Vol. 84 Friday, No. 27 February 8, 2019
Pages 2705–3094
OFFICE OF THE FEDERAL REGISTER
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Contents Federal Register Vol. 84, No. 27
Friday, February 8, 2019
Agriculture Department Committee for Purchase From People Who Are Blind or NOTICES Severely Disabled Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 2807 Procurement List; Additions and Deletions, 2823–2824
Air Force Department Commodity Futures Trading Commission RULES PROPOSED RULES Civil Disturbance Intervention and Disaster Assistance, Prohibitions and Restrictions on Proprietary Trading and 2734–2735 Certain Interests in, and Relationships With, Hedge NOTICES Funds and Private Equity Funds, 2778–2791 Exclusive Patent Licenses; Approvals: VyrticalXpress LLC, 2833 Community Living Administration NOTICES Army Department Meetings: NOTICES Administration on Intellectual and Developmental Agency Information Collection Activities; Proposals, Disabilities, President’s Committee for People With Submissions, and Approvals, 2833–2834 Intellectual Disabilities, 2874–2875
Bureau of Consumer Financial Protection Comptroller of the Currency NOTICES PROPOSED RULES Fair Lending Report; December 2018, 2824–2833 Prohibitions and Restrictions on Proprietary Trading and Children and Families Administration Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds, 2778–2791 NOTICES Regulatory Capital Rule: Agency Information Collection Activities; Proposals, Capital Simplification for Qualifying Community Banking Submissions, and Approvals: Organizations, 3062–3094 Domestic Victims of Human Trafficking Program, 2873 Youth Empowerment Information, Data Collection, and Copyright Royalty Board Exploration on Avoidance of Sex, 2874 NOTICES Civil Rights Commission Distribution of Cable Royalty Funds, 2930–2931 NOTICES Distribution of Satellite Royalty Funds, 2931–2932 Invitation for Membership on Advisory Committees, 2810– 2811 Defense Department Meetings: See Air Force Department Illinois Advisory Committee, 2811–2812 See Army Department New York Advisory Committee, 2809–2810 See Engineers Corps Ohio Advisory Committee, 2809 Pennsylvania Advisory Committee, 2810 Education Department Vermont Advisory Committee, 2808–2809 NOTICES West Virginia Advisory Committee, 2807–2808 Applications for New Awards: College Assistance Migrant Program, 2835–2839 Coast Guard High School Equivalency Program, 2839–2843 RULES Drawbridge Operations: Energy Department Industrial Seaway Canal, MS, 2735–2736 See Federal Energy Regulatory Commission Safety Zones: Delaware River Rock Blasting, Marcus Hook, PA, 2736– Engineers Corps 2738 NOTICES PROPOSED RULES Environmental Impact Statements; Availability, etc.: Marine Transportation-Related Facility Response Plans for Implementing Test Releases From Fort Peck Dam, Hazardous Substances: Montana, 2835 Withdrawal, 2799–2800 Prado Basin Ecosystem Restoration and Water Tank Vessel Response Plans for Hazardous Substances: Conservation Integrated Feasibility Study, Riverside, Withdrawal, 2800–2801 San Bernardino and Orange Counties, CA, 2834–2835
Commerce Department Environmental Protection Agency See Foreign-Trade Zones Board RULES See Industry and Security Bureau Air Quality State Implementation Plans; Approvals and See International Trade Administration Promulgations: See National Institute of Standards and Technology Washington; Updates to Materials Incorporated by See National Oceanic and Atmospheric Administration Reference, 2738–2742
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National Emission Standards for Hazardous Air Pollutants: Federal Communications Commission Friction Materials Manufacturing Facilities Residual Risk RULES and Technology Review, 2742–2753 Posting of Station Licenses and Related Information, 2753– PROPOSED RULES 2759 Air Quality State Implementation Plans; Approvals and NOTICES Promulgations: Agency Information Collection Activities; Proposals, Louisiana; Attainment Demonstration for the St. Bernard Submissions, and Approvals, 2864–2865 Parish 2010 SO2 Primary National Ambient Air Waivers of Wireline Telephone Volume Control Reset Quality Standard Nonattainment Area; Supplemental Rules, 2863 Notice of Proposed Rulemaking, 2801–2804 NOTICES Agency Information Collection Activities; Proposals, Federal Deposit Insurance Corporation Submissions, and Approvals: RULES Brownfields Program—Accomplishment Reporting, 2862– Depository Institution Management Interlocks Act, 2705– 2863 2706 Requirements for Generators, Transporters, and Waste PROPOSED RULES Management Facilities under the RCRA Hazardous Prohibitions and Restrictions on Proprietary Trading and Waste Manifest System, 2854–2858 Certain Interests in, and Relationships With, Hedge Responsible Appliance Disposal Program, 2853 Funds and Private Equity Funds, 2778–2791 Approval of the Primacy Revision Application for the Regulatory Capital Rule: Public Water System Supervision Program From the Capital Simplification for Qualifying Community Banking State of Kansas, 2859–2860 Organizations, 3062–3094 Certain Chemicals and Microorganisms; Premanufacture, NOTICES Significant New Use, and Exemption Notices: Terminations of Receiverships, 2865 Extension of Review Periods, 2851–2853 Certain New Chemicals or Significant New Uses: Federal Energy Regulatory Commission Statements of Findings for September 2018, 2861–2862 Environmental Impact Statements; Availability, etc.: NOTICES Weekly Receipts, 2860–2861 Agency Information Collection Activities; Proposals, National Compliance Initiatives for Fiscal Years 2020–2023, Submissions, and Approvals, 2846–2847 2848–2851 Applications: Public Hearings: Natural Gas Pipeline Company of America LLC, 2844– Proposed Determinations of Attainment by the 2845 Attainment Date, Extensions of the Attainment Date Combined Filings, 2843–2846 and Reclassification of Several Areas Classified as Complaint: Moderate for the 2008 Ozone National Ambient Air Florida Municipal Power Agency v. Duke Energy Florida, Quality Standards; Reopening of Comment Period, LLC, 2843 2858–2859 Receipt of Information Under the Toxic Substances Control Federal Highway Administration Act, 2847–2848 RULES Transfer and Sanction Programs, 2731–2734 Farm Credit Administration NOTICES RULES Federal Agency Actions: Organization; Funding and Fiscal Affairs, Loan Policies and Proposed Highway Project in Rhode Island, 2943–2944 Operations, and Funding Operations; Farmer Mac Utah; Proposed Highway, 2944–2945 Investment Eligibility, 2706–2707
Federal Aviation Administration Federal Reserve System RULES PROPOSED RULES Airworthiness Directives: Prohibitions and Restrictions on Proprietary Trading and Bombardier, Inc., Airplanes, 2707–2709 Certain Interests in, and Relationships With, Hedge Engine Alliance Turbofan Engines, 2713–2715 Funds and Private Equity Funds, 2778–2791 General Electric Company Turbofan Engines, 2709–2713 Regulatory Capital Rule: Airworthiness Directives; Capital Simplification for Qualifying Community Banking International Aero Engines Turbofan Engines, 2715–2718 Organizations, 3062–3094 Amendment of Class E Airspace; and Revocation of Class E NOTICES Airspace; Change in Bank Control: Jackman, ME; and Newton Field, ME, 2718–2719 Acquisitions of Shares of a Bank or Bank Holding Standard Instrument Approach Procedures, and Takeoff Company, 2866 Minimums and Obstacle Departure Procedures; Formations of, Acquisitions by, and Mergers of Bank Miscellaneous Amendments, 2719–2723 Holding Companies, 2866 PROPOSED RULES Privacy Act; Systems of Records, 2866–2868 Airworthiness Directives: Fokker Services B.V. Airplanes, 2796–2799 Learjet, Inc. Airplanes, 2793–2796 Federal Trade Commission Viking Air Limited (Type Certificate Previously Held by NOTICES Bombardier, Inc.; Canadair Limited) Airplanes, 2791– Agency Information Collection Activities; Proposals, 2793 Submissions, and Approvals, 2868–2871
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Fiscal Service NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals, 2884–2888 Submissions, and Approvals: Meetings: Pools and Associations Annual Letter, 2945 National Vaccine Advisory Committee, 2885–2886 Secretary’s Advisory Committee on National Health Fish and Wildlife Service Promotion and Disease Prevention Objectives for NOTICES 2030, 2886–2887 Agency Information Collection Activities; Proposals, Request for Information: Submissions, and Approvals: Improving Efficiency, Effectiveness, Coordination, and Alaska Subsistence Bird Harvest Survey, 2902–2903 Accountability of HIV and Viral Hepatitis Prevention, Environmental Impact Statements; Availability, etc.: Care, and Treatment Programs, 2883–2884 Endangered and Threatened Wildlife and Plants; Incidental Take Permit and Habitat Conservation Homeland Security Department Plan for the R–Project Transmission Line, 2900–2902 See Coast Guard NOTICES Food and Drug Administration Determination Pursuant to the Illegal Immigration Reform NOTICES and Immigrant Responsibility Act of 1996, 2897–2898 Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals: DHS Data Privacy and Integrity Advisory Committee, Sun Protection Factor Labeling and Testing Requirements 2898–2899 for Over-the-Counter Sunscreen Drug Products, Homeland Security Advisory Council, 2899–2900 2878–2879 Guidance: Industry and Security Bureau Public Warning and Notification of Recalls, 2876–2877 NOTICES Pilot Project Program under the Drug Supply Chain Agency Information Collection Activities; Proposals, Security Act; Program Announcement, 2879–2883 Submissions, and Approvals: Requests for Nominations: Procedures for Submitting Request for Objections From Industry Organizations Interested in Participating in the the Section 232 National Security Adjustments of Selection Process for Nonvoting Industry Imports of Aluminum and Steel, 2813 Representatives; Nonvoting Industry Representatives on Public Advisory Committees, 2875–2876 Interior Department See Fish and Wildlife Service Foreign Assets Control Office See National Park Service NOTICES See Ocean Energy Management Bureau Blocking or Unblocking of Persons and Properties, 2946– 2949 Internal Revenue Service Foreign-Trade Zones Board RULES NOTICES Qualified Business Income Deduction, 2952–3014 Production Activities: PROPOSED RULES Qualified Business Income Deduction, 3015–3023 Catalent Pharma Solutions, LLC; Foreign-Trade Zone 193; Clearwater, FL, 2812 Constantia Blythewood, LLC; Foreign-Trade Zone (FTZ) International Trade Administration 127; West Columbia, SC, 2812–2813 NOTICES Microchip Technology, Inc.; Foreign-Trade Zone 75; Antidumping or Countervailing Duty Investigations, Orders, Phoenix, AZ, 2812 or Reviews: Subzone Applications: Common Alloy Aluminum Sheet From the People’s Hartland Controls, LLC; Foreign-Trade Zone 271; Jo– Republic of China, 2813–2815 Daviess and Carroll Counties, IL, 2812 Opportunity To Request Administrative Review, 2816– 2819 General Services Administration Meetings: NOTICES Renewable Energy and Energy Efficiency Advisory Agency Information Collection Activities; Proposals, Committee, 2815–2816 Submissions, and Approvals: Application/Permit for Use of Space in Public Buildings International Trade Commission and Grounds, 2872–2873 NOTICES Meetings: Complaints: Environmental Impact Statement for the San Ysidro Land Certain Blood Separation and Cell Preparation Devices, Port of Entry Improvements Project, San Ysidro, CA, 2927–2928 2871–2872 Investigations; Determinations, Modifications, and Rulings, etc.: Health and Human Services Department Certain Large Residential Washers From Korea and See Children and Families Administration Mexico, 2926 See Community Living Administration Plastic Decorative Ribbon From China, 2926 See Food and Drug Administration Utility Scale Wind Towers From China and Vietnam, See National Institutes of Health 2926–2927
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Justice Department Fisheries of the Exclusive Economic Zone Off Alaska: NOTICES Reallocation of Pollock in the Bering Sea and Aleutian Agency Information Collection Activities; Proposals, Islands, 2776–2777 Submissions, and Approvals, 2928–2930 Fisheries of the Northeastern United States: Agency Information Collection Activities; Proposals, Magnuson-Stevens Act Provisions; Atlantic Herring Submissions, and Approvals: Fishery; Adjustment to Atlantic Herring Annuity Broker Declaration Form, 2928 Specifications and Sub-Annual Catch Limits for 2019, 2760–2767 Labor Department Pacific Island Fisheries: See Workers Compensation Programs Office Reclassifying Management Unit Species to Ecosystem Component Species, 2767–2775 Library of Congress NOTICES See Copyright Royalty Board Meetings: Mid-Atlantic Fishery Management Council, 2820–2823 National Endowment for the Arts New England Fishery Management Council, 2821–2822 NOTICES North Pacific Fishery Management Council, 2820 Meetings: Pacific Fishery Management Council, 2821 Arts Advisory Panel, 2932–2933
National Foundation on the Arts and the Humanities National Park Service See National Endowment for the Arts NOTICES Agency Information Collection Activities; Proposals, National Highway Traffic Safety Administration Submissions, and Approvals RULES National Park Service Watercraft Inspection Transfer and Sanction Programs, 2731–2734 Decontamination Regional Data-Sharing for Trailered PROPOSED RULES Recreational Boats, 2920 Federal Motor Vehicle Safety Standards; Event Data Intent to Repatriate Cultural Items: Recorders, 2804–2806 St. Joseph Museums, Inc., St. Joseph, MO, 2905–2906 Inventory Completion: National Institute of Standards and Technology Department of Interior, Bureau of Reclamation, Upper NOTICES Colorado Region, Salt Lake City, UT; Museum of Agency Information Collection Activities; Proposals, New Mexico, Museum of Indian Arts and Culture, Submissions, and Approvals: Santa Fe, NM; and Arizona State University, School SURF Fellow Housing Application, 2819–2820 of Human Evolution and Social Change, Tempe, AZ, 2912–2914 National Institutes of Health Department of the Interior, Bureau of Reclamation, Upper NOTICES Colorado Region, Salt Lake City, UT, 2917–2918 Meetings: Department of the Interior, Bureau of Reclamation, Upper Advisory Committee on Research on Women’s Health, Colorado Region, Salt Lake City, UT, and the 2895 Museum of Northern Arizona, Flagstaff, AZ, 2922– Center for Scientific Review, 2896–2897 2923 Eunice Kennedy Shriver National Institute of Child Health and Human Development, 2889, 2892–2893, Fish and Wildlife Service, Anchorage, AK, 2916–2917 Fogarty International Center, 2895–2896 Morris Museum, Morristown, NJ, 2904–2905 National Center for Complementary and Integrative Oregon Parks and Recreation Department, Salem, OR, and Health, 2888–2891 Oregon State University, Department of National Heart, Lung, and Blood Institute, 2893, 2895 Anthropology, Corvallis, OR, 2918–2919 National Institute of Arthritis and Musculoskeletal and Princeton University, Princeton, NJ, 2910–2911 Skin Diseases, 2896 Pueblo Grande Museum, Phoenix, AZ, 2908–2910, 2914– National Institute of Neurological Disorders and Stroke, 2916, 2924–2925 2890–2891, 2893–2895 The State Center Community College District—Fresno National Institute on Minority Health and Health City College, Fresno, CA, 2903–2904 Disparities, 2892 U.S. Department of the Interior, Bureau of Indian Affairs, National Library of Medicine, 2888–2889, 2891–2892 Washington, DC, 2920–2921 Office of the Director, 2889–2890 Repatriation of Cultural Items: Fish and Wildlife Service, Office of Law Enforcement, National Oceanic and Atmospheric Administration Rio Rico, AZ, 2911–2912 RULES George Fox University, Newberg, OR, 2923–2924 Coastal Migratory Pelagic Resources of the Gulf of Mexico New York State Museum, Albany, NY, 2919–2920 and Atlantic Region: San Diego Museum of Man, San Diego, CA, 2906–2907 Commercial Trip Limit Increase for King Mackerel in the Thomas Burke Memorial Washington State Museum, Atlantic Southern Zone, 2759–2760 University of Washington, Seattle, WA, 2914 Fisheries of the Exclusive Economic Zone Off Alaska: Prohibit Directed Fishing for American Fisheries Act Program and Crab Rationalization Program National Science Foundation Groundfish Sideboard Limits in the BSAI and GOA, NOTICES 2723–2731 Meetings; Sunshine Act, 2933–2934
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Nuclear Regulatory Commission See United States Mint NOTICES Environmental Impact Statements; Availability, etc.: United States Mint United Nuclear Corporation Church Rock Project, 2935– NOTICES 2937 Establish Pricing and Pricing Changes for 2019 United Instrument Sensing Lines, 2934–2935 States Mint Numismatic Products, 2949
Ocean Energy Management Bureau Veterans Affairs Department NOTICES NOTICES Environmental Impact Statements; Availability, etc.: Agency Information Collection Activities; Proposals, Vineyard Wind LLC’s Proposed Wind Energy Facility Submissions, and Approvals: Offshore Massachusetts; Hearings, 2925–2926 Application for Vocational Rehabilitation for Veterans With Service-Connected Disabilities, 2949–2950 Securities and Exchange Commission Marital Status Questionnaire, 2949 PROPOSED RULES Prohibitions and Restrictions on Proprietary Trading and Workers Compensation Programs Office Certain Interests in, and Relationships With, Hedge RULES Funds and Private Equity Funds, 2778–2791 Claims for Compensation Under the Energy Employees NOTICES Occupational Illness Compensation Program Act, 3026– Applications: 3060 Special Opportunities Fund, Inc. and Bulldog Investors, LLC, 2937–2938 Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Credit, LLC, 2938–2941 Separate Parts In This Issue
Social Security Administration Part II NOTICES Treasury Department, Internal Revenue Service, 2952–3023 Privacy Act; Matching Program, 2941 Part III Surface Transportation Board Labor Department, Workers Compensation Programs Office, NOTICES 3026–3060 Abandonment Exemption: CSX Transportation, Inc. in Bronx County, N.Y., 2942– Part IV 2943 Federal Deposit Insurance Corporation, 3062–3094 Eastern Idaho Railroad, LLC in Fremont County, ID, 2943 Federal Reserve System, 3062–3094 Temporary Trackage Rights Exemption: Treasury Department, Comptroller of the Currency, 3062– The Indiana Rail Road Co.; CSX Transportation, Inc., 3094 2941–2942
Transportation Department Reader Aids See Federal Aviation Administration Consult the Reader Aids section at the end of this issue for See Federal Highway Administration phone numbers, online resources, finding aids, and notice See National Highway Traffic Safety Administration of recently enacted public laws. Treasury Department To subscribe to the Federal Register Table of Contents See Comptroller of the Currency electronic mailing list, go to https://public.govdelivery.com/ See Fiscal Service accounts/USGPOOFR/subscriber/new, enter your e-mail See Foreign Assets Control Office address, then follow the instructions to join, leave, or See Internal Revenue Service manage your subscription.
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CFR PARTS AFFECTED IN THIS ISSUE
A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.
12 CFR 1...... 2753 303...... 2705 5...... 2753 348...... 2705 73...... 2753 652...... 2706 74...... 2753 Proposed Rules: 49 CFR 1...... 3062 Proposed Rules: 3...... 3062 563...... 2804 5...... 3062 6...... 3062 50 CFR 23...... 3062 622...... 2759 24...... 3062 648...... 2760 32...... 3062 665...... 2767 34...... 3062 679 (2 documents) ...... 2723, 44...... 2778 2776 160...... 3062 680...... 2723 192...... 3062 206...... 3062 208...... 3062 211...... 3062 215...... 3062 217...... 3062 223...... 3062 225...... 3062 238...... 3062 248...... 2778 251...... 3062 303...... 3062 324...... 3062 337...... 3062 347...... 3062 351...... 2778 362...... 3062 365...... 3062 390...... 3062 14 CFR 39 (4 documents) ...2707, 2709, 2713, 2715 71...... 2718 97 (2 documents) ....2719, 2720 Proposed Rules: 39 (3 documents) ...2791, 2793, 2796 15 CFR 902...... 2725 17 CFR Proposed Rules: 75...... 2778 255...... 2778 20 CFR 30...... 3026 23 CFR 1270...... 2731 1275...... 2731 26 CFR 1...... 2952 Proposed Rules: 1...... 3015 32 CFR 809a...... 2734 33 CFR 117...... 2735 165...... 2736 Proposed Rules: 154...... 2799 155...... 2800 40 CFR 52...... 2738 63...... 2742 Proposed Rules: 52...... 2801 47 CFR 0...... 2753
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Rules and Regulations Federal Register Vol. 84, No. 27
Friday, February 8, 2019
This section of the FEDERAL REGISTER way affects or changes any substantive As noted previously, these two contains regulatory documents having general requirements under the DIMIA or its changes to the FDIC Regulations are applicability and legal effect, most of which implementing regulation. purely technical, done to correct an are keyed to and codified in the Code of erroneous statement and a citation. I. Background Federal Regulations, which is published under Since these are merely technical 50 titles pursuant to 44 U.S.C. 1510. The Agencies jointly proposed an amendments, public notice and The Code of Federal Regulations is sold by adjustment of the thresholds for the comment is unnecessary nor is there the Superintendent of Documents. major assets prohibition of the DIMIA any need for a delayed effective date. through a NPR published at 84 FR 604 (Jan. 31, 2019). In addition to an II. Administrative Procedure Act FEDERAL DEPOSIT INSURANCE adjustment of the thresholds for the The Administrative Procedure Act CORPORATION major assets prohibition by means of the (APA) does not require an agency to NPR, the FDIC will use this opportunity publish a notice of proposed rulemaking 12 CFR Parts 303 and 348 to make two technical corrections to in the Federal Register if an ‘‘agency for RIN 3064–AE92 FDIC Regulations, both relevant to good cause finds (and incorporates the DIMIA implementation. The first finding and a brief statement of reasons Depository Institution Management correction pertains to 12 CFR 303.249 therefor in the rules issued) that notice Interlocks Act and would remove an erroneous and public procedure thereon are statement. The second pertains to 12 impracticable, unnecessary, or contrary AGENCY: Federal Deposit Insurance CFR 348.4(i) and would correct a to the public interest.’’ 2 The FDIC finds Corporation (FDIC). citation. Both technical corrections are that for purposes of making purely ACTION: Final rule; technical explained in further detail below. technical corrections, good cause exists amendments. A. Correct Erroneous Statement in 12 to not publish a notice of proposed rulemaking in the Federal Register and, SUMMARY: CFR 303.249(c)(3) This final rule is being therefore, is issuing this rule as a final promulgated in connection with an 12 CFR part 303 of FDIC Regulations rule. adjustment of the thresholds for the pertains to filing procedures. Section Section 553(d)(3) of the APA provides major assets prohibition of the 303.249(c)(3) currently states that an that, for good cause found and Depository Institutions Management applicant seeking an exemption under published with the rule, an agency does Interlocks Act (DIMIA) that has been either § 348.5 or § 348.6 of the FDIC not have to comply with the proposed jointly by the FDIC with the DIMIA regulation needs to provide requirement that a substantive rule be certain information in connection with Office of the Comptroller of the published not less than 30 days before an application for an interlocks Currency and the Board of Governors of its effective date.3 The final rule will be exemption. The reference to § 348.5 is the Federal Reserve System effective immediately upon its wrong. This section pertains to the (collectively, the ‘‘Agencies’’) through a publication in the Federal Register. The small market share exemption, which notice of proposed rulemaking (NPR) FDIC invokes the good cause exception was specifically designed by the Federal published in the Federal Register on to the APA’s 30-day publication depository institutions regulatory January 31, 2019. The FDIC has decided requirement for the reasons discussed agencies to be self-executing, that is, an to use this opportunity to make two above. purely technical corrections to FDIC application to the FDIC is not required Regulations, both pertaining to DIMIA for the exemption to be effective.1 The III. Regulatory Analyses incorrect statement will therefore be implementation, by means of a separate A. Regulatory Flexibility Act final rule without notice and comment. removed. The Regulatory Flexibility Act, 5 DATES: The final rule is effective B. Correct Erroneous Citation in 12 CFR U.S.C. 601 et seq. (RFA), requires an February 8, 2019. 348.4(i) agency, in connection with a notice of FOR FURTHER INFORMATION CONTACT: Section 348.4 pertains to statutory proposed rulemaking, to prepare an Karen J. Currie, Senior Examination exemptions from the Interlocks Act Initial Regulatory Flexibility Analysis Specialist, [email protected], Division of prohibitions. Section 348.4(i) sets forth describing the impact of the proposed Risk Management Supervision, (202) the exemption for a management rule on small entities (defined by the 898–3981; Mark Mellon, Counsel, interlock where a director of an Small Business Administration for [email protected], Legal Division, (202) unaffiliated depository organization purposes of the RFA to include banking 898–3884; Federal Deposit Insurance serves as a management official of a entities with total assets of $550 million Corporation, 550 17th Street NW, diversified savings and loan holding or less) or to certify that the proposed Washington, DC 20429. company as that term is defined in rule would not have a significant SUPPLEMENTARY INFORMATION: The FDIC section 10(a)(1)(F) of the Home Owners’ economic impact on a substantial has concluded that good cause exists to Loan Act (12 U.S.C. 1467a(a)(1)(F). number of small entities. The RFA also publish this rule as final without a Section 348.4(i)(3) incorrectly refers to requires an agency, in connection with period of notice and comment and with preceding paragraph (h) when it should a final rule, to prepare a Final an effective date as of the date of its refer to paragraph (i). This incorrect Regulatory Flexibility Act (FRFA) publication in the Federal Register citation will therefore be corrected. because this final rule will only make 2 5 U.S.C. 553(b). purely technical corrections and in no 1 See 64 FR at 51676 (Sep. 24, 1999). 3 5 U.S.C. 553(d)(3).
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analysis describing the impact of the Improvement Act of 1994, 12 U.S.C. § 348.4 Interlocking relationships final rule on small entities. Neither an 4802, (RCDRIA), there is a requirement permitted by statute. IRFA nor FRFA is required, however, if that ‘‘[n]ew regulations and * * * * * the rule is issued under the APA amendments to regulations prescribed (i) * * * provision allowing the agency to forego by a Federal banking agency which (3) The FDIC may require that any notice and comment rulemaking for impose additional reporting, interlock permitted under this good cause. Therefore, the FDIC has not disclosures, or other new requirements paragraph (i) be terminated if a change prepared either an IRFA or an FRFA in on insured depository institutions shall in circumstances occurs with respect to connection with this final rule. take effect on the first day of a calendar one of the interlocked depository Nevertheless, the FDIC notes that the quarter which begins on or after the date organizations that would have provided final rule does not impose any burden on which the regulations are published a basis for disapproval of the interlock on small banking entities as it only in final form’’ absent a good cause during the notice period. makes technical corrections to already determination by the agency.4 The final * * * * * existing requirements. rule imposes no additional reporting, Dated at Washington, DC, on December 18, disclosure, or other new requirements B. Paperwork Reduction Act 2018. on insured depository institutions and By order of the Board of Directors. In accordance with the requirements therefore is not subject to the effective Valerie Best, of the Paperwork Reduction Act of 1995 date requirement in RCDRIA. (44 U.S.C. 3501–3521), the FDIC may Assistant Executive Secretary. not conduct or sponsor, and a List of Subjects [FR Doc. 2019–01193 Filed 2–7–19; 8:45 am] respondent is not required to respond 12 CFR Part 303 BILLING CODE 6714–01–P to, an information collection unless it displays a currently valid Office of Administrative practice and Management and Budget (OMB) control procedure, Bank deposit insurance, FARM CREDIT ADMINISTRATION number. The FDIC reviewed the rule Banks, banking, Reporting and and determined that it does not create recordkeeping requirements, Savings 12 CFR Parts 652 associations. any new, or revise any existing, RIN 3052–AC86 collection of information under section 12 CFR Part 348 3504(h) of the Paperwork Reduction Act Organization; Funding and Fiscal of 1980. Consequently, no information Banks, banking, Savings associations. Affairs, Loan Policies and Operations, collection request will be submitted to For the reasons stated in the and Funding Operations; Farmer Mac the OMB for review. preamble, the Federal Deposit Insurance Investment Eligibility Corporation amends 12 CFR parts 303 AGENCY: C. Small Business Regulatory and 348 as follows: Farm Credit Administration. Enforcement Fairness Act ACTION: Notification of effective date. PART 303—FILING PROCEDURES The Office of Management and Budget SUMMARY: The Farm Credit has determined that the final rule is not ■ Administration (FCA or we) issued a a ‘‘major rule’’ within the meaning of 1. The authority citation for part 303 continues to read as follows: final rule adopting amendments to the Small Business Regulatory regulations governing the eligibility of Enforcement Fairness Act of 1996 (Title Authority: 12 U.S.C. 378, 1464, 1813, 1815, non-program investments held by the II, Pub. L. 104–121). 1817, 1818, 1819(a), (Seventh and Tenth), 1820, 1823, 1828, 1831a, 1831e, 1831o, Federal Agricultural Mortgage D. The Treasury and General 1831p–1, 1831w, 1835a, 1843(1), 3104, 3105, Corporation (Farmer Mac) to remove Government Appropriations Act, 1999— 3108, 3207, 5414; 15 U.S.C. 1601–1607. references to, and requirements relating Assessment of Federal Regulations and to, credit ratings in compliance with ■ 2. In § 303.249, paragraph (c)(3) is Policies on Families section 939A of the Dodd-Frank Wall revised to read as follows: Street Reform and Consumer Protection The FDIC has determined that the Act. In accordance with law, the final rule will not affect family well- § 303.249 Management official interlocks. effective date of the rule is no earlier being within the meaning of section 654 * * * * * than 30 days from the date of of the Treasury and General (c) * * * publication in the Federal Register Government Appropriations Act, (3) If the applicant is seeking an during which either or both Houses of enacted as part of the Omnibus exemption set forth in § 348.6 of this Congress are in session. Consolidated and Emergency chapter, a description of the particular Supplemental Appropriations Act of exemption which is being requested and DATES: The regulation amending 12 CFR 1999 (Pub. L. 105–277, 112 Stat. 2681). a statement of reasons as to why the part 652 published on November 2, exemption is applicable. 2018 (83 FR 55093), is effective on E. Plain Language February 8, 2019. * * * * * Section 722 of the Gramm-Leach- FOR FURTHER INFORMATION CONTACT: Bliley Act requires the federal banking PART 348—MANAGEMENT OFFICIAL Technical information: Joseph agencies to use plain language in all INTERLOCKS Connor, Associate Director for Policy final rules published after January 1, and Analysis, Office of Secondary 2000. The FDIC has sought to present ■ 3. The authority citation for part 348 Market Oversight, (703) 883–4364, TTY the final rule in a simple and continues to read as follows: (703) 883–4056, [email protected]. straightforward manner. Legal information: Laura McFarland, Authority: 12 U.S.C. 1823(k), 3207. Senior Counsel, Office of General F. Riegle Community Development and ■ 4. In § 348.4, paragraph (i)(3) is Counsel, (703) 883–4020, TTY (703) Regulatory Improvement Act of 1994 revised to read as follows: 883–4056, [email protected]. Under the Riegle Community SUPPLEMENTARY INFORMATION: On Development and Regulatory 4 12 U.S.C. 4802(b). November 2, 2018, FCA issued a final
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rule adopting amendments to Bombardier, Inc., Q-Series Technical could result in an uncommanded in- regulations governing the eligibility of Help Desk, 123 Garratt Boulevard, flight shutdown of the No. 2 engine. non-program investments held by Toronto, Ontario M3K 1Y5, Canada; Transport Canada Civil Aviation Farmer Mac to remove references to, telephone 416–375–4000; fax 416–375– (TCCA), which is the aviation authority and requirements relating to, credit 4539; email thd.qseries@ for Canada, has issued Canadian AD ratings. The final rule also revised aero.bombardier.com; internet http:// CF–2017–21R1, dated June 28, 2017 investment concentration limits and www.bombardier.com. You may view (referred to after this as the Mandatory removed both the fixed asset class limits this service information at the FAA, Continuing Airworthiness Information, and the related table of eligible asset Transport Standards Branch, 2200 or ‘‘the MCAI’’), to correct an unsafe classes. In accordance with 12 U.S.C. South 216th St., Des Moines, WA. For condition for certain Bombardier, Inc., 2252(c)(1), the effective date of the rule information on the availability of this Model DHC–8–102, –103, and –106 is no earlier than 30 days from the date material at the FAA, call 206–231–3195. airplanes; Model DHC–8–200 series of publication in the Federal Register It is also available on the internet at airplanes; and Model DHC–8–300 series during which either or both Houses of http://www.regulations.gov by searching airplanes. The MCAI states: Congress are in session. Based on the for and locating Docket No. FAA–2018– records of the sessions of Congress, the During the incorporation of the Auto 0635. Relight modification per Bombardier SB effective date of the regulations is Examining the AD Docket [Service Bulletin] 8–74–02 on an aeroplane February 8, 2019. with a Beta Lockout System (BLS) installed, Dated: January 31, 2019. You may examine the AD docket on it was noticed that if SB 8–74–02 is Dale L. Aultman, the internet at http:// incorporated in conjunction with, or after the incorporation of BLS SB 8–76–35 ([Canadian] Secretary, Farm Credit Administration Board. www.regulations.gov by searching for and locating Docket No. FAA–2018– AD CF–2013–15) or SB 8–76–24 (FAA AD [FR Doc. 2019–01072 Filed 2–7–19; 8:45 am] 0635; or in person at Docket Operations 2000–02–13 [Amendment 39–11531 (65 FR BILLING CODE 6705–01–P between 9 a.m. and 5 p.m., Monday 4095, January 26, 2000)]), the #2 engine auto through Friday, except Federal holidays. ignition function of the beta lockout system will not be available when the beta lockout The AD docket contains this final rule, DEPARTMENT OF TRANSPORTATION system is activated. This condition, if not the regulatory evaluation, any corrected, may result in a #2 engine Federal Aviation Administration comments received, and other uncommanded in-flight shut down. information. The address for Docket To preclude any future occurrence of the 14 CFR Part 39 Operations (phone: 800–647–5527) is noted deficiency, Bombardier has issued SB U.S. Department of Transportation, 8–74–02 Revision B to highlight its [Docket No. FAA–2018–0635; Product Docket Operations, M–30, West incompatibility with post SB 8–76–35 or 8– Identifier 2017–NM–183–AD; Amendment Building Ground Floor, Room W12–140, 76–24 BLS compliant aeroplanes. In 39–19490; AD 2018–23–04] 1200 New Jersey Avenue SE, addition, Bombardier issued a new SB, 8–74– 06 for Auto Relight System modification that RIN 2120–AA64 Washington, DC 20590. can be incorporated in conjunction with or FOR FURTHER INFORMATION CONTACT: Joe on those aeroplanes that were previously Airworthiness Directives; Bombardier, Catanzaro, Aerospace Engineer, modified per SB 8–76–35 or 8–76–24. Inc., Airplanes Airframe and Propulsion Section, FAA, To address this potentially unsafe condition, Bombardier has also issued SB 8– AGENCY: Federal Aviation New York ACO Branch, 1600 Stewart 74–07 to inspect and rectify the system Administration (FAA), Department of Avenue, Suite 410, Westbury, NY 11590; telephone 516–228–7366; fax wiring on affected aeroplanes. Transportation (DOT). The original version of this [Canadian] AD ACTION: Final rule. 516–794–5531; email 9-avs-nyaco-cos@ was issued to mandate compliance with the faa.gov. SB 8–74–07 requirements. SUMMARY: We are adopting a new SUPPLEMENTARY INFORMATION: Revision 1 of this [Canadian] AD is issued airworthiness directive (AD) for certain to clarify the Applicability section and Bombardier, Inc., Model DHC–8–102, Discussion correct a typographic error in the SB number –103, and –106 airplanes; Model DHC– We issued a notice of proposed referenced in the Corrective Action section of 8–200 series airplanes; and Model DHC– rulemaking (NPRM) to amend 14 CFR the original [Canadian] AD. 8–300 series airplanes. This AD was part 39 by adding an AD that would You may examine the MCAI in the prompted by a report that a certain apply to certain Bombardier, Inc., Model AD docket on the internet at http:// modification to the auto relight system DHC–8–102, –103, and –106 airplanes; www.regulations.gov by searching for is incompatible with a certain beta Model DHC–8–200 series airplanes; and and locating Docket No. FAA–2018– lockout system modification and could Model DHC–8–300 series airplanes. The 0635. result in de-activation of the auto NPRM published in the Federal ignition feature of the No. 2 engine. This Register on July 23, 2018 (83 FR 34800). Comments AD requires an inspection of the auto The NPRM was prompted by a report We gave the public the opportunity to ignition system and applicable that a certain modification to the auto participate in developing this final rule. rectification. We are issuing this AD to relight system is incompatible with a We have considered the comment address the unsafe condition on these certain beta lockout system modification received. The Air Line Pilots products. and could result in de-activation of the Association, International (ALPA) DATES: This AD is effective March 15, auto ignition feature of the No. 2 engine. indicated its support for the NPRM. 2019. The NPRM proposed to require an Conclusion The Director of the Federal Register inspection of the auto ignition system approved the incorporation by reference and applicable rectification. We are We reviewed the relevant data, of a certain publication listed in this AD issuing this AD to address unintentional considered the comment received, and as of March 15, 2019. de-activation of the auto ignition feature determined that air safety and the ADDRESSES: For service information of the No. 2 engine when the beta public interest require adopting this identified in this final rule, contact lockout system is activated, which final rule as proposed, except for minor
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editorial changes. We have determined Related Service Information Under 1 auto ignition feature. This service that these minor changes: CFR Part 51 information is reasonably available • Are consistent with the intent that Bombardier has issued Service because the interested parties have was proposed in the NPRM for Bulletin 8–74–07, dated April 13, 2016. access to it through their normal course addressing the unsafe condition; and This service information describes of business or by the means identified procedures for an inspection to in the ADDRESSES section. • Do not add any additional burden determine correct operation of the auto upon the public than was already Costs of Compliance ignition system for airplanes on which proposed in the NPRM. a beta lockout system was installed, and We estimate that this AD affects 185 rectification to re-activate a previously airplanes of U.S. registry. disabled auto ignition system that will We estimate the following costs to address inadvertent de-activation of the comply with this AD:
ESTIMATED COSTS
Cost per Cost on U.S. Action Labor cost Parts cost product operators
Inspection ...... 1 work-hour × $85 per hour = $85 ...... $0 $85 $15,725
We estimate the following costs to do would be required based on the results determining the number of aircraft that any necessary on-condition actions that of the inspection. We have no way of might need this action:
ON-CONDITION COSTS
Cost per Action Labor cost Parts cost product
Rectification ...... 3 work-hours × $85 per hour = $255 ...... $6 $261
Authority for This Rulemaking the Director of the System Oversight the FAA amends 14 CFR part 39 as Division. follows: Title 49 of the United States Code specifies the FAA’s authority to issue Regulatory Findings PART 39—AIRWORTHINESS rules on aviation safety. Subtitle I, This AD will not have federalism DIRECTIVES section 106, describes the authority of implications under Executive Order ■ the FAA Administrator. Subtitle VII: 13132. This AD will not have a 1. The authority citation for part 39 Aviation Programs, describes in more substantial direct effect on the States, on continues to read as follows: detail the scope of the Agency’s the relationship between the national Authority: 49 U.S.C. 106(g), 40113, 44701. authority. government and the States, or on the § 39.13 [Amended] We are issuing this rulemaking under distribution of power and the authority described in Subtitle VII, responsibilities among the various ■ 2. The FAA amends § 39.13 by adding Part A, Subpart III, Section 44701: levels of government. the following new airworthiness ‘‘General requirements.’’ Under that For the reasons discussed above, I directive (AD): section, Congress charges the FAA with certify that this AD: 2018–23–04 Bombardier, Inc.: Amendment promoting safe flight of civil aircraft in (1) Is not a ‘‘significant regulatory 39–19490; Docket No. FAA–2018–0635; air commerce by prescribing regulations action’’ under Executive Order 12866, Product Identifier 2017–NM–183–AD. for practices, methods, and procedures (2) Is not a ‘‘significant rule’’ under (a) Effective Date the Administrator finds necessary for the DOT Regulatory Policies and This AD is effective March 15, 2019. safety in air commerce. This regulation Procedures (44 FR 11034, February 26, is within the scope of that authority 1979), (b) Affected ADs because it addresses an unsafe condition (3) Will not affect intrastate aviation None. that is likely to exist or develop on in Alaska, and (c) Applicability products identified in this rulemaking (4) Will not have a significant action. This AD applies to Bombardier, Inc., economic impact, positive or negative, Model DHC–8–102, –103, –106, –201, –202, This AD is issued in accordance with on a substantial number of small entities –301, –311, and –315 airplanes, certificated authority delegated by the Executive under the criteria of the Regulatory in any category, serial numbers 003 through Director, Aircraft Certification Service, Flexibility Act. 540 inclusive, on which Bombardier Service as authorized by FAA Order 8000.51C. Bulletin 8–74–02, dated March 3, 2000; or In accordance with that order, issuance List of Subjects in 14 CFR Part 39 Revision A, dated January 27, 2014; has been of ADs is normally a function of the Air transportation, Aircraft, Aviation accomplished concurrently with or after Compliance and Airworthiness safety, Incorporation by reference, accomplishment of Bombardier Service Division, but during this transition Safety. Bulletin 8–76–35 or 8–76–24. period, the Executive Director has (d) Subject Adoption of the Amendment delegated the authority to issue ADs Air Transport Association (ATA) of applicable to transport category Accordingly, under the authority America Code 74, Ignition; 76, Engine airplanes and associated appliances to delegated to me by the Administrator, Controls.
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(e) Reason http://www.regulations.gov by searching for ACTION: Final rule; request for This AD was prompted by a report that a and locating Docket No. FAA–2018–0635. comments. certain modification to the auto relight (2) For more information about this AD, system is incompatible with a certain beta contact Joe Catanzaro, Aerospace Engineer, SUMMARY: We are superseding lockout system modification and could result Airframe and Propulsion Section, FAA, New Airworthiness Directive (AD) 2018–16– in de-activation of the auto ignition feature York ACO Branch, 1600 Stewart Avenue, 07, which applied to certain General of the No. 2 engine. We are issuing this AD Suite 410, Westbury, NY 11590; telephone Electric Company (GE) GEnx turbofan to address unintentional de-activation of the 516–228–7366; fax 516–794–5531; email 9- [email protected]. engines. AD 2018–16–07 required auto ignition feature of the No. 2 engine removal and replacement of affected when the beta lockout system is activated, (3) Service information identified in this AD that is not incorporated by reference is high-pressure turbine (HPT) stator cases which could result in an uncommanded in- available at the addresses specified in (HPT cases). This AD retains those flight shutdown of the No. 2 engine. paragraphs (k)(3) and (k)(4) of this AD. requirements, but reduces certain (f) Compliance (k) Material Incorporated by Reference compliance times. This AD was Comply with this AD within the prompted by the discovery of a quality (1) The Director of the Federal Register compliance times specified, unless already approved the incorporation by reference escape at a manufacturing facility and a done. (IBR) of the service information listed in this determination that the compliance time (g) Inspection and Corrective Action paragraph under 5 U.S.C. 552(a) and 1 CFR for the removal and replacement of certain HPT cases must be reduced. We Within 6,000 flight hours or 36 months, part 51. whichever occurs first, after the effective date (2) You must use this service information are issuing this AD to address the unsafe as applicable to do the actions required by of this AD, inspect and, as applicable, rectify condition on these products. this AD, unless this AD specifies otherwise. the auto ignition system in accordance with DATES: This AD is effective February 25, (i) Bombardier Service Bulletin 8–74–07, the Accomplishment Instructions of dated April 13, 2016. 2019. Bombardier Service Bulletin 8–74–07, dated (ii) [Reserved] The Director of the Federal Register April 13, 2016. (3) For service information identified in approved the incorporation by reference (h) Credit for Previous Actions this AD, contact Bombardier, Inc., Q-Series of certain publications listed in this AD This paragraph provides credit for Technical Help Desk, 123 Garratt Boulevard, as of February 25, 2019. rectification required by paragraph (g) of this Toronto, Ontario M3K 1Y5, Canada; We must receive any comments on telephone 416–375–4000; fax 416–375–4539; AD, if those actions were performed before this AD by March 25, 2019. email [email protected]; the effective date of this AD using ADDRESSES: You may send comments, internet http://www.bombardier.com. Bombardier In-Service Modification using the procedures found in 14 CFR (4) You may view this service information Summary Package IS8Q7400001, Revision C, at the FAA, Transport Standards Branch, 11.43 and 11.45, by any of the following dated November 27, 2015. methods: 2200 South 216th St., Des Moines, WA. For • (i) Other FAA AD Provisions information on the availability of this Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the The following provisions also apply to this material at the FAA, call 206–231–3195. AD: (5) You may view this service information instructions for submitting comments. that is incorporated by reference at the • Fax: 202–493–2251. (1) Alternative Methods of Compliance • (AMOCs): The Manager, New York ACO National Archives and Records Mail: U.S. Department of Branch, FAA, has the authority to approve Administration (NARA). For information on Transportation, Docket Operations, M– AMOCs for this AD, if requested using the the availability of this material at NARA, call 30, West Building Ground Floor, Room procedures found in 14 CFR 39.19. In 202–741–6030, or go to: http:// W12–140, 1200 New Jersey Avenue SE, accordance with 14 CFR 39.19, send your www.archives.gov/federal-register/cfr/ibr- Washington, DC 20590. locations.html. request to your principal inspector or local • Hand Delivery: Deliver to Mail Flight Standards District Office, as Issued in Des Moines, Washington, on address above between 9 a.m. and 5 appropriate. If sending information directly October 26, 2018. p.m., Monday through Friday, except to the manager of the certification office, Michael Kaszycki, Federal holidays. send it to ATTN: Program Manager, Acting Director, System Oversight Division, For service information identified in Continuing Operational Safety, FAA, New Aircraft Certification Service. York ACO Branch, 1600 Stewart Avenue, this final rule, contact General Electric Suite 410, Westbury, NY 11590; telephone Editorial Note: This document was Company, GE Aviation, Room 285, 1 516–228–7300; fax 516–794–5531. Before received for publication by the Office of the Neumann Way, Cincinnati, OH 45215; using any approved AMOC, notify your Federal Register on January 30, 2019. phone: 513–552–3272; email: appropriate principal inspector, or lacking a [FR Doc. 2019–00858 Filed 2–7–19; 8:45 am] [email protected]. You may principal inspector, the manager of the local BILLING CODE 4910–13–P view this service information at the flight standards district office/certificate FAA, Engine and Propeller Standards holding district office. Branch, 1200 District Avenue, (2) Contacting the Manufacturer: For any DEPARTMENT OF TRANSPORTATION Burlington, MA. You may view this requirement in this AD to obtain corrective service information at the FAA, Engine actions from a manufacturer, the action must Federal Aviation Administration be accomplished using a method approved and Propeller Standards Branch, 1200 by the Manager, New York ACO Branch, District Avenue, Burlington, MA. For FAA; or Transport Canada Civil Aviation 14 CFR Part 39 information on the availability of this (TCCA); or Bombardier, Inc.’s TCCA Design [Docket No. FAA–2019–0042; Product material at the FAA, call 781–238–7759. Approval Organization (DAO). If approved by Identifier 2018–NE–25–AD; Amendment 39– It is also available on the internet at the DAO, the approval must include the 19548; AD 2019–02–01] http://www.regulations.gov by searching DAO-authorized signature. for and locating Docket No. FAA–2019– RIN 2120–AA64 (j) Related Information 0042. (1) Refer to Mandatory Continuing Airworthiness Directives; General Examining the AD Docket Airworthiness Information (MCAI) Canadian Electric Company Turbofan Engines AD CF–2017–21R1, dated June 28, 2017, for You may examine the AD docket on related information. This MCAI may be AGENCY: Federal Aviation the internet at http:// found in the AD docket on the internet at Administration (FAA), DOT. www.regulations.gov by searching for
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and locating Docket No. FAA–2019– cases within the reduced compliance AD without providing an opportunity 0042; or in person at Docket Operations times could result in failure of the HPT for public comments prior to adoption. between 9 a.m. and 5 p.m., Monday case resulting in the unsafe condition The FAA has found that the risk to the through Friday, except Federal holidays. identified above. flying public justifies waiving notice The AD docket contains this final rule, and comment prior to adoption of this the regulatory evaluation, any Related Service Information Under 1 CFR Part 51 rule because of a quality escape at a comments received, and other manufacturing facility involving information. The street address for We reviewed GE Service Bulletin (SB) unapproved rework on HPT cases, Docket Operations (phone: 800–647– GEnx–2B S/B 72–0360, Revision 04, which could result in failure of the HPT ADDRESSES dated December 4, 2018, and GE SB 5527) is in the section. case and subsequent engine fire and Comments will be available in the AD GEnx–1B S/B 72–0424, Revision 04, damage to the airplane. Additionally, docket shortly after receipt. dated December 3, 2018. This service the compliance time for the required information describes procedures for FOR FURTHER INFORMATION CONTACT: action is shorter than the time necessary removing the affected HPT cases from Herman Mak, Aerospace Engineer, ECO for the public to comment and for Branch, FAA, 1200 District Avenue, the engine. GE SB GEnx–1B S/B 72– publication of the final rule. Therefore, Burlington, MA 01803; phone: 781– 0424 is effective for GEnx–1B engines we find good cause that notice and 238–7147; fax: 781–238–7199; email: with the serial numbers of HPT cases [email protected]. listed therein. GE SB GEnx–2B S/B 72– opportunity for prior public comment are impracticable. In addition, for the SUPPLEMENTARY INFORMATION: 0360 is effective for GEnx–2B engines with the serial numbers of HPT cases reasons stated above, we find that good Discussion listed therein. This service information cause exists for making this amendment We issued AD 2018–16–07, is reasonably available because the effective in less than 30 days. Amendment 39–19347 (83 FR 36724, interested parties have access to it Comments Invited July 31, 2018) (‘‘AD 2018–16–07’’), for through their normal course of business certain GE GEnx–1B54, –1B58, –1B64, or by the means identified in the This AD is a final rule that involves –1B67, –1B70, –1B54/P1, –1B58/P1, ADDRESSES section. requirements affecting flight safety and –1B64/P1, –1B67/P1, –1B70/P1, –1B54/ Other Related Service Information was not preceded by notice and an P2, –1B58/P2, –1B64/P2, –1B67/P2, opportunity for public comment. –1B70/P2, –1B70C/P1, –1B70/72/P1, We reviewed Inspection 001, Subtask However, we invite you to send any –1B70/75/P1, –1B74/75/P1, –1B75/P1, 72–52–01–230–001, of GEnx–1B written data, views, or arguments about –1B70C/P2, –1B70/72/P2, –1B70/75/P2, Cleaning, Inspection, and Repair this final rule. Send your comments to Manual GEK112862, Rev 27, dated April –1B74/75/P2, –1B75/P2, –1B76/P2, an address listed under the ADDRESSES 30, 2018, and GEnx–2B Cleaning, –1B76A/P2, –1B78/P2, –2B67, –2B67B, section. Include the docket number and –2B67/P turbofan engines. AD Inspection, and Repair Manual FAA–2019–0042 and Product Identifier 2018–16–07 required removal of GEK114120, Rev 20, dated April 30, 2018–NE–25–AD at the beginning of affected HPT cases from service and 2018. These manuals provide guidance your comments. We specifically invite their replacement with a part eligible for for conducting Class A fluorescent installation. AD 2018–16–07 was penetrant inspections. comments on the overall regulatory, prompted by the discovery of a quality economic, environmental, and energy FAA’s Determination escape at a manufacturing facility aspects of this final rule. We will involving unapproved reworks on HPT We are issuing this AD because we consider all comments received by the cases. We issued AD 2018–16–07 to evaluated all the relevant information closing date and may amend this final address failure of the HPT case, which and determined the unsafe condition rule because of those comments. could result in engine fire and damage described previously is likely to exist or We will post all comments we to the airplane. develop in other products of the same receive, without change, to http:// type design. Actions Since AD 2018–16–07 was www.regulations.gov, including any Issued AD Requirements personal information you provide. We will also post a report summarizing each Since we issued AD 2018–16–07, we This AD requires removal of the substantive verbal contact we receive have received new data from the affected HPT cases from service and about this final rule. manufacturer and have determined that their replacement with a part eligible for certain HPT cases may have a reduced installation. Costs of Compliance fatigue life than previously determined. Because of this reduced fatigue life, the FAA’s Justification and Determination We estimate that this AD affects 7 HPT cases must be removed and of the Effective Date engines installed on airplanes of U.S. replaced at reduced compliance times. An unsafe condition exists that registry. We estimate the following costs Failure to remove and replace the HPT requires the immediate adoption of this to comply with this AD:
ESTIMATED COSTS
Cost per Cost on U.S. Action Labor cost Parts cost product operators
Removal and replacement of HPT cases ...... 0 work-hours × $85 per hour = $0 ...... $362,400 $362,400 $2,536,800
Authority for This Rulemaking rules on aviation safety. Subtitle I, Aviation Programs, describes in more Title 49 of the United States Code Section 106, describes the authority of detail the scope of the Agency’s specifies the FAA’s authority to issue the FAA Administrator. Subtitle VII, authority.
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We are issuing this rulemaking under (3) Will not affect intrastate aviation P2, –1B64/P2, –1B67/P2, –1B70/P2, –1B70C/ the authority described in Subtitle VII, in Alaska, and P1, –1B70/72/P1, –1B70/75/P1, –1B74/75/P1, Part A, Subpart III, Section 44701, (4) Will not have a significant –1B75/P1, –1B70C/P2, –1B70/72/P2, –1B70/ ‘‘General requirements.’’ Under that economic impact, positive or negative, 75/P2, –1B74/75/P2, –1B75/P2, –1B76/P2, section, Congress charges the FAA with on a substantial number of small entities –1B76A/P2, –1B78/P2, –2B67, –2B67B, and –2B67/P turbofan engines with a high- promoting safe flight of civil aircraft in under the criteria of the Regulatory Flexibility Act. pressure turbine (HPT) stator case (HPT air commerce by prescribing regulations case), part number (P/N) 2302M90G04 for practices, methods, and procedures List of Subjects in 14 CFR Part 39 installed, and with any serial number (S/N) the Administrator finds necessary for listed in Table 1, 2, or 3, in the Planning safety in air commerce. This regulation Air transportation, Aircraft, Aviation Information section of GE Service Bulletin is within the scope of that authority safety, Incorporation by reference, (SB) GEnx–2B S/B 72–0360, Revision 04, because it addresses an unsafe condition Safety. dated December 4, 2018, or GE SB GEnx–1B that is likely to exist or develop on Adoption of the Amendment S/B 72–0424, Revision 04, dated December 3, products identified in this rulemaking 2018, installed. Accordingly, under the authority action. delegated to me by the Administrator, (d) Subject This AD is issued in accordance with the FAA amends 14 CFR part 39 as Joint Aircraft System Component (JASC) authority delegated by the Executive follows: Code 7250, Turbine section. Director, Aircraft Certification Service, as authorized by FAA Order 8000.51C. PART 39—AIRWORTHINESS (e) Unsafe Condition In accordance with that order, issuance DIRECTIVES This AD was prompted by the discovery of of ADs is normally a function of the a quality escape at a manufacturing facility Compliance and Airworthiness ■ 1. The authority citation for part 39 involving unapproved rework on HPT cases. Division, but during this transition continues to read as follows: We are issuing this AD to prevent failure of period, the Executive Director has the HPT case and subsequent engine fire and Authority: 49 U.S.C. 106(g), 40113, 44701. damage to the airplane. delegated the authority to issue ADs applicable to engines, propellers, and § 39.13 [Amended] (f) Compliance associated appliances to the Manager, ■ 2. The FAA amends § 39.13 by Comply with this AD within the Engine and Propeller Standards Branch, removing Airworthiness Directive (AD) compliance times specified, unless already Policy and Innovation Division. 2018–16–07, Amendment 39–19347 (83 done. Regulatory Findings FR 36724, July 31, 2018), and adding the (g) Required Actions following new AD: We have determined that this AD will (1) For HPT cases listed in Planning 2019–02–01 General Electric Company: not have federalism implications under Information, Table 1 or 2, of GE SB GEnx– Amendment 39–19548; Docket No. 2B S/B 72–0360, Revision 04, dated Executive Order 13132. This AD will FAA–2019–0042; Product Identifier December 4, 2018, or GE SB GEnx–1B S/B not have a substantial direct effect on 2018–NE–25–AD. 72–0424, Revision 04, dated December 3, the States, on the relationship between (a) Effective Date 2018, determine the lesser of the following: the national government and the States, Cycles since new (CSN) or cycles since Class This AD is effective February 25, 2019. or on the distribution of power and A fluorescent penetrant inspection (CSFPI) of responsibilities among the various (b) Affected ADs the entire HPT case. levels of government. This AD replaces AD 2018–16–07, (2) Using the determination made in For the reasons discussed above, I Amendment 39–19347 (83 FR 36724, July 31, paragraph (g)(1) of this AD, remove from certify that this AD: 2018) (‘‘AD 2018–16–07’’). service the HPT case before exceeding the applicable cycles in service accrued after (1) Is not a ‘‘significant regulatory (c) Applicability August 15, 2018, the effective date of AD action’’ under Executive Order 12866, This AD applies to General Electric 2018–16–07, as specified in Table 1 to (2) Is not a ‘‘significant rule’’ under Company (GE) GEnx–1B54, –1B58, –1B64, paragraph (g)(2) of this AD. Replace the DOT Regulatory Policies and Procedures –1B67, –1B70, –1B54/P1, –1B58/P1, –1B64/ removed HPT case with a part eligible for (44 FR 11034, February 26, 1979), P1, –1B67/P1, –1B70/P1, –1B54/P2, –1B58/ installation.
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(3) For HPT cases listed in Planning (4) Using the determination made in removed HPT case with a part eligible for Information, Table 3, of GE SB GEnx–2B S/ paragraph (g)(3) of this AD, remove from installation. B 72–0360, Revision 04, dated December 4, service the HPT case before exceeding the 2018, determine the lesser of the following: cycles in service specified in Table 2 to CSN or CSFPI of the entire HPT case. paragraph (g)(4) of this AD. Replace the
(5) For HPT cases listed in Planning (6) Using the determination made in removed HPT case with a part eligible for Information, Table 3, of GE SB GEnx–1B S/ paragraph (g)(5) of this AD, remove from installation. B 72–0424, Revision 04, dated December 3, service the HPT case before exceeding the 2018, determine the lesser of the following: cycles in service specified in Table 3 to CSN or CSFPI of the entire HPT case. paragraph (g)(6) of this AD. Replace the
(h) Installation Prohibition or lacking a principal inspector, the manager (ii) GE SB GEnx–1B S/B 72–0424, Revision After the effective date of this AD, do not of the local flight standards district office/ 04, dated December 3, 2018. install any affected HPT case onto any engine certificate holding district office. (3) For GE service information identified in if the HPT case has been disassembled to this AD, contact General Electric Company, (j) Related Information piece-part level. Affected HPT cases are GE Aviation, Room 285, 1 Neumann Way, identified in paragraphs (g)(1), (g)(3), and For more information about this AD, Cincinnati, OH 45215; phone: 513–552–3272; (g)(5) of this AD. Piece-part level is defined contact Herman Mak, Aerospace Engineer, email: [email protected]. as when the part is completely disassembled. ECO Branch, FAA, 1200 District Avenue, (4) You may view this service information Burlington, MA 01803; phone: 781–238– (i) Alternative Methods of Compliance at the FAA, Engine and Propeller Standards (AMOCs) 7147; fax: 781–238–7199; email: Branch, 1200 District Avenue, Burlington, [email protected]. (1) The Manager, ECO Branch, FAA, has MA. For information on the availability of the authority to approve AMOCs for this AD, (k) Material Incorporated by Reference this material at the FAA, call 781–238–7759. if requested using the procedures found in 14 (1) The Director of the Federal Register (5) You may view this service information CFR 39.19. In accordance with 14 CFR 39.19, approved the incorporation by reference that is incorporated by reference at the send your request to your principal inspector (IBR) of the service information listed in this National Archives and Records or local Flight Standards District Office, as paragraph under 5 U.S.C. 552(a) and 1 CFR Administration (NARA). For information on appropriate. If sending information directly the availability of this material at NARA, call to the manager of the certification office, part 51. 202–741–6030, or go to: http:// send it to the attention of the person (2) You must use this service information identified in paragraph (j) of this AD. You as applicable to do the actions required by www.archives.gov/federal-register/cfr/ibr- may email your request to ANE–AD–AMOC@ this AD, unless the AD specifies otherwise. locations.html. faa.gov. (i) General Electric Company (GE) Service (2) Before using any approved AMOC, Bulletin (SB) GEnx–2B S/B 72–0360, notify your appropriate principal inspector, Revision 04, dated December 4, 2018.
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Issued in Burlington, Massachusetts, on 11.43 and 11.45, by any of the following facility involving unapproved welds on February 1, 2019. methods: HPT cases. We issued AD 2018–22–05 Robert J. Ganley, • Federal eRulemaking Portal: Go to to address failure of the HPT case, Manager, Engine and Propeller Standards http://www.regulations.gov. Follow the which could result in engine fire and Branch, Aircraft Certification Service. instructions for submitting comments. damage to the airplane. [FR Doc. 2019–01589 Filed 2–7–19; 8:45 am] • Fax: 202–493–2251. Actions Since AD 2018–22–05 Was BILLING CODE 4910–13–P • Mail: U.S. Department of Issued Transportation, Docket Operations, M– 30, West Building Ground Floor, Room Since we issued AD 2018–22–05, DEPARTMENT OF TRANSPORTATION W12–140, 1200 New Jersey Avenue SE, another undocumented weld has been Washington, DC 20590. found on a part that was previously Federal Aviation Administration • Hand Delivery: Deliver to Mail considered to have enough address above between 9 a.m. and 5 manufacturing data to perform an 14 CFR Part 39 p.m., Monday through Friday, except updated life analysis. The new findings [Docket No. FAA–2019–0050; Product Federal holidays. created more uncertainty about the Identifier 2018–NE–35–AD; Amendment 39– For service information identified in manufacturing data, creating the need 19551; AD 2019–02–04] this final rule, contact Engine Alliance, for an updated risk analysis with the new information. As a result, we have RIN 2120–AA64 411 Silver Lane, East Hartford, CT 06118; phone: 800–565–0140; email: determined that the remaining cycles Airworthiness Directives; Engine [email protected]; website: allowed on the affected HPT cases must Alliance Turbofan Engines www.engineallianceportal.com. You be reduced and additional affected parts may view this service information at the were identified that must be removed AGENCY: Federal Aviation FAA, Engine and Propeller Standards and replaced. Administration (FAA), DOT. Branch, 1200 District Avenue, Related Service Information Under 1 ACTION: Final rule; request for Burlington, MA 01803. For information CFR Part 51 comments. on the availability of this material at the FAA, call 781–238–7759. It is also We reviewed Engine Alliance Alert SUMMARY: We are superseding available on the internet at http:// Service Bulletin EAGP7–A72–401, Airworthiness Directive (AD) 2018–22– www.regulations.gov by searching for Revision No. 1, dated December 13, 05, which applied to Engine Alliance and locating Docket No. FAA–2019– 2018, which describes procedures for (EA) GP7270, GP7272, and GP7277 0050. removing and replacing the affected turbofan engines with a certain high- HPT case within the identified cycles. pressure turbine (HPT) case installed. Examining the AD Docket We also reviewed Engine Alliance AD 2018–22–05 required removal of You may examine the AD docket on Service Bulletin EAGP7–72–399, dated affected HPT stator cases (HPT cases) the internet at http:// June 4, 2018, which describes from service and their replacement with www.regulations.gov by searching for procedures for removing and replacing a part eligible for installation. This AD and locating Docket No. FAA–2019– the affected HPT case within the retains these requirements, reduces the 0050; or in person at Docket Operations specified part cycles since new or part compliance times for the removal and between 9 a.m. and 5 p.m., Monday cycles since overhaul. replacement of certain HPT cases, and through Friday, except Federal holidays. This service information is reasonably identifies additional affected parts that The AD docket contains this final rule, available because the interested parties must be removed and replaced. This AD the regulatory evaluation, any have access to it through their normal was prompted by the discovery of a comments received, and other course of business or by the means quality escape at a manufacturing information. The street address for identified in the ADDRESSES section. facility involving unapproved welds on Docket Operations (phone: 800–647– FAA’s Determination HPT cases. Subsequent additional 5527) is in the ADDRESSES section. findings suggested the need for an Comments will be available in the AD We are issuing this AD because we updated risk analysis, resulting in docket shortly after receipt. evaluated all the relevant information reduced compliance times for those and determined the unsafe condition FOR FURTHER INFORMATION CONTACT: described previously is likely to exist or parts and the identification of additional Matthew Smith, Aerospace Engineer, affected parts. We are issuing this AD to develop in other products of the same ECO Branch, FAA, 1200 District type design. address the unsafe condition on these Avenue, Burlington, MA 01803; phone: products. 781–238–7735; fax: 781–238–7199; AD Requirements DATES: This AD is effective February 25, email: [email protected]. This AD requires removal of the 2019. SUPPLEMENTARY INFORMATION: affected HPT cases from service and The Director of the Federal Register their replacement with a part eligible for Discussion approved the incorporation by reference installation. of a certain publication listed in this AD We issued AD 2018–22–05, as of February 25, 2019. Amendment 39–19478 (83 FR 55816, FAA’s Justification and Determination The Director of the Federal Register November 8, 2018) (‘‘AD 2018–22–05’’), of the Effective Date approved the incorporation by reference for EA GP7270, GP7272, and GP7277 An unsafe condition exists that of certain other publications listed in turbofan engines with a certain HPT requires the immediate adoption of this this AD as of November 23, 2018 (83 FR case installed. AD 2018–22–05 required AD without providing an opportunity 55816, November 8, 2018). removal of affected HPT cases from for public comments prior to adoption. We must receive any comments on service and their replacement with a The FAA has found that the risk to the this AD by March 25, 2019. part eligible for installation. AD 2018– flying public justifies waiving notice ADDRESSES: You may send comments, 22–05 was prompted by the discovery of and comment prior to adoption of this using the procedures found in 14 CFR a quality escape at a manufacturing rule because failure of the HPT case
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could result in engine fire and damage Comments Invited consider all comments received by the to the airplane, and the compliance time This AD is a final rule that involves closing date and may amend this final for the required action is shorter than requirements affecting flight safety and rule because of those comments. the time necessary for public comment was not preceded by notice and an We will post all comments we and publication of the final rule. opportunity for public comment. receive, without change, to http:// Additionally, no domestic operators However, we invite you to send any www.regulations.gov, including any currently use this product. We find good written data, views, or arguments about personal information you provide. We cause that notice and opportunity for this final rule. Send your comments to will also post a report summarizing each prior public comment are impracticable an address listed under the ADDRESSES substantive verbal contact we receive and unnecessary. In addition, for the section. Include the docket number about this final rule. reasons stated above, we find that good FAA–2019–0050 and Product Identifier Costs of Compliance cause exists for making this amendment 2018–NE–35–AD at the beginning of effective in less than 30 days. your comments. We specifically invite We estimate that this AD affects 0 comments on the overall regulatory, engines installed on airplanes of U.S. economic, environmental, and energy registry. We estimate the following costs aspects of this final rule. We will to comply with this AD:
ESTIMATED COSTS
Cost per Cost on U.S. Action Labor cost Parts cost product operators
HPT case replacement ...... 20 work-hours × $85 per hour = $1,700 ...... $339,400 $341,100 $0
Authority for This Rulemaking not have a substantial direct effect on FR 55816, November 8, 2018), and Title 49 of the United States Code the States, on the relationship between adding the following new AD: specifies the FAA’s authority to issue the national government and the States, 2019–02–04 Engine Alliance: Amendment rules on aviation safety. Subtitle I, or on the distribution of power and 39–19551; Docket No. FAA–2019–0050; Section 106, describes the authority of responsibilities among the various Product Identifier 2018–NE–35–AD. levels of government. the FAA Administrator. Subtitle VII, (a) Effective Date For the reasons discussed above, I Aviation Programs, describes in more This AD is effective February 25, 2019. detail the scope of the Agency’s certify that this AD: authority. (1) Is not a ‘‘significant regulatory (b) Affected ADs We are issuing this rulemaking under action’’ under Executive Order 12866, This AD replaces AD 2018–22–05, the authority described in Subtitle VII, (2) Is not a ‘‘significant rule’’ under Amendment 39–19478 (83 FR 55816, November 8, 2018) (‘‘AD 2018–22–05’’). Part A, Subpart III, Section 44701, DOT Regulatory Policies and Procedures ‘‘General requirements.’’ Under that (44 FR 11034, February 26, 1979), (c) Applicability section, Congress charges the FAA with (3) Will not affect intrastate aviation This AD applies to Engine Alliance (EA) promoting safe flight of civil aircraft in in Alaska, and GP7270, GP7272, and GP7277 turbofan air commerce by prescribing regulations (4) Will not have a significant engines, with a high-pressure turbine (HPT) for practices, methods, and procedures economic impact, positive or negative, stator case (HPT case), part number (P/N) on a substantial number of small entities 2060M40G02 or 2137M29G01 installed, and the Administrator finds necessary for with HPT case serial numbers (S/Ns) listed safety in air commerce. This regulation under the criteria of the Regulatory in Planning Information, Table 1, of Engine is within the scope of that authority Flexibility Act. Alliance Alert Service Bulletin EAGP7–A72– because it addresses an unsafe condition List of Subjects in 14 CFR Part 39 401, Revision 1, dated December 13, 2018, that is likely to exist or develop on and in Planning Information, Table 1, of products identified in this rulemaking Air transportation, Aircraft, Aviation Engine Alliance Service Bulletin EAGP7–72– action. safety, Incorporation by reference, 399, dated June 4, 2018. This AD is issued in accordance with Safety. (d) Subject authority delegated by the Executive Adoption of the Amendment Joint Aircraft System Component (JASC) Director, Aircraft Certification Service, Code 7250, Turbine section. as authorized by FAA Order 8000.51C. Accordingly, under the authority In accordance with that order, issuance delegated to me by the Administrator, (e) Unsafe Condition of ADs is normally a function of the the FAA amends 14 CFR part 39 as This AD was prompted by the discovery of Compliance and Airworthiness follows: a quality escape at a manufacturing facility Division, but during this transition involving unapproved welds on HPT cases. We are issuing this AD to address failure of period, the Executive Director has PART 39—AIRWORTHINESS DIRECTIVES the HPT case, which could result in engine delegated the authority to issue ADs fire and damage to the airplane. applicable to engines, propellers, and ■ associated appliances to the Manager, 1. The authority citation for part 39 (f) Compliance Engine and Propeller Standards Branch, continues to read as follows: Comply with this AD within the Policy and Innovation Division. Authority: 49 U.S.C. 106(g), 40113, 44701. compliance times specified, unless already done. Regulatory Findings § 39.13 [Amended] (g) Required Actions We have determined that this AD will ■ 2. The FAA amends § 39.13 by (1) For HPT cases listed in Planning not have federalism implications under removing Airworthiness Directive (AD) Information, Table 1, of Engine Alliance Executive Order 13132. This AD will 2018–22–05, Amendment 39–19478 (83 Alert Service Bulletin EAGP7–A72–401,
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Revision No. 1, dated December 13, 2018, December 13, 2018, after the effective date of 4, 2018, remove the affected HPT cases from remove the affected HPT case from service this AD. service, using the number of part cycles since within the cycles identified in Table 1 of (2) For HPT cases listed in Planning new (PCSN) or part cycles since overhaul Engine Alliance Alert Service Bulletin Information, Table 1, of Engine Alliance (PCSO), whichever is less, as specified in EAGP7–A72–401, Revision No. 1, dated Service Bulletin EAGP7–72–399, dated June Table 1 to paragraph (g)(2) of this AD.
(3) Replace the removed HPT case with a (2) You must use this service information DEPARTMENT OF TRANSPORTATION part eligible for installation before further as applicable to do the actions required by flight. this AD, unless the AD specifies otherwise. Federal Aviation Administration (h) Definition (3) The following service information was approved for IBR on February 25, 2019. 14 CFR Part 39 For the purpose of this AD, a ‘‘part eligible (i) Engine Alliance Alert Service Bulletin for installation’’ is any HPT case not [Docket No. FAA–2018–0735; Product EAGP7–A72–401, Revision No. 1, dated identified in paragraph (c) of this AD or an Identifier 2018–NE–26–AD; Amendment 39– HPT case listed in this AD that has been December 13, 2018. 19505; AD 2018–24–01] inspected and repaired by a method (ii) [Reserved] RIN 2120–AA64 approved by the Manager, ECO Branch, FAA. (4) The following service information was approved for IBR on November 23, 2018 (83 (i) Alternative Methods of Compliance FR 55816, November 8, 2018). Airworthiness Directives; International (AMOCs) (i) Engine Alliance Service Bulletin Aero Engines Turbofan Engines (1) The Manager, ECO Branch, FAA, has EAGP7–72–399, dated June 4, 2018. AGENCY: Federal Aviation the authority to approve AMOCs for this AD, (ii) [Reserved] Administration (FAA), DOT. if requested using the procedures found in 14 (5) For service information identified in ACTION: Final rule. CFR 39.19. In accordance with 14 CFR 39.19, this AD, contact Engine Alliance, 411 Silver send your request to your principal inspector Lane, East Hartford, CT 06118; phone: 800– SUMMARY: We are adopting a new or local Flight Standards District Office, as 565–0140; email: [email protected]; appropriate. If sending information directly airworthiness directive (AD) for certain website: www.engineallianceportal.com. to the manager of the certification office, International Aero Engines (IAE) send it to the attention of the person (6) You may view this service information PW1100G–JM turbofan engine models identified in paragraph (j) of this AD. You at FAA, Engine and Propeller Standards with certain low-pressure turbine (LPT) may email your request to ANE-AD-AMOC@ Branch, 1200 District Avenue, Burlington, 1st- and 3rd-stage disks installed. This faa.gov. MA 01803. For information on the AD was prompted by a report of (2) Before using any approved AMOC, availability of this material at the FAA, call manufacturing defects found on notify your appropriate principal inspector, 781–238–7759. delivered LPT 1st- and 3rd-stage disks. or lacking a principal inspector, the manager (7) You may view this service information This AD requires removing the LPT 1st- of the local flight standards district office/ that is incorporated by reference at the or 3rd-stage disk from service and certificate holding district office. National Archives and Records replacing with a part eligible for (j) Related Information Administration (NARA). For information on installation. We are issuing this AD to the availability of this material at NARA, call For more information about this AD, address the unsafe condition on these 202–741–6030, or go to: http:// contact Matthew Smith, Aerospace Engineer, products. www.archives.gov/federal-register/cfr/ibr- ECO Branch, FAA, 1200 District Avenue, locations.html. DATES: This AD is effective March 15, Burlington, MA 01803; phone: 781–238– 2019. 7735; fax: 781–238–7199; email: Issued in Burlington, Massachusetts, on [email protected]. February 5, 2019. Examining the AD Docket (k) Material Incorporated by Reference Robert J. Ganley, You may examine the AD docket on (1) The Director of the Federal Register Manager, Engine and Propeller Standards the internet at http:// approved the incorporation by reference Branch, Aircraft Certification Service. www.regulations.gov by searching for (IBR) of the service information listed in this [FR Doc. 2019–01614 Filed 2–7–19; 8:45 am] and locating Docket No. FAA–2018– paragraph under 5 U.S.C. 552(a) and 1 CFR BILLING CODE 4910–13–P 0735 or in person at Docket Operations part 51. between 9 a.m. and 5 p.m., Monday
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through Friday, except Federal holidays. replacing with a part eligible for safety objectives of this AD. We also The AD docket contains this final rule, installation. We are issuing this AD to removed the Definitions paragraph from the regulatory evaluation, any address the unsafe condition on these this AD since it is no longer necessary. comments received, and other products. Request To Revise Cost of Compliance information. The address for Docket Comments Operations (phone: 800–647–5527) is An individual commenter requested U.S. Department of Transportation, We gave the public the opportunity to that we define the costs associated with Docket Operations, M–30, West participate in developing this final rule. the removal of the LPT 1st- or 3rd grade Building Ground Floor, Room W12–140, The following presents the comments disks from each unit. 1200 New Jersey Avenue SE, received on the NPRM and the FAA’s We disagree. We did not define a Washington, DC 20590. response to each comment. removal cost estimate because removal FOR FURTHER INFORMATION CONTACT: of the LPT 1st- or 3rd grade disks occurs Request To Change Compliance Time Kevin M. Clark, Aerospace Engineer, when the unit is ‘‘at the next piece-part ECO Branch, FAA, 1200 District IAE requested that we change the exposure’’ level. Therefore, no Avenue, Burlington, MA 01803; phone: compliance time for removing from additional cost is incurred by removal of 781–238–7088; fax: 781–238–7199; service the LPT 1st- and 3rd-stage disks the LPT disks. from ‘‘at the next shop visit’’ to ‘‘within email: [email protected]. Conclusion SUPPLEMENTARY INFORMATION: a service period.’’ IAE states its safety risk analysis shows that the prescribed We reviewed the relevant data, Discussion corrective action exceeds all required considered the comments received, and We issued a notice of proposed safety risk criteria. Therefore, requiring determined that air safety and the rulemaking (NPRM) to amend 14 CFR removal and replacement of the LPT 1st- public interest require adopting this part 39 by adding an AD that would and 3rd-stage disks with serial numbers final rule with the change described apply to all International Aero Engines (S/Ns) listed in Figure 1 to paragraph (g) previously. We have determined that (IAE) PW1133G–JM, PW1133GA–JM, of this AD ‘‘at the next shop visit’’ is these minor changes: PW1130G–JM, PW1127G–JM, overly restrictive. • Are consistent with the intent that PW1127GA–JM, PW1127G1–JM, We partially agree. We agree that was proposed in the NPRM for PW1124G–JM, PW1124G1–JM, and requiring removal and replacement of addressing the unsafe condition; and PW1122G–JM turbofan engines with the LPT 1st- and 3rd-stage disks with S/ • Do not add any additional burden certain LPT 1st- and 3rd-stage disks Ns listed in Figure 1 to paragraph (g) of upon the public than was already installed. The NPRM published in the this AD ‘‘at the next shop visit’’ may be proposed in the NPRM. Federal Register on September 7, 2018 overly restrictive based on the risk We also determined that these (83 FR 45359). The NPRM was presented in the safety risk assessment. changes will not increase the economic prompted by a report that multiple LPT We disagree with using the words burden on any operator or increase the 1st- and 3rd-stage disks were delivered ‘‘within a service period’’ because this scope of this final rule. before the ingot lot was rejected due to might allow reinstallation of parts that Costs of Compliance material inclusion. The suspect LPT 1st- do not conform to the approved type and 3rd-stage disks may include defects design. Therefore, we changed the We estimate that this AD affects 0 that may not have been discovered references in paragraphs (g)(1) and (2) of engines installed on airplanes of U.S. during inspections. The NPRM this AD from ‘‘at the next shop visit’’ to registry. proposed to require removing the LPT ‘‘at the next piece-part exposure.’’ We We estimate the following costs to 1st- or 3rd-stage disk from service and find that this change still meets the comply with this AD:
ESTIMATED COSTS
Cost per Cost on U.S. Action Labor cost Parts cost product operators
Remove and replace LPT 1st- or 3rd-stage disk ...... 0 work-hours × $85 per hour = $0 .. $210,000 $210,000 $0
Authority for This Rulemaking the Administrator finds necessary for applicable to engines, propellers, and safety in air commerce. This regulation associated appliances to the Manager, Title 49 of the United States Code is within the scope of that authority Engine and Propeller Standards Branch, specifies the FAA’s authority to issue because it addresses an unsafe condition Policy and Innovation Division. rules on aviation safety. Subtitle I, that is likely to exist or develop on section 106, describes the authority of Regulatory Findings the FAA Administrator. Subtitle VII: products identified in this rulemaking Aviation Programs, describes in more action. This AD will not have federalism detail the scope of the Agency’s This AD is issued in accordance with implications under Executive Order authority. authority delegated by the Executive 13132. This AD will not have a We are issuing this rulemaking under Director, Aircraft Certification Service, substantial direct effect on the States, on the authority described in Subtitle VII, as authorized by FAA Order 8000.51C. the relationship between the national Part A, Subpart III, Section 44701: In accordance with that order, issuance government and the States, or on the ‘‘General requirements.’’ Under that of ADs is normally a function of the distribution of power and section, Congress charges the FAA with Compliance and Airworthiness responsibilities among the various promoting safe flight of civil aircraft in Division, but during this transition levels of government. air commerce by prescribing regulations period, the Executive Director has For the reasons discussed above, I for practices, methods, and procedures delegated the authority to issue ADs certify that this AD:
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(1) Is not a ‘‘significant regulatory Authority: 49 U.S.C. 106(g), 40113, 44701. (d) Subject action’’ under Executive Order 12866, Joint Aircraft System Component (JASC) § 39.13 [Amended] (2) Is not a ‘‘significant rule’’ under Code 7250, Turbine Section. DOT Regulatory Policies and Procedures ■ 2. The FAA amends § 39.13 by adding (e) Unsafe Condition (44 FR 11034, February 26, 1979), the following new airworthiness This AD was prompted by a report of (3) Will not affect intrastate aviation directive (AD): in Alaska, and manufacturing defects found on delivered (4) Will not have a significant 2018–24–01 International Aero Engines: LPT 1st- and 3rd-stage disks. We are issuing economic impact, positive or negative, Amendment 39–19505; Docket No. this AD to prevent failure of the LPT 1st- or 3rd-stage disk. The unsafe condition, if not on a substantial number of small entities FAA–2018–0735; Product Identifier 2018–NE–26–AD. addressed, could result in uncontained LPT under the criteria of the Regulatory 1st- or 3rd-stage disk release, damage to the Flexibility Act. (a) Effective Date engine, and damage to the airplane. List of Subjects in 14 CFR Part 39 This AD is effective March 15, 2019. (f) Compliance Air transportation, Aircraft, Aviation (b) Affected ADs Comply with this AD within the compliance times specified, unless already safety, Incorporation by reference, None. Safety. done. (c) Applicability Adoption of the Amendment (g) Required Actions This AD applies to International Aero Accordingly, under the authority Remove from service the LPT 1st- and 3rd- Engines (IAE) PW1133G–JM, PW1133GA–JM, stage disk within 30 days after the effective delegated to me by the Administrator, PW1130G–JM, PW1127G–JM, PW1127GA– date of this AD, or as identified in paragraphs the FAA amends 14 CFR part 39 as JM, PW1127G1–JM, PW1124G–JM, (g)(1) or (2) of this AD, whichever occurs follows: PW1124G1–JM, and PW1122G–JM turbofan later, and replace with a part eligible for engines with a low-pressure turbine (LPT) installation. PART 39—AIRWORTHINESS 3rd-stage disk with a serial number (S/N) (1) Remove the LPT 3rd-stage disk with a DIRECTIVES listed in Figure 1 to paragraph (g) of this AD serial number (S/N) listed in Figure 1 to or an LPT 1st-stage disk with an S/N listed paragraph (g) of this AD at the next piece-part ■ 1. The authority citation for part 39 in Figure 2 to paragraph (g) of this AD, exposure, not to exceed 4,800 cycles since continues to read as follows: installed. new (CSN).
(2) Remove the LPT 1st-stage disk with an AD at the next piece-part exposure, not to S/N listed in Figure 2 to paragraph (g) of this exceed 2,240 CSN.
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(h) Alternative Methods of Compliance Jackman, ME, to accommodate new area authority of the FAA Administrator. (AMOCs) navigation (RNAV) global positioning Subtitle VII, Aviation Programs, (1) The Manager, ECO Branch, FAA, has system (GPS) standard instrument describes in more detail the scope of the the authority to approve AMOCs for this AD, approach procedures serving the airport. agency’s authority. This rulemaking is if requested using the procedures found in 14 Also, this action removes duplicative promulgated under the authority CFR 39.19. In accordance with 14 CFR 39.19, Class E airspace for Newton Field, ME. described in Subtitle VII, Part A, send your request to your principal inspector Controlled airspace is necessary for the Subpart I, Section 40103. Under that or local Flight Standards District Office, as appropriate. If sending information directly safety and management of instrument section, the FAA is charged with to the manager of the certification office, flight rules (IFR) operations at this prescribing regulations to assign the use send it to the attention of the person airport. This action also updates the of airspace necessary to ensure the identified in paragraph (i) of this AD. You geographic coordinates of this airport to safety of aircraft and the efficient use of may email your request to: ANE-AD-AMOC@ be in concert with the FAA’s airspace. This regulation is within the faa.gov. aeronautical database. scope of that authority as it amends (2) Before using any approved AMOC, DATES: Effective 0901 UTC, April 25, Class E airspace at Newton Field, notify your appropriate principal inspector, 2019. The Director of the Federal Jackman, ME, to support IFR operations or lacking a principal inspector, the manager at this airport. of the local flight standards district office/ Register approves this incorporation by certificate holding district office. reference action under Title 1 Code of History Federal Regulations part 51, subject to (i) Related Information the annual revision of FAA Order The FAA published a notice of For more information about this AD, 7400.11 and publication of conforming proposed rulemaking in the Federal contact Kevin M. Clark, Aerospace Engineer, amendments. Register (83 FR 51897, October 15, ECO Branch, FAA, 1200 District Avenue, 2018) for Docket No. FAA–2015–2892 to ADDRESSES: FAA Order 7400.11C, Burlington, MA 01803; phone: 781–238– amend Class E airspace at Newton Field, Airspace Designations and Reporting 7088; fax: 781–238–7199; email: Jackman, ME to support IFR operations Points, and subsequent amendments can [email protected]. at this airport. be viewed online at http://www.faa.gov/ Interested parties were invited to (j) Material Incorporated by Reference air_traffic/publications/. For further participate in this rulemaking effort by None. information, you can contact the submitting written comments on the Airspace Policy Group, Federal Aviation Issued in Burlington, Massachusetts on proposal to the FAA. No comments January 31, 2019. Administration, 800 Independence were received. Robert J. Ganley, Avenue SW, Washington, DC 20591; Class E airspace designations are Manager, Engine and Propeller Standards telephone: (202) 267–8783. The Order is published in paragraph 6005, of FAA Branch, Aircraft Certification Service. also available for inspection at the Order 7400.11C dated August 13, 2018, [FR Doc. 2019–01127 Filed 2–7–19; 8:45 am] National Archives and Records and effective September 15, 2018, which Administration (NARA). For BILLING CODE 4910–13–P is incorporated by reference in 14 CFR information on the availability of FAA part 71.1. The Class E airspace Order 7400.11C at NARA, call (202) designation listed in this document will DEPARTMENT OF TRANSPORTATION 741–6030, or go to https:// be published subsequently in the Order. www.archives.gov/federal-register/cfr/ Federal Aviation Administration ibr-locations.html. Availability and Summary of FAA Order 7400.11, Airspace Documents for Incorporation by 14 CFR Part 71 Designations and Reporting Points, is Reference [Docket No. FAA–2015–2892; Airspace published yearly and effective on This document amends FAA Order Docket No. 15–ANE–2] September 15. 7400.11C, Airspace Designations and FOR FURTHER INFORMATION CONTACT: John Reporting Points, dated August 13, RIN 2120–AA66 Fornito, Operations Support Group, 2018, and effective September 15, 2018. Amendment of Class E Airspace; Eastern Service Center, Federal Aviation FAA Order 7400.11C is publicly Jackman, ME, and Revocation of Class Administration, 1701 Columbia Avenue, available as listed in the ADDRESSES E Airspace; Newton Field, ME College Park, GA 30337; telephone (404) section of this document. FAA Order 305–6364. 7400.11C lists Class A, B, C, D, and E AGENCY: Federal Aviation SUPPLEMENTARY INFORMATION: airspace areas, air traffic service routes, Administration (FAA), DOT. and reporting points. Authority for This Rulemaking ACTION: Final rule. The FAA’s authority to issue rules The Rule SUMMARY: This action amends Class E regarding aviation safety is found in This amendment to Title 14 Code of airspace extending upward from 700 Title 49 of the United States Code. Federal Regulations (14 CFR) part 71 feet above the surface at Newton Field, Subtitle I, Section 106 describes the amends Class E airspace extending
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upward from 700 feet or more above the Authority: 49 U.S.C. 106(f), 106(g); 40103, operations under instrument flight rules surface within an 12.4-mile (increased 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, at the affected airports. 1959–1963 Comp., p. 389. from a 6-mile) radius of Newton Field, DATES: This rule is effective February 8, Jackman, ME, providing the controlled § 71.1 [Amended] 2019. The compliance date for each airspace required to support the new SIAP, associated Takeoff Minimums, ■ 2. The incorporation by reference in RNAV (GPS) standard instrument and ODP is specified in the amendatory 14 CFR 71.1 of Federal Aviation approach procedures for IFR operations provisions. at this airport. This action also makes an Administration Order 7400.11C, The incorporation by reference of editorial correction to remove the Airspace Designations and Reporting certain publications listed in the duplicate airspace published in the Points, dated August 13, 2018, and regulations is approved by the Director Order under the designation Newton effective September 15, 2018, is of the Federal Register as of February 8, Field, ME. In addition, the geographic amended as follows: 2019. coordinates of the airport are adjusted to Paragraph 6005 Class E Airspace Areas ADDRESSES: Availability of matters coincide with the FAA’s aeronautical Extending Upward From 700 feet or More incorporated by reference in the database. Above the Surface of the Earth. amendment is as follows: * * * * * Regulatory Notices and Analyses For Examination ANE ME E5 Jackman, ME [Amended] The FAA has determined that this 1. U.S. Department of Transportation, regulation only involves an established Newton Field, ME Docket Ops-M30, 1200 New Jersey (Lat. 45°37′58″ N, long. 70°14′56″ W) body of technical regulations for which Avenue SE, West Bldg., Ground Floor, frequent and routine amendments are That airspace extending upward from 700 Washington, DC 20590–0001. feet above the surface within a 12.4-mile necessary to keep them operationally 2. The FAA Air Traffic Organization current. It, therefore: (1) Is not a radius of Newton Field, excluding that airspace outside the United States. Service Area in which the affected ‘‘significant regulatory action’’ under airport is located; Executive Order 12866; (2) is not a ANE ME E5 Newton Field, ME 3. The office of Aeronautical ‘‘significant rule’’ under DOT [Removed] Navigation Products, 6500 South Regulatory Policies and Procedures (44 Issued in College Park, Georgia, on January MacArthur Blvd., Oklahoma City, OK FR 11034; February 26, 1979); and (3) 30, 2019. 73169 or, does not warrant preparation of a Ryan W. Almasy, 4. The National Archives and Records regulatory evaluation as the anticipated Manager, Operations Support Group, Eastern Administration (NARA). For impact is so minimal. Since this is a Service Center, Air Traffic Organization. information on the availability of this routine matter that only affects air traffic [FR Doc. 2019–01492 Filed 2–7–19; 8:45 am] material at NARA, call 202–741–6030, procedures and air navigation, it is or go to: http://www.archives.gov/ BILLING CODE 4910–13–P certified that this rule, when federal_register/code_of_federal_ promulgated, does not have a significant regulations/ibr_locations.html. economic impact on a substantial DEPARTMENT OF TRANSPORTATION number of small entities under the Availability criteria of the Regulatory Flexibility Act. Federal Aviation Administration All SIAPs and Takeoff Minimums and ODPs are available online free of charge. Environmental Review 14 CFR Part 97 Visit the National Flight Data Center at The FAA has determined that this nfdc.faa.gov to register. Additionally, action qualifies for categorical exclusion [Docket No. 31233; Amdt. No. 3835] individual SIAP and Takeoff Minimums under the National Environmental and ODP copies may be obtained from Policy Act in accordance with FAA Standard Instrument Approach the FAA Air Traffic Organization Order 1050.1F, ‘‘Environmental Procedures, and Takeoff Minimums Service Area in which the affected Impacts: Policies and Procedures,’’ and Obstacle Departure Procedures; airport is located. paragraph 5–6.5a. This airspace action Miscellaneous Amendments FOR FURTHER INFORMATION CONTACT: is not expected to cause any potentially AGENCY: Federal Aviation Thomas J. Nichols, Flight Procedures significant environmental impacts, and Administration (FAA), DOT. and Airspace Group, Flight no extraordinary circumstances exist Technologies and Procedures Division, ACTION: Final rule. that warrant preparation of an Flight Standards Service, Federal environmental assessment. SUMMARY: This rule establishes, amends, Aviation Administration. Mailing Lists of Subjects in 14 CFR Part 71 suspends, or removes Standard Address: FAA Mike Monroney Instrument Approach Procedures Aeronautical Center, Flight Procedures Airspace, Incorporation by reference, (SIAPs) and associated Takeoff and Airspace Group, 6500 South Navigation (air). Minimums and Obstacle Departure MacArthur Blvd., Registry Bldg 29 Adoption of the Amendment Procedures (ODPs) for operations at Room 104, Oklahoma City, OK 73125. Telephone: (405) 954–4164. In consideration of the foregoing, the certain airports. These regulatory Federal Aviation Administration actions are needed because of the SUPPLEMENTARY INFORMATION: This rule amends 14 CFR part 71 as follows: adoption of new or revised criteria, or amends Title 14 of the Code of Federal because of changes occurring in the Regulations, Part 97 (14 CFR part 97), by PART 71—DESIGNATION OF CLASS A, National Airspace System, such as the establishing, amending, suspending, or B, C, D, AND E AIRSPACE AREAS; AIR commissioning of new navigational removes SIAPS, Takeoff Minimums TRAFFIC SERVICE ROUTES; AND facilities, adding new obstacles, or and/or ODPS. The complete regulatory REPORTING POINTS changing air traffic requirements. These description of each SIAP and its changes are designed to provide safe associated Takeoff Minimums or ODP ■ 1. The authority citation for part 71 and efficient use of the navigable for an identified airport is listed on FAA continues to read as follows: airspace and to promote safe flight form documents which are incorporated
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by reference in this amendment under 5 TERPS criteria were applied to the Napa, CA, Napa County, NAPAA THREE U.S.C. 552(a), 1 CFR part 51, and 14 conditions existing or anticipated at the Graphic DP CFR part 97.20. The applicable FAA affected airports. Because of the close Napa, CA, Napa County, RNAV (GPS) X RWY forms are FAA Forms 8260–3, 8260–4, and immediate relationship between 36L, Orig 8260–5, 8260–15A, and 8260–15B when these SIAPs, Takeoff Minimums and Leadville, CO, Lake County, DAVVY TWO Graphic DP required by an entry on 8260–15A. ODPs, and safety in air commerce, I find Leadville, CO, Lake County, LOZUL FOUR The large number of SIAPs, Takeoff that notice and public procedure under Graphic DP Minimums and ODPs, their complex 5 U.S.C. 553(b) are impracticable and Leadville, CO, Lake County, RNAV (GPS) nature, and the need for a special format contrary to the public interest and, RWY 16, Amdt 1 make publication in the Federal where applicable, under 5 U.S.C 553(d), Leadville, CO, Lake County, Takeoff Register expensive and impractical. good cause exists for making some Minimums and Obstacle DP, Amdt 2A Further, airmen do not use the SIAPs effective in less than 30 days. Crestview, FL, Bob Sikes, ILS OR LOC RWY regulatory text of the SIAPs, Takeoff The FAA has determined that this 17, Amdt 1 Minimums or ODPs, but instead refer to regulation only involves an established Crestview, FL, Bob Sikes, RNAV (GPS) RWY their graphic depiction on charts body of technical regulations for which 17, Orig-B Crestview, FL, Bob Sikes, RNAV (GPS) RWY printed by publishers of aeronautical frequent and routine amendments are 35, Amdt 1C materials. Thus, the advantages of necessary to keep them operationally Crestview, FL, Bob Sikes, VOR–A, Amdt 12B incorporation by reference are realized current. It, therefore—(1) is not a Maurice, IA, Sioux County Rgnl, RNAV and publication of the complete ‘‘significant regulatory action’’ under (GPS) RWY 17, Orig description of each SIAP, Takeoff Executive Order 12866;(2) is not a Maurice, IA, Sioux County Rgnl, RNAV Minimums and ODP listed on FAA form ‘‘significant rule’’ under DOT (GPS) RWY 35, Orig documents is unnecessary. This Regulatory Policies and Procedures (44 Maurice, IA, Sioux County Rgnl, Takeoff amendment provides the affected CFR FR 11034; February 26,1979); and Minimums and Obstacle DP, Orig sections and specifies the types of (3)does not warrant preparation of a Shelbyville, IL, Shelby County, NDB–A, regulatory evaluation as the anticipated Amdt 3 SIAPs, Takeoff Minimums and ODPs Shelbyville, IL, Shelby County, RNAV (GPS) with their applicable effective dates. impact is so minimal. For the same RWY 36, Orig-C This amendment also identifies the reason, the FAA certifies that this Fairmont, MN, Fairmont Muni, COPTER ILS airport and its location, the procedure, amendment will not have a significant RWY 31, Orig-B, CANCELED and the amendment number. economic impact on a substantial Fairmont, MN, Fairmont Muni, ILS OR LOC number of small entities under the RWY 31, Amdt 1 Availability and Summary of Material criteria of the Regulatory Flexibility Act. Fairmont, MN, Fairmont Muni, RNAV (GPS) Incorporated by Reference RWY 13, Orig-A List of Subjects in 14 CFR Part 97 The material incorporated by Fairmont, MN, Fairmont Muni, VOR/DME reference is publicly available as listed Air Traffic Control, Airports, RWY 13, Amdt 1B, CANCELED Wellsboro, PA, Wellsboro Johnston, RNAV in the ADDRESSES section. Incorporation by reference, Navigation The material incorporated by (Air). (GPS) RWY 10, Amdt 1 Wellsboro, PA, Wellsboro Johnston, RNAV reference describes SIAPS, Takeoff Issued in Washington, DC, on January 11, (GPS) RWY 28, Amdt 1 Minimums and/or ODPS as identified in 2019. Laurens, SC, Laurens County, RNAV (GPS) the amendatory language for part 97 of Rick Domingo, RWY 8, Amdt 1 this final rule. Executive Director, Flight Standards Service. Laurens, SC, Laurens County, RNAV (GPS) RWY 26, Amdt 1 The Rule Adoption of the Amendment Spartanburg, SC, Spartanburg Downtown This amendment to 14 CFR part 97 is Accordingly, pursuant to the Memorial/Simpson Field, RNAV (GPS) effective upon publication of each authority delegated to me, Title 14, RWY 23, Amdt 1 separate SIAP, Takeoff Minimums and Code of Federal Regulations, Part 97 (14 Spartanburg, SC, Spartanburg Downtown Memorial/Simpson Field, Takeoff ODP as Amended in the transmittal. CFR part 97) is amended by Some SIAP and Takeoff Minimums and Minimums and Obstacle DP, Amdt 2 establishing, amending, suspending, or [FR Doc. 2019–01137 Filed 2–7–19; 8:45 am] textual ODP amendments may have removing Standard Instrument BILLING CODE 4910–13–P been issued previously by the FAA in a Approach Procedures and/or Takeoff Flight Data Center (FDC) Notice to Minimums and Obstacle Departure Airmen (NOTAM) as an emergency Procedures effective at 0901 UTC on the DEPARTMENT OF TRANSPORTATION action of immediate flight safety relating dates specified, as follows: directly to published aeronautical Federal Aviation Administration charts. PART 97—STANDARD INSTRUMENT The circumstances that created the APPROACH PROCEDURES 14 CFR Part 97 need for some SIAP and Takeoff Minimums and ODP amendments may ■ 1. The authority citation for part 97 [Docket No. 31234; Amdt. No. 3836] require making them effective in less continues to read as follows: Standard Instrument Approach than 30 days. For the remaining SIAPs Authority: 49 U.S.C. 106(f), 106(g), 40103, Procedures, and Takeoff Minimums and Takeoff Minimums and ODPs, an 40106, 40113, 40114, 40120, 44502, 44514, and Obstacle Departure Procedures; effective date at least 30 days after 44701, 44719, 44721–44722. Miscellaneous Amendments publication is provided. ■ 2. Part 97 is amended to read as Further, the SIAPs and Takeoff follows: AGENCY: Federal Aviation Minimums and ODPs contained in this Administration (FAA), DOT. amendment are based on the criteria Effective 28 February 2019 ACTION: Final rule. contained in the U.S. Standard for Napa, CA, Napa County, ILS OR LOC Z RWY Terminal Instrument Procedures 36L, Orig-D SUMMARY: This rule amends, suspends, (TERPS). In developing these SIAPs and Napa, CA, Napa County, LOC Y RWY 36L, or removes Standard Instrument Takeoff Minimums and ODPs, the Orig Approach Procedures (SIAPs) and
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associated Takeoff Minimums and MacArthur Blvd., Registry Bldg. 29 amendments in this rule have been Obstacle Departure Procedures for Room 104, Oklahoma City, OK 73125. previously issued by the FAA in a FDC operations at certain airports. These Telephone: (405) 954–4164. NOTAM as an emergency action of regulatory actions are needed because of SUPPLEMENTARY INFORMATION: This rule immediate flight safety relating directly the adoption of new or revised criteria, amends Title 14, Code of Federal to published aeronautical charts. or because of changes occurring in the Regulations, Part 97 (14 CFR part 97) by The circumstances that created the National Airspace System, such as the amending the referenced SIAPs. The need for these SIAP and Takeoff commissioning of new navigational complete regulatory description of each Minimums and ODP amendments facilities, adding new obstacles, or SIAP is listed on the appropriate FAA require making them effective in less changing air traffic requirements. These Form 8260, as modified by the National than 30 days. changes are designed to provide for the Flight Data Center (NFDC)/Permanent Because of the close and immediate safe and efficient use of the navigable Notice to Airmen (P–NOTAM), and is relationship between these SIAPs, airspace and to promote safe flight incorporated by reference under 5 Takeoff Minimums and ODPs, and operations under instrument flight rules U.S.C. 552(a), 1 CFR part 51, and 14 safety in air commerce, I find that notice at the affected airports. CFR 97.20. The large number of SIAPs, and public procedure under 5 U.S.C. 553(b) are impracticable and contrary to DATES: This rule is effective February 8, their complex nature, and the need for the public interest and, where 2019. The compliance date for each a special format make their verbatim applicable, under 5 U.S.C. 553(d), good SIAP, associated Takeoff Minimums, publication in the Federal Register cause exists for making these SIAPs and ODP is specified in the amendatory expensive and impractical. Further, airmen do not use the regulatory text of effective in less than 30 days. provisions. The FAA has determined that this The incorporation by reference of the SIAPs, but refer to their graphic depiction on charts printed by regulation only involves an established certain publications listed in the body of technical regulations for which regulations is approved by the Director publishers of aeronautical materials. Thus, the advantages of incorporation frequent and routine amendments are of the Federal Register as of February 8, necessary to keep them operationally 2019. by reference are realized and publication of the complete description current. It, therefore—(1) is not a ADDRESSES: Availability of matter ‘‘significant regulatory action’’ under incorporated by reference in the of each SIAP contained on FAA form documents is unnecessary. Executive Order 12866; (2) is not a amendment is as follows: This amendment provides the affected ‘‘significant rule’’ under DOT regulatory For Examination CFR sections, and specifies the SIAPs Policies and Procedures (44 FR 11034; and Takeoff Minimums and ODPs with February 26, 1979); and (3) does not 1. U.S. Department of Transportation, warrant preparation of a regulatory Docket Ops-M30, 1200 New Jersey their applicable effective dates. This amendment also identifies the airport evaluation as the anticipated impact is Avenue SE, West Bldg., Ground Floor, so minimal. For the same reason, the Washington, DC 20590–0001; and its location, the procedure and the amendment number. FAA certifies that this amendment will 2. The FAA Air Traffic Organization not have a significant economic impact Service Area in which the affected Availability and Summary of Material on a substantial number of small entities airport is located; Incorporated by Reference under the criteria of the Regulatory 3. The office of Aeronautical The material incorporated by Flexibility Act. Navigation Products, 6500 South reference is publicly available as listed List of Subjects in 14 CFR Part 97 MacArthur Blvd., Oklahoma City, OK in the ADDRESSES section. 73169 or, The material incorporated by Air Traffic Control, Airports, 4. The National Archives and Records reference describes SIAPs, Takeoff Incorporation by reference, Navigation Administration (NARA). For Minimums and ODPs as identified in (Air). information on the availability of this the amendatory language for part 97 of Issued in Washington, DC, on January 11, material at NARA, call 202–741–6030, this final rule. 2019. or go to: http://www.archives.gov/ Rick Domingo, _ _ _ _ The Rule federal register/code of federal Executive Director, Flight Standards Service. regulations/ibr_locations.html. This amendment to 14 CFR part 97 is Adoption of the Amendment Availability effective upon publication of each separate SIAP and Takeoff Minimums Accordingly, pursuant to the All SIAPs and Takeoff Minimums and and ODP as amended in the transmittal. authority delegated to me, Title 14, ODPs are available online free of charge. For safety and timeliness of change Code of Federal regulations, Part 97, (14 Visit the National Flight Data Center considerations, this amendment CFR part 97), is amended by amending online at nfdc.faa.gov to register. incorporates only specific changes Standard Instrument Approach Additionally, individual SIAP and contained for each SIAP and Takeoff Procedures and Takeoff Minimums and Takeoff Minimums and ODP copies may Minimums and ODP as modified by ODPs, effective at 0901 UTC on the be obtained from the FAA Air Traffic FDC permanent NOTAMs. dates specified, as follows: Organization Service Area in which the The SIAPs and Takeoff Minimums affected airport is located. and ODPs, as modified by FDC PART 97—STANDARD INSTRUMENT FOR FURTHER INFORMATION CONTACT: permanent NOTAM, and contained in APPROACH PROCEDURES Thomas J. Nichols, Flight Procedures this amendment are based on the ■ and Airspace Group, Flight criteria contained in the U.S. Standard 1. The authority citation for part 97 Technologies and Procedures Division, for Terminal Instrument Procedures continues to read as follows: Flight Standards Service, Federal (TERPS). In developing these changes to Authority: 49 U.S.C. 106(f), 106(g), 40103, Aviation Administration. Mailing SIAPs and Takeoff Minimums and 40106, 40113, 40114, 40120, 44502, 44514, Address: FAA Mike Monroney ODPs, the TERPS criteria were applied 44701, 44719, 44721–44722. Aeronautical Center, Flight Procedures only to specific conditions existing at ■ 2. Part 97 is amended to read as and Airspace Group, 6500 South the affected airports. All SIAP follows:
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By amending: § 97.23 VOR, VOR/ § 97.27 NDB, NDB/DME; § 97.29 ILS, SIAPs; and § 97.35 COPTER SIAPs, DME, VOR or TACAN, and VOR/DME ILS/DME, MLS, MLS/DME, MLS/RNAV; Identified as follows: or TACAN; § 97.25 LOC, LOC/DME, § 97.31 RADAR SIAPs; § 97.33 RNAV * * * Effective Upon Publication LDA, LDA/DME, SDF, SDF/DME;
AIRAC date State City Airport FDC No. FDC date Subject
28–Feb–19 ...... IA Ames ...... Ames Muni ...... 8/0236 1/8/19 RNAV (GPS) RWY 13, Amdt 1. 28–Feb–19 ...... IA Ames ...... Ames Muni ...... 8/0248 1/8/19 RNAV (GPS) RWY 1, Amdt 2. 28–Feb–19 ...... IA Ames ...... Ames Muni ...... 8/0250 1/8/19 RNAV (GPS) RWY 31, Amdt 1. 28–Feb–19 ...... WI Sheboygan ...... Sheboygan County Memorial 8/0455 1/8/19 ILS OR LOC/DME RWY 22, Amdt 5A. 28–Feb–19 ...... WI Sheboygan ...... Sheboygan County Memorial 8/0460 1/8/19 RNAV (GPS) RWY 4, Amdt 3A. 28–Feb–19 ...... WI Sheboygan ...... Sheboygan County Memorial 8/0462 1/8/19 RNAV (GPS) RWY 22, Amdt 3A. 28–Feb–19 ...... WI Sheboygan ...... Sheboygan County Memorial 8/0463 1/8/19 RNAV (GPS) RWY 31, Orig-A. 28–Feb–19 ...... IN Goshen ...... Goshen Muni ...... 8/0748 1/8/19 ILS OR LOC RWY 27, Amdt 1. 28–Feb–19 ...... MI Mason ...... Mason Jewett Field ...... 8/0979 1/8/19 RNAV (GPS) RWY 10, Orig-C. 28–Feb–19 ...... MI Mason ...... Mason Jewett Field ...... 8/0981 1/8/19 RNAV (GPS) RWY 28, Orig-C. 28–Feb–19 ...... IL Alton/St Louis ...... St Louis Rgnl ...... 8/1280 1/8/19 RNAV (GPS) RWY 35, Amdt 1A. 28–Feb–19 ...... FL Palatka ...... Palatka Muni—Lt Kay Larkin 8/1650 1/8/19 RNAV (GPS) RWY 27, Orig-A. Field. 28–Feb–19 ...... FL Palatka ...... Palatka Muni—Lt Kay Larkin 8/1653 1/8/19 RNAV (GPS) RWY 9 , Orig-B. Field. 28–Feb–19 ...... VA Fredericksburg ...... Shannon ...... 8/1909 1/8/19 RNAV (GPS) RWY 24, Orig-A. 28–Feb–19 ...... PA Chambersburg ...... Franklin County Rgnl ...... 8/2099 1/8/19 RNAV (GPS) RWY 24, Orig-A. 28–Feb–19 ...... NE Valentine ...... Miller Field ...... 8/2262 1/8/19 NDB RWY 32, Amdt 8. 28–Feb–19 ...... NE Valentine ...... Miller Field ...... 8/2265 1/8/19 RNAV (GPS) RWY 32, Amdt 1. 28–Feb–19 ...... TN Cleveland ...... Cleveland Rgnl Jetport ...... 8/2647 1/8/19 RNAV (GPS) RWY 3, Amdt 2. 28–Feb–19 ...... NY Weedsport ...... Whitfords ...... 8/2807 1/8/19 Takeoff Minimums and Obstacle DP, Orig. 28–Feb–19 ...... GA Jekyll Island ...... Jekyll Island ...... 8/2891 1/8/19 RNAV (GPS) RWY 18, Orig-A. 28–Feb–19 ...... VA Charlottesville ...... Charlottesville-Albemarle ...... 8/3070 1/8/19 RNAV (GPS) Z RWY 21, Amdt 1A. 28–Feb–19 ...... MS Tunica ...... Tunica Muni ...... 8/3448 1/8/19 RNAV (GPS) RWY 17, Amdt 3. 28–Feb–19 ...... NC Goldsboro ...... Wayne Executive Jetport ...... 8/3790 1/8/19 ILS OR LOC RWY 23, Amdt 2A. 28–Feb–19 ...... NC Goldsboro ...... Wayne Executive Jetport ...... 8/3791 1/8/19 RNAV (GPS) RWY 23, Amdt 1A. 28–Feb–19 ...... KY Louisville ...... Bowman Field ...... 8/4188 1/8/19 NDB RWY 33, Amdt 16A. 28–Feb–19 ...... KY Louisville ...... Bowman Field ...... 8/4190 1/8/19 RNAV (GPS) RWY 24, Amdt 3. 28–Feb–19 ...... TX Corsicana ...... C David Campbell Field— 8/4230 1/8/19 NDB RWY 14, Amdt 4B. Corsicana Muni. 28–Feb–19 ...... TX Corsicana ...... C David Campbell Field— 8/4236 1/8/19 NDB RWY 32, Amdt 3B. Corsicana Muni. 28–Feb–19 ...... TX Corsicana ...... C David Campbell Field— 8/4239 1/8/19 VOR/DME–A, Amdt 1B. Corsicana Muni. 28–Feb–19 ...... TX Corsicana ...... C David Campbell Field— 8/4246 1/8/19 RNAV (GPS) RWY 32, Orig-B. Corsicana Muni. 28–Feb–19 ...... WV Ravenswood ...... Jackson County ...... 8/4456 1/8/19 RNAV (GPS) RWY 22, Orig-A. 28–Feb–19 ...... VA New Market ...... New Market ...... 8/4507 1/8/19 RNAV (GPS)-B, Orig. 28–Feb–19 ...... NM Albuquerque ...... Albuquerque Intl Sunport ...... 8/4554 1/8/19 ILS OR LOC RWY 8, Amdt 6. 28–Feb–19 ...... NY Rome ...... Griffiss Intl ...... 8/5183 1/8/19 ILS OR LOC RWY 33, Amdt 2. 28–Feb–19 ...... FL Daytona Beach ...... Daytona Beach Intl ...... 8/6099 1/8/19 ILS OR LOC RWY 7L, Amdt 32. 28–Feb–19 ...... OR Redmond ...... Roberts Field ...... 8/6153 1/8/19 RNAV (GPS) Y RWY 29, Amdt 2A. 28–Feb–19 ...... PR San Juan ...... Fernando Luis Ribas 8/7172 1/8/19 RNAV (GPS) RWY 9, Orig. Dominicci. 28–Feb–19 ...... AL Vernon ...... Lamar County ...... 8/7374 1/8/19 RNAV (GPS) RWY 35, Orig. 28–Feb–19 ...... NC Pinehurst/Southern Moore County ...... 8/7378 1/8/19 RNAV (GPS) RWY 23, Amdt 2A. Pines. 28–Feb–19 ...... TN Cleveland ...... Cleveland Rgnl Jetport ...... 8/7395 1/8/19 RNAV (GPS) RWY 21, Amdt 2. 28–Feb–19 ...... ME Augusta ...... Augusta State ...... 8/7919 1/8/19 RNAV (GPS)-B, Orig-B. 28–Feb–19 ...... ME Augusta ...... Augusta State ...... 8/7920 1/8/19 RNAV (GPS) RWY 35, Orig-A. 28–Feb–19 ...... FL Williston ...... Williston Muni ...... 8/8015 1/8/19 VOR RWY 23, Amdt 1A. 28–Feb–19 ...... FL Williston ...... Williston Muni ...... 8/8062 1/8/19 RNAV (GPS) RWY 5, Orig-A. 28–Feb–19 ...... FL Williston ...... Williston Muni ...... 8/8063 1/8/19 RNAV (GPS) RWY 23, Orig-A. 28–Feb–19 ...... PA Pottstown ...... Heritage Field ...... 8/8126 1/8/19 VOR/DME–A, Amdt 4. 28–Feb–19 ...... ME Lincoln ...... Lincoln Rgnl ...... 8/8127 1/8/19 RNAV (GPS) RWY 17, Orig-A. 28–Feb–19 ...... PA Collegeville ...... Perkiomen Valley ...... 8/8333 1/8/19 RNAV (GPS)-C, Orig. 28–Feb–19 ...... PA Collegeville ...... Perkiomen Valley ...... 8/8334 1/8/19 RNAV (GPS)-B, Orig. 28–Feb–19 ...... NY Olean ...... Cattaraugus County-Olean ... 8/8420 1/8/19 Takeoff Minimums and Obstacle DP, Amdt 3. 28–Feb–19 ...... PA Philadelphia ...... Philadelphia Intl ...... 8/8689 1/8/19 ILS OR LOC RWY 26, Amdt 4C. 28–Feb–19 ...... MA Pittsfield ...... Pittsfield Muni ...... 8/8690 1/8/19 Takeoff Minimums and Obstacle DP, Amdt 2. 28–Feb–19 ...... SC Georgetown ...... Georgetown County ...... 8/8983 1/8/19 RNAV (GPS) RWY 23, Amdt 2A. 28–Feb–19 ...... SC Georgetown ...... Georgetown County ...... 8/9737 1/8/19 RNAV (GPS) RWY 5, Orig-A. 28–Feb–19 ...... IN Rensselaer ...... Jasper County ...... 8/9844 1/8/19 RNAV (GPS) RWY 18, Orig-B.
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AIRAC date State City Airport FDC No. FDC date Subject
28–Feb–19 ...... IN Rensselaer ...... Jasper County ...... 8/9845 1/8/19 RNAV (GPS) RWY 36, Orig-B.
