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(c) Assessments. The Board of the Textile Fiber Products Identification manufactured olefin textile fiber with a Governors will assess the Federal Act (‘‘Textile Rules’’) to establish a new cross-linked polymer network structure. Reserve Banks for any amount that the generic fiber subclass name and Dow stated that CEF meets the broad Board pays to the FDIC due to any definition as an alternative to the definition of olefin fiber in the Textile excess loss in accordance with section generic name ‘‘olefin’’ for a specifically Rules, 16 CFR 303.7(m). According to 10B(b) of the Federal Reserve Act (12 proposed subclass of olefin fibers Dow, however, CEF differs from U.S.C. 347b(b)). Each Federal Reserve manufactured by the Dow Chemical commercially available olefin fibers Bank shall be assessed that portion of Company (‘‘Dow’’), of Midland, because of its elasticity and wide the amount that the Board of Governors Michigan. Dow suggested the name temperature tolerance, which make it a pays to the FDIC that is attributable to ‘‘lastol’’ for the fiber, which it described good choice for easy-care stretch apparel an extension of credit by that Federal as an elastic, cross-linked olefin fiber applications. Reserve Bank, up to 1 percent of its capable of retaining its shape at high As a result of CEF’s fiber structure, capital as reported at the beginning of temperatures and referred to as ‘‘CEF.’’ Dow maintained that CEF has the the calendar year in which the DATES: Comments will be accepted following distinctive properties: (1) assessment is made. The Board of through August 12, 2002. Stretch and recovery power that is far Governors will assess all of the Federal ADDRESSES: Comments should be superior to that of any olefin fiber; (2) Reserve Banks for the remainder of the submitted to: Office of the Secretary, shape retention at temperatures in amount it pays to the FDIC in the ratio Federal Trade Commission, Room 159, excess of 170°C, which enables CEF to that the capital of each Federal Reserve 600 Pennsylvania Ave., NW., survive rigorous manufacturing and Bank bears to the total capital of all Washington DC 20580. Comments consumer care processes; and (3) Federal Reserve Banks at the beginning should be identified as ‘‘16 CFR Part chemical resistance to solvents that of the calendar year in which the 303—Textile Rule 8 Dow Comment— typically dissolve conventional olefins. assessment is made, provided, however, P948404.’’ Dow asserted that olefin, widely that if any assessment exceeds 50 FOR FURTHER INFORMATION CONTACT: recognized as a dependable carpet fiber percent of the total capital and surplus Neil Blickman, Attorney, Division of that has no stretch or elastic recovery of all Federal Reserve Banks, whether to and poor high temperature stability, is distribute the excess over such 50 Enforcement, Bureau of Consumer Protection, Federal Trade Commission, an inappropriate categorization for the percent shall be made at the discretion elastic olefin fiber, CEF, which is of the Board of Governors. Washington, DC 20580; (202) 326–3038. SUPPLEMENTARY INFORMATION: targeted for apparel applications. § 201.51 Interest rates applicable to credit According to Dow, CEF will offer extended by a Federal Reserve Bank. I. Background consumers a wider choice in garments (a) Primary credit. The rates for Rule 6 of the Textile Rules (16 CFR containing stretch fabric. Dow contends, primary credit provided to depository 303.6) requires manufacturers to use the in essence, that it would be confusing to institutions under § 201.4(a) are: [The generic names of the fibers contained in consumers if CEF is called simply chart will appear in the final rule.] their textile products in making fiber ‘‘olefin.’’ (b) Secondary credit. An interest rate content disclosures on labels, as Dow, therefore, petitioned the 50 basis points above the rate for required by the Textile Fiber Products Commission to establish the generic primary credit in § 201.51 will apply to Identification Act (‘‘Textile Act’’), 15 name ‘‘lastol’’ as an alternative to, and secondary credit extended to depository U.S.C. 70b(b)(1). Rule 7 of the Textile a subclass of, ‘‘olefin.’’ In addition, Dow institutions under § 201.4(c). Rules (16 CFR 303.7) sets forth the proposed that the Commission add the (c) Seasonal credit. The rate for generic names and definitions that the following sentence to the current seasonal credit extended to depository Commission has established for definition of olefin in Rule 7(m) to institutions under § 201.4(b) is a flexible synthetic fibers. Rule 8 (16 CFR 303.8) define CEF and similar fibers as a rate that takes into account rates on describes the procedures for subclass of olefin: market sources of funds. establishing new generic names. Where the fiber is a manufactured cross- By order of the Board of Governors of the Dow applied to the Commission on linked elastic fiber in which a) the fiber- Federal Reserve System, May 16, 2002. October 18, 2001, for a new olefin fiber forming substance is a synthetic polymer, subclass name and definition, and Jennifer J. Johnson, with low but significant crystallinity, supplemented its application with composed of at least 99 percent by weight of Secretary of the Board. additional information and test data on ethylene and at least one other olefin unit, [FR Doc. 02–12781 Filed 5–23–02; 8:45 am] December 12, 2001, January 16, 2002, and b) the fiber exhibits substantial elasticity BILLING CODE 6210–01–P and March 19, 2002.1 Dow stated that its and heat resistance properties not present in new cross-linked elastic fiber, CEF, is a traditional olefin fibers, the term lastol may be used as a generic description of the fiber. FEDERAL TRADE COMMISSION 1 Dow’s petition and supplements thereto are on The effect of Dow’s proposed the rulemaking record of this proceeding. This 16 CFR Part 303 material, as well as any comments filed in this amendment would be to allow use of proceeding, will be available for public inspection the name ‘‘lastol’’ as an alternative to Rules and Regulations Under the in accordance with the Freedom of Information Act, the generic name ‘‘olefin’’ for the 5 U.S.C. 552, and the Commission’s Rules of subcategory of olefin fibers meeting the Textile Fiber Products Identification Practice, 16 CFR 4.11, at the Consumer Response Act Center, Public Reference Section, Room 130, further criteria contained in the Federal Trade Commission, 600 Pennsylvania sentence added by the proposed AGENCY: Federal Trade Commission. Avenue, N.W., Washington, D.C. Any comments amendment. ACTION: Notice of proposed rulemaking. that are filed will be found under the Rules and Regulations Under the Textile Fiber Products After an initial analysis with the SUMMARY: The Federal Trade Identification Act, 16 CFR Part 303, Matter No. assistance of a textile expert, the P948404, ‘‘Dow Generic Fiber Petition Commission has determined that Dow’s Commission (‘‘Commission’’) solicits Rulemaking.’’ The comments and petition also may comments on whether to amend Rule be viewed on the Commission’s website at proposed new fiber technically falls 7(m) of the Rules and Regulations Under www.ftc.gov. within Rule 7(m)’s definition of

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‘‘olefin.’’ 2 The Commission has further to establish a generic fiber subclass of distinctive features resulting from determined that Dow’s application for a ‘‘polyester,’’ 67 FR 7104 (Feb. 15, 2002), physical characteristics of the fiber and new subclass name and definition the Commission further articulated that its method of manufacture, which meets merits further consideration. a new generic fiber subclass may be the above standard for allowing Accordingly, the Commission has appropriate in cases where the proposed designation by the subclass name issued Dow the designation ‘‘DCC 0001’’ subclass fiber: (1) Has the same general ‘‘lastol.’’ Alternatively, CEF may fit for temporary use in identifying CEF chemical composition as an established within the current definition of olefin in fiber pending a final determination on generic fiber category; (2) has distinctive Rule 7(m), with or without need for the merits of the application for a new properties of importance to the general clarification. This notice of proposed generic fiber subclass name and public as a result of a new method of rulemaking, therefore, suggests three definition. A final determination will be manufacture or substantially approaches to resolve the situation, and based on whether the record in this differentiated physical characteristics, requests comment from the public on proceeding indicates that Dow meets the such as fiber structure; and (3) the the relative merits of each: Commission’s criteria for issuing new distinctive feature(s) make the fiber 1. Amend Rule 7(m) to broaden its fiber subclass names and definitions, as suitable for uses for which other fibers definition for olefin to better describe described in Part II, below. under the established generic name the allegedly unique molecular structure would not be suited, or would be and physical characteristics of CEF and II. Invitation to Comment significantly less well suited.4 any similar fibers (without creating a The Commission is soliciting Within the established 24 generic new subclass for CEF); comment on Dow’s application names for manufactured fibers, there are 2. Amend