations for risk-based must satisfy its supervisory agency that economic risk differs between residual capital purposes. However, before a the use of the approach is appropriate interests and off-balance sheet recourse provider of an enhancement decides for the particular banking organization and direct credit substitute exposures. whether to provide a credit and for the exposure being evaluated. Therefore, based on the risks associated enhancement for a particular transaction The final rule limits, however, the risk with residual interests, the agencies (and at what price), the provider will weight that may be applied to an have decided for the present not to generally perform its own analysis of exposure under these alternative allow banking organizations to use the transaction to evaluate the amount approaches to a minimum of 100%. internal ratings, program ratings or of risk associated with the Under the 2000 Recourse Proposal, computer programs to apply a risk- enhancement. only direct credit substitutes could based capital treatment more favorable Allowing banking organizations to use qualify for beneficial risk-weighting than a dollar-for-dollar capital internal credit ratings harnesses using the three alternatives to external requirement to these positions. information and analyses that they ratings (i.e., internal ratings, program The agencies will continue to evaluate already generate rather than requiring ratings, and computer programs). the effectiveness and reliability of these them to obtain independent but Commenters questioned the agencies’ alternative approaches for assessing potentially redundant ratings from limitation of the application of these regulatory capital at banking outside rating agencies. An internal risk alternative approaches to direct credit organizations and may revisit this issue ratings approach therefore has the substitutes. After considering the if, over time, new information indicates potential to be less costly than a ratings- arguments for extending the application that reconsideration is warranted. based approach that relies exclusively of these approaches to recourse 1. Use of Banking Organizations’ on ratings by the rating agencies for the obligations, the agencies have decided Internal Risk Ratings risk-weighting of these positions. not to permit the internal ratings-based The final rule permits a banking Internal risk ratings that correspond to approach to apply to any positions other the rating categories of the rating than direct credit substitutes issued in organization with a qualifying internal risk rating system to use that system to agencies could be mapped to risk connection with an asset-backed weights under the agencies’ capital commercial paper program. Industry apply the ratings-based approach to the standards in a way that would make it research and empirical evidence banking organization’s unrated direct possible to differentiate the riskiness of indicates that these positions are more credit substitutes in asset-backed various unrated direct credit substitutes likely than recourse positions to be of commercial paper programs. Internal in asset-backed commercial paper investment-grade credit quality, and risk ratings could be used to qualify programs based on credit risk. However, that the banking organizations providing such a credit enhancement for a risk the use of internal risk ratings raises these direct credit substitutes are more weight of 100% or 200% under the concerns about the accuracy and likely to have internal risk rating ratings-based approach, but not for a consistency of the ratings, especially systems for these credit enhancements risk weight of less than 100%. This because the mapping of ratings to risk- that are sufficiently reliable for risk- relatively limited use of internal risk based capital calculations. ratings for risk-based capital purposes is weight categories will give banking However, the agencies have a step toward potential adoption of a organizations an incentive to rate their reconsidered their position with respect broader use of internal risk ratings as risk exposures in a way that minimizes to qualifying program ratings and discussed in the Basel Committee’s June the effective capital requirement. A computer program ratings. The final 1999 and January 2001 Consultative banking organization engaged in asset- rule extends beneficial risk-weighting Papers on a new Basel Capital Accord. backed commercial paper securitization treatment, through the use of qualifying Most sophisticated banking activities that wishes to use the internal program and computer ratings, to off- organizations that participate risk ratings approach must be able to balance sheet recourse obligations to extensively in the asset securitization demonstrate to the satisfaction of its accommodate structured finance business assign internal risk ratings to primary regulator, prior to relying upon programs. By extending this treatment their credit exposures, regardless of the its use, that the bank’s internal credit to off-balance sheet recourse obligations form of the exposure. Usually, internal risk rating system is adequate. Adequate the final rule facilitates the structuring risk ratings more finely differentiate the internal risk rating systems usually: of these programs in a more efficient credit quality of a banking (1) Are an integral part of an effective manner. The agencies believe this result organization’s exposures than the risk management system that explicitly is appropriate because of the similarity categories that the agencies use to incorporates the full range of risks of economic risks between off-balance evaluate credit risk during examinations arising from an organization’s sheet direct credit substitutes and off- of banking organizations (pass, participation in securitization activities. balance sheet recourse obligations. substandard, doubtful, loss). Individual The system must also fully take into The final rule, however, does not banking organizations’ internal risk account the effect of such activities on extend the use of internal ratings, ratings may be associated with a certain the organization’s risk profile and program ratings or computer program probability of default, loss in the event capital adequacy as discussed in Section ratings to residual interests. Such a of default, and loss volatility. II.B. change would not facilitate existing The credit enhancements that (2) Link their ratings to measurable asset-backed commercial paper sponsors obtain for their commercial outcomes, such as the probability that a programs and structured finance paper conduits are rarely rated or position will experience any losses, the programs, which generally do not book traded. If an internal risk ratings expected losses on that position in the any on-balance sheet residuals. Further, approach were not available for these event of default, and the degree of residual interests by their nature are unrated credit enhancements, the variance in losses given default on that generally illiquid, hard-to-value assets, provider of the enhancement would position.
VerDate 11
(3) Separately consider the risk purposes of determining the banking not residual interests) in asset associated with the underlying loans organization’s regulatory capital securitizations. and borrowers and the risk associated requirements. To qualify for use by a banking with the specific positions in a organization for risk-based capital 2. Ratings of Specific Positions in securitization transaction. purposes, a computer program’s credit (4) Identify gradations of risk among Structured Financing Programs assessments must correspond credibly ‘‘pass’’ assets, not just among assets that Under the final rule, a banking and reliably to the rating standards of have deteriorated to the point that they organization may use a rating obtained the rating agencies for traded positions fall into ‘‘watch’’ grades. Although it is from a rating agency for unrated direct in securitizations. A banking not necessary for a banking organization credit substitutes or recourse obligations organization must demonstrate the to use the same categories as the rating (but not residual interests) in structured credibility of the computer program in agencies, its internal ratings must finance programs that satisfy the financial markets, which would correspond to the ratings of the rating specifications set by the rating agency. generally be shown by the significant agencies so that the agencies can The banking organization would need to use of the computer program by determine which internal risk rating demonstrate that the rating meets the investors and other market participants corresponds to each rating category of same rating standards generally used by for risk assessment purposes. A banking the rating agencies. A banking the rating agency for rating traded organization must also demonstrate the organization would have the positions. In addition, the banking reliability of the program in assessing responsibility to demonstrate to the organization must also demonstrate to credit risk. satisfaction of its primary regulator how its primary regulator’s satisfaction that A banking organization may use a these ratings correspond with the rating the criteria underlying the rating computer program for purposes of agency standards used as the framework agency’s assignment of ratings for the applying the ratings-based approach for this final rule. This is necessary so program are satisfied for the particular under this final rule only if the banking that the mapping of credit ratings to risk direct credit substitute or recourse organization satisfies its primary weight categories in the ratings-based exposure. regulator that the program results in approach can be applied to internal To use this approach, a banking credit assessments that credibly and ratings. organization must demonstrate to its reliably correspond with the ratings of (5) Classify assets into each risk grade, primary regulator that it is reasonable traded positions by the rating agencies. using clear, explicit criteria, even for and consistent with the standards of this The banking organization should also subjective factors. final rule to rely on the rating of demonstrate to its primary regulator’s (6) Have independent credit risk satisfaction that the program was management or loan review personnel positions in a securitization structure under a program in which the banking designed to apply to its particular direct assign or review credit risk ratings. credit substitute or recourse exposure These personnel should have adequate organization participates if the sponsor of that program has obtained a rating. and that it has properly implemented training and experience to ensure that the computer program. Sophisticated they are fully qualified to perform this This aspect of the final rule is most likely to be useful to banking banking organizations with extensive function. securitization activities generally should (7) Periodically verify, through an organizations with limited involvement in securitization activities. In addition, use this approach only if it is an integral internal audit procedure, that internal part of their risk management systems risk ratings are assigned in accordance some banking organizations extensively involved in securitization activities and their systems fully capture the risks with the banking organization’s from the banking organizations’ established criteria. already rely on ratings of the credit risk positions under their securitization securitization activities. (8) Track the performance of its This approach can be used to qualify programs as part of their risk internal ratings over time to evaluate a direct credit substitute or recourse management practices. Such banking how well risk grades are being assigned, obligation (but not a residual interest) organizations also could rely on such make adjustments to its rating system for a risk weight of 100% or 200% of the ratings under this final rule if the ratings when the performance of its rated face value of the position under the are part of a sound overall risk positions diverges from assigned ratings, ratings-based approach, but not for a management process and the ratings and adjust individual ratings risk weight of less than 100%. accordingly. reflect the risk of non-traded positions (9) Make credit risk rating to the banking organizations. IV. Effective Date of the Final Rule assumptions that are consistent with, or This approach can be used to qualify This final rule is effective January 1, more conservative than, the credit risk a direct credit substitute or recourse 2002, a date that comports with the rating assumptions and methodologies obligation (but not a residual interest) delayed effective date requirements of of the rating agencies. for a risk weight of 100% or 200% of the both the Administrative Procedure Act If a banking organization’s rating face value of the position under the (APA) and the CDRI Act.29 Any system is no longer found to be ratings-based approach, but not for a transaction covered by this final rule adequate, the banking organization’s risk weight of less than 100%. that is settled on or after that date is primary regulator may preclude the 3. Use of Qualifying Rating Software subject to the capital requirements banking organization from applying the Mapped to Public Rating Standards established by the rule. Banking internal risk ratings approach to new organizations that have entered into transactions for risk-based capital The agencies will also allow banking transactions prior to the effective date of purposes until it has remedied the organizations, particularly those with deficiencies. Additionally, depending limited involvement in securitization 29 See 5 U.S.C. 553(d) (APA provision prescribing on the severity of the problems activities, to rely on qualifying credit 30-day delayed effective date); 12 U.S.C. 4802(b) identified, the primary regulator may assessment computer programs that the (CDRI provision requiring that a regulation take effect on the first day of the calendar quarter also decline to rely on the internal risk rating agencies have developed to rate following publication in final form if the regulation ratings that the banking organization otherwise unrated direct credit imposes ‘‘reporting, disclosures or other new had applied to previous transactions for substitutes and recourse obligations (but requirements’’ on insured depository institutions.)
VerDate 11
the final rule may elect early adoption, almost exclusively. Small national B. Paperwork Reduction Act as of November 29, 2001, of any banks rarely sponsor or provide direct The agencies have determined that provision of the final rule that results in credit substitutes in asset this final rule does not involve a a reduced risk-based capital securitizations. Accordingly, a collection of information pursuant to requirement. Conversely, banking regulatory flexibility analysis is not the provisions of the Paperwork organizations that enter into required. Reduction Act of 1995 (44 U.S.C. 3501, Board: Pursuant to section 605(b) of transactions prior to the effective date of et seq.). this final rule that result in increased the Regulatory Flexibility Act, the Board regulatory capital requirements may has determined that this final rule will C. Executive Order 12866 not have a significant impact on a delay the application of this rule to OCC: The OCC has determined that substantial number of small business those transactions until December 31, this final rule is not a significant entities within the meaning of the 2002. regulatory action for purposes of Regulatory Flexibility Act (5 U.S.C. 601 Although the Residual Proposal Executive Order 12866. The OCC et seq.). The Board’s comparison of the indicated that the agencies intended to expects that any increase in national applicability section of this proposal permit banking organizations to banks’ risk-based capital requirement, with Call Report Data on all existing continue to apply existing capital rules resulting from the treatment of residual banks shows that application of the to certain asset securitizations for up to interests largely will be offset by the proposal to small entities will be the two years after the effective date of the ability of those banks to reduce their final rule, the agencies believe that the rare exception. Accordingly, a regulatory flexibility analysis is not capital requirement in accordance with one year effective date should give the ratings-based approach. banking organizations ample time to required. In addition, because the risk- based capital standards generally do not OTS: The Director of the OTS has bring their capital requirements in line determined that this final rule does not with the economic risks that they have apply to bank holding companies with consolidated assets of less than $150 constitute a ‘‘significant regulatory already assumed through their action’’ under Executive Order 12866. securitization activities. The agencies million, this proposal will not affect such companies. The final rule prescribes ratings-based have, through the issuance of and other alternative approaches that supervisory guidance and four separate FDIC: Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. are likely to reduce the risk-based notices of proposed rulemaking, capital requirement for most recourse identified the risks to banking 601 et seq.) the FDIC hereby certifies that the final rule will not have a obligations and direct credit substitutes. organizations from securitizations and The rule will, however, increase capital demonstrated the agencies’ concern over significant economic impact on a substantial number of small entities. requirements for certain direct credit the management of these risks by substitutes (e.g., standby letters of banking organizations. These Comparison of Call Report data on FDIC-supervised banks to the items credit) and residual interests. OTS has rulemakings and guidance have placed reviewed current TFR data to determine the industry on notice that, among other covered by the proposal that result in increased capital requirements shows whether current OTS-regulated things, the agencies have concluded that that application of the proposal to small institutions hold these positions in the securitization activities of banking entities will be the infrequent exception. significant amounts. These data indicate organizations often expose them to OTS: Pursuant to section 605(b) of the that, while these institutions hold some greater economic risk than their capital Regulatory Flexibility Act, the OTS residual interests, most standby letters levels reflect. Therefore, this final rule certifies that this final rule will not have of credit issued by thrifts continue to be requires that all transactions, whether a significant impact on a substantial eligible for a lower risk weight under entered into before its effective date or number of small entities. The provisions one of the alternative approaches not, be subject to the capital of this final rule that increase capital outlined in the final rule. OTS has requirements stated in the rule, but requirements for thrifts—the provisions analyzed the additional cost of capital allows for flexibility in the time by on residual interests and certain direct that will be incurred by thrift which that must occur. credit substitutes (e.g., financial standby institutions that hold residual interests V. Miscellaneous Changes letters of credit)—are unlikely to affect and direct credit substitutes that are small savings associations. Current TFR subject to increased capital Each of the agencies has made data reveal that few small savings requirements. Based on this analysis, it miscellaneous changes to its proposed associations hold residual interests and has concluded that the likely increases regulatory text to conform its rule to the that no small thrift holds residual to the industry’s cost of capital will not texts of the other agencies. In addition, interests in excess of 25 percent of core have a significant impact on the the agencies have made revisions to capital. Further, the application of the economy, as described in the Executive existing rules to appropriately revised capital requirements to existing Order. accommodate the revised treatment of residual interests will not result in a recourse, direct credit substitutes and change in the capital category of any D. Unfunded Mandates Reform Act of residual interests. small thrift. Few small savings 1995 VI. Regulatory Analysis associations issue standby letters of OCC: Section 202 of the Unfunded credit. In addition, virtually all of the Mandates Reform Act of 1995, Pub. L. A. Regulatory Flexibility Act standby letters of credit that are issued 104–4, (Unfunded Mandates Act), OCC: Pursuant to section 605(b) of the by small thrifts will not be subject to an requires that an agency prepare a Regulatory Flexibility Act, the OCC increased capital requirement since budgetary impact statement before certifies that this final rule will not have these positions will continue to be promulgating a rule that includes a a significant impact on a substantial eligible for lower risk weights under the Federal mandate that may result in the number of small entities. 5 U.S.C. 601 alternative approaches outlines in the expenditure by state, local, and tribal et seq. The provisions of this final rule final rule. Accordingly, OTS concludes governments, in the aggregate, or by the that increase capital requirements are that a regulatory flexibility analysis is private sector, of $100 million or more likely to affect large national banks not required. in any one year. If a budgetary impact
VerDate 11
statement is required, section 205 of the ‘‘plain language’’ requirement of section D. New paragraph (b) is added to read Unfunded Mandates Act also requires 722 of the Gramm-Leach-Bliley Act (12 as follows: an agency to identify and consider a U.S.C. 4809). No comments were reasonable number of regulatory received. § 3.4 Reservation of authority. alternatives before promulgating a rule. (a) Deductions from capital. *** List of Subjects The OCC has determined that this final Similarly, the OCC may find that a rule will not result in expenditures by 12 CFR Part 3 particular intangible asset, deferred tax state, local, and tribal governments, or asset or credit-enhancing interest-only Administrative practice and by the private sector, of more than $100 strip need not be deducted from Tier 1 procedure, Capital, National banks, million or more in any one year. or Tier 2 capital. Conversely, the OCC Reporting and recordkeeping Therefore, the OCC has not prepared a may find that a particular intangible requirements, Risk. budgetary impact statement or asset, deferred tax asset, credit- specifically addressed the regulatory 12 CFR Part 208 enhancing interest-only strip or other alternatives considered. As discussed in Tier 1 or Tier 2 capital component has Accounting, Agriculture, Banks, the preamble, this final rule will reduce characteristics or terms that diminish its banking, Confidential business inconsistencies in the agencies’ risk- contribution to a bank’s ability to absorb information, Crime, Currency, Federal based capital standards and, in certain losses, and may require the deduction Reserve System, Mortgages, Reporting circumstances, will allow banking from Tier 1 or Tier 2 capital of all of the organizations to maintain lower and recordkeeping requirements, component or of a greater portion of the amounts of capital against certain rated Securities. component than is otherwise required. recourse obligations, residual interests 12 CFR Part 225 (b) Risk weight categories. and direct credit substitutes. Notwithstanding the risk categories in OTS: Section 202 of the Unfunded Administrative practice and sections 3 and 4 of appendix A to this Mandates Reform Act of 1995, Pub. L. procedure, Banks, banking, Federal part, the OCC will look to the substance 104–4 (Unfunded Mandates Act), Reserve System, Holding companies, of the transaction and may find that the requires an agency to prepare a Reporting and recordkeeping assigned risk weight for any asset or the budgetary impact statement before requirements, Securities. credit equivalent amount or credit promulgating a rule that includes a 12 CFR Part 325 conversion factor for any off-balance Federal mandate that may result in the sheet item does not appropriately reflect expenditure by state, local, and tribal Administrative practice and the risks imposed on a bank and may governments, in the aggregate, or by the procedure, Bank deposit insurance, require another risk weight, credit private sector, of $100 million or more Banks, banking, Capital adequacy, equivalent amount, or credit conversion in any one year. As discussed in the Reporting and recordkeeping factor that the OCC deems appropriate. preamble, the final rule prescribes requirements, Savings associations, Similarly, if no risk weight, credit ratings-based and other alternative State non-member banks. equivalent amount, or credit conversion approaches that are likely to reduce the 12 CFR Part 567 factor is specifically assigned, the OCC risk-based capital requirement for most may assign any risk weight, credit Capital, Reporting and recordkeeping recourse obligations and direct credit equivalent amount, or credit conversion requirements, Savings associations. substitutes. The rule will, however, factor that the OCC deems appropriate. increase capital requirements for certain DEPARTMENT OF THE TREASURY In making its determination, the OCC direct credit substitutes (e.g., standby Office of the Comptroller of the considers risks associated with the asset letters of credit) and residual interests. Currency or off-balance sheet item as well as other OTS has reviewed current TFR data to relevant factors. determine whether current OTS- 12 CFR Chapter I Appendix A to Part 3—[Amended] regulated institutions hold these Authority and Issuance positions in significant amounts. These 3. In appendix A to Part 3, revise all data indicate that, while these For the reasons set out in the references to ‘‘financial guarantee-type institutions hold some residual preamble, part 3 of chapter I of title 12 standby letter of credit’’ to read interests, most standby letters of credit of the Code of Federal Regulations is ‘‘financial standby letter of credit’’. issued by thrifts continue to be eligible amended as follows: 4. In section 2 of appendix A, for a lower risk weight under one of the A. Remove the word ‘‘and’’ at the end PART 3—MINIMUM CAPITAL RATIOS; alternative approaches outlined in the of paragraph (c)(1)(ii); ISSUANCE OF DIRECTIVES final rule. OTS has analyzed the B. Revise paragraph (c)(1)(iii)(B); additional cost of capital that will be C. Add a new paragraph (c)(1)(iv); incurred by thrift institutions that hold 1. The authority citation for part 3 continues to read as follows: D. Footnote 6 is revised; residual interests and direct credit E. The second sentence of paragraph substitutes that are subject to increased Authority: 12 U.S.C. 93a, 161, 1818, (c)(2)(i) is revised; capital requirements. Based on this 1828(n), 1828 note, 1831n note, 1835, 3907, F. Paragraph (c)(4) is redesignated as analysis, it has concluded that the likely and 3909. paragraph (c)(5); increases to the industry’s cost of capital § 3.4 [Amended] G. A new paragraph (c)(4) is added. will not result in the expenditure by state, local, and tribal governments, in 2. In § 3.4: Appendix A to Part 3—Risk-Based the aggregate, or by the private sector, of A. The undesignated paragraph is Capital Guidelines $100 million or more in any one year. designated as paragraph (a); * * * * * B. A heading is added to newly E. Plain Language designated paragraph (a); Section 2. Components of Capital The 2000 Recourse Proposal and the C. The second and third sentences in * * * * * Residuals Proposal sought comment on the newly designated paragraph (a) are (c) * * * the agencies’ compliance with the revised; and (1) * * *
VerDate 11
(iii) * * * are dependent upon future taxable 6. A new Section 4 is added to read (B) 10% of Tier 1 capital, net of income. as follows: goodwill and all intangible assets other * * * * * * * * * * than purchased credit card 4. In section 3 of appendix A: Section 4. Recourse, Direct Credit relationships, mortgage servicing assets A. Footnote 11a in paragraph (a)(3)(v) and non-mortgage servicing assets; and Substitutes and Positions in is revised; Securitizations (iv) Credit-enhancing interest-only B. Paragraph (b) introductory text is strips (as defined in section 4(a)(3) of amended by adding a new sentence at (a) Definitions. For purposes of this this appendix A), as provided in section its end; section 4 of this appendix A, the 2(c)(4). C. Paragraph (b)(1)(i) and footnote 13 following definitions apply: * * * * * are removed and reserved; (1) Credit derivative means a contract (2) * * *6 *** D. Paragraph (b)(1)(ii) is revised; that allows one party (the protection (i) * * * Calculation of these E. Paragraph (b)(1)(iii) and footnote 14 purchaser) to transfer the credit risk of limitations must be based on Tier 1 are removed and reserved; an asset or off-balance sheet credit capital net of goodwill and all other F. Footnote 16 in paragraph (b)(2)(i) is exposure to another party (the identifiable intangibles, other than revised; protection provider). The value of a purchased credit card relationships, G. Footnote 17 in paragraph (b)(2)(ii) credit derivative is dependent, at least mortgage servicing assets and non- is revised; in part, on the credit performance of a mortgage servicing assets. H. Paragraph (c) is removed; and ‘‘reference asset.’’ * * * * * I. Paragraph (d) is removed. (2) Credit-enhancing interest-only (4) Credit-enhancing interest-only * * * * * strip means an on-balance sheet asset strips. Credit-enhancing interest-only that, in form or in substance: Section 3. Risk Categories/Weights for strips, whether purchased or retained, (i) Represents the contractual right to On-Balance Sheet Assets and Off- that exceed 25% of Tier 1 capital must receive some or all of the interest due Balance Sheet Items be deducted from Tier 1 capital. on transferred assets; and Purchased and retained credit- * * * * * (ii) Exposes the bank to credit risk enhancing interest-only strips, on a non- (a) * * * directly or indirectly associated with the tax adjusted basis, are included in the (3) * * * transferred assets that exceeds its pro total amount that is used for purposes (v) * * * 11a rata claim on the assets whether of determining whether a bank exceeds * * * * * through subordination provisions or its Tier 1 capital. (b) * * * However, direct credit other credit enhancing techniques. (i) The 25% limitation on credit- substitutes, recourse obligations, and (3) Credit-enhancing representations enhancing interest-only strips will be securities issued in connection with and warranties means representations based on Tier 1 capital net of goodwill asset securitizations are treated as and warranties that are made or and all identifiable intangibles, other described in section 4 of this appendix assumed in connection with a transfer than purchased credit card A. of assets (including loan servicing relationships, mortgage servicing assets (1) * * * assets) and that obligate a bank to and non-mortgage servicing assets. (ii) Risk participations purchased in protect investors from losses arising (ii) Banks must value each credit- bankers’ acceptances; from credit risk in the assets transferred or the loans serviced. Credit-enhancing enhancing interest-only strip included * * * * * representations and warranties include in Tier 1 capital at least quarterly. The (2) * * * promises to protect a party from losses quarterly determination of the current (i) * * * 16 *** resulting from the default or fair value of the credit-enhancing (ii) * * * 17 *** nonperformance of another party or interest-only strip must include * * * * * adjustments for any significant changes from an insufficiency in the value of the in original valuation assumptions, 5. Section 4 is redesignated Section 5. collateral. Credit-enhancing representations and warranties do not including changes in prepayment 11a estimates. The portion of multifamily residential include: property loans that is sold subject to a pro rata loss (i) Early-default clauses and similar (iii) Banks may elect to deduct sharing arrangement may be treated by the selling disallowed credit-enhancing interest- bank as sold to the extent that the sales agreement warranties that permit the return of, or only strips on a basis that is net of any provides for the purchaser of the loan to share in premium refund clauses covering, 1–4 any loss incurred on the loan on a pro rata basis associated deferred tax liability. family residential first mortgage loans with the selling bank. The portion of multifamily (as described in section 3(a)(3)(iii) of Deferred tax liabilities netted in this residential property loans sold subject to any loss manner cannot also be netted against sharing arrangement other than pro rata sharing of this appendix A) for a period not to deferred tax assets when determining the loss shall be accorded the same treatment as any exceed 120 days from the date of other asset sold under an agreement to repurchase the amount of deferred tax assets that transfer. These warranties may cover or sold with recourse under section 4(b) of this only those loans that were originated appendix A. within 1 year of the date of transfer; 6 Intangible assets are defined to exclude IO strips 16 For purposes of this section 3(b)(2)(i), a receivable related to these mortgage and non- ‘‘performance-based standby letter of credit’’ is any (ii) Premium refund clauses that cover mortgage servicing assets. See section 1(c)(14) of letter of credit, or similar arrangement, however assets guaranteed, in whole or in part, this appendix A. Consequently, IO strips receivable named or described, which represents an by the U.S. Government, a U.S. related to mortgage and non-mortgage servicing irrevocable obligation to the beneficiary on the part Government agency, or a U.S. assets are not required to be deducted under section of the issuer to make payment on account of any 2(c)(2) of this appendix A. However, credit- default by the account party in the performance of Government-sponsored enterprise, enhancing interest-only strips as defined in section a non-financial or commercial obligation. provided the premium refund clauses 4(a)(3) are deducted from Tier 1 capital in Participations in performance-based standby letters are for a period not to exceed 120 days accordance with section 2(c)(4) of this appendix A. of credit are treated in accordance with section 4 from the date of transfer; or Any non credit-enhancing IO strips receivable are of this appendix A. subject to a 100% risk weight under section 3(a)(4) 17 Participations in commitments are treated in (iii) Warranties that permit the return of this appendix A. accordance with section 4 of this appendix A. of assets in instances of fraud,
VerDate 11
misrepresentation or incomplete (8) Financial standby letter of credit Mortgage servicer cash advances that documentation. means a letter of credit or similar meet the conditions of section 4(a)(8)(i) (4) Direct credit substitute means an arrangement that represents an and (ii) of this appendix A, are not arrangement in which a bank assumes, irrevocable obligation to a third-party recourse arrangements; in form or in substance, credit risk beneficiary: (iii) Retained subordinated interests associated with an on- or off-balance (i) To repay money borrowed by, or that absorb more than their pro rata sheet asset or exposure that was not advanced to, or for the account of, a share of losses from the underlying previously owned by the bank (third- second party (the account party); or assets; party asset) and the risk assumed by the (ii) To make payment on behalf of the (iv) Assets sold under an agreement to bank exceeds the pro rata share of the account party, in the event that the repurchase, if the assets are not already bank’s interest in the third-party asset. account party fails to fulfill its included on the balance sheet; If a bank has no claim on the third-party obligation to the beneficiary. (v) Loan strips sold without asset, then the bank’s assumption of any (9) Mortgage servicer cash advance contractual recourse where the maturity credit risk is a direct credit substitute. means funds that a residential mortgage of the transferred portion of the loan is Direct credit substitutes include: servicer advances to ensure an shorter than the maturity of the (i) Financial standby letters of credit uninterrupted flow of payments, commitment under which the loan is that support financial claims on a third including advances made to cover drawn; (vi) Credit derivatives issued that party that exceed a bank’s pro rata share foreclosure costs or other expenses to absorb more than the bank’s pro rata in the financial claim; facilitate the timely collection of the share of losses from the transferred (ii) Guarantees, surety arrangements, loan. A mortgage servicer cash advance is not a recourse obligation or a direct assets; and credit derivatives and similar (vii) Clean-up calls. Clean-up calls instruments backing financial claims credit substitute if: (i) The servicer is entitled to full that are 10% or less of the original pool that exceed a bank’s pro rata share in reimbursement and this right is not balance and that are exercisable at the the financial claim; subordinated to other claims on the cash option of the bank are not recourse (iii) Purchased subordinated interests flows from the underlying asset pool; or arrangements. that absorb more than their pro rata (ii) For any one loan, the servicer’s (12) Residual interest means any on- share of losses from the underlying obligation to make nonreimbursable balance sheet asset that represents an assets; advances is contractually limited to an interest (including a beneficial interest) (iv) Credit derivative contracts under insignificant amount of the outstanding created by a transfer that qualifies as a which the bank assumes more than its principal amount of that loan. sale (in accordance with generally pro rata share of credit risk on a third- (10) Nationally recognized statistical accepted accounting principles) of party asset or exposure; rating organization (NRSRO) means an financial assets, whether through a (v) Loans or lines of credit that entity recognized by the Division of securitization or otherwise, and that provide credit enhancement for the Market Regulation of the Securities and exposes a bank to any credit risk financial obligations of a third party; Exchange Commission (or any successor directly or indirectly associated with the (vi) Purchased loan servicing assets if Division) (Commission) as a nationally transferred asset that exceeds a pro rata the servicer is responsible for credit recognized statistical rating organization share of that bank’s claim on the asset, losses or if the servicer makes or for various purposes, including the whether through subordination assumes credit-enhancing Commission’s uniform net capital provisions or other credit enhancement representations and warranties with requirements for brokers and dealers. techniques. Residual interests generally respect to the loans serviced. Mortgage (11) Recourse means a bank’s include credit-enhancing interest-only servicer cash advances that meet the retention, in form or in substance, of strips, spread accounts, cash collateral conditions of section 4(a)(8)(i) and (ii) of any credit risk directly or indirectly accounts, retained subordinated this appendix A, are not direct credit associated with an asset it has sold that interests (and other forms of substitutes; and exceeds a pro rata share of that bank’s overcollateralization) and similar assets (vii) Clean-up calls on third-party claim on the asset. If a bank has no that function as a credit enhancement. assets. Clean-up calls that are 10% or claim on a sold asset, then the retention Residual interests further include those less of the original pool balance and that of any credit risk is recourse. A recourse exposures that, in substance, cause the are exercisable at the option of the bank obligation typically arises when a bank bank to retain the credit risk of an asset are not direct credit substitutes. transfers assets and retains an explicit or exposure that had qualified as a (5) Externally rated means that an obligation to repurchase assets or to residual interest before it was sold. instrument or obligation has received a absorb losses due to a default on the Residual interests generally do not credit rating from at least one nationally payment of principal or interest or any include interests purchased from a third recognized statistical rating other deficiency in the performance of party. organization. the underlying obligor or some other (13) Risk participation means a (6) Face amount means the notional party. Recourse may also exist participation in which the originating principal, or face value, amount of an implicitly if a bank provides credit party remains liable to the beneficiary off-balance sheet item; the amortized enhancement beyond any contractual for the full amount of an obligation (e.g. cost of an asset not held for trading obligation to support assets it has sold. a direct credit substitute) purposes; and the fair value of a trading The following are examples of recourse notwithstanding that another party has asset. arrangements: acquired a participation in that (7) Financial asset means cash or (i) Credit-enhancing representations obligation. other monetary instrument, evidence of and warranties made on transferred (14) Securitization means the pooling debt, evidence of an ownership interest assets; and repackaging by a special purpose in an entity, or a contract that conveys (ii) Loan servicing assets retained entity of assets or other credit exposures a right to receive or exchange cash or pursuant to an agreement under which that can be sold to investors. another financial instrument from the bank will be responsible for losses Securitization includes transactions that another party. associated with the loans serviced. create stratified credit risk positions
VerDate 11
whose performance is dependent upon or collateral. For a direct credit supported by the direct credit substitute an underlying pool of credit exposures, substitute that is an on-balance sheet and converted using a 100% credit including loans and commitments. asset (e.g., a purchased subordinated conversion factor. The resulting credit (15) Structured finance program security), a bank must calculate risk- equivalent amount is then assigned to means a program where receivable weighted assets using the amount of the the risk-weight category appropriate to interests and asset-backed securities direct credit substitute and the full the obligor in the underlying issued by multiple participants are amount of the assets it supports, i.e., all transaction, after considering any purchased by a special purpose entity the more senior positions in the associated guarantees or collateral. that repackages those exposures into structure. securities that can be sold to investors. (c) Credit equivalent amount and risk (3) In the case of a direct credit Structured finance programs allocate weight of participations in, and substitute that takes the form of a credit risks, generally, between the syndications of, direct credit substitutes. syndication where each bank or participants and credit enhancement The credit equivalent amount for a participating entity is obligated only for provided to the program. participation interest in, or syndication its pro rata share of the risk and there (16) Traded position means a position of, a direct credit substitute is calculated is no recourse to the originating entity, retained, assumed or issued in and risk weighted as follows: each bank’s credit equivalent amount connection with a securitization that is (1) In the case of a direct credit will be calculated by multiplying only externally rated, where there is a substitute in which a bank has conveyed its pro rata share of the assets supported reasonable expectation that, in the near a risk participation, the full amount of by the direct credit substitute by a 100% future, the rating will be relied upon by: the assets that are supported by the conversion factor. The resulting credit (i) Unaffiliated investors to purchase direct credit substitute is converted to a equivalent amount is then assigned to the position; or credit equivalent amount using a 100% the risk-weight category appropriate to (ii) An unaffiliated third party to enter conversion factor. The pro rata share of the obligor in the underlying into a transaction involving the the credit equivalent amount that has transaction, after considering any position, such as a purchase, loan or been conveyed through a risk associated guarantees or collateral. repurchase agreement. participation is then assigned to (d) Externally rated positions: credit- (b) Credit equivalent amounts and whichever risk-weight category is lower: equivalent amounts and risk weights.— risk weights of recourse obligations and the risk-weight category appropriate to (1) Traded positions. With respect to a direct credit substitutes—(1) Credit- the obligor in the underlying equivalent amount. Except as otherwise transaction, after considering any recourse obligation, direct credit provided, the credit-equivalent amount associated guarantees or collateral, or substitute, residual interest (other than for a recourse obligation or direct credit the risk-weight category appropriate to a credit-enhancing interest-only strip) or substitute is the full amount of the the party acquiring the participation. asset- or mortgage-backed security that credit-enhanced assets for which the The pro rata share of the credit is a ‘‘traded position’’ and that has bank directly or indirectly retains or equivalent amount that has not been received an external rating on a long- assumes credit risk multiplied by a participated out is assigned to the risk- term position that is one grade below 100% conversion factor. weight category appropriate to the investment grade or better or a short- (2) Risk-weight factor. To determine obligor after considering any associated term position that is investment grade, the bank’s risk-weighted assets for off- guarantees or collateral. the bank may multiply the face amount balance sheet recourse obligations and (2) In the case of a direct credit of the position by the appropriate risk direct credit substitutes, the credit substitute in which the bank has weight, determined in accordance with equivalent amount is assigned to the acquired a risk participation, the Tables B or C of this Appendix A.24 If risk category appropriate to the obligor acquiring bank’s pro rata share of the a traded position receives more than one in the underlying transaction, after direct credit substitute is multiplied by external rating, the lowest single rating considering any associated guarantees the full amount of the assets that are will apply.