[FR Doc. 2019–01133 Filed 2–7–19; 8:45 am] Aleutian Islands Management Area, the the BSAI and GOA FMPs are located at BILLING CODE 4910–13–P Fishery Management Plan for 50 CFR part 679. Regulations Groundfish of the Gulf of Alaska, the implementing the Crab FMP are located Fishery Management Plan for Bering at 50 CFR part 680. General regulations DEPARTMENT OF COMMERCE Sea/Aleutian Islands King and Tanner governing U.S. fisheries also appear at Crabs, and other applicable laws. 50 CFR part 600. National Oceanic and Atmospheric DATES: This rule is effective March 11, NMFS published the proposed rule Administration 2019. for this action on August 16, 2018 (83 ADDRESSES: Electronic copies of the FR 40733), with comments invited 15 CFR 902 final Regulatory Impact Review (the through September 17, 2018. NMFS ‘‘Analysis’’) and the Categorical received one comment during the 50 CFR Parts 679 and 680 Exclusion prepared for this action are applicable comment period. A summary [Docket No. 180327320–8999–02] available from www.regulations.gov or of this comment and the response by from the NMFS Alaska Region website NMFS are provided under the heading RIN 0648–BH88 at alaskafisheries.noaa.gov. All public ‘‘Comments and Responses’’ below. comment letters submitted during the A detailed review of the regulations to Fisheries of the Exclusive Economic comment period may be obtained from modify the management of AFA Zone Off Alaska; Prohibit Directed www.regulations.gov/ Program and CR Program sideboard Fishing for American Fisheries Act #!docketDetail;D=NOAA-NMFS-2018- limits, as well as the removal of the Program and Crab Rationalization 0045. requirement for AFA inshore Program Groundfish Sideboard Limits Written comments regarding the cooperatives to submit a weekly catch in the BSAI and GOA burden-hour estimates or other aspects report, and the rationale for these AGENCY: National Marine Fisheries of the collection-of-information revisions are provided in the preamble Service (NMFS), National Oceanic and requirements contained in this final rule to the proposed rule (83 FR 40733, Atmospheric Administration (NOAA), may be submitted by mail to NMFS August 16, 2018) and are briefly Commerce. Alaska Region, P.O. Box 21668, Juneau, summarized in this final rule. ACTION: Final rule. AK 99802–1668, Attn: Ellen Sebastian, Records Officer; in person at NMFS Background SUMMARY: NMFS issues regulations to Alaska Region, 709 West 9th Street, This final rule includes two actions. modify management of the American Room 420A, Juneau, AK; and to OIRA The first action revises §§ 679.64 and Fisheries Act (AFA) Program and Crab by email to OIRA_Submission@ 680.22 for sideboard limits that apply to Rationalization (CR) Program. This final omb.eop.gov or by fax to 202–395–5806. two categories of vessels that operate in rule has two actions. The first action FOR FURTHER INFORMATION CONTACT: the BSAI or GOA: (1) AFA catcher/ modifies regulations for AFA Program Obren Davis, (907) 586–7228. processors (C/Ps) listed in § 679.4(l)(2)(i) and CR Program vessels subject to limits SUPPLEMENTARY INFORMATION: (described as AFA C/Ps in this rule), on the catch of specific species and AFA catcher vessels (CVs) (sideboard limits) in the Bering Sea and Authority for Action permitted to harvest Bering Sea pollock Aleutian Islands (BSAI) Management NMFS manages the groundfish as established in § 679.4(l)(3); and (2) Area and Gulf of Alaska (GOA) fisheries in the exclusive economic zone vessels and LLP licenses subject to Management Area. This first action of the BSAI and GOA under the Fishery sideboard restrictions in the GOA based establishes regulations to prohibit Management Plan for Groundfish of the on criteria as established in § 680.22(a) directed fishing for specific groundfish Bering Sea and Aleutian Islands under the CR Program. This first action species rather than prohibiting directed Management Area (BSAI FMP), and the prohibits directed fishing for groundfish fishing each year through the BSAI and Fishery Management Plan for species or species groups that are GOA annual harvest specifications. The Groundfish of the Gulf of Alaska (GOA subject to sideboard limits that are not second action removes the requirement FMP), respectively. NMFS manages large enough to support directed fishing for the designated representatives of vessels subject to specific limitations on as that term is defined at § 679.2. In AFA inshore cooperatives to submit a the catch of specific species or species addition, under the first action, this rule weekly catch report. This rule is groups (sideboard limits) under the AFA removes the regulation at intended to reduce administrative Program under the BSAI and GOA § 679.64(a)(1)(ii)(B) listing a sideboard burdens associated with managing FMPs, and NMFS manages vessels and limit for AFA C/Ps in one management sideboard limits through annual harvest License Limitation Program (LLP) area (Central Aleutian Islands (Central specifications without changing NMFS’s licenses subject to sideboard limits AI)) for one species (Atka mackerel) that inseason management of sideboard under the CR Program under the Fishery is currently subject to a more restrictive limits. Additionally, this rule reduces Management Plan for Bering Sea/ harvest limit under existing regulations reporting burdens for the designated Aleutian Islands King and Tanner Crabs at § 679.91(c)(2)(ii) and Table 33 to 50 representatives and members of AFA (Crab FMP). The North Pacific Fishery CFR part 679. inshore cooperatives. This rule is Management Council (Council) The first action under this rule is intended to promote the goals and prepared these FMPs under the necessary to streamline and simplify objectives of the Magnuson-Stevens authority of the Magnuson-Stevens NMFS’s management of applicable Fishery Conservation and Management Fishery Conservation and Management groundfish sideboard limits. NMFS Act, the Fishery Management Plan for Act (Magnuson-Stevens Act), 16 U.S.C. calculates numerous AFA Program and Groundfish of the Bering Sea and 1801 et seq. Regulations implementing CR Program sideboard limits as part of
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the annual BSAI and GOA harvest U.S.C. 1802). Sideboard limits are (§ 679.64(a)(1)(ii)(A)). Other sideboard specifications process and publishes intended to prevent participants who limits are implemented through the these limits in the Federal Register. benefit from receiving exclusive annual harvest specifications process, Concurrently, NMFS prohibits directed harvesting privileges in a LAPP from which is described later in this fishing for the majority of the shifting effort into other fisheries. preamble. groundfish subject to these sideboard Sideboard limits establish limits on the The CR Program and CR Program limits because most sideboard limits are annual amount of a specific groundfish Sideboard Limits too small each year to support directed total allowable catch (TAC) limit or fishing. The most recent example of the prohibited species catch (PSC) limit for The CR Program is a LAPP that annual BSAI and GOA harvest participants in a given LAPP. allocates nine BSAI crab species among specifications with the AFA Program harvesters, processors, and coastal The AFA Program and AFA Program and CR Program sideboard limits can be communities. Participants in the CR Sideboard Limits found at 83 FR 8365, February 27, 2018, Program receive exclusive harvesting for the BSAI, and at 83 FR 8768, March The Bering Sea pollock fishery is and processing privileges for a portion 1, 2018, for the GOA. Rather than managed under the authority of the AFA of the annual TAC established for each continue this annual process of (16 U.S.C. 1851 note) and the crab fishery under the CR Program. The calculating all sideboard limits and then Magnuson-Stevens Act. The AFA final rule implementing the CR Program closing most of the groundfish species Program is a LAPP that established describes the different elements of the with sideboard limits to directed Bering Sea pollock directed fishing program, including groundfish fishing, the first action of this rule allocations to inshore and offshore sideboard limits in the GOA for vessels revises regulations to prohibit directed components (commonly called the and LLP licenses that received fishing by non-exempt AFA Program inshore and offshore sectors). The allocations of exclusive harvesting and CR Program vessels for those offshore sector includes both C/Ps and privileges under the CR Program (70 FR groundfish species and species groups motherships, which are processing 10174, March 2, 2005). These sideboard subject to sideboard limits that have not vessels that take deliveries of fish from limits were developed to protect been opened to directed fishing and that CVs. The AFA also determined eligible participants in other non-CR Program are not expected to be opened to vessels and processors in the Bering Sea groundfish fisheries from increased directed fishing in the foreseeable pollock fishery, allowed the formation participation by CR Program vessels in future. Also, NMFS will now cease of cooperatives of CVs in association the GOA groundfish fisheries, as calculating and publishing each year the with specific processors in the inshore discussed in Section 2.7.2 of the relevant sideboard limits subject to this sector, established sideboard limits, and Analysis. Essentially, the CR Program final rule and their corresponding imposed special catch weighing and sideboard limits protect non-CR directed fishing prohibitions in the monitoring requirements on AFA C/Ps. Program participants by restricting the BSAI and GOA groundfish harvest The AFA was implemented by ability of CR Program participants to specifications. Amendment 61 to the BSAI FMP, target non-crab fisheries (i.e., GOA The second action of this final rule Amendment 61 to the GOA FMP, groundfish fisheries). CR Program removes the requirement for the Amendment 13 to the Crab FMP, and sideboard limits are established by designated representatives of AFA Amendment 8 to the Fishery management areas and for a variety of inshore cooperatives (described later in Management Plan for the Scallop species and species groups and gear this preamble) to submit a weekly catch Fishery off Alaska (67 FR 79692; types, including pot, hook-and-line, jig, report described in §§ 679.5(o) and December 30, 2002). The final rule and trawl gear. CR Program sideboard 679.62(b)(3). NMFS is removing this implementing the AFA (67 FR 79692, limits are applicable only in the GOA. requirement because the information in December 30, 2002) and Section 2.7.1 of Section 680.22 establishes groundfish the weekly catch report is collected by the Analysis describe the AFA Program sideboard limits for vessels and LLP NMFS through other recordkeeping and in detail and the basis for the sideboard licenses with a history of participation reporting requirements, and this weekly limits established under the AFA in the Bering Sea snow crab catch report is no longer necessary for Program. (Chionoecetes opilio) fishery. NMFS to manage the AFA inshore The final rule implementing the AFA established several different types of Annual Harvest Specifications Process pollock allocations. and the Management of AFA Program The following discussion summarizes sideboard limits for vessels that are and CR Program Sideboard Limits groundfish sideboard limits, the AFA authorized to harvest pollock in the Program and AFA Program sideboard Bering Sea. These sideboard limits were NMFS establishes the overfishing limits, the CR Program and CR Program established to protect the interests of level, acceptable biological catch, and sideboard limits, the annual harvest fishermen and processors who do not TAC for each species or species group specifications process, and the directly benefit from the AFA from through the annual groundfish harvest management of AFA Program and CR those fishermen and processors who specifications process. If a species is Program sideboard limits through that received exclusive harvesting and closed for directed fishing and the TAC annual harvest specifications process. processing privileges under the AFA. has not been reached, NMFS allows The discussion also summarizes AFA Essentially, the AFA Program sideboard vessels to retain incidental catch of inshore cooperative reporting limits protect non-AFA fishermen and species taken in other directed fisheries requirements. processors by restricting the ability of that are open, up to the maximum AFA pollock fishermen and processors retainable amount (MRA) allowed in Groundfish Sideboard Limits to target non-pollock groundfish species § 679.20(e). If a species is closed to The Council and NMFS generally and species groups. Some of these directed fishing and the TAC for that establish sideboard limits when sideboard limits are implemented species is reached, NMFS prohibits implementing Limited Access Privilege through directed fishing closures in retention of that species, and all catch Programs (LAPP). The term ‘‘limited regulations, such as setting the AFA C/ of that species must be discarded. An access privilege’’ is defined in section P Atka mackerel harvest limit to zero in MRA is calculated as a percentage of the 3(26) of the Magnuson-Stevens Act (16 the Bering Sea subarea and Eastern AI retained amount of a species that is
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closed to directed fishing, relative to the cooperative weekly report through other In both the BSAI and GOA, many of retained amount of basis species or reporting requirements at § 679.5(e). the sideboard limits are not large species groups open to directed fishing. Removing this reporting requirement enough to support directed fishing by Amounts that are caught greater than a will reduce costs for the public to AFA CVs and C/Ps and crab vessels. It particular MRA percentage must be prepare and submit the weekly reports is highly unlikely that the TACs of any discarded. and for NMFS to review and process of the sideboard species will increase In the annual harvest specifications, those weekly reports. significantly enough in the foreseeable NMFS calculates sideboard limits for future to result in a large enough the AFA Program and the CR Program Final Rule sideboard limit to allow directed fishing fisheries by multiplying a fixed ratio Action 1: Establishing Sideboard Limits of that sideboard limit by AFA vessels against the annual TAC or portion of the in Regulation and crab vessels. Therefore, NMFS has TAC for each BSAI and GOA groundfish determined it will be more efficient to species or species group. These ratios Under action 1, NMFS will no longer close those sideboard limits to directed are derived based on the specific AFA publish AFA Program and CR Program fishing in regulation, rather than and CR Program regulations described sideboard limits for specific species or continuing to specify those sideboard earlier in this preamble. The annual species groups in the Federal Register limits and close them to directed fishing sideboard limit for most BSAI and GOA as part of the annual groundfish harvest every year through the annual harvest groundfish species is an amount that is specifications, but instead will specify specifications. much smaller than the overall TAC for in regulation those species with Accordingly, under action 1, this final each species. For the most recent sideboard limits that are subject to a rule implements the Council’s example of the annual groundfish directed fishing closure. Specification in recommendation (Option 1 to harvest specifications and associated regulation of these directed fishing Alternative 2, the preferred alternative) AFA Program and CR Program closures will streamline and simplify to: sideboard limits, see the final 2018 and NMFS’s management of the applicable • prohibit directed fishing in regulation for 2019 harvest specifications for the BSAI groundfish sideboard limits. NMFS will most AFA Program groundfish sideboard and GOA (83 FR 8365, February 27, no longer need to calculate the limits by adding Tables 54, 55, and 56 to 50 2018, and 83 FR 8768, March 1, 2018, applicable sideboards limits, prepare CFR part 679 to list the AFA Program respectively). the necessary tables, and publish those sideboard species prohibited to directed Consistent with §§ 679.64 and 680.22, sideboard limits and their fishing; NMFS manages the AFA Program and • prohibit directed fishing in regulation corresponding directed fishing (§ 680.22(e)) for the majority of CR Program CR Program sideboard limits by prohibitions each year in the BSAI and establishing directed fishing closures for groundfish sideboard limits, with the GOA groundfish harvest specifications. exception of Pacific cod pot gear CV a species or species group subject to a This will reduce staff time and annual apportionments in the Western and Central sideboard limit. These closures could costs to prepare and publish the BSAI Regulatory Areas; happen during the fishing year if a and GOA groundfish harvest • remove § 679.64(a)(1)(ii)(B), which lists particular sideboard limit is reached. specifications. the annual Central AI Atka mackerel Alternatively, NMFS may issue a sideboard limit for AFA C/Ps; and directed fishing closure in the harvest This final rule will not modify the • make other minor regulatory specifications prior to the fishing year, ability of sideboard-limited vessels to amendments necessary to establish directed if the sideboard limit is not sufficient to retain incidental catch of species closed fishing closures for specific species and species groups in regulation. support directed fishing for a species or to directed fishing while targeting other species group. NMFS has prohibited species. Vessels are allowed to retain This final rule revises § 679.20(d) by directed fishing for the majority of AFA incidental catch of species up to the adding a new paragraph to prohibit CV and C/P sideboard limits since the MRA if the TAC of that species has not directed fishing for the sideboard- initial implementation of the AFA been reached. Once TAC is reached, limited groundfish species and species Program in 2000 (65 FR 4520, January NMFS prohibits retention of that groups listed in Tables 54, 55, and 56 28, 2000). NMFS also has prohibited species. The regulations governing to 50 CFR part 679. Existing regulations directed fishing for the majority of CR incidental catch and MRAs apply when associated with establishing directed Program sideboard limits in the GOA a species is closed to directed fishing, fishing sideboard limits are retained, as since CR Program was implemented in whether closed to directed fishing they are needed for those species or 2006. Directed fishing prohibitions have through the annual BSAI and GOA species groups that will continue to been issued because the sideboard harvest specifications or through a have sideboard limits established limits for most species were insufficient specific regulation. Accordingly, under through the annual harvest to provide for both directed fishing of a this final rule, sideboard-limited vessels specifications. In addition, species and incidental catch of that will remain subject to the same § 679.64(a)(3) is revised to add a same species in other target fisheries. regulations governing the incidental paragraph describing that Table 54 to 50 catch of species or species groups with CFR part 679 contains the BSAI species AFA Inshore Cooperative Weekly Catch sideboard limits that are closed to or species groups with sideboard limits Report Requirements directed fishing, and this rule will not prohibited for directed fishing by AFA NMFS also is removing the change NMFS’s inseason management C/Ps. Similarly, § 679.64(b)(5) is revised requirement for the designated of sideboard limits. Moreover, the to add a paragraph that describes Tables representatives of AFA inshore approach that continues directed fishing 55 and 56 to 50 CFR part 679. These two cooperatives to submit a weekly catch closures for sideboard limits for AFA tables list the sideboard-limited species report described in §§ 679.5(o) and and CR Program vessels will still protect or species groups prohibited for directed 679.62(b)(3) because this report is no non-AFA and non-CR Program fishing by AFA CVs in the BSAI and longer necessary to manage the AFA participants in other fisheries, in GOA, respectively. inshore pollock allocations. NMFS accordance with the original intent of Regarding the Central AI Atka obtains the necessary information creating sideboard limits (see Section mackerel sideboard limit for AFA C/Ps, required on the AFA inshore 2.7.1 and 2.7.2 of the Analysis). this final rule removes
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§ 679.64(a)(1)(ii)(B). That regulation Action 2: Removal of the AFA Inshore vessels. In this final rule, NMFS will specifies the AFA C/Ps Central AI Atka Cooperative Catch Report From instead specify the directed fishing mackerel sideboard limit of 11.5 percent Regulation closures in § 680.22(e)(1)(iii), which will of the annual Central AI TAC, which is In addition to the Council’s state that directed fishing for groundfish based on the sideboard limit set forth in recommendation for revising the species by non-AFA crab vessels subject to sideboard restrictions is prohibited section 211(b)(2)(C)(i) of the AFA. management of AFA Program and CR for all GOA groundfish species, with the However, since the implementation of Program sideboard limits, NMFS is exception of Pacific cod apportioned to the Amendment 80 Program in 2008, the removing the requirements for the AFA CVs using pot gear in the Western and percentage of the initial TAC for the inshore cooperative weekly catch report Central Regulatory Areas. NMFS sector in which AFA C/Ps are described in §§ 679.5(o) and believes that this is a simpler approach authorized to participate (the BSAI 679.62(b)(3). This report is no longer than initially proposed, as it eliminates trawl limited access sector) is only 10 necessary to manage the AFA inshore the need to add a complex table to percent. Therefore, the maximum pollock allocations. NMFS has direct regulations. The CR Program sideboard amount of the Central AI Atka mackerel and immediate access to observer and limits for Pacific cod apportioned to TAC available to AFA C/Ps under landings data to track catch by the regulations implementing Amendment CVs using pot gear in the Western and cooperatives and does not need the Central GOA are historically the only 80 (10 percent) is less than the information submitted by the sideboard limit established for AFA C/ sideboard limits open to directed cooperatives to monitor the Bering Sea fishing. These apportionments have Ps when the AFA Program was pollock fisheries. Eliminating this implemented in 2000 (11.5 percent). typically been large enough to support weekly reporting requirement will directed fishing for Pacific cod by CVs Since the BSAI trawl limited access reduce the burden on the designated sector allocation is less than the using pot gear. However, if future representatives of AFA inshore annual apportionments are not large sideboard limit, the sideboard limit no cooperatives to prepare and submit longer constrains AFA C/Ps. This enough to support directed fishing, these reports to NMFS weekly, will NMFS still has the authority under revision to remove the regulation that reduce costs to the members of the AFA specifies the sideboard limit for Central § 679.20(d) to prohibit directed fishing inshore cooperatives to pay for the for Pacific cod by CVs using pot gear in AI Atka mackerel for AFA C/Ps is preparation and submission of these consistent with Section 211 of the AFA. the Western and Central Regulatory weekly reports, and will reduce the time Areas. Section 211(a) of the AFA allows the and costs that NMFS incurs in Council to recommend, and NMFS to In addition, this final rule revises processing and reviewing the weekly Tables 54, 55, and 56 to 50 CFR part 679 approve, conservation and management reports. measures necessary to protect other to clarify that the directed fishing fisheries from the adverse impacts Comments and Responses prohibition for ‘‘rougheye rockfish’’ caused by the AFA. The current actually applies to two distinct rockfish Comment 1: NMFS received one species: rougheye rockfish (Sebastes allocation of Atka mackerel available to comment addressing issues outside of AFA C/Ps (10 percent of the TAC) is aleutianus) and blackspotted rockfish the scope of this action. The commenter (Sebastes melanostictus). The complete effectively a conservation and does not support modifying any management measure that protects species group (blackspotted rockfish regulations, and advocated that wildlife and rougheye rockfish) was participants in other non-AFA fisheries and oceans should be left alone. inadvertently omitted from these three by limiting the amount of Atka mackerel Response: This comment is beyond tables during the regulatory drafting that AFA C/Ps can potentially harvest to the scope of this regulatory action. This process. The BSAI and the GOA harvest less than 11.5 percent of the TAC final rule primarily is intended to specifications specify annual TACs for available to AFA C/Ps under the increase the administrative efficiency these two species as a combined species existing sideboard limit established associated with managing AFA Program group. Sideboard limits also are under section 211(b)(2)(C)(i) of the AFA. and CR Program groundfish sideboard established for the species group, not Under this final rule, NMFS will no limits in the BSAI and GOA. This final just rougheye rockfish, and accordingly longer specify the AFA C/P sideboard rule does not change the general this final rule establishes regulations limit for Central AI Atka mackerel; management measures that govern the that prohibit directed fishing in the however, that fishery will remain open federal groundfish fisheries of these two GOA and BSAI for these two rockfish to directed fishing, and AFA C/Ps as management areas and does not change species as a combined species group. part of the BSAI trawl limited access the specific measures that govern the sector will remain constrained under management of the sideboard limits OMB Revisions to PRA References in 15 existing regulations to harvesting up to under the AFA Program and CR CFR 902.1(b) 10 percent of the allocation to the BSAI Program. Section 3507(c)(B)(i) of the Paperwork trawl limited access sector Reduction Act (PRA) requires that (§ 679.91(c)(2)(ii) and Table 33 to 50 Changes From the Proposed Rule agencies inventory and display a current CFR part 679). This final rule will change the control number assigned by the Director For the CR Program sideboard limits, regulatory text by which NMFS is of the Office of Management and Budget this final rule revises § 680.22(e) to prohibiting directed fishing for CR (OMB) for each agency information describe the prohibition for directed Program groundfish sideboard limits. collection requirement. Section 902.1(b) fishing for most sideboard-limited GOA NMFS originally proposed adding Table identifies the location of NOAA groundfish species by non-AFA crab 11 to 50 CFR part 680 to list the GOA regulations for which OMB approval vessels in the GOA. This revision would groundfish species and species groups numbers have been issued. Because this note that the directed fishing for which directed fishing for sideboard final rule removes a regulation prohibition does not apply to Pacific limits by non-AFA crab vessels is (§ 679.5(o)) with a data element in an cod apportioned to CVs using pot gear prohibited, which would have included approved collection-of-information, 15 in the Western and Central Regulatory almost all of the GOA groundfish CFR 902.1(b) is revised to remove this Areas. sideboard limits for non-AFA crab reference to this regulation.
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Classification notice of proposed rulemaking, the Number and Description of Small The Administrator, Alaska Region, agency shall prepare a FRFA. Section Entities Regulated by This Final Rule NMFS has determined that this final 604 describes the required contents of a This final rule directly regulates those rule is necessary to modify the FRFA: (1) A statement of the need for vessel operators that are restricted by management of AFA Program and CR and objectives of the rule; (2) a AFA Program and CR Program Program groundfish sideboard limits, statement of the significant issues raised groundfish sideboard limits in the BSAI and that it is consistent with the by the public comments in response to and GOA, and AFA inshore Magnuson-Stevens Act and other the IRFA, a statement of the assessment cooperatives that are required to submit applicable laws. of the agency of such issues, and a an AFA inshore cooperative weekly This final rule has been determined to statement of any changes made to the report. All persons required to submit be not significant for the purposes of proposed rule as a result of such an AFA inshore cooperative weekly Executive Order 12866. comments; (3) the response of the report are also subject to sideboard Small Entity Compliance Guide agency to any comments filed by the limits under the AFA Program, with the Chief Counsel for Advocacy of the Small exception of CVs exempt from AFA Section 212 of the Small Business Business Administration (SBA) in Program sideboard limits. Therefore, the Regulatory Enforcement Fairness Act of response to the proposed rule, and a number of directly regulated entities 1996 states that, for each rule or group detailed statement of any change made under this final rule is equal to the of related rules for which an agency is number of vessel operators restricted by required to prepare a final regulatory to the proposed rule in the final rule as a result of the comments; (4) a AFA Program and CR Program flexibility analysis, the agency shall groundfish sideboard limits in the BSAI publish one or more guides to assist description of and an estimate of the and GOA. small entities in complying with the number of small entities to which the rule will apply or an explanation of why For RFA purposes only, NMFS has rule, and shall designate such established a small business size publications as ‘‘small entity no such estimate is available; (5) a standard for businesses, including their compliance guides.’’ The agency shall description of the projected reporting, affiliates, whose primary industry is explain the actions a small entity is recordkeeping, and other compliance commercial fishing (see 50 CFR 200.2). required to take to comply with a rule requirements of the rule, including an A business primarily engaged in or group of rules. The preambles to the estimate of the classes of small entities commercial fishing (NAICS code 11411) proposed rule and this final rule serve that will be subject to the requirement is classified as a small business if it is as the small entity compliance guide. and the type of professional skills independently owned and operated, is This action does not require any necessary for preparation of the report not dominant in its field of operation additional compliance from small or record; and (6) a description of the (including its affiliates), and has entities that is not described in the steps the agency has taken to minimize combined annual gross receipts not in preambles. Copies of the proposed rule the significant economic impact on and this final rule are available from the excess of $11 million for all its affiliated small entities consistent with the stated operations worldwide. NMFS website at http:// objectives of applicable statutes alaskafisheries.noaa.gov. There are 93 active AFA CVs that are including a statement of the factual, restricted by sideboard limits in the Regulatory Impact Review policy, and legal reasons for selecting BSAI and GOA, 17 active C/Ps that are A Regulatory Impact Review was the alternative adopted in this final rule restricted by sideboard limits in the prepared to assess the costs and benefits and why each one of the other BSAI, and 95 active CR Program CVs of available regulatory alternatives. A significant alternatives to the rule that are restricted by sideboard limits in copy of this final analysis is available considered by the agency which affect the GOA. These vessels are members of from NMFS (see ADDRESSES). The the impact on small entities was an AFA cooperative for Bering Sea Council recommended the regulatory rejected. pollock or a Bering Sea Crab revisions in this final rule based on A description of this final rule and the Cooperative and are therefore those measures that maximized net need for and objectives of the rule are considered to be large entities via their benefits to the Nation. Specific aspects contained in the preamble to this final cooperative affiliation. Other than these of the economic analysis related to the rule and the preamble to the proposed vessels, there are 18 vessels that are impact of this final rule on small rule (83 FR 40733, August 16, 2018), restricted by sideboard limits in the entities are discussed below in the Final and are not repeated here. BSAI and GOA and that are not Regulatory Flexibility Analysis section. members of an AFA or crab cooperative. Public and Chief Counsel for Advocacy These 18 vessels may be considered Final Regulatory Flexibility Analysis Comments on the IRFA small entities under the RFA because (FRFA) they likely have combined annual gross This FRFA incorporates the initial NMFS published the proposed rule on receipts not in excess of $11.0 million. regulatory flexibility analysis (IRFA), a August 16, 2018 (83 FR 40733). An Recordkeeping, Reporting, and other summary of the significant issues raised IRFA was prepared and included in the Compliance Requirements by the public comments in response to Classification section of the preamble to the IRFA, if any, and NMFS’s responses the proposed rule. The comment period This final rule removes a to those comments, and a summary of for the proposed rule closed on recordkeeping and reporting the analyses completed to support this September 17, 2018. NMFS received one requirement for the submittal of AFA action. letter of public comment on the inshore cooperative weekly catch Section 604 of the Regulatory proposed rule. NMFS received no reports. Such reports are no longer Flexibility Act (RFA) (5 U.S.C. 604) comments specifically on the IRFA or necessary to assist NMFS with requires that, when an agency on the economic impacts of the rule managing the AFA inshore pollock promulgates a final rule under 5 U.S.C. more generally. The Chief Counsel for fisheries, as the information in such 553, after being required by that section Advocacy of the SBA did not file any reports has been superseded by more or any other law to publish a general comments on the proposed rule. contemporary, electronic data reporting.
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The proposal to remove these however, provide a modest economic Title 15—Commerce and Foreign Trade requirements is anticipated to reduce benefit for AFA inshore cooperatives. the cost to the public by approximately PART 902—NOAA INFORMATION $8,475 per year, and is anticipated to Collection-of-Information Requirements COLLECTION REQUIREMENTS UNDER reduce costs to NMFS by approximately THE PAPERWORK REDUCTION ACT: This final rule addresses a collection- OMB CONTROL NUMBERS $5,400 per year. of-information requirement subject to Description of Significant Alternatives the Paperwork Reduction Act (PRA) and ■ 1. The authority citation for part 902 Considered to the Final Action That which has been approved by OMB continues to read as follows: under control number 0648–0401 (AFA Minimize Adverse Impacts on Small Authority: 44 U.S.C. 3501 et seq. Entities Reports). This rule does not add any new information collection § 902.1 [Amended] No significant alternatives were requirements, but removes the identified that will accomplish the ■ 2. In § 902.1, in the table in paragraph regulatory requirement for the AFA (b), under the entry ‘‘50 CFR,’’ remove stated objectives for streamlining the inshore cooperative weekly catch report. management of AFA and CR Program the entry for ‘‘679.5(o).’’ The public reporting burden for the sideboard limits by prohibiting directed AFA inshore cooperative weekly catch Title 50—Wildlife and Fisheries fishing in regulation for certain species reports is estimated to average 45 sideboard limits, that are consistent minutes per response, which includes PART 679—FISHERIES OF THE with applicable statutes, and that will EXCLUSIVE ECONOMIC ZONE OFF the time for reviewing instructions, reduce costs to potentially affected ALASKA small entities more than this final rule. searching existing data sources, The Council and NMFS considered two gathering and maintaining the data ■ 3. The authority citation for part 679 alternatives for action 1 of this rule. needed, and completing and reviewing continues to read as follows: the collection of information. Alternative 1 is the no action Authority: 16 U.S.C. 773 et seq.; 1801 et alternative. This alternative would have Send comments on this or any other seq.; 3631 et seq.; Pub. L. 108–447; Pub. L. continued the annual establishment in aspect of this collection of information, 111–281. the harvest specifications of the including suggestions for reducing the sideboard limits for all the species and burden, to NMFS Alaska Region (see § 679.5 [Amended] species groups subject to sideboard ADDRESSES) and to OIRA by email to ■ 4. In § 679.5, remove and reserve limits under the AFA Program and CR [email protected] or by paragraph (o). Program and would have retained the fax to (202) 395–5806. ■ 5. In § 679.20, add paragraph regulation listing the sideboard limit for Notwithstanding any other provision (d)(1)(iv)(D) to read as follows: Central AI Atka mackerel for AFA C/Ps. of the law, no person is required to § 679.20 General limitations. These sideboard species have respond to, and no person shall be insufficient sideboard limits to support subject to penalty for failure to comply * * * * * directed fishing, are fully allocated to (d) * * * with, a collection of information subject other catch share programs, or for a (1) * * * to the requirements of the PRA, unless variety of other reasons are closed to (iv) * * * that collection of information displays a directed fishing. Under Alternative 1, (D) Species or species groups for currently valid OMB control number. NMFS would continue to prohibit which directed fishing for sideboard directed fishing for these sideboard All currently approved NOAA limits by AFA vessels is prohibited are limited fisheries through the annual collections of information may be listed in Tables 54, 55, and 56 to this harvest specifications, except for the viewed at https://www.cio.noaa.gov/ part. services_programs/prasubs.html. Central AI Atka mackerel sideboard * * * * * limit for AFA C/Ps, which remains open List of Subjects for directed fishing. § 679.62 [Amended] Alternative 2, along with Option 1 15 CFR Part 902 ■ 6. In § 679.62, remove paragraph (the preferred alternative), provides the Reporting and recordkeeping (b)(3). greatest economic benefits. The primary requirements. ■ 7. In § 679.64, economic benefit of this final rule is to ■ a. Revise paragraph (a)(1)(ii)(A); reduce NMFS’s administrative burden 50 CFR Part 679 ■ b. Remove paragraph (a)(1)(ii)(B); of managing most AFA Program and CR ■ c. Redesignate paragraph (a)(1)(ii)(C) Alaska, Fisheries, Reporting and Program sideboards through the annual as paragraph (a)(1)(ii)(B); and recordkeeping requirements. harvest specifications process. ■ d. Revise paragraphs (a)(3) and (b)(5) Implementation of Alternative 2 through 50 CFR Part 680 to read as follows: this final rule will streamline the preparation of the BSAI and GOA Alaska, Reporting and recordkeeping § 679.64 Harvesting sideboard limits in annual harvest specifications, simplify requirements. other fisheries. (a) * * * NMFS’s annual programming changes to Dated: February 5, 2019. the groundfish catch accounting system, (1) * * * and reduce the future costs of Samuel D. Rauch III, (ii) * * * publishing the annual harvest Deputy Assistant Administrator for (A) Bering Sea subarea and Eastern specifications in the Federal Register Regulatory Programs, National Marine Aleutian Islands, zero; and each year. The economic effects on Fisheries Service. * * * * * fishery participants that are affected by For the reasons set out in the (3) How will AFA catcher/processor this action primarily are neutral. The preamble, NMFS amends 15 CFR part sideboard limits be managed? (i) The removal of the AFA inshore cooperative 902 and 50 CFR parts 679 and 680 as Regional Administrator will manage weekly catch report requirement should, follows: groundfish harvest limits and PSC
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bycatch limits for AFA catcher/ listed in Table 54 of this part is procedures set out at §§ 679.20(d)(1)(iv) processors through directed fishing prohibited. and 679.21(d)(7) and (e)(3)(v). closures in fisheries established under * * * * * (ii) Directed fishing for the BSAI paragraph (a)(1) of this section in groundfish that have sideboard limits (b) * * * accordance with the procedures set out listed in Table 55 of this part and the in §§ 679.20(d)(1)(iv) and (5) How will catcher vessel sideboard GOA groundfish that have sideboard 679.21(b)(4)(iii). limits be managed? (i) The Regional limits listed in Table 56 of this part is Administrator will manage groundfish prohibited. (ii) Directed fishing for the BSAI harvest limits and PSC bycatch limits groundfish that have sideboard limits * * * * * for AFA catcher vessels using directed ■ 8. Add Table 54 to part 679 to read as fishing closures according to the follows:
TABLE 54—BSAI SPECIES AND SPECIES GROUPS FOR WHICH DIRECTED FISHING FOR SIDEBOARD LIMITS BY LISTED AFA CATCHER/PROCESSORS AND CATCHER/PROCESSORS DESIGNATED ON LISTED AFA CATCHER/PROCESSOR PERMITS IS PROHIBITED
Species or species group Management area or subarea
Sablefish, trawl gear ...... Bering Sea (BS) subarea of the BSAI. Aleutian Islands (AI). Atka mackerel ...... BS/Eastern Aleutian District. Western Aleutian District. Rock sole ...... BSAI. Greenland turbot ...... Bering Sea subarea of the BSAI. AI. Arrowtooth flounder ...... BSAI. Kamchatka flounder ...... BSAI. Flathead sole ...... BSAI. Alaska plaice ...... BSAI. Other flatfish ...... BSAI. Pacific ocean perch ...... Bering Sea subarea of the BSAI. Eastern Aleutian District. Central Aleutian District. Western Aleutian District. Northern rockfish ...... BSAI. Shortraker rockfish ...... BSAI. Blackspotted and Rougheye rockfish ...... Bering Sea subarea of the BSAI/Eastern Aleutian District. Central Aleutian District/Western Aleutian District. Other rockfish ...... BS. AI. Skates ...... BSAI. Sculpins ...... BSAI. Sharks ...... BSAI. Octopuses ...... BSAI.
■ 9. Add Table 55 to part 679 to read as follows:
TABLE 55—BSAI SPECIES AND SPECIES GROUPS FOR WHICH DIRECTED FISHING FOR SIDEBOARD LIMITS BY NON- EXEMPT AFA CATCHER VESSELS IS PROHIBITED
Species or species group Management area or subarea Gear type
Pacific cod ...... BSAI ...... Jig...... Hook-and-line catcher vessel ≥ 60 ft...... Hook-and-line catcher vessel ≤ 60 ft...... Pot. Sablefish, trawl gear ...... Bering Sea subarea of the BSAI ...... All. AI ...... All. Atka mackerel ...... BSAI ...... All. Rock sole ...... BSAI ...... All. Greenland turbot ...... BS ...... All. AI ...... All. Arrowtooth flounder ...... BSAI ...... All. Kamchatka flounder ...... BSAI ...... All. Alaska plaice ...... BSAI ...... All. Other flatfish ...... BSAI ...... All. Flathead sole ...... BSAI ...... All. Pacific ocean perch ...... BS ...... All. Eastern Aleutian District ...... All. Central Aleutian District ...... All. Western Aleutian District ...... All.
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TABLE 55—BSAI SPECIES AND SPECIES GROUPS FOR WHICH DIRECTED FISHING FOR SIDEBOARD LIMITS BY NON- EXEMPT AFA CATCHER VESSELS IS PROHIBITED—Continued
Species or species group Management area or subarea Gear type
Northern rockfish ...... BSAI ...... All. Shortraker rockfish ...... BSAI ...... All. Blackspotted and Rougheye rockfish...... Bering Sea subarea of the BSAI/Eastern All. Aleutian District. Central Aleutian District/Western Aleutian Dis- All. trict. Other rockfish ...... Bering Sea subarea of the BSAI ...... All. AI ...... All. Skates ...... BSAI ...... All. Sculpins ...... BSAI ...... All. Sharks ...... BSAI ...... All. Octopuses ...... BSAI ...... All.
■ 10. Add Table 56 to part 679 to read as follows:
TABLE 56—GOA SPECIES AND SPECIES GROUPS FOR WHICH DIRECTED FISHING FOR SIDEBOARD LIMITS BY NON- EXEMPT AFA CATCHER VESSELS IS PROHIBITED
Management or regulatory area and processing component (if applica- Species or species group ble)
Pacific cod ...... Eastern GOA, inshore component. Eastern GOA, offshore component. Sablefish ...... Western GOA. Central GOA. Eastern GOA. Shallow-water flatfish ...... Eastern GOA. Deep-water flatfish ...... Western GOA. Rex sole ...... Western GOA. Eastern GOA. Arrowtooth flounder ...... Western GOA. Eastern GOA. Flathead sole ...... Western GOA. Eastern GOA. Pacific ocean perch ...... Western GOA. Northern rockfish ...... Western GOA. Shortraker rockfish ...... Western GOA. Central GOA. Eastern GOA. Dusky rockfish ...... Western GOA. Central GOA. Eastern GOA. Rougheye and blackspotted rockfish ...... Western GOA. Central GOA. Eastern GOA. Demersal shelf rockfish ...... Southeast Outside District. Thornyhead rockfish ...... Western GOA. Central GOA. Eastern GOA. Other rockfish ...... Central GOA. Eastern GOA. Atka mackerel ...... GOA. Big skate ...... Western GOA. Central GOA. Eastern GOA. Longnose skate ...... Western GOA. Central GOA. Eastern GOA. Other skates ...... GOA. Sculpins ...... GOA. Sharks ...... GOA. Octopuses ...... GOA.
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PART 680—FISHERIES OF THE ACTION: Final rule. Puerto Rico are considered to be EXCLUSIVE ECONOMIC ZONE OFF ‘‘States’’ for the purposes of these ALASKA SUMMARY: This final rule responds to programs. comments received on the interim final The National Highway Traffic Safety ■ 11. The authority citation for part 680 rule published September 30, 2016, and Administration (NHTSA) and the continues to read as follows: makes minor clarifications to the Federal Highway Administration Authority: 16 U.S.C. 1862; Pub. L. 109– Federal implementing regulations for (FHWA) (‘‘the agencies’’) jointly issued 241; Pub. L. 109–479. the Section 154 (Open Container) and an interim final rule (IFR), with Section 164 (Repeat Intoxicated Driver) immediate effectiveness, on September ■ 12. In § 680.22, revise paragraph programs. 30, 2016, (81 FR 67158) to ensure that (e)(1)(i) and add paragraph (e)(1)(iii) to DATES: This final rule is effective on States received instructions that were read as follows: March 11, 2019. important to the compliance § 680.22 Sideboard protections for GOA ADDRESSES: For access to the docket to determinations made on October 1, groundfish fisheries. read comments received, go to http:// 2016, when the changes in the FAST * * * * * www.regulations.gov and search for Act became effective. The IFR amended (e) * * * docket number NHTSA–2016–0099. the Federal implementing regulations for Section 154 at 23 CFR part 1270 and (1) * * * FOR FURTHER INFORMATION CONTACT: (i) Except as provided in paragraphs NHTSA: For program issues: Barbara Section 164 at 23 CFR part 1275 to (e)(1)(ii) and (iii) of this section, annual Sauers, Director, Office of Grants reflect the changed requirements from sideboard harvest limits for each Management and Operations, Telephone the Federal legislation. At the same time, the agencies updated the groundfish species, except fixed-gear number: (202) 366–0144, Email: regulations to improve clarity, codify sablefish, will be established by [email protected]. For legal longstanding interpretation of the multiplying the sideboard ratios issues: Russell Krupen, Attorney statutes and implementing regulations, calculated under paragraph (d) of this Advisor, Office of the Chief Counsel, and streamline procedures for States. section by the proposed and final TACs Telephone number: (202) 366–1834, The agencies sought public comment to in each area for which a TAC is Email: [email protected]; inform the promulgation of a final rule. specified. If a TAC is further Facsimile: (202) 366–3820. This action addresses the comments apportioned by season, the sideboard FHWA: For program issues: Dana received and makes minor changes to harvest limit also will be apportioned by Gigliotti, Team Leader, Safety Programs the Federal implementing regulations. season in the same ratio as the overall Implementation Team, Office of Safety TAC. The resulting harvest limits Programs, Telephone number: (202) II. Summary of the Interim Final Rule expressed in metric tons will be 366–1290, Email: Dana.Gigliotti@ The IFR implemented the new published in the annual GOA dot.gov. For legal issues: Dawn Horan, groundfish harvest specification notices. compliance provisions of the FAST Act Attorney Advisor, Office of the Chief and also updated the rules to * * * * * Counsel, Telephone number: (202) 366– incorporate prior statutory changes from (iii) NMFS will not establish an 9615, Email: [email protected]. the Moving Ahead for Progress in the annual sideboard harvest limit for SUPPLEMENTARY INFORMATION: 21st Century Act (MAP–21), Public Law groundfish species, other than Pacific 112–141 (enacted July 6, 2012), and the cod apportioned to catcher vessels using I. Introduction SAFETEA–LU Technical Corrections pot gear in the Western and Central The Fixing America’s Surface Act of 2008, Public Law 110–244 Regulatory Areas. Directed fishing for Transportation Act (FAST Act), Public (enacted June 6, 2008). The preamble to groundfish species, other than Pacific Law 114–94, amended 23 U.S.C. 154 the IFR also provided additional cod apportioned to catcher vessels using (Section 154) and 23 U.S.C. 164 (Section information regarding the programs, and pot gear in the Western and Central 164), which address the serious national the agencies encourage States to review Regulatory Areas, is prohibited. problems of impaired driving by it in conjunction with this preamble and * * * * * encouraging States to meet minimum the final implementing regulations. [FR Doc. 2019–01665 Filed 2–7–19; 8:45 am] standards for their open container laws Some of the revisions in the IFR to the BILLING CODE 3510–22–P and repeat intoxicated driver laws. Section 154 and Section 164 Under Section 154, to avoid the transfer implementing regulations in 23 CFR of funds, a State must enact and enforce parts 1270 and 1275 were made simply DEPARTMENT OF TRANSPORTATION an open container law ‘‘that prohibits to allow States to better understand the the possession of any open alcoholic programs and attain and maintain National Highway Traffic Safety beverage container, or the consumption compliance. These revisions did not Administration of any alcoholic beverage, in the substantively amend the compliance passenger area of any motor vehicle requirements of the programs. Such Federal Highway Administration (including possession or consumption revisions included amending or adding by the driver of the vehicle) located on definitions, clarifying and broadening 23 CFR Parts 1270 and 1275 a public highway, or the right-of-way of permitted exceptions in the Section 154 [Docket No. NHTSA–2016–0099] a public highway, in the State.’’ 23 program, and making technical U.S.C. 154(b)(1). Under Section 164, to corrections as necessary. RIN 2127–AL45 avoid the transfer of funds, a State must Because the FAST Act significantly Transfer and Sanction Programs enact and enforce a repeat intoxicated amended the compliance criteria for the driver law that establishes, at minimum, Section 164 program, the IFR also made AGENCY: National Highway Traffic certain specified penalties for second conforming revisions to the Section 164 Safety Administration (NHTSA) and and subsequent convictions of driving implementing regulations in 23 CFR Federal Highway Administration while intoxicated or driving under the part 1275. The IFR implemented the (FHWA), Department of Transportation influence. 23 U.S.C. 164(a)(5). All 50 revised one-year license sanction (DOT). States, the District of Columbia, and requirement, allowing States three
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options for repeat offenders: suspension in the back . . . because it could in fact, defer to States’ analyses of their of all driving privileges, restriction to possibly be accessible to a determined own incarceration data underpinning operating only motor vehicles with an passenger and potentially lead me to their ‘‘general practice’’ certifications for ignition interlock device installed severe penalties.’’ Open container laws fiscal year 2017, 2018, and 2019 (allowing for limited employment and differ significantly from State to State. submissions when they certified to medical exceptions), or participation in Therefore, the commenter should meeting the 75 percent requirement. and compliance with a 24–7 sobriety consult the law of the particular State to The agencies are making no changes in program. It eliminated the vehicle determine enforcement details and this final rule in response to this sanction requirement, which was penalties. However, for purpose of comment. repealed by the FAST Act, but made no compliance with Section 154, a State IV. Revisions in the Final Rule changes to the assessment and treatment may allow possession of an open requirement, which has not changed alcoholic beverage container ‘‘in a The agencies are making two since its inception. Finally, it made two locked container (such as a locked glove revisions in this final rule. The first changes to the minimum sentence compartment), or, in a motor vehicle relates to the opportunity for States requirement: clarifying the hour- that is not equipped with a trunk, either determined to be non-compliant with equivalents for days served in behind the last upright seat or in an area either Section 154 or Section 164 to imprisonment or community service not normally occupied by the driver or submit documentation showing why and implementing the annual ‘‘general a passenger.’’ 23 CFR 1270.4(d)(1). A they are compliant. In the IFR, the practice’’ certification option for State would not be determined to be out agencies gave States 30 days from the incarceration in lieu of having a of compliance with Section 154 if it date of issuance of the notice of compliant mandatory minimum allows an open container to be apportionments under 23 U.S.C. 104(e) sentence. With regard to the latter, a possessed in the area behind the last by FHWA, which normally occurs on State may certify for a second offender upright seat in a hatchback-style October 1, to submit this that its ‘‘general practice is that such an vehicle, regardless of whether that area documentation. 23 CFR 1270.8(b) and individual will be incarcerated’’ and for is covered. The agencies are making no 1275.8(b). However, the agencies tied a third or subsequent offender that its changes in this final rule in response to the deadlines for submission of ‘‘shift’’ ‘‘general practice is that such an this comment. and ‘‘split’’ letters to 30 and 60 days, individual will receive 10 days of The State DOTs requested greater respectively, from the date ‘‘the funds incarceration.’’ 23 U.S.C. 164(a)(5)(C)(i)– flexibility in the ‘‘general practice’’ are reserved.’’ 1 23 CFR 1270.6(b), (ii). To meet the statutory standard of certification, allowing for approaches 1270.7(a), 1275.6(b), and 1275.7(a). ‘‘general practice,’’ the IFR requires a other than 75 percent incarceration Although the date of issuance of the State to certify that 75 percent of repeat during the calendar year prior to the notice of apportionments and the offenders are subject to mandatory date of certification. The commenters reservation of funds is normally the incarceration for the minimum cite to the following statement from same, in some years FHWA has sentences specified for the calendar year Senator John Thune during the Senate rescinded and subsequently reissued the immediately prior to the certification. floor debate: ‘‘This provision is notice of apportionments. The agencies Finally, the IFR updated the non- intended to allow States to certify the do not intend to grant an extension of compliance penalties and procedures in general practice on minimum penalties time for submission of additional the regulations to reflect amendments which can meet the definition under the documentation or ‘‘shift’’ and ‘‘split’’ made to the Federal statutes by the repeat offender law, and we expect that letters in the event of such a reissuance, SAFETEA–LU Technical Corrections NHTSA should reasonably defer to a as the State will already have been on Act and MAP–21. The IFR also State’s analysis underpinning such a notice of its non-compliance for the reorganized the regulations to improve certification.’’ 161 Congressional Record fiscal year because of the original clarity, streamlined some of the S8359 (December 3, 2015, daily ed.). reservation of funds. To eliminate procedures that apply to States, reduced The State DOTs requested that States be confusion and align these deadlines, the paperwork burdens, and better aligned permitted to certify with percentages as agencies are amending the Section 154 the regulations with the longstanding low as 51 percent, particularly ‘‘if there and Section 164 regulations to require administrative practices under the is evidence of a trend of an increasing submission of any additional programs. percentage or other relevant information documentation within ‘‘30 days from provided by the State.’’ the date the funds are reserved.’’ III. Public Comments on the Interim The agencies do not believe it is The second relates to the ‘‘special Final Rule appropriate to accept certifications on exception’’ to interlock use under The agencies received only two the basis of 51 percent of repeat Section 164 for individuals certified by comments on the IFR: one addressing offenders receiving the statutorily a medical doctor as being unable to Section 154 (anonymous commenter; required penalties, as this essentially provide a deep lung breath sample for NHTSA–2016–0099–0002) and one renders the practice ‘‘as likely as not’’ analysis by an ignition interlock device. addressing Section 164 (Transportation and does not establish a ‘‘general The agencies are changing ‘‘certified by Departments of Idaho, Montana, North practice,’’ as specified in the statute. a medical doctor’’ to ‘‘certified in Dakota, South Dakota, and Wyoming The pre-enactment statement in floor writing by a physician’’ to align with [‘‘State DOTs’’]; NHTSA–2016–0099– debate does not serve to change the NHTSA’s implementing regulations for 0003). meaning of that statutory term. The The anonymous commenter requested agencies continue to believe that 75 1 While all non-compliant States are required to that the final rule ‘‘provide more percent provides a reasonable and submit ‘‘split’’ letters to receive the reserved funds (see 23 CFR 1270.7(a) and 1275.7(a)), submission of information about the exceptions to appropriate balance between flexibility ‘‘shift’’ letters by non-compliant States is optional locations of an open container within and mandatory minimum sentences for (see 23 CFR 1270.6(b) and 1275.6(b)). If FHWA does the vehicle.’’ Specifically, the 100 percent of offenders (as required for not receive a ‘‘shift’’ letter from a non-compliant commenter wanted more information States complying on the basis of their State, the default reservation of funds (based on proportionate amounts from each of the about ‘‘vehicles without the typical law, rather than a ‘‘general practice’’ apportionments under 23 U.S.C. 104(b)(1) and trunk that have no cover for the hatch certification). We note that NHTSA did, (b)(2)) will remain.
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23 U.S.C. 405(d)(6)(F)(ii). See 23 CFR programs for States to better allow them agencies to provide a statement of the 1300.23(g)(2)(ii). The agencies believe a to obtain and maintain compliance, and factual basis for certifying that an action certification, by definition, must be in we are committed to rolling these would not have a significant economic writing. Because the statutory language improvements out in the coming impact on a substantial number of small underlying the special exception in months. The agencies invite States to entities. Section 164 is identical to the exception provide suggestions on how we can This final rule updates the Section permitted in NHTSA’s Grants to States improve transparency by contacting the 154 and Section 164 implementing with Alcohol-Ignition Interlock Laws individuals listed in FOR FURTHER regulations based on recent Federal program, and the agency’s regulatory INFORMATION CONTACT above. legislation. The requirements of these language in that program also was programs only affect State governments, subject to public notice and comment, it VI. Regulatory Analyses and Notices which are not considered to be small is appropriate to bring the language of A. Executive Order (E.O.) 12866 entities as that term is defined by the the Section 164 implementing (Regulatory Planning and Review), E.O. RFA. Therefore, we certify that this regulations into alignment with that 13563, and DOT Regulatory Policies and action will not have a significant impact program. Procedures on a substantial number of small entities and find that the preparation of a V. Effective Date and Future Actions NHTSA and FHWA have considered Regulatory Flexibility Analysis is The agencies issued the IFR with an the impact of this rulemaking action unnecessary. immediate effective date to ensure that under Executive Order 12866, Executive States received instructions that were Order 13563, and the Department of C. Executive Order 13132 (Federalism) important to compliance determinations Transportation’s regulatory policies and Executive Order 13132 on made on October 1, 2016, as the changes procedures. This rulemaking document ‘‘federalism’’ requires the agencies to in the FAST Act became effective on was not reviewed under Executive develop an accountable process to that date. The effective date for this final Order 12866 or Executive Order 13563. ensure ‘‘meaningful and timely input by rule is March 11, 2019. This final rule This rule will only affect the State and local officials in the has no effect on determinations made on compliance status of a very small development of regulatory policies that October 1, 2018, for Federal fiscal year handful of States and will therefore have federalism implications.’’ 64 FR 2019. affect far less than $100 million 43255 (August 10, 1999). ‘‘Policies that NHTSA and FHWA are committed to annually. Whether a State chooses to have federalism implications’’ are ensuring transparency in the enact a compliant law or make a defined in the Executive Order to administration of these programs and certification is dependent on many include regulations that have maintaining open and active variables, and cannot be linked with ‘‘substantial direct effects on the States, communication with States. For specificity to the issuance of this rule. on the relationship between the national example, the agencies will continue to States choose whether to enact and government and the States, or on the notify States of potential non- enforce compliant laws, thereby distribution of power and compliance issues for the forthcoming complying with the programs. If a State responsibilities among the various fiscal year in FHWA’s advance chooses not to enact and enforce a levels of government.’’ Under Executive notification of apportionment, normally conforming law, its funds are Order 13132, an agency may not issue issued 90 days prior to the official conditioned, but not withheld. a regulation with Federalism apportionment notice, if such Accordingly, the total amount of implications that imposes substantial information is available to the agencies funding provided to each State does not direct compliance costs and that is not at that time. The agencies will also change. The costs to States associated required by statute unless the Federal notify States at other points throughout with this rule are minimal (e.g., passing government provides the funds the year if they become aware of and enforcing alcohol impaired driving necessary to pay the direct compliance potential non-compliance issues. laws) and are expected to be offset by costs incurred by State and local However, to provide this information in resulting highway safety benefits. governments or the agency consults a timely fashion for States to react as Therefore, this rulemaking has been with State and local governments in the appropriate, the agencies continue to determined to be not ‘‘significant’’ process of developing the proposed rely upon States for prompt notification under the Department of regulation. An agency also may not of changes in their laws. See, e.g., 23 Transportation’s regulatory policies and issue a regulation with federalism CFR 1270.9(b) and 1275.9(b). Although procedures and the policies of the Office implications that preempts a State law the regulations require a State to of Management and Budget. without consulting with State and local ‘‘promptly notify’’ the appropriate officials. NHTSA Regional Administrator in B. Regulatory Flexibility Act The agencies have analyzed this writing only of any actual change or The Regulatory Flexibility Act (RFA) rulemaking action in accordance with change in enforcement of the law, States of 1980 (5 U.S.C. 601 et seq.) requires the principles and criteria set forth in are invited also to submit prospective agencies to evaluate the potential effects Executive Order 13132, and have changes (e.g., pending legislation) to of their proposed and final rules on determined that this final rule would NHTSA throughout the year for a small businesses, small organizations, not have sufficient federalism preliminary review of their impact on and small governmental jurisdictions. implications as defined in the order to compliance. Section 605 of the RFA allows an warrant formal consultation with State In addition, the agencies recognize agency to certify a rule, in lieu of and local officials or the preparation of that States would benefit from receiving preparing an analysis, if the proposed a Federalism summary impact more information from the agencies rulemaking is not expected to have a statement. However, the agencies regarding compliance requirements, significant economic impact on a continue to engage with State procedures, and relevant points of substantial number of small entities. representatives regarding general contact. NHTSA and FHWA are The Small Business Regulatory implementation of the FAST Act, exploring ways to improve the Enforcement Fairness Act (SBREFA) including these programs, and expects availability of information on the amended the RFA to require Federal to continue these informal dialogues.
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D. Executive Order 12988 (Civil Justice determined that this action would not reserved to submit documentation Reform) have a substantial direct effect on one or showing why it is in compliance. * * * more Indian tribes, would not impose Pursuant to Executive Order 12988 PART 1275—REPEAT INTOXICATED (61 FR 4729 (February 7, 1996)), ‘‘Civil substantial direct compliance costs on DRIVER LAWS Justice Reform,’’ the agencies have Indian tribal governments, and would not preempt tribal law. Therefore, a considered whether this rule would ■ 3. The authority citation for part 1275 tribal summary impact statement is not have any retroactive effect. We conclude continues to read as follows: that it would not have any retroactive or required. preemptive effect, and judicial review of Authority: 23 U.S.C. 164; delegation of I. Regulatory Identifier Number (RIN) authority at 49 CFR 1.85 and 1.95. it may be obtained pursuant to 5 U.S.C. 702. That section does not require that The Department of Transportation ■ 4. Amend § 1275.4 by revising a petition for reconsideration be filed assigns a regulation identifier number paragraph (b)(2) to read as follows: prior to seeking judicial review. This (RIN) to each regulatory action listed in § 1275.4 Compliance criteria. action meets applicable standards in the Unified Agenda of Regulatory and sections 3(a) and 3(b)(2) of Executive Deregulatory Actions. The Regulatory * * * * * Order 12988, Civil Justice Reform, to Information Service Center publishes (b) * * * minimize litigation, eliminate the Unified Agenda in or about April (2) The individual is certified in ambiguity, and reduce burden. and October of each year. You may use writing by a physician as being unable the RIN contained in the heading at the to provide a deep lung breath sample for E. Paperwork Reduction Act beginning of this document to find this analysis by an ignition interlock device. Under the Paperwork Reduction Act action in the Unified Agenda. ■ 5. Amend § 1275.8 by revising the first of 1995 (PRA) (44 U.S.C. 3501, et seq.), sentence of paragraph (b) to read as J. Privacy Act Federal agencies must obtain approval follows: from the Office of Management and Please note that anyone is able to Budget (OMB) for each collection of search the electronic form of all § 1275.8 Procedures affecting States in noncompliance. information they conduct, sponsor, or comments received into any of our require through regulations. This dockets by the name of the individual * * * * * rulemaking would not establish any submitting the comment (or signing the (b) Each State whose funds are new information collection comment, if submitted on behalf of an reserved under § 1275.6 will be afforded requirements. association, business, labor union, etc.). 30 days from the date the funds are You may review DOT’s complete reserved to submit documentation F. Unfunded Mandates Reform Act Privacy Act Statement in the Federal showing why it is in compliance (which The Unfunded Mandates Reform Act Register published on April 11, 2000 may include a ‘‘general practice’’ of 1995 (Pub. L. 104–4) requires (65 FR 19477) or you may visit http:// certification under § 1275.5). * * * agencies to prepare a written assessment dms.dot.gov. Issued in Washington, DC, on: February 1, of the costs, benefits, and other effects 2019. of proposed or final rules that include Authority: 23 U.S.C. 154 and 164; delegation of authority at 49 CFR 1.85 and Under authority delegated in 49 CFR 1.95 a Federal mandate likely to result in 1.95. and 501.5. expenditures by State, local or tribal Heidi R. King, List of Subjects in 23 CFR Parts 1270 governments, in the aggregate, or by the Deputy Administrator, National Highway private sector, of more than $100 and 1275 Traffic Safety Administration. million annually (adjusted annually for Alcohol abuse, Highway safety, Issued in Washington, DC, on: February 1, inflation with base year of 1995). This Intergovernmental relations, Reservation 2019. final rule would not meet the definition and transfer programs—transportation. Under authority delegated in 49 CFR 1.85. of a Federal mandate because the Brandye L. Hendrickson, resulting annual State expenditures to For the reasons discussed in the comply with the programs would not preamble, under the authority of 23 Deputy Administrator, Federal Highway Administration. exceed the minimum threshold. U.S.C. 154 and 164, the National Highway Traffic Safety Administration [FR Doc. 2019–01647 Filed 2–7–19; 8:45 am] G. National Environmental Policy Act and the Federal Highway BILLING CODE 4910–59–P NHTSA has considered the impacts of Administration amend 23 CFR chapter this rulemaking action for the purposes II as follows: of the National Environmental Policy DEPARTMENT OF DEFENSE PART 1270—OPEN CONTAINER LAWS Act of 1969 (NEPA) (42 U.S.C. 4321– Department of the Air Force 4347). The agency has determined that ■ 1. The authority citation for part 1270 this rulemaking would not have a continues to read as follows: significant impact on the quality of the 32 CFR Part 809a Authority: 23 U.S.C. 154; delegation of human environment. FHWA has [Docket ID: USAF–2018–HQ–0007] analyzed this action for the purposes of authority at 49 CFR 1.85 and 1.95. RIN 0701–AA84 NEPA and has determined that it would ■ 2. Amend § 1270.8 by revising the first not have any effect on the quality of the sentence of paragraph (b) to read as Civil Disturbance Intervention and environment and meets the criteria for follows: Disaster Assistance the categorical exclusion at 23 CFR 771.117(c)(20). § 1270.8 Procedures affecting States in AGENCY: Department of the Air Force, noncompliance. DoD. H. Executive Order 13175 (Consultation * * * * * ACTION: Final rule. and Coordination With Indian Tribes) (b) Each State whose funds are The agencies have analyzed this IFR reserved under § 1270.6 will be afforded SUMMARY: This final rule amends this under Executive Order 13175, and have 30 days from the date the funds are part by removing the portion which
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addresses the Department of the Air Authority: 10 U.S.C. 332 and 333. SUPPLEMENTARY INFORMATION: Force Civil Disturbance Intervention Table of Abbreviations and Disaster Assistance. The current Subpart B—[Removed and Reserved] version of this rule was published ■ CFR Code of Federal Regulations 2. Subpart B, consisting of §§ 809a.6 DHS Department of Homeland Security March 26, 2002. This rule provides through 809a.11 is removed and internal guidance for the use of Air FR Federal Register reserved vv. MDOT Mississippi Department of Force resources and personnel in Transportation Henry Williams, controlling civil disturbances and in NPRM Notice of proposed rulemaking supporting disaster relief operations. Acting Air Force Federal Register Liaison SR State Route Subpart B is unnecessary as it restates Officer. § Section existing statute, and there exists DoD- [FR Doc. 2019–01666 Filed 2–7–19; 8:45 am] I. Background, Purpose and Legal Basis level policy for the execution and BILLING CODE 5001–10–P oversight of Defense Support of Civil MDOT has requested to change the Authorities (DSCA). The Air Force also operating requirements for the SR 605 has internal procedures and standards DEPARTMENT OF HOMELAND bascule bridge across the Industrial for the DSCA mission and operations. SECURITY Seaway Canal, mile 11.3, at Hansboro, Therefore, this part can be removed Harrison County, Mississippi. This from the CFR. Coast Guard bridge currently opens on signal according to 33 CFR 117.5. MDOT DATES: This rule is effective on February 8, 2019. 33 CFR Part 117 provided the Coast Guard with a vehicle traffic study that concluded that vehicle [Docket No. USCG–2018–0952] FOR FURTHER INFORMATION CONTACT: Maj. traffic becomes very congested on SR Michael, J. Kwon at 703–693–4459. RIN 1625–AA09 605 during morning and afternoon rush SUPPLEMENTARY INFORMATION: It has been hours and that bridge openings for determined that publication of this CFR Drawbridge Operation Regulations; vessels add to the congestion. MDOT subpart removal for public comment is Industrial Seaway Canal, MS informed the Coast Guard that this impracticable, unnecessary, and AGENCY: Coast Guard, DHS. traffic congestion backs up from the contrary to public interest since it is bridge to the I–10 highway which ACTION: based on removing information which Notice of temporary deviation from regulations; request for comments. creates unsafe queues on I–10 and SR either restates statue (Stafford Act (42 605. This MDOT study and analysis is U.S.C. 5121–5207) and the Economy Act SUMMARY: The Coast Guard is issuing a provided in the docket to this temporary (31 U.S.C. 1535)) or is duplicative of temporary deviation to the operating rule. publicly available DoD and Air Force schedule that regulates the State Route The 120 day temporary deviation to internal policy. Internal guidance for the 605 (SR 605), Wilkes Road bascule the regulation will allow MDOT to DoD policy execution and oversight of bridge across the Industrial Seaway collect additional vehicle traffic data to DSCA will continue to be published in Canal, mile 11.3 at Hansboro, Harrison measure the impact of bridge closures DoD Directive 3025.18, ‘‘Defense County, Mississippi. This deviation is on traffic congestion. It will also allow Support of Civil Authorities’’ (available needed to collect and analyze the Coast Guard to collect data on the at http://www.esd.whs.mil/Portals/54/ information on vehicle traffic impact of the temporary regulation Documents/DD/issuances/dodd/ congestion on SR 605 created when the change on vessels. 302518p.pdf?ver=2018-03-19-093120- drawbridge opens to vessel traffic. This This bridge has a vertical clearance of 683). Department of the Air Force deviation allows the bridge to remain 37.1 feet above mean high water in the internal guidance will continue to be closed to navigation. The Coast Guard is closed to vessel position and unlimited published in Air Force Instruction 10– seeking comments from the public about vertical clearance in the open to vessel 801 (available at http://static.e- the impact to both vehicle and vessel traffic position. From January through publishing.af.mil/production/1/af_a3/ traffic generated by this change. December 2017 the bridge opened for publication/afi10-801/afi10-801.pdf). DATES: This deviation is effective from vessel traffic 236 times. During this This rule is not significant under 6 a.m. February 8, 2019 through 6 p.m. temporary deviation the bridge will Executive Order (E.O.) 12866, June 10, 2019. operate as follows: ‘‘Regulatory Planning and Review,’’ Comments and related material must The draw of the SR 605 bascule bridge therefore, E.O. 13771, ‘‘Reducing be received by the Coast Guard on or across the Industrial Seaway Canal, mile Regulation and Controlling Regulatory before June 10, 2019. 4.5, Hansboro, Harrison County, Mississippi shall open on signal; except Costs’’ does not apply. ADDRESSES: You may submit comments the draw need not open 6 a.m. to 8:30 identified by docket number USCG– List of Subjects in 32 CFR Part 809a a.m. and 4 p.m. to 6 p.m. Monday 2018–0952 using Federal eRulemaking Civil defense, Civil disorders, Disaster through Friday except federal holidays. Portal at http://www.regulations.gov. assistance, Federal buildings and The bridge will open on signal for See the ‘‘Public Participation and facilities, Foreign relations, Law emergencies. Request for Comments’’ portion of the enforcement, Military personnel. The Coast Guard will also inform the SUPPLEMENTARY INFORMATION section for users of the waterways through our Accordingly, 32 CFR part 809a is further instructions on submitting amended as follows: Local and Broadcast Notices to Mariners comments. of the change in operating schedule for PART 809a—INSTALLATION ENTRY FOR FURTHER INFORMATION CONTACT: If the bridge so that vessel operators can POLICY, CIVIL DISTURBANCE you have questions about this arrange their transits to minimize any INTERVENTION AND DISASTER rulemaking, call or email Mr. Doug impact caused by the temporary ASSISTANCE Blakemore, Eighth Coast Guard District deviation. Bridge Administrator; telephone (504) In accordance with 33 CFR 117.35(e), ■ 1. The authority citation for part 809a 671–2128, email Douglas.A.Blakemore@ the drawbridge must return to its regular continues to read as follows: uscg.mil. operating schedule immediately at the
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end of the effective period of this SUMMARY: The Coast Guard is allow for a reasonable comment period temporary deviation. This deviation establishing a temporary safety zone on prior to the start date for blasting from the operating regulations is the waters of the Delaware River operations. The rule must be in force by authorized under 33 CFR 117.35. between Marcus Hook Range and February 10, 2019, to serve its purpose Tinicum Range. The safety zone will of ensuring the safety of personnel, II. Public Participation and Request for temporarily restrict vessel traffic from vessels, and the marine environment Comments transiting or anchoring in portions of from hazards associated with rock Public participation is essential to the Delaware River while rock blasting, blasting, dredging, and rock removal effective rulemaking. The Coast Guard dredging, and rock removal operations operations. will consider all comments and material are being conducted to facilitate the Under 5 U.S.C. 553(d)(3), the Coast received during the comment period. If Main Channel Deepening project for the Guard finds that good cause exists for you submit a comment, please include Delaware River. The safety zone is making this rule effective less than 30 the docket number for this rulemaking, needed to protect personnel, vessels, days after publication in the Federal indicate the specific section of this and the marine environment from Register. Delaying the effective date of document to which each comment hazards created by rock blasting, this rule would be impracticable and applies, and provide a reason for each dredging, and rock removal operations. contrary to the public interest because suggestion or recommendation. Entry of vessels or persons into this immediate action is needed to mitigate We encourage you to submit zone is prohibited unless specifically the potential safety hazards associated comments through the Federal authorized by the COTP or his with rock blasting, dredging and rock eRulemaking Portal at http:// designated representatives. removal operations in this location. www.regulations.gov. If your material DATES: This rule is effective from III. Legal Authority and Need for Rule cannot be submitted using http:// February 10, 2019, through March 15, www.regulations.gov, contact the person 2019. The Coast Guard is issuing this rule in the FOR FURTHER INFORMATION under authority in 33 U.S.C. 1231. The CONTACT section of this document for ADDRESSES: To view documents mentioned in this preamble as being COTP has determined that there are alternate instructions. We accept potential hazards associated with the anonymous comments. All comments available in the docket, go to https:// www.regulations.gov, type USCG–2019– rock blasting and dredging operations. received will be posted without change This rule is needed to ensure the safety to http://www.regulations.gov and will 0031 in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket of personnel, vessels, and the marine include any personal information you environment within a 500-yard radius of have provided. For more about privacy Folder on the line associated with this rule. rock blasting, dredging, and rock and the docket, you may review a removal operations Privacy Act notice regarding the Federal FOR FURTHER INFORMATION CONTACT: If Docket Management System in the you have questions about this IV. Discussion of the Rule March 24, 2005, issue of the Federal rulemaking, call or email Petty Officer This rule establishes a safety zone Register (70 FR 15086). Edmund Ofalt, U.S. Coast Guard Sector from February 10, 2019, through March Documents mentioned in this Delaware Bay, Waterways Management 15, 2019. The safety zone covers all notification, and all public comments, Branch; telephone (215) 271–4889, navigable waters in the Delaware River are in our online docket at http:// email [email protected]. within 500 yards of vessels and www.regulations.gov and can be viewed SUPPLEMENTARY INFORMATION: machinery being used to conduct rock by following that website’s instructions. I. Table of Abbreviations blasting, dredging, and rock removal Additionally, if you go to the online operations between Marcus Hook Range docket and sign up for email alerts, you CFR Code of Federal Regulations and Tinicum Range. The safety zone will be notified when comments are DHS Department of Homeland Security will be enforced in an area and in a posted or a final rule is published. FR Federal Register NPRM Notice of proposed rulemaking manner that does not conflict with Dated: January 31, 2019. § Section transiting commercial and recreational Douglas Allen Blakemore, Sr., U.S.C. United States Code traffic, except for the short periods of time when explosive detonations are Bridge Administrator, Eighth Coast Guard II. Background Information and District. being conducted and shortly thereafter, Regulatory History [FR Doc. 2019–01549 Filed 2–7–19; 8:45 am] when the channel is being surveyed to BILLING CODE 9110–04–P The Coast Guard is issuing this ensure the navigational channel is clear temporary rule without prior notice and for vessels to transit. These detonations opportunity to comment pursuant to will not occur more than three times a DEPARTMENT OF HOMELAND authority under section 4(a) of the day. At all other times, at least one side SECURITY Administrative Procedure Act (APA) (5 of the main navigational channel will be U.S.C. 553(b)). This provision open for vessels to transit. This rule Coast Guard authorizes an agency to issue a rule describes communications for notifying without prior notice and opportunity to waterway users of upcoming 33 CFR Part 165 comment when the agency for good detonations and provides means for [Docket Number USCG–2019–0031] cause finds that those procedures are waterway users to request entry into the ‘‘impracticable, unnecessary, or contrary safety zone. RIN 1625–AA00 to the public interest.’’ Under 5 U.S.C. V. Regulatory Analyses 553(b)(B), the Coast Guard finds that Safety Zone; Delaware River Rock good cause exists for not publishing a We developed this rule after Blasting, Marcus Hook, PA notice of proposed rulemaking (NPRM) considering numerous statutes and AGENCY: Coast Guard, DHS. with respect to this rule because it is Executive orders related to rulemaking. impracticable and contrary to the public Below we summarize our analyses ACTION: Temporary final rule. interest. There is insufficient time to based on a number of these statutes and
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Executive orders, and we discuss First we want to assist small entities in Federal agencies to assess the effects of Amendment rights of protestors. understanding this rule. If the rule their discretionary regulatory actions. In would affect your small business, particular, the Act addresses actions A. Regulatory Planning and Review organization, or governmental that may result in the expenditure by a Executive Orders 12866 and 13563 jurisdiction and you have questions State, local, or tribal government, in the direct agencies to assess the costs and concerning its provisions or options for aggregate, or by the private sector of benefits of available regulatory compliance, please contact the person $100,000,000 (adjusted for inflation) or alternatives and, if regulation is listed in the FOR FURTHER INFORMATION more in any one year. Though this rule necessary, to select regulatory CONTACT section. will not result in such an expenditure, approaches that maximize net benefits. Small businesses may send comments we do discuss the effects of this rule Executive Order 13771 directs agencies on the actions of Federal employees elsewhere in this preamble. to control regulatory costs through a who enforce, or otherwise determine budgeting process. This rule has not compliance with, Federal regulations to F. Environment been designated a ‘‘significant the Small Business and Agriculture We have analyzed this rule under regulatory action,’’ under Executive Regulatory Enforcement Ombudsman Department of Homeland Security Order 12866. Accordingly, this rule has and the Regional Small Business Directive 023–01 and Commandant not been reviewed by the Office of Regulatory Fairness Boards. The Instruction M16475.1D, which guide the Management and Budget (OMB), and Ombudsman evaluates these actions Coast Guard in complying with the pursuant to OMB guidance it is exempt annually and rates each agency’s National Environmental Policy Act of from the requirements of Executive responsiveness to small business. If you 1969 (42 U.S.C. 4321–4370f), and have Order 13771. wish to comment on actions by determined that this action is one of a This regulatory action determination employees of the Coast Guard, call 1– category of actions that do not is based on the size, location, duration, 888–REG–FAIR (1–888–734–3247). The individually or cumulatively have a and traffic management of the safety Coast Guard will not retaliate against significant effect on the human zone. The safety zone will be enforced small entities that question or complain environment. This rule involves a safety in an area and in a manner that does not about this rule or any policy or action zone to protect waterway users that conflict with transiting commercial and of the Coast Guard. would prohibit entry within 500 yards recreational traffic, except for the short C. Collection of Information of rock blasting, dredging, and rock periods of time when explosive removal. It is categorically excluded detonations are being conducted. The This rule will not call for a new from further review under paragraph blasting detonations will not occur more collection of information under the L60(a) of Appendix A, Table 1 of DHS than three times a day. At all other Paperwork Reduction Act of 1995 (44 Instruction Manual 023–01–001–01, times, at least one side of the main U.S.C. 3501–3520). Rev. 01. A Record of Environmental navigational channel will be open for Consideration supporting this vessels to transit. Moreover, the Coast D. Federalism and Indian Tribal Governments determination is available in the docket Guard will work in coordination with where indicated under ADDRESSES. the pilots to ensure vessel traffic is A rule has implications for federalism limited during the times of detonation under Executive Order 13132, G. Protest Activities and Broadcast Notice to Mariners are Federalism, if it has a substantial direct The Coast Guard respects the First made via VHF–FM marine channel 13 effect on the States, on the relationship Amendment rights of protesters. and 16 when blasting operations will between the national government and Protesters are asked to contact the the States, or on the distribution of occur. person listed in the FOR FURTHER power and responsibilities among the B. Impact on Small Entities INFORMATION CONTACT section to various levels of government. We have coordinate protest activities so that your The Regulatory Flexibility Act of analyzed this rule under that Order and message can be received without 1980, 5 U.S.C. 601–612, as amended, have determined that it is consistent jeopardizing the safety or security of requires Federal agencies to consider with the fundamental federalism people, places or vessels. the potential impact of regulations on principles and preemption requirements small entities during rulemaking. The described in Executive Order 13132. List of Subjects 33 CFR Part 165 term ‘‘small entities’’ comprises small Also, this rule does not have tribal Harbors, Marine safety, Navigation businesses, not-for-profit organizations implications under Executive Order (water), Reporting and recordkeeping that are independently owned and 13175, Consultation and Coordination requirements, Security measures, operated and are not dominant in their with Indian Tribal Governments, Waterways. fields, and governmental jurisdictions because it does not have a substantial with populations of less than 50,000. direct effect on one or more Indian For the reasons discussed in the The Coast Guard certifies under 5 U.S.C. tribes, on the relationship between the preamble, the Coast Guard amends 33 605(b) that this rule will not have a Federal Government and Indian tribes, CFR part 165 as follows: significant economic impact on a or on the distribution of power and PART 165—REGULATED NAVIGATION substantial number of small entities. responsibilities between the Federal AREAS AND LIMITED ACCESS AREAS While some owners or operators of Government and Indian tribes. If you vessels intending to transit the safety believe this rule has implications for ■ 1. The authority citation for part 165 zone may be small entities, for the federalism or Indian tribes, please continues to read as follows: reasons stated in section V.A above, this contact the person listed in the FOR rule will not have a significant FURTHER INFORMATION CONTACT section Authority: 33 U.S.C 1231; 50 U.S.C. 191; economic impact on any vessel owner above. 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; or operator. Department of Homeland Security Delegation Under section 213(a) of the Small E. Unfunded Mandates Reform Act No. 0170.1. Business Regulatory Enforcement The Unfunded Mandates Reform Act ■ 2. Add § 165.T05–0031 to read as Fairness Act of 1996 (Pub. L. 104–121), of 1995 (2 U.S.C. 1531–1538) requires follows:
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§ 165.T05–0031 Safety Zone, Delaware and local agencies in the patrol and I. Background River Rock Blasting; Marcus Hook, PA. enforcement of the zone. The SIP is a living document which (a) Location. The following area is a (e) Enforcement period. This rule will a state revises as necessary to address its safety zone: All the navigable waters of be enforced from February 10, 2019, unique air pollution problems. the Delaware River within 500 yards of through March 15, 2019, unless Therefore, the EPA from time to time, vessels and machinery performing rock cancelled earlier by the Captain of the must take action on SIP revisions blasting, rock removal, and dredging Port. containing new and/or revised operations, between Marcus Hook Range regulations as being part of the SIP. On and Tinicum Range. Dated: February 4, 2019. May 22, 1997, the EPA revised the (b) Definitions. As used in this Scott E. Anderson, section, designated representative Captain, U.S. Coast Guard, Captain of the procedures for incorporating by means any Coast Guard commissioned, Port, Delaware Bay. reference Federally-approved SIPs, as a warrant, or petty officer who has been [FR Doc. 2019–01602 Filed 2–7–19; 8:45 am] result of consultations between the EPA and the Office of the Federal Register authorized by the Captain of the Port to BILLING CODE 9110–04–P assist with enforcement of the safety (OFR) (62 FR 27968). The description of zone described in paragraph (a) of this the revised SIP document, IBR section. procedures and ‘‘Identification of plan’’ (c) Regulations. (1) Vessels wishing to ENVIRONMENTAL PROTECTION format are discussed in further detail in transit the safety zone in the main AGENCY the May 22, 1997 Federal Register navigational channel may do so if they document. On March 20, 2013, the EPA can make satisfactory passing 40 CFR Part 52 published a Federal Register beginning arrangements with the drill boat the new IBR procedure for Washington APACHE or the dredges TEXAS and [EPA–R10–OAR–2018–0796; FRL–9987–76– (78 FR 17108). The EPA subsequently NEW YORK, as applicable, in Region 10] published updates to the IBR material accordance with the Navigational Rules for Washington on December 8, 2014 (79 in 33 CFR subchapter E via VHF–FM Air Plan Approval; WA; Updates to FR 72548) and April 12, 2016 (70 FR channel 13 at least 30 minutes prior to Materials Incorporated by Reference 21470). Since the publication of the last arrival. If vessels are unable to make IBR update, the EPA approved and AGENCY: Environmental Protection satisfactory passing arrangements with incorporated by reference the changes Agency (EPA). the drill boat APACHE or the dredges listed below. ACTION: Final rule; administrative TEXAS and NEW YORK, they may A. Added Regulations request permission from the Captain of change. the Port, or his designated Table 2—Additional Regulations SUMMARY: representative, on VHF–FM channel 16. The Environmental Protection Approved for Washington Department (2) The operator of any vessel Agency (EPA) is updating the materials of Ecology (Ecology) Direct Jurisdiction that are incorporated by reference (IBR) requesting to transit through the safety • Washington Administrative Code, into the Washington State zone shall proceed as directed by the Chapter 173–400, General Regulations Implementation Plan (SIP). The drill boat APACHE, the dredges TEXAS for Air Pollution Sources, section 173– regulations affected by this update have and NEW YORK, or the designated 400–025 (Adoption of Federal Rules). been previously submitted by the representative of the Captain of the Port For more information, see 81 FR 69385 Washington State Department of and must operate at the minimum safe (October 6, 2016). speed necessary to maintain steerage Ecology (Ecology) and approved by the and reduce wake. EPA. In this action, the EPA is also Table 4—Additional Regulations (3) No vessel may transit through the notifying the public of corrections to Approved for the Benton Clean Air safety zone during times of explosive typographical errors and rearranging the Agency (BCAA) Jurisdiction detonation. During explosive contents for clarity. This update affects • Washington Administrative Code, detonation, vessels must maintain a the SIP materials that are available for Chapter 173–400, General Regulations 500-yard distance from the drill boat public inspection at the National for Air Pollution Sources, section 173– APACHE. The drill boat APACHE will Archives and Records Administration 400–025 (Adoption of Federal Rules). make broadcasts, via VHF–FM Channel (NARA) and the EPA Regional Office. For more information, see 81 FR 69385 13 and 16, at 15 minutes, 5 minutes, and DATES: This action is effective February (October 6, 2016). 1 minute prior to detonation, as well as 8, 2019. Table 8—Additional Regulations a countdown to detonation on VHF–FM ADDRESSES: SIP materials which are Approved for the Southwest Clean Air Channel 16. incorporated by reference into 40 CFR (4) After every explosive detonation Agency (SWCAA) Jurisdiction part 52 are available for inspection at • the dredging contractor will conduct a the following locations: Environmental Southwest Clean Air Agency, survey to ensure the navigational Protection Agency, Region 10, 1200 SWCAA 400, General Regulations for channel is clear for vessels to transit. Sixth Avenue, Seattle, WA 98101, or the Air Pollution Sources, sections 400–036 The drill boat APACHE will broadcast, National Archives and Records (Portable Sources from Other via VHF–FM channel 13 and 16, when Administration (NARA). For Washington Jurisdictions), 400–072 the survey has been completed and the information on the availability of this (Small Unit Notification for Selected channel is clear to transit. Vessels material at NARA, call (202) 741–6030, Source Categories), 400–106 (Emission requesting to transit through the safety or go to: https://www.archives.gov/ Testing and Monitoring at Air zone shall proceed as directed by the federal-register/cfr/ibr-locations.html. Contaminant Sources), 400–130 (Use of Captain of the Port and contact the drill Emission Reduction Credits), 400–131 boat APACHE on VHF–FM channel 13 FOR FURTHER INFORMATION CONTACT: Jeff (Deposit of Emission Reduction Credits to make safe passing arrangements. Hunt, EPA Region 10, (206) 553–0256, Into Bank), 400–136 (Maintenance of (d) Enforcement. The U.S. Coast [email protected]. Emission Reduction Credits in Bank), Guard may be assisted by Federal, State SUPPLEMENTARY INFORMATION: 400–800 (Major Stationary Source and
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Major Modification in a Nonattainment Sources and Portable Sources), 173– Table 8—Additional Regulations Area), 400–810 (Major Stationary Source 400–116 (Increment Protection), 173– Approved for the Southwest Clean Air and Major Modification Definitions), 400–171 (Public Notice and Agency (SWCAA) Jurisdiction 400–820 (Determining if a New Opportunity for Public Comment), 173– • Stationary Source or Modification to a 400–710 (Definitions), 173–400–720 Southwest Clean Air Agency, Stationary Source is Subject to These (Prevention of Significant Deterioration SWCAA 400, General Regulations for Requirements), 400–830 (Permitting (PSD)), 173–400–730 (Prevention of Air Pollution Sources, sections 400–010 Requirements), 400–840 (Emission Significant Deterioration Application (Policy and Purpose), 400–020 (Applicability), 400–030 (Definitions), Offset Requirements), 400–850 (Actual Processing Procedures), 173–400–740 400–040 (General Standards for Emissions—Plantwide Applicability (PSD Permitting Public Involvement Maximum Emissions), 400–050 Limitation (PAL)), 400–860 (Public Requirements), 173–400–810 (Major (Emission Standards for Combustion Involvement Procedures), Appendix A Stationary Source and Major (SWCAA Method 9 Visual Opacity and Incineration Units), 400–060 Modification Definitions), 173–400–830 Determination Method), and Appendix (Emission Standards for General Process (Permitting Requirements), 173–400– B (Description of Vancouver Ozone and Units), 400–070 (General Requirements Carbon Monoxide Maintenance Area 840 (Emission Offset Requirements), for Certain Source Categories), 400–074 Boundary). For more information, see 82 and 173–400–850 (Actual Emissions (Gasoline Transport Tanker FR 17136 (April 10, 2017). Plantwide Applicability Limitation Registration), 400–081 (Startup and • Washington Administrative Code, (PAL)). For more information, see 81 FR Shutdown), 400–091 (Voluntary Limits Chapter 173–400, General Regulations 69385 (October 6, 2016). on Emissions), 400–105 (Records, for Air Pollution Sources, sections 173– Table 3—Additional Regulations Monitoring and Reporting), 400–109 400–117 (Special Protection Approved for the Energy Facilities Site (Air Discharge Permit Applications), Requirements for Federal Class I Areas), Evaluation Council (EFSEC) Jurisdiction 400–110 (Application Review Process 173–400–118 (Designation of Class I, II, for Stationary Sources (New Source and III Areas), and 173–400–560 • Washington Administrative Code, Review)), 400–111 (Requirements for (General Order of Approval). For more Chapter 463–78, General and Operating New Sources in a Maintenance Plan information, see 82 FR 17136 (April 10, Permit Regulations for Air Pollution Area), 400–112 (Requirements for New 2017). Sources, sections 463–78–005 Sources in Nonattainment Areas), 400– B. Revised Regulations (Adoption by Reference), 463–78–010 113 (Requirements for New Sources in (Purpose), 463–78–020 (Applicability), Attainment or Nonclassifiable Areas), Table 1—Regulations Approved 463–78–030 (Additional Definitions), 400–114 (Requirements for Replacement Statewide 463–78–095 (Permit Issuance), and 463– or Substantial Alteration of Emission • Washington Administrative Code, 78–120 (Monitoring and Special Control Technology at an Existing Chapter 173–476, Ambient Air Quality Report). For more information, see 82 Stationary Source), 400–116 Standards, sections 173–476–020 FR 24531 (May 30, 2017). (Maintenance of Equipment), 400–151 (Applicability), 173–476–150 (Ambient (Retrofit Requirements for Visibility Air Quality Standard for Ozone), and Table 4—Additional Regulations Protection), 400–161 (Compliance 173–476–900 (Table of Standards). For Approved for the Benton Clean Air Schedules), 400–171 (Public more information, see 81 FR 69385 Agency (BCAA) Jurisdiction Involvement), 400–190 (Requirements (October 6, 2016). • Washington Administrative Code, for Nonattainment Areas), 400–200 Table 2—Additional Regulations Chapter 173–400, General Regulations (Vertical Dispersion Requirement, Creditable Stack Height and Dispersion Approved for Washington Department for Air Pollution Sources, sections 173– Techniques), 400–205 (Adjustment for of Ecology (Ecology) Direct Jurisdiction 400–040 (General Standards for Atmospheric Conditions), and 400–210 • Maximum Emissions), 173–400–050 Washington Administrative Code, (Emission Requirements of Prior (Emission Standards for Combustion Chapter 173–400, General Regulations Jurisdictions). For more information, see and Incineration Units), 173–400–060 for Air Pollution Sources, sections 173– 82 FR 17136 (April 10, 2017). We note (Emission Standards for General Process 400–110 (New Source Review (NSR) for that we are correcting a typographical Sources and Portable Sources) and 173– Units), 173–400–070 (Emission error in Table 8 to exclude SWCAA 400–112 (Requirements for New Sources Standards for Certain Source 400–113(5) from the SIP consistent with in Nonattainment Areas—Review for Categories), 173–400–105 (Records, the original proposal and final rule Compliance with Regulations). For more Monitoring, and Reporting), 173–400– preamble. information, see 81 FR 66823 111 (Processing Notice of Construction (September 29, 2016). Applications for Sources, Stationary Table 9—Additional Regulations • Washington Administrative Code, Sources and Portable Sources), 173– Approved for the Spokane Regional Chapter 173–400, General Regulations 400–171 (Public Notice and Clean Air Agency (SRCAA) Jurisdiction for Air Pollution Sources, sections 173– Opportunity for Public Comment), 173– • Spokane Regional Clean Air 400–040 (General Standards for 400–810 (Major Stationary Source and Agency, Regulation I, Article VI— Maximum Emissions), 173–400–050 Major Modification Definitions), 173– (Emission Standards for Combustion Emissions Prohibited, sections 6.05 400–830 (Permitting Requirements), and Incineration Units), 173–400–060 (Particulate Matter and Preventing 173–400–840 (Emission Offset (Emission Standards for General Process Particulate Matter from Becoming Requirements), and 173–400–850 Units), 173–400–070 (Emission Airborne), 6.14 (Standards for Control of Standards for Certain Source (Actual Emissions Plantwide Particulate Matter on Paved Surfaces), Categories), 173–400–105 (Records, Applicability Limitation (PAL)). For and 6.15 (Standards for Control of Monitoring, and Reporting), 173–400– more information, see 81 FR 69385 Particulate Matter on Unpaved Roads). 111 (Processing Notice of Construction (October 6, 2016). For more information, see 81 FR 21470 Applications for Sources, Stationary (April 12, 2016).
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C. Removed Regulations Oxygenated Gasoline). In a final action a matter of law in federal and approved dated June 29, 2005, the EPA approved state programs. Under section 553 of the Table 3—Additional Regulations the request to remove section 6.16 as a APA, an agency may find good cause Approved for the Energy Facilities Site control measure for the Spokane carbon where procedures are ‘‘impractical, Evaluation Council (EFSEC) Jurisdiction monoxide maintenance area (70 FR unnecessary, or contrary to the public • Washington Administrative Code 37269, page 37271). As discussed in the interest.’’ Public comment is (WAC) 463–39–100 (Registration) and preamble for that action, the Spokane ‘‘unnecessary’’ and ‘‘contrary to the WAC 173–400–151 (Retrofit Regional Clean Air Agency repealed public interest’’ since the codification Requirements), as adopted by reference section 6.16 on September 1, 2005, with only reflects existing law. Immediate in WAC 463–78–005. For more a commitment approved as part of the notice in the CFR benefits the public by information, see 82 FR 24531 (May 30, maintenance plan they would re-adopt removing outdated citations and 2017). section 6.16 should the Spokane area incorrect table entries. violate the carbon monoxide National Table 8—Additional Regulations III. Incorporation by Reference Approved For The Southwest Clean Air Ambient Air Quality Standards. As part Agency (SWCAA) Jurisdiction of our March 20, 2013 action beginning In this rule, the EPA is finalizing • the new IBR procedure for Washington, regulatory text that includes Southwest Clean Air Agency, the EPA inadvertently included section incorporation by reference. In SWCAA 400, General Regulations for 6.16 as an active control measure under accordance with requirements of 1 CFR Air Pollution Sources, sections 400–052 40 CFR 52.2470(c). The EPA is now 51.5, the EPA is finalizing the (Stack Sampling of Major Combustion correcting that typographical error. incorporation by reference of previously Sources), 400–090 (Voluntary Limits on EPA-approved regulations promulgated Emissions), 400–100 (Registration and D. Revised Source-Specific Requirements by Washington and federally-effective Operating Permits), and 400–101 prior to November 1, 2018. The EPA has • (Sources Exempt from Registration As part of the EPA’s approval of the made, and will continue to make, these Requirements). For more information, second 10-year carbon monoxide materials generally available through see 82 FR 17136 (April 10, 2017). limited maintenance plan for the www.regulations.gov and at the EPA • Washington Administrative Code, Spokane area, we removed the Region 10 Office (please contact the Chapter 173–400, General Regulations associated order and amendment for the person identified in the FOR FURTHER for Air Pollution Sources, sections 173– former Kaiser Aluminum and Chemical INFORMATION CONTACT section of this 400–010 (Policy and Purpose), 173– Corporation’s aluminum reduction plant preamble for more information). 400–020 (Applicability), 173–400–030 located in Mead, Washington from the (Definitions), 173–400–040 (General incorporation by reference because the IV. Statutory and Executive Order Standards for Maximum Emissions), facility had been shut down, Reviews 173–400–050 (Emission Standards for dismantled, and the operating permit A. General Requirements Combustion and Incineration Units), had been revoked. For more 173–400–060 (Emission Standards for information, see 81 FR 45417 (July 14, Under the Clean Air Act (CAA), the General Process Units), 173–400–070 2016). Administrator is required to approve a (Emission Standards for Certain Source SIP submission that complies with the II. EPA Action Categories), 173–400–081 (Startup and provisions of the CAA and applicable Shutdown), 173–400–091 (Voluntary In this action, the EPA is announcing Federal regulations. 42 U.S.C. 7410(k); Limits on Emissions), 173–400–100 the update to the IBR material as of 40 CFR 52.02(a). Thus, in reviewing SIP (Registration), 173–400–105 (Records, November 1, 2018. The EPA is also submissions, the EPA’s role is to Monitoring and Reporting), 173–400– correcting minor typographical errors in approve state choices, provided that 107 (Excess Emissions), 173–400–110 subsection 52.2470(c), including they meet the criteria of the CAA. (New Source Review (NSR)), 173–400– removing SRCAA, Regulation I, section Accordingly, this action merely 112 (Requirements for New Sources in 6.16 and SWCAA 400–113(5), as approves state law as meeting federal Nonattainment Areas), 173–400–113 discussed above. This action also requirements and does not impose (Requirements for New Sources in corrects the EPA’s approval date for the additional requirements beyond those Attainment or Unclassifiable Areas), Energy Facilities Site Evaluation imposed by state law. For that reason, 173–400–151 (Retrofit Requirements for Council’s incorporation by reference of this action: Visibility Protection), 173–400–161 WAC 173–400–060, which was • Is not a ‘‘significant regulatory (Compliance Schedules), 173–400–171 inadvertently omitted in our May 30, action’’ subject to review by the Office (Public Involvement), 173–400–190 2017 final action (82 FR 24531). Lastly, of management and Budget under (Requirements for Nonattainment the EPA is rearranging the content of Executive Orders 12866 (58 FR 51735, Areas), 173–400–200 (Creditable Stack subsection 52.2470(e) to organize the October 4, 1993) and 13563 (76 FR 3821, Height & Dispersion Techniques), 173– actions by pollutant and type for clarity. January 21, 2011); 400–205 (Adjustment for Atmospheric The EPA has determined that today’s • is not an Executive Order 13771 (82 Conditions), and 173–400–210 rule falls under the ‘‘good cause’’ FR 9339, February 2, 2017) regulatory (Emission Requirements of Prior exemption in section 553(b)(3)(B) of the action because SIP approvals are Jurisdictions). For more information, see Administrative Procedures Act (APA) exempted under Executive Order 12866; 82 FR 17136 (April 10, 2017). which, upon finding ‘‘good cause,’’ • does not impose an information authorizes agencies to dispense with collection burden under the provisions Table 9—Additional Regulations public participation and section of the Paperwork Reduction Act (44 Approved for the Spokane Regional 553(d)(3) which allows an agency to U.S.C. 3501 et seq.); Clean Air Agency (SRCAA) Jurisdiction make a rule effective immediately • is certified as not having a • Spokane Regional Clean Air (thereby avoiding the 30-day delayed significant economic impact on a Agency, Regulation I, Article VI— effective date otherwise provided for in substantial number of small entities Emissions Prohibited, section 6.16 the APA). Today’s rule simply codifies under the Regulatory Flexibility Act (5 (Motor Fuel Specifications for provisions which are already in effect as U.S.C. 601 et seq.);
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• does not contain any unfunded B. Submission to Congress and the i. Revising entry 173–400–060 in mandate or significantly or uniquely Comptroller General Table 3. affect small governments, as described The Congressional Review Act, 5 ii. Revising entry 400–113 in Table 8. in the Unfunded Mandates Reform Act U.S.C. 801 et seq., as added by the Small iii. Removing entry 6.16 from Table 9. of 1995 (Pub. L. 104–4); Business Regulatory Enforcement ■ c. In paragraph (e): • does not have Federalism Fairness Act of 1996, generally provides i. Amending Table 2 by moving the implications as specified in Executive that before a rule may take effect, the entry at the end of the table ‘‘Particulate Order 13132 (64 FR 43255, August 10, agency promulgating the rule must Matter (PM10) 2nd 10-Year Limited 1999); submit a rule report, which includes a Maintenance Plan’’ for the Spokane area after the entry ‘‘Particulate Matter • is not an economically significant copy of the rule, to each House of the (PM ) 2nd 10-Year Limited regulatory action based on health or Congress and to the Comptroller General 10 Maintenance Plan’’ for the Kent, Seattle, safety risks subject to Executive Order of the United States. The EPA will and Tacoma area. 13045 (62 FR 19885, April 23, 1997); submit a report containing this rule and other required information to the U.S. ii. Removing the undesignated • is not a significant regulatory action Senate, the U.S. House of heading ‘‘Recently Approved Plans’’ in subject to Executive Order 13211 (66 FR Representatives, and the Comptroller Table 2. 28355, May 22, 2001); General of the United States prior to The revisions read as follows: • is not subject to requirements of publication of the rule in the Federal § 52.2470 Identification of plan. Section 12(d) of the National Register. This rule is not a ‘‘major rule’’ * * * * * Technology Transfer and Advancement as defined by 5 U.S.C. 804(2). Act of 1995 (15 U.S.C. 272 note) because (b) Incorporation by reference. (1) this action does not involve technical C. Petitions for Judicial Review Material listed as incorporated by standards; and The EPA has also determined that the reference in paragraphs (c) and (d) of this section with an EPA approved date • does not provide the EPA with the provisions of section 307(b)(1) of the of November 1, 2018, was approved for discretionary authority to address, as CAA pertaining to petitions for judicial incorporation by reference by the appropriate, disproportionate human review are not applicable to this action. Director of the Federal Register in health or environmental effects, using Prior EPA rulemaking actions for each accordance with 5 U.S.C. 552(a) and 1 practicable and legally permissible individual component of the CFR part 51. The material incorporated methods, under Executive Order 12898 Washington SIP compilations had is as it exists on the date of the approval, (59 FR 7629, February 16, 1994). previously afforded interested parties the opportunity to file a petition for and notice of any change in the material The SIP is not approved to apply on will be published in the Federal any Indian reservation land in judicial review in the United States Court of Appeals for the appropriate Register. Entries in paragraphs (c) and Washington except as specifically noted (d) of this section with EPA approval below and is also not approved to apply circuit within 60 days of such rulemaking action. Thus, the EPA sees dates on or after November 1, 2018, will in any other area where the EPA or an be incorporated by reference in the next Indian tribe has demonstrated that a no need in this action to reopen the 60- day period for filing such petitions for update to the SIP compilation. tribe has jurisdiction. In those areas of (2)(i) EPA Region 10 certifies that the Indian country, the rule does not have judicial review for this ‘‘Identification of plan’’ update action for Washington. rules and regulations provided by the tribal implications as specified by EPA at the addresses in paragraph (b)(3) Executive Order 13175 (65 FR 67249, List of Subjects in 40 CFR Part 52 of this section are an exact duplicate of November 9, 2000). Washington’s SIP is Environmental protection, Air the officially promulgated state rules approved to apply on non-trust land pollution control, Carbon monoxide, and regulations which have been within the exterior boundaries of the Incorporation by reference, approved as part of the State Puyallup Indian Reservation, also Intergovernmental relations, Lead, Implementation Plan as of November 1, known as the 1873 Survey Area. Under Nitrogen dioxide, Ozone, Particulate 2018. the Puyallup Tribe of Indians matter, Reporting and record keeping (ii) EPA Region 10 certifies that the Settlement Act of 1989, 25 U.S.C. 1773, requirements, Sulfur oxides, Volatile following source-specific requirements Congress explicitly provided state and organic compounds. provided by the EPA at the addresses in local agencies in Washington authority Dated: November 21, 2018. paragraph (b)(3) of this section are an over activities on non-trust lands within exact duplicate of the officially Michelle L. Pirzadeh, the 1873 Survey Area. promulgated State source-specific In this rule, the EPA is finalizing Acting Regional Administrator, Region 10. requirements which have been regulatory text that includes 40 CFR part 52 is amended as follows: approved as part of the State incorporation by reference. In Implementation Plan as of November 1, accordance with requirements of 1 CFR PART 52—APPROVAL AND 2018. 51.5, the EPA is finalizing the PROMULGATION OF (3) Copies of the materials incorporation by reference of the IMPLEMENTATION PLANS incorporated by reference may be Washington regulations described in the ■ 1. The authority citation for part 52 inspected at the EPA Region 10, 1200 amendments to 40 CFR part 52 set forth continues to read as follows: Sixth Ave., Seattle, WA 98101; or at the below. The EPA has made, and will National Archives and Records continue to make, these documents Authority: 42 U.S.C. 7401 et seq. Administration (NARA). For generally available electronically Subpart WW—Washington information on the availability of this through www.regulations.gov and/or in material at NARA, call 202–741–6030, hard copy at the appropriate EPA office ■ 2. Section 52.2470 is amended by: or go to: https://www.archives.gov/ (see the ADDRESSES section of this ■ a. Revising paragraph (b); federal-register/cfr/ibr-locations.html. preamble for more information). ■ b. In paragraph (c): (c) * * *
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TABLE 3—ADDITIONAL REGULATIONS APPROVED FOR THE ENERGY FACILITIES SITE EVALUATION COUNCIL (EFSEC) JURISDICTION [See the SIP-approved provisions of WAC 463–78–020 for jurisdictional applicability]
State State citation Title/subject effective EPA approval date Explanations date
*******
Washington Administrative Code, Chapter 173–400 Regulations Incorporated by Reference in WAC 463–78–005
******* 173–400–060 .. Emission Standards for General 2/10/05 5/30/17, 82 FR 24531. Process Units.
*******
* * * * *
TABLE 8—ADDITIONAL REGULATIONS APPROVED FOR THE SOUTHWEST CLEAN AIR AGENCY (SWCAA) JURISDICTION [Applicable in Clark, Cowlitz, Lewis, Skamania and Wahkiakum counties, excluding facilities subject to Energy Facilities Site Evaluation Council (EFSEC) jurisdiction, Indian reservations and any other area where the EPA or an Indian tribe has demonstrated that a tribe has jurisdiction, and facilities subject to the applicability sections of WAC 173–405–012, 173–410–012, and 173–415–012]
State/local State/local Title/subject effective EPA approval date Explanations citation date
Southwest Clean Air Agency Regulations
SWCAA 400—General Regulations for Air Pollution Sources
******* 400–113 ...... Requirements for New Sources in 10/09/16 04/10/17, 82 FR 17136 ...... Except: 400–113(5). Attainment or Nonclassifiable Areas.
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* * * * * national emission standards for documents in the docket are listed on [FR Doc. 2018–27774 Filed 2–7–19; 8:45 am] hazardous air pollutants (NESHAP). In the https://www.regulations.gov BILLING CODE 6560–50–P addition, we are taking final action website. Although listed, some addressing periods of startup, information is not publicly available, shutdown, and malfunction (SSM). We e.g., confidential business information ENVIRONMENTAL PROTECTION are finalizing our proposed (CBI) or other information whose AGENCY determination that the risks from the disclosure is restricted by statute. category are acceptable and that the 40 CFR Part 63 Certain other material, such as current NESHAP provides an ample copyrighted material, is not placed on [EPA–HQ–OAR–2017–0358; FRL–9988–69– margin of safety to protect public health. the internet and will be publicly OAR] We identified no new cost-effective available only in hard copy form. RIN 2060–AT66 controls under the technology review to Publicly available docket materials are achieve further emissions reductions. available either electronically through National Emission Standards for These final amendments include https://www.regulations.gov, or in hard Hazardous Air Pollutants: Friction amendments to revise reporting copy at the EPA Docket Center, EPA Materials Manufacturing Facilities requirements for deviations. These WJC West Building, Room Number Residual Risk and Technology Review amendments are made under the authority of the Clean Air Act (CAA) 3334, 1301 Constitution Ave. NW, AGENCY: Environmental Protection and will improve the effectiveness of Washington, DC. The Public Reading Agency (EPA). the rule. The amendments are Room hours of operation are 8:30 a.m. ACTION: Final rule. environmentally neutral. to 4:30 p.m. Eastern Standard Time (EST), Monday through Friday. The SUMMARY: This action finalizes the DATES: This final rule is effective on telephone number for the Public residual risk and technology review February 8, 2019. Reading Room is (202) 566–1744, and (RTR) conducted for the Friction ADDRESSES: The EPA has established a Materials Manufacturing Facilities docket for this action under Docket ID the telephone number for the Docket source category regulated under No. EPA–HQ–OAR–2017–0358. All Center is (202) 566–1742.
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FOR FURTHER INFORMATION CONTACT: For the proposed rule and provide our Order 13563: Improving Regulation and questions about this final action, contact responses in this preamble. A summary Regulatory Review Korbin Smith, Sector Policies and of all other public comments on the B. Executive Order 13771: Reducing Programs Division (D243–04), Office of proposal and the EPA’s responses to Regulation and Controlling Regulatory Costs Air Quality Planning and Standards, those comments is available in C. Paperwork Reduction Act (PRA) U.S. Environmental Protection Agency, ‘‘Summary of Public Comments and D. Regulatory Flexibility Act (RFA) Research Triangle Park, North Carolina, Responses for Friction Materials E. Unfunded Mandates Reform Act 27711; telephone number: (919) 541– Manufacturing Facilities Risk and (UMRA) 2416; fax number: (919) 541–4991; and Technology Review,’’ Docket ID No. F. Executive Order 13132: Federalism email address: [email protected]. EPA–HQ–OAR–2017–0358. A ‘‘track G. Executive Order 13175: Consultation For specific information regarding the changes’’ version of the regulatory and Coordination With Indian Tribal risk modeling methodology, contact language that incorporates the changes Governments H. Executive Order 13045: Protection of James Hirtz, Health and Environmental in this action is available in the docket. Children From Environmental Health Impacts Division (C539–02), Office of Organization of this document. The Risks and Safety Risks Air Quality Planning and Standards, information in this preamble is I. Executive Order 13211: Actions U.S. Environmental Protection Agency, organized as follows: Concerning Regulations That Research Triangle Park, North Carolina I. General Information Significantly Affect Energy Supply, 27711; telephone number: (919) 541– A. Does this action apply to me? Distribution, or Use 0881; fax number: (919) 541–0840; and B. Where can I get a copy of this document J. National Technology Transfer and email address: [email protected]. For and other related information? Advancement Act (NTTAA) C. Judicial Review and Administrative K. Executive Order 12898: Federal Actions information about the applicability of To Address Environmental Justice in the NESHAP to a particular entity, Reconsideration II. Background Minority Populations and Low-Income contact Sara Ayres, Office of A. What is the statutory authority for this Populations Enforcement and Compliance action? L. Congressional Review Act (CRA) Assurance, U.S. Environmental B. What is the Friction Materials I. General Information Protection Agency, EPA WJC South Manufacturing Facilities source category Building, 1200 Pennsylvania Ave. NW, and how does the NESHAP regulate HAP A. Does this action apply to me? emissions from the source category? Washington, DC 20460; telephone Regulated entities. Categories and number: (312) 353–6266; and email C. What changes did we propose for the Friction Materials Manufacturing entities potentially regulated by this address: [email protected]. Facilities source category in our May 3, action are shown in Table 1 of this SUPPLEMENTARY INFORMATION: 2018, proposal? preamble. Preamble acronyms and III. What is included in this final rule? abbreviations. We use multiple A. What are the final rule amendments TABLE 1—NESHAP AND INDUSTRIAL based on the risk review for the Friction acronyms and terms in this preamble. SOURCE CATEGORIES AFFECTED BY While this list may not be exhaustive, to Materials Manufacturing Facilities THIS FINAL ACTION ease the reading of this preamble and for source category? B. What are the final rule amendments reference purposes, the EPA defines the NESHAP and based on the technology review for the NAICS 1 code following terms and acronyms here: Friction Materials Manufacturing source category CAA Clean Air Act Facilities source category? CFR Code of Federal Regulations C. What are the final rule amendments Friction Materials 33634, 327999, EPA Environmental Protection Agency addressing emissions during periods of Manufacturing Fa- 333613. HAP hazardous air pollutant(s) SSM? cilities. ICR Information Collection Request D. What other changes have been made to 1 the NESHAP? North American Industry Classification km kilometer System. MACT maximum achievable control E. What are the effective and compliance technology dates of the standards? Table 1 of this preamble is not NAICS North American Industry IV. What is the rationale for our final intended to be exhaustive, but rather to Classification System decisions and amendments for the provide a guide for readers regarding NESHAP national emission standards for Friction Materials Manufacturing entities likely to be affected by the final Facilities source category? hazardous air pollutants action for the source category listed. To NTTAA National Technology Transfer and A. Residual Risk Review for the Friction Materials Manufacturing Facilities determine whether your facility is Advancement Act affected, you should examine the OMB Office of Management and Budget Source Category PRA Paperwork Reduction Act B. Technology Review for the Friction applicability criteria in the appropriate RFA Regulatory Flexibility Act Materials Manufacturing Facilities NESHAP. If you have any questions RFPC Railroad Friction Products Source Category regarding the applicability of any aspect Corporation C. SSM of this NESHAP, please contact the RTC response to comment V. Summary of Cost, Environmental, and Economic Impacts and Additional appropriate person listed in the RTR residual risk and technology review Analyses Conducted preceding FOR FURTHER INFORMATION SSM startup, shutdown, and malfunction A. What are the affected sources? CONTACT section of this preamble. tpy tons per year B. What are the air quality impacts? UMRA Unfunded Mandates Reform Act B. Where can I get a copy of this C. What are the cost impacts? Background information. On May 3, D. What are the economic impacts? document and other related 2018, the EPA proposed revisions to the E. What are the benefits? information? Friction Materials Manufacturing F. What analysis of environmental justice In addition to being available in the Facilities NESHAP based on our RTR. In did we conduct? docket, an electronic copy of this final G. What analysis of children’s this action, we are finalizing decisions environmental health did we conduct? action will also be available on the and revisions for the rule. We VI. Statutory and Executive Order Reviews internet. Following signature by the summarize some of the more significant A. Executive Orders 12866: Regulatory EPA Administrator, the EPA will post a comments we timely received regarding Planning and Review and Executive copy of this final action at: https://
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www.epa.gov/stationary-sources-air- II. Background environmental impacts, and energy requirements. pollution/friction-materials- A. What is the statutory authority for manufacturing-facilities-national- this action? In the second stage of the regulatory emission. Following publication in the process, the CAA requires the EPA to Federal Register, the EPA will post the Section 112 of the CAA establishes a undertake two different analyses, which Federal Register version and key two-stage regulatory process to address we refer to as the technology review and emissions of hazardous air pollutants technical documents at this same the residual risk review. Under the (HAP) from stationary sources. In the website. technology review, we must review the first stage, we must identify categories technology-based standards and revise Additional information is available on of sources emitting one or more of the them ‘‘as necessary (taking into account the RTR website at https:// HAP listed in CAA section 112(b) and developments in practices, processes, www.epa.gov/ttn/atw/rrisk/rtrpg.html. then promulgate technology-based and control technologies)’’ no less This information includes an overview NESHAP for those sources. ‘‘Major frequently than every 8 years, pursuant sources’’ are those that emit, or have the of the RTR program, links to project to CAA section 112(d)(6). Under the potential to emit, any single HAP at a websites for the RTR source categories, residual risk review, we must evaluate rate of 10 tons per year (tpy) or more, and detailed emissions and other data the risk to public health remaining after or 25 tpy or more of any combination of we used as inputs to the risk application of the technology-based HAP. For major sources, these standards assessments. standards and revise the standards, if are commonly referred to as maximum C. Judicial Review and Administrative achievable control technology (MACT) necessary, to provide an ample margin Reconsideration standards and must reflect the of safety to protect public health or to maximum degree of emission reductions prevent, taking into consideration costs, Under CAA section 307(b)(1), judicial of HAP achievable (after considering energy, safety, and other relevant review of this final action is available cost, energy requirements, and non-air factors, an adverse environmental effect. only by filing a petition for review in quality health and environmental The residual risk review is required the United States Court of Appeals for impacts). In developing MACT within 8 years after promulgation of the the District of Columbia Circuit (the standards, CAA section 112(d)(2) directs technology-based standards, pursuant to Court) by April 9, 2019. Under CAA the EPA to consider the application of CAA section 112(f). In conducting the section 307(b)(2), the requirements measures, processes, methods, systems, residual risk review, if the EPA established by this final rule may not be or techniques, including, but not limited determines that the current standards challenged separately in any civil or to, those that reduce the volume of or provide an ample margin of safety to criminal proceedings brought by the eliminate HAP emissions through protect public health, it is not necessary process changes, substitution of to revise the MACT standards pursuant EPA to enforce the requirements. 1 materials, or other modifications; to CAA section 112(f). For more Section 307(d)(7)(B) of the CAA enclose systems or processes to information on the statutory authority further provides that only an objection eliminate emissions; collect, capture, or for this rule, see 83 FR 19499. to a rule or procedure which was raised treat HAP when released from a process, with reasonable specificity during the B. What is the Friction Materials stack, storage, or fugitive emissions Manufacturing Facilities source period for public comment (including point; are design, equipment, work category and how does the NESHAP any public hearing) may be raised practice, or operational standards; or regulate HAP emissions from the source during judicial review. This section also any combination of the above. category? provides a mechanism for the EPA to For these MACT standards, the statute reconsider the rule if the person raising specifies certain minimum stringency The EPA promulgated the Friction an objection can demonstrate to the requirements, which are referred to as Materials Manufacturing Facilities Administrator that it was impracticable MACT floor requirements, and which NESHAP on October 18, 2002 (67 FR to raise such objection within the period may not be based on cost 64498). The standards are codified at 40 for public comment or if the grounds for considerations. See CAA section Code of Federal Regulations (CFR) part such objection arose after the period for 112(d)(3). For new sources, the MACT 63, subpart QQQQQ. The Friction public comment (but within the time floor cannot be less stringent than the Materials Manufacturing Facilities specified for judicial review) and if such emission control achieved in practice by industry consists of facilities that objection is of central relevance to the the best-controlled similar source. The manufacture friction materials using a outcome of the rule. Any person seeking MACT standards for existing sources solvent-based process. Friction can be less stringent than floors for new to make such a demonstration should materials are used in the manufacture of sources, but they cannot be less products used to accelerate or decelerate submit a Petition for Reconsideration to stringent than the average emission objects. Products that use friction the Office of the Administrator, U.S. limitation achieved by the best- materials include, but are not limited to, EPA, Room 3000, EPA WJC South performing 12 percent of existing disc brake pucks, disc brake pads, brake Building, 1200 Pennsylvania Ave. NW, sources in the category or subcategory linings, brake shoes, brake segments, Washington, DC 20460, with a copy to (or the best-performing five sources for blocks, brake discs, clutch facings, and both the person(s) listed in the categories or subcategories with fewer clutches. The source category covered preceding FOR FURTHER INFORMATION than 30 sources). In developing MACT by this MACT standard currently CONTACT section, and the Associate standards, we must also consider includes two facilities. General Counsel for the Air and control options that are more stringent Radiation Law Office, Office of General than the floor under CAA section 1 The Court has affirmed this approach of Counsel (Mail Code 2344A), U.S. EPA, 112(d)(2). We may establish standards implementing CAA section 112(f)(2)(A): NRDC v. 1200 Pennsylvania Ave. NW, more stringent than the floor, based on EPA, 529 F.3d 1077, 1083 (D.C. Cir. 2008) (‘‘If EPA determines that the existing technology-based Washington, DC 20460. the consideration of the cost of standards provide an ‘ample margin of safety,’ then achieving the emissions reductions, any the Agency is free to readopt those standards during non-air quality health and the residual risk rulemaking.’’).
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The affected source is each friction A. What are the final rule amendments We have eliminated the SSM material manufacturing solvent mixer. based on the risk review for the Friction exemption in this rule. Consistent with The NESHAP regulates emissions of Materials Manufacturing Facilities Sierra Club v. EPA, the EPA has HAP through emission standards for source category? established standards in this rule that solvent, which are emitted from solvent The EPA proposed no changes to the apply at all times. We have also revised Table 4 to subpart QQQQQ of Part 63 mixers. Facilities subject to the 40 CFR part 63, subpart QQQQQ, NESHAP must reduce the emissions by (the General Provisions applicability NESHAP based on the risk review using solvent recovery or another table) in several respects as is explained conducted pursuant to CAA section approved method. The emission in more detail below. For example, we 112(f). We are finalizing our proposed standards are the same for new and have eliminated the incorporation of the determination that risks from the source existing solvent mixers, but are different General Provisions’ requirement that the category following implementation of for small and large solvent mixers. The source develop an SSM plan. We have MACT standards are acceptable, emission limit for new, reconstructed, also eliminated and revised certain considering all the health information and existing large solvent mixers recordkeeping and reporting that are and factors evaluated, and also requires each facility that operates a related to the SSM exemption as considering risk estimation uncertainty. large solvent mixer to limit HAP solvent described in detail in the proposal and emissions to the atmosphere to no more The EPA received no new data or other summarized below. than 30 percent of that which would information during the public comment D. What other changes have been made otherwise be emitted in the absence of period that affected our determinations. to the NESHAP? solvent recovery and/or solvent Therefore, we are not requiring substitution, based on a 7-day block additional controls and, thus, are not The EPA is promulgating revisions to average. The emission limit for new, making any revisions to the existing the rule’s reporting requirements at 40 reconstructed, and existing small standards, in order to meet the CFR 63.9540(c)(2) for deviations by solvent mixers requires facilities requirements of CAA section 112(f). requiring facilities to now report the operating small solvent mixers to limit (However, as previously noted, we are date, time, a list of affected sources or HAP solvent emissions to the making limited changes in order to equipment, an estimate of the quantity atmosphere to no more than 15 percent improve implementation and to of each regulated pollutant emitted over of that which would otherwise be conform our standards to the 2008 any emission limit, a description of the emitted in the absence of solvent Sierra Club ruling regarding SSM.) method used to estimate the emissions, recovery and/or solvent substitution, B. What are the final rule amendments and the corrective action taken. In based on a 7-day block average. based on the technology review for the addition, facilities must continue to report the number, duration, and cause C. What changes did we propose for the Friction Materials Manufacturing Facilities source category? of deviations (including unknown Friction Materials Manufacturing cause, if applicable). To see how the Facilities source category in our May 3, We determined that there are no revised regulatory text compares to the 2018, proposal? developments in practices, processes, previous text, see the document, On May 3, 2018, the EPA published and control technologies that warrant ‘‘Redline Version Showing Proposed a proposed rule in the Federal Register revisions to the MACT standards for this Changes to 40 CFR part 63 subpart for the Friction Materials Manufacturing source category. The EPA received no QQQQQ,’’ presenting 40 CFR Facilities NESHAP, 40 CFR part 63, new data or other information during 63.9540(c)(2), in Docket ID No. EPA– subpart QQQQQ, that took into the public comment period that affected HQ–OAR–2017–0358. consideration the RTR analyses. In the our determinations. Therefore, we are E. What are the effective and proposed rule, we proposed revisions to not finalizing revisions to the MACT the SSM provisions of the MACT rule in standards in order to meet the compliance dates of the standards? order to ensure that they are consistent requirements of CAA section 112(d)(6). The revisions to the NESHAP being with the Court decision in Sierra Club (Again, however, we are making limited promulgated in this action are effective v. EPA, 551 F.3d 1019 (D.C. Cir. 2008), changes for other purposes, as on February 8, 2019. The compliance which vacated two provisions in the previously noted and explained in date for existing affected sources, EPA’s ‘‘General Provisions’’ detail below.) whether subject to the existing or new source limits in the original rule, to implementing CAA section 112 at 40 C. What are the final rule amendments comply with the revised requirements is CFR part 63, subpart A, that exempted addressing emissions during periods of no later than 180 days after the effective sources from the requirement to comply SSM? with otherwise applicable CAA section date of the final rule. Affected sources 112(d) emission standards during In its 2008 decision in Sierra Club v. that commenced construction or periods of SSM. In addition, we EPA, 551 F.3d 1019 (D.C. Cir. 2008), the reconstruction after May 3, 2018, must proposed to revise the rule’s reporting Court vacated portions of two comply with the all of the standards requirements for deviations. provisions in the EPA’s CAA section immediately upon the effective date of 112 ‘‘General Provisions’’ regulations the standard, February 8, 2019, or upon III. What is included in this final rule? governing the emissions of HAP during startup, whichever is later. This action finalizes the EPA’s periods of SSM. Specifically, the Court All affected existing facilities would determinations pursuant to the RTR vacated the SSM exemption contained have to continue to meet the current provisions of CAA section 112 for the in 40 CFR 63.6(f)(1) and 40 CFR requirements of 40 CFR part 63, subpart Friction Materials Manufacturing 63.6(h)(1), holding that under section QQQQQ, until the applicable Facilities source category. This action 302(k) of the CAA, emissions standards compliance date of the amended rule. also finalizes other changes to the or limitations must be continuous in The final action is not a ‘‘major rule’’ as NESHAP, including amendments to the nature and that the SSM exemption defined by 5 U.S.C. 804(2), so the SSM provisions of the MACT rule and violates the CAA’s requirement that effective date of the final rule will be the revisions to the rule’s reporting some CAA section 112 standards apply promulgation date as specified in CAA requirements for deviations. continuously. sections 112(d)(10) and 112(f)(3). For
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existing sources, we are finalizing two Materials Manufacturing Facilities populations exposed to HAP emissions changes that would impact ongoing NESHAP. Allowable emissions for the from this source category. The compliance requirements for 40 CFR Railroad Friction Products Corporation correction to the average risk values for part 63, subpart QQQQQ. As discussed (RFPC) at proposal were estimated to be the demographic analysis did not affect elsewhere in this preamble, we are equal to actual emissions. Allowable any decision in this rulemaking. All changing the requirements for SSM by emissions for Knowlton Technologies other parts of the risk review remained removing the exemption from the LLC were set to the standard minimum unchanged from proposal. of 70 percent of what otherwise would requirements to meet the standard 3. What key comments did we receive be emitted. The estimated inhalation during SSM periods and by removing on the risk review, and what are our cancer risk to the individual most the requirement to develop and responses? implement an SSM plan. Our exposed to emissions from the source experience with similar industries category was less than 1-in-1-million. We received several comments shows that this sort of regulated facility The assessment showed that no people regarding the proposed risk review and generally requires a time period of 180 faced an increased cancer risk greater our determination that no revisions days to read and understand the than 1-in-1 million due to inhalation were warranted under CAA section amended rule requirements; evaluate exposure to HAP emissions from this 112(f)(2). Generally, the comments their operations to ensure that they can source category. The risk analysis at misunderstood the type of data used for meet the standards during periods of proposal indicated very low cancer the development of the risk review or startup and shutdown as defined in the incidence (0.000005 excess cancer cases suggested changes to the underlying risk rule, and make any necessary per year, or one excess case every assessment methodology. After review adjustments in their practice of 200,000 years), as well as low potential of these comments, we determined that reporting deviations per the rule’s for adverse chronic noncancer health no changes were necessary. The revised requirements; adjust parameter effects. The acute screening assessment comments and our specific responses monitoring and recording systems to indicated no pollutants or facilities can be found in the document, accommodate revisions; and update exceeding a hazard quotient value of 1. ‘‘Summary of Public Comments and their operations to reflect the revised Therefore, we found there was little Responses for Friction Materials requirements. From our assessment of potential concern of acute noncancer Manufacturing Facilities Risk and the timeframe needed for compliance health impacts. In evaluating the Technology Review,’’ which is available in the docket for this action. with the entirety of the revised potential for multipathway effects, no These comments resulted in the EPA requirements, the EPA considers a HAP emissions known to be persistent correcting the demographic analysis, period of 180 days to be the most and bio-accumulative in the environment were found in this source which did not result in a change in the expeditious compliance period EPA’s determination that the risks for practicable and, thus, is finalizing that category. Therefore, we estimate that there is no multipathway risk from HAP this source category are acceptable and existing affected sources must be in that the NESHAP protects public health compliance with all of this regulation’s emissions from this source category. Considering all the health risk with an ample margin of safety. revised requirements within 180 days of Additionally, a stakeholder the regulation’s effective date. information, the EPA proposed that the risks from the Friction Materials commented on how the EPA set IV. What is the rationale for our final Manufacturing Facilities source category allowable emissions equal to actual decisions and amendments for the were acceptable, and that emissions at RFPC. The EPA agrees with Friction Materials Manufacturing implementation of the existing the stakeholder that allowable emissions Facilities source category? standards provide an ample margin of should have been calculated by setting safety to protect public health. the solvent mixer emissions at 30 For each issue, this section provides percent of the total solvent used, which a description of what we proposed and 2. How did the risk review change for is the requirement in the rule. However, what we are finalizing, the EPA’s the Friction Materials Manufacturing this would result in a lower emissions rationale for the final decisions and Facilities source category? calculation than what was used at amendments, and a summary of key In response to comments on the proposal to estimate risk at allowable comments and responses. For all proposed 40 CFR part 63, subpart emission levels. Therefore, the EPA has comments not discussed in this QQQQQ RTR, the EPA acknowledges determined that the proposal risk preamble, comment summaries and the that, although the EPA’s method of estimates for allowable emissions were EPA’s responses can be found in the calculating cancer incidence was overestimated, and, since we found that comment summary and response implemented correctly, with the results even with this overestimate that risks document available in the docket, EPA– presented correctly in the RTR risk are acceptable and that the current HQ–OAR–2017–0358. report, we agree that the average risk standards provide an ample margin of A. Residual Risk Review for the Friction values provided for the demographic safety, it is not necessary to re-run the Materials Manufacturing Facilities analysis were calculated incorrectly. model file in order to reflect such a Source Category The EPA corrected the values for the correction. demographics analysis and provided Lastly, one comment resulted in the 1. What did we propose pursuant to those corrections in the final RTR risk EPA clarifying the inclusion of CAA section 112(f) for the Friction report for this source category. After emissions that do not come from Materials Manufacturing Facilities making this correction, the EPA finds affected sources in the source category. source category? that the risks presented by HAP The stakeholder points out that the EPA For the 40 CFR part 63, subpart emissions from this source category are assumes fugitive emissions are QQQQQ, category risk assessment still acceptable and that the NESHAP controlled under this standard. The EPA conducted at proposal, the EPA protects public health with an ample clarifies in the response to comments estimated risks based on actual and margin of safety. The demographic (RTC) document that phenol and allowable emissions from the two analysis provides information about the formaldehyde emissions from Knowlton facilities subject to the Friction demographic composition of the are non-affected source fugitive
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emissions. Including phenol and revisions were warranted under CAA C. SSM formaldehyde in the risk model results section 112(d)(6). We received no 1. What did we propose for the Friction in a conservative assessment of risk comments that identified improved Materials Manufacturing Facilities presented by emissions that do not control technology, work practices, source category? come from the affected sources in the operational procedures, process source category, but from other points at changes, or pollution prevention In its 2008 decision in Sierra Club v. the facility that are not subject to this approaches to reduce emissions in the EPA, 551 F.3d 1019 (D.C. Cir. 2008), the NESHAP. category since promulgation of the Court vacated portions of two 4. What is the rationale for our final current NESHAP. Generally, the provisions in the EPA’s CAA section approach and final decisions for the risk commenters misunderstood the role of 112 General Provisions regulations review? the technology review and the governing the emissions of HAP during We evaluated all the comments on the associated evaluations of technological periods of SSM. Specifically, the Court EPA’s risk review and determined that advancements. After review of these vacated the SSM exemption contained other than the change in the comments, we determined that no in 40 CFR 63.6(f)(1) and 40 CFR demographic analysis calculation, changes were necessary. The comments 63.6(h)(1), holding that under section which did not result in a change to the and our specific responses can be found 302(k) of the CAA, emissions standards risk determination, no changes to the in the document, ‘‘Summary of Public or limitations must be continuous in review are needed. For the reasons Comments and Responses for Friction nature and that the SSM exemption explained in the proposed rule, we Materials Manufacturing Facilities Risk violates the CAA’s requirement that determined that the risks from the and Technology Review,’’ which is some CAA section 112 standards apply Friction Materials Manufacturing available in the docket for this action. continuously. Facilities source category are acceptable, Of the comments pertaining to the We proposed amendments to the and the current standards provide an technology review, there were several ample margin of safety to protect public Friction Materials Manufacturing comments that addressed the EPA’s Facilities NESHAP to remove or revise health and prevent an adverse discussion of non-solvent mixers. environmental effect. Therefore, provisions related to SSM that are not Several comments addressed the pursuant to CAA section 112(f)(2), we consistent with the requirement that the concern that the EPA was appearing to are finalizing our risk review standards apply at all times. More endorse facilities’ averaging among determination as proposed. information concerning SSM is in the mixers in order to comply with the preamble to the proposed rule (83 FR B. Technology Review for the Friction standard. The EPA stated in the RTC 19499). Materials Manufacturing Facilities document and reiterates here that Source Category compliance determinations are not part 2. How did the SSM provisions change 1. What did we propose pursuant to of the RTR, that the current standards for the Friction Materials Manufacturing CAA section 112(d)(6) for the Friction apply on a mixer-by-mixer basis, and Facilities source category? Materials Manufacturing Facilities that the EPA is not proposing any The SSM provisions did not change source category? changes to the source category or from proposal. Our review of the developments in affected source definitions in this technology for the Friction Materials action. 3. What key comments did we receive Manufacturing Facilities source category 4. What is the rationale for our final on the SSM provisions, and what are did not reveal any changes in practices, approach for the technology review? our responses? processes, and controls that warrant revisions to the emission standards. Our technology review looked for We received one comment supporting Because our review did not identify any add-on control technology that was not our proposed changes to the SSM cost-effective practices, processes, or identified during the original NESHAP provisions. The EPA acknowledges the controls to reduce emissions in the development and for improvements to comment supporting the proposed category since promulgation of the existing add-on controls. We also looked changes. current NESHAP, we proposed that no for new work practices, operational 4. What is the rationale for our final revisions to the NESHAP are necessary procedures, process changes, pollution approach for the SSM provisions? pursuant to CAA section 112(d)(6). prevention alternatives, coating 2. How did the technology review formulations, or application techniques We evaluated the comment on the change for the Friction Materials that have the potential to reduce EPA’s proposed amendments to the Manufacturing Facilities source emissions. Since our review did not SSM provisions. For the reasons category? identify any cost-effective improved explained in the proposed rule, we control technology, work practices, The technology review did not change determined that these amendments from proposal. Therefore, we are operational procedures, process remove or revise provisions related to finalizing our proposal determination changes, or pollution prevention SSM that are not consistent with the that no revisions to the NESHAP are approaches to reduce emissions in the requirement that the standards apply at necessary pursuant to CAA section category since promulgation of the all times. More information concerning 112(d)(6). current NESHAP, we proposed that no the proposed amendments to the SSM revisions to the NESHAP are necessary provisions is in the preamble to the 3. What key comments did we receive pursuant to CAA section 112(d)(6). proposed rule (83 FR 19499). We are on the technology review, and what are Since proposal, no information has been finalizing the amendments to remove or our responses? presented to cause us to change the revise provisions related to SSM, as We received several comments proposed determination. Consequently, proposed. regarding the proposed technology we are finalizing our CAA section review and our determination that no 112(d)(6) determination as proposed.