Rule 7(m)’s definition for generally, and on whether the three cases where such generic name olefin by creating a separate subclass application meets the Commission’s alternatives may be used: (1) Pursuant to name and definition for CEF and other criteria for granting applications for new Rule 7(d), 16 CFR 303.7(d), within the similar qualifying fibers within the generic fiber subclass names. generic category ‘‘rayon,’’ the term olefin category; or The Commission first articulated ‘‘lyocell’’ may be used as an alternative 3. Deny Dow’s application because standards for establishing a new generic generic description for a specifically CEF fiber fits within Rule 7(m)’s fiber ‘‘subclass’’ in the proceeding to defined subcategory of rayon fiber; (2) definition of olefin without need for any allow use of the name ‘‘lyocell’’ as an pursuant to Rule 7(e), 16 CFR 303.7(e), change. alternative generic description for a within the generic category ‘‘acetate,’’ In today’s notice of proposed specifically defined subcategory of the term ‘‘triacetate’’ may be used as an rulemaking, the Commission is ‘‘rayon’’ fiber, pursuant to 16 CFR alternative generic description for a soliciting comments on all aspects of the 303.7(d).3 specifically defined subcategory of appropriateness of Dow’s proposed In its recent notice of proposed acetate fiber; and (3) pursuant to Rule amendment to Rule 7(m)’s definition of rulemaking regarding DuPont’s proposal 7(j), 16 CFR 303.7(j), within the generic olefin. Although the Commission category ‘‘rubber,’’ the term ‘‘lastrile’’ initially has determined that Dow’s new 2 Rule 7(m) defines ‘‘olefin’’ as ‘‘[a] manufactured may be used as an alternative generic fiber technically falls within the existing fiber in which the fiber-forming substance is any long chain synthetic polymer composed of at least description for a specifically defined Rule 7(m), 16 CFR 303.7(m), definition 85 percent by weight of ethylene, propylene, or subcategory of rubber fiber.5 of ‘‘olefin,’’ the Commission believes it other olefin units, except amorphous Dow’s application may describe a is in the public interest to solicit (noncrystalline) polyolefins qualifying under subclass of generic olefin fibers with comments on whether it should amend paragraph (j)(1) of this section.’’ 16 CFR 303.7(m). Rule 7(j)(1) defines ‘‘rubber,’’ in part, as ‘‘[a] Rule 7(m) by creating a subclass to manufactured fiber in which the fiber-forming 4 The criteria for establishing a new generic recognize CEF’s characteristics, or substance is comprised of natural or synthetic subcategory are different from the criteria to otherwise address the petition. Before rubber, including the following categories: (1) [a] establish a new generic category. The Commission’s manufactured fiber in which the fiber-forming criteria for granting applications for new generic deciding whether to amend Rule 7, the substance is a hydrocarbon such as natural rubber, names are as follows: (1) The fiber for which a Commission will consider any polyisoprene, polybutadiene, copolymers of dienes generic name is requested must have a chemical comments submitted to the Secretary of composition radically different from other fibers, and hydrocarbons, or amorphous (noncrystalline) the Commission within the above- polyolefins. 16 CFR 303.7(j)(1). In its petition, Dow and that distinctive chemical composition must stated that CEF is not a rubber because CEF fibers result in distinctive physical properties of mentioned comment period. significance to the general public; (2) the fiber must have a low but significant level of crystallinity, be in active commercial use or such use must be III. Dow’s Petition whereas rubber fibers are not crystalline. In immediately foreseen; and (3) the granting of the addition, CEF exhibits much higher tensile set generic name must be of importance to the Dow’s petition and supplemental (lower elastic recovery) than rubber when extended consuming public at large, rather than to a small filings described in detail the CEF fiber. to greater than 100% elongation. group of knowledgeable professionals such as The following subsections are excerpted 3 There, the Commission noted that: where purchasing officers for large Government agencies. substantially verbatim. appropriate, in considering applications for new The Commission believes it is in the public interest generic names for fibers that are of the same general to prevent the proliferation of generic names, and A. CEF’s Chemistry, Structure, and chemical composition as those for which a generic will adhere to a stringent application of these name already has been established, rather than of criteria in consideration of any future applications