TABLE B
Risk weight Long-term rating category Examples (In percent)
Highest or second highest investment grade ...... AAA, AA ...... 20 Third highest investment grade ...... A ...... 50 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200
TABLE C
Risk weight Short-term rating category Examples (In percent)
Highest investment grade ...... A–1, P–1 ...... 20 Second highest investment grade ...... A–2, P–2 ...... 50 Lowest investment grade ...... A–3, P–3 ...... 100
24 principal-only strips, that are not credit enhancing Stripped mortgage-backed securities or other must be assigned to the 100% risk category. similar instruments, such as interest-only or
VerDate 11
(2) Non-traded positions. A recourse traded position provides substantive of any existing associated deferred tax obligation, direct credit substitute, credit support to the unrated position liability), even if the amount of risk- residual interest (but not a credit- until the unrated position matures. based capital required to be maintained enhancing interest-only strip) or asset- (f) Residual Interests—(1) exceeds the full risk-based capital or mortgage-backed security extended in Concentration limit on credit-enhancing requirement for the assets transferred. connection with a securitization that is interest-only strips. In addition to the Transactions that, in substance, result in not a ‘‘traded position’’ may be assigned capital requirement provided by section the retention of credit risk associated a risk weight in accordance with section 4(f)(2) of this appendix A, a bank must with a transferred residual interest will 4(d)(1) of this appendix A if: deduct from Tier 1 capital all credit- be treated as if the residual interest was (i) It has been externally rated by enhancing interest-only strips in excess retained by the bank and not more than one NRSRO; of 25 percent of Tier 1 capital in transferred. (ii) It has received an external rating accordance with section 2(c)(2)(iv) of (4) Residual interests and other on a long-term position that is one this appendix A. category below investment grade or (2) Credit-enhancing interest-only recourse obligations. Where the better or a short-term position that is strip capital requirement. After applying aggregate capital requirement for investment grade by all NRSROs the concentration limit to credit- residual interests (including credit- providing a rating; enhancing interest-only strips in enhancing interest-only strips) and (iii) The ratings are publicly available; accordance with section (f)(1), a bank recourse obligations arising from the and must maintain risk-based capital for a same transfer of assets exceed the full (iv) The ratings are based on the same credit-enhancing interest-only strip risk-based capital requirement for those criteria used to rate traded positions. equal to the remaining amount of the assets, a bank must maintain risk-based If the ratings are different, the lowest credit-enhancing interest-only strip (net capital equal to the greater of the risk- rating will determine the risk category of any existing associated deferred tax based capital requirement for the to which the recourse obligation, liability), even if the amount of risk- residual interest as calculated under residual interest or direct credit based capital required to be maintained sections 4(f)(1) through (3) of this substitute will be assigned. exceeds the full risk-based capital appendix A or the full risk-based capital (e) Senior positions not externally requirement for the assets transferred. requirement for the assets transferred. rated. For a recourse obligation, direct Transactions that, in substance, result in (g) Positions that are not rated by an credit substitute, residual interest or the retention of credit risk associated NRSRO. A position (but not a residual asset- or mortgage-backed security that with a transferred credit-enhancing interest) extended in connection with a is not externally rated but is senior or interest-only strip will be treated as if securitization and that is not rated by an preferred in all features to a traded the credit-enhancing interest-only strip NRSRO may be risk-weighted based on position (including collateralization and was retained by the bank and not the bank’s determination of the credit maturity), a bank may apply a risk transferred. rating of the position, as specified in weight to the face amount of the senior (3) Other residual interests capital Table D of this appendix A, multiplied position in accordance with section requirement. Except as provided in by the face amount of the position. In 4(d)(1) of this appendix A, based upon sections (d) or (e) of this section, a bank order to qualify for this treatment, the the traded position, subject to any must maintain risk-based capital for a bank’s system for determining the credit current or prospective supervisory residual interest (excluding a credit- rating of the position must meet one of guidance and the bank satisfying the enhancing interest-only strip) equal to the three alternative standards set out in OCC that this treatment is appropriate. the face amount of the residual interest section 4(g)(1)through (3) of this This section will apply only if the that is retained on the balance sheet (net appendix A.
TABLE D
Risk weight Rating category Examples (In percent)
Investment grade ...... BBB, or better ...... 100 One category below investment grade ...... BB ...... 200
(1) Internal risk rating used for asset- incorporates the full range of risks (iv) The bank’s internal credit risk backed programs. A direct credit arising from a bank’s participation in system must identify gradations of risk substitute (but not a purchased credit- securitization activities; among ‘‘pass’’ assets and other risk enhancing interest-only strip) is (ii) Internal credit ratings are linked to positions; assumed by a bank in connection with measurable outcomes, such as the (v) The bank must have clear, explicit an asset-backed commercial paper probability that the position will criteria that are used to classify assets program sponsored by the bank and the experience any loss, the position’s into each internal risk grade, including bank is able to demonstrate to the expected loss given default, and the subjective factors; satisfaction of the OCC, prior to relying degree of variance in losses given upon its use, that the bank’s internal (vi) The bank must have independent credit risk rating system is adequate. default on that position; credit risk management or loan review Adequate internal credit risk rating (iii) The bank’s internal credit risk personnel assigning or reviewing the systems usually contain the following system must separately consider the risk credit risk ratings; criteria: associated with the underlying loans or (vii) An internal audit procedure (i) The internal credit risk system is borrowers, and the risk associated with should periodically verify that internal an integral part of the bank’s risk the structure of a particular risk ratings are assigned in accordance management system that explicitly securitization transaction; with the bank’s established criteria.
VerDate 11
(viii) The bank must monitor the rule. If the maximum contractual subsection (i)) of this section 4, with performance of the internal credit risk exposure to loss retained or assumed by respect to a transfer of a small business ratings assigned to nonrated, nontraded a bank is less than the effective risk- loan or a lease of personal property with direct credit substitutes over time to based capital requirement, as recourse that is a sale under generally determine the appropriateness of the determined in accordance with section accepted accounting principles, a initial credit risk rating assignment and 4(b) of this appendix A, for the asset qualified bank may elect to apply the adjust individual credit risk ratings, or supported by the bank’s position, the following treatment: the overall internal credit risk ratings risk based capital required under this (i) The bank establishes and maintains system, as needed; and appendix A is limited to the bank’s a non-capital reserve under generally (ix) The internal credit risk system contractual exposure, less any recourse accepted accounting principles must make credit risk rating liability account established in sufficient to meet the reasonable assumptions that are consistent with, or accordance with generally accepted estimated liability of the bank under the more conservative than, the credit risk accounting principles. This limitation recourse arrangement; and rating assumptions and methodologies does not apply when a bank provides (ii) For purposes of calculating the of NRSROs. credit enhancement beyond any bank’s risk-based capital ratio, the bank (2) Program Ratings. A direct credit contractual obligation to support assets includes only the face amount of its substitute or recourse obligation (but not that it has sold. recourse in its risk-weighted assets. a residual interest) is assumed or (2) Related on-balance sheet assets. If (3) Limit on aggregate amount of retained by a bank in connection with an asset is included in the calculation recourse. The total outstanding amount a structured finance program and a of the risk-based capital requirement of recourse retained by a qualified bank NRSRO has reviewed the terms of the under this section 4 of this appendix A with respect to transfers of small program and stated a rating for positions and also appears as an asset on a bank’s business loans and leases of personal associated with the program. If the balance sheet, the asset is risk-weighted property and included in the risk- program has options for different only under this section 4 of this weighted assets of the bank as described combinations of assets, standards, appendix A, except in the case of loan in section 4(i)(2) of this appendix A may internal credit enhancements and other servicing assets and similar not exceed 15 percent of the bank’s total relevant factors, and the NRSRO arrangements with embedded recourse capital after adjustments and specifies ranges of rating categories to obligations or direct credit substitutes. deductions, unless the OCC specifies a them, the bank may apply the rating In that case, both the on-balance sheet greater amount by order. category applicable to the option that servicing assets and the related recourse (4) Bank that ceases to be qualified or corresponds to the bank’s position. In obligations or direct credit substitutes that exceeds aggregate limit. If a bank order to rely on a program rating, the must both be separately risk weighted ceases to be a qualified bank or exceeds bank must demonstrate to the OCC’s and incorporated into the risk-based the aggregate limit in section 4(i)(3) of satisfaction that the credit risk rating capital calculation. this appendix A, the bank may continue assigned to the program meets the same (i) Alternative Capital Calculation for to apply the capital treatment described standards generally used by NRSROs for Small Business Obligations. (1) in section 4(i)(2) of this appendix A to rating traded positions. The bank must Definitions. For purposes of this section transfers of small business loans and also demonstrate to the OCC’s 4(i): leases of personal property that satisfaction that the criteria underlying (i) Qualified bank means a bank that: occurred when the bank was qualified the NRSRO’s assignment of ratings for (A) Is well capitalized as defined in and did not exceed the limit. the program are satisfied for the 12 CFR 6.4 without applying the capital (5) Prompt Corrective Action not particular position. If a bank treatment described in this section 4(i), affected. (i) A bank shall compute its participates in a securitization or capital without regard to this section sponsored by another party, the OCC (B) Is adequately capitalized as 4(i) for purposes of prompt corrective may authorize the bank to use this defined in 12 CFR 6.4 without applying action (12 U.S.C. 1831o and 12 CFR part approach based on a program rating the capital treatment described in this 6) unless the bank is an adequately or obtained by the sponsor of the program. section 4(i) and has received written well capitalized bank (without applying (3) Computer Program. The bank is permission from the appropriate district the capital treatment described in this using an acceptable credit assessment office of the OCC to apply the capital section 4(i)) and, after applying the computer program to determine the treatment described in this section 4(i). capital treatment described in this rating of a direct credit substitute or (ii) Recourse has the meaning given to section 4(i), the bank would be well recourse obligation (but not a residual such term under generally accepted capitalized. interest) extended in connection with a accounting principles. (ii) A bank shall compute its capital structured finance program. A NRSRO (iii) Small business means a business without regard to this section 4(i) for must have developed the computer that meets the criteria for a small purposes of 12 U.S.C. 1831o(g) program and the bank must demonstrate business concern established by the regardless of the bank’s capital level. to the OCC’s satisfaction that ratings Small Business Administration in 13 * * * * * under the program correspond credibly CFR part 121 pursuant to 15 U.S.C. 632. and reliably with the rating of traded (2) Capital and reserve requirements. 4. In appendix A, Table 2, ‘‘100 positions. Notwithstanding the risk-based capital Percent Conversion Factor,’’ Item 1 is (h) Limitations on risk-based capital treatment outlined in section 2(c)(4) and revised to read as follows: requirements—(1) Low-level exposure any other subsection (other than * * * * *
VerDate 11
TABLE 2—CREDIT CONVERSION FACTORS FOR OFF-BALANCE SHEET ITEMS
100 Percent Conversion Factor 1. [Reserved]
* * * * * Appendix A To Part 208—Capital A. * * * Dated: October 23, 2001. Adequacy Guidelines for State Member 1. Core capital elements (tier 1 John D. Hawke, Jr., Banks: Risk-Based Measure capital). The tier 1 component of a Comptroller of the Currency * * * * * bank’s qualifying capital must represent at least 50 percent of qualifying total FEDERAL RESERVE SYSTEM II. * * * capital and may consist of the following 12 CFR Chapter II A bank’s qualifying total capital items that are defined as core capital Authority and Issuance consists of two types of capital elements: components: ‘‘core capital elements’’ (i) Common stockholders’ equity; For the reasons set forth in the joint (comprising tier 1 capital) and (ii) Qualifying noncumulative preamble, parts 208 and 225 of chapter ‘‘supplementary capital elements’’ perpetual preferred stock (including II of title 12 of the Code of Federal (comprising tier 2 capital). These capital related surplus); and Regulations are amended as follows: elements and the various limits, (iii) Minority interest in the equity accounts of consolidated subsidiaries. PART 208—MEMBERSHIP OF STATE restrictions, and deductions to which they are subject, are discussed below Tier 1 capital is generally defined as BANKING INSTITUTIONS IN THE the sum of core capital elements 5 less and are set forth in Attachment II. FEDERAL RESERVE SYSTEM goodwill, other intangible assets, and (REGULATION H) The Federal Reserve will, on a case- interest-only strips receivables that are by-case basis, determine whether and, if required to be deducted in accordance 1. The authority citation for part 208 so, how much of any instrument that continues to read as follows: with section II.B.1. of this appendix. does not fit wholly within the terms of * * * * * Authority: 12 U.S.C. 24, 24a, 36, 92a, 93a, one of the capital categories set forth 248(a), 248(c), 321–338a, 371d, 461, 481–486, 2. Supplementary capital elements below or that does not have an ability (tier 2 capital). The tier 2 component of 601, 611, 1814, 1816, 1818, 1820(d)(9), to absorb losses commensurate with the 1823(j), 1828(o), 1831o, 1831p–1, 1831r–1, a bank’s qualifying capital may consist 1831w, 1835a, 1882, 2901–2907, 3105, 3310, capital treatment otherwise specified of the following items that are defined 3331–3351, and 3906–3909; 15 U.S.C. 78b, below will be counted as an element of as supplementary capital elements: 78l(b), 78l(g), 78l(i), 78o–4(c)(5), 78q, 78q–1, tier 1 or tier 2 capital. In making such (i) Allowance for loan and lease losses and 78w; 31 U.S.C. 5318; 42 U.S.C. 4012a, a determination, the Federal Reserve (subject to limitations discussed below); 4104a, 4104b, 4106, and 4128. will consider the similarity of the (ii) Perpetual preferred stock and 2. In appendix A to part 208: instrument to instruments explicitly related surplus (subject to conditions A. The three introductory paragraphs treated in the guidelines, the ability of discussed below); of section II, the first five paragraphs of the instrument to absorb losses while (iii) Hybrid capital instruments (as section II.A.1, and the first seven the bank operates as a going concern, defined below), and mandatory paragraphs of section II.A.2. are revised the maturity and redemption features of convertible debt securities; and footnote 5 is removed and reserved; the instrument, and other relevant terms (iv) Term subordinated debt and B. In section II.B., a new paragraph and factors. To qualify as an element of intermediate-term preferred stock, (i)(c) is added, section II.B.1.b. and tier 1 or tier 2 capital, a capital including related surplus (subject to footnote 14 are revised, new sections instrument may not contain or be limitations discussed below); II.B.1.c. through II.B.1.g. are added, and covered by any covenants, terms, or (v) Unrealized holding gains on equity section II.B.4. is revised; restrictions that are inconsistent with securities (subject to limitations C. In section III.A., a new safe and sound banking practices. discussed in section II.A.2.e. of this undesignated fifth paragraph is added at Redemptions of permanent equity or appendix). the end of the section; other capital instruments before stated The maximum amount of tier 2 D. In section III.B., paragraph 3 is maturity could have a significant impact capital that may be included in a bank’s revised and footnote 23 is removed, and on a bank’s overall capital structure. qualifying total capital is limited to 100 in paragraph 4, footnote 24 is removed; Consequently, a bank considering such percent of tier 1 capital (net of goodwill, E. In section III.C., paragraphs 1 a step should consult with the Federal other intangible assets, and interest-only through 3, footnotes 25 through 39 are Reserve before redeeming any equity or strips receivables that are required to be redesignated as footnotes 23 through 37, debt capital instrument (prior to deducted in accordance with section and paragraph 4 is revised; maturity) if such redemption could have II.B.1. of this appendix). F. In section III.D., the introductory a material effect on the level or * * * * * paragraph and paragraph 1 are revised; composition of the institution’s capital G. In sections III.D. and III.E., footnote base.4 B.*** 46 is removed and footnotes 47 through (i) * * * 51 are redesignated as footnotes 44 4 Consultation would not ordinarily be necessary (c) Certain credit-enhancing interest- through 48; if an instrument were redeemed with the proceeds only strips receivables—deducted from H. In section IV.B., footnote 52 is of, or replaced by, a like amount of a similar or the sum of core capital elements in higher quality capital instrument and the removed; and organization’s capital position is considered fully I. Attachment II is revised. adequate by the Federal Reserve. 5 [Reserved]
VerDate 11
accordance with sections II.B.1.c. nonmortgage servicing assets, and disallowed deferred-tax assets, through e. of this appendix. purchased credit card relationships that regardless of the date acquired. * * * * * a bank may include in capital shall be iii. Banks may elect to deduct 1. Goodwill, other intangible assets, the lesser of 90 percent of their fair disallowed mortgage servicing assets, and residual interests. *** value, as determined in accordance with disallowed nonmortgage servicing b. Other intangible assets. i. All section II.B.1.f. of this appendix, or 100 assets, and disallowed credit-enhancing servicing assets, including servicing percent of their book value, as adjusted I/Os (both purchased and retained) on a assets on assets other than mortgages for capital purposes in accordance with basis that is net of any associated (i.e., nonmortgage servicing assets), are the instructions in the commercial bank deferred tax liability. Deferred tax included in this appendix as Consolidated Reports of Condition and liabilities netted in this manner cannot identifiable intangible assets. The only Income (Call Reports). The amount of I/ also be netted against deferred-tax assets types of identifiable intangible assets Os that a bank may include in capital when determining the amount of that may be included in, that is, not shall be its fair value. If both the deferred-tax assets that are dependent deducted from, a bank’s capital are application of the limits on mortgage upon future taxable income. readily marketable mortgage servicing servicing assets, nonmortgage servicing f. Valuation. Banks must review the assets, nonmortgage servicing assets, assets, and purchased credit card book value of all intangible assets at and purchased credit card relationships. relationships and the adjustment of the least quarterly and make adjustments to The total amount of these assets that balance sheet amount for these assets these values as necessary. The fair value may be included in capital is subject to would result in an amount being of mortgage servicing assets, the limitations described below in deducted from capital, the bank would nonmortgage servicing assets, purchased sections II.B.1.d. and e. of this deduct only the greater of the two credit card relationships, and credit- appendix. amounts from its core capital elements enhancing I/Os also must be determined ii. The treatment of identifiable in determining tier 1 capital. at least quarterly. This determination intangible assets set forth in this section e. Tier 1 capital limitation. i. The total shall include adjustments for any generally will be used in the calculation amount of mortgage servicing assets, significant changes in original valuation of a bank’s capital ratios for supervisory nonmortgage servicing assets, and assumptions, including changes in and applications purposes. However, in purchased credit card relationships that prepayment estimates or account making an overall assessment of a may be included in capital, in the attrition rates. Examiners will review bank’s capital adequacy for applications aggregate, cannot exceed 100 percent of both the book value and the fair value purposes, the Board may, if it deems tier 1 capital. The aggregate of assigned to these assets, together with appropriate, take into account the nonmortgage servicing assets and supporting documentation, during the quality and composition of a bank’s purchased credit card relationships are examination process. In addition, the capital, together with the quality and subject to a separate sublimit of 25 Federal Reserve may require, on a case- value of its tangible and intangible percent of tier 1 capital. In addition, the by-case basis, an independent valuation assets. total amount of credit-enhancing I/Os of a bank’s intangible assets or credit- c. Credit-enhancing interest-only (both purchased and retained) that may enhancing I/Os. strips receivables (I/Os). i. Credit- be included in capital cannot exceed 25 g. Growing organizations. Consistent enhancing I/Os are on-balance sheet percent of tier 1 capital.14 with long-standing Board policy, banks assets that, in form or in substance, experiencing substantial growth, ii. For purposes of calculating these represent the contractual right to receive whether internally or by acquisition, are limitations on mortgage servicing assets, some or all of the interest due on expected to maintain strong capital nonmortgage servicing assets, purchased transferred assets and expose the bank positions substantially above minimum credit card relationships, and credit- to credit risk directly or indirectly supervisory levels, without significant enhancing I/Os, tier 1 capital is defined associated with transferred assets that reliance on intangible assets or credit- as the sum of core capital elements, net exceeds a pro rata share of the bank’s enhancing I/Os. of goodwill, and net of all identifiable claim on the assets, whether through * * * * * intangible assets other than mortgage subordination provisions or other credit 4. Deferred-tax assets. a. The amount servicing assets, nonmortgage servicing enhancement techniques. Such I/Os, of deferred-tax assets that is dependent assets, and purchased credit card whether purchased or retained, upon future taxable income, net of the relationships, prior to the deduction of including other similar ‘‘spread’’ assets, valuation allowance for deferred-tax any disallowed mortgage servicing may be included in, that is, not assets, that may be included in, that is, assets, any disallowed nonmortgage deducted from, a bank’s capital subject not deducted from, a bank’s capital may servicing assets, any disallowed to the limitations described below in not exceed the lesser of: purchased credit card relationships, any sections II.B.1.d. and e. of this i. The amount of these deferred-tax disallowed credit-enhancing I/Os (both appendix. assets that the bank is expected to purchased and retained), and any ii. Both purchased and retained realize within one year of the calendar credit-enhancing I/Os, on a non-tax quarter-end date, based on its 14 adjusted basis, are included in the total Amounts of servicing assets, purchased credit projections of future taxable income for card relationships, and credit-enhancing I/Os (both 20 amount that is used for purposes of retained and purchased) in excess of these that year, or determining whether a bank exceeds the limitations, as well as all other identifiable tier 1 limitation described below in this intangible assets, including core deposit intangibles 20 To determine the amount of expected deferred- and favorable leaseholds, are to be deducted from tax assets realizable in the next 12 months, an section. In determining whether an I/O a bank’s core capital elements in determining tier institution should assume that all existing or other types of spread assets serve as 1 capital. However, identifiable intangible assets temporary differences fully reverse as of the report a credit enhancement, the Federal (other than mortgage servicing assets and purchased date. Projected future taxable income should not Reserve will look to the economic credit card relationships) acquired on or before include net operating loss carry-forwards to be used February 19, 1992, generally will not be deducted during that year or the amount of existing substance of the transaction. from capital for supervisory purposes, although temporary differences a bank expects to reverse d. Fair value limitation. The amount they will continue to be deducted for applications within the year. Such projections should include of mortgage servicing assets, purposes. Continued
VerDate 11
ii. 10 percent of tier 1 capital. guidelines, as well as other relevant previously owned by the bank (third- b. The reported amount of deferred- factors. party asset) and the risk assumed by the tax assets, net of any valuation * * * * * bank exceeds the pro rata share of the allowance for deferred-tax assets, in bank’s interest in the third-party asset. excess of the lesser of these two B.*** If the bank has no claim on the third- amounts is to be deducted from a bank’s 3. Recourse obligations, direct credit party asset, then the bank’s assumption core capital elements in determining tier substitutes, residual interests, and asset- of any credit risk with respect to the 1 capital. For purposes of calculating and mortgage-backed securities. Direct third party asset is a direct credit the 10 percent limitation, tier 1 capital credit substitutes, assets transferred substitute. Direct credit substitutes is defined as the sum of core capital with recourse, and securities issued in include, but are not limited to: elements, net of goodwill and net of all connection with asset securitizations 1. Financial standby letters of credit identifiable intangible assets other than and structured financings are treated as that support financial claims on a third mortgage servicing assets, nonmortgage described below. The term ‘‘asset party that exceed a bank’s pro rata share servicing assets, purchased credit card securitizations’’ or ‘‘securitizations’’ in of losses in the financial claim; relationships, prior to the deduction of this rule includes structured financings, 2. Guarantees, surety arrangements, any disallowed mortgage servicing as well as asset securitization credit derivatives, and similar assets, any disallowed nonmortgage transactions. instruments backing financial claims servicing assets, any disallowed a. Definitions—i. Credit derivative that exceed a bank’s pro rata share in purchased credit card relationships, any means a contract that allows one party the financial claim; disallowed credit-enhancing I/Os, and (the ‘‘protection purchaser’’) to transfer 3. Purchased subordinated interests or any disallowed deferred-tax assets. the credit risk of an asset or off-balance securities that absorb more than their There generally is no limit in tier 1 sheet credit exposure to another party pro rata share of losses from the capital on the amount of deferred-tax (the ‘‘protection provider’’) The value of underlying assets; assets that can be realized from taxes a credit derivative is dependent, at least 4. Credit derivative contracts under paid in prior carry-back years or from in part, on the credit performance of the which the bank assumes more than its future reversals of existing taxable ‘‘reference asset.’’ pro rata share of credit risk on a third temporary differences, but, for banks ii. Credit-enhancing representations party exposure; that have a parent, this may not exceed and warranties means representations 5. Loans or lines of credit that provide the amount the bank could reasonably and warranties that are made or credit enhancement for the financial expect its parent to refund. assumed in connection with a transfer obligations of an account party; * * * * * of assets (including loan servicing 6. Purchased loan servicing assets if assets) and that obligate the bank to the servicer is responsible for credit III.*** protect investors from losses arising losses or if the servicer makes or A.*** from credit risk in the assets transferred assumes credit-enhancing or the loans serviced. Credit-enhancing representations and warranties with The Federal Reserve will, on a case- representations and warranties include respect to the loans serviced. Mortgage by-case basis, determine the appropriate promises to protect a party from losses servicer cash advances that meet the risk weight for any asset or credit resulting from the default or conditions of section III.B.3.a.viii. of equivalent amount of an off-balance nonperformance of another party or this appendix are not direct credit sheet item that does not fit wholly from an insufficiency in the value of the substitutes; and within one of the risk weight categories collateral. Credit-enhancing 7. Clean-up calls on third party assets set forth below or that imposes risks on representations and warranties do not are direct credit substittues. Clean-up a bank that are incommensurate with include: calls that are 10 percent or less of the the risk weight otherwise specified 1. Early default clauses and similar original pool balance that are below for the asset or off-balance sheet warranties that permit the return of, or exercisable at the option of the bank are item. In addition, the Federal Reserve premium refund clauses covering, 1–4 not direct credit substitutes. will, on a case-by-case basis, determine family residential first mortgage loans iv. Externally rated means that an the appropriate credit conversion factor that qualify for a 50 percent risk weight instrument or obligation has received a for any off-balance sheet item that does for a period not to exceed 120 days from credit rating from a nationally- not fit wholly within one of the credit the date of transfer. These warranties recognized statistical rating conversion factors set forth below or may cover only those loans that were organization. that imposes risks on a bank that are originated within 1 year of the date of v. Face amount means the notional incommensurate with the credit transfer; principal, or face value, amount of an conversion factors otherwise specified 2. Premium refund clauses that cover off-balance sheet item; the amortized below for the off-balance sheet item. In assets guaranteed, in whole or in part, cost of an asset not held for trading making such a determination, the by the U.S. Government, a U.S. purposes; and the fair value of a trading Federal Reserve will consider the Government agency or a government- asset. similarity of the asset or off-balance sponsored enterprise, provided the vi. Financial asset means cash or sheet item to assets or off-balance sheet premium refund clauses are for a period other monetary instrument, evidence of items explicitly treated in the not to exceed 120 days from the date of debt, evidence of an ownership interest transfer; or in an entity, or a contract that conveys the estimated effect of tax-planning strategies that 3. Warranties that permit the return of a right to receive or exchange cash or the organization expects to implement to realize net operating losses or tax-credit carry-forwards that assets in instances of misrepresentation, another financial instrument from would otherwise expire during the year. Institutions fraud or incomplete documentation. another party. do not have to prepare a new 12-month projection iii. Direct credit substitute means an vii. Financial standby letter of credit each quarter. Rather, on interim report dates, arrangement in which a bank assumes, means a letter of credit or similar institutions may use the future-taxable income projections for their current fiscal year, adjusted for in form or in substance, credit risk arrangement that represents an any significant changes that have occurred or are associated with an on-or off-balance irrevocable obligation to a third-party expected to occur. sheet credit exposure that was not beneficiary:
VerDate 11
1. To repay money borrowed by, or 3. Retained subordinated interests dependent upon an underlying pool of advanced to, or for the account of, a that absorb more than their pro rata credit exposures, including loans and second party (the account party), or share of losses from the underlying commitments. 2. To make payment on behalf of the assets; xiv. Structured finance program account party, in the event that the 4. Assets sold under an agreement to means a program where receivable account party fails to fulfill its repurchase, if the assets are not already interests and asset-backed securities obligation to the beneficiary. included on the balance sheet; issued by multiple participants are viii. Mortgage servicer cash advance 5. Loan strips sold without purchased by a special purpose entity means funds that a residential mortgage contractual recourse where the maturity that repackages those exposures into loan servicer advances to ensure an of the transferred loan is shorter than securities that can be sold to investors. uninterrupted flow of payments, the maturity of the commitment under Structured finance programs allocate including advances made to cover which the loan is drawn; credit risks, generally, between the foreclosure costs or other expenses to 6. Credit derivatives issued that participants and credit enhancement facilitate the timely collection of the absorb more than the bank’s pro rata provided to the program. loan. A mortgage servicer cash advance share of losses from the transferred xv. Traded position means a position is not a recourse obligation or a direct assets; and that is externally rated and is retained, credit substitute if: 7. Clean-up calls at inception that are assumed, or issued in connection with 1. The servicer is entitled to full greater than 10 percent of the balance of an asset securitization, where there is a reimbursement and this right is not the original pool of transferred loans. reasonable expectation that, in the near subordinated to other claims on the cash Clean-up calls that are 10 percent or less future, the rating will be relied upon by flows from the underlying asset pool; or of the original pool balance that are unaffiliated investors to purchase the 2. For any one loan, the servicer’s exercisable at the option of the bank are position; or an unaffiliated third party to obligation to make nonreimbursable not recourse arrangements. enter into a transaction involving the advances is contractually limited to an xi. Residual interest means any on- position, such as a purchase, loan, or insignificant amount of the outstanding balance sheet asset that represents an repurchase agreement. principal balance of that loan. interest (including a beneficial interest) b. Credit equivalent amounts and risk ix. Nationally recognized statistical created by a transfer that qualifies as a weight of recourse obligations and direct rating organization (NRSRO) means an sale (in accordance with generally credit substitutes. i. Credit equivalent entity recognized by the Division of accepted accounting principles) of amount. Except as otherwise provided Market Regulation of the Securities and financial assets, whether through a in sections III.B.3.c. through f. and Exchange Commission (or any successor securitization or otherwise, and that III.B.5. of this appendix, the credit Division) (Commission) as a nationally exposes the bank to credit risk directly equivalent amount for a recourse recognized statistical rating organization or indirectly associated with the obligation or direct credit substitute is for various purposes, including the transferred assets that exceeds a pro rata the full amount of the credit-enhanced Commission’s uniform net capital share of the bank’s claim on the assets, assets for which the bank directly or requirements for brokers and dealers. whether through subordination indirectly retains or assumes credit risk x. Recourse means the retention, by a provisions or other credit enhancement multiplied by a 100 percent conversion bank, in form or in substance, of any techniques. Residual interests generally factor. credit risk directly or indirectly include credit-enhancing I/Os, spread ii. Risk-weight factor. To determine associated with an asset it has accounts, cash collateral accounts, the bank’s risk-weight factor for off- transferred and sold that exceeds a pro retained subordinated interests, other balance sheet recourse obligations and rata share of the bank’s claim on the forms of over-collateralization, and direct credit substitutes, the credit asset. If a bank has no claim on a similar assets that function as a credit equivalent amount is assigned to the transferred asset, then the retention of enhancement. Residual interests further risk category appropriate to the obligor any risk of credit loss is recourse. A include those exposures that, in in the underlying transaction, after recourse obligation typically arises substance, cause the bank to retain the considering any associated guarantees when a bank transfers assets and retains credit risk of an asset or exposure that or collateral. For a direct credit an explicit obligation to repurchase the had qualified as a residual interest substitute that is an on-balance sheet assets or absorb losses due to a default before it was sold. Residual interests asset (e.g., a purchased subordinated on the payment of principal or interest generally do not include interests security), a bank must calculate risk- or any other deficiency in the purchased from a third party, except weighted assets using the amount of the performance of the underlying obligor that purchased credit-enhancing I/Os direct credit substitute and the full or some other party. Recourse may also are residual interests for purposes of amount of the assets it supports, i.e., all exist implicitly if a bank provides credit this appendix. the more senior positions in the enhancement beyond any contractual xii. Risk participation means a structure. The treatment of direct credit obligation to support assets it has sold. participation in which the originating substitutes that have been syndicated or The following are examples of recourse party remains liable to the beneficiary in which risk participations have been arrangements: for the full amount of an obligation (e.g., conveyed or acquired is set forth in 1. Credit-enhancing representations a direct credit substitute) section III.D.1 of this appendix. and warranties made on the transferred notwithstanding that another party has c. Externally-rated positions: credit assets; acquired a participation in that equivalent amounts and risk weights of 2. Loan servicing assets retained obligation. recourse obligations, direct credit pursuant to an agreement under which xiii. Securitization means the pooling substitutes, residual interests, and asset- the bank will be responsible for credit and repackaging by a special purpose and mortgage-backed securities losses associated with the loans being entity of assets or other credit exposures (including asset-backed commercial serviced. Mortgage servicer cash into securities that can be sold to paper). i. Traded positions. With respect advances that meet the conditions of investors. Securitization includes to a recourse obligation, direct credit section III.B.3.a.viii. of this appendix are transactions that create stratified credit substitute, residual interest (other than not recourse arrangements; risk positions whose performance is a credit-enhancing I/O strip) or asset-
VerDate 11
and mortgage-backed security grade, the bank may multiply the face that are not credit enhancements, must (including asset-backed commercial amount of the position by the be assigned to the 100 percent risk paper) that is a traded position and that appropriate risk weight, determined in category. If a traded position has has received an external rating on a accordance with the tables below. received more than one external rating, long-term position that is one grade Stripped mortgage-backed securities and the lowest single rating will apply. below investment grade or better or a other similar instruments, such as short-term rating that is investment interest-only or principal-only strips
Risk weight Long-term rating category Examples (In percent)
Highest or second highest investment grade ...... AAA, AA ...... 20 Third highest investment grade ...... A ...... 50 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200
Risk weight Short-term rating Examples (In percent)
Highest investment grade ...... A–1, P–1 ...... 20 Second highest investment grade ...... A–2, P–2 ...... 50 Lowest investment grade ...... A–3, P–3 ...... 100
ii. Non-traded positions. A recourse that this treatment is appropriate. This existing associated deferred tax obligation, direct credit substitute, or section will apply only if the traded liability), even if the amount of risk- residual interest (but not a credit- subordinated position provides based capital required to be maintained enhancing I/O strip) extended in substantive credit support to the exceeds the full risk-based capital connection with a securitization that is unrated position until the unrated requirement for the assets transferred. not a traded position may be assigned a position matures. Transactions that, in substance, result in risk weight in accordance with section e. Capital requirement for residual the retention of credit risk associated III.B.3.c.i. of this appendix if: interests—i. Capital requirement for with a transferred residual interest will 1. It has been externally rated by more credit-enhancing I/O strips. After be treated as if the residual interest was than one NRSRO; applying the concentration limit to retained by the bank and not 2. It has received an external rating on credit-enhancing I/O strips (both transferred. a long-term position that is one grade purchased and retained) in accordance 2. Where the aggregate capital below investment grade or better or on with sections II.B.2.c. through e. of this requirement for residual interests and a short-term position that is investment appendix, a bank must maintain risk- other recourse obligation in connection grade by all NRSROs providing a rating; based capital for a credit-enhancing I/O with the same transfer of assets exceed 3. The ratings are publicly available; strip (both purchased and retained), the full risk-based capital requirement and regardless of the external rating on that for those assets, a bank must maintain 4. The ratings are based on the same position, equal to the remaining amount risk-based capital equal to the greater of criteria used to rate traded positions. of the credit-enhancing I/O strip (net of the risk-based capital requirement for If the ratings are different, the lowest any existing associated deferred tax the residual interest as calculated under rating will determine the risk category liability), even if the amount of risk- section III.B.3.e.ii.1 of this appendix or to which the recourse obligation, direct based capital required to be maintained the full risk-based capital requirement credit substitute, or residual interest exceeds the full risk-based capital for the assets transferred. will be assigned. requirement for the assets transferred. f. Positions that are not rated by an d. Senior positions not externally Transactions that, in substance, result in NRSRO. A position (but not a residual rated. For a recourse obligation, direct the retention of credit risk associated interest) maintained in connection with credit substitute, residual interest, or with a transferred credit-enhancing I/O a securitization and that is not rated by asset- or mortgage-backed security that strip will be treated as if the credit- a NRSRO may be risk-weighted based is not externally rated but is senior or enhancing I/O strip was retained by the on the bank’s determination of the preferred in all features to a traded bank and not transferred. credit rating of the position, as specified position (including collateralization and ii. Capital requirement for other in the table below, multiplied by the maturity), a bank may apply a risk residual interests. 1. If a residual face amount of the position. In order to weight to the face amount of the senior interest does not meet the requirements obtain this treatment, the bank’s system position in accordance with section of sections III.B.3.c. or d. of this for determining the credit rating of the III.B.3.c.i. of this appendix, based on the appendix, a bank must maintain risk- position must meet one of the three traded position, subject to any current based capital equal to the remaining alternative standards set out in sections or prospective supervisory guidance and amount of the residual interest that is III.B.3.f.i. through III.B.3.f.iii. of this the bank satisfying the Federal Reserve retained on the balance sheet (net of any appendix.
Risk weight Rating category Examples (In percent)
Highest or second highest investment grade ...... AAA,AA ...... 100 Third highet investment grade ...... A ...... 100 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200
VerDate 11
i. Internal risk rating used for asset- reviewed the terms of the program and total amount of capital required for the backed programs. A direct credit stated a rating for positions associated on-balance sheet asset and the recourse substitute (other than a purchased with the program. If the program has obligation, however, is limited to the credit-enhancing I/O) is assumed in options for different combinations of capital requirement for the underlying connection with an asset-backed assets, standards, internal credit loans, calculated as if the bank commercial paper program sponsored enhancements and other relevant continued to hold these loans as on- by the bank and the bank is able to factors, and the NRSRO specifies ranges balance sheet assets. demonstrate to the satisfaction of the of rating categories to them, the bank iii. Related on-balance sheet assets. If Federal Reserve, prior to relying upon may apply the rating category that a recourse obligation or direct credit its use, that the bank’s internal credit corresponds to the bank’s position. In substitute subject to section III.B.3. of risk rating system is adequate. Adequate order to rely on a program rating, the this appendix also appears as a balance internal credit risk rating systems bank must demonstrate to the Federal sheet asset, the balance sheet asset is not usually contain the following criteria: Reserve’s satisfaction that the credit risk included in a bank’s risk-weighted 1. The internal credit risk system is an rating assigned to the program meets the assets to the extent the value of the integral part of the bank’s risk same standards generally used by balance sheet asset is already included management system, which explicitly NRSROs for rating traded positions. The in the off-balance sheet credit incorporates the full range of risks bank must also demonstrate to the equivalent amount for the recourse arising from a bank’s participation in Federal Reserve’s satisfaction that the obligation or direct credit substitute, securitization activities; criteria underlying the NRSRO’s except in the case of loan servicing 2. Internal credit ratings are linked to assignment of ratings for the program assets and similar arrangements with measurable outcomes, such as the are satisfied for the particular position. embedded recourse obligations or direct probability that the position will If a bank participates in a securitization credit substitutes. In that case, both the experience any loss, the position’s sponsored by another party, the Federal on-balance sheet assets and the related expected loss given default, and the Reserve may authorize the bank to use recourse obligations and direct credit degree of variance in losses given this approach based on a programmatic substitutes must be separately risk- default on that position; rating obtained by the sponsor of the weighted and incorporated into the risk- 3. The bank’s internal credit risk program. based capital calculation. system must separately consider the risk iii. Computer Program. The bank is * * * * * associated with the underlying loans or using an acceptable credit assessment borrowers, and the risk associated with computer program to determine the C. * * * the structure of a particular rating of a direct credit substitute or 4. Category 4: 100 percent. a. All securitization transaction; recourse obligation (but not residual 4. The bank’s internal credit risk interest) issued in connection with a assets not included in the categories system must identify gradations of risk structured finance program. A NRSRO above are assigned to this category, among ‘‘pass’’ assets and other risk must have developed the computer which comprises standard risk assets. positions; program, and the bank must The bulk of the assets typically found in 5. The bank must have clear, explicit demonstrate to the Federal Reserve’s a loan portfolio would be assigned to criteria that are used to classify assets satisfaction that ratings under the the 100 percent category. into each internal risk grade, including program correspond credibly and b. This category includes long-term subjective factors; reliably with the rating of traded claims on, and the portions of long-term 6. The bank must have independent positions. claims that are guaranteed by, non- credit risk management or loan review g. Limitations on risk-based capital OECD banks, and all claims on non- personnel assigning or reviewing the requirements—i. Low-level exposure. If OECD central governments that entail credit risk ratings; the maximum contractual exposure to some degree of transfer risk.36 This 7. The bank must have an internal loss retained or assumed by a bank in category includes all claims on foreign audit procedure that periodically connection with a recourse obligation or and domestic private-sector obligors not verifies that the internal credit risk a direct credit substitute is less than the included in the categories above ratings are assigned in accordance with effective risk-based capital requirement (including loans to nondepository the established criteria; for the enhanced assets, the risk-based financial institutions and bank holding 8. The bank must monitor the capital requirement is limited to the companies); claims on commercial firms performance of the internal credit risk maximum contractual exposure, less owned by the public sector; customer ratings assigned to nonrated, nontraded any recourse liability account liabilities to the bank on acceptances direct credit substitutes over time to established in accordance with outstanding involving standard risk determine the appropriateness of the generally accepted accounting claims;37 investments in fixed assets, initial credit risk rating assignment and principles. This limitation does not adjust individual credit risk ratings, or apply when a bank provides credit 36 Such assets include all nonlocal currency the overall internal credit risk ratings enhancement beyond any contractual claims on, and the portions of claims that are obligation to support assets it has sold. guaranteed by, non-OECD central governments and system, as needed; and those portions of local currency claims on, or 9. The internal credit risk system ii. Mortgage-related securities or guaranteed by, non-OECD central governments that must make credit risk rating participation certificates retained in a exceed the local currency liabilities held by the assumptions that are consistent with, or mortgage loan swap. If a bank holds a bank. more conservative than, the credit risk mortgage-related security or a 37 Customer liabilities on acceptances outstanding involving nonstandard risk claims, such as claims rating assumptions and methodologies participation certificate as a result of a on U.S. depository institutions, are assigned to the of NRSROs. mortgage loan swap with recourse, risk category appropriate to the identity of the ii. Program Ratings. A direct credit capital is required to support the obligor or, if relevant, the nature of the collateral substitute or recourse obligation (other recourse obligation plus the percentage or guarantees backing the claims. Portions of acceptances conveyed as risk participations to U.S. than a residual interest) is assumed or of the mortgage-related security or depository institutions or foreign banks are assigned retained in connection with a structured participation certificate that is not to the 20 percent risk category appropriate to short- finance program and a NRSRO has covered by the recourse obligation. The Continued
VerDate 11
premises, and other real estate owned; provided in section III.B.3. of this full amount of the assets that are common and preferred stock of appendix, the full amount of an asset or supported, in whole or in part, by the corporations, including stock acquired transaction supported, in whole or in credit enhancement are converted to a for debts previously contracted; all part, by a direct credit substitute or a credit equivalent amount at 100 percent. stripped mortgage-backed securities and recourse obligation. Direct credit However, the pro rata share of the credit similar instruments; and commercial substitutes and recourse obligations are equivalent amount that has been and consumer loans (except those defined in section III.B.3. of this conveyed through a risk participation is assigned to lower risk categories due to appendix. assigned to whichever risk category is recognized guarantees or collateral and b. Sale and repurchase agreements lower: the risk category appropriate to loans secured by residential property and forward agreements. Forward the obligor, after considering any that qualify for a lower risk weight). agreements are legally binding relevant guarantees or collateral, or the c. Also included in this category are contractual obligations to purchase risk category appropriate to the industrial-development bonds and assets with certain drawdown at a institution acquiring the participation.41 similar obligations issued under the specified future date. Such obligations Any remainder is assigned to the risk auspices of states or political include forward purchases, forward category appropriate to the obligor, subdivisions of the OECD-based group forward deposits placed,39 and partly- guarantor, or collateral. For example, of countries for the benefit of a private paid shares and securities; they do not the pro rata share of the full amount of party or enterprise where that party or include commitments to make the assets supported, in whole or in enterprise, not the government entity, is residential mortgage loans or forward part, by a direct credit substitute obligated to pay the principal and foreign exchange contracts. conveyed as a risk participation to a interest, and all obligations of states or c. Securities lent by a bank are treated U.S. domestic depository institution or political subdivisions of countries that in one of two ways, depending upon foreign bank is assigned to the 20 do not belong to the OECD-based group. whether the lender is at risk of loss. If percent risk category.42 d. The following assets also are a bank, as agent for a customer, lends e. In the case of direct credit assigned a risk weight of 100 percent if the customer’s securities and does not substitutes in which a risk participation they have not been deducted from indemnify the customer against loss, has been acquired, the acquiring bank’s capital: investments in unconsolidated then the transaction is excluded from percentage share of the direct credit companies, joint ventures, or associated the risk-based capital calculation. If, substitute is multiplied by the full companies; instruments that qualify as alternatively, a bank lends its own amount of the assets that are supported, capital issued by other banking securities or, acting as agent for a in whole or in part, by the credit organizations; and any intangibles, customer, lends the customer’s enhancement and converted to a credit including those that may have been securities and indemnifies the customer equivalent amount at 100 percent. The grandfathered into capital. against loss, the transaction is converted credit equivalent amount of an * * * * * at 100 percent and assigned to the risk acquisition of a risk participation in a weight category appropriate to the D. * * * direct credit substitute is assigned to the obligor, or, if applicable, to any risk category appropriate to the account The face amount of an off-balance collateral delivered to the lending bank, party obligor or, if relevant, the nature sheet item is generally incorporated into or the independent custodian acting on of the collateral or guarantees. risk-weighted assets in two steps. The the lending bank’s behalf. Where a bank f. In the case of direct credit face amount is first multiplied by a is acting as agent for a customer in a substitutes that take the form of a credit conversion factor, except for transaction involving the lending or sale syndication where each bank is direct credit substitutes and recourse of securities that is collateralized by obligated only for its pro rata share of obligations as discussed in section cash delivered to the bank, the the risk and there is no recourse to the III.D.1. of this appendix. The resultant transaction is deemed to be originating bank, each bank will only credit equivalent amount is assigned to collateralized by cash on deposit in the include its pro rata share of the assets the appropriate risk category according bank for purposes of determining the supported, in whole or in part, by the to the obligor or, if relevant, the appropriate risk-weight category, direct credit substitute in its risk-based guarantor or the nature of the provided that any indemnification is capital calculation.43 collateral.38 Attachment IV to this limited to no more than the difference * * * * * appendix sets forth the conversion between the market value of the factors for various types of off-balance securities and the cash collateral 41 sheet items. received and any reinvestment risk A risk participation in bankers acceptances 1. Items with a 100-percent conveyed to other institutions is also assigned to associated with that cash collateral is the risk category appropriate to the institution conversion factor. a. Except as otherwise borne by the customer. acquiring the participation or, if relevant, the d. In the case of direct credit guarantor or nature of the collateral. term claims guaranteed by U.S. depository substitutes in which a risk 42 Risk participations with a remaining maturity institutions and foreign banks. participation 40 has been conveyed, the of over one year that are conveyed to non-OECD 38 The sufficiency of collateral and guarantees for banks are to be assigned to the 100 percent risk off-balance-sheet items is determined by the market category, unless a lower risk category is appropriate value of the collateral or the amount of the 39 Forward forward deposits accepted are treated to the obligor, guarantor, or collateral. guarantee in relation to the face amount of the item, as interest rate contracts. 43 For example, if a bank has a 10 percent share except for derivative contracts, for which this 40 That is, a participation in which the originating of a $10 syndicated direct credit substitute that determination is generally made in relation to the bank remains liable to the beneficiary for the full provides credit support to a $100 loan, then the credit equivalent amount. Collateral and guarantees amount of the direct credit substitute if the party bank’s $1 pro rata share in the enhancement means are subject to the same provisions noted under that has acquired the participation fails to pay when that a $10 pro rata share of the loan is included in section III.B. of this appendix A. the instrument is drawn. risk weighted assets.
VerDate 11
ATTACHMENT II.—SUMMARY OF DEFINITION OF QUALIFYING CAPITAL FOR STATE MEMBER BANKS* [Using the year-end 1992 standard]
Components Minimum requirements
Core Capital (Tier 1) ...... Must equal or exceed 4% of weighted-risk assets. Common stockholders’ equity ...... No limit. Qualifying noncumulative perpetual preferred stock ...... No limit; banks should avoid undue reliance on preferred stock in tier 1. Minority interest in equity accounts of consolidated subsidiaries ..... Banks should avoid using minority interests to subsidiaries introduce elements not otherwise qualifying for tier 1 capital. Less: Goodwill, other intangible assets, and credit-enhancing interest- only strips required to be deducted from capital 1 Supplementary Capital (Tier 2) ...... Total of tier 2 is limited to 100% of tier 1.2 Allowance for loan and lease losses ...... Limited to 1.25% of weighted-risk assets.2 Perpetual preferred stock ...... No limit within tier 2. Hybrid capital instruments and equity contract notes ...... No limit within tier 2. Subordinated debt and intermediate-term preferred stocks (original Subordinated debt and intermediate-term preferred stock are limited to weighted average maturity of 5 years or more). 50% of tier 1,2 amortized for capital purposes as they approach ma- turity. Revaluation reserves (equity and building) ...... Not included; banks encouraged to disclose; may be evaluated on a case-by-case basis for international comparisons; and taken into ac- count in making an overall assessment of capital. Deductions (from sum of tier 1 and tier 2): Investment in unconsolidated subsidiaries ...... As a general rule, one-half of the aggregate investments will be de- ducted from tier 1 capital and one-half from tier 2 capital.3 Reciprocal holdings of banking organizations’ capital securities Other deductions (such as other subsidiaries or joint ventures) as On a case-by-case basis or as a matter of policy after a formal rule- determined by supervisory authority. making. Total Capital (tier 1 + tier 2— deductions) ...... Must equal or exceed 8% or weighted-risk assets. 1 Requirements for the deduction of other intangible assets and residual interests are set forth in section II.B.1. of this appendix. 2 Amount in excess of limitations are permitted but do not qualify as capital. 3 A proportionately greater amount may be deducted from tier 1 capital, if the risks associated with the subsidiary so warrant. * See discussion in section II of the guidelines for a complete description of the requirements for, and the limitations on, the components of qualifying capital.
* * * * * As a general matter, average total forth in section II.B.4 of appendix A of 3. In Appendix B to part 208, section consolidated assets are defined as the this part.3 II.b is revised to read as follows: quarterly average total assets (defined * * * * * net of the allowance for loan and lease Appendix B To Part 208—Capital losses) reported on the bank’s Reports of PART 225—BANK HOLDING Adequacy Guidelines for State Member Condition and Income (Call Reports), COMPANIES AND CHANGE IN BANK Banks: Tier 1 Leverage Measure less goodwill; amounts of mortgage CONTROL (REGULATION Y) * * * * * servicing assets, nonmortgage servicing 1. The authority citation for part 225 II. * * * assets, and purchased credit card continues to read as follows: relationships that, in the aggregate, are Authority: 12 U.S.C. 1817(j)(13), 1818, b. A bank’s tier 1 leverage ratio is in excess of 100 percent of tier 1 capital; calculated by dividing its tier 1 capital 1828(o), 1831i, 1831p-1, 1843(c)(8), 1843(k), amounts of nonmortgage servicing (the numerator of the ratio) by its 1844(b), 1972(1), 3106, 3108, 3310, 3331– assets, purchased credit card average total consolidated assets (the 3351, 3907, and 3909. relationships that, in the aggregate, are denominator of the ratio). The ratio will 2. In appendix A to part 225: also be calculated using period-end in excess of 25 percent of tier 1 capital; A. The three introductory paragraphs assets whenever necessary, on a case-by- amounts of credit-enhancing interest- of section II, the first six paragraphs of case basis. For the purpose of this only strips that are in excess of 25 section II.A.1, and the first seven leverage ratio, the definition of tier 1 percent of tier 1 capital; all other paragraphs of section II.A.2. are revised capital as set forth in the risk-based identifiable intangible assets; any and footnote 6 is removed and reserved; capital guidelines contained in investments in subsidiaries or B. In section II.B., a new paragraph appendix A of this part will be used.2 associated companies that the Federal (i)(c) is added, section II.B.1.b. and Reserve determines should be deducted footnote 15 are revised, new sections 2 Tier 1 capital for state member banks includes from tier 1 capital; and deferred tax II.B.1.c. through II.B.1.g. are added, and common equity, minority interest in the equity assets that are dependent upon future section II.B.4. is revised; accounts of consolidated subsidiaries, and C. In section III.A., a new qualifying noncumulative perpetual preferred stock. taxable income, net of their valuation In addition, as a general matter, tier 1 capital allowance, in excess of the limitation set undesignated fourth paragraph is added excludes goodwill; amounts of mortgage servicing at the end of the section; assets, nonmortgage servicing assets, and purchased D. In section III.B., paragraph 3 is credit card relationships that, in the aggregate, intangible assets; and deferred tax assets that are revised and footnote 26 is removed, and exceed 100 percent of tier 1 capital; amounts of nonmortgage servicing assets and purchased credit dependent upon future taxable income, net of their in paragraph 4, footnote 27 is removed; card relationships that, in the aggregate, exceed 25 valuation allowance, in excess of certain percent of tier 1 capital; amounts of credit- limitations. The Federal Reserve may exclude 3 Deductions from tier 1 capital and other enhancing interest-only strips in excess of 25 certain investments in subsidiaries or associated adjustments are discussed more fully in section II.B. percent of tier 1 capital; all other identifiable companies as appropriate. of appendix A of this part.