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V. Summary of Cost, Environmental, through 2026 is $5,920 per year when justice. Its main provision directs and Economic Impacts and Additional costs are discounted at a 7-percent rate, federal agencies, to the greatest extent Analyses Conducted and $6,648 per year when costs are practicable and permitted by law, to discounted at a 3-percent rate. For A. What are the affected facilities? make environmental justice part of their further information on the costs and mission by identifying and addressing, There are currently two friction cost savings associated with the as appropriate, disproportionately high materials manufacturing facilities requirements being revised, see the and adverse human health or operating in the United States that are memorandum, ‘‘Economic Impact environmental effects of their programs, subject to the Friction Materials Analysis for Friction Material policies, and activities on minority Manufacturing Facilities NESHAP. The Manufacturing Final Rule,’’ and the populations and low-income 40 CFR part 63, subpart QQQQQ, document, ‘‘Friction Materials populations in the United States. affected source is the solvent mixers Manufacturing 2018 Supporting used for friction manufacturing Statement,’’ which are both available in To examine the potential for any products. A new affected source is a the docket for this action. environmental justice issues that might completely new friction products be associated with the source category, D. What are the economic impacts? manufacturing source where previously we performed a demographic analysis, no friction products manufacturing had As noted earlier, this action will which is an assessment of risks to existed. result in a net cost savings to affected individual demographic groups of the entities. This cost savings is not B. What are the air quality impacts? populations living within 5 kilometers expected to have adverse economic (km) and within 50 km of the facilities. At the current level of control, the impacts. EPA estimates emissions of total HAP In the analysis, we evaluated the are approximately 240 tpy. Because we E. What are the benefits? distribution of HAP-related cancer and are not finalizing revisions to the The EPA did not change any of the noncancer risks from the Friction emission limits other than to make them emission limit requirements and Materials Manufacturing Facilities applicable during SSM periods, we do estimates the final changes to SSM, source category across different not anticipate any air quality impacts as recordkeeping, reporting, and demographic groups within the a result of the proposed amendments, monitoring are not economically populations living near facilities.2 since facilities are already in significant. Because these final The results of the demographic compliance with emission limits during amendments are not considered analysis was updated from proposal to all periods, including SSM. economically significant, as defined by reflect corrections made to the analysis Executive Order 12866 and because no C. What are the cost impacts? from comments received by the EPA emission reductions were estimated, we The two existing friction materials and are summarized in Table 2 below. did not estimate any benefits from These results, for various demographic manufacturing facilities that are subject reducing emissions. to the final amendments would incur a groups, are based on the estimated risks net cost savings resulting from the F. What analysis of environmental from actual emissions levels for the revised recordkeeping and reporting justice did we conduct? population living within 50 km of the requirements. The 2016 equivalent Executive Order 12898 (59 FR 7629, facilities. annualized value (in 2016 dollars) of February 16, 1994) establishes federal these net cost savings from 2019 executive policy on environmental
TABLE 2—FRICTION MATERIALS MANUFACTURING FACILITIES SOURCE CATEGORY DEMOGRAPHIC RISK ANALYSIS RESULTS
Population with Population with cancer risk at chronic hazard or above 1-in-1 index above 1 Nationwide million due to Friction Friction Materials Materials Manufacturing Manufacturing Facilities Facilities 1
Total Population ...... 317,746,049 0 0 Race by Percent: White ...... 62 0 0 All Other Races ...... 38 0 0 Race by Percent: White ...... 62 0 0 African American ...... 12 0 0 Native American ...... 0.8 0 0 Other and Multiracial ...... 7 0 0 Ethnicity by Percent: Hispanic ...... 18 0 0 Non-Hispanic ...... 82 0 0 Income by Percent: Below Poverty Level ...... 14 0 0 Above Poverty Level ...... 86 0 0 Education by Percent:
2 Demographic groups included in the analysis children 17 years of age and under, adults 18 to 64 the poverty level, people living two times the are: White, African American, Native American, years of age, adults 65 years of age and over, adults poverty level, and linguistically isolated people. other races and multiracial, Hispanic or Latino, without a high school diploma, people living below
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TABLE 2—FRICTION MATERIALS MANUFACTURING FACILITIES SOURCE CATEGORY DEMOGRAPHIC RISK ANALYSIS RESULTS—Continued
Population with Population with cancer risk at chronic hazard or above 1-in-1 index above 1 Nationwide million due to Friction Friction Materials Materials Manufacturing Manufacturing Facilities Facilities 1
Over 25 and without High School Diploma ...... 14 0 0 Over 25 and with a High School Diploma ...... 86 0 0 Linguistically Isolated by Percent: Linguistically Isolated ...... 6 0 0 1 Based on actual emissions in the category.
The results of the Friction Materials Demographic Factors for Populations C. Paperwork Reduction Act (PRA) Manufacturing Facilities source category Living Near Friction Materials The information collection activities demographic analysis indicate that Manufacturing Facilities Source in this rule have been submitted for emissions from the source category do Category,’’ available in Docket ID No. approval to OMB under the PRA. The not expose people to a cancer risk at or EPA–HQ–OAR–2017–0358 for this Information Collection Request (ICR) above 1-in-1 million based on actual or action. document that the EPA prepared has allowable emissions. Also, no people G. What analysis of children’s been assigned EPA ICR number 2025.08. are exposed to a chronic noncancer environmental health did we conduct? You can find a copy of the ICR in the target organ-specific hazard index docket for this rule, and it is briefly greater than 1 based on actual or This action is not subject to Executive Order 13045 because it is not summarized here. The information allowable emissions. The percentages of collection requirements are not the at-risk population are much smaller economically significant as defined in Executive Order 12866, and because the enforceable until OMB approves them. than their respective nationwide We are finalizing changes to the EPA does not believe the environmental percentages for all demographic groups. recordkeeping and reporting health or safety risks addressed by this The EPA received comment on our requirements associated with 40 CFR proposed rule stating that we ignored action present a disproportionate risk to children. This action’s health and risk part 63, subpart QQQQQ, in the form of unacceptably disproportionate effects eliminating the SSM plan and reporting on environmental justice communities. assessments are contained in ‘‘Residual Risk Assessment for the Friction requirements and increasing reporting As noted above, we corrected our requirements for the semiannual report demographic analysis. For this source Materials Manufacturing Facilities Source Category in Support of the 2018 of deviation. We also recalculated the category, cancer risks were less than 1- estimated recordkeeping burden for in-1 million and the noncancer hazards Risk and Technology Review Final Rule,’’ available in Docket ID No. records of SSM to more accurately were less than 1. At these risk levels, all represent the removal of the SSM populations are exposed to an EPAHQ–OAR–2017–0358 for this action. exemption, which is discussed in more acceptable level with an ample margin detail in the memorandum, ‘‘Email of safety without any demographic VI. Statutory and Executive Order Correspondence Estimating the Cost of group (including Native American Reviews SSM Reporting with Knowlton Indians) being disproportionately Additional information about these Technologies, LLC.’’ impacted. A more detailed demographic statutes and Executive Orders can be Respondents/affected entities: The risk analysis may be conducted at the found at https://www.epa.gov/laws- respondents to the recordkeeping and facility level if risk findings for the regulations/laws-and-executive-orders. reporting requirements are owners or source category indicate a level that is operators of facilities that produce unacceptable without an ample margin A. Executive Order 12866: Regulatory friction products subject to 40 CFR part of safety. Planning and Review and Executive 63, subpart QQQQQ. The EPA has, therefore, reaffirmed its Order 13563: Improving Regulation and Respondent’s obligation to respond: determination that this final rule will Regulatory Review Mandatory (40 CFR part 63, subpart not have disproportionately high and This action is not a significant QQQQQ). adverse human health or environmental regulatory action and was, therefore, not Estimated number of respondents: effects on minority, low income, or submitted to the Office of Management Two facilities. indigenous populations because it and Budget (OMB) for review. Frequency of response: Initially and maintains the level of environmental semiannually. protection for all affected populations B. Executive Order 13771: Reducing Total estimated burden: The annual without having any disproportionately Regulations and Controlling Regulatory recordkeeping and reporting burden for high and adverse human health or Costs responding facilities to comply with all environmental effects on any This action is considered an of the requirements in the NESHAP, population, including any minority, low Executive Order 13771 deregulatory averaged over the 3 years of this ICR, is income, or indigenous populations. action. Details on the estimated cost estimated to be 535 hours (per year). Of The methodology and the results of savings of this final rule can be found these, 115 hours (per year) is the the demographic analysis are presented in the EPA’s analysis of the potential reduced burden to comply with the rule in a technical report, ‘‘Risk and costs and benefits associated with this amendments. Burden is defined at 5 Technology Review—Analysis of action. CFR 1320.3(b).
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Total estimated cost: The annual H. Executive Order 13045: Protection of List of Subjects in 40 CFR Part 63 recordkeeping and reporting cost for Children From Environmental Health Environmental protection, responding facilities to comply with all Risks and Safety Risks Administrative practice and procedures, of the requirements in the NESHAP, This action is not subject to Executive Air pollution control, Hazardous averaged over the 3 years of this ICR, is Order 13045 because it is not substances, Intergovernmental relations, estimated to be $35,200 (rounded, per economically significant as defined in Reporting and recordkeeping year), including $544 annualized capital Executive Order 12866, and because the requirements. or operation and maintenance costs. EPA does not believe the environmental Dated: December 20, 2018. This results in a decrease of $7,400 health or safety risks addressed by this (rounded, per year) to comply with the action present a disproportionate risk to Andrew R. Wheeler, amendments to the rule. children. This action’s health and risk Acting Administrator. An agency may not conduct or assessments are contained in sections For the reasons stated in the sponsor, and a person is not required to III.A and IV.A and B of this preamble. preamble, title 40, chapter I, part 63 of the Code of Federal Regulations is respond to, a collection of information I. Executive Order 13211: Actions amended as follows: unless it displays a currently valid OMB Concerning Regulations That control number. The OMB control Significantly Affect Energy Supply, PART 63—NATIONAL EMISSION numbers for the EPA’s regulations in 40 Distribution, or Use CFR are listed in 40 CFR part 9. When STANDARDS FOR HAZARDOUS AIR OMB approves this ICR, the Agency will This action is not subject to Executive POLLUTANTS FOR SOURCE announce that approval in the Federal Order 13211 because it is not a CATEGORIES Register and publish a technical significant regulatory action under Executive Order 12866. ■ 1. The authority citation for part 63 amendment to 40 CFR part 9 to display continues to read as follows: the OMB control number for the J. National Technology Transfer and approved information collection Advancement Act (NTTAA) Authority: 42 U.S.C. 7401 et seq. activities contained in this final rule. This action involves technical Subpart QQQQQ—National Emission D. Regulatory Flexibility Act (RFA) standards. Therefore, the EPA Standards for Hazardous Air Pollutants conducted a search to identify for Friction Materials Manufacturing I certify that this action will not have potentially applicable voluntary Facilities a significant economic impact on a consensus standards. However, the substantial number of small entities Agency identified no such standards. ■ 2. Section 63.9495 is amended by under the RFA. This action will not Therefore, the EPA has decided to revising paragraphs (a) and (b) and impose any requirements on small continue the use of the weighing adding paragraph (e) to read as follows: entities. There are no small entities in procedures based on EPA Method 28 of this regulated industry. § 63.9495 When do I have to comply with 40 CFR part 60, appendix A (section this subpart? 10.1) for weighing of recovered solvent. E. Unfunded Mandates Reform Act (a) If you have an existing solvent (UMRA) A thorough summary of the search conducted and results are included in mixer, you must comply with each of the requirements for existing sources no This action does not contain an the memorandum titled ‘‘Voluntary later than October 18, 2005, except as unfunded mandate of $100 million or Consensus Standard Results for Friction otherwise specified at this section and more as described in UMRA, 2 U.S.C. Materials Manufacturing Facilities §§ 63.9505, 63.9530, 63.9540, 63.9545, 1531–1538, and does not significantly or Residual Risk and Technology Review,’’ and Table 1 to this subpart. uniquely affect small governments. The which is available in the docket for this (b) If you have a new or reconstructed action imposes no enforceable duty on action. solvent mixer for which construction or any state, local, or tribal governments, K. Executive Order 12898: Federal reconstruction commenced after or the private sector. Actions To Address Environmental October 18, 2002, but before May 4, F. Executive Order 13132: Federalism Justice in Minority Populations and 2018, you must comply with the Low-Income Populations requirements for new and reconstructed This action does not have federalism The EPA believes that this action does sources upon initial startup, except as implications. It will not have substantial not have disproportionately high and otherwise specified at this section and direct effects on the states, on the adverse human health or environmental §§ 63.9505, 63.9530, 63.9540, 63.9545, relationship between the national effects on minority populations, low- and Table 1 to this subpart. government and the states, or on the income populations, and/or indigenous * * * * * distribution of power and peoples, as specified in Executive Order (e) Solvent mixers constructed or responsibilities among the various 12898 (59 FR 7629, February 16, 1994). reconstructed after May 3, 2018, must be levels of government. The documentation for this decision in compliance with this subpart at G. Executive Order 13175: Consultation is contained in the technical report, startup or by February 8, 2019, and Coordination With Indian Tribal ‘‘Friction Materials Manufacturing whichever is later. Governments Demographic Analysis,’’ which is ■ 3. Revise § 63.9505 to read as follows: available in the docket for this action. This action does not have tribal § 63.9505 What are my general implications as specified in Executive L. Congressional Review Act (CRA) requirements for complying with this Order 13175. No tribal facilities are This action is subject to the CRA, and subpart? known to be engaged in the friction the EPA will submit a rule report to (a) Before August 7, 2019, for each material manufacturing industry that each House of the Congress and to the existing source and each new or would be affected by this action. Thus, Comptroller General of the United reconstructed source for which Executive Order 13175 does not apply States. This action is not a ‘‘major rule’’ construction or reconstruction to this action. as defined by 5 U.S.C. 804(2). commenced after October 18, 2002, but
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before May 4, 2018, you must be in ■ 4. Section 63.9530 is amended by malfunction during the reporting period compliance with the emission revising paragraphs (a)(1) and (e) to read and you took actions consistent with limitations in this subpart at all times, as follows: your startup, shutdown, and except during periods of startup, malfunction plan, the compliance report § 63.9530 How do I demonstrate must include the information in shutdown, or malfunction. On and after continuous compliance with the emission August 7, 2019, for each such source limitation that applies to me? § 63.10(d)(5)(i). A startup, shutdown, you must be in compliance with the and malfunction plan is not required for (a) * * * emission limitations in this subpart at (1) For existing sources and for new such sources on and after August 7, all times. For new and reconstructed or reconstructed sources for which 2019. sources for which construction or construction or reconstruction * * * * * reconstruction commenced after May 3, commenced after October 18, 2002, but (c) * * * 2018, you must be in compliance with before May 4, 2018, before August 7, (2) For existing sources and for new the emissions limitations in this subpart 2019, except for during malfunctions of or reconstructed sources which at all times. your weight measurement device and commenced construction or (b) Before August 7, 2019, for each associated repairs, you must collect and reconstruction after October 18, 2002, existing source, and for each new or record the information required in but before May 4, 2018, before August reconstructed source for which § 63.9520(a)(1) through (8) at all times 7, 2019, information on the number, construction or reconstruction that the affected source is operating and duration, and cause of deviations commenced after October 18, 2002, but record all information needed to (including unknown cause, if before May 4, 2018, you must always document conformance with these applicable), as applicable, and the operate and maintain your affected requirements. On and after August 7, corrective action taken. On and after source, including air pollution control 2019 for such sources, and after August 7, 2019 for such sources, and and monitoring equipment, according to February 8, 2019 for new or after February 8, 2019 for new or the provisions in § 63.6(e)(1)(i). On and reconstructed sources that commenced reconstructed sources which after August 7, 2019 for each such construction after May 3, 2018, you commenced construction or source, and after February 8, 2019 for must collect and record the information reconstruction after May 3, 2018, new and reconstructed sources for required in § 63.9520(a)(1) through (8) at information on the number of deviations to meet an emission limitation. For each which construction or reconstruction all times that the affected source is instance, include the date, time, commenced after May 3, 2018, at all operating and record all information duration, and cause of deviations times you must operate and maintain needed to document conformance with (including unknown cause, if any affected source, including these requirements. applicable), as applicable, a list of the associated air pollution control * * * * * affected source or equipment, an equipment and monitoring equipment, (e) For existing sources and for new estimate of the quantity of each in a manner consistent with safety and or reconstructed sources which regulated pollutant emitted over any good air pollution control practices for commenced construction or emission limit, and a description of the minimizing emissions. The general duty reconstruction after October 18, 2002, method used to estimate the emissions, to minimize emissions does not require but before May 4, 2018, before August 7, 2019, consistent with §§ 63.6(e) and and the corrective action taken. you to make any further efforts to (d) For existing sources and for new 63.7(e)(1), deviations that occur during reduce emissions if levels required by or reconstructed sources which a period of startup, shutdown, or the applicable standard have been commenced construction or malfunction are not violations if you achieved. Determination of whether a reconstruction after October 18, 2002, demonstrate to the Administrator’s source is operating in compliance with but before May 4, 2018, before August satisfaction that you were operating in operation and maintenance 7, 2019, if you had a startup, shutdown, accordance with § 63.6(e)(1). The requirements will be based on or malfunction during the semiannual Administrator will determine whether information available to the reporting period that was not consistent deviations that occur during a period of Administrator which may include, but with your startup, shutdown, and startup, shutdown, or malfunction are is not limited to, monitoring results, malfunction plan, you must submit an violations, according to the provisions review of operation and maintenance immediate startup, shutdown, and in § 63.6(e). On and after August 7, 2019 procedures, review of operation and malfunction report according to the for such sources, and after February 8, maintenance records, and inspection of requirements in § 63.10(d)(5)(ii). An 2019 for new or reconstructed sources the source. immediate startup, shutdown, and which commence construction or malfunction report is not required for (c) Before August 7, 2019, for each reconstruction after May 3, 2018, all such sources on and after August 7, existing source, and for each new or deviations are considered violations. reconstructed source for which 2019. ■ 5. Section 63.9540 is amended by construction commenced after October revising paragraphs (b)(4), (c)(2), and (d) * * * * * 18, 2002, but before May 4, 2018, you to read as follows: ■ 6. Section 63.9545 is amended by must develop a written startup, revising paragraph (a)(2) and adding shutdown, and malfunction plan § 63.9540 What reports must I submit and paragraph (a)(3) to read as follows: according to the provisions in when? § 63.6(e)(3). For each such source, a * * * * * § 63.9545 What records must I keep? startup, shutdown, and malfunction (b) * * * (a) * * * plan is not required on and after August (4) For existing sources and for new (2) For existing sources and for new 7, 2019. No startup, shutdown, and or reconstructed sources for which or reconstructed sources which malfunction plan is required for any construction or reconstruction commenced construction or new or reconstructed source for which commenced after October 18, 2002, but reconstruction after October 18, 2002, construction or reconstruction before May 4, 2018, before August 7, but before May 4, 2018, before August commenced after May 3, 2018. 2019, if you had a startup, shutdown, or 7, 2019, the records in § 63.6(e)(3)(iii)
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through (v) related to startup, shutdown, unknown cause, if applicable), a list of ‘‘§ 63.6(e)(1)(iii), (e)(2)’’, ‘‘§ 63.6(e)(3)’’, or malfunction. For such sources, it is the affected source or equipment, an ‘‘§ 63.6(f)(1)’’, and ‘‘§ 63.6(f)(2)–(3)’’ in not required to keep records in estimate of the quantity of each numerical order; § 63.6(e)(3)(iii) through (v) related to regulated pollutant emitted over any ■ c. Removing the entry ‘‘§ 63.8(a)(1)– startup, shutdown, or malfunction on emission limit, and a description of the (2), (b), (c)(1)–(3), (f)(1)–(5)’’; and after August 7, 2019. method used to estimate the emissions. ■ d. Adding the entries ‘‘§ 63.8(a)(1)– (3) After February 8, 2019 for new or (ii) Record actions taken to minimize (2)’’, ‘‘§ 63.8(b)’’, ‘‘§ 63.8(c)(1)(i), (iii)’’, reconstructed sources which emissions in accordance with § 63.9505, ‘‘§ 63.8(c)(1)(ii), (c)(2), (c)(3)’’, and commenced construction or and any corrective actions taken to ‘‘§ 63.8(f)(1)–(5)’’ in numerical order; reconstruction after May 3, 2018, and on return the affected unit to its normal or ■ e. Removing the entry ‘‘§ 63.10(a), (b), and after August 7, 2019 for all other usual manner of operation. affected sources, in the event that an (d)(1), (d)(4)–(5), (e)(3), (f)’’; and * * * * * affected unit fails to meet an applicable ■ f. Adding the entries ‘‘§ 63.10(a), standard, record the number of ■ 7. Table 1 to subpart QQQQQ of part (b)(1), (d)(1), (d)(4), (e)(3), (f)’’, deviations. For each deviation, record 63 is amended by: ‘‘§ 63.10(b)(2)(i), (ii), (iv), (v)’’, the date, time and duration of each ■ a. Removing the entry ‘‘§ 63.6(a)–(c), ‘‘§ 63.10(b)(2)(iii), (vi)–(xiv)’’, and deviation. (e)–(f), (i)–(j)’’; ‘‘§ 63.10(d)(5)’’ in numerical order. (i) For each deviation, record and ■ b. Adding the entries ‘‘§ 63.6(a)–(c), The revisions and additions read as retain cause of deviations (including (i)–(j)’’, ‘‘§ 63.6(e)(1)(i)–(ii)’’, follows:
TABLE 1 TO SUBPART QQQQQ OF PART 63—APPLICABILITY OF GENERAL PROVISIONS TO SUBPART QQQQQ *******
Citation Subject Applies to subpart QQQQQ? Explanation
******* § 63.6(a)–(c), (i)– Compliance with Yes. (j). Standards and Maintenance Requirements.
******* § 63.6(e)(1)(i)–(ii) SSM Operation No, for new or reconstructed sources which commenced construc- Subpart QQQQQ requires af- and Mainte- tion or reconstruction after May 3, 2018. Yes, for all other affected fected units to meet emissions nance Re- sources before August 7, 2019, and No thereafter. standards at all times. See quirements. § 63.9505 for general duty re- quirement. § 63.6(e)(1)(iii), Operation and Yes. (e)(2). Maintenance. § 63.6(e)(3) ...... SSM Plan Re- No, for new or reconstructed sources which commenced construc- Subpart QQQQQ requires af- quirements. tion or reconstruction after May 3, 2018. Yes, for all other affected fected units to meet emissions sources before August 7, 2019, and No thereafter. standards at all times. § 63.6(f)(1) ...... SSM Exemption No, for new or reconstructed sources which commenced construc- Subpart QQQQQ requires af- tion or reconstruction after May 3, 2018. Yes, for all other affected fected units to meet emissions sources before August 7, 2019, and No thereafter. standards at all times. § 63.6(f)(2)–(3) .. Compliance with Yes. Nonopacity Emission Standards.
******* § 63.8(a)(1)–(2) Applicability and Yes. Relevant Standards for CMS.
******* § 63.8(b) ...... Conduct of Moni- Yes. toring. § 63.8(c)(1)(i), Continuous Mon- No, for new or reconstructed sources which commenced construc- (iii). itoring System tion or reconstruction after May 3, 2018. Yes, for all other affected (CMS) SSM sources before August 7, 2019, and No thereafter.. Requirements. § 63.8(c)(1)(ii), CMS Repairs, Yes. (c)(2), (c)(3). Operating Pa- rameters, and Performance Tests.
******* § 63.8(f)(1)–(5) .. Alternative Moni- Yes. toring Proce- dure.
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TABLE 1 TO SUBPART QQQQQ OF PART 63—APPLICABILITY OF GENERAL PROVISIONS TO SUBPART QQQQQ— Continued *******
Citation Subject Applies to subpart QQQQQ? Explanation
******* § 63.10(a), Recordkeeping Yes. (b)(1), (d)(1), and Reporting (d)(4), (e)(3), Requirements. (f).
******* § 63.10(b)(2)(i), Recordkeeping No, for new or reconstructed sources which commenced construc- See § 63.9545 for recordkeeping (ii), (iv), (v). for Startup, tion or reconstruction after May 3, 2018. Yes, for all other affected requirements. Shutdown and sources before August 7, 2019, and No thereafter. Malfunction. § 63.10(b)(2)(iii), Owner/Operator Yes. (vi)–(xiv). Recordkeeping Requirements.
******* § 63.10(d)(5) ...... SSM reports ...... No, for new or reconstructed sources which commenced construc- See § 63.9540 for malfunction re- tion or reconstruction after May 3, 2018. Yes, for all other affected porting requirements. sources before August 7, 2019, and No thereafter.
*******
[FR Doc. 2019–00786 Filed 2–7–19; 8:45 am] SUPPLEMENTARY INFORMATION: This is a Synopsis BILLING CODE 6560–50–P summary of the Commission’s Report I. Report and Order and Order (Order), FCC 18–174, adopted December 10, 2018 and released on 1. In this Report and Order (Order), we eliminate the provisions in parts 1, December 11, 2018. The full text of this FEDERAL COMMUNICATIONS 5, 73 and 74 of our rules that require the document is available electronically via COMMISSION posting and maintenance of broadcast the FCC’s Electronic Document licenses and related information in 47 CFR Parts 0, 1, 5, 73, and 74 Management System (EDOCS) website 1 _ specific locations. In May 2018, the at http://fjallfoss.fcc.gov/edocs public/ Federal Communications Commission [MB Docket No. 18–121; FCC 18–174] or via the FCC’s Electronic Comment (Commission) issued a Notice of Filing System (ECFS) website at http:// Proposed Rulemaking (NPRM) (83 FR Posting of Station Licenses and fjallfoss.fcc.gov/ecfs2/. (Documents will Related Information 30901) seeking comment on whether to be available electronically in ASCII, eliminate license posting rules that AGENCY: Federal Communications Microsoft Word, and/or Adobe Acrobat.) appeared to be redundant and obsolete Commission. This document is also available for now that licensing information is ACTION: Final rule. public inspection and copying during readily accessible online through the regular business hours in the FCC Commission’s databases. Commenters in SUMMARY: In this document, the Federal Reference Information Center, which is this proceeding unanimously support Communications Commission (FCC or located in Room CY–A257 at FCC the elimination of these rules. As Commission) eliminates provisions of Headquarters, 445 12th Street SW, detailed below, we find that eliminating our rules that require broadcasters to Washington, DC 20554. The Reference these requirements, which apply in post and maintain copies of their Information Center is open to the public some form to all broadcast licensees, licenses and related information in Monday through Thursday from 8:00 will serve the public interest. In doing specific locations. These rules have a.m. to 4:30 p.m. and Friday from 8:00 so, we advance the Commission’s goal of modernizing our media rules and become redundant and obsolete now a.m. to 11:30 a.m. The complete text remove unnecessary regulatory burdens that licensing information is readily may be purchased from the accessible online through the that impede competition and innovation Commission’s copy contractor, 445 12th Commission’s databases, including in the media marketplace. Street, SW, Room CY–B402, CDBS, LMS, and ULS. It therefore finds 2. Broadcast license posting rules that eliminating these rules, which Washington, DC 20554. Alternative predate the establishment of the apply in some form to all broadcast formats are available for people with Commission. As explained in the licensees, will serve the public interest. disabilities (Braille, large print, NPRM, the Federal Radio Commission electronic files, audio format), by DATES: Effective February 8, 2019. promulgated the earliest iteration of sending an email to [email protected] or broadcast license posting requirements FOR FURTHER INFORMATION CONTACT: For calling the Commission’s Consumer and on record in 1930. Subsequent additional information, contact Jonathan Governmental Affairs Bureau at (202) Commission decisions revised and Mark, [email protected], of the 418–0530 (voice), (202) 418–0432 Media Bureau, Policy Division, (202) (TTY). 1 By this Order, we also eliminate provisions in 418–3634. Direct press inquiries to our rules which reference or cross-reference Janice Wise at (202) 418–8165. broadcast license posting rules.
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expanded to new broadcast services For full power and Class A television display such information.5 Moreover, no license posting obligations and stations and AM and FM radio stations, commenter has provided any requirements to maintain records at licenses and related authorizations are justification for continuing to require specific locations, but provided no also accessible through the broadcasters to post or maintain at explicit rationale for such rules. Based Commission’s Online Public Inspection specific locations a physical copy of on the text and history of these rules, File.4 In addition, the public may access their licenses, authorizations, or general the NPRM noted that the intended orders and dispositions regarding or local contact information. purpose of the rules may have been to station construction or facilities 5. We further find that requirements ensure that information regarding operation, which are required to be to physically display licensing station authorizations, ownership, and physically posted pursuant to two of our documents at the site of broadcast contact information was readily existing rules, through the facilities are often ineffective. As NAB available and easily accessible to the Commission’s online licensing illustrates, requirements that mandate Commission and public. Commenters in databases. posting at the transmission site can be this proceeding do not identify any of little benefit to the public because alternative purpose or use for these 4. We also find the additional posting certain transmission sites, including rules and maintain that, with the advent requirements in §§ 74.765(b) and those of booster and translator stations, of online sources for licensee 74.1265(b) of our rules to be ‘‘are often in areas surrounded by information, the burdens that unnecessary for similar reasons. These security fencing, thereby limiting the compliance with these rules imposes on provisions require that LPTV, translator, public access to these facilities and any licensees clearly outweigh any original and booster stations post at the posted information.’’ Further, benefits they may have provided. transmitter site the station’s call sign; provisions mandating that broadcasters 3. Consistent with our proposals in the name, address, and telephone post licenses and other authorizations at the NPRM, we eliminate the license number of the licensee or local the ‘‘principal [control] point of the posting rules applicable to broadcasters representative of the licensee; and ‘‘the transmitter’’ have been rendered and the related rules that require name and address of a person and place obsolete by the internet, which has records to be maintained at specific where the station records are enabled broadcasters to transition to locations.2 We agree with commenters maintained.’’ As Nexstar notes in its dial-up or IP systems that manage their that ‘‘while the posting rule[s] may have comments, much of the information transmitter stations remotely through a made sense almost 90 years ago’’ they required to be posted under these rules smartphone or personal computer. This no longer serve the public interest given is available on the station licenses or trend, in conjunction with the that all Commission licenses and related authorizations themselves, which as elimination of the broadcast main studio authorizations required to be displayed noted above, the public may easily rule, has rendered the physical posting or maintained are now available ‘‘24/7’’ access online via CDBS, LMS, or ULS. of licenses out of step with technology through publicly accessible online This information includes the station’s and our other rules. We agree with NAB databases. Specifically, broadcast call sign and the name and address of that ‘‘posting physical documents at station licenses and other authorizations the station’s licensee. Although LPTV, transmission facilities is redundant and are currently accessible online through translator, and booster stations are not provides no meaningful value to the several Commission databases, required to maintain public inspection public,’’ and we eliminate these including the Commission’s files, they must include the contact requirements. Consolidated Database System (CDBS), information, including a telephone 6. There is no evidence in the record Licensing Management System (LMS), number, of personnel that may serve as suggesting that eliminating license and Universal Licensing Service (ULS).3 a general point of contact on various posting and related requirements would Commission forms, which are publicly undermine any public safety objectives. 2 Specifically, we eliminate the following rules, available via our online licensing HC2 explains that posted information each of which applies specifically to broadcast databases. We therefore find no ‘‘is often barely visible because the licensees: 47 CFR 73.1230 (all broadcast licensees), 74.564 (aural broadcast auxiliary stations), 74.664 continued need for broadcasters to posting is well above eye level, or (television broadcast auxiliary stations), 74.765 separately identify a local representative obscured by other equipment, or (LPTV and TV translator stations), and 74.1265 (FM or a custodian of station records and damaged and faded as a result of translator and booster stations). In addition, we weather’’ and is therefore not useful amend the following rules to eliminate license 6 posting obligations: 47 CFR 1.62(a)(2) (which point of contact, through LMS, https:// during emergencies. In these currently requires all Commission licensees to post enterpriseefiling.fcc.gov/dataentry/login.html and/ circumstances, the contact information information pertaining to license renewal or ULS, http://wireless.fcc.gov/uls/ first responders need is readily available applications as well as the license itself, so that it index.htm?job=home. While most broadcast through the Commission databases.7 applies only to non-broadcast licensees), 5.203(b) licenses are accessible through CDBS and LMS, (removing the requirement to post experimental licenses for aural and television broadcast auxiliary licenses), 74.432(j) (removing the requirement that services are accessible through ULS. In addition, 5 Since we do not find that the public interest remote pickup station licenses be ‘‘posted at the information regarding broadcast license renewal necessitates separately compiling custodian of transmitter, or posted at the control point of the applications, which must be posted pursuant to records’ contact information online, we decline to station’’), 74.832(j) (removing the requirement that § 1.62(a) of the rules, is available online via CDBS adopt HC2’s proposal to modify existing low power auxiliary station licenses be ‘‘posted at and LMS. 47 CFR 1.62(a) (requiring posting of, ‘‘in Commission forms to solicit this information. the transmitter, or posted at the control point of the addition to the original license, any 6 HC2 further notes that posted information often station’’). The NPRM incorrectly proposed to amend acknowledgment received from the Commission is of limited utility because it is in a different paragraph (a)(3)(viii) of 47 CFR 74.787, instead of that the renewal application has been accepted for location from the site of an emergency. For paragraph (a)(5)(viii). This has been corrected in the filing or a signed copy of the application for example, ‘‘posted contact information at the Final Rules. We also note that one additional renewal of license which has been submitted by the transmitter, even if perfectly visible and accessible, change not captured in the NPRM is in the Final licensee’’). is not helpful when the emergency is at the antenna Rules below. 4 Online Public Inspection File, available at site,’’ which may be ‘‘some distance away,’’ or vice 3 Specifically, this information is readily available https://publicfiles.fcc.gov/. See 47 CFR 73.3526 versa. HC2 Comments at 5 (‘‘For example, a through CDBS, http://licensing.fcc.gov/prod/cdbs/ (governing public file obligations of commercial full firefighter battling a fire at an antenna site would pubacc/prod/app_sear.htm. Similarly, the public power AM, FM, and TV stations and Class A not have any use for contact information posted at may access copies of a station’s license, which television stations); 47 CFR 73.3527 (governing the transmitter quite some distance away.’’). includes the station call sign and name, address, public file obligations of noncommercial 7 We acknowledge that natural disasters may in and telephone number of the station licensee and educational broadcast stations). some instances limit the ability of first responders
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Commenters also explain that because regulations, and the subsequent licenses posting rules as follows: licensees typically do not own the NPRM.10 It eliminates provisions of the Section 0.408 (cross-referencing the towers on which their antennas are Commission’s rules which require the license posting rules); § 73.158(b), placed, eliminating requirements to posting and maintenance of broadcast which requires any updated have licensees’ information physically licenses and related information in descriptions of directional antenna displayed would not likely impede a specific locations. Numerous parties in monitoring points to be ‘‘posted with first responder’s ability to contact the those proceedings argued for the the existing station license’’; § 73.801, appropriate person during an elimination of these rules on the basis which applies § 73.1230 to LPFM emergency. In many cases, antenna that they are redundant and obsolete. stations; § 73.1715(a), which requires structure registration numbers allow 10. Specifically, the Order eliminates: broadcast licensees authorized to share first responders and others to rapidly Section 73.1230, which requires time to file written agreements with the identify the owner of a tower structure broadcast stations to post their station Commission and post with the station in the event of a tower lighting outage, license and other authorizations at ‘‘the license; § 73.1725(c), requiring ‘‘the collision or other problem, removing the principal control point of the licensee of a secondary station which is need for licensee contact information. transmitter’’ and prescribes the manner authorized to operate limited time’’ to 7. For the foregoing reasons, we find of such posting; 11 § 73.801, which post approval of its limited time that the provisions in parts 1, 5, 73 and applies § 73.1230 to low power operating schedule with the station 74 of our rules requiring the physical stations; 12 § 74.1265, which requires license); § 73.1870(b)(3), which states posting and maintenance of broadcast FM booster and translator stations to that ‘‘the designation of the chief licenses and related information at physically display their call sign and operator [for full power and Class A specific locations are redundant, other information at the antenna site; 13 stations] must be in writing with a copy obsolete, and unduly burdensome. §§ 74.564 and 74.664, applicable to of the designation posted with the Accordingly, we find that eliminating aural and television broadcast auxiliary station license.’’; § 74.733(i), which 14 these requirements, as well as stations, respectively, which require states that ‘‘[t]he provisions of § 74.765 associated cross-references to them and stations to post licenses and any other concerning posting of station license similar requirements, is in the public authorizations ‘‘in the room in which shall apply to a UHF translator signal interest and that the benefits of the transmitter is located’’ and booster . . .’’; § 74.781(c), which states eliminating these requirements prescribes the manner of such that ‘‘[t]he name of the person keeping 15 outweigh any costs of doing so. posting; §§ 74.432(j) and 74.832(j), [LPTV and TV translator] station which require remote pickup station II. Procedural Matters records, together with the address of the and low power auxiliary station place where the records are kept, shall A. Final Regulatory Flexibility Act licensees to post licenses either at the be posted in accordance with § 74.765(c) Analysis transmitter or station control point; 16 17 of the rules.’’; § 74.787(a)(5)(viii), which 8. As required by the Regulatory § 5.203(b), which requires broadcast applies § 74.765 to digital low power Flexibility Act of 1980, as amended licensees to post experimental television and television translator (RFA),8 an Initial Regulatory Flexibility authorizations along with their station 18 stations; § 74.789; and § 74.1281, which Analysis (IRFA) was incorporated in the license; § 1.62(a)(2), which requires all references § 74.1265(b). These rule Notice of Proposed Rulemaking (NPRM) Commission licensees, including changes are intended to reduce outdated in MB Docket 18–121.9 The Commission broadcast entities, to post information regulations and unnecessary regulatory pertaining to license renewal sought written public comments on burdens that can impede competition applications as well as the license itself; proposals in the NPRM, including and innovation in media markets. and § 74.765, which requires LPTV and comment on the IRFA. The Commission 12. Summary of Significant Issues received no direct comments on the TV translator to physically display their call sign together with the name, Raised by Public Comments in Response IRFA. The present Final Regulatory to the IRFA. No comments were filed in Flexibility Analysis (FRFA) conforms to address, and telephone number of the licensee or local representative of the response to the IRFA. the RFA. 13. Response to Comments by the 9. Need for, and Objectives of, the licensee and the name and address of a person and place where station records Chief Counsel for Advocacy of the Small Report and Order. The Report and Business Administration. Pursuant to Order (Order) arises from a Public are maintained at the antenna site. Sections 74.765(a) and 74.1265(a) also the Small Business Jobs Act of 2010, Notice issued by the Commission in which amended the RFA, the May 2017, launching an initiative to contain record maintenance obligations Commission is required to respond to modernize the Commission’s media that this Order eliminates because they are duplicative of §§ 74.781 and any comments filed by the Chief Counsel for Advocacy of the SBA and to to access these databases. For instance, immediately 74.1281, respectively. after Hurricane Maria, over 95 percent of Puerto 11. The Order also removes similar provide a detailed statement of any Rico’s wireless cell sites were out of service. On a requirements and cross-references to change made to the proposed rules as a going forward basis, we commit to monitoring the result of those comments.19 The Chief impact of this rule change on first responders’ 10 Counsel did not file any comments in ability to access the contact information they need See id.; Commission Launches Modernization of Media Regulation Initiative, Public Notice, 32 in the event of an emergency. response to this proceeding. FCC Rcd 4406 (2017) (initiating a review of rules 8 See 5 U.S.C. 603. The RFA, see U.S.C. 601–612, applicable to media entities to eliminate or modify 14. Description and Estimate of the has been amended by the Small Business regulations that are outdated, unnecessary or Number of Small Entities to Which Regulatory Enforcement Fairness Act of 1996 unduly burdensome). Rules Will Apply. The RFA directs (SBREFA), Public Law 104–121, Title II, 110 Stat. 11 47 CFR 73.1230. 857 (1996). The SBREFA was enacted as Title II of agencies to provide a description of and, 12 47 CFR 73.801. the Contract with America Advancement Act of where feasible, an estimate of the 13 1996 (CWAAA). 47 CFR 74.1265. number of small entities that will be 14 47 CFR 74.564, 74.664. 9 Amendment of Parts 0, 1, 5, 73, and 74 of the 20 15 affected by the rules adopted. The Commission’s Rules Regarding Posting of Station 47 CFR 74.565; 47 CFR 74.664. Licenses and Related Information, Notice of 16 47 CFR 74.432(j), 74.832(j). Proposed Rulemaking, 33 FCC Rcd 4757 (May 10, 17 47 CFR 5.203(b). 19 5 U.S.C. 604(a)(3). 2018) (NPRM) (83 FR 30901). 18 47 CFR 1.62(a)(2). 20 Id.
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RFA generally defines the term ‘‘small television broadcasters are small entities following small business size standard entity’’ as having the same meaning as under the applicable SBA size standard. for this category: Those having $38.5 the terms ‘‘small business,’’ ‘‘small 16. In addition, the Commission has million or less in annual receipts.33 organization,’’ and ‘‘small governmental estimated the number of licensed Census data for 2012 shows that 2,849 jurisdiction’’ 21 In addition, the term commercial television stations to be firms in this category operated in that ‘‘small business’’ has the same meaning 1,349.28 Of this total, 1,277 stations had year.34 Of this number, 2,806 firms had as the term ‘‘small business concern’’ revenues of $38.5 million or less, annual receipts of less than $25,000,000, under the Small Business Act.22 A according to Commission staff review of and 43 firms had annual receipts of ‘‘small business concern’’ is one which: the BIA Kelsey Inc. Media Access Pro $25,000,000 or more.35 Therefore, based (1) Is independently owned and Television Database (BIA) on October 1, on the SBA’s size standard, the majority operated; (2) is not dominant in its field 2018. Such entities, therefore, qualify as of such entities are small entities. of operation; and (3) satisfies any small entities under the SBA definition. 20. Apart from the U.S. Census, the additional criteria established by the The Commission has estimated the Commission has estimated the number SBA.23 The final rules adopted herein number of licensed noncommercial of licensed commercial AM radio affect small television and radio educational (NCE) television stations to stations to be 4,626 stations 36 and the broadcast stations. A description of be 412.29 The Commission, however, number of commercial FM radio these small entities, as well as an does not compile and does not have stations to be 6,737, for a total number estimate of the number of such small access to information on the revenue of of 11,363.37 Of this total, 11,362 stations entities, is provided below. NCE stations that would permit it to had revenues of $38.5 million or less, 15. Television Broadcasting. This determine how many such stations according to Commission staff review of Economic Census category ‘‘comprises would qualify as small entities. the BIA Kelsey Inc. Media Access Pro establishments primarily engaged in 17. We note, however, that in Television Database (BIA) on October 1, broadcasting images together with assessing whether a business concern 2018. In addition, the Commission has sound.’’ 24 These establishments operate qualifies as ‘‘small’’ under the above estimated the number of noncommercial television broadcast studios and definition, business (control) educational FM radio stations to be facilities for the programming and affiliations 30 must be included. Our 4,130.38 NCE stations are non-profit, and transmission of programs to the estimate, therefore likely overstates the therefore considered to be small public.25 These establishments also number of small entities that might be entities.39 Therefore, we estimate that produce or transmit visual programming affected by our action, because the the majority of radio broadcast stations to affiliated broadcast television revenue figure on which it is based does are small entities. stations, which in turn broadcast the not include or aggregate revenues from 21. Low Power FM Stations. The same programs to the public on a affiliated companies. In addition, SBA definition that applies to radio predetermined schedule. Programming another element of the definition of stations would apply to low power FM may originate in their own studio, from ‘‘small business’’ requires that an entity stations. As noted above, the SBA has an affiliated network, or from external not be dominant in its field of operation. created the following small business sources. The SBA has created the We are unable at this time to define or size standard for this category: Those following small business size standard quantify the criteria that would having $38.5 million or less in annual for such businesses: Those having $38.5 establish whether a specific television receipts.40 The Commission has million or less in annual receipts.26 The broadcast station is dominant in its field estimated the number of licensed low 2012 Economic Census reports that 751 of operation. Accordingly, the estimate power FM stations to be 1,966.41 In firms in this category operated in that of small businesses to which the addition, as of June 30, 2017, there were year. Of that number, 656 had annual proposed rules would apply does not a total of 7,453 FM translator and FM receipts of less than $25,000,000, and 95 exclude any television station from the booster stations.42 Given the nature of had annual receipts of $25,000,000 or definition of a small business on this these services, we will presume that more.27 Based on this data, we estimate basis and therefore could be over- these licensees qualify as small entities that the majority of commercial inclusive. under the SBA definition. 18. There are also 1,911 LPTV stations 22. We note again, however, that in 31 21 5 U.S.C. 601(6). and 389 Class A stations. Given the assessing whether a business concern 22 5 U.S.C. 601(3) (incorporating by reference the nature of these services, we will definition of ‘‘small-business concern’’ in the Small presume that all of these entities qualify cgi-bin/sssd/naics/naicsrch. This category Business Act, 15 U.S.C. 632). Pursuant to 5 U.S.C. as small entities under the above SBA description continues, ‘‘Programming may originate 601(3), the statutory definition of a small business in their own studio, from an affiliated network, or applies ‘‘unless an agency, after consultation with small business size standard. from external sources.’’ the Office of Advocacy of the Small Business 19. Radio Stations. This economic 33 13 CFR 121.201; NAICS code 515112. Administration and after opportunity for public Census category ‘‘comprises 34 U.S. Census Bureau, Table No. EC0751SSSZ4, comment, establishes one or more definitions of establishments primarily engaged in Information: Subject Series—Establishment and such term which are appropriate to the activities of Firm Size: Receipts Size of Firms for the United the agency and publishes such definition(s) in the broadcasting aural programs by radio to States: 2012 (515112), http://factfinder2.census.gov/ 32 Federal Register.’’ the public.’’ The SBA has created the faces/tableservices/jsf/pages/ 23 15 U.S.C. 632. productview.xhtml?pid=ECN_2007_US_ 24 U.S. Census Bureau, 2012 North American 28 FCC News Release, Broadcast Station Totals as 51SSSZ4&prodType=table. Industry Classification System (NAICS) Definitions, of September 30, 2018 (rel. Oct. 3, 2018) (Broadcast 35 Id. ‘‘515120 Television Broadcasting,’’ http:// Station Totals), https://www.fcc.gov/document/ 36 Broadcast Station Totals supra note 28. www.census.gov./cgi-bin/sssd/naics/naicsrch. broadcast-station-totals-september-30-2018. 37 Id. 25 Id. 29 Id. 38 Id. 26 13 CFR 121.201; 2012 NAICS Code 515120. 30 ‘‘[Business concerns] are affiliates of each other 39 5 U.S.C. 601(4), (6). 27 U.S. Census Bureau, Table No. EC1251SSSZ4, when one concern controls or has the power to 40 13 CFR 121.201, NAICS Code 515112. Information: Subject Series—Establishment and control the other or a third party or parties controls 41 News Release, ‘‘Broadcast Station Totals as of Firm Size: Receipts Size of Firms for the United or has the power to control both.’’ 13 CFR June 30, 2017’’ (rel. July 11, 2017) (http:// States: 2012 (515120 Television Broadcasting), 21.103(a)(1). fjallfoss.fcc.gov/edocs_public/attachmatch/DOC- https://factfinder.census.gov/faces/tableservices/jsf/ 31 Broadcast Station Totals supra note 28. 304594A1315231A1.pdf). pages/productview.xhtml?pid=ECN_2012_US_ 32 U.S. Census Bureau, 2012 NAICS Definitions, 42 News Release, ‘‘Broadcast Station Totals as of 51SSSZ4&prodType=table. ‘‘515112 Radio Stations,’’ at http://www.census.gov/ June 30, 2017’’ (rel. July. 11, 2017).
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qualifies as ‘‘small’’ under the above agency to describe any significant 154(j), 303, 309, 310, and 336, this definition, business (control) alternatives that it has considered in Report and Order is adopted. affiliations 43 must be included. Because reaching its approach, which may 33. It is further ordered that the we do not include or aggregate revenues include the following four alternatives Commission’s rules are hereby amended from affiliated companies in (among others): (1) The establishment of as set forth in the Final Rules below, determining whether an entity meets the differing compliance or reporting effective as of the date of publication of applicable revenue threshold, our requirements or timetables that take into a summary in the Federal Register.46 estimate of the number of small radio account the resources available to small 34. It is further ordered that the broadcast stations affected is likely entities; (2) the clarification, Commission’s Consumer and overstated. In addition, as noted above, consolidation, or simplification of Governmental Affairs Bureau, Reference one element of the definition of ‘‘small compliance or reporting requirements Information Center, shall send a copy of business’’ is that an entity not be under the rule for small entities; (3) the this Report and Order, including the dominant in its field of operation. We use of performance, rather than design, Final Regulatory Flexibility Analysis, to are unable at this time to define or standards; and (4) an exemption from the Chief Counsel for Advocacy of the quantify the criteria that would coverage of the rule, or any part thereof, Small Business Administration. establish whether a specific radio for small entities.44 35. It is further ordered that the broadcast station is dominant in its field 28. The Order eliminates Commission shall send a copy of the of operation. Accordingly, our estimate recordkeeping obligations requiring the Report and Order in a report to Congress of small radio stations potentially posting of broadcast stations’ license and the Government Accountability affected by the proposed rules includes and other authorizations.45 These Office pursuant to the Congressional those that could be dominant in their actions are intended to modernize the Review Act (CRA). field of operation. For this reason, such Commission’s regulations and reduce List of Subjects estimate likely is over-inclusive. costs and recordkeeping burdens for 23. Description of Reporting, Record affected entities, including small 47 CFR Part 0 Keeping, and Other Compliance entities. Under the revised rules, Reporting and Recordkeeping Requirements for Small Entities. In this affected entities no longer will need to Requirements. section, we identify the reporting, expend time and resources posting recordkeeping, and other compliance licenses and related information already 47 CFR Part 1 requirements in the Order and consider available to the Commission, and most Communications common carriers, whether small entities are affected of which is publicly accessible by Radio, Reporting and recordkeeping disproportionately by any such electronic means. requirements, Television. requirements. 24. Reporting Requirements. The B. Paperwork Reduction Analysis 47 CFR Part 5 Order does not adopt new reporting 29. This document eliminates, and Radio, Reporting and recordkeeping requirements. thus does not contain new or revised, requirements. 25. Recordkeeping Requirements. The information collection requirements 47 CFR Parts 73 and 74 Order does not adopt new subject to the Paperwork Reduction Act recordkeeping requirements. of 1995 (PRA), Public Law 104–13, 44 Radio, Reporting and recordkeeping 26. Other Compliance Requirements. U.S.C. 3501–3520. In addition, requirements, Television. The Order does not adopt new therefore, it does not contain any new Federal Communications Commission. compliance requirements. Because no or modified ‘‘information burden for Katura Jackson, commenter provided information small business concerns with fewer than specifically quantifying the costs and Federal Register Liaison Officer, Office of the 25 employees’’ pursuant to the Small administrative burdens of complying Secretary. Business Paperwork Relief Act of 2002, with the existing recordkeeping Public Law 107–198, 44 U.S.C. Final Rules requirements, we cannot precisely 3506(c)(4). For the reasons discussed in the estimate the impact on small entities of preamble, the Federal Communications eliminating them. The adopted rule C. Congressional Review Act Commission amends 47 CFR parts 0, 1, revisions remove certain record keeping 30. The Commission will send a copy 5, 73, and 74 as follows: requirements for all affected broadcast of this Order to Congress and the licensees, including small entities. Government Accountability Office PART 0—COMMISSION Numerous parties in the Modernization pursuant to the Congressional Review ORGANIZATION of Media Regulation Initiative, Act, see 5 U.S.C. 801(a)(1)(A). including all parties which commented 31. Additional Information.—For ■ 1. The authority citation for part 0 on the NPRM have requested that the additional information on this continues to read as follows: Commission remove broadcast license proceeding, contact Jonathan Mark, Authority: Sec. 5, 48 Stat. 1068, as posting requirements and related record [email protected], of the Media amended; 47 U.S.C. 155, 225, unless keeping requirements and no parties in Bureau, Policy Division, (202) 418– otherwise noted. this proceeding opposed such 3634. proposals. ■ 2. Amend § 0.408 in the table in 27. Steps Taken to Minimize III. Ordering Clauses paragraph (b) by revising the entry ‘‘3060–0633’’ to read as follows: Significant Economic Impact on Small 32. Accordingly, it is ordered that, Entities, and Significant Alternatives pursuant to the authority found in § 0.408 OMB control numbers and Considered. The RFA requires an sections 1, 4(i), 4(j), 303, 309, 310, and expiration dates assigned pursuant to the 336 of the Communications Act of 1934, Paperwork Reduction Act of 1995. 43 ‘‘[Business concerns] are affiliates of each other as amended, 47 U.S.C. 151, 154(i), when one concern controls or has the power to * * * * * control the other or a third party or parties controls or has the power to control both.’’ 13 CFR 44 5 U.S.C. 603(c)(1)–(4). 46 These rules serve to ‘‘reliev[e] a restriction.’’ 5 21.103(a)(1). 45 See supra Section A. U.S.C. 553(d)(1).
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(b) * * *
OMB control OMB expira- No. FCC form no. or 47 CFR section or part, docket no., or title identifying the collection tion date
******* 3060–0633 .. Secs. 74.165, 74.432, and 74.832 ...... 04/30/18
*******
PART 1—PRACTICE AND PART 73—RADIO BROADCAST proportion. If no proportionate time PROCEDURE SERVICES division is specified in the license, the licensees shall agree upon a division of ■ 3. The authority citation for part 1 ■ 7. The authority citation for part 73 time. Such division of time shall not continues to read as follows: continues to read as follows: include simultaneous operation of the Authority: 47 U.S.C. chs. 2, 5, 9, 13; Sec. Authority: 47 U.S.C. 154, 155, 301, 303, stations unless specifically authorized 102(c), Div. P, Public Law 115–141, 132 Stat. 307, 309, 310, 334, 336, 339. by the terms of the license 1084; 28 U.S.C. 2461, unless otherwise noted. ■ 8. Amend § 73.158 by revising * * * * * paragraph (b) to read as follows: ■ ■ 4. Amend § 1.62 by revising paragraph 12. Amend § 73.1725 by revising (a)(2) to read as follows: § 73.158 Directional antenna monitoring paragraph (c) to read as follows: points. § 1.62 Operation pending action on § 73.1725 Limited time. renewal application. * * * * * * * * * * (b) When the description of the (a) * * * monitoring point as shown on the (c) The licensee of a secondary station (2) A non-broadcast licensee operating station license is no longer correct due which is authorized to operate limited by virtue of this paragraph (a) shall, to road or building construction or other time and which may resume operation after the date of expiration specified in changes, the licensee must prepare and at the time the Class A station (or the license, post, in addition to the file with the FCC, in Washington, DC, a stations) on the same channel ceases original license, any acknowledgment request for a corrected station license operation shall, with each application received from the Commission that the showing the new monitoring point for renewal of license, file in triplicate renewal application has been accepted description. The request shall include a copy of its regular operating schedule. for filing or a signed copy of the the information specified in paragraphs It shall bear a signed notation by the application for renewal of license which (a)(3) and (4) of this section, and a copy licensee of the Class A station of its has been submitted by the licensee, or of the station’s current license. objection or lack of objection thereto. in services other than common carrier, Upon approval of such operating a statement certifying that the licensee § 73.801 [Amended] schedule, the FCC will affix its file mark has mailed or filed a renewal ■ 9. Amend § 73.801 by removing and return one copy to the licensee application, specifying the date of ‘‘Section 73.1230 Posting of station authorized to operate limited time. Such mailing or filing. license’’. approved operating schedule shall be considered part of the station’s license. * * * * * § 73.1230 [Removed] Departure from said operating schedule PART 5—EXPERIMENTAL RADIO ■ 10. Remove § 73.1230. will be permitted only pursuant to SERVICE ■ 11. Amend § 73.1715 by revising § 73.1715 (Share time). paragraph (a) to read as follows: ■ 13. Amend § 73.1870 by revising ■ 5. The authority citation for part 5 paragraph (b)(3) to read as follows: continues to read as follows: § 73.1715 Share time. * * * * * § 73.1870 Chief operators. Authority: 47 U.S.C. 154, 301, 302, 303, (a) If the licenses of stations 307, 336. * * * * * authorized to share time do not specify (b) * * * ■ 6. Amend § 5.203 by revising hours of operation, the licensees shall paragraph (b) to read as follows: endeavor to reach an agreement for a (3) The designation of the chief definite schedule of periods of time to operator must be in writing. Agreements § 5.203 Experimental authorizations for with chief operators serving on a licensed broadcast stations. be used by each. Such agreement shall be in writing and each licensee shall file contract basis must be in writing with * * * * * it in duplicate original with each a copy kept in the station files. (b) Experimental authorizations for application to the FCC in Washington, * * * * * licensed broadcast stations may be DC for renewal of license. If and when requested by filing an informal such written agreements are properly PART 74—EXPERIMENTAL RADIO, application with the FCC in filed in conformity with this section, the AUXILIARY, SPECIAL BROADCAST Washington, DC, describing the nature file mark of the FCC will be affixed AND OTHER PROGRAM and purpose of the experimentation to thereto, one copy will be retained by the DISTRIBUTIONAL SERVICES be conducted, the nature of the FCC, and one copy returned to the experimental signal to be transmitted, licensee and will be considered as part ■ 14. The authority citation for part 74 and the proposed schedule of hours and of the station’s license. If the license continues to read as follows: duration of the experimentation. specifies a proportionate time division, Authority: 47 U.S.C. 154, 302a, 303, 307, * * * * * the agreement shall maintain this 309, 310, 336 and 554.
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■ 15. Amend § 74.432 by revising ■ 25. Amend § 74.1281 by revising includes king mackerel, Spanish paragraph (j) and removing the note at paragraph (c) to read as follows: mackerel, and cobia, and is managed the end of the section to read as follows: under the Fishery Management Plan for § 74.1281 Station records. the Coastal Migratory Pelagic Resources § 74.432 Licensing requirements and * * * * * of the Gulf of Mexico and Atlantic procedures. (c) The station records shall be Region (FMP). The FMP was prepared * * * * * maintained for inspection at a by the Gulf of Mexico and South (j) The license shall be retained in the residence, office, or public building, Atlantic Fishery Management Councils licensee’s files at the address shown on place of business, or other suitable and is implemented by NMFS under the the authorization. place, in one of the communities of authority of the Magnuson-Stevens * * * * * license of the translator or booster, Fishery Conservation and Management except that the station records of a Act (Magnuson-Stevens Act) by § 74.564 [Removed] booster or translator licensed to the regulations at 50 CFR part 622. All ■ 16. Remove § 74.564. licensee of the primary station may be weights for Atlantic migratory group kept at the same place where the king mackerel (Atlantic king mackerel) § 74.664 [Removed] primary station records are kept. The below apply as either round or gutted ■ 17. Remove § 74.664. station records shall be made available weight. upon request to any authorized On April 11, 2017, NMFS published § 74.733 [Amended] representative of the Commission. a final rule to implement Amendment ■ 18. Amend § 74.733 by removing * * * * * 26 to the FMP in the Federal Register paragraph (i), redesignating paragraph [FR Doc. 2019–01491 Filed 2–7–19; 8:45 am] (82 FR 17387). That final rule adjusted (j) as paragraph (i), and removing the BILLING CODE 6712–01–P the management boundaries, zones, and note at the end of the section. annual catch limits for Atlantic king mackerel. The commercial quota for § 74.765 [Removed] DEPARTMENT OF COMMERCE Atlantic king mackerel in the southern ■ 19. Remove § 74.765. zone is 4,001,920 lb (1,815,240 kg) for National Oceanic and Atmospheric the current fishing year, March 1, 2018, ■ 20. Amend § 74.781 by revising Administration through February 28, 2019 (50 CFR paragraph (c) to read as follows: 622.384(b)(2)(ii)). The seasonal quotas § 74.781 Station records. 50 CFR Part 622 are 2,401,152 lb (1,089,144 kg) for the period March 1 through September 30 * * * * * [Docket No. 160426363–7275–02] (c) The station records shall be (50 CFR 622.384(b)(2)(ii)(A)), and maintained for inspection at a RIN 0648–XG762 1,600,768 lb (726,096 kg) for October 1 through the end of February (50 CFR residence, office, or public building, Coastal Migratory Pelagic Resources place of business, or other suitable 622.384(b)(2)(ii)(B)). of the Gulf of Mexico and Atlantic The Atlantic king mackerel southern place, in one of the communities of Region; Commercial Trip Limit zone encompasses an area of Federal license of the translator or booster, Increase for King Mackerel in the waters south of a line extending from except that the station records of a Atlantic Southern Zone the state border of North Carolina and booster or translator licensed to the South Carolina, as specified in 50 CFR AGENCY: licensee of the primary station may be National Marine Fisheries 622.2, and north of a line extending due kept at the same place where the Service (NMFS), National Oceanic and east from the border of Miami-Dade and primary station records are kept. The Atmospheric Administration (NOAA), Monroe Counties, Florida (50 CFR station records shall be made available Commerce. 622.369(a)(2)(ii)). From October 1 upon request to any authorized ACTION: Temporary rule; trip limit through January 31, the commercial trip representative of the Commission. increase. limit for king mackerel in or from the * * * * * southern zone that may be possessed on SUMMARY: NMFS increases the board or landed from a federally § 74.787 [Amended] commercial trip limit for king mackerel in or from Federal waters in an area off permitted vessel is 50 fish per day (50 ■ 21. Amend § 74.787(a)(5)(viii) by the Florida east coast between the CFR 622.385(a)(1)(ii)(C)). removing ‘‘§ 74.765 Posting of station However, if NMFS determines that border of Flagler and Volusia Counties and operator licenses’’. less than 70 percent of the Atlantic and the border of Miami-Dade and southern zone commercial quota § 74.789 [Amended] Monroe Counties in the Atlantic specified in 50 CFR 622.384(b)(2)(ii)(B) southern zone to 75 fish per day. This ■ 22. Amend § 74.789 by removing has been harvested by February 1, then commercial trip limit increase is ‘‘§ 74.765 Posting of station and operator during the month of February, the necessary to maximize the licenses’’. commercial trip limit for king mackerel socioeconomic benefits associated with ■ in or from a specified area of the 23. Amend § 74.832 by revising harvesting the commercial quota of paragraph (j) to read as follows: southern zone that may be possessed on Atlantic migratory group king mackerel. board or landed from a federally § 74.832 Licensing requirements and DATES: This temporary rule is effective permitted vessel is increased to 75 fish procedures. from 12:01 a.m., local time, on February per day (50 CFR 622.385(a)(1)(ii)(D)). * * * * * 7, 2019, through February 28, 2019. The area of the southern zone in which (j) The license shall be retained in the FOR FURTHER INFORMATION CONTACT: the commercial trip limit increase licensee’s files at the address shown on Karla Gore, NMFS Southeast Regional applies is in Federal waters south of the authorization. Office, telephone: 727–824–5305, email: 29°25′ N lat., which is a line that [email protected]. extends due east from the border of § 74.1265 [Removed] SUPPLEMENTARY INFORMATION: The Flagler and Volusia Counties, Florida, ■ 24. Remove § 74.1265. fishery for coastal migratory pelagic fish and north of 25°20′24″ N lat., which is
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a line that extends due east from the For the aforementioned reasons, the limits (ACLs) for 2019 on November 30, border of Miami-Dade and Monroe AA also finds good cause to waive the 2018 (83 FR 61593). The comment Counties, Florida. 30-day delay in effectiveness of this period on the proposed rule ended on NMFS has determined that less than action, pursuant to 5 U.S.C. 553(d)(3). December 31, 2018. We received 22 70 percent of the October 1 through the Authority: 16 U.S.C. 1801 et seq. comment letters on the proposed rule, end of February commercial quota for which are summarized in the Comments Atlantic king mackerel in the southern Dated: February 1, 2019. and Responses section of this final rule. zone was harvested by February 1, 2019. Alan D. Risenhoover, We implemented 2016–2018 herring Accordingly, a 75-fish commercial trip Director, Office of Sustainable Fisheries, specifications on November 1, 2016 (81 limit applies to vessels fishing for king National Marine Fisheries Service. FR 75731), as recommended by the New mackerel in or from Federal waters [FR Doc. 2019–01234 Filed 2–7–19; 8:45 am] England Fishery Management Council. south of 29°25′ N lat. and north of BILLING CODE 3510–22–P The specifications included an 25°20′24″ N lat. off the east coast of overfishing limit (OFL) of 111,000 mt Florida in the Atlantic southern zone for 2018. The acceptable biological effective at 12:01 a.m., local time, on DEPARTMENT OF COMMERCE catch (ABC) for 2018 was also set at February 7, 2019. The 75-fish trip limit National Oceanic and Atmospheric 111,000 mt. The ABC was based on the will remain in effect through February Administration Council’s interim control rule, set equal 28, 2019, or until the commercial quota to the OFL with at least a 50-percent is reached and the southern zone closes. 50 CFR Part 648 probability of preventing overfishing, On March 1, 2019, the new fishing year and consistent with the Council’s begins and a commercial trip limit of 50 [Docket No. 181031994–9022–02] Scientific and Statistical Committee’s fish will again be in effect for this area. RIN 0648–XG608–X (SSC) advice. The annual catch limit (ACL) for 2018 was 104,800 mt. Classification Magnuson-Stevens Act Provisions; In June 2018, a new Northeast The Regional Administrator for the Fisheries of the Northeastern United Regional Stock Assessment Workshop NMFS Southeast Region has determined States; Atlantic Herring Fishery; (SAW) for herring, reviewed by the this temporary rule is necessary for the Adjustment to Atlantic Herring Stock Assessment Review Committee conservation and management of Specifications and Sub-Annual Catch (SARC), was completed. The assessment Atlantic king mackerel and is consistent Limits for 2019 concluded that although herring was not with the Magnuson-Stevens Act and overfished and overfishing was not other applicable laws. AGENCY: National Marine Fisheries occurring in 2017, poor recruitment This action is taken under 50 CFR Service (NMFS), National Oceanic and would likely result in a substantial 622.385(a)(1)(ii)(D) and is exempt from Atmospheric Administration (NOAA), decline in herring biomass. The stock review under Executive Order 12866. Commerce. assessment estimated that recruitment These measures are exempt from the ACTION: Final rule. had been at historic lows during the procedures of the Regulatory Flexibility most recent 5 years (2013–2017). The SUMMARY: This action implements an in- Act because the temporary rule is issued season adjustment to the Atlantic assessment projected that biomass could without opportunity for prior notice and herring specifications and sub-annual increase, after reaching a low in 2019, comment. catch limits for 2019. These adjustments if recruitment returns to average levels, This action responds to the best are necessary to reduce 2018 herring but that herring catch would need to be scientific information available. The catch limits that would otherwise reduced, starting in 2018, to prevent Assistant Administrator for NOAA remain in effect for 2019. This action is overfishing and lower the risk of the Fisheries (AA) finds that the need to expected to prevent overfishing of the stock becoming overfished. The final immediately implement this herring resource and lower the risk of assessment summary report is available commercial trip limit increase the stock becoming overfished. on the Northeast Fisheries Science constitutes good cause to waive the Center (NEFSC) website DATES: Effective February 8, 2019. requirements to provide prior notice (www.nefsc.noaa.gov/publications/). and opportunity for public comment ADDRESSES: Copies of this action, The Atlantic Herring Fishery pursuant to the authority set forth in 5 including the Supplemental Management Plan (FMP) allows NMFS U.S.C. 553(b)(B), because prior notice Environmental Assessment and the to make in-season adjustments to the and opportunity for public comment on Regulatory Impact Review/Initial herring specifications and sub-ACLs to this temporary rule is unnecessary and Regulatory Flexibility Analysis (SEA/ achieve conservation and management contrary to the public interest. Such RIR/IRFA) prepared in support of this objectives, after consultation with the procedures are unnecessary because the action, are available from Michael Council, consistent with the Herring rule establishing the commercial trip Pentony, Regional Administrator, 55 FMP’s objectives and other FMP limits has already been subject to notice Great Republic Drive, Gloucester, MA provisions. In August 2018, at the and comment, and all that remains is to 01930. Documents are also accessible request of the Council, we used an in- notify the public of the trip limit via the internet at: https:// season adjustment to reduce the 2018 increase. Such procedures are contrary www.nefmc.org. ACL from 104,800 mt to 49,900 mt to to the public interest, because prior FOR FURTHER INFORMATION CONTACT: reduce the risk of overfishing in 2018 notice and opportunity for public Carrie Nordeen, Fishery Policy Analyst, (83 FR 42450, August 22, 2018). This comment would require time and delay 978–281–9272. resulted in at least a 50-percent the fishers’ ability to catch more king SUPPLEMENTARY INFORMATION: probability of preventing overfishing mackerel to harvest the commercial projected for 2018. However, assessment quota and achieve optimum yield, and Background projections indicated that catch would would prevent fishers from reaping the We published a proposed rule for the need to be further reduced in 2019 to socioeconomic benefits associated with in-season adjustment to Atlantic herring prevent overfishing and lower the risk this increased commercial trip limit. specifications and sub-annual catch of the stock becoming overfished.
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By regulation, herring catch limits for mt in 2019, 38,878 mt in 2020, and that negative economic impacts on the 2018, as modified by the 2018 in-season 59,788 mt in 2021. The SSC also fishing industry would be greater under adjustment, remain in effect until recommended that herring ABCs should the lower catch limits, it stressed that replaced. At its September 2018 not exceed 21,266 mt in 2019, 16,131 mt conservation benefits outweighed the meeting, the Council adopted a new in 2020, and 16,131 mt in 2021. The short-term revenue considerations. The ABC control rule for the herring fishery SSC was concerned that the new Council also explained that maintaining developed in Amendment 8 to the assessment’s recruitment projections recent sub-ACL allocations prevents Herring FMP and requested we use an used a long-term average, rather than overfishing on any one sub-component in-season adjustment to reduce 2018 weighting recent low recruitment, of the herring stock and helps minimize herring catch limits for 2019 while it resulting in a substantial projected negative economic impacts associated develops new specifications starting in biomass increase for 2021. To mitigate with reduced catch limits by providing 2020. The Council was scheduled to its concerns, the SSC recommended fishery access to all gear types and begin developing the 2019–2021 herring maintaining the 2020 ABC (16,131 mt) management areas. Following the specifications at its September meeting for 2021, updating the herring Council meeting, the Council further and take final action on the new assessment in 2020, and investigating detailed its rationale for its specifications at its December 2018 herring’s recent low recruitment. The recommended 2019 herring catch limits meeting. The Council planned for us to assessment update would enable the in a December 13, 2018, letter to us. SSC to reconsider its 2021 ABC implement the new specifications We work closely with the Council for recommendation based on updated during 2019, based on the new ABC sustainable management of New control rule it adopted in Amendment 8. estimates of recruitment and biomass. In response to the Council’s request England fisheries. The Council develops However, because of the time required harvest policies for its fisheries and we for the Council to prepare the necessary for an in-season adjustment of 2018 herring catch limits for 2019, we tend to defer harvest policy decisions to documentation and for us to review and the Council, unless those policies are approve the control rule in Amendment proposed reduced catch limits for 2019 in November 2018. The herring ABC we inconsistent with the Magnuson-Stevens 8 and implement final approved Fishery Conservation and Management measures, the new specifications would proposed for 2019, as well as the resulting ACL and sub-ACLs, while Act or other applicable law. The not have been effective early enough to Council expressed concern with our prevent catch from exceeding the lower consistent with methods used to set recent specifications, were higher than proposed herring catch limits for 2019 catch limits required to prevent and recommended limits be lowered to overfishing in 2019. limits recommended by the Council and SSC. Our proposed herring catch limits prevent overfishing and lower the risk To assist us with developing the 2019 of the stock becoming overfished. After in-season adjustment, the Council were based on an ABC with a 50-percent probability of preventing overfishing considering the Council’s policy discussed options for 2019 catch limits concerns and to better account for at its September 2018 meeting and (30,688 mt). In contrast, the Council’s recommended 2019 catch limits were scientific uncertainty, we are adjusting recommended that we: the 2018 herring specifications and sub- • Use the most recent assessment and based on an ABC of 21,266 mt, ACLs for 2019 to achieve conservation projections to develop the 2019 generated using the new control rule and management objectives, consistent specifications; developed in Amendment 8, and • Use the ABC control rule approved estimated to have a 15-percent with the Council’s recommendations, by the Council in Amendment 8; probability of overfishing. While the Herring FMP objectives, and other • Maintain the sub-ACLs for herring sub-ACL values we proposed for 2019 Herring FMP provisions. The final 2019 management areas based on the were higher than those recommended herring catch limits implemented in this proportions allocated in the 2016–2018 by the Council, our proposed method to in-season adjustment are shown in specifications package, including; allocate catch to the sub-ACLs was Table 1 below. Æ Area 1A: 28.9 percent, consistent with Council Æ Area 1B: 4.3 percent, recommendations. We intended the TABLE 1—FINAL ATLANTIC HERRING Æ Area 2: 27.8 percent, proposed catch limits to balance SPECIFICATIONS AND SUB-ACLS FOR Æ Area 3: 39 percent; preventing overfishing with maintaining 2019 (mt) • Proportionally reduce the fixed gear a viable herring fishery to achieve set-aside allocation which is based on a optimum yield (OY), while we consider Overfishing Limit ...... 30,668. small weir fishery west of Cutler, ME; approval and implementation of a long- ABC ...... 21,266. and term ABC control rule in Amendment 8. Management Uncertainty ...... 6,200. • Set the border transfer (which The Council discussed our proposed OY/ACL ...... 15,065.* allows U.S. vessels to transfer herring to 2019 herring catch limits at its Domestic Annual Harvest ...... 15,065. Canadian vessels to be processed as December 2018 meeting, at which time Border Transfer ...... 0. food) at 0 mt. it firmly reiterated its original Domestic Annual Processing ...... 15,065. The SSC met on October 10, 2018, to recommendations that catch limits be U.S. At-Sea Processing ...... 0. review the recent herring stock based on an ABC of 21,266 mt and sub- Area 1A Sub-ACL (28.9%) ...... 4,354.* assessment and consider herring catch ACL allocations be consistent with Area 1B Sub-ACL (4.3%) ...... 647. limits. The term of reference for the recent specifications. The Council Area 2 Sub-ACL (27.8%) ...... 4,188. Area 3 Sub-ACL (39%) ...... 5,876. meeting specified that the SSC use the explained the necessity of lowering the Fixed Gear Set-Aside ...... 39. new ABC control rule adopted by the risks of overfishing and the stock Research Set-Aside ...... 3% of Council in Amendment 8 to recommend becoming overfished, especially given sub- the OFL and ABCs for 2019–2021. After the uncertainty associated with the ACLs. reviewing the results of the stock assessment’s projections of herring assessment and information compiled biomass and recruitment. It expressed * If New Brunswick weir fishery catch through October 1 is less than 4,000 mt, then by the Council’s Herring Plan concern that higher catch in 2019 would 1,000 mt will be subtracted from the manage- Development Team (PDT), the SSC result in even lower catch limits for ment uncertainty buffer and added to the ACL recommended herring OFLs of 30,688 2020. While the Council acknowledged and Area 1A Sub-ACL.
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Based on the best available science, Brunswick weir fishery. We are portion of this allocation that has not we are reducing the OFL for 2019 to maintaining the current management been harvested by November 1 is 30,668 mt. Please note that a uncertainty buffer (6,200 mt), as transferred back to the sub-ACL typographic error in the PDT’s October recommended by the Council, so the allocation for Area 1A. We expect that 2018 report changed the ABC with a 50- resulting herring ACL/OY is 15,065 mt reducing the fixed gear set aside will percent probability of preventing for 2019. Catch in the New Brunswick allow additional herring harvest to be overfishing from 30,668 mt to 30,688 weir fishery is variable. The value of the available to both fixed and mobile gears mt. That mistake was perpetuated in the current buffer is based on average catch in Area 1A helping ensure OY is SSC’s OFL recommendation for 2019 during 2009–2011. Like catch in 2010 achieved. As with the border transfer, and in our November 2018 proposed (10,958 mt), New Brunswick weir catch the fixed gear set-aside has been under- rule. The correct value for an OFL with in 2018 was much higher than average utilized in recent years. Fixed gear a 50-percent probability of preventing (11,500 mt). Because the average of landings tracked against the set-aside overfishing in 2019 is 30,668 mt. The recent New Brunswick weir catch have averaged less than 12 mt in the Herring FMP specifies that the OFL (2016–2018) is 5,900 mt and years with past 5 years. must be equal to catch resulting from high weir catches are typically not The Herring FMP requires we adjust applying the maximum fishing mortality consecutive, we expect a buffer of 6,200 for catch overages and underages in a threshold to a current or projected mt to appropriately account for subsequent year. Total catch in 2017 did estimate of stock size. When the stock management uncertainty in 2019. not reach or exceed any of the We are maintaining the sub-ACL is not overfished and overfishing is not management area sub-ACLs, so typically allocations used in the recent occurring, this is usually the fishing rate we would carryover those underages, or specifications (2016–2018) for 2019. supporting maximum sustainable yield. a portion of the underages, to increase This means that 28.9 percent of the ACL Catching in excess of this amount is sub-ACLs in 2019. However, to help is allocated to Area 1A, 4.3 percent is considered to be overfishing. An OFL of ensure catch does not exceed the ABC allocated to Area 1B, 27.8 percent is 30,668 mt would result in in 2019, we are not increasing any sub- allocated to Area 2, and 39 percent is approximately a 50-percent probability ACLs in 2019 to adjust for underages in allocated to Area 3. These sub-ACL of preventing overfishing in 2019. This 2017. OFL is based on projections by the allocations were recommended by the SAW/SARC, as updated by NOAA’s Council for past specifications, as well Values for domestic annual harvest NEFSC staff using 2018 catch, and is as for 2019, because they do not and domestic annual processing in 2019 consistent with the SSC substantially impact one stock are adjusted consistent with the recommendation. component (inshore versus offshore) specifications for OY and border The Herring FMP specifies that the more than the other while providing transfer. All other herring specifications ABC may be equal to or less than the fishing opportunities for all gears types for 2019, including the river herring and OFL depending on scientific uncertainty and all management areas. shad catch caps, remain unchanged concerning stock size estimates, Based on the Council’s from 2018. variability around recruitment recommendations, we are reducing Changes From the Proposed Rule estimates, and consideration of border transfer to 0 mt and the fixed ecosystem issues. We are reducing the gear set-aside to 39 mt for 2019. Border This in-season adjustment ABC to 21,266 mt for 2019. This ABC transfer is a processing quota and is the implements herring specifications and accounts for scientific uncertainty in the maximum amount of herring that can be sub-ACLs for 2019 that are lower than stock assessment’s projected estimates transshipped to Canada via Canadian our proposed 2019 herring limits. All of herring biomass and recruitment and carrier vessels for human consumption. changes from the proposed rule are we expect it will prevent overfishing, Border transfer has been under-utilized consistent with Council lower the risk of the stock becoming in recent years, and there has been no recommendations and intended to lower overfished, and reduce catch level border transfer since 2015. Reducing the the risks of overfishing and the stock variability between 2019 and 2020. Our border transfer to 0 mt for 2019 would becoming overfished. Changes between decision to implement a 2019 ABC ensure all herring caught in U.S. waters our proposed and final herring consistent with the Council’s are available to U.S. federally permitted specifications and sub-ACLs are shown recommendation for this in-season dealers for lobster bait or human in Table 2 below. While the values for adjustment is independent of and consumption. Additionally, we are sub-ACLs and the fixed gear set-aside involves different considerations than proportionally reducing the fixed gear are different than those proposed, the our consideration of the Council’s set-aside, relative to the Area 1A sub- methods to allocate sub-ACLs and recommended control rule in ACL, to 39 mt. The Herring FMP allows adjust the fixed gear set-aside are the Amendment 8. We expect the Council to up to 500 mt of the Area 1A sub-ACL same. The specifications for submit Amendment 8 to us for review to be allocated for the fixed gear management uncertainty, domestic and approval in early 2019. fisheries in Area 1A (weirs and stop annual harvest, border transfer, The Herring FMP specifies that the seines) that occur west of 67°16.8′ W domestic annual processing, and ACL is reduced from the ABC to long. (Cutler, Maine). This set-aside is research set-aside are the same as those account for management uncertainty, available for harvest by fixed gear proposed. All other specifications, and the primary source of management within the specified area until including river herring and shad catch uncertainty is catch in the New November 1 of each fishing year. Any caps, remain unchanged from 2018.
TABLE 2—DIFFERENCE IN PROPOSED AND FINAL ATLANTIC HERRING SPECIFICATIONS AND SUB-ACLS FOR 2019
Proposed Specifications for 2019 Final for 2019 Difference (mt) (mt) (mt)
OFL ...... 30,688 30,668 * ¥20
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TABLE 2—DIFFERENCE IN PROPOSED AND FINAL ATLANTIC HERRING SPECIFICATIONS AND SUB-ACLS FOR 2019— Continued
Proposed Specifications for 2019 Final for 2019 Difference (mt) (mt) (mt)
ABC ...... 30,688 21,266 ¥9,422 OY/ACL ...... 24,488 15,065 ¥9,423 Domestic Annual Harvest ...... 24,488 15,065 ¥9,423 Domestic Annual Processing ...... 24,488 15,065 ¥9,423 Area 1A Sub-ACL (28.9%) ...... 7,077 4,354 ¥2,723 Area 1B Sub-ACL (4.3%) ...... 1,053 647 ¥406 Area 2 Sub-ACL (27.8%) ...... 6,808 4,188 ¥2,620 Area 3 Sub-ACL (39%) ...... 9,550 5,876 ¥3,674 Fixed Gear Set-Aside ...... 64 39 ¥25 * Difference due to correcting a typographical error in the value of the OFL.
Projections used to generate the received no comments on the EFPs, so would help the stock rebuild more proposed 2019 ABC assumed 49,900 mt we intend to issue EFPs to facilitate quickly; of herring catch in 2018. After herring RSA compensation fishing in • Actual catch in 2018 exceeded publication of the proposed rule, we support of the projects funded under the 49,900 mt so the proposed ABC would learned that total herring catch for 2018, 2019 Herring RSA Program. have less than a 50-percent probability including 11,500 mt of catch in the New of preventing overfishing in 2019; Comments and Responses Brunswick weir fishery that is not • It is uncertain what higher than counted against the ACL but used for We received 22 comment letters on average catch in the New Brunswick assessing status of the herring stock, the proposed rule: 11 from participants weir fishery will mean for stock actually totaled 54,896 mt. This means in the herring and lobster fisheries; 2 recruitment; that the proposed ABC likely has less from fishing industry organizations • The 2020 ABC can be higher under than a 50-percent probability of (Maine Lobstermen’s Association (MLA) the lower ABC than under the proposed preventing overfishing in 2019. We and New England Purse Seiner’s ABC; intended to explore ABC options for this Alliance (NEPSA)); 2 from states • The higher ABC results in final rule that were lower than 30,688 (Massachusetts Division of Marine additional risk to the stock that is not mt but higher than 21,266 mt, in hopes Fisheries (MA DMF) and Maine justified given the marginal increase in of finding a balance between conserving Division of Marine Resources (ME short-term revenue; and the herring stock and minimizing DMR)); 2 from environmental advocacy • The lower ABC balances the goals negative economic impacts on the groups (Conservation Law Foundation and objectives of the Herring FMP. fishing industry. However, the lapse in (CLF)/Natural Resources Defense Additionally, MA DMF commented appropriations resulting in the partial Council (NRDC) and Earthjustice); 2 that the herring stock is less likely to government shutdown starting on from participants in other fisheries (tuna become overfished under the lower ABC December 22, 2018, prevented us from and recreational); 1 from the Council; 1 than under the proposed ABC, working with staff from the NEFSC to from the Town of Wellfleet; and 1 from especially if recruitment projections are analyze additional alternatives. Setting a member of the public. not realized. It also speculated that the the final ABC lower than the OFL better Comment 1: Several commenters lower ABC in 2020, resulting from accounts for scientific uncertainty to supported the Council’s recommended higher limits in 2019, may cause more ensure catch limits will prevent herring ABC of 21,266 mt including: economic hardship, threaten the overfishing and meet the Herring FMP’s MA DMF; CLF/NRDC; Earthjustice; goals and objectives. viability of the herring fishery, and have Town of Wellfleet; and one recreational serious implications for vessels fishing Herring Research Set-Aside Exempted fisheries participant. These commenters for mackerel. Earthjustice and CLF/ Fishing Permits echoed the Council’s rationale for NRDC contend that the Magnuson- In the proposed rule, we solicited supporting a lower ABC in 2019 and Stevens Act prohibits ACLs from being public comment on exempted fishing that rationale is as follows: set higher than ABC recommendations • permits (EFPs) used to exempt vessels A buffer is needed between the OFL by the SSC. The Town of Wellfleet from certain herring management and ABC to account for scientific commented that the lower ABC better regulations to support herring research uncertainty associated with the provides for herring predators than the set-aside (RSA) compensation fishing. assessment’s recruitment and biomass proposed ABC. Consistent with previous herring RSA projections; Response: We understand the EFPs, vessels would be allowed to • The lower ABC performs better comments made by these stakeholders harvest herring RSA in a management across several metrics than the proposed and why they advocate for a lower area after a sub-ACL had been caught ABC, including lower probability of herring ABC in 2019, even though we and the herring fishery is limited to overfishing (15 percent versus 50 do not agree that the Magnuson-Stevens 2,000 lb (907 kg) of herring per day/trip percent) and lower variability in yield Act prohibits us from setting harvest in that area. EFPs would also allow (between 2019 and 2020); limits higher than those recommended vessels to harvest RSA during times • Maintaining fishing mortality at the by the SSC in this in-season adjustment. when the sub-ACLs are not seasonally rate to support maximum sustainable For all the reasons we previously available for harvest, specifically during yield is not consistent with the described, we are implementing the January through May in Area 1A and Council’s risk tolerance for herring and lower ABC (21,266 mt) recommended January through April in Area 1B. We applying a lower fishing mortality rate by the Council for 2019.
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Comment 2: Several commenters than anticipated, the proposed ABC of the Council’s recommendations for sub- supported the proposed ABC of 30,688 30,688 mt likely has less than a 50- ACL allocations. The Council will soon mt including: ME DMR; NEPSA; MLA; percent probability of preventing begin developing herring specifications some participants in the herring and overfishing in 2019. This means that the for 2020–2021 and will likely reconsider lobster fisheries; and one participant in higher ABC is no longer a viable sub-ACL allocations at that time. the tuna fishery. Their rationale for alternative for 2019. The partial Because herring revenue makes up a supporting a higher ABC in 2019 is as government shutdown that began on larger percentage of total revenue for follows: December 22, 2018, prevented us from purse seine vessels than trawl vessels, • The 2019 ABC should be set analyzing additional ABC alternatives. we agree that purse seine vessels may be consistent with recent specifications Therefore, to better account for more negatively affected by low catch until the new control rule is reviewed scientific uncertainty and prevent limits than trawl vessels. We disagree and approved as part of Amendment 8; overfishing and lower the risk of the that sub-ACL allocations will prevent • The maximum fishing mortality rate stock becoming overfished, we are the ACL from being harvested in 2019 of 80 percent associated the new control implementing the lower ABC because recent catch (2016–2018) in rule is redundant as the stock recommended by the Council for 2019. each of the management areas has been assessment already accounts for the Comment 3: The Council and some higher than the 2019 sub-ACLs, with the consumption of herring by predators; participants in the herring trawl fishery exception of Area 2 in 2017. But if there • The lower ABC is too restrictive, in expressed support for maintaining is unharvested herring catch available in hopes of rebuilding the stock by limiting recent sub-ACL allocations. They any of the management areas near the fishing, but herring recruitment is commented that the proposed sub-ACL end of the fishing year, the Council primarily environmentally-driven; allocations provide harvesting could request we use an additional in- • The higher ABC helps achieve OY opportunities for vessels fishing in season adjustment to reallocate by accounting for social, economic, and offshore areas, small-mesh bottom trawl unharvested catch. ecological factors while preventing fishing in Area 2, and vessels fishing for Comment 5: Earthjustice and CLF/ overfishing and mitigating severe mackerel in Area 2. NRDC commented on the river herring economic hardship on the herring and Response: We acknowledge these and shad catch caps for 2019. They lobster fisheries; comments and are maintaining the cautioned that maintaining the current • The higher ABC helps support a recent herring sub-ACL allocations in catch caps would allow mackerel fishery in 2019; 2019. disproportionately high catch of river • The new control rule would not Comment 4: Several commenters herring and shad, compared to herring have prevented the current condition of opposed maintaining the recent sub- catch, and would not encourage vessels the herring stock and it is an ACLs allocations including the MLA, to avoid river herring and shad catch or overreaction to the 2018 stock NEPSA, ME DMR, some participants in minimize bycatch in violation of the assessment without consideration for the herring purse seine fishery, some Magnuson-Stevens Act. the economic impacts on herring, participants in the lobster fishery, and Response: We disagree with these lobster, and mackerel fisheries; one participant in the tuna fishery. They comments. In January 2017, midwater • Leaving an extra 9,000 mt of herring commented that more herring should be vessels had only harvested about 3,000 in the water will not make an allocated to Area 1A because: mt of herring from Area 3 when their appreciable impact on the future health • Recent allocations do not reflect the catch of river herring and shad of herring stock, but not doing so will availability of the herring resource or approached 80-percent of the Cape Cod devastate the herring and lobster the effort of the herring fishery; catch cap. Because the midwater trawl fisheries; • Recent allocations do not equally fleet quickly modified their fishing • The economic impacts of the lower distribute the impact of a low ABC behavior to avoid river herring and ABC on the fishing industry will be across states, so Maine will be more shad, they were able to avoid fully severe with participants in the herring severely impacted than other states harvesting the Cape Cod catch cap for fishery struggling to maintain their because of its need for lobster bait; the remainder of 2017. In March 2018, businesses, crews, and facilities and the • If the largest percentage of the ACL midwater trawl vessels fully harvested lobster fishery losing access to millions is not allocated to Area 1A, the ACL the Southern New England catch cap, of pounds of lobster bait resulting in may not be harvested; triggering the 2,000-lb herring high prices and shortages; and • Purse seine vessels will be more possession limit in the catch cap closure • A higher ABC in 2019 would allow impacted by a low ABC than trawl area, in combination with less than the lobster industry time to identify vessels because they only fish in Area 6,500 mt of herring from Area 2. Herring alternative sources of bait, coordinate 1A; catch from Area 2 remained low for the bait distribution, and grow • Timing of the Area 1A fishery rest of the year and totaled infrastructure and storage capacity to coincides with the lobster fishery’s need approximately 7,000 mt at the end of minimize the economic impacts of for fresh bait; 2018. These examples illustrate that reduced herring catch limits. • Allocating the most harvest to Area even at low levels of herring catch, the Response: We also understand the 1A will help lessen the impact of the current river herring and shad catch comments made by these stakeholders ABC reduction on the lobster fishery; caps provide an incentive to avoid river and why they advocate for a higher and herring and shad and minimize bycatch. herring ABC in 2019. While the impacts • Unharvested catch should be Comment 6: The Council expressed of less catch and less revenue associated transferred into areas where it can be support for reducing border transfer to with either ABC alternative will harvested. zero so that more herring would be negatively impact the fishing industry, Response: We understand the available to the bait market. Both the we agree with the commenters that concerns expressed in these comments. Council and ME DMR expressed economic impacts on the fishing Because sub-ACL allocations have the support for a fixed gear set-aside and the industry will likely be more severe with potential for biological impacts on the Council noted that the fixed gear set- implementation of the lower ABC. herring stock and economic impacts on aside should be reduced in proportion Because actual catch in 2018 was higher the fishing industry, we are deferring to to the ABC.
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Response: We acknowledge these overfished. Before taking this action, we A final regulatory flexibility analysis comments and are reducing border consulted with the Council at its (FRFA) was prepared in support of this transfer to zero mt and implementing a September and December 2018 action. The FRFA incorporates the fixed gear set-aside of 39 mt for 2019, meetings. At those meetings, the IRFA, a summary of the significant reduced proportionally relative to the Council requested that we use an in- issues raised by the public comments in Area 1A sub-ACL. season adjustment to reduce 2018 response to the IRFA, NMFS responses Comment 7: The NEPSA and one herring specifications and sub-ACLs for to those comments, and a summary of participant in the herring fishery 2019 to prevent overfishing and lower the analyses completed in support of supported the in-season transfer of the risk of the stock becoming this action. A description of why this unharvested herring. overfished. action was considered, the objectives of, Response: We expect the fishery to be A delay in implementing these new and the legal basis for this rule is able to fully harvest the ACL/OY in herring catch limits will increase the contained in in the preamble to the 2019, but if there is unharvested herring likelihood that 2019 herring catch will proposed and this final rule, and is not catch available in any of the exceed these lower limits. These new repeated here. All of the documents that management areas near the end of the catch limits are almost 70 percent lower constitute the FRFA and a copy of the fishing year, the Council could request than 2018 catch limits. Exceeding these SEA/RIR/IRFA are available upon we use an additional in-season limits would result in a lower herring request (see ADDRESSES) or via the adjustment to reallocate unharvested biomass and negative economic impacts internet at https://www.nefmc.org. catch. on the herring industry due to further Comment 8: One participant in the reduced catch limits in 2020 and A Statement of the Significant Issues Raised by the Public in Response to the herring fishery expressed support for beyond. Because herring is a critical IRFA, a Statement of the Agency’s the research set-aside because of the source of bait for the lobster fishery, Assessment of Such Issues, and a value of the compensation fishery, these negative economic impacts are Statement of Any Changes Made in the especially if it helps provide access to also expected to affect the lobster Final Rule as a Result of Such the mackerel fishery. fishery by reducing its bait supply. Response: We acknowledge this Additionally, we are required to Comments comment and are setting aside 3-percent implement a 2,000-lb (907-kg) herring We received 22 comment letters on of each sub-ACL for research, consistent possession limit for the remainder of the the proposed rule. Those comments, with recent specifications. year in each management area once we and our responses, are contained in the Comment 9: Several commenters project 92-percent of an area’s sub-ACL Comments and Responses section of this expressed concern with weekly landing is harvested. We are also required to final rule and are not repeated here. All limits and measures restricting the implement a 2,000-lb (907-kg) herring changes from the proposed rule, as well activity of herring carrier vessels in Area possession limit for the remainder of the as the rationale for those changes, are 1A. year in all management areas once we described in the Changes from the Response: Because these measures are project 95-percent of the herring ACL is Proposed Rule section of this final rule recommended by the Atlantic States harvested. If a delay in implementing and are not repeated here. Marine Fisheries Commission and this action results in catch approaching, Description and Estimate of Number of implemented and enforced by or exceeding, the new 2019 catch limits, Small Entities to Which the Rule Would individual states, they are outside the implementation of a herring possession Apply scope of this action. limit is more likely. Early implementation of a herring possession The RFA recognizes three kinds of Classification limit would be counter to the goals and small entities: Small businesses; small The Administrator, Greater Atlantic objectives of this action, which is organizations; and small governmental Region, NMFS determined that this final intended to reduce 2019 catch, but also jurisdictions. For purposes of the RFA rule is necessary for the conservation continue to provide fishing only, the small business criteria in the and management of the herring fishery opportunities for the remainder of the finfish fishing industry (NAICS 114111) and that it is consistent with the 2019 fishing year. is a firm that is independently owned Magnuson-Stevens Act and other This action is necessary to help and operated and not dominant in its applicable law. rebuild the herring stock and maintain field of operation, with gross annual There is good cause under 5 U.S.C. the viability of the herring fishing receipts of $11 million or less. Small 553(d)(3) to waive the 30-day delay in industry and other fisheries that rely on organizations and small governmental effectiveness so the purpose of this herring. Waiving the 30-day delay in jurisdictions are not directly regulated action is not undermined. This action effectiveness is necessary to fully by this action. reduces 2018 herring specifications and achieve the conservation and economic There are five permit categories in the sub-ACLs to prevent overfishing in 2019 benefits this action is intended to herring fishery: (1) Limited access with the goals of increasing herring provide. A 30-day delay in effectiveness permit for all management areas biomass and providing future fishery is unnecessary because it provides no (Category A); (2) limited access permit opportunities. This action must be in benefit to herring conservation or the for access to Areas 2 and 3 only effect as soon as practicable to realize herring fishing industry. Conversely, a (Category B); (3) limited access these intended benefits. Because this 30-day delay could result in a lower incidental catch permit for 25 mt per action reduces catch limits that directly herring biomass and negative economic trip (Category C); (4) an open access relate to preventing overfishing while impacts to the herring industry due to incidental catch permit for 3 mt per trip allowing the herring fishery to achieve further reduced catch limits in 2020 and (Category D); and (5) an open access OY, a 30-day delay would be contrary beyond. For these reasons, NMFS has permit for limited access mackerel to the public interest. determined that a 30-day delay in the permit holders authorizing up to 9 mt The 2018 herring stock assessment effectiveness of this action is contrary to per trip (Category E) in Areas 2 and 3. concluded that catch would need to be the public interest. In 2017, there were a total of 1,566 reduced in 2019 to prevent overfishing This final rule is exempt from review permitted herring vessels. Of those, and lower the risk of the stock becoming under Executive Order 12866. 1,434 were exclusively Category D
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vessels. Of the remaining 132 permitted carried a Category D authorization. We their affiliated entity’s small or large herring vessels, 22 belonged to large included Category E vessels that also business status (the status of the businesses. Every Category B permit was have Category D authorization in the company that holds the herring permit). also authorized for Category C, and all analysis. Table 3 presents the counts of but one Category E permitted vessel also permitted vessels by category along with
TABLE 3—NUMBER OF HERRING PERMITS BY CATEGORY, 2015–2017
Number of herring permits Herring permit categories 2015 2016 2017 Large Small Large Small Large Small
A ...... 5 32 5 30 6 30 B/C ...... 4 4 4 4 4 4 C (exclusive) ...... 3 37 3 37 3 37 D (exclusive)...... 112 1,222 115 1,306 114 1,320 E ...... 9 39 9 40 9 39
Total ...... 133 1,334 136 1,417 136 1,430 Source: NMFS.
Table 4 refines the counts from Table revenue from herring at least once in the were 4 large businesses and 69 small 3 to include only those vessels that had 3-year period of analysis. In 2017, there that had revenue from herring.
TABLE 4—NUMBER OF HERRING PERMITS WITH HERRING REVENUE, 2015–2017
Number of herring permits Herring permit categories 2015 2016 2017 Large Small Large Small Large Small
A ...... 4 20 4 19 4 19 B/C ...... 0 2 0 2 0 3 C (exclusive) ...... 0 11 0 9 0 12 D (exclusive) ...... 0 27 0 29 0 31 E ...... 0 4 0 1 0 4
Total ...... 4 64 4 60 4 69 Source: NMFS.
Finally, Table 5 defines the small Category A, B, C, or E permit and 31, and 38 such vessels in 2015, 2016, entities affected by this proposed revenue from herring during the 2015– and 2017 respectively. action—small businesses with a Herring 2017 period of analysis. There were 37,
TABLE 5—AFFECTED SMALL ENTITIES, PERMITTED HERRING VESSELS WITH HERRING REVENUE, 2015–2017
Number of herring permits Herring permit categories 2015 2016 2017 Large Small Large Small Large Small
A ...... 4 20 4 19 4 19 B/C ...... 0 2 0 2 0 3 C (exclusive) ...... 0 11 0 9 0 12 E ...... 0 4 0 1 0 4
Total ...... 4 37 4 31 4 38 Source: NMFS.
To better understand the impact of show the most dependence on the revenue coming from the herring this action on the affected small herring fishery, with 49.75 percent to fishery. businesses, we compared the revenue 62.03 percent of their revenue coming from herring fishing to total revenue from herring landings. The 4 small brought in by the entity (business) that Category E permitted entities have the holds the herring permit. The 17 to 18 least dependence on the herring fishery small entities with Category A permits with less than one percent of total entity
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Description of Projected Reporting, would have allowed for higher total scientific and local names of certain Recordkeeping, and Other Compliance revenue and higher herring revenue species. The intent of this final rule is Requirements than Alternative 2, Alternative 2 is the to prioritize conservation and This final rule does not introduce any only alternative that meets the management efforts and to improve new reporting, recordkeeping, or other conservation and management efficiency of fishery management in the compliance requirements. objectives of the regulatory and region. statutory requirements. The impacts of DATES: This rule is effective March 11, Description of the Steps the Agency Has adjustments to herring specifications 2019. Taken To Minimize the Significant and sub-ACLs for 2019, as implemented ADDRESSES: The Western Pacific Fishery Economic Impact on Small Entities by this final rule, are not expected to Management Council (Council) Consistent With the Stated Objectives of disproportionately affect large or small prepared Amendment 4 to the Fishery Applicable Statutes entities. Ecosystem Plan (FEP) for American Regulations at 50 CFR 648.200(e) Section 212 of the Small Business Samoa, Amendment 5 to the FEP for the allow us to make in-season adjustments Regulatory Enforcement Fairness Act of Marianas Archipelago, and Amendment to the herring specifications and sub- 1996 states that, for each rule or group 5 to the FEP for Hawaii. Those ACLs to achieve conservation and of related rules for which an agency is amendments, available as a single management objectives, after required to prepare a FRFA, the agency document, include an environmental consultation with the Council, shall publish one or more guides to assessment (EA) that describes the consistent with the Herring FMP’s assist small entities in complying with potential impacts on the human objectives and other FMP provisions. the rule, and shall designate such environment that would result from the Specifications and sub-ACLs must also publications as ‘‘small entity action. This document is available at be based on the best available scientific compliance guides.’’ The agency shall http://www.regulations.gov or from the information, consistent with National explain the actions a small entity is Council, 1164 Bishop St., Suite 1400, Standard 2 of the Magnuson-Stevens required to take to comply with a rule Honolulu, HI 96813, tel (808) 522–8220, Act. The adjustments to 2018 herring or group of rules. As part of this fax (808) 522–8226, or https:// specifications and sub-ACLs for 2019 rulemaking process, a letter to permit www.wpcouncil.org. holders that also serves as small entity implemented in this final rule satisfy FOR FURTHER INFORMATION CONTACT: Kate regulatory and statutory requirements compliance guide was prepared. Copies Taylor, NMFS PIR Sustainable while achieving conservation and of this final rule are available from the Fisheries, 808–725–5182. Greater Atlantic Regional Fisheries management objectives. Other options SUPPLEMENTARY INFORMATION: The Office (GARFO), and the compliance that we considered, including those that Council and NMFS manage fishing in guide (i.e., fishery bulletin) will be sent would have had less of an impact on the U.S. Exclusive Economic Zone (EEZ) to all holders of permits for the herring small entities, failed to meet one or around the U.S. Pacific Islands pursuant fishery. The guide and this final rule more of these stated objectives and, to the Magnuson-Stevens Fishery will be posted on the GARFO website. therefore, could not be implemented. Conservation and Management Act Alternative 1 (2018 catch limits) has Authority: 16 U.S.C. 1801 et seq. (Magnuson-Stevens Act). In this rule, less than a 50-percent probability of Dated: February 5, 2019. NMFS, as recommended by the Council, preventing overfishing in 2019 and, Samuel D. Rauch III, is reclassifying certain bottomfish, coral thus, is inconsistent the Magnuson- Deputy Assistant Administrator for reef ecosystem, precious coral, and Stevens Act. Alternative 1 would also Regulatory Programs, National Marine crustacean management unit species negatively impact the herring stock by Fisheries Service. (MUS) in the three FEPs as ecosystem increasing the risk that it would become [FR Doc. 2019–01658 Filed 2–7–19; 8:45 am] component species (ECS). The action overfished. The primary difference BILLING CODE 3510–22–P focuses Federal conservation and between Alternative 2 (final 2019 catch management on the MUS (i.e., the limits) and Alternative 3 (catch limits targets of Federal fisheries). based on an ABC of 30,668) are DEPARTMENT OF COMMERCE The Council recommended amending specifications for ABC and the resulting the three FEPs to reclassify certain ACL and sub-ACLs for 2019. The ABC National Oceanic and Atmospheric management unit species as ecosystem associated with the Alternative 3 Administration component species. The intent of these (30,668 mt) is 9,402 mt higher than the amendments is to focus management ABC associated with Alternative 2 50 CFR Part 665 efforts on species that are in need of (21,266 mt). Projections used to generate [Docket No. 180202118–8999–01] conservation and management, and Alternative 3 assumed 49,900 mt of improve efficiency of fishery herring catch in 2018. After publication RIN 0648–BH63 management in the region. On August 8, of the proposed rule, we learned that 2018, NMFS published a notice of total herring catch for 2018, including Pacific Island Fisheries; Reclassifying availability of the amendments, catch in the New Brunswick weir Management Unit Species to including an environmental assessment, fishery, actually totaled 54,896 mt. This Ecosystem Component Species and request for public comments (83 FR means that Alternative 3, like AGENCY: National Marine Fisheries 39039); the comment period ended Alternative 1, has less than a 50-percent Service (NMFS), National Oceanic and October 9, 2018. NMFS did not receive probability of preventing overfishing in Atmospheric Administration (NOAA), any comments directly related to the 2019 and is also inconsistent with the Commerce. amendments, and on November 5, 2018, Magnuson-Stevens Act. In its comment ACTION: Final rule. the Secretary of Commerce approved the letter on the proposed rule, the Council FEP amendments. This final rule also cautioned that Alternative 3’s SUMMARY: This final rule reclassifies implements the FEP amendments. higher ABC is inconsistent with the certain management unit species in the This action does not change any Council’s risk tolerance for the herring Pacific Islands as ecosystem component fishery operations in terms of location, resource. While Alternatives 1 and 3 species. The rule also updates the target and non-target species, catch,
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effort, fishermen participation, gear proposed rule and is not repeated here. ■ d. Remove the definition of composition, seasonality, intensity, or NMFS did not receive any comments ‘‘Potentially harvested coral reef taxa’’; bycatch. For newly designated ECS, the regarding this certification. As a result, and Council and NMFS would no longer a regulatory flexibility analysis was not ■ e. Revise the definitions of ‘‘PRIA establish annual catch limits or required and none was prepared. FEP’’, ‘‘Special permit’’, and associated accountability measures. The ‘‘Transship’’. List of Subjects in 50 CFR Part 665 Council and NMFS, in cooperation with The revisions read as follows: the State of Hawaii, Territory of Administrative practice and American Samoa and Guam and the procedure, American Samoa, § 665.12 Definitions. Commonwealth of the Northern Mariana Ecosystem, Fisheries, Fishing, Guam, * * * * * Islands will continue to monitor Hawaii, Northern Mariana Islands, American Samoa FEP means the fisheries that catch ECS. If an ECS stock Permits, Reporting and recordkeeping Fishery Ecosystem Plan for American becomes a target of a Federal fishery in requirements. Samoa, available from the Western Pacific Fishery Management Council or the future, NMFS and the Council may Dated: February 1, 2019. PIRO. consider including that stock in the Samuel D. Rauch, III, management unit to actively manage * * * * * Deputy Assistant Administrator for that stock. Regulatory Programs National Marine Ecosystem component species (ECS) This rule reduces the number of MUS Fisheries Service. means a stock that a Council or the from 205 species or families to 11 in the Secretary has determined does not American Samoa FEP, from 227 species For the reasons set out in the require conservation and management, or families to 13 in the Marianas FEP, preamble, NMFS amends 50 CFR part but is identified in an FEP to achieve and from 173 species or families to 20 665 as follows: ecosystem management objectives. in the Hawaii FEP. Appendix B of the * * * * * EA contains the complete list of ECS. PART 665—FISHERIES IN THE WESTERN PACIFIC First level buyer means: This rule also updates several scientific (1) The first person who purchases, and common names according to ■ with the intention to resell, management current scientific classifications. All 1. The authority citation for 50 CFR part 665 continues to read as follows: unit species (MUS) or ECS, or portions existing management measures, thereof, that were harvested by a vessel including reporting and record keeping, Authority: 16 U.S.C. 1801 et seq. that holds a permit or is otherwise prohibitions, and experimental fishing ■ 2. In § 665.1, revise paragraph (a) to regulated under crustacean fisheries in regulations apply to the associated ECS, read as follows: subparts B through E of this part; or unless otherwise specified. (2) A person who provides § 665.1 Purpose and scope. You may find additional background recordkeeping, purchase, or sales information on this action in the (a) The regulations in this part govern assistance in the first transaction preamble to the proposed rule (83 FR fishing for Pacific Island management involving MUS or ECS (such as the 46466, September 13, 2018). unit species (MUS) and ecosystem services provided by a wholesale Comments and Responses component species (ECS) by vessels of auction facility). the United States that operate or are On September 13, 2018, NMFS * * * * * based inside the outer boundary of the Hawaii FEP means the Fishery published a proposed rule and request U.S. EEZ around American Samoa, for public comments (83 FR 46466). The Ecosystem Plan for the Hawaiian Hawaii, Guam, the Northern Mariana Archipelago, available from the Western comment period ended October 29, Islands, Palmyra Atoll, Kingman Reef, 2018. NMFS received one comment that Pacific Fishery Management Council or Jarvis Island, Baker Island, Howland PIRO. generally supported the rule. Island, Johnston Atoll, and Wake Island. * * * * * Changes From the Proposed Rule * * * * * Mariana FEP means the Fishery This final rule contains no changes ■ 3. In § 665.4, revise paragraph (c) to Ecosystem Plan for the Mariana from the proposed rule. read as follows: Archipelago, available from the Western Pacific Fishery Management Council or Classification § 665.4 Annual catch limits. PIRO. The Administrator, Pacific Islands * * * * * * * * * * Region, NMFS, determined that this (c) Exceptions. The Regional No-take MPA means an area of the action is necessary for the conservation Administrator is not required to specify U.S. EEZ that is closed to fishing for or and management of Pacific Island an annual catch limit for an ECS, or for harvesting of any MUS or ECS, as fisheries, and that it is consistent with an MUS that is statutorily excepted from defined in subparts B through F of this the Magnuson-Stevens Act and other the requirement pursuant to 50 CFR part. applicable laws. 600.310(h)(2). Offload means to remove MUS or ECS This final rule has been determined to * * * * * from a vessel. be not significant for purposes of ■ Executive Order 12866. 4. In § 665.12: * * * * * The Chief Counsel for Regulation of ■ a. Revise the definition of ‘‘American Pelagics FEP means the Fishery the Department of Commerce certified Samoa FEP’’; Ecosystem Plan for Pelagic Fisheries of to the Chief Counsel for Advocacy of the ■ b. Remove the definition of ‘‘Currently the Western Pacific, available from the Small Business Administration during harvested coral reef taxa’’; Western Pacific Fishery Management the proposed rule stage that this action ■ c. Revise the definitions of Council or PIRO. would not have a significant economic ‘‘Ecosystem component species’’, ‘‘First * * * * * impact on a substantial number of small level buyer’’, ‘‘Hawaii FEP’’, ‘‘Mariana PRIA FEP means the Fishery entities. The factual basis for the FEP,’’ ‘‘No-take MPA’’, ‘‘Offload’’, and Ecosystem Plan for the Pacific Remote certification was published in the ‘‘Pelagics FEP’’; Island Areas of Palmyra Atoll, Kingman
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Reef, Jarvis Island, Baker Island, original logbook for each day of request by an authorized officer as Howland Island, Johnston Atoll, and transshipment activity must be defined in § 600.10 of this chapter. Wake Island, available from the Western submitted to the Regional Administrator * * * * * Pacific Fishery Management Council or within 7 days of each landing of coral ■ 7. In § 665.15, revise paragraphs (l), reef ECS. PIRO. (n), and (o) to read as follows: * * * * * (d) Sales report. The operator of any Special permit means a permit issued fishing vessel subject to the § 665.15 Prohibitions. to allow fishing for coral reef ECS in requirements of § 665.142, § 665.242, * * * * * low-use MPAs or with any gear not § 665.442, or § 665.642, or the owner of (l) Fish for, take or retain within a no- specifically allowed under § 665.127, a medium or large fishing vessel subject take MPA, defined in § 665.99, § 665.227, or § 665.427. to the requirements of § 665.404(a)(2) § 665.199, § 665.399, or § 665.599, any must submit to the Regional bottomfish MUS or ECS, crustacean * * * * * Administrator, within 72 hours of Transship means to offload or MUS or ECS, western Pacific pelagic offloading of crustacean MUS or ECS, an MUS, precious coral MUS or ECS, otherwise transfer MUS or ECS or accurate and complete sales report on a products thereof to a receiving vessel. seamount groundfish MUS, or coral reef form provided by the Regional ecosystem ECS. * * * * * Administrator. The form must be signed ■ 5. In § 665.13, revise paragraph (k) to and dated by the fishing vessel operator. * * * * * (n) Fish for, catch, or harvest MUS or read as follows: * * * * * (g) *** ECS without an operational VMS unit § 665.13 Permits and fees. (2) Crustaceans. Upon request, any on board the vessel after installation of * * * * * first-level buyer must immediately the VMS unit by NMFS, in violation of (k) Display. Any permit issued under allow an authorized officer and any § 665.19(e)(2). this subpart, or a facsimile of such employee of NMFS designated by the (o) Possess MUS or ECS, that were permit, must be on board the vessel at Regional Administrator, to access, harvested after NMFS has installed the all times while the vessel is fishing for, inspect, and copy all records relating to VMS unit on the vessel, on board that taking, retaining, possessing, or landing the harvest, sale, or transfer of vessel without an operational VMS unit, MUS or ECS shoreward of the outer crustacean MUS or ECS taken by vessels in violation of § 665.19(e)(2). boundary of the fishery management that have permits issued under this * * * * * area. Any permit issued under this subpart or §§ 665.140 through 665.145, ■ 8. In § 665.17, revise paragraphs (a) section must be displayed for inspection §§ 665.240 through 665.252, §§ 665.440 and (b) to read as follows: upon request of an authorized officer. through 665.445, or §§ 665.640 through * * * * * 665.645. This requirement may be met § 665.17 Experimental fishing. ■ 6. In § 665.14, revise paragraphs (a), by furnishing the information on a (a) General. The Regional (c), (d), (g)(2) introductory text, (g)(2)(ii), worksheet provided by the Regional Administrator may authorize, for and (g)(3) and (4) to read as follows: Administrator. The information must limited purposes, the direct or include, but is not limited to: incidental harvest of MUS or ECS that § 665.14 Reporting and recordkeeping. * * * * * would otherwise be prohibited by this (a) State reporting. Except for (ii) The amount, number, and size of part. No experimental fishing may be precious coral and crustacean fisheries, each MUS or ECS involved in each conducted unless authorized by an EFP any person who is required to do so by transaction. issued by the Regional Administrator in applicable state law or regulation must * * * * * accordance with the criteria and make and/or file all reports of MUS or (3) Bottomfish and seamount procedures specified in this section. ECS landings containing all data and in groundfish. Any person who is required EFPs will be issued without charge. the exact manner required by applicable by state laws and regulations to (b) Observers. No experimental fishing state law or regulation. maintain records of landings and sales for crustacean MUS or ECS may be * * * * * for vessels regulated by this subpart and conducted unless a NMFS observer is (c) Transshipment logbooks. Any by §§ 665.100 through 665.105, 665.200 aboard the vessel. person subject to the requirements of through 665.212, 665.400 through * * * * * § 665.124(a)(2), § 665.224(a)(2), 665.407, and 665.600 through 665.606 ■ 9. Revise § 665.101 to read as follows: § 665.424(a)(2), § 665.624(a)(2), or must make those records immediately § 665.801(e) must maintain on board the available for Federal inspection and § 665.101 Definitions. vessel an accurate and complete NMFS copying upon request by an authorized As used in §§ 665.100 through transshipment logbook containing officer. 665.119: report forms provided by the Regional (4) Coral reefs. Any person who has American Samoa bottomfish Administrator. All information specified a special permit and who is required by ecosystem component species on the forms must be recorded on the state laws and regulations to maintain (American Samoa bottomfish ECS) forms within 24 hours after the day of and submit records of catch and effort, means those species identified as ECS in transshipment. Each form must be landings and sales for coral reef ECS by the American Samoa FEP and not signed and dated by the receiving vessel this subpart and §§ 665.120 through defined as American Samoa bottomfish operator. The original logbook for each 665.128, §§ 665.220 through 665.228, MUS. day of transshipment activity must be §§ 665.420 through 665.428, or American Samoa bottomfish submitted to the Regional Administrator §§ 665.620 through 665.628 must make management unit species (American within 72 hours of each landing of those records immediately available for Samoa bottomfish MUS) means the western Pacific pelagic MUS. The Federal inspection and copying upon following species:
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Local name Common name Scientific name
palu-gutusiliva ...... red snapper, silvermouth ...... Aphareus rutilans. asoama ...... gray snapper, jobfish ...... Aprion virescens. tafauli ...... black trevally, jack ...... Caranx lugubris. papa, velo ...... lunartail grouper ...... Variola louti. palu malau ...... red snapper ...... Etelis carbunculus. palu-loa ...... red snapper ...... Etelis coruscans. filoa-paomumu ...... redgill emperor ...... Lethrinus rubrioperculatus. savane ...... blueline snapper ...... Lutjanus kasmira. palu-e`na e`na ...... pink snapper ...... Pristipomoides filamentosus. palu-sina ...... yelloweye snapper ...... Pristipomoides flavipinnis. palu-ula, palu-sega ...... Snapper ...... Pristipomoides zonatus.
■ 10. Revise § 665.103 to read as (1) Special permit. Any person of the (b) Fish for, take, or retain any follows: United States fishing for, taking or American Samoa coral reef ECS: retaining American Samoa coral reef § 665.103 Prohibitions. * * * * * ECS must have a special permit if they ■ 16. Revise § 665.126 to read as In addition to the general prohibitions fish, or if a vessel which they operate is follows: specified in § 600.725 of this chapter used to fish, for any: and § 665.15, it is unlawful for any (i) American Samoa coral reef ECS in § 665.126 Notifications. person to fish for American Samoa low-use MPAs as defined in § 665.99; Any special permit holder subject to bottomfish MUS or ECS using gear (ii) American Samoa coral reef ECS in the requirements of this subpart must prohibited under § 665.104. the coral reef ecosystem management contact the appropriate NMFS ■ 11. In § 665.104, revise paragraph (a) area; or enforcement agent in American Samoa, to read as follows: Guam, or Hawaii at least 24 hours before (iii) American Samoa coral reef ECS landing any American Samoa coral reef § 665.104 Gear restrictions. in the coral reef ecosystem management ECS harvested under a special permit (a) Bottom trawls and bottom set area with any gear not specifically and report the port and the approximate gillnets. Fishing for American Samoa allowed in this subpart. date and time at which the catch will be bottomfish MUS or ECS with bottom (2) Transshipment permit. A receiving landed. trawls and bottom set gillnets is vessel must be registered for use with a ■ 17. In § 665.127, revise paragraphs (a) prohibited. transshipment permit if that vessel is introductory text and (b) to read as * * * * * used in the American Samoa coral reef follows: ecosystem management area to land or ■ 12. Revise § 665.121 to read as transship American Samoa coral reef § 665.127 Allowable gear and gear follows: ECS harvested within low-use MPAs. restrictions. § 665.121 Definitions. (3) * * * (a) American Samoa coral reef ECS As used in §§ 665.120 through (i) Any person issued a permit to fish may be taken only with the following 665.139, American Samoa coral reef under any FEP who incidentally catches allowable gear and methods: ecosystem component species American Samoa coral reef ECS while * * * * * (American Samoa coral reef ECS) means fishing for bottomfish MUS or ECS, (b) American Samoa coral reef ECS those species identified as ECS in the crustacean ECS, western Pacific pelagic may not be taken by means of poisons, American Samoa FEP and not defined MUS, precious coral ECS, or seamount explosives, or intoxicating substances. as MUS or another ECS in this subpart. groundfish MUS; Possession or use of these materials by any permit holder under this subpart ■ 13. Revise § 665.123 to read as (ii) Any person fishing for American who is established to be fishing for coral follows: Samoa coral reef ECS outside of an MPA, who does not retain any reef ECS in the management area is § 665.123 Relation to other laws. American Samoa coral reef ECS; and prohibited. * * * * * To ensure consistency between the * * * * * management regimes of different ■ 18. In § 665.128, revise paragraph (a) Federal agencies with shared ■ 15. In § 665.125, revise paragraphs (a) to read as follows: management responsibilities of fishery introductory text, (a)(3), and (b) resources within the American Samoa introductory text to read as follows: § 665.128 Gear identification. (a) Gear marking. The vessel number fishery management area, fishing for § 665.125 Prohibitions. American Samoa coral reef ECS is not must be affixed to all fish and crab traps * * * * * allowed within the boundary of a on board the vessel or deployed in the National Wildlife Refuge unless (a) Fish for, take, retain, possess or water by any vessel or person holding specifically authorized by the USFWS, land any American Samoa coral reef a permit under § 665.13 or § 665.124 or regardless of whether that refuge was ecosystem ECS in any low-use MPA as that is otherwise established to be established by action of the President or defined in § 665.99 unless: fishing for American Samoa coral reef the Secretary of the Interior. * * * * * ecosystem ECS in the management area. ■ 14. In § 665.124, revise paragraphs (3) The American Samoa coral reef * * * * * (a)(1) and (2) and (a)(3)(i) and (ii) to read ECS possessed on board the vessel ■ 19. In § 665.141, add a definition for as follows: originated outside the management area, ‘‘American Samoa crustacean ecosystem and this can be demonstrated through component species (American Samoa § 665.124 Permits and fees. receipts of purchase, invoices, fishing crustacean ECS)’’ in alphabetical order (a) * * * logbooks or other documentation. and remove the definition of ‘‘American
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Samoa crustacean management unit permit area must have a permit issued ■ 24. In § 665.167, revise paragraph (d) species’’. under § 665.13. to read as follows: The addition reads as follows: * * * * * § 665.167 Quotas. § 665.141 Definitions. ■ 22. In § 665.163, revise the introductory text of paragraphs (b) and * * * * * * * * * * American Samoa crustacean (c) to read as follows: (d) Exploratory areas. The American Samoa exploratory permit area X–P–AS ecosystem component species § 665.163 Prohibitions. has an annual quota of 1,000 kg for all (American Samoa crustacean ECS) * * * * * means those species identified as ECS in American Samoa precious coral ECS (b) Fish for, take, or retain any species combined with the exception of black the American Samoa FEP. of American Samoa precious coral ECS corals. * * * * * in any precious coral permit area: ■ 20. In § 665.161, add a definition for * * * * * ■ 25. In § 665.201, add a definition for ‘‘American Samoa precious coral (c) Take and retain, possess, or land ‘‘Hawaii bottomfish ecosystem ecosystem component species any live Hemicorallium laauense, component species (Hawaii bottomfish (American Samoa precious coral ECS)’’ Pleurocorallium secundum, Corallium ECS)’’ in alphabetical order, revise the in alphabetical order and remove the sp., or live black coral from any definitions of ‘‘Hawaii bottomfish definition of ‘‘American Samoa precious precious coral permit area that is less management unit species (Hawaii coral management unit species’’. than the minimum height specified in bottomfish MUS)’’ and ‘‘Main Hawaiian The addition reads as follows: § 665.165 unless: Islands non-commercial bottomfish permit’’, and in the definition of § 665.161 Definitions. * * * * * ■ 23. In § 665.165, revise paragraphs (a) ‘‘Seamount Groundfish’’, revise the * * * * * and (b) to read as follows: entry for ‘‘Armorhead’’ to read as American Samoa precious coral follows: ecosystem component species § 665.165 Size restrictions. (American Samoa precious coral ECS) * * * * * § 665.201 Definitions. means those species identified as ECS in (a) Live Hemicorallium laauense, * * * * * the American Samoa FEP. Pleurocorallium secundum, or Hawaii bottomfish ecosystem * * * * * Corallium sp. harvested from any component species (Hawaii bottomfish ■ precious coral permit area must have 21. In § 665.162, revise paragraph (a) ECS) means those species that are not to read as follows: attained a minimum height of 10 inches (25.4 cm). listed as Hawaii bottomfish MUS and § 665.162 Permits. (b) Live black coral harvested from that are identified as ECS in Table 4 of (a) Any vessel of the United States any precious coral permit area must the Hawaii FEP. fishing for, taking, or retaining have attained either a minimum stem Hawaii bottomfish management unit American Samoa precious coral ECS in diameter of 1 inch (2.54 cm), or a species (Hawaii bottomfish MUS) means any American Samoa precious coral minimum height of 48 inches (122 cm). the following species:
Local name Common name Scientific name
lehi ...... silver jaw jobfish ...... Aphareus rutilans. uku ...... gray jobfish ...... Aprion virescens. hapu‘upu‘u ...... sea bass ...... Hyporthodus quernus. ehu ...... squirrelfish snapper ...... Etelis carbunculus. onaga ...... longtail snapper ...... Etelis coruscans. ‘opakapaka ...... pink snapper ...... Pristipomoides filamentosus. kalekale ...... pink snapper ...... Pristipomoides seiboldii. gindai ...... snapper ...... Pristipomoides zonatus.