Manufacturing Process a chemical composition that is radically different, for generic names, and in a systematic review of any According to Dow, CEF is the first but that have distinctive properties of importance generic names previously granted that no longer manufactured olefin fiber founded on to the general public as a result of a new method meet these criteria. The Commission announced of manufacture or their substantially differentiated these criteria on Dec. 11, 1973, 38 FR 34112, and metallocene-based polyolefin elastomer physical characteristics, such as their fiber later clarified and reaffirmed them on Dec. 6, 1995, chemistry. Dow’s CEF fiber is structure, the Commission may allow such fiber to 60 FR 62353, on May 23, 1997, 62 FR 28343, on manufactured using a melt spinning be designated in required information disclosures Jan. 6, 1998, 63 FR 447 and 63 FR 449, on Nov. 17, by either its generic name or, alternatively, by its 2000, 65 FR 69486, and on Feb. 15, 2002, 67 FR process. After spinning, the fiber is ‘‘subclass’’ name. The Commission will consider 7104. crosslinked in order to prevent this disposition when the distinctive feature or 5 In a fourth case under consideration, DuPont dissolution and impart high- features of the subclass fiber make it suitable for has proposed that pursuant to Rule 7(c), 16 CFR temperature dimensional stability. After uses for which other fibers under the established 303.7(c), within the generic category ‘‘polyester,’’ the crosslinking process, the polymer generic name would not be suited, or would be the term ‘‘elasterell-p’’ be used as an alternative significantly less well suited. generic description for a specifically defined chains in the fiber are linked to one 60 FR 62352, 62353 (Dec. 6, 1995). subcategory of polyester fiber. another via covalent bonds.

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The interpolymer 6 in CEF has been B. CEF’s Distinctive Properties as a mechanical integrity above its made from ethylene and, typically, Result of a New Method of Manufacture crystalline melting temperature. In fact, octene in excess of 30 weight percent or Substantially Differentiated Physical Dow asserts that CEF retains its shape using a constrained geometry catalyst, a Characteristics, Such as Fiber Structure at temperatures up to 220°C, well in excess of conventional olefin’s melting member of the metallocene family. The 1. Elasticity catalyst allows precise control of the point, which occurs at or below 170°C. molecular architecture of the polymer, According to Dow, the most notable According to Dow, CEF’s ability to which prior to crosslinking has a narrow characteristic (and of greatest withstand high temperatures has molecular weight distribution. As a importance to consumers) of CEF is its compelling advantages for textile elasticity, which is far superior to that result, the molecules in CEF are very manufacturers who can use more of any conventional olefin fiber. This similar in size and composition to each efficient dye and process methods property is a direct result of CEF’s fiber other. In contrast, Dow states that requiring temperatures in excess of structure. Dow states that CEF’s 170°C. Dow states that CEF also has typical olefin fiber manufactured today favorable stretch (at least five times its advantages for consumers who can results from conventional multi-site original length before breaking) and repeatedly wash, dry, and iron fabrics catalyst technology (such as Ziegler- elasticity (stretching to twice its length containing CEF at typical temperatures Natta catalysts). Consequently, typical and, when released, recovering to (up to 210°C) without destroying CEF’s olefin fiber has a broad compositional within 25 percent of its original length) stretch properties. In contrast, Dow molecular weight distribution, and low are a consequence of its low but asserts that since conventional olefin or no comonomer content. significant level of crystallinity. As a fiber manufactured today loses its shape As a result of CEF’s unique chemical result, CEF can be successfully used in and mechanical integrity at structure, its high comonomer content, clothing applications where stretch is temperatures ranging from 105–170°C, it CEF has lower crystallinity and density desirable. cannot withstand the rigors of high heat than conventional olefin fibers. Unlike In contrast, Dow states that and repeated launderings. conventional olefin fiber where the conventional olefin fiber is highly Consequently, conventional olefin fiber polymer crystals are in lamellae form,7 crystalline, with a degree of crystallinity is not widely used in apparel the crystals in the CEF fiber-forming greater than 50 percent. The