VerDate 11
E. In section III.C., paragraphs 1 on the level or composition of the accordance with section II.B.1. of this through 4, footnotes 28 through 42 are organization’s capital base.5 appendix). redesignated as footnotes 26 through 40, * * * * * * * * * * and paragraph 4 is revised; B. * * * A. * * * F. In section III.D., the introductory (i) * * * paragraph and paragraph 1 are revised; 1. Core capital elements (tier 1 (c) Certain credit-enhancing interest- capital). The tier 1 component of an only strips receivables—deducted from G. In sections III.D. and III.E., institution’s qualifying capital must the sum of core capital elements in footnotes 50 and 52 are removed, represent at least 50 percent of accordance with sections II.B.1.c. footnote 51 is redesignated as footnote qualifying total capital and may consist through e. of this appendix. 47, footnotes 53 through 55 are of the following items that are defined redesignated as footnotes 48 through 50; * * * * * as core capital elements: 1. Goodwill, other intangible assets, H. In sections IV.A. and IV.B., (i) Common stockholders’ equity; and residual interests. *** footnote 57 is removed and footnote 56 (ii) Qualifying noncumulative b. Other intangible assets. i. All is redesignated as footnote 51; and perpetual preferred stock (including servicing assets, including servicing I. Attachment II is revised. related surplus); assets on assets other than mortgages (iii) Qualifying cumulative perpetual (i.e., nonmortgage servicing assets), are Appendix A To Part 225—Capital preferred stock (including related included in this appendix as Adequacy Guidelines For Bank Holding surplus), subject to certain limitations identifiable intangible assets. The only Companies: Risk-Based Measure described below; and types of identifiable intangible assets * * * * * (iv) Minority interest in the equity that may be included in, that is, not II. * * * accounts of consolidated subsidiaries. deducted from, an organization’s capital Tier 1 capital is generally defined as are readily marketable mortgage An institution’s qualifying total the sum of core capital elements 6 less servicing assets, nonmortgage servicing capital consists of two types of capital goodwill, other intangible assets, and assets, and purchased credit card components: ‘‘core capital elements’’ interest-only strips receivables that are relationships. The total amount of these (comprising tier 1 capital) and required to be deducted in accordance assets that may be included in capital is ‘‘supplementary capital elements’’ with section II.B.1. of this appendix. subject to the limitations described (comprising tier 2 capital). These capital * * * * * below in sections II.B.1.d. and e. of this elements and the various limits, 2. Supplementary capital elements appendix. restrictions, and deductions to which (tier 2 capital). The tier 2 component of ii. The treatment of identifiable they are subject, are discussed below an institution’s qualifying capital may intangible assets set forth in this section and are set forth in Attachment II. consist of the following items that are generally will be used in the calculation of a bank holding company’s capital The Federal Reserve will, on a case- defined as supplementary capital ratios for supervisory and applications by-case basis, determine whether, and if elements: purposes. However, in making an so how much of, any instrument that (i) Allowance for loan and lease losses overall assessment of a bank holding does not fit wholly within the terms of (subject to limitations discussed below); company’s capital adequacy for one of the capital categories set forth (ii) Perpetual preferred stock and applications purposes, the Board may, if below or that does not have an ability related surplus (subject to conditions it deems appropriate, take into account to absorb losses commensurate with the discussed below); the quality and composition of an capital treatment otherwise specified (iii) Hybrid capital instruments (as organization’s capital, together with the below will be counted as an element of defined below), perpetual debt, and quality and value of its tangible and tier 1 or tier 2 capital. In making such mandatory convertible debt securities; intangible assets. a determination, the Federal Reserve (iv) Term subordinated debt and c. Credit-enhancing interest-only will consider the similarity of the intermediate-term preferred stock, strips receivables (I/Os) i. Credit- instrument to instruments explicitly including related surplus (subject to enhancing I/Os are on-balance sheet treated in the guidelines, the ability of limitations discussed below); assets that, in form or in substance, the instrument to absorb losses while (v) Unrealized holding gains on equity represent a contractual right to receive the institution operates as a going securities (subject to limitations some or all of the interest due on concern, the maturity and redemption discussed in section II.A.2.e. of this transferred assets and expose the bank features of the instrument, and other appendix). holding company to credit risk directly relevant terms and factors. To qualify as The maximum amount of tier 2 or indirectly associated with transferred an element of tier 1 or tier 2 capital, a capital that may be included in an assets that exceeds a pro rata share of capital instrument may not contain or institution’s qualifying total capital is the bank holding company’s claim on be covered by any covenants, terms, or limited to 100 percent of tier 1 capital the assets, whether through restrictions that are inconsistent with (net of goodwill, other intangible assets, subordination provisions or other credit safe and sound banking practices. and interest-only strips receivables that enhancement techniques. Such I/Os, Redemptions of permanent equity or are required to be deducted in whether purchased or retained, other capital instruments before stated including other similar ‘‘spread’’ assets, maturity could have a significant impact 5 Consultation would not ordinarily be necessary may be included in, that is, not on an organization’s overall capital if an instrument were redeemed with the proceeds of, or replaced by, a like amount of a similar or deducted from, a bank holding structure. Consequently, an organization higher quality capital instrument and the company’s capital subject to the considering such a step should consult organization’s capital position is considered fully limitations described below in sections with the Federal Reserve before adequate by the Federal Reserve. In the case of II.B.1.d. and e. of this appendix. redeeming any equity or debt capital limited-life tier 2 instruments, consultation would generally be obviated if the new security is of equal ii. Both purchased and retained instrument (prior to maturity) if such or greater maturity than the one it replaces. credit-enhancing I/Os, on a non-tax redemption could have a material effect 6 [Reserved] adjusted basis, are included in the total
VerDate 11
amount that is used for purposes of as the sum of core capital elements, net i. The amount of these deferred-tax determining whether a bank holding of goodwill, and net of all identifiable assets that the bank holding company is company exceeds the tier 1 limitation intangible assets other than mortgage expected to realize within one year of described below in this section. In servicing assets, nonmortgage servicing the calendar quarter-end date, based on determining whether an I/O or other assets, and purchased credit card its projections of future taxable income types of spread assets serve as a credit relationships, prior to the deduction of for that year,23 or enhancement, the Federal Reserve will any disallowed mortgage servicing ii. 10 percent of tier 1 capital. look to the economic substance of the assets, any disallowed nonmortgage b. The reported amount of deferred- transaction. servicing assets, any disallowed tax assets, net of any valuation d. Fair value limitation. The amount purchased credit card relationships, any allowance for deferred-tax assets, in of mortgage servicing assets, disallowed credit-enhancing I/Os (both excess of the lesser of these two nonmortgage servicing assets, and purchased and retained), and any amounts is to be deducted from a purchased credit card relationships that disallowed deferred-tax assets, banking organization’s core capital a bank holding company may include in regardless of the date acquired. elements in determining tier 1 capital. capital shall be the lesser of 90 percent iii. Bank holding companies may elect For purposes of calculating the 10 of their fair value, as determined in to deduct disallowed mortgage servicing percent limitation, tier 1 capital is accordance with section II.B.1.f. of this assets, disallowed nonmortgage defined as the sum of core capital appendix, or 100 percent of their book servicing assets, and disallowed credit- elements, net of goodwill and net of all value, as adjusted for capital purposes enhancing I/Os (both purchased and identifiable intangible assets other than in accordance with the instructions to retained) on a basis that is net of any mortgage servicing assets, nonmortgage the Consolidated Financial Statements associated deferred tax liability. servicing assets, and purchased credit for Bank Holding Companies (FR Y–9C Deferred tax liabilities netted in this card relationships, prior to the Report). The amount of credit- manner cannot also be netted against deduction of any disallowed mortgage enhancing I/Os that a bank holding deferred-tax assets when determining servicing assets, any disallowed company may include in capital shall be the amount of deferred-tax assets that nonmortgage servicing assets, any its fair value. If both the application of are dependent upon future taxable disallowed purchased credit card the limits on mortgage servicing assets, income. relationships, any disallowed credit- nonmortgage servicing assets, and f. Valuation. Bank holding companies enhancing I/Os, and any disallowed purchased credit card relationships and must review the book value of all deferred-tax assets. There generally is the adjustment of the balance sheet intangible assets at least quarterly and no limit in tier 1 capital on the amount amount for these assets would result in make adjustments to these values as of deferred-tax assets that can be an amount being deducted from capital, necessary. The fair value of mortgage realized from taxes paid in prior carry- the bank holding company would servicing assets, nonmortgage servicing back years or from future reversals of deduct only the greater of the two assets, purchased credit card existing taxable temporary differences. amounts from its core capital elements relationships, and credit-enhancing I/Os * * * * * in determining tier 1 capital. also must be determined at least III. * * * e. Tier 1 capital limitation. i. The total quarterly. This determination shall amount of mortgage servicing assets, include adjustments for any significant A. * * * nonmortgage servicing assets, and changes in original valuation The Federal Reserve will, on a case- purchased credit card relationships that assumptions, including changes in by-case basis, determine the appropriate may be included in capital, in the prepayment estimates or account risk weight for any asset or credit aggregate, cannot exceed 100 percent of attrition rates. Examiners will review equivalent amount of an off-balance tier 1 capital. Nonmortgage servicing both the book value and the fair value sheet item that does not fit wholly assets and purchased credit card assigned to these assets, together with within the terms of one of the risk relationships are subject, in the supporting documentation, during the weight categories set forth below or that aggregate, to a separate sublimit of 25 inspection process. In addition, the imposes risks on a bank holding percent of tier 1 capital. In addition, the Federal Reserve may require, on a case- company that are incommensurate with total amount of credit-enhancing I/Os by-case basis, an independent valuation the risk weight otherwise specified (both purchased and retained) that may of a bank holding company’s intangible below for the asset or off-balance sheet be included in capital cannot exceed 25 assets or credit-enhancing I/Os. item. In addition, the Federal Reserve percent of tier 1 capital.15 g. Growing organizations. Consistent will, on a case-by-case basis, determine ii. For purposes of calculating these with long-standing Board policy, the appropriate credit conversion factor limitations on mortgage servicing assets, banking organizations experiencing nonmortgage servicing assets, purchased substantial growth, whether internally 23 To determine the amount of expected deferred- credit card relationships, and credit- tax assets realizable in the next 12 months, an or by acquisition, are expected to institution should assume that all existing enhancing I/Os, tier 1 capital is defined maintain strong capital positions temporary differences fully reverse as of the report substantially above minimum date. Projected future taxable income should not 15 Amounts of servicing assets, purchased credit supervisory levels, without significant include net operating loss carry-forwards to be used card relationships, and credit-enhancing I/Os (both during that year or the amount of existing retained and purchased) in excess of these reliance on intangible assets or credit- temporary differences a bank holding company limitations, as well as all other identifiable enhancing I/Os. expects to reverse within the year. Such projections intangible assets, including core deposit intangibles 4. Deferred-tax assets. a. The amount should include the estimated effect of tax-planning and favorable leaseholds, are to be deducted from strategies that the organization expects to a bank holding company’s core capital elements in of deferred-tax assets that is dependent implement to realize net operating losses or tax- determining tier 1 capital. However, identifiable upon future taxable income, net of the credit carry-forwards that would otherwise expire intangible assets (other than mortgage servicing valuation allowance for deferred-tax during the year. Institutions do not have to prepare assets and purchased credit card relationships) assets, that may be included in, that is, a new 12-month projection each quarter. Rather, on acquired on or before February 19, 1992, generally interim report dates, institutions may use the will not be deducted from capital for supervisory not deducted from, a bank holding future-taxable income projections for their current purposes, although they will continue to be company’s capital may not exceed the fiscal year, adjusted for any significant changes that deducted for applications purposes. lesser of: have occurred or are expected to occur.
VerDate 11
for any off-balance sheet item that does by the U.S. Government, a U.S. recognized statistical rating not fit wholly within the terms of one Government agency or a government- organization. of the credit conversion factors set forth sponsored enterprise, provided the v. Face amount means the notional below or that imposes risks on a premium refund clauses are for a period principal, or face value, amount of an banking organization that are not to exceed 120 days from the date of off-balance sheet item; the amortized incommensurate with the credit transfer; or cost of an asset not held for trading conversion factors otherwise specified 3. Warranties that permit the return of purposes; and the fair value of a trading below for the off-balance sheet item. In assets in instances of misrepresentation, asset. making such a determination, the fraud or incomplete documentation. vi. Financial asset means cash or Federal Reserve will consider the iii. Direct credit substitute means an other monetary instrument, evidence of similarity of the asset or off-balance arrangement in which a bank holding debt, evidence of an ownership interest sheet item to assets or off-balance sheet company assumes, in form or in in an entity, or a contract that conveys items explicitly treated in the substance, credit risk associated with an a right to receive or exchange cash or guidelines, as well as other relevant on- or off-balance sheet credit exposure another financial instrument from factors. that was not previously owned by the another party. * * * * * bank holding company (third-party vii. Financial standby letter of credit B. * * * asset) and the risk assumed by the bank means a letter of credit or similar 3. Recourse obligations, direct credit holding company exceeds the pro rata arrangement that represents an substitutes, residual interests, and asset- share of the bank holding company’s irrevocable obligation to a third-party and mortgage-backed securities. Direct interest in the third-party asset. If the beneficiary: 1. To repay money borrowed by, or credit substitutes, assets transferred bank holding company has no claim on advanced to, or for the account of, a with recourse, and securities issued in the third-party asset, then the bank holding company’s assumption of any second party (the account party), or connection with asset securitizations 2. To make payment on behalf of the and structured financings are treated as credit risk with respect to the third- party asset is a direct credit substitute. account party, in the event that the described below. The term ‘‘asset account party fails to fulfill its securitizations’’ or ‘‘securitizations’’ in Direct credit substitutes include, but are not limited to: obligation to the beneficiary. this rule includes structured financings, viii. Mortgage servicer cash advance 1. Financial standby letters of credit as well as asset securitization means funds that a residential mortgage that support financial claims on a third transactions. loan servicer advances to ensure an party that exceed a bank holding a. Definitions—i. Credit derivative uninterrupted flow of payments, company’s pro rata share of losses in means a contract that allows one party including advances made to cover the financial claim; (the ‘‘protection purchaser’’) to transfer foreclosure costs or other expenses to the credit risk of an asset or off-balance 2. Guarantees, surety arrangements, facilitate the timely collection of the sheet credit exposure to another party credit derivatives, and similar loan. A mortgage servicer cash advance (the ‘‘protection provider’’). The value instruments backing financial claims is not a recourse obligation or a direct of a credit derivative is dependent, at that exceed a bank holding company’s credit substitute if: least in part, on the credit performance pro rata share in the financial claim; 1. The servicer is entitled to full of the ‘‘reference asset.’’ 3. Purchased subordinated interests or reimbursement and this right is not ii. Credit-enhancing representations securities that absorb more than their subordinated to other claims on the cash and warranties means representations pro rata share of losses from the flows from the underlying asset pool; or and warranties that are made or underlying assets; 2. For any one loan, the servicer’s assumed in connection with a transfer 4. Credit derivative contracts under obligation to make nonreimbursable of assets (including loan servicing which the bank holding company advances is contractually limited to an assets) and that obligate the bank assumes more than its pro rata share of insignificant amount of the outstanding holding company to protect investors credit risk on a third party exposure; principal balance of that loan. from losses arising from credit risk in 5. Loans or lines of credit that provide ix. Nationally recognized statistical the assets transferred or the loans credit enhancement for the financial rating organization (NRSRO) means an serviced. Credit-enhancing obligations of an account party; entity recognized by the Division of representations and warranties include 6. Purchased loan servicing assets if Market Regulation of the Securities and promises to protect a party from losses the servicer is responsible for credit Exchange Commission (or any successor resulting from the default or losses or if the servicer makes or Division) (Commission) as a nationally nonperformance of another party or assumes credit-enhancing recognized statistical rating organization from an insufficiency in the value of the representations and warranties with for various purposes, including the collateral. Credit-enhancing respect to the loans serviced. Mortgage Commission’s uniform net capital representations and warranties do not servicer cash advances that meet the requirements for brokers and dealers. include: conditions of section III.B.3.a.viii. of x. Recourse means the retention, by a 1. Early default clauses and similar this appendix are not direct credit bank holding company, in form or in warranties that permit the return of, or substitutes; and substance, of any credit risk directly or premium refund clauses covering, 1–4 7. Clean-up calls on third party assets indirectly associated with an asset it has family residential first mortgage loans are direct credit substitutes. Clean-up transferred and sold that exceeds a pro that qualify for a 50 percent risk weight calls that are 10 percent or less of the rata share of the banking organization’s for a period not to exceed 120 days from original pool balance that are claim on the asset. If a banking the date of transfer. These warranties exercisable at the option of the bank organization has no claim on a may cover only those loans that were holding company are not direct credit transferred asset, then the retention of originated within 1 year of the date of substitutes. any risk of credit loss is recourse. A transfer; iv. Externally rated means that an recourse obligation typically arises 2. Premium refund clauses that cover instrument or obligation has received a when a bank holding company transfers assets guaranteed, in whole or in part, credit rating from a nationally- assets and retains an explicit obligation
VerDate 11
to repurchase the assets or absorb losses techniques. Residual interests generally III.B.5. of this appendix, the credit- due to a default on the payment of include credit-enhancing I/Os, spread equivalent amount for a recourse principal or interest or any other accounts, cash collateral accounts, obligation or direct credit substitute is deficiency in the performance of the retained subordinated interests, other the full amount of the credit-enhanced underlying obligor or some other party. forms of over-collateralization, and assets for which the bank holding Recourse may also exist implicitly if a similar assets that function as a credit company directly or indirectly retains or bank holding company provides credit enhancement. Residual interests further assumes credit risk multiplied by a 100 enhancement beyond any contractual include those exposures that, in percent conversion factor. obligation to support assets it has sold. substance, cause the bank holding The following are examples of recourse company to retain the credit risk of an ii. Risk-weight factor. To determine arrangements: asset or exposure that had qualified as the bank holding company’s risk-weight 1. Credit-enhancing representations a residual interest before it was sold. factor for off-balance sheet recourse and warranties made on the transferred Residual interests generally do not obligations and direct credit substitutes, assets; include interests purchased from a third the credit equivalent amount is assigned 2. Loan servicing assets retained party, except that purchased credit- to the risk category appropriate to the pursuant to an agreement under which enhancing I/Os are residual interests for obligor in the underlying transaction, the bank holding company will be purposes of this appendix. after considering any associated responsible for credit losses associated xii. Risk participation means a guarantees or collateral. For a direct with the loans being serviced. Mortgage participation in which the originating credit substitute that is an on-balance servicer cash advances that meet the party remains liable to the beneficiary sheet asset (e.g., a purchased conditions of section III.B.3.a.viii. of for the full amount of an obligation (e.g., subordinated security), a bank holding this appendix are not recourse a direct credit substitute) company must calculate risk-weighted arrangements; notwithstanding that another party has assets using the amount of the direct 3. Retained subordinated interests acquired a participation in that credit substitute and the full amount of that absorb more than their pro rata obligation. the assets it supports, i.e., all the more share of losses from the underlying xiii. Securitization means the pooling senior positions in the structure. The assets; and repackaging by a special purpose treatment of direct credit substitutes 4. Assets sold under an agreement to entity of assets or other credit exposures that have been syndicated or in which repurchase, if the assets are not already into securities that can be sold to risk participations have been conveyed included on the balance sheet; investors. Securitization includes 5. Loan strips sold without transactions that create stratified credit or acquired is set forth in section III.D.1 contractual recourse where the maturity risk positions whose performance is of this appendix. of the transferred loan is shorter than dependent upon an underlying pool of c. Externally-rated positions: credit- the maturity of the commitment under credit exposures, including loans and equivalent amounts and risk weights of which the loan is drawn; commitments. recourse obligations, direct credit 6. Credit derivatives issued that xiv. Structured finance program substitutes, residual interests, and asset- absorb more than the bank holding means a program where receivable and mortgage-backed securities company’s pro rata share of losses from interests and asset-backed securities (including asset-backed commercial the transferred assets; and issued by multiple participants are paper)—i. Traded positions. With 7. Clean-up calls at inception that are purchased by a special purpose entity respect to a recourse obligation, direct greater than 10 percent of the balance of that repackages those exposures into credit substitute, residual interest (other the original pool of transferred loans. securities that can be sold to investors. than a credit-enhancing I/Ostrip) or Clean-up calls that are 10 percent or less Structured finance programs allocate asset- and mortgage-backed security of the original pool balance that are credit risks, generally, between the exercisable at the option of the bank (including asset-backed commercial participants and credit enhancement paper) that is a traded position and that holding company are not recourse provided to the program. has received an external rating on a arrangements. xv. Traded position means a position xi. Residual interest means any on- that is externally rated, and is retained, long-term position that is one grade balance sheet asset that represents an assumed, or issued in connection with below investment grade or better or a interest (including a beneficial interest) an asset securitization, where there is a short-term rating that is investment created by a transfer that qualifies as a reasonable expectation that, in the near grade, the bank holding company may sale (in accordance with generally future, the rating will be relied upon by multiply the face amount of the position accepted accounting principles) of unaffiliated investors to purchase the by the appropriate risk weight, financial assets, whether through a position; or an unaffiliated third party to determined in accordance with the securitization or otherwise, and that enter into a transaction involving the tables below. Stripped mortgage-backed exposes the bank holding company to position, such as a purchase, loan, or securities and other similar instruments, credit risk directly or indirectly repurchase agreement. such as interest-only or principal-only associated with the transferred assets b. Credit equivalent amounts and risk strips that are not credit enhancements, that exceeds a pro rata share of the bank weight of recourse obligations and direct must be assigned to the 100 percent risk holding company’s claim on the assets, credit substitutes. i. Credit equivalent category. If a traded position has whether through subordination amount. Except as otherwise provided received more than one external rating, provisions or other credit enhancement in sections III.B.3.c. through f. and the lowest single rating will apply.
Risk weight Long-term rating category Examples (In percent)
Highest or second highest investment grade ...... AAA, AA ...... 20 Third highest investment grade ...... A ...... 50 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200
VerDate 11
Risk weight Short-term rating Examples (In percent)
Highest investment grade ...... A–1, P–1 ...... 20 Second highest investment grade ...... A–2, P–2 ...... 50 Lowest investment grade ...... A–3, P–3 ...... 100
ii. Non-traded positions. A recourse section will apply only if the traded liability), even if the amount of risk- obligation, direct credit substitute, or subordinated position provides based capital required to be maintained residual interest (but not a credit- substantive credit support to the exceeds the full risk-based capital enhancing I/O strip) extended in unrated position until the unrated requirement for the assets transferred. connection with a securitization that is position matures. Transactions that, in substance, result in not a traded position may be assigned a e. Capital requirement for residual the retention of credit risk associated risk weight in accordance with section interests—i. Capital requirement for with a transferred residual interest will III.B.3.c.i. of this appendix if: credit-enhancing I/O strips. After be treated as if the residual interest was 1. It has been externally rated by more applying the concentration limit to retained by the bank holding company than one NRSRO; credit-enhancing I/O strips (both and not transferred. 2. It has received an external rating on purchased and retained) in accordance 2. Where the aggregate capital a long-term position that is one grade with sections II.B.2.c. through e. of this requirement for residual interests and below investment grade or better or on appendix, a bank holding company other recourse obligations in connection a short-term position that is investment must maintain risk-based capital for a with the same transfer of assets exceed grade by all NRSROs providing a rating; credit-enhancing I/O strip (both the full risk-based capital requirement 3. The ratings are publicly available; purchased and retained), regardless of for those assets, a bank holding and 4. The ratings are based on the same the external rating on that position, company must maintain risk-based criteria used to rate traded positions. equal to the remaining amount of the capital equal to the greater of the risk- If the ratings are different, the lowest credit-enhancing I/O (net of any existing based capital requirement for the rating will determine the risk category associated deferred tax liability), even if residual interest as calculated under to which the recourse obligation, direct the amount of risk-based capital section III.B.3.e.ii.1. of this appendix or credit substitute, or residual interest required to be maintained exceeds the the full risk-based capital requirement will be assigned. full risk-based capital requirement for for the assets transferred. d. Senior positions not externally the assets transferred. Transactions that, f. Positions that are not rated by an rated. For a recourse obligation, direct in substance, result in the retention of NRSRO. A position (but not a residual credit substitute, residual interest, or credit risk associated with a transferred interest) maintained in connection with asset-or mortgage-backed security that is credit-enhancing I/O strip will be a securitization and that is not rated by not externally rated but is senior or treated as if the credit-enhancing I/O a NRSRO may be risk-weighted based preferred in all features to a traded strip was retained by the bank holding on the bank holding company’s position (including collateralization and company and not transferred. determination of the credit rating of the maturity), a bank holding company may ii. Capital requirement for other position, as specified in the table below, apply a risk weight to the face amount residual interests. 1. If a residual multiplied by the face amount of the of the senior position in accordance interest does not meet the requirements position. In order to obtain this with section III.B.3.c.i. of this appendix, of sections III.B.3.c. or d. of this treatment, the bank holding company’s based on the traded position, subject to appendix, a bank holding must maintain system for determining the credit rating any current or prospective supervisory risk-based capital equal to the remaining of the position must meet one of the guidance and the bank holding amount of the residual interest that is three alternative standards set out in company satisfying the Federal Reserve retained on the balance sheet (net of any sections III.B.3.f.i. through III.B.3.f.iii. of that this treatment is appropriate. This existing associated deferred tax this appendix.
Risk weight Rating category Examples (In percent)
Highest or second highest investment grade ...... AAA, AA ...... 100 Third highest investment grade ...... A ...... 100 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200
i. Internal risk rating used for asset- internal credit risk rating system is 2. Internal credit ratings are linked to backed programs. A direct credit adequate. Adequate internal credit risk measurable outcomes, such as the substitute (other than a purchased rating systems usually contain the probability that the position will credit-enhancing I/O) is assumed in following criteria: experience any loss, the position’s connection with an asset-backed 1. The internal credit risk system is an expected loss given default, and the commercial paper program sponsored integral part of the bank holding degree of variance in losses given by the bank holding company and the company’s risk management system, default on that position; bank holding company is able to which explicitly incorporates the full 3. The bank holding company’s demonstrate to the satisfaction of the range of risks arising from a bank internal credit risk system must Federal Reserve, prior to relying upon holding company’s participation in separately consider the risk associated its use, that the bank holding company’s securitization activities; with the underlying loans or borrowers,
VerDate 11
and the risk associated with the programmatic rating obtained by the substitutes are incorporated into the structure of a particular securitization sponsor of the program. risk-based capital calculation. transaction; iii. Computer Program. The bank * * * * * 4. The bank holding company’s holding company is using an acceptable internal credit risk system must identify credit assessment computer program to C. * * * gradations of risk among ‘‘pass’’ assets determine the rating of a direct credit 4. Category 4: 100 percent. a. All and other risk positions; substitute or recourse obligation (but not assets not included in the categories 5. The bank holding company must residual interest) issued in connection above are assigned to this category, have clear, explicit criteria that are used with a structured finance program. A which comprises standard risk assets. to classify assets into each internal risk NRSRO must have developed the The bulk of the assets typically found in grade, including subjective factors; computer program, and the bank a loan portfolio would be assigned to 6. The bank holding company must holding company must demonstrate to the 100 percent category. have independent credit risk the Federal Reserve’s satisfaction that b. This category includes long-term management or loan review personnel ratings under the program correspond claims on, and the portions of long-term assigning or reviewing the credit risk credibly and reliably with the rating of claims that are guaranteed by, non- ratings; traded positions. 7. The bank holding company must g. Limitations on risk-based capital OECD banks, and all claims on non- have an internal audit procedure that requirements—i. Low-level exposure. If OECD central governments that entail 39 periodically verifies that the internal the maximum contractual exposure to some degree of transfer risk. This credit risk ratings are assigned in loss retained or assumed by a bank category includes all claims on foreign accordance with the established criteria; holding company in connection with a and domestic private-sector obligors not 8. The bank holding company must recourse obligation or a direct credit included in the categories above monitor the performance of the internal substitute is less than the effective risk- (including loans to nondepository credit risk ratings assigned to nonrated, based capital requirement for the financial institutions and bank holding nontraded direct credit substitutes over enhanced assets, the risk-based capital companies); claims on commercial firms time to determine the appropriateness of requirement is limited to the maximum owned by the public sector; customer the initial credit risk rating assignment contractual exposure, less any liability liabilities to the organization on and adjust individual credit risk ratings, account established in accordance with acceptances outstanding involving or the overall internal credit risk ratings generally accepted accounting standard risk claims;40 investments in system, as needed; and principles. This limitation does not fixed assets, premises, and other real 9. The internal credit risk system apply when a bank holding company estate owned; common and preferred must make credit risk rating provides credit enhancement beyond stock of corporations, including stock assumptions that are consistent with, or any contractual obligation to support acquired for debts previously more conservative than, the credit risk assets it has sold. contracted; all stripped mortgage-backed rating assumptions and methodologies ii. Mortgage-related securities or securities and similar instruments; and of NRSROs. participation certificates retained in a commercial and consumer loans (except ii. Program Ratings. A direct credit mortgage loan swap. If a bank holding those assigned to lower risk categories substitute or recourse obligation (other company holds a mortgage-related due to recognized guarantees or than a residual interest) is assumed or security or a participation certificate as collateral and loans secured by retained in connection with a structured a result of a mortgage loan swap with residential property that qualify for a finance program and a NRSRO has recourse, capital is required to support lower risk weight). reviewed the terms of the program and the recourse obligation plus the c. Also included in this category are stated a rating for positions associated percentage of the mortgage-related industrial-development bonds and with the program. If the program has security or participation certificate that similar obligations issued under the options for different combinations of is not covered by the recourse auspices of states or political assets, standards, internal credit obligation. The total amount of capital subdivisions of the OECD-based group enhancements and other relevant required for the on-balance sheet asset of countries for the benefit of a private factors, and the NRSRO specifies ranges and the recourse obligation, however, is party or enterprise where that party or of rating categories to them, the bank limited to the capital requirement for enterprise, not the government entity, is holding company may apply the rating the underlying loans, calculated as if the obligated to pay the principal and category that corresponds to the bank organization continued to hold these interest, and all obligations of states or holding company’s position. In order to loans as on-balance sheet assets. political subdivisions of countries that rely on a program rating, the bank iii. Related on-balance sheet assets. If do not belong to the OECD-based group. holding company must demonstrate to a recourse obligation or direct credit the Federal Reserve’s satisfaction that substitute subject to section III.B.3. of 39 Such assets include all nonlocal currency the credit risk rating assigned to the this appendix also appears as a balance claims on, and the portions of claims that are program meets the same standards sheet asset, the balance sheet asset is not guaranteed by, non-OECD central governments and generally used by NRSROs for rating included in an organization’s risk- those portions of local currency claims on, or guaranteed by, non-OECD central governments that traded positions. The bank holding weighted assets to the extent the value exceed the local currency liabilities held by company must also demonstrate to the of the balance sheet asset is already subsidiary depository institutions. Federal Reserve’s satisfaction that the included in the off-balance sheet credit 40 Customer liabilities on acceptances outstanding criteria underlying the NRSRO’s equivalent amount for the recourse involving nonstandard risk claims, such as claims on U.S. depository institutions, are assigned to the assignment of ratings for the program obligation or direct credit substitute, risk category appropriate to the identity of the are satisfied for the particular position. except in the case of loan servicing obligor or, if relevant, the nature of the collateral If a bank holding company participates assets and similar arrangements with or guarantees backing the claims. Portions of in a securitization sponsored by another embedded recourse obligations or direct acceptances conveyed as risk participations to U.S. depository institutions or foreign banks are assigned party, the Federal Reserve may credit substitutes. In that case, both the to the 20 percent risk category appropriate to short- authorize the bank holding company to on-balance sheet assets and the related term claims guaranteed by U.S. depository use this approach based on a recourse obligations and direct credit institutions and foreign banks.