* * * * * ■ 26. In § 665.203, revise paragraphs that a permit issued to a person who Main Hawaiian Islands non- (a)(1) and (2), (e)(1), and (j)(1) to read as submitted a timely application under commercial bottomfish permit means follows: paragraph (b)(3) of this section is valid until the permit holder either receives a the permit required by § 665.203(a)(2) to § 665.203 Permits. own or fish from a vessel that is used Mau Zone limited entry permit or until in any non-commercial vessel-based (a) * * * final agency action is taken on the fishing, landing, or transshipment of (1) Northwestern Hawaiian Islands. permit holder’s application. The any Hawaii bottomfish MUS or ECS in The owner of any vessel used to fish for, Ho’omalu Zone and the Mau Zone limited entry systems described in this the MHI Management Subarea. land, or transship Hawaii bottomfish MUS or ECS shoreward of the outer section are subject to abolition, * * * * * boundary of the NWHI subarea must modification, or additional effort have a permit issued under this section, limitation programs. SEAMOUNT GROUNDFISH *** and the permit must be registered for (2) MHI non-commercial. The owner use with that vessel. PIRO will not of a vessel that is used for and any Common name Scientific name register a single vessel for use with a person who participates in non- Armorhead ...... Pentaceros wheeleri. Ho’omalu Zone permit and a Mau Zone commercial, vessel-based fishing, permit at the same time. Mau Zone landing, or transshipment of Hawaii ***** permits issued before June 14, 1999, bottomfish MUS or ECS in the MHI became invalid June 14, 1999, except management subarea is required to
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obtain an MHI non-commercial ■ 27. In § 665.204, revise paragraphs (a), date and time at which the bottomfish bottomfish permit or a State of Hawaii (b), (g), and (k) to read as follows: will be landed. Commercial Marine License. If one or ■ § 665.204 Prohibitions. 29. Revise § 665.206 to read as more persons on a vessel-based follows: bottomfish fishing trip holds an MHI * * * * * non-commercial permit, then the entire (a) Fish for Hawaii bottomfish MUS or § 665.206 Gear restrictions. trip is considered non-commercial, and ECS, or seamount groundfish MUS (a) Bottom trawls and bottom set not commercial. However, if any using gear prohibited under § 665.206. gillnets. Fishing for Hawaii bottomfish commercial fishing occurs during or as (b) Fish for, or retain on board a MUS or ECS, or seamount groundfish a result of a vessel-based fishing trip, vessel, Hawaii bottomfish MUS or ECS MUS with bottom trawls and bottom set then the fishing trip is considered in the Ho’omalu Zone or the Mau Zone gillnets is prohibited. commercial, and not non-commercial. without the appropriate permit (b) Possession of gear. Possession of a Charter boat customers are not subject to registered for use with that vessel issued bottom trawl and bottom set gillnet by the requirements of the section. under § 665.13. any vessel having a permit under * * * * * * * * * * § 665.203 or otherwise established to be (e) * * * (g) Own a vessel or fish from a vessel fishing for Hawaii bottomfish MUS or that is used to fish non-commercially for (1) A qualifying landing for Ho’omalu ECS, or seamount groundfish MUS in any Hawaii bottomfish MUS or ECS in Zone permit renewal is a landing of at the management subareas is prohibited. the MHI management subarea without least 2,500 lb (1,134 kg) of Hawaii (c) Poisons and explosives. The either a MHI non-commercial bottomfish MUS or ECS from the possession or use of any poisons, bottomfish permit or a State of Hawaii Ho’omalu Zone or a landing of at least explosives, or intoxicating substances Commercial Marine License, in 2,500 lb (1,134 kg) of fish from the for the purpose of harvesting Hawaii violation of § 665.2 or § 665.203(a)(2). Ho’omalu Zone, of which at least 50 bottomfish MUS or ECS, or seamount percent by weight was Hawaii * * * * * groundfish MUS is prohibited. bottomfish MUS or ECS. A permit is (k) Fish for or possess any Hawaii ■ 30. Revise § 665.209 to read as eligible for renewal for the next calendar bottomfish MUS or ECS, or seamount follows: year if the vessel covered by the permit groundfish MUS in the Hancock Seamounts Ecosystem Management § 665.209 Fishing moratorium at Hancock made three or more qualifying landings Seamounts. during the current calendar year. Area, in violation of § 665.209. ■ Fishing for, and possession of, Hawaii * * * * * 28. In § 665.205, revise paragraph (b) to read as follows: bottomfish MUS or ECS, or seamount (j) * * * groundfish MUS in the Hancock (1) A Mau Zone permit will be eligible § 665.205 Notification. Seamounts Ecosystem Management for renewal if the vessel for which the * * * * * Area is prohibited until the Regional permit is registered for use made at least (b) The operator of a fishing vessel Administrator determines that the five separate fishing trips with landings that has taken Hawaii bottomfish MUS armorhead stock is rebuilt. of at least 500 lb (227 kg) of Hawaii or ECS in the Ho’omalu Zone must ■ 31. Revise § 665.210 to read as bottomfish MUS or ECS per trip during contact the USCG, by radio or follows: the calendar year. Only one landing of otherwise, at the 14th District, bottomfish MUS or ECS per fishing trip Honolulu, HI; Pacific Area, San § 665.210 Hawaii restricted bottomfish to the Mau Zone will be counted toward Francisco, CA; or 17th District, Juneau, species. the landing requirement. AK, at least 24 hours before landing, Hawaii restricted bottomfish species * * * * * and report the port and the approximate means the following species:
Local name Common name Scientific name
lehi ...... silver jaw jobfish ...... Aphareus rutilans. ehu ...... squirrelfish snapper ...... Etelis carbunculus. onaga ...... longtail snapper ...... Etelis coruscans. ‘opakapaka ...... pink snapper ...... Pristipomoides filamentosus. kalekale ...... pink snapper ...... Pristipomoides sieboldii. gindai ...... snapper ...... Pristipomoides zonatus. hapu‘upu‘u ...... sea bass ...... Hyporthodus quernus.
■ 32. Revise § 665.221 to read as § 665.223 Relation to other laws. ■ 34. In § 665.224, revise paragraphs follows: To ensure consistency between the (a)(1) and (2) and (a)(3)(i) and (ii) to read management regimes of different as follows: § 665.221 Definitions. Federal agencies with shared § 665.224 Permits and fees. As used in §§ 665.220 through management responsibilities of fishery 665.239, Hawaii coral reef ecosystem resources within the Hawaii coral reef (a) * * * component species (Hawaii coral reef ecosystem management area, fishing for (1) Special permit. Any person of the ECS) means those species identified as Hawaii coral reef ECS is not allowed United States fishing for, taking or retaining Hawaii coral reef ECS must ECS in the Hawaii FEP and are not within the boundary of a National have a special permit if they, or a vessel defined as MUS or another ECS in this Wildlife Refuge unless specifically which they operate, is used to fish for subpart. authorized by the USFWS, regardless of whether that refuge was established by any: ■ 33. Revise § 665.223 to read as action of the President or the Secretary (i) Hawaii coral reef ECS in low-use follows: of the Interior. MPAs as defined in § 665.199;
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(ii) Hawaii coral reef ECS in the coral (3) The Hawaii coral reef ECS holder under this subpart who is reef ecosystem management area; or possessed on board the vessel originated established to be fishing for coral reef (iii) Hawaii coral reef ECS in the coral outside the management area and this ECS in the management area is reef ecosystem management area with can be demonstrated through receipts of prohibited. any gear not specifically allowed in this purchase, invoices, fishing logbooks or * * * * * subpart. other documentation. ■ 38. In § 665.228, revise paragraph (a) (2) Transshipment permit. A receiving (b) Fish for, take, or retain any Hawaii to read as follows: vessel must be registered for use with a coral reef ECS: transshipment permit if that vessel is * * * * * § 665.228 Gear identification. used in the Hawaii coral reef ecosystem ■ 36. Revise § 665.226 to read as (a) The vessel number must be affixed management area to land or transship follows: to all fish and crab traps on board the Hawaii coral reef ECS harvested within vessel or deployed in the water by any low-use MPAs. § 665.226 Notifications. vessel or person holding a permit under (3) * * * Any special permit holder subject to (i) Any person issued a permit to fish § 665.13 or § 665.124 or that is the requirements of this subpart must otherwise established to be fishing for under any FEP who incidentally catches contact the appropriate NMFS Hawaii coral reef ECS while fishing for Hawaii coral reef ECS in the enforcement agent in American Samoa, management area. bottomfish MUS or ECS, crustacean Guam, or Hawaii at least 24 hours before * * * * * MUS, western Pacific pelagic MUS, landing any Hawaii coral reef ECS precious corals, or seamount harvested under a special permit, and ■ 39. In § 665.241, add a definition for groundfish; report the port and the approximate date ‘‘Hawaii crustacean ecosystem (ii) Any person fishing for Hawaii and time at which the catch will be component species (Hawaii crustacean coral reef ECS outside of an MPA, who landed. ECS)’’ in alphabetical order and revise does not retain any Hawaii coral reef ■ 37. In § 665.227, revise paragraphs (a) the definition of ‘‘Hawaii crustacean ECS; and introductory text and (b) to read as management unit species (Hawaii * * * * * follows: crustacean MUS)’’ to read as follows: ■ 35. In § 665.225, revise paragraphs (a) § 665.241 Definitions. introductory text, (a)(3), and (b) § 665.227 Allowable gear and gear introductory text to read as follows: restrictions. * * * * * (a) Hawaii coral reef ECS may be Hawaii crustacean ecosystem § 665.225 Prohibitions. taken only with the following allowable component species (Hawaii crustacean * * * * * gear and methods: ECS) means those species identified as (a) Fish for, take, retain, possess or * * * * * ECS in the Hawaii FEP. land any Hawaii coral reef ECS in any (b) Hawaii coral reef ECS may not be * * * * * low-use MPA as defined in § 665.99 taken by means of poisons, explosives, Hawaii crustacean management unit unless: or intoxicating substances. Possession or species (Hawaii crustacean MUS) means * * * * * use of these materials by any permit the following crustaceans:
Local name Common name Scientific name
papa‘i kua loa ...... Kona crab ...... Ranina ranina. deepwater shrimp, nylon shrimp ...... Heterocarpus sp.
* * * * * Hawaii precious coral ecosystem § 665.262 Permits. component species (Hawaii precious ■ 40. In § 665.242, revise paragraph (a) Any vessel of the United States (a)(4) to read as follows: coral ECS) means those species fishing for, taking, or retaining Hawaii identified as ECS in the Hawaii FEP. precious coral MUS or ECS in any § 665.242 Permits. Hawaii precious coral management Hawaiian Archipelago precious coral permit area must have a permit issued (a) * * * unit species (Hawaii precious coral MUS) means the following species: under § 665.13. (4) Harvest of Hawaii crustacean MUS * * * * * or ECS within the Northwestern Common name Scientific name ■ 43. In § 665.263, revise the Hawaiian Islands Marine National introductory text of paragraphs (b) and Monument is subject to the Pink coral ...... Pleurocorallium (c) to read as follows: requirements of 50 CFR part 404. secundum. * * * * * Red coral ...... Hemicorallium § 665.263 Prohibitions. laauense. ■ * * * * * 41. In § 665.261, add a definition for Gold coral ...... Kulamanamana ‘‘Hawaii precious coral ecosystem (b) Fish for, take, or retain any species haumeaae. of Hawaii precious coral MUS or Hawaii component species (Hawaii precious Bamboo coral ...... Acanella sp. coral ECS)’’ in alphabetical order and precious coral ECS in any precious coral Black coral ...... Antipathes griggi, permit area: revise the definition of ‘‘Hawaii Antipathes grandis, precious coral management unit species Myriopathes ulex. * * * * * (Hawaii precious coral MUS)’’ to read as (c) Take and retain, possess, or land follows: * * * * * any live Hemicorallium laauense, Pleurocorallium secundum, Corallium § 665.261 Definitions. ■ 42. In § 665.262, revise paragraph (a) sp., or live black coral from any * * * * * to read as follows: precious coral permit area that is less
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than the minimum height specified in have attained either a minimum stem management unit species (Mariana § 665.265 unless: diameter of 1 inch (2.54 cm), or a bottomfish MUS)’’ to read as follows: * * * * * minimum height of 48 inches (122 cm). § 665.401 Definitions. ■ 44. In § 665.265, revise paragraphs (a) ■ 45. Revise § 665.270 to read as and (b) to read as follows: follows: * * * * * Mariana bottomfish ecosystem § 665.265 Size restrictions. § 665.270 Gold coral harvest moratorium. Fishing for, taking, or retaining any component species (Mariana bottomfish * * * * * ECS) means those species identified as (a) Live Hemicorallium laauense, gold coral MUS or ECS in any precious ECS in the Marianas Archipelago FEP Pleurocorallium secundum, or coral permit area is prohibited through and not defined as Mariana bottomfish Corallium sp. harvested from any June 30, 2023. precious coral permit area must have ■ 46. In § 665.401, add a definition for MUS. attained a minimum height of 10 inches ‘‘Mariana bottomfish ecosystem Mariana bottomfish management unit (25.4 cm). component species (Mariana bottomfish species (Mariana bottomfish MUS) (b) Live black coral harvested from ECS)’’ in alphabetical order and revise means the following fish: any precious coral permit area must the definition of ‘‘Mariana bottomfish
Local name Common name Scientific name
lehi/maroobw ...... red snapper, silvermouth ...... Aphareus rutilans. tarakitu/etam ...... giant trevally, jack ...... Caranx ignobilis. tarakiton attelong, orong ...... black trevally, jack ...... Caranx lugubris. bueli, bwele ...... lunartail grouper ...... Variola louti. buninas agaga’, falaghal moroobw ...... red snapper ...... Etelis carbunculus. abuninas, taighulupegh ...... red snapper ...... Etelis coruscans. mafuti, atigh ...... redgill emperor ...... Lethrinus rubrioperculatus. funai, saas ...... blueline snapper ...... Lutjanus kasmira. buninas, falaghal-maroobw ...... yellowtail snapper ...... Pristipomoides auricilla. buninas, pakapaka, falaghal-maroobw, ...... pink snapper ...... Pristipomoides filamentosus. buninas, falaghal-maroobw ...... yelloweye snapper ...... Pristipomoides flavipinnis...... pink snapper ...... Pristipomoides seiboldii. buninas rayao amariyu, falaghal-maroobw ...... flower snapper ...... Pristipomoides zonatus.
■ 47. In § 665.403, revise paragraph (a) subarea must have a permit issued (e) Use a vessel to fish commercially introductory text to read as follows: under this section, and the permit must for Mariana bottomfish MUS or ECS in be registered for use with that vessel. the CNMI management subarea without § 665.403 Bottomfish fishery area a valid CNMI commercial bottomfish management. * * * * * permit registered for use with that ■ 49. Revise § 665.405 to read as (a) Guam large vessel bottomfish vessel, in violation of § 665.404(a)(2). prohibited area (Area GU–1). A large follows: (f) Falsify or fail to make, keep, vessel of the United States, as defined § 665.405 Prohibitions. maintain, or submit a Federal logbook as in § 665.12, may not be used to fish for required under § 665.14(b) when using a Mariana bottomfish MUS or ECS in the In addition to the general prohibitions specified in § 600.725 of this chapter vessel to engage in commercial fishing Guam large vessel bottomfish prohibited for Mariana bottomfish MUS or ECS in area, defined as the U.S. EEZ waters and § 665.15, it is unlawful for any person to do any of the following: the CNMI management subarea in surrounding Guam that are enclosed by violation of § 665.14(b). (a) Fish for Mariana bottomfish MUS straight lines connecting the following ■ or ECS using gear prohibited under 50. Revise § 665.421 to read as coordinates in the order listed: follows: * * * * * § 665.406. (b) Use a large vessel that does not ■ 48. In § 665.404, revise paragraphs § 665.421 Definitions. have a valid Guam bottomfish permit (a)(1) and (2) to read as follows: As used in §§ 665.420 through registered for use with that vessel to fish 665.439, Mariana coral reef ecosystem § 665.404 Permits. for, land, or transship Mariana component species (Mariana coral reef (a) * * * bottomfish MUS or ECS shoreward of ECS) are those species identified in the (1) Guam large vessel. The owner of the outer boundary of the Guam Marianas Archipelago FEP and are not any large vessel used to fish for, land, management subarea of the bottomfish defined as MUS or another ECS in this or transship Mariana bottomfish MUS or fishery management area in violation of subpart. ECS shoreward of the outer boundary of § 665.404(a). ■ 51. Revise § 665.423 to read as the Guam subarea must have a permit (c) Use a large vessel to fish for follows: issued under this section, and the Mariana bottomfish MUS or ECS within permit must be registered for use with the Guam large vessel bottomfish § 665.423 Relation to other laws. that vessel. prohibited area, as defined in To ensure consistency between the (2) Commonwealth of the Northern § 665.403(a). management regimes of different Mariana Islands (CNMI) commercial. (d) Land or transship, shoreward of Federal agencies with shared The owner of any vessel used to the outer boundary of the Guam management responsibilities of fishery commercially fish for, transship, management subarea of the bottomfish resources within the Mariana coral reef receive, or land Mariana bottomfish fishery management area, Mariana ecosystem management area, fishing for MUS or ECS shoreward of the outer bottomfish MUS or ECS that were Mariana coral reef ECS is not allowed boundary of the CNMI management harvested in violation of § 665.405(c). within the boundary of a National
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Wildlife Refuge unless specifically § 665.426 Notifications. (Mariana precious coral ECS)’’ in authorized by the USFWS, regardless of Any special permit holder subject to alphabetical order and remove the whether that refuge was established by the requirements of this subpart must definition of ‘‘Mariana precious coral action of the President or the Secretary contact the appropriate NMFS management unit species’’ to read as of the Interior. enforcement agent in American Samoa, follows: ■ Guam, or Hawaii at least 24 hours before 52. In § 665.424, revise paragraphs § 665.461 Definitions. (a)(1) and (2) and (a)(3)(i) and (ii) to read landing any Mariana coral reef ECS As used in §§ 665.460 through as follows: harvested under a special permit, and report the port and the approximate date 665.470: Mariana precious coral ecosystem § 665.424 Permits and fees. and time at which the catch will be component species (Mariana precious (a) * * * landed. coral ECS) means those species (1) Special permit. Any person of the ■ 55. In § 665.427, revise paragraphs (a) United States fishing for, taking or identified as ECS in the Marianas introductory text and (b) to read as Archipelago FEP. retaining Mariana coral reef ECS must follows: have a special permit if they, or a vessel * * * * * which they operate, is used to fish for § 665.427 Allowable gear and gear ■ 60. In § 665.462, revise paragraph (a) any: restrictions. to read as follows: (i) Mariana coral reef ecosystem MUS (a) Mariana coral reef ECS may be § 665.462 Permits. ECS in low-use MPAs as defined in taken only with the following allowable § 665.399; gear and methods: (a) Any vessel of the United States fishing for, taking, or retaining Mariana (ii) Mariana coral reef ECS in the coral * * * * * precious coral ECS in any Mariana reef ecosystem management area; or (b) Mariana coral reef ECS may not be Archipelago precious coral permit area (iii) Mariana coral reef ECS in the taken by means of poisons, explosives, must have a permit issued under Mariana coral reef ecosystem or intoxicating substances. Possession or § 665.13. management area with any gear not use of these materials by any permit specifically allowed in this subpart. holder under this subpart who is * * * * * (2) Transshipment permit. A receiving established to be fishing for coral reef ■ 61. In § 665.463, revise paragraphs (a), vessel must be registered for use with a ECS in the management area is (b) introductory text, and (c) transshipment permit if that vessel is prohibited. introductory text to read as follows: used in the Mariana coral reef * * * * * ecosystem management area to land or § 665.463 Prohibitions. ■ transship any Mariana coral reef ECS 56. In § 665.441, add a definition for * * * * * harvested within low-use MPAs. ‘‘Mariana crustacean ecosystem (a) Use any vessel to fish for, take, (3) * * * component species (Mariana crustacean retain, possess or land Mariana precious (i) Any person issued a permit to fish ECS)’’ in alphabetical order and remove coral ECS in any Mariana precious coral under any FEP who incidentally catches the definition of ‘‘Mariana crustacean permit area, unless a permit has been Mariana coral reef ECS while fishing for management unit species’’. issued for that vessel and area as bottomfish MUS or ECS, crustacean The addition reads as follows: specified in § 665.13 and that permit is on board the vessel. ECS, western Pacific pelagic MUS, § 665.441 Definitions. precious coral ECS, or seamount (b) Fish for, take, or retain any species * * * * * of Mariana precious coral ECS in any groundfish MUS. Mariana crustacean ecosystem (ii) Any person fishing for Mariana Mariana precious coral permit area: component species (Mariana crustacean coral reef ECS outside of an MPA, who * * * * * ECS) means those species identified as does not retain any Mariana coral reef (c) Take and retain, possess, or land ECS in the Marianas Archipelago FEP. ECS. any live Hemicorallium laauense, ■ 57. In § 665.442, revise paragraph Pleurocorallium secundum, Corallium * * * * * (a)(2) to read as follows: sp., or live black coral from any ■ 53. In § 665.425, revise paragraphs (a) precious coral permit area that is less § 665.442 Permits. introductory text, (a)(3), and (b) than the minimum height specified in introductory text to read as follows: (a) * * * § 665.465 unless: (2) The owner of any vessel used to § 665.425 Prohibitions. fish for Heterocarpus sp. in Crustacean * * * * * * * * * * Permit Area 5 must have a permit issued ■ 62. In § 665.465, revise paragraphs (a) (a) Fish for, take, retain, possess or for that vessel. and (b) to read as follows: land any Mariana coral reef ECS in any * * * * * § 665.465 Size restrictions. low-use MPA as defined in § 665.12 ■ unless: 58. Revise § 665.443 to read as * * * * * follows: (a) Live Hemicorallium laauense, * * * * * Pleurocorallium secundum, or (3) The Mariana coral reef ECS § 665.443 Prohibitions. Corallium sp. harvested from any possessed on board the vessel originated In addition to the general prohibitions precious coral permit area must have outside the management area, and this specified in § 600.725 of this chapter attained a minimum height of 10 inches can be demonstrated through receipts of and § 665.15, it is unlawful for any (25.4 cm). purchase, invoices, fishing logbooks or person in Crustacean Permit Area 5 to (b) Live black coral harvested from other documentation. fish for, take, or retain Heterocarpus sp. any precious coral permit area must (b) Fish for, take, or retain any without a permit issued under have attained either a minimum stem Mariana coral reef ECS species: § 665.442. diameter of 1 inch (2.54 cm), or a * * * * * ■ 59. In § 665.461, add introductory text minimum height of 48 inches (122 cm). ■ 54. Revise § 665.426 to read as and a definition for ‘‘Mariana precious [FR Doc. 2019–01294 Filed 2–7–19; 8:45 am] follows: coral ecosystem component species BILLING CODE 3510–22–P
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DEPARTMENT OF COMMERCE DATES: Effective 1200 hrs, Alaska local CDQ DFA in the Aleutian Islands time (A.l.t.), February 8, 2019, through subarea will not be harvested. National Oceanic and Atmospheric 2400 hrs, A.l.t., December 31, 2019. Therefore, in accordance with Administration FOR FURTHER INFORMATION CONTACT: § 679.20(a)(5)(iii)(B)(4), NMFS Steve Whitney, 907–586–7228. reallocates 1,900 mt of pollock CDQ 50 CFR Part 679 SUPPLEMENTARY INFORMATION: NMFS DFA from the Aleutian Islands subarea [Docket No. 170817779–8161–02] manages the groundfish fishery in the to the 2019 Bering Sea subarea. The RIN 0648–XG756 BSAI exclusive economic zone 1,900 mt of pollock CDQ DFA is added according to the Fishery Management to the 2019 Bering Sea CDQ DFA. The Fisheries of the Exclusive Economic Plan for Groundfish of the Bering Sea 2019 Bering Sea subarea pollock Zone Off Alaska; Reallocation of and Aleutian Islands Management Area incidental catch allowance remains at Pollock in the Bering Sea and Aleutian (FMP) prepared by the North Pacific 46,520 mt. As a result, the 2019 harvest Islands Fishery Management Council (Council) specifications for pollock in the under authority of the Magnuson- Aleutian Islands subarea included in the AGENCY: National Marine Fisheries Stevens Fishery Conservation and Service (NMFS), National Oceanic and final 2018 and 2019 harvest Management Act. Regulations governing Atmospheric Administration (NOAA), specifications for groundfish in the fishing by U.S. vessels in accordance Commerce. BSAI (83 FR 11826, February 27, 2018) with the FMP appear at subpart H of 50 ACTION: Temporary rule. and as adjusted by an inseason CFR part 600 and 50 CFR part 679. adjustment (83 FR 67144, December 28, SUMMARY: NMFS is reallocating the In the Aleutian Islands subarea, the 2018) are revised as follows: 0 mt to projected unused amounts of the portion of the 2019 pollock total CDQ DFA. Furthermore, pursuant to Community Development Quota (CDQ) allowable catch (TAC) allocated to the § 679.20(a)(5), Table 5 of the final 2018 pollock directed fishing allowances CDQ DFA is 1,900 mt as established by and 2019 harvest specifications for (DFA) from the Aleutian Islands subarea the final 2018 and 2019 harvest groundfish in the BSAI (83 FR 11826, to the Bering Sea subarea directed specifications for groundfish in the February 27, 2018), as adjusted by the fishery. This action is necessary to BSAI (83 FR 8365, February 27, 2018), inseason adjustment (83 FR 67144, and as adjusted by an inseason provide opportunity for harvest of the December 28, 2018), is revised to make adjustment (83 FR 67144, December 28, 2019 total allowable catch of pollock, 2019 pollock allocations consistent with consistent with the goals and objectives 2018). this reallocation. This reallocation of the Fishery Management Plan for As of January 30, 2019, the results in an adjustment to the 2019 Groundfish of the Bering Sea and Administrator, Alaska Region, NMFS, Aleutian Islands Management Area (Regional Administrator) has CDQ pollock allocation established at (BSAI). determined that 1,900 mt of pollock § 679.20(a)(5).
TABLE 5—FINAL 2019 ALLOCATIONS OF POLLOCK TACS TO THE DIRECTED POLLOCK FISHERIES AND TO THE CDQ DIRECTED FISHING ALLOWANCES (DFA) 1 [Amounts are in metric tons]
2019 A season 1 2019 B 2019 season 1 Area and sector Allocations A season DFA SCA harvest limit 2 B season DFA
Bering Sea subarea TAC 1 ...... 1,398,900 n/a n/a n/a CDQ DFA ...... 141,600 63,720 39,648 77,880 ICA 1 ...... 46,520 n/a n/a n/a Total Bering Sea non-CDQ DFA ...... 1,210,780 544,851 339,018 665,929 AFA Inshore ...... 605,390 272,425 169,509 332,964 AFA Catcher/Processors 3 ...... 484,312 217,940 135,607 266,372 Catch by C/Ps ...... 443,145 199,415 n/a 243,730 Catch by CVs 3 ...... 41,167 18,525 n/a 22,642 Unlisted C/P Limit 4 ...... 2,422 1,090 n/a 1,332 AFA Motherships ...... 121,078 54,485 33,902 66,593 Excessive Harvesting Limit 5 ...... 211,886 n/a n/a n/a Excessive Processing Limit 6 ...... 363,234 n/a n/a n/a Aleutian Islands subarea ABC ...... 52,887 n/a n/a n/a Aleutian Islands subarea TAC 1 ...... 17,100 n/a n/a n/a CDQ DFA ...... n/a ICA ...... 2,400 1,200 n/a 1,200 Aleut Corporation ...... 14,700 14,700 n/a Area harvest limit 7 ...... n/a n/a n/a n/a 541 ...... 15,866 n/a n/a n/a 542 ...... 7,933 n/a n/a n/a 543 ...... 2,644 n/a n/a n/a Bogoslof District ICA 8 ...... 75 n/a n/a n/a 1 Pursuant to § 679.20(a)(5)(i)(A), the Bering Sea subarea pollock, after subtracting the CDQ DFA (10 percent) and the ICA (3.7 percent), is al- located as a DFA as follows: Inshore sector—50 percent, catcher/processor sector (C/P)—40 percent, and mothership sector—10 percent. In the Bering Sea subarea, 45 percent of the DFA is allocated to the A season (January 20–June 10) and 55 percent of the DFA is allocated to the B season (June 10–November 1). Pursuant to § 679.20(a)(5)(iii)(B)(2)(i) through (iii), the annual Aleutian Islands pollock TAC, after subtracting first for the CDQ DFA (10 percent) and second for the ICA (2,400 mt), is allocated to the Aleut Corporation for a pollock directed fishery. In the Aleu- tian Islands subarea, the A season is allocated up to 40 percent of the ABC.
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2 In the Bering Sea subarea, pursuant to § 679.20(a)(5)(i)(C), no more than 28 percent of each sector’s annual DFA may be taken from the SCA before noon, April 1. 3 Pursuant to § 679.20(a)(5)(i)(A)(4), 8.5 percent of the DFA allocated to listed C/Ps shall be available for harvest only by eligible catcher ves- sels with a C/P endorsement delivering to listed C/Ps, unless there is a C/P sector cooperative for the year. 4 Pursuant to § 679.20(a)(5)(i)(A)(4)(iii), the AFA unlisted catcher/processors are limited to harvesting not more than 0.5 percent of the catcher/ processors sector’s allocation of pollock. 5 Pursuant to § 679.20(a)(5)(i)(A)(6), NMFS establishes an excessive harvesting share limit equal to 17.5 percent of the sum of the non-CDQ pollock DFAs. 6 Pursuant to § 679.20(a)(5)(i)(A)(7), NMFS establishes an excessive processing share limit equal to 30.0 percent of the sum of the non-CDQ pollock DFAs. 7 Pursuant to § 679.20(a)(5)(iii)(B)(6), NMFS establishes harvest limits for pollock in the A season in Area 541 of no more than 30 percent, in Area 542 of no more than 15 percent, and in Area 543 of no more than 5 percent of the Aleutian Islands pollock ABC. 8 Pursuant to § 679.22(a)(7)(i)(B), the Bogoslof District is closed to directed fishing for pollock. The amounts specified are for incidental catch only and are not apportioned by season or sector. Note: Seasonal or sector apportionments may not total precisely due to rounding.
Classification Islands pollock. Since the pollock The AA also finds good cause to fishery opened January 20, 2019, it is waive the 30-day delay in the effective This action responds to the best important to immediately inform the date of this action under 5 U.S.C. available information recently obtained industry as to the final Bering Sea 553(d)(3). This finding is based upon from the fishery. The Assistant subarea pollock CDQ DFA. Immediate the reasons provided above for waiver of Administrator for Fisheries, NOAA notification is necessary to allow for the prior notice and opportunity for public (AA), finds good cause to waive the orderly conduct and efficient operation comment. requirement to provide prior notice and of this fishery; allow the industry to This action is required by § 679.20 opportunity for public comment plan for the fishing season and avoid and is exempt from review under pursuant to the authority set forth at 5 potential disruption to the fishing fleet Executive Order 12866. U.S.C. 553(b)(B) as such requirement is as well as processors; and provide Authority: 16 U.S.C. 1801 et seq. impracticable and contrary to the public opportunity to harvest increased interest. This requirement is seasonal pollock allocations while value Dated: February 1, 2019. impracticable and contrary to the public is optimum. NMFS was unable to Alan D. Risenhoover, interest as it would prevent NMFS from publish a notice providing time for Director, Office of Sustainable Fisheries, responding to the most recent fisheries public comment because the most National Marine Fisheries Service. data in a timely fashion and would recent, relevant data only became [FR Doc. 2019–01218 Filed 2–7–19; 8:45 am] delay the reallocation of Aleutian available as of January 30, 2019. BILLING CODE 3510–22–P
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Proposed Rules Federal Register Vol. 84, No. 27
Friday, February 8, 2019
This section of the FEDERAL REGISTER Commodity Futures Trading submit comments by any of the contains notices to the public of the proposed Commission (CFTC). following methods: issuance of rules and regulations. The ACTION: Notice of proposed rulemaking. • Federal eRulemaking Portal— purpose of these notices is to give interested ‘‘regulations.gov’’: Go to persons an opportunity to participate in the SUMMARY: The OCC, Board, FDIC, SEC, www.regulations.gov. Enter ‘‘Docket ID rule making prior to the adoption of the final and CFTC (individually, an Agency, and rules. OCC–2018–0029’’ in the Search Box and collectively, the Agencies) are inviting click ‘‘Search.’’ Click on ‘‘Comment comment on a proposal to amend the Now’’ to submit public comments. 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COMMODITY FUTURES TRADING ADDRESSES: Interested parties are Comments received, including COMMISSION encouraged to submit written comments attachments and other supporting jointly to all of the Agencies. materials, are part of the public record 17 CFR Part 75 Commenters are encouraged to use the and subject to public disclosure. Do not RIN 3038–AE72 title ‘‘Proposed Revisions to Restrictions include any information in your on Proprietary Trading and Certain comment or supporting materials that Interests in, and Relationships with, you consider confidential or Hedge Funds and Private Equity Funds’’ inappropriate for public disclosure. SECURITIES AND EXCHANGE to facilitate the organization and You may review comments and other COMMISSION distribution of comments among the related materials that pertain to this 17 CFR Part 255 Agencies. Commenters are also rulemaking action by any of the encouraged to identify the number of following methods: [Release no. BHCA–5; File no. S7–30–18] the specific question for comment to • Viewing Comments Electronically: which they are responding. Comments Go to www.regulations.gov. Enter RIN 3235–AM43 should be directed to: ‘‘Docket ID OCC–2018–0029’’ in the Proposed Revisions to Prohibitions OCC: You may submit comments to Search box and click ‘‘Search.’’ Click on and Restrictions on Proprietary the OCC by any of the methods set forth ‘‘Open Docket Folder’’ on the right side Trading and Certain Interests In, and below. Commenters are encouraged to of the screen. Comments and supporting Relationships With, Hedge Funds and submit comments through the Federal materials can be viewed and filtered by Private Equity Funds eRulemaking Portal or email, if possible. clicking on ‘‘View all documents and Please use the title ‘‘Proposed Revisions comments in this docket’’ and then AGENCY: Office of the Comptroller of the to Prohibitions and Restrictions on using the filtering tools on the left side Currency, Treasury (OCC); Board of Proprietary Trading and Certain of the screen. Governors of the Federal Reserve Interests in, and Relationships with, • Click on the ‘‘Help’’ tab on the System (Board); Federal Deposit Hedge Funds and Private Equity Funds’’ Regulations.gov home page to get Insurance Corporation (FDIC); Securities to facilitate the organization and information on using Regulations.gov. and Exchange Commission (SEC); and distribution of the comments. You may The docket may be viewed after the
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close of the comment period in the same • Email: [email protected]. certain Interests in, and Relationships manner as during the comment period. Include the [RIN 3064–AE88] on the with, Hedge Funds and Private Equity • Viewing Comments Personally: You subject line of the message. Funds,’’ by any of the following may personally inspect comments at the • Public Inspection: All comments methods: OCC, 400 7th Street SW, Washington, received must include the agency name • Agency Website: https:// DC 20219. For security reasons, the OCC and [RIN 3064–AE88] for this comments.cftc.gov. Follow the requires that visitors make an rulemaking. All comments received will instructions on the website for appointment to inspect comments. You be posted without change to http:// submitting comments. may do so by calling (202) 649–6700 or, www.fdic.gov/regulations/laws/federal/, • Mail: Send to Christopher for persons who are deaf or hearing including any personal information Kirkpatrick, Secretary, Commodity impaired, TTY, (202) 649–5597. Upon provided. Paper copies of public Futures Trading Commission, 1155 21st arrival, visitors will be required to comments may be ordered from the Street, NW, Washington, DC 20581. present valid government-issued photo FDIC Public Information Center, 3501 • Hand Delivery/Courier: Same as identification and submit to security North Fairfax Drive, Room E–1002, Mail above. screening in order to inspect comments. Arlington, VA 22226 or by telephone at Please submit your comments using Board: You may submit comments, (877) 275–3342 or (703) 562–2200. only one method. All comments must be identified by [Docket No. R–1643; RIN SEC: You may submit comments by submitted in English, or if not, 7100–AF 33], by any of the following the following methods: accompanied by an English translation. methods: Electronic Comments Comments will be posted as received to • www.cftc.gov and the information you Agency Website: http:// • Use the SEC’s internet comment submit will be publicly available. If, www.federalreserve.gov. Follow the form (http://www.sec.gov/rules/ however, you submit information that instructions for submitting comments at proposed.shtml); or Send an email to ordinarily is exempt from disclosure http://www.federalreserve.gov/ [email protected]. Please include generalinfo/foia/ProposedRegs.cfm. under the Freedom of Information Act, • [File Number S7–30–18] on the subject Email: regs.comments@ line. you may submit a petition for federalreserve.gov. Include docket and confidential treatment of the exempt RIN numbers in the subject line of the Paper Comments information according to the procedures message. • Send paper comments in triplicate set forth in CFTC Regulation 145.9.1. • Fax: (202) 452–3819 or (202) 452– to Brent J. Fields, Secretary, Securities The CFTC reserves the right, but shall 3102. and Exchange Commission, 100 F Street have no obligation, to review, pre- • Mail: Ann E. Misback, Secretary, NE, Washington, DC 20549–1090. screen, filter, redact, refuse or remove Board of Governors of the Federal All submissions should refer to [File any or all of your submission from Reserve System, 20th Street and Number S7–30–18]. This file number www.cftc.gov that it may deem to be Constitution Avenue NW, Washington, should be included on the subject line inappropriate for publication, such as DC 20551. All public comments will be if email is used. To help us process and obscene language. All submissions that made available on the Board’s website at review your comments more efficiently, have been redacted or removed that http://www.federalreserve.gov/ please use only one method. The SEC contain comments on the merits of the generalinfo/foia/ProposedRegs.cfm as will post all comments on the SEC’s rulemaking will be retained in the submitted, unless modified for technical website (http://www.sec.gov/rules/ public comment file and will be reasons or to remove personally proposed.shtml). Comments are also considered as required under the identifiable information at the available for website viewing and Administrative Procedure Act and other commenter’s request. Accordingly, printing in the SEC’s Public Reference applicable laws, and may be accessible comments will not be edited to remove Room, 100 F Street NE, Washington, DC under the Freedom of Information Act. any identifying or contact information. 20549, on official business days FOR FURTHER INFORMATION CONTACT: Public comments may also be viewed between the hours of 10:00 a.m. and OCC: Roman Goldstein, Risk electronically or in paper in Room 3515, 3:00 p.m. All comments received will be Specialist, Treasury and Market Risk 1801 K Street NW (between 18th and posted without change. Persons Policy, 202–649–6360; Tabitha Edgens, 19th Streets NW), between 9:00 a.m. and submitting comments are cautioned that Senior Attorney; Mark O’Horo, 5:00 p.m. on weekdays. the SEC does not redact or edit personal Attorney, Chief Counsel’s Office, (202) FDIC: You may submit comments, identifying information from comment 649–5510; for persons who are deaf or identified by [RIN 3064–AE88] by any of submissions. You should submit only hearing impaired, TTY, (202) 649–5597, the following methods: information that you wish to make Office of the Comptroller of the • Agency Website: https:// available publicly. Currency, 400 7th Street SW, www.FDIC.gov/regulations/laws/ Studies, memoranda, or other Washington, DC 20219. federal/propose.html. Follow substantive items may be added by the Board: Page Conkling, Senior instructions for submitting comments SEC or SEC staff to the comment file Supervisory Financial Analyst, (202) on the Agency website. during this rulemaking. A notification of 912–4647, Kevin Tran, Supervisory • Mail: Robert E. Feldman, Executive the inclusion in the comment file of any Financial Analyst, (202) 452–2309, Amy Secretary, Attention: Comments/Legal materials will be made available on the Lorenc, Financial Analyst, (202) 452– ESS, Federal Deposit Insurance SEC’s website. To ensure direct 5293, David Lynch, Deputy Associate Corporation, 550 17th Street NW, electronic receipt of such notifications, Director, (202) 452–2081, David Washington, DC 20429. sign up through the ‘‘Stay Connected’’ McArthur, Senior Economist, (202) 452– • Hand Delivered/Courier: Comments option at www.sec.gov to receive 2985, Division of Supervision and may be hand-delivered to the guard notifications by email. Regulation; Flora Ahn, Special Counsel, station at the rear of the 550 17th Street CFTC: You may submit comments, (202) 452–2317, Gregory Frischmann, NW, building (located on F Street) on identified by [RIN 3038–AE72] and Senior Counsel, (202) 452–2803, or business days between 7:00 a.m. and ‘‘Proposed Revisions to Prohibitions and Kirin Walsh, Attorney, (202) 452–3058, 5:00 p.m. Restrictions on Proprietary Trading and Legal Division, Board of Governors of
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the Federal Reserve System, 20th and C ownership interest in, sponsoring, or A. Definition of Banking Entity Streets NW, Washington, DC 20551. For having certain relationships with a Prior to the enactment of EGRRCPA, the hearing impaired only, hedge fund or private equity fund, the definition of ‘‘banking entity,’’ for 2 Telecommunication Device for the Deaf subject to certain exemptions. purposes of section 13 of the BHC Act, (TDD), (202) 263–4869. Under the statute, authority for included any insured depository FDIC: Bobby R. Bean, Associate developing and adopting regulations to institution, as defined in the Federal Director, [email protected], Andrew D. implement the prohibitions and Deposit Insurance Act (FDI Act),7 any Carayiannis, Senior Policy Analyst, restrictions of section 13 of the BHC Act company that controls an insured [email protected], or Brian Cox, is shared among the Agencies.3 The depository institution, or that is treated Capital Markets Policy Analyst, brcox@ Agencies adopted final rules as a bank holding company for purposes fdic.gov, Capital Markets Branch, (202) implementing section 13 of the BHC Act of section 8 of the International Banking 898–6888; Michael B. Phillips, Counsel, in December 2013.4 The Agencies Act of 1978 (IBA), and any affiliate or [email protected], Benjamin J. Klein, recently proposed amendments to these subsidiary of such entity (excluding Counsel, [email protected], or Annmarie rules to provide clarity about what from the term insured depository H. Boyd, Counsel, [email protected], activities are prohibited and to improve institution certain insured depository Legal Division, Federal Deposit supervision and implementation of institutions that function solely in a Insurance Corporation, 550 17th Street section 13 of the BHC Act.5 trust or fiduciary capacity, subject to a NW, Washington, DC 20429. variety of conditions).8 SEC: Andrew R. Bernstein, Senior II. Recently Enacted Statutory EGRRCPA modifies the scope of the Special Counsel, Sam Litz, Attorney- Revisions to the Volcker Rule term ‘‘banking entity’’ to exclude certain Adviser, Aaron Washington, Special community banks and their affiliates. The Economic Growth, Regulatory Counsel, Elizabeth Sandoe, Senior Therefore, an insured depository Relief, and Consumer Protection Act Special Counsel, Carol McGee, Assistant institution and its affiliates generally are (EGRRCPA), enacted on May 24, 2018, Director, or Josephine J. Tao, Assistant not ‘‘banking entities’’ if each affiliated Director, at (202) 551–5777, Office of amended section 13 of the BHC Act by insured depository institution meets the Derivatives Policy and Trading modifying the definition of ‘‘banking statutory exclusion.9 However, Practices, Division of Trading and entity,’’ to exclude certain small firms EGRRCPA did not amend the definition Markets, and Nicholas Cordell, Senior from section 13’s restrictions and by of ‘‘banking entity’’ as it relates to a Counsel, Matthew Cook, Senior permitting a banking entity to share a company that is treated as a bank Counsel, Aaron Gilbride, Branch Chief, name with a hedge fund or private holding company for purposes of Brian McLaughlin Johnson, Assistant equity fund that it organizes and offers section 8 of the IBA. Therefore, the 6 Director, and Sara Cortes, Assistant under certain circumstances. statutory exclusion does not apply to a Director, at (202) 551–6787 or IArules@ The Agencies are proposing to amend foreign banking organization with a U.S. sec.gov, Division of Investment the regulations implementing section 13 branch or agency, which continues to be Management, U.S. Securities and of the BHC Act in a manner consistent subject to the prohibitions in section 13 Exchange Commission, 100 F Street NE, with the statutory amendments made by of the BHC Act. Washington, DC 20549. EGRRCPA. Pursuant to Section 203 of EGRRCPA, CFTC: Cantrell Dumas, Special the term ‘‘insured depository Counsel, (202) 418–5043, cdumas@ 2 See 12 U.S.C. 1851. institution’’ does not include an cftc.gov; Jeffrey Hasterok, Data and Risk 3 See 12 U.S.C. 1851(b)(2). Under section institution that does not have, and is not Analyst, (646) 746–9736, jhasterok@ 13(b)(2)(B) of the BHC Act, rules implementing controlled by a company that has: (i) cftc.gov, Division of Swap Dealer and section 13’s prohibitions and restrictions must be More than $10 billion in total Intermediary Oversight; Mark Fajfar, issued by: (i) The appropriate Federal banking agencies (i.e., the Board, the OCC, and the FDIC), consolidated assets; and (ii) total trading Assistant General Counsel, (202) 418– jointly, with respect to insured depository assets and trading liabilities, as reported 6636, [email protected], Office of the institutions; (ii) the Board, with respect to any on the most recent applicable regulatory General Counsel; Stephen Kane, company that controls an insured depository filing filed by the institution, that are Research Economist, (202) 418–5911, institution, or that is treated as a bank holding company for purposes of section 8 of the more than 5 percent of total [email protected], Office of the Chief International Banking Act, any nonbank financial consolidated assets. Consistent with the Economist; Commodity Futures Trading company supervised by the Board, and any Commission, Three Lafayette Centre, subsidiary of any of the foregoing (other than a 7 Section 3(c)(2) of the FDI Act defines an insured 1155 21st Street NW, Washington, DC subsidiary for which an appropriate Federal depository institution to include any bank or 20581. banking agency, the SEC, or the CFTC is the savings association the deposits of which are primary financial regulatory agency); (iii) the CFTC insured by the FDIC under the FDI Act. 12 U.S.C. SUPPLEMENTARY INFORMATION: with respect to any entity for which it is the 1813(c)(2). primary financial regulatory agency, as defined in 8 12 U.S.C. 1813(c)(2), 1851(h)(1). I. Background section 2 of the Dodd-Frank Act; and (iv) the SEC 9 Economic Growth, Regulatory Relief, and with respect to any entity for which it is the Consumer Protection Act, Public Law 115–174, Section 13 of the Bank Holding primary financial regulatory agency, as defined in 1 sections 203, 204 (May 24, 2018). Section 203 Company Act of 1956 (‘‘BHC Act’’), section 2 of the Dodd-Frank Act. See id. amended section 13(h)(1)(B) of the BHC Act to also known as the Volcker Rule, 4 See ‘‘Prohibitions and Restrictions on narrow the scope of the term ‘‘banking entity’’ by generally prohibits any banking entity Proprietary Trading and Certain Interests in, and excluding certain institutions from the term from engaging in proprietary trading or Relationships with, Hedge Funds and Private ‘‘insured depository institution’’ exclusively for the Equity Funds; Final Rule,’’ 79 FR 5535 (Jan. 31, purposes of section 13. Insured banks and savings from acquiring or retaining an 2014) (the ‘‘2013 final rule’’). associations that qualify for this exclusion for the 5 See ‘‘Proposed Revisions to Prohibitions and purposes of section 13 of the BHC Act remain 1 12 U.S.C. 1851. The Dodd-Frank Wall Street Restrictions on Proprietary Trading and Certain insured depository institutions under section 3(c)(2) Reform and Consumer Protection Act (the Dodd- Interests in, and Relationships With, Hedge Funds of the FDI Act. Additionally, an institution that Frank Act) was enacted on July 21, 2010. Dodd- and Private Equity Funds,’’ 83 FR 33432 (July 17, meets the criteria to be excluded from the definition Frank Wall Street Reform and Consumer Protection 2018). of insured depository institution under EGRRCPA Act, Public Law 111–203, 124 Stat. 1376 (2010). 6 See Economic Growth, Regulatory Relief, and may still be a banking entity by virtue of its Section 619 of the Dodd-Frank Act added a new Consumer Protection Act, Pub. L. 115–174, sections affiliation with another insured depository section 13 to the Bank Holding Company Act of 203, 204 (May 24, 2018). These provisions were institution or a company that is treated as a bank 1956. effective upon EGRRCPA’s enactment. holding company under section 8 of the IBA.
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statute, the Agencies are proposing to institution, or a company that is treated III. Request for Comment modify the definition of ‘‘insured as a bank holding company for purposes The Agencies invite comment from all __ 12 depository institution’’ in § .2(r) of the of section 8 of the IBA; (2) the members of the public regarding all 2013 final rule in order to conform that investment adviser does not share the aspects of the proposal. This request for definition with Section 203 of same name or a variation of the same comment is limited to this proposal. EGRRCPA. Under the proposal, an name with any such entities; and (3) the The Agencies will carefully consider all insured depository institution would name does not contain the word ‘‘bank.’’ comments that relate to the proposal. In need to satisfy two conditions to qualify particular, the Agencies invite comment for the exclusion from the definition of Consistent with the statute, the Agencies are proposing to modify the on the following questions: ‘‘banking entity.’’ First, the insured __ 2013 final rule’s name-sharing Question [ ]. Does the proposal depository institution, and every entity provide sufficient clarity for firms to that controls it, must have total restriction to conform that restriction with Section 204 of EGRRCPA. Under determine whether they qualify for the consolidated assets equal to or less than exclusion from the ‘‘banking entity’’ the proposal, a hedge fund or private $10 billion. Second, total consolidated definition? If not, please explain why. trading assets and liabilities of the equity fund sponsored by a banking Question [__]. Does the proposal insured depository institution, and entity would be permitted to share the provide sufficient clarity for firms to every entity that controls it, must be same name or a variation of the same determine whether a hedge fund or equal to or less than five percent of its name with a banking entity that is an private equity fund sponsored by a total consolidated assets. investment adviser to the fund, subject banking entity is permitted to share the As described above, the exclusion to the conditions specified in the same name or a variation of the same would be available only if both the statute.13 Specifically, these conditions name with an affiliated banking entity? threshold regarding total consolidated would require that the investment If not, please explain why. assets and the threshold regarding total adviser is not, and does not share the consolidated trading assets and same name (or a variation of the same IV. Administrative Law Matters liabilities are not exceeded. The name) as, an insured depository A. Paperwork Reduction Act Agencies believe that insured institution, a company that controls an Certain provisions of the proposal depository institutions that qualify for insured depository institution, or a the exclusion in this proposal regularly contain ‘‘collection of information’’ company that is treated as a bank requirements within the meaning of the monitor their total consolidated assets holding company for purposes of and total trading assets and liabilities Paperwork Reduction Act (PRA) of 1995 section 8 of the International Banking (44 U.S.C. 3501–3521). In accordance for other purposes. Therefore, the Act of 1978.14 The third condition—that Agencies do not believe that the test with the requirements of the PRA, the the name does not contain the word Agencies may not conduct or sponsor, described above would impose any new ‘‘bank’’—was included in the name- burden on banking institutions. Rather, and a respondent is not required to sharing restriction by Section 204 of the Agencies would expect to use respond to, an information collection EGRRCPA but already is a condition available information, including unless it displays a currently valid under the 2013 final rule. Accordingly, information reported on regulatory Office of Management and Budget reporting forms available to each the Agencies believe no additional (OMB) control number. The Agencies Agency, with respect to whether modifications to the 2013 final rule are reviewed and determined that the financial institutions qualify for the necessary to reflect this condition. proposal would not change the current exclusion described above. The proposal would also conform the reporting, recordkeeping or third-party 2013 final rule to the statutory change disclosure requirements associated with B. Modification of Name-Sharing to the definition of ‘‘sponsor.’’ 15 section 13 of the BHC Act under the Restrictions of the Volcker Rule Pursuant to Section 204 of EGRRCPA, PRA. However, the proposal would Prior to enactment of EGRRCPA, the definition of the term ‘‘sponsor’’ reduce the number of respondents for section 13 provided that a banking includes a banking entity that shares the the Board (including OCC-, FDIC-, entity (or an affiliate of the banking same name or a variation of the same SEC-, and CFTC-supervised institutions under a holding company), FDIC (with entity), including an investment adviser, name with a fund, for corporate, respect to supervised institutions not that organized and offered a hedge fund marketing, promotional, or other under a holding company), and OCC or private equity fund could not share purposes, ‘‘except as permitted under the same name or a variation of the (supervised institutions not under a subsection (d)(1)(G)(vi)’’—that is, except holding company), which will be same name with the fund (the name- as permitted pursuant to the name- sharing restriction).10 Section 204 of addressed as a nonmaterial change to sharing restriction as amended by EGRRCPA amended section 13 of the OMB. EGRRCPA. Consistent with the statute, BHC Act to permit a hedge fund or B. Solicitation of Comments on the Use 11 the Agencies are proposing to modify private equity fund organized and __ of Plain Language offered by a banking entity to share the the definition of ‘‘sponsor’’ in § same name or a variation of the same .10(d)(9) of the 2013 final rule in order Section 722 of the Gramm-Leach 16 name as a banking entity that is an to conform that definition with Section Bliley Act requires the OCC, Board, investment adviser to the hedge fund or 204 of EGRRCPA. and FDIC (Federal banking agencies) to private equity fund, if: (1) The use plain language in all proposed and investment adviser is not an insured 12 12 U.S.C. 3106. final rules published after January 1, depository institution, a company that 13 Economic Growth, Regulatory Relief, and 2000. The Federal banking agencies Consumer Protection Act, Public Law 115–174, controls an insured depository invite comments on whether there are section 204 (May 24, 2018). additional steps the Federal banking 14 12 U.S.C. 1851(d)(1)(G)(vi)(I); 12 U.S.C. 10 12 U.S.C. 1851(d)(1)(G)(vi) (2017). 1851(d)(1)(G)(vi)(II). agencies could take to make the 11 12 U.S.C. 1851(h)(2). See also 12 CFR 44.10(b); 15 Economic Growth, Regulatory Relief, and 12 CFR 248.10(b); 12 CFR 351.10(b); 17 CFR Consumer Protection Act, Public Law 115–174, 16 Public Law 106–102, section 722, 113 Stat. 255.10(b); 17 CFR 75.10(b). section 204 (May 24, 2018). 1338, 1471, 12 U.S.C. 4809 (1999).
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proposed rule easier to understand. For initial regulatory flexibility analysis 2. Statement of Objectives and Legal example: must contain (1) a description of the Basis • Have the Agencies presented the reasons why action by the agency is As discussed above, the Agencies’ material in an organized manner that being considered; (2) a succinct objective in proposing amendments to meets your needs? If not, how could this statement of the objectives of, and legal the regulations implementing section 13 material be better organized? basis for, the proposed rule; (3) a of the BHC Act is to conform the • Are the requirements in the description of, and, where feasible, an regulations to changes recently proposal clearly stated? If not, how estimate of the number of small entities implemented by sections 203 and 204 of could the proposal be more clearly to which the proposed rule will apply; EGRRCPA. The Agencies are explicitly stated? (4) a description of the projected authorized under section 13(b)(2) of the • Does the proposal contain language reporting, recordkeeping, and other BHC Act to adopt rules implementing or jargon that is not clear? If so, which compliance requirements of the section 13.20 language requires clarification? proposed rule, including an estimate of • Would a different format (grouping the classes of small entities that will be 3. Description of Small Entities to and order of sections, use of headings, subject to the requirement and the type Which the Regulation Applies paragraphing) make the proposal easier of professional skills necessary for The Agencies’ proposal would apply to understand? If so, what changes to preparation of the report or record; (5) to state member banks, bank holding the format would make the proposal an identification, to the extent companies, and savings and loan easier to understand? practicable, of all relevant Federal rules holding companies supervised by the • What else could the Agencies do to which may duplicate, overlap with, or Board that are small entities for make the regulation easier to conflict with the proposed rule; and (6) purposes of the RFA.21 understand? a description of any significant 4. Projected Reporting, Recordkeeping, C. Initial Regulatory Flexibility Act alternatives to the proposed rule which and Other Compliance Requirements Analysis accomplish its stated objectives. The Board has considered the As discussed previously in the The Regulatory Flexibility Act potential impact of the proposed rule on Paperwork Reduction Act section, the (RFA) 17 imposes certain requirements small entities in accordance with the proposal would not change the current on agencies regarding any potential RFA. Based on its analysis and for the reporting, recordkeeping or third-party significant economic impact that a reasons stated below, the Board believes disclosure requirements associated with proposal may have on a substantial that this proposed rule will not have a section 13 of the BHC Act under the number of small entities. The U.S. Small significant economic impact on a PRA. However, the proposal would Business Administration (SBA) substantial number of small entities. exempt small entities supervised by the establishes size standards that define Nevertheless, the Board is publishing Board from the reporting, which entities are small businesses for and inviting comment on this initial recordkeeping, and all other purposes of the RFA.18 Except as regulatory flexibility analysis. A final requirements associated with section 13 otherwise specified below, the size regulatory flexibility analysis will be of the BHC Act. standard to be considered a small conducted after comments received business for banking entities subject to during the public comment period have 5. Identification of Duplicative, the proposal is $550 million or less in Overlapping, or Conflicting Federal 19 been considered. consolidated assets. The Agencies are The Board welcomes comment on all Regulations separately publishing initial regulatory aspects of its analysis. In particular, the The Board has not identified any flexibility analyses for the proposals as Board requests that commenters federal statutes or regulations that set forth in this proposal. describe the nature of any impact on would duplicate, overlap, or conflict Board small entities and provide empirical with the proposed revisions. data to illustrate and support the extent The Board is providing an initial 6. Discussion of Significant Alternatives of the impact. regulatory flexibility analysis with The Board believes the proposed respect to this proposed rule. The RFA 1. Reasons for the Proposal amendments will not have a significant requires an agency to consider whether As discussed in the SUPPLEMENTARY economic impact on small banking the rules it proposes will have a INFORMATION, the Agencies are proposing entities supervised by the Board and significant economic impact on a to revise the regulations implementing therefore believes that there are no substantial number of small entities. In section 13 of the BHC Act in significant alternatives to the proposal connection with a proposed rule, the conformance with the amendments to that would reduce the economic impact RFA requires an agency to prepare an section 13 implemented by EGRRCPA. on small banking entities supervised by Initial Regulatory Flexibility Analysis The proposal would therefore exclude the Board. describing the impact of the rule on from the definition of ‘‘banking entity’’ OCC small entities or to certify that the certain firms that have total proposed rule would not have a consolidated assets equal to $10 billion The RFA requires an agency, in significant economic impact on a or less and total trading assets and connection with a proposed rule, to substantial number of small entities. An liabilities equal to five percent or less of prepare an Initial Regulatory Flexibility total consolidated assets. Qualifying 17 5 U.S.C. 601 et seq. institutions eligible for this exclusion 20 12 U.S.C. 1851(b)(2). 18 U.S. SBA, Table of Small Business Size 21 Under regulations issued by the Small Business Standards Matched to North American Industry would consist of state member banks, Administration, a small entity includes a depository Classification System Codes, available at https:// bank holding companies, and savings institution, bank holding company, or savings and www.sba.gov/sites/default/files/files/Size_ and loan holding companies that meet loan holding company with total assets of $550 Standards_Table.pdf. the eligibility criteria for the exclusion. million or less and trust companies with total assets 19 See id. Pursuant to SBA regulations, the asset of $38.5 million or less. As of June 30, 2018, there size of a concern includes the assets of the concern Such institutions would be exempt from were approximately 3,053 small bank holding whose size is at issue and all of its domestic and the prohibitions and restrictions under companies, 184 small savings and loan holding foreign affiliates. 13 CFR 121.103(6). section 13 of the BHC Act. companies, and 541 small state member banks.
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Analysis describing the impact of the significant economic impact on a affiliated investment adviser to the proposed rule on small entities, or to substantial number of small entities. hedge fund or private equity fund, with certify that the proposed rule would not some restrictions. By permitting a FDIC have a significant economic impact on covered fund to share the name of a a substantial number of small entities. The RFA generally requires that, in banking entity, or variation thereof, the For purposes of the RFA, the SBA connection with a proposed rulemaking, fund can utilize the franchise value of includes as small entities those with an agency prepare and make available the banking entity to more effectively $550 million or less in assets for for public comment an initial regulatory market the fund to the bank’s current commercial banks and savings flexibility analysis describing the account holders or the public. The size institutions, and $38.5 million or less in impact of the rulemaking on small of this potential benefit is difficult to assets for trust companies. entities.23 A regulatory flexibility accurately estimate with available data The OCC currently supervises analysis is not required, however, if the because it depends on the business approximately 886 small entities.22 agency certifies that the rule would not model of individual banks and funds, Pursuant to section 203 of EGRRCPA, have a significant economic impact on the propensity of those funds to OCC-supervised institutions are not a substantial number of small entities. advertise to particular groups, and the ‘‘banking entities’’ within the scope of The SBA has defined ‘‘small entities’’ to decisions of customers, among other Section 13 of the BHCA if the OCC- include banking organizations with total things. However, since the proposed supervised institution, and any assets less than or equal to $550 rule would conform FDIC regulations company that controls the OCC- million.24 The FDIC supervises 3,575 with the statutory language enacted by supervised institution, meet the depository institutions,25 of which EGRRCPA, this component of the statutory exclusion. The EGRRCPA 2,763 are defined as small banking proposed rule would have no direct statutory provisions took effect upon entities by the terms of the RFA.26 Of effect on small, FDIC-supervised enactment. Because the statutory the 2,763 small, FDIC-supervised institutions. provisions are already in effect, and this institutions, all report having total Finally, the proposed rule would proposal would only revise the OCC’s consolidated assets less than or equal to introduce conforming changes that existing regulations to conform to this $10 billion, and total trading assets and would reduce recordkeeping, reporting, statutory change, this proposal would liabilities less than or equal to five and disclosure costs for affected FDIC- not affect a substantial number of small percent of total consolidated assets, and supervised institutions. EGRRCPA states entities. Section 204 of EGRRCPA are therefore, covered by the proposed that certain institutions with total generally does not apply to OCC- rule. consolidated assets less than or equal to supervised institutions. Although the proposed rule would $10 billion, and total trading assets and The OCC’s threshold for a significant conform the FDIC’s regulation to the liabilities less than or equal to five effect is whether cost increases statute in a way that is relevant to 2,763 percent of total consolidated assets, are associated with a proposed rule are small, FDIC-supervised institutions, the excluded from restrictions on engaging greater than or equal to either 5 percent effects of the proposed rule itself would in proprietary trading activity. The of a small bank’s total annual salaries not have a significant economic impact. proposed rule would amend the FDIC’s and benefits or 2.5 percent of a small The statutory changes established by regulations to conform to this exclusion bank’s total non-interest expense. Even EGRRCPA enabled certain institutions established in EGRRCPA. In so doing, if the proposal affected a substantial to engage in proprietary trading,27 the proposed rule would make number of small banks, the OCC does thereby potentially increasing the conforming changes to reduce the not believe that the proposal would volume of such activity for affected recordkeeping and reporting have a significant economic impact on banking entities. The proposed rule requirements for small, FDIC-supervised small banks because OCC-supervised would amend the FDIC’s regulations to institutions that were excluded from institutions that qualify for the conform to this exemption established proprietary trading restriction by exclusion under section 203 of the in EGRRCPA. Therefore, this component EGRRCPA. Although the vast majority EGRRCPA should not have compliance of the rule would have no direct effect of small, FDIC-supervised institutions costs associated with 12 CFR part 44. on small, FDIC-supervised institutions. are not currently required to comply OCC-supervised institutions can As previously stated, EGRRCPA with the recordkeeping, reporting, or determine their eligibility for the permits a covered fund organized and disclosure requirements associated with exclusion at the national bank level and offered by a banking entity to share the proprietary trading, the proposed rule federal savings association level on the same name, or a variation of the same would introduce conforming changes basis of information they are separately name, as a banking entity that is an that would exclude some small, FDIC- required to file in their Consolidated supervised institutions. Of these newly Reports of Condition and Income. 23 5 U.S.C. 601 et seq. excluded institutions, the proposed rule For these reasons, the OCC certifies 24 The SBA defines a small banking organization that the proposal would not have a as having $550 million or less in assets, where ‘‘a would conform the Section 203 of financial institution’s assets are determined by EGRRCPA, which reduced averaging the assets reported on its four quarterly 22 The number of small entities supervised by the recordkeeping, reporting, or disclosure financial statements for the preceding year.’’ 13 CFR OCC is determined using the SBA’s size thresholds requirements by up to 8 hours per 121.201 n.8 (2018). ‘‘SBA counts the receipts, for commercial banks and savings institutions, and employees, or other measure of size of the concern institution, or approximately $514.40 trust companies, which are $550 million and $38.5 whose size is at issue and all of its domestic and per year.28 29 The estimated reduction in million, respectively. Consistent with the General foreign affiliates. . . .’’ 13 CFR 121.103(a)(6) (2018). Principles of Affiliation 13 CFR 121.103(a), the OCC Following these regulations, the FDIC uses a 28 counts the assets of affiliated financial institutions 8 hours * $64.30 per hour = $514.40. covered entity’s affiliated and acquired assets, when determining if they should classify an OCC- 29 The estimated reduction in costs is calculated supervised institution as a small entity. The OCC averaged over the preceding four quarters, to by multiplying 8 hours by an estimated total hourly used December 31, 2017, to determine size because determine whether the covered entity is ‘‘small’’ for compensation rate of $64.30 per hour. According to a ‘‘financial institution’s assets are determined by the purposes of RFA. the May 2017 National Industry-Specific averaging the assets reported on its four quarterly 25 FDIC-supervised institutions are set forth in 12 Occupational Employment and Wage Estimates for financial statements for the preceding year.’’ See U.S.C. 1813(q)(2). the Depository Credit Intermediation sector the 75th footnote 8 of the U.S. Small Business 26 Call Report: June 30, 2018. percentile wages for a compliance officer is $40.55 Administration’s Table of Size Standards. 27 12 CFR 351.3(a). Continued
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recordkeeping, reporting, or disclosure investment advisers,31 broker-dealers 32 would not, if adopted, have a significant costs per institution represents less than security-based swap dealers, or major economic impact on a substantial 0.01 percent of non-interest expenses, security-based swap participants that number of small entities for which the on average, for small, FDIC-supervised are small entities for purposes of the CFTC is the primary financial regulatory institution.30 Thus, the FDIC believes RFA.33 For this reason, the SEC believes agency. the proposed rule would not have a that the proposed amendments to the As discussed in this SUPPLEMENTARY significant economic impact on small, 2013 final rule would not, if adopted, INFORMATION, the Agencies are proposing FDIC-supervised institutions. have a significant economic impact on to revise the 2013 final rule in order to For the reasons described above and a substantial number of small entities. be consistent with statutory under section 605(b) of the RFA, the The SEC encourages written amendments made by EGRRCPA to FDIC certifies that the proposed rule comments regarding this certification. section 13 of the BHC Act. The statutory would not have a significant economic Specifically, the SEC solicits comment amendments (a) modified the scope of impact on a substantial number of small as to whether the proposed amendments the term ‘‘banking entity’’ to exclude entities. could have an impact on small entities certain community banks and their that has not been considered. affiliates and (b) permitted any banking The FDIC invites comments on all Commenters should describe the nature entity to share a name with a hedge aspects of the supporting information of any impact on small entities and fund or private equity fund that it provided in this RFA section. In provide empirical data to support the organizes and offers under certain particular, would this rule have any extent of such impact. circumstances. significant effects on small entities that The proposed revisions would the FDIC has not identified? CFTC generally apply to banking entities, SEC Pursuant to 5 U.S.C. 605(b), the CFTC including certain CFTC-registered hereby certifies that the proposed entities. These entities include bank- Pursuant to 5 U.S.C. 605(b), the SEC amendments to the 2013 final rule affiliated CFTC-registered swap dealers, hereby certifies that the proposed futures commission merchants, amendments to the 2013 final rule 31 For the purposes of an SEC rulemaking in commodity trading advisors and would not, if adopted, have a significant connection with the RFA, an investment adviser commodity pool operators.34 The CFTC economic impact on a substantial generally is a small entity if it: (1) Has assets under management having a total value of less than $25 has previously determined that swap number of small entities. million; (2) did not have total assets of $5 million dealers, futures commission merchants As discussed in the SUPPLEMENTARY or more on the last day of the most recent fiscal and commodity pool operators are not INFORMATION, the Agencies are proposing year; and (3) does not control, is not controlled by, small entities for purposes of the RFA and is not under common control with another to revise the 2013 final rule in order to investment adviser that has assets under and, therefore, the requirements of the be consistent with statutory management of $25 million or more, or any person RFA do not apply to those entities.35 As amendments made by EGRRCPA to (other than a natural person) that had total assets for commodity trading advisors, the section 13 of the BHC Act. The statutory of $5 million or more on the last day of its most CFTC has found it appropriate to recent fiscal year. See 17 CFR 275.0–7. amendments (a) modified the scope of 32 For the purposes of an SEC rulemaking in consider whether such registrants the term ‘‘banking entity’’ to exclude connection with the RFA, a broker-dealer will be should be deemed small entities for certain community banks and their deemed a small entity if it: (1) Had total capital (net purposes of the RFA on a case-by-case affiliates and (b) permitted any banking worth plus subordinated liabilities) of less than basis, in the context of the particular $500,000 on the date in the prior fiscal year as of 36 entity to share a name with a hedge which its audited financial statements were regulation at issue. fund or private equity fund that it prepared pursuant to 17 CFR 240.17a-5(d), or, if not In the context of the proposed organizes and offers under certain required to file such statements, had total capital revisions to the 2013 final rule, the circumstances. (net worth plus subordinated liabilities) of less than CFTC believes it is unlikely that a $500,000 on the last day of the preceding fiscal year substantial number of the commodity The proposed revisions would (or in the time that it has been in business, if generally apply to banking entities, shorter); and (2) is not affiliated with any person trading advisors that are potentially including certain SEC-registered (other than a natural person) that is not a small affected are small entities for purposes business or small organization. See 17 CFR 240.0– entities. These entities include bank- of the RFA. In this regard, the CFTC 10(c). Under the standards adopted by the SBA, notes that only commodity trading affiliated SEC-registered broker-dealers, small entities also include entities engaged in investment advisers, security-based financial investments and related activities with advisors that are registered with the swap dealers, and major security-based $38.5 million or less in annual receipts. See 13 CFR CFTC are covered by the 2013 final rule, 121.201 (Subsector 523). swap participants. Based on information and generally those that are registered 33 Based on SEC analysis of Form ADV data, the have larger businesses. Similarly, the in filings submitted by these entities, SEC preliminarily believes that there are not a the SEC preliminarily believes that there substantial number of registered investment 34 are no banking entity registered advisers affected by the proposed amendments that The proposed revisions may also apply to other would qualify as small entities under RFA. Based types of CFTC registrants that are banking entities, on SEC analysis of broker-dealer FOCUS filings and such as introducing brokers, but the CFTC believes per hour. The wage information reported by the NIC relationship data, the SEC preliminarily it is unlikely that such other registrants will have BLS in the Specific Occupational Employment and believes that there are no SEC-registered broker- significant activities that would implicate the Wage Estimates does not include health benefits dealers affected by the proposed amendments that proposed revisions. See 79 FR 5808, 5813 (Jan. 31, and other non-monetary benefits. According to the would qualify as small entities under RFA. With 2014) (CFTC version of 2013 final rule). March 2018 Employer Cost of Employee respect to security-based swap dealers and major 35 See Policy Statement and Establishment of Compensation data compensation rates for health security-based swap participants, based on feedback Definitions of ‘‘Small Entities’’ for Purposes of the and other benefits are 35.5 percent of total from market participants and information about the Regulatory Flexibility Act, 47 FR 18618 (Apr. 30, compensation. The wage is also inflation adjusted security-based swap markets, the Commission 1982) (futures commission merchants and according to the BLS data on the Consumer Price believes that the types of entities that would engage commodity pool operators); Registration of Swap Index for Urban Consumers (CPI–U) so that it is in more than a de minimis amount of dealing Dealers and Major Swap Participants, 77 FR 2613, contemporaneous with the non-wage compensation activity involving security-based swaps—which 2620 (Jan. 19, 2012) (swap dealers and major swap statistic. The inflation rate was 2.28 percent generally would be large financial institutions— participants). between May 2017 and June 2018. Therefore, the would not be ‘‘small entities’’ for purposes of the 36 See Policy Statement and Establishment of adjusted average wage for a compliance officer is RFA. See Regulation SBSR—Reporting and Definitions of ‘‘Small Entities’’ for Purposes of the $64.30 per hour. Dissemination of Security-Based Swap Information, Regulatory Flexibility Act, 47 FR 18618, 18620 30 Call Report, June 30, 2018. 81 FR 53546, 53553 (Aug. 12, 2016). (Apr. 30, 1982).
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2013 final rule applies to only those of the rule or delay its effective date.38 the definition of ‘‘insured depository commodity trading advisors that are Because delaying the effective date of institution’’ in § lll.2(r) of the 2013 affiliated with banks, which the CFTC the rule is not required and would serve final rule to exclude an institution so expects are larger businesses. The CFTC no purpose, the Agencies propose to long as it, and every company that requests that commenters address in make the threshold increase effective on controls it, has both (1) $10 billion or particular whether any of these the first day after publication of the final less in total consolidated assets and (2) commodity trading advisors, or other rule in the Federal Register. The total consolidated trading assets and CFTC registrants covered by the Agencies invite any comments that liabilities that are 5 percent or less of proposed revisions to the 2013 final would inform the Agencies’ total consolidated assets. The proposal rule, are small entities for purposes of consideration of RCDRIA. would also amend the 2013 final rule to reflect the changes made by Section 204 the RFA. E. OCC Unfunded Mandates Reform Act of EGRRCPA. That provision modified Because the CFTC believes that there Determination are not a substantial number of section 13 of the BHC Act to permit, in registered, banking entity-affiliated The OCC analyzed the proposed rule certain circumstances, bank-affiliated commodity trading advisors that are under the factors set forth in the investment advisers to share their name small entities for purposes of the RFA, Unfunded Mandates Reform Act of 1995 with the hedge funds or private equity and the other CFTC registrants that may (2 U.S.C. 1532). Under this analysis, the funds they organize and offer. be affected by the proposed revisions OCC considered whether the proposed The amendments to the 2013 final have been determined not to be small rule includes a federal mandate that rule would reflect the statutory entities, the CFTC believes that the may result in the expenditure by state, provisions of EGRRCPA that are already proposed revisions to the 2013 final rule local, and Tribal governments, in the in effect, and we preliminarily believe would not, if adopted, have a significant aggregate, or by the private sector, of that market participants are already economic impact on a substantial $100 million or more in any one year responding to the statutory changes. number of small entities for which the (adjusted annually for inflation). Thus, the baseline against which we are The proposed rule does not impose CFTC is the primary financial regulatory assessing the effects of these proposed new mandates. Therefore, the OCC agency. amendments incorporates both: (i) The concludes that implementation of the The CFTC encourages written enacted statutory provisions of sections proposed rule would not result in an 203 and 204 of EGRRCPA, and (ii) our comments regarding this certification. expenditure of $100 million or more Specifically, the CFTC solicits comment understanding that banking entities annually by state, local, and tribal with both total consolidated assets of as to whether the proposed amendments governments, or by the private sector. $10 billion or less and total could have a direct impact on small consolidated trading assets and entities that were not considered. F. SEC: Small Business Regulatory liabilities that are 5 percent or less of Commenters should describe the nature Enforcement Fairness Act total consolidated assets are, consistent of any impact on small entities and For purposes of the Small Business with EGRRCPA, no longer complying provide empirical data to support the Regulatory Enforcement Fairness Act of with the 2013 final rule. Any costs, extent of such impact. 39 1996, or ‘‘SBREFA,’’ the SEC requests benefits, and economic effects of the D. Riegle Community Development and comment on the potential effect of the proposed amendments, including those Regulatory Improvement Act proposed amendments on the U.S. on efficiency, competition, and capital economy on an annual basis; any formation, stem entirely from these Pursuant to section 302(a) of the potential increase in costs or prices for statutory provisions and not from the Riegle Community Development and consumers or individual industries; and conforming amendments to the 2013 Regulatory Improvement Act any potential effect on competition, 41 37 final rule. (RCDRIA), in determining the effective investment or innovation. Commenters The SEC is mindful of the costs and date and administrative compliance are requested to provide empirical data benefits imposed by its rules. Certain requirements for a new regulation that and other factual support for their views SEC-regulated entities, such as broker- imposes additional reporting, to the extent possible. dealers (‘‘BDs’’) and registered disclosure, or other requirements on G. SEC Economic Analysis investment advisers (‘‘RIAs’’), that fell insured depository institutions, each under the definition of ‘‘banking entity’’ Federal banking agency must consider The Agencies are proposing for the purposes of the Volcker Rule any administrative burdens that such amendments to the 2013 final rule to before the enactment of EGRRCPA are regulation would place on insured implement the statutory mandates of within the scope of the proposed depository institutions and the benefits sections 203 and 204 of EGRRCPA. In amendments implementing sections 203 of such regulation. In addition, section accordance with Section 203 of and 204 of EGRRCPA.42 We estimate 302(b) of RCDRIA requires such new EGRRCPA,40 the proposal would amend regulation to take effect on the first day assets and trading liabilities, as reported on the of a calendar quarter that begins on or 38 Additionally, the 30-day delayed effective date most recent applicable regulatory filing filed by the after the date on which the regulations requirement under the Administrative Procedure institution, that are more than 5 percent of total are published in final form, with certain Act is not applicable to a rule, such as the one consolidated assets. proposed herein, that grants or recognizes an 41 Because EGRRCPA was enacted recently, the exceptions. exemption or relieves a burden. 5 U.S.C. 553(d)(1). economic effects of sections 203 and 204 may not The proposed rule would reduce 39 Public Law 104–121, Title II, 110 Stat. 857 yet be fully realized in the relevant securities burden and would not impose any (1996) (codified in various sections of 5 U.S.C., 15 markets. reporting, disclosure, or other new U.S.C. and as a note to 5 U.S.C. 601). 42 We believe that all bank-affiliated entities that 40 Specifically, Section 203 of EGRRCPA provides may register with the SEC as security-based swap requirements on insured depository that the term ‘‘insured depository institution,’’ for dealers and major security-based swap participants institutions. Accordingly, the Agencies purposes of the definition of ‘‘banking entity’’ in are unaffected by the amendments due to the size are not required by RCDRIA to consider section 13(h)(1) of the BHC Act (12 U.S.C. of the balance sheet and the amount of trading the administrative burdens and benefits 1851(h)(1)), does not include an insured depository activity of their affiliated banking entities. Our institution that does not have, and is not controlled analysis is based on DTCC Derivatives Repository by a company that has: (1) More than $10 billion Limited Trade Information Warehouse data on 37 12 U.S.C. 4802(a). in total consolidated assets; and (2) total trading Continued
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that there are as many as 126 bank- risk-sharing, as well as covered fund if an increase in risk-taking by affected affiliated BDs with aggregate assets of activities.45 Additionally, to the extent entities is observed by market approximately $126.2 billion and that the Volcker Rule may have reduced participants that provide capital to aggregate holdings of approximately the ability or willingness of affected them, these capital providers may $12.3 billion that are within the scope entities to engage in permitted hedging, demand additional compensation for of these proposed amendments.43 We underwriting or market-making due to bearing more financial risk, which may estimate that, at most, 308 bank- compliance costs, the statutory decrease the profitability of the entity’s affiliated RIAs could be affected by the exemption may have facilitated access trading and covered fund activities. proposed amendments.44 to capital and trading activity. The costs Banking entities with more than $10 The statutory exemption in section of the 2013 final rule will no longer billion in total consolidated assets and/ 203 of EGRRCPA provided entities apply to the entities affected by the or trading assets and liabilities greater thereby excluded from the Volcker Rule statutory exemption, which, as than 5 percent of total consolidated with greater flexibility in pursuing discussed above, is already fully in assets are incentivized to shrink their certain types of trading and covered effect.46 balance sheets or trading activity under fund activities that could be profitable Some entities with $10 billion or less the thresholds.49 This may reduce the and, thus, may have enhanced their in total consolidated assets and trading willingness of such banking entities to profitability. To the extent that the assets and liabilities equal to or less serve as intermediaries. At the same compliance costs related to the Volcker than 5 percent of its total consolidated time, because the statutory exemption Rule would otherwise have been passed assets may have responded to the incentivizes such banking entities to along to clients and counterparties of statutory exemption by increasing or have smaller balance sheets and trading the affected entities, the cost reductions planning to increase their trading books, section 203 may have reduced associated with section 203 of activity and covered funds activities, the potential for market impacts from EGRRCPA may be flowing through to while still remaining under the the failure of a given entity. On counterparties and clients in the form of applicable thresholds at the aggregate, potential decreases in the reduced transaction costs and increased consolidated holding company level. balance sheets and trading activity of willingness to engage in trading activity, We estimate that 23 such holding unaffected banking entities may partly including intermediation that facilitates companies with broker-dealer affiliates offset increases in balance sheets and and available information about trading trading activity of affected entities. To single-name credit-default swaps. Throughout this assets and liabilities have, on aggregate, the degree that statutory changes in economic analysis, the term ‘‘banking entity’’ total consolidated assets of section 203 of EGRRCPA increase the generally refers only to banking entities that are subject to the Volcker Rule and for which the SEC approximately $94.9 billion and gross gross volume of trading assets and is the primary financial regulatory agency as consolidated trading assets and liabilities, there may be an increase in defined in section 2(12)(B) of the Dodd-Frank Act. liabilities of approximately $0.6 risk-taking. However, this need not See 12 U.S.C. 1851(b)(2); 12 U.S.C. 5301(12)(B). In billion.47 Although we do not have always be the case. For example, a addition, the use of the term ‘‘we’’ throughout this economic analysis refers only to the SEC and not information about the remaining hedging transaction that offsets a risk to the other Agencies, except where otherwise holding companies, we know that 111 exposure from an existing asset would indicated. parent firms with affiliated broker- increase the reported gross trading 43 These 126 broker-dealers are affiliated with 111 dealers can have, on aggregate, total assets and liabilities without necessarily banks or bank holding companies. This estimate has been revised since the July 2018 release proposing gross consolidated trading assets and producing a net increase in risk amendments to the Volcker Rule based on a manual liabilities of no more than $55.5 billion exposure. We note that the affected reclassification of the number of entities affected by without exceeding either threshold and bank-affiliated BDs account only for EGRRCPA. This estimate includes broker-dealers becoming subject to the Volcker Rule. approximately 3.2% of aggregate BD for which data on total assets and/or trading assets and liabilities are not available. Based on a manual Therefore, we estimate that aggregate assets and 1.24% of aggregate BD search of regulatory filings for holding companies trading assets and liabilities of the holdings. Thus, the statutory exemption with missing assets and liabilities data and current affected holding companies with SEC- affects only a small fraction of the FR Y–9C and FR Y–9SP reporting requirements, we regulated affiliates that would not result broker-dealer industry. Nevertheless, believe that entities with missing data have low levels of trading activity and are likely affected by in any of these companies becoming even in the absence of significant section 203 of EGRRCPA. To the degree that this subject to the Volcker Rule is likely no aggregate effects, both the risks and the may not be the case for some bank-affiliated broker- more than $54.9 billion.48 We note that, returns from newly permissible trading dealers, these figures may overestimate the number and covered fund activity by individual of affected entities. Broker-dealer holdings are 45 estimated based on FOCUS reports data and defined See 79 FR 5778 for the Agencies’ estimated as securities and spot commodities owned at market ongoing compliance and recordkeeping burdens First, the profitability of trading activity is likely to value, including: Bankers’ acceptances, certificates related to the requirements of the 2013 final rule. strongly influence incentives to engage in trading of deposit and commercial paper, state and 46 Based on the hourly burdens estimated in the activity and may vary depending on trading municipal government obligations, corporate release adopting the 2013 final rule (79 FR at 5778) strategy, market sector, and time period measured. obligations, stocks and warrants, options, arbitrage, and the BD weight estimates in the July 2018 Second, growth in a holding company’s total other securities, U.S. and Canadian government release proposing amendments to the Volcker Rule consolidated assets is influenced by business obligations, and spot commodities. (83 FR at 33539), annual compliance cost savings models, prevailing market conditions, industry 44 As estimated in the July 2018 release proposing for SEC-regulated entities due to section 203 of competition, bank merger and acquisition activity, amendments to the Volcker Rule (83 FR at 33525), EGRRCPA may be as high as approximately among other factors. Third, this estimate assumes $16,626,385 (= 2,035 hours × 0.18 x (Attorney at that no affected entity will enter or exit the industry there are, approximately, 308 bank-affiliated RIAs. × We do not have information or data that would $409 per hour) 111). as a result of the statutory exclusion. Fourth, this allow us to estimate how many of these bank- 47 The current FR Y–9C and FR Y–9SP filing estimate assumes for purposes of this economic affiliated RIAs would have preferred to share a requirements limit data availability and, due to data analysis that small holding companies that file form name with funds they advise. For the purposes of completeness and delays, we base estimates on FR Y–9SP, which does not contain data on trading this analysis, we estimate that these 308 banking- filings for the third quarter of 2017. We have assets and liabilities, do not currently have any entity RIAs and 126 bank-affiliated BDs are also the information about trading assets and liabilities of 23 trading assets or liabilities. SEC-regulated entities that may be able to engage in holding companies with 24 broker-dealer affiliates. 49 The extent to which this happens will depend covered fund activities as a result of section 203 of 48 This figure is calculated as follows: $55.5 bln— on the size and complexity of each banking entity’s EGRRCPA. We do not have information or data that $0.6 bln = $54.9 bln. We recognize that these trading activities and organizational structure, along would allow us to estimate how many of these estimates may under- or overestimate the increases with those of its affiliated entities and the entities would have preferred to engage in covered in trading activity that may occur as a result of magnitude of expected compliance savings from not fund activities. section 203 of EGRRCPA for four primary reasons. being subject to the Volcker Rule.
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BDs are likely to be passed along to their Prior to the enactment of EGRRCPA, benefits should the SEC take into investors and customers. a banking-entity RIA could not share the account? Please provide quantitative Potential shifts in risk-taking same name or a variation of the same information and ways of estimating any attributable to the statutory changes name as a hedge fund or private equity of the costs and benefits associated with contained in section 203 of EGRRCPA fund that it organized and offered under the proposed amendments. and discussed above may result in two an exemption in the Volcker Rule.51 competing effects. On the one hand, if Section 204 of EGRRCPA changed this List of Subjects affected entities are now able to bear condition for banking-entity RIAs that 12 CFR Part 44 risk at a lower cost than their customers, meet certain requirements and provided increased risk-taking could promote them with flexibility in name sharing Banks, Banking, Compensation, secondary market trading activity and for corporate, marketing, promotional, Credit, Derivatives, Government capital formation in primary markets, or other purposes. To the extent that securities, Insurance, Investments, and thus increase access to capital for name sharing effectively and easily National banks, Penalties, Reporting and issuers. Similarly, the statutory conveys the identity of a fund’s RIA and recordkeeping requirements, Risk, Risk exemption may increase banking preserves the brand value, section 204 retention, Securities, Trusts and entities’ covered fund activities, which of EGRRCPA improved bank-affiliated trustees. may broaden investment opportunities RIAs’ ability to compete for investor 12 CFR Part 248 for investors in covered funds and capital with RIAs that are not affiliated facilitate access to capital by companies with banks. Section 204 also provided Administrative practice and in which those funds invest. On the bank-affiliated RIAs that can share a procedure, Banks, Banking, Conflict of other hand, the statutory exemption name with a fund with a competitive interests, Credit, Foreign banking, may increase risk-taking by individual advantage over those bank-affiliated Government securities, Holding SEC-regulated entities, the amount of RIAs that cannot share a name with a companies, Insurance, Insurance covered fund activity in which they fund because they do not meet the companies, Investments, Penalties, engage, as well as total risk in the statutory conditions for name sharing. Reporting and recordkeeping financial system, which may ultimately In addition, the statutory name-sharing requirements, Securities, State negatively impact issuers and investors. provision may have made it easier for nonmember banks, State savings However, as noted above, the maximum some investors to identify the adviser of associations, Trusts and trustees. potential increase in aggregate trading a fund, which may have reduced search activity of affected entities that would costs related to the capital allocation 12 CFR Part 351 not trigger Volcker Rule compliance is process for some investors. Banks, Banking, Capital, likely limited to $54.9 billion. We We reiterate that the economic effects Compensation, Conflicts of interest, continue to recognize that, if observed discussed above stem from the statutory Credit, Derivatives, Government by providers of capital, an increase in provisions of EGRRCPA that are fully in securities, Insurance, Insurance risk-taking by affected entities may effect, and, therefore, we believe that companies, Investments, Penalties, increase their cost of capital and reduce these effects may be already partially Reporting and recordkeeping the profitability of such risk-taking. realized. We believe that the conforming Entities exempt from the Volcker Rule requirements, Risk, Risk retention, amendments to the implementing Securities, Trusts and trustees. under EGRRCPA are no longer required regulations will have no additional to incur related compliance costs and costs, benefits, or effects on efficiency, 17 CFR Part 75 may, thus, have a competitive advantage competition, and capital formation. relative to similarly situated entities just As discussed above, the proposed Banks, Banking, Compensation, above the thresholds. This may amendments conform the regulations Credit, Derivatives, Federal branches incentivize entities above the thresholds implementing section 13 of the BHC Act and agencies, Federal savings to decrease the size of their balance with the statutory amendments made associations, Government securities, sheet, trading activity, or both in order pursuant to sections 203 and 204 of Hedge funds, Insurance, Investments, to become exempt from the Volcker EGRRCPA with no exercise of agency National banks, Penalties, Proprietary Rule, resulting in greater competition discretion. As such, we believe there are trading, Reporting and recordkeeping between entities with consolidated no reasonable alternatives to the requirements, Risk, Risk retention, assets and trading assets and liabilities proposed rules. Securities, Swap dealers, Trusts and near the thresholds. Moreover, section trustees, Volcker rule. Request for Comment 203 of EGRRCPA may have placed 17 CFR Part 255 affected domestic entities on a more The SEC requests comment on all even competitive footing with foreign aspects of the economic analysis of the Banks, Brokers, Dealers, Investment firms that are also not subject to the proposed amendments. In particular, advisers, Recordkeeping, Reporting, substantive prohibitions and the SEC asks commenters to consider Securities. compliance costs related to the Volcker the following question: DEPARTMENT OF THE TREASURY Rule and its implementing regulations. 1. Has the SEC accurately In addition, it may have placed affected characterized the baseline, costs, Office of the Comptroller of the domestic entities in a potentially better benefits, and effects on competition, Currency efficiency, and capital formation of the competitive position relative to foreign 12 CFR Chapter I banking entities that are subject to the proposed amendments and alternatives Volcker Rule but may avail themselves with respect to SEC-regulated entities Authority and Issuance of the exemptions related to activity and securities markets? If not, why not? For the reasons stated in the Common outside of the United States.50 Should any of the costs or benefits be modified? What, if any, other costs or Preamble, the Office of the Comptroller 50 See §§ lll.6(e) and lll.13(b) of the 2013 of the Currency proposes to amend final rule; See 12 U.S.C. 1851(d)(1)(H) and (I) 51 See § l.11 of the 2013 final rule; 12 U.S.C. chapter I of Title 12, Code of Federal (2017). 1851(d)(1)(G) (2017). Regulations as follows:
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PART 44—PROPRIETARY TRADING Subpart C—Covered Funds Activities PART 248—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND and Investments AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED RELATIONSHIPS WITH COVERED ■ 4. In subpart C, § 44.10 is amended by FUNDS FUNDS (Regulation VV) revising paragraph (d)(9)(iii) to read as follows: ■ 6. The authority citation for part 248 ■ 1. The authority citation for part 44 continues to read as follows: continues to read as follows: § 44.10 Prohibition on acquiring or retaining an ownership interest in and Authority: 12 U.S.C. 1851, 12 U.S.C. 221 et Authority: 7 U.S.C. 27 et seq., 12 U.S.C. having certain relationships with a covered seq., 12 U.S.C. 1818, 12 U.S.C. 1841 et seq., 1, 24, 92a, 93a, 161, 1461, 1462a, 1463, 1464, fund and 12 U.S.C. 3103 et seq. 1467a, 1813(q), 1818, 1851, 3101 3102, 3108, * * * * * 5412. Subpart A—Authority and Definitions (d) * * * ■ 7. In subpart A, § 248.1 is amended by Subpart A—Authority and Definitions (9) * * * (iii) To share with a covered fund, for revising paragraph (c) to read as follows: ■ 2. In subpart A, § 44.1 is amended by corporate, marketing, promotional, or § 248.1 Authority, purpose, scope, and revising paragraph (c) to read as follows: other purposes, the same name or a relationship to other authorities variation of the same name, except as * * * * * § 44.1 Authority, purpose, scope, and permitted under § 44.11(a)(6). (c) Scope. This part implements relationship to other authorities. * * * * * section 13 of the Bank Holding * * * * * ■ 5. In subpart C, § 44.11 is amended by Company Act with respect to banking (c) Scope. This part implements revising paragraph (a)(6) to read as entities for which the Board is section 13 of the Bank Holding follows: authorized to issue regulations under Company Act with respect to banking section 13(b)(2) of the Bank Holding § 44.11 Permitted organizing and offering, Company Act (12 U.S.C. 1851(b)(2)) and entities for which the OCC is authorized underwriting, and market making with take actions under section 13(e) of that to issue regulations under section respect to a covered fund Act (12 U.S.C. 1851(e)). These include 13(b)(2) of the Bank Holding Company (a) * * * any state bank that is a member of the Act (12 U.S.C. 1851(b)(2)) and take (6) The covered fund, for corporate, Federal Reserve System, any company actions under section 13(e) of that Act marketing, promotional, or other that controls an insured depository (12 U.S.C. 1851(e)). These include purposes: institution (including a bank holding national banks, Federal branches and (i) Does not share the same name or company and savings and loan holding Federal agencies of foreign banks, a variation of the same name with the company), any company that is treated Federal savings associations, Federal banking entity (or an affiliate thereof) as a bank holding company for purposes savings banks, and any of their except that a covered fund may share of section 8 of the International Banking respective subsidiaries (except a the same name or a variation of the Act (12 U.S.C. 3106), and any subsidiary subsidiary for which there is a different same name with a banking entity that is of the foregoing other than a subsidiary primary financial regulatory agency, as an investment adviser to the covered for which the OCC, FDIC, CFTC, or SEC that term is defined in this part), but do fund if: is the primary financial regulatory not include such entities to the extent (A) The investment adviser is not an agency (as defined in section 2(12) of they are not within the definition of insured depository institution, a the Dodd-Frank Wall Street Reform and banking entity in § 44.2(c) of this company that controls an insured Consumer Protection Act of 2010 (12 subpart. depository institution, or a company U.S.C. 5301(12)), but do not include that is treated as a bank holding such entities to the extent they are not * * * * * company for purposes of section 8 of the within the definition of banking entity ■ 3. In subpart A, § 44.2 is amended by International Banking Act of 1978 (12 in § 248.2(c) of this subpart. revising paragraph (r) to read as follows: U.S.C. 3106); and * * * * * (B) The investment adviser does not ■ § 44.2 Definitions 8. In subpart A, § 248.2 is amended by share the same name or a variation of revising paragraph (r) to read as follows: * * * * * the same name as an insured depository (r) Insured depository institution, institution, a company that controls an § 248.2 Definitions unless otherwise indicated, has the insured depository institution, or a * * * * * same meaning as in section 3(c) of the company that is treated as a bank (r) Insured depository institution, Federal Deposit Insurance Act (12 holding company for purposes of unless otherwise indicated, has the same meaning as in section 3(c) of the U.S.C. 1813(c)), but does not include: section 8 of the International Banking Act of 1978 (12 U.S.C. 3106); and Federal Deposit Insurance Act (12 (1) An insured depository institution (ii) Does not use the word ‘‘bank’’ in U.S.C. 1813(c)), but does not include: that is described in section 2(c)(2)(D) of its name. (1) An insured depository institution the BHC Act (12 U.S.C. 1841(c)(2)(D)); * * * * * that is described in section 2(c)(2)(D) of or the BHC Act (12 U.S.C. 1841(c)(2)(D)); BOARD OF GOVERNORS OF THE (2) An insured depository institution or FEDERAL RESERVE if it has, and if every company that (2) an insured depository institution if it has, and if every company that controls it has, total consolidated assets 12 CFR Chapter II controls it has, total consolidated assets of $10 billion or less and total trading Authority and Issuance of $10 billion or less and total trading assets and trading liabilities, on a For the reasons set forth in the assets and trading liabilities, on a consolidated basis, that are 5 percent or consolidated basis, that are 5 percent or less of total consolidated assets. Common Preamble the Board proposes to amend chapter II of title 12 of the less of total consolidated assets. * * * * * Code of Federal Regulations as follows: * * * * *
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Subpart C—Covered Funds Activities PART 351—PROPRIETARY TRADING (iii) To share with a covered fund, for and Investments AND CERTAIN INTERESTS IN AND corporate, marketing, promotional, or RELATIONSHIPS WITH COVERED other purposes, the same name or a ■ 9. In subpart C, § 248.10 is amended FUNDS variation of the same name, except as by revising paragraph (d)(9)(iii) to read permitted under § 351.11(a)(6). as follows: ■ 11. The authority citation for part 351 * * * * * continues to read as follows: § 248.10 Prohibition on acquiring or ■ 15. In subpart C, section 351.11 is retaining an ownership interest in and Authority: 12 U.S.C. 1851; 1811 et seq.; amended by revising paragraph (a)(6) to having certain relationships with a covered 3101 et seq.; and 5412. read as follows: fund Subpart A—Authority and Definitions * * * * * § 351.11 Permitted organizing and (d) * * * ■ offering, underwriting, and market making 12. In Subpart A, § 351.1 is amended with respect to a covered fund. (9) * * * by revising paragraph (c) to read as (iii) To share with a covered fund, for follows: (a) * * * corporate, marketing, promotional, or (6) The covered fund, for corporate, other purposes, the same name or a § 351.1 Authority, purpose, scope and marketing, promotional, or other variation of the same name, except as relationship to other authorities. purposes: permitted under § 248.11(a)(6). * * * * * (i) Does not share the same name or * * * * * (c) Scope. This part implements a variation of the same name with the ■ 10. In subpart C, § 248.11 is amended section 13 of the Bank Holding banking entity (or an affiliate thereof), by revising paragraph (a)(6) to read as Company Act with respect to insured except that a covered fund may share follows: depository institutions for which the the same name or a variation of the FDIC is the appropriate Federal banking § 248.11 Permitted organizing and same name with a banking entity that is agency, as defined in section 3(q) of the an investment adviser to the covered offering, underwriting, and market making Federal Deposit Insurance Act, and with respect to a covered fund fund if: certain subsidiaries of the foregoing, but (A) The investment adviser is not an (a) * * * does not include such entities to the insured depository institution, a (6) The covered fund, for corporate, extent they are not within the definition company that controls an insured marketing, promotional, or other of banking entity in § 351.2(c) of this depository institution, or a company purposes: subpart. (i) Does not share the same name or that is treated as a bank holding a variation of the same name with the * * * * * company for purposes of section 8 of the banking entity (or an affiliate thereof) ■ 13. In subpart A, § 351.2 is amended International Banking Act of 1978 (12 except that a covered fund may share by revising paragraph (r) to read as U.S.C. 3106); and the same name or a variation of the follows: (B) The investment adviser does not same name with a banking entity that is § 351.2 Definitions share the same name or a variation of an investment adviser to the covered * * * * * the same name as an insured depository fund if: (r) Insured depository institution, institution, a company that controls an (A) The investment adviser is not an insured depository institution, or a insured depository institution, a unless otherwise indicated, has the same meaning as in section 3(c) of the company that is treated as a bank company that controls an insured holding company for purposes of depository institution, or a company Federal Deposit Insurance Act (12 U.S.C. 1813(c)), but does not include: section 8 of the International Banking that is treated as a bank holding Act of 1978 (12 U.S.C. 3106); and company for purposes of section 8 of the (1) an insured depository institution that is described in section 2(c)(2)(D) of (ii) Does not use the word ‘‘bank’’ in International Banking Act of 1978 (12 its name. U.S.C. 3106); and the Bank Holding Company Act of 1956 (B) The investment adviser does not (12 U.S.C. 1841(c)(2)(D)); or * * * * * share the same name or a variation of (2) an insured depository institution if COMMODITY FUTURES TRADING the same name as an insured depository it has, and if every company that COMMISSION controls it has, total consolidated assets institution, a company that controls an 17 CFR Chapter I insured depository institution, or a of $10 billion or less and total trading company that is treated as a bank assets and trading liabilities, on a Authority and Issuance consolidated basis, that are 5 percent or holding company for purposes of For the reasons set forth in the section 8 of the International Banking less of total consolidated assets. * * * * * Common Preamble, the Commodity Act of 1978 (12 U.S.C. 3106); and Futures Trading Commission amends (ii) Does not use the word ‘‘bank’’ in Part 75 to chapter I of Title 17 of the its name. Subpart C—Covered Funds Activities and Investments Code of Federal Regulations as follows: * * * * * ■ FEDERAL DEPOSIT INSURANCE 14. In subpart C, § 351.10 is amended PART 75—PROPRIETARY TRADING CORPORATION by revising paragraph (d)(9)(iii) to read AND CERTAIN INTERESTS IN AND as follows: RELATIONSHIPS WITH COVERED 12 CFR Chapter III FUNDS § 351.10 Prohibitions on acquiring or Authority and Issuance retaining an ownership interest in and ■ 21. The authority citation for Part 75 For the reasons set forth in the having certain relationships with a covered continues to read as follows: Common Preamble, the Federal Deposit fund. Authority: 12 U.S.C. 1851. Insurance Corporation proposes to * * * * * amend chapter III of Title 12, Code of (d) * * * ■ 22. In Subpart A, § 75.1 is amended by Federal Regulations as follows: (9) * * * revising paragraph (c) to read as follows:
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§ 75.1 Authority, purpose, scope and banking entity (or an affiliate thereof), § 255.2 Definitions relationship to other authorities. except that a covered fund may share * * * * * * * * * * the same name or a variation of the (r) Insured depository institution, (c) Scope. This part implements same name with a banking entity that is unless otherwise indicated, has the section 13 of the Bank Holding an investment adviser to the covered same meaning as in section 3(c) of the Company Act with respect to banking fund if: Federal Deposit Insurance Act (12 entities for which the CFTC is the (A) The investment adviser is not an U.S.C. 1813(c)), but does not include: primary financial regulatory agency, as insured depository institution, a (1) an insured depository institution defined in section 2(12) of the Dodd- company that controls an insured that is described in section 2(c)(2)(D) of Frank Act, but does not include such depository institution, or a company the BHC Act (12 U.S.C. 1841(c)(2)(D)); entities to the extent they are not within that is treated as a bank holding or the definition of banking entity in company for purposes of section 8 of the (2) an insured depository institution if § 75.2(c) of this subpart. International Banking Act of 1978 (12 it has, and if every company that * * * * * U.S.C. 3106); and controls it has, total consolidated assets ■ 23. In subpart A, § 75.2 is amended by (B) The investment adviser does not of $10 billion or less and total trading revising paragraph (r) to read as follows: share the same name or a variation of assets and trading liabilities, on a the same name as an insured depository consolidated basis, that are 5 percent or § 75.2 Definitions institution, a company that controls an less of total consolidated assets. * * * * * insured depository institution, or a * * * * * (r) Insured depository institution, company that is treated as a bank unless otherwise indicated, has the holding company for purposes of Subpart C—Covered Funds Activities same meaning as in section 3(c) of the section 8 of the International Banking and Investments Federal Deposit Insurance Act (12 Act of 1978 (12 U.S.C. 3106); and ■ U.S.C. 1813(c)), but does not include: (ii) Does not use the word ‘‘bank’’ in 19. In subpart C, section 255.10 is (1) an insured depository institution its name. amended by revising paragraph (d)(9)(iii) to read as follows: that is described in section 2(c)(2)(D) of * * * * * the Bank Holding Company Act of 1956 SECURITIES AND EXCHANGE § 255.10 Prohibition on acquiring or (12 U.S.C. 1841(c)(2)(D)); or retaining an ownership interest in and (2) an insured depository institution if COMMISSION having certain relationships with a covered it has, and if every company that 17 CFR Chapter II fund controls it has, total consolidated assets Authority and Issuance * * * * * of $10 billion or less and total trading (d) * * * assets and trading liabilities, on a For the reasons set forth in the (9) * * * consolidated basis, that are 5 percent or Common Preamble, the Securities and (iii) To share with a covered fund, for less of total consolidated assets. Exchange Commission proposes to corporate, marketing, promotional, or * * * * * amend Part 255 to chapter II of Title 17 other purposes, the same name or a of the Code of Federal Regulations as variation of the same name, except as Subpart C—Covered Funds Activities follows: permitted under § 255.11(a)(6). and Investments PART 255—PROPRIETARY TRADING * * * * * ■ ■ 24. In subpart C, § 75.10 is amended AND CERTAIN INTERESTS IN AND 20. In subpart C, § 255.11 is amended by revising paragraph (d)(9)(iii) to read RELATIONSHIPS WITH COVERED by revising paragraph (a)(6) to read as as follows: FUNDS follows: § 75.10 Prohibitions on acquiring or ■ 16. The authority for part 255 § 255.11 Permitted organizing and offering, underwriting, and market making retaining an ownership interest in and continues to read as follows: having certain relationships with a covered with respect to a covered fund fund. Authority: 12 U.S.C. 1851 (a) * * * (6) The covered fund, for corporate, * * * * * Subpart A—Authority and Definitions (d) * * * marketing, promotional, or other (9) * * * ■ 17. In Subpart A, § 255.1 is amended purposes: (iii) To share with a covered fund, for by revising paragraph (c) to read as (i) Does not share the same name or corporate, marketing, promotional, or follows: a variation of the same name with the other purposes, the same name or a banking entity (or an affiliate thereof) § 255.1 Authority, purpose, scope and except that a covered fund may share variation of the same name, except as relationship to other authorities. permitted under § 75.11(a)(6). the same name or a variation of the * * * * * same name with a banking entity that is * * * * * (c) Scope. This part implements ■ an investment adviser to the covered 25. In subpart C, § 75.11 is amended section 13 of the Bank Holding by revising paragraph (a) to read as fund if: Company Act with respect to banking (A) The investment adviser is not an follows: entities for which the SEC is the insured depository institution, a § 75.11 Permitted organizing and offering, primary financial regulatory agency, as company that controls an insured underwriting, and market making with defined in this part, but does not depository institution, or a company respect to a covered fund. include such entities to the extent they that is treated as a bank holding (a) * * * are not within the definition of banking company for purposes of section 8 of the (6) The covered fund, for corporate, entity in § 255.2(c) of this subpart. International Banking Act of 1978 (12 marketing, promotional, or other * * * * * U.S.C. 3106); and purposes: ■ 18. In subpart A, § 255.2 is amended (B) The investment adviser does not (i) Does not share the same name or by revising paragraph (r) to read as share the same name or a variation of a variation of the same name with the follows: the same name as an insured depository
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institution, a company that controls an percent fiberglass content. This 410, Westbury, NY 11590; telephone insured depository institution, or a proposed AD would require repetitive 516–228–7323; fax 516–794–5531; email company that is treated as a bank detailed visual inspections of the [email protected]. holding company for purposes of aileron control system cables and flap SUPPLEMENTARY INFORMATION: section 8 of the International Banking interconnect system cables for damage Act of 1978 (12 U.S.C. 3106); and or disconnected cables, corrective Comments Invited (ii) Does not use the word ‘‘bank’’ in actions if necessary, and replacement of its name. the Teflon parts in the aileron control We invite you to send any written * * * * * systems, aileron/rudder interconnect, relevant data, views, or arguments about and aileron power unit beam. The this proposal. Send your comments to Dated: December 18, 2018 replacement of these parts would an address listed under the ADDRESSES William A. Rowe, terminate the repetitive inspections. We section. Include ‘‘Docket No. FAA– Chief Risk Officer. are proposing this AD to address the 2018–1070; Product Identifier 2018– By order of the Board of Governors of the unsafe condition on these products. NM–154–AD’’ at the beginning of your Federal Reserve System, December 20, 2018. DATES: We must receive comments on comments. We specifically invite Ann E. Misback, this proposed AD by March 25, 2019. comments on the overall regulatory, Secretary of the Board. economic, environmental, and energy ADDRESSES: You may send comments, aspects of this NPRM. We will consider Dated at Washington, DC, on December 18, using the procedures found in 14 CFR all comments received by the closing 2018. 11.43 and 11.45, by any of the following date and may amend this NPRM By order of the Board of Directors. methods: because of those comments. Federal Deposit Insurance Corporation. • Federal eRulemaking Portal: Go to Valerie J. Best, http://www.regulations.gov. Follow the We will post all comments we Assistant Executive Secretary. instructions for submitting comments. receive, without change, to http:// • Fax: 202–493–2251. www.regulations.gov, including any By the Securities and Exchange • Commission. Mail: U.S. Department of personal information you provide. We will also post a report summarizing each Date: December 20, 2018. Transportation, Docket Operations, M– 30, West Building Ground Floor, Room substantive verbal contact we receive Brent J. Fields, W12–140, 1200 New Jersey Avenue SE, about this NPRM. Secretary. Washington, DC 20590. Discussion Issued in Washington, DC, on December • Hand Delivery: Deliver to Mail 20, 2018, by the Commodities Futures address above between 9 a.m. and 5 Transport Canada Civil Aviation Trading Commission. p.m., Monday through Friday, except (TCCA), which is the aviation authority Christopher Kirkpatrick, Federal holidays. for Canada, has issued Canadian AD Secretary of the Commodities Futures Trading For service information identified in CF–2018–27, dated October 12, 2018 Commission. this NPRM, contact Viking Air Limited, (referred to after this as the Mandatory [FR Doc. 2019–00797 Filed 2–7–19; 8:45 am] 1959 de Havilland Way, Sidney, British Continuing Airworthiness Information, BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P; Columbia V8L 5V5, Canada; telephone or ‘‘the MCAI’’), to correct an unsafe 8011–01–P; 6351–01–P +1–250–656–7227; fax +1–250–656– condition for certain Viking Air Limited 0673; email acs-technical.publications@ Model CL–215–6B11 (CL–215T Variant) vikingair.com; internet http:// and CL–215–6B11 (CL–415 Variant) DEPARTMENT OF TRANSPORTATION www.vikingair.com. You may view this airplanes. The MCAI states: service information at the FAA, Federal Aviation Administration Transport Standards Branch, 2200 It was found that a supplier fabricated TeflonTM parts with a charge of 15% South 216th St., Des Moines, WA. For 14 CFR Part 39 fiberglass content in lieu of the required 5%. information on the availability of this Parts manufactured with this higher [Docket No. FAA–2018–1070; Product material at the FAA, call 206–231–3195. percentage of fiberglass may cause wear and Identifier 2018–NM–154–AD] Examining the AD Docket rupture of control cables due to greater friction if contacted [which could lead to RIN 2120–AA64 You may examine the AD docket on reduced controllability of the airplane]. the internet at http:// This [Canadian] AD mandates a [detailed] Airworthiness Directives; Viking Air www.regulations.gov by searching for Limited (Type Certificate Previously visual inspection of the aileron control and locating Docket No. FAA–2018– system cables and flap interconnect system Held by Bombardier, Inc.; Canadair 1070; or in person at Docket Operations cables in the area of the aileron power Limited) Airplanes between 9 a.m. and 5 p.m., Monday control unit. The inspection is required to AGENCY: Federal Aviation through Friday, except Federal holidays. ensure that there is no cable damage or Administration (FAA), DOT. The AD docket contains this NPRM, the disconnect until the replacement of the regulatory evaluation, any comments TeflonTM parts has been completed in the ACTION: Notice of proposed rulemaking aileron control system, the aileron/rudder (NPRM). received, and other information. The street address for Docket Operations interconnect and the aileron power unit beam. This [Canadian] AD also requires (phone: 800–647–5527) is in the SUMMARY: We propose to adopt a new replacement of the TeflonTM parts. airworthiness directive (AD) for certain ADDRESSES section. Comments will be Viking Air Limited Model CL–215–6B11 available in the AD docket shortly after Signs of damage include broken (CL–215T Variant) and CL–215–6B11 receipt. wires, unusual wear, or fraying cables. (CL–415 Variant) airplanes. This FOR FURTHER INFORMATION CONTACT: You may examine the MCAI in the AD proposed AD was prompted by a report Darren Gassetto, Aerospace Engineer, docket on the internet at http:// that a supplier fabricated Teflon parts Mechanical Systems and Admin www.regulations.gov by searching for with a charge of 15 percent fiberglass Services Section, FAA, New York ACO and locating Docket No. FAA–2018– content instead of the specified 5 Branch, 1600 Stewart Avenue, Suite 1070.
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Related Service Information Under 1 information describes procedures for of the unsafe condition described in the CFR Part 51 replacement of Teflon parts in the MCAI and service information Bombardier has issued Service aileron control system, the aileron/ referenced above. We are proposing this Bulletin 215–3185, Revision 1, dated rudder interconnect, and the aileron AD because we evaluated all the January 28, 2014; and Service Bulletin power unit beam. These documents are relevant information and determined 215–4476, Revision 1, dated January 28, distinct since they apply to different the unsafe condition described 2014. The service information describes airplane models in different previously is likely to exist or develop procedures for a detailed visual configurations. on other products of the same type inspection in the area of the aileron This service information is reasonably design. power control unit for damaged or available because the interested parties Proposed Requirements of This NPRM disconnected aileron control system have access to it through their normal cables or flap interconnect system course of business or by the means This proposed AD would require cables, and corrective actions. These identified in the ADDRESSES section. accomplishing the actions specified in the service information described documents are distinct since they apply FAA’s Determination to different airplane models in different previously. configurations. This product has been approved by Costs of Compliance Bombardier has also issued Service the aviation authority of another Bulletin 215–3186, Revision 3, dated country, and is approved for operation We estimate that this proposed AD September 29, 2015; and Service in the United States. Pursuant to our affects 1 airplane of U.S. registry. We Bulletin 215–4477, Revision 2, dated bilateral agreement with the State of estimate the following costs to comply September 29, 2015. The service Design Authority, we have been notified with this proposed AD:
ESTIMATED COSTS FOR REQUIRED ACTIONS
Cost per Cost on U.S. Labor cost Parts cost product operators
66 work-hours × $85 per hour = $5,610 ...... $16,456 $22,066 $22,066
We have received no definitive data issue ADs applicable to transport the FAA proposes to amend 14 CFR part that would enable us to provide cost category airplanes to the Director of the 39 as follows: estimates for the on-condition actions System Oversight Division. specified in this proposed AD. PART 39—AIRWORTHINESS Regulatory Findings DIRECTIVES Authority for This Rulemaking We determined that this proposed AD Title 49 of the United States Code would not have federalism implications ■ 1. The authority citation for part 39 specifies the FAA’s authority to issue under Executive Order 13132. This continues to read as follows: rules on aviation safety. Subtitle I, proposed AD would not have a Authority: 49 U.S.C. 106(g), 40113, 44701. section 106, describes the authority of substantial direct effect on the States, on the FAA Administrator. Subtitle VII: the relationship between the national § 39.13 [Amended] Aviation Programs, describes in more Government and the States, or on the ■ 2. The FAA amends § 39.13 by adding detail the scope of the Agency’s distribution of power and authority. the following new airworthiness responsibilities among the various directive (AD): We are issuing this rulemaking under levels of government. the authority described in Subtitle VII, For the reasons discussed above, I Viking Air Limited (Type Certificate Part A, Subpart III, Section 44701: certify this proposed regulation: Previously Held by Bombardier, Inc.; ‘‘General requirements.’’ Under that Canadair Limited): Docket No. FAA– section, Congress charges the FAA with 1. Is not a ‘‘significant regulatory 2018–1070; Product Identifier 2018– promoting safe flight of civil aircraft in action’’ under Executive Order 12866; NM–154–AD. 2. Is not a ‘‘significant rule’’ under the air commerce by prescribing regulations (a) Comments Due Date for practices, methods, and procedures DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); We must receive comments by March 25, the Administrator finds necessary for 2019. safety in air commerce. This regulation 3. Will not affect intrastate aviation in is within the scope of that authority Alaska; and (b) Affected ADs because it addresses an unsafe condition 4. Will not have a significant None. that is likely to exist or develop on economic impact, positive or negative, (c) Applicability products identified in this rulemaking on a substantial number of small entities action. under the criteria of the Regulatory This AD applies to Viking Air Limited This proposed AD is issued in Flexibility Act. (Type Certificate previously held by accordance with authority delegated by Bombardier, Inc.; Canadair Limited) List of Subjects in 14 CFR Part 39 the Executive Director, Aircraft airplanes, certificated in any category, as Certification Service, as authorized by Air transportation, Aircraft, Aviation identified in paragraphs (c)(1) and (c)(2) of this AD. FAA Order 8000.51C. In accordance safety, Incorporation by reference, (1) Model CL–215–6B11 (CL–215T Variant) with that order, issuance of ADs is Safety. airplanes, serial numbers 1085, 1086, 1093, normally a function of the Compliance The Proposed Amendment 1094, and 1098 through 1101 inclusive. and Airworthiness Division, but during (2) Model CL–215–6B11 (CL–415 Variant) this transition period, the Executive Accordingly, under the authority airplanes, serial numbers 2076 through 2090 Director has delegated the authority to delegated to me by the Administrator, inclusive.
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(d) Subject actions were performed before the effective Havilland Way, Sidney, British Columbia Air Transport Association (ATA) of date of this AD using the service information V8L 5V5, Canada; telephone +1–250–656– America Code 27, Flight controls. specified in paragraphs (k)(1) through (k)(5) 7227; fax +1–250–656–0673; email acs- of this AD. [email protected]; (e) Reason (1) Bombardier Service Bulletin 215–3186, internet http://www.vikingair.com. You may This AD was prompted by a report that a dated September 30, 2013. view this service information at the FAA, supplier fabricated Teflon parts with a charge (2) Bombardier Service Bulletin 215–3186, Transport Standards Branch, 2200 South of 15 percent fiberglass content instead of the Revision 1, dated November 26, 2014. 216th St., Des Moines, WA. For information specified 5 percent fiberglass content. We are (3) Bombardier Service Bulletin 215–3186, on the availability of this material at the issuing this AD to address parts Revision 2, dated December 5, 2014. FAA, call 206–231–3195. manufactured with this higher percentage of (4) Bombardier Service Bulletin 215–4477, dated September 30, 2013. Issued in Des Moines, Washington, on fiberglass, which may cause deterioration of January 10, 2019. control cables and adjacent parts due to (5) Bombardier Service Bulletin 215–4477, Jeffrey E. Duven, greater friction should they come into Revision 1, dated November 26, 2014. Director, System Oversight Division, Aircraft contact, which could lead to reduced (l) No Reporting Requirement controllability of the airplane. Certification Service. Although Bombardier Service Bulletin [FR Doc. 2019–01524 Filed 2–7–19; 8:45 am] (f) Compliance 215–3185, Revision 1, dated January 28, BILLING CODE 4910–13–P Comply with this AD within the 2014; Bombardier Service Bulletin 215–3186, compliance times specified, unless already Revision 3, dated September 29, 2015; done. Bombardier Service Bulletin 215–4476, Revision 1, dated January 28, 2014; and DEPARTMENT OF TRANSPORTATION (g) Inspection Bombardier Service Bulletin 215–4477, Within 50 flight hours after the effective Revision 2, dated September 29, 2015; Federal Aviation Administration date of this AD: Accomplish a detailed visual specify to submit certain information to the inspection of the aileron control systems manufacturer, this AD does not include that 14 CFR Part 39 cables and flap interconnect system cables requirement. [Docket No. FAA–2019–0046; Product for disconnected or damaged cables in (m) Other FAA AD Provisions accordance with paragraph 2.A. of the Identifier 2018–CE–040–AD] The following provisions also apply to this Accomplishment Instructions of Bombardier RIN 2120–AA64 Service Bulletin 215–3185, Revision 1, dated AD: January 28, 2014; or Bombardier Service (1) Alternative Methods of Compliance (AMOCs): The Manager, New York ACO Airworthiness Directives; Learjet, Inc. Bulletin 215–4476, Revision 1, dated January Airplanes 28, 2014; as applicable. Repeat the inspection Branch, FAA, has the authority to approve thereafter at intervals not to exceed 50 flight AMOCs for this AD, if requested using the AGENCY: Federal Aviation hours. procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your Administration (FAA), DOT. (h) Corrective Action request to your principal inspector or local ACTION: Notice of proposed rulemaking If any disconnected or damaged (including Flight Standards District Office, as (NPRM). broken wires, unusual wear, or fraying) appropriate. If sending information directly SUMMARY: cables are found during any inspection to the manager of the certification office, We propose to supersede required by paragraph (g) of this AD: Before send it to ATTN: Program Manager, Airworthiness Directive (AD) 2017–11– further flight, obtain corrective actions Continuing Operational Safety, FAA, New 09, which applies to certain Learjet, Inc. approved by the Manager, New York ACO York ACO Branch, 1600 Stewart Avenue, (Learjet), Model 60 airplanes. AD 2017– Branch, FAA; or Transport Canada Civil Suite 410, Westbury, NY 11590; telephone 11–09 requires a one-time inspection of Aviation (TCCA); or Viking Air Limited’s 516–228–7300; fax 516–794–5531. Before the fuselage skin for corrosion and, as TCCA Design Approval Organization (DAO). using any approved AMOC, notify your necessary, additional related appropriate principal inspector, or lacking a If approved by the DAO, the approval must inspections and corrective actions. include the DAO-authorized signature. principal inspector, the manager of the local Accomplish the corrective actions within the flight standards district office/certificate Since we issued AD 2017–11–09, we compliance time specified therein. If no holding district office. identified an error in the fluorescent dye compliance time is specified in the corrective (2) Contacting the Manufacturer: For any penetrant inspection of the fuselage skin actions instructions, accomplish the requirement in this AD to obtain corrective and an ambiguity in the compliance corrective action before further flight. actions from a manufacturer, the action must time for the fluorescent dye penetrant be accomplished using a method approved (i) Replacement inspection. We are proposing this AD to by the Manager, New York ACO Branch, clarify the compliance time and correct FAA; or TCCA; or Viking Air Limited’s TCCA Within 29 months after the effective date an error for the fluorescent dye of this AD: Replace the Teflon parts in the DAO. If approved by the DAO, the approval aileron control system, the aileron/rudder must include the DAO-authorized signature. penetrant inspection of the fuselage skin. interconnect, and the aileron power unit (n) Related Information beam in accordance with Parts A, B, and C DATES: We must receive comments on (1) Refer to Mandatory Continuing of the Accomplishment Instructions of this proposed AD by March 25, 2019. Bombardier Service Bulletin 215–3186, Airworthiness Information (MCAI) Canadian Revision 3, dated September 29, 2015; or AD CF–2018–27, dated October 12, 2018, for ADDRESSES: You may send comments, Bombardier Service Bulletin 215–4477, related information. This MCAI may be using the procedures found in 14 CFR Revision 2, dated September 29, 2015. found in the AD docket on the internet at 11.43 and 11.45, by any of the following http://www.regulations.gov by searching for methods: (j) Terminating Action for Inspections and locating Docket No. FAA–2018–1070. • Federal eRulemaking Portal: Go to Accomplishing the replacement required (2) For more information about this AD, http://www.regulations.gov. Follow the by paragraph (i) of this AD on an airplane contact Darren Gassetto, Aerospace Engineer, instructions for submitting comments. constitutes terminating action for the Mechanical Systems and Admin Services • Section, FAA, New York ACO Branch, 1600 Fax: 202–493–2251. inspections required by paragraph (g) of this • Mail: U.S. Department of AD for that airplane. Stewart Avenue, Suite 410, Westbury, NY 11590; telephone 516–228–7323; fax 516– Transportation, Docket Operations, M– (k) Credit for Previous Actions 794–5531; email [email protected]. 30, West Building Ground Floor, Room This paragraph provides credit for actions (3) For service information identified in W12–140, 1200 New Jersey Avenue SE, required by paragraph (i) of this AD, if those this AD, contact Viking Air Limited, 1959 de Washington, DC 20590.