crystals of applications today where the consumer substance are in fringe micelle form.8 conventional olefin fiber are in lamellae seeks easy wash and wear care. form, unlike crystals in the CEF fiber- According to Dow, the fringed micellar forming substance, which are in a fringe 3. Chemical Resistance crystalline morphology and the low, but micelle form. As a result, conventional Dow states that CEF’s crosslinked significant, level of crystallinity in CEF olefin fiber manufactured today is stiff polymer network structure also allows impart elastic properties not seen in and inelastic. According to Dow, typical CEF to maintain its integrity in solvents typical olefin fibers. The unique olefin fibers (in their manufactured, that typically dissolve the starting morphology of the CEF polymer results ‘‘drawn,’’ form) exhibit very low polymer. In contrast, according to Dow, in high stretch and elasticity. In elongation before breaking (typically conventional olefin fiber is not contrast, Dow asserts that conventional less than 50%) and, therefore, cannot be crosslinked and, therefore, loses shape olefin fiber, such as drawn used successfully in today’s apparel and mechanical integrity and/or polypropylene fiber, is highly markets for stretch clothing. dissolves above its crystalline melting crystalline and dense. Additionally, temperatures which range up to about 2. High Temperature Stability conventional olefin fiber has low stretch 170°C. and no significant elasticity. Dow states that CEF’s covalent crosslinks connect adjacent polymer 4. Summary of CEF’s Physical chains into a contiguous three- Properties dimensional polymer network. This The physical properties of CEF and crosslinked polymer network structure conventional olefin fiber are allows CEF to maintain its shape and summarized in the table below.

Conventional Property CEF Olefin

Crystallinity, wt% ...... 12–16 ...... >50 Elongation, % ...... >400 ...... <15—200 Breaking Strength (gm/den) ...... >0.9 ...... 1.7–6.8 Initial Modulus ...... 0.3 ...... 34–56 Density (gm/cc) ...... 0.87–0.875 ...... 0.90–0.91 Dissolution Characteristics ...... Does not dissolve ...... Dissolves Temperature Stability ...... Up to >220°C ...... Up to 170°C Manufacturing Method ...... Melt spinning followed Melt spinning by crosslinking.

7 In lamellae form, the polymer chains are folded 8 In fringe micelle form, the polymer chains are 6 Interpolymer refers to polymers prepared by the polymerization of at least two different types of in the crystalline or ordered regions. parallel to each other in the crystalline regions. monomers, typically ethylene and octene.

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C. CEF’s Distinctive Feature(s) Allegedly costs. The amendment simply would the Perry Nuclear Power Plant. This Make the Fiber Suitable for Uses for allow covered companies to use a new security zone is necessary to protect the Which Other Olefin Fibers Would Not generic name for a new fiber that may Perry Nuclear Power Plant from possible Be Suited, or Would Be Significantly not appropriately fit within current sabotage or other subversive acts, Less Well Suited generic names and definitions. The accidents, or possible acts of terrorism. Dow asserted that CEF is suitable for amendment would impose no This security zone is intended to restrict uses for which olefin fibers are not additional labeling requirements. vessel traffic from a portion of Lake Erie. suited, or not as well suited. Dow’s To ensure that no substantial DATES: Comments and related material petition stated: economic impact is being overlooked, must reach the Coast Guard on or before however, the Commission requests Today’s olefin—largely seen in carpet, June 24, 2002. thermal underwear, and socks—does not public comment on the effect of the ADDRESSES: Comments and material offer the consumer stretch or the easy-care proposed amendment on costs, profits, received from the public, as well as characteristics gained through high and competitiveness of, and documents indicated in this preamble as temperature tolerance. To textile mill employment in, small entities. After being available in the docket, are part of producers, CEF enables process economies receiving public comment, the docket CGD09–02–006 and are available and the production of new products with Commission will decide whether for inspection or copying at U.S. Coast atypical stretch and performance properties. preparation of a final regulatory Guard Marine Safety Cleveland, 1055 To the consumer, CEF offers a wider choice flexibility analysis is warranted. in garments containing stretch fabric plus the East Ninth Street, Cleveland, Ohio benefit of easy-care laundering at higher Accordingly, based