VerDate 11
d. The following assets also are include commitments to make However, the pro rata share of the credit assigned a risk weight of 100 percent if residential mortgage loans or forward equivalent amount that has been they have not been deducted from foreign exchange contracts. conveyed through a risk participation is capital: investments in unconsolidated c. Securities lent by a banking assigned to whichever risk category is companies, joint ventures, or associated organization are treated in one of two lower: the risk category appropriate to companies; instruments that qualify as ways, depending upon whether the the obligor, after considering any capital issued by other banking lender is at risk of loss. If a banking relevant guarantees or collateral, or the organizations; and any intangibles, organization, as agent for a customer, risk category appropriate to the including those that may have been lends the customer’s securities and does institution acquiring the participation.44 grandfathered into capital. not indemnify the customer against loss, Any remainder is assigned to the risk * * * * * then the transaction is excluded from category appropriate to the obligor, the risk-based capital calculation. If, guarantor, or collateral. For example, D. * * * alternatively, a banking organization the pro rata share of the full amount of The face amount of an off-balance lends its own securities or, acting as the assets supported, in whole or in sheet item is generally incorporated into agent for a customer, lends the part, by a direct credit substitute risk-weighted assets in two steps. The customer’s securities and indemnifies conveyed as a risk participation to a face amount is first multiplied by a the customer against loss, the U.S. domestic depository institution or credit conversion factor, except for transaction is converted at 100 percent foreign bank is assigned to the 20 direct credit substitutes and recourse and assigned to the risk weight category percent risk category.45 obligations as discussed in section appropriate to the obligor, or, if e. In the case of direct credit III.D.1. of this appendix. The resultant applicable, to any collateral delivered to substitutes in which a risk participation credit equivalent amount is assigned to the lending organization, or the has been acquired, the acquiring the appropriate risk category according independent custodian acting on the banking organization’s percentage share to the obligor or, if relevant, the lending organization’s behalf. Where a of the direct credit substitute is guarantor or the nature of the banking organization is acting as agent multiplied by the full amount of the collateral.41 Attachment IV to this for a customer in a transaction involving assets that are supported, in whole or in appendix A sets forth the conversion the lending or sale of securities that is part, by the credit enhancement and factors for various types of off-balance collateralized by cash delivered to the converted to a credit equivalent amount sheet items. banking organization, the transaction is at 100 percent. The credit equivalent 1. Items with a 100 percent conversion deemed to be collateralized by cash on amount of an acquisition of a risk factor. a. Except as otherwise provided deposit in a subsidiary depository participation in a direct credit substitute in section III.B.3. of this appendix, the institution for purposes of determining is assigned to the risk category full amount of an asset or transaction the appropriate risk-weight category, appropriate to the account party obligor supported, in whole or in part, by a provided that any indemnification is or, if relevant, the nature of the direct credit substitute or a recourse limited to no more than the difference collateral or guarantees. obligation. Direct credit substitutes and between the market value of the f. In the case of direct credit recourse obligations are defined in securities and the cash collateral substitutes that take the form of a section III.B.3. of this appendix. received and any reinvestment risk syndication where each banking b. Sale and repurchase agreements associated with that cash collateral is organization is obligated only for its pro and forward agreements. Forward borne by the customer. rata share of the risk and there is no agreements are legally binding d. In the case of direct credit recourse to the originating banking contractual obligations to purchase substitutes in which a risk organization, each banking organization assets with certain drawdown at a participation 43 has been conveyed, the will only include its pro rata share of specified future date. Such obligations full amount of the assets that are the assets supported, in whole or in include forward purchases, forward supported, in whole or in part, by the part, by the direct credit substitute in its forward deposits placed,42 and partly- credit enhancement are converted to a risk-based capital calculation.46 paid shares and securities; they do not credit equivalent amount at 100 percent. * * * * *
ATTACHMENT II.—SUMMARY OF DEFINITION OF QUALIFYING CAPITAL FOR BANK HOLDING COMPANIES* [Using the year-end 1992 standard]
Components Minimum requirements
Core Capital (Tier 1) ...... Must equal or exceed 4% of weighted-risk assets. Common stockholders’ equity ...... No limit. Qualifying noncumulative perpetual preferred stock ...... No limit; banks should avoid undue reliance on preferred stock in tier 1.
41 The sufficiency of collateral and guarantees for 43 That is, a participation in which the originating 45 Risk participations with a remaining maturity off-balance-sheet items is determined by the market banking organization remains liable to the of over one year that are conveyed to non-OECD value of the collateral or the amount of the beneficiary for the full amount of the direct credit banks are to be assigned to the 100 percent risk guarantee in relation to the face amount of the item, substitute if the party that has acquired the category, unless a lower risk category is appropriate except for derivative contracts, for which this participation fails to pay when the instrument is to the obligor, guarantor, or collateral. determination is generally made in relation to the drawn. 46 For example, if a banking organization has a 10 credit equivalent amount. Collateral and guarantees 44 A risk participation in bankers acceptances percent share of a $10 syndicated direct credit are subject to the same provisions noted under conveyed to other institutions is also assigned to substitute that provides credit support to a $100 section III.B. of this appendix A. the risk category appropriate to the institution loan, then the banking organization’s $1 pro rata 42 Forward forward deposits accepted are treated acquiring the participation or, if relevant, the share in the enhancement means that a $10 pro rata as interest rate contracts. guarantor or nature of the collateral. share of the loan is included in risk weighted assets.
VerDate 11
ATTACHMENT II.—SUMMARY OF DEFINITION OF QUALIFYING CAPITAL FOR BANK HOLDING COMPANIES*—Continued [Using the year-end 1992 standard]
Components Minimum requirements
Qualifying cumulative preferred stock ...... Limited to 25% of the sum of common stock, qualifying perpetual pre- ferred stock, and minority interests. Minority interest in equity accounts of consolidated subsidiaries. .... Banks should avoid using minority interests to subsidiaries introduce elements not otherwise qualifying for tier 1 capital. Less: Goodwill, other intangible assets, and credit-enhancing inter- est-only strips required to be deducted from capital1 Supplementary Capital (Tier 2) ...... Total of tier 2 is limited to 100% of tier 1.2 Allowance for loan and lease losses ...... Limited to 1.25% of weighted-risk assets. 2 Perpetual preferred stock ...... No limit within tier 2. Hybrid instruments, perpetual debt and mandatory convertible se- No limit within tier 2. curities.. Subordinated debt and intermediate-term preferred stock (original Subordinated debt and intermediate-term preferred stock are limited to weighted average maturity of 5 years or more). 50% of tier 1, 2 amortized for capital purposes as they approach ma- turity. Revaluation reserves (equity and building) ...... Not included; banks encouraged to disclose; may be evaluated on a case-by-case basis for international comparisons; and taken into ac- count in making an overall assessment of capital. Deductions (from sum of tier 1 and tier 2): Investment in unconsolidated subsidiaries ...... As a general rule, one-half of the aggregate investments will be de- ducted from tier 1 capital and one-half from tier 2 capital.3 Reciprocal holdings of banking organizations’ capital securities. Other deductions (such as other subsidiaries or joint ventures) as On a case-by-case basis or as a matter of policy after a formal rule- determined by supervisory authority. making. Total Capital (tier 1 + tier 2 ¥ deductions) ...... Must equal or exceed 8% or weighted-risk assets. 1 Requirements for the deduction of other intangible assets and residual interests are set forth in section II.B.1. of this appendix. 2 Amount in excess of limitations are permitted but do not qualify as capital. 3 A proportionately greater amount may be deducted from tier 1 capital, if the risks associated with the subsidiary so warrant. * See discussion in section II of the guidelines for a complete description of the requirements for, and the limitations on, the components for qualifying capital.
* * * * * As a general matter, average total forth in section II.B.4. of appendix A of 3. In Appendix D to part 225, section consolidated assets are defined as the this part.4 II.b. is revised to read as follows: quarterly average total assets (defined * * * * * net of the allowance for loan and lease By order of the Board of Governors of the Appendix D to Part 225—Capital losses) reported on the organization’s Adequacy Guidelines for Bank Holding Federal Reserve System. Consolidated Financial Statements (FR Companies: Tier 1 Leverage Measure Dated: November 8, 2001. Y–9C Report), less goodwill; amounts of Margaret McCloskey Shanks, * * * * * mortgage servicing assets, nonmortgage Assistant Secretary of the Board. II. * * * servicing assets, and purchased credit card relationships, that, in the aggregate, FEDERAL DEPOSIT INSURANCE b. A banking organization’s tier 1 are in excess of 100 percent of tier 1 CORPORATION leverage ratio is calculated by dividing capital; amounts of nonmortgage 12 CFR Chapter III its tier 1 capital (the numerator of the servicing assets, and purchased credit ratio) by its average total consolidated card relationships that, in the aggregate, Authority and Issuance assets (the denominator of the ratio). are in excess of 25 percent of tier 1 The ratio will also be calculated using For the reasons set out in the joint capital; the amounts of credit-enhancing period-end assets whenever necessary, preamble, part 325 of chapter III of title on a case-by-case basis. For the purpose interest-only strips that are in excess of 12 of the Code of Federal Regulations is of this leverage ratio, the definition of 25 percent of tier 1 capital; all other amended as follows: identifiable intangible assets; any tier 1 capital as set forth in the risk- PART 325—CAPITAL MAINTENANCE based capital guidelines contained in investments in subsidiaries or appendix A of this part will be used.3 associated companies that the Federal 1. The authority citation for part 325 Reserve determines should be deducted continues to read as follows: 3 Tier 1 capital for banking organizations includes from tier 1 capital; and deferred tax Authority: 12 U.S.C. 1815(a), 1815(b), common equity, minority interest in the equity assets that are dependent upon future accounts of consolidated subsidiaries, qualifying 1816, 1818(a), 1818(b), 1818(c), 1818(t), noncumulative perpetual preferred stock, and taxable income, net of their valuation 1819(Tenth), 1828(c), 1828(d), 1828(i), qualifying cumulative perpetual preferred stock. allowance, in excess of the limitation set 1828(n), 1828(o), 1831o, 1835, 3907, 3909, (Cumulative perpetual preferred stock is limited to 4808; Pub. L. 102–233, 105 Stat. 1761, 1789, 25 percent of tier 1 capital.) In addition, as a general 1790 (12 U.S.C. 1831n note); Pub. L. 102– matter, tier 1 capital excludes goodwill; amounts of that are in excess of 25 percent of tier 1capital; all 242, 105 Stat. 2236, 2355, as amended by mortage servicing assets, nonmortgage servicing other identifiable intangible assets; and deferred tax Pub. L. 103–325, 108 Stat. 2160, 2233 (12 assets, and purchased credit card relationships that, in the aggregate, exceed 100 percent of tier 1 assets that are dependent upon future taxable U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. capital; amounts of nonmortgage servicing assets income, net of their valuation allowance, in excess and purchased credit card relationships that, in the of certain limitations. The Federal Reserve may 4 Deductions from tier 1 capital and other aggregate, exceed 25 percent of tier 1 capital; exclude certain investments in subsidiaries or adjustments are discussed more fully in section II.B. amounts of credit-enhancing interest-only strips associated companies as appropriate. of appendix A of this part.
VerDate 11
2236, 2386, as amended by Pub. L. 102–550, (x) Total assets means the average of (1) Valuation. The fair value of 106 Stat. 3672, 4089 (12 U.S.C. 1828 note). total assets required to be included in a mortgage servicing assets, purchased 2. In § 325.2: banking institution’s ‘‘Reports of credit card relationships, nonmortgage A. Redesignate paragraphs (g) through Condition and Income’’ (Call Report) or, servicing assets, and credit-enhancing (x) as paragraphs (i) through (z); for savings associations, the interest-only strips shall be estimated at B. Add new paragraphs (g) and (h); consolidated total assets required to be least quarterly. The quarterly fair value C. Amend newly designated included in the ‘‘Thrift Financial estimate shall include adjustments for paragraphs (v) and (x) to read as follows: Report,’’ as these reports may from time any significant changes in the original to time be revised, as of the most recent valuation assumptions, including § 325.2 Definitions. report date (and after making any changes in prepayment estimates or * * * * * necessary subsidiary adjustments for attrition rates. The FDIC in its discretion (g)(1) Credit-enhancing interest-only state nonmember banks as described in may require independent fair value strip means an on-balance sheet asset §§ 325.5(c) and 325.5(d) of this part), estimates on a case-by-case basis where that, in form or in substance: minus intangible assets (other than it is deemed appropriate for safety and (i) Represents the contractual right to mortgage servicing assets, nonmortgage soundness purposes. receive some or all of the interest due servicing assets, and purchased credit (2) Fair value limitation. For purposes on transferred assets; and card relationships eligible for inclusion of calculating Tier 1 capital under this (ii) Exposes the bank to credit risk in core capital pursuant to § 325.5(f)), part (but not for financial statement directly or indirectly associated with the minus credit-enhancing interest-only purposes), the balance sheet assets for transferred assets that exceeds a pro rata strips that are not eligible for inclusion mortgage servicing assets, purchased share of the bank’s claim on the assets, in core capital pursuant to § 325.5(f)), credit card relationships, and whether through subordination minus deferred tax assets in excess of nonmortgage servicing assets will each provisions or other credit enhancement the limit set forth in § 325.5(g), and be reduced to an amount equal to the techniques. minus assets classified loss and any lesser of: (2) Reservation of authority. In other assets that are deducted in (i) 90 percent of the fair value of these determining whether a particular determining Tier 1 capital. For banking assets, determined in accordance with interest cash flow functions, directly or institutions, the average of total assets is paragraph (f)(1) of this section; or indirectly, as a credit-enhancing found in the Call Report schedule of (ii) 100 percent of the remaining interest-only strip, the FDIC will quarterly averages. For savings unamortized book value of these assets consider the economic substance of the associations, the consolidated total (net of any related valuation transaction. The FDIC, through the assets figure is found in Schedule CSC allowances), determined in accordance Director of Supervision, or other of the Thrift Financial Report. with the instructions for the preparation designated FDIC official reserves the of the ‘‘Reports of Income and right to identify other interest cash 3. In § 325.3, amend paragraph (b)(1) Condition’’ (Call Reports). flows or related assets as credit- by changing ‘‘CAMEL’’ to ‘‘CAMELS.’’ (3) Tier 1 capital limitations. (i)The maximum allowable amount of enhancing interest-only strips. 4. In § 325.5, revise paragraphs (f) and mortgage servicing assets, purchased (h) Face amount means the notional (g)(2) to read as follows: principal, or face value, amount of an credit card relationships, and off-balance sheet item; the amortized § 325.5 Miscellaneous. nonmortgage servicing assets in the cost of an asset not held for trading * * * * * aggregate, will be limited to the lesser of: purposes; and the fair value of a trading (f) Treatment of mortgage servicing asset. (A) 100 percent of the amount of Tier assets, purchased credit card 1 capital that exists before the deduction * * * * * relationships, nonmortgage servicing of any disallowed mortgage servicing (v) Tier 1 capital or core capital assets, and credit-enhancing interest- assets, any disallowed purchased credit means the sum of common only strips. For purposes of determining card relationships, any disallowed stockholders’ equity, noncumulative Tier 1 capital under this part, mortgage nonmortgage servicing assets, any perpetual preferred stock (including any servicing assets, purchased credit card disallowed credit-enhancing interest- related surplus), and minority interests relationships, nonmortgage servicing only strips, and any disallowed deferred in consolidated subsidiaries, minus all assets, and credit-enhancing interest- tax assets; or intangible assets (other than mortgage only strips will be deducted from assets (B) The sum of the amounts of servicing assets, nonmortgage servicing and from common stockholders’ equity mortgage servicing assets, purchased assets, and purchased credit card to the extent that these items do not credit card relationships, and relationships eligible for inclusion in meet the conditions, limitations, and nonmortgage servicing assets, core capital pursuant to § 325.5(f)), restrictions described in this section. determined in accordance with minus credit-enhancing interest-only Banks may elect to deduct disallowed paragraph (f)(2) of this section. strips that are not eligible for inclusion servicing assets and disallowed credit- (ii) The maximum allowable amount in core capital pursuant to § 325.5(f), enhancing interest-only strips on a basis of credit-enhancing interest-only strips, minus deferred tax assets in excess of that is net of a proportional amount of whether purchased or retained, will be the limit set forth in § 325.5(g), minus any associated deferred tax liability limited to the lesser of: identified losses (to the extent that Tier recorded on the balance sheet. Any (A) 25 percent of the amount of Tier 1 capital would have been reduced if deferred tax liability netted in this 1 capital that exists before the deduction the appropriate accounting entries to manner cannot also be netted against of any disallowed mortgage servicing reflect the identified losses had been deferred tax assets when determining assets, any disallowed purchased credit recorded on the insured depository the amount of deferred tax assets that card relationships, any disallowed institution’s books), and minus are dependent upon future taxable nonmortgage servicing assets, any investments in financial subsidiaries income and calculating the maximum disallowed credit-enhancing interest- subject to 12 CFR part 362, subpart E. allowable amount of these assets under only strips, and any disallowed deferred * * * * * paragraph (g) of this section. tax assets; or
VerDate 11
(B) The sum of the face amounts of all the amount of carryback potential that iv. Following the paragraph titled credit-enhancing interest-only strips. may be considered in calculating the Category 4—100 Percent Risk Weight, (4) Tier 1 capital sublimit. In addition amount of deferred tax assets that a add a new paragraph titled Category 5— to the aggregate limitation on mortgage member of a consolidated group (for tax 200 Percent Risk Weight; servicing assets, purchased credit card purposes) may include in Tier 1 capital G. Amend Table III by removing relationships, and nonmortgage may not exceed the amount which the references to footnote 1 each time they servicing assets set forth in paragraph member could reasonably expect to appear and revising paragraphs (1) (f)(3) of this section, a sublimit will have refunded by its parent. through (3) under ‘‘100 Percent apply to purchased credit card * * * * * Conversion Factor’’. relationships and nonmortgage servicing Appendix A to Part 325—Statement of assets. The maximum allowable amount § 325.103 [Amended] Policy on Risk-Based Capital of the aggregate of purchased credit card 5. In § 325.103, amend paragraph (b) relationships and nonmortgage servicing * * * * * by revising all references to ‘‘CAMEL’’ The framework set forth in this assets will be limited to the lesser of: to read ‘‘CAMELS’. (i) 25 percent of the amount of Tier 1 statement of policy consists of (1) a capital that exists before the deduction 6. In appendix A to part 325: definition of capital for risk-based of any disallowed mortgage servicing A. In the introductory section, second capital purposes, and (2) a system for assets, any disallowed purchased credit undesignated paragraph remove the last calculating risk-weighted assets by card relationships, any disallowed sentence and in the third undesignated assigning assets and off balance sheet nonmortgage servicing assets, any paragraph revise the first sentence; items to broad risk categories. * * * B. In section I, revise paragraph I.A.l. disallowed credit-enhancing interest- I. * * * only strips, and any disallowed deferred and redesignate footnotes 5 through 10 tax assets; or as footnotes 4 through 9; A. * * * (ii) The sum of the amounts of C. In section II: 1. Core capital elements (Tier 1) purchased credit card relationships and i. Amend paragraph II.A. by consists of: nonmortgage servicing assets designating the first two undesignated i. Common stockholders’ equity determined in accordance with paragraphs as l. and 2., respectively, capital (includes common stock and paragraph (f)(2) of this section. adding a new paragraph 3., and related surplus, undivided profits, (g) * * * redesignating footnote 11 as footnote 10; disclosed capital reserves that represent (2) Tier 1 capital limitations. (i) The ii. Amend paragraph II.B. by a segregation of undivided profits, and maximum allowable amount of deferred redesignating footnotes 12 through 13 as foreign currency translation tax assets that are dependent upon footnotes 11 through 12, revising adjustments, less net unrealized holding future taxable income, net of any paragraph 5, and removing paragraph 6; losses on available-for-sale equity valuation allowance for deferred tax iii. Amend paragraph II.C. by securities with readily determinable fair assets, will be limited to the lesser of: redesignating footnotes 15 through 31 as values); (A) The amount of deferred tax assets footnotes 16 through 32; under ii. Noncumulative perpetual preferred that are dependent upon future taxable ‘‘Category 2–20 Percent Risk Weight’’ stock,2 including any related surplus; income that is expected to be realized designating the three undesignated and within one year of the calendar quarter- paragraphs as paragraphs a. through c., iii. Minority interests in the equity end date, based on projected future respectively, and adding a new capital accounts of consolidated taxable income for that year; or paragraph d.; under ‘‘Category 3—50 subsidiaries. (B) 10 percent of the amount of Tier Percent Risk Weight’’ removing the third At least 50 percent of the qualifying 1 capital that exists before the deduction undesignated paragraph, designating the total capital base should consist of Tier of any disallowed mortgage servicing three remaining paragraphs as a. 1 capital. Core (Tier 1) capital is defined assets, any disallowed nonmortgage through c., respectively, revising newly as the sum of core capital elements servicing assets, any disallowed designated footnote 30, and adding a minus all intangible assets (other than purchased credit card relationships, any new paragraph d; revising ‘‘Category 4— mortgage servicing assets, nonmortgage disallowed credit-enhancing interest- 100 Percent Risk Weight’’; and adding a servicing assets and purchased credit only strips and any disallowed deferred new paragraph entitled ‘‘Category 5— card relationships eligible for inclusion tax assets. 200 Percent Risk Weight’’; in core capital pursuant to § 325.5(f)),3 (ii) For purposes of this limitation, all iv. Amend paragraph II.D. by revising minus credit-enhancing interest-only existing temporary differences should the undesignated introductory strips that are not eligible for inclusion be assumed to fully reverse at the paragraph and paragraph II.D.1.; in core capital pursuant to § 325.5(f)), calendar quarter-end date. The recorded removing footnote 38 and redesignating and minus any disallowed deferred tax amount of deferred tax assets that are footnotes 39 through 42 as footnotes 37 assets. dependent upon future taxable income, through 40. Although nonvoting common stock, net of any valuation allowance for D. Revise section III; noncumulative perpetual preferred deferred tax assets, in excess of this E. Revise Table I; limitation will be deducted from assets F. In Table II: 2 Preferred stock issues where the dividend is reset periodically based, in whole or in part, upon and from equity capital for purposes of i. Amend Category 2—20 Percent Risk the bank’s current credit standing, including but not determining Tier 1 capital under this Weight, by removing paragraph (11), limited to, auction rate, money market or part. The amount of deferred tax assets redesignating paragraph (12) as remarketable preferred stock, are assigned to Tier 2 that can be realized from taxes paid in paragraph (11), and adding new capital, regardless of whether the dividends are cumulative or noncumulative. prior carryback years and from the paragraph (12); 3 An exception is allowed for intangible assets reversal of existing taxable temporary ii. Amend Category 3—50 Percent that are explicitly approved by the FDIC as part of differences generally would not be Risk Weight, by revising paragraph (3); the bank’s regulatory capital on a specific case deducted from assets and from equity iii. Amend Category 4—100 Percent basis. These intangibles will be included in capital for risk-based capital purposes under the terms and capital. However, notwithstanding the Risk Weight, by revising paragraph (9) conditions that are specifically approved by the first three sentences in this paragraph, and adding a new paragraph (10); and FDIC.