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• Hand Delivery: Deliver to Mail will also post a report summarizing each certificate of airworthiness should be address above between 9 a.m. and 5 substantive verbal contact we receive whichever date is earlier. p.m., Monday through Friday, except about this proposed AD. We are proposing this AD to correct Federal holidays. Discussion the error of the inspection area and For service information identified in clarify the compliance times for the this NPRM, contact Learjet, Inc., One We issued AD 2017–08–07, fluorescent dye penetrant inspection of Learjet Way, Wichita, KS 67209–2942; Amendment 39–18856 (82 FR 18084, the fuselage skin. This proposed AD telephone: 316–946–2000; fax: 316– April 17, 2017) (‘‘2017–08–07’’) for will detect and correct corrosion of the 946–2220; email: ac.ict@ certain serial-numbered Learjet Model fuselage skin, which could result in aero.bombardier.com; internet: http:// 60 airplanes. AD 2017–08–07 required a reduced structural integrity of the www.bombardier.com. You may view one-time inspection of the fuselage skin airplane. this service information at the FAA, for corrosion and, as necessary, Policy and Innovation Division, 901 additional related inspections and Related Service Information Under 1 Locust, Kansas City, Missouri 64106. corrective actions. AD 2017–08–07 CFR Part 51 For information on the availability of resulted from an evaluation by the We reviewed Bombardier Learjet 60 this material at the FAA, call (816) 329– design approval holder that indicated Service Bulletin (SB) 60–53–19, 4148. the upper fuselage skin under the aft Revision 3, dated August 29, 2016. This Examining the AD Docket oxygen line fairing is subject to multi- service information was previously site damage. We issued AD 2017–08–07 approved for incorporation by reference You may examine the AD docket on to detect and correct corrosion of the the internet at http:// in AD 2017–08–07 and AD 2017–11–09 fuselage skin, which could result in retained the incorporation by reference www.regulations.gov by searching for reduced structural integrity of the and locating Docket No. FAA–2019– of this SB. The service information airplane. describes procedures for inspections of 0046; or in person at Docket Operations After we issued AD 2017–08–07, we the fuselage crown skin for corrosion between 9 a.m. and 5 p.m., Monday determined that only certain airplanes and, as necessary, related investigative through Friday, except Federal holidays. listed in the applicability of AD 2017– inspections and corrective actions. This The AD docket contains this NPRM, the 08–07 are affected by the unsafe service information is reasonably regulatory evaluation, any comments condition. Therefore, we issued AD available because the interested parties received, and other information. The 2017–11–09, Amendment 39–18908 (82 have access to it through their normal street address for Docket Operations FR 24462, May 30, 2017) (‘‘AD 2017– course of business or by the means (phone: 800–647–5527) is listed above. 11–09’’) to supersede AD 2017–08–07. identified in the ADDRESSES section. Comments will be available in the AD AD 2017–11–09 retained all of the docket shortly after receipt. actions of AD 2017–08–07 but revised FAA’s Determination FOR FURTHER INFORMATION CONTACT: Tara the applicability to identify only We are proposing this AD because we Shawn, Aerospace Engineer, Wichita airplanes with a dorsal-mounted oxygen evaluated all the relevant information ACO Branch, 1801 Airport Road, Room bottle and airplanes that have had the and determined the unsafe condition 100, Wichita, Kansas 67209; telephone: dorsal-mounted oxygen bottle removed described previously is likely to exist or (316) 946–4141; fax: (316) 946–4107; but have retained the oxygen line fairing develop in other products of the same email: [email protected] or Wichita- installed on top of the fuselage. [email protected]. type design. Actions Since AD 2017–11–09 Was SUPPLEMENTARY INFORMATION: Proposed AD Requirements Issued Comments Invited Since we issued AD 2017–11–09, we This proposed AD would retain all We invite you to send any written identified an error in the area of the requirements of AD 2017–11–09. relevant data, views, or arguments about fluorescent dye penetrant inspection However, we removed the language in this proposed AD. Send your comments requirement. AD 2017–11–09 requires paragraph (g) that identified the area of to an address listed under the the fluorescent penetrant inspection of the fuselage skin to be inspected as ADDRESSES section. Include ‘‘Docket No. the fuselage skin between stringers (S)– ‘‘between stringers (S)–2L and S–2R.’’ FAA–2019–0046; Product Identifier 2L and S–2R. Bombardier Learjet 60 Both this proposed AD and AD 2017– 2018–CE–040–AD’’ at the beginning of Service Bulletin (SB) 60–53–19, 11–09 require following the instructions your comments. We specifically invite Recommended, Revision 3, dated in Bombardier Learjet 60, Service comments on the overall regulatory, August 29, 2016, specifies inspecting a Bulletin SB 60–53–19, Revision 3, dated economic, environmental, and energy smaller area, only out to the fairing end August 29, 2016, which requires aspects of this NPRM. We will consider caps. inspection of a smaller area (only out to all comments received by the closing We also identified an ambiguity in the the fairing end caps). date and may amend this NPRM compliance time for the inspection of Costs of Compliance because of those comments. the fuselage skin. Paragraphs (g)(1) We will post all comments we through (3) of AD 2017–11–09 do not We estimate that this proposed AD receive, without change, to http:// specify that the date of issuance of the affects 284 airplanes of U.S. registry. www.regulations.gov, including any original airworthiness certificate or the We estimate the following costs to personal information you provide. We date of issuance of the original export comply with this proposed AD:
ESTIMATED COSTS
Cost per Cost on U.S. Action Labor cost Parts cost product operators
Inspection (retained action from AD 2017– 46 work-hours × $85 per hour = $3,910 ...... $265 $4,175 $1,185,700 11–09).
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ESTIMATED COSTS—Continued
Cost per Cost on U.S. Action Labor cost Parts cost product operators
Reporting (retained action from AD 2017–11– 1 work-hour × $85 per hour = $85 ...... 0 85 24,140 09).
This AD adds no additional economic air commerce by prescribing regulations the FAA proposes to amend 14 CFR part burden. We have received no definitive for practices, methods, and procedures 39 as follows: data that would enable us to provide the Administrator finds necessary for cost estimates for the on-condition safety in air commerce. This regulation PART 39—AIRWORTHINESS actions specified in this AD. According is within the scope of that authority DIRECTIVES to the manufacturer, some of the costs because it addresses an unsafe condition of this AD may be covered under that is likely to exist or develop on ■ 1. The authority citation for part 39 warranty, thereby reducing the cost products identified in this rulemaking continues to read as follows: impact on affected individuals. We do action. Authority: 49 U.S.C. 106(g), 40113, 44701. not control warranty coverage for This AD is issued in accordance with affected individuals. As a result, we authority delegated by the Executive § 39.13 [Amended] have included all known costs in our Director, Aircraft Certification Service, ■ cost estimate. as authorized by FAA Order 8000.51C. 2. The FAA amends § 39.13 by In accordance with that order, issuance removing Airworthiness Directive (AD) Paperwork Reduction Act of ADs is normally a function of the 2017–11–09, Amendment 39–18908 (82 A federal agency may not conduct or Compliance and Airworthiness FR 24462, May 30, 2017) and adding the sponsor, and a person is not required to Division, but during this transition following new AD: respond to, nor shall a person be subject period, the Executive Director has Learjet, Inc.: Docket No. FAA–2019–0046; to a penalty for failure to comply with delegated the authority to issue ADs Product Identifier 2018–CE–040–AD. a collection of information subject to the applicable to small airplanes, gliders, (a) Comments Due Date requirements of the Paperwork balloons, airships, domestic business jet Reduction Act unless that collection of transport airplanes, and associated The FAA must receive comments on this information displays a currently valid appliances to the Director of the Policy AD action by March 25, 2019. OMB Control Number. The OMB and Innovation Division. (b) Affected ADs Control Number for this information collection is 2120–0056. Public Regulatory Findings This AD replaces AD 2017–11–09, Amendment 39–18908 (82 FR 24462, May 30, reporting for this collection of We have determined that this 2017) (‘‘AD 2017–11–09’’). information is estimated to be proposed AD would not have federalism approximately 1 hour per response, implications under Executive Order (c) Applicability including the time for reviewing 13132. This proposed AD would not This AD applies to Learjet, Inc., Model 60 instructions, searching existing data have a substantial direct effect on the airplanes, certificated in any category, having sources, gathering and maintaining the States, on the relationship between the serial numbers 60–002 through 60–430 data needed, completing and reviewing national Government and the States, or inclusive, and having a configuration the collection of information. All on the distribution of power and identified in paragraph (c)(1) or (2) of this responses to this collection of responsibilities among the various AD. information are mandatory. Send levels of government. (1) Airplanes with a dorsal-mounted comments regarding this burden For the reasons discussed above, I oxygen bottle. estimate or any other aspect of this certify that the proposed regulation: (2) Airplanes that have had the dorsal collection of information, including (1) Is not a ‘‘significant regulatory mounted oxygen bottle removed but have suggestions for reducing this burden to: action’’ under Executive Order 12866, retained the oxygen line fairing installed on Information Collection Clearance (2) Is not a ‘‘significant rule’’ under top of the fuselage. Officer, Federal Aviation the DOT Regulatory Policies and (d) Subject Administration, 10101 Hillwood Procedures (44 FR 11034, February 26, Parkway, Fort Worth, TX 76177–1524. 1979), Joint Aircraft System Component (JASC)/ (3) Will not affect intrastate aviation Air Transport Association (ATA) of America Authority for This Rulemaking in Alaska, and Code 53, Fuselage. Title 49 of the United States Code (4) Will not have a significant (e) Unsafe Condition specifies the FAA’s authority to issue economic impact, positive or negative, rules on aviation safety. Subtitle I, This AD was prompted by an evaluation by on a substantial number of small entities the design approval holder indicating that Section 106, describes the authority of under the criteria of the Regulatory the upper fuselage skin under the aft oxygen the FAA Administrator. Subtitle VII, Flexibility Act. line fairing is subject to multi-site damage. Aviation Programs, describes in more List of Subjects in 14 CFR Part 39 We are issuing this AD to detect and correct detail the scope of the Agency’s corrosion of the fuselage skin, which could authority. Air transportation, Aircraft, Aviation result in reduced structural integrity of the We are issuing this rulemaking under safety, Incorporation by reference, airplane. the authority described in Subtitle VII, Safety. Part A, Subpart III, Section 44701, (f) Compliance The Proposed Amendment ‘‘General requirements.’’ Under that Comply with this AD within the section, Congress charges the FAA with Accordingly, under the authority compliance times specified, unless already promoting safe flight of civil aircraft in delegated to me by the Administrator, done.
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(g) Inspection of the Fuselage Skin, Related number, and email of the person submitting of the local flight standards district office/ Investigative Inspections, and Corrective the report, the airplane serial number, the certificate holding district office. Actions total time (flight hours) on the airplane, the (3) An AMOC that provides an acceptable At the applicable compliance times total number of landings on the airplane, level of safety may be used for any repair, specified in paragraphs (g)(1) through (3) of whether corrosion was detected, whether modification, or alteration required by this this AD, do the fluorescent dye penetrant corrosion was repaired, the structural repair AD if it is approved by a Learjet, Inc., inspection of the fuselage skin for corrosion. manual (SRM) chapter and revision used (if Designated Engineering Representative repaired), and whether corrosion exceeded Before further flight, do all related (DER), or a Unit Member (UM) of the Learjet the minimum thickness specified in investigative and corrective actions. Follow Organization Designation Authorization Bombardier Learjet 60 SB 60–53–19 (and the Accomplishment Instructions of (ODA), that has been authorized by the specify the SRM chapter and revision, if used Bombardier Learjet 60 Service Bulletin 60– Manager, Wichita ACO Branch, to make as an aid to determine minimum thickness). 53–19 Revision 3, dated August 29, 2016, (SB those findings. To be approved, the repair, (1) If the inspection was done on or after 60–53–19, Revision 3) except as required by modification deviation, or alteration May 22, 2017 (the effective date of AD 2017– paragraph (h) of this AD. deviation must meet the certification basis of 08–07, which was superseded by AD 2017– (1) As of May 22, 2017 (the effective date the airplane, and the approval must 11–09): Submit the report within 30 days of AD 2017–08–07, Amendment 39–18856 specifically refer to this AD. after the inspection. (82 FR 18084, April 17, 2017) (‘‘2017–08– (4) AMOCs approved previously for AD (2) If the inspection was done before May 07’’), which was superseded by AD 2017–11– 2017–08–07 or AD 2017–11–09 should 22, 2017 (the effective date of AD 2017–08– 09), any airplanes with more than 12 years continue to be considered approved for the 07, which was superseded by AD 2017–11– since the date of issuance of the original corresponding requirements in paragraph (g) 09): Submit the report within 30 days after airworthiness certificate or the date of of this AD. May 22, 2017 (the effective date of AD 2017– issuance of the original export certificate of 08–07, which was superseded by AD 2017– (m) Related Information airworthiness, whichever date is earlier: 11–09). Inspect within 12 months after May 22, 2017 (1) For more information about this AD, (the effective date of AD 2017–08–07, which (j) Credit for Previous Actions contact Tara Shawn, Aerospace Engineer, Wichita ACO Branch, 1801 Airport Road, was superseded by 2017–11–09). This AD allows credit for the actions (2) As of May 22, 2017 (the effective date Room 100, Wichita, Kansas 67209; telephone: required in the introductory text of paragraph (316) 946–4141; fax: (316) 946–4107; email: of AD 2017–08–07, which was superseded by (g) if completed before the effective date of AD 2017–11–09), any airplanes with more [email protected] or [email protected]. this AD using the Accomplishment (2) For service information identified in than 6 years but equal to or less than 12 years Instructions in Learjet 60 SB 60–53–19, dated since the date of issuance of the original this AD, contact Learjet, Inc., One Learjet November 23, 2015; Learjet 60 SB 60–53–19 Way, Wichita, KS 67209–2942; telephone: airworthiness certificate or the date of Revision 1, dated April 4, 2016; or Learjet 60 issuance of the original export certificate of 316–946–2000; fax: 316–946–2220; email: SB 60–53–19 Revision 2, dated April 18, [email protected]; internet: http:// airworthiness, whichever date is earlier: 2016. Inspect within 24 months after May 22, 2017 www.bombardier.com. You may view this (the effective date of AD 2017–08–07, which (k) Paperwork Reduction Act Burden service information at the FAA, Policy and was superseded by AD 2017–11–09). Statement Innovation Division, 901 Locust, Kansas City, (3) As of May 22, 2017 (the effective date A federal agency may not conduct or Missouri 64106. For information on the of AD 2017–08–07, which was superseded by sponsor, and a person is not required to availability of this material at the FAA, call AD 2017–11–09), any airplanes with 6 years respond to, nor shall a person be subject to (816) 329–4148. or less since the date of issuance of the a penalty for failure to comply with a Issued in Kansas City, Missouri, on January original airworthiness certificate or the date collection of information subject to the 31, 2019. of issuance of the original export certificate requirements of the Paperwork Reduction Melvin J. Johnson, of airworthiness, whichever date is earlier: Act unless that collection of information Aircraft Certification Service, Deputy Inspect within 36 months after May 22, 2017 displays a current valid OMB Control (the effective date of AD 2017–08–07, which Number. The OMB Control Number for this Director, Policy and Innovation Division, was superseded by AD 2017–11–09). information collection is 2120–0056. Public AIR–601. [FR Doc. 2019–01500 Filed 2–7–19; 8:45 am] (h) Retained Service Information Exception, reporting for this collection of information is With No Changes estimated to be approximately 1 hour per BILLING CODE 4910–13–P response, including the time for reviewing This paragraph restates the requirements of instructions, completing and reviewing the paragraph (h) of AD 2017–11–09, with no collection of information. All responses to DEPARTMENT OF TRANSPORTATION changes. Where SB 60–53–19, Revision 3, this collection of information are mandatory. specifies contacting Learjet, Inc., for Comments concerning the accuracy of this Federal Aviation Administration appropriate action: Before further flight, burden and suggestions for reducing the repair using a method approved in burden should be directed to the FAA at: 800 14 CFR Part 39 accordance with the procedures specified in Independence Ave. SW, Washington, DC paragraph (l) of this AD. 20591, Attn: Information Collection [Docket No. FAA–2018–1071; Product (i) Retained Reporting, With No Changes Clearance Officer, AES–200. Identifier 2018–NM–119–AD] This paragraph restates the requirements of (l) Alternative Methods of Compliance RIN 2120–AA64 paragraph (i) of AD 2017–11–09, with no (AMOCs) changes. At the applicable time specified in (1) The Manager, Wichita ACO Branch, Airworthiness Directives; Fokker paragraph (i)(1) or (i)(2) of this AD: Submit FAA, has the authority to approve AMOCs Services B.V. Airplanes a report of the findings (both positive and for this AD, if requested using the procedures negative) of the inspection required by the found in 14 CFR 39.19. In accordance with AGENCY: Federal Aviation introductory text of paragraph (g) of this AD 14 CFR 39.19, send your request to your Administration (FAA), DOT. to: [email protected]; or Ann Johnson, principal inspector or local Flight Standards ACTION: Notice of proposed rulemaking Wichita ACO Branch, 1801 Airport Road, District Office, as appropriate. If sending Wichita, KS 67209. The report must include information directly to the manager of the (NPRM). the name of the owner, the address of the ACO Branch, send it to the attention of the SUMMARY: owner, the name of the organization person identified in paragraph (m)(1) of this We propose to adopt a new incorporating Learjet 60 Service Bulletin 60– AD. airworthiness directive (AD) for all 53–19, the date that inspection was (2) Before using any approved AMOC, Fokker Services B.V. Model F28 Mark completed, the name of the person notify your appropriate principal inspector, 0070 and 0100 airplanes. This proposed submitting the report, the address, telephone or lacking a principal inspector, the manager AD was prompted by a determination
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that new or more restrictive this proposal. Send your comments to [EASA] AD 2017–0095, which is superseded, airworthiness limitations are necessary. an address listed under the ADDRESSES and requires implementation of the This proposed AD would require section. Include ‘‘Docket No. FAA– maintenance actions as specified in the ALS. revising the existing maintenance or 2018–1071; Product Identifier 2018– You may examine the MCAI in the inspection program, as applicable, to NM–119–AD’’ at the beginning of your AD docket on the internet at http:// incorporate new or more restrictive comments. We specifically invite www.regulations.gov by searching for airworthiness limitations. We are comments on the overall regulatory, and locating Docket No. FAA–2018– proposing this AD to address the unsafe economic, environmental, and energy 1071. condition on these products. aspects of this NPRM. We will consider Relationship Between Proposed AD and DATES: all comments received by the closing We must receive comments on Related ADs this proposed AD by March 25, 2019. date and may amend this NPRM ADDRESSES: You may send comments, because of those comments. This NPRM does not propose to using the procedures found in 14 CFR We will post all comments we supersede AD 2017–06–06. Rather, we 11.43 and 11.45, by any of the following receive, without change, to http:// have determined that a stand-alone AD methods: www.regulations.gov, including any is more appropriate to address the • Federal eRulemaking Portal: Go to personal information you provide. We changes in the MCAI. This proposed AD http://www.regulations.gov. Follow the will also post a report summarizing each would require revising the existing instructions for submitting comments. substantive verbal contact we receive maintenance or inspection program, as • Fax: 202–493–2251. about this NPRM. applicable, to incorporate new or more • Mail: U.S. Department of restrictive airworthiness limitations. Transportation, Docket Operations, Discussion Accomplishment of the proposed M–30, West Building Ground Floor, The European Aviation Safety Agency actions would then terminate all of the Room W12–140, 1200 New Jersey (EASA), which is the Technical Agent requirements of AD 2017–06–06, and, as Avenue SE, Washington, DC 20590. for the Member States of the European pursuant to AD 2017–06–06, would • Hand Delivery: Deliver to Mail Union, has issued EASA AD 2018–0159, continue to provide terminating action address above between 9 a.m. and 5 dated July 25, 2018 (referred to after this for paragraph (g) of AD 2012–12–07, p.m., Monday through Friday, except as the Mandatory Continuing Amendment 39–17087 (77 FR 37788, Federal holidays. Airworthiness Information, or ‘‘the June 25, 2012). For service information identified in MCAI’’), to correct an unsafe condition Related Service Information Under 1 this NPRM, contact Fokker Services for all Fokker Services B.V. Model F28 CFR Part 51 B.V., Technical Services Dept., P.O. Box Mark 0070 and 0100 airplanes. The 1357, 2130 EL Hoofddorp, the MCAI states: Fokker Services B.V. has issued Netherlands; telephone +31 (0)88–6280– Fokker Engineering Report SE–623, Fokker Services Engineering Report SE– 350; fax +31 (0)88–6280–111; email 623 contains the Airworthiness Limitation Fokker 70/100 Airworthiness [email protected]; internet Items (ALIs) and Safe Life Items (SLIs) for Limitations Section (ALS), Part 2— http://www.myfokkerfleet.com. You may Fokker F28 Mark 0070 and Mark 0100 (Structure ALI’s and Safe Life Items), view this service information at the aeroplanes. This report is Part 2 of the Issue 18, dated June 14, 2018. This FAA, Transport Standards Branch, 2200 Airworthiness Limitations Section of the service information describes South 216th St., Des Moines, WA. For Instructions for Continued Airworthiness, airworthiness limitations for safe life information on the availability of this referred to in Section 06, Appendix 1, of the limits. This service information is material at the FAA, call 206–231–3195. Fokker 70/100 Maintenance Review Board reasonably available because the document. interested parties have access to it Examining the AD Docket The complete Airworthiness Limitations Section consists of: through their normal course of business You may examine the AD docket on or by the means identified in the the internet at http:// Part 1—Report SE–473, Certification Maintenance Requirements (CMRs)—ref. ADDRESSES section. www.regulations.gov by searching for EASA AD 2015–0027 [corresponds to FAA FAA’s Determination and locating Docket No. FAA–2018– AD 2016–11–22, Amendment 39–18549 (81 1071; or in person at Docket Operations FR 36438, June 7, 2016)], This product has been approved by between 9 a.m. and 5 p.m., Monday Part 2—Report SE–623, ALIs and SLIs—ref. the aviation authority of another through Friday, except Federal holidays. EASA AD 2017–0095 [corresponds to FAA country, and is approved for operation The AD docket contains this NPRM, the AD 2017–06–06, Amendment 39–18830 (83 in the United States. Pursuant to our regulatory evaluation, any comments FR 8328, February 27, 2018), (‘‘AD 2017–06– bilateral agreement with the State of received, and other information. The 06’’)], and Design Authority, we have been notified Part 3—Report SE–672, Fuel ALIs and street address for Docket Operations of the unsafe condition described in the (phone: 800–647–5527) is in the CDCCLs—ref. EASA AD 2015–0032 [corresponds to FAA AD 2016–11–15, MCAI and service information ADDRESSES section. Comments will be Amendment 39–18542 (81 FR 36447, June 7, referenced above. We are proposing this available in the AD docket shortly after 2016)]. AD because we evaluated all the receipt. The instructions contained in those reports relevant information and determined FOR FURTHER INFORMATION CONTACT: Tom have been identified as mandatory actions for the unsafe condition described Rodriguez, Aerospace Engineer, continued airworthiness. Failure to previously is likely to exist or develop International Section, Transport accomplish these actions could result in an on other products of the same type Standards Branch, FAA, 2200 South unsafe condition. design. 216th St., Des Moines, WA 98198; EASA previously issued [EASA] AD 2017– 0095, requiring the actions described in Proposed Requirements of This NPRM telephone and fax 206–231–3226. Report SE–623 at issue 17. Since that [EASA] SUPPLEMENTARY INFORMATION: AD was issued, Fokker Services published This proposed AD would require revising the existing maintenance or Comments Invited issue 18 of Report SE–623, containing new and/or more restrictive maintenance tasks. inspection program, as applicable, to We invite you to send any written For the reason described above, this incorporate new or more restrictive relevant data, views, or arguments about [EASA] AD retains the requirements of airworthiness limitations.
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This proposed AD would require normally a function of the Compliance (2) This AD affects AD 2012–12–07, revisions to certain operator and Airworthiness Division, but during Amendment 39–17087 (77 FR 37788, June maintenance documents to include new this transition period, the Executive 25, 2012) (‘‘AD 2012–12–07’’). actions (e.g., inspections). Compliance Director has delegated the authority to (c) Applicability with these actions is required by 14 CFR issue ADs applicable to transport This AD applies to all Fokker Services B.V. 91.403(c). For airplanes that have been category airplanes and associated Model F28 Mark 0070 and 0100 airplanes, previously modified, altered, or repaired appliances to the Director of the System certificated in any category. in the areas addressed by this proposed Oversight Division. (d) Subject AD, the operator may not be able to accomplish the actions described in the Regulatory Findings Air Transport Association (ATA) of America Code 05, Time Limits/Maintenance revised maintenance documents. In this We determined that this proposed AD Checks. situation, to comply with 14 CFR would not have federalism implications 91.403(c), the operator must request under Executive Order 13132. This (e) Reason approval for an alternative method of proposed AD would not have a This AD was prompted by a determination compliance according to paragraph (j)(1) substantial direct effect on the States, on that new or more restrictive airworthiness of this proposed AD. the relationship between the national limitations are necessary. We are issuing this AD to address reduced structural integrity of Costs of Compliance Government and the States, or on the the airplane. distribution of power and We estimate that this proposed AD responsibilities among the various (f) Compliance affects 4 airplanes of U.S. registry. We levels of government. Comply with this AD within the estimate the following costs to comply For the reasons discussed above, I compliance times specified, unless already with this proposed AD: certify this proposed regulation: done. We have determined that revising the 1. Is not a ‘‘significant regulatory (g) Maintenance or Inspection Program existing maintenance or inspection Revision program takes an average of 90 work- action’’ under Executive Order 12866; hours per operator, although we 2. Is not a ‘‘significant rule’’ under the Within 90 days after the effective date of this AD, revise the existing maintenance or recognize that this number may vary DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); inspection program, as applicable, to from operator to operator. In the past, incorporate the information specified in we have estimated that this action takes 3. Will not affect intrastate aviation in Fokker Engineering Report SE–623, Fokker 1 work-hour per airplane. Since Alaska; and 70/100 Airworthiness Limitations Section operators incorporate maintenance or 4. Will not have a significant Part 2—(Structure ALI’s and Safe Life Items), inspection program changes for their economic impact, positive or negative, Issue 18, dated June 14, 2018. affected fleet(s), we have determined on a substantial number of small entities (1) The initial compliance time for doing the tasks is at the time specified in Fokker that a per-operator estimate is more under the criteria of the Regulatory Flexibility Act. Engineering Report SE–623, Fokker 70/100 accurate than a per-airplane estimate. Airworthiness Limitations Section Part 2— Therefore, we estimate the total cost per List of Subjects in 14 CFR Part 39 (Structure ALI’s and Safe Life Items), Issue operator to be $7,650 (90 work-hours × 18, dated June 14, 2018, or within 90 days $85 per work-hour). Air transportation, Aircraft, Aviation after the effective date of this AD, whichever safety, Incorporation by reference, occurs later. Authority for This Rulemaking Safety. (2) If any discrepancy is found, before Title 49 of the United States Code further flight, repair using a method The Proposed Amendment specifies the FAA’s authority to issue approved by the Manager, International Accordingly, under the authority Section, Transport Standards Branch, FAA; rules on aviation safety. Subtitle I, or the European Aviation Safety Agency section 106, describes the authority of delegated to me by the Administrator, (EASA); or Fokker B.V. Service’s EASA the FAA Administrator. Subtitle VII: the FAA proposes to amend 14 CFR part Design Organization Approval (DOA). If Aviation Programs, describes in more 39 as follows: approved by the DOA, the approval must detail the scope of the Agency’s include the DOA-authorized signature. PART 39—AIRWORTHINESS authority. (h) No Alternative Actions or Intervals We are issuing this rulemaking under DIRECTIVES the authority described in Subtitle VII, After the maintenance or inspection program has been revised as required by Part A, Subpart III, Section 44701: ■ 1. The authority citation for part 39 continues to read as follows: paragraph (g) of this AD, no alternative ‘‘General requirements.’’ Under that actions (e.g., inspections) or intervals may be section, Congress charges the FAA with Authority: 49 U.S.C. 106(g), 40113, 44701. used unless the actions or intervals are promoting safe flight of civil aircraft in approved as an alternative method of air commerce by prescribing regulations § 39.13 [Amended] compliance (AMOC) in accordance with the for practices, methods, and procedures ■ 2. The FAA amends § 39.13 by adding procedures specified in paragraph (j)(1) of the Administrator finds necessary for the following new airworthiness this AD. safety in air commerce. This regulation directive (AD): (i) Terminating Action for Affected ADs is within the scope of that authority Fokker Services B.V.: Docket No. FAA– (1) Accomplishing the actions required by because it addresses an unsafe condition 2018–1071; Product Identifier 2018– this AD terminates all requirements of AD that is likely to exist or develop on NM–119–AD. 2017–06–06. (2) Accomplishing the actions required by products identified in this rulemaking (a) Comments Due Date action. this AD terminates the requirements of This proposed AD is issued in We must receive comments by March 25, paragraph (g) of AD 2012–12–07. 2019. accordance with authority delegated by (j) Other FAA AD Provisions the Executive Director, Aircraft (b) Affected ADs The following provisions also apply to this Certification Service, as authorized by (1) This AD affects AD 2017–06–06, AD: FAA Order 8000.51C. In accordance Amendment 39–18830 (83 FR 8328, February (1) Alternative Methods of Compliance with that order, issuance of ADs is 27, 2018) (‘‘AD 2017–06–06’’). (AMOCs): The Manager, International
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Section, Transport Standards Branch, FAA, DEPARTMENT OF HOMELAND of oil or a hazardous substance into or has the authority to approve AMOCs for this SECURITY on navigable waters, adjoining AD, if requested using the procedures found shorelines, or the exclusive economic in 14 CFR 39.19. In accordance with 14 CFR Coast Guard zone of the United States. The primary 39.19, send your request to your principal purpose of requiring response plans is inspector or local Flight Standards District 33 CFR Part 154 to minimize the impact of a discharge of Office, as appropriate. If sending information [Docket Number USCG–1999–5705] oil or hazardous substances into the directly to the International Section, send it navigable waters of the United States. to the attention of the person identified in RIN 1625–AA–12 and 2115–AE87 On May 3, 1996, we published an paragraph (k)(2) of this AD. Information may advance notice of proposed rulemaking be emailed to: 9-ANM-116-AMOC- Marine Transportation-Related Facility soliciting public input on regulations [email protected]. Before using any Response Plans for Hazardous concerning response plans for certain approved AMOC, notify your appropriate Substances tank vessels and marine transportation- principal inspector, or lacking a principal related facilities (61 FR 20083), and AGENCY: Coast Guard, DHS. inspector, the manager of the local flight subsequently held two public meetings standards district office/certificate holding ACTION: Proposed rule; withdrawal. on the subject that were announced in district office. SUMMARY: The Coast Guard is the Federal Register (61 FR 34775). On (2) Contacting the Manufacturer: For any March 31, 2000, we published a notice requirement in this AD to obtain corrective withdrawing its notice of proposed rulemaking entitled ‘‘Marine of proposed rulemaking (NPRM) in the actions from a manufacturer, the action must Federal Register entitled ‘‘Marine be accomplished using a method approved Transportation-Related Facility Response Plans for Hazardous Transportation-Related Facility by the Manager, International Section, Response Plans for Hazardous Transport Standards Branch, FAA; or the Substances’’ that we published on March 31, 2000. The Coast Guard is Substances’’ (65 FR 17416). In the EASA; or Fokker Services B.V.’s EASA DOA. NPRM, we proposed regulations withdrawing this rulemaking based on If approved by the DOA, the approval must requiring response plans for certain findings that the proposed rules are no include the DOA-authorized signature. Marine Transportation-Related facilities. longer appropriate to the current state of The Coast Guard received feedback from (k) Related Information spill response in the chemical industry. concerned citizens, commercial entities, (1) Refer to Mandatory Continuing DATES: The notice of proposed and trade associations regarding the Airworthiness Information (MCAI) EASA AD rulemaking published March 31, 2000, proposed rulemaking. These comments 2018–0159, dated July 25, 2018, for related at 65 FR 17416, is withdrawn as of were made available in the docket. information. This MCAI may be found in the February 8, 2019. Since then, further analysis by the Coast AD docket on the internet at http:// ADDRESSES: The docket for this Guard and the Chemical Transportation www.regulations.gov by searching for and withdrawn rulemaking is available by Advisory Committee (CTAC) has shown locating Docket No. FAA–2018–1071. searching docket number USCG–1999– that implementation of the rules as laid (2) For more information about this AD, 5705 using the Federal portal at http:// contact Tom Rodriguez, Aerospace Engineer, out in the 2000 NPRM would not www.regulations.gov. International Section, Transport Standards significantly increase response Branch, FAA, 2200 South 216th St., Des FOR FURTHER INFORMATION CONTACT: If effectiveness at this time. CTAC also identified many areas in Moines, WA 98198; telephone and fax 206– you have questions about this notice of which the NPRM may overlap with 231–3226. withdrawal, call or email Mr. existing local and state regulatory (3) For service information identified in Christopher Friese, Commercial Vessel schemes as well as current industry this AD, contact Fokker Services B.V., Safety Specialist, Office of Marine Technical Services Dept., P.O. Box 1357, Environmental Response Policy (CG– practice. Most coastal states already 2130 EL Hoofddorp, the Netherlands; MER–1), Coast Guard; telephone 202– have regulations in place governing spill telephone +31 (0)88–6280–350; fax +31 372–1227. response at facilities that handle hazardous substances. Area Planning (0)88–6280–111; email technicalservices@ SUPPLEMENTARY INFORMATION: fokker.com; internet http:// Committees have also been voluntarily www.myfokkerfleet.com. You may view this I. Table of Abbreviations incorporating hazardous substances into their contingency plans, as facilities that service information at the FAA, Transport FR Federal Register Standards Branch, 2200 South 216th St., Des NPRM Notice of Proposed Rulemaking handle hazardous chemicals are often Moines, WA. For information on the OPA 90 Oil Pollution Act of 1990 located near sites that process oil. availability of this material at the FAA, call CTAC Chemical Transportation Advisory Furthermore, organizations like the 206–231–3195. Committee Chemical Transportation Emergency Center and Spill Center have Issued in Des Moines, Washington, on II. Background demonstrated that synergies from oil January 10, 2019. The Clean Water Act,1 as amended by response may also be utilized in Jeffrey E. Duven, section 4202(a)(6) of the Oil Pollution hazardous substance response. Marine Director, System Oversight Division, Aircraft Act of 1990 (OPA 90),2 requires owners transportation related facilities handling Certification Service. or operators of tank vessels, offshore oil products must also comply with the [FR Doc. 2019–01527 Filed 2–7–19; 8:45 am] facilities, and onshore facilities to Coast Guard’s Facility Response Plan 3 BILLING CODE 4910–13–P prepare response plans to mitigate spills requirements. Although these of both oils and hazardous substances. requirements address planning for oil These plans must address measures to spill response, these best practices may respond, to the maximum extent also be applied to hazardous substance practicable, to a worst-case discharge or response to an extent. Due to the a substantial threat of such a discharge, services and requirements industry frequently engages in to satisfy 1 33 U.S.C. 1321(j)(5). 2 Public Law 101–380, 104 Stat. 484. 3 33 CFR part 154, subpart F.
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insurance requirements and company DEPARTMENT OF HOMELAND shorelines, or the exclusive economic sustainability polices, together with the SECURITY zone of the United States. The primary existence of new terminal inspection purpose of requiring response plans is protocols like that developed by the Coast Guard to minimize the impact of a discharge of Chemical Distribution Institute, CTAC oil or hazardous substances into the was unable to identify any significant 33 CFR Part 155 navigable waters of the United States. On May 3, 1996, we published an gaps in hazardous substance spill [Docket Number USCG–1998–4354] response planning at marine advance notice of proposed rulemaking RIN 1625–AA13 and 2115–AE88 soliciting public input on regulations transportation-related facilities that concerning response plans for certain would be reduced by the 2000 proposed Tank Vessel Response Plans for tank vessels and marine transportation- rulemaking. Hazardous Substances related facilities (61 FR 20083), and subsequently held two public meetings III. Withdrawal AGENCY: Coast Guard, DHS. on the subject that were announced in The Coast Guard is withdrawing the ACTION: Proposed rule; withdrawal. the Federal Register (61 FR 34775). On proposed rulemaking so as to better SUMMARY: The Coast Guard is March 22, 1999, we published a notice analyze the current spill response withdrawing its notice of proposed of proposed rulemaking (NPRM) in the capabilities of the chemical industry rulemaking entitled ‘‘Tank Vessel Federal Register entitled ‘‘Tank Vessel before conducting any further Response Plans for Hazardous Response Plans for Hazardous rulemaking on hazardous substance Substances’’ that we published on Substances’’ (64 FR 13734). In the response plans for marine March 22, 1999. The Coast Guard is NPRM, we proposed regulations that transportation-related facilities. The withdrawing this rulemaking based on would require response plans for certain Coast Guard remains committed to findings that the proposed rules are no tank vessels operating on the navigable waters of the United States. The Coast fulfilling its OPA 90 mandate, however longer appropriate to the current state of Guard received feedback from we believe the proposed rules are no spill response in the chemical industry. concerned citizens, commercial entities, longer appropriate as proposed. DATES: The notice of proposed and trade associations regarding the The Coast Guard has determined that rulemaking published March 22, 1999, proposed rulemaking. These comments withdrawing the proposed rule is at 64 FR 13734, is withdrawn as of were made available in the docket. appropriate based on findings that the February 8, 2019. Since then, further analysis by the Coast proposed rules are no longer applicable ADDRESSES: The docket for this Guard and the Chemical Transportation to the current state of spill response in withdrawn rulemaking is available by Advisory Committee (CTAC) has shown the chemical industry. Accordingly, the searching docket number USCG–1998– that implementation of the proposed Coast Guard is withdrawing the ‘‘Marine 4354 using the Federal portal at http:// rules as structured in the 1999 NPRM Transportation-Related Facility www.regulations.gov. would not significantly increase Response Plans for Hazardous FOR FURTHER INFORMATION CONTACT: If response effectiveness at this time. Substances’’ proposed rulemaking you have questions about this notice of CTAC also identified many areas in announced in an NPRM published withdrawal, call or email Mr. which the NPRM may overlap with March 31, 2000 (65 FR 17416). Christopher Friese, Commercial Vessel existing local, state, and international Safety Specialist, Office of Marine regulatory schemes as well as current IV. Executive Order 13771 Environmental Response Policy (CG– industry practice. The International MER–1), Coast Guard; telephone 202– Maritime Organization’s Shipboard The withdrawal of the NPRM 372–1227. Marine Pollution Emergency Plan qualifies as a deregulatory action under already requires all foreign flagged SUPPLEMENTARY INFORMATION: Executive Order 13771 (Reducing vessels and U.S. vessels on international Regulation and Controlling Regulatory I. Table of Abbreviations routes carrying noxious liquid substance Costs), which directs agencies to reduce cargos, to develop and implement spill FR Federal Register regulation and control regulatory costs NPRM Notice of Proposed Rulemaking response plans. U.S. flagged vessels and and provides that ‘‘for every one new OPA 90 Oil Pollution Act of 1990 foreign flag vessels calling on ports or regulation issued, at least two prior CTAC Chemical Transportation Advisory places in the U.S. and carrying oil in regulations be identified for elimination, Committee bulk as cargo or using oil as fuel for main propulsion, must comply with the and that the cost of planned regulations II. Background be prudently managed and controlled Coast Guard’s Vessel Response Plan 1 3 through a budgeting process.’’ See the The Clean Water Act, as amended by requirements. Although these OMB Memorandum titled ‘‘Guidance section 4202(a)(6) of the Oil Pollution requirements address planning for oil 2 Implementing Executive Order 13771, Act of 1990 (OPA 90), requires owners spill response, many of these practices may also be applied to hazardous Titled ‘Reducing Regulation and or operators of tank vessels, offshore facilities, and onshore facilities to substance responses. Vessels also must Controlling Regulatory Costs’ ’’ (April 5, prepare response plans to mitigate spills comply with numerous state response 2017). of both oils and hazardous substances. planning requirements when operating Dated: February 4, 2019. These plans must address measures to in state waters. The Coast Guard is Anthony J. Vogt, respond, to the maximum extent concerned the proposed rules may Rear Admiral, U.S. Coast Guard, Assistant practicable, to a worst-case discharge or create redundancy with some existing Commandant for Response Policy. a substantial threat of such a discharge, rules and be unnecessary due to [FR Doc. 2019–01591 Filed 2–7–19; 8:45 am] of oil or a hazardous substance into or industry’s increased awareness and on navigable waters, adjoining readiness since OPA 90 was passed. BILLING CODE 9110–04–P Between the above-mentioned 1 33 U.S.C. 1321(j)(5). 2 Public Law 101–380, 104 Stat. 484. 3 33 CFR part 155, subpart D.
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regulations already in place for oil spill ENVIRONMENTAL PROTECTION at the EPA Region 6, 1445 Ross Avenue, response, industry initiatives such as AGENCY Suite 700, Dallas, Texas. While all the American Chemistry Council’s documents in the docket are listed in Responsible Care and the American 40 CFR Part 52 the index, some information may be Waterways Operators’ Responsible [EPA–R06–OAR–2017–0558; FRL–9988–27– publicly available only at the hard copy Carrier programs, and the sustainability Region 6] location (e.g., copyrighted material), and policies of individual companies, CTAC some may not be publicly available at was unable to identify large gaps in Approval and Promulgation of State either location (e.g., CBI). hazardous substance spill response Implementation Plan, Louisiana; FOR FURTHER INFORMATION CONTACT: Mr. Attainment Demonstration for the St. planning for vessels that would be Robert Imhoff, (214) 665–7262; Bernard Parish 2010 SO Primary improved by the 1999 proposed 2 [email protected]. To inspect the National Ambient Air Quality Standard rulemaking. hard copy materials, please schedule an Nonattainment Area; Supplemental appointment with Mr. Robert Imhoff. Notice of Proposed Rulemaking III. Withdrawal SUPPLEMENTARY INFORMATION: The Coast Guard is withdrawing its AGENCY: Environmental Protection Throughout this document, ‘‘we,’’ ‘‘us,’’ proposed rulemaking in order to better Agency (EPA). or ‘‘our’’ refer to EPA. analyze the current spill response ACTION: Supplemental notice of I. Background proposed rulemaking. capabilities of the chemical industry On April 19, 2018, we published a and gaps in the current regulatory SUMMARY: In this supplemental notice of proposed rulemaking action to approve regime before conducting any further proposed rulemaking (SNPRM), the the 2010 SO2 Primary NAAQS rulemaking on hazardous substance Environmental Protection Agency (EPA) Nonattainment Area SIP revision for St. response plans for tank vessels. While is supplementing our proposed approval Bernard Parish, submitted by the State the Coast Guard remains committed to document, concerning the 2010 Sulfur of Louisiana on November 9, 2017 and fulfilling its OPA 90 mandate, we Dioxide (SO2) Primary National first supplemented on February 8, believe the proposed rules are no longer Ambient Air Quality Standard (NAAQS) 2018.1 The April 19, 2018 action appropriate in their 1999 form. Nonattainment Area State proposed approval of the following CAA The Coast Guard has determined that Implementation Plan (SIP) revision for SIP elements: The attainment St. Bernard Parish. The EPA is also withdrawing the proposed rule is demonstration for the SO2 NAAQS and reopening the public comment period. appropriate based on findings that the enforceable emissions limits, which DATES: Written comments must be 1999 proposed rules are no longer included an Agreed Order on Consent received on or before March 11, 2019. applicable to the current state of spill (AOC) dated February 2, 2018 for the ADDRESSES: response in the chemical industry. Submit your comments, Rain CII Carbon, LLC. (Rain) facility; the identified by Docket No. EPA–R06– reasonable further progress (RFP) plan; Accordingly, the Coast Guard is OAR–2017–0558, at https:// the reasonably available control withdrawing the ‘‘Tank Vessel Response www.regulations.gov. Follow the online measures (RACM) and reasonably Plans for Hazardous Substances’’ instructions for submitting comments. available control technology (RACT) proposed rulemaking published March Once submitted, comments cannot be demonstration; the emission 22, 1999 (64 FR 13734). edited or removed from Regulations.gov. inventories; and the contingency IV. Executive Order 13771 The EPA may publish any comment measures. We also proposed to find that received to its public docket. Do not the State had demonstrated that its The withdrawal of the NPRM submit electronically any information current Nonattainment New Source qualifies as a deregulatory action under you consider to be Confidential Review (NNSR) program covered the Executive Order 13771 (Reducing Business Information (CBI) or other 2010 SO2 NAAQS; therefore, no revision Regulation and Controlling Regulatory information whose disclosure is to the SIP was required for the NNSR Costs), which directs agencies to reduce restricted by statute. Multimedia element. regulation and control regulatory costs submissions (audio, video, etc.) must be Comments on the proposal were and provides that ‘‘for every one new accompanied by a written comment. required to be received by May 21, 2018. regulation issued, at least two prior The written comment is considered the We received timely comments on the regulations be identified for elimination, official comment and should include proposal, and as stated further below, and that the cost of planned regulations discussion of all points you wish to we will address all comments received be prudently managed and controlled make. The EPA will generally not on the original proposal and on this 2 through a budgeting process.’’ See the consider comments or comment supplemental action in our final action. contents located outside of the primary OMB Memorandum titled ‘‘Guidance II. Additional Information Submitted submission (i.e., on the web, cloud, or Implementing Executive Order 13771, by Louisiana other file sharing system). For Titled ‘Reducing Regulation and additional submission methods, please After the close of the public comment Controlling Regulatory Costs’ ’’ (April 5, contact Mr. Robert Imhoff, (214) 665– period to the April 19, 2018 proposal, 2017). 7262, [email protected]. For the the Louisiana Department of Dated: February 4, 2019. full EPA public comment policy, Environmental Quality (LDEQ) Anthony J. Vogt, information about CBI or multimedia submitted additional information to Rear Admiral, U.S. Coast Guard, Assistant submissions, and general guidance on Commandant for Response Policy. making effective comments, please visit 1 83 FR 17349. 2 See our detailed discussion below that involves [FR Doc. 2019–01593 Filed 2–7–19; 8:45 am] https://www2.epa.gov/dockets/ commenting-epa-dockets. an evaluation of the supplemental information BILLING CODE 9110–04–P submitted by the LDEQ to EPA, partly in response Docket: The index to the docket for to a public comment received on the original this action is available electronically at Federal Register action at 83 FR 17349, April 19, www.regulations.gov and in hard copy 2018 proposal.
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EPA on August 24, 2018.3 The 8/2/2018) and supporting modeling into and supporting modeling in a additional information was submitted to the 2010 SO2 Primary NAAQS supplement to the TSD which may be us partly in response to a public Nonattainment Area SIP revision for St. found in the docket and titled as comment received on the April 19, 2018 Bernard Parish. ‘‘Supplement to Technical Support proposal by United States Senator from Document for Approval and III. Public Comment Louisiana, Bill Cassidy.4 In particular, Promulgation of Implementation Plans; Senator Cassidy submitted a comment The EPA is reopening the public Louisiana; Attainment Demonstration letter that expressed concern that Rain comment period. Comments are due for the St. Bernard Parish 2010 SO2 would need to modify the February March 11, 2019. The reopening of the Primary National Ambient Air Quality 2018 AOC entered between Rain and comment period is strictly limited to Standard Nonattainment Area.’’ The LDEQ as Rain did not believe that it additional supplemental information TSD examines LDEQ’s supplemental could meet the limits set forth in the submitted by Louisiana on August 24, modeling reflecting the changes in AOC without an additional extension to 2018 and October 9, 2018, and our Rain’s AOC and the updates to the the compliance dates. In response to the additional analysis contained in this contributing sources inventory. See the comment, and in order to determine supplemental action and Supplemental TSD supplement for a complete feasible emission limits for operations Technical Support Document (TSD) discussion of our evaluation and during transitions from exhaust flow now available in the docket. The analysis. through the hot stack to flow through supplemental information submitted to A. Emissions Data and Limits the heat recovery boiler (referred to as us seeks to address, in part, a public the cold stack), LDEQ granted an comment received on our original April There were two main changes in the extension of the deadline of the 19, 2018 proposal action. The EPA will emissions data and limits used in the February 2018 AOC on April 27, 2018.5 address all comments received on the October 9, 2018 supplemental modeling LDEQ then issued a revised AOC on original April 19, 2018 proposal and on from the original SIP modeling in the August 2, 2018. A model analysis was this SNPRM in our final action. proposal. The first is due to the revision submitted to EPA on August 24, 2018 6 of the AOC for Rain reflecting IV. EPA’s Evaluation and Analysis to specifically demonstrate attainment conditions consistent with the design of the NAAQS with the revised limits in We have reviewed the supplemental throughput for the facility and the the August 2018 AOC. EPA reviewed information submitted by LDEQ on second is to reflect recent revisions to the new modeling analysis 7 and found August 24, 2018, and October 9, 2018 to permits for the contributing sources. some errors and omissions. In response, further assist in our evaluation of the The August 2, 2018 AOC incorporated LDEQ submitted an updated modeling state’s previous November 9, 2017 (as updated information from the facility analysis on October 9, 2018.8 The AOC supplemented on February 8, 2018) SIP regarding the emission rates, (signed by LDEQ and Rain August 2, submittal and the public comment temperatures, and flowrates to be 2018 and submitted to EPA on August received by Senator Cassidy. As expected from the facility for the 24, 2018), and the October 9, 2018 explained above, the revised AOC made various operating scenarios. Since these modeling files (also submitted by LDEQ) changes in response to comments parameters differed from those in the serve as a supplement to the November received regarding Rain’s ability to meet previous AOC, additional modeling to 9, 2017 and February 8, 2018 SIP transitional emissions limits. We have demonstrate attainment of the NAAQS submittals and are intended to address included our detailed evaluation and was conducted. The August 2, 2018 the public comment by incorporating additional analysis of the revisions AOC has a compliance date of August certain additional AOC revisions (dated contained in the August 2, 2018 AOC 2, 2018.
TABLE 1—CONTROL CHART OF THE SO2 EMISSION LIMITS IN POUNDS PER HOUR FOR THE RAIN COLD AND HOT STACKS
Cold stack SO2 limits Hot stack SO2 limits (lb/hr) and Stage Cold stack conditions for stage as measured by CEMS pounds per associated hot stack parameters hour (lb/hr)
Cold Stack Stand- During normal, steady state operations, and damper to EQT 200 0 lb/hr, Hot Stack flow rate = 0. alone Low. 0004 is closed, Stack flow rate ≥46,000 ACFM and <90,000 ACFM, Temperature ≥150 °F. Cold Stack Stand- During normal, steady state operations, and damper to EQT 380 0 lb/hr, Hot Stack flow rate = 0. alone Medium Low. 0004 is closed, If Stack flow rate ≥90,000 ACFM and <120,000 ACFM, Temperature ≥210 °F. Cold Stack Stand- During normal, steady state operations, and damper to EQT 420 0 lb/hr, Hot Stack flow rate = 0. alone Medium 0004 is closed, Stack flow rate ≥120,000 ACFM and High. <140,000 ACFM, Temperature ≥210 °F. Cold Stack Stand- During normal, steady state operations, and damper to EQT 510 0 lb/hr, Hot Stack flow rate = 0. alone High. 0004 is closed, Stack flow rate ≥140,000 ACFM, Stack temperature ≥210 °F.
3 Letter from Secretary Brown to Anne Idsal, referred to Rain’s need to modify the February 2, 7 See Email Erik Snyder to Vivian Aucoin August 24, 2018, St. Bernard 2008 Sulfur Dioxide 2018 AOC. September 11, 2018 with attachment in the docket State Implementation Plan Supplemental 5 See April 27, 2018 Letter from Secretary Chuck to this action ‘‘Chalmette_LDEQ_7_2018_Sources Information and Executed Administrative Order on Carr Brown to Rain in the docket for this action. emissions verifications—R6.xlsx’’. Consent (AOC) included in the docket for this 8 action. 6 See Email from Vivian Aucoin to Michael See Email from Vennetta Hayes to Robert Imhoff 4 See the April 24, 2018 letter (in the docket to Feldman September 28, 2018 in the docket to this October 9, 2018 in the docket to this action. this action) from Senator Cassidy to EPA that action.
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TABLE 1—CONTROL CHART OF THE SO2 EMISSION LIMITS IN POUNDS PER HOUR FOR THE RAIN COLD AND HOT STACKS—Continued
Cold stack SO2 limits Hot stack SO limits (lb/hr) and Stage Cold stack conditions for stage as measured by CEMS pounds per 2 hour associated hot stack parameters (lb/hr)
1 ...... Stack flow rate is >0 ACFM and <45,000 ACFM or Tempera- 4.5 1,600 lb/hr, Hot Stack flow rate ture <60 °F. ≥400,000 ACFM, Temperature ≥1,600 °F. 2 ...... Stack gas flow rate ≥45,000 ACFM and <60,000 ACFM, 49.5 1,400 lb/hr, Hot Stack flow rate Temperature ≥110 °F. ≥375,000 ACFM, Temperature ≥1,600 °F. 3 ...... Stack gas flow rate ≥60,000 ACFM and <85,000 ACFM, 90 1,200 lb/hr, Hot Stack flow rate Temperature ≥150 °F. ≥375,000 ACFM, Temperature ≥1,600 °F. 4 ...... Transition Stage 4: When the flue gas flow rate ≥85,000 108 ≤1,000 lb/hr, Hot Stack flow rate ACFM and <110,000 ACFM: Temperature ≥160 °F. ≥310,000 ACFM, Temperature ≥1,600 °F. 5 ...... Transition Stage 5: When the flue gas flow rate ≥110,000 171 900 lb/hr, Hot Stack flow rate ≥310,000 ACFM and <140,000 ACFM: Temperature ≥210 °F. ACFM, Temperature ≥1,600 °F. 6 ...... Transition Stage 6: When the flue gas flow rate ≥140,000 189 800 lb/hr, Hot Stack flow rate ≥220,000 ACFM: Temperature ≥210 °F. ACFM, Temperature ≥1,400 °F. Hot Stack Stand- Non-transition operations: When the damper to EQT 0003 is 0 2,020 lb/hr. alone. closed.
The emission rates used in the sources.9 LDEQ used the updated 2, 2018 AOC emission limits for the previous modeling for contributing current allowable emission rates in their Rain facility, resulted in concentrations sources were accurate and complete at modeling. The revised contributing below the level of the 1-hour primary the time they were compiled in 2017. source inventory contained sources, not SO2 NAAQS. The EPA has reviewed Because of subsequent permit including Rain, totaling 4,435 tons per Louisiana’s supplemental modeling and modifications in 2018 for the Valero and year compared to the previous inventory agrees that Louisiana’s supplemental Chalmette refineries, the do not which contained 6,382 tons per year. materials, along with the new AOC accurately reflect current allowable limits (August 2, 2018), result in B. Summary of Results emission rates. EPA and LDEQ demonstrating attainment of the 1-hour consulted on updates to the original LDEQ’s October 2018 modeling SO2 primary NAAQS before the allowable rates for the contributing analysis, including the revised August attainment deadline of October 4, 2018.
TABLE 2—SUMMARY OF EPA MODEL RESULTS WITH NUMBER OF OPERATING SCENARIOS MODELED, IF GREATER THAN ONE
Operational status Design value μg/m3
Cold Stack Normal Operations (Low) ...... 189.8 Cold Stack Normal Operations (Medium Low) ...... 189.8 Cold Stack Normal Operations (Medium High) ...... 183.9 Cold Stack Normal Operations (High) ...... 190.8 Hot Stack Normal Operations ...... 176.6 Transition (Six Scenarios) ...... 185.6 Rain Property ...... 160.5 Valero Property ...... 147.7 Chalmette Refinery Property ...... 130.3
The result of our evaluation and Bernard Parish, as submitted by the are proposing to approve the August 2, analysis of the supplemental State of Louisiana on November 9, 2017 2018 AOC as a source-specific SIP information continues to support the and supplemented on February 8, 2018. revision that serves to replace the proposed approval of the SIP revisions In this supplemental proposal, EPA is original February 2018 AOC. We identified in the Federal Register at 83 proposing to approve LDEQ’s August propose to find that the supplemental FR 17349, April 19, 2018, proposal. 24, 2018 and October 9, 2018 October 9, 2018 modeling provides supplements to the November 9, 2017 continued support for a proposed V. Supplemental Proposal Action SIP and February 8, 2018 submittals that approval of the attainment On April 19, 2018, EPA originally were provided partly in response to a demonstration that was originally proposed to approve the 2010 SO2 comment received on our April 19, 2018 submitted in November 2017. EPA Nonattainment Area SIP revision for St. proposal (83 FR 17349). Specifically, we solicits comments on this SNPRM, with
9 September 11, 2018 Email From: Snyder, Erik to 7_2018_Sources emissions verifications—R6.xlsx’’ Vivian. Aucoin with attachment ‘‘Chalmette_LDEQ_ in the docket for this action.
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respect to only the specific information meeting Federal requirements and does Reporting and recordkeeping raised in this supplemental proposal— not impose additional requirements requirements, Sulfur oxides. that being (a) the modifications from the beyond those imposed by state law. For Authority: 42 U.S.C. 7401 et seq. original modeling required for the that reason, this action: supplemental October 9, 2018 modeling, • Is not a ‘‘significant regulatory Dated: December 20, 2018. i.e., the revised stack parameters and action’’ subject to review by the Office Anne Idsal, emissions for Rain and the contributing of Management and Budget under Regional Administrator, Region 6. source inventory and (b) the revised Executive Order 12866 (58 FR 51735, [FR Doc. 2018–28171 Filed 2–7–19; 8:45 am] August 2018 AOC. EPA is not reopening October 4, 1993) and 13563 (76 FR 3821, BILLING CODE 6560–50–P the comment period on any other aspect January 21, 2011); of the April 19, 2018 proposal, as there • Is not an Executive Order 13771 (82 was an opportunity to comment FR 9339, February 2, 2017) regulatory DEPARTMENT OF TRANSPORTATION provided at the time of that proposal on action because SIP approvals are all other elements of the submittals and exempted under Executive Order 12866; National Highway Traffic Safety those elements remain unchanged from • Does not impose an information Administration the original proposal. The purpose of collection burden under the provisions this SNPRM is limited to an evaluation of the Paperwork Reduction Act (44 49 CFR Part 563 of LDEQ’s August 24, 2018 submission U.S.C. 3501 et seq.); [Docket No. NHTSA–2012–0177] of the AOC and supporting October • Is certified as not having a 2018 modeling, as well as the significant economic impact on a RIN 2127–AK86 supplement to the TSD, all of which are substantial number of small entities contained in the docket for this under the Regulatory Flexibility Act (5 Federal Motor Vehicle Safety rulemaking. We are reopening the U.S.C. 601 et seq.); Standards; Event Data Recorders • comment period until March 11, 2019. Does not contain any unfunded AGENCY: National Highway Traffic The scope of this supplemental mandate or significantly or uniquely Safety Administration (NHTSA), document and the reopening of the affect small governments, as described Department of Transportation (DOT). comment period is strictly limited to in the Unfunded Mandates Reform Act ACTION: Proposed rule; withdrawal. only the supplemental information. The of 1995 (Pub. L. 104–4); • EPA will not respond to comments Does not have Federalism SUMMARY: NHTSA withdraws its received during the reopened comment implications as specified in Executive December 13, 2012 notice of proposed period outside the above-defined scope. Order 13132 (64 FR 43255, August 10, rulemaking (NPRM) that proposed a This action will allow interested 1999); new Federal motor vehicle safety • persons additional time to review the Is not an economically significant standard (FMVSS) mandating supplemental information to prepare regulatory action based on health or installation of an Event Data Recorder and submit relevant comments. The safety risks subject to Executive Order (EDR) that meets NHTSA’s current EDR EPA will address all comments received 13045 (62 FR 19885, April 23, 1997); • standard in most light vehicles. At the on the original proposal and on this Is not a significant regulatory action time NHTSA published the NPRM, the supplemental action in our final action. subject to Executive Order 13211 (66 FR agency noted that a significant number 28355, May 22, 2001); VI. Incorporation by Reference • of light vehicles were being sold Is not subject to requirements of without EDRs, and said it believed a In this action, we are proposing to section 12(d) of the National mandate was needed. Today, EDRs are include in a final rule regulatory text Technology Transfer and Advancement installed on nearly all new light that includes incorporation by Act of 1995 (15 U.S.C. 272 note) because vehicles. In light of these changed reference. In accordance with the application of those requirements would circumstances, NHTSA believes that a requirements of 1 CFR 51.5, we are be inconsistent with the Act; and • mandate for today’s EDRs is no longer proposing to incorporate by reference Does not provide EPA with the necessary and withdrawal of the NPRM revisions to the Louisiana source- discretionary authority to address, as is therefore warranted. specific requirements as described in appropriate, disproportionate human DATES: the Proposed Action section above. We health or environmental effects, using The NPRM ‘‘Federal Motor have made, and will continue to make, practicable and legally permissible Vehicle Safety Standards; Event Data these documents generally available methods, under Executive Order 12898 Recorders,’’ RIN 2127–AK86, published electronically through (59 FR 7629, February 16, 1994). December 13, 2012 (77 FR 74144), is www.regulations.gov and in hard copy In addition, the SIP is not approved withdrawn as of February 8, 2019. at the EPA Region 6 office (please to apply on any Indian reservation land ADDRESSES: Electronic Access: You can contact Mr. Robert Imhoff for more or in any other area where EPA or an view and download related documents information). Indian tribe has demonstrated that a and public comments by going to the tribe has jurisdiction. In those areas of website https://www.regulations.gov. VII. Statutory and Executive Order Indian country, the proposed Enter the docket number NHTSA–2012– Reviews rulemaking does not have tribal 0177 in the search field. Under the Act, the Administrator is implications and will not impose FOR FURTHER INFORMATION CONTACT: For required to approve a SIP submission substantial direct costs on tribal technical issues, contact Ms. Carla Rush, that complies with the provisions of the governments or preempt tribal law as Office of Crashworthiness Standards, Act and applicable Federal regulations. specified by Executive Order 13175 (65 Telephone: 202–366–4583, Facsimile: 42 U.S.C. 7410(k); 40 CFR 52.02(a). FR 67249, November 9, 2000). 202–493–2739. For legal issues, contact Thus, in reviewing SIP submissions, Mr. Daniel Koblenz, Office of Chief EPA’s role is to approve state choices, List of Subjects in 40 CFR Part 52 Counsel, Telephone: 202–366–2992, provided that they meet the criteria of Environmental protection, Air Facsimile: 202–366–3820. The mailing the Act. Accordingly, this action merely pollution control, Incorporation by address for these officials is: National proposes to approve state law as Reference, Intergovernmental relations, Highway Traffic Safety Administration,
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1200 New Jersey Avenue SE, vehicles had some EDR capability. commenters, including trade Washington, DC 20590. NHTSA believed that the universal associations, vehicle manufacturers, SUPPLEMENTARY INFORMATION: installation of EDRs would improve safety and privacy advocacy groups, vehicle safety by aiding the agency in equipment suppliers, standards Background investigating potential safety defects development organizations, crash Event data recorders (EDRs) are an and developing new standards. Absent reconstructionists, attorney invaluable tool for aiding and validating a mandate, it appeared that organizations, and over 950 individuals. crash reconstruction, investigation, and manufacturers of the remaining 8 Safety advocacy organizations, crash analysis. An EDR is a function or device percent of light vehicles would not reconstructionists, and several other installed in a motor vehicle to record equip those vehicles with EDRs. Thus, commenting organizations generally technical information about the status the agency believed that a safety need supported mandating the installation of and operation of vehicle systems for a existed to mandate the installation of EDRs, citing the importance of the few seconds immediately before and EDRs on light vehicles. information for vehicle safety. Vehicle during a crash for the primary purpose manufacturers, equipment suppliers, NHTSA Decision To Withdraw the of post-crash assessment.1 EDRs are and some crash reconstructionists, were NPRM regulated under 49 CFR part 563. supportive of the idea of requiring Part 563 was established on August NHTSA has decided to withdraw the EDRs, but opposed placing the mandate 28, 2006 (71 FR 50998) and requires that December 2012 NPRM because the and associated EDR requirements in a light vehicles 2 equipped with EDRs agency has determined that a mandate FMVSS. In addition, a number of meet certain requirements for data is not necessary at this time to achieve individuals also supported the mandate, elements, data capture and format, data the nearly universal installation of EDRs though many indicated that their retrieval, and data crash survivability. on new light vehicles. This is because support was conditional on the An EDR as defined by Part 563 is not NHTSA’s internal analysis shows that, adoption of provisions to protect the required to record data such as audio or for Model Year (MY) 2017, 99.6 percent privacy of individuals. Other video recordings and does not log of new light vehicles sold were commenters urged NHTSA to expand commercial operator-associated data, equipped with EDRs that meet Part the list of required data elements in 3 such as hours of service. 563’s requirements. Given the near- order to better support traffic safety The requirements of Part 563 apply universal installation of EDRs in light research and thus, improve the safety of only to those light vehicles that are vehicles, NHTSA no longer believes that motor vehicles. voluntarily equipped with EDRs that the safety benefits of mandating EDRs The majority of comments raised a were manufactured on or after justifies the expenditure of limited variety of privacy concerns associated September 1, 2012. In the 2006 agency resources. with EDRs and the data they record. rulemaking, NHTSA chose not to Because NHTSA has determined not Many commenters seemed to believe mandate installation of EDRs in order to to move forward with a mandate for that Part 563 requires EDRs to encourage voluntary development and EDRs at this time, the agency is extensively record potentially sensitive installation, while alleviating costs on withdrawing the December 2012 NPRM driver-related information, such as manufacturers and consumers. The from consideration. However, the vehicle location or driving behavior, on agency stated at the time that the agency will continue its other efforts to ‘‘marketplace appears to be adopting an ongoing basis. This belief was modernize and improve EDRs incorrect. The agency recognizes the EDRs and we do not currently see a regulations, including fulfilling the need to mandate their installation.’’ 4 importance of privacy to consumer agency’s statutory mandate to acceptance of technology and that the The NPRM promulgate regulations establishing an agency has a legal obligation to assess On December 13, 2012, NHTSA appropriate recording duration for EDR and be transparent about the impacts of published a notice of proposed data to ‘‘provide accident investigators Federal activities on individual rulemaking (NPRM) proposing to with vehicle-related information privacy.7 Part 563 requires only that convert Part 563’s ‘‘if-installed’’ pertinent to crashes involving such EDRs capture a narrow set of data 6 requirements for EDRs into a new motor vehicles.’’ In addition, NHTSA elements that are designed to assist Federal motor vehicle safety standard is actively investigating whether the investigators with the reconstruction of (FMVSS) mandating installation of agency should consider revising the crashes, such as data relating to the EDRs in most light vehicles.5 The NPRM data elements covered by Part 563 to operational status of the vehicle at the did not propose making any changes to account for advanced safety features. time of the crash.8 Moreover, Part 563 the current EDR regulation’s Note on Comments on the NPRM requires that EDRs capture this data to performance requirements, including the device or function only for the few those for the required data elements. At While NHTSA’s decision to withdraw seconds leading up to a rare event, the the time that NHTSA issued the NPRM, the NPRM was made for reasons deployment of air bags, (i.e., not on an the agency estimated that about 92 unrelated to the issues raised by ongoing basis). percent of model year (MY) 2010 light commenters, the agency believes it Second, many commenters expressed would be beneficial to the public to concerns with regard to who owns EDR 1 See 49 CFR 563.5. briefly describe and explain the data, who has access to EDR data and 2 As used in this notice, ‘‘light vehicles’’ includes agency’s views on some key concerns under what circumstances, and the passenger cars, multipurpose passenger vehicles, due to the large number of comments purposes for which it may be used. trucks, and buses with a gross vehicle weight rating received on them. NHTSA believes that Congress resolved (GVWR) of 3,855 kilograms (kg) (8,500 pounds) or In response to the December 2012 less and an unloaded vehicle weight of 2,495 kg many of these concerns when it enacted (5,500 pounds) or less, except for walk-in van-type NPRM, NHTSA received over 1,000 trucks or vehicles designed to be sold exclusively comments from a wide variety of 7 See E-Government Act of 2002, Public Law 107– to the U.S. Postal Service. See 49 CFR part 563.3. 347, 208, 116 Stat. 2899, 2921–23; Consolidated 3 49 CFR 563.5. 6 See the Fixing America’s Surface Transportation Appropriations Act, 2005, Public Law 108–447, 4 71 FR 50998, 51011 (Aug. 28, 2006). (FAST) Act Public Law 114–94 (Dec. 4, 2015), § 522, 118 Stat. 2809, 3268–69. 5 77 FR 74144 (Dec. 13, 2012). Section 24303. 8 49 CFR 563, Tables I & II.
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the Driver Privacy Act of 2015 (DPA), lessee, unless access falls into one of vehicle manufacturers that choose to part of the Fixing America’s Surface several enumerated exceptions.11 equip their vehicles with EDRs include Transportation (FAST) Act,9 which Finally, many of the privacy-related a standardized statement in the owner’s addresses issues of EDR data ownership comments requested that NHTSA manual indicating that the vehicle is and access. Specifically, the DPA states mandate consumer notification of the equipped with an EDR and describing that EDR data are the ‘‘property of the existence of EDRs. NHTSA agrees with the functions and capabilities of the owner, or, in the case of a leased commenters that ensuring consumer EDR.12 awareness is an important goal. A vital vehicle, the lessee of the motor vehicle Issued on February 5, 2019 in Washington, tool the agency uses to inform in which the event data recorder is DC, under authority delegated in 49 CFR 1.95 consumers about the existence and installed.’’ 10 It also specifies that data and 501.5. function of various aspects of motor recorded or transmitted by an EDR is vehicles, including the existence of and Heidi Renate King, accessible only to the vehicle owner or function of EDRs, is the owner’s manual Deputy Administrator. that accompanies motor vehicles sold in [FR Doc. 2019–01651 Filed 2–7–19; 8:45 am] 9 Public Law 114–94, §§ 24301–24302, 129 Stat. the U.S. Part 563 currently requires that BILLING CODE 4910–59–P 1312, 1713–14 (2015). 10 Id. 11 See id. 12 49 CFR 563.11.
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Notices Federal Register Vol. 84, No. 27
Friday, February 8, 2019
This section of the FEDERAL REGISTER displays a currently valid OMB control accountability for program compliance contains documents other than rules or number. and to detect fraud and abuse would be proposed rules that are applicable to the severely jeopardized. public. Notices of hearings and investigations, Food and Nutrition Service Description of Respondents: Business committee meetings, agency decisions and Title: Supplemental Nutrition for-and-not-for-profit, Farms; Federal rulings, delegations of authority, filing of Assistance Program—Store Military Commissaries. petitions and applications and agency Applications. Number of Respondents: 143,357. statements of organization and functions are OMB Control Number: 0584–0008. Frequency of Responses: Reporting: examples of documents appearing in this Summary of Collection: Section 9(a) section. On occasion. of the Food and Nutrition Act of 2008 Total Burden Hours: 20,004. as amended, (7 U.S.C. 2018 et seq.) Food and Nutrition Service DEPARTMENT OF AGRICULTURE requires that the Food and Nutrition Service (FNS) provide for the Title: Evaluation of Supplemental Submission for OMB Review; submission of applications for approval Nutrition Assistance Program (SNAP) Comment Request by retailers, wholesalers, meal service Employment and Training (E&T) Pilots. providers, certain types of group homes, OMB Control Number: 0584–0604. February 5, 2019. shelters, and state-contracted Summary of Collection: The SNAP The Department of Agriculture has restaurants that wish to participate in Employment and Training (E&T) submitted the following information the Supplemental Nutrition Program program provides assistance to collection requirement(s) to OMB for (SNAP). FNS is responsible for unemployed and underemployed clients review and clearance under the reviewing the application in order to in the form of job search, job skills Paperwork Reduction Act of 1995, determine whether or not applicants training, education (basic, post- Public Law 104–13. Comments are meet eligibility requirements, and make secondary, vocational), work experience requested regarding (1) whether the determinations whether to grant or deny or training and workfare. The collection of information is necessary authorization to accept and redeem Agriculture Act of 2014 (Pub. L. 113–79, for the proper performance of the SNAP benefits. FNS will collect Section 4022), authorized grants for up functions of the agency, including information using forms FNS–252, to 10 pilot sites to develop and whether the information will have Supplemental Nutrition Assistance rigorously test innovative SNAP E&T practical utility; (2) the accuracy of the Program Application for Store, FNS– strategies for engaging more SNAP work agency’s estimate of burden including 252–E, On line Supplemental Nutrition registrants in employment, increasing the validity of the methodology and Assistance Program Application for participants’ earnings and reducing assumptions used; (3) ways to enhance Store, FNS 252–2, Supplemental reliance on public assistance. the quality, utility and clarity of the Nutrition Assistance Program for Meal Need and Use of the Information: An information to be collected; and (4) Service Application, FNS–252–C, evaluation of the pilot sites will be ways to minimize the burden of the Corporate Supplemental Application, critical in helping Congress and FNS collection of information on those who and FNS 252–R, Supplemental identify strategies that effectively assist are to respond, including through the Nutrition Assistance Program for Stores SNAP participants to succeed in the use of appropriate automated, Reauthorization and FNS–252FE, labor market and become self-sufficient. electronic, mechanical, or other Supplemental Nutrition Assistance The data collected for this evaluation technological collection techniques or Program Farmer’s Market Application. will be used for implementation, other forms of information technology. Need and Use of the Information: FNS impact, participant and cost-benefit Comments regarding this information will collect information to determine analyses for each pilot site. collection received by March 11, 2019 the eligibility of retail food stores, Description of Respondents: will be considered. Written comments wholesale food concern, and food Individual/Households; Business for- should be addressed to: Desk Officer for service organizations applying for not-for-Profit; State, Local, or Tribal Agriculture, Office of Information and authorization to accept and redeem Government. Regulatory Affairs, Office of SNAP benefits and to monitor these Number of Respondents: 53,830. Management and Budget (OMB), OIRA_ firms for continued eligibility, and to Frequency of Responses: Reporting: [email protected] or fax (202) sanction stores for noncompliance with Annually. 395–5806 and to Departmental the Act, and for Program management. Total Burden Hours: 17,965. Clearance Office, USDA, OCIO, Mail Disclosure of information other than Ruth Brown, Stop 7602, Washington, DC 20250– Employer Identification Numbers and Departmental Information Collection 7602. Copies of the submission(s) may Social Security Numbers may be made Clearance Officer. be obtained by calling (202) 720–8958. to Federal and State law enforcement or [FR Doc. 2019–01615 Filed 2–7–19; 8:45 am] An agency may not conduct or investigative agencies or sponsor a collection of information instrumentalities administering or BILLING CODE 3410–30–P unless the collection of information enforcing specified Federal or State displays a currently valid OMB control laws, or regulations issued under those number and the agency informs laws. Without the information on the COMMISSION ON CIVIL RIGHTS potential persons who are to respond to application or reauthorization Notice of Public Meeting of the West the collection of information that such application, the consequence to the Virginia Advisory Committee persons are not required to respond to Federal program is the Agency’s the collection of information unless it reduced ability to effectively monitor AGENCY: Commission on Civil Rights.
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ACTION: Announcement of meeting. information may contact the Eastern FOR FURTHER INFORMATION CONTACT: Regional Office at (202) 376–7533. Barbara De la Viez at [email protected] or SUMMARY: Notice is hereby given, Records and documents discussed by phone at 202–376–7533. pursuant to the provisions of the rules during the meeting will be available for and regulations of the U.S. Commission public viewing as they become available SUPPLEMENTARY INFORMATION: Interested on Civil Rights (Commission), and the at: https://www.facadatabase.gov/ members of the public may listen to the Federal Advisory Committee Act FACA/FACAPublicViewCommittee discussion by calling the following toll- (FACA) that a meeting of the West Details?id=a10t0000001gzmCAAQ; free conference call-in number: 1–877– Virginia Advisory Committee to the click the ‘‘Meeting Details’’ and 260–1479 and conference call 7886261. Commission will convene by conference ‘‘Documents’’ links. Records generated Please be advised that before placing call at 12 p.m. (EST) on Friday, from this meeting may also be inspected them into the conference call, the February 15, 2019. The purpose of the and reproduced at the Eastern Regional conference call operator will ask callers meeting is to discuss plans for preparing Office, as they become available, both to provide their names, their the Committee report on the collateral before and after the meetings. Persons organizational affiliations (if any), and consequences of a felony record on West interested in the work of this advisory email addresses (so that callers may be Virginians’ access to employment, committee are advised to go to the notified of future meetings). Callers can housing, professional licenses and Commission’s website, www.usccr.gov, expect to incur charges for calls they public benefits. or to contact the Eastern Regional Office initiate over wireless lines, and the DATES: Friday, February 15, 2019 at 12 at the above phone number, email or Commission will not refund any p.m. EST. street address. incurred charges. Callers will incur no Public Call-in Information: Agenda charge for calls they initiate over land- Conference call-in number: 1–855–719– line connections to the toll-free 5012 and conference call ID number: February 15, 2019 at 12:00 p.m. (EST) conference call-in number. 5938398. I. Rollcall Persons with hearing impairments II. Welcome FOR FURTHER INFORMATION CONTACT: Ivy may also follow the discussion by first III. Project Planning Discussion Davis at [email protected] or by phone at IV. Other Business calling the Federal Relay Service at 1– 202–376–7533. V. Open Comments 800–977–8339 and providing the SUPPLEMENTARY INFORMATION: Interested VI. Adjourn operator with the toll-free conference members of the public may listen to the Exceptional Circumstance: Pursuant call-in number: 1–877–260–1479 and discussion by calling the following toll- to 41 CFR 102–3.150, the notice for this conference call 7886261. free conference call-in number: 1–855– meeting is given less than 15 calendar Members of the public are invited to 719–5012 and conference call ID days prior to the meeting because of the make statements during the open number: 5938398. Please be advised that exceptional circumstances of the federal comment period of the meeting or before being placed into the conference government shutdown. submit written comments. The call, the conference call operator will Dated: February 4, 2019. comments must be received in the ask callers to provide their names, their David Mussatt, regional office approximately 30 days organizational affiliations (if any), and after each scheduled meeting. Written email addresses (so that callers may be Supervisory Chief, Regional Programs Unit. comments may be mailed to the Eastern notified of future meetings). Callers can [FR Doc. 2019–01558 Filed 2–7–19; 8:45 am] Regional Office, U.S. Commission on expect to incur charges for calls they BILLING CODE P initiate over wireless lines, and the Civil Rights, 1331 Pennsylvania Commission will not refund any Avenue, Suite 1150, Washington, DC incurred charges. Callers will incur no COMMISSION ON CIVIL RIGHTS 20425, faxed to (202) 376–7548, or charge for calls they initiate over land- emailed to Evelyn Bohor at ero@ Notice of Public Meeting of the line connections to the toll-free usccr.gov. Persons who desire Vermont Advisory Committee conference call-in number. additional information may contact the Persons with hearing impairments AGENCY: Commission on Civil Rights. Eastern Regional Office at (202) 376– 7533. may also follow the discussion by first ACTION: Announcement of meeting. calling the Federal Relay Service at 1– Records and documents discussed 888–364–3109 and providing the SUMMARY: Notice is hereby given, during the meeting will be available for operator with the toll-free conference pursuant to the provisions of the rules public viewing as they become available call-in number: 1–855–719–5012 and and regulations of the U.S. Commission at https://www.facadatabase.gov/FACA/ conference call ID number: 5788080. on Civil Rights (Commission), and the FACAPublicViewCommitteeDetails? Members of the public are invited to Federal Advisory Committee Act id=a10t0000001gzmXAAQ, click the make statements during the Public (FACA), that a meeting of the Vermont ‘‘Meeting Details’’ and ‘‘Documents’’ Comments section of the Agenda. They Advisory Committee to the Commission links. Records generated from this will convene by conference call at 11:00 are also invited to submit written meeting may also be inspected and a.m. (EST) on: Monday, February 11, comments, which must be received in reproduced at the Eastern Regional 2019. The purpose of the meeting is to the regional office approximately 30 Office, as they become available, both discuss planning community forums in days after the scheduled meeting. before and after the meetings. Persons Written comments may be mailed to the Brattleboro and Rutland and briefing in interested in the work of this advisory Eastern Regional Office, U.S. Montpelier on disparities in schools. committee are advised to go to the Commission on Civil Rights, 1331 DATES: Monday, February 11, 2019, at Commission’s website, www.usccr.gov, Pennsylvania Avenue, Suite 1150, 11:00 a.m. EST. Washington, DC 20425 or emailed to Public Call-In Information: or to contact the Eastern Regional Office Corrine Sanders at [email protected]. Conference call-in number: 1–877–260– at the above phone numbers, email or Persons who desire additional 1479 and conference call 7886261. street address.
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Agenda room. Callers can expect to incur regular (FACA), that a meeting of the New York charges for calls they initiate over Advisory Committee to the Commission Monday, February 11, 2019 at 11:00 wireless lines, according to their will convene by conference call at 12 a.m. (EST) wireless plan. The Commission will not p.m. (EST) on: Friday, February 15, • Rollcall refund any incurred charges. Callers 2019. The purpose of the meeting is to • Discussion of Community Forums and will incur no charge for calls they discuss civil rights topics for committee Briefing in Vermont initiate over land-line connections to study. • Next Steps the toll-free telephone number. Persons • DATES: Friday, February 15, 2019 at 12 Other Business with hearing impairments may also p.m. EST. • Open Comment • follow the proceedings by first calling Public Call–in Information: Adjourn the Federal Relay Service at 1–800–877– Conference call-in number: 1–855–719– Exceptional Circumstance: Pursuant 8339 and providing the Service with the 5012 and conference ID# 5850663. to 41 CFR 102–3.150, the notice for this conference call number and conference FOR FURTHER INFORMATION CONTACT: meeting is given less than 15 calendar ID number. David Barreras, at [email protected] days prior to the meeting because of the Members of the public are also or by phone at 312–353–8311. exceptional circumstances of the entitled to submit written comments; SUPPLEMENTARY INFORMATION: Interested Federal Government shutdown. the comments must be received in the members of the public may listen to the Dated: February 4, 2019 regional office within 30 days following discussion by calling the following toll- David Mussatt, the meeting. Written comments may be free conference call-in number: 1–855– mailed to the Regional Programs Unit Supervisory Chief, Regional Programs Unit. 719–5012 and conference ID# 5850663. Office, U.S. Commission on Civil Rights, [FR Doc. 2019–01587 Filed 2–7–19; 8:45 am] Please be advised that before placing 230 S Dearborn, Suite 2120, Chicago, IL BILLING CODE P them into the conference call, the 60604. They may also be faxed to the conference call operator will ask callers Commission at (312) 353–8324, or to provide their names, their COMMISSION ON CIVIL RIGHTS emailed to Carolyn Allen at callen@ organizational affiliations (if any), and usccr.gov. Persons who desire email addresses (so that callers may be Notice of Public Meeting of the Ohio additional information may contact the notified of future meetings). Callers can Advisory Committee to the U.S. Regional Programs Unit Office at (312) expect to incur charges for calls they Commission on Civil Rights 353–8311. initiate over wireless lines, and the Records generated from this meeting Commission will not refund any AGENCY: U.S. Commission on Civil may be inspected and reproduced at the incurred charges. Callers will incur no Rights. Regional Programs Unit Office, as they charge for calls they initiate over land- ACTION: Announcement of meeting. become available, both before and after line connections to the toll-free the meeting. Records of the meeting will conference call-in number. SUMMARY: Notice is hereby given, be available via www.facadatabase.gov pursuant to the provisions of the rules Persons with hearing impairments under the Commission on Civil Rights, may also follow the discussion by first and regulations of the U.S. Commission Ohio Advisory Committee link. Persons on Civil Rights (Commission) and the calling the Federal Relay Service at 1– interested in the work of this Committee 800–977–8339 and providing the Federal Advisory Committee Act that are also directed to the Commission’s the Ohio Advisory Committee operator with the toll-free conference website, http://www.usccr.gov, or may call-in number: 1–855–719–5012 and (Committee) will hold a meeting via contact the Regional Programs Unit teleconference on Wednesday, February conference ID# 5850663. office at the above email or street Members of the public are invited to 27, 2019, from 12–1 p.m. EST for the address. purpose of reviewing received make statements during the open testimony and planning for future Agenda comment period of the meetings or testimony on education funding in the Welcome and Roll Call submit written comments. The state. Discussion: Education Funding in Ohio comments must be received in the regional office approximately 30 days DATES: The meeting will be held on Public Comment after each scheduled meeting. Written Wednesday, February 27, 2019, at 12:00 Adjournment comments may be mailed to the p.m. EST. Dated: February 4, 2019. Midwest Regional Office, U.S. Public Call Information: Dial: 855– David Mussatt, 719–5012, Conference ID: 6812888. Commission on Civil Rights, 230 S Supervisory Chief, Regional Programs Unit. Dearborn Street, Suite 2120, Chicago, IL FOR FURTHER INFORMATION CONTACT: [FR Doc. 2019–01563 Filed 2–7–19; 8:45 am] 60604, faxed to (312) 353–8324, or Melissa Wojnaroski, DFO, at BILLING CODE P emailed to David Barreras at dbarreras@ [email protected] or 312–353– usccr.gov. Persons who desire 8311. additional information may contact the SUPPLEMENTARY INFORMATION: Members COMMISSION ON CIVIL RIGHTS Midwest Regional Office at (312) 353– of the public can listen to the 8311. discussion. This meeting is available to Notice of Public Meetings of the New Records and documents discussed the public through the above listed toll York Advisory Committee during the meeting will be available for free number. An open comment period AGENCY: Commission on Civil Rights. public viewing as they become available will be provided to allow members of ACTION: Announcement of meetings. at https://database.faca.gov/committee/ the public to make a statement as time meetings.aspx?cid=265; click the allows. The conference call operator SUMMARY: Notice is hereby given, ‘‘Meeting Details’’ and ‘‘Documents’’ will ask callers to identify themselves, pursuant to the provisions of the rules links. Records generated from this the organization they are affiliated with and regulations of the U.S. Commission meeting may also be inspected and (if any), and an email address prior to on Civil Rights (Commission), and the reproduced at the Eastern Regional placing callers into the conference Federal Advisory Committee Act Office, as they become available, both
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before and after the meetings. Persons organizational affiliations (if any), and Dated: February 4, 2019. interested in the work of this advisory email addresses (so that callers may be David Mussatt, committee are advised to go to the notified of future meetings). Callers can Supervisory Chief, Regional Programs Unit. Commission’s website, www.usccr.gov, expect to incur charges for calls they [FR Doc. 2019–01557 Filed 2–7–19; 8:45 am] or to contact the Midwest Regional initiate over wireless lines, and the BILLING CODE P Office at the above phone numbers, Commission will not refund any email or street address. incurred charges. Callers will incur no charge for calls they initiate over land- Agenda COMMISSION ON CIVIL RIGHTS line connections to the toll-free Friday, February 15, 2019 conference call-in number. Invitation for Membership on Advisory Committees • Open—Roll Call Persons with hearing impairments • may also follow the discussion by first Discussion of and vote on Study AGENCY: calling the Federal Relay Service at 1– United States Commission on Topics Civil Rights. • Open Comment 800–877–8339 and providing the ACTION: • Adjourn operator with the toll-free conference Notice of Request for call-in number: 800–949–2175 and Applications. Exceptional Circumstance: Pursuant conference call ID number: 8426059. to 41 CFR 102–3.150, the notice for this Members of the public are invited to SUMMARY: Congress has mandated the meeting is given less than 15 calendar United States Commission on Civil days prior to the meeting because of the make statements during the Public Comment section of the meeting or to Rights (Commission) create advisory exceptional circumstances of the federal committees (committees) in all 50 states government shutdown. submit written comments. The statements must be received in the and the District of Columbia. These Dated: February 4, 2019. regional office approximately 30 days committees assist in the examination of David Mussatt, after the scheduled meeting. Written civil rights issues and policies by Supervisory Chief, Regional Programs Unit. comments may be mailed to the Eastern conducting public meetings to hear testimony and by providing reports with [FR Doc. 2019–01567 Filed 2–7–19; 8:45 am] Regional Office, U.S. Commission on findings and recommendations to the BILLING CODE P Civil Rights, 1331 Pennsylvania Avenue, Suite 1150, Washington, DC Commission in accordance with the 20425, or emailed to Corrine Sanders at provisions of the Federal Advisory COMMISSION ON CIVIL RIGHTS [email protected]. Persons who desire Committee Act (FACA). The additional information may phone the Commission is requesting applications Notice of Public Meeting of the Eastern Regional Office at (202) 376– to those advisory committees whose Pennsylvania Advisory Committee 7533. members’ terms expire in the next 12 months and to those advisory AGENCY: Commission on Civil Rights. Records and documents discussed during the meeting will be available for committees in need of interim ACTION: Announcement of meeting. public viewing as they become available appointments. The Commission is at: https://www.facadatabase.gov/ accepting applications and appointing SUMMARY: Notice is hereby given, members for four-year terms for the pursuant to the provisions of the rules FACA/FACAPublicViewCommittee Details?id=a10t0000001gzjZAAQ; click following 12 advisory committees: and regulations of the U.S. Commission Virginia, Kentucky, Oregon, South on Civil Rights (Commission), and the the ‘‘Meeting Details’’ and ‘‘Documents’’ links. Records generated from this Carolina, Illinois, Massachusetts, South Federal Advisory Committee Act Dakota, Wisconsin, Maryland, West (FACA) that a meeting of the meeting may also be inspected and reproduced at the Eastern Regional Virginia, Georgia, and Maine. The Pennsylvania Advisory Committee to Commission is also accepting the Commission will convene by Office, as they become available, both before and after the meeting. Persons applications to fill the remaining of the conference call at 11:30 a.m. (EST) on terms for the following 6 advisory Tuesday, February 12, 2019. The interested in the work of this advisory committee are advised to go to the committees: California, Idaho, Indiana, purpose of the meeting is to discuss and Iowa, Washington, and Wyoming. vote on the topic for its civil rights Commission’s website, www.usccr.gov, project. or to contact the Eastern Regional Office DATES: Applications for membership on at the above phone number, email or the Virginia Advisory Committee should DATES: Tuesday, February 12, 2019, at street address. be received no later than March 7, 2019. 11:30 a.m. (EDT). Applications for membership on the Public Call-in Information: Agenda Kentucky, Oregon, and South Carolina Conference call-in number: 800–949– Tuesday, February 12, 2019 Advisory Committees should be 2175 and conference call ID number: received no later than April 16, 2019. 8426059. I. Rollcall II. Welcome Applications for membership on the FOR FURTHER INFORMATION CONTACT: Ivy III. Project Planning Illinois, Massachusetts, South Dakota, Davis at [email protected] or by phone at —Discuss and Vote on Topic for and Wisconsin Advisory Committee 202–376–7533. Committee’s Civil Rights Project should be received no later than May SUPPLEMENTARY INFORMATION: Interested IV. Other Business 16, 2019. members of the public may listen to the V. Public Comments Applications for membership on the discussion by calling the following toll- VI. Adjourn Maryland and West Virginia Advisory free conference call-in number: 800– Exceptional Circumstance: Pursuant Committees should be received no later 949–2175 and conference call ID to 41 CFR 102–3.150, the notice for this than August 17, 2019. number: 8426059. Please be advised that meeting is given less than 15 calendar Applications for membership on the before placing them into the conference days prior to the meeting because of the Georgia and Maine Advisory call, the conference call operator will exceptional circumstances of the federal Committees should be received no later ask callers to provide their names, their government shutdown. than January 14, 2020.
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Applications for membership on the 5. Member Designation information listed above. Any interested California, Idaho, Indiana, Iowa, Members serve as unpaid Special member of the public may call this Washington, and Wyoming Advisory Government Employees who are number and listen to the meeting. An Committees will be received until all reimbursed for travel and expenses. As open comment period will be provided interim appointments are made. Special Government Employees, to allow members of the public to make ADDRESSES: Applications for all Advisory Committee members must a statement to the Committee as time advisory committees must be submitted follow the executive branch’s ethics allows. The conference call operator through the following website: https:// rules, which includes submitting a will ask callers to identify themselves, www.surveymonkey.com/r/S7WCLL6. conflicts form and notifying the organization they are affiliated with The applications will be received by the Commission staff of any financial (if any), and an email address prior to Regional Programs Unit, 230 South conflicts with a proposed topic the placing callers into the conference Dearborn St., Suite 2120, Chicago, IL committee is evaluating. Members also room. Callers can expect to incur regular 60604. must take an annual ethics training. charges for calls they initiate over wireless lines, according to their FOR FURTHER INFORMATION CONTACT: 6. Application Requirements wireless plan. The Commission will not David Mussatt, Supervisory Chief, refund any incurred charges. Callers Regional Programs Unit, 230 South To be eligible to be on an advisory committee, applicants must be residents will incur no charge for calls they Dearborn St., Suite 2120, Chicago, IL initiate over land-line connections to 60604, (312) 353–8311. Questions can of the respective state or district, and have demonstrated expertise or interest the toll-free telephone number. Persons also be directed via email to dmussatt@ with hearing impairments may also usccr.gov. in civil rights issues. All applicants must complete the on-line application follow the proceedings by first calling SUPPLEMENTARY INFORMATION: form found at https:// the Federal Relay Service at 1–800–877– 1. Background www.surveymonkey.com/r/S7WCLL6. 8339 and providing the Service with the conference call number and conference Congress has mandated that the U.S. The Commission invites any individual who is eligible to be appointed a ID number. Commission on Civil Rights’ establish Members of the public are also an advisory committee in each of the 50 member of an advisory committee covered by this notice to apply. entitled to submit written comments; states and the District of Columbia. See the comments must be received in the 42 U.S.C. 1975a. These committees Dated: February 4, 2019. regional office within 30 days following operate under the provisions of the David Mussatt, the meeting. Written comments may be Federal Advisory Committee Act, as Supervisory Chief, Regional Programs Unit. mailed to the Midwestern Regional amended, 5 U.S.C. Appendix 2. [FR Doc. 2019–01574 Filed 2–7–19; 8:45 am] Office, U.S. Commission on Civil Rights, 2. Scope of Advisory Committee Duties BILLING CODE P 230 South Dearborn St., Suite 2120, Chicago, IL 60604. They may also be The committees advise the faxed to the Commission at (312) 353– Commission on matters in its respective COMMISSION ON CIVIL RIGHTS 8324, or emailed to Carolyn Allen at locale regarding alleged deprivations of [email protected]. Persons who desire voting rights or discrimination or Notice of Public Meeting of the Illinois additional information may contact the denials of the equal protection of the Advisory Committee to the U.S. Midwestern Regional Office at (312) laws because of race, color, religion, sex, Commission on Civil Rights 353–8311. age, disability, or national origin, or in AGENCY: Records generated from this meeting the administration of justice. U.S. Commission on Civil Rights. may be inspected and reproduced at the Committees advise the Commission by Midwestern Regional Office, as they ACTION: Announcement of meeting. conducting public meetings to hear become available, both before and after testimony from diverse experts, SUMMARY: Notice is hereby given, the meeting. Records of the meeting will government officials, advocacy groups, pursuant to the provisions of the rules be available via www.facadatabase.gov individuals directly impacted, and and regulations of the U.S. Commission under the Commission on Civil Rights, members of the general public. on Civil Rights (Commission) and the Illinois Advisory Committee link. Committees then forward their advice Federal Advisory Committee Act that Persons interested in the work of this and recommendations to the the Illinois Advisory Committee Committee are directed to the Commission. (Committee) will hold a meeting on Commission’s website, http:// 3. Member Term and Responsibilities Tuesday, February 19, 2019, at 12 p.m. www.usccr.gov, or may contact the CST for the purpose of discussing the Midwestern Regional Office at the above Each advisory committee consists of implementation of the Committee’s email or street address. not more than 19 members, each of study of fair housing issues. whom will serve a four-year term. Agenda Members are expected to attend DATES: The meeting will be held on Tuesday, February 19, 2019, at 12 p.m. I. Welcome and Roll Call approximately four meetings per year II. Approval of Minutes and make a meaningful contribution to CST. III. Discussion on Implementing the Project the committee’s work. Public Call Information: Dial: 855– on Fair Housing 719–5012. Conference ID: 5793230. IV. Public Comment 4. Member Selection FOR FURTHER INFORMATION CONTACT: V. Next Steps The Commission appoints members to Alejandro Ventura, Designated Federal VI. Adjournment advisory committees at their regularly Official, at [email protected] or 213– Exceptional Circumstance: Pursuant scheduled business meetings. Every 894–3437. to 41 CFR 102–3.150, the notice for this effort is made to ensure diverse points SUPPLEMENTARY INFORMATION: Members meeting is given less than 15 calendar of view are represented on each of the public may listen to the days prior to the meeting because of the committee. The Commission also discussion. This meeting is available to exceptional circumstances of the federal appoints the chair of each committee. the public through the call in government shutdown.
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Dated: February 4, 2019. 1401 Constitution Avenue NW, Zone Board, grantee of FTZ 271, David Mussatt, Washington, DC 20230–0002, and in the requesting subzone status for the facility Supervisory Chief, Regional Programs Unit. ‘‘Reading Room’’ section of the Board’s of Hartland Controls, LLC (Hartland), [FR Doc. 2019–01559 Filed 2–7–19; 8:45 am] website, which is accessible via located in Rock Falls, Illinois. The BILLING CODE P www.trade.gov/ftz. application was submitted pursuant to For further information, contact the provisions of the Foreign-Trade Christopher Wedderburn at Zones Act, as amended (19 U.S.C. 81a– [email protected] or (202) DEPARTMENT OF COMMERCE 81u), and the regulations of the Board 482–1963. (15 CFR part 400). It was formally Foreign-Trade Zones Board Dated: February 4, 2019. docketed on February 4, 2019. Andrew McGilvray, The proposed subzone (4.973 acres) is [B–01–2019] located at 805, 807 and 809 Antec Road, Executive Secretary. Rock Falls, Whiteside County, Illinois. Foreign-Trade Zone (FTZ) 193— [FR Doc. 2019–01661 Filed 2–7–19; 8:45 am] No authorization for production activity Clearwater, Florida; Notification of BILLING CODE 3510–DS–P has been requested at this time. The Proposed Production Activity; Catalent proposed subzone would be subject to Pharma Solutions, LLC; the existing activation limit of FTZ 271. DEPARTMENT OF COMMERCE (Pharmaceutical Products); St. In accordance with the Board’s Petersburg, Florida Foreign-Trade Zones Board regulations, Elizabeth Whiteman of the Catalent Pharma Solutions, LLC FTZ Staff is designated examiner to [B–54–2018] (Catalent) submitted a notification of review the application and make recommendations to the Executive proposed production activity to the FTZ Foreign-Trade Zone (FTZ) 75— Secretary. Board for its facility in St. Petersburg, Phoenix, Arizona; Authorization of Public comment is invited from Florida. The notification conforming to Production Activity; Microchip interested parties. Submissions shall be the requirements of the regulations of Technology, Inc.; (Semiconductor addressed to the Board’s Executive the FTZ Board (15 CFR 400.22) was Devices and Related Products); Secretary at the address below. The received on January 30, 2019. Chandler and Tempe, Arizona Catalent’s facility is located within closing period for their receipt is March Subzone 193A. The facility is used to On August 28, 2018, Microchip 20, 2019. Rebuttal comments in produce certain pharmaceutical Technology, Inc. submitted a response to material submitted during products. Pursuant to 15 CFR 400.14(b), notification of proposed production the foregoing period may be submitted FTZ activity would be limited to the activity to the FTZ Board for its facility during the subsequent 15-day period to specific foreign-status materials and within Subzone 75H, in Chandler and April 4, 2019. components and specific finished Tempe, Arizona. A copy of the application will be products described in the submitted The notification was processed in available for public inspection at the notification (as described below) and accordance with the regulations of the Office of the Executive Secretary, subsequently authorized by the FTZ FTZ Board (15 CFR part 400), including Foreign-Trade Zones Board, Room Board. notice in the Federal Register inviting 21013, U.S. Department of Commerce, Production under FTZ procedures public comment (83 FR 45094, 1401 Constitution Avenue NW, could exempt Catalent from customs September 5, 2018). On February 4, Washington, DC 20230–0002, and in the duty payments on the foreign-status 2019, the applicant was notified of the ‘‘Reading Room’’ section of the Board’s components used in export production. FTZ Board’s decision that no further website, which is accessible via On its domestic sales, Catalent would be review of the activity is warranted at www.trade.gov/ftz. able to choose the duty rate during this time. The production activity For further information, contact customs entry procedures that applies to described in the notification was Elizabeth Whiteman at tafamidis pharmaceutical capsules (duty authorized, subject to the FTZ Act and [email protected] or (202) free) in finished product and bulk form the FTZ Board’s regulations, including 482–0473. for the foreign-status input noted below. Section 400.14. Dated: February 4, 2019. Catalent would be able to avoid duty on Dated: February 4, 2019. Andrew McGilvray, foreign-status material which becomes Andrew McGilvray, Executive Secretary. scrap/waste. Customs duties also could Executive Secretary. [FR Doc. 2019–01662 Filed 2–7–19; 8:45 am] possibly be deferred or reduced on [FR Doc. 2019–01663 Filed 2–7–19; 8:45 am] BILLING CODE 3510–DS–P foreign-status production equipment. The material/component sourced BILLING CODE 3510–DS–P from abroad is tafamidis—active DEPARTMENT OF COMMERCE pharmaceutical ingredient (duty rate DEPARTMENT OF COMMERCE 6.5%). Foreign-Trade Zones Board Public comment is invited from Foreign-Trade Zones Board interested parties. Submissions shall be [B–53–2018] [S–8–2019] addressed to the Board’s Executive Foreign-Trade Zone (FTZ) 127—West Secretary at the address below. The Foreign-Trade Zone 271—Jo-Daviess & Columbia, South Carolina; closing period for their receipt is March Carroll Counties, Illinois; Application Authorization of Production Activity; 20, 2019. for Subzone; Hartland Controls, LLC; Constantia Blythewood, LLC; (Flexible A copy of the notification will be Rock Falls, Illinois Packaging and Engineered Industrial available for public inspection at the Films); Blythewood, South Carolina Office of the Executive Secretary, An application has been submitted to Foreign-Trade Zones Board, Room the Foreign-Trade Zones Board (the On August 27, 2018, the Richland- 21013, U.S. Department of Commerce, Board) by the Jo-Carroll Foreign Trade Lexington Airport District, Columbia
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Metropolitan Airport, grantee of FTZ President issued Proclamations 9704 Background 127, submitted a notification of and 9705 concurring with the findings On November 15, 2018, Commerce proposed production activity to the FTZ of the two investigation reports published its final determination in the Board on behalf of Constantia submitted by the Secretary of Commerce less-than-fair-value (LTFV) investigation Blythewood, LLC, within Subzone 127E, pursuant to section 232 of the Trade of common alloy sheet from China.1 On in Blythewood, South Carolina. The Expansions Act of 1962 (19 U.S.C. 1862) January 30, 2019, the ITC notified notification was subsequently amended and determining that adjusting imports Commerce of its final determination, to remove a finished product and through the imposition of duties on pursuant to section 735(b)(1)(A)(i) of the several components on October 9, 2018. aluminum and steel is necessary so that Tariff Act of 1930, as amended (the Act), The notification was processed in imports of aluminum and steel will no that an industry in the United States is accordance with the regulations of the longer threaten to impair the national materially injured within the meaning FTZ Board (15 CFR part 400), including security. of section 735(b)(1)(A)(i) of the Act, by Affected Public: Business or other for- notice in the Federal Register inviting reason of the LTFV imports of common profit organizations. public comment (83 FR 44859, alloy sheet from China.2 Further, the September 4, 2018). On February 4, Frequency: On Occasion. Respondent’s Obligation: Voluntary. ITC determined that critical 2019, the applicant was notified of the circumstances do not exist with respect FTZ Board’s decision that no further This information collection request may be viewed at reginfo.gov: http:// to imports of common alloy sheet from review of the amended activity is China. warranted at this time. The production www.reginfo.gov/public/. Follow the activity described in the amended instructions to view Department of Scope of the Order Commerce collections currently under notification was authorized, subject to The product covered by this order is the FTZ Act and the FTZ Board’s review by OMB. Written comments and common alloy sheet from China. For a regulations, including Section 400.14. recommendations for the proposed complete description of the scope of this Dated: February 4, 2019. information collection should be sent order, see the Appendix to this notice. Andrew McGilvray, within 30 days of publication of this Antidumping Duty Order Executive Secretary. notice to OIRA_Submission@ omb.eop.gov. On January 30, 2019, in accordance [FR Doc. 2019–01664 Filed 2–7–19; 8:45 am] with sections 735(b)(1)(A)(i) and 735(d) BILLING CODE 3510–DS–P Sheleen Dumas, of the Act, the ITC notified Commerce Departmental Lead PRA Officer, Office of the of its final determination in this Chief Information Officer, Commerce DEPARTMENT OF COMMERCE investigation, in which it found that Department. imports of common alloy sheet are Bureau of Industry and Security [FR Doc. 2019–01592 Filed 2–7–19; 8:45 am] materially injuring a U.S. industry.3 BILLING CODE 3510–33–P Therefore, in accordance with section Submission for OMB Review; 735(c)(2) of the Act, we are publishing Comment Request; Procedures for this AD order. Submitting Request for Objections DEPARTMENT OF COMMERCE As a result of the ITC’s final From the Section 232 National Security determination, in accordance with International Trade Administration Adjustments of Imports of Aluminum section 736(a)(1) of the Act, Commerce and Steel [A–570–073] will direct U.S. Customs and Border Protection (CBP) to assess, upon further The Department of Commerce will Common Alloy Aluminum Sheet From instruction by Commerce, antidumping submit to the Office of Management and the People’s Republic of China: duties on unliquidated entries of subject Budget (OMB) for clearance the Antidumping Duty Order merchandise from China entered, or following proposal for collection of AGENCY: Enforcement and Compliance, withdrawn from warehouse, for information under the provisions of the consumption on or after June 22, 2018, Paperwork Reduction Act (44 U.S.C. International Trade Administration, Department of Commerce. the date on which Commerce published chapter 35). its preliminary antidumping duty SUMMARY: Based on affirmative final Agency: Bureau of Industry and determination in the Federal Register,4 determinations by the Department of Security. and before November 4, 2018, the Title: Procedures for Submitting Commerce (Commerce) and the International Trade Commission (ITC), Request for Objections from the Section 1 See Antidumping Duty Investigation of Common 232 National Security Adjustments of Commerce is issuing an antidumping Alloy Aluminum Sheet from the People’s Republic Imports of Aluminum and Steel. duty (AD) order on common alloy of China: Affirmative Final Determination of Sales Form Number(s): N/A. aluminum sheet (common alloy sheet) at Less-Than-Fair Value, 83 FR 57421 (November OMB Control Number: 0694–0138. from the People’s Republic of China 15, 2018) (Final Determination). 2 Type of Review: Regular submission. See ITC Notification Letter to the Deputy (China). Assistant Secretary for Enforcement and Estimated Total Annual Burden DATES: Applicable February 8, 2019. Compliance, referencing ITC Investigation Nos. Hours: 155,124. 701–TA–591 and 731–TA–1399, dated January 30, FOR FURTHER INFORMATION CONTACT: Estimated Number of Respondents: 2019 (ITC Notification). 38,781. Scott Hoefke or Julie Geiger, AD/CVD 3 See ITC Notification; see also Common Alloy Estimated Time per Response: 4 Operations, Office VI, Enforcement and Aluminum Sheet from China (Inv. Nos. 701–TA– 591 and 731–TA–1399 (Final), USITC Publication hours. Compliance, International Trade Administration, U.S. Department of 4861, December 2018). Needs and Uses: This collection of 4 See Antidumping Duty Investigation of Common information supports Presidential Commerce, 1401 Constitution Avenue Alloy Aluminum Sheet from the People’s Republic Proclamations 9704 Adjusting Imports NW, Washington, DC 20230; telephone of China: Affirmative Preliminary Determination of of Aluminum into the United States and (202) 482–4947 and (202) 482–2057, Sales at Less-Than-Fair Value, Preliminary respectively. Affirmative Determination of Critical Circumstance, 9705 Adjusting Imports of Steel into the 83 FR 29088 (June 22, 2018) (Preliminary United States. On March 8, 2018, the SUPPLEMENTARY INFORMATION: Determination).
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effective date on which Commerce of publication of the ITC’s final injury date of publication of the preliminary instructed CBP to discontinue the determination in the Federal Register, determinations, ended on December 18, suspension of liquidation in accordance we will instruct CBP to require, at the 2018. Pursuant to section 737(b) of the with section 733(d) of the Act. Section same time as importers would normally Act, the collection of cash deposits at 733(d) of the Act states that the deposit estimated duties on this the rates listed below will begin on the suspension of liquidation pursuant to a merchandise, a cash deposit equal to the date of publication of the ITC’s final preliminary determination may not cash deposit rates listed below. These injury determination. remain in effect for more than four instructions suspending liquidation will Therefore, in accordance with section months. Therefore, entries of subject remain in effect until further notice. The 733(d) of the Act, Commerce will merchandise from China made on or all-others rate applies to all producers or instruct CBP to terminate the after November 4, 2018, and prior to the exporters not specifically listed, as suspension of liquidation and to date of publication of the ITC’s final appropriate. liquidate, without regard to determination in the Federal Register Provisional Measures antidumping duties, unliquidated are not liable for the assessment of entries of common alloy sheet from antidumping duties due to Commerce’s Section 733(d) of the Act states that China entered, or withdrawn from discontinuation of the suspension of the suspension of liquidation pursuant warehouse, for consumption after liquidation. to an affirmative preliminary determination may not remain in effect December 18, 2018, the date on which Suspension of Liquidation for more than four months, except the provisional measures expired, In accordance with section where exporters representing a through the day preceding the date of 735(c)(1)(B) of the Act, Commerce will significant proportion of exports of the publication of the ITC’s final injury direct CBP to continue to suspend subject merchandise request Commerce determinations in the Federal Register. liquidation on all relevant entries of to extend that four-month period to no Suspension of liquidation will resume subject merchandise from China, more than six months. At the request of on the date of publication of the ITC’s effective the date of publication of the exporters that account for a significant final determination in the Federal ITC’s notice of final determination in proportion of common alloy sheet from Register. the Federal Register, and to assess, China, we extended the four-month Estimated Weighted-Average Dumping upon further instruction by Commerce period to six months. Commerce’s Margins pursuant to section 735(c)(1)(B) of the preliminary determination was Act, cash deposits equal to the amounts published on June 22, 2018. Therefore, The estimated weighted-average AD as indicated below. On or after the date the extended period, beginning on the margins are as follows:
Cash deposit Weighted- adjusted for Exporter Producer average subsidy margin offset (percent) (percent)
Henan Mingtai Al Industrial Co., Ltd./Zhengzhou Henan Mingtai Al Industrial Co., Ltd./Zhengzhou 49.85 49.85 Mingtai Industry Co., Ltd. Mingtai Industry Co., Ltd. Alcha International Holdings Limited ...... Jiangsu Alcha Aluminium Co., Ltd ...... 49.85 49.85 Alumax Composite Material (Jiangyin) Co., Ltd ...... Chalco Ruimin Co., Ltd ...... 49.85 49.85 Granges Aluminum (Shanghai) Co., Ltd ...... Granges Aluminum (Shanghai) Co., Ltd ...... 49.85 49.85 Henan Founder Beyond Industry Co., Ltd ...... Henan Xintai Aluminum Industry Co., Ltd ...... 49.85 49.85 Huafon Nikkei Aluminium Corporation ...... Huafon Nikkei Aluminium Corporation ...... 49.85 49.85 Jiangsu Lidao New Material Co., Ltd ...... Henan Jinyang Luyue Co., Ltd ...... 49.85 49.85 Jiangsu Lidao New Material Co., Ltd ...... Jiangsu Zhong He Aluminum Co., Ltd ...... 49.85 49.85 Jiangyin Litai Ornamental Materials Co., Ltd ...... Jiangyin Litai Ornamental Materials Co., Ltd ...... 49.85 49.85 Jiangyin New Alumax Composite Material Co. Ltd ...... Chalco Ruimin Co., Ltd ...... 49.85 49.85 Shandong Fuhai Industrial Co., Ltd ...... Shandong Fuhai Industrial Co., Ltd ...... 49.85 49.85 Tianjin Zhongwang Aluminium Co., Ltd ...... Tianjin Zhongwang Aluminium Co., Ltd ...... 49.85 49.85 Xiamen Xiashun Aluminum Foil Co., Ltd ...... Xiamen Xiashun Aluminum Foil Co., Ltd ...... 49.85 49.85 Yantai Jintai International Trade Co., Ltd ...... Shandong Nanshan Aluminium Co., Ltd ...... 49.85 49.85 Yinbang Clad Material Co., Ltd ...... Yinbang Clad Material Co., Ltd ...... 49.85 49.85 Zhengzhou Silverstone Limited ...... Henan Zhongyuan Aluminum Co., Ltd ...... 49.85 49.85 Zhengzhou Silverstone Limited ...... Luoyang Xinlong Aluminum Co., Ltd ...... 49.85 49.85 Zhengzhou Silverstone Limited ...... Shanghai Dongshuo Metal Trade Co., Ltd ...... 49.85 49.85 Zhengzhou Silverstone Limited ...... Zhengzhou Mingtai Industry Co., Ltd ...... 49.85 49.85
China-Wide Entity 5 ...... 59.72 59.72
Critical Circumstances imports of common alloy sheet from ordered, or withdrawn from warehouse, China, we will instruct CBP to lift for consumption on or after March 24, With regard to the ITC’s negative suspension and to refund any cash 2018 (i.e., 90 days prior to the date of critical circumstances determination on deposits made to secure the payment of publication of the Preliminary estimated antidumping duties with Determination), but before June 22, 2018 5 The China-wide entity also includes the respect to entries of subject merchandise following companies that filed separate rate (i.e., the date of publication of the applications: Nanjie Resources Co., Limited, Yong Preliminary Determination). Jie New Material Co., Ltd., and Zhejiang Yongjie Ruimin Co., Ltd.; CHALCO–SWA Cold Rolling Co., Aluminum Co., Ltd., Zhejiang GKO Aluminium Ltd.; Luoyang Wanji Aluminium Processing Co., Stock Co., Ltd.; Alnan Aluminium Inc.; Chalco Ltd.; and Wanji Global (Singapore) PTE. LTD.
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Notification to Interested Parties 7606.11.3060, 7606.11.6000, 7606.12.3090, in accordance with the Federal 7606.12.6000, 7606.91.3090, 7606.91.6080, This notice constitutes the AD order Advisory Committee Act, as amended (5 7606.92.3090, and 7606.92.6080. Further, U.S.C. App.), on July 14, 2010. The with respect to common alloy sheet merchandise that falls within the scope of from China pursuant to section 736(a) of REEEAC was re-chartered most recently this order may also be entered into the on June 7, 2018. The REEEAC provides the Act. Interested parties can find a list United States under HTSUS subheadings of AD orders currently in effect at 7606.11.3030, 7606.12.3030, 7606.91.3060, the Secretary of Commerce with https://enforcement.trade.gov/stats/ 7606.91.6040, 7606.92.3060, 7606.92.6040, consensus advice from the private sector iastats1.html. 7607.11.9090. Although the HTSUS on the development and administration This order is issued and published in subheadings are provided for convenience of programs and policies to expand the accordance with section 736(a) of the and customs purposes, the written export competitiveness of U.S. Act and 19 CFR 351.211. description of the scope of this order is renewable energy and energy efficiency dispositive. products and services. More information Dated: February 5, 2019. [FR Doc. 2019–01836 Filed 2–6–19; 4:15 pm] regarding the REEEAC is available Christian Marsh, BILLING CODE 3510–DS–P online at http://export.gov/reee/reeeac. Deputy Assistant Secretary for Enforcement On February 28, 2019, the REEEAC and Compliance. will hold the second in-person meeting Appendix DEPARTMENT OF COMMERCE of its current charter term. The Committee, with officials from the Scope of the Order International Trade Administration Department of Commerce and other The merchandise covered by this order is agencies, will discuss major issues aluminum common alloy sheet (common Renewable Energy and Energy affecting the competitiveness of the U.S. alloy sheet), which is a flat-rolled aluminum Efficiency Advisory Committee; renewable energy and energy efficiency product having a thickness of 6.3 mm or less, Meeting industries, hold subcommittee work but greater than 0.2 mm, in coils or cut-to- length, regardless of width. Common alloy AGENCY: International Trade sessions to discuss draft sheet within the scope of this order includes Administration, U.S. Department of recommendations, and hear about new both not clad aluminum sheet, as well as Commerce. U.S. government financing initiatives. multi-alloy, clad aluminum sheet. With An agenda will be made available by ACTION: Notice of an open meeting. respect to not clad aluminum sheet, common February 22, 2019 upon request. alloy sheet is manufactured from a 1XXX-, SUMMARY: The Renewable Energy and The meeting will be open to the 3XXX-, or 5XXX-series alloy as designated by Energy Efficiency Advisory Committee public and will be accessible to people the Aluminum Association. With respect to with disabilities. All guests are required multi-alloy, clad aluminum sheet, common (REEEAC or the Committee) will hold a alloy sheet is produced from a 3XXX-series meeting on Thursday, February 28, 2019 to register in advance by the deadline core, to which cladding layers are applied to at the U.S. Department of Commerce identified under the DATE caption. either one or both sides of the core. Herbert C. Hoover Building in Requests for auxiliary aids must be Common alloy sheet may be made to Washington, DC. The meeting is open to submitted by the registration deadline. ASTM specification B209–14, but can also be the public with registration instructions Last minute requests will be accepted made to other specifications. Regardless of provided below. but may be impossible to fill. specification, however, all common alloy A limited amount of time before the DATES: February 28, 2019, from sheet meeting the scope description is close of the meeting will be available for approximately 9 a.m. to 5 p.m. Eastern included in the scope. Subject merchandise oral comments from members of the includes common alloy sheet that has been Standard Time (EST). Members of the public attending the meeting. To further processed in a third country, public wishing to participate must accommodate as many speakers as including but not limited to annealing, register in advance with Victoria possible, the time for public comments tempering, painting, varnishing, trimming, Gunderson at the contact information cutting, punching, and/or slitting, or any will be limited to two to five minutes below by 5 p.m. EST on Friday, other processing that would not otherwise per person (depending on number of February 22, 2019 in order to pre- remove the merchandise from the scope of public participants). Individuals register, including any requests to make the order if performed in the country of wishing to reserve speaking time during manufacture of the common alloy sheet. comments during the meeting or for the meeting must contact Ms. Excluded from the scope of this order is accommodations or auxiliary aids. Gunderson and submit a brief statement aluminum can stock, which is suitable for ADDRESSES: To register, please contact use in the manufacture of aluminum of the general nature of the comments, beverage cans, lids of such cans, or tabs used Victoria Gunderson, Designated Federal as well as the name and address of the to open such cans. Aluminum can stock is Officer, Office of Energy and proposed participant, by 5 p.m. EST on produced to gauges that range from 0.200 mm Environmental Industries (OEEI), Friday, February 22, 2019. If the number to 0.292 mm, and has an H–19, H–41, H–48, Industry and Analysis, International of registrants requesting to make or H–391 temper. In addition, aluminum can Trade Administration, U.S. Department statements is greater than can be stock has a lubricant applied to the flat of Commerce at (202) 482–7890; email: reasonably accommodated during the surfaces of the can stock to facilitate its [email protected]. movement through machines used in the meeting, the International Trade manufacture of beverage cans. Aluminum FOR FURTHER INFORMATION CONTACT: Administration may conduct a lottery to can stock is properly classified under Victoria Gunderson, Designated Federal determine the speakers. Speakers are Harmonized Tariff Schedule of the United Officer, Office of Energy and requested to submit a copy of their oral States (HTSUS) subheadings 7606.12.3045 Environmental Industries (OEEI), comments by email to Ms. Gunderson and 7606.12.3055. Industry and Analysis, International for distribution to the participants in Where the nominal and actual Trade Administration, U.S. Department advance of the meeting. measurements vary, a product is within the of Commerce at (202) 482–7890; email: Any member of the public may scope if application of either the nominal or [email protected]. submit written comments concerning actual measurement would place it within the scope based on the definitions set for the SUPPLEMENTARY INFORMATION: the REEEAC’s affairs at any time before above. Background: The Secretary of or after the meeting. Comments may be Common alloy sheet is currently Commerce established the REEEAC submitted to the Renewable Energy and classifiable under HTSUS subheadings pursuant to discretionary authority and Energy Efficiency Advisory Committee,
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c/o: Victoria Gunderson, Designated Respondent Selection selection. Parties are requested to (a) Federal Officer, Office of Energy and In the event Commerce limits the identify which companies subject to Environmental Industries, U.S. number of respondents for individual review previously were collapsed, and Department of Commerce, 1401 examination for administrative reviews (b) provide a citation to the proceeding Constitution Avenue NW, Mail Stop: initiated pursuant to requests made for in which they were collapsed. Further, 28018, Washington, DC 20230. To be the orders identified below, except for if companies are requested to complete considered during the meeting, public the administrative review of the a Quantity and Value Questionnaire for comments must be transmitted to the antidumping duty order on wooden purposes of respondent selection, in REEEAC prior to the meeting. As such, bedroom furniture from the People’s general each company must report written comments must be received no Republic of China and the reviews of volume and value data separately for later than 5 p.m. EST on Friday, the antidumping duty orders on certain itself. Parties should not include data February 22, 2019. Comments received crystalline silicon photovoltaic products for any other party, even if they believe after that date will be distributed to the from Taiwan and the People’s Republic they should be treated as a single entity members but may not be considered at of China, Commerce intends to select with that other party. If a company was the meeting. respondents based on U.S. Customs and collapsed with another company or Copies of REEEAC meeting minutes Border Protection (CBP) data for U.S. companies in the most recently will be available within 30 days imports during the period of review. We completed segment of a proceeding following the meeting. intend to release the CBP data under where Commerce considered collapsing Administrative Protective Order (APO) that entity, complete quantity and value Dated: February 4, 2019. data for that collapsed entity must be Man Cho, to all parties having an APO within five days of publication of the initiation submitted. Deputy Director, Office of Energy and Environmental Industries. notice and to make our decision Deadline for Withdrawal of Request for regarding respondent selection within Administrative Review [FR Doc. 2019–01560 Filed 2–7–19; 8:45 am] 21 days of publication of the initiation BILLING CODE 3510–DR–P Pursuant to 19 CFR 351.213(d)(1), a Federal Register notice. Therefore, we party that requests a review may encourage all parties interested in withdraw that request within 90 days of DEPARTMENT OF COMMERCE commenting on respondent selection to the date of publication of the notice of submit their APO applications on the initiation of the requested review. The International Trade Administration date of publication of the initiation regulation provides that Commerce may notice, or as soon thereafter as possible. extend this time if it is reasonable to do Antidumping or Countervailing Duty Commerce invites comments regarding so. Determinations by Commerce to Order, Finding, or Suspended the CBP data and respondent selection extend the 90-day deadline will be Investigation; Opportunity To Request within five days of placement of the made on a case-by-case basis. Administrative Review CBP data on the record of the review. In the event Commerce decides it is Deadline for Particular Market AGENCY: Enforcement and Compliance, necessary to limit individual Situation Allegation International Trade Administration, examination of respondents and Section 504 of the Trade Preferences Department of Commerce. conduct respondent selection under Extension Act of 2015 amended the Act section 777A(c)(2) of the Act: FOR FURTHER INFORMATION CONTACT: by adding the concept of particular In general, Commerce finds that Brenda E. Brown, Office of AD/CVD market situation (PMS) for purposes of determinations concerning whether Operations, Customs Liaison Unit, constructed value under section 773(e) particular companies should be Enforcement and Compliance, of the Act.1 Section 773(e) of the Act ‘‘collapsed’’ (i.e., treated as a single International Trade Administration, states that ‘‘if a particular market entity for purposes of calculating U.S. Department of Commerce, 1401 situation exists such that the cost of antidumping duty rates) require a Constitution Avenue NW, Washington, materials and fabrication or other substantial amount of detailed DC 20230, telephone: (202) 482–4735. processing of any kind does not information and analysis, which often accurately reflect the cost of production Background require follow-up questions and in the ordinary course of trade, the analysis. Accordingly, Commerce will administering authority may use Each year during the anniversary not conduct collapsing analyses at the month of the publication of an another calculation methodology under respondent selection phase of a review this subtitle or any other calculation antidumping or countervailing duty and will not collapse companies at the order, finding, or suspended methodology.’’ When an interested respondent selection phase unless there party submits a PMS allegation pursuant investigation, an interested party, as has been a determination to collapse defined in section 771(9) of the Tariff to section 773(e) of the Act, Commerce certain companies in a previous will respond to such a submission Act of 1930, as amended (the Act), may segment of this antidumping proceeding request, in accordance with 19 CFR consistent with 19 CFR 351.301(c)(v). If (i.e., investigation, administrative Commerce finds that a PMS exists under 351.213, that the Department of review, new shipper review or changed Commerce (Commerce) conduct an section 773(e) of the Act, then it will circumstances review). For any modify its dumping calculations administrative review of that company subject to a review, if antidumping or countervailing duty appropriately. Commerce determined, or continued to Neither section 773(e) of the Act nor order, finding, or suspended treat, that company as collapsed with 19 CFR 351.301(c)(v) set a deadline for investigation. others, Commerce will assume that such the submission of PMS allegations and All deadlines for the submission of companies continue to operate in the supporting factual information. comments or actions by Commerce same manner and will collapse them for However, in order to administer section discussed below refer to the number of respondent selection purposes. calendar days from the applicable Otherwise, Commerce will not collapse 1 See Trade Preferences Extension Act of 2015, starting date. companies for purposes of respondent Public Law 114–27, 129 Stat. 362 (2015).