on available 44126 between 7 a.m. and 4 p.m., temperatures without degradation of the information, the Commission certifies, Monday through Friday, except Federal stretch fiber.9 pursuant to the Regulatory Flexibility holidays. With respect to its commercialization Act (5 U.S.C. 605(b)), that the proposed FOR FURTHER INFORMATION CONTACT: plans, Dow stated that beginning in amendment, if promulgated, would not Lieutenant Junior Grade Allen Turner, 1999, it identified and began working have a significant economic impact on U.S. Coast Guard Marine Safety Office with developmental partners who are a substantial number of small entities. Cleveland, at telephone number (216) leaders in the fiber manufacturing and V. Paperwork Reduction Act 937–0111. apparel industry around the world. SUPPLEMENTARY INFORMATION: Since the second quarter of 2001, CEF This proposed amendment does not has been successfully made on constitute a ‘‘collection of information’’ Request for Comments under the Paperwork Reduction Act of commercial-scale spinning equipment, We encourage you to participate in 1995 (PL 104–13, 109 Stat. 163) and its with resulting quantities subsequently this rulemaking by submitting implementing regulations. (5 CFR 1320 produced and used in a wide range of comments and related material. If you fabrics, including both knits and et seq.) The collection of information do so, please include your name and wovens. These fabrics have been used to imposed by the procedures for address, identify the docket number for make a variety of goods, most notably establishing generic names (16 CFR this rulemaking (CGD09–02–006), for the apparel market. The market 303.8) has been submitted to OMB and indicate the specific section of this testing process of garments with leading has been assigned control number 3084– document to which each comment retailers is presently underway, with 0101. applies, and give the reason for each completion expected within the near comment. Please submit all comments future. Dow expects commercialization List of Subjects in 16 CFR Part 303 and related material in an unbound of CEF to begin at the end of the second Labeling, Textile, Trade Practices. format, no larger than 81⁄2 by 11 inches, quarter of 2002. In effect, therefore, Dow Authority: Sec. 7(c) of the Textile Fiber suitable for copying. If you would like has argued that granting the petition Products Identification Act (15 U.S.C. 70e(c)). would facilitate the use of CEF fiber in to submit comments and related By direction of the Commission. consumer applications, and using a new materials, please enclose a stamped, generic term (like lastol) would help Donald S. Clark, self-addressed postcard or envelope. We consumers identify products made from Secretary. will consider all comments and material CEF. Thus, Dow has maintained that a [FR Doc. 02–13151 Filed 5–23–02; 8:45 am] received during the comment period. We may change this proposed rule in new generic fiber subclass name would BILLING CODE 6750–01–P be important to the public at large, not view of them. You may mail comments just knowledgeable professionals. and related material to U.S. Coast Guard Marine Safety Office Cleveland, 1155 DEPARTMENT OF TRANSPORTATION IV. Regulatory Flexibility Act East 9th Street, Cleveland, OH 44115. The provisions of the Regulatory Coast Guard Marine Safety Office Cleveland Flexibility Act relating to an initial maintains the public docket for this regulatory analysis (5 U.S.C. 603–604) 33 CFR Part 165 rulemaking. Comments and material are not applicable to this proposal, received from the public, as well as because the Commission believes that [CGD09–02–006] documents indicated in this preamble as being available in the docket, will the amendment, if promulgated, will not RIN 2115–AA97 have a significant economic impact on become part of this docket and will be a substantial number of small entities. Security Zone; Lake Erie, Perry, Ohio available for inspection or copying at The Commission has tentatively reached Marine Safety Office Cleveland between this conclusion with respect to the AGENCY: Coast Guard, DOT. 7 a.m. and 4 p.m., Monday through proposed amendment, because the ACTION: Notice of proposed rulemaking. Friday, except Federal holidays. amendment would impose no Background and Purpose additional obligations, penalties or SUMMARY: The Coast Guard proposes to establish a permanent security zone on On September 11, 2001, the United 9 See Dow’s petition dated March 19, 2002, at the navigable waters of Lake Erie in the States was the target of coordinated page 16. Captain of the Port Zone Cleveland for attacks by international terrorists

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