VerDate 11
stock, and minority interests in the balance sheet item. In making such a directly or indirectly associated with an equity capital accounts of consolidated determination, the Director of the on-or off-balance sheet asset or exposure subsidiaries are normally included in Division of Supervision will consider that was not previously owned by the Tier 1 capital, voting common the similarity of the asset or off-balance bank (third-party asset) and the risk stockholders’ equity generally will be sheet item to assets or off-balance sheet assumed by the bank exceeds the pro expected to be the dominant form of items explicitly treated in sections II.B rata share of the bank’s interest in the Tier 1 capital. Thus, banks should avoid and II.C of this appendix A, as well as third-party asset. If the bank has no undue reliance on nonvoting equity, other relevant factors. claim on the asset, then the bank’s preferred stock and minority interests. B.*** assumption of any credit risk is a direct Although minority interests in credit substitute. Direct credit consolidated subsidiaries are generally 5. Recourse, Direct Credit Substitutes, substitutes include, but are not limited included in regulatory capital, Residual Interests and Mortgage- and to: exceptions to this general rule will be Asset-Backed Securities. For purposes (i) Financial standby letters of credit, made if the minority interests fail to of this section II.B.5 of this appendix A, which includes any letter of credit or provide meaningful capital support to the following definitions will apply. similar arrangement, however named or the consolidated bank. Such a situation (a) Definitions. (1) Credit derivative described, that support financial claims could arise if the minority interests are means a contract that allows one party on a third party that exceed a bank’s pro entitled to a preferred claim on (the protection purchaser) to transfer the rata share in the financial claim; essentially low risk assets of the credit risk of an asset or off-balance (ii) Guarantees, surety arrangements, subsidiary. Similarly, although credit- sheet credit exposure to another party credit derivatives, and irrevocable enhancing interest-only strips and (the protection provider). The value of guarantee-type instruments backing intangible assets in the form of mortgage a credit derivative is dependent, at least financial claims such as outstanding servicing assets, nonmortgage servicing in part, on the credit performance of a securities, loans, or other financial assets and purchased credit card ‘‘reference asset.’’ claims, or that back off-balance-sheet relationships are generally recognized (2) Credit-enhancing interest-only items against which risk-based capital for risk-based capital purposes, the strip is defined in § 325.2(g). must be maintained; (3) Credit-enhancing representations deduction of part or all of the credit- (iii) Purchased subordinated interests and warranties means representations enhancing interest-only strips, mortgage or securities that absorb more than their and warranties that are made or servicing assets, nonmortgage servicing pro rata share of credit losses from the assumed in connection with a transfer assets and purchased credit card underlying assets. Purchased of assets (including loan servicing relationships may be required if the subordinated interests that are credit- assets) and that obligate a bank to carrying amounts of these assets are enhancing interest-only strips are protect investors from losses arising excessive in relation to their market subject to the higher capital charge from credit risk in the assets transferred value or the level of the bank’s capital specified in section II.B.5.(f) of this or the loans serviced. Credit-enhancing accounts. Credit-enhancing interest-only Appendix A; representations and warranties include strips, mortgage servicing assets, (iv) Entering into a credit derivative nonmortgage servicing assets, purchased promises to protect a party from losses resulting from the default or contract under which the bank assumes credit card relationships and deferred more than its pro rata share of credit tax assets that do not meet the nonperformance of another party or from an insufficiency in the value of the risk on a third-party asset or exposure; conditions, limitations and restrictions (v) Loans or lines of credit that described in § 325.5(f) and (g) of this collateral. Credit-enhancing representations and warranties do not provide credit enhancement for the part will not be recognized for risk- financial obligations of an account based capital purposes. include: (i) Early-default clauses and similar party; * * * * * warranties that permit the return of, or (vi) Purchased loan servicing assets if II.*** premium refund clauses covering, 1–4 the servicer: (A) Is responsible for credit losses A.*** family residential first mortgage loans (as described in section II.C, Category 3– associated with the loans being 3. The Director of the Division of 50 Percent Risk Weight, of this serviced, Supervision may, on a case-by-case appendix A) for a period of 120 days (B) Is responsible for making mortgage basis, determine the appropriate risk from the date of transfer. These servicer cash advances (unless the weight for any asset or credit equivalent warranties may cover only those loans advances are not direct credit amount that does not fit wholly within that were originated within 1 year of the substitutes because they meet the one of the risk categories set forth in this date of transfer; conditions specified in paragraph Appendix A or that imposes risks on a (ii) Premium refund clauses covering B.5(a)(9) of this appendix A), or bank that are not commensurate with assets guaranteed, in whole or in part, (C) Makes or assumes credit- the risk weight otherwise specified in by the U.S. Government, a U.S. enhancing representations and this Appendix A for the asset or credit Government agency, or a U.S. warranties on the serviced loans; and equivalent amount. In addition, the Government-sponsored agency, (vii) Clean-up calls on third party Director of the Division of Supervision provided the premium refund clauses assets. Clean-up calls that are may, on a case-by-case basis, determine are for a period not to exceed 120 days exercisable at the option of the bank (as the appropriate credit conversion factor from the date of transfer; or servicer or as an affiliate of the servicer) for any off-balance sheet item that does (iii) Warranties that permit the return when the pool balance is 10 percent or not fit wholly within one of the credit of assets in instances of fraud, less of the original pool balance are not conversion factors set forth in this misrepresentation, or incomplete direct credit substitutes. Appendix A or that imposes risks on a documentation. (5) Externally rated means, with bank that are not commensurate with (4) Direct credit substitute means an respect to an instrument or obligation, the credit conversion factor otherwise arrangement in which a bank assumes, that an instrument or obligation has specified in this Appendix A for the off- in form or in substance, credit risk received a credit rating from at least one
VerDate 11
nationally recognized statistical rating when an institution transfers assets in a accounts, retained subordinated organization. sale and retains an obligation to interests and other forms of over- (6) Face amount is defined in repurchase the assets or absorb losses collateralization, and similar assets that § 325.2(h). due to a default of principal or interest function as a credit enhancement. (7) Financial asset means cash, or any other deficiency in the Residual interests further include those evidence of an ownership interest in an performance of the underlying obligor exposures that, in substance, cause the entity, or a contract that conveys to a or some other party. Recourse may exist bank to retain the credit risk of an asset second entity a contractual right: implicitly where a bank provides credit or exposure that had qualified as a (i) To receive cash or another enhancement beyond any contractual residual interest before it was sold. financial instrument from a first entity; obligation to support assets it has sold. Residual interests generally do not or The following are examples of recourse include interests purchased from a third (ii) To exchange other financial arrangements: party, except that purchased credit- instruments on potentially favorable (i) Credit-enhancing representations enhancing interest-only strips are terms with the first entity. and warranties made on the transferred residual interests. (8) Financial standby letter of credit assets; (13) Risk participation means a means a letter of credit or similar (ii) Loan servicing assets retained participation in which the originating arrangement that represents an pursuant to an agreement under which bank remains liable to the beneficiary irrevocable obligation to a third-party the bank: for the full amount of an obligation (e.g. beneficiary: (A) Is responsible for losses associated a direct credit substitute) (i) To repay money borrowed by, or with the loans serviced, notwithstanding that another party has advanced to, or for the account of, a (B) Is responsible for making mortgage acquired a participation in that second party (the account party); or servicer cash advances (unless the obligation. (ii) To make payment on behalf of the advances are not a recourse obligation (14) Securitization means the pooling account party, in the event that the because they meet the conditions of and repackaging by a special purpose account party fails to fulfill its paragraph B.5(a)(9) of this appendix A), entity of assets or other credit exposures obligation to the beneficiary. or into securities that can be sold to (9) Mortgage servicer cash advance (C) Makes credit-enhancing investors. Securitization includes means funds that a residential mortgage representations and warranties on the transactions that generally create servicer advances to ensure an serviced loans; stratified credit risk positions whose uninterrupted flow of payments or the (iii) Retained subordinated interests performance is dependent upon an timely collection of residential mortgage that absorb more than their pro rata underlying pool of credit exposures, loans, including disbursements made to share of losses from the underlying including loans and commitments. cover foreclosure costs or other assets; (15) Structured finance program expenses arising from a mortgage loan to (iv) Assets sold under an agreement to means a program where receivable facilitate its timely collection. A repurchase, if the assets are not already interests and asset-backed securities mortgage servicer cash advance is not a included on the balance sheet; issued by multiple participants are recourse obligation or a direct credit (v) Loan strips sold without purchased by a special purpose entity substitute if: contractual recourse where the maturity that repackages those exposures into (i) The mortgage servicer is entitled to of the transferred portion of the loan is securities that can be sold to investors. full reimbursement or, for any one shorter than the maturity of the Structured finance programs allocate residential mortgage loan, commitment under which the loan is credit risks, generally, between the nonreimbursable advances are drawn; participants and the credit enhancement contractually limited to an insignificant (vi) Credit derivative contracts under provided to the program. amount of the outstanding principal on which the bank retains more than its pro (16) Traded position means a position that loan, and rata share of credit risk on transferred or asset-backed security retained, (ii) The servicer’s entitlement to assets; and assumed or issued in connection with a reimbursement is not subordinated. (vii) Clean-up calls. Clean-up calls securitization that is externally rated, (10) Nationally recognized statistical that are exercisable at the option of the where there is a reasonable expectation rating organization (NRSRO) means an bank (as servicer or as an affiliate of the that, in the near future, the rating will entity recognized by the Division of servicer) when the pool balance is 10 be relied upon by: Market Regulation of the Securities and percent or less of the original pool (i) Unaffiliated investors to purchase Exchange Commission (or any successor balance, are not recourse. the position; or Division) (Commission) as a nationally (12) Residual interest means any on- (ii) An unaffiliated third party to enter recognized statistical rating organization balance sheet asset that represents an into a transaction involving the for various purposes, including the interest (including a beneficial interest) position, such as a purchase, loan or Commission’s uniform net capital created by a transfer that qualifies as a repurchase agreement. requirements for brokers and dealers (17 sale (in accordance with generally (b) Credit equivalent amounts and CFR 240.15c3–1). accepted accounting principles) of risk weights of recourse obligations and (11) Recourse means an arrangement financial assets, whether through a direct credit substitutes—(1) General in which a bank retains, in form or in securitization or otherwise, and that rule for determining the credit- substance, any credit risk directly or exposes a bank to credit risk directly or equivalent amount. Except as otherwise indirectly associated with an asset it has indirectly associated with the provided, the credit-equivalent amount sold (in accordance with generally transferred asset that exceeds a pro rata for a recourse obligation or direct credit accepted accounting principles) that share of that bank’s claim on the asset, substitute is the full amount of the exceeds a pro rata share of the bank’s whether through subordination credit-enhanced assets for which the claim on the asset. If a bank has no provisions or other credit enhancement bank directly or indirectly retains or claim on an asset it has sold, then the techniques. Residual interests generally assumes credit risk multiplied by a retention of any credit risk is recourse. include credit-enhancing interest-only 100% conversion factor. Thus, a bank A recourse obligation typically arises strips, spread accounts, cash collateral that extends a partial direct credit
VerDate 11
substitute, e.g., a financial standby letter participation, the full amount of the the risk-weight category appropriate to of credit that absorbs the first 10 percent assets that are supported by the direct the obligor in the underlying of loss on a transaction, must maintain credit substitute is converted to a credit transaction, after considering any capital against the full amount of the equivalent amount using a 100% associated guarantees or collateral. assets being supported. conversion factor. However, the pro rata (3) Treatment for direct credit (2) Risk-weight factor. To determine share of the credit equivalent amount substitutes related to syndications. In the bank’s risk-weighted assets for an that has been conveyed through a risk the case of a direct credit substitute that off-balance sheet recourse obligation or participation is then assigned to takes the form of a syndication where a direct credit substitute, the credit whichever risk-weight category is lower: each party is obligated only for its pro equivalent amount is assigned to the the risk-weight category appropriate to rata share of the risk and there is no risk category appropriate to the obligor the obligor in the underlying recourse to the originating entity, each in the underlying transaction, after transaction, after considering any bank’s credit equivalent amount will be considering any associated guarantees associated guarantees or collateral, or calculated by multiplying only its pro or collateral. For a direct credit the risk-weight category appropriate to rata share of the assets supported by the substitute that is an on-balance sheet the party acquiring the participation. direct credit substitute by a 100% asset, e.g., a purchased subordinated The pro rata share of the credit conversion factor. The resulting credit security, a bank must calculate risk- equivalent amount that has not been equivalent amount is then assigned to weighted assets using the amount of the participated out is assigned to the risk- the risk-weight category appropriate to direct credit substitute and the full weight category appropriate to the the obligor in the underlying amount of the assets it supports, i.e., all obligor, guarantor, or collateral. For transaction, after considering any the more senior positions in the example, the pro rata share of the full associated guarantees or collateral. structure. The treatment covered in this amount of the assets supported, in (d) Externally rated positions: credit- paragraph (b) is subject to the low-level whole or in part, by a direct credit exposure rule provided in section equivalent amounts and risk weights.— substitute conveyed as a risk (1) Traded positions. With respect to a II.B.5(h)(1) of this appendix A. participation to a U.S. domestic (c) Credit equivalent amount and risk recourse obligation, direct credit depository institution or an OECD bank weight of participations in, and substitute, residual interest (other than is assigned to the 20 percent risk a credit-enhancing interest-only strip) or syndications of, direct credit substitutes. 13 Subject to the low-level exposure rule category. mortgage- or asset-backed security that provided in section II.B.5(h)(1) of this (2) Treatment for direct credit is a ‘‘traded position’’ and that has appendix A, the credit equivalent substitutes in which the bank has received an external rating on a long- amount for a participation interest in, or acquired a risk participation. In the case term position that is one grade below syndication of, a direct credit substitute of a direct credit substitute in which the investment grade or better or a short- (excluding purchased credit-enhancing bank has acquired a risk participation, term position that is investment grade, interest-only strips) is calculated and the acquiring bank’s pro rata share of the bank may multiply the face amount risk weighted as follows: the direct credit substitute is multiplied of the position by the appropriate risk (1) Treatment for direct credit by the full amount of the assets that are weight, determined in accordance with substitutes for which a bank has supported by the direct credit substitute Table A or B of this appendix A, as conveyed a risk participation. In the and converted using a 100% credit appropriate.14 If a traded position case of a direct credit substitute in conversion factor. The resulting credit receives more than one external rating, which a bank has conveyed a risk equivalent amount is then assigned to the lowest rating will apply.
TABLE A
Risk weight Long-term rating category Examples (In percent)
Highest or second highest investment grade ...... AAA, AA ...... 20 Third highest investment grade ...... A ...... 50 Lowest investment grade ...... BBB ...... 100 One category below investment grade ...... BB ...... 200
TABLE B
Risk weight Short-term rating category Examples (In percent)
Highest investment grade ...... A–1, P–1 ...... 20 Second highest investment grade ...... A–2, P–2 ...... 50 Lowest investment grade ...... A–3, P–3 ...... 100
13 A risk participation with a remaining maturity of one year or less that is conveyed to a non-OECD bank is also assigned to the 20 percent risk category. 14 Stripped mortgage-backed securities and similar instruments, such as interest-only strips that are not credit-enhancing and principal-only strips, must be assigned to the 100% risk category.
VerDate 11
(2) Non-traded positions. A recourse will apply only if the traded position associated deferred tax liability obligation, direct credit substitute, provides substantial credit support for recorded on the balance sheet), even if residual interest (but not a credit- the entire life of the unrated position. the amount of risk-based capital enhancing interest-only strip) or (f) Residual interests—(1) required to be maintained exceeds the mortgage- or asset-backed security Concentration limit on credit-enhancing full risk-based capital requirement for extended in connection with a interest-only strips. In addition to the the assets transferred. Transactions that, securitization that is not a ‘‘traded capital requirement provided by section in substance, result in the retention of position’’ may be assigned a risk weight II.B.5(f)(2) of this appendix A, a bank credit risk associated with a transferred in accordance with section II.B.5(d)(1) must deduct from Tier 1 capital the face residual interest will be treated as if the of this appendix A if: amount of all credit-enhancing interest- residual interest was retained by the (i) It has been externally rated by only strips in excess of 25 percent of bank and not transferred. more than one NRSRO; Tier 1 capital in accordance with (ii) It has received an external rating § 325.5(f)(3). (4) Residual interests and other on a long-term position that is one (2) Credit-enhancing interest-only recourse obligations. Where the category below investment grade or strip capital requirement. After applying aggregate capital requirement for better or a short-term position that is the concentration limit to credit- residual interests (including credit- investment grade by all NRSROs enhancing interest-only strips in enhancing interest-only strips) and providing a rating; accordance with § 325.5(f)(3), a bank recourse obligations arising from the (iii) The ratings are publicly available; must maintain risk-based capital for a same transfer of assets exceed the full and credit-enhancing interest-only strip, risk-based capital requirement for assets (iv) The ratings are based on the same equal to the remaining face amount of transferred, a bank must maintain risk- criteria used to rate traded positions. If the credit-enhancing interest-only strip based capital equal to the greater of the the ratings are different, the lowest (net of the remaining proportional risk-based capital requirement for the rating will determine the risk category amount of any existing associated residual interest as calculated under to which the recourse obligation, direct deferred tax liability recorded on the sections II.B.5(f)(2) through (3) of this credit substitute, residual interest, or balance sheet), even if the amount of appendix A or the full risk-based capital mortgage- or asset-backed security will risk-based capital required to be requirement for the assets transferred. be assigned. maintained exceeds the full risk-based (g) Positions that are not rated by an (e) Senior positions not externally capital requirement for the assets rated. For a recourse obligation, direct transferred. Transactions that, in NRSRO. A bank’s position (other than a credit substitute, residual interest or substance, result in the retention of residual interest) in a securitization or mortgage- or asset-backed security that credit risk associated with a transferred structured finance program that is not is not externally rated but is senior in credit-enhancing interest-only strip will rated by an NRSRO may be risk- all features to a traded position be treated as if the credit-enhancing weighted based on the bank’s (including collateralization and interest-only strip was retained by the determination of the credit rating of the maturity), a bank may apply a risk bank and not transferred. position, as specified in Table C of this weight to the face amount of the senior (3) Other residual interests capital appendix A, multiplied by the face position in accordance with section requirement. Except as otherwise amount of the position. In order to II.B.5(d)(1) of this appendix A, based provided in section II.B.5(d) or (e) of qualify for this treatment, the bank’s upon the risk weight of the traded this appendix A, a bank must maintain system for determining the credit rating position, subject to any current or risk-based capital for a residual interest of the position must meet one of the prospective supervisory guidance and (excluding a credit-enhancing interest- three alternative standards set out in the bank satisfying the FDIC that this only strip) equal to the face amount of section II.B.5(g)(1) through (3) of this treatment is appropriate. This section the residual interest (net of any existing appendix A.
TABLE C
Risk Weight Rating category Examples (In percent)
Investment grade ...... BBB or better ...... 100 One category below investment grade ...... BB ...... 200
(1) Internal risk rating used for asset- credit risk rating systems usually probability that the position will backed programs. A bank extends a contain the following criteria:15 experience any loss, the position’s direct credit substitute (but not a (i) The internal credit risk rating expected loss given default, and the purchased credit-enhancing interest- system is an integral part of the bank’s degree of variance in losses given only strip) to an asset-backed risk management system that explicitly default on that position; commercial paper program sponsored incorporates the full range of risks (iii) The internal credit risk rating by the bank and the bank is able to arising from a bank’s participation in system must separately consider the risk demonstrate to the satisfaction of the securitization activities; associated with the underlying loans or FDIC, prior to relying upon its use, that (ii) Internal credit ratings are linked to borrowers, and the risk associated with the bank’s internal credit risk rating measurable outcomes, such as the the structure of a particular system is adequate. Adequate internal securitization transaction; 15 The adequacy of a bank’s use of its internal (iv) The internal credit risk rating credit risk rating system must be demonstrated to the FDIC considering the criteria listed in this system identifies gradations of risk section and the size and complexity of the credit among ‘‘pass’’ assets and other risk exposures assumed by the bank. positions;
VerDate 11
(v) The internal credit risk rating computer program, the bank must (A) Is well capitalized as defined in system must have clear, explicit criteria demonstrate to the FDIC’s satisfaction § 325.103(b)(1) without applying the (including for subjective factors), that that ratings under the program capital treatment described in this are used to classify assets into each correspond credibly and reliably with section II.B.5(i), or internal risk grade; the ratings of traded positions. The bank (B) Is adequately capitalized as (vi) The bank must have independent must also demonstrate to the FDIC’s defined in § 325.103(b)(2) without credit risk management or loan review satisfaction the credibility of the applying the capital treatment described personnel assigning or reviewing the program in financial markets, the in this section II.B.5(i) and has received credit risk ratings; reliability of the program in assessing written permission by order of the FDIC (vii) An internal audit procedure credit risk, the applicability of the to apply the capital treatment described should periodically verify that internal program to the bank’s position, and the in this section II.B.5(i). risk ratings are assigned in accordance proper implementation of the program. (iii) Small business means a business with the bank’s established criteria; (h) Limitations on risk-based capital that meets the criteria for a small (viii) The bank must monitor the requirements—(1) Low-level exposure business concern established by the performance of the internal credit risk rule. If the maximum exposure to loss Small Business Administration in 13 ratings assigned to nonrated, nontraded retained or assumed by a bank in CFR part 121 pursuant to 15 U.S.C. 632. direct credit substitutes over time to connection with a recourse obligation, a (2) Capital and reserve requirements. determine the appropriateness of the direct credit substitute, or a residual Notwithstanding the risk-based capital initial credit risk rating assignment and interest is less than the effective risk- treatment outlined in any other adjust individual credit risk ratings, or based capital requirement for the credit- paragraph (other than paragraph (i) of the overall internal credit risk ratings enhanced assets, the risk-based capital this section II.B.5), with respect to a system, as needed; and required under this appendix A is transfer with recourse of a small (ix) The internal credit risk rating limited to the bank’s maximum business loan or a lease to a small system must make credit risk rating contractual exposure, less any recourse business of personal property that is a assumptions that are consistent with, or liability account established in sale under generally accepted more conservative than, the credit risk accordance with generally accepted accounting principles, and for which rating assumptions and methodologies accounting principles. This limitation the bank establishes and maintains a of NRSROs. does not apply when a bank provides non-capital reserve under generally (2) Program Ratings. A bank extends credit enhancement beyond any accepted accounting principles a direct credit substitute or retains a contractual obligation to support assets sufficient to meet the reasonable recourse obligation (but not a residual it has sold. estimated liability of the bank under the interest) in connection with a structured (2) Mortgage-related securities or recourse arrangement; a qualified bank finance program and an NRSRO has participation certificates retained in a may elect to include only the face reviewed the terms of the program and mortgage loan swap. If a bank holds a amount of its recourse in its risk- stated a rating for positions associated mortgage-related security or a weighted assets for purposes of with the program. If the program has participation certificate as a result of a calculating the bank’s risk-based capital options for different combinations of mortgage loan swap with recourse, ratio. assets, standards, internal credit capital is required to support the (3) Limit on aggregate amount of enhancements and other relevant recourse obligation plus the percentage recourse. The total outstanding amount factors, and the NRSRO specifies ranges of the mortgage-related security or of recourse retained by a qualified bank of rating categories to them, the bank participation certificate that is not with respect to transfers of small may apply the rating category applicable covered by the recourse obligation. The business loans and leases to small to the option that corresponds to the total amount of capital required for the businesses of personal property and bank’s position. In order to rely on a on-balance sheet asset and the recourse included in the risk-weighted assets of program rating, the bank must obligation, however, is limited to the the bank as described in section demonstrate to the FDIC’s satisfaction capital requirement for the underlying II.B.5(i)(2) of this appendix A may not that the credit risk rating assigned to the loans, calculated as if the bank exceed 15 percent of the bank’s total program meets the same standards continued to hold these loans as an on- risk-based capital, unless the FDIC generally used by NRSROs for rating balance sheet asset. specifies a greater amount by order. traded positions. The bank must also (3) Related on-balance sheet assets. If (4) Bank that ceases to be qualified or demonstrate to the FDIC’s satisfaction a recourse obligation or direct credit that exceeds aggregate limit. If a bank that the criteria underlying the NRSRO’s substitute also appears as a balance ceases to be a qualified bank or exceeds assignment of ratings for the program sheet asset, the asset is risk-weighted the aggregate limit in section II.B.5(i)(3) are satisfied for the particular position only under this section II.B.5 of this of this appendix A, the bank may issued by the bank. If a bank appendix A, except in the case of loan continue to apply the capital treatment participates in a securitization servicing assets and similar described in section II.B.5(i)(2) of this sponsored by another party, the FDIC arrangements with embedded recourse appendix A to transfers of small may authorize the bank to use this obligations or direct credit substitutes. business loans and leases to small approach based on a program rating In that case, the on-balance sheet businesses of personal property that obtained by the sponsor of the program. servicing assets and the related recourse occurred when the bank was qualified (3) Computer Program. A bank is obligations or direct credit substitutes and did not exceed the limit. using an acceptable credit assessment must both be separately risk weighted (5) Prompt correction action not computer program that has been and incorporated into the risk-based affected. (i) A bank shall compute its developed by an NRSRO to determine capital calculation. capital without regard to this section the rating of a direct credit substitute or (i) Alternative Capital Calculation for II.B.5(i) for purposes of prompt recourse obligation (but not a residual Small Business Obligations. corrective action (12 U.S.C. 1831o) interest) extended in connection with a (1) Definitions. For purposes of this unless the bank is a well capitalized structured finance program. In order to section II.B. 5(i): bank (without applying the capital rely on the rating determined by the (i) Qualified bank means a bank that: treatment described in this section
VerDate 11
II.B.5(i)) and, after applying the capital (b) This category includes: as interest-only strips that are not credit- treatment described in this section (1) Long-term claims on, and the enhancing and principal-only strips. II.B.5(i), the bank would be well portions of long-term claims that are (c) The following assets also are capitalized. guaranteed by, non-OECD banks, and all assigned a risk weight of 100 percent if (ii) A bank shall compute its capital claims on non-OECD central they have not already been deducted without regard to this section II.B.5(i) governments that entail some degree of from capital: investments in for purposes of 12 U.S.C. 1831o(g) transfer risk; 33 unconsolidated companies, joint regardless of the bank’s capital level. (2) All claims on foreign and domestic ventures, or associated companies; * * * * * private-sector obligors not included in instruments that qualify as capital the categories above in section II.C of issued by other banks; deferred tax C.*** this appendix A (including loans to assets; and mortgage servicing assets, Category 2–20 Percent Risk Weight. nondepository financial institutions and nonmortgage servicing assets, and bank holding companies); purchased credit card relationships. * * * * * (3) Claims on commercial firms Category 5—200 Percent Risk Weight. d. This category also includes owned by the public sector; This category includes: recourse obligations, direct credit (4) Customer liabilities to the bank on (a) Externally rated recourse substitutes, residual interests (other acceptances outstanding involving obligations, direct credit substitutes, than a credit-enhancing interest-only standard risk claims; 34 residual interests (other than a credit- strip) and asset- or mortgage-backed (5) Investments in fixed assets, enhancing interest-only strip), and securities rated in the highest or second premises, and other real estate owned; asset- and mortgage-backed securities highest investment grade category, e.g., (6) Common and preferred stock of that are rated one category below the AAA, AA, in the case of long-term corporations, including stock acquired lowest investment grade category, e.g., ratings, or the highest rating category, for debts previously contracted; BB, to the extent permitted in section e.g., A–1, P–1, in the case of short-term (7) Commercial and consumer loans II.B.5(d) of this appendix A; and ratings. (except those assigned to lower risk (b) A position (but not a residual Category 3—50 Percent Risk Weight. categories due to recognized guarantees interest) in a securitization or structured * * * * * or collateral and loans secured by finance program that is not rated by an b.***30 *** residential property that qualify for a NRSRO for which the bank determines lower risk weight); * * * * * that the credit risk is equivalent to one (8) Recourse obligations, direct credit category below investment grade, e.g., d. This category also includes substitutes, residual interests (other recourse obligations, direct credit BB, to the extent permitted in section than a credit-enhancing interest-only II.B.5.(g) of this appendix A. substitutes, residual interests (other strip) and asset-or mortgage-backed * * * * * than a credit-enhancing interest-only securities rated in the lowest investment strip) and asset- or mortgage-backed grade category, e.g., BBB, as well as D.*** securities rated in the third highest certain positions (but not residual investment grade category, e.g., A, in the The face amount of an off-balance interests) which the bank rates pursuant sheet item is generally incorporated into case of long-term ratings, or the second to section section II.B.5(g) of this highest rating category, e.g., A–2, P–2, the risk-weighted assets in two steps. appendix A.; The face amount is first multiplied by in the case of short-term ratings. (9) Industrial-development bonds and Category 4—100 Percent Risk Weight. a credit conversion factor, except as similar obligations issued under the otherwise specified in section II.B.5 of (a) All assets not included in the auspices of states or political categories above in section II.C of this this appendix A for direct credit subdivisions of the OECD-based group substitutes and recourse obligations. appendix A, except the assets of countries for the benefit of a private specifically included in the 200 percent The resultant credit equivalent amount party or enterprise where that party or is assigned to the appropriate risk category below in section II.C of this enterprise, not the government entity, is appendix A and assets that are category according to the obligor or, if obligated to pay the principal and relevant, the guarantor or the nature of otherwise risk weighted in accordance interest; 35 with section II.B.5 of this appendix A, the collateral. Table III to this (10) All obligations of states or appendix A sets forth the conversion are assigned to this category, which political subdivisions of countries that comprises standard risk assets. The bulk factors for various types of off-balance- do not belong to the OECD-based group; sheet items. of the assets typically found in a loan and 1. Items With a 100 Percent portfolio would be assigned to the 100 (11) Stripped mortgage-backed Conversion Factor. (a) Except as percent category. securities and similar instruments, such otherwise provided in section II.B.5. of this appendix A, the full amount of an 30 The types of loans that qualify as loans secured 33 Such assets include all non-local currency by multifamily residential properties are listed in claims on, and the portions of claims that are asset or transaction supported, in whole the instructions for preparation of the Consolidated guaranteed by, non-OECD central governments and or in part, by a direct credit substitute Reports of Condition and Income. In addition, from those portions of local currency claims on, or or a recourse obligation. Direct credit the standpoint of the selling bank, when a guaranteed by, non-OECD central governments that substitutes and recourse obligations are multifamily residential property loan is sold subject exceed the local currency liabilities held by the to a pro rata loss sharing arrangement which bank. defined in section II.B.5. of this provides for the purchaser of the loan to share in 34 Customer liabilities on acceptances outstanding appendix A. any loss incurred on the loan on a pro rata basis involving nonstandard risk claims, such as claims with the selling bank, that portion of the loan is not on U.S. depository institutions, are assigned to the 35 The sufficiency of collateral and guarantees for subject to the risk-based capital standards. In risk category appropriate to the identity of the off-balance-sheet items is determined by the market connection with sales of multifamily residential obligor or, if relevant, the nature of the collateral value of the collateral or the amount of the property loans in which the purchaser of the loan or guarantees backing the claims. Portions of guarantee in relation to the face amount of the item, shares in any loss incurred on the loan with the acceptances conveyed as risk participations to U.S. except for derivative contracts, for which this selling bank on other than a pro rata basis, the depository institutions or foreign banks are assigned determination is generally made in relation to the selling bank must treat these other loss sharing to the 20 percent risk category appropriate to short- credit equivalent amount. Collateral and guarantees arrangements in accordance with section II.B.5 of term claims guaranteed by U.S. depository are subject to the same provisions noted under this appendix A. institutions and foreign banks. section II.B. of this appendix A.
VerDate 11
(b) Sale and repurchase agreements, if customer against loss, then the expected to meet a minimum ratio of not already included on the balance securities transaction is excluded from qualifying total capital to risk-weighted sheet, and forward agreements. Forward the risk-based capital calculation. On assets of 8 percent, of which at least 4 agreements are legally binding the other hand, if a bank lends its own percentage points should be in the form contractual obligations to purchase securities or, acting as agent for a of core capital (Tier 1). Any bank that assets with drawdown which is certain customer, lends the customer’s does not meet the minimum risk-based at a specified future date. Such securities and indemnifies the customer capital ratio, or whose capital is obligations include forward purchases, against loss, the transaction is converted otherwise considered inadequate, 36 forward forward deposits placed, and at 100 percent and assigned to the risk generally will be expected to develop partly-paid shares and securities; they weight category appropriate to the and implement a capital plan for obligor or, if applicable, to the collateral do not include commitments to make achieving an adequate level of capital, delivered to the lending bank or the residential mortgage loans or forward consistent with the provisions of this foreign exchange contracts. independent custodian acting on the risk-based capital framework and (c) Securities lent by a bank are lending bank’s behalf. § 325.104, the specific circumstances treated in one of two ways, depending * * * * * upon whether the lender is exposed to affecting the individual bank, and the risk of loss. If a bank, as agent for a III. Minimum Risk-Based Capital Ratio requirements of any related agreements customer, lends the customer’s Subject to section II.B.5. of this between the bank and the FDIC. securities and does not indemnify the appendix A, banks generally will be
TABLE I.—DEFINITION OF QUALIFYING CAPITAL
Components Minimum requirements
(1) Core Capital (Tier 1) ...... Must equal or exceed 4% of weighted-risk assets. (a) Common stockholders’ equity ...... No limit.1 (b)Noncumulative perpetual preferred stock and any related sur- No limit.1 plus. (c) Minority interest in equity accounts of consolidated ...... No limit.1 (d) Less: All intangible assets other than certain mortgage serv- (2). icing assets, nonmortgage servicing assets and purchased credit card relationships. (e) Less: Certain credit-enhancing interest-only strips ...... (3). (f) Less: Certain deferred tax assets ...... (4). (2) Supplementary Capital (Tier 2) ...... Total of tier 2 is limited to 100% of tier 1.5 (a) Allowance for loan and lease losses ...... Limited to 1.25% of weighted-risk assets.5 (b) Unrealized gains on certain equity securities.6 Limited to 45% of pretax net unrealized gains.6. (c) Cumulative perpetual and long-term preferred stock (original No limit within tier 2; long-term preferred is amortized for capital pur- maturity of 20 years or more) and any related surplus. poses as it approaches maturity. (d) Auction rate and similar preferred stock (both cumulative and No limit within Tier 2. non-cumulative). (e) Hybrid capital instruments (including mandatory convertible No limit within Tier 2. debt securities). (f) Term subordinated debt and intermediate-term preferred stock Term subordinated debt and intermediate-term preferred stock are lim- (original weighted average maturity of five years or more). ited to 50% of Tier 1 5 and amortized for capital purposes as they approach maturity. (3) Deductions (from sum of tier 1 and tier 2): (a) Investments in banking and finance subsidiaries that are not consolidated for regulatory capital purposes. (b) Intentional, reciprocal cross-holdings of capital securities issued by banks. (c) Other deductions (such as investment in other subsidiaries or On a case-by-case basis or as a matter of policy after formal consider- joint ventures) as determined by supervisory authority. ation of relevant issues. (4) Total Capital ...... Must equal or exceed 8% or weighted-risk assets. 1 No express limits are placed on the amounts of nonvoting common, noncumulative perpetual preferred stock, and minority interests that may be recognized as part of Tier 1 capital. However, voting common stockholders’ equity capital generally will be expected to be the dominant form of Tier 1 capital and banks should avoid undue reliance on other Tier 1 capital elements. 2 The amounts of mortgage servicing assets, nonmortgage servicing assets and purchased credit card relationships that can be recognized for purposes of calculating Tier 1 capital are subject to the limitations set forth in § 325.5(f). All deductions are for capital purposes only; deductions would not affect accounting treatment. 3 The amounts of credit-enhancing interest-only strips that can be recognized for purposes of calculating Tier 1 capital are subject to the limita- tions set forth in § 325.5(f). 4 Deferred tax assets are subject to the capital limitations set forth in § 325.5(g). 5 Amounts in excess of limitations are permitted but do not qualify as capital. 6 Unrealized gains on equity securities are subject to the capital limitations set forth in paragraph I.A2.(f) of appendix A to part 325.