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773(e) of the Act, Commerce must may request administrative review of 62293) for a list of relevant antidumping receive PMS allegations and supporting the following orders, findings, or duty proceedings. factual information with enough time to suspended investigations, with Countervailing Duty Proceedings for consider the submission. Thus, should anniversary dates in December, January December 2018 an interested party wish to submit a and February for the following periods. PMS allegation and supporting new With regard to properly filed requests Please see the notice of opportunity to factual information pursuant to section for review that have already been filed request administrative reviews that 773(e) of the Act, it must do so no later for AD and CVD orders or suspension published on December 3, 2018 (83 FR than 20 days after submission of initial agreements with December or January 62293) for a list of relevant Section D responses. anniversary dates, Commerce will countervailing duty proceedings. Opportunity to Request a Review: Commerce exercised its discretion to consider such requests as timely filed. Suspension Agreements for December 2018 toll all deadlines affected by the partial Antidumping Duty Proceedings for federal government closure from December 2018 Please see the notice of opportunity to December 22, 2018, through the request administrative reviews that resumption of operations on January 29, Please see the notice of opportunity to published on December 3, 2018 (83 FR 2019.2 Accordingly, not later than request administrative reviews that 62293) for a list of relevant suspension February 28, 2019,3 interested parties published on December 3, 2018 (83 FR agreements.
Period of review
Suspension Agreements for December 2019 MEXICO: Sugar,4 C–201–846 ...... 1/1/18–12/31/18 Antidumping Duty Proceedings for January 2019 BELARUS: Carbon and Alloy Steel Wire Rod, A–822–806 ...... 9/12/17–12/31/18 BRAZIL: Prestressed Concrete Steel Wire Strand, A–351–837 ...... 1/1/18–12/31/18 CANADA: Softwood Lumber, A–122–857 ...... 6/30/17–12/31/18 INDIA: Prestressed Concrete Steel Wire Strand, A–533–828 ...... 1/1/18–12/31/18 MEXICO: Prestressed Concrete Steel Wire Strand, A–201–831 ...... 1/1/18–12/31/18 REPUBLIC OF KOREA: Prestressed Concrete Steel Wire Strand, A–580–852 ...... 1/1/18–12/31/18 RUSSIA: Carbon and Alloy Steel Wire Rod, A–821–824 ...... 9/12/17–12/31/18 SOUTH AFRICA: Ferrovanadium, A–791–815 ...... 1/1/18–12/31/18 THAILAND: Prestressed Concrete Steel Wire Strand, A–549–820 ...... 1/1/18–12/31/18 THE PEOPLE’S REPUBLIC OF CHINA: Calcium Hypochlorite, A–570–008 ...... 1/1/18–12/31/18 Carbon and Certain Alloy Steel Wire Rod, A–570–012 ...... 1/1/18–12/31/18 Crepe Paper Products, A–570–895 ...... 1/1/18–12/31/18 Ferrovanadium, A–570–873 ...... 1/1/18–12/31/18 Folding Gift Boxes, A–570–866 ...... 1/1/18–12/31/18 Hardwood Plywood Products, A–570–051 ...... 6/23/17–12/31/18 Potassium Permanganate, A–570–001 ...... 1/1/18–12/31/18 Wooden Bedroom Furniture, A–570–890 ...... 1/1/18–12/31/18 UNITED ARAB EMIRATES: Carbon and Alloy Steel Wire Rod, A–520–808 ...... 9/12/17–12/31/18 ARGENTINA: Biodiesel, C–357–821 ...... 8/28/17–12/31/18 CANADA: Softwood Lumber, C–122–858 ...... 4/28/17–12/31/18 INDONESIA: Biodiesel, C–560–831 ...... 8/28/17–12/31/18 THE PEOPLE’S REPUBLIC OF CHINA: Calcium Hypochlorite, C–570–009 ...... 1/1/18–12/31/18 Carbon and Certain Alloy Steel Wire Rod, C–570–013 ...... 1/1/18–12/31/18 Circular Welded Carbon Quality Steel Line Pipe, C–570–936 ...... 1/1/18–12/31/18 Hardwood Plywood Products, C–570–052 ...... 4/25/17–12/31/18 Oil Country Tubular Goods, C–570–944 ...... 1/1/18–12/31/18 Tool Chests and Cabinets, C–570–057 ...... 9/15/17–12/31/18 Suspension Agreements for January 2019 RUSSIA: Certain Cut-To-Length Carbon Steel Plate, A–821–808 ...... 1/1/18–12/31/18 Antidumping Duty Proceedings for February 2019 BRAZIL: Carbon and Alloy Steel Cut-to-Length Plate, A–351–847 ...... 2/1/18–1/31/19 FRANCE: Uranium, A–427–818 ...... 2/1/18–1/31/19 INDIA: Certain Cut-To-Length Carbon-Quality Steel Plate, A–533–817 ...... 2/1/18–1/31/19 Certain Preserved Mushrooms, A–533–813 ...... 2/1/18–1/31/19 Frozen Warmwater Shrimp, A–533–840 ...... 2/1/18–1/31/19 Stainless Steel Bar, A–533–810 ...... 2/1/18–1/31/19 INDONESIA: Certain Cut-To-Length Carbon-Quality Steel Plate, A–560–805 ...... 2/1/18–1/31/19 Certain Preserved Mushrooms, A–560–802 ...... 2/1/18–1/31/19
2 See Memorandum to the Record from Gary Shutdown of the Federal Government,’’ dated 4 In the notice of opportunity to request Taverman, Deputy Assistant Secretary for January 28, 2019. administrative reviews that published on December Antidumping and Countervailing Duty Operations, 3 Or the next business day, if the deadline falls 3, 2018 (83 FR 62293) Commerce listed the performing the non-exclusive functions and duties on a weekend, federal holiday or any other day incorrect period of review for the CVD Sugar from of the Assistant Secretary for Enforcement and Mexico case. The correct period of review is listed when Commerce is closed. Compliance, ‘‘Deadlines Affected by the Partial in this notice.
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Period of review
ITALY: Stainless Steel Butt-Weld Pipe Fittings, A–475–828 ...... 2/1/18–1/31/19 JAPAN: Carbon Steel Butt-Weld Pipe Fittings, A–588–602 ...... 2/1/18–1/31/19 Stainless Steel Bar, A–588–833 ...... 2/1/18–1/31/19 MALAYSIA: Stainless Steel Butt-Weld Pipe Fittings, A–557–809 ...... 2/1/18–1/31/19 MEXICO: Large Residential Washers, A–201–842 ...... 2/1/18–1/31/19 PHILIPPINES: Stainless Steel Butt-Weld Pipe Fittings, A–565–801 ...... 2/1/18–1/31/19 REPUBLIC OF KOREA: Certain Cut-To-Length Carbon-Quality Steel Plate, A–580–836 ...... 2/1/18–1/31/19 Large Residential Washers, A–580–868 ...... 2/1/18–1/31/19 SOCIALIST REPUBLIC OF VIETNAM: Frozen Warmwater Shrimp, A–552–802 ...... 2/1/18–1/31/19 Steel Wire Garment Hangers, A–552–812 ...... 2/1/18–1/31/19 Utility Scale Wind Towers, A–552–814 ...... 2/1/18–1/31/19 SOUTH AFRICA: Carbon and Alloy Steel Cut-To-Length Plate, A–791–822 ...... 2/1/18–1/31/19 TAIWAN: Crystalline Silicon Photovoltaic Products, A–583–853 ...... 2/1/18–1/31/19 THAILAND: Frozen Warmwater Shrimp, A–549–822 ...... 2/1/18–1/31/19 THE PEOPLE’S REPUBLIC OF CHINA: Certain Preserved Mushrooms, A–570–851 ...... 2/1/18–1/31/19 Crystalline Silicon Photovoltaic Products, A–570–010 ...... 2/1/18–1/31/19 Frozen Warmwater Shrimp, A–570–893 ...... 2/1/18–1/31/19 Heavy Forged Hand Tools, With or Without Handles, A–570–803 ...... 2/1/18–1/31/19 Large Residential Washers, A–570–033 ...... 2/1/18–1/31/19 Small Diameter Graphite Electrodes, A–570–929 ...... 2/1/18–1/31/19 Uncovered Innerspring Units, A–570–928 ...... 2/1/18–1/31/19 Utility Scale Wind Towers, A–570–981 ...... 2/1/18–1/31/19 TURKEY: Carbon and Alloy Steel Cut-To-Length Plate, A–489–828 ...... 2/1/18–1/31/19 INDIA: Certain Cut-To-Length Carbon-Quality Steel Plate, C–533–818 ...... 1/1/18–12/31/18 Prestressed Concrete Steel Wire Strand, C–533–829 ...... 1/1/18–12/31/18 Cold-Drawn Mechanical Tubing, C–533–874 ...... 9/25/17–12/31/18 INDONESIA: Certain Cut-To-Length Carbon-Quality Steel Plate, C–560–806 ...... 1/1/18–12/31/18 REPUBLIC OF KOREA: Certain Cut-To-Length Carbon-Quality Steel Plate, C–580–837 ...... 1/1/18–12/31/18 Large Residential Washers, C–580–869 ...... 1/1/18–12/31/18 SOCIALIST REPUBLIC OF VIETNAM: Steel Wire Garment Hangers, C–552–813 ...... 1/1/18–12/31/18 THE PEOPLE’S REPUBLIC OF CHINA: Cold-Drawn Mechanical Tubing, C–570–059 ...... 9/25/17–12/31/18 Crystalline Silicon Photovoltaic Products, C–570–011 ...... 1/1/18–12/31/18 Utility Scale Wind Towers, C–570–982 ...... 1/1/18–12/31/18
Suspension Agreements for February origin is subject to a separate order, then Antidumping Duties, 76 FR 65694 2019 the interested party must state (October 24, 2011), Commerce clarified specifically, on an order-by-order basis, its practice with respect to the None. which exporter(s) the request is collection of final antidumping duties In accordance with 19 CFR intended to cover. on imports of merchandise where 351.213(b), an interested party as Note that, for any party Commerce intermediate firms are involved. The defined by section 771(9) of the Act may was unable to locate in prior segments, public should be aware of this request in writing that the Secretary Commerce will not accept a request for clarification in determining whether to conduct an administrative review. For an administrative review of that party request an administrative review of both antidumping and countervailing absent new information as to the party’s merchandise subject to antidumping duty reviews, the interested party must location. Moreover, if the interested findings and orders.5 specify the individual producers or party who files a request for review is exporters covered by an antidumping unable to locate the producer or Commerce no longer considers the finding or an antidumping or exporter for which it requested the non-market economy (NME) entity as an countervailing duty order or suspension review, the interested party must exporter conditionally subject to an agreement for which it is requesting a provide an explanation of the attempts antidumping duty administrative review. In addition, a domestic it made to locate the producer or reviews.6 Accordingly, the NME entity interested party or an interested party exporter at the same time it files its will not be under review unless described in section 771(9)(B) of the Act request for review, in order for the Commerce specifically receives a must state why it desires the Secretary Secretary to determine if the interested request for, or self-initiates, a review of to review those particular producers or party’s attempts were reasonable, exporters. If the interested party intends pursuant to 19 CFR 351.303(f)(3)(ii). 5 See also the Enforcement and Compliance for the Secretary to review sales of As explained in Antidumping and website at http://trade.gov/enforcement/. merchandise by an exporter (or a Countervailing Duty Proceedings: 6 See Antidumping Proceedings: Announcement producer if that producer also exports Assessment of Antidumping Duties, 68 of Change in Department Practice for Respondent Selection in Antidumping Duty Proceedings and merchandise from other suppliers) FR 23954 (May 6, 2003), and Non- Conditional Review of the Nonmarket Economy which was produced in more than one Market Economy Antidumping Entity in NME Antidumping Duty Proceedings, 78 country of origin and each country of Proceedings: Assessment of FR 65963 (November 4, 2013).
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the NME entity.7 In administrative For the first administrative review of Research Fellowship (SURF) Program reviews of antidumping duty orders on any order, there will be no assessment for both Gaithersburg and Boulder merchandise from NME countries where of antidumping or countervailing duties locations. Students participating in the a review of the NME entity has not been on entries of subject merchandise program receive a fellowship which initiated, but where an individual entered, or withdrawn from warehouse, includes lodging arranged by the exporter for which a review was for consumption during the relevant agency. To coordinate the lodging, initiated does not qualify for a separate provisional-measures ‘‘gap’’ period of information is submitted by accepted rate, Commerce will issue a final the order, if such a gap period is students who require lodging during the decision indicating that the company in applicable to the period of review. program dates. The student information question is part of the NME entity. This notice is not required by statute is utilized for roommate matching based However, in that situation, because no but is published as a service to the on gender and common interests. The review of the NME entity was international trading community. information includes: Identification of conducted, the NME entity’s entries Dated: February 4, 2019. accepted laboratory, housing were not subject to the review and the James Maeder, requirement (yes or no), first name, last rate for the NME entity is not subject to Associate Deputy Assistant Secretary for name, dates requesting housing, gender, change as a result of that review Antidumping and Countervailing Duty roommate identification, name of (although the rate for the individual Operations performing the duties of Deputy academic institution of enrollment, exporter may change as a function of the Assistant Secretary for Antidumping and preferences (night owl, early bird, finding that the exporter is part of the Countervailing Duty Operations. neatness, smoking), and special NME entity). Following initiation of an [FR Doc. 2019–01660 Filed 2–7–19; 8:45 am] requests. antidumping administrative review BILLING CODE 3510–DS–P when there is no review requested of the II. Method of Collection NME entity, Commerce will instruct The information will be collected CBP to liquidate entries for all exporters DEPARTMENT OF COMMERCE electronically. Accepted students will not named in the initiation notice, receive a link to the Housing including those that were suspended at National Institute of Standards and Application administered on Google the NME entity rate. Technology Documents (a NIST approved platform). All requests must be filed The application must be completed by electronically in Enforcement and Proposed Information Collection; a required deadline. The provided link Compliance’s Antidumping and Comment Request; SURF Fellow will be inactive after the deadline. Countervailing Duty Centralized Housing Application III. Data Electronic Service System (ACCESS) on AGENCY: National Institute of Standards Enforcement and Compliance’s ACCESS and Technology (NIST), Department of OMB Control Number: New 8 website at http://access.trade.gov. Commerce. collection. 0693–XXXX. Further, in accordance with 19 CFR Form Number(s): None. ACTION: Notice. 351.303(f)(l)(i), a copy of each request Type of Review: Regular submission must be served on the petitioner and SUMMARY: The Department of (new information collection). each exporter or producer specified in Commerce, as part of its continuing Affected Public: Individuals or the request. effort to reduce paperwork and households. Commerce will publish in the Federal respondent burden, invites the general Estimated Number of Respondents: Register a notice of ‘‘Initiation of public and other Federal agencies to 220. Administrative Review of Antidumping take this opportunity to comment on Estimated Time per Response: 30 or Countervailing Duty Order, Finding, proposed and/or continuing information minutes. Estimated Total Annual Burden or Suspended Investigation’’ for collections, as required by the Hours: 110 hours. requests received by February 28, 2019. Paperwork Reduction Act of 1995. If Commerce does not receive, by Estimated Total Annual Cost to DATES: Written comments must be Public: $0. February 28, 2019, a request for review submitted on or before April 9, 2019. of entries covered by an order, finding, ADDRESSES: Direct all written comments IV. Request for Comments or suspended investigation listed in this to Jennifer Jessup, Departmental NIST invites comments on: (a) notice and for any of the periods Paperwork Clearance Officer, Whether the proposed collection of identified above, Commerce will Department of Commerce, Room 6616, information is necessary for the proper instruct CBP to assess antidumping or 1401 Constitution Avenue NW, performance of the functions of the countervailing duties on those entries at Washington, DC 20230 (or via the agency, including whether the a rate equal to the cash deposit of internet at [email protected]). information will have practical utility; estimated antidumping or FOR FURTHER INFORMATION CONTACT: (b) the accuracy of the agency’s estimate countervailing duties required on those Requests for additional information or of the burden (including hours and cost) entries at the time of entry, or copies of the information collection of the proposed collection of withdrawal from warehouse, for instrument and instructions should be information; (c) ways to enhance the consumption and to continue to collect directed to Dr. Brandi Toliver, NIST, quality, utility, and clarity of the the cash deposit previously ordered. 100 Bureau Drive, Stop 1090, information to be collected; and (d) Gaithersburg, MD 20899–1090, tel. (301) ways to minimize the burden of the 7 In accordance with 19 CFR 351.213(b)(1), parties should specify that they are requesting a review of 972–2371, or [email protected]. collection of information on entries from exporters comprising the entity, and to SUPPLEMENTARY INFORMATION: respondents, including through the use the extent possible, include the names of such of automated collection techniques or exporters in their request. I. Abstract other forms of information technology. 8 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; The purpose of this collection is to Comments submitted in response to Administrative Protective Order Procedures, 76 FR gather information requested on behalf this notice will be summarized and/or 39263 (July 6, 2011). of the NIST Summer Undergraduate included in the request for OMB
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approval of this information collection; exemptions; and, scheduling and other Management Council; telephone: (302) they also will become a matter of public issues. The Agenda is subject to change, 526–5255. The Council’s website, record. and the latest version will be posted at www.mafmc.org also has details on the www.npfmc.org prior to the meeting, meeting location, proposed agenda, Sheleen Dumas, along with meeting materials. webinar listen-in access, and briefing Department Lead PRA Officer, Office of the materials. Chief Information Officer, Commerce Public Comment SUPPLEMENTARY INFORMATION: The Department. Public comment letters will be following items are on the agenda, [FR Doc. 2019–01554 Filed 2–7–19; 8:45 am] accepted and should be submitted either though agenda items may be addressed BILLING CODE 3510–13–P electronically to www.meetings.npfmc. out of order (changes will be noted on org or through the mail: North Pacific the Council’s website when possible.) Fishery Management Council, 605 W DEPARTMENT OF COMMERCE 4th Ave., Suite 306, Anchorage, AK Wednesday, March 6, 2019 99501–2252. In-person oral public National Oceanic and Atmospheric Summary of Stock Assessment testimony will be accepted at the Administration Workshop/Stock Assessment Review discretion of the chair. RIN 0648–XG767 Committee 66 Special Accommodations Summer Flounder 2019–21 North Pacific Fishery Management These meetings are physically Specifications Council; Public Meeting accessible to people with disabilities. Review SSC, Monitoring Committee, Requests for sign language AGENCY: National Marine Fisheries staff, and Advisory Panel interpretation or other auxiliary aids Service (NMFS), National Oceanic and recommendations and adopt revised should be directed to Shannon Gleason Atmospheric Administration (NOAA), specifications for 2019 and new at (907) 271–2809 at least 7 working Commerce. specifications for 2020–21. days prior to the meeting date. ACTION: Notice of telephonic and in- Summer Flounder 2019 Recreational person meeting. Dated: February 5, 2019. Tracey L. Thompson, Measures SUMMARY: The North Pacific Fishery Acting Deputy Director, Office of Sustainable Review Monitoring Committee, staff, Management Council (Council) Trawl Fisheries, National Marine Fisheries Service. and Advisory Panel recommendations Electronic Monitoring Committee will [FR Doc. 2019–01608 Filed 2–7–19; 8:45 am] and recommend Conservation meet March 4, 2019 through March 5, BILLING CODE 3510–22–P Equivalency or coastwide management 2019. and associated measures for 2019. DATES: The meeting will be held on Summer Flounder Commercial Issues DEPARTMENT OF COMMERCE Monday, March 4, 2019, from 9 a.m. to and Goals and Objectives Amendment 5 p.m. and on Tuesday, March 5, 2019, from 9 a.m. to 5 p.m. (or as necessary), National Oceanic and Atmospheric Final action. Administration Pacific Standard Time. Thursday, March 7, 2019 ADDRESSES: The meeting will be held in RIN 0648–XG774 Interim 2020 Specifications for Black the Traynor Room, Building 4 at the Sea, Bass, Scup, and Bluefish Alaska Fisheries Science Center, 7600 Mid-Atlantic Fishery Management Sand Point Way NE, Seattle, WA 98115. Council (MAFMC); Public Meetings Adopt interim 2020 specifications. Teleconference number: (907) 245– AGENCY: National Marine Fisheries Black Sea Bass Management Reform 3900, Pin is 2809. Service (NMFS), National Oceanic and Council address: North Pacific Status of the joint working group and Atmospheric Administration (NOAA), a possible amendment. Fishery Management Council, 605 W Commerce. 4th Ave., Suite 306, Anchorage, AK ACTION: Kitty Hawk Wind Project 99501–2252; telephone: (907) 271–2809. Notice of public meetings. Chub Mackerel Amendment FOR FURTHER INFORMATION CONTACT: SUMMARY: The Mid-Atlantic Fishery Elizabeth Figus, Council staff; Management Council (Council) will Review public hearing comments and telephone: (907) 271–2801. hold public meetings of the Council and AP and Committee recommendations SUPPLEMENTARY INFORMATION: its Committees. and take final action. DATES: Agenda The meetings will be held Business Session Wednesday, March 6, 2019 through Monday, March 4, 2019 to Tuesday, Thursday, March 7, 2019. For agenda Committee Reports (SSC); Executive March 5, 2019 details, see SUPPLEMENTARY Director’s Report (Review and approve INFORMATION. current SSC membership); Organization The agenda will include: Updates Reports; and, Liaison Reports since the last meeting in November ADDRESSES: The meeting will be held at 2018; staff presentations about marine the Hilton Virginia Beach Oceanfront, Continuing and New Business mammals and EM, the Chordata 3001 Atlantic Ave., Virginia Beach, VA Although non-emergency issues not platform; reviewing edits to the white 23451; telephone: (757) 213–3000. contained in this agenda may come paper on retention and a data streams Council address: Mid-Atlantic Fishery before this group for discussion, in draft document, and lists of vessels Management Council, 800 N State St., accordance with the Magnuson-Stevens included in the research plans; Suite 201, Dover, DE 19901; telephone: Fishery Conservation and Management discussing funding development and (302) 674–2331. Act (Magnuson-Stevens Act), those timelines; planning for EFP FOR FURTHER INFORMATION CONTACT: issues may not be the subject of formal applications, a Commissioner’s Permit Christopher M. Moore, Ph.D., Executive action during these meetings. Actions from ADFG, and potential IPHC Director, Mid-Atlantic Fishery will be restricted to those issues
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specifically identified in this notice and 669–224–3412, enter the attendee phone DEPARTMENT OF COMMERCE any issues arising after publication of audio access code 504–836–765, and this notice that require emergency enter your audio phone pin (shown after National Oceanic and Atmospheric action under Section 305(c) of the joining the webinar). System Administration Magnuson-Stevens Act, provided the Requirements: For PC-based attendees: RIN 0648–XG 773 public has been notified of the Council’s Required: Windows® 10, 8, 7, Vista, or intent to take final action to address the XP; for Mac®-based attendees: Required: New England Fishery Management emergency. Mac OS® X 10.5 or newer; for mobile Council; Public Meeting attendees: Required: iPhone®, iPad®, Special Accommodations AndroidTM phone or Android tablet (see AGENCY: National Marine Fisheries These meetings are physically the https://www.gotomeeting.com/ Service (NMFS), National Oceanic and accessible to people with disabilities. webinar/ipad-iphone-android-webinar- Atmospheric Administration (NOAA), Requests for sign language apps). You may send an email to Mr. Commerce. interpretation or other auxiliary aid Kris Kleinschmidt or contact him at ACTION: Notice; public meeting. should be directed to M. Jan Saunders, 503–820–2411 for technical assistance. SUMMARY: The New England Fishery (302) 526–5251, at least 5 days prior to Council address: Pacific Fishery the meeting date. Management Council (Council) is Management Council, 7700 NE scheduling a public meeting of its Dated: February 5, 2019. Ambassador Place, Suite 101, Portland, Groundfish Committee to consider Tracey L. Thompson, OR 97220. actions affecting New England fisheries Acting Deputy Director, Office of Sustainable FOR FURTHER INFORMATION CONTACT: in the exclusive economic zone (EEZ). Fisheries, National Marine Fisheries Service. Jennifer Gilden, Staff Officer; telephone: Recommendations from this group will [FR Doc. 2019–01609 Filed 2–7–19; 8:45 am] (503) 820–2418. be brought to the full Council for formal BILLING CODE 3510–22–P consideration and action, if appropriate. SUPPLEMENTARY INFORMATION: The primary purpose of the HC webinar is to DATES: This meeting will be held on Tuesday, February 26, 2019 at 9 a.m. DEPARTMENT OF COMMERCE prepare for the Pacific Council’s March 2019 agenda items. The HC’s task is to ADDRESSES: National Oceanic and Atmospheric develop recommendations for Meeting address: The meeting will be Administration consideration by the Pacific Council at held at the DoubleTree by Hilton, 50 Ferncroft Road, Danvers, MA 01950; RIN 0648–XG766 its March 2019 meeting. The HC will discuss items related to salmon phone: (978) 777–2500. Pacific Fishery Management Council; rebuilding plans, essential fish habitat Council address: New England Public Meeting for groundfish, and marine spatial Fishery Management Council, 50 Water planning. A detailed agenda for the Street, Mill 2, Newburyport, MA 01950. AGENCY: National Marine Fisheries webinar will be available on the Pacific FOR FURTHER INFORMATION CONTACT: Service (NMFS), National Oceanic and Council’s website prior to the meeting. Thomas A. Nies, Executive Director, Atmospheric Administration (NOAA), No management actions will be decided New England Fishery Management Commerce. by the HC. Council; telephone: (978) 465–0492. ACTION: Notice of public meeting Although non-emergency issues not SUPPLEMENTARY INFORMATION: (webinar). contained in the meeting agenda may be Agenda SUMMARY: The Pacific Fishery discussed, those issues may not be the subject of formal action during this The committee will review the Management Council (Pacific Council) recreational advisory panel will convene a webinar meeting of its meeting. Action will be restricted to those issues specifically listed in this recommendations and then provide Habitat Committee (HC) to discuss items recommendations to the Council on on the Pacific Council’s March 2019 notice and any issues arising after publication of this notice that require fishing year 2019 recreational measures meeting agenda. The meeting is open to for Gulf of Maine cod and haddock, and the public. emergency action under section 305(c) of the Magnuson-Stevens Fishery Georges Bank cod. They will discuss DATES: The webinar meeting will be Conservation and Management Act, and review input from the Recreational held Tuesday, February 26, 2019, from provided the public has been notified of Advisory Panel on the possibility of 10:30 a.m. to 1 p.m. Pacific Standard the HC’s intent to take final action to public listening sessions for limited Time. The scheduled ending time for address the emergency. access program. The committee plans to the HC webinar is an estimate, the discuss the Marine Recreational meeting will adjourn when business for Special Accommodations Information Program (MRIP) allocation the day has been completed. The public listening station is of sampling by wave, and available for- ADDRESSES: This meeting will be held physically accessible to people with hire vessel trip report data on effort and via webinar. A public listening station disabilities. Requests for sign language landings by wave. They will discuss is available at the Pacific Council office interpretation or other auxiliary aids groundfish priorities for 2019 and (address below). To attend the webinar: should be directed to Mr. Kris receive an update on progress of (1) Join the GoToWebinar by visiting Kleinschmidt at (503) 820–2411 at least Amendment 23/Groundfish Monitoring this link https://www.gotomeeting.com/ 10 days prior to the meeting date. and to be initiated Framework 59/ (Click ‘‘Join a Webinar’’ in top right Specifications and Management corner of page), (2) Enter the Webinar Dated: February 5, 2019. Measures as appropriate. Other business ID: 504–836–765 and (3) enter your Tracey L. Thompson, will be discussed as necessary. name and email address (required). Acting Deputy Director, Office of Sustainable Although non-emergency issues not After logging into the webinar, you must Fisheries, National Marine Fisheries Service. contained in this agenda may come use your telephone for the audio portion [FR Doc. 2019–01607 Filed 2–7–19; 8:45 am] before this group for discussion, those of the meeting. Dial this TOLL number: BILLING CODE 3510–22–P issues may not be the subject of formal
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action during these meetings. Action Director, Mid-Atlantic Fishery registration and telephone-only will be restricted to those issues Management Council, telephone: (302) connection details will be posted at: specifically listed in this notice and any 526–5255. http://www.mafmc.org. issues arising after publication of this SUPPLEMENTARY INFORMATION: The Council address: Mid-Atlantic Fishery notice that require emergency action purpose of this meeting is to review Management Council, 800 N State under section 305(c) of the Magnuson- updated summer flounder stock Street, Suite 201, Dover, DE 19901; Stevens Act, provided the public has assessment information and recommend telephone: (302) 674–2331; been notified of the Council’s intent to revised 2019 and new 2020–21 www.mafmc.org. take final action to address the commercial and recreational Annual FOR FURTHER INFORMATION CONTACT: emergency. Catch Limits (ACLs), Annual Catch Christopher M. Moore, Ph.D., Executive Special Accommodations Targets (ACTs), commercial quotas, and Director, Mid-Atlantic Fishery recreational harvest limits for summer Management Council, telephone: (302) This meeting is physically accessible flounder. The Committee will also 526–5255. to people with disabilities. Requests for recommend recreational management SUPPLEMENTARY INFORMATION: The sign language interpretation or other measures for summer flounder in 2019, auxiliary aids should be directed to Council’s Summer Flounder, Scup, and including either the use of conservation Black Sea Bass Advisory Panel (AP) will Thomas A. Nies, Executive Director, at equivalency or coastwide recreational (978) 465–0492, at least 5 days prior to meet jointly with the ASMFC’s Summer management measures to achieve but Flounder, Scup, and Black Sea Bass AP. the meeting date. This meeting will be not exceed the revised 2019 recreational recorded. Consistent with 16 U.S.C. The purpose of this meeting is for the harvest limit. A detailed agenda and Advisory Panels to review and comment 1852, a copy of the recording is background documents will be made available upon request. on recent stock assessment information available on the Council’s website for summer flounder, as well as the Authority: 16 U.S.C. 1801 et seq. (www.mafmc.org) prior to the meeting. reports and recommendations of the Dated: February 5, 2019. Special Accommodations Council’s Scientific and Statistical Tracey L. Thompson, Committee (SSC) and the Summer The meeting is physically accessible Acting Deputy Director, Office of Sustainable Flounder, Scup, and Black Sea Bass Fisheries, National Marine Fisheries Service. to people with disabilities. Requests for Monitoring Committee regarding revised sign language interpretation or other 2019 fishery specifications (i.e., catch [FR Doc. 2019–01637 Filed 2–7–19; 8:45 am] auxiliary aid should be directed to M. BILLING CODE 3510–22–P and landings limits and management Jan Saunders, (302) 526–5251, at least 5 measures) for summer flounder as well days prior to the meeting date. as expected new specifications for DEPARTMENT OF COMMERCE Dated: February 5, 2019. 2020–21. The AP will also be asked for Tracey L. Thompson, recommendations on recreational National Oceanic and Atmospheric Acting Deputy Director, Office of Sustainable management measures for summer Administration Fisheries, National Marine Fisheries Service. flounder in 2019. The Council and RIN 0648–XG752 [FR Doc. 2019–01605 Filed 2–7–19; 8:45 am] ASMFC will consider input from the AP BILLING CODE 3510–22–P when adopting 2019–21 catch and Mid-Atlantic Fishery Management landings limits and 2019 recreational Council (MAFMC); Public Meeting measures for summer flounder. DEPARTMENT OF COMMERCE AGENCY: National Marine Fisheries Special Accommodations Service (NMFS), National Oceanic and National Oceanic and Atmospheric The meeting is physically accessible Atmospheric Administration (NOAA), Administration to people with disabilities. Requests for Commerce. sign language interpretation or other RIN 0648–XG754 ACTION: Notice; public meeting. auxiliary aid should be directed to M. Jan Saunders, (302) 526–5251, at least 5 SUMMARY: The Mid-Atlantic Fishery Mid-Atlantic Fishery Management days prior to the meeting date. Management Council’s (MAFMC’s) Council (MAFMC); Public Meeting Dated: February 5, 2019. Summer Flounder, Scup, and Black Sea AGENCY: National Marine Fisheries Bass Monitoring Committee will hold a Service (NMFS), National Oceanic and Tracey L. Thompson, public meeting. Atmospheric Administration (NOAA), Acting Deputy Director, Office of Sustainable DATES: The meeting will be held on Commerce. Fisheries, National Marine Fisheries Service. [FR Doc. 2019–01606 Filed 2–7–19; 8:45 am] Wednesday, February 27, 2019, from 10 ACTION: Notice; public meeting. a.m. through 3 p.m. See SUPPLEMENTARY BILLING CODE 3510–22–P INFORMATION for agenda details. SUMMARY: The Mid-Atlantic Fishery ADDRESSES: The meeting will take place Management Council’s (Council’s) over webinar with a telephone-only Summer Flounder, Scup, and Black Sea DEPARTMENT OF COMMERCE Bass Advisory Panel will hold a public connection option. Details on how to National Oceanic and Atmospheric meeting, jointly with the Atlantic States connect to the webinar by computer and Administration by telephone will be available at: http:// Marine Fisheries Commission’s www.mafmc.org/. (ASMFC) Summer Flounder, Scup, and RIN 0648–XG745 Council address: Mid-Atlantic Fishery Black Sea Bass Advisory Panel. Mid-Atlantic Fishery Management Management Council, 800 N State DATES: The meeting will be held on Street, Suite 201, Dover, DE 19901; Friday, March 1, 2019, from 9 a.m. until Council (MAFMC); Public Meeting telephone: (302) 674–2331; website: 12 p.m. AGENCY: National Marine Fisheries www.mafmc.org. ADDRESSES: The meeting will be held Service (NMFS), National Oceanic and FOR FURTHER INFORMATION CONTACT: via webinar with a telephone-only Atmospheric Administration (NOAA), Christopher M. Moore, Ph.D., Executive connection option. Details on webinar Commerce.
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ACTION: Notice; public meeting. Disabled, 1401 S. Clark Street, Suite employing persons who are blind or 715, Arlington, Virginia 22202–4149. have other severe disabilities. SUMMARY: The Tilefish Monitoring FOR FURTHER INFORMATION CONTACT: For Committee of the Mid-Atlantic Fishery DATES: Date added to the Procurement further information or to submit Management Council (Council) will List: March 10, 2019. comments contact: Michael R. hold a meeting. Jurkowski, Telephone: (703) 603–2117, ADDRESSES: Committee for Purchase DATES: The meeting will be held on Fax: (703) 603–0655, or email From People Who Are Blind or Severely Friday, March 22, 2019, beginning at 9 [email protected]. Disabled, 1401 S. Clark Street, Suite a.m. and conclude by 1 p.m. For agenda SUPPLEMENTARY INFORMATION: This 715, Arlington, Virginia, 22202–4149. details, see SUPPLEMENTARY notice is published pursuant to 41 INFORMATION. FOR FURTHER INFORMATION CONTACT: U.S.C. 8503(a)(2) and 41 CFR 51–2.3. Its Michael R. Jurkowski, Telephone: (703) ADDRESSES: The meeting will be held purpose is to provide interested persons 603–2117, Fax: (703) 603–0655, or email via webinar with a telephone-only an opportunity to submit comments on [email protected]. connection option. the proposed actions. Council address: Mid-Atlantic Fishery SUPPLEMENTARY INFORMATION: Management Council, 800 N State Additions Street, Suite 201, Dover, DE 19901; If the Committee approves the Addition telephone: (302) 674–2331 or on their proposed additions, the entities of the On June 4, 2018 (83 FR 107), the website at www.mafmc.org. Federal Government identified in this Committee for Purchase From People FOR FURTHER INFORMATION CONTACT: notice will be required to procure the Who Are Blind or Severely Disabled Christopher M. Moore, Ph.D., Executive products listed below from nonprofit published notice of proposed addition Director, Mid-Atlantic Fishery agencies employing persons who are to the Procurement List. Management Council, telephone: (302) blind or have other severe disabilities. After consideration of the material 526–5255. The following products are proposed for addition to the Procurement List for presented to it concerning capability of SUPPLEMENTARY INFORMATION: The qualified nonprofit agency to provide purpose of the meeting is for the production by the nonprofit agencies listed: the product and impact of the addition Tilefish Monitoring Committee to on the current or most recent review the recommended annual catch Products contractors, the Committee has limits, trip limits, discards and other NSN—Product Name: 8465–01–F05–2045— determined that the product listed management measures for the blueline Airborne Tactical Assault Panel (ATAP) below is suitable for procurement by the and golden tilefish fisheries. Mandatory Source of Supply: Southeastern Federal Government under 41 U.S.C. Kentucky Rehabilitation Industries, Inc. 8501–8506 and 41 CFR 51–2.4. Special Accommodations (SEKRI), Corbin, KY The meeting is physically accessible Mandatory for: 50% of the requirement for Regulatory Flexibility Act Certification to people with disabilities. Requests for the U.S. Army sign language interpretation or other Contracting Activity: Army Contracting I certify that the following action will Command—Aberdeen Proving Ground, not have a significant impact on a auxiliary aid should be directed to M. Natick Contracting Division Jan Saunders, (302) 526–5251, at least 5 substantial number of small entities. NSN—Product Name: MR 13009—MR Salad days prior to the meeting date. The major factors considered for this Chopper with Bowl certification were: Dated: February 5, 2019. Mandatory Source of Supply: Cincinnati Tracey L. Thompson, Association for the Blind, Cincinnati, OH 1. The action will not result in any Mandatory for: The requirements of military additional reporting, recordkeeping or Acting Deputy Director, Office of Sustainable commissaries and exchanges in Fisheries, National Marine Fisheries Service. other compliance requirements for small accordance with the Code of Federal entities other than the small [FR Doc. 2019–01604 Filed 2–7–19; 8:45 am] Regulations 41 CFR 51–6.4. organization that will furnish the BILLING CODE 3510–22–P Contracting Activity: Defense Commissary product to the Government. Agency 2. The action will result in Patricia Briscoe, COMMITTEE FOR PURCHASE FROM authorizing small entities to furnish the Deputy Director, Business Operations, product to the Government. PEOPLE WHO ARE BLIND OR (Pricing and Information Management). SEVERELY DISABLED [FR Doc. 2019–01657 Filed 2–7–19; 8:45 am] 3. There are no known regulatory alternatives which would accomplish BILLING CODE 6353–01–P Procurement List; Proposed Additions the objectives of the Javits-Wagner- AGENCY: Committee for Purchase From O’Day Act (41 U.S.C. 8501–8506) in People Who Are Blind or Severely COMMITTEE FOR PURCHASE FROM connection with the product proposed Disabled. PEOPLE WHO ARE BLIND OR for addition to the Procurement List. ACTION: Proposed Additions to the SEVERELY DISABLED End of Certification Procurement List. Procurement List; Addition Accordingly, the following product is SUMMARY: The Committee is proposing AGENCY: Committee for Purchase From added to the Procurement List: to add products to the Procurement List People Who Are Blind or Severely that will be furnished by nonprofit Product Disabled. agencies employing persons who are NSN—Product Name: 2530–01–337–7324— blind or have other severe disabilities. ACTION: Addition to the Procurement Parts Kit, Air Filter List. Mandatory for: 100% of the requirement of DATES: Comments must be received on the Department of Defense or before: March 10, 2019. SUMMARY: This action adds a product to Mandatory Source of Supply: RLCB, Inc., ADDRESSES: Committee for Purchase the Procurement List that will be Raleigh, NC From People Who Are Blind or Severely furnished by nonprofit agency Contracting Activity: Defense Logistics
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Agency Land And Maritime (ECOA) 1 and the Home Mortgage opportunities to build wealth for 2 Patricia Briscoe, Disclosure Act (HMDA); businesses and consumers alike. In • Coordinating fair lending efforts of 2017, the Bureau announced an Deputy Director, Business Operations, the Bureau with other Federal agencies (Pricing and Information Management). enforcement action addressing and State regulators, as appropriate, to discrimination in the terms and [FR Doc. 2019–01650 Filed 2–7–19; 8:45 am] promote consistent, efficient, and conditions of credit cards, and BILLING CODE 6353–01–P effective enforcement of Federal fair conducted significant fair lending lending laws; and supervisory activity in student loan • Working with private industry, fair servicing and small business lending. BUREAU OF CONSUMER FINANCIAL lending, civil rights, consumer and The Office continued to partner with PROTECTION community advocates on the promotion colleagues across the Bureau in outreach of fair lending compliance and to support innovation that promotes Fair Lending Report of the Bureau of education. ‘‘fair, equitable, and nondiscriminatory Consumer Financial Protection, This report fulfills the Bureau’s access to credit for both individuals and December 2018 statutory responsibility to, among other communities,’’ culminating in the AGENCY: Bureau of Consumer Financial things, report annually to Congress on Bureau’s issuance of its first no-action Protection. public enforcement actions taken by letter (NAL) to Upstart Network, Inc., a other agencies with administrative company that uses alternative data in ACTION: Fair Lending Report of the enforcement responsibilities under making credit and pricing decisions. I Bureau of Consumer Financial ECOA, and assessments of the extent to led the Bureau’s engagement with Protection. which compliance with ECOA has been Upstart, in furtherance of our interest in SUMMARY: The Bureau of Consumer achieved (15 U.S.C. 1691f). It also exploring methods of achieving fair Financial Protection (Bureau) is issuing fulfills the statutory requirement that lending compliance in conjunction with its sixth Fair Lending Report of the the Bureau, in consultation with HUD, the use of alternative data and the Bureau of Consumer Financial report annually on the utility of potential benefits of such data in Protection (Fair Lending Report) to HMDA’s requirement that covered expanding credit access. Congress. The Bureau is committed to lenders itemize certain mortgage loan As 2017 drew to a close, the Office ensuring fair access to credit and data (12 U.S.C. 2807). welcomed Acting Director Mick eliminating discriminatory lending Sincerely, Mulvaney, and began work to practices. This report describes the Mick Mulvaney, implement his commitment to enforce Bureau’s fair lending activities in Message from Patrice Alexander Ficklin the fair lending laws under the Bureau’s prioritization, supervision, enforcement, Director, Office of Fair Lending and Equal jurisdiction. rulemaking, interagency coordination, Opportunity. I am proud of the Office’s work not only in 2017, but also throughout its and outreach for calendar year 2017. In 2017, the Office of Fair Lending history in fulfilling its Dodd-Frank DATES: The Bureau released the and Equal Opportunity completed its mandate to protect America’s December 2018 Fair Lending Report on sixth full year of stewardship over the consumers from lending discrimination its website on December 4, 2018. Bureau’s efforts to fulfill its fair lending and promote credit access. To that end, mandate. 2017 was distinguished as a FOR FURTHER INFORMATION CONTACT: I am excited to share our progress with year in which the Office continued to Anita Visser, Senior Policy Advisor to this, our sixth, Fair Lending Report.3 the Director of Fair Lending, Office of focus on promoting fair, equitable and Fair Lending and Equal Opportunity, at nondiscriminatory access to credit in Sincerely, 1–855–411–2372. If you require this mortgage lending, deepened its Patrice Alexander Ficklin document in an alternative electronic supervisory work in servicing and small format, please contact CFPB_ business lending, and embarked on new Executive Summary [email protected]. efforts to encourage innovation in The Dodd-Frank Wall Street Reform SUPPLEMENTARY INFORMATION: expanding credit access. and Consumer Protection Act (Dodd- Mortgage lending remained a priority Frank or Dodd-Frank Act) 4 established 1. Fair Lending Report of the Bureau of for the Bureau’s fair lending supervisory the Office of Fair Lending and Equal Consumer Financial Protection, and enforcement activity, focusing on Opportunity (the Office of Fair Lending) December 2018 redlining, underwriting, pricing, within the Bureau, and vested it with Message from Mick Mulvaney, Acting steering, servicing and HMDA data such powers and duties as the Bureau’s Director integrity. The Bureau announced a Director may delegate to it, including: significant HMDA enforcement action in (A) Providing oversight and This Fair Lending Report of the 2017, reinforcing the importance of the enforcement of Federal laws intended to Bureau of Consumer Financial legal requirement that covered mortgage ensure the fair, equitable, and Protection describes the Bureau’s fair lenders must report accurate data about nondiscriminatory access to credit for lending activities for 2017, consistent mortgage transactions. HMDA data is a both individuals and communities that with its statutory mandate to ensure that critical component of the effective are enforced by the Bureau, including consumers are protected from enforcement of fair lending laws. the Equal Credit Opportunity Act and discrimination (12 U.S.C. 5511(b)(2)). Beyond mortgages, we know that the Home Mortgage Disclosure Act; These efforts included: other lending markets play a vital role • (B) Coordinating fair lending efforts of Providing oversight and in allowing consumers to fully the Bureau with other Federal agencies enforcement of Federal laws intended to participate as stakeholders in our and State regulators, as appropriate, to ensure the fair, equitable, and economy, strengthening our promote consistent, efficient, and nondiscriminatory access to credit for communities, and expanding both individuals and communities that 3 See Dodd-Frank Act section 1013(c)(2)(D) are enforced by the Bureau, including 1 15 U.S.C. 1691 et seq. (codified at 12 U.S.C. 5493(c)(2)(D)). the Equal Credit Opportunity Act 2 12 U.S.C. 2801 et seq. 4 Public Law 111–203, 124 Stat. 1376 (2010).
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effective enforcement of Federal fair lending mandate during calendar year enforcement of ECOA under section 704 lending laws; 2017.8 include: The Federal Deposit Insurance (C) Working with private industry, Corporation (FDIC), the Federal Reserve 1. Interagency Reporting on ECOA and fair lending, civil rights, consumer and Board (FRB), the National Credit Union HMDA community advocates on the promotion Administration (NCUA), and the Office of fair lending compliance and The law requires the Bureau to file a of the Comptroller of the Currency education; and report to Congress annually describing (OCC), (collectively, the Federal (D) Providing annual reports to the administration of its functions under Financial Institutions Examination Congress on the efforts of the Bureau to ECOA, summarizing public enforcement Council (FFIEC) agencies); 11 fulfill its fair lending mandate.5 actions taken by other agencies with Agricultural Marketing Service (AMS) of The law also requires the Bureau to administrative enforcement the U.S. Department of Agriculture file an annual report to Congress responsibilities under ECOA, and (USDA),12 the Department of describing the administration of its providing an assessment of the extent to Transportation (DOT), the Farm Credit functions under the Equal Credit which compliance with ECOA has been Administration (FCA), the Federal Opportunity Act (ECOA), summarizing achieved.9 In addition, the Bureau’s Trade Commission (FTC), the Securities public enforcement actions taken by annual HMDA reporting requirement and Exchange Commission (SEC), and other agencies with administrative calls for the Bureau, in consultation the Small Business Administration enforcement responsibilities under with HUD, to report annually on the (SBA).13 ECOA, and providing an assessment of utility of HMDA’s requirement that In 2017, the Bureau brought one the extent to which compliance with covered lenders itemize certain 6 public enforcement action for violations ECOA has been achieved. In addition, mortgage loan data.10 the law requires the Bureau, in of ECOA, and the other agencies consultation with U.S. Department of 1.1 ECOA Enforcement reported that they brought no public Housing and Urban Development The enforcement efforts and enforcement actions related to ECOA in (HUD), to report annually on the utility compliance assessments made by all the 2017. of the Home Mortgage Disclosure Act’s agencies assigned enforcement authority 1.1.2 Violations Cited During ECOA (HMDA) requirement that covered under section 704 of ECOA are Examinations lenders itemize certain mortgage loan discussed in this section. data.7 This report to Congress from the Among institutions examined for Office of Fair Lending is intended to 1.1.1 Public Enforcement Actions compliance with ECOA and Regulation fulfill those requirements and report on In addition to the Bureau, the B, the FFIEC agencies reported that the the Bureau’s efforts to fulfill its fair agencies charged with administrative most frequently-cited violations were:
TABLE 1—REGULATION B VIOLATIONS CITED BY FFIEC AGENCIES: 2017
FFIEC Agencies reporting Regulation B violations: 2017
The Bureau, FDIC, FRB, NCUA, OCC ..... 12 CFR 1002.4(a): Discrimination on a prohibited basis in a credit transaction. 12 CFR 1002.5(b): Improperly inquiring about the race, color, religion, national origin, or sex of an applicant or any other person in connection with a credit transaction. 12 CFR 1002.7(d)(1), (d)(6): Improperly requiring the signature of an applicant’s spouse or other per- son if the applicant qualifies under the creditor’s standards of creditworthiness for the amount and terms of the credit requested; improperly imposing requirements upon an additional party that the creditor is prohibited from imposing upon an applicant. 12 CFR 1002.9(a)(1), (a)(1)(i), (a)(2), (b), (b)(2), (c)(1)(i): Failure to provide notice to the applicant 30 days after receiving a completed application concerning the creditor’s approval of, counteroffer or adverse action on the application; failure to provide appropriate notice to the applicant 30 days after taking adverse action on an incomplete application; failure to provide sufficient information in an adverse action notification, including the specific reasons for the action taken. 12 CFR 1002.12(b)(1): Failure to preserve records of actions taken on an application or of incom- pleteness. 12 CFR 1002.13(a)(1)(i), (b): Failure to request information on an application regarding an appli- cant’s ethnicity, race, sex, marital status, and age, or note, to the extent possible, the ethnicity, race, and sex of an applicant on the basis of visual observation or surname if not provided by the applicant. 12 CFR 1002.14(a), (a)(2): Failure to routinely provide an applicant with a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling, and/or failure to provide an applicant with a copy of an appraisal re- port upon an applicant’s written request.
5 Dodd-Frank Act section 1013(c)(2)(A), (B) and standards, and report forms for the Federal of Consumer Financial Protection (Bureau). The (C) (codified at 12 U.S.C. 5493(c)(2)(A), (B), and examination of financial institutions’’ by the State Liaison Committee was added to FFIEC in (C)). member agencies listed above and the State Liaison 2006 as a voting member. 6 15 U.S.C. 1691f. Committee ‘‘and to make recommendations to 12 The Grain Inspection, Packers and Stockyards 7 12 U.S.C. 2807. promote uniformity in the supervision of financial Administration (GIPSA) was eliminated as a stand- institutions.’’ Federal Financial Institutions 8 See Dodd-Frank Act section 1013(c)(2)(D), alone agency within USDA in 2017. The functions Examination Council, http://www.ffiec.gov (last Public Law 111–203, 124 Stat. 1376 (2010) (codified visited April 5, 2018). The FFIEC member agencies previously performed by GIPSA have been at 12 U.S.C. 5493(c)(2)(D)). are the Board of Governors of the Federal Reserve incorporated into the Agricultural Marketing 9 15 U.S.C. 1691f. System (FRB), the Federal Deposit Insurance Service (AMS), and ECOA reporting now comes 10 12 U.S.C. 2807. Corporation (FDIC), the National Credit Union from the Packers and Stockyards Division, Fair 11 The FFIEC is a ‘‘formal interagency body Administration (NCUA), the Office of the Trade Practices Program, AMS. empowered to prescribe uniform principles, Comptroller of the Currency (OCC), and the Bureau 13 15 U.S.C. 1691c.
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TABLE 2—REGULATION B VIOLATIONS CITED BY OTHER ECOA AGENCIES: 2017
Other ECOA agencies Regulation B violations: 2017
FCA ...... 12 CFR 1002.9(a)(1)(i): Failure to provide notice to the applicant 30 days after receiving a completed application concerning the creditor’s approval of, counteroffer or adverse action on the application. 12 CFR 1002.13: Failure to request and collect information for monitoring purposes.
The AMS, the SEC, and the SBA with regard to guidance and rulemaking, process is complete, we regularly reported that they received no please see the Rulemaking section of coordinate with other regulators so we complaints based on ECOA or this report (Section 5).15 can inform each other’s work, Regulation B in 2017. In 2017, the DOT complement each other’s efforts where 2. The Bureau’s Fair Lending reported that it received a ‘‘small appropriate, and reduce burden on Prioritization number of consumer inquiries or subject institutions. complaints concerning credit matters 2.1 Risk-Based Prioritization Risk-based prioritization is an possibly covered by ECOA,’’ which it Because Congress charged the Bureau ongoing process, and the Bureau ‘‘processed informally.’’ The FTC is an with responsibility for overseeing many continues to receive and evaluate enforcement agency and does not lenders and products, the Office uses a relevant information even after conduct compliance examinations. risk-based approach to prioritize priorities are identified. Such supervisory examinations and information may include new tips and 1.2 Referrals to the Department of leads about specific institutions, Justice enforcement activity, to help ensure focus on areas that present substantial consumer complaints, additional risks In 2017, the FFIEC agencies including risk of credit discrimination for identified in current supervisory and the Bureau, referred a total of 11 ECOA consumers. enforcement activities, and compliance matters involving discrimination in As part of the prioritization process, issues self-identified by institutions. In violation of ECOA to the Department of the Bureau identifies emerging determining how best to address this Justice (DOJ or Justice Department). The developments and trends by monitoring additional information, Fair Lending FDIC referred four matters to the DOJ key consumer financial markets. If this considers several factors, including (1) involving discrimination in credit market intelligence identifies fair the nature and extent of the fair lending transactions on the prohibited bases of lending risks in a particular market that risk, (2) the degree of consumer harm, age, marital status, sex, and national require further attention, that and (3) whether the risk was self- origin. The FRB referred three matters to information is incorporated into the identified and/or self-reported to the the DOJ involving discrimination in prioritization process to determine the Bureau. It also takes account of well- credit transactions on the prohibited type and extent of attention required to developed fair lending compliance basis of marital status. The NCUA address those risks. For instance, our management systems 16 and other referred two matters to the DOJ monitoring highlighted potential responsible conduct as set forth in CFPB involving discrimination in credit steering risks in student loan servicing, Bulletin 2013–06, Responsible Business transactions on the prohibited bases of which resulted in the prioritization of Conduct: Self-Policing, Self-Reporting, marital status, receipt of public this market in our supervisory work in Remediation, and Cooperation.17 assistance income, and sex. The Bureau 2017. 2.2 Fair Lending Priorities referred two matters to the DOJ The fair lending prioritization process involving discrimination in mortgage incorporates a number of additional As a result of its annual risk-based servicing on the prohibited basis of the factors as well, including: Consumer prioritization analyses, in 2017 the receipt of public assistance income, and complaints; tips and leads from Bureau focused on: 18 • discrimination in credit card account advocacy groups, whistleblowers, and Redlining: Whether lenders management, installment lending, and government agencies; supervisory and intentionally discouraged prospective mortgage servicing on the prohibited enforcement history; and results from applicants in minority neighborhoods bases of national origin and race. from applying for credit. analysis of HMDA and other data. • Once Fair Lending has evaluated Mortgage and Student Loan 1.3 Reporting on the Home Mortgage Servicing: Whether some borrowers who Disclosure Act these inputs to prioritize institutions, products, and markets based on an were behind on their mortgage or The Bureau’s annual HMDA reporting assessment of fair lending risk posed to student loan payments may have been requirement calls for the Bureau, in consumers, it considers how best to negatively impacted in their ability to consultation with HUD, to report address those risks as part of its annual annually on the utility of HMDA’s strategic planning process. Potential 16 The Bureau previously has identified common requirement that covered lenders features of a well-developed fair lending actions include scheduling an compliance management system: Consumer itemize loan data in order to disclose institution for a supervisory review, Financial Protection Bureau, Fair Lending Report of the number and dollar amount of certain opening an enforcement investigation the Consumer Financial Protection Bureau at 13–14 mortgage loans and applications, (Apr. 2014), http://files.consumerfinance.gov/f/ where appropriate, conducting further _ _ _ grouped according to various research, policy development, or 201404 cfpb report fair-lending.pdf. characteristics.14 The Bureau, in 17 Consumer Financial Protection Bureau, outreach. Once this strategic planning Responsible Business Conduct: Self-Policing, Self- consultation with HUD, finds that Reporting, Remediation, and Cooperation, CFPB itemization and tabulation of these data 15 For more information on recent developments Bulletin 2013–06 (June 25, 2013), http:// further the purposes of HMDA. For in HMDA and Regulation C, see: https:// files.consumerfinance.gov/f/201306_cfpb_bulletin_ more information on HMDA and its www.consumerfinance.gov/about-us/newsroom/ responsible-conduct.pdf. bureau-consumer-financial-protection-issues- 18 Patrice Ficklin, Fair Lending priorities in the implementing regulation, Regulation C statement-implementation-economic-growth- new year, Consumer Financial Protection Bureau regulatory-relief-and-consumer-protection-act- (Dec. 16, 2016), http://www.consumerfinance.gov/ 14 See 12 U.S.C. 2807. amendments-home-mortgage-disclosure-act/. about-us/blog/fair-lending-priorities-new-year/.
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work out a new solution with the and restitution to consumers in 3.1.2 Mortgage Servicing servicer because of their race, ethnicity, response to violations of fair lending The Summer 2017 edition of sex, or age. laws identified in the review, and the 27 • Supervisory Highlights reported on Small Business Lending: Whether Bureau may pursue other appropriate the Bureau’s fair lending work in institutions are complying with the relief. The Bureau also refers matters to mortgage servicing. As part of its fair Congressional mandate to not the Justice Department when it has lending work, the Bureau seeks to discriminate on a prohibited basis in reason to believe that a creditor has ensure that creditors do not small business lending. Focus in this engaged in a pattern or practice of discriminate on any prohibited bases. area includes improving Bureau lending discrimination in violation of Mortgage servicing, and specifically understanding of: Small business ECOA.21 The Bureau also may refer default servicing, may introduce fair lending credit processes; existing data lending risks because of the complexity collection processes; and the nature, other potential ECOA violations to the 22 of certain processes, the range of default extent, and management of fair lending Justice Department. servicing options, and the discretion risk in small business lending. Congress 3.1 Fair Lending Supervisory that can sometimes exist in evaluating required the Bureau to promulgate a Observations and selecting among available default regulation governing small business servicing options. loan data collection in order to The Bureau published results of In mortgage servicing, the Bureau’s ‘‘facilitate enforcement of fair lending certain 2017 supervisory exams in supervisory work has included use of laws and enable communities, Supervisory Highlights. Those findings the Mortgage Servicing Exam governmental entities, and creditors to are also summarized below. Procedures and the ECOA Baseline identify business and community Modules, both of which are part of the development needs and opportunities of 3.1.1 Update to Proxy Methodology Bureau’s publically-available women-owned, minority-owned, and The Spring 2017 edition of Supervision and Examination Manual. small businesses.’’ 19 Small business Supervisory Highlights,23 published in Bureau examination teams use these lending supervisory activity has helped procedures to conduct ECOA Baseline expand and enhance the Bureau’s April 2017, discussed updates to the Reviews, which evaluate institutions’ knowledge in this area, including the Bayesian Improved Surname Geocoding compliance management systems credit process; existing data collection (BISG) proxy methodology for race and 24 (CMS), or ECOA Targeted Reviews, processes; and the nature, extent, and ethnicity, which relies in part on which are more in-depth reviews of management of fair lending risk. publically available information from • The Bureau remains committed to the Census. In December 2016, the U.S. activities that may pose heightened fair ensuring that consumers are protected Census Bureau released a list of the lending risks to consumers. These exam from discrimination in all credit most frequently-occurring surnames procedures contain questions about, markets under its legal authority. based on the most recent census, which among other things, the fair lending includes values for total counts and race training of servicing staff, fair lending 3. Fair Lending Supervision and ethnicity shares associated with monitoring of servicing, and servicing of consumers with limited English The Bureau’s Fair Lending each surname. In total, the list provides proficiency. Supervision program assesses information on the 162,253 surnames compliance with ECOA and HMDA at In one or more ECOA targeted reviews that appear at least 100 times in the of mortgage servicers, Bureau examiners banks and nonbanks over which the most recent census, covering Bureau has supervisory authority. found weaknesses in fair lending CMS. approximately 90% of the population.25 Supervision activities in 2017 ranged In general, examiners found deficiencies In April 2017, examination teams began from assessments of institutions’ fair in oversight by board and senior relying on an updated proxy lending compliance management management, monitoring and corrective systems to in-depth reviews of products methodology that reflected the newly action processes, compliance audits, or activities that may pose heightened available surname data from the Census and oversight of third-party service 26 fair lending risks to consumers. As part Bureau. providers. of its Fair Lending Supervision program, In one or more examinations, data the Bureau conducted three types of fair 21 15 U.S.C. 1691e(g). quality issues, which were related to a lending reviews: ECOA baseline 22 Id. lack of complete and accurate loan reviews, ECOA targeted reviews, and 23 Consumer Financial Protection Bureau, servicing records, made certain fair Supervisory Highlights Spring 2017 at 14–15 (April HMDA data integrity reviews. lending analyses difficult or impossible 26, 2017), https://www.consumerfinance.gov/ to perform. Examiners attributed these As a general matter, if such a review documents/4608/201704_cfpb_Supervisory- finds that an institution’s fair lending Highlights_Issue-15.pdf. data quality issues to significant compliance is inadequate, the Bureau 24 For more information on the Bureau’s use of weaknesses in CMS-related policies, communicates its supervisory BISG in 2017 and previously, see Consumer procedures, and service provider expectations to the institution to help Financial Protection Bureau, Supervisory Highlights oversight. the institution establish fair lending Summer 2014 at 10–13 (September 17, 2014), Separately, fair lending analysis at http://files.consumerfinance.gov/f/201409_cfpb_ one or more mortgage servicers was compliance programs commensurate _ _ supervisory-highlights auto-lending summer- affected by a lack of readily-accessible with the size and complexity of the 2014.pdf. 20 information concerning a borrower’s institution and its lines of business. 25 The surname data are available on the Census Institutions may provide remediation Bureau’s website, see Frequently Occurring ethnicity, race, and sex information that Surnames from the 2010 Census (last revised had been collected pursuant to 19 See Dodd-Frank Act, Public Law 111–203, sec. December 27, 2016), https://www.census.gov/ Regulation C and transferred to the _ 1071, 704B(a). topics/population/genealogy/data/2010 20 For recent updates to the types of supervisory surnames.html. 27 Consumer Financial Protection Bureau, communications, see https://s3.amazonaws.com/ 26 The new surname list; statistical software code, Supervisory Highlights Summer 2017 at 32–33 files.consumerfinance.gov/f/documents/bcfp_ written in Stata; and other publicly available data (September 12, 2017), https:// bulletin-2018-01_changes-to-supervisory- used to build the BISG proxy are available at: www.consumerfinance.gov/documents/5386/ communications.pdf. https://github.com/cfpb/proxy-methodology. 201709_cfpb_Supervisory-Highlights_Issue-16.pdf.
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servicer. One or more mortgage servicers future violations.29 Nationstar also must other U.S. territories by providing them acknowledged the importance of review, correct, and make available its with credit and charge card terms that retaining in readily-accessible format— corrected HMDA data from 2012–14. were inferior in many respects to those for the express purpose of performing Since the Bureau’s examination, available in the 50 U.S. states. American future fair lending analyses—ethnicity, Nationstar has been taking steps to Express also discriminated against race, and sex data that it had received improve its HMDA compliance certain consumers with Spanish- in the borrower’s origination file. management system and increase the language preferences by not providing accuracy of its HMDA reporting. them certain charge card collection 4. Fair Lending Enforcement Nationstar, a nationwide nonbank offers that were provided to similarly- situated consumers without Spanish- The Bureau conducts investigations of mortgage lender headquartered in Coppell, Texas (now doing business as language preferences. Over the course of potential violations of HMDA and Mr. Cooper), is a wholly-owned at least ten years, more than 200,000 of ECOA, and if it believes a violation has subsidiary of Nationstar Mortgage these consumers were harmed by occurred, can file a complaint either Holdings Inc. With nearly 3 million American Express’s discriminatory through its administrative enforcement customers, Nationstar Mortgage practices. American Express has paid process or in Federal court. Like the Holdings is a major participant in the approximately $95 million in consumer other Federal bank regulators, the mortgage servicing and origination redress during the course of the Bureau refers matters to the DOJ when markets. According to 2014 data, Bureau’s review and American it has reason to believe that a creditor Nationstar was the ninth-largest HMDA Express’s review, and the Bureau Order has engaged in a pattern or practice of reporter by total mortgage originations, requires it to pay at least another $1 lending discrimination.28 However, the sixth largest by applications million to fully compensate harmed when the Bureau makes a referral to the received, and the thirteenth largest by consumers.30 DOJ, the Bureau can still take its own money lent. From 2010 to 2014, Beginning in 2013, American Express independent action to address a Nationstar’s number of HMDA mortgage self-reported to the Bureau differences violation. In 2016, the Bureau loans increased by nearly 900 percent. between terms associated with its announced two fair lending In its supervision process, the Bureau Puerto Rico and U.S. Virgin Islands enforcement actions in mortgage found that Nationstar’s HMDA cards (collectively, Puerto Rico cards) origination and indirect auto lending. compliance systems were deficient, and and its cards offered in the 50 U.S. The Bureau also has a number of not reasonably adapted to avoid the states (U.S. cards), as well as differences ongoing fair lending investigations and identified errors. Specifically, with respect to certain consumers with has authority to settle or sue in a Nationstar failed to maintain detailed a Spanish-language preference. Through number of matters. In addition, the HMDA data collection and validation the course of a supervisory review, the Bureau issued warning letters to procedures, and failed to implement Bureau concluded that, from at least mortgage lenders and mortgage brokers adequate compliance procedures, even 2005 to 2015, American Express’s that may be in violation of HMDA after it knew was required to improve its Puerto Rico cards had different, and requirements to report on housing- HMDA compliance. It also produced often worse, pricing, rebates, related lending activity. HMDA data discrepancies by failing to promotional offers, underwriting, 4.1 Fair Lending Public Enforcement consistently define data among its customer and account management Actions various lines of business. Nationstar has services, and collections practices than a history of HMDA non-compliance. In its U.S. cards. These differences 4.1.1 Mortgage 2011, the Commonwealth of spanned the product lifecycle and included: Charging higher fees and Nationstar Mortgage LLC Massachusetts Division of Banks reached a settlement with Nationstar to interest rates and offering less On March 15, 2017, the Bureau address HMDA compliance deficiencies. advantageous pricing on promotional resolved an enforcement action against The samples reviewed by the Bureau offers; imposing more stringent credit Nationstar Mortgage LLC (Nationstar) showed substantial error rates in three score cutoffs and lower credit limits; for violating HMDA by submitting consecutive reporting years, even after applying certain inferior servicing mortgage loan data for 2012 through the Massachusetts settlement was policies; and requiring more money to 2014 containing substantial errors. reached. In the samples reviewed, the settle debt. The Bureau’s review found HMDA requires many mortgage lenders Bureau found error rates of 13 percent that these differences constituted to collect and report data about their in 2012, 33 percent in 2013, and 21 discrimination on the prohibited bases mortgage lending to appropriate Federal percent in 2014. of race and national origin in violation agencies and make it available to the of ECOA. 4.1.2 Credit Cards public. The consent order requires Under the terms of the Bureau Order, American Express must develop and Nationstar to pay a $1.75 million American Express Centurion Bank and implement a comprehensive compliance penalty to the Bureau’s Civil Penalty American Express Bank, FSB plan to ensure that it provides credit Fund. The Nationstar action is the On August 23, 2017, the Bureau took and charge cards in a non- largest HMDA civil penalty imposed to action against American Express discriminatory manner to consumers in date by the Bureau, which stems from Centurion Bank and American Express Puerto Rico, the U.S. territories, and Nationstar’s market size, the substantial Bank, FSB (collectively referred to as customers in collection who prefer magnitude of its errors, and its history American Express), for violating ECOA Spanish-language communications. The of previous violations. by discriminating against consumers in compliance plan must include any In addition to paying the civil Puerto Rico, the U.S. Virgin Islands, and penalty, Nationstar must take the 30 Consent Order, In the Matter of American necessary steps to improve its 29 Consent Order, In the Matter of Nationstar Express Centurion Bank and American Express compliance management and prevent Mortgage LLC, File No. 2017–CFPB–0011 (Mar. 15, Bank, FSB, File No. 2017–CFPB–0016 (Aug. 23, 2017), http://files.consumerfinance.gov/f/ 2017), https://s3.amazonaws.com/ documents/201703_cfpb_Nationstar-Mortgage- files.consumerfinance.gov/f/documents/201708_ 28 15 U.S.C. 1691e(g). consent-order.pdf. cfpb_american-express_content-order.pdf.
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necessary additional improvements to enforcement action brought by the number of institutions involving a its compliance management system; Bureau and Justice Department against variety of consumer financial products. compliance audit program; credit and Provident for alleged discrimination in Consistent with the Bureau’s risk-based charge card business structure, policies, mortgage lending.32 priorities, one key area on which the and procedures; employee training Bureau focused its fair lending American Honda Finance Corporation procedures; and complaints procedures. enforcement efforts was addressing During the Bureau’s review, American On October 2, 2017, participating potential discrimination in mortgage Express provided monetary and non- African-American, Hispanic, and Asian lending, including the unlawful practice monetary relief to harmed consumers, and/or Pacific Islander borrowers, of redlining. Redlining occurs when a resulting in approximately $95 million whom Honda Finance overcharged for lender provides unequal access to of remediation. The Bureau did not their auto loans, were mailed checks credit, or unequal terms of credit, assess penalties based on a number of totaling $24 million, plus accrued because of the racial or ethnic factors, including that American interest, resulting from a 2015 composition of a neighborhood. At the Express self-reported the violations to enforcement action brought by the end of 2017, the Bureau had a number the Bureau, self-initiated remediation Bureau and Justice Department against of pending investigations in this and for the harm done to affected Honda for alleged discrimination in other areas. consumers, and fully cooperated with auto lending.33 the Bureau’s review and investigation. 5. Guidance and Rulemaking Ally Financial Inc. and Ally Bank 5.1 HMDA and Regulation C 4.2 Implementing Enforcement Orders In 2017, Ally Financial Inc. and Ally When an enforcement action is Bank completed their payments totaling Consistent with the Bureau’s resolved through a public enforcement $48.8 million to consumers whom Ally obligation to work with private industry order, the Bureau (together with the determined were both eligible and to ‘‘promot[e] fair lending . . . Justice Department, when relevant) overcharged on auto loans booked compliance,’’ in 2017 the Bureau takes steps to ensure that the respondent during 2016 pursuant to the December published several regulatory and or defendant complies with the 2013 enforcement actions and consent guidance documents related to HMDA requirements of the order. As orders with the Justice Department and and Regulation C, as reported below.36 appropriate to the specific requirements the Bureau. On August 22, 2017, the Bureau, of individual public enforcement orders, together with the other member agencies the Bureau may take steps to ensure that 4.3 ECOA Referrals to the Department of the FFIEC, announced new FFIEC borrowers who are eligible for of Justice HMDA Examiner Transaction Testing compensation receive remuneration and The Bureau must refer to the Justice Guidelines (Guidelines) for all financial that the defendant has complied with Department a matter when it has reason institutions that report HMDA data.37 the injunctive provisions of the order, to believe that a creditor has engaged in The Guidelines will apply to the including implementing a a pattern or practice of lending examination of HMDA data collected comprehensive fair lending compliance discrimination in violation of ECOA.34 beginning in 2018, and reported management system. Throughout 2017, The Bureau also may refer other beginning in 2019. the Bureau worked to implement and potential ECOA violations to the DOJ.35 The Bureau issued a proposed rule in oversee compliance with the pending In 2017, the Bureau referred two matters April 2017 38 seeking comment on public enforcement orders that were with ECOA violations to the Justice amendments to certain provisions of the entered by Federal courts or issued by Department. In both of the matters, the 2015 HMDA Final Rule to make the Bureau’s Director in prior years. DOJ deferred to the Bureau’s handling of technical corrections and to clarify the matters and declined to open its certain requirements under Regulation 4.2.1 Settlement Administration own investigation. The Bureau’s C, and issued a second proposal in July Settlement Administration referrals to the DOJ in 2017 involved 2017 39 to increase temporarily the Toyota Motor Credit Corporation discrimination in mortgage servicing on institutional and transactional coverage the basis of the receipt of public thresholds for open-end lines of credit. On December 29, 2017, participation assistance income, and discrimination On August 24, 2017, after reviewing the materials were mailed to potentially in credit card account management, eligible African-American and Asian installment lending, and mortgage 36 See Dodd-Frank Act section 1013(c)(2)(C), and Pacific Islander borrowers whom servicing on the bases of national origin Public Law 111–203, 124 Stat. 1376 (2010) (codified Toyota Motor Credit overcharged for at 12 U.S.C. 5493(c)(2)(C)). and race. their auto loans notifying them how to 37 FFIEC HMDA Examiner Transaction Testing participate in the settlement, resulting 4.4 Pending Fair Lending Guidelines, https://s3.amazonaws.com/ files.consumerfinance.gov/f/documents/201708_ from a 2016 enforcement action brought Investigations cfpb_ffiec-hmda-examiner-transaction-testing- by the Bureau and Justice Department In 2017, the Bureau had a number of guidelines.pdf. against Toyota for alleged ongoing fair lending investigations of a 38 Technical Corrections and Clarifying discrimination in auto lending.31 Amendments to the Home Mortgage Disclosure (Regulation C) October 2015 Final Rule, https:// Provident Funding Associates 32 Patrice Alexander Ficklin, African-American www.consumerfinance.gov/policy-compliance/ and Hispanic borrowers harmed by Provident will rulemaking/rules-under-development/technical- On November 2, 2017, the Bureau receive $9 million in compensation, Consumer corrections-and-clarifying-amendments-home- announced the mailing of remuneration Financial Protection Bureau (Nov. 2, 2017), https:// mortgage-disclosure-october-2015-final-rule/. checks to consumers, totaling $9 www.consumerfinance.gov/about-us/blog/african- 39 Home Mortgage Disclosure (Regulation C), american-and-hispanic-borrowers-harmed- million, plus accrued interest, to eligible Temporary Increase in Institutional and provident-will-receive-9-million-compensation/. Transactional Coverage Thresholds for Open-End borrowers resulting from a 2015 33 Consent Order, In re American Honda Finance Lines of Credit, https://www.consumerfinance.gov/ Corp., CFPB No. 2015–CFPB–0014 (July 14, 2015), policy-compliance/rulemaking/rules-under- _ _ 31 Consent Order, In re Toyota Motor Credit Corp., http://files.consumerfinance.gov/f/201507 cfpb development/home-mortgage-disclosure-regulation- _ CFPB No. 2016–CFPB–0002 (Feb. 2, 2016), http:// consent-order honda.pdf. c-temporary-increase-institutional-and- files.consumerfinance.gov/f/201602_cfpb_consent- 34 15 U.S.C. 1691e(g). transactional-coverage-thresholds-open-end-lines- order-toyota-motor-credit-corporation.pdf. 35 Id. credit/.
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comments received, the Bureau issued a identify compliance weaknesses and 5.3 Small Business Data Collection 40 final rule amending Regulation C. will credit good faith compliance Section 1071 of the Dodd-Frank Act On September 20, 2017, the Bureau efforts. The Bureau intends to engage in amends ECOA to require financial issued proposed policy guidance a rulemaking to reconsider various institutions to collect, report, and make regarding the data the Bureau may make aspects of the 2015 HMDA Rule such as public certain information concerning available to the public beginning in the institutional and transactional credit applications made by women- 2019 from the HMDA data collected by coverage tests and the rule’s owned, minority-owned, and small financial institutions in or after 2018. discretionary data points. businesses. The amendments to ECOA The proposal described the For data collected in 2017, financial made by the Dodd-Frank Act require modifications that the Bureau intends to institutions will submit their reports in that specific data be collected, apply to the loan-level HMDA data to 2018 in accordance with the current maintained, and reported, including but protect applicant and borrower privacy, Regulation C using the Bureau’s HMDA not limited to the type of loan applied and it sought comment on those Platform.43 41 for, the amount of credit applied for, the proposals. type of action taken with regard to each In December 2017, the FFIEC agencies 5.2 ECOA and Regulation B application, the census tract of the issued public statements on HMDA On March 24, 2017, the Bureau issued principal place of business of the loan implementation announcing that the a proposed rule seeking comment on applicant, and the race, sex, and Bureau does not intend to require data amendments to Regulation B providing ethnicity of the principal owners of the resubmission unless data errors are creditors additional flexibility in business. The Dodd-Frank Act also material or assess penalties with respect complying with Regulation B in order to provides authority for the Bureau to to errors in data collected in 2018 and facilitate compliance with Regulation C, require any additional data that the reported in 2019 under HMDA. The adding certain model forms and Bureau determines would aid in Bureau’s statement also announced that removing others from Regulation B, and fulfilling the purposes of section 1071. the Bureau intends to engage in a making various other amendments to The Bureau issued a Request for rulemaking to reconsider various Regulation B and its commentary to Information in 2017 seeking public aspects of the 2015 HMDA Rule such as facilitate the collection and retention of comment on, among other things, the the institutional and transactional information about the ethnicity, sex, types of credit products offered and the coverage tests and the rule’s and race of certain mortgage types of data currently collected by discretionary data points.42 applicants.44 After considering the comments received, the Bureau issued a small business lenders and the potential 5.1.1 HMDA Announcement final rule on September 20, 2017, complexity, cost of, and privacy issues On December 21, 2017, the Bureau amending Regulation B.45 related to, small business lending data issued the following public statement On November 20, 2017, the Bureau collection. The information received regarding HMDA implementation: issued an official approval pursuant to will help the Bureau determine how to Recognizing the impending January 1, section 706(e) of ECOA of the final implement efficiently the Dodd-Frank 2018 effective date of the Bureau’s redesigned Uniform Residential Loan Act’s mandate regarding small business amendments to Regulation C and the Application that included a question lending data reporting, while significant systems and operational asking applicant language preference.46 minimizing burdens on lenders. challenges needed to adjust to the Bureau staff determined that the final 5.4 Amicus Program revised regulation, for HMDA data redesigned URLA is in compliance with The Bureau’s Amicus Program files collected in 2018 and reported in 2019 Regulation B § 1002.5(b) through (d), amicus, or friend-of-the-court, briefs in the Bureau does not intend to require which provide rules regarding requests court cases concerning the Federal data resubmission unless data errors are for information.47 consumer financial protection laws that material. Furthermore, the Bureau does the Bureau is charged with not intend to assess penalties with 43 CFPB Issues Public Statement On Home implementing, including ECOA. These respect to errors in data collected in Mortgage Disclosure Act Compliance (December 21, 2017), https://www.consumerfinance.gov/about-us/ amicus briefs provide the courts with 2018 and reported in 2019. Collection newsroom/cfpb-issues-public-statement-home- Bureau views on significant consumer and submission of the 2018 HMDA data mortgage-disclosure-act-compliance/. financial protection issues and help will provide financial institutions an 44 Proposed Amendments to Equal Credit ensure that consumer financial opportunity to identify any gaps in their Opportunity Act (Regulation B) Ethnicity and Race protection statutes and regulations are implementation of amended Regulation Information Collection, https://s3.amazonaws.com/ files.consumerfinance.gov/f/documents/201703_ correctly and consistently interpreted by C and make improvements in their cfpb_NPRM-to-amend-Regulation-B.pdf. the courts. HMDA compliance management 45 Amendments to Equal Credit Opportunity Act On September 13, 2017, the Bureau systems for future years. Any (Regulation B) Ethnicity and Race Information filed an amicus brief in Regions Bank v. examinations of 2018 HMDA data will Collection, https://www.consumerfinance.gov/ policy-compliance/rulemaking/final-rules/ Legal Outsource PA, in the United be diagnostic to help institutions amendments-equal-credit-opportunity-act- States Court of Appeals for the Eleventh regulation-b-ethnicity-and-race-information- Circuit.48 This case involves claims 40 Consumer Financial Protection Bureau, Home collection/. Mortgage Disclosure (Regulation C) Final Rule, 46 Consumer Financial Protection Bureau, Final under ECOA against a bank that https://www.consumerfinance.gov/policy- Redesigned Uniform Residential Loan Application allegedly required a business owner’s compliance/rulemaking/final-rules/regulation-c- Status under Regulation B, (Nov. 20, 2017), https:// spouse to guarantee a loan to the home-mortgage-disclosure-act/. s3.amazonaws.com/files.consumerfinance.gov/f/ business because of the fact that the 41 Disclosure of Loan-Level HMDA Data, http:// documents/cfpb_urla-language-preference- files.consumerfinance.gov/f/documents/201709_ question_bureau-official-approval_112017.pdf. business owner was married. The cfpb_hmda-disclosure-policy-guidance.pdf. 47 Regulation B § 1002.5(b) provides rules 42 Consumer Financial Protection Bureau, CFPB concerning requests for information about race, income from alimony, child support, or separate Issues Public Statement On Home Mortgage color, religion, national origin, or sex. Section maintenance; and childbearing or childrearing. Disclosure Act Compliance, (December 21, 2017), 1002.5(c) provides rules concerning requests for 48 A copy of the Bureau’s amicus brief is available https://www.consumerfinance.gov/about-us/ information about a spouse or former spouse. on its amicus web page, https:// newsroom/cfpb-issues-public-statement-home- Section 1002.5(d) provides rules concerning www.consumerfinance.gov/policy-compliance/ mortgage-disclosure-act-compliance/. requests for information regarding marital status; amicus/briefs/regions-bank-v-legal-outsource-pa/.
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Bureau filed an amicus brief arguing score and income, as well as for Information 54 and holding outreach that the district court erred in rejecting incorporating non-traditional sources of meetings in which the other supervisory claims by the business and various data such as education and employment agencies participated. The agencies then guarantors of the loan. First, the brief history. worked together to develop the argued that a business entity can state Under the terms of the no-action Guidelines. a claim for ECOA discrimination based letter, Upstart will share certain The Bureau, along with the FTC, DOJ, on its owner’s marital status. Second, information with the Bureau regarding HUD, FDIC, FRB, NCUA, OCC, and the the brief argued that regulations issued the loan applications it receives, how it Federal Housing Finance Agency, pursuant to ECOA reasonably interpret decides which loans to approve, and comprise the Interagency Task Force on the term ‘‘applicant’’ to encompass how it will mitigate risk to consumers, Fair Lending. The Task Force meets guarantors such that non-borrowers who as well as information on how its model regularly to discuss fair lending enforcement efforts, share current are required to guarantee their spouse’s expands access to credit for methods of conducting supervisory and loans can state claims for marital-status traditionally-underserved populations. enforcement fair lending activities, and discrimination. The Bureau expects that this coordinate fair lending policies. 5.5 No-Action Letter information will further its The Bureau belongs to a standing In 2017, the Bureau maintained a ‘‘No understanding of the use of alternative working group of Federal agencies— Action Letter’’ policy 49 that allowed data in credit decision-making. with the DOJ, HUD, and FTC—that companies to apply for a statement from The Upstart no-action letter was part meets regularly to discuss issues Bureau staff regarding an innovative of the Bureau’s continued exploration in relating to fair lending enforcement. product or service that offers the 2017 of innovation through the use of These agencies constitute the potential for significant consumer alternative data to help expand Interagency Working Group on Fair benefit where there is substantial responsible and fair credit access for Lending Enforcement. The agencies use uncertainty about whether or how consumers who are credit invisible or these meetings to discuss fair lending specific provisions of law would be lack sufficient credit history to provide developments and trends, applied. A no-action letter issued them traditional access to credit methodologies for evaluating fair pursuant to that policy would advise a markets. lending risks and violations, and recipient that staff has no present coordination of fair lending enforcement 6. Interagency Coordination intention to recommend initiation of an efforts. In addition to these interagency enforcement or supervisory action with 6.1 Interagency Coordination and working groups, we meet periodically respect to the specific matter. Engagement and on an ad hoc basis with the Justice On September 14, 2017, Bureau staff Department and prudential regulators to issued its first no-action letter to Upstart The Office of Fair Lending regularly coordinate our fair lending work. Network, Inc., a company that uses coordinates the Bureau’s fair lending In 2017, the Bureau chaired the FFIEC alternative data in making credit and regulatory, supervisory, and HMDA/Community Reinvestment Act pricing decisions.50 The Bureau’s no- enforcement activities with those of Data Collection Subcommittee, a action letter stated that Bureau staff had other Federal agencies and State subcommittee of the FFIEC Task Force no present intention to recommend regulators to promote consistent, on Consumer Compliance (Task Force), initiation of an enforcement or efficient, and effective enforcement of that oversees FFIEC projects and supervisory action against Upstart with Federal fair lending laws.51 Through our programs involving HMDA data regard to application of ECOA and interagency engagement, we work to collection and dissemination, the Regulation B. The letter applies to address current and emerging fair preparation of the annual FFIEC budget Upstart’s automated model for lending risks. for processing services, and the underwriting applicants for unsecured On August 22, 2017, the FFIEC development and implementation of non-revolving credit, as that model is agencies announced new HMDA other related HMDA processing projects described in the company’s application Examiner Transaction Testing as directed by the Task Force. materials. The letter is specific to the 52 Guidelines (Guidelines). The new 7. Outreach: Promoting Fair Lending facts and circumstances of Upstart and Guidelines were accompanied by the Compliance and Education does not serve as an endorsement of the release of a blog post by the Bureau.53 55 use of any particular variables or The Guidelines represent a joint effort Pursuant to Dodd-Frank, the Office modeling techniques in credit led by the Bureau, together with the of Fair Lending regularly engages in underwriting. FDIC, the FRB, the NCUA, and the OCC outreach with industry, bar associations, Upstart Network, Inc. is based in San to provide—for the first time—uniform consumer advocates, civil rights Carlos, California, and provides an guidelines across all Federal HMDA organizations, academia, and other online lending platform for consumers supervisory agencies. This collaboration government agencies, to help educate to apply for personal loans, including began with the Bureau issuing a Request and inform our stakeholders about fair credit card refinancing, student loans, lending as well as learn about emerging and debt consolidation. Upstart trends or products that pose fair lending 51 Dodd-Frank Act section 1013(c)(2)(B) (codified evaluates consumer loan applications at 12 U.S.C. 5493(c)(2)(B)). risk. The Bureau is committed to using traditional factors such as credit 52 FFIEC HMDA Examiner Transaction Testing communicating directly with all Guidelines, https://s3.amazonaws.com/ stakeholders on its policies, compliance 49 See proposed policy at: https:// files.consumerfinance.gov/f/documents/201708_ _ expectations, and fair lending priorities, www.consumerfinance.gov/policy-compliance/ cfpb ffiec-hmda-examiner-transaction-testing- and to receiving valuable input on fair notice-opportunities-comment/archive-closed/ guidelines.pdf. proposed-policy-on-no-action-letters/. 53 Tim Lambert & Eric Wang, Here’s what you 50 CFPB Announces First No-Action Letter to need to know about the new FFIEC HMDA 54 Request for Info. Regarding Home Mortgage Upstart Network, Consumer Financial Protection Examiner Transaction Testing Guidelines, Disclosure Act Resubmission Guidelines, 81 FR Bureau (Sept. 14, 2017), https:// Consumer Financial Protection Bureau (Aug. 22, 1,405 (Jan. 12, 2016), https://www.gpo.gov/fdsys/ www.consumerfinance.gov/about-us/newsroom/ 2017), https://www.consumerfinance.gov/about-us/ pkg/FR-2016-01-12/pdf/2016-00442.pdf. cfpb-announces-first-no-action-letter-upstart- blog/heres-what-you-need-know-about-new-ffiec- 55 Dodd-Frank Act section 1013(c)(2)(C) (codified network/. hmda-examiner-transaction-testing-guidelines/. at 12 U.S.C. 5493(c)(2)(C)).
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lending issues. Outreach is Bureau’s first no-action letter,57 7.3 Speaking Engagements & accomplished through issuance of announcing new guidelines on HMDA Roundtables Reports to Congress, Interagency examiner transaction testing,58 issuing Statements, Supervisory Highlights, an official approval of the final Staff from the Bureau’s Office of Fair Compliance Bulletins, letters, blog redesigned Uniform Residential Loan Lending and Equal Opportunity posts, speeches and presentations at Application,59 and noting the release of participated in a number of outreach conferences and trainings, and the fair lending annual report on 2016 speaking events and roundtables participation in meetings to discuss fair activities.60 throughout 2017 to further the Bureau’s lending and access to credit. The blog posts may be accessed at mission of educating and informing www.consumerfinance.gov/blog. stakeholders about fair lending and 7.1 Blog Posts 7.2 Supervisory Highlights receiving input from stakeholders. In these events, staff shared information on The Bureau regularly uses its blog as Supervisory Highlights reports anchor fair lending priorities, emerging issues, a tool to communicate effectively to the Bureau’s efforts to communicate and heard feedback from stakeholders consumers and other stakeholders on about the Bureau’s supervisory activity. timely issues, emerging areas of More information about the topics on Bureau fair-lending work. Some concern, Bureau initiatives, and more. discussed this year in Supervisory examples of the topics covered include In 2017 we published five blog posts Highlights can be found in Section 3.1 fair lending priorities, fair lending related to fair lending topics including: of this Report. As with all Bureau modeling and governance, redlining, Providing consumers updated resources, all editions of Supervisory HMDA, small business lending, information about a fair lending Highlights are available on alternative data, and installment lending enforcement action,56 announcing the www.consumerfinance.gov/reports. contracts.
APPENDIX A: DEFINED TERMS
Term Definition
AMS ...... Agricultural Marketing Service of the U.S. Department of Agriculture. Bureau ...... The Bureau of Consumer Financial Protection. CMS ...... Compliance Management System. CRA ...... Community Reinvestment Act. Dodd-Frank Act ...... The Dodd-Frank Wall Street Reform and Consumer Protection Act. DOJ ...... The U.S. Department of Justice. DOT ...... The U.S. Department of Transportation. ECOA ...... The Equal Credit Opportunity Act. FCA ...... Farm Credit Administration. FDIC ...... The U.S. Federal Deposit Insurance Corporation. Federal Reserve Board ...... The U.S. Board of Governors of the Federal Reserve System. FFIEC ...... The U.S. Federal Financial Institutions Examination Council—the FFIEC member agencies are the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Cor- poration (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Bureau of Consumer Financial Protection (BCFP). The State Liaison Committee was added to FFIEC in 2006 as a voting member. FRB ...... The U.S. Board of Governors of the Federal Reserve System. FTC ...... The U.S. Federal Trade Commission. GIPSA ...... Grain Inspection, Packers and Stockyards Administration (GIPSA) of the U.S. Department of Agri- culture. HMDA ...... The Home Mortgage Disclosure Act. HUD ...... The U.S. Department of Housing and Urban Development. NCUA ...... The National Credit Union Administration. OCC ...... The U.S. Office of the Comptroller of the Currency. SBA ...... Small Business Administration. SEC ...... U.S. Securities and Exchange Commission. USDA ...... U.S. Department of Agriculture.
[2]. Regulatory Requirements requirements under the law, and therefore exempt from notice and summarizes findings made in the course comment rulemaking requirements This Fair Lending Report of the of exercising the Bureau’s supervisory under the Administrative Procedure Act Bureau of Consumer Financial and enforcement authority. It is pursuant to 5 U.S.C. 553(b). Because no Protection summarizes existing
56 Patrice Alexander Ficklin, African-American supporting-consumer-friendly-innovation- Loan Application, Consumer Financial Protection and Hispanic borrowers harmed by Provident will announcing-our-first-no-action-letter/. Bureau (Nov. 20, 2017), https:// receive $9 million in compensation, Consumer 58 Tim Lambert & Eric Wang, Here’s what you www.consumerfinance.gov/about-us/blog/ Financial Protection Bureau (Nov. 2, 2017), https:// need to know about the new FFIEC HMDA identification-language-preference-uniform- www.consumerfinance.gov/about-us/blog/african- Examiner Transaction Testing Guidelines, residential-loan-application/. american-and-hispanic-borrowers-harmed- 60 provident-will-receive-9-million-compensation/. Consumer Financial Protection Bureau (Aug. 22, Patrice Alexander Ficklin, Safeguarding 2017), https://www.consumerfinance.gov/about-us/ 57 Patrice Alexander Ficklin and Dan Quan, against credit discrimination: 2016 Fair Lending Supporting consumer-friendly innovation: blog/heres-what-you-need-know-about-new-ffiec- Report (April 14, 2017), https:// Announcing our first no-action letter, Consumer hmda-examiner-transaction-testing-guidelines/. www.consumerfinance.gov/about-us/blog/ Financial Protection Bureau (Sept. 14, 2017), 59 J. Frank Vespa-Papaleo, Identification of safeguarding-against-credit-discrimination-2016- https://www.consumerfinance.gov/about-us/blog/ language preference on the Uniform Residential fair-lending-report/.
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notice of proposed rulemaking is COMMUNICATIONS,’’ filed May 18, Mailbox #24, Suite 08D09, Alexandria, required, the Regulatory Flexibility Act 2011, and issued January 5, 2016. VA 22350–1700. does not require an initial or final The Department of the Air Force may Instructions: All submissions received regulatory flexibility analysis. 5 U.S.C. grant the prospective license unless a must include the agency name, docket 603(a), 604(a). The Bureau has timely objection is received that number and title for this Federal determined that this Fair Lending sufficiently shows the grant of the Register document. The general policy Report does not impose any new or license would be inconsistent with the for comments and other submissions revise any existing recordkeeping, Bayh-Dole Act or implementing from members of the public is to make reporting, or disclosure requirements on regulations. A competing application for these submissions available for public covered entities or members of the a patent license agreement, completed viewing on the internet at http:// public that would be collections of in compliance with 35 U.S.C. 209; 37 www.regulations.gov as they are information requiring OMB approval CFR 404.8 and received by the Air Force received without change, including any under the Paperwork Reduction Act, 44 within the period for timely objections, personal identifiers or contact U.S.C. 3501, et seq. will be treated as an objection and may information. Dated: February 1, 2019. be considered as an alternative to the FOR FURTHER INFORMATION CONTACT: Kathleen L. Kraninger, proposed license. To request more information on this Director, Bureau of Consumer Financial Henry Williams, proposed information collection or to obtain a copy of the proposal and Protection. Acting Air Force Federal Register Liaison [FR Doc. 2019–01568 Filed 2–7–19; 8:45 am] Officer. associated collection instruments, please write to the Department of the BILLING CODE 4810–AM–P [FR Doc. 2019–01590 Filed 2–7–19; 8:45 am] Army, Military Surface Deployment and BILLING CODE 5001–10–P Distribution Command, 1 Soldier Way, Scott AFB IL 62225–5006, ATTN: Mr. DEPARTMENT OF DEFENSE DEPARTMENT OF DEFENSE J.D. Ranbarger, or call Department of the Department of the Air Force Army Reports Clearance Officer at (703) Department of the Army 428–6440. Notice of Intent To Grant an Exclusive SUPPLEMENTARY INFORMATION: Patent License [Docket ID: USA–2019–HQ–0004] Title; Associated Form; and OMB Number: Department of Defense AGENCY: Department of the Air Force, Proposed Collection; Comment Standard Tender of Freight Services; Department of Defense. Request SDDC Form 364–R; OMB Control ACTION: Notice of Intent. AGENCY: Department of the Army, DoD. Number 0704–0261. Needs and Uses: The information SUMMARY: Pursuant to the Bayh-Dole Act ACTION: Information collection notice. derived from the DoD tenders on file and implementing regulations, the with the Military Surface Deployment Department of the Air Force hereby SUMMARY: In compliance with the Paperwork Reduction Act of 1995, the and Distribution Command (SDDC) is gives notice of its intent to grant an used by SDDC subordinate commands exclusive patent license agreement to Department of the Army announces a proposed public information collection and DoD shippers to select the best VyrticalXpress LLC, a corporation of the value carriers to transport surface freight State of Ohio, having a place of business and seeks public comment on the provisions thereof. Comments are shipments. Freight carriers furnish at 5200 Springfield Road, Suite 300, information in a uniform format so that Dayton, Ohio 45431. invited on: Whether the proposed collection of information is necessary the Government can determine the cost DATES: Written objections must be filed of transportation, accessorial, and no later than fifteen (15) calendar days for the proper performance of the functions of the agency, including security services, and select the best after the date of publication of this value carriers for 1.1 million Bill of Notice. whether the information shall have practical utility; the accuracy of the Lading shipments annually. The DoD ADDRESSES: Submit written objections to agency’s estimate of the burden of the tender is the source document for the the Air Force Materiel Command Law proposed information collection; ways General Services Administration post- Office, AFMCLO/JAZ, 2240 B Street, to enhance the quality, utility, and shipment audit of carrier freight bills. Room 260, Wright-Patterson AFB, OH clarity of the information to be Affected Public: Business or other for- 45433–7109; Facsimile: (937) 255–3733; collected; and ways to minimize the profit. or Email: [email protected]. burden of the information collection on Annual Burden Hours: 27,351. Include Docket No. ARH–190107B–PL respondents, including through the use Number of Respondents: 82,053. Responses per Respondent: 1. in the subject line of the message. of automated collection techniques or Annual Responses: 82,053. FOR FURTHER INFORMATION CONTACT: Air other forms of information technology. Average Burden per Response: 20 Force Materiel Command Law Office, DATES: Consideration will be given to all minutes. AFMCLO/JAZ, 2240 B Street, Rm. 260, comments received by April 9, 2019. Frequency: On occasion. Wright-Patterson AFB, OH 45433–7109; ADDRESSES: You may submit comments, The DoD tender format was developed Facsimile: (937) 255–3733; Email: identified by docket number and title, to take advantage of improved [email protected]. by any of the following methods: information collection technology and SUPPLEMENTARY INFORMATION: The Federal eRulemaking Portal: http:// to connect with ongoing initiatives to Department of the Air Force intends to www.regulations.gov. Follow the implement automated systems to file grant an exclusive patent license instructions for submitting comments. tenders, select carriers, quote rates, and agreement for the invention described Mail: Department of Defense, Office of audits. The disciplined data fields of the in: the Chief Management Officer, tenders will facilitate the Electronic —U.S. Patent No. 9,230,549, entitled, Directorate for Oversight and Data Interchange of tender data between ‘‘MULTI-MODAL Compliance, 4800 Mark Center Drive, carriers and SDDC, also between SDDC
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subordinate commands and DoD received without change, including any DEPARTMENT OF DEFENSE shippers. This initiative ultimately will personal identifiers or contact permit electronic filing of the tender information. Department of the Army, Corps of and eliminate mailing paper documents, Engineers which are manually processed. FOR FURTHER INFORMATION CONTACT: To request more information on this Availability of the Draft Feasibility Dated: February 5, 2019. proposed information collection or to Report and Environmental Impact Aaron T. Siegel, obtain a copy of the proposal and Statement/Environmental Impact Alternate OSD Federal Register Liaison associated collection instruments, Report for the Prado Basin Ecosystem Officer, Department of Defense. please write to Department of the Army, Restoration and Water Conservation [FR Doc. 2019–01671 Filed 2–7–19; 8:45 am] Operations & Plans Officer Mortuary Integrated Feasibility Study, Riverside, BILLING CODE 5001–06–P Affairs and Casualty Support Division, San Bernardino and Orange Counties, California PERSCOM, (ATTN: Mr. Harold DEPARTMENT OF DEFENSE Campbell), 200 Stovall Street, Hoffman AGENCY: U. S. Army Corps of Engineers, I, Alexandria, Virginia 22332–0300, or DoD. Department of the Army call the Department of the Army Reports ACTION: Notice of availability. Clearance Officer at (703) 428–6440. [Docket ID USA–2019–HQ–0003] SUMMARY: The U.S. Army Corps of SUPPLEMENTARY INFORMATION: Engineers (Corps) in cooperation with Proposed Collection; Comment the Orange County Water District Request Title; Associated Form; and OMB Number: Disposition of Remains— announces the availability of a Draft AGENCY: Department of the Army, DoD. Reimbursable Basis and Request for Feasibility Report and Environmental ACTION: Information collection notice. Payment of Funeral and/or Interment Impact Statement/Environmental Expense; DD Forms 2065 and 1375; Impact Report (FR/EIS/EIR) for the SUMMARY: In compliance with the OMB Control Number 0704–0030. Prado Basin Ecosystem Restoration and Paperwork Reduction Act of 1995, the Water Conservation Integrated Department of the Army announces a Needs and Uses: DD Form 2065 Feasibility Study for review and proposed public information collection records disposition instructions and comment. The study area is located and seeks public comment on the costs for preparation and final within and downstream of Prado Dam provisions thereof. Comments are disposition of remains. DD Form 1375 Reservoir and includes portions of invited on: Whether the proposed provides next-of-kin an instrument to Riverside, San Bernardino and Orange collection of information is necessary apply for reimbursement of funeral/ Counties, California. The study for the proper performance of the interment expenses. This information is evaluates alternatives for the restoration functions of the agency, including used to adjudicate claims for of degraded ecosystem structure, whether the information shall have reimbursement of these expenses. function, and dynamic processes to a practical utility; the accuracy of the Affected Public: Individuals or less degraded, more natural condition agency’s estimate of the burden of the Households. within Prado Dam Reservoir and the proposed information collection; ways Santa Ana River downstream of the to enhance the quality, utility, and Annual Burden Hours: 612.5. dam. The study also includes water clarity of the information to be Number of Respondents: 2,450. conservation through re-operation of collected; and ways to minimize the Responses per Respondent: 1. Prado Dam to capture, retain and release burden of the information collection on additional water volumes impounded respondents, including through the use Annual Responses: 2,450. during flood risk management of automated collection techniques or Average Burden per Response: 15 operations. Details of the potential other forms of information technology. minutes. ecosystem restoration measures, water DATES: Consideration will be given to all Frequency: On occasion. conservation plan and an array of comments received by April 9, 2019. alternatives are identified in the Draft DD Forms 2065 and 1375 are initially ADDRESSES: You may submit comments, FR/EIS/EIR. Four alternatives are prepared by military authorities and evaluated in the Draft FR/EIS/EIR, identified by docket number and title, presented to the next-of-kin or sponsor by any of the following methods: including the No Federal Action/No to fill-in the reimbursable costs or Federal eRulemaking Portal: http:// Project Alternative. Potential desired disposition of remains. Without www.regulations.gov. Follow the environmental impacts associated with instructions for submitting comments. the information on these forms the these project alternatives are addressed Mail: Department of Defense, Office of government would not be able to in the Draft FR/EIS/EIR. A Notice of the Chief Management Officer, respond to the survivor’s wishes or Intent for the EIS/EIR was published on Directorate for Oversight and justify its expenses in handling the November 16, 2012 (73 FR 72455). Compliance, 4800 Mark Center Drive, deceased. Also available at government DATES: The Draft FR/EIS/EIR is available Mailbox #24, Suite 08D09, Alexandria, expense is transportation of the remains for a 45-day review period from VA 22350–1700. to a port of entry in the United States. February 11, 2019 through March 27, Instructions: All submissions received Dated: February 5, 2019. 2019 pursuant to the National Environmental Policy Act (NEPA) and must include the agency name, docket Shelly E. Finke, number and title for this Federal California Environmental Quality Act Register document. The general policy Alternate OSD Federal Register, Liaison (CEQA). Written comments pursuant to Officer, Department of Defense. for comments and other submissions NEPA will be accepted until the close from members of the public is to make [FR Doc. 2019–01598 Filed 2–7–19; 8:45 am] of public review at close of business on these submissions available for public BILLING CODE 5001–06–P March 27, 2019. viewing on the internet at http:// ADDRESSES: Comments shall be www.regulations.gov as they are submitted to: Mr. Eduardo Demesa, U.S.
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Army Corps of Engineers, Los Angeles DEPARTMENT OF DEFENSE • Tuesday, February 19 at the Fort District, Planning Division, 915 Wilshire Peck Interpretive Center, Yellowstone Boulevard, Los Angeles, CA 90017; Department of the Army, Corps of Road, Fort Peck, Montana 59223. ATTN: Ms. Megan Wong, CESPL–PDR– Engineers • Wednesday, February 20 at the N. Williams County Administrative Notice of Intent To Prepare an FOR FURTHER INFORMATION CONTACT: Building, 206 East Broadway, Williston, Environmental Impact Statement for Ms. Megan Wong, Environmental North Dakota 58801. Implementing Test Releases From Fort Coordinator, Ecosystem Planning Scoping comments can be given in Peck Dam, Montana Section, Megan.T.Wong@ writing at the in-person scoping meetings or can be emailed to: cenwo- usace.army.mil, telephone (213) 448– AGENCY: Department of the Army, U.S. [email protected]. 4517; or Mr. Stuart Strum, Senior Army Corps of Engineers, DoD. Scoping comments can also be mailed Planner, Plan Formulation Branch/ ACTION: Notice. to: U.S. Army Corps of Engineers, Section A, Stuart.R.Strum@ Omaha District, ATTN: CENWO–PM– usace.army.mil, telephone (213) 452– SUMMARY: Pursuant to the National AC–Fort Peck EIS, 1616 Capitol Avenue, 3862. Environmental Policy Act of 1969 (NEPA), as amended, the U.S. Army Omaha, NE 68102. SUPPLEMENTARY INFORMATION: As part of Corps of Engineers (USACE), Omaha Please note that before including your the public involvement process, notice District, intends to prepare an address, phone number, email address, is hereby given by the Corps Los Environmental Impact Statement (EIS) or any other personal identifying Angeles District of a public meeting to for implementing test flow releases from information in your comment, you be held at the Prado Dam Resident Fort Peck Dam, Montana, intended to should be aware that your entire Office, Visitor Center, 2493 Pomona- benefit the federally endangered pallid comment—including your personal Rincon Road, Corona, CA 92880, at 2:00 sturgeon (Scaphirynchus albus). identifying information—may be made p.m. and at 6:00 p.m. (Pacific Standard available to the public at any time. FOR FURTHER INFORMATION CONTACT: Time), Thursday, March 7, 2019. The While you can request us to withhold public meeting will allow participants Tiffany Vanosdall, U.S. Army Corps of your personal identifying information the opportunity to comment on the Draft Engineers at (402) 995–2695 or by email from public review, was cannot FR/EIS/EIR. Attendance at the public at [email protected]. guarantee that we will be able to do so. hearing is not necessary to provide SUPPLEMENTARY INFORMATION: In the People needing special assistance to comments. Written comments may also January 19, 2018 amendment to the attend and/or participate in the be given to the contacts listed under October 30, 2017 Biological Assessment meetings should contact: U.S. Army ADDRESSES. (BA) for the Operation of the Missouri Corps of Engineers, Omaha District, The document is available for review River Mainstem Reservoir System, the ATTN: CENWO–PM–AC, 1616 Capitol at: Operation and Maintenance of the Bank Ave, Omaha, NE 68102 or email cenwo- (1) Online at https:// Stabilization and Navigation Project, the [email protected]. To allow www.spl.usace.army.mil/Missions/Civil- Operation of the Kansas River Reservoir sufficient time to process special Works/Projects-Studies/Prado-Basin- System, and the Implementation of the requests. Please contact no later than Feasibility-Study/. Missouri River Recovery Management one week before the public meeting. (2) List of Libraries; CD and Hard Plan (MRRMP), the USACE proposed, Brenda S. Bowen, Copy. among other things to work with the Army Federal Register Liaison Officer. Anaheim Public Library, 500 West U.S. Fish and Wildlife Service (USFWS) Broadway, Anaheim, CA 92805 and the Missouri River Recovery [FR Doc. 2019–01469 Filed 2–7–19; 8:45 am] Yorba Linda Public Library, 18181 Implementation Committee (MRRIC) to BILLING CODE 3720–58–P Imperial Highway, Yorba Linda, CA ‘‘review previous information and 92886 information generated since the effects Corona Public Library, 650 Main Street, analysis to formulate test flow releases DEPARTMENT OF EDUCATION Corona, CA 92882 from Fort Peck Dam and an adaptive management framework for their Applications for New Awards; College Norco Public Library, 3240 Hamner Assistance Migrant Program Ave., Suite 101B, Norco, CA 91760 implementation.’’ This commitment was Eastvale Branch Library, 7447 Scholar relied upon by the USFWS in its 2018 AGENCY: Office of Elementary and Way, Eastvale, CA 92880 Biological Opinion (BiOp) finding that Secondary Education, Department of Riverside Public Library, 3581 Mission the USACE’s proposed action is ‘not Education. likely to jeopardize’ pallid sturgeon. The Inn Avenue, Riverside, CA 92501 ACTION: Notice. UC Riverside General Library, PO Box EIS will document the formulation and 5900, Riverside, CA 92517 evaluation of test-flow alternatives from SUMMARY: The Department of Education San Bernardino County Library, 555 Fort Peck Dam intended to benefit is issuing a notice inviting applications West 6th Street, San Bernardino, CA pallid sturgeon. for fiscal year (FY) 2019 for the College 92410 The EIS scoping period will extend Assistance Migrant Program (CAMP), Chino Branch Library, 13180 Central from February 8, 2019 through March Catalog of Federal Domestic Assistance Ave., Chino, CA 91710 11, 2019. Public comments are invited (CFDA) number 84.149A. Chino Hills Branch Library, 14020 City to assist in identifying the scope of DATES: Center Drive, Chino Hills, CA 91709 potentially affected environmental, Applications Available: February 8, social, and economic issues relevant to 2019. Dated: February 1, 2019. the proposed Federal action and Deadline for Transmittal of Aaron C. Barta, determining reasonable alternatives to Applications: April 9, 2019. Colonel, U.S. Army, Commander and District be considered in the EIS. Deadline for Intergovernmental Engineer. In-person public scoping meetings Review: June 10, 2019. [FR Doc. 2019–01649 Filed 2–7–19; 8:45 am] will be held from 5:30 p.m. to 7:30 p.m. Pre-Application Webinar Information: BILLING CODE 3720–58–P on: The Department will hold a pre-
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application workshop via webinar for Projects designed to improve student Note: The regulations in 34 CFR part 86 prospective applicants on February 20, achievement or other educational apply to IHEs only. 2019, 1:30 p.m. Eastern Time. outcomes in one or more of the Note: The ESEA definitions and NFJP ADDRESSES: For the addresses for following areas: Science, technology, definitions and eligibility regulations apply obtaining and submitting an engineering, math, or computer science. to individuals seeking to qualify for CAMP application, please refer to our Common These projects must address the based on past participation in the Migrant Instructions for Applicants to following priority area: Creating or Education Program or NFJP. Department of Education Discretionary expanding partnerships between Grant Programs, published in the schools, local educational agencies, II. Award Information Federal Register on February 12, 2018 State educational agencies, businesses, Type of Award: Discretionary grants. not-for-profit organizations, or IHEs to (83 FR 6003) and available at Estimated Available Funds: give students access to internships, www.govinfo.gov/content/pkg/FR-2018- $4,823,000. apprenticeships, or other work-based 02-12/pdf/2018-02558.pdf. Contingent upon the availability of learning experiences in STEM fields, FOR FURTHER INFORMATION CONTACT: funds and the quality of applications, including computer science (as defined Carla Kirksey, U.S. Department of we may make additional awards in in the Supplemental Priorities). Education, 400 Maryland Avenue SW, subsequent years from the list of Room 3E337, Washington, DC 20202. Competitive Preference Priority 2— unfunded applications from this Telephone: (202) 260–2114. Email: Consideration of Prior Experience. (0 to competition. [email protected]. 15 points) Estimated Range of Awards: If you use a telecommunications Projects that are expiring (current $180,000–$425,000. device for the deaf (TDD) or a text CAMP grantees in their fifth year) will Estimated Average Size of Awards: telephone (TTY), call the Federal Relay be considered for additional points $402,000. Service (FRS), toll free, at 1–800–877– under Competitive Preference Priority 2. Maximum Award: We will not make 8339. In accordance with section 418A(e) of an award exceeding $425,000 for a SUPPLEMENTARY INFORMATION: the HEA, the Department will award up single budget period of 12 months. to 15 points for this priority. The Under 34 CFR 75.104(b) the Secretary Full Text of Announcement Secretary will consider the applicant’s may reject without consideration or I. Funding Opportunity Description prior experience in implementing its evaluation any application that expiring CAMP project, based on proposes a project funding level that Purpose of Program: CAMP is performance report information to exceeds the stated maximum award designed to assist eligible persons who include, but not limited to, the amount. are enrolled or are admitted for percentage of CAMP participants Minimum Award: The Department enrollment on a full-time basis at an completing the first academic year of will not make an award for less than the institution of higher education (IHE) their postsecondary program and the amount of $180,000 for a single budget complete their first academic year. percentage of CAMP participants who, period of 12 months. Under section Priorities: This competition includes after completing the first academic year 418A of the HEA, the Secretary is two competitive preference priorities. of college, continue their postsecondary prohibited from making an award for Competitive Preference Priority 1 is education. less than the stated award amount. from the Secretary’s Final Supplemental Program Authority: 20 U.S.C. 1070d–2. Therefore, we will reject any application Priorities and Definitions for that proposes a CAMP award that is less Discretionary Grant Programs Applicable Regulations: (a) The than the stated minimum award (Supplemental Priorities) published in Education Department General amount. the Federal Register on March 2, 2018 Administrative Regulations in 34 CFR Estimated Number of Awards: 12. (83 FR 9096). In accordance with 34 parts 75, 77, 79, 81, 82, 84, 86, 97, 98, CFR 75.105(b)(2)(iv), Competitive and 99. (b) The Office of Management Note: The Department is not bound by any Preference Priority 2 is from section and Budget Guidelines to Agencies on estimates in this notice. 418A of the Higher Education Act of Governmentwide Debarment and Project Period: Up to 60 months (five 1965, as amended (HEA) (20 U.S.C. Suspension (Nonprocurement) in 2 CFR 12-month budget periods). Except under 1070d–2(e)). part 180, as adopted and amended as extraordinary circumstances, the Competitive Preference Priorities: For regulations of the Department in 2 CFR Secretary shall award grants for a five- FY 2019 and any subsequent year in part 3485. (c) The Uniform year period. Applicants under this which we make awards from the list of Administrative Requirements, Cost competition are required to provide unfunded applications from this Principles, and Audit Requirements for detailed budget information for each competition, these priorities are Federal Awards in 2 CFR part 200, as year of the proposed project and for the competitive preference priorities. Under adopted and amended as regulations of total grant, and we may reject any 34 CFR 75.105(c)(2)(i) we award an the Department in 2 CFR part 3474. (d) application that does not do so as additional 3 points to an application The regulations for this program in 34 reflected on the applicant’s ED 524 that meets Competitive Preference CFR part 206. (e) The definitions in the form, Table A, submitted as a part of the Priority 1, and we award up to an Elementary and Secondary Education application. additional 15 points to an application, Act of 1965, as amended (ESEA), of depending on how well the application ‘‘migratory agricultural worker’’ (section III. Eligibility Information meets Competitive Preference Priority 2. 1309(2)), ‘‘migratory child’’ (section 1. Eligible Applicants: An IHE or a These priorities are: 1309(3)), and ‘‘migratory fisher’’ (section private nonprofit organization may Competitive Preference Priority 1— 1309(4)). (f) The National Farmworker apply for a grant to operate a CAMP Promoting Science, Technology, Jobs Program (NFJP) definitions in 20 project. If a private nonprofit Engineering, or Math (STEM) Education, CFR 685.110 and eligibility regulations organization other than an IHE applies With a Particular Focus on Computer in 20 CFR 685.320. (g) The for a CAMP grant, that agency must plan Science. (0 or 3 points) Supplemental Priorities. the project in cooperation with an IHE
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and must propose to operate the project on which we can find this information. (1) The Secretary considers the with the facilities of that IHE. For additional information please see 34 quality of the design of the proposed 2. Cost Sharing or Matching: This CFR 5.11(c). project. competition does not require cost 3. Intergovernmental Review: This (2) In determining the quality of the sharing or matching. However, competition is subject to Executive design of the proposed project, the consistent with 34 CFR 75.700, which Order 12372 and the regulations in 34 Secretary considers one or more of the requires an applicant to comply with its CFR part 79. Information about following factors: approved application, an applicant that Intergovernmental Review of Federal (i) The extent to which the goals, proposes non-Federal matching funds Programs under Executive Order 12372 objectives, and outcomes to be achieved and is awarded a grant must provide is in the application package for this by the proposed project are clearly those funds for each year that the funds competition. specified and measurable. (up to 7 are proposed. 4. Funding Restrictions: We reference points) 3. Subgrantees: Under 34 CFR regulations outlining funding (ii) The extent to which the design of 75.708(b) and (c) a grantee under this restrictions in the Applicable the proposed project is appropriate to, competition may award subgrants—to Regulations section of this notice. and will successfully address, the needs directly carry out project activities 5. Recommended Page Limit: The of the target population or other described in its application—to the application narrative is where you, the identified needs. (up to 7 points) applicant, address the selection criteria following types of entities: IHEs and (iii) The extent to which the proposed that reviewers use to evaluate your nonprofit organizations. The grantee project will establish linkages with application. We recommend that you (1) may award subgrants to entities it has other appropriate agencies and limit the application narrative to no identified in an approved application or organizations providing services to the more than 25 pages and (2) use the that it selects through a competition target population. (up to 7 points) under procedures established by the following standards: • ″ ″ (iv) The extent to which the proposed grantee. A ‘‘page’’ is 8.5 x 11 , on one side only, with 1″ margins at the top, bottom, project demonstrates a rationale (as 4. Other: Projects funded under this defined in 34 CFR 77.1(c)). (up to 7 competition must budget for a three-day and both sides. • points) Office of Migrant Education annual Double space (no more than three (c) Quality of project services (up to meeting for CAMP Directors in the lines per vertical inch) all text in the 12 points). Washington, DC area during each year application narrative, including titles, (1) The Secretary considers the of the project period. headings, footnotes, quotations, references, and captions, as well as all quality of the services to be provided by IV. Application and Submission text in charts, tables, figures, and the proposed project. Information graphs. (2) In determining the quality of the 1. Application Submission • Use a font that is either 12 point or services to be provided by the proposed Instructions: Applicants are required to larger or no smaller than 10 pitch project, the Secretary considers the follow the Common Instructions for (characters per inch). quality and sufficiency of strategies for • Applicants to Department of Education Use one of the following fonts: ensuring equal access and treatment for Discretionary Grant Programs, Times New Roman, Courier, Courier eligible project participants who are published in the Federal Register on New, or Arial. members of groups that have February 12, 2018 (83 FR 6003) and The recommended page limit does not traditionally been underrepresented available at www.govinfo.gov/content/ apply to the cover sheet; the budget based on race, color, national origin, pkg/FR-2018-02-12/pdf/2018-02558.pdf, section, including the narrative budget gender, age, or disability. which contain information on how to justification; the assurances and (3) In addition, the Secretary submit an application. certifications; or the one-page abstract, considers the following factor: 2. Submission of Proprietary the resumes, the bibliography, or the (i) The extent to which the services to Information: Given the types of projects letters of support. However, the be provided by the proposed project are that may be proposed in applications for recommended page limit does apply to appropriate to the needs of the intended CAMP, your application may include all of the application narrative. recipients or beneficiaries of those business information that you consider V. Application Review Information services. (up to 12 points) proprietary. In 34 CFR 5.11 we define (d) Quality of project personnel (Up to 1. Selection Criteria: The selection 10 points). ‘‘business information’’ and describe the criteria for this competition are from 34 process we use in determining whether (1) The Secretary considers the CFR 75.210 and are as follows: quality of the personnel who will carry any of that information is proprietary (a) Need for project (up to 20 points). and, thus, protected from disclosure (1) The Secretary considers the need out the proposed project. under Exemption 4 of the Freedom of for the proposed project. (2) In determining the quality of Information Act (5 U.S.C. 552, as (2) In determining the need for the project personnel, the Secretary amended). proposed project, the Secretary considers the extent to which the Because we plan to make successful considers the following factors: applicant encourages applications for applications available to the public, you (i) The magnitude of the need for the employment from persons who are may wish to request confidentiality of services to be provided or the activities members of groups that have business information. to be carried out by the proposed traditionally been underrepresented Consistent with Executive Order project. (up to 10 points) based on race, color, national origin, 12600, please designate in your (ii) The extent to which the proposed gender, age, or disability. application any information that you project will focus on serving or (3) In addition, the Secretary believe is exempt from disclosure under otherwise addressing the needs of considers the following factors: Exemption 4. In the appropriate disadvantaged individuals. (up to 10 (i) The qualifications, including Appendix section of your application, points) relevant training and experience, of the under ‘‘Other Attachments Form,’’ (b) Quality of the project design (up project director or principal please list the page number or numbers to 28 points). investigator. (up to 7 points)
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(ii) The qualifications, including or activities receiving Federal financial Representative and U.S. Senators and relevant training and experience, of key assistance from the Department (34 CFR send you a Grant Award Notification project personnel. (up to 3 points) 100.4, 104.5, 106.4, 108.8, and 110.23). (GAN); or we may send you an email (e) Adequacy of resources (up to 10 Additional factors we consider in containing a link to access an electronic points). selecting an application for an award are version of your GAN. We may notify (1) The Secretary considers the in section 418A of the HEA. In you informally, also. adequacy of resources for the proposed accordance with section 418A, the If your application is not evaluated or project. Secretary makes CAMP awards based on not selected for funding, we notify you. (2) In determining the adequacy of the number, quality, and promise of the 2. Administrative and National Policy resources for the proposed project, the applications. Additionally, the Secretary Requirements: We identify Secretary considers the following will consider the need to provide an administrative and national policy factors: equitable geographic distribution of requirements in the application package (i) The adequacy of support, including CAMP awards. and reference these and other facilities, equipment, supplies, and 3. Risk Assessment and Specific requirements in the Applicable other resources, from the applicant Conditions: Consistent with 2 CFR Regulations section of this notice. organization or the lead applicant 200.205, before awarding grants under We reference the regulations outlining organization. (up to 3 points) this competition the Department the terms and conditions of an award in (ii) The relevance and demonstrated conducts a review of the risks posed by the Applicable Regulations section of commitment of each partner in the applicants. Under 2 CFR 3474.10, the this notice and include these and other proposed project to the implementation Secretary may impose specific specific conditions in the GAN. The and success of the project. (up to 3 conditions and, in appropriate GAN also incorporates your approved points) circumstances, high-risk conditions on a application as part of your binding (iii) The extent to which the costs are grant if the applicant or grantee is not commitments under the grant. reasonable in relation to the objectives, financially stable; has a history of 3. Open Licensing Requirements: design, and potential significance of the unsatisfactory performance; has a Unless an exception applies, if you are proposed project. (up to 4 points) financial or other management system awarded a grant under this competition, (f) Quality of the project evaluation that does not meet the standards in 2 you will be required to openly license (up to 20 points). CFR part 200, subpart D; has not to the public grant deliverables created (1) The Secretary considers the fulfilled the conditions of a prior grant; in whole, or in part, with Department quality of the evaluation to be or is otherwise not responsible. grant funds. When the deliverable conducted of the proposed project. 4. Integrity and Performance System: consists of modifications to pre-existing (2) In determining the quality of the If you are selected under this works, the license extends only to those evaluation, the Secretary considers the competition to receive an award that modifications that can be separately following factors: over the course of the project period identified and only to the extent that (i) The extent to which the methods may exceed the simplified acquisition open licensing is permitted under the of evaluation are thorough, feasible, and threshold (currently $250,000), under 2 terms of any licenses or other legal appropriate to the goals, objectives, and CFR 200.205(a)(2) we must make a restrictions on the use of pre-existing outcomes of the proposed project. (up to judgment about your integrity, business works. Additionally, a grantee or 10 points) ethics, and record of performance under subgrantee that is awarded competitive (ii) The extent to which the methods Federal awards—that is, the risk posed grant funds must have a plan to of evaluation will provide performance by you as an applicant—before we make disseminate these public grant feedback and permit periodic an award. In doing so, we must consider deliverables. This dissemination plan assessment of progress toward achieving any information about you that is in the can be developed and submitted after intended outcomes. (up to 5 points) integrity and performance system your application has been reviewed and (iii) The extent to which the methods (currently referred to as the Federal selected for funding. For additional of evaluation will, if well implemented, Awardee Performance and Integrity information on the open licensing produce promising evidence (as defined Information System (FAPIIS)), requirements please refer to 2 CFR in 34 CFR 77.1(c)) about the project’s accessible through the System for 3474.20. effectiveness. (up to 5 points) Award Management. You may review 4. Reporting: (a) If you apply for a 2. Review and Selection Process: We and comment on any information about grant under this competition, you must remind potential applicants that in yourself that a Federal agency ensure that you have in place the reviewing applications in any previously entered and that is currently necessary processes and systems to discretionary grant competition, the in FAPIIS. comply with the reporting requirements Secretary may consider, under 34 CFR Please note that, if the total value of in 2 CFR part 170 should you receive 75.217(d)(3), the past performance of the your currently active grants, cooperative funding under the competition. This applicant in carrying out a previous agreements, and procurement contracts does not apply if you have an exception award, such as the applicant’s use of from the Federal Government exceeds under 2 CFR 170.110(b). funds, achievement of project $10,000,000, the reporting requirements (b) At the end of your project period, objectives, and compliance with grant in 2 CFR part 200, Appendix XII, you must submit a final performance conditions. The Secretary may also require you to report certain integrity report, including financial information, consider whether the applicant failed to information to FAPIIS semiannually. as directed by the Secretary. If you submit a timely performance report or Please review the requirements in 2 CFR receive a multiyear award, you must submitted a report of unacceptable part 200, Appendix XII, if this grant submit an annual performance report quality. plus all the other Federal funds you that provides the most current In addition, in making a competitive receive exceed $10,000,000. performance and financial expenditure grant award, the Secretary requires information as directed by the Secretary various assurances, including those VI. Award Administration Information under 34 CFR 75.118. The Secretary applicable to Federal civil rights laws 1. Award Notices: If your application may also require more frequent that prohibit discrimination in programs is successful, we notify your U.S. performance reports under 34 CFR
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75.720(c). For specific requirements on from the Department (34 CFR 100.4, prospective applicants on February 20, reporting, please go to www.ed.gov/ 104.5, 106.4, 108.8, and 110.23). 2019, 1:30 p.m. Eastern Time. fund/grant/apply/appforms/ VII. Other Information ADDRESSES: For the addresses for appforms.html. obtaining and submitting an 5. Performance Measures: Under the Accessible Format: Individuals with application, please refer to our Common Government Performance and Results disabilities can obtain this document Instructions for Applicants to Act of 1993 (GPRA), the Department and a copy of the application package in Department of Education Discretionary developed the following performance an accessible format (e.g., braille, large Grant Programs, published in the measures to evaluate the overall print, audiotape, or compact disc) on Federal Register on February 12, 2018 effectiveness of CAMP: (1) The request to the program contact person (83 FR 6003) and available at percentage of CAMP participants listed under FOR FURTHER INFORMATION www.govinfo.gov/content/pkg/FR-2018- completing the first academic year of CONTACT. 02-12/pdf/2018-02558.pdf. their postsecondary program, and (2) the Electronic Access to This Document: FOR FURTHER INFORMATION CONTACT: percentage of CAMP participants who, The official version of this document is Steven Carr, U.S. Department of after completing the first academic year the document published in the Federal Education, 400 Maryland Avenue SW, of college, continue their postsecondary Register. You may access the official Room 3E321, Washington, DC 20202. education. edition of the Federal Register and the Telephone: (202) 260–2067. Email: Applicants must propose annual Code of Federal Regulations at [email protected]. targets for these measures in their www.govinfo.gov. At this site you can If you use a telecommunications applications. The national target for view this document, as well as all other device for the deaf (TDD) or a text GPRA measure 1 for FY 2019 is that 86 documents of this Department telephone (TTY), call the Federal Relay percent of CAMP participants will published in the Federal Register, in Service (FRS), toll free, at 1–800–877– complete the first academic year of their text or Portable Document Format 8339. postsecondary program. The national (PDF). To use PDF you must have SUPPLEMENTARY INFORMATION: target for GPRA measure 2 for FY 2019 Adobe Acrobat Reader, which is is that 85 percent of CAMP participants available free at the site. Full Text of Announcement continue their postsecondary education You may also access documents of the I. Funding Opportunity Description after completing the first academic year Department published in the Federal Purpose of Program: The HEP is of college. The national targets for Register by using the article search designed to assist eligible persons to subsequent years may be adjusted based feature at: www.federalregister.gov. obtain the equivalent of a secondary on additional baseline data. The panel Specifically, through the advanced school diploma and subsequently to readers will score related selection search feature at this site, you can limit criteria on the basis of how well an gain improved employment, enter into your search to documents published by applicant addresses these GPRA military service, or be placed in an the Department. measures. Therefore, applicants will institution of higher education (IHE) or want to consider how to demonstrate a Dated: February 5, 2019. other postsecondary education or sound capacity to provide reliable data Frank Brogan, training. on the GPRA measures, including the Assistant Secretary for Elementary and Priorities: This competition includes project’s annual performance targets for Secondary Education. two competitive preference priorities. addressing the GPRA performance [FR Doc. 2019–01701 Filed 2–7–19; 8:45 am] Competitive Preference Priority 1 is measures, as is required by the Office of BILLING CODE 4000–01–P from the Secretary’s Final Supplemental Management and Budget approved Priorities and Definitions for annual performance report that is Discretionary Grant Programs included in the application package. All DEPARTMENT OF EDUCATION (Supplemental Priorities) published in grantees will be required to submit, as the Federal Register on March 2, 2018 part of their annual performance report, Applications for New Awards; High (83 FR 9096). In accordance with 34 information with respect to these GPRA School Equivalency Program CFR 75.105(b)(2)(iv), Competitive performance measures. Preference Priority 2 is from section AGENCY: Office of Elementary and 6. Continuation Awards: In making a 418A of the Higher Education Act of continuation award under 34 CFR Secondary Education, Department of Education. 1965, as amended (HEA) (20 U.S.C. 75.253, the Secretary considers, among 1070d–2(e)). other things: Whether a grantee has ACTION: Notice. Competitive Preference Priorities: For made substantial progress in achieving FY 2019 and any subsequent year in SUMMARY: The Department of Education the goals and objectives of the project; which we make awards from the list of is issuing a notice inviting applications whether the grantee has expended funds unfunded applications from this for fiscal year (FY) 2019 for the High in a manner that is consistent with its competition, these priorities are School Equivalency Program (HEP), approved application and budget; and, competitive preference priorities. Under Catalog of Federal Domestic Assistance if the Secretary has established 34 CFR 75.105(c)(2)(i) we award an (CFDA) number 84.141A. performance measurement additional 3 points to an application requirements, the performance targets in DATES: that meets Competitive Preference the grantee’s approved application. Applications Available: February 8, Priority 1, and we award up to an In making a continuation award, the 2019. additional 15 points to an application, Secretary also considers whether the Deadline for Transmittal of depending on how well the application grantee is operating in compliance with Applications: April 9, 2019. meets Competitive Preference Priority 2. the assurances in its approved Deadline for Intergovernmental These priorities are: application, including those applicable Review: June 10, 2019. Competitive Preference Priority 1— to Federal civil rights laws that prohibit Pre-Application Webinar Information: Fostering Flexible and Affordable Paths discrimination in programs or activities The Department will hold a pre- to Obtaining Knowledge and Skills. (0 or receiving Federal financial assistance application workshop via webinar for 3 points)
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Projects that are designed to address Note: The ESEA definitions and NFJP 2. Cost Sharing or Matching: This the following priority area will be definitions and eligibility regulations apply competition does not require cost considered for additional points under to individuals seeking to qualify for HEP sharing or matching. However, Competitive Preference Priority 1: based on past participation in the Migrant consistent with 34 CFR 75.700, which Education Program or NFJP. Improving collaboration between requires an applicant to comply with its education providers and employers to II. Award Information approved application, an applicant that ensure student learning objectives are proposes non-Federal matching funds Type of Award: Discretionary grants. aligned with the skills or knowledge and is awarded a grant must provide Estimated Available Funds: required for employment in in-demand those funds for each year that the funds $6,431,000. are proposed. industry sectors or occupations (as Contingent upon the availability of defined in section 3(23) of the 3. Subgrantees: Under 34 CFR funds and the quality of applications, 75.708(b) and (c) a grantee under this Workforce Innovation and Opportunity we may make additional awards in Act of 2014). competition may award subgrants—to subsequent years from the list of directly carry out project activities Competitive Preference Priority 2— unfunded applications from this described in its application—to the Consideration of Prior Experience. (0 to competition. following types of entities: IHEs and 15 points) Estimated Range of Awards: nonprofit organizations. The grantee Projects that are expiring (current HEP $180,000–$475,000. may award subgrants to entities it has grantees in their fifth year) will be Estimated Average Size of Awards: identified in an approved application or considered for additional points under $459,000. that it selects through a competition Competitive Preference Priority 2. In Maximum Award: We will not make under procedures established by the accordance with section 418A(e) of the an award exceeding $475,000 for a grantee. HEA, the Department will award up to single budget period of 12 months. 4. Other: Projects funded under this 15 points for this priority. The Secretary Under 34 CFR 75.104(b) the Secretary competition must budget for a three-day will consider the applicant’s prior may reject without consideration or Office of Migrant Education annual experience in implementing its expiring evaluation any application that meeting for HEP Directors in the HEP project, based on performance proposes a project funding level that Washington, DC area during each year report information to include, but not exceeds the stated maximum award of the project period. limited to, the percentage of HEP amount. participants exiting the program having Minimum Award: The Department IV. Application and Submission received a High School Equivalency will not make an award for less than the Information (HSE) diploma and the percentage of amount of $180,000 for a single budget 1. Application Submission HSE diploma recipients who enter period of 12 months. Under section Instructions: Applicants are required to postsecondary education or training 418A of the HEA, the Secretary is follow the Common Instructions for programs, upgraded employment, or the prohibited from making an award for Applicants to Department of Education military. less than the stated award amount. Discretionary Grant Programs, Therefore, we will reject any application Program Authority: 20 U.S.C. 1070d–2. published in the Federal Register on that proposes a HEP award that is less February 12, 2018 (83 FR 6003) and Applicable Regulations: (a) The than the stated minimum award available at www.govinfo.gov/content/ Education Department General amount. pkg/FR-2018-02-12/pdf/2018-02558.pdf, Administrative Regulations in 34 CFR Estimated Number of Awards: 14. which contain information on how to parts 75, 77, 79, 81, 82, 84, 86, 97, 98, Note: The Department is not bound by any submit an application. and 99. (b) The Office of Management estimates in this notice. 2. Submission of Proprietary and Budget Guidelines to Agencies on Project Period: Up to 60 months (five Information: Given the types of projects Governmentwide Debarment and 12-month budget periods). Except under that may be proposed in applications for Suspension (Nonprocurement) in 2 CFR extraordinary circumstances, the HEP, your application may include part 180, as adopted and amended as Secretary shall award grants for a five- business information that you consider regulations of the Department in 2 CFR year period. Applicants under this proprietary. In 34 CFR 5.11 we define part 3485. (c) The Uniform competition are required to provide ‘‘business information’’ and describe the Administrative Requirements, Cost detailed budget information for each process we use in determining whether Principles, and Audit Requirements for year of the proposed project and for the any of that information is proprietary Federal Awards in 2 CFR part 200, as total grant, and we may reject any and, thus, protected from disclosure adopted and amended as regulations of application that does not do so as under Exemption 4 of the Freedom of the Department in 2 CFR part 3474. (d) reflected on the applicant’s ED 524 Information Act (5 U.S.C. 552, as The regulations for this program in 34 form, Table A, submitted as a part of the amended). CFR part 206. (e) The definitions in the application. Because we plan to make successful Elementary and Secondary Education applications available to the public, you Act of 1965, as amended (ESEA), of III. Eligibility Information may wish to request confidentiality of ‘‘migratory agricultural worker’’ (section 1. Eligible Applicants: An IHE or a business information. 1309(2)), ‘‘migratory child’’ (section private nonprofit organization may Consistent with Executive Order 1309(3)), and ‘‘migratory fisher’’ (section apply for a grant to operate a HEP 12600, please designate in your 1309(4)). (f) The National Farmworker project. If a private nonprofit application any information that you Jobs Program (NFJP) definitions in 20 organization other than an IHE applies believe is exempt from disclosure under CFR 685.110 and eligibility regulations for a HEP grant, that agency must plan Exemption 4. In the appropriate in 20 CFR 685.320. (g) The the project in cooperation with an IHE Appendix section of your application, Supplemental Priorities. and must propose to operate some under ‘‘Other Attachments Form,’’ Note: The regulations in 34 CFR part 86 aspects of the project with the facilities please list the page number or numbers apply to IHEs only. of that IHE. on which we can find this information.