36 Forward forward deposits accepted are treated as interest rate contracts.
VerDate 11
* * * * * extent permitted in section II.B.5.(g) of A. Revising the definitions of direct Table II.—Summary of Risk Weights this appendix A. credit substitute and recourse; and Risk Categories. * * * * * B. Adding definitions of credit * * * * * Table III.—Credit Conversion Factors derivative, credit-enhancing interest- Category 2—20 Percent Risk Weight. for Off-Balance Sheet Items. only strips, credit-enhancing 100 Percent Conversion Factor. representations and warranties, face * * * * * (1) The full amount of assets amount, financial asset, financial (12) Recourse obligations, direct supported by direct credit substitutes standby letter of credit, nationally credit substitutes, residual interests and recourse obligations (unless a recognized statistical rating (other than credit-enhancing interest- different treatment is otherwise organization, performance-based only strips) and asset- or mortgage- specified). For risk participations in standby letter of credit, residual interest, backed securities rated in either of the such arrangements acquired by the risk participation, securitization, two highest investment grade categories, bank, the full amount of assets servicer cash advance, structured e.g., AAA or AA, in the case of long- supported by the main obligation financing program, and traded position; term ratings, or the highest rating multiplied by the acquiring bank’s and category, e.g., A–1, P–1, in the case of percentage share of the risk C. Removing the definition of high short-term ratings. participation. quality mortgage related securities to Category 3—50 Percent Risk Weight. (2) Acquisitions of risk participations read as follows: * * * * * in bankers acceptances. (3) Recourse obligations, direct credit (3) Sale and repurchase agreements, if § 567.1 Definitions. substitutes, residual interests (other not already included on the balance * * * * * than credit-enhancing interest-only sheet. Credit derivative. The term credit strips) and asset- or mortgage-backed * * * * * derivative means a contract that allows securities rated in the third-highest 7. In appendix B to part 325: one party (the protection purchaser) to investment grade category, e.g., A, in the A. Amend section I by changing transfer the credit risk of an asset or off- case of long-term ratings, or the second ‘‘CAMEL’’ to ‘‘CAMELS’’ in the first balance sheet credit exposure to another highest rating category, e.g., A–2, P–2, undesignated paragraph and in the party (the protection provider). The in the case of short-term ratings. second undesignated paragraph by value of a credit derivative is * * * * * removing ‘‘by December 31, 1992 (and dependent, at least in part, on the credit Category 4—100 Percent Risk Weight. at least 7.25 percent by December 31, performance of a ‘‘referenced asset.’’ Credit-enhancing interest-only strip. * * * * * 1990).’’ (1) The term credit-enhancing interest- (9) Recourse obligations, direct credit B. Amend section III by removing the second undesignated paragraph. only strip means an on-balance sheet substitutes, residual interests (other asset that, in form or in substance: than credit-enhancing interest-only C. In section IV. paragraph A: (i) Represents the contractual right to strips) and asset- or mortgage-backed i. Amend the first undesignated receive some or all of the interest due securities rated in the lowest investment paragraph by removing ‘‘in accordance on transferred assets; and grade category, e.g., BBB, as well as with Accounting Principles Board (ii) Exposes the savings association to certain positions (but not residual Opinion No. 16, as amended,’; credit risk directly or indirectly interests) which the bank rates pursuant ii. Remove the second undesignated associated with the transferred assets to section II.B.5(g) of this appendix A. paragraph; and iii. Amend the new second that exceeds its pro rata share of the (10) All other assets, including any undesignated paragraph by changing savings association’s claim on the assets intangible assets that are not deducted ‘‘§ 325(t)’’ to ‘‘§ 325.2(v).’’ whether through subordination from capital, and the credit equivalent provisions or other credit enhancement 4 By order of the Board of Directors. amounts of off-balance sheet items not techniques. assigned to a different risk category. Dated at Washington, DC, this 23rd day of October, 2001. (2) OTS reserves the right to identify Category 5—200 Percent Risk Weight. other cash flows or related interests as Federal Deposit Insurance Corporation. (1) Externally rated recourse a credit-enhancing interest-only strip. In obligations, direct credit substitutes, James D. LaPierre, determining whether a particular residual interests (other than credit- Deputy Executive Secretary. interest cash flow functions as a credit- enhancing interest-only strips), and DEPARTMENT OF THE TREASURY enhancing interest-only strip, OTS will asset- and mortgage-backed securities consider the economic substance of the Office of Thrift Supervision that are rated one category below the transaction. lowest investment grade category, e.g., 12 CFR Chapter V Credit-enhancing representations and BB, to the extent permitted in section Authority and Issuance warranties. (1) The term credit- II.B.5(d) of this appendix A; and enhancing representations and (2) A position (but not a residual For the reasons set out in the warranties means representations and interest) extended in connection with a preamble, part 567 of chapter V of title warranties that are made or assumed in securitization or structured financing 12 of the Code of Federal Regulations is connection with a transfer of assets program that is not rated by an NRSRO amended as follows: (including loan servicing assets) and for which the bank determines that the that obligate a savings association to credit risk is equivalent to one category PART 567—CAPITAL protect investors from losses arising below investment grade, e.g., BB, to the 1. The authority citation for part 567 from credit risk in the assets transferred continues to read as follows: or loans serviced. 4 In general, for each off-balance sheet item, a (2) Credit-enhancing representations conversion factor (see Table III) must be applied to Authority: 12 U.S.C. 1462, 1462a, 1463, and warranties include promises to determine the ‘‘credit equivalent amount’’ prior to 1464, 1467a, 1828 (note). assigning the off-balance sheet item to a risk weight protect a party from losses resulting category. 2. Section 567.1 is amended by: from the default or nonperformance of
VerDate 11
another party or from an insufficiency representations and warranties with or in substance, of any credit risk in the value of the collateral. respect to the loans serviced. Servicer directly or indirectly associated with an (3) Credit-enhancing representations cash advances as defined in this section asset it has sold (in accordance with and warranties do not include: are not direct credit substitutes; and generally accepted accounting (i) Early-default clauses and similar (7) Clean-up calls on third party principles) that exceeds a pro rata share warranties that permit the return of, or assets. However, clean-up calls that are of that savings association’s claim on premium refund clauses covering, 10 percent or less of the original pool the asset. If a savings association has no qualifying mortgage loans for a period balance and that are exercisable at the claim on a asset it has sold, then the not to exceed 120 days from the date of option of the savings association are not retention of any credit risk is recourse. transfer. These warranties may cover direct credit substitutes. A recourse obligation typically arises only those loans that were originated * * * * * when a savings association transfers within one year of the date of the Face amount. The term face amount assets in a sale and retains an explicit transfer; means the notational principal, or face obligation to repurchase assets or to (ii) Premium refund clauses covering value, amount of an off-balance sheet absorb losses due to a default on the assets guaranteed, in whole or in part, item or the amortized cost of an on- payment of principal or interest or any by the United States government, a balance sheet asset. other deficiency in the performance of United States government agency, or a Financial asset. The term financial the underlying obligor or some other United States government-sponsored asset means cash or other monetary party. Recourse may also exist enterprise, provided the premium instrument, evidence of debt, evidence implicitly if a savings association refund clause is for a period not to of an ownership interest in an entity, or provides credit enhancement beyond exceed 120 days from the date of a contract that conveys a right to receive any contractual obligation to support transfer; or or exchange cash or another financial assets it has sold. Recourse obligations (iii) Warranties that permit the return instrument from another party. include: of assets in instances of fraud, Financial standby letter of credit. The (1) Credit-enhancing representations misrepresentation or incomplete term financial standby letter of credit and warranties made on transferred documentation. means a letter of credit or similar assets; * * * * * arrangement that represents an (2) Loan servicing assets retained Direct credit substitute. The term irrevocable obligation to a third-party pursuant to an agreement under which direct credit substitute means an beneficiary: the savings association will be arrangement in which a savings (1) To repay money borrowed by, or responsible for losses associated with association assumes, in form or in advanced to, or for the account of, a the loans serviced. Servicer cash substance, credit risk associated with an second party (the account party); or advances as defined in this section are on-or off-balance sheet asset or exposure (2) To make payment on behalf of the not recourse obligations; that was not previously owned by the account party, in the event that the (3) Retained subordinated interests savings association (third-party asset) account party fails to fulfill its that absorb more than their pro rata and the risk assumed by the savings obligation to the beneficiary. share of losses from the underlying association exceeds the pro rata share of * * * * * assets; the savings association’s interest in the Nationally recognized statistical (4) Assets sold under an agreement to third-party asset. If a savings association rating organization (NRSRO). The term repurchase, if the assets are not already has no claim on the third-party asset, nationally recognized statistical rating included on the balance sheet; then the savings association’s organization means an entity recognized (5) Loan strips sold without assumption of any credit risk is a direct by the Division of Market Regulation of contractual recourse where the maturity credit substitute. Direct credit the Securities and Exchange of the transferred portion of the loan is substitutes include: Commission (Commission) as a shorter than the maturity of the (1) Financial standby letters of credit nationally recognized statistical rating commitment under which the loan is that support financial claims on a third organization for various purposes, drawn; party that exceed a savings association’s including the Commission’s uniform net (6) Credit derivatives issued that pro rata share in the financial claim; capital requirements for brokers and absorb more than the savings (2) Guarantees, surety arrangements, dealers. association’s pro rata share of losses credit derivatives, and similar * * * * * from the transferred assets; and instruments backing financial claims Performance-based standby letter of (7) Clean-up calls on assets the that exceed a savings association’s pro credit. The term performance-based savings association has sold. However, rata share in the financial claim; standby letter of credit means any letter clean-up calls that are 10 percent or less (3) Purchased subordinated interests of credit, or similar arrangement, of the original pool balance and that are that absorb more than their pro rata however named or described, which exercisable at the option of the savings share of losses from the underlying represents an irrevocable obligation to association are not recourse assets; the beneficiary on the part of the issuer arrangements. (4) Credit derivative contracts under to make payment on account of any * * * * * which the savings association assumes default by a third party in the Residual interest. (1) The term more than its pro rata share of credit performance of a nonfinancial or residual interest means any on-balance risk on a third-party asset or exposure; commercial obligation. Such letters of sheet asset that: (5) Loans or lines of credit that credit include arrangements backing (i) Represents an interest (including a provide credit enhancement for the subcontractors’ and suppliers’ beneficial interest) created by a transfer financial obligations of a third party; performance, labor and materials that qualifies as a sale (in accordance (6) Purchased loan servicing assets if contracts, and construction bids. with generally accepted accounting the servicer is responsible for credit * * * * * principles) of financial assets, whether losses or if the servicer makes or Recourse. The term recourse means a through a securitization or otherwise; assumes credit-enhancing savings association’s retention, in form and
VerDate 11
(ii) Exposes a savings association to interests and asset-or mortgage-backed § 567.6 Risk-based capital credit risk- credit risk directly or indirectly securities issued by multiple weight categories. associated with the transferred asset that participants are purchased by a special (a) Risk-weighted assets. Risk- exceeds a pro rata share of that savings purpose entity that repackages those weighted assets equal risk-weighted on- association’s claim on the asset, whether exposures into securities that can be balance sheet assets (computed under through subordination provisions or sold to investors. Structured financing paragraph (a)(1) of this section), plus other credit enhancement techniques. programs allocate credit risk, generally, risk-weighted off-balance sheet (2) Residual interests generally between the participants and credit activities (computed under paragraph include credit-enhancing interest-only enhancement provided to the program. (a)(2) of this section), plus risk-weighted strips, spread accounts, cash collateral * * * * * recourse obligations, direct credit accounts, retained subordinated Traded position. The term traded substitutes, and certain other positions interests (and other forms of position means a position retained, (computed under paragraph (b) of this overcollateralization), and similar assets assumed, or issued in connection with section). Assets not included (i.e., that function as a credit enhancement. a securitization that is rated by a deducted from capital) for purposes of (3) Residual interests further include NRSRO, where there is a reasonable calculating capital under § 567.5 are not those exposures that, in substance, expectation that, in the near future, the included in calculating risk-weighted cause the savings association to retain rating will be relied upon by: assets. the credit risk of an asset or exposure (1) Unaffiliated investors to purchase (1) On-balance sheet assets. Except as that had qualified as a residual interest the security; or provided in paragraph (b) of this before it was sold. (2) An unaffiliated third party to enter section, risk-weighted on-balance sheet (4) Residual interests generally do not into a transaction involving the assets are computed by multiplying the include assets purchased from a third position, such as a purchase, loan, or on-balance sheet asset amounts times party. However, a credit-enhancing repurchase agreement. the appropriate risk-weight categories. interest-only strip that is acquired in * * * * * The risk-weight categories are: any asset transfer is a residual interest. 3. Section 567.2 is amended by * * * * * * * * * * (ii) * * * revising paragraph (a)(1)(i) to read as (R) Claims on, or guaranteed by Risk participation. The term risk follows: participation means a participation in depository institutions other than the which the originating party remains § 567.2 Minimum regulatory capital central bank, incorporated in a non- liable to the beneficiary for the full requirement. OECD country, with a remaining amount of an obligation (e.g., a direct (a) * * * maturity of one year or less; credit substitute), notwithstanding that (1) Risk-based capital requirement. (i) * * * * * another party has acquired a A savings association’s minimum risk- (iii) * * * participation in that obligation. based capital requirement shall be an (C) Privately-issued mortgage-backed * * * * * amount equal to 8% of its risk-weighted securities (i.e., those that do not carry Securitization. The term assets as measured under § 567.6 of this the guarantee of a government or securitization means the pooling and part. government sponsored entity) repackaging by a special purpose entity * * * * * representing an interest in qualifying mortgage loans or qualifying of assets or other credit exposures that 4. Amend § 567.5 by adding a new multifamily mortgage loans. If the can be sold to investors. Securitization paragraph (a)(2)(iii) to read as follows: includes transactions that create security is backed by qualifying stratified credit risk positions whose § 567.5 Components of capital. multifamily mortgage loans, the savings performance is dependent upon an (a) * * * association must receive timely underlying pool of credit exposures, (2) * * * payments of principal and interest in including loans and commitments. (iii) Credit-enhancing interest-only accordance with the terms of the Servicer cash advance. The term strips that are not includable in core security. Payments will generally be servicer cash advance means funds that capital under § 567.12 of this part are considered timely if they are not 30 a residential mortgage servicer advances deducted from assets and capital in days past due; to ensure an uninterrupted flow of computing core capital. * * * * * payments, including advances made to * * * * * (iv) * * * (J) Debt securities not otherwise cover foreclosure costs or other 5. Section 567.6 is amended by: described in this section; expenses to facilitate the timely A. Revising paragraph (a) introductory collection of the loan. A servicer cash text; * * * * * advance is not a recourse obligation or B. Revising paragraph (a)(1) (M) Interest-only strips receivable, a direct credit substitute if: introductory text and paragraphs other than credit-enhancing interest- (1) The servicer is entitled to full (a)(1)(ii)(R), (a)(1)(iii)(C), (a)(1)(iv)(J), only strips; reimbursement and this right is not and (a)(1)(iv)(M); * * * * * subordinated to other claims on the cash C. Removing and reserving paragraphs (2) Off-balance sheet items. Except as flows from the underlying asset pool; or (a)(1)(ii)(H) and (a)(1)(iv)(N); provided in paragraph (b) of this (2) For any one loan, the servicer’s D. Revising paragraph (a)(2) section, risk-weighted off-balance sheet obligation to make nonreimbursable introductory text; items are determined by the following advances is contractually limited to an E. Removing and reserving paragraphs two-step process. First, the face amount insignificant amount of the outstanding (a)(2)(i)(A) and (C); of the off-balance sheet item must be principal amount on that loan. F. Revising paragraph (a)(2)(i)(B); multiplied by the appropriate credit * * * * * G. Revising paragraph (a)(2)(ii)(A); conversion factor listed in this Structured financing program. The H. Removing paragraph (a)(3); and paragraph (a)(2). This calculation term structured financing program I. Adding paragraph (b) to read as translates the face amount of an off- means a program where receivable follows: balance sheet exposure into an on-
VerDate 11
balance sheet credit-equivalent amount. requirement for the assets transferred. TABLE B Second, the credit-equivalent amount Transactions that, in substance, result in must be assigned to the appropriate risk- the retention of credit risk associated Short term rating category Risk weight weight category using the criteria with a transferred credit-enhancing (In percent) regarding obligors, guarantors, and interest-only strip are treated as if the Highest investment grade ...... 20 collateral listed in paragraph (a)(1) of strip was retained by the savings Second highest investment this section, provided that the maximum association and was not transferred. grade ...... 50 risk weight assigned to the credit- (ii) Other residual interests. A saving Lowest investment grade ...... 100 equivalent amount of an interest-rate or association must maintain risk-based exchange-rate contract is 50 percent. capital for a residual interest (excluding (ii) Eligibility. (A) Traded positions. A The following are the credit conversion a credit-enhancing interest-only strip) position is eligible for the treatment factors and the off-balance sheet items equal to the face amount of the residual described in paragraph (b)(3)(i) of this to which they apply. interest (net of any existing associated section, if: (i) * * * deferred tax liability), even if the (1) The position is a recourse (B) Risk participations purchased in amount of risk-based capital that must obligation, direct credit substitute, bankers’ acceptances; be maintained exceeds the full risk- residual interest, or asset- or mortgage- * * * * * based capital requirement for the assets backed security and is not a credit- (ii) * * * transferred. Transactions that, in enhancing interest-only strip; (A) Transaction-related contingencies, substance, result in the retention of (2) The position is a traded position; including, among other things, credit risk associated with a transferred and performance bonds and performance- residual interest are treated as if the (3) The NRSRO has rated a long term based standby letters of credit related to residual interest was retained by the position as one grade below investment a particular transaction; savings association and was not grade or better or a short term position * * * * * transferred. as investment grade. If two or more (b) Recourse obligations, direct credit (iii) Residual interests and other NRSROs assign ratings to a traded substitutes, and certain other positions. recourse obligations. Where a savings position, the savings association must (1) In general. Except as otherwise association holds a residual interest use the lowest rating to determine the permitted in this paragraph (b), to (including a credit-enhancing interest- appropriate risk-weight category under determine the risk-weighted asset only strip) and another recourse paragraph (b)(3)(i) of this section. amount for a recourse obligation or a obligation in connection with the same (B) Non-traded positions. A position direct credit substitute (but not a transfer of assets, the savings association that is not traded is eligible for the residual interest): must maintain risk-based capital equal treatment described in paragraph (i) Multiply the full amount of the to the greater of: (b)(3)(i) of this section if: credit-enhanced assets for which the (1) The position is a recourse savings association directly or indirectly (A) The risk-based capital obligation, direct credit substitute, retains or assumes credit risk by a 100 requirement for the residual interest as residual interest, or asset- or mortgage- percent conversion factor. (For a direct calculated under paragraph (b)(2)(i) backed security extended in connection credit substitute that is an on-balance through (ii) of this section; or with a securitization and is not a credit- sheet asset (e.g., a purchased (B) The full risk-based capital enhancing interest-only strip; subordinated security), a savings requirement for the assets transferred, (2) More than one NRSRO rate the association must use the amount of the subject to the low-level recourse rules position; direct credit substitute and the full under paragraph (b)(7) of this section. (3) All of the NRSROs that provide a amount of the asset its supports, i.e., all (3) Ratings-based approach—(i) rating rate a long term position as one the more senior positions in the Calculation. A savings association may grade below investment grade or better structure); and calculate the risk-weighted asset amount or a short term position as investment (ii) Assign this credit equivalent for an eligible position described in grade. If the NRSROs assign different amount to the risk-weight category paragraph (b)(3)(ii) of this section by ratings to the position, the savings appropriate to the obligor in the multiplying the face amount of the association must use the lowest rating to underlying transaction, after position by the appropriate risk weight determine the appropriate risk-weight considering any associated guarantees determined in accordance with Table A category under paragraph (b)(3)(i) of this or collateral. Paragraph (a)(1) of this or B of this section. section; section lists the risk-weight categories. (4) The NRSROs base their ratings on Note: Stripped mortgage-backed securities (2) Residual interests. Except as or other similar instruments, such as interest- the same criteria that they use to rate otherwise permitted under this only and principal-only strips, that are not securities that are traded positions; and paragraph (b), a savings association credit enhancing must be assigned to the (5) The ratings are publicly available. must maintain risk-based capital for 100% risk-weight category. (C) Unrated senior positions. If a residual interests as follows: recourse obligation, direct credit (i) Credit-enhancing interest-only substitute, residual interest, or asset- or TABLE A strips. After applying the concentration mortgage-backed security is not rated by limit under § 567.12(e)(2) of this part, a Risk weight an NRSRO, but is senior or preferred in saving association must maintain risk- Long term rating category (In percent) all features to a traded position based capital for a credit-enhancing (including collateralization and interest-only strip equal to the Highest or second highest in- maturity), the savings association may remaining amount of the strip (net of vestment grade ...... 20 risk-weight the face amount of the any existing associated deferred tax Third highest investment grade 50 senior position under paragraph (b)(3)(i) liability), even if the amount of risk- Lowest investment grade ...... 100 of this section, based on the rating of the One category below investment based capital that must be maintained grade ...... 200 traded position, subject to supervisory exceeds the full risk-based capital guidance. The savings association must
VerDate 11
satisfy OTS that this treatment is (4) Identify gradations of risk among structured financing program and the appropriate. This paragraph (b)(3)(i)(C) ‘‘pass’’ assets and other risk positions; savings association uses an acceptable applies only if the traded position (5) Use clear, explicit criteria to credit assessment computer program to provides substantive credit support to classify assets into each internal rating determine the rating of the position. An the unrated position until the unrated grade, including subjective factors; NRSRO must have developed the position matures. (6) Employ independent credit risk computer program and the savings (4) Certain positions that are not rated management or loan review personnel association must demonstrate to OTS’s by NRSROs. (i) Calculation. A savings to assign or review the credit risk satisfaction that the ratings under the association may calculate the risk- ratings; program correspond credibly and weighted asset amount for eligible (7) Include an internal audit reliably with the rating of traded position described in paragraph (b)(4)(ii) procedure to periodically verify that positions. of this section based on the savings internal risk ratings are assigned in (5) Alternative capital computation association’s determination of the credit accordance with the savings for small business obligations—(i) rating of the position. To risk-weight the association’s established criteria; Definitions. For the purposes of this asset, the savings association must (8) Monitor the performance of the paragraph (b)(5): multiply the face amount of the position assigned internal credit risk ratings over (A) Qualified savings association by the appropriate risk weight time to determine the appropriateness of means a savings association that: determined in accordance with Table C the initial credit risk rating assignment, (1) Is well capitalized as defined in of this section. and adjust individual credit risk ratings § 565.4 of this chapter without applying or the overall internal credit risk rating the capital treatment described in this TABLE C system, as needed; and paragraph (b)(5); or (9) Make credit risk rating (2) Is adequately capitalized as assumptions that are consistent with, or defined in § 565.4 of this chapter Rating category Risk weight (In percent) more conservative than, the credit risk without applying the capital treatment rating assumptions and methodologies described in this paragraph (b)(5) and Investment grade ...... 100 of NRSROs. has received written permission from One category below investment grade ...... 200 (B) Program ratings. (1) A recourse the OTS to apply that capital treatment. obligation or direct credit substitute, but (B) Small business means a business (ii) Eligibility. A position extended in not a residual interest, is eligible for the that meets the criteria for a small connection with a securitization is treatment described in paragraph business concern established by the eligible for the treatment described in (b)(4)(i) of this section, if the position is Small Business Administration in 13 paragraph (b)(4)(i) of this section if it is retained or assumed in connection with CFR 121 pursuant to 15 U.S.C. 632. not rated by an NRSRO, is not a residual a structured finance program and an (ii) Capital requirement. interest, and meets the one of the three NRSRO has reviewed the terms of the Notwithstanding any other provision of alternative standards described in program and stated a rating for positions this paragraph (b), with respect to a paragraph (b)(4)(ii)(A), (B), or (C) below associated with the program. If the transfer of a small business loan or lease of this section: program has options for different of personal property with recourse that (A) Position rated internally. A direct combinations of assets, standards, is a sale under generally accepted credit substitute, but not a purchased internal or external credit enhancements accounting principles, a qualified credit-enhancing interest-only strip, is and other relevant factors, and the savings association may elect to include eligible for the treatment described NRSRO specifies ranges of rating only the amount of its recourse in its under paragraph (b)(4)(i) of this section, categories to them, the savings risk-weighted assets. To qualify for this if the position is assumed in connection association may apply the rating election, the savings association must with an asset-backed commercial paper category applicable to the option that establish and maintain a reserve under program sponsored by the savings corresponds to the savings association’s generally accepted accounting association. Before it may rely on an position. principles sufficient to meet the internal credit risk rating system, the (2) To rely on a program rating, the reasonable estimated liability of the saving association must demonstrate to savings association must demonstrate to savings association under the recourse OTS’s satisfaction that the system is OTS’s satisfaction that that the credit obligation. adequate. Adequate internal credit risk risk rating assigned to the program (iii) Aggregate amount of recourse. rating systems typically: meets the same standards generally used The total outstanding amount of (1) Are an integral part of the savings by NRSROs for rating traded positions. recourse retained by a qualified savings association’s risk management system The savings association must also association with respect to transfers of that explicitly incorporates the full demonstrate to OTS’s satisfaction that small business loans and leases of range of risks arising from the savings the criteria underlying the assignments personal property and included in the association’s participation in for the program are satisfied by the risk-weighted assets of the savings securitization activities; particular position. association as described in paragraph (2) Link internal credit ratings to (3) If a savings association participates (b)(5)(ii) of this section, may not exceed measurable outcomes, such as the in a securitization sponsored by another 15 percent of the association’s total probability that the position will party, OTS may authorize the savings capital computed under § 567.5(c). experience any loss, the expected loss association to use this approach based (iv) Savings association that ceases to on the position in the event of default, on a program rating obtained by the be a qualified savings association or and the degree of variance in losses in sponsor of the program. that exceeds aggregate limits. If a the event of default on that position; (C) Computer program. A recourse savings association ceases to be a (3) Separately consider the risk obligation or direct credit substitute, but qualified savings association or exceeds associated with the underlying loans or not a residual interest, is eligible for the the aggregate limit described in borrowers, and the risk associated with treatment described in paragraph paragraph (b)(5)(iii) of this section, the the structure of the particular (b)(4)(i) of this section, if the position is savings association may continue to securitization transaction; extended in connection with a apply the capital treatment described in
VerDate 11
paragraph (b)(5)(ii) of this section to syndication where each savings direct credit substitutes under this transfers of small business loans and association or other participant is section, and incorporate these amounts leases of personal property that obligated only for its pro rata share of into the risk-based capital calculation. occurred when the association was a the risk and there is no recourse to the (8) Obligations of subsidiaries. If a qualified savings association and did originating party, the savings savings association retains a recourse not exceed the limit. association must calculate the credit obligation or assumes a direct credit (v) Prompt corrective action not equivalent amount by multiplying only substitute on the obligation of a affected. (A) A savings association shall its pro rata share of the assets supported subsidiary that is not an includable compute its capital without regard to by the direct credit substitute by a 100 subsidiary, and the recourse obligation this paragraph (b)(5) of this section for percent conversion factor. The savings or direct credit substitute is an equity or purposes of prompt corrective action (12 association must assign the resulting debt investment in that subsidiary U.S.C. 1831o), unless the savings credit equivalent amount to the risk- under generally accepted accounting association is adequately or well weight category appropriate to the principles, the face amount of the capitalized without applying the capital obligor in the underlying transaction recourse obligation or direct credit treatment described in this paragraph after considering any associated substitute is deducted for capital under (b)(5) and would be well capitalized guarantees or collateral. §§ 567.5(a)(2) and 567.9(c). All other after applying that capital treatment. (7) Limitations on risk-based capital recourse obligations and direct credit (B) A savings association shall requirements—(i) Low-level exposure substitutes retained or assumed by a compute its capital requirement without rule. If the maximum contractual savings association on the obligations of regard to this paragraph (b)(5) for the exposure to loss retained or assumed by an entity in which the savings purposes of applying 12 U.S.C. a savings association is less than the association has an equity investment are 1381o(g), regardless of the association’s effective risk-based capital requirement, risk-weighted in accordance with this capital level. as determined in accordance with this paragraph (b). (6) Risk participations and paragraph (b), for the assets supported 6. Amend § 567.9 by revising syndications of direct credit substitutes. by the savings association’s position, the paragraph (c)(1) to read as follows: A savings association must calculate the risk-based capital requirement is limited risk-weighted asset amount for a risk to the savings association’s contractual § 567.9 Tangible capital. participation in, or syndication of, a exposure less any recourse liability * * * * * direct credit substitute as follows: account established in accordance with (c) * * * (i) If a savings association conveys a generally accepted accounting (1) Intangible assets (as defined in risk participation in a direct credit principles. This limitation does not § 567.1), servicing assets, and credit- substitute, the savings association must apply when a savings association enhancing interest-only strips not convert the full amount of the assets provides credit enhancement beyond includable in tangible capital under that are supported by the direct credit any contractual obligation to support § 567.12. substitute to a credit equivalent amount assets it has sold. using a 100 percent conversion factor. (ii) Mortgage-related securities or * * * * * The savings association must assign the participation certificates retained in a 7. Section 567.11 is amended by pro rata share of the credit equivalent mortgage loan swap. If a savings redesignating paragraph (c) as paragraph amount that was conveyed through the association holds a mortgage-related (c)(1) and adding new paragraphs (c)(2) risk participation to the lower of: The security or a participation certificate as and (3) to read as follows: risk-weight category appropriate to the a result of a mortgage loan swap with § 567.11 Reservation of authority. obligor in the underlying transaction, recourse, it must hold risk-based capital after considering any associated to support the recourse obligation and * * * * * guarantees or collateral; or the risk- that percentage of the mortgage-related (c) * * * weight category appropriate to the party security or participation certificate that (2) Notwithstanding § 567.6 of this acquiring the participation. The savings is not covered by the recourse part, OTS will look to the substance of association must assign the pro rata obligation. The total amount of risk- a transaction and may find that the share of the credit equivalent amount based capital required for the security assigned risk weight for any asset, or that was not participated out to the risk- (or certificate) and the recourse credit equivalent amount or credit weight category appropriate to the obligation is limited to the risk-based conversion factor for any off-balance obligor, after considering any associated capital requirement for the underlying sheet item does not appropriately reflect guarantees or collateral. loans, calculated as if the savings the risks imposed on the savings (ii) If a savings association acquires a association continued to hold these association. OTS may require the risk participation in a direct credit loans as an on-balance sheet asset. savings association to apply another substitute, the savings association must (iii) Related on-balance sheet assets. If risk-weight, credit equivalent amount, multiply its pro rata share of the direct an asset is included in the calculation or credit conversion factor that OTS credit substitute by the full amount of of the risk-based capital requirement deems appropriate. the assets that are supported by the under this paragraph (b) and also (3) If this part does not specifically direct credit substitute, and convert this appears as an asset on the savings assign a risk weight, credit equivalent amount to a credit equivalent amount association’s balance sheet, the savings amount, or credit conversion factor, using a 100 percent conversion factor. association must risk-weight the asset OTS may assign any risk weight, credit The savings association must assign the only under this paragraph (b), except in equivalent amount, or credit conversion resulting credit equivalent amount to the case of loan servicing assets and factor that it deems appropriate. In the risk-weight category appropriate to similar arrangements with embedded making this determination, OTS will the obligor in the underlying recourse obligations or direct credit consider the risks associated with the transaction, after considering any substitutes. In that case, the savings asset or off-balance sheet item as well as associated guarantees or collateral. association must separately risk-weight other relevant factors. (iii) If the savings association holds a the on-balance sheet servicing asset and 8. Section 567.12 is amended by: direct credit substitute in the form of a the related recourse obligations and A. Revising the section heading;
VerDate 11
B. Revising paragraph (a); may be included in core capital is core capital. Purchased and retained C. Adding a new paragraph (b)(4), and limited to the lesser of: credit-enhancing interest-only strips, on D. Revising paragraph (e) to read as (A) 100 percent of the amount of core a non-tax adjusted basis, are included in follows: capital; or the total amount that is used for (B) The amount of servicing assets purposes of determining whether a § 567.12 Intangible assets, servicing and purchased credit card relationships savings association exceeds the core assets, and credit-enhancing interest-only determined in accordance with capital limit. strips. paragraph (d) of this section. (3) Computation. (i) For purposes of (a) Scope. This section prescribes the (ii) In addition to the aggregate computing the limits and sublimit in maximum amount of intangible assets, limitation in paragraph (e)(1)(i) of this this paragraph (e), core capital is servicing assets, and credit-enhancing section, a sublimit applies to purchased computed before the deduction of interest-only strips that savings credit card relationships and non disallowed servicing assets, disallowed associations may include in calculating mortgage-related serving assets. The credit card relationships, and tangible and core capital. maximum allowable amount of these disallowed credit-enhancing interest- (b) * * * two types of assets combined is limited to the lesser of: only strips. (4) Credit-enhancing interest-only (A) 25 percent the amount of core strips may be included (that is not (ii) A savings association may elect to capital; and deducted) in computing core capital deduct disallowed servicing assets and (B) The amount of purchased credit credit-enhancing interest-only strips on subject to the restrictions of this section, card relationships and non mortgage- and may be included in tangible capital a basis that is net of any associated related servicing assets determined in deferred tax liability. in the same amount. accordance with paragraph (d) of this * * * * * section. Dated: October 25, 2001. (e) Core capital limitations. (1) (2) Credit-enhancing interest-only Ellen Seidman, Servicing assets and purchased credit strips. The maximum aggregate amount Director, Office of Thrift Supervision. card relationships. (i) The maximum of credit-enhancing interest-only strips [FR Doc. 01–29179 Filed 11–28–01; 8:45 am] aggregate amount of servicing assets and that may be included in core capital is BILLING CODES 4810–33–P, 6210–01–P, 6714–01–P purchased credit card relationships that limited to 25 percent of the amount of 6720–01–P
VerDate 11
Part III
The President Executive Order 13236—Waiver of Dual Compensation Provisions of the Central Intelligence Agency Retirement Act of 1964
VerDate 11
Federal Register Presidential Documents Vol. 66, No. 230
Thursday, November 29, 2001
Title 3— Executive Order 13236 of November 27, 2001
The President Waiver of Dual Compensation Provisions of the Central Intel- ligence Agency Retirement Act of 1964
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 292 of the Central Intelligence Agency Retirement Act of 1964, as amended (50 U.S.C. 2141), and in order to conform the Central Intelligence Agency Retirement and Disability System to the Civil Service Retirement and Disability System, it is hereby ordered as follows: Section 1. The Director of Central Intelligence may waive the application of the dual compensation reduction provisions of sections 271 and 273 of the Central Intelligence Agency Retirement Act (50 U.S.C. 2111 and 2113) for an employee serving on a temporary basis, but only if, and for so long as, the authority is necessary due to an emergency involving a direct threat to life or property or other unusual circumstances. Employees who receive both salary and annuity pursuant to this authority may not earn additional retirement benefits during this period of employment. This authority may be delegated as appropriate. Sec. 2. Nothing contained in this order is intended to create, nor does it create, any right, benefit, or privilege, substantive or procedural, enforceable at law by a party against the United States, its agencies, officers, employees, or any other person. W THE WHITE HOUSE, November 27, 2001.