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For additional information please see 34 (1) The Secretary considers the (ii) The qualifications, including CFR 5.11(c). quality of the design of the proposed relevant training and experience, of key 3. Intergovernmental Review: This project. project personnel. (up to 3 points) competition is subject to Executive (2) In determining the quality of the (e) Adequacy of resources (up to 10 Order 12372 and the regulations in 34 design of the proposed project, the points). CFR part 79. Information about Secretary considers one or more of the (1) The Secretary considers the Intergovernmental Review of Federal following factors: adequacy of resources for the proposed Programs under Executive Order 12372 (i) The extent to which the goals, project. is in the application package for this objectives, and outcomes to be achieved (2) In determining the adequacy of competition. by the proposed project are clearly resources for the proposed project, the 4. Funding Restrictions: We reference specified and measurable. (up to 7 Secretary considers the following regulations outlining funding points) factors: restrictions in the Applicable (ii) The extent to which the design of (i) The adequacy of support, including Regulations section of this notice. the proposed project is appropriate to, facilities, equipment, supplies, and 5. Recommended Page Limit: The and will successfully address, the needs other resources, from the applicant application narrative is where you, the of the target population or other organization or the lead applicant applicant, address the selection criteria identified needs. (up to 7 points) organization. (up to 3 points) that reviewers use to evaluate your (iii) The extent to which the proposed (ii) The relevance and demonstrated application. We recommend that you (1) project will establish linkages with commitment of each partner in the limit the application narrative to no other appropriate agencies and proposed project to the implementation more than 25 pages and (2) use the organizations providing services to the and success of the project. (up to 3 following standards: target population. (up to 7 points) points) • ″ ″ (iii) The extent to which the costs are A ‘‘page’’ is 8.5 x 11 , on one side (iv) The extent to which the proposed reasonable in relation to the objectives, only, with 1’’ margins at the top, project demonstrates a rationale (as design, and potential significance of the bottom, and both sides. defined in 34 CFR 77.1(c)). (up to 7 • proposed project. (up to 4 points) Double space (no more than three points) (f) Quality of the project evaluation lines per vertical inch) all text in the (c) Quality of project services (up to application narrative, including titles, (up to 20 points). 12 points). (1) The Secretary considers the headings, footnotes, quotations, (1) The Secretary considers the references, and captions, as well as all quality of the evaluation to be quality of the services to be provided by conducted of the proposed project. text in charts, tables, figures, and the proposed project. graphs. (2) In determining the quality of the • (2) In determining the quality of the evaluation, the Secretary considers the Use a font that is either 12 point or services to be provided by the proposed larger or no smaller than 10 pitch following factors: project, the Secretary considers the (i) The extent to which the methods (characters per inch). quality and sufficiency of strategies for • Use one of the following fonts: of evaluation are thorough, feasible, and ensuring equal access and treatment for Times New Roman, Courier, Courier appropriate to the goals, objectives, and eligible project participants who are New, or Arial. outcomes of the proposed project. (up to members of groups that have The recommended page limit does not 10 points) traditionally been underrepresented apply to the cover sheet; the budget (ii) The extent to which the methods based on race, color, national origin, section, including the narrative budget of evaluation will provide performance gender, age, or disability. justification; the assurances and feedback and permit periodic (3) In addition, the Secretary certifications; or the one-page abstract, assessment of progress toward achieving considers the following factor: the resumes, the bibliography, or the intended outcomes. (up to 5 points) (i) The extent to which the services to letters of support. However, the (iii) The extent to which the methods be provided by the proposed project are recommended page limit does apply to of evaluation will, if well implemented, appropriate to the needs of the intended all of the application narrative. produce promising evidence (as defined recipients or beneficiaries of those in 34 CFR 77.1(c)) about the project’s V. Application Review Information services. (up to 12 points) effectiveness. (up to 5 points) 1. Selection Criteria: The selection (d) Quality of project personnel (Up to 2. Review and Selection Process: We criteria for this competition are from 34 10 points). remind potential applicants that in CFR 75.210 and are as follows: (1) The Secretary considers the reviewing applications in any (a) Need for project (up to 20 points). quality of the personnel who will carry discretionary grant competition, the (1) The Secretary considers the need out the proposed project. Secretary may consider, under 34 CFR for the proposed project. (2) In determining the quality of 75.217(d)(3), the past performance of the (2) In determining the need for the project personnel, the Secretary applicant in carrying out a previous proposed project, the Secretary considers the extent to which the award, such as the applicant’s use of considers the following factors: applicant encourages applications for funds, achievement of project (i) The magnitude of the need for the employment from persons who are objectives, and compliance with grant services to be provided or the activities members of groups that have conditions. The Secretary may also to be carried out by the proposed traditionally been underrepresented consider whether the applicant failed to project. (up to 10 points) based on race, color, national origin, submit a timely performance report or (ii) The extent to which the proposed gender, age, or disability. submitted a report of unacceptable project will focus on serving or (3) In addition, the Secretary quality. otherwise addressing the needs of considers the following factors: In addition, in making a competitive disadvantaged individuals. (up to 10 (i) The qualifications, including grant award, the Secretary requires points) relevant training and experience, of the various assurances, including those (b) Quality of the project design (up project director or principal applicable to Federal civil rights laws to 28 points). investigator. (up to 7 points) that prohibit discrimination in programs
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or activities receiving Federal financial Representative and U.S. Senators and 75.720(c). For specific requirements on assistance from the Department (34 CFR send you a Grant Award Notification reporting, please go to www.ed.gov/ 100.4, 104.5, 106.4, 108.8, and 110.23). (GAN); or we may send you an email fund/grant/apply/appforms/ Additional factors we consider in containing a link to access an electronic appforms.html. selecting an application for an award are version of your GAN. We may notify 5. Performance Measures: Under the in section 418A of the HEA. In you informally, also. Government Performance and Results accordance with section 418A, the If your application is not evaluated or Act of 1993 (GPRA), the Department Secretary makes HEP awards based on not selected for funding, we notify you. developed the following performance the number, quality, and promise of the 2. Administrative and National Policy measures to evaluate the overall applications. Additionally, the Secretary Requirements: We identify effectiveness of HEP: (1) The percentage will consider the need to provide an administrative and national policy of HEP participants exiting the program equitable geographic distribution of HEP requirements in the application package having received a HSE diploma (GPRA awards. and reference these and other 1), and (2) the percentage of HSE 3. Risk Assessment and Specific requirements in the Applicable diploma recipients who enter Conditions: Consistent with 2 CFR Regulations section of this notice. postsecondary education or training 200.205, before awarding grants under We reference the regulations outlining programs, upgraded employment, or the this competition the Department the terms and conditions of an award in military (GPRA 2). conducts a review of the risks posed by the Applicable Regulations section of Applicants must propose annual applicants. Under 2 CFR 3474.10, the this notice and include these and other targets for these measures in their Secretary may impose specific specific conditions in the GAN. The applications. The national target for conditions and, in appropriate GAN also incorporates your approved GPRA 1 for FY 2019 is that 69 percent circumstances, high-risk conditions on a application as part of your binding of HEP participants exit the program grant if the applicant or grantee is not commitments under the grant. having received an HSE credential. The financially stable; has a history of 3. Open Licensing Requirements: national target for GPRA 2 for FY 2019 unsatisfactory performance; has a Unless an exception applies, if you are is that 80 percent of HEP HSE diploma financial or other management system awarded a grant under this competition, recipients will enter postsecondary that does not meet the standards in 2 you will be required to openly license education or training programs, CFR part 200, subpart D; has not to the public grant deliverables created upgraded employment, or the military. fulfilled the conditions of a prior grant; in whole, or in part, with Department The national targets for subsequent or is otherwise not responsible. grant funds. When the deliverable years may be adjusted based on 4. Integrity and Performance System: consists of modifications to pre-existing additional baseline data. The panel If you are selected under this works, the license extends only to those readers will score related selection competition to receive an award that modifications that can be separately criteria on the basis of how well an over the course of the project period identified and only to the extent that applicant addresses these GPRA may exceed the simplified acquisition open licensing is permitted under the measures. Therefore, applicants will threshold (currently $250,000), under 2 terms of any licenses or other legal want to consider how to demonstrate a CFR 200.205(a)(2) we must make a restrictions on the use of pre-existing sound capacity to provide reliable data judgment about your integrity, business works. Additionally, a grantee or on the GPRA measures, including the ethics, and record of performance under subgrantee that is awarded competitive project’s annual performance targets for Federal awards—that is, the risk posed grant funds must have a plan to addressing the GPRA performance by you as an applicant—before we make disseminate these public grant measures, as is required by the Office of an award. In doing so, we must consider deliverables. This dissemination plan Management and Budget approved any information about you that is in the can be developed and submitted after annual performance report that is integrity and performance system your application has been reviewed and included in the application package. All (currently referred to as the Federal selected for funding. For additional grantees will be required to submit, as Awardee Performance and Integrity information on the open licensing part of their annual performance report, Information System (FAPIIS)), requirements please refer to 2 CFR information with respect to these GPRA accessible through the System for 3474.20. performance measures. Award Management. You may review 4. Reporting: (a) If you apply for a 6. Continuation Awards: In making a and comment on any information about grant under this competition, you must continuation award under 34 CFR yourself that a Federal agency ensure that you have in place the 75.253, the Secretary considers, among previously entered and that is currently necessary processes and systems to other things: Whether a grantee has in FAPIIS. comply with the reporting requirements made substantial progress in achieving Please note that, if the total value of in 2 CFR part 170 should you receive the goals and objectives of the project; your currently active grants, cooperative funding under the competition. This whether the grantee has expended funds agreements, and procurement contracts does not apply if you have an exception in a manner that is consistent with its from the Federal Government exceeds under 2 CFR 170.110(b). approved application and budget; and, $10,000,000, the reporting requirements (b) At the end of your project period, if the Secretary has established in 2 CFR part 200, Appendix XII, you must submit a final performance performance measurement require you to report certain integrity report, including financial information, requirements, the performance targets in information to FAPIIS semiannually. as directed by the Secretary. If you the grantee’s approved application. Please review the requirements in 2 CFR receive a multiyear award, you must In making a continuation award, the part 200, Appendix XII, if this grant submit an annual performance report Secretary also considers whether the plus all the other Federal funds you that provides the most current grantee is operating in compliance with receive exceed $10,000,000. performance and financial expenditure the assurances in its approved information as directed by the Secretary application, including those applicable VI. Award Administration Information under 34 CFR 75.118. The Secretary to Federal civil rights laws that prohibit 1. Award Notices: If your application may also require more frequent discrimination in programs or activities is successful, we notify your U.S. performance reports under 34 CFR receiving Federal financial assistance
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from the Department (34 CFR 100.4, Solar Facility, all as more fully Docket Numbers: ER19–938–000. 104.5, 106.4, 108.8, and 110.23). explained in the complaint. Applicants: Midcontinent Florida Municipal Power Agency Independent System Operator, Inc. VII. Other Information certifies that a copy of the complaint Description: § 205(d) Rate Filing: Accessible Format: Individuals with was served on Duke Energy Florida, 2019–01–31_SA 3228 EDF disabilities can obtain this document LLC’s corporate representative Renewables—ITC Midwest GIA (J495) to and a copy of the application package in designated on the Commission’s list of be effective 1/16/2019. an accessible format (e.g., Braille, large Corporate Officials. Filed Date: 1/31/19. print, audiotape, or compact disc) on Any person desiring to intervene or to Accession Number: 20190131–5197. request to the program contact person protest this filing must file in Comments Due: 5 p.m. ET 2/21/19. listed under FOR FURTHER INFORMATION accordance with Rules 211 and 214 of Docket Numbers: ER19–939–000. CONTACT. the Commission’s Rules of Practice and Applicants: Central Maine Power Electronic Access to This Document: Procedure (18 CFR 385.211 and Company. The official version of this document is 385.214). Protests will be considered by Description: § 205(d) Rate Filing: the document published in the Federal the Commission in determining the Bilateral, Cost-Based TSAs Register. You may access the official appropriate action to be taken, but will Incorporating First Amendments (HQUS edition of the Federal Register and the not serve to make protestants parties to Eversource) to be effective 4/2/2019. Code of Federal Regulations at the proceeding. Any person wishing to Filed Date: 1/31/19. www.govinfo.gov. At this site you can become a party must file a notice of Accession Number: 20190131–5199. view this document, as well as all other intervention or motion to intervene, as Comments Due: 5 p.m. ET 2/21/19. documents of this Department appropriate. The Respondent’s answer Docket Numbers: ER19–940–000. published in the Federal Register, in and all interventions, or protests must Applicants: Central Maine Power text or Portable Document Format be filed on or before the comment date. Company. (PDF). To use PDF you must have The Respondent’s answer, motions to Description: § 205(d) Rate Filing: Adobe Acrobat Reader, which is intervene, and protests must be served Bilateral, Cost-Based TSAs available free at the site. on the Complainant. Incorporating First Amendments (HQUS You may also access documents of the The Commission encourages National Grid) to be effective 4/2/2019. Department published in the Federal electronic submission of protests and Filed Date: 1/31/19. Register by using the article search interventions in lieu of paper using the Accession Number: 20190131–5200. feature at: www.federalregister.gov. ‘‘eFiling’’ link at http://www.ferc.gov. Comments Due: 5 p.m. ET 2/21/19. Specifically, through the advanced Persons unable to file electronically search feature at this site, you can limit should submit an original and 5 copies Docket Numbers: ER19–941–000. your search to documents published by of the protest or intervention to the Applicants: Central Maine Power the Department. Federal Energy Regulatory Commission, Company. Description: § 205(d) Rate Filing: Dated: February 5, 2019. 888 First Street NE, Washington, DC 20426. Bilateral, Cost-Based TSAs Frank Brogan, This filing is accessible on-line at Incorporating First Amendments (HQUS Assistant Secretary for Elementary and http://www.ferc.gov, using the Unitil) to be effective 4/2/2019. Secondary Education. ‘‘eLibrary’’ link and is available for Filed Date: 1/31/19. [FR Doc. 2019–01700 Filed 2–7–19; 8:45 am] review in the Commission’s Public Accession Number: 20190131–5201. BILLING CODE 4000–01–P Reference Room in Washington, DC. Comments Due: 5 p.m. ET 2/21/19. There is an ‘‘eSubscription’’ link on the Docket Numbers: ER19–942–000. website that enables subscribers to Applicants: Central Maine Power DEPARTMENT OF ENERGY receive email notification when a Company. document is added to a subscribed Description: § 205(d) Rate Filing: Federal Energy Regulatory docket(s). For assistance with any FERC Bilateral, Cost-Based TSAs Commission Online service, please email Incorporating First Amendments (HQUS [Docket No. EL19–40–000] [email protected], or call Additional) to be effective 4/2/2019. (866) 208–3676 (toll free). For TTY, call Filed Date: 1/31/19. Florida Municipal Power Agency v. (202) 502–8659. Accession Number: 20190131–5202. Duke Energy Florida, LLC; Notice of Comment Date: 5 p.m. Eastern Time Comments Due: 5 p.m. ET 2/21/19. Complaint on February 19, 2019. Docket Numbers: ER19–943–000. Take notice that on January 30, 2019, Issued: February 1, 2019. Applicants: Midcontinent pursuant to sections 206, 306 and 309 Kimberly D. Bose, Independent System Operator, Inc. of the Federal Power Act, 16 U.S.C. Secretary. Description: § 205(d) Rate Filing: _ 824e, 825e and 825h and Rule 206 of the [FR Doc. 2019–01655 Filed 2–7–19; 8:45 am] 2019–01–31 SA 2786 ITC Midwest- Federal Energy Regulatory BILLING CODE 6717–01–P Interstate Power & Light GIA (J233 J514) Commission’s (Commission) Rules of to be effective 1/23/2019. Practice and Procedure, 18 CFR 385.206, Filed Date: 1/31/19. Florida Municipal Power Agency DEPARTMENT OF ENERGY Accession Number: 20190131–5206. (FMPA or Complainant) filed a formal Comments Due: 5 p.m. ET 2/21/19. complaint against Duke Energy Florida, Federal Energy Regulatory Docket Numbers: ER19–944–000. LLC (Respondent) alleging that the Commission Applicants: Pacific Gas and Electric Respondent violated its Open Access Combined Notice of Filings #1 Company. Transmission Tariff by rejecting Description: § 205(d) Rate Filing: Q4 requests for transmission delivery Take notice that the Commission 2018 Quarterly Filing of City and service submitted by FMPA and its received the following electric rate County of San Francisco’s WDT SA (SA members for deliveries from the Poinsett filings: 275) to be effective 12/31/2018.
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Filed Date: 1/31/19. Filed Date: 1/31/19. Commission’s regulations for Accession Number: 20190131–5225. Accession Number: 20190131–5249. authorization to construct, install, Comments Due: 5 p.m. ET 2/21/19. Comments Due: 5 p.m. ET 2/21/19. modify, operate, and maintain a new Docket Numbers: ER19–945–000. Docket Numbers: ER19–952–000. 16.84 mile 30-inch pipeline extension Applicants: PJM Interconnection, Applicants: Alabama Power which will be located in Ward, Reeves L.L.C. Company. and Pecos Counties, Texas, as well as a Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: new bidirectional interconnect, Revisions to Att Q. re FTR Mark to Raven Solar LGIA Amendments Filing including two 10-inch meter runs and a Auction Credit Revisions to be effective (to Remove Gulf) to be effective 30-inch tap located in Pecos County, 4/4/2019. 1/1/2019. Texas. Natural states that the proposed Filed Date: 1/31/19. Filed Date: 1/31/19. facilities will enable it to provide Accession Number: 20190131–5236. Accession Number: 20190131–5279. 500,000 dekatherms per day (Dth/d) of Comments Due: 5 p.m. ET 2/21/19. Comments Due: 5 p.m. ET 2/21/19. incremental firm transportation capacity Docket Numbers: ER19–946–000. Docket Numbers: ER19–953–000. southbound on Natural’s existing Applicants: Southwest Power Pool, Applicants: Southern California Lockridge Pipeline and the proposed Inc. Edison Company. pipeline extension to the new Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: bidirectional interconnect with Trans- 3127R1 Montana-Dakota Utilities Co. Amended LGIA Solar Star California Pecos Pipeline, LLC at the Waha Hub. NITSA and NOA to be effective XIX, LLC True-Up SA No. 110 to be Natural estimates the cost of the project 4/1/2019. effective 4/3/2019. to be $51,611,669, all as more fully set Filed Date: 1/31/19. Filed Date: 2/1/19. forth in the application which is on file Accession Number: 20190131–5239. Accession Number: 20190201–5071. with the Commission and open to Comments Due: 5 p.m. ET 2/21/19. Comments Due: 5 p.m. ET 2/22/19. public inspection. Docket Numbers: ER19–947–000. The filings are accessible in the The filing is available for review at Applicants: Alabama Power Commission’s eLibrary system by the Commission in the Public Reference Company. clicking on the links or querying the Room or may be viewed on the Description: § 205(d) Rate Filing: docket number. Commission’s website web at http:// Exelon Generation GISA Filing to be Any person desiring to intervene or www.ferc.gov using the ‘‘eLibrary’’ link. effective 1/1/2019. protest in any of the above proceedings Enter the docket number excluding the Filed Date: 1/31/19. must file in accordance with Rules 211 last three digits in the docket number Accession Number: 20190131–5244. and 214 of the Commission’s field to access the document. For Comments Due: 5 p.m. ET 2/21/19. Regulations (18 CFR 385.211 and assistance, contact FERC at 385.214) on or before 5:00 p.m. Eastern [email protected] or call Docket Numbers: ER19–948–000. time on the specified comment date. toll-free, (886) 208–3676 or TYY, (202) Applicants: Alabama Power Protests may be considered, but 502–8659. Company. intervention is necessary to become a Any questions regarding this Description: § 205(d) Rate Filing: party to the proceeding. application should be directed to Bruce Shell Energy North America GISA Filing eFiling is encouraged. More detailed H. Newsome, Vice President, Natural to be effective 1/1/2019. information relating to filing Gas Pipeline Company of America LLC, Filed Date: 1/31/19. requirements, interventions, protests, 3250 Lacey Road, Suite 700, Downers Accession Number: 20190131–5245. service, and qualifying facilities filings Grove, IL 60515, by telephone at Comments Due: 5 p.m. ET 2/21/19. can be found at: http://www.ferc.gov/ (630)725–3070, or by email at bruce_ Docket Numbers: ER19–949–000. docs-filing/efiling/filing-req.pdf. For [email protected]. Applicants: Westar Energy, Inc. other information, call (866) 208–3676 Pursuant to section 157.9 of the Description: § 205(d) Rate Filing: (toll free). For TTY, call (202) 502–8659. Commission’s rules (18 CFR 157.9), Revisions, Full Requirements Electric Issued: February 1, 2019. within 90 days of this Notice, the Service Agreements to be effective Commission staff will either: Complete 4/1/2019. Kimberly D. Bose, Secretary. its environmental assessment (EA) and Filed Date: 1/31/19. place it into the Commission’s public [FR Doc. 2019–01652 Filed 2–7–19; 8:45 am] Accession Number: 20190131–5246. record (eLibrary) for this proceeding; or Comments Due: 5 p.m. ET 2/21/19. BILLING CODE 6717–01–P issue a Notice of Schedule for Docket Numbers: ER19–950–000. Environmental Review. If a Notice of Applicants: Alabama Power DEPARTMENT OF ENERGY Schedule for Environmental Review is Company. issued, it will indicate, among other Description: § 205(d) Rate Filing: Federal Energy Regulatory milestones, the anticipated date for the SCPSA Interchange Contract Commission Commission staff’s issuance of the final Amendment Filing (To Remove Gulf) to environmental impact statement (FEIS) be effective 1/1/2019. [Docket No. CP19–52–000] or EA for this proposal. The filing of the Filed Date: 1/31/19. EA in the Commission’s public record Accession Number: 20190131–5248. Natural Gas Pipeline Company of America LLC; Notice of Application for this proceeding or the issuance of a Comments Due: 5 p.m. ET 2/21/19. Notice of Schedule for Environmental Docket Numbers: ER19–951–000. Take notice that on January 18, 2019, Review will serve to notify federal and Applicants: California Independent Natural Gas Pipeline Company of state agencies of the timing for the System Operator Corporation. America LLC (Natural), 3250 Lacey completion of all necessary reviews, and Description: § 205(d) Rate Filing: Road, Downers Grove, IL 60615, filed in the subsequent need to complete all 2019–01–31 Commitment Cost Docket No. CP19–52–000 an application federal authorizations within 90 days of Enhancements & Reliability Services pursuant to section 7(c) of the Natural the date of issuance of the Commission Clarification to be effective 4/1/2019. Gas Act (NGA) and Part 157 of the staff’s FEIS or EA.
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There are two ways to become 7 proceeding.1 Persons desiring to Comments Due: 5 p.m. ET 2/22/19. involved in the Commission’s review of become a party to a certificate Docket Numbers: ER19–955–000. this project. First, any person wishing to proceeding are to intervene in a timely Applicants: Brookfield Energy obtain legal status by becoming a party manner. If seeking to intervene out-of- Marketing Inc. to the proceedings for this project time, the movant is required to ‘‘show Description: § 205(d) Rate Filing: should, on or before the comment date good cause why the time limitation Amendment to Market Base Rate Tariff stated below, file with the Federal should be waived,’’ and should provide to be effective 10/16/2017. Energy Regulatory Commission, 888 justification by reference to factors set Filed Date: 2/1/19. First Street NE, Washington, DC 20426, forth in Rule 214(d)(1) of the Accession Number: 20190201–5088. a motion to intervene in accordance Commission’s Rules and Regulations.2 Comments Due: 5 p.m. ET 2/22/19. with the requirements of the The Commission strongly encourages Docket Numbers: ER19–956–000. Commission’s Rules of Practice and electronic filings of comments, protests Applicants: ITC Midwest LLC, Procedure (18 CFR 385.214 or 385.211) and interventions in lieu of paper using Midcontinent Independent System and the Regulations under the NGA (18 the ‘‘eFiling’’ link at http:// Operator, Inc. CFR 157.10). A person obtaining party www.ferc.gov. Persons unable to file Description: § 205(d) Rate Filing: status will be placed on the service list electronically should submit an original 2019–02–01_ITCM Attachment O Filing maintained by the Secretary of the and 3 copies of the protest or for Intangible Plant to be effective 1/1/ Commission and will receive copies of intervention to the Federal Energy 2020. all documents filed by the applicant and Regulatory Commission, 888 First Street Filed Date: 2/1/19. by all other parties. A party must submit NE, Washington, DC 20426. Accession Number: 20190201–5089. 3 copies of filings made with the Comment Date: 5 p.m. Eastern Time Comments Due: 5 p.m. ET 2/22/19. Commission and must provide a copy to on February 22, 2019. the applicant and to every other party in Docket Numbers: ER19–957–000. Issued: February 1, 2019. the proceeding. Only parties to the Applicants: Brookfield Energy proceeding can ask for court review of Kimberly D. Bose, Marketing LP. Commission orders in the proceeding. Secretary. Description: § 205(d) Rate Filing: However, a person does not have to [FR Doc. 2019–01654 Filed 2–7–19; 8:45 am] Amendment to Market Base Rate Tariff intervene in order to have comments BILLING CODE 6717–01–P to be effective 10/16/2017. considered. The second way to Filed Date: 2/1/19. participate is by filing with the Accession Number: 20190201–5090. Secretary of the Commission, as soon as DEPARTMENT OF ENERGY Comments Due: 5 p.m. ET 2/22/19. possible, an original and two copies of Docket Numbers: ER19–958–000. comments in support of or in opposition Federal Energy Regulatory Applicants: Brookfield Energy to this project. The Commission will Commission Marketing US LLC. consider these comments in Combined Notice of Filings #2 Description: § 205(d) Rate Filing: determining the appropriate action to be Amendment to Market Base Rate Tariff taken, but the filing of a comment alone Take notice that the Commission to be effective 10/16/2017. will not serve to make the filer a party received the following electric rate Filed Date: 2/1/19. to the proceeding. The Commission’s filings: Accession Number: 20190201–5092. rules require that persons filing Docket Numbers: ER10–1484–018; Comments Due: 5 p.m. ET 2/22/19. comments in opposition to the project ER13–1069–007; ER12–2381–004. Docket Numbers: ER19–959–000. provide copies of their protests only to Applicants: Shell Energy North Applicants: Mesa Wind Power the party or parties directly involved in America (US), L.P., MP2 Energy LLC, Corporation. the protest. MP2 Energy NE LLC. Description: § 205(d) Rate Filing: Persons who wish to comment only Description: Notice of Non-Material Amendment to Market Base Rate Tariff on the environmental review of this Change in Status of Shell Energy North to be effective 10/16/2017. project should submit an original and America (US), L.P., et al. Filed Date: 2/1/19. two copies of their comments to the Filed Date: 1/31/19. Accession Number: 20190201–5094. Secretary of the Commission. Accession Number: 20190131–5308. Comments Due: 5 p.m. ET 2/22/19. Environmental commentors will be Comments Due: 5 p.m. ET 2/21/19. Docket Numbers: ER19–960–000. placed on the Commission’s Docket Numbers: ER17–2341–001. Applicants: Windstar Energy, LLC. environmental mailing list and will be Applicants: CA Flats Solar 130, LLC. Description: § 205(d) Rate Filing: notified of any meetings associated with Description: Compliance filing: Notice Amendment to Market Base Rate Tariff the Commission’s environmental review of Change in Category Status to be to be effective 10/16/2017. process. Environmental commentors effective 6/19/2018. Filed Date: 2/1/19. will not be required to serve copies of Filed Date: 2/1/19. Accession Number: 20190201–5096. filed documents on all other parties. Accession Number: 20190201–5126. Comments Due: 5 p.m. ET 2/22/19. However, the non-party commentors Comments Due: 5 p.m. ET 2/22/19. Docket Numbers: ER19–961–000. will not receive copies of all documents Docket Numbers: ER19–954–000. filed by other parties or issued by the Applicants: Southern California Applicants: Alta Wind VIII, LLC. Edison Company. Commission and will not have the right Description: § 205(d) Rate Filing: to seek court review of the Description: § 205(d) Rate Filing: Amendment to Market Base Rate Tariff Amended LGIA Solar Star California Commission’s final order. to be effective 10/16/2017. As of the February 27, 2018 date of XX, LLC True-Up SA No. 111 to be Filed Date: 2/1/19. effective 4/3/2019. the Commission’s order in Docket No. Accession Number: 20190201–5087. CP16–4–001, the Commission will Filed Date: 2/1/19. Accession Number: 20190201–5097. apply its revised practice concerning 1 Tennessee Gas Pipeline Company, L.L.C., 162 out-of-time motions to intervene in any FERC ¶ 61,167 at ¶ 50 (2018). Comments Due: 5 p.m. ET 2/22/19. new Natural Gas Act section 3 or section 2 18 CFR 385.214(d)(1). Docket Numbers: ER19–962–000.
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Applicants: Duke Energy Florida, Filed Date: 2/1/19. DEPARTMENT OF ENERGY LLC. Accession Number: 20190201–5176. Description: Notice of Cancellation of Comments Due: 5 p.m. ET 2/22/19. Federal Energy Regulatory Service Agreement for Firm Point-To- Commission Docket Numbers: ER19–970–000. Point Transmission Service of Duke [Docket No. IC19–8–000] Energy Florida, LLC. Applicants: Tucson Electric Power Company. Filed Date: 1/31/19. Commission Information Collection Accession Number: 20190131–5323. Description: Tariff Cancellation: Activities (FERC–606, and FERC–607); Comments Due: 5 p.m. ET 2/21/19. Cancellation of Service Agreement No. Consolidated Comment Request; Docket Numbers: ER19–963–000. 363 to be effective 2/1/2019. Extension Applicants: Duke Energy Ohio, Inc., Filed Date: 2/1/19. PJM Interconnection, L.L.C. Accession Number: 20190201–5202. AGENCY: Federal Energy Regulatory Description: § 205(d) Rate Filing: Comments Due: 5 p.m. ET 2/22/19. Commission, Department of Energy. Duke Energy Ohio, Inc. submits IA SA Take notice that the Commission ACTION: Notice of information No. 1491 to be effective 12/12/2018. received the following electric securities collections and request for comments. Filed Date: 2/1/19. Accession Number: 20190201–5121. filings: SUMMARY: In compliance with the Comments Due: 5 p.m. ET 2/22/19. Docket Numbers: ES19–5–000. requirements of the Paperwork Docket Numbers: ER19–964–000. Applicants: Cube Yadkin Reduction Act of 1995, the Federal Applicants: Alabama Power Transmission LLC. Energy Regulatory Commission Company. Description: Amendment to December (Commission or FERC) is soliciting Description: Notice of Termination of 12, 2018 Application under for public comment on the following Agreement for Transmission and Other Authorization Section 204 of the information collections: FERC–606, Complementary Services of Alabama Federal Power Act of Cube Yadkin Notification of Request for Federal Power Company. Transmission LLC. Authorization and Requests for Further Filed Date: 1/31/19. Filed Date: 1/31/19. Information, and FERC–607, Report on Accession Number: 20190131–5329. Accession Number: 20190131–5332. Decision or Action on Request for Comments Due: 5 p.m. ET 2/21/19. Comments Due: 5 p.m. ET 2/21/19. Federal Authorization. Docket Numbers: ER19–965–000. DATES: Comments on the collections of Take notice that the Commission Applicants: Alabama Power information are due April 9, 2019. Company, Georgia Power Company, received the following foreign utility company status filings: ADDRESSES: You may submit comments Mississippi Power Company. (identified by Docket No. IC19–8–000) Description: Notice of Termination of Docket Numbers: FC19–3–000. by either of the following methods: Large Generator Interconnection Applicants: I Squared Capital. • eFiling at Commission’s Website: Agreement of Alabama Power Company, Description: Notification of Self- http://www.ferc.gov/docs-filing/ et al. Certification of Foreign Utility Company efiling.asp. Filed Date: 1/31/19. Status of the Conrad Companies. • Mail/Hand Delivery/Courier: Accession Number: 20190131–5331. Filed Date: 2/1/19. Federal Energy Regulatory Commission, Comments Due: 5 p.m. ET 2/21/19. Accession Number: 20190201–5111. Secretary of the Commission, 888 First Docket Numbers: ER19–966–000. Comments Due: 5 p.m. ET 2/22/19. Street NE, Washington, DC 20426. Applicants: Fairless Energy, L.L.C. Please reference the specific Description: § 205(d) Rate Filing: The filings are accessible in the Commission’s eLibrary system by collection number and/or title in your Notice of Succession to be effective comments. 12/17/2018. clicking on the links or querying the docket number. Instructions: All submissions must be Filed Date: 2/1/19. formatted and filed in accordance with Accession Number: 20190201–5172. Any person desiring to intervene or submission guidelines at: http:// Comments Due: 5 p.m. ET 2/22/19. protest in any of the above proceedings www.ferc.gov/help/submission- must file in accordance with Rules 211 Docket Numbers: ER19–967–000. guide.asp. For user assistance contact and 214 of the Commission’s Applicants: Fairless Energy, L.L.C. FERC Online Support by email at Description: § 205(d) Rate Filing: Regulations (18 CFR 385.211 and [email protected], or by phone Notice of Succession to be effective 385.214) on or before 5:00 p.m. Eastern at: (866) 208–3676 (toll-free), or (202) 12/17/2018. time on the specified comment date. 502–8659 for TTY. Filed Date: 2/1/19. Protests may be considered, but Docket: Users interested in receiving Accession Number: 20190201–5173. intervention is necessary to become a Comments Due: 5 p.m. ET 2/22/19. automatic notification of activity in this party to the proceeding. docket or in viewing/downloading Docket Numbers: ER19–968–000. eFiling is encouraged. More detailed comments and issuances in this docket Applicants: Manchester Street, L.L.C. information relating to filing may do so at http://www.ferc.gov/docs- Description: § 205(d) Rate Filing: requirements, interventions, protests, filing/docs-filing.asp. Notice of successionj. to be effective service, and qualifying facilities filings FOR FURTHER INFORMATION CONTACT: 12/14/2018. can be found at: http://www.ferc.gov/ Ellen Brown may be reached by email Filed Date: 2/1/19. docs-filing/efiling/filing-req.pdf. For at [email protected], telephone Accession Number: 20190201–5174. other information, call (866) 208–3676 at (202) 502–8663, and fax at (202) 273– Comments Due: 5 p.m. ET 2/22/19. (toll free). For TTY, call (202) 502–8659. Docket Numbers: ER19–969–000. 0873. Issued: February 1, 2019. Applicants: Midcontinent SUPPLEMENTARY INFORMATION: Independent System Operator, Inc. Kimberly D. Bose, Title: FERC–606, Notification of Description: § 205(d) Rate Filing: Secretary. Request for Federal Authorization and 2019–02–01_SA 3229 ITC-MidAmerican [FR Doc. 2019–01653 Filed 2–7–19; 8:45 am] Requests for Further Information; FCA (J475) to be effective 1/17/2019. BILLING CODE 6717–01–P FERC–607, Report on Decision or
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Action on Request for Federal make better informed decisions in • Establish a schedule for agencies to Authorization. establishing due dates for agencies’ review requests for federal OMB Control No.: 1902–0241. decisions. authorizations required for a project, Type of Request: Three-year extension FERC–607 requires agencies or and of these information collection officials to submit to the Commission a • requirements for all collections Compile a record of each agency’s copy of a decision or action on a request described below with no changes to the decision, together with the record of the for federal authorization and an current reporting requirements. Please Commission’s decision, to serve as a note that each collection is distinct from accompanying index to the documents consolidated record for the purpose of the other. and materials relied on in reaching a appeal or review, including judicial Abstract: FERC–606 requires agencies conclusion. review. and officials responsible for issuing, The information collections can Type of Respondent: Agencies with conditioning, or denying requests for neither be discontinued nor collected federal authorization responsibilities. federal authorizations necessary for a less frequently because of statutory 1 proposed natural gas project to report to requirements. The consequences of not Estimate of Annual Burden: The the Commission regarding the status of collecting this information are that the Commission estimates the annual public an authorization request. This reporting Commission would be unable to fulfill reporting burden and cost 2 (rounded) requirement is intended to allow its statutory mandate under the Energy for the information collection as agencies to assist the Commission to Policy Act of 2005 to: follows:
FERC–606 (NOTIFICATION OF REQUEST FOR FEDERAL AUTHORIZATION AND REQUESTS FOR FURTHER INFORMATION), AND FERC–607 (REPORT ON DECISION OR ACTION ON REQUEST FOR FEDERAL AUTHORIZATION)
Annual Number of number of Total number Average burden hours Total annual burden Cost per respondents responses per of responses & cost per response hours & total respondent respondent annual cost ($)
(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1)
FERC–606 ...... 6 1 6 4 hrs.; $316 ...... 24 hrs.; $1,896 ...... $316 FERC–607 ...... 1 1 1 1 hr.; $79 ...... 1 hr.; $79 ...... 79
Total ...... 7 ...... 7 ...... 25 hrs.; $1,975 ......
Comments: Comments are invited on: ENVIRONMENTAL PROTECTION For technical information contact: (1) Whether the collections of AGENCY John Schaeffer, Chemical Control information are necessary for the proper Division (7405M), Office of Pollution performance of the functions of the [EPA–HQ–OPPT–2013–0677; FRL–9987–29] Prevention and Toxics, Environmental Commission, including whether the Protection Agency, 1200 Pennsylvania information will have practical utility; Receipt of Information Under the Toxic Ave. NW, Washington, DC 20460–0001; (2) the accuracy of the agency’s Substances Control Act telephone number: (202) 564–8173; estimates of the burden and cost of the email address: [email protected]. AGENCY: Environmental Protection collections of information, including the For general information contact: The Agency (EPA). validity of the methodology and TSCA-Hotline, ABVI-Goodwill, 422 assumptions used; (3) ways to enhance ACTION: Notice. South Clinton Ave., Rochester, NY the quality, utility and clarity of the 14620; telephone number: (202) 554– SUMMARY: EPA is announcing its receipt 1404; email address: TSCA-Hotline@ information collections; and (4) ways to of information submitted pursuant to a epa.gov. minimize the burden of the collections rule, order, or consent agreement issued SUPPLEMENTARY INFORMATION: of information on those who are to under the Toxic Substances Control Act respond, including the use of automated (TSCA). As required by TSCA, this I. Chemical Substances and/or Mixtures collection techniques or other forms of document identifies each chemical information technology. Information received about the substance and/or mixture for which following chemical substance and/or Issued: February 1, 2019. information has been received; the uses mixture is provided in Unit IV.: Kimberly D. Bose, or intended uses of such chemical 2-Butenedioic acid (2E)-, di-C8-18-alkyl substance and/or mixture; and describes Secretary. esters (CASRN 68610–90–2). the nature of the information received. [FR Doc. 2019–01656 Filed 2–7–19; 8:45 am] Each chemical substance and/or mixture II. Authority BILLING CODE 6717–01–P related to this announcement is Section 4(d) of TSCA (15 U.S.C. identified in Unit I. under 2603(d)) requires EPA to publish a SUPPLEMENTARY INFORMATION. notice in the Federal Register reporting FOR FURTHER INFORMATION CONTACT: the receipt of information submitted
1 Burden is defined as the total time, effort, or 2 The estimates for cost per response are derived updated in May 2018. This figure is being used financial resources expended by persons to using the formula: Average Burden Hours per because the staff thinks industry is similarly generate, maintain, retain, or disclose or provide Response * 79.00 per hour = Average Cost per situated in terms of average hourly cost. information to or for a Federal agency. For further Response. The hourly cost figure comes from the explanation of what is included in the information FERC average salary plus benefits of $164,820 per collection burden, refer to 5 CFR 1320.3. year (or $79.00/hour). These estimates were
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pursuant to a rule, order, or consent Authority: 15 U.S.C. 2601 et seq. Pennsylvania Ave. NW, Washington, DC agreement promulgated under TSCA Dated: December 7, 2018. 20460; telephone number: 202–564– section 4 (15 U.S.C. 2603). Lynn Vendinello, 3688; fax number: 202–564–0027; email address: [email protected]. III. Docket Information Acting Director, Chemical Control Division, Office of Pollution Prevention and Toxics. SUPPLEMENTARY INFORMATION: A docket, identified by the docket [FR Doc. 2019–01547 Filed 2–7–19; 8:45 am] Throughout this document ‘‘we,’’ ‘‘us,’’ identification (ID) number EPA–HQ– and ‘‘our’’ refer to the EPA. OPPT–2013–0677, has been established BILLING CODE 6560–50–P for this Federal Register document, Table of Contents which announces the receipt of the ENVIRONMENTAL PROTECTION I. Written Comments information. Upon EPA’s completion of AGENCY II. What are EPA’s National Compliance its quality assurance review, the Initiatives? information received will be added to [EPA–HQ–OECA–2018–0843; FRL–9988– III. On what is the EPA Requesting the docket identified in Unit IV., which 78–OECA] Comment? represents the docket used for the TSCA IV. What are the current FY 2017–2019 section 4 rule, order, and/or consent Public Comment on EPA’s National National Compliance Initiatives? agreement. In addition, once completed, Compliance Initiatives for Fiscal Years V. What Are the potential initiatives under 2020–2023 consideration for FY 2020–2023? EPA reviews of the information received A. Extensions of Initiatives will be added to the same docket. Use AGENCY: Environmental Protection B. Modifications of Initiatives the docket ID number provided in Unit Agency (EPA). C. Return of Initiatives to the Core Program IV. to access the information received ACTION: Notice of public comment D. New NCIs and any available EPA review. period. E. Public Comments EPA’s dockets are available VI. Can the deadline for comments be electronically at http:// SUMMARY: The Environmental Protection extended? www.regulations.gov or in person at the Agency (EPA) is soliciting public I. Written Comments Office of Pollution Prevention and comment and recommendations on the Toxics Docket (OPPT Docket), National Compliance Initiatives (NCIs) Submit your comments, identified by Environmental Protection Agency to be undertaken in fiscal years 2020– Docket ID No. EPA–HQ–OECA–2018– Docket Center (EPA/DC), West William 2023. The EPA focuses enforcement and 0843; at https://www.regulations.gov. Jefferson Clinton Bldg., Rm. 3334, 1301 compliance resources on the most Once submitted, comments cannot be Constitution Ave. NW, Washington, DC. serious environmental violations by edited or removed from Regulations.gov. The Public Reading Room is open from developing and implementing national The EPA may publish any comment 8:30 a.m. to 4:30 p.m., Monday through program priorities, previously called received to its public docket. Do not Friday, excluding legal holidays. The National Enforcement Initiatives. The submit electronically any information telephone number for the Public NCIs currently underway, as well as you consider to be Confidential Reading Room is (202) 566–1744, and potential modifications to these NCIs Business Information (CBI) or other the telephone number for the OPPT under consideration, are described in information whose disclosure is restricted by statute. Multimedia Docket is (202) 566–0280. Please review the SUPPLEMENTARY INFORMATION section the visitor instructions and additional of this document, with additional submissions (audio, video, etc.) must be information about the docket available descriptions and data on the current accompanied by a written comment. at http://www.epa.gov/dockets. NCIs available on our website: http:// The written comment is considered the official comment and should include IV. Information Received www.epa.gov/enforcement/national- compliance-initiatives. discussion of all points you wish to As specified by TSCA section 4(d), make. The EPA will generally not DATES: Comments must be received on consider comments or comment this unit identifies the information or before March 11, 2019. received by EPA: 2-Butenedioic acid contents located outside of the primary ADDRESSES: (2E)-, di-C8-18-alkyl esters (CASRN You may send comments, submission (i.e. on the web, cloud, or 68610–90–2). identified by Docket ID No. EPA–HQ– other file sharing system). For 1. Chemical Use: Industrial OECA–2018–0843; to https:// additional submission methods, the full manufacturing lubricant. www.regulations.gov. Follow the online EPA public comment policy, 2. Applicable Rule, Order, or Consent instructions for submitting comments. information about CBI or multimedia Agreement: Chemical testing Instructions: All submissions received submissions, and general guidance on requirements for third group of high must include the Docket ID No. for this making effective comments, please visit production volume chemicals (HPV3), notice. Comments received will be https://www.epa.gov/dockets/ 40 CFR 799.5089. posted without change to https:// commenting-epa-dockets. 3. Information Received: The www.regulations.gov/, including any following listing describes the nature of personal information provided. For II. What are EPA’s National the information received. The detailed instructions on sending Compliance Initiatives? information will be added to the docket comments and additional information The EPA is soliciting public comment for the applicable TSCA section 4 rule, on the notice process, see the ‘‘Written and recommendations on the NCIs to be order, or consent agreement and can be Comments’’ heading of the undertaken by EPA over the four-year found by referencing the docket ID SUPPLEMENTARY INFORMATION section of period of fiscal years 2020–2023. This number provided. EPA reviews of this document. notice is an agency planning document information will be added to the same FOR FURTHER INFORMATION CONTACT: and does not impose any legally binding docket upon completion. Michele McKeever, Chief, National requirements on any outside parties. Water Solubility Analytical Report. Planning and Measures Branch, Office The EPA focuses enforcement and The docket ID number assigned to this of Enforcement and Compliance compliance resources on the most information is EPA–HQ–OPPT–2009– Assurance, Mail Code: M2221A, serious environmental violations by 0112. Environmental Protection Agency, 1200 developing and implementing national
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enforcement and compliance program implementation in FY 2019, described in 2004. The Agency believes that priorities, previously called National below).1 These initiatives are: continuing this NCI will help to achieve Enforcement Initiatives (NEIs). As part 1. Cutting Hazardous Air Pollutants EPA Strategic Plan objectives of of EPA’s ongoing efforts to increase the (HAPs) addressing vulnerable populations, environmental law compliance rate and 2. Reducing Toxic Air Emissions from addressing Clean Air Act (CAA) non- reduce the average time from violation Hazardous Waste Facilities attainment areas. The Agency also identification to correction, EPA 3. Reducing Risks of Accidental believes that EPA expertise will help recently has adjusted and renamed the Releases at Industrial and Chemical improve compliance and facilitate a NEIs program to the NCIs program to Facilities timely return to compliance where better convey the overarching goal of 4. Keeping Industrial Pollutants Out of noncompliance is found. increased compliance and the use of not the Nation’s Waters Reducing Toxic Air Emissions from only enforcement actions, but the full 5. Ensuring Energy Extraction Activities Hazardous Waste Facilities. EPA has range of compliance assurance tools. Comply with Environmental Laws found that air emission violations 6. Keeping Raw Sewage and associated with the improper These tools include helping regulated Contaminated Stormwater Out of management of hazardous waste remain entities understand their compliance Our Nation’s Waters widespread. The Resource Conservation obligations, helping facilities return to 7. Reducing Air Pollution from the and Recovery Act requires effective compliance through informal actions, Largest Sources monitoring to identify and repair leaks building state capacity, supporting state Additional descriptions and data on from certain hazardous waste storage actions, bringing Federal civil these initiatives are available online at: tanks, containers, pipes, valves, and administrative actions, and bringing http://www.epa.gov/enforcement/ other equipment. Releases from Federal civil or criminal judicial national-compliance-initiatives. hazardous waste facilities can include enforcement actions. releases of constituents known or V. What are the potential initiatives suspected to cause cancer, birth defects, III. On what is the EPA requesting under consideration for FY 2020–2023? comment? or that seriously impact the For the seven active initiatives from environment. The Agency began this The EPA’s Office of Enforcement and the FY 2017–2019 cycle, EPA is initiative in 2017 and believes that Compliance Assurance is collecting soliciting input on whether we should continuing this initiative will help to comment on which of the current continue, modify, or conclude the achieve EPA Strategic Plan objectives of national initiatives should continue, be initiative and return it to the ‘‘core’’ or addressing vulnerable populations and modified, or returned to the standard standard enforcement program. For all reducing non-attainment areas. The (‘‘core’’) enforcement program. Current initiatives, EPA intends to focus on Agency also believes that its expertise initiatives may be carried forward into environmental and public health risks, will help improve compliance rates and the FY 2020–2023 NCI cycle, as is or not specific industry sectors. facilitate a timely return to compliance where noncompliance is found. modified, or an NCI may be concluded A. Extensions of Initiatives at the end of FY 2019. The public also Accordingly, we plan to continue our is invited to propose other areas for The EPA is seeking comment on plans work, including efforts to build state consideration as an NCI, keeping in to extend the following three current capacity in this program. initiatives into the FY 2020–2023 cycle: Reducing Risks of Accidental Releases mind resource constraints. Cutting Hazardous Air Pollutants. at Industrial and Chemical Facilities. For this upcoming NCI cycle, the EPA Leaks, flares, and excess emissions from Thousands of facilities nationwide, has provided new opportunities for refineries, chemical plants and other many of which are in low income or early and meaningful input from the industries emit hazardous air pollutants minority communities, make, use and states and federally-recognized Indian (HAPs), or air toxics, that are known or store extremely hazardous substances. tribes regarding the identification and suspected to cause cancer, birth defects, Catastrophic accidents at these development of the NCIs. In Fall 2018, and seriously impact the environment. facilities—historically about 150 each EPA Regional offices solicited input Recent monitoring shows that facilities year—can result in fatalities and serious from the states and federally-recognized still often emit more HAP emissions injuries, evacuations, and harm to Indian tribes. The EPA also reached out than they actually report. Leaking human health and the environment. to a number of state and tribal equipment and improperly operated EPA regulates these facilities under associations for early input into the NCI flares remain some of the largest sources section 112(r) of the CAA and through program. EPA looks forward to of HAP emissions from petroleum the Chemical Accident Prevention considering the state and tribal input on refineries and chemical manufacturing regulations, also known as the Risk the current initiatives—such as whether facilities. Improper operation of an Management Program (RMP). The to continue, modify, or conclude them— industrial flare can result in hundreds of regulations apply to stationary sources as well as suggestions for new NCIs. The tons of excess HAP emissions. The EPA that have a listed chemical in a process EPA welcomes active state and tribal has worked to identify and address at or above an established threshold participation in implementing the NCI if illegal and excess emissions of toxic air quantity. A broader statutory obligation the state or tribe is authorized for the pollutants from leaks and flares at under CAA section 112(r)(1), the particular program. facilities that have a significant impact General Duty Clause (GDC), applies to on air quality and health in all stationary sources with regulated IV. What are the current FY 2017–2019 communities since this initiative began substances or other extremely hazardous National Compliance Initiatives? substances, regardless of the quantity of 1 There were originally eight initiatives in the FY chemical involved. This has been an The U.S. Environmental Protection 2017–2019 cycle. The initiative to ‘‘Prevent Animal NCI since 2016, and EPA has found that Agency, Office of Enforcement and Waste from Contaminating Surface and Ground many regulated facilities are not Compliance Assurance, has seven Water’’ was moved to the core program by the EPA adequately managing the risks they pose initiatives underway from the FY 2017– Memorandum, ‘‘Transition from National Enforcement Initiatives to National Compliance or ensuring the safety of their facilities 2019 cycle (with modified Initiatives,’’ August 21, 2018. to protect surrounding communities.
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Therefore, the EPA plans to continue populations or an area’s CAA 1 municipal separate stormwater this NCI with a focus on the most attainment status. We also will evaluate systems are now either in compliance or serious situations of non-compliance the idea of merging this work into the are on an agreed-upon schedule to come and attention to the EPA Strategic Plan ‘‘Cutting Hazardous Air Pollutants’’ into compliance. Accordingly, the objective of addressing vulnerable NCI. Agency believes that this NCI no longer populations. The Agency believes that presents a significant opportunity to C. Return of Initiatives to the Core its expertise will help improve correct water quality impairment Program compliance rates and facilitate a timely nationwide. The EPA proposes to return return to compliance where The EPA expects to return the work in this area to the core program in noncompliance is found. The EPA also following two current initiatives to the FY 2020. EPA and states will continue plans to enhance the use of compliance standard ‘‘core’’ enforcement program to monitor implementation of these assistance and expedited settlement having largely achieved EPA’s goals for long-term agreements, and to adapt agreements to address smaller sources. these NCIs: them to changing circumstances and Reducing Air Pollution from the new information, such as the increasing B. Modifications of Initiatives Largest Sources. The New Source commitment of cities to implement The EPA is seeking comment on plans Review (NSR) and Prevention of green infrastructure, changes in to transition two current initiatives into Significant Deterioration (PSD) financial capability, or technological new initiatives for FY 2020–2023. A requirements of the CAA require certain advances. brief description of the proposed large industrial facilities to install state- changes is provided below. of-the-art air pollution controls when D. New NCIs Transitioning ‘‘Keeping Industrial they build new facilities or make The EPA specifically invites comment Pollutants Out of the Nation’s Waters’’ significant modifications to existing on two new NCIs under consideration: NCI to ‘‘National Pollutant Discharge facilities. The EPA began this initiative a. NCI to increase compliance with Elimination System (NPDES) Significant as it relates to the power sector in 1998, drinking water standards. Each year Non-Compliance (SNC) Reduction’’: In after EPA investigations revealed that thousands of community water systems FY 2018, the EPA initiated a new NCI many facilities had failed to install (CWSs) violate one or more health-based focused on achieving the goal pollution controls after modifications, drinking water standards promulgated established in EPA’s FY 2018–2022 causing them to emit pollutants that can under the Safe Drinking Water Act Strategic Plan: ‘‘By September 30, 2022, impact air quality and public health. (SDWA), which exposes millions of increase the environmental law The EPA and state regulatory people to potential health risks. compliance rate.’’ As described in the approaches and enforcement efforts in Thousands more CWSs repeatedly fail Strategic Plan, this concept is first being this sector have resulted in a 90 percent to collect water samples or report test piloted by focusing, through the new reduction in sulfur dioxide emissions results making difficult to know if the NCI, on reducing the rate of significant and an 83 percent reduction in nitrogen drinking water is safe. CWSs exceeding noncompliance in the Clean Water Act oxide emissions since 1997, while gross action levels or other regulatory triggers (CWA) NPDES program by 50 percent generation has increased by 10 percent. may not complete required follow-up by the end of FY 2022. The NCI has The EPA has required controls or actions. In addition to these known incorporated the existing ‘‘Industrial commenced investigations at 91 violations, significant deficiencies in the Pollutants’’ NCI with a broader focus of percent, 96 percent, and 90 percent of design, operation or maintenance of the increasing the percentage of all NPDES facilities in the glass, cement, and acid CWS may go unreported and permittees in compliance with their manufacturing sectors, respectively. uncorrected. Recent events at a few permit (as measured by reducing the Accordingly, the Agency believes that large CWSs indicate that current rate of permittees in SNC). This effort this NCI no longer presents a significant practices and use of existing data, tools, could establish a model for improving opportunity to affect nonattainment and policies have not always proved environmental program compliance areas or vulnerable populations sufficient to prevent CWSs from moving rates that could be used in other nationwide. The EPA proposes to return toward serious noncompliance that may programs. EPA is seeking comment on work in these areas to the core program threaten human health. This potential how to best pursue and achieve this goal in FY 2020. EPA will continue to NCI would focus on EPA working of reducing NPDES SNC in the FY monitor the progress of existing jointly with states to identify how we 2020–2023 NCI cycle. settlement agreements to ensure actions can collaborate to use our resources Transitioning the ‘‘Ensuring Energy required under those settlements are more effectively and efficiently to focus Extraction Activities Comply with implemented and air pollution efforts where they can make the biggest Environmental Laws’’: Beginning in reduction targets are met. difference as we work together to 2011, this initiative focused on one Keeping Raw Sewage and increase compliance with primary industrial sector, natural gas extraction, Contaminated Stormwater Out of Our drinking water standards thus implying that the EPA considers all Nation’s Waters. Since this NCI began in improving public health protection at problems in this sector—large or 2000, the EPA, in conjunction with state CWSs most at risk. This NCI would small—to be a priority. Rather than co-plaintiffs, has taken enforcement support the Agency’s Strategic Plan focus on any single sector, the EPA actions at the largest municipal sewer objective to reduce the number of proposes to focus on significant public systems with CWA violations to reduce community water systems out of health and environmental problems pollution and to reduce unlawful compliance with health-based without regard to sector. Specifically, discharges of raw sewage that degrade standards. for the FY 2020–2023 NCI cycle the EPA water quality in communities. The EPA b. NCI to reduce children’s exposure is proposing to transition this NCI to an has obtained significant improvement in to lead. A potential lead NCI would initiative that will focus on significant compliance and major reductions in support various agency efforts to tackle sources of volatile organic compounds water pollution. Under this initiative, 97 lead contamination in all environmental (VOCs) that have a substantial impact percent of large combined sewer media and could present an opportunity on air quality (without regard to sector), systems, 92 percent of large sanitary to use consumer education to increase and that may adversely affect vulnerable sewer systems and 79 percent of Phase compliance. This NCI would support
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the Agency’s Strategic Plan focus on lack of authorized funding (i.e., a Fiscal this document applies to them. vulnerable populations, as well as the Year 2019 Appropriations Bill or a Potentially affected entities may interagency Federal Lead Action Plan. Continuing Resolution), EPA is include: Finally, the public is invited to extending the review periods for all • Manufacturers or processors of one propose any other areas for Premanufacture Notices (PMNs), or more subject chemical substances consideration as new NCIs. Significant New Use Notices (SNUNs), (NAICS codes 325 and 324110), e.g., chemical manufacturing and petroleum E. Public Comments Microbial Commercial Activity Notices (MCANs), and exemption notices refineries. The EPA will consider all comments submitted to the Agency under section to these proposals as it moves forward B. How can I get copies of this document 5 of the Toxic Substances Control Act and other related information? in the decision-making process. NCIs (TSCA) received by EPA on or before will be incorporated into the EPA Office December 29, 2018, and for which the The docket for this action, identified of Enforcement and Compliance review period had not expired as of by docket identification (ID) number Assurance FY 2020–2021 National December 29, 2018. Additionally, EPA EPA–HQ–OPPT–2019–0021, is available Program Guidance (NPG) that provides did not receive notifications or process at http://www.regulations.gov or at the national program direction for all EPA such submissions on or after December Office of Pollution Prevention and regional offices. Information in support 29, 2018, and before the date on which Toxics Docket (OPPT Docket), of this Notice of Public Comment is the shutdown terminated on January 25, Environmental Protection Agency available online at: http://www.epa.gov/ 2019, and the affected operations for the Docket Center (EPA/DC), West William enforcement/national-compliance- TSCA New Chemicals Program fully Jefferson Clinton Bldg., Rm. 3334, 1301 initiatives. resumed on January 31, 2019. Also, Constitution Ave. NW, Washington, DC. The Public Reading Room is open from VI. Can the deadline for comments be during the shutdown, submissions made 8:30 a.m. to 4:30 p.m., Monday through extended? through e-PMN/CDX or other methods Friday, excluding legal holidays. The The EPA will include NCIs in the were not processed by EPA. Consequently, the review period for any telephone number for the Public Office of Enforcement and Compliance Reading Room is (202) 566–1744, and Assurance (OECA) draft NPG that will TSCA section 5 notice submitted during the shutdown did not begin until TSCA the telephone number for the OPPT be released for public comment to allow Docket is (202) 566–0280. Please review the EPA regions, as well as states and New Chemical operations fully resumed on January 31, 2019. the visitor instructions and additional federally-recognized tribes with information about the docket available approved programs, to consider the DATES: The duration of this extension at http://www.epa.gov/dockets. guidance fully in their annual planning period is equivalent to the time period Information on the shutdown can be processes that direct the use of from December 29, 2018 (i.e., the date found at http://www.opm.gov. resources according to the fiscal on which EPA operations shutdown) Information about the TSCA section 5 calendar. As a result, EPA must receive and the date on which EPA operations requirements can be found at http:// public comments on potential NCIs by for the TSCA New Chemicals Program www.epa.gov/oppt/newchems/. March 11, 2019 in order to complete fully resumed (i.e., January 31, 2019), or consideration of NCIs before the NPG is a total of 33 days. C. What is the Agency’s authority for taking this action? released for public comment. However, FOR FURTHER INFORMATION CONTACT: the public will have a second For technical information contact: Under TSCA section 5(c), 15 U.S.C. opportunity to provide comments on the Greg Schweer, Chemical Control 2604(c), EPA may unilaterally extend NCIs when commenting on OECA’s Division (7405M), Office of Pollution the notice review period for PMNs, draft NPG. Prevention and Toxics, Environmental MCANs, and SNUNs, thereby extending Dated: December 20, 2018. Protection Agency, 1200 Pennsylvania the period before manufacturing or processing the subject chemical Susan Parker Bodine, Ave. NW, Washington, DC 20460–0001; telephone number: (202) 564–8469; substances may begin. (See also 40 CFR Assistant Administrator, Office of 720.75(c) for PMNs and SNUNs, and 40 Enforcement and Compliance Assurance. email address: [email protected]. For general information contact: The CFR 725.56 for MCANs.) Section 26(c) [FR Doc. 2019–01548 Filed 2–7–19; 8:45 am] TSCA-Hotline, ABVI-Goodwill, 422 of TSCA (15 U.S.C. 2625(c)), authorizes BILLING CODE 6560–50–P South Clinton Ave., Rochester, NY EPA to take action with respect to a 14620; telephone number: (202) 554– category of chemical substances; in this ENVIRONMENTAL PROTECTION 1404; email address: TSCA-Hotline@ case, the category is all chemical AGENCY epa.gov. substances that are the subject of the specified notices and exemption SUPPLEMENTARY INFORMATION: [EPA–HQ–OPPT–2019–0021; FRL–9989–21] applications, for which the notice I. General Information review period would otherwise expire Extension of Review Periods Under the on or after December 29, 2018. Under A. Does this action apply to me? Toxic Substances Control Act; Certain TSCA section 5(c), extensions of the Chemicals and Microorganisms; You may be potentially affected by review period for an individual TSCA Premanufacture, Significant New Use, this action if you are a manufacturer section 5 notice shall not total more and Exemption Notices; Delay in (which includes importers) or processor than 90 days. Because the extension Processing Due to Lack of Authorized of a chemical substance that requires described in this Federal Register notice Funding submission under section 5 of TSCA (15 (i.e., 33 days) is less than 90 days, EPA AGENCY: Environmental Protection U.S.C. 2604) and applicable EPA reserves the right under TSCA section Agency (EPA). regulations. The following list of North 5(c) to issue, for good cause, future ACTION: Notice. American Industrial Classification additional extensions for individual System (NAICS) codes is not intended cases up to a total of 90 days. SUMMARY: Due to a partial Federal to be exhaustive, but rather provides a Section 5(h) of TSCA (15 U.S.C. government shutdown related to the guide to help readers determine whether 2604(h)) authorizes EPA to exempt
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manufacturers and/or processors of the TME from the MCAN requirement is year approvals to access TSCA CBI chemical substances from all or part of codified in 40 CFR part 725, subpart F expired during the shutdown were the requirements of section 5 of TSCA (40 CFR 725.300 through 725.370); and reestablished; and contractor staff who if EPA determines that the proposed the TME from the SNUN requirement were reassigned to other contracts not manufacture, processing, distribution in appears at 40 CFR 721.45(a). Under affected by the shutdown were commerce, use, or disposal of such TSCA section 5(h)(4), EPA promulgated reassigned to contracts supporting the chemical substance will not present an at 40 CFR 723.50 a Low Volume New Chemicals Program. unreasonable risk to health or the Exemption (LVE) and a Low Release/ Under TSCA section 5(c), the total environment. Pursuant to this and other Low Exposure (LOREX) Exemption from extensions of the review period for an authorities, EPA has concluded that the the PMN requirement. The regulations individual PMN shall not exceed 90 additional time specified in this notice at 40 CFR part 725 pertaining to days. Thus, since the extension is required to evaluate the exemption genetically engineered microorganisms described in this notice is for less than applications described in Unit II.A. and provide several exemptions from the 90- 90 days, EPA reserves the right to issue determine whether the chemical day MCAN requirement, including the additional extensions under TSCA substances that are the subject of these TSCA Experimental Release Application section 5(c) in the future for good cause exemption applications will not present (TERA) at 40 CFR part 725, subpart E, up to a total of 90 days. an unreasonable risk. and the Tier I and Tier II Exemptions at Because of these circumstances, EPA 40 CFR part 725, subpart G. is taking the following actions and is II. Extension of Review Periods requesting the assistance of notifiers as B. What action is the Agency taking? A. Which TSCA review periods are described in this unit: affected? Effective December 29, 2018, due to Category 1—TSCA section 5 notices the lack of authorized funding (i.e., a and exemptions submitted to EPA on or Section 5 of TSCA and 40 CFR part Fiscal Year 2019 Appropriations Bill or after December 29, 2018, and before the 720 require any person who intends to a Continuing Resolution), certain EPA date on which the affected operations manufacture (defined by statute to functions were suspended. During the fully resumed on January 31, 2019. include import) a new chemical shutdown, no review work was During the shutdown, submissions substance (i.e., a chemical not on the performed on the TSCA section 5 made through e-PMN/CDX or other TSCA section 8(b) Inventory) to notify notifications received by EPA on or methods were not processed. EPA at least 90 days before commencing before December 29, 2018, and for Consequently, the review period for any non-exempt commercial manufacture in which the review period had not yet TSCA section 5 notice submitted during the form of a PMN. Similarly, at least 90 expired as of December 29, 2018. the shutdown did not begin until TSCA days advance notice for manufacture of Because of the shutdown, EPA is now New Chemicals Program operations new microorganisms is required under extending, pursuant to sections 5(c) and fully resumed on January 31, 2019. 40 CFR part 725, in the form of an 26(c) of TSCA and 40 CFR 720.75(c), the Category 2—TSCA section 5 MCAN. Under section 5 of TSCA and 40 review periods of all TSCA section 5 exemption notices scheduled to expire CFR part 721, any person intending to notifications received on or before on or after December 29, 2018. For any manufacture or process a chemical December 29, 2018, and for which the exemption notices that have not been substance for a significant new use, as review period has not yet expired as of granted by EPA and for which the designated by EPA in a SNUR, must also December 29, 2018. review period was scheduled to expire give EPA at least 90 days advance notice The Agency requires an extension of on or after December 29, 2018, EPA is in the form of a SNUN. SNURs for the review periods to complete its risk hereby extending the notice review microorganisms appear at 40 CFR part assessments, to examine its regulatory period by 33 days (the number of days 725, subpart M. The required options, and to prepare the necessary equivalent to the duration of the notifications initiate EPA’s evaluation of documents associated with the relevant shutdown until affected operations fully the new chemical or the intended determination under TSCA section resumed). This additional time is significant new use within the 5(a)(3). Therefore, EPA has determined required to ensure there is sufficient applicable review period. Persons may that good cause exists to extend, under opportunity to determine that the not commence manufacture of a new TSCA section 5(c), the review period for chemical substances that are the subject chemical substance, or manufacture of each such TSCA section 5 notification. of the exemption applications will not processing of a chemical substance for The duration of this extension period present an unreasonable risk. a significant new use, until EPA has is equivalent to the time period from Category 3—TSCA section 5 PMNs, conducted a review of the relevant December 29, 2018 (i.e., the date on MCANs, and SNUNs scheduled to notice, made an appropriate which EPA operations shutdown) and expire on or after December 29, 2018. determination on the notice, and has the date on which EPA operations for For any PMN, MCAN, or SNUN for taken such actions as are required with the TSCA New Chemicals Program fully which the review period was scheduled that determination. resumed (i.e., January 31, 2019), or a to expire on or after December 29, 2018, There are several of exemptions from total of 33 days. Although EPA EPA is hereby extending the notice the above-described 90-day PMN, reopened following the partial review period by 33 days (the number MCAN, and SNUN notice requirements. government shutdown on January 28, of days equivalent to the duration of the Many of these exemptions require 2019, EPA set January 31 as the day that shutdown until affected operations fully submitting to EPA a written notice or normal operations of the TSCA section resumed). application, which is subject to a review 5 New Chemicals Program fully period shorter than 90 days. For resumed. These additional days beyond C. Was this action submitted to example, pursuant to TSCA section January 28 reflect the additional time Congress and the Comptroller General? 5(h)(1) EPA has promulgated a Test that was needed to ensure that: EPA The Congressional Review Act, 5 Market Exemption (TME) from the data systems were fully operational; U.S.C. 801 et seq., generally provides PMN, MCAN, and SNUN 90-day notice EPA and contractor staff have ID badges, that before the Agency can impose requirements. The TME from the PMN passwords and access to systems were binding requirements like those requirement appears at 40 CFR 720.38; reset; EPA and contractor staff whose 1- contained in a rule, the Agency must
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submit a rule report, which includes a epa.gov, or by mail to: EPA Docket Abstract: The Responsible Appliance copy of the document, to each House of Center, Environmental Protection Disposal Program (RAD) is a voluntary the Congress and to the Comptroller Agency, Mail Code 28221T, 1200 partnership program sponsored by the General of the United States. Although Pennsylvania Ave. NW, Washington, DC Environmental Protection Agency (EPA) this document is not a rule, it is binding 20460. that reduces emissions of ozone in the sense that the suspensions EPA’s policy is that all comments depleting substances (ODS) that can be announced in here are binding. EPA has received will be included in the public attributed to improper disposal of submitted a report to the U.S. Senate, docket without change including any appliances. Appliances can contain the U.S. House of Representatives, and personal information provided, unless ozone depleting refrigerants and foams the Comptroller General of the United the comment includes profanity, threats, as well as universal wastes such as States prior to its publication in the information claimed to be Confidential mercury, used oil, and polychlorinated Federal Register. This action is not a Business Information (CBI) or other biphenyls (PCB). Federal law requires ‘‘major rule’’ as defined by 5 U.S.C. information whose disclosure is refrigerant recovery and proper 804(2). restricted by statute. management of universal waste but does List of Subjects FOR FURTHER INFORMATION CONTACT: not require the recovery of appliance Sally Hamlin, Stratospheric Protection foam. In addition to being ODS, foam Environmental protection, Chemical, Division, Office of Atmospheric blowing agents and refrigerants in Microorganisms, Premanufacture Programs (Mail Code 6205T), appliances may also have high global Notices, Test Marketing Exemptions. Environmental Protection Agency, 1200 warming potentials (GWPs). The RAD Dated: February 1, 2019. Pennsylvania Ave. NW, Washington, DC program works with utilities, retailers, Lynn Vendinello, Acting, 20460; telephone number: (202) 343– manufacturers, state agencies, affiliates, Director, Chemical Control Division, Office 9711; fax number: (202) 343–2362; and others to dispose of appliances of Pollution Prevention and Toxics. email address: [email protected]. using best environmental practices. SUPPLEMENTARY INFORMATION: [FR Doc. 2019–01684 Filed 2–7–19; 8:45 am] Form Numbers: 5900–32 BILLING CODE 6560–50–P Supporting documents which explain in detail the information that the EPA will Respondents/affected entities: The be collecting are available in the public following is a list of North American ENVIRONMENTAL PROTECTION docket for this ICR. The docket can be Industry Classification System (NAICS) AGENCY viewed online at www.regulations.gov codes for organizations potentially or in person at the EPA Docket Center, affected by the information [EPA–HQ–OAR–2007–0358; FRL–9988–84– OAR] WJC West, Room 3334, 1301 requirements covered under this ICR Constitution Ave. NW, Washington, DC. are: Proposed Agency Information The telephone number for the Docket 2211 Utilities Collection Request; Comment Center is 202–566–1744. For additional 3352 Manufacturers Request; Responsible Appliance information about EPA’s public docket, 443141 Retailers Disposal Program (Renewal) visit https://www.epa.gov/dockets. 611310 Universities Pursuant to section 3506(c)(2)(A) of 999300 State/Municipality AGENCY: Environmental Protection the PRA, EPA is soliciting comments Agency (EPA). and information to enable it to: (i) Respondent’s obligation to respond: ACTION: Notice. Evaluate whether the proposed Voluntary. collection of information is necessary SUMMARY: The Environmental Protection Estimated number of respondents: 48 for the proper performance of the (over three years). Agency (EPA) is planning to submit an functions of the Agency, including information collection request (ICR), whether the information will have Frequency of response: Annual, and ‘‘EPA’s Responsible Appliance Disposal practical utility; (ii) evaluate the when desired. (RAD) Program (Renewal)’’ (EPA ICR accuracy of the Agency’s estimate of the Total estimated burden: 292 hours No. 2254.02, OMB Control No. 2060– burden of the proposed collection of (per year). Burden is defined at 5 CFR 0703) to the Office of Management and information, including the validity of 1320.03(b). Budget (OMB) for review and approval the methodology and assumptions used; Total estimated cost: $36,753 (per in accordance with the Paperwork (iii) enhance the quality, utility, and year), includes $0 annualized capital or Reduction Act. Before doing so, EPA is clarity of the information to be operation & maintenance costs. soliciting public comments on specific collected; and (iv) minimize the burden aspects of the proposed information of the collection of information on those Changes in estimates: There is a collection as described below. This is a who are to respond, including through decrease of 33 hours in the total proposed extension of the ICR, which is the use of appropriate automated estimated respondent burden compared currently approved through August 31, electronic, mechanical, or other with the 325 hours for the ICR currently 2019. An Agency may not conduct or technological collection techniques or approved by OMB. This decrease is due sponsor and a person is not required to other forms of information technology, in part to a decrease in the number of respond to a collection of information e.g., allowing electronic submission of respondents due to recycling industry unless it displays a currently valid OMB responses. EPA will consider the changes, as well as a reduction in the control number. comments received and amend the ICR number of partners participating in the DATES: Comments must be submitted on as appropriate. The final ICR package program each year. or before April 9, 2019. will then be submitted to OMB for Dated: December 14, 2018. ADDRESSES: Submit your comments, review and approval. At that time, EPA referencing Docket ID No. EPA–HQ– will issue another Federal Register Cynthia A. Newberg, OAR–2007–0358, online using notice to announce the submission of Director, Stratospheric Protection Division. www.regulations.gov (our preferred the ICR to OMB and the opportunity to [FR Doc. 2019–01536 Filed 2–7–19; 8:45 am] method), by email to a-and-r-docket@ submit additional comments to OMB. BILLING CODE 6560–50–P
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ENVIRONMENTAL PROTECTION number: (703) 308–0514; email address: shipped and the treatment, storage, or AGENCY [email protected]. disposal facility (TSDF) to which the wastes are bound. Generators, [EPA–HQ–OLEM–2018–0756, FRL–9988–67– SUPPLEMENTARY INFORMATION: OLEM] Supporting documents which explain in transporters, and TSDFs handling detail the information that EPA will be hazardous waste are required to Agency Information Collection collecting are available in the public complete the data requirements for Activities; Proposed Collection; docket for this ICR. The docket can be manifests and other reports primarily to: Comment Request; Requirements for viewed online at www.regulations.gov (1) Track each shipment of hazardous Generators, Transporters, and Waste or in person at the EPA Docket Center, waste from the generator to a designated Management Facilities Under the WJC West, Room 3334, 1301 facility; (2) provide information RCRA Hazardous Waste Manifest Constitution Ave. NW, Washington, DC. requirements sufficient to allow the use System The telephone number for the Docket of a manifest in lieu of a DOT shipping Center is 202–566–1744. For additional paper or bill of lading, thereby reducing AGENCY: Environmental Protection information about EPA’s public docket, the duplication of paperwork to the Agency. visit http://www.epa.gov/dockets. regulated community; (3) provide ACTION: Notice. Pursuant to section 3506(c)(2)(A) of information to transporters and waste the PRA, EPA is soliciting comments management facility workers on the SUMMARY: The Environmental Protection and information to enable it to: (i) hazardous nature of the waste; (4) Agency (EPA) is planning to submit the Evaluate whether the proposed inform emergency response teams of the information collection request (ICR), collection of information is necessary waste’s hazard in the event of an Requirements for Generators, for the proper performance of the accident, spill, or leak; and (5) ensure Transporters, and Waste Management functions of the Agency, including that shipments of hazardous waste are Facilities Under the RCRA Hazardous whether the information will have managed properly and delivered to their Waste Manifest System (EPA ICR No. practical utility; (ii) evaluate the designated facilities. The Hazardous 0801.23, OMB Control No. 2050–0039) accuracy of the Agency’s estimate of the Waste Electronic Manifest to the Office of Management and Budget burden of the proposed collection of Establishment Act provided EPA (OMB) for review and approval in information, including the validity of authority to establish the national accordance with the Paperwork the methodology and assumptions used; electronic hazardous waste manifest Reduction Act (PRA). Before doing so, (iii) enhance the quality, utility, and system to track hazardous waste the EPA is soliciting public comments clarity of the information to be shipments electronically. The Act also on specific aspects of the proposed collected; and (iv) minimize the burden provided EPA authority to adopt information collection as described of the collection of information on those regulations that (1) allow it to accept below. This is a proposed extension of who are to respond, including through electronic-manifests originated in the e- the ICR, which is currently approved the use of appropriate automated Manifest system as the legal equivalent through May 31, 2019. An Agency may electronic, mechanical, or other to paper manifests; (2) require manifest not conduct or sponsor, and a person is technological collection techniques or users to submit paper copies of the not required to respond to, a collection other forms of information technology, manifest to the system for data of information unless it displays a e.g., allowing electronic submission of processing; (3) collect manifests in the currently valid OMB control number. responses. e-Manifest system for hazardous waste DATES: Comments must be submitted on EPA is also proposing and soliciting subject to federal or state law; and (4) or before April 9, 2019. comments and information to: (1) set up user fees to offset the costs of ADDRESSES: Submit your comments, Improve the precision of waste developing and operating the e-Manifest referencing by Docket ID No. EPA–HQ– quantities and units of measure reported system. OLEM–2018–0756, online using in Items 11 and 12 of the hazardous Pursuant to the Act, EPA modified the www.regulations.gov (our preferred waste manifest (both paper and manifest regulations on February 7, method), by email to rcra-docket@ electronic), respectively; (2) enhance the 2014 (The e-Manifest ‘‘One Year Rule’’), epa.gov, or by mail to: EPA Docket quality of international shipment data to authorize use of electronic manifests Center, Environmental Protection reported on the manifest; and (3) assist (or e-Manifests) for tracking offsite Agency, Mail Code 28221T, 1200 EPA with integrating e-Manifest and shipments of hazardous waste from a Pennsylvania Ave. NW, Washington, DC biennial reporting (BR) requirements. generator’s site to the site of the receipt 20460. These improvements are discussed in and disposition of the hazardous waste. EPA’s policy is that all comments more detail below. On January 3, 2018, EPA finalized the received will be included in the public Abstract: The hazardous waste e-Manifest User Fee Final Rule which docket without change including any manifest (paper and electronic) and established the fee methodology that personal information provided, unless system cover recordkeeping and EPA uses to determine the user fees the comment includes profanity, threats, reporting activities under the Resource applicable to the electronic and paper information claimed to be Confidential Conservation and Recovery Act (RCRA) manifests submitted to the national Business Information (CBI) or other and the Hazardous Waste Electronic system. EPA launched the e-Manifest information whose disclosure is Manifest Establishment Act (Pub. L. system on June 30, 2018. TSDF and restricted by statute. 112–195). EPA’s authority to require use other receiving facilities must submit FOR FURTHER INFORMATION CONTACT: of a manifest system stems primarily manifests, both paper and electronic, to Bryan Groce, Office of Resource from RCRA 3002(a)(5) (also RCRA EPA. In addition to fees for RCRA Conservation and Recovery, Program Sections 3003(a)(3) and 3004.) wastes, EPA is charging TSDFs and Implementation and Information Regulations are found in 40 CFR part other facilities receiving state-only Division, (5304P), Environmental 262 (registrant organizations and regulated wastes a fee for each manifest Protection Agency, 1200 Pennsylvania generators), part 263 (transporters), and submitted to the system. Regulations Ave. NW, Washington, DC 20460; parts 264 and 265 (TSDFs). The regarding copy submission requirements telephone number: (703) 308–8750; fax manifest lists the wastes that are being for interstate shipments and the
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applicability of e-Manifest system and confirmed that many state databases are manifest, we believe the regulated fees to facilities receiving state-only not set up to receive data reported as community could more precisely report regulated wastes are found in 40 CFR fractions or decimals. Second, states waste quantity by also using smaller part 260 (Hazardous Waste Management argued frequent use of fractional or units of measure (e.g., ounces, grams, System). Regulations regarding decimal entries could cause a significant milliliters). The current set of units of imposition of user fees on receiving number of errors resulting from attempts measure specified in the manifest facilities for their manifest submissions, to interpret the fractions or to determine instructions to Item 12 of the manifest with references to key fee methodology, when and where a decimal point was limit use to gallons, kilograms, liters, fee dispute, and fee sanction present. Finally, states argued waste metric tons, cubic meters, pounds, tons, requirements are found in Parts 264 and quantity reporting entries on the or cubic yards. This set can cause waste 265. manifest could be misinterpreted and quantity reporting imprecision if waste For this renewal, EPA is proposing accuracy and precision compromised, quantity data must be rounded to the several improvements/enhancements, because decimals or fractions may not nearest whole number. If, however, the discussed below. transmit clearly to the bottom copies of current set also included smaller units the carbonless and non-carbon papers of of measure, waste quantity reporting I. Improve Precision of Waste the manifest forms. precision may possibly be improved if Quantities and Units of Measure Although EPA elected not to adopt quantities are expressed as whole A. Use of Decimals use of fractions or decimals in the numbers. EPA requests comment on March 2005 final rule, we are revisiting whether the agency should revise Table EPA is proposing to modify the this issue in light of implementation of manifest instructions to Item 11 of the II of the manifest instructions to Item 12 the e-Manifest system, which the to include ounces, grams, and manifest to grant manifest users the Agency launched on June 30, 2018. The option to report waste quantities using milliliters. Additionally, EPA asks what issue of whether to allow decimals was other smaller units of measure could decimals or fractions. The effect of this also raised during the September 2017 change would afford generators, and offer greater waste quantity reporting e-Manifest Advisory Board meeting. precision? others completing the manifest, the Hazardous waste shipments now can be ability to report more accurate wastes tracked electronically in e-Manifest and, II. Enhance Quality of International quantities in Item 11 of the manifest unlike the paper manifest form, the e- Shipment Data using decimals, rather than rounding Manifest system could be designed to A. Addition of a New Field for Consent partial units to the nearest whole unit or accept fractions or decimal entries in selecting smaller units of measure (e.g., Numbers for Import and Export Item 11 of the manifest without concern Shipments pounds instead of tons). of misinterpretation of waste quantities EPA has provided guidance on this due to decimal misplacement. EPA is proposing to add a new data issue in past manifest rulemakings. In Additionally, all manifests, paper and field on the paper and electronic March 2001, we explained that the electronic, are now submitted to one manifest so hazardous waste stream Agency has historically discouraged use central system—EPA’s e-Manifest consent numbers can be recorded in a of fractions or decimals and referenced system, which is then used to separate, distinct field on a manifest. EPA’s March 1984 Uniform Manifest disseminate manifest data to the states. Current export regulations at 40 CFR Rule, which stated quantity descriptions This central collection may alleviate 262.83(c)(3) require exporters to record should be as accurate as possible some of the state-specific issues related the consent numbers on the manifest for without using fractions or decimals. We to integrating decimals into the state each waste stream listed in Item 9b of also said that states reasonably may databases. Furthermore, EPA believes the manifest. Similarly, import-related have relied upon EPA’s 1984 guidance the allowance of decimals in Item 11 of regulations at 40 CFR 264.71(a)(3)(i) recommending against fractions and the manifest will greatly enhance the require U.S. facilities receiving decimals when they designed their data accuracy of waste quantities reported to hazardous waste subject to 40 CFR part systems. As a result, many state EPA. Consequently, EPA requests 262, subpart H, from a foreign entity to databases are not set up to receive data comment on whether the agency should record the relevant waste stream reported as fractions or decimals. The revise the manifest instructions to allow consent number from consent March 2001 proposal, however, reporting of decimals or fractions in documentation supplied by EPA to the acknowledged that a strict exclusion of Item 11 of the manifest. facility for each waste listed on the fractional quantities could cause waste Specifically, EPA asks, would use of manifest. Currently, EPA has handlers to report waste quantities that decimals or fractions present issues for recommended listing the consent lacked precision. For example, for waste paper manifests? Should EPA limit use numbers in Item 14 ‘‘Special Handling quantities reported in tons, a waste of decimals for certain shipment types— Instructions and Additional quantity reported as 1.5 tons is far more i.e., limit use of fractions and decimals Information’’ on the paper manifest precise than the alternative of truncating to certain shipments as proposed in form due to the lack of dedicated fields the quantity reported to only 1 ton or March 2001 by granting use of decimals for listing such numbers. For electronic rounding up the quantity reported to 2 for bulk shipments (greater than 119 manifests, consent numbers are tons. As a result, we proposed to revise gallons), but require use of whole collected in e-Manifest for each waste the manifest instructions to require only numbers for non-bulk shipments (less stream as part of Item 9b, the U.S. whole numbers to describe non-bulk than or equal to 119 gallons)? What are Department of Transportation (DOT) shipments but allow use of fractions for the impacts to state and industry shipping description. bulk shipments, where necessary. database systems, if EPA elects to allow EPA believes the addition of a In its March 2005 final rule, EPA use of decimals for waste quantity separate data field to the paper and decided against allowing use of descriptions? electronic manifest for consent numbers fractions or decimals to report waste would facilitate the electronic upload or quantities on the manifest based on a B. Alternative Set of Units of Measure manual data entry of data from paper few adverse comments received to the In addition, or as an alternative, to export and import manifests as the proposal. First, state commenters using decimals or fractions on the manifest would more clearly list the
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consent number for each waste stream. information rather than the exporter’s options to accommodate these additions The additional field would also information. on the paper forms. facilitate the retrieval of import manifest Therefore, in anticipation of For example, is another option for data from e-Manifest for all manifested promulgating a regulation requiring the international shipments to add space to import shipments; the retrieval of export collection of export manifests in e- Item 16, the International Shipment manifest data could also occur once Manifest, we are considering revising field, on the paper manifest to EPA begins collecting export manifests the manifest instructions for both the accommodate the four, 12-digit consent in the e-Manifest system. paper and electronic forms so that if the numbers corresponding to each of the EPA requests comment on its responsible exporter is separate from the four waste streams listed in Item 9 of the proposal to add a new data element on site initiating the export shipment, the manifest? As an alternative, could we the manifest for the consent number for exporter can clearly identify itself by revise the Continuation Sheet so that the International Shipment Field is each waste stream. entering its EPA ID number on the removed from the paper manifest and manifest, either in addition to or in lieu B. Capturing Exporter EPA ID Number appears instead on a Continuation Sheet of the EPA ID number for the generator on the Manifest with an expanded area that is able to site. Alternatively, EPA could rely on more easily accommodate four 12-digit EPA explained in the 2018 e-Manifest the waste stream consent numbers consent numbers and the primary User Fee Final Rule that it has not yet already required to be recorded on the exporter’s EPA ID number, if necessary? determined who in the export shipment manifest, as each waste stream consent This would free up space on the paper chain of custody (i.e., primary exporter number is associated with a unique U.S. manifest form for other tracking vs. transporter moving waste from U.S. exporter in EPA’s Waste Import Export or other entity) is best suited for making elements, including data elements Tracking System (WIETS). Relying on needed for biennial reporting, or the submission of the export manifest to the waste stream consent numbers the system and paying the requisite additional space needed for Item 14 would require e-Manifest obtaining entries. Both options would require processing fee. EPA also explained that reference data on the exporter EPA ID the Agency plans to consult the revisions to the instructions for export number for each waste stream consent manifests to clarify that the primary Advisory Board on future e-Manifest number from WIETS, while adding a system enhancements and expansions exporter must enter its EPA ID in Item new element for entering the exporter’s 1 and its name and address on the left and thus will bring the issue of export EPA ID number could be used directly side of Item 5 and supply the name and manifests before the Advisory Board in by e-Manifest. address of the generator site on the right the near future. If, however, EPA EPA requests comment on whether side of Item 5, if not the same as the ultimately decides that the exporter is the agency should revise the primary exporter. Alternatively, we the party best suited to be billed for instructions for export manifests to could modify the instructions under export manifests collected in e-Manifest, clarify that the primary exporter must both options to clarify that the primary the current manifest doesn’t provide enter its EPA ID in Item 1 and its name exporter must enter its EPA ID number adequate information required to and address on the left side of Item 5 in a separate new data field so that the invoice them. and supply the name and address of the generator site’s EPA ID number is While EPA has designated a specific generator site on the right side of Item retained in Item 1 of the manifest. With data element on the manifest form to 5, if not the same as primary exporter, respect to import manifests, the report transporter ID numbers (Items 6 or, if an additional field should be manifest instructions would also need and 7 for Transporter 1 and Transporter added to capture the primary exporter’s to be revised to instruct the receiving 2), it has not designated a similar data EPA ID number so that the generator facility to list the consent numbers for element for exporter ID numbers. site’s EPA ID number is retained in Item each waste stream. Current export regulations at 40 CFR 1 of the manifest. Or, alternatively, How To Incorporate Import and Export 262.83(c) require the exporter to comply should EPA rely on the waste stream with the manifest requirements of 40 Data for the Movement Document on the consent numbers from WIETS instead of Manifest CFR 262.20 through 262.23 except that adding a new data element on the in lieu of the name, site address, and manifest? Besides the proposed revision to the EPA ID number of the designated Continuation Sheet for international permitted facility, the exporter must C. How To Incorporate New Fields on shipment information, should EPA also enter the name and site address of the Manifest and Whether To Consolidate revise the Continuation Sheet with a foreign receiving facility, the exporter With Movement Document more expanded International Field that must check the export box and enter the How To Incorporate New Fields on is sufficient to collect all the U.S. port of exit (city and state) from the Paper Manifests information that is required on a United States in Item 16, and as movement document? For hazardous previously discussed, the exporter must As mentioned above, EPA is waste shipments leaving the U.S., the record the waste stream consent number considering several data element hazardous waste export regulations for each waste listed on the manifest. If additions to the manifest (both paper require both an export manifest and the exporter is the generator or the site and electronic) for international movement document to accompany the from where the export manifest is shipments. While the proposed shipment. For hazardous waste initiated, the exporter’s information will additions for consent numbers are being shipments entering the U.S., the be listed in Item 1 and Item 5. But if the implemented easily in the e-Manifest hazardous waste import regulations exporter is a recognized trader located system for electronic tracking, these similarly require both an import separate from the site initiating the additions would be problematic with manifest and movement document to export shipment, then while the the paper forms. The one-page paper accompany the shipment. The exporter must ensure that the items manifest is already full of many data movement document must accompany noted above are recorded on the elements and does not have much space the shipment from its initiation in the manifest, Item 1 and Item 5 will reflect left for new additions. EPA requests country of export to its delivery to the the generator or shipping site’s comment on whether there are other receiving facility in the country of
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import. The movement document waste codes and the applicable UN/DOT in Item 14 ‘‘Special Handling contains many of the same data required identification numbers. Besides this Instructions and Additional on the manifest; both documents description information, the movement Information’’ on the paper manifest identify the site from which the document must also include the form due to the lack of dedicated fields shipment originates in the country of applicable OECD waste codes from the for listing such information. However, export, the wastes being exported or Green or Amber Lists of wastes as set the paper manifest form does not imported, the applicable consent forth in the OECD Council Decision and provide BR data that describes how the number for each waste stream from the incorporated by reference in 40 CFR hazardous waste originated (source relevant Acknowledge of Consent 260.11(g). Finally, another difference code) nor does it provide waste letters, the transporters or other persons between export manifests and information about the physical form or taking custody of the waste during its movement documents is that movement chemical composition of the hazardous movement, and the receiving facility in documents must also be signed by the waste (form code). The densities for the country of import. foreign receiving facility. The signed each waste stream must also be reported The movement document also copy is then used to provide the for BR purposes if total hazardous waste includes some additional information exporter with confirmation of receipt. quantities are reported using volumetric currently not required on export Lastly, any rejection of a waste in the measure (gallons, liters, or cubic yards). manifests. The additional information shipment must be noted on the (Note: The e-Manifest system allows includes, but is not limited to, (1) more movement document. users to voluntarily report source and If EPA expanded the continuation contact information for the company form codes, and density data in the sheet to include space for: (1) originating the shipment (if different system.) If adopted, certain hazardous Additional contact information for the than the exporter), exporter, transporters waste generators would be required to generator, exporter, transporters and and handlers of the export shipment, enter source and form codes and density handlers, importer (if different than the foreign importer (if different than the information on the manifest for each receiving facility) and receiving facility; foreign receiving facility), and foreign RCRA waste listed on paper and (2) additional international codes for the receiving facility; (2) international electronic manifests. Currently, federal recovery or disposal processes to be recovery or disposal operation codes for regulations only require large quantity used at the consignee facility; (3) the hazardous waste management generators (LQGs) to submit the additional international waste codes processes to be used at the consignee Biennial Report (see § 262.41). Small from the OECD Decision’s Green or quantity generators (SQGs) and very facility, as defined in 40 CFR 262.81; (3) Amber Lists; and (4) the foreign and international waste codes from the small quantity generators (VSQGs) are receiving facility’s signature, it would not subject to the federal biennial OECD Decision’s Green, or Amber Lists, eliminate the necessity for export as incorporated by reference in 40 CFR reporting requirements, but such shipments to be tracked with separate generators could be subject to BR 260.11. Both the manifest and manifests and movement documents. movement document require the name requirements under state law since Expansion of the Continuation Sheet to states can have more stringent reporting and identifying information about the accommodate these movement company initiating the waste shipment requirements. Thus, hazardous waste document data elements would also aid generators who are required to complete (i.e., EPA identification number, in the electronic sharing of shipment address, telephone). The export the Waste Generation and Management data with the waste handlers and the (GM) Form under federal law or state manifest, however, would not include national governments involved in the law would be expected to enter source the exporter’s information if the exports. exporter is not the generator but is a and form codes and density recognized trader located separate from III. Biennial Reporting and e-Manifest information, if necessary, on paper and the site initiating the export shipment; Integration electronic manifests. Because the e- the movement document includes this Pursuant to the Hazardous Waste Manifest Act extends to federally and information and also requires the email Electronic Manifest Establishment Act, state-regulated wastes requiring address, phone number and fax number EPA is required to build the e-Manifest manifests, the e-Manifest system also (if they have one) for the exporter, system to afford users the ability to collects manifests for state-only shipping site company (if different than report hazardous waste receipt data regulated hazardous wastes shipped on the exporter), transporters, foreign applicable to the biennial hazardous a manifest. Therefore, if a waste has a importer (if different than the receiving waste report in e-Manifest. To meet the manifesting requirement under the law facility) and receiving site. Second, the conditions under the e-Manifest Act, of either the origination (generator) state movement document also requires EPA is proposing to revise the paper or the destination state, EPA would also additional information regarding the manifest and continuation sheet (EPA require the generator of such wastes to technologies to be employed by the Form 8700–22 and 8700–22A) to enter source and form codes and density foreign receiving facility, and the include source and form codes and information, if applicable, on paper and applicable international recovery or density information. electronic manifests. Similarly, an entity disposal operations must be included on The current manifest form already preparing a manifest on behalf of the the movement document as defined in collects certain waste receipt data for generator, meeting the BR conditions 40 CFR 262.81; these codes serve the biennial reporting: Facility’s EPA ID above, would be expected to also enter same purpose as the management number (Item 1); facility’s name and source and form codes and density method codes for domestic hazardous address (Item 5); total quantities of information, if applicable, on the paper shipments, which describe the type of waste shipped off-site for hazardous and electronic manifests. hazardous waste management system management (Item 11); and management EPA believes the addition of these BR used to treat, recover, or dispose of a method codes for hazardous waste data elements to the paper manifest hazardous waste. Third, both the export treatment, storage, and disposal (Item form is an important step towards full manifest and movement document must 19). Generators and other manifest integration of e-Manifest with BR. These include in the description of waste preparers can voluntarily report specific codes will enable users to report waste sections of the documents the RCRA gravity or density for each waste stream receipt data in the e-Manifest system
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and ultimately assist them in the ENVIRONMENTAL PROTECTION FOR FURTHER INFORMATION CONTACT: If preparation of their biennial hazardous AGENCY you have any questions about the public waste report. EPA requests comment on hearing, you may contact Ms. Yvonne [EPA–HQ–OAR–2018–0226; FRL–9989–06– its proposal to require the reporting of OAR] W. Johnson at (919) 541–3921 or form and source codes and density [email protected]. If you need information, if applicable, on the RIN 2060–AT97 further information about this notice or manifest; these codes and density data the proposed rule, please contact Ms. would also be mandatory for manifest Public Hearing and Reopening of Virginia Raps, Office of Air Quality completion in e-Manifest. EPA requests Comment Period for Proposed Planning and Standards (OAQPS), Air Determinations of Attainment by the comment on how the Agency should Quality Policy Division, U.S. Attainment Date, Extensions of the add the new data elements on the paper Environmental Protection Agency, Mail Attainment Date and Reclassification manifest for BR integration. Should EPA Code C539–01, Research Triangle Park, of Several Areas Classified as expand Item 19 of the manifest to NC 27711; telephone number: (919) Moderate for the 2008 Ozone National include source code, form code, and 541–4383; fax number: (919) 541–5315; Ambient Air Quality Standards density information, or create separate email: [email protected]. new data fields for each? Are the AGENCY: Environmental Protection Please note that any updates made to additions of these elements to the Agency (EPA). any aspect of the hearing will be posted manifest sufficient enough to ensure ACTION: Notice of public hearing and online at https://www.epa.gov/ground- that waste receipt data can be collected reopening of public comment period. level-ozone-pollution/2008-ozone- in the e-Manifest system and ultimately national-ambient-air-quality-standards- used for biennial hazardous waste SUMMARY: On November 14, 2018, the naaqs-nonattainment. While the EPA reporting? If these additions are Environmental Protection Agency (EPA) expects the hearing to go forward as set insufficient for BR integration, what proposed a rule titled ‘‘Determinations forth under DATES, please monitor the other data entries must be recorded on of Attainment by the Attainment Date, website or contact Ms. Yvonne W. the manifest for Biennial Reporting Extensions of the Attainment Date and Johnson at (919) 541–3921 or purposes? Reclassification of Several Areas [email protected]. The EPA Classified as Moderate for the 2008 does not intend to publish a document EPA will consider the comments Ozone National Ambient Air Quality in the Federal Register announcing received and amend the ICR as Standards,’’ which allowed for a 30-day updates. appropriate. The final ICR package will public review and comment period that SUPPLEMENTARY INFORMATION: On then be submitted to OMB for review closed on December 14, 2018. In the and approval. At that time, EPA will November 14, 2018, the EPA proposed proposal, the EPA offered to hold a to make determinations for eleven areas issue another Federal Register notice to public hearing if one was requested by announce the submission of the ICR to classified as Moderate nonattainment November 29, 2018. The EPA received for the 2008 ozone National Ambient OMB and the opportunity to submit multiple requests for a public hearing, additional comments to OMB. Air Quality Standards (NAAQS) and and, therefore, is announcing in this determine whether each area attained Form numbers: Form 8700–22 and notice details for a scheduled public the standards by the attainment date, 8700–22A. hearing. The hearing will provide the July 20, 2018 (see 83 FR 56781). The Respondents/affected entities: public with an opportunity to present EPA proposed to determine attainment Business or other for-profit. oral testimony on the proposal. In by the attainment date, grant attainment addition, the EPA is reopening the date extensions, or identify areas that Respondent’s obligation to respond: public comment period on the proposed Mandatory (RCRA 3002(a)(5)). will be reclassified, by operation of law, rule. The additional comment period from Moderate to Serious nonattainment Estimated number of respondents: will ensure the public has sufficient for failure to attain the standards. The 203,927. time to comment on the proceedings of EPA also proposed new State Frequency of response: Each the public hearing and the proposal. Implementation Plan (SIP) due dates for shipment. DATES: The public hearing will be held the seven areas that failed to attain the on Friday, February 15, 2019, from 9 Total estimated burden: 2,608,292 standards by the attainment date. In its a.m. until 5 p.m. Eastern Standard Time hours per year. Burden is defined at 5 proposal, the EPA offered to hold a (EST). The public comment period for CFR 1320.03(b). public hearing to hear public testimony the proposal will reopen beginning on on the proposal if one was requested by Total estimated cost: $131,925,993 the date this notice is published in the November 29, 2018. The EPA received (per year), includes $38,784,093 Federal Register and will close 7 days multiple requests for a public hearing annualized capital and operation & following the public hearing, on that are posted in the docket for the maintenance costs. February 22, 2019. rulemaking (EPA–HQ–OAR–2018– Changes in estimates: The burden ADDRESSES: The public hearing will be 0226). hours are likely to increase but not held at the William Jefferson Clinton Testifying at the Public Hearing. If substantially, if EPA adopts the East Building, 1301 Constitution you would like to present oral testimony proposed manifest modifications Avenue NW, Washington, DC 20004, in at the public hearing, please register by detailed above in the SUPPLEMENTARY Room 1153. Individuals planning to contacting Ms. Yvonne W. Johnson at INFORMATION section. attend or testify at the hearing should be (919) 541–3921 or johnson.yvonnew@ prepared to show valid picture epa.gov. The hearing schedule, Dated: December 11, 2018. identification, such as a driver’s license, including the list of speakers, periodic Barnes Johnson, to the security staff to gain access to the breaks in the testimony throughout the Director, Office of Resource Conservation and meeting room (see under day, and a lunch hour will be posted Recovery. SUPPLEMENTARY INFORMATION the prior to the hearing on the EPA’s [FR Doc. 2019–01538 Filed 2–7–19; 8:45 am] subsection, ‘‘Identification website at https://www.epa.gov/ground- BILLING CODE 6560–50–P Requirements Under the REAL ID Act’’). level-ozone-pollution/2008-ozone-
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national-ambient-air-quality-standards- accompanied by a written comment. For Dated: February 4, 2019. naaqs-nonattainment. The EPA will additional submission methods, the full Panagiotis Tsirigotis, make every effort to follow the schedule EPA public comment policy, Director, Office of Air Quality Planning and as closely as possible on the day of the information about CBI or multimedia Standards. hearing by limiting each testimony to 5 submissions, and general guidance on [FR Doc. 2019–01562 Filed 2–7–19; 8:45 am] minutes. The EPA will make every effort making effective comments, please visit BILLING CODE 6560–50–P to accommodate all individuals https://www2.epa.gov/dockets/ interested in providing oral testimony at commenting-epa-dockets. the hearing. The EPA will not respond ENVIRONMENTAL PROTECTION How to obtain copies of this to presentations at the hearing. AGENCY However, the EPA may ask clarifying document and other related questions during oral testimony. The information. The EPA has established a [EPA–R07–OW–2018–0565; FRL–9988–85– hearing will end at 5:00 p.m. EST or 2 docket for this action—EPA–HQ–OAR– Region 7] hours after the end of testimony from 2018–0226—and an index of the contents of the docket can be accessed Notice of Approval of the Primacy the last registered speaker, whichever is Revision Application for the Public earlier. A verbatim transcript of the at https://www.regulations.gov. The EPA has also made available information Water System Supervision Program hearing will be included in the docket From the State of Kansas for the rulemaking. related to the proposed rule on the Instructions to Provide a Copy of following website: https://www.epa.gov/ AGENCY: Environmental Protection Testimony Prior to the Hearing. The ground-level-ozone-pollution/2008- Agency (EPA). EPA encourages those planning to ozone-national-ambient-air-quality- ACTION: Notice of approval and present oral testimony at the hearing to standards-naaqs-nonattainment. solicitation of requests for a public provide the EPA with a copy of their Identification requirements under the hearing. testimony electronically, i.e., via email REAL ID Act. Individuals possessing a or in hard copy form. You may provide driver’s license from states and SUMMARY: The Environmental Protection a copy of the oral testimony to Ms. territories that do not comply with the Agency (EPA) is hereby giving notice Yvonne W. Johnson at REAL ID Act will not be accepted as that the state of Kansas is revising its [email protected], or you may identification to allow entrance into the approved Public Water System contact Ms. Virginia Raps at Federal building in which the hearing Supervision Program delegated to the [email protected]. will be held. The REAL ID Act, passed Kansas Department of Health and Instructions for Submitting Comments Environment. EPA has reviewed the During the Reopened Comment Period. by Congress in 2005, established new requirements for entering federal application and intends to approve Comments on the proceedings of the these program revisions. public hearing may be submitted to the facilities. These requirements took effect DATES: This determination to approve EPA until the end of the reopened on July 21, 2014. Acceptable alternative the Kansas program revision is made comment period, February 22, 2019, forms of identification include: pursuant to 40 CFR 142.12(d)(3). This which is seven days following the Passports, enhanced driver’s licenses, determination shall become final and scheduled hearing date. When military identification cards and Federal effective on March 11, 2019, unless (1) submitting your comments during the employee badges. For additional a timely and appropriate request for a reopened comment period, identify your information for the status of your state public hearing is received or (2) the comments by noting the docket regarding the REAL ID Act, go to https:// Regional Administrator elects to hold a identification—EPA–HQ–OAR–2018– www.dhs.gov/real-id. For additional 0226—and include discussion of all information on building access and public hearing on his own motion. Any points you wish to make. The EPA will alternative forms of identification, go to interested person, other than Federal generally not consider comments https://www.epa.gov/aboutepa/visiting- Agencies, may request a public hearing. located outside your primary epa-headquarters. A request for a public hearing must be submitted to the Regional Administrator submission (e.g., on the Web, Cloud, or Docket Access. All available other file sharing system). Follow the at the address shown below by March documents are listed in the docket 11, 2019. If a request for a public online instructions to post your index at https://www.regulations.gov. comment to the federal eRulemaking hearing is made within the requested Although listed in the index, some Portal: https://www.regulations.gov. thirty-day time frame, a public hearing information is not publicly available, Your written comment, as submitted will be held and a notice will be given e.g., CBI or other information for which online, is considered the official in the Federal Register and a newspaper comment, and your comment cannot be disclosure is restricted by statute. of general circulation. Frivolous or edited or withdrawn after submission. Certain other material, such as insubstantial requests for a hearing may Written statements and supporting copyrighted material, will be publicly be denied by the Regional information submitted during the available only in hard copy. Publicly Administrator. If no timely and reopened comment period will be available docket materials are available appropriate request for a hearing is considered with the same weight as any electronically in https:// received, and the Regional oral testimony or supporting www.regulations.gov or in hard copy at Administrator does not elect to hold a information presented at the public the EPA Docket Center Reading Room, hearing on his own motion, this hearing. The EPA may publish any William Jefferson Clinton Building, determination will become effective on comment received to its public docket. 1301 Constitution Avenue NW, March 11, 2019. Do not submit electronically any Washington, DC 20004. The Public All interested parties may request a information you consider to be Reading Room is open from 8:30 a.m. to public hearing on the approval to the Confidential Business Information (CBI) 4:30 p.m. EST, Monday through Friday, Regional Administrator at the EPA or other information whose disclosure is excluding federal holidays. The phone Region 7 address shown below. restricted by statute. Multimedia number for the Public Reading Room is ADDRESSES: Any request for a public submissions (audio, video, etc.) must be (202) 566–1744. hearing shall include the following
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information: (1) Name, address and Kansas continues to meet all EIS No. 20190004, Final, NMFS, OR, telephone number of the individual, requirements for primary enforcement Final Environmental Impact organization or other entity requesting a responsibility as specified in 40 CFR Statement to Analyze Impacts of hearing; (2) a brief statement of the 142.10. Therefore, EPA intends to NOAA’s National Marine Fisheries requesting person’s interest in the approve these program revisions. Service Proposed Approval of Regional Administrator’s determination (Authority: Section 1413 of the Safe Drinking Hatchery and Genetic Management and a brief statement on information Water Act, as amended, and 40 CFR 142.10, Plans for spring Chinook salmon, that the requesting person intends to 142.12(d) and 142.13) steelhead, and rainbow trout in the submit at such hearing; (3) the signature Dated: December 18, 2018. Upper Willamette River Basin of the individual making the request or, Pursuant to Section 7 and 4(d) of the James B. Gulliford, if the request is made on behalf of an Endangered Species Act, Review organization or other entity, the Regional Administrator, Region 7. Period Ends: 03/11/2019, Contact: signature of a responsible official of the [FR Doc. 2019–01551 Filed 2–7–19; 8:45 am] Lance Kruzic 541–957–3381 organization or other entity. Requests BILLING CODE 6560–50–P EIS No. 20190005, Draft, USACE, CA, for Public Hearing shall be addressed to: Prado Basin Ecosystem Restoration Regional Administrator, Environmental ENVIRONMENTAL PROTECTION and Water Conservation Study, Protection Agency, Region 7, 11201 AGENCY Comment Period Ends: 03/27/2019, Renner Boulevard, Lenexa, Kansas Contact: Megan Wong 213–448–4517 66219. [ER–FRL–9043–3] All documents relating to this Amended Notices determination are available for Environmental Impact Statements; EIS No. 20180244, Draft, USFS, CA, inspection between the hours of 9:00 Notice of Availability Plumas National Forest Over-Snow a.m. and 3:00 p.m., Monday through Responsible Agency: Office of Federal Vehicle (OSV) Use Designation, Friday at the following offices: (1) Activities, General Information 202– Comment Period Ends: 03/01/2019, Environmental Protection Agency, 564–5632 or https://www.epa.gov/ Contact: Katherine Carpenter 530– Region 7, Drinking Water Management nepa/. 283–7742, Revision to FR Notice Branch, Water Wetlands and Pesticides Published 12/07/2019; Extending the Weekly receipt of Environmental Impact Division, 11201 Renner Boulevard, Comment Period from 01/24/2019 to Lenexa, Kansas 66219 and (2) the Statements Filed 01/28/2019 Through 02/01/2019 03/01/2019. Kansas Department of Health and Pursuant to 40 CFR 1506.9. EIS No. 20180260, Draft Supplement, Environment Natural Resources, Public USFS, ND, Northern Great Plains Water Supply Section, Bureau of Water, Notice Management Plans Revision (Dakota Curtis State Office Building, 1000 SW Section 309(a) of the Clean Air Act Prairie Oil and Gas RFDS SEIS), Jackson, Suite 420, Topeka, Kansas requires that EPA make public its Comment Period Ends: 02/20/2019, 66612. comments on EISs issued by other Contact: Leslie Ferguson 701–989– FOR FURTHER INFORMATION CONTACT: Federal agencies. EPA’s comment letters 7308, Revision to FR Notice Published Douglas J. Brune, Environmental on EISs are available at: https:// 12/14/2018; Extending Comment Protection Agency, Region 7, Drinking cdxnodengn.epa.gov/cdx-enepa-public/ Period from 01/16/2019 to 02/20/ Water Management Branch, (913) 551– action/eis/search. 2019. 7178, or by email at brune.doug@ EIS No. 20180315, Final, USFWS, NE, EIS No. 20180289, Draft, USFS, AZ, epa.gov. Issuance of an Incidental Take Permit Fossil Creek Wild and Scenic River SUPPLEMENTARY INFORMATION: The EPA and Implementation of a Habitat Comprehensive River Management is hereby giving notice that the state of Conservation Plan for the R-Project Plan, Comment Period Ends: 04/04/ Kansas is revising its approved Public Transmission Line, Review Period 2019, Contact: Marcos Roybal 928– Water System Supervision Program Ends: 03/11/2019, Contact: Drue 203–2915, Revision to FR Notice delegated to the Kansas Department of DeBerry 303–236–4774 Published 11/30/2018; Extending the Health and Environment. The Kansas EIS No. 20190001, Final, DOE, LA, Comment Period from 02/28/2019 to Department of Health and Environment ADOPTION—Driftwood LNG Project, 04/04/2019. revised their program by incorporating Contact: Brian Lavoie 202–586–2459 EIS No. 20180292, Draft, RUS, WI, the following EPA National Primary The Department of Energy (DOE) has Cardinal-Hickory Creek 345-kV Drinking Water Regulation: Stage 2 adopted the Federal Energy Regulatory Transmission Line Project, Comment Disinfectants and Disinfection Commission’s Final EIS No. 20180331, Period Ends: 04/01/2019, Contact: Byproducts Rule (Vol. 71, No. 2, Jan. 4, filed 01/18/2019 with the EPA. DOE Dennis Rankin 202–720–1953, 2006, Pages 387–493), Long Term 2 was a cooperating agency on this Revision to FR Notice Published 12/ Enhanced Surface Water Treatment Rule project. Therefore, recirculation of the 07/2018; Extending the Comment (Vol. 71, No. 3, Jan. 5, 2006, Pages 653– document is not necessary under Period from 02/05/2019 to 04/01/ 786), Ground Water Rule (Vol. 71, No. Section 1506.3(c) of the CEQ 2019. 216, Nov. 8, 2006, Pages 65573–65660), regulations. EIS No. 20180304, Draft, VA, CA, Draft Lead and Copper Rule: Short-Term EIS No. 20190002, Final, HUD, VA, Programmatic Environmental Impact Regulatory Revisions and Clarifications Ohio Creek Watershed Project, Statement and National Historic (Vol. 72, No. 195, Oct. 10, 2007, Pages Review Period Ends: 03/11/2019, Preservation Act Section 106 57781–57820), and Revised Total Contact: Kerry Johnson 804–822–4803 Consultation West Los Angeles Coliform Rule (Vol. 78, No. 30, Feb. 13, EIS No. 20190003, Final, FERC, LA, Port Medical Center Campus Proposed 2013, Pages 10269–10365). EPA has Arthur Liquefaction Project, Texas Master Plan for Improvements and reviewed the application and Connector Project, and Louisiana Reconfiguration, Comment Period determined that the revisions are no less Connector Project, Review Period Ends: 02/13/2019, Contact: Glenn stringent than the corresponding Ends: 03/11/2019, Contact: Office of Elliott 202–632–5879, Revision to FR Federal regulations and that the state of External Affairs 866–208–3372 Notice Published 12/14/2018;
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Extending the Comment Period from to premanufacture notices (PMNs), statements of findings made by EPA 01/26/2019 to 02/13/2019. microbial commercial activity notices during the period from September 1, EIS No. 20180307, Draft, USFS, OR, (MCANs), and significant new use 2018 to September 30, 2018. notices (SNUNs) submitted to EPA Black Mountain Vegetation III. What is the Agency’s authority for under TSCA section 5. This document Management Project, Comment Period taking this action? Ends: 02/28/2019, Contact: Elysia presents statements of findings made by Retzlaff 541–416–6436, Revision to EPA on TSCA section 5(a) notices TSCA section 5(a)(3) requires EPA to FR Notice Published 12/14/2018; during the period from September 1, review a TSCA section 5(a) notice and Extending the Comment Period from 2018 to September 30, 2018. make one of the following specific 01/28/2019 to 02/28/2019. FOR FURTHER INFORMATION CONTACT: findings: • The chemical substance or EIS No. 20180316, Draft Supplement, For technical information contact: Greg Schweer, Chemical Control significant new use presents an USFS, SC, AP Loblolly Pine Removal unreasonable risk of injury to health or and Restoration Project, Comment Division (7405M), Office of Pollution Prevention and Toxics, Environmental the environment; Period Ends: 02/25/2019, Contact: • The information available to EPA is Victor Wyant 864–638–9568, Revision Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460–0001; insufficient to permit a reasoned to FR Notice Published 12/21/2018; evaluation of the health and Extending the Comment Period from telephone number: 202–564–8469; email address: [email protected]. environmental effects of the chemical 02/04/2019 to 02/25/2019. substance or significant new use; For general information contact: The • EIS No. 20180322, Draft, APHIS, PRO, TSCA-Hotline, ABVI-Goodwill, 422 The information available to EPA is Rangeland Grasshopper and Mormon South Clinton Ave., Rochester, NY insufficient to permit a reasoned Cricket Suppression Program, 14620; telephone number: (202) 554– evaluation of the health and Comment Period Ends: 03/11/2019, 1404; email address: TSCA-Hotline@ environmental effects and the chemical Contact: Jim Warren 202–316–3216, epa.gov. substance or significant new use may Revision to FR Notice Published present an unreasonable risk of injury to 12/28/2018; Extending the Comment SUPPLEMENTARY INFORMATION: health or the environment; • Period from 02/11/2019 to I. General Information The chemical substance is or will 03/18/2019. be produced in substantial quantities, A. Does this action apply to me? EIS No. 20180323, Draft Supplement, and such substance either enters or may DOE, KY, Disposition of Depleted This action is directed to the public reasonably be anticipated to enter the Uranium Oxide Conversion Product in general. As such, the Agency has not environment in substantial quantities or Generated from DOE’s Inventory of attempted to describe the specific there is or may be significant or Depleted Uranium Hexafluoride, entities that this action may apply to. substantial human exposure to the Although others may be affected, this substance; or Comment Period Ends: 03/04/2019, • Contact: Jaffet Ferrer-Torres 202–586– action applies directly to the submitters The chemical substance or 0730, Revision to FR Notice Published of the PMNs addressed in this action. significant new use is not likely to present an unreasonable risk of injury to 12/28/2018; Extending the Comment B. How can I get copies of this document Period from 02/11/2019 to health or the environment. and other related information? Unreasonable risk findings must be 03/04/2019. The docket for this action, identified made without consideration of costs or Dated: February 5, 2019. by docket identification (ID) number other non-risk factors, including an Robert Tomiak, EPA–HQ–OPPT–2018–0097, is available unreasonable risk to a potentially Director, Office of Federal Activities. at http://www.regulations.gov or at the exposed or susceptible subpopulation [FR Doc. 2019–01638 Filed 2–7–19; 8:45 am] Office of Pollution Prevention and identified as relevant under the BILLING CODE 6560–50–P Toxics Docket (OPPT Docket), conditions of use. The term ‘‘conditions Environmental Protection Agency of use’’ is defined in TSCA section 3 to Docket Center (EPA/DC), West William mean ‘‘the circumstances, as determined ENVIRONMENTAL PROTECTION Jefferson Clinton Bldg., Rm. 3334, 1301 by the Administrator, under which a AGENCY Constitution Ave. NW, Washington, DC. chemical substance is intended, known, The Public Reading Room is open from or reasonably foreseen to be [EPA–HQ–OPPT–2018–0097; FRL–9986–72] 8:30 a.m. to 4:30 p.m., Monday through manufactured, processed, distributed in Certain New Chemicals or Significant Friday, excluding legal holidays. The commerce, used, or disposed of.’’ New Uses; Statements of Findings for telephone number for the Public EPA is required under TSCA section September 2018 Reading Room is (202) 566–1744, and 5(g) to publish in the Federal Register the telephone number for the OPPT a statement of its findings after its AGENCY: Environmental Protection Docket is (202) 566–0280. Please review review of a TSCA section 5(a) notice Agency (EPA). the visitor instructions and additional when EPA makes a finding that a new ACTION: Notice. information about the docket available chemical substance or significant new at http://www.epa.gov/dockets. use is not likely to present an SUMMARY: Section 5(g) of the Toxic unreasonable risk of injury to health or Substances Control Act (TSCA) requires II. What action is the Agency taking? the environment. Such statements apply EPA to publish in the Federal Register This document lists the statements of to PMNs, MCANs, and SNUNs a statement of its findings after its findings made by EPA after review of submitted to EPA under TSCA section review of TSCA section 5(a) notices notices submitted under TSCA section 5. when EPA makes a finding that a new 5(a) that certain new chemical Anyone who plans to manufacture chemical substance or significant new substances or significant new uses are (which includes import) a new chemical use is not likely to present an not likely to present an unreasonable substance for a non-exempt commercial unreasonable risk of injury to health or risk of injury to health or the purpose and any manufacturer or the environment. Such statements apply environment. This document presents processor wishing to engage in a use of
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a chemical substance designated by EPA (alkenediyl)bis[[[(hydroxyalkyl)amino]- the ICR, which is currently approved as a significant new use must submit a (phenylamino)-triazin-2-yl]amino]-, through July 31, 2019. An Agency may notice to EPA at least 90 days before N-(hydroxyalkyl) derivs., salts (generic not conduct or sponsor and a person is commencing manufacture of the new name); website link: https:// not required to respond to a collection chemical substance or before engaging www.epa.gov/reviewing-new-chemicals- of information unless it displays a in the significant new use. under-toxic-substances-control-act-tsca/ currently valid OMB control number. The submitter of a notice to EPA for tsca-section-5a3c-determination-98. DATES: Comments must be submitted on which EPA has made a finding of ‘‘not EPA Case Number: J–18–0028 to or before April 9, 2019. likely to present an unreasonable risk of 0030; Chemical Identity: Saccharomyces ADDRESSES: Submit your comments, injury to health or the environment’’ cerevisiae, modified (generic name); referencing Docket ID No. EPA–HQ– may commence manufacture of the website link: https://www.epa.gov/ SFUND–2012–0104 online using chemical substance or manufacture or reviewing-new-chemicals-under-toxic- www.regulations.gov (our preferred processing for the significant new use substances-control-act-tsca/tsca-section- method), by email to docket.superfund@ notwithstanding any remaining portion 5a3c-determination-97. epa.gov or by mail to: EPA Docket of the applicable review period. EPA Case Number: P–16–0532; Center, Environmental Protection Chemical Identity: Substituted IV. Statements of Administrator Agency, Mail Code 28221T, 1200 heteromonocycle (generic name); Findings Under TSCA Section 5(a)(3)(C) Pennsylvania Ave. NW, Washington, DC website link: https://www.epa.gov/ 20460. In this unit, EPA provides the reviewing-new-chemicals-under-toxic- EPA’s policy is that all comments following information (to the extent that substances-control-act-tsca/tsca-section- received will be included in the public such information is not claimed as 5a3c-determination-96. docket without change including any Confidential Business Information EPA Case Number: J–18–0004 to personal information provided, unless (CBI)) on the PMNs, MCANs and 0009; Chemical Identity: Biofuel- the comment includes profanity, threats, SNUNs for which, during this period, Baproducing modified microorganisms, information claimed to be Confidential EPA has made findings under TSCA with chromosomally-borne Business Information (CBI) or other section 5(a)(3)(C) that the new chemical modifications (generic name); website information whose disclosure is substances or significant new uses are link: https://www.epa.gov/reviewing- restricted by statute. not likely to present an unreasonable new-chemicals-under-toxic-substances- FOR FURTHER INFORMATION CONTACT: risk of injury to health or the control-act-tsca/tsca-section-5a3c- Kelly Gorini, Office of Brownfields and environment: determination-95. Land Revitalization, (5105T), • EPA case number assigned to the Environmental Protection Agency, 1200 TSCA section 5(a) notice. Authority: 15 U.S.C. 2601 et seq. • Chemical identity (generic name, if Dated: December 18, 2018. Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 566– the specific name is claimed as CBI). Greg Schweer, • Website link to EPA’s decision 1702; fax number: (202) 566–1476; Chief, New Chemicals Management Branch, email address: [email protected] document describing the basis of the Chemical Control Division, Office of Pollution ‘‘not likely to present an unreasonable Prevention and Toxics. SUPPLEMENTARY INFORMATION: risk’’ finding made by EPA under TSCA [FR Doc. 2019–01535 Filed 2–7–19; 8:45 am] Supporting documents which explain in detail the information that the EPA will section 5(a)(3)(C). BILLING CODE 6560–50–P EPA Case Number: P–18–0231; be collecting are available in the public Chemical Identity: Alkanoic acid, docket for this ICR. The docket can be substituted alkyl-, polymer with ENVIRONMENTAL PROTECTION viewed online at www.regulations.gov isocyanatoalkane, alkyl carbonate, AGENCY or in person at the EPA Docket Center, alkanediol and polyalkylene glycol WJC West, Room 3334, 1301 ether with alkyl (substituted alkyl) [EPA–HQ–SFUND–2012–0104; FRL–9988– Constitution Ave. NW, Washington, DC. 97–OLEM] alkanediol alkenoate, glycerol The telephone number for the Docket monoacrylate alkanoate-blocked Proposed Information Collection Center is 202–566–1744. For additional (generic name); website link: https:// Request; Comment Request; information about EPA’s public docket, www.epa.gov/reviewing-new-chemicals- Brownfields Program— visit http://www.epa.gov/dockets. Pursuant to section 3506(c)(2)(A) of under-toxic-substances-control-act-tsca/ Accomplishment Reporting (Renewal) tsca-section-5a3c-determination-101. the PRA, EPA is soliciting comments EPA Case Number: J–18–0022 to AGENCY: Environmental Protection and information to enable it to: (i) 0025; Chemical Identity: Modified Agency (EPA). Evaluate whether the proposed Saccharomyces cerevisiae (generic ACTION: Notice. collection of information is necessary name); website link: https:// for the proper performance of the www.epa.gov/reviewing-new-chemicals- SUMMARY: The Environmental Protection functions of the Agency, including under-toxic-substances-control-act-tsca/ Agency is planning to submit an whether the information will have tsca-section-5a3c-determination-100. information collection request (ICR), practical utility; (ii) evaluate the EPA Case Number: P–18–0230; ‘‘Brownfields Program— accuracy of the Agency’s estimate of the Chemical Identity: Waxes and waxy Accomplishment Reporting (Renewal)’’ burden of the proposed collection of substances, rice bran, oxidized, calcium (EPA ICR No. 2104.07, OMB Control No. information, including the validity of salts (CASRN 1850357–57–1); website 2050–0192 to the Office of Management the methodology and assumptions used; link: https://www.epa.gov/reviewing- and Budget (OMB) for review and (iii) enhance the quality, utility, and new-chemicals-under-toxic-substances- approval in accordance with the clarity of the information to be control-act-tsca/tsca-section-5a3c- Paperwork Reduction Act. Before doing collected; and (iv) minimize the burden determination-99. so, EPA is soliciting public comments of the collection of information on those EPA Case Number: P–17–0332; on specific aspects of the proposed who are to respond, including through Chemical Identity: Benzenesulfonic information collection as described the use of appropriate automated acid, below. This is a proposed extension of electronic, mechanical, or other
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technological collection techniques or agreements to establish and enhance the program lead to a lower burden per other forms of information technology, their response programs through the individual entry. e.g., permitting electronic submission of four elements and meet the public Dated: December 19, 2018. responses. EPA will consider the record requirements under the statute. David R. Lloyd, comments received and amend the ICR Cooperative agreement recipients as appropriate. The final ICR package Director, Office of Brownfields and Land (‘‘recipients’’) have general reporting Revitalization. will then be submitted to OMB for and record keeping requirements as a review and approval. At that time, EPA condition of their cooperative agreement [FR Doc. 2019–01539 Filed 2–7–19; 8:45 am] will issue another Federal Register that result in burden. A portion of this BILLING CODE 6560–50–P notice to announce the submission of reporting and record keeping burden is the ICR to OMB and the opportunity to authorized under 2 CFR part 1500 and submit additional comments to OMB. identified in the EPA’s general grants FEDERAL COMMUNICATIONS Abstract: This ICR covers the ICR (OMB Control Number 2030–0020). COMMISSION collection of information from those EPA requires Brownfields program [CG Docket No. 18–307; DA 18–1196] organizations that receive cooperative recipients to maintain and report agreements from EPA under the additional information to EPA on the Waivers of Wireline Telephone Volume authority of the Comprehensive uses and accomplishments associated Control Reset Rules Environmental Response, with funded brownfields activities. EPA Compensation, and Liability Act uses several forms to assist recipients in AGENCY: Federal Communications (CERCLA) as amended by the reporting the information and to ensure Commission. Brownfields Utilization, Investment, consistency of the information ACTION: Notice. and Local Development (BUILD) Act collected. EPA uses this information to (Pub. L. 115–141). CERCLA, as meet Federal stewardship SUMMARY: In this document, the amended, authorizes EPA to award responsibilities to manage and track Consumer and Governmental Affairs grants or cooperative agreements to how program funds are being spent, to Bureau announces a new docket and states, tribes, local governments, and evaluate the performance of the modified filing procedures for other eligible entities to support the Brownfields Cleanup and Land requesting waiver of the volume control assessment and cleanup of brownfields Revitalization Program, to meet the reset requirements for wireline sites. Under the Brownfields Agency’s reporting requirements under telephones. Amendments, a brownfields site means the Government Performance Results DATES: The modified filing procedures real property, the expansion, Act, and to report to Congress and other redevelopment, or reuse of which may are effective February 8, 2019. program stakeholders on the status and FOR FURTHER INFORMATION CONTACT: be complicated by the presence or accomplishments of the program. potential presence of a hazardous Suzy Rosen Singleton, Disability Rights Form numbers: EPA ICR No. 2104.06, Office, Consumer and Governmental substance, pollutant, or contaminant. OMB Control No. 2050–0192. For funding purposes, EPA uses the Affairs Bureau, at (202) 510–9446 or by Respondents/affected entities: State/ term ‘‘brownfields property(ies)’’ email at [email protected]. local/tribal governments; Non-Profits. synonymously with the term SUPPLEMENTARY INFORMATION: The full Respondent’s obligation to respond: ‘‘brownfields sites.’’ The Brownfields text of document DA 18–1196, released Required to obtain or Retain Benefits (2 Amendments authorize EPA to award on November 27, 2018, including filing CFR part 1500). several types of cooperative agreements instructions for volume control reset Estimated number of respondents: to eligible entities on a competitive waiver requests, and copies of any 5,517 (total). basis. subsequently filed documents in this Frequency of response: Bi-annual for Under subtitle A of the Small matter will be available for public subtitle C recipients; quarterly for Business Liability Relief and inspection and copying via ECFS at subtitle A recipients. Brownfields Revitalization Act, states, https://www.fcc.gov/ecfs/ and during tribes, local governments, and other Total estimated burden: 6,144 hours regular business hours at the FCC eligible entities can receive assessment (per year). Burden is defined at 5 CFR Reference Information Center, Portals II, cooperative agreements to inventory, 1320.03(b). 445 12th Street SW, Room CY–A257, characterize, assess, and conduct Total estimated cost: $712,108 (per Washington, DC 20554. Document DA planning and community involvement year), includes $0 annualized capital or 18–1196 can also be downloaded in related to brownfields properties; operation & maintenance costs. Word and Portable Document Format cleanup cooperative agreements to carry Changes in estimates: There is an (PDF) at https://www.fcc.gov/general/ out cleanup activities at brownfields increase of 2,267 hours in the total disability-rights-office-headlines. properties; multipurpose cooperative estimated respondent burden compared To request materials in accessible agreements to conduct activities with the ICR currently approved by formats for people with disabilities allowed under both assessment and OMB. This increase is partially the (Braille, large print, electronic files, cleanup cooperative agreements; result of adding the new Program audio format), send an email to fcc504@ cooperative agreements to capitalize Activity Levels Form for 128(a) fcc.gov, or call the Consumer and revolving loan funds and provide recipients to fill out annually. The Governmental Affairs Bureau at (202) subgrants for cleanup activities; area- remainder of the burden increase is the 418–0530 (voice) or (202) 418–0432 wide planning cooperative agreements result of an overall increase in wages (TTY). to develop revitalization plans for and the large increase in the number of brownfields; and environmental responses submitted to ACRES annually Federal Communications Commission. workforce and development job training as a result of more grants being Suzy Rosen Singleton, and placement programs. Under subtitle awarded. Even with this increase, Chief, Disability Rights Office, Consumer and C of the Small Business Liability Relief respondents indicated that Governmental Affairs Bureau. and Brownfields Revitalization Act, improvements in the ACRES reporting [FR Doc. 2019–01552 Filed 2–7–19; 8:45 am] states and tribes can receive cooperative system and increased familiarity with BILLING CODE 6712–01–P
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FEDERAL COMMUNICATIONS Title: Section 64.201, Regulations and those who solicit their services, to COMMISSION Concerning Indecent Communications ensure that minors and anyone who has by Telephone. not consented to access such material [OMB 3060–0439, 3060–0665, 3060–0973 Form Number: N/A. are denied access to such material in and 3060–1190] Type of Review: Extension of a adult message services. currently approved collection. OMB Control Number: 3060–0665. Information Collections Being Respondents: Business or other for- Title: Section 64.707, Public Reviewed by the Federal profit entities; Individuals or Dissemination of Information by Communications Commission Under households. Providers of Operator Services. Delegated Authority Number of Respondents and Form Number: N/A. Responses: 10,200 respondents; 30,000 AGENCY: Federal Communications Type of Review: Extension of a responses. currently approved collection. Commission. Estimated Time per Response: .166 Respondents: Business or other for- ACTION: Notice and request for hours (10 minutes average per profit entities. comments. response). Frequency of Response: On occasion Number of Respondents and SUMMARY: As part of its continuing effort reporting requirements; Third party Responses: 448 respondents; 448 to reduce paperwork burdens, and as disclosure. responses. required by the Paperwork Reduction Obligation to Respond: Required to Estimated Time per Response: 4 hours Act (PRA) of 1995, the Federal obtain or retain benefits. The statutory (average per response). Communications Commission (FCC or authority for the information collection Frequency of Response: On occasion Commission) invites the general public requirements is found at Section 223 of reporting requirements; Third party and other Federal agencies to take this the Communications Act of 1934, as disclosure. opportunity to comment on the amended (the Act), 47 U.S.C. 223, Obligation to Respond: Required to following information collections. Obscene or Harassing Telephone Calls obtain or retain benefits. The statutory Comments are requested concerning: in the District of Columbia or in authority citation for the information Whether the proposed collection of Interstate or Foreign Communications. collection requirements is found at information is necessary for the proper Total Annual Burden: 4,980 hours. Section 226 of the Act, 47 U.S.C. 226. performance of the functions of the Total Annual Cost: None. Total Annual Burden: 1,792 hours. Commission, including whether the Nature and Extent of Confidentiality: Total Annual Cost: $44,800. information shall have practical utility; Confidentiality is an issue to the extent Nature and Extent of Confidentiality: the accuracy of the Commission’s that individuals and households An assurance of confidentiality is not burden estimate; ways to enhance the provide personally identifiable offered because this information quality, utility, and clarity of the information, which is covered under the collection does not require the information collected; ways to minimize FCC’s updated system of records notice collection of personally identifiable the burden of the collection of (SORN), FCC/CGB–1, ‘‘Informal information (PII) from individuals. information on the respondents, Complaints, Inquiries, and Request for Privacy Impact Assessment: No including the use of automated Dispute Assistance’’; published in the impact(s). collection techniques or other forms of Federal Register on August 15, 2014, at Needs and Uses: Pursuant to 47 CFR information technology; and ways to 79 FR 48152, and became effective on 64.707, providers of operator services further reduce the information September 24, 2014. must regularly publish and make collection burden on small business Privacy Impact Assessment: The FCC available at no cost to requesting concerns with fewer than 25 employees. completed a Privacy Impact Assessment consumers written materials that The FCC may not conduct or sponsor (PIA) on June 28, 2007. The PIA may be describe any recent changes in operator a collection of information unless it reviewed at https://www.fcc.gov/ services and choices available to displays a currently valid OMB control general/privacy-act-information. The consumers. Consumers use the number. No person shall be subject to FCC is in the process of updating the information to increase their knowledge any penalty for failing to comply with PIA to incorporate various revisions of the choices available to them in the a collection of information subject to the made to the SORN. operator services marketplace. PRA that does not display a valid OMB Needs and Uses: Under section 223 of OMB Control Number: 3060–0973. control number. the Act, common carriers are required, Title: Section 64.1120(e), Verification DATES: Written PRA comments should to the extent technically feasible, to of Orders for Telecommunications be submitted on or before April 9, 2019. prohibit access to obscene or indecent Service. If you anticipate that you will be communications from the telephone of Form Number: N/A. submitting comments, but find it a subscriber who has not previously Type of Review: Extension of a difficult to do so within the period of requested such access in writing, if the currently approved collection. time allowed by this notice, you should carrier collects charges from subscribers Respondents: Business or other for- advise the contact listed below as soon for such communications. 47 CFR profit entities. as possible. 64.201 implements section 223 of the Number of Respondents and Act, and also include the following Responses: 50 respondents; 150 ADDRESSES: Direct all PRA comments to Cathy Williams, FCC, via email PRA@ information collection requirements: (1) responses. fcc.gov and to [email protected]. Adult message service providers notify Estimated Time per Response: 1 to 5 their carriers in writing of the nature of hours (average per response). FOR FURTHER INFORMATION CONTACT: For their service; and (2) A provider of adult Frequency of Response: On occasion additional information about the message services request that its carriers reporting requirements; Third-party information collection, contact Cathy identify these services as such in bills disclosure requirement. Williams at (202) 418–2918. to their subscribers. The information Obligation to Respond: Required to SUPPLEMENTARY INFORMATION: requirements are imposed on carriers, obtain or retain benefits. The statutory OMB Control Number: 3060–0439. and on adult message service providers authority citation for the information
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collection requirements is found at Respondents: Business or other for- applicant to provide documentation as Section 258 of the Act, 47 U.S.C. 258. profit entities, not for profit institutions to this fact. Total Annual Burden: 350 hours. and state, local or tribal government. The written permissions will aid the Total Annual Cost: None. Number of Respondents and Commission in ensuring that licensees Nature and Extent of Confidentiality: Responses: 200 respondents; 200 are complying with its policies and An assurance of confidentiality is not responses. rules, while allowing the owners of offered because this information Estimated Time per Response: 1 hour. antenna structures and other aviation collection does not require the Frequency of Response: On-occasion obstacles to use Audio Visual Warning collection of personally identifiable reporting requirement and third party Systems (AVWS) stations, thereby information (PII) from individuals. disclosure requirement. helping aircraft avoid potential Total Annual Burden: 85 hours. Privacy Impact Assessment: No collisions and enhancing aviation impact(s). Annual Cost Burden: $28,750. Obligation to Respond: Require to safety, without causing harmful Needs and Uses: Pursuant to 47 CFR interference to other communications. 64.1120(e), a carrier acquiring all or part obtain or retain benefits. The statutory of another carrier’s subscriber base authority for this collection is contained Federal Communications Commission. without obtaining each subscriber’s in 47 U.S.C. 151, 154(i), 154(j), 155, 157, Katura Jackson, authorization and verification will file a 225, 303(r), and 309 of the Federal Register Liaison Officer, Office of the letter specifying certain information Communications Act of 1934, as Secretary. with the Commission, in advance of the amended. [FR Doc. 2019–01644 Filed 2–7–19; 8:45 am] Privacy Act Impact Assessment: No transfer, and it will also certify that the BILLING CODE 6712–01–P impact(s). carrier will comply with required Nature and Extent of Confidentiality: procedures, including giving advance There is no need for confidentiality with notice to the affected subscribers. this collection of information. These streamlined carrier change FEDERAL DEPOSIT INSURANCE Needs and Uses: The information CORPORATION rules balance the protection of collection requirements contained consumers’ interests with ensuring that under Section 87.287(b) require that the Commission’s rules do not Notice to All Interested Parties of before submitting an application for an Intent To Terminate Receiverships unnecessarily inhibit routine business aircraft data link land test station, an transactions. applicant must obtain written NOTICE IS HEREBY GIVEN that the OMB Control Number: 3060–1190. permission from the licensee of the Federal Deposit Insurance Corporation Title: Section 87.287(b), Aeronautical aeronautical enroute stations serving the (FDIC or Receiver), as Receiver for the Advisory Stations (Unicoms)— areas in which the aircraft data link land institutions listed below, intends to ‘‘Squitters.’’ test station will operate on a co-channel terminate its receivership for said Form No.: N/A. basis. The Commission may request an institutions.