[FR Doc. 01–29831 Filed 11–28–01; 8:45 am] Billing code 3195–01–P
VerDate 11
Reader Aids Federal Register Vol. 66, No. 230 Thursday, November 29, 2001
CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING NOVEMBER
Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202–523–5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since the revision date of each title. Laws 523–5227 3 CFR Notice of November Presidential Documents 9, 2001)...... 56965 Proclamations: Notice of November Executive orders and proclamations 523–5227 7208 (See Proc. 10, 1999 (See The United States Government Manual 523–5227 7502) ...... 57837 Notice of November 7273 (See 7505)...... 59353 9, 2001)...... 56965 Other Services 7463 (See Military Notice of November Electronic and on-line services (voice) 523–3447 Order of November 12, 2000 (See Privacy Act Compilation 523–3187 13, 2001)...... 57833 Notice of November Public Laws Update Service (numbers, dates, etc.) 523–6641 7463 (See EO 9, 2001)...... 56965 TTY for the deaf-and-hard-of-hearing 523–5229 13235) ...... 58343 Notice of November 9, 7491...... 55555 2001 ...... 56965 7492...... 56031 ELECTRONIC RESEARCH Notice of November 9, 7493...... 56425 2001 ...... 56966 World Wide Web 7494...... 57627 Memorandums: Full text of the daily Federal Register, CFR and other publications 7495...... 57631 Memorandums of is located at: http://www.access.gpo.gov/nara 7496...... 57633 November 9, 2001 ...... 57357 Federal Register information and research tools, including Public 7497...... 57635 Memorandums of Inspection List, indexes, and links to GPO Access are located at: 7498...... 57637 November 9, 2001 ...... 57359 http://www.nara.gov/fedreg 7499...... 57639 Military Orders: E-mail 7500...... 57641 Military Order of FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is 7501...... 57643 November 13, an open e-mail service that provides subscribers with a digital 7502...... 57837 2001 ...... 57833 form of the Federal Register Table of Contents. The digital form 7503...... 58049 5 CFR of the Federal Register Table of Contents includes HTML and 7504...... 58347 PDF links to the full text of each document. 7505...... 59353 591...... 56738, 56751 To join or leave, go to http://listserv.access.gpo.gov and select 7506...... 59529 630...... 55557, 56033 Online mailing list archives, FEDREGTOC-L, Join or leave the list Executive Orders: 1201...... 57841 (or change settings); then follow the instructions. 12170 (See Notice of 2634...... 55871 PENS (Public Law Electronic Notification Service) is an e-mail November 9, 6901...... 59135 service for notification of recently enacted Public Laws. To 2001) ...... 56966 Proposed Rules: subscribe, send e-mail to [email protected] 12667 (Revoked by 591...... 56741 13233) ...... 56025 with the text message: 7 CFR subscribe PUBLAWS-L your name 12938 (See Notice of Use [email protected] only to subscribe or unsubscribe. November 9, 80...... 58349 FEDREGTOC-L and PENS are mailing lists only. We cannot 2001) ...... 56965 272...... 59357 respond to specific inquiries. 12958 (See Military 273...... 59357 Reference questions. Send questions and comments about the Order of November 274...... 59357 Federal Register system to: [email protected] 13, 2001)...... 57833 277...... 59357 The Federal Register staff cannot interpret specific documents or 13067 (see Notice of 300...... 56427 regulations. October 31, 2001)...... 55869 301...... 55067, 56428 13233...... 56025 319...... 55530 FEDERAL REGISTER PAGES AND DATE, NOVEMBER 13234...... 57355 510...... 57841 13235...... 58343 905...... 56595 55067–55554...... 1 13236...... 59671 923...... 58350 55555–55870...... 2 Administrative Orders: 930 ...... 56597, 58356, 58359 55871–56030...... 5 Notices: 966...... 56599 56031–56194...... 6 Notice of October 31, 984...... 58362 56195–56424...... 7 2001 ...... 55869 993...... 56602 56425–56594...... 8 Notice of November 1205...... 58051 56595–56752...... 9 14, 1995 (See 1210...... 56386 56753–56966...... 13 Notice of November 3404...... 57842 56967–57354...... 14 9, 2001)...... 56965 3601...... 57843 57355–57644...... 15 Notice of November 3701...... 57844 57645–57836...... 16 12, 1996 (See Proposed Rules: 57837–58048...... 19 Notice of November 3...... 56247 58049–58348...... 20 9, 2001)...... 56965 301...... 59175 58349–58654...... 21 Notice of November 1000...... 59540 58655–58912...... 23 13, 1997 (See 1001...... 59540 58913–59134...... 26 Notice of November 1005...... 59540 59135–59352...... 27 9, 2001)...... 56965 1006...... 59540 59353–59528...... 28 Notice of November 1007...... 59540 59529–59672...... 29 12, 1998 (See 1030...... 59540
VerDate 11-MAY-2000 19:02 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00001 Fmt 4712 Sfmt 4712 E:\FR\FM\29NOCU.LOC pfrm07 PsN: 29NOCU ii Federal Register / Vol. 66, No. 230 / Thursday, November 29, 2001 / Reader Aids
1032...... 59540 14 CFR 141...... 57688 845...... 58644 1033...... 59540 11...... 56989 142...... 57688 913...... 58371 1124...... 57889, 59540 926...... 58375 21...... 56989 20 CFR 1126...... 59540 25 ...... 56195, 56197, 56989, Proposed Rules: 1131...... 59540 57648, 57650 404...... 58010 250...... 56620 1135...... 59540 39 ...... 55072, 55075, 55559, 416...... 58010 913...... 59201 1210...... 56391 56199, 56202, 56753, 56755, 625...... 56960 914...... 57655 1717...... 55130 56989, 57361, 57364, 57653, Proposed Rules: 918...... 55609 217...... 59542 924...... 55611 8 CFR 57850, 57852, 57855, 57857, 57859, 58007, 58366, 58663, 404...... 57009, 59306 934...... 57660 3...... 56767 58913, 58915, 58918, 58922, 935...... 56263 21 CFR 241...... 56967 58924, 58927, 58929, 58931, 938...... 57662 58933, 59357 Ch. I ...... 56034 9 CFR 31 CFR 71 ...... 56607, 56902, 59136 207...... 59138 93...... 55068, 56033 95...... 56204 510...... 56035 Ch. V...... 57371 94...... 55872 97 ...... 55563, 55564, 57861, 520...... 58934 337...... 56431 Proposed Rules: 57863, 59358, 59359 522...... 56035 356...... 56759 319...... 55601 121 ...... 57865, 58650, 58912, 558...... 57873, 58935 539...... 57371 59611 607...... 59138 10 CFR 125...... 58912 807...... 59138 32 CFR 2...... 55732 135...... 58912 868...... 57366 3...... 57381 19...... 55732 145...... 58912 892...... 57368 505...... 55876 20...... 55732 330...... 55554 1306...... 56607 706...... 56383 21...... 55732 1207...... 59136 Proposed Rules: 23 CFR 30...... 55732 Proposed Rules: 3...... 58422 40...... 55732 39 ...... 55138, 55894, 55896, 1...... 58665 51...... 55732 55898, 56248, 56493, 56783, Proposed Rules: 33 CFR 60...... 55732 57007, 57891, 57896, 57900, 420...... 59188 84...... 55086 61...... 55732 57904, 57905, 57908, 58075, 1331...... 56261 100 ...... 56035, 57873, 57875 63...... 55732 58077, 58678, 58680, 58682, 117 ...... 56207, 56991, 57384, 24 CFR 70...... 55732 58684, 58687, 58689, 58691, 58062, 59534 72 ...... 55559, 55732, 56982, 58983, 59178, 59180, 59183, 201...... 56410 151...... 55566, 58381 58056, 59531 59185, 59374, 59375, 59377, 202...... 56410 155...... 55566 73...... 55732 59378, 59382, 59384, 59387, 888...... 59052 157...... 55566 75...... 55732 59390 158...... 55566 25 CFR 430...... 57845 71 ...... 56250, 56251, 56257, 160...... 57877 431...... 56604 56258, 56259, 58080, 58081, 151...... 56608 165 ...... 55575, 56035, 56208, 440...... 58364 58082 513...... 58056 56210, 56212, 56214, 56216, 960...... 57298 121...... 55506 Proposed Rules: 57385, 58064 963...... 57298 125...... 55506 580...... 56619 169...... 58066 Proposed Rules: 129...... 55506 183...... 55086 50...... 57001, 59540 26 CFR Proposed Rules: 72...... 57002, 59541 15 CFR 1...... 58061 175...... 56627 73...... 55603 305...... 57867 Proposed Rules: 170...... 55604 922...... 58370 1 ...... 56262, 57021, 57023, 36 CFR 1707...... 57003 Proposed Rules: 57400 73...... 57878 Ch. VII...... 56260 31...... 57023 242...... 55092, 56610 11 CFR Proposed Rules: 16 CFR 27 CFR 38 CFR 106...... 56247 305...... 59050 4...... 58938 3...... 56613, 56614 19...... 58938 Proposed Rules: 17 CFR 12 CFR 24...... 58938 4...... 55614 3...... 59614 41...... 55078 40...... 56757 8...... 57645, 58786 204...... 56383 45...... 56757 39 CFR 32...... 55071 240...... 55818 70...... 56757 111 ...... 56432, 56435, 56993, 201...... 57848 242...... 55818 194...... 58938 58944 208...... 59614 Proposed Rules: 250...... 58938 501...... 55096 211...... 58655 1...... 55608 251...... 58938 960...... 55577 225...... 59614 41 ...... 55608, 56902, 58007 295...... 56757 226...... 57849 190...... 55608 Proposed Rules: 40 CFR 265...... 58655 240...... 55608 55...... 57404 52 ...... 55097, 55099, 55102, 325...... 59614 242...... 55608, 56902 55105, 55880, 56218, 56220, 28 CFR 567...... 59614 270 ...... 57602, 57614, 58412 56222, 56223, 56447, 56449, 722...... 58656 Proposed Rules: 56454, 56465, 56904, 56931, 18 CFR 742...... 58656 104...... 55901 56944, 57160, 57196, 57219, Proposed Rules: 11...... 59361 801...... 58083 57223, 57230, 57247, 57252, 208...... 59176 Proposed Rules: 57261, 57387, 57389, 57391, 29 CFR 225...... 59176 37...... 55559 57395, 57666, 57882, 58070, 559...... 55131 161...... 55559 4022...... 57369 58667 560...... 55131, 59050 250...... 55559 4044...... 57369 60...... 57824 584...... 56488 284...... 55559 Proposed Rules: 63 ...... 55577, 55844, 57668, 1710...... 56619 358...... 55559 1953...... 56043 58393, 58396 70 ...... 55112, 55883, 56996, 13 CFR 19 CFR 30 CFR 58400, 58952, 59161, 59535 120...... 56985 101...... 56430 723...... 58644 71...... 55883
VerDate 11-MAY-2000 19:02 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00002 Fmt 4712 Sfmt 4712 E:\FR\FM\29NOCU.LOC pfrm07 PsN: 29NOCU Federal Register / Vol. 66, No. 230 / Thursday, November 29, 2001 / Reader Aids iii
80...... 55885 403...... 56629, 59392 204...... 57342 203...... 55157 81...... 56476 412...... 58556 206...... 57342 1827...... 57028 82...... 57512 501...... 56629, 59392 Proposed Rules: 1835...... 57028 92...... 58953, 59602 745...... 56629, 59392 67...... 56785, 56788 1852...... 57028 148...... 58258 763...... 56629, 59392 180 ...... 55585, 56225, 56233, 1048...... 55617 45 CFR 49 CFR 57671, 58400 1051...... 55617 Ch. V...... 56383 261...... 58258 1065...... 55617 46...... 56775 1...... 55598 268...... 58258 1068...... 55617 1355...... 58872 1201...... 56245 271 ...... 55115, 57679, 58258 1356...... 58872 Proposed Rules: 272...... 58964 41 CFR 1357...... 58872 171...... 59220 300 ...... 55890, 56484, 57685, Ch. 302 ...... 58194 Proposed Rules: 173...... 59220 57686, 59363 61–250...... 56761 1639...... 58986 174...... 59220 302...... 58258 101–3...... 55593 2553...... 56793 175...... 59220 Proposed Rules: 102–84...... 55593 176...... 59220 3...... 56629, 59392 300–2...... 58194 46 CFR 177...... 59220 50...... 57268 300–3...... 58194 25...... 55086 178...... 59220 51...... 56629, 59392 300–70...... 58194 172...... 55566 571...... 55623, 59543 52 ...... 55143, 55144, 56496, 221...... 55595 575...... 56048 57407, 57408, 57692, 57693, 42 CFR 47 CFR 57911, 57914, 59205 130...... 58667 50 CFR 60 ...... 56629, 57829, 59392 405...... 55246 73 ...... 55596, 55597, 55598, 63 ...... 56629, 57696, 57917, 410...... 55246, 58788 55892, 55893, 56038, 56486, 17...... 59367, 59537 58425, 58427, 58610, 59392 411...... 55246, 58686 56616, 56617, 57883, 58408, 20...... 56780 70 ...... 55144, 56629, 59392 414...... 55246 58409, 58410, 58973 100...... 55092, 56610 80...... 55905 415...... 55246 90...... 57884 300 ...... 56038, 58073, 59171 82...... 55145 416...... 56762 Proposed Rules: 600...... 55599, 57885 89...... 55617, 58085 419...... 55850, 55857 1...... 58697 622...... 57396, 58410 90...... 55617 482...... 56762 2 ...... 56048, 57408, 59209 635...... 57397 91...... 55617 485...... 56762 15...... 56793, 59209 648 ...... 55599, 56039, 56040, 94...... 55617 Proposed Rules: 18...... 59209 56041, 56781, 57398, 58073, 122...... 58556 100...... 55908 20...... 55618 58074 123...... 56629, 59392 447...... 58694 68...... 58703 660 ...... 55599, 57687, 59173 136...... 58693 73 ...... 56507, 56629, 56630, 679...... 55123, 55128 142...... 56629, 59392 43 CFR 56794, 58428, 58429 Proposed Rules: 145...... 56629, 59392 3160...... 56616 90...... 59209 17 ...... 56265, 56508, 57526, 147...... 56496, 56503 3600...... 58892 57560, 58706, 59544 48 CFR 162...... 56629, 59392 3610...... 58892 20...... 56266, 58707 194...... 59207, 59208 3620...... 58892 Chapter 2...... 55121 21...... 56266 233...... 56629, 59392 3800...... 58892 204...... 55121 216...... 55909 257...... 56629, 59392 207...... 55121 222...... 57930 258...... 56629, 59392 44 CFR 212...... 55121 223...... 57930 261...... 57918 2...... 57342 213...... 55123, 56902 229...... 59394 264...... 58085 9...... 57342 252...... 55121 600...... 59546, 59547 271 ...... 56629, 57697, 59392 10...... 57342 253...... 55121 622...... 55910, 59221 272...... 58985 59...... 59166 Proposed Rules: 635...... 57409 281...... 56629, 59392 64...... 59166 32...... 57294 648 ...... 56052, 58097, 59404 300 ...... 55907, 56507, 59393 65...... 56769, 56773 52...... 57294 679...... 59225, 59228
VerDate 11-MAY-2000 19:02 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00003 Fmt 4712 Sfmt 4712 E:\FR\FM\29NOCU.LOC pfrm07 PsN: 29NOCU iv Federal Register / Vol. 66, No. 230 / Thursday, November 29, 2001 / Reader Aids
REMINDERS published 11-7-01 [FR 01- ENVIRONMENTAL National oil and hazardous The items in this list were 27887] PROTECTION AGENCY substances contingency editorially compiled as an aid COMMERCE DEPARTMENT Air pollutants, hazardous; plan— to Federal Register users. National Oceanic and national emission standards: National priorities list Inclusion or exclusion from Atmospheric Administration Pesticide active ingredient update; comments due this list has no legal Fishery conservation and production; comments due by 12-5-01; published significance. management: by 12-6-01; published 11- 11-5-01 [FR 01-27463] 21-01 [FR 01-29068] Alaska; fisheries of ENVIRONMENTAL RULES GOING INTO Exclusive Economic ENVIRONMENTAL PROTECTION AGENCY PROTECTION AGENCY EFFECT NOVEMBER 29, Zone— Superfund program: Air pollution control: 2001 Salmon; comments due National oil and hazardous by 12-4-01; published State operating permits substances contingency programs— plan— ENERGY DEPARTMENT 10-5-01 [FR 01-25038] Pennsylvania; comments National priorities list Whistleblower protection: Northeastern United States due by 12-3-01; update; comments due Security requirements for fisheries— published 11-1-01 [FR by 12-5-01; published protected disclosures Summer flounder, scup, 01-27281] 11-5-01 [FR 01-27464] under National Defense and black sea bass; Authorization Act; comments due by 12-5- ENVIRONMENTAL FEDERAL published 10-30-01 01; published 11-20-01 PROTECTION AGENCY COMMUNICATIONS COMMISSION ENVIRONMENTAL [FR 01-28920] Air pollution control: PROTECTION AGENCY COMMERCE DEPARTMENT State operating permits Radio stations; table of Agency information collection National Oceanic and programs— assignments: activities: Atmospheric Administration Pennsylvania; comments Arkansas; comments due by Submission for OMB review; Fishery conservation and due by 12-3-01; 12-3-01; published 10-26- comment request; management: published 11-1-01 [FR 01 [FR 01-26987] 01-27282] published 11-29-01 West Coast States and Michigan; comments due by Air quality implementation Western Pacific Air programs: 12-3-01; published 10-26- plans; approval and fisheries— Stratospheric ozone 01 [FR 01-26986] promulgation; various Pacific Coast groundfish; protection— Oklahoma and Texas; States: comments due by 12-3- Essential use allowances comments due by 12-3- Maryland; published 10-30- 01; published 11-16-01 allocation (2002 CY), 01; published 10-24-01 01 [FR 01-28744] and essential laboratory [FR 01-26749] and analytical uses; de Television broadcasting: Pennsylvania; published 10- COMMERCE DEPARTMENT 30-01 minimis exemption Cable television systems— National Oceanic and extension through 2005 FEDERAL DEPOSIT Atmospheric Administration Multichannel video and INSURANCE CORPORATION CY; comments due by cable television service; Marine mammals: Federal Deposit Insurance Act: 12-3-01; published 11-1- video programming Incidental taking— 01 [FR 01-27383] Business of receiving distribution; competition deposits other than trust Kodiak Launch Complex, ENVIRONMENTAL and diversity funds; published 10-30-01 AK; rocket launches; PROTECTION AGENCY development; comments Steller sea lions; Air quality implementation due by 12-3-01; comments due by 12-5- COMMENTS DUE NEXT plans; approval and published 10-31-01 [FR 01; published 11-5-01 01-27225] WEEK promulgation; various [FR 01-27734] States: Televison broadcasting: COMMODITY FUTURES District of Columbia; AGRICULTURE Cross-ownership of TRADING COMMISSION comments due by 12-3- DEPARTMENT broadcast stations and 01; published 11-1-01 [FR Animal and Plant Health Securities: newspapers; comments 01-27376] Inspection Service Accounts holding security due by 12-3-01; published 10-5-01 [FR 01-24950] Exportation and importation of futures products; ENVIRONMENTAL animals and animal applicability of customer PROTECTION AGENCY FEDERAL ELECTION products: protection, recordkeeping, Air quality implementation COMMISSION Horses from contagious reporting, and bankruptcy plans; approval and Internet and Federal elections; equine meritis (CEM)- rules, etc.; comments due promulgation; various campaign-related activity on affected countries— by 12-5-01; published 11- States: web sites of individuals, 2-01 [FR 01-27523] Rhode Island; stallions District of Columbia; corporations, and labor and mares; receipt ENVIRONMENTAL comments due by 12-3- organizations; comments authorization; comments PROTECTION AGENCY 01; published 11-1-01 [FR due by 12-3-01; published due by 12-3-01; Air pollutants, hazardous; 01-27377] 10-3-01 [FR 01-24643] published 11-1-01 [FR national emission standards: Oregon; comments due by HEALTH AND HUMAN 01-27459] Friction materials 12-3-01; published 11-1- SERVICES DEPARTMENT AGRICULTURE manufacturing facilities; 01 [FR 01-27280] Food and Drug DEPARTMENT comments due by 12-3- ENVIRONMENTAL Administration Rural Utilities Service 01; published 10-4-01 [FR PROTECTION AGENCY Medical devices: 01-24887] Electric loans: Air quality implementations Orthopedic devices— plans; approval and Mergers and consolidations ENVIRONMENTAL Hip joint metal/polymer promulgation: of borrowers; comments PROTECTION AGENCY constrained cemented due by 12-3-01; published Air pollutants, hazardous; Oregon; comments due by or uncemented 11-1-01 [FR 01-27480] national emission standards: 12-3-01; published 11-1- prosthesis; AGRICULTURE Pesticide active ingredient 01 [FR 01-27279] reclassification; DEPARTMENT production; comments due ENVIRONMENTAL comments due by 12-5- Federal claims collection; by 12-6-01; published 11- PROTECTION AGENCY 01; published 9-6-01 comments due by 12-7-01; 21-01 [FR 01-29067] Superfund program: [FR 01-22286]
VerDate 11-MAY-2000 19:02 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00004 Fmt 4712 Sfmt 4711 E:\FR\FM\29NOCU.LOC pfrm07 PsN: 29NOCU Federal Register / Vol. 66, No. 230 / Thursday, November 29, 2001 / Reader Aids v
HEALTH AND HUMAN Mandated EDGAR filing for Special conditions— session of Congress which SERVICES DEPARTMENT foreign issuers; comments Gulfstream Aerospace have become Federal laws. It Energy Employees due by 12-3-01; published Model G-1159B may be used in conjunction Occupational Illness 10-4-01 [FR 01-24806] airplanes; comments with ‘‘PLUS’’ (Public Laws Compensation Program Act; Securities: due by 12-7-01; Update Service) on 202–523– implementation: Accounts holding security published 11-7-01 [FR 6641. This list is also Probable cause futures products; 01-27987] available online at http:// www.nara.gov/fedreg/ determination guidelines; applicability of customer TRANSPORTATION plawcurr.html. comments due by 12-4- protection, recordkeeping, DEPARTMENT 01; published 10-5-01 [FR reporting, and bankruptcy National Highway Traffic 01-24878] The text of laws is not rules, etc.; comments due Safety Administration INTERIOR DEPARTMENT by 12-5-01; published 11- published in the Federal Motor vehicle safety Fish and Wildlife Service 2-01 [FR 01-27523] Register but may be ordered standards: in ‘‘slip law’’ (individual Endangered and threatened TRANSPORTATION Roof crush resistance; pamphlet) form from the species: DEPARTMENT comments due by 12-6- Superintendent of Documents, Critical habitat Coast Guard 01; published 10-22-01 U.S. Government Printing designations— Ports and waterways safety: [FR 01-26560] Office, Washington, DC 20402 Sacramento Mountains Mystic River, CT; safety TREASURY DEPARTMENT (phone, 202–512–1808). The checkerspot butterfly; text will also be made comments due by 12-5- zone; comments due by Customs Service 12-7-01; published 11-7- available on the Internet from 01; published 9-26-01 United States-Caribbean Basin 01 [FR 01-28006] GPO Access at http:// [FR 01-24037] Trade Partnership Act: www.access.gpo.gov/nara/ TRANSPORTATION Showy stickseed; comments Brassieres; preferential nara005.html. Some laws may DEPARTMENT due by 12-7-01; published treatment; comments due not yet be available. 11-7-01 [FR 01-27892] Federal Aviation by 12-3-01; published 10- INTERIOR DEPARTMENT Administration 4-01 [FR 01-24991] S. 1447/P.L. 107–71 Surface Mining Reclamation Airworthiness directives: TREASURY DEPARTMENT and Enforcement Office British Aerospace; Aviation and Transportation Foreign Assets Control Security Act (Nov. 19, 2001; Permanent program and comments due by 12-6- Office abandoned mine land 01; published 10-5-01 [FR 115 Stat. 597) Federal Republic of reclamation plan 01-25048] Yugoslavia (Serbia and Last List November 20, 2001 submissions: CFM International; Montenegro); Kosovo and Louisiana; comments due by comments due by 12-4- Milosevic sanctions 12-3-01; published 11-2- 01; published 10-5-01 [FR regulations; comments due 01 [FR 01-27544] 01-25078] by 12-3-01; published 10-3- Public Laws Electronic Mississippi; comments due Eagle Aircraft Pty. Ltd.; 01 [FR 01-24685] Notification Service by 12-3-01; published 11- comments due by 12-3- TREASURY DEPARTMENT (PENS) 2-01 [FR 01-27543] 01; published 11-5-01 [FR Ohio; comments due by 12- 01-27654] Thrift Supervision Office 7-01; published 11-7-01 Fokker; comments due by Lending and investment: PENS is a free electronic mail [FR 01-27982] 12-5-01; published 11-5- Savings associations; notification service of newly JUSTICE DEPARTMENT 01 [FR 01-27666] greater flexibility in enacted public laws. To Federal Bureau of changing marketplace; General Electric Co.; subscribe, go to http:// Investigation; correction; comments due comments due by 12-4- hydra.gsa.gov/archives/ Communications Assistance by 12-3-01; published 11- 01; published 10-5-01 [FR publaws-l.html or send E-mail for Law Enforcement Act; 26-01 [FR C1-27329] 01-25054] to [email protected] implementation: Pilatus Aircraft Ltd.; VETERANS AFFAIRS with the following text ‘‘Replaced’’ and comments due by 12-4- DEPARTMENT message: ‘‘significantly upgraded or 01; published 10-10-01 Medical benefits: otherwise undergoes [FR 01-25398] Extended care services; SUBSCRIBE PUBLAWS-L major modification;’’ Pratt & Whitney; comments copayments; comments Your Name. definitions, etc.; comments due by 12-3-01; published due by 12-4-01; published due by 12-4-01; published 10-5-01 [FR 01-25055] 10-4-01 [FR 01-24762] Note: This service is strictly 10-5-01 [FR 01-24942] for E-mail notification of new SECURITIES AND TRANSPORTATION laws. The text of laws is not EXCHANGE COMMISSION DEPARTMENT LIST OF PUBLIC LAWS available through this service. Electronic Data Gathering, Federal Aviation PENS cannot respond to Analysis, and Retreival Administration This is a continuing list of specific inquiries sent to this System (EDGAR): Airworthiness standards: public bills from the current address.
VerDate 11-MAY-2000 19:02 Nov 28, 2001 Jkt 197001 PO 00000 Frm 00005 Fmt 4712 Sfmt 4711 E:\FR\FM\29NOCU.LOC pfrm07 PsN: 29NOCU