NOTICE OF INTENT TO TERMINATE RECEIVERSHIPS
Date of Fund Receivership name City State appointment of receiver
10034 ...... County Bank ...... Merced ...... CA 02/06/2009 10042 ...... Heritage Community Bank ...... Glenwood ...... IL 02/27/2009 10044 ...... Freedom Bank Of Georgia ...... Commerce ...... GA 03/06/2009 10052 ...... American Sterling Bank ...... Sugar Creek ...... MO 04/17/2009 10094 ...... Mutual Bank ...... Harvey ...... IL 07/31/2009 10154 ...... Benchmark Bank ...... Aurora ...... IL 12/04/2009 10191 ...... Bank Of Illinois ...... Normal ...... IL 03/05/2010 10280 ...... Imperial Savings and Loan Association ...... Martinsville ...... VA 08/20/2010 10307 ...... First Vietnamese American Bank ...... Westminster ...... CA 11/05/2010 10332 ...... Evergreen State Bank ...... Stoughton ...... WI 01/28/2011 10501 ...... Valley Bank ...... Fort Lauderdale ...... FL 06/20/2014 10514 ...... Edgebrook Bank ...... Chicago ...... IL 05/08/2015
The liquidation of the assets for each wishes to comment concerning the receiverships will be considered which receivership has been completed. To the termination of any of the receiverships, are not sent within this time frame. extent permitted by available funds and such comment must be made in writing, Dated at Washington, DC, on February 4, in accordance with law, the Receiver identify the receivership to which the 2019. will be making a final dividend comment pertains, and be sent within Federal Deposit Insurance Corporation. payment to proven creditors. thirty days of the date of this notice to: Robert E. Feldman, Federal Deposit Insurance Corporation, Based upon the foregoing, the Executive Secretary. Receiver has determined that the Division of Resolutions and [FR Doc. 2019–01542 Filed 2–7–19; 8:45 am] continued existence of the receiverships Receiverships, Attention: Receivership will serve no useful purpose. Oversight Department 34.6, 1601 Bryan BILLING CODE 6714–01–P Consequently, notice is given that the Street, Dallas, TX 75201. receiverships shall be terminated, to be No comments concerning the effective no sooner than thirty days after termination of the above-mentioned the date of this notice. If any person
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FEDERAL RESERVE SYSTEM Holdings, Inc., Bingham Farms, electronically to Michigan, and thereby indirectly retain [email protected]: Change in Bank Control Notices; Main Street Bank, Bingham Farms, 1. Stifel Financial Corp., St. Louis, Acquisitions of Shares of a Bank or Michigan. Missouri; to retain voting shares of Stifel Bank Holding Company Board of Governors of the Federal Reserve Trust Company, National Association, System, February 5, 2019. St. Louis, Missouri, upon its conversion The notificants listed below have from a non-depository trust company to Yao-Chin Chao, applied under the Change in Bank a depository trust company that Control Act (‘‘Act’’) (12 U.S.C. 1817(j)) Assistant Secretary of the Board. qualifies as a limited purpose bank. and § 225.41 of the Board’s Regulation [FR Doc. 2019–01646 Filed 2–7–19; 8:45 am] Board of Governors of the Federal Reserve Y (12 CFR 225.41) to acquire shares of BILLING CODE P a bank or bank holding company. The System, February 5, 2019. factors that are considered in acting on Yao-Chin Chao, the notices are set forth in paragraph 7 FEDERAL RESERVE SYSTEM Assistant Secretary of the Board. of the Act (12 U.S.C. 1817(j)(7)). [FR Doc. 2019–01645 Filed 2–7–19; 8:45 am] The notices are available for Formations of, Acquisitions by, and BILLING CODE P immediate inspection at the Federal Mergers of Bank Holding Companies Reserve Bank indicated. The notices also will be available for inspection at The companies listed in this notice FEDERAL RESERVE SYSTEM the offices of the Board of Governors. have applied to the Board for approval, Interested persons may express their pursuant to the Bank Holding Company Privacy Act of 1974; System of views in writing to the Reserve Bank Act of 1956 (12 U.S.C. 1841 et seq.) Records (BHC Act), Regulation Y (12 CFR part indicated for that notice or to the offices AGENCY: 225), and all other applicable statutes Board of Governors of the of the Board of Governors. Comments Federal Reserve System. must be received not later than February and regulations to become a bank holding company and/or to acquire the ACTION: Notice of a new system of 26, 2019. records. A. Federal Reserve Bank of Chicago assets or the ownership of, control of, or (Colette A. Fried, Assistant Vice the power to vote shares of a bank or SUMMARY: Pursuant to the provisions of President) 230 South LaSalle Street, bank holding company and all of the the Privacy Act of 1974, notice is given Chicago, Illinois 60690–1414: banks and nonbanking companies that the Board of Governors of the 1. Heron Bay Partners, LLC, owned by the bank holding company, Federal Reserve System (Board) Bloomfield Hills, Michigan, with the Joel including the companies listed below. proposes the establishment of a new Marvin Dorfman Trust dated May 22, The applications listed below, as well system of records, BGFRS–42 ‘‘FRB— 2004, Bloomfield Hills, Michigan, and as other related filings required by the General File of the Insurance Policy Joel M. Dorfman, individually and as Board, are available for immediate Advisory Committee.’’ This system will trustee of the Joel Marvin Dorfman Trust inspection at the Federal Reserve Bank store information relevant for the dated May 22, 2004 serving as manager indicated. The applications will also be selection of individuals for membership of Heron Bay Partners, LLC, Bloomfield available for inspection at the offices of on the Insurance Policy Advisory Hills, Michigan, together with Carolyn the Board of Governors. Interested Commission (IPAC). The system will Dorfman, Short Hills, New Jersey, The persons may express their views in also store information to facilitate the Henry S. Dorfman Irrevocable Trust writing on the standards enumerated in Board’s operations of the IPAC, f/b/o Carolyn Dorfman, Short Hills, New the BHC Act (12 U.S.C. 1842(c)). If the including information necessary to pay Jersey, Gayle Weiss Revocable Trust proposal also involves the acquisition of IPAC members an honorarium for their dated August 3, 2010, Bloomfield Hills, a nonbanking company, the review also service. Michigan, Gayle Weiss, as trustee of the includes whether the acquisition of the DATES: Comments must be received on Gayle Weiss Revocable Trust dated nonbanking company complies with the or before March 11, 2019. This new August 3, 2010, Bloomfield Hills, standards in section 4 of the BHC Act system of records will become effective Michigan, The Henry S. Dorfman (12 U.S.C. 1843). Unless otherwise March 11, 2019, without further notice, Irrevocable Trust f/b/o Gayle Weiss, noted, nonbanking activities will be unless comments dictate otherwise. Bloomfield Hills, Michigan, Joel Marvin conducted throughout the United States. The Office of Management and Budget Dorfman Trust dated May 22, 2004, Unless otherwise noted, comments (OMB), which has oversight Bloomfield Hills, Michigan, Joel M. regarding each of these applications responsibility under the Privacy Act, Dorfman, as trustee of the Joel Marvin must be received at the Reserve Bank requires a 30-day period prior to Dorfman Trust dated May 22, 2004, indicated or the offices of the Board of publication in the Federal Register in Bloomfield Hills, Michigan, The Henry Governors not later than March 7, 2019. which to review the system and to S. Dorfman Irrevocable Trust f/b/o Joel A. Federal Reserve Bank of Richmond provide any comments to the agency. M. Dorfman, Bloomfield Hills, Michigan, (Adam M. Drimer, Assistant Vice The public is then given a 30-day period the H.S. Dorfman GST Trust, Bloomfield President) 701 East Byrd Street, in which to comment, in accordance Hills, Michigan, Mala Dorfman, as Richmond, Virginia 23219. Comments with 5 U.S.C. 552a(e)(4) and (11). trustee of the H.S. Dorfman GST Trust, can also be sent electronically to or ADDRESSES: You may submit comments, Bal Harbour, Florida, together as [email protected]: identified by BGFRS–42: FRB—General members of North Star Partners, LLC, 1. Delmar Bancorp, Salisbury, File of the Insurance Policy Advisory Bloomfield Hills, Michigan, and Jordan Maryland; to acquire 100 percent of the Committee, by any of the following Dorfman, Bloomfield Hills, Michigan, voting shares of Virginia Partners Bank, methods: and Noah Dorfman, Ferndale, Michigan, Fredericksburg, Virginia. • Agency Website: http:// as a group acting in concert, to join the B. Federal Reserve Bank of St. Louis www.federalreserve.gov. Follow the Dorfman Family Control Group (David L. Hubbard, Senior Manager) instructions for submitting comments at approved on June 16, 2005; to retain P.O. Box 442, St. Louis, Missouri http://www.federalreserve.gov/ voting shares of North Star Financial 63166–2034. Comments can also be sent generalinfo/foia/ProposedRegs.cfm.
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• Email: regs.comments@ AUTHORITY FOR MAINTENANCE OF THE SYSTEM: POLICIES AND PRACTICES FOR RETRIEVAL OF federalreserve.gov. Include SORN name Section 211(b) of the Economic RECORDS: and number in the subject line of the Growth, Regulatory Relief, and Electronic records can be retrieved by message. Consumer Protection Act (31 U.S.C. 313 name or other identifying aspects. • Fax: (202) 452–3819 or (202) 452– note) and Section 10 of the Federal POLICIES AND PRACTICES FOR RETENTION AND 3102. Reserve Act (12 U.S.C. 244). DISPOSAL OF RECORDS: • Mail: Ann E. Misback, Secretary, PURPOSE(S) OF THE SYSTEM: Pending establishing of an approved Board of Governors of the Federal This system aids the Board in its retention period, the records will be Reserve System, 20th Street and operation and management of the IPAC, retained indefinitely. Constitution Avenue NW, Washington, including the selection and DC 20551. ADMINISTRATIVE, TECHNICAL, AND PHYSICAL appointment of members to the IPAC. All public comments are available SAFEGUARDS: from the Board’s website at http:// CATEGORIES OF INDIVIDUALS COVERED BY THE Access to records in the system is www.federalreserve.gov/generalinfo/ SYSTEM: limited to those Board staff whose foia/ProposedRegs.cfm as submitted, This system maintains information on official duties require it. This is unless modified for technical reasons or individuals considered for membership accomplished through user roles, which to remove personally identifiable on the IPAC and individuals selected to provide differential access levels to information at the commenter’s request. serve on the IPAC. users based on their official duties and Public comments may also be viewed need-to-know. CATEGORIES OF RECORDS IN THE SYSTEM: electronically or in paper in Room 146, RECORD ACCESS PROCEDURES: 1709 New York Avenue NW, Records in the system include Washington, DC 20006, between 9:00 identifying information about The Privacy Act allows individuals a.m. and 5:00 p.m. on weekdays. individuals seeking to become IPAC the right to access records maintained members and members of the IPAC, about them in a Board system of FOR FURTHER INFORMATION CONTACT: information relating to the selection and records. Your request for access must: David B. Husband, Senior Attorney, appointment of individuals to the IPAC, (1) Contain a statement that it is made (202) 530–6270, or david.b.husband@ and records relating to service on the pursuant to the Privacy Act of 1974; (2) frb.gov; Alye S. Foster, Assistant IPAC. Individual information in the provide either the name of the Board General Counsel, or (202) 452–5289, or system includes, but is not limited to, system of records expected to contain [email protected]; Legal Division, name, work address, telephone number, the record requested or a concise Board of Governors of the Federal email address, organization, and title. description of the system of records; (3) Reserve System, 20th Street and The system stores additional provide the information necessary to Constitution Avenue NW, Washington, information including, but not limited verify your identity; and (4) provide any DC 20551. Telecommunications Device to, the individual or IPAC member’s other information that may assist in the for the Deaf (TDD) users may contact education, work experience, and rapid identification of the record for (202) 263–4869. qualifications. The system will also which you are requesting access. SUPPLEMENTARY INFORMATION: This new store records relating to the management The Board handles all Privacy Act system of records will aid the Board in of the IPAC, such as payment requests as both a Privacy Act request its operation and management of the information for travel or honoraria. and as a Freedom of Information Act IPAC, which Congress established in request. The Board does not charge fees RECORD SOURCE CATEGORIES: section 211(b) of the Economic Growth, to a requestor seeking to access or Regulatory Relief, and Consumer Information is provided by the amend his/her Privacy Act records. Protection Act, Public Law 115–74 individual or IPAC member to whom You may submit your Privacy Act (EGRRCPA). EGRRCPA established the the record pertains. Board staff may also request to the—Secretary of the Board, IPAC to advise the Board on independently obtain available Board of Governors of the Federal international capital standards and information regarding individuals Reserve System, 20th Street and other insurance matters. seeking to become IPAC members. Constitution Avenue NW, Washington DC 20551. SYSTEM NAME AND NUMBER ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND You may also submit your Privacy Act BGFRS–42 ‘‘FRB—General File of the PURPOSES OF SUCH USES: request electronically through the Insurance Policy Advisory Committee.’’ General routine uses A, B, C, D, E, F, Board’s FOIA ‘‘Electronic Request G, I, and J apply to this system. These Form’’ located here: https:// SECURITY CLASSIFICATION: general routine uses are located at: www.federalreserve.gov/secure/forms/ Unclassified. https://www.federalreserve.gov/files/ efoiaform.aspx. SORN-page-general-routine-uses-of- SYSTEM LOCATION: CONTESTING RECORD PROCEDURES: board-systems-of-records.pdf and are The Privacy Act allows individuals to Records will be maintained at the published in the Federal Register at 83 seek amendment of information that is Board’s central offices located at: Board FR 43872 (August 28, 2018) at 43873– erroneous, irrelevant, untimely, or of Governors of the Federal Reserve 74. System, 20th Street and Constitution incomplete and is maintained in a Avenue NW, Washington, DC 20551. POLICIES AND PRACTICES FOR STORAGE OF system of records about you. To request RECORDS: an amendment to your record, you SYSTEM MANAGER(S): Paper records in this system are should clearly mark the request as a Linda Duzick, Manager, Insurance stored in file folders with access limited ‘‘Privacy Act Amendment Request.’’ Policy Section, Division of Supervision to staff with a need-to-know. Electronic You have the burden of proof for & Regulation, Board of Governors of the records are stored on a secure server. demonstrating the appropriateness of Federal Reserve System, Washington, Records are also stored in FIRMA, the the requested amendment and you must DC 20551, or 202–728–5881, or Federal Reserve’s official recordkeeping provide relevant and convincing [email protected]. system, on an annual basis. evidence in support of your request.
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Your request for amendment must: (1) based form. If you prefer to file your breaches affecting 500 or more Provide the name of the specific Board comment on paper, mail your comment individuals that is publicly available on system of records containing the record to the following address: Federal Trade the FTC’s website. The list provides you seek to amend; (2) identify the Commission, Office of the Secretary, businesses with information about specific portion of the record you seek 600 Pennsylvania Avenue NW, Suite potential sources of data breaches, to amend; (3) describe the nature of and CC–5610 (Annex J), Washington, DC which is helpful to those developing reasons for each requested amendment; 20580, or deliver your comment to the data security procedures. It also (4) explain why you believe the record following address: Federal Trade provides the public with information is not accurate, relevant, timely, or Commission, Office of the Secretary, about the extent of data breaches. complete; and (5) unless you have Constitution Center, 400 7th Street SW, The Rule also requires third-party already done so in a Privacy Act request 5th Floor, Suite 5610 (Annex J), service providers (i.e., those companies for access, provide the necessary Washington, DC 20024. that provide services such as billing or information to verify your identity. FOR FURTHER INFORMATION CONTACT: data storage) to vendors of personal Robin Wetherill, 202–326–2220, health records and PHR related entities NOTIFICATION PROCEDURES: Attorney, Privacy & Identity Protection, to provide notification to such vendors Same as ‘‘Access procedures’’ above. Bureau of Consumer Protection, 600 and PHR related entities following the You may also follow this procedure in Pennsylvania Ave. NW, Washington, DC discovery of a breach. The Rule only order to request an accounting of 20580. applies to electronic health records and previous disclosures of records does not include recordkeeping SUPPLEMENTARY INFORMATION: On pertaining to you as provided for by requirements. 5 U.S.C. 552a(c). February 17, 2009, President Obama These notification requirements are signed the American Recovery and subject to the provisions of the PRA, 44 EXEMPTIONS PROMULGATED FOR THE SYSTEM: Reinvestment Act of 2009 (the Recovery U.S.C. Chapter 35. Under the PRA, None. Act or the Act) into law. The Act federal agencies must get OMB approval included provisions to advance the use for each collection of information they HISTORY: of health information technology and, at None. conduct, sponsor, or require. the same time, strengthen privacy and ‘‘Collection of information’’ means Board of Governors of the Federal Reserve security protections for health agency requests or requirements to System, February 4, 2019. information. The Act required the FTC submit reports, keep records, or provide Ann Misback, to adopt a rule implementing the breach information to a third party. 44 U.S.C. Secretary of the Board. notification requirements applicable to 3502(3); 5 CFR 1320.3(c). As required by [FR Doc. 2019–01639 Filed 2–7–19; 8:45 am] vendors of personal health records, Section 3506(c)(2)(A) of the PRA, the BILLING CODE P ‘‘PHR related entities,’’ and third-party FTC is providing this opportunity for service providers, and the Commission public comment before requesting that issued a final rule on August 25, 2009. OMB extend the existing PRA clearance FEDERAL TRADE COMMISSION 74 FR 42962. for the information collection The Health Breach Notification Rule requirements associated with the Rule. Agency Information Collection (Rule), 16 CFR part 318 (OMB Control The FTC invites comments on: (1) Activities; Proposed Collection; Number 3084–0150), requires vendors Whether the proposed collection of Comment Request of personal health records and PHR information is necessary for the proper related entities to provide: (1) Notice to performance of the functions of the AGENCY: Federal Trade Commission consumers whose unsecured personally agency, including whether the (FTC or Commission). identifiable health information has been information will have practical utility; ACTION: Notice. breached; and (2) notice to the (2) the accuracy of the agency’s estimate Commission. Under the Rule, of the burden of the proposed collection SUMMARY: The information collection consumers whose information has been of information, including the validity of requirements described below will be affected by a breach receive notice the methodology and assumptions used; submitted to the Office of Management ‘‘without unreasonable delay and in no (3) ways to enhance the quality, utility, and Budget (OMB) for review, as case later than 60 calendar days’’ after and clarity of the information to be required by the Paperwork Reduction discovery of the breach. Among other collected; and (4) ways to minimize the Act (PRA). The FTC seeks public information, the notices must provide burden of the collection of information comment on its proposal to extend, for consumers with steps they can take to on those who are to respond. All three years, the current PRA clearance protect themselves from harm. To notify comments must be received on or before for information collection requirements the FTC of a breach, the Commission April 8, 2019. contained in the Health Breach developed a simple, two-page form Notification Rule. That clearance requesting minimal information and Burden Estimates expires on March 31, 2019. consisting mainly of check boxes, which The PRA burden of the Rule’s DATES: Comments must be received on is posted at www.ftc.gov/healthbreach. requirements depends on a variety of or before April 8, 2019. For breaches involving the health factors, including the number of covered ADDRESSES: Interested parties may file a information of 500 or more individuals, firms; the percentage of such firms that comment online or on paper by entities must notify the Commission as will experience a breach requiring following the instructions in the soon as possible, and in any event no further investigation and, if necessary, Request for Comments part of the later than ten business days after the sending of breach notices; and the SUPPLEMENTARY INFORMATION section discovering the breach. Entities may number of consumers notified. The below. Write ‘‘Paperwork Reduction report all breaches involving the annual hours and cost estimates below Act: FTC File No. P072108’’ on your information of fewer than 500 likely overstate the burden because, comment, and file your comment online individuals in an annual submission for among other things, they assume, at https://www.regulations.gov by the calendar year. The Commission uses though it is not necessarily so, that all following the instructions on the web- entities’ notifications to compile a list of covered firms experiencing breaches
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subject to the Rule’s notification credentials. The rate of such breaches Additionally, covered firms will incur requirements will be required to take all has increased significantly since the labor costs associated with processing of the steps described below. Rule went into effect; the year-to-year calls they may receive in the event of a The analysis may also overstate the average rate of increase during this major breach. The Rule requires that burden of the Rule’s requirements period was nearly 70%. Whereas from covered firms that fail to contact 10 or because it assumes that covered firms 2011 to 2014 the average annual number more consumers because of insufficient would not take any of the steps of single-person breaches was 7,502, or out-of-date contact information must described were it not for the from 2014 to 2017 the average was provide substitute notice through either requirements of the Rule. For example, almost 15,000. Assuming that this rate a clear and conspicuous posting on their the analysis incorporates labor costs of increase continues, staff estimates website or media notice. Such substitute associated with understanding what that between 2019 and 2022 the agency notice must include a toll-free number information has been breached. It seems will receive, on average, about 25,000 for the purpose of allowing a consumer likely that some firms would incur such single-person breach reports per year. to learn whether or not his/her costs even in the absence of the Rule’s By contrast, major breach reports are information was affected by the breach. requirements because the firms are quite infrequent. On average, the FTC Individuals contacted directly will independently interested in identifying, receives one major breach report have already received this information. understanding, and remediating security approximately every two and a half Staff estimates that no more than 10 risks. A company that investigates, for years, with an average of approximately percent of affected consumers will its own purposes, what information has 200,000 persons affected. Given the low utilize the offered toll-free number. been breached is unlikely to fully frequency at which major breaches Thus, of the 200,000 consumers affected duplicate the costs of that investigation occur, FTC staff are unable to identify by a major breach, staff estimates that in complying with the Rule. Therefore, any meaningful trends in the frequency 20,000 may call the companies over the it may not be correct in all cases that of major breach reports. FTC staff has 90 days they are required to provide complying with the Rule results in not identified any existing research such access. Staff additionally projects added labor costs for this activity. allowing us to make specific projections that 10,000 additional consumers who Nevertheless, in order to allow for a about future variation in the frequency are not affected by the breach will also complete understanding of all the of major breaches. Consequently, FTC call the companies during this period. potential costs associated with staff has assumed that the average Staff estimates that processing all 30,000 compliance, these costs are included in frequency and scale of major breaches calls will require an average of 11,500 this analysis. will remain more or less static. Staff’s hours of employee labor resulting in an At the time the Rule was issued in calculations are based on the estimate average annual burden of 4,600 labor 2009, insufficient data was available that a major breach will occur hours. about the incidence of breaches in the approximately every two and a half Given the low frequency of major PHR industry. Accordingly, staff based years and that 200,000 people will be breaches, the annual average its burden estimate on data pertaining to affected by each major breach, for an requirement for major breaches is 4,640 private sector breaches across multiple annual average of 80,000 individuals hours. industries. Staff estimated that there The combined annual hours burden would be 11 breaches per year requiring affected per year. Estimated Annual Burden Hours: for both single-person and major notification of 232,000 consumers. breaches therefore is 4,779 (4,640 + In 2016, based on available data from 4,779. 139). the years 2010 through 2014, staff As explained in more detail within Estimated Annual Labor Costs: arrived at new estimates, projecting an the next section, FTC staff projects that $91,836. average of two breaches per year the employee time required for each For each single-person breach, FTC affecting a total of 40,000 individual single-person breach is quite minimal staff estimates that the average 20 consumers. because the processes for notifying The Rule has now been in effect for consumers are largely automated and seconds of employee labor to provide over eight years, and new data regarding single-person breaches can be reported (likely automated) notification to the number and scale of reported to the FTC in an aggregate annual affected individuals and produce an breaches from 2015 through 2017 allow notification using the FTC’s two-page annual breach notification for staff to update its burden estimates. A form. On average, staff estimates that submission to the FTC will cost review of the breach reports received by covered firms will require approximately $0.27 per breach. With the FTC from 2010 through 2017 reveals approximately 20 seconds of employee an estimated 25,000 single-person that there are two primary categories of labor per single-person breach. With an breaches per year, the annual labor costs breaches reported: (1) ‘‘single-person estimated 25,000 single-person breaches associated with all single-person breaches,’’ incidents in which a single per year, the total estimated burden breaches come to $6,570. individual’s information is potentially hours for single-person breaches is For major breaches, FTC staff projects compromised; and (2) what are hereafter approximately 139 hours. that the average 100 hours of employee described as ‘‘major breaches,’’ in which For each major breach, covered firms labor costs (excluding outside forensic multiple—and typically, many— will require on average 100 hours of services, discussed below as estimated individuals are affected. These two employee labor to determine what non-labor costs) to determine what categories of breaches are addressed information has been breached, the information has been breached, identify separately in this analysis because the identification of affected customers, the affected customers, prepare the frequency and costs of the categories preparation of the breach notice, and breach notice, and report to the differ significantly. submission of the required report to the Commission will cost an average of 1 Nearly all of the submissions received Commission. Based on staff’s estimate $61.66 per hour for a total of $6,166. between 2010 and 2017—over 99.99% that one major breach occurs every two 1 Hourly wages throughout this document are of them—reported single-person and a half years, the average annual based on mean hourly wages found at http:// breaches related to an individual’s loss burden of major breaches amounts to 40 www.bls.gov/news.release/ocwage.htm of control over his or her login hours per year. Continued
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Based on an estimated one breach every consultant ($144), and multiplied by In sum, the total annual estimate for two and a half years, the annual 240 hours. Based on the estimate that non-labor costs associated with major employee labor cost burden for affected there will be one major breach every breaches is $29,664: $13,824 (services of entities to perform these tasks is $2,466. two and a half years, the annual cost a forensic expert) + $5,280 (cost of mail Additionally, staff expects covered associated with the services of an notifications) + $9,600 (cost of website firms will require, for each major outside forensic expert is $13,824. and media notice) + $960 (cost of breach, 11,500 hours of labor associated As explained above, staff estimates providing a toll-free number). Negligible with answering consumer telephone that an average of 200,000 consumers non-labor costs are associated with calls at a cost of $207,000.2 Since a will be entitled to notification of each single-person breaches. major breach occurs approximately major breach. Given the online The total estimated PRA annual cost every two and a half years, the average relationship between consumers and burden is $91,836 for labor costs and annual burden of 4,600 labor hours vendors of personal health records and $29,446 for non-labor costs, totaling results in annualized labor cost of PHR related entities, most notifications approximately $121,500. approximately $82,800. will be made by email and the cost of Request for Comments Accordingly, estimated cumulative such notifications will be minimal. You can file a comment online or on annual labor costs, excluding outside In some cases, however, vendors of paper. April 9, 2019. Write ‘‘Paperwork forensic services, for both single-person personal health records and PHR related Reduction Act: FTC File No. P072108’’ and major breaches, is $91,836 ($82,800 entities will need to notify individuals on your comment. Postal mail addressed + $2,466 + $6,570). by postal mail, either because these to the Commission is subject to delay Estimated Annual Capital and Other individuals have asked for such due to heightened security screening. As Non-Labor Costs: $29,446. notification, or because the email Commission staff estimates that a result, we encourage you to submit addresses of these individuals are not your comments online. To make sure capital and other non-labor costs current or not working. Staff estimates associated with single-person breaches that the Commission considers your that the cost of a mailed notice is $0.11 online comment, you must file it will be negligible. Companies generally for the paper and envelope, and $0.55 use automated notification systems to through the https://www.regulations.gov for a first class stamp. Assuming that website by following the instructions on notify consumers of single-person vendors of personal health records and breaches. Automated notifications are the web-based form provided. Your PHR related entities will need to notify comment—including your name and typically delivered by email or other by postal mail 10 percent of the 200,000 electronic methods. The costs of your state—will be placed on the public customers whose information is record of this proceeding, including at providing such electronic notifications breached, the estimated cost of this are minimal. the https://www.regulations.gov notification will be $13,200 per breach. website. Commission staff anticipates that The annual cost will be around $5,280. capital and other non-labor costs If you file your comment on paper, In addition, vendors of personal write ‘‘Paperwork Reduction Act: FTC associated with major breaches will health records and PHR related entities File No. P072108’’ on your comment consist of the following: may need to notify consumers by 1. Services of a forensic expert in and on the envelope, and mail your posting a message on their home page, comment to the following address: investigating the breach; or by providing media notice. Staff 2. notification of consumers via email, Federal Trade Commission, Office of the estimates the cost of providing notice Secretary, 600 Pennsylvania Avenue mail, web posting, or media; and via website posting to be $0.08 per 3. the cost of setting up a toll-free NW, Suite CC–5610 (Annex C), breached record, and the cost of number, if needed. Washington, DC 20580, or deliver your providing notice via published media to Staff estimates that, for each major comment to the following address: be $0.04 per breached record. Applied breach, covered firms will require 240 Federal Trade Commission, Office of the to the above-stated estimate of 200,000 hours of a forensic expert’s time, at a Secretary, Constitution Center, 400 7th affected consumers, the estimated total cumulative cost of $34,560 for each Street SW, 5th Floor, Suite 5610, cost of website notice will be $16,000, breach. This estimate is based on a Washington, DC 20024. If possible, and the estimated total cost of media projection that an average major breach submit your paper comment to the notice will be $8,000, yielding an will affect approximately 20 machines Commission by courier or overnight estimated total per-breach cost for both and that a forensic analyst will require service. forms of notice to consumers of $24,000. Because your comment will be placed about 12 hours per machine to conduct Annualized, this number is on the publicly accessible website at his or her analysis. The projected cost approximately $9,600 per year. www.regulations.gov, you are solely of retaining the forensic analyst consists Finally, staff estimates that the cost of responsible for making sure that your of the hourly wages of an information providing a toll-free number will comment does not include any sensitive security analyst ($48), tripled to reflect depend on the costs associated with T1 or confidential information. In profits and overhead for an outside lines sufficient to handle the projected particular, your comment should not (‘‘Occupational Employment and Wages—May call volume and the cost of obtaining a include any sensitive personal 2017,’’ U.S. Department of Labor, released March toll-free telephone number. Based on information, such as your or anyone 2018, Table 1 (‘‘National employment and wage industry research, staff projects that else’s Social Security number; date of data from the Occupational Employment Statistics affected entities may need two T1 lines birth; driver’s license number or other survey by occupation, May 2017’’). at a cost of $1,800 for the 90-day period. state identification number, or foreign The breakdown of labor hours and costs is as follows: 50 hours of computer and information In addition, staff estimates the cost of country equivalent; passport number; systems managerial time at approximately $72 per obtaining a dedicated toll-free line to be financial account number; or credit or hour; 12 hours of marketing manager time at $70 $100 per month. Accordingly, staff debit card number. You are also solely per hour; 33 hours of computer programmer time projects that the cost of obtaining two responsible for making sure that your at $42 per hour; and 5 hours of legal staff time at $68 per hour. toll-free lines for 90 days will be $2,400. comment does not include any sensitive 2 The cost of telephone operators is estimated at The total annualized cost for providing health information, such as medical $18/hour. a toll-free number will be $960. records or other individually
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identifiable health information. In GENERAL SERVICES this number if special assistance is addition, your comment should not ADMINISTRATION needed to attend and participate in the public meeting. include any ‘‘trade secret or any [NOTICE PBS–2019–02; DOCKET NO. 2019– commercial or financial information 002; SEQUENCE NO. 2] SUPPLEMENTARY INFORMATION: which .... is privileged or Background confidential’’—as provided by Section Notice of Availability and 6(f) of the FTC Act, 15 U.S.C. 46(f), and Announcement of Public Meeting for The SEIS for the San Ysidro LPOE FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— the Final Supplemental Environmental Improvements Project is intended to including in particular competitively Impact Statement for the San Ysidro supplement the Final Environmental sensitive information such as costs, Land Port of Entry Improvements Impact Statement (EIS) that was adopted sales statistics, inventories, formulas, Project, San Ysidro, California for the San Ysidro LPOE Improvements Project in August 2009 (2009 Final EIS). patterns, devices, manufacturing AGENCY: Public Buildings Service (PBS), processes, or customer names. In September 2009, GSA prepared a General Services Administration (GSA). Record of the Decision (ROD) that Comments containing material for ACTION: Notice of availability; approved the Preferred Alternative which confidential treatment is announcement of public meeting. (2009 Approved Project) that was requested must be filed in paper form, identified in the 2009 Final EIS. In May SUMMARY: This notice announces the must be clearly labeled ‘‘Confidential,’’ 2014, GSA adopted a Final SEIS that availability of the Final Supplemental and must comply with FTC Rule 4.9(c). evaluated changed circumstances and Environmental Impact Statement (SEIS), In particular, the written request for proposed modifications to the 2009 which examines the potential impacts of confidential treatment that accompanies Approved Project that identified a a proposal by the GSA, to reconfigure the comment must include the factual Preferred Alternative that was approved and expand the existing San Ysidro and legal basis for the request, and must by GSA through a ROD in August 2014 Land Port of Entry (LPOE) located at the identify the specific portions of the (2014 Approved Supplemental Project). United States (U.S.)-Mexico border in comment to be withheld from the public In August 2015, GSA prepared a the City of San Diego community of San Revision to the 2014 Final SEIS to record. See FTC Rule 4.9(c). Your Ysidro, in San Diego County, California. document minor design changes and comment will be kept confidential only The Final SEIS describes the reason the provide specific information that was if the General Counsel grants your project is being proposed; the not available or known at the time when request in accordance with the law and alternatives considered; the potential the 2009 Final EIS or 2014 Final SEIS the public interest. Once your comment impacts of each of the alternatives on was prepared (2015 Revision). The 2009 has been posted publicly at the existing environment; and the Approved Project, 2014 Approved www.regulations.gov, we cannot redact proposed avoidance, minimization, and/ Supplemental Project, and 2015 or remove your comment, unless you or mitigation measures related to those Revision are collectively referred to as submit a confidentiality request that alternatives. As the lead agency for this the ‘‘Approved Project.’’ meets the requirements for such undertaking, GSA is acting on behalf of This SEIS documents and evaluates treatment under FTC Rule 4.9(c), and its major tenant at this facility, the changed circumstances and proposed the General Counsel grants that request. Department of Homeland Security’s modifications to the Approved Project Customs and Border Protection. The FTC Act and other laws that the since adoption of the 2009 Final EIS and Commission administers permit the DATES: A public meeting for the Final 2014 Final SEIS and preparation of the collection of public comments to SEIS will be held on Wednesday, 2015 Revision. The Approved Project consider and use in this proceeding as February 20th, 2019, from 4:00 p.m. to with proposed modifications is referred appropriate. The Commission will 7:00 p.m., Pacific Standard Time. to as the ‘‘Revised Project.’’ consider all timely and responsive Interested parties are encouraged to The Approved Project and Revised public comments that it receives on or attend. The availability period for the Project entail the reconfiguration and before April 8, 2019. You can find more Final SEIS ends on Monday, March expansion of the San Ysidro LPOE in 11th, 2019. information, including routine uses three independent phases to improve permitted by the Privacy Act, in the ADDRESSES: The public meeting will be overall capacity and operational Commission’s privacy policy, at https:// held at The Front, 147 West San Ysidro efficiency at the LPOE. The San Ysidro www.ftc.gov/site-information/privacy- Boulevard, San Diego, CA, 92173. LPOE is located along Interstate 5 (I–5) Further information, including an policy. at the U.S.-Mexico border in the San electronic copy of the Final SEIS, may Ysidro community of the City of San Heather Hippsley, be found online on the following Diego, California. Deputy General Counsel. website: https://www.gsa.gov/about-us/ GSA is proposing the following [FR Doc. 2019–01530 Filed 2–7–19; 8:45 am] regions/welcome-to-the-pacific-rim- changes to the Approved Project: A region-9/land-ports-of-entry/san-ysidro- BILLING CODE 6750–01–P redesign of the proposed pedestrian land-port-of-entry. Questions or plaza on the east side of the LPOE. The comments concerning the Final SEIS pedestrian plaza would be expanded to should be directed to: Osmahn Kadri, the north to include an additional parcel Regional Environmental Quality adjacent to the LPOE. GSA proposes Advisor/NEPA Project Manager, 50 acquisition of the adjacent 0.24-acre United Nations Plaza, 3345, Mailbox #9, parcel to the north that contains two San Francisco, CA, 94102, or via email commercial buildings and incorporation to [email protected]. of this parcel (Additional Land Area) FOR FURTHER INFORMATION CONTACT: into the pedestrian plaza. In addition to Osmahn Kadri, Regional Environmental these proposed changes to the Approved Quality Advisor/NEPA Project Manager, Project, the Revised Project also GSA, at (415) 522–3617. Please also call includes the other components of the
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Approved Project that have not After careful consideration of the Collection 3090–0044, Application/ changed. environmental analysis and associated Permit for Use of Space in Public The changed circumstances environmental effects of the action Buildings and Grounds, GSA Form associated with the Approved Project alternatives and No Action Alternative, 3453.’’ Follow the instructions provided include new information regarding the the needs of the federal agencies at the ‘‘Submit a Comment’’ screen. condition of existing structures adjacent operating at the San Ysidro LPOE, and Please include your name, company to the LPOE that affect the ability of comments received on the Draft SEIS, name (if any), and ‘‘Information GSA to implement the Approved GSA identified Alternative 1 as the Collection 3090–0044, Application/ Project. The Approved Project Preferred Alternative. Permit for Use of Space in Public anticipated that construction of the This Alternative would best satisfy Buildings and Grounds, GSA Form pedestrian plaza would require the Purpose and Need of the Revised 3453,’’ on your attached document. demolition of the existing Milo Building Project and would result in greater • Mail: General Services within the LPOE. During final design, it benefits to cross-border circulation and Administration, Regulatory Secretariat was discovered that two existing mobility within the project area Division (MVCB), 1800 F Street NW, buildings adjacent to the Milo Building compared to Alternative 2. Washington, DC 20405. ATTN: Ms. on the Additional Land Area would Dated: February 4, 2019. Mandell/IC 3090–0044, Application/ likely collapse when the Milo Building Permit for Use of Space in Public Matthew Jear, is removed. The condition of these Buildings and Grounds, GSA Form adjacent buildings was not known at the Director, Portfolio Management Division, 3453. time the 2009 Final EIS or 2014 Final Pacific Rim Region, Public Buildings Service. Instructions: Please submit comments SEIS were prepared and this changed [FR Doc. 2019–01690 Filed 2–7–19; 8:45 am] only and cite Information Collection circumstance has bearing on the ability BILLING CODE 6820–YF–P 3090–0044, Application/Permit for Use to implement the Approved Project. of Space in Public Buildings and Due to the changed circumstances and Grounds, GSA Form 3453, in all GENERAL SERVICES changes to the Approved Project, GSA correspondence related to this ADMINISTRATION made the decision to prepare an SEIS collection. Comments received generally for the Revised Project. [OMB Control No. 3090–0044; Docket No. will be posted without change to The purpose of the Revised Project is 2018–0001; Sequence No. 11] regulations.gov, including any personal the same as the Approved Project that and/or business confidential was identified in the 2009 Final EIS and Submission for OMB Review; information provided. To confirm 2014 Final SEIS. The purpose of the Application/Permit for Use of Space in receipt of your comment(s), please Revised Project is to improve Public Buildings and Grounds, GSA check regulations.gov, approximately operational efficiency, security, and Form 3453 two-to-three business days after safety for cross-border travelers and submission to verify posting (except federal agencies at the San Ysidro LPOE. AGENCY: Public Buildings Service, General Services Administration (GSA). allow 30 days for posting of comments The Draft SEIS analyzed two submitted by mail). alternatives of the Revised Project, as ACTION: Notice of request for comments FOR FURTHER INFORMATION CONTACT: well as the No Action Alternative. Both regarding an extension to an existing Ms. of the Action Alternatives include the OMB clearance. Karen Handsfield, Public Buildings proposed modifications described Service, at telephone 202–208–2444, or above, as well as the other SUMMARY: Under the provisions of the via email to [email protected]. improvements originally proposed as Paperwork Reduction Act, the SUPPLEMENTARY INFORMATION: Regulatory Secretariat Division will be part of the Approved Project. A. Purpose Alternative 1 would include demolition submitting to the Office of Management of the two existing buildings within the and Budget (OMB) a request to review The general public uses Application/ Additional Land Area that would be and approve an extension of a Permit for Use of Space in Public added to the LPOE and incorporated previously approved information Buildings and Grounds, GSA Form into the pedestrian plaza. Alternative 2 collection requirement regarding the 3453, to request the use of public space would involve renovation/adaptive Application/Permit for Use of Space in in Federal buildings and on Federal reuse of the existing buildings on the Public Buildings and Grounds, GSA grounds for cultural, educational, or Additional Land Area that would be Form 3453. recreational activities. A copy, sample, added to the LPOE and incorporated DATES: Submit comments on or before: or description of any material or item into the design of the pedestrian plaza March 11, 2019. proposed for distribution or display must also accompany this request. and LPOE. Under the No Action ADDRESSES: Submit comments regarding Alternative, GSA would continue to this burden estimate or any other aspect B. Annual Reporting Burden implement the Approved Project except of this collection of information, Respondents: 8,000. that the Milo Building would not be including suggestions for reducing this Responses per Respondent: 1. demolished. burden to: Office of Information and Hours per Response: 0.05. The Draft SEIS was made publicly Regulatory Affairs of OMB, Attention: Total Burden Hours: 400. available on September 24, 2018 for a Desk Officer for GSA, Room 10236, 45-day period. The Notice of NEOB, Washington, DC 20503. C. Public Comments Availability for the Draft SEIS was Additionally submit a copy to GSA by A notice was published in the Federal published in the Federal Register on any of the following methods: Register at 83 FR 48314 on September September 24, 2018. A public meeting • Regulations.gov: http:// 24, 2018. No comments were received. took place on October 17, 2018 in the www.regulations.gov. Submit comments Public comments are particularly San Ysidro community. In preparing via the Federal eRulemaking portal by invited on: Whether this collection of this Final SEIS, GSA considered public searching the OMB control number. information is necessary and whether it comments received regarding the Draft Select the link ‘‘Submit a Comment’’ will have practical utility; whether our SEIS during the public review period. that corresponds with ‘‘Information estimate of the public burden of this
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collection of information is accurate, OMB No.: 0970–NEW. OTIP proposes to collect information and based on valid assumptions and Description: The Trafficking Victims from DVHT grantees on a semi-annual methodology; ways to enhance the Protection Act of 2000 (TVPA), as and annual basis to help measure each quality, utility, and clarity of the amended, authorizes the Secretary of grant project’s performance and the information to be collected. Health and Human Services to establish success of the program in assisting Obtaining Copies of Proposals: a program to assist United States participants, to assist grantees to assess Requesters may obtain a copy of the citizens and lawful permanent residents and improve their projects over the information collection documents from who are victims of severe forms of course of the project period, and to the General Services Administration, trafficking (22 U.S.C. 7105(f)). The fulfill congressional reporting requests. Regulatory Secretariat Division (MVCB), Office on Trafficking in Persons (OTIP) The proposed information collection 1800 F Street NW, Washington, DC awarded thirteen cooperative includes elements on participant 20405, telephone 202–501–4755. Please agreements to implement the Domestic demographics (e.g., age, sex, and cite OMB Control No. 3090–0044, Victims of Human Trafficking (DVHT) Application/Permit for Use of Space in country of origin), types of trafficking Program. The DVHT Program provides Public Buildings and Grounds, GSA experienced (sex, labor, or both), types funding for comprehensive case Form 3453, in all correspondence. of enrollment, types of services management services to domestic requested and provided, barriers to Dated: December 19, 2018. victims of severe forms of trafficking to service delivery, types of partnerships David A. Shive, ensure the provision of services with an developed through the grant, and the Chief Information Officer. emphasis on long-term housing, types of training and technical [FR Doc. 2019–01689 Filed 2–7–19; 8:45 am] substance abuse treatment, and the assistance provided to subrecipient BILLING CODE 6820–34–P integration of survivor-led services. organizations or other partners. The intent of this program is to build, This information will help OTIP expand, and sustain organizational and assess the project’s performance in DEPARTMENT OF HEALTH AND community capacity to deliver trauma- assisting victims of trafficking and will HUMAN SERVICES informed, strengths-based, and person- better enable DVHT grantees to meet the centered services for domestic victims program objectives and to monitor and Administration for Children and of human trafficking through evaluate the quality of case management Families coordinated case management, a system services provided to victims. OTIP will of agency services, and community Proposed Information Collection also include aggregate information in Activity; Comment Request Proposed partnerships. The DVHT Program encourages innovative practices and reports to Congress to help inform Projects: Domestic Victims of Human strategies and policies to assist domestic Trafficking Program collaboration efforts among community stakeholders to ensure long-term victims of human trafficking. Title: Domestic Victims of Human outcomes for domestic victims of severe Respondents: Domestic Victims of Trafficking Program Data. forms of trafficking. Human Trafficking Program Grantees.
ANNUAL BURDEN ESTIMATES
Number of Average Instrument Number of responses per burden hours Total respondents respondent per response burden hours
Client Characteristics and Enrollment Form ...... 636 1 .3 190.8 Client Service Use and Delivery Form ...... 636 1 .25 159 Client Case Closure Form ...... 636 1 .167 106.212 Barriers to Service Delivery Form ...... 36 5 .167 30.06 Partnership Development Enrollment Form ...... 172 1 .25 43 Partnership Development Exit Form ...... 172 1 .083 14.276 Training Form ...... 36 4 .5 72 Technical Assistance Form ...... 36 4 .5 72
Estimated Total Annual Burden address: [email protected]. All of automated collection techniques or Hours: 687. requests should be identified by the title other forms of information technology. In compliance with the requirements of the information collection. Consideration will be given to of the Paperwork Reduction Act of 1995 The Department specifically requests comments and suggestions submitted (Pub. L. 104–13, 44 U.S.C. Chap 35), the comments on: (a) Whether the proposed within 60 days of this publication. Administration for Children and collection of information is necessary Families is soliciting public comment for the proper performance of the Mary B. Jones, on the specific aspects of the functions of the agency, including ACF/OPRE Certifying Officer. information collection described above. whether the information shall have [FR Doc. 2019–01691 Filed 2–7–19; 8:45 am] Copies of the proposed collection of practical utility; (b) the accuracy of the BILLING CODE 4184–47–P information can be obtained and agency’s estimate of the burden of the comments may be forwarded by writing proposed collection of information; (c) to the Administration for Children and the quality, utility, and clarity of the Families, Office of Planning, Research information to be collected; and (d) and Evaluation, 330 C Street SW, ways to minimize the burden of the Washington, DC 20201. Attn: ACF collection of information on Reports Clearance Officer. Email respondents, including through the use
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DEPARTMENT OF HEALTH AND likely to resonate with youth. The acf.hhs.gov. All requests should be HUMAN SERVICES project will inform hypotheses on how identified by the title of the information to increase the effectiveness of sex collection. Administration for Children and education approaches so that more SUPPLEMENTARY INFORMATION: Families youth avoid the risks associated with Description: We propose the following teen sex, and teen pregnancy rates are Proposed Information Collection data collection instruments: reduced. To support these efforts, we (1) Parent Survey: Information Activity; Youth Empowerment seek OMB approval to collect survey Information, Data Collection, and collected through the Parent Survey will information from a nationally- be used to report on demographics, the Exploration on Avoidance of Sex representative sample of youth and (IDEAS) (New Collection) parent-child relationship, parents’ young adults age 14–24 and a attitudes and beliefs about youth sex AGENCY: Office of Planning, Research, nationally-representative sample of education and sexual behaviors, and and Evaluation; Administration for parents of teens ages 14–18. parental knowledge about youth sexual Children and Families; HHS. DATES: Comments due within 60 days of risk-taking. We will use both random- publication. In compliance with the ACTION: Request for public comment. digit-dialing and a web survey. requirements of Section 3506(c)(2)(A) of (2) Youth Survey: We will administer SUMMARY: The Office of Planning, the Paperwork Reduction Act of 1995, a web survey in two parts. Information Research, and Evaluation (OPRE), the Administration for Children and collected on Part I of the survey will be Administration for Children and Families is soliciting public comment used to report on demographics, the Families (ACF), at the U.S. Department on the specific aspects of the parent-child relationship, future of Health and Human Services (HHS), information collection described above. aspirations, and attitudes and beliefs proposes data collection activities as ADDRESSES: Copies of the proposed about youth sexual behavior. part of the Youth Empowerment IDEAS collection of information can be Information collected on Part II of the study. The goal of this project is to obtained and comments may be survey will include knowledge about collect data that will inform educational forwarded by writing to the sexual risk, experience with sex topics and strategies for an optimal- Administration for Children and education, and sexual risk behaviors. health sexual risk avoidance (SRA) Families, Office of Planning, Research, Respondents: A nationally approach to reducing teen pregnancy and Evaluation, 330 C Street SW, representative sample of parents of and improving youth well-being. The Washington, DC 20201, Attn: OPRE teens ages 14–18 and a nationally project will identify strategies, skills, Reports Clearance Officer. Email representative sample of youth and messages, and themes that are most address: OPREinfocollection@ young adults ages 14–24.
ANNUAL BURDEN ESTIMATES
Annual Number of Average Instrument Total number number of responses per burden hours Annual burden of respondents respondents respondent per response hours
Parent Survey—Screener ...... 7500 2500 1 .083 208 Parent Survey—Telephone Mode (RDD) ...... 600 200 1 .500 100 Parent Survey—Web ...... 900 300 1 .333 100 Part I Youth Web Survey ...... 1500 500 1 .333 167 Part II Youth Web Survey ...... 1200 400 1 .333 133
Estimated Total Annual Burden Authority: Sec. 510. [42 U.S.C. 710] call for its members to discuss the Hours: 708. Mary B. Jones, potential topics of the Committee’s 2019 Report to the President. All the PCPID Comments: The Department ACF/OPRE Certifying Officer. meetings, in any format, are open to the specifically requests comments on (a) [FR Doc. 2019–01566 Filed 2–7–19; 8:45 am] whether the proposed collection of public. This virtual meeting will be BILLING CODE 4184–83–P conducted in a discussion format. information is necessary for the proper performance of the functions of the DATES: agency, including whether the DEPARTMENT OF HEALTH AND Webinar/Conference Call: Monday, information shall have practical utility; HUMAN SERVICES March 4, 2019 from 11:00 a.m. to 12:30 (b) the accuracy of the agency’s estimate p.m. (EST). Administration for Community Living of the burden of the proposed collection Agenda: The Committee will discuss of information; (c) the quality, utility, Administration on Intellectual and the preparation of the PCPID 2019 and clarity of the information to be Developmental Disabilities, President’s Report to the President, including its collected; and (d) ways to minimize the Committee for People With Intellectual content and format, and related data burden of the collection of information Disabilities collection and analysis required to on respondents, including through the complete the writing of the Report. use of automated collection techniques AGENCY: Administration for Community Additional Information: For further or other forms of information Living, HHS. information and accommodations technology. Consideration will be given ACTION: Notice. needs, please contact Ms. Allison Cruz, to comments and suggestions submitted Director, Office of Innovation, 330 C within 60 days of this publication. SUMMARY: The President’s Committee Street, SW, Switzer Building, Room for People with Intellectual Disabilities 1114, Washington, DC 20201. (PCPID) will host a webinar/conference Telephone: 202–795–7334. Fax: 202–
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795–7334. Email: allison.cruz@ requesting that any industry I. CDER Advisory Committees acl.hhs.gov organizations interested in participating Supplemental Information: The A. Anesthetic and Analgesic Drug in the selection of nonvoting industry Products Advisory Committee purpose of this virtual meeting is to representatives to serve on its public discuss the Committee’s preparation of advisory committees for the Center for Reviews and evaluates available data the 2019 Report to the President, Drug Evaluation and Research (CDER) concerning the safety and effectiveness including its content and format, and notify FDA in writing. FDA is also of marketed and investigational human related data collection and analysis requesting nominations for nonvoting drug products for use in anesthesiology required to complete the writing of the industry representatives to serve on and surgery. Report. CDER’s public advisory committees. A Webinar/Conference Call: The B. Antimicrobial Drugs Advisory nominee may either be self-nominated webinar/conference call is scheduled for Committee Monday, March 4, 2019 from 11:00 a.m. or nominated by an organization to Reviews and evaluates available data to 12:30 p.m. (EST) and may end early serve as a nonvoting industry concerning the safety and effectiveness if discussions are finished. representative. Nominations will be Instructions to Participate in the accepted for vacancies which become of marketed and investigational human Webinar/Conference Call on Monday, available on November 1, 2019, for the drug products for use in the treatment March 4, 2019: Please dial: (888) 949– 4-year term of November 1, 2019 to of infectious diseases and disorders. 2790; Pass Code: 1989852. October 31, 2023. C. Arthritis Advisory Committee Background Information on the DATES: Any industry organization Committee: The PCPID acts in an Reviews and evaluates available data interested in participating in the advisory capacity to the President and concerning the safety and effectiveness selection of an appropriate nonvoting the Secretary of Health and Human of marketed and investigational human member to represent industry interests Services on a broad range of topics drug products for use in the treatment relating to programs, services and must send a letter stating that interest to of arthritis, rheumatism, and related support for individuals with intellectual FDA by March 11, 2019, (see sections I diseases. disabilities. The PCPID executive order and II of this document for further details). Concurrently, nomination D. Bone, Reproductive, and Urologic stipulates that the Committee shall: (1) Drugs Advisory Committee Provide such advice concerning materials for prospective candidates intellectual disabilities as the President should be sent to FDA by March 11, Reviews and evaluates available data or the Secretary of Health and Human 2019. on the safety and effectiveness of Services may request; and (2) provide marketed and investigational human ADDRESSES: All statements of interest advice to the President concerning the drugs for use in the practice of from industry organizations interested following for people with intellectual obstetrics, gynecology, urology, and in participating in the selection process disabilities: (A) Expanding employment related specialties. of nonvoting industry representative opportunities; (B) connecting people to E. Cardiovascular and Renal Drugs services; (C) supporting families and nominations should be sent to Cicely Advisory Committee caregivers; (D) strengthening the Reese (see FOR FURTHER INFORMATION CONTACT). All nominations for networks; and (E) protecting rights and Reviews and evaluates available data nonvoting industry representatives may preventing abuse. on the safety and effectiveness of be submitted electronically by accessing marketed and investigational human Dated: February 4, 2018. the FDA Advisory Committee Julie Hocker, drug products for use in the treatment Membership Nomination Portal: https:// of cardiovascular and renal disorders. Commissioner, Administration on Disabilities www.accessdata.fda.gov/scripts/ (AoD). FACTRSPortal/FACTRS/index.cfm or by F. Dermatologic and Ophthalmic Drugs [FR Doc. 2019–01698 Filed 2–7–19; 8:45 am] mail to: Division of Advisory Committee Advisory Committee BILLING CODE 4154–01–P and Consultant Management, Food and Reviews and evaluates available data Drug Administration, 10903 New concerning the safety and effectiveness DEPARTMENT OF HEALTH AND Hampshire Ave., Bldg. 31, Rm. 2417, of marketed and investigational human HUMAN SERVICES Silver Spring, MD 20993–0002. drug products for use in the treatment Information about becoming a member of dermatologic and ophthalmic Food and Drug Administration of an FDA advisory committee can also disorders. be obtained by visiting FDA’s website [Docket No. FDA–2018–N–3918] at: http://www.fda.gov/Advisory G. Drug Safety and Risk Management Advisory Committee Request for Nomination From Industry Committees/default.htm. Organizations Interested in FOR FURTHER INFORMATION CONTACT: Reviews and evaluates information on Participating in the Selection Process Cicely Reese, Center for Drug Evaluation risk management, risk communication, for Nonvoting Industry and Research, Food and Drug and quantitative evaluation of Representatives and Request for Administration, 10903 New Hampshire spontaneous reports for drugs for Nominations for Nonvoting Industry Ave., Bldg. 31, Rm. 2417, Silver Spring, human use. Representatives on Public Advisory MD 20993–0002, 301–796–9001, Fax: Committees H. Endocrinologic and Metabolic Drugs 301–847–8533, email: Cicely.Reese@ Advisory Committee AGENCY: Food and Drug Administration, fda.hhs.gov. HHS. Reviews and evaluates available data SUPPLEMENTARY INFORMATION: The ACTION: Notice. concerning the safety and effectiveness Agency intends to add a nonvoting of marketed and investigational human SUMMARY: The Food and Drug industry representative to the following drug products for use in the treatment Administration (FDA or the Agency) is advisory committees: of endocrine and metabolic disorders.
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I. Gastrointestinal Drugs Advisory of marketed and investigational human Dated: February 4, 2019. Committee drug products for use in the treatment Lowell J. Schiller, Reviews and evaluates available data of pulmonary disease and diseases with Acting Associate Commissioner for Policy. concerning the safety and effectiveness allergic and/or immunologic [FR Doc. 2019–01555 Filed 2–7–19; 8:45 am] of marketed and investigational human mechanisms. BILLING CODE 4164–01–P drug products for use in the treatment II. Selection Procedure of gastrointestinal diseases. Any industry organization interested DEPARTMENT OF HEALTH AND J. Medical Imaging Drugs Advisory HUMAN SERVICES Committee in participating in the selection of an appropriate nonvoting member to Food and Drug Administration Reviews and evaluates available data represent industry interests should send concerning the safety and effectiveness a letter stating that interest to the FDA [Docket No. FDA–2016–D–3548] of marketed and investigational human contact (see FOR FURTHER INFORMATION drug products for use in diagnostic and Public Warning and Notification of CONTACT) within 30 days of publication therapeutic procedures using Recalls; Guidance for Industry and of this document (see DATES). Within the radioactive pharmaceuticals and FDA Staff; Availability contrast media used in diagnostic subsequent 30 days, FDA will send a AGENCY: radiology. letter to each organization that has Food and Drug Administration, expressed an interest, attaching a HHS. K. Nonprescription Drugs Advisory complete list of all such organizations; ACTION: Notice of availability. Committee and a list of all nominees along with Reviews and evaluates available data their current resume`s. The letter will SUMMARY: The Food and Drug concerning the safety and effectiveness also state that it is the responsibility of Administration (FDA or we) is of over-the-counter (nonprescription) the interested organizations to confer announcing the availability of a final human drug products for use in the with one another and to select a guidance for industry and FDA staff treatment of a broad spectrum of human candidate, within 60 days after the entitled ‘‘Public Warning and Notification of Recalls.’’ The guidance symptoms and diseases. receipt of the FDA letter, to serve as the establishes guidance for industry and nonvoting member to represent industry L. Oncologic Drugs Advisory Committee FDA staff regarding the use, content, interests for the committee. The Reviews and evaluates available data and circumstances for issuance of interested organizations are not bound public warnings and public notification concerning the safety and effectiveness by the list of nominees in selecting a of marketed and investigational human of recalls under federal regulations. The candidate. However, if no individual is drug products for use in the treatment intent of the guidance is to increase and selected within 60 days, the of cancer. expedite the appropriate and accurate Commissioner will select the nonvoting use of public warnings and public M. Peripheral and Central Nervous member to represent industry interests. notification and to increase public System Drugs Advisory Committee III. Application Procedure health protection by better informing Reviews and evaluates available data the public about violative products concerning the safety and effectiveness Individuals may self-nominate and/or being recalled. The guidance clarifies of marketed and investigational human an organization may nominate one or and supplements existing policy for drug products for use in the treatment more individuals to serve as a nonvoting industry and FDA staff regarding the use of neurologic diseases. industry representative. Contact of public warnings and public notification. N. Pharmaceutical Science and Clinical information, current curriculum vitae, Pharmacology Advisory Committee and the name of the committee of DATES: The announcement of the interest should be sent to the FDA guidance is published in the Federal Reviews and evaluates scientific, Advisory Committee Membership Register on February 8, 2019. clinical, and technical issues related to Nomination Portal (see ADDRESSES) the safety and effectiveness of drug ADDRESSES: You may submit either within 30 days of publication of this products for use in the treatment of a electronic or written comments on broad spectrum of human diseases. document (see DATES). FDA will forward Agency guidances at any time as all nominations to the organizations follows: O. Pharmacy Compounding Advisory expressing interest in participating in Electronic Submissions Committee the selection process for the committee. Provides advice on scientific, (Persons who nominate themselves as Submit electronic comments in the technical, and medical issues nonvoting industry representatives will following way: • concerning drug compounding. not participate in the selection process.) Federal eRulemaking Portal: https://www.regulations.gov. Follow the P. Psychopharmacologic Drugs Advisory FDA seeks to include the views of instructions for submitting comments. Committee women and men, members of all racial Comments submitted electronically, and ethnic groups, and individuals with Reviews and evaluates available data including attachments, to https:// and without disabilities on its advisory concerning the safety and effectiveness www.regulations.gov will be posted to of marketed and investigational human committees and, therefore, encourages the docket unchanged. Because your drug products for use in the practice of nominations of appropriately qualified comment will be made public, you are psychiatry and related fields. candidates from these groups. solely responsible for ensuring that your This notice is issued under the comment does not include any Q. Pulmonary-Allergy Drugs Advisory Federal Advisory Committee Act (5 confidential information that you or a Committee U.S.C. app. 2) and 21 CFR part 14, third party may not wish to be posted, Reviews and evaluates available data relating to advisory committees. such as medical information, your or concerning the safety and effectiveness anyone else’s Social Security number, or
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confidential business information, such except in accordance with 21 CFR 10.20 part 7, subpart C, Draft Guidance for as a manufacturing process. Please note and other applicable disclosure law. For Industry and FDA staff’’ and gave that if you include your name, contact more information about FDA’s posting interested parties an opportunity to information, or other information that of comments to public dockets, see 80 submit comments by March 20, 2018, identifies you in the body of your FR 56469, September 18, 2015, or access for us to consider before beginning work comments, that information will be the information at: https://www.gpo.gov/ on the final version of the guidance. We posted on https://www.regulations.gov. fdsys/pkg/FR-2015-09-18/pdf/2015- • received comments on the draft If you want to submit a comment 23389.pdf. guidance. We considered every with confidential information that you Docket: For access to the docket to comment and made changes, where do not wish to be made available to the read background documents or the appropriate. The guidance announced public, submit the comment as a electronic and written/paper comments in this notice finalizes the draft written/paper submission and in the received, go to https:// guidance dated January 17, 2018. manner detailed (see ‘‘Written/Paper www.regulations.gov and insert the Submissions’’ and ‘‘Instructions’’). docket number, found in brackets in the The guidance establishes official guidance for industry and FDA staff Written/Paper Submissions heading of this document, into the ‘‘Search’’ box and follow the prompts regarding the use, content, and Submit written/paper submissions as and/or go to the Dockets Management circumstances for issuance of public follows: Staff, 5630 Fishers Lane, Rm. 1061, warnings and public notification of • Mail/Hand Delivery/Courier (for Rockville, MD 20852. recalls under 21 CFR part 7, subpart C. written/paper submissions): Dockets You may submit comments on this The intent of the guidance is to increase Management Staff (HFA–305), Food and guidance at any time (see 21 CFR Drug Administration, 5630 Fishers and expedite the appropriate and 10.115(g)(5)). accurate use of public warnings and Lane, Rm. 1061, Rockville, MD 20852. Submit written requests for single • For written/paper comments public notification and to increase copies of the guidance to the Office of submitted to the Dockets Management public health protection by better Strategic Planning and Operational Staff, FDA will post your comment, as informing the public about violative Policy, Office of Regulatory Affairs, well as any attachments, except for products being recalled. The guidance Food and Drug Administration, 12420 information submitted, marked and clarifies and supplements existing Parklawn Dr., Element Building, identified, as confidential, if submitted policy for industry and FDA staff Rockville, MD 20857. Send one self- as detailed in ‘‘Instructions.’’ regarding the use of public warnings addressed adhesive label to assist that Instructions: All submissions received and public notification. must include the Docket No. FDA– office in processing your requests. See 2016–D–3548 for ‘‘Public Warning and the SUPPLEMENTARY INFORMATION section II. Paperwork Reduction Act of 1995 for electronic access to the guidance Notification of Recalls ’’ Received This guidance refers to previously comments will be placed in the docket document. approved collections of information that and, except for those submitted as FOR FURTHER INFORMATION CONTACT: For are subject to review by the Office of ‘‘Confidential Submissions,’’ publicly questions or information regarding this viewable at https://www.regulations.gov document, contact Chris Henderson, Management and Budget (OMB) under or at the Dockets Management Staff Office of Regulatory Affairs, Office of the Paperwork Reduction Act of 1995 between 9 a.m. and 4 p.m., Monday Strategic Planning and Operational (44 U.S.C. 3501–3520). Any collection through Friday. Policy, Human and Animal Food Policy of information, such as a firm’s public • Confidential Submissions—To Branch, Food and Drug Administration, warning (21 CFR 7.42(b)(2)), has been submit a comment with confidential 12420 Parklawn Dr., Rockville, MD approved under OMB control number information that you do not wish to be 20857, 240–402–8186, 0910–0249. made publicly available, submit your [email protected]. III. Electronic Access comments only as a written/paper SUPPLEMENTARY INFORMATION: submission. You should submit two Persons with access to the internet I. Background copies total. One copy will include the may obtain the guidance at either information you claim to be confidential We are announcing the availability of https://www.fda.gov/Safety/Recalls/ with a heading or cover note that states a guidance for industry and FDA staff default.htm or https:// ‘‘THIS DOCUMENT CONTAINS entitled ‘‘Public Warning and www.regulations.gov. Use the FDA CONFIDENTIAL INFORMATION.’’ The Notification of Recalls under 21 CFR website listed in the previous sentence Agency will review this copy, including part 7, subpart C.’’ We are issuing this to find the most current version of the the claimed confidential information, in guidance consistent with our good guidance. its consideration of comments. The guidance practices regulation (21 CFR second copy, which will have the 10.115). The guidance represents the Dated: January 16, 2019. claimed confidential information current thinking of FDA on this topic. Leslie Kux, redacted/blacked out, will be available It does not establish any rights for any Associate Commissioner for Policy. for public viewing and posted on person and is not binding on FDA or the [FR Doc. 2019–01603 Filed 2–7–19; 8:45 am] https://www.regulations.gov. Submit public. You can use an alternative BILLING CODE 4164–01–P both copies to the Dockets Management approach if it satisfies the requirements Staff. If you do not wish your name and of the applicable statutes and contact information to be made publicly regulations. This guidance is not subject available, you can provide this to Executive Order 12866. information on the cover sheet and not In the Federal Register of January 19, in the body of your comments and you 2018 (83 FR 2758), we made available must identify this information as a draft guidance for industry and FDA ‘‘confidential.’’ Any information marked Staff entitled ‘‘Public Warning and as ‘‘confidential’’ will not be disclosed Notification of Recalls under 21 CFR
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DEPARTMENT OF HEALTH AND sunscreen final rule; § 201.327 (21 CFR disclosure) going forward without HUMAN SERVICES 201.327)). In addition to establishing additional burden. This one-time testing testing requirements, the 2011 would need to be conducted within the Food and Drug Administration sunscreen final rule lifted the delay of first 3 years after publication of the 2011 implementing the prior 1999 sunscreen sunscreen final rule for all OTC [Docket No. FDA–2011–N–0449] final rule (published in the Federal sunscreens covered by that rule. Agency Information Collection Register of May 21, 1999 (64 FR 27666), We determined that the third-party Activities; Submission for Office of and stayed in the Federal Register of disclosure burden by manufacturers of Management and Budget Review; December 31, 2001 (66 FR 67485), from OTC sunscreens covered by the 2011 Comment Request; Sun Protection complying with the 1999 Drug Facts sunscreen rule was based on: (1) An Factor Labeling and Testing labeling final rule (published in the estimate of the time for reviewing Requirements for Over-the-Counter Federal Register of March 17, 1999 (64 instructions, searching existing data Sunscreen Drug Products FR 13254)), in which we amended our sources, gathering and maintaining the regulations governing requirements for data needed, and completing and AGENCY: Food and Drug Administration, human drug products to establish reviewing each collection of HHS. standardized format and content information; (2) the conduct of SPF ACTION: Notice. requirements for the labeling of all testing based on the estimated number marketed OTC drug products in part 201 of existing formulations; (3) an estimate SUMMARY: The Food and Drug (21 CFR part 201). Specifically, the 1999 of the time to relabel currently marketed Administration (FDA) is announcing Drug Facts labeling final rule added new OTC sunscreens containing specified that a proposed collection of § 201.66 (21 CFR 201.66) to part 201. ingredients and marketed without information has been submitted to the Section 201.66 establishes content and approved applications; and (4) testing Office of Management and Budget format requirements for the Drug Facts and labeling of new products (OMB) for review and clearance under portion of OTC drug product labels. We introduced each year. The estimate for the Paperwork Reduction Act of 1995. specifically exempted OTC sunscreen this burden in the 2011 60-day notice DATES: Fax written comments on the products from complying with the 1999 was a total of 30,066 hours in years one collection of information by March 11, Drug Facts labeling final rule until we and two and a total of 966 in each 2019. lifted the stay of the 1999 sunscreen subsequent year. final rule. The 2011 sunscreen final rule All currently marketed OTC ADDRESSES: To ensure that comments on became effective December 17, 2012, for sunscreen drug products are already the information collection are received, sunscreen products with annual sales of required to comply with the SPF OMB recommends that written $25,000 or more and December 17, labeling requirements specified by the comments be faxed to the Office of 2013, for sunscreen products with 2011 sunscreen final rule. However, our Information and Regulatory Affairs, annual sales of less than $25,000 when original estimate also included the OMB, Attn: FDA Desk Officer, Fax: 202– burden of new products introduced _ we published an extension date notice 395–7285, or emailed to oira in the Federal Register of May 11, 2012 each year. We estimated that as many as [email protected]. All (77 FR 27591) (2012 extension date 60 new OTC sunscreen products stock comments should be identified with the notice). keeping units (SKUs) may be introduced OMB control number 0910–0717. Also each year, which must be tested and include the FDA docket number found SPF Labeling and Testing for OTC labeled with the SPF value determined in brackets in the heading of this Sunscreens Containing Specified Active in the test. We estimated that the 60 document. Ingredients and Marketed Without new sunscreen SKUs represent 39 new Approved Applications FOR FURTHER INFORMATION CONTACT: formulations. The burden for testing and JonnaLynn Capezzuto, Office of In the Federal Register of June 17, labeling these formulations was Operations, Food and Drug 2011 (76 FR 35678), we published a 60- estimated at 30 hours per year. day notice requesting public comment Administration, Three White Flint Drug Facts Labeling for OTC Sunscreens North, 10A–12M, 11601 Landsdown St., on the collection of information North Bethesda, MD 20852, 301–796– regarding SPF labeling and testing Because the 2011 sunscreen final rule 3794, [email protected]. requirements for OTC sunscreen also lifted the delay of implementing the products containing specified Drug Facts regulations (§ 201.66) for SUPPLEMENTARY INFORMATION: In ingredients and marketed without OTC sunscreens, the rule also modified compliance with 44 U.S.C. 3507, FDA approved applications (2011 60-day the information collection associated has submitted the following proposed notice). In that notice, we stated that with § 201.66 (currently approved under collection of information to OMB for § 201.327(a)(1) requires the principal OMB control number 0910–0340) and review and clearance. display panel (PDP) labeling of a added a third-party disclosure burden SPF Labeling and Testing Requirements sunscreen covered by the 2011 resulting from requiring OTC sunscreen for OTC Sunscreen Products—21 CFR sunscreen final rule to include the SPF products to comply with Drug Facts 201.327(a)(1) and (i), 21 CFR 201.66(c) value determined by conducting the regulations. In the 1999 Drug Facts and (d) SPF test outlined in § 201.327(i). labeling final rule, we amended our Therefore, that provision resulted in an regulations governing requirements for OMB Control Number 0910–0717— information collection with a third- human drug products to establish Extension party disclosure burden for standardized format and content In the Federal Register of June 17, manufacturers of OTC sunscreens requirements for the labeling of all 2011 (76 FR 35620), we published a covered by the 2011 sunscreen rule. We marketed OTC drug products, codified final rule establishing labeling and determined that products need only in § 201.66. This section establishes effectiveness testing requirements for complete the testing and labeling requirements for the Drug Facts portion certain OTC sunscreen products required by the 2011 sunscreen rule of labels on OTC drug products containing specified active ingredients once and then continue to use the requiring such labeling, to include without approved applications (2011 resultant labeling (third-party uniform headings and subheadings,
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presented in a standardized order with Drug Facts labeling requirements in Facts regulations in § 201.66(e). minimum standards for type size and § 201.66 and will incur no further However, we considered this in 2013 other graphical features. Therefore, OTC burden in the 1999 Drug Facts labeling and estimated the burden for an sunscreen products already on the final rule. However, new OTC sunscreen exemption or deferral by considering market at that time incurred a one-time drug products will be subject to a one- the number of exemptions or deferrals burden to comply with the requirements time burden to comply with Drug Facts we have received since publication of in § 201.66(c) and (d). In the 60-day labeling requirements in § 201.66. In the the 1999 Drug Facts labeling final rule notice, the burden was estimated as 2011 60-day notice, we estimated that as (one response) and estimating that a 43,200 hours for existing sunscreen many as 60 new product SKUs marketed request for deferral or exemption would SKUs and 720 hours for new sunscreen each year must comply with Drug Facts require 24 hours to complete. SKUs. regulations. We estimated that these 60 Multiplying the annual frequency of The compliance dates for the 2011 SKUs would be marketed by 30 response (0.125) by the number of hours sunscreen final rule that lifted the delay manufacturers, which will spend per response (24) gives a total response of the § 201.66 labeling implementation approximately 12 hours on each label time for requesting an exemption or data for OTC sunscreen products were based on the most recent estimate used deferral equal to 3 hours. December 17, 2012, for sunscreen for other OTC drug products to comply products with annual sales of $25,000 or with the 1999 Drug Facts labeling final In the Federal Register of August 22, more and December 17, 2013, for rule, including public comments 2018 (83 FR 42509), FDA published a sunscreen products with annual sales of received on this estimate in 2010 that 60-day notice requesting public less than $25,000, respectively, when addressed sunscreens. This is equal to comment on the proposed collection of we published the 2012 extension date 720 hours annually (60 SKUs, 12 hours information. No comments were notice. All currently marketed per SKU). We stated that we do not received. sunscreen products are, therefore, expect any OTC sunscreens to apply for We estimate the burden of this already required to comply with the exemptions or deferrals of the Drug collection of information as follows:
TABLE 1—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN [New sunscreens] 1
Number of Number of disclosures Total annual Average Activity respondents per disclosures burden per Total hours respondent disclosure
Conduct SPF testing in accordance with 20 1.95 39 24...... 936 § 201.327(i) for new sunscreens. Create PDP labeling in accordance with 20 3 60 0.5 (30 minutes) ...... 30 § 201.327(a)(1) for new sunscreen SKUs.
Total ...... 966 1 There are no capital costs or operating and maintenance costs associated with this collection of information.
TABLE 2—ESTIMATED ANNUAL THIRD-PARTY DISCLOSURE BURDEN [Drug facts labeling] 1
Number of Number of disclosures Total annual Average Activity respondents per disclosures burden per Total hours respondent disclosure
Format labeling in accordance with § 201.66(c) 20 3 60...... 12 720 and (d) for new sunscreen SKUs. Request for Drug Facts exemption or deferral 1 0.125 0.125 (7 minutes) ...... 24 3 § 201.66(e).
Total ...... 723 1 There are no capital costs or operating and maintenance costs associated with this collection of information.
We note that these estimates may be Dated: February 4, 2019. DEPARTMENT OF HEALTH AND adjusted in the future as the result of a Lowell J. Schiller, HUMAN SERVICES detailed analysis of sunscreen market Acting Associate Commissioner for Policy. Food and Drug Administration data conducted by FDA as part of the [FR Doc. 2019–01529 Filed 2–7–19; 8:45 am] development of an upcoming proposed BILLING CODE 4164–01–P rule on OTC sunscreen products (RIN [Docket No. FDA–2016–N–0407] 0910–AA01). FDA intends to either or both amend this information collection Pilot Project Program Under the Drug or seek approval of additional Supply Chain Security Act; Program Announcement information collections, as appropriate, concurrent with publication of the AGENCY: Food and Drug Administration, proposed rule. HHS.
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ACTION: Notice. one or more pilot projects, in however, FDA intends to meet with coordination with authorized selected pilot project participants to SUMMARY: The Food and Drug manufacturers, repackagers, wholesale ensure that the learnings from the pilot Administration (FDA or Agency) is distributors, and dispensers, to explore project(s) will be complementary in announcing the start of the Pilot Project and evaluate methods to enhance the informing all stakeholders in the Program Under the Drug Supply Chain safety and security of the development of the electronic, Security Act (DSCSA Pilot Project pharmaceutical distribution supply interoperable system that will go into Program). The DSCSA Pilot Project chain. effect in 2023. FDA encourages potential Program is intended to assist FDA and FDA is establishing the DSCSA Pilot participants to focus their proposed members of the pharmaceutical Project Program to implement section pilot project(s) on the DSCSA distribution supply chain in the 582(j) of the FD&C Act. This program is requirements related to the development of the electronic, intended to assist FDA and members of interoperable, electronic tracing of interoperable system that will identify the pharmaceutical distribution supply products at the package level. and trace certain prescription drugs as chain in the development of the Specifically, the pilot project(s) should they are distributed within the United interoperable electronic system to be focus on the enhanced requirements for States. Under this program, FDA will established by 2023. The 2023 system package-level tracing and verification work with stakeholders to establish one has the potential to reduce diversion of that go into effect in 2023. Such pilot or more pilot projects to explore and drugs distributed domestically as well projects will likely be more useful than evaluate methods to enhance the safety as help deter counterfeit drugs from pilot projects dedicated to lot-level and security of the pharmaceutical entering the supply chain. The pilot tracing. If there is an adequate number distribution supply chain. Participation program will be designed to explore of pilot project submissions, FDA may in the DSCSA Pilot Project Program is issues related to utilizing the product establish more than one pilot project to voluntary and will be open to identifier for product tracing, improving accomplish the goals of the DSCSA Pilot pharmaceutical distribution supply the technical capabilities of the supply Project Program. chain members to apply to the program. chain, identifying the system attributes FDA will ensure that participation that are necessary to implement the A. Products Eligibility reflects the diversity of the supply requirements established under the Pilot projects should focus on chain, including large and small entities DSCSA, and any other issues identified applicable requirements to any from all industry sectors. This notice by FDA (see section 582(j)(2)(B) of the prescription drug that is a ‘‘product’’ establishes the DSCSA Pilot Project FD&C Act). within the meaning of section 581(13) of Program and includes instructions for Particular program goals include: (1) the FD&C Act. FDA anticipates that submitting a request to participate and Identifying the system attributes needed packages and homogenous cases of expectations for program participants. to implement the requirements of product that are part of a pilot project DATES: FDA will be accepting section 582 of the FD&C Act, will generally bear a ‘‘product applications for participation in the particularly the requirement to utilize a identifier’’ as described in sections DSCSA Pilot Project Program beginning product identifier for product tracing 581(14) and 582(a)(9) of the FD&C Act. February 8, 2019 and continuing and verification purposes and (2) FDA may also consider proposed pilot through March 11, 2019. The duration assessing the ability of supply chain projects involving product that may be of the DSCSA Pilot Project Program will members to satisfy the requirements of subject to a waiver, exception or depend on the pilot project(s) accepted section 582 of the FD&C Act; identify, exemption of certain DSCSA into the program and when the projects manage, and prevent the distribution of requirements, products that are are completed. suspect and illegitimate products as grandfathered, in addition to products defined in section 581(21) and 581(8) of that are outside the scope of section FOR FURTHER INFORMATION CONTACT: the FD&C Act, respectively, and 581(13) of the FD&C Act (e.g., over-the- Daniel Bellingham, Office of exchange product tracing information counter medicines) if such project(s) Compliance, Center for Drug Evaluation across the pharmaceutical distribution could further the objectives of the and Research, Food and Drug supply chain in an electronic and DSCSA Pilot Project Program. Administration, 10903 New Hampshire interoperable manner. FDA plans to B. Potential Issues To Examine and Ave., Silver Spring, MD 20993–0002, coordinate with stakeholders to ensure Evaluation Methods To Use in Pilot 301–796–3130, DSCSAPilotProjects@ that pilot projects reflect the diversity of Projects fda.hhs.gov. the pharmaceutical distribution supply SUPPLEMENTARY INFORMATION: chain, including large and small entities On April 5–6, 2016, FDA held a public workshop entitled ‘‘Proposed I. Background from all industry sectors. The DSCSA Pilot Project Program is intended to help Pilot Project(s) Under the Drug Supply On November 27, 2013, the Drug identify and evaluate the most efficient Chain Security Act (DSCSA).’’ This Supply Chain Security Act (DSCSA) processes and/or systems to public workshop provided a forum for (Title II of Pub. L. 113–54) was signed operationalize supply chain security members of the pharmaceutical into law. The DSCSA outlines critical requirements. distribution supply chain to discuss the steps to build an electronic, design objectives of pilot projects interoperable system by November 27, II. The DSCSA Pilot Project Program established by FDA under section 582(j) 2023, that will identify and trace certain FDA is seeking pilot project of the FD&C Act. Based on the prescription drugs as they are participants from the pharmaceutical information gathered at that workshop distributed within the United States. distribution supply chain (e.g., and from the comments submitted to the Section 202 of the DSCSA added authorized manufacturers, repackagers, public docket for the workshop (Docket sections 581 and 582 to the Federal wholesale distributors, and dispensers) No. FDA–2016–N–0407), FDA identified Food, Drug, and Cosmetic Act (FD&C and other stakeholders. FDA expects several potential issues to examine, and Act) (21 U.S.C. 360eee and 360eee–1, potential participants to propose the evaluation methods to use, in pilot respectively). Under section 582(j) of the design and execution of their pilot projects established under the DSCSA FD&C Act, FDA is required to establish project in their submission to FDA; Pilot Project Program. These potential
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issues and evaluation methods are represent FDA’s views or policies methods have been grouped by focus summarized in table 1. This table is regarding the issues described in the areas for the pilot projects. intended only to assist in the design of table. For ease of reference, the potential potential pilot projects; it does not issues to examine and evaluation
TABLE 1—POTENTIAL ISSUES TO EXAMINE AND EVALUATION METHODS TO USE IN PILOT PROJECTS
Pilot project focus area Potential issues to examine Potential evaluation methods
Product Identifier ...... • Processes related to the requirement for manufactur- • Impacts of different representations of the product ers to affix or imprint a product identifier to each identifier on systems or processes: package and homogenous case of product intended —Number of errors. to be introduced in a transaction into commerce. —Time to process. • Methods used to issue and manage serial numbers —Time to reconcile differences. (e.g., including a contract manufacturer’s role if appli- cable or how a repackager associates its product identifier with the product identifier assigned by the original manufacturer). • Different representations for the product identifier (e.g., different formats of the National Drug Code or serial number). Barcodes ...... • Readability of a barcode either printed or affixed to • Barcode read error rates: product, including impact of environmental and —Number of items unnecessarily quarantined or human factors. held up. • Application of linear barcode and 2D barcode on —Time and resource impacts. product. • Distinguishing which barcode to read/use ...... Interoperability ...... • Process and technical challenges due to a variety of • For both decentralized and centralized models, time potential solutions (e.g., type of database used and implications: system architecture for exchanging information —To investigate suspect and illegitimate products. among trading partners). —For notifications required within the statutory • Maintaining the integrity of information contained in timelines. the barcode of serialized product throughout the dis- —Related to scaling up from pilot to full production. tribution supply chain (e.g., a trading partner goes • Product tracing information (across multiple part- out of business or one acquires another business). ners): • Different methods for exchanging information (e.g., —Capability to retrieve the information. the use of Electronic Data Interchange, Electronic —Accuracy of the information (within and between Product Code Information Services, and other solu- systems). tions separately). • Security and access: —Evaluate and document access levels for trading partners. Data/Database/System • Data quality from beginning to end of the product • System Performance and Effectiveness: Issues. lifecycle and vice versa. —Time to access and use product tracing informa- • System performance when full or partially loaded tion once that data is received into a system. with data. —Quality of product tracing information. • Data format or processes for data transfer: ...... —Number of breaches to system. —Use of technical standards for defining data at- —Number of attempts to breach the system that tributes to enable interoperable transfers. were prevented or minimized. —Methods to handle the ‘‘master data’’ (product- • Data and product flow. specific data) and transaction data separately to —Number of unsuccessful attempts to access data minimize ‘‘master data’’ redundancy. and operational impacts. • Integration into individual/company data systems ...... —Number of system interactions within one, and • Control and access to data by trading partners, FDA, amongst multiple, trading partners. or other federal or state officials (data governance). —Time and resource changes on operations when • Ability of the system to record product status (e.g., to data and product not moving at same time (e.g., indicate expired, illegitimate, in error, quarantined) at product arrives before data arrives). all packaging levels. —Time for location/ownership/status changes to be reflected in the system. —Time of product flow delays and associated costs due to system or data problems. Aggregation/Disaggregation • Multiple levels of adoption of inference, by different • Number of system and product interactions within trading partners. Impact of inference gaps, changes one, and amongst multiple, trading partners. or errors in data, particularly downstream when • Time required to conduct aggregate/disaggregate op- searching or examining the data; how can errors be erations and transactions. corrected. • Accuracy of aggregation data (measure error counts). • Time to gather aggregation/disaggregation data for investigations and notifications. • Time to resolve errors in data.
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TABLE 1—POTENTIAL ISSUES TO EXAMINE AND EVALUATION METHODS TO USE IN PILOT PROJECTS—Continued
Pilot project focus area Potential issues to examine Potential evaluation methods
Verification/Notification ...... • Process for investigation of suspect or illegitimate • Response times: Current vs. future process. product, including any communication or coordina- • Time needed to obtain product tracing information to tion:. respond to a request for verification. —Making and responding to verification requests .. • Time needed to make, respond to, or terminate a no- —Making, responding to, and termination of notifi- tification. cations. • Time to gather product tracing information to support —Responding to requests for information ...... an investigation for a suspect or illegitimate product, —Testing boundaries of the system ...... or a recall. • Percentage of items that are successfully verified vs. those that were targeted for verification. • Number of connections/queries needed to gather product tracing information in response to a verification or notification request. Exception Handling/Errors/ • Identify ‘honest errors’ (e.g., over/under shipments, • Percent of errors detected: Compare exceptions in- Inconsistencies. clerical errors, or aggregation errors). troduced vs. exceptions detected: • Correcting ‘honest errors’ ...... —Identify the first step in the process where an error is detected. • Number of new or changed processes needed to ac- complish DSCSA goals: —Time and resource impacts. • ‘Honest Errors’: —Number of items unnecessarily quarantined and held up. —Time required to detect and correct errors. —Impact on trading partners to correct errors. • Barcode read error rates: —Number of items unnecessarily quarantined or held up. —Time and resource impacts. Special Scenarios ...... • Situations when data and product do not move to- • Error rates for special processes: gether. —Number of items unnecessarily quarantined or • Situations when serialized product are sold and dis- held up. tributed along with non-serialized product. —Time and resource impacts. • Accuracy of linkage between original manufacturer product identifier and repackager-issued product identifier.
In addition to the information in table establishing pilot projects, FDA also • Contact information for the submitter 1, workshop participants and comments recognizes that a single pilot project is or point of contact, if different from submitted to the public docket unlikely to satisfy every factor. the submitter (name, mailing address, recommended factors that FDA should Accordingly, requests to establish a phone number, email address) take into consideration when pilot project need not satisfy all the • Names of all partnering entities that establishing pilot projects. The factors listed in this document. would participate in the pilot project recommended factors include the extent (name of company and name of C. Instructions for Submitting a Request to which the pilot projects: company representative) To Participate in the DSCSA Pilot • Represent the mix of products and • Type(s) of each partnering entity Project Program levels of packaging in the supply participating in the pilot project (e.g., chain manufacturer, repackagers, wholesale • Stakeholders interested in Include a diverse set of supply chain participating in the DSCSA Pilot Project distributor, dispenser, third-party stakeholders (types and sizes) and Program may submit a request to logistics provider, solution provider, transaction types trade association, etc.); Partnering • participate by email to Use adaptive design to make the pilot [email protected]. For a entities may include authorized projects more efficient. group of entities that partner to trading partners or other supply chain • Target known weaknesses in the participate in a pilot project, only one stakeholders supply chain • Number of employees for each • Can be completed in such a time submission and one point-of-contact for partnering entity to reflect company frame to provide useful information the proposed pilot project should be provided in the request to participate. size for trading partners • • Evaluate human factors that could Requests to participate may also Proposed start and finish dates of the present implementation challenges consider other ideas for a pilot project pilot project • Simulate illegitimate products/ that are not included in this notice. • Commitment to start the pilot project within 4 months of receiving a letter transactions to test a process or D. Submission Content for Requesting system of acceptance from FDA • To Participate in the DSCSA Pilot • Document costs to implement, use, Project Program Product(s) that will be used in the and maintain piloted solutions pilot project Although the Agency intends to take The following information should be • Location(s) where pilot project will be these factors into consideration when included in the request: performed (facility address)
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• Description of the proposed pilot 1. Progress Report(s) I. Recordkeeping project, including, but not limited to, Any records generated by a the goals, objectives, processes that Each pilot project program participant is expected to provide reports on the participant while conducting a pilot will be studied, and evaluation project should be maintained in methods progress of its pilot project to FDA. The progress reports are intended to capture accordance with the participant’s E. Initiation and Duration of Pilot the ongoing work during the pilot normal recordkeeping practices. For Projects project, including but not limited to, pilot projects that involve partnering The selected participants should be status or results, changes, challenges, entities, the partnering entities should ready to start their pilot project within and/or lessons learned. FDA will work decide who is responsible for the 4 months of receiving a letter of with participants to develop an records generated in the course of acceptance from FDA into the program. appropriate schedule for the submission conducting the pilot project. FDA The duration of a pilot project should of progress reports based on the design recommends that participants maintain not exceed 6 months. FDA may consider and duration of the pilot project. the progress reports and final report for a pilot project with a later start date or Because the duration of a pilot project its pilot project for at least 1 year after longer duration depending on the should not exceed 6 months, the completion of the pilot project. proposed goal(s) and objective(s). Each frequency of progress reports will vary III. Paperwork Reduction Act of 1995 pilot project is expected to be completed based on the length of the individual This notice contains information within the proposed duration time pilot project. Pilot projects of relatively collection provisions that are subject to period. This time period does not shorter duration may result in shorter review by the Office of Management and include an additional 30 days for time intervals between progress reports. Budget (OMB) under the Paperwork completion of a final report (see Section For example, FDA may ask for monthly Reduction Act of 1995 (44 U.S.C. 3501– II.G. Reports). progress reports for a 6-month pilot 3520). The collection of information in project, however for a 1-month pilot F. Participation in Pilot Projects this notice was approved under OMB project, FDA may ask for weekly control number 0910–0859. Each participant that is selected into progress reports. the program will be responsible for Dated: February 4, 2019. conducting its pilot project. A group of 2. Final Report Lowell J. Schiller, entities (e.g., members of the Within 30 to 45 business days of Acting Associate Commissioner for Policy. pharmaceutical distribution supply completing a pilot project, each [FR Doc. 2019–01561 Filed 2–7–19; 8:45 am] chain or other stakeholders, including participant is expected to provide a final BILLING CODE 4164–01–P trade associations) that partners to report to FDA that captures the conduct a pilot project will be description, objectives, methods, considered a single participant for evaluation, costs and key findings, and DEPARTMENT OF HEALTH AND purposes of the DSCSA Pilot Project lessons learned from the project. Timely HUMAN SERVICES Program. The participant will be completion of pilot projects and the responsible for the funding and Request for Information (RFI): final report will support FDA’s DSCSA resources necessary to conduct the pilot Improving Efficiency, Effectiveness, implementation, including the statutory project, and for determining each Coordination, and Accountability of requirements under section 582(j) of the partner’s role and responsibility in its HIV and Viral Hepatitis Prevention, FD&C Act to consider information from pilot project. Care, and Treatment Programs Prior to launch of a pilot project, FDA pilot projects in the development of intends to hold a design strategy guidances for unit-level tracing and AGENCY: Office of HIV/AIDS and meeting with the selected pilot standards for the interoperable data Infectious Disease Policy, Office of the participant(s) to review the goal(s) and exchange in section 582(h)(3) and (4) of Assistant Secretary for Health, Office of objective(s)s for the pilot project and the FD&C Act. FDA may also request the Secretary, Department of Health and discuss the project plans and other that the participants meet with the Human Services. pertinent details. FDA also expects pilot Agency upon the completion of their ACTION: Notice. project participants to submit reports on pilot project or the final report. SUMMARY: Both the National HIV/AIDS the progress of their pilot projects to H. Final DSCSA Pilot Project Program Strategy (NHAS) and the National Viral FDA (see Section II.G. Reports). Report Hepatitis Action Plan (NVHAP) expire Participants should evaluate their pilot in 2020. The Department of Health and projects using the evaluation methods To ensure that all supply chain Human Services (HHS) Office of HIV/ they identified during the pilot project members benefit from the information AIDS and Infectious Disease Policy design process. generated by the DSCSA Pilot Project Program, FDA intends to make the (OHAIDP), in collaboration with federal G. Reports following information about each pilot partners, is leading development of the Each pilot project is expected to be project of the program available to the next iterations of these two separate and completed within the proposed duration public in a final program report: (1) The distinct national strategies. To help time period, and FDA asks that all names and industry sector(s) of the pilot inform the next iterations of the NHAS participants submit periodic progress project participant(s); (2) the pilot and NVHAP, HHS seeks input from reports to FDA while the pilot project is project’s objectives and evaluation external stakeholders for improving being conducted, in addition to methods; (3) the duration of the pilot efficiency, effectiveness, coordination, submitting a final report after project; and (4) the key findings and and accountability of HIV and viral completing the pilot project. These lessons learned from the pilot project. hepatitis prevention, care, treatment, reports will provide insight into the FDA intends to post the information and cure policies, services, and systems and process needed to comply related to the DSCSA Pilot Project programs. with certain DSCSA requirements for Program and the final program report on DATES: To be assured consideration, enhanced drug distribution security. FDA’s website. comments must be received at the
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address provided below, no later than structure, goals, and indicators, key following summary of a proposed 5:00 p.m. ET on March 11, 2019. areas of focus and/or populations, and collection for public comment. ADDRESSES: Electronic responses are annual reporting processes by federal DATES: Comments on the ICR must be strongly preferred and may be addressed agencies. This may also include areas of received on or before March 11, 2019. to [email protected]. Written the current strategy that should be ADDRESSES: Submit your comments to responses should be addressed to: U.S. scaled back or areas of the current [email protected] or via Department of Health and Human strategy that should be expanded or facsimile to (202) 395–5806. Services, Room L001, 330 C Street SW, scaled up. FOR FURTHER INFORMATION CONTACT: Washington, DC 20024. Attention HIV/ (1b) What components of the NVHAP Sherrette Funn, [email protected] Viral Hepatitis RFI. do you think should be maintained? or (202) 795–7714. When submitting FOR FURTHER INFORMATION CONTACT: What changes should be made to the comments or requesting information, Nathan Fecik, MPH regarding HIV or NVHAP? This may include changes to please include the document identifier Corinna Dan, RN, MPH regarding viral the structure, goals, and indicators, key 0937–New–30D and project title for hepatitis, in the Office of HIV/AIDS and areas of focus and/or populations, and reference. Infectious Disease Policy, (202) 795– annual reporting processes by federal SUPPLEMENTARY INFORMATION: Interested 7697. agencies. This may also include areas of the current strategy that should be persons are invited to send comments SUPPLEMENTARY INFORMATION: The regarding this burden estimate or any NHAS and NVHAP have served as scaled back or areas of the current strategy that should be expanded or other aspect of this collection of roadmaps for the national response to information, including any of the scaled up. HIV and viral hepatitis in the United following subjects: (1) The necessity and (2a) Specific recommendations you States. They have been of great value in utility of the proposed information think will improve the efficiency, establishing and monitoring indicators collection for the proper performance of effectiveness, accountability, and of progress toward important national the agency’s functions; (2) the accuracy impact of the national response to HIV. public health goals, setting expectations, of the estimated burden; (3) ways to (2b) Specific recommendations you identifying opportunities for enhance the quality, utility, and clarity think will improve the efficiency, stakeholder engagement across sectors, of the information to be collected; and effectiveness, accountability, and and improving transparency and (4) the use of automated collection impact of the national response to viral accountability. As a nation, we have techniques or other forms of information hepatitis. made significant progress toward technology to minimize the information (3a) What specific actions should the achieving the goals for both strategies, collection burden. but ongoing challenges and disparities federal government and others take to Title of the Collection: SMARTool remain. improve the coordination of funding Pilot Replication Project. The NHAS and the NVHAP were and delivery of HIV services? Type of Collection: OMB No. 0937– developed with input from nonfederal (3b) What specific actions should the NEW—Office of the Assistant Secretary stakeholders who are committed to federal government and others take to for Health (OASH). working toward shared national goals improve the coordination of funding Abstract: The Office of the Assistant and aligning efforts across sectors. The and delivery of viral hepatitis services? Secretary for Health (OASH), U.S. strategies allow flexibility to adapt to: (4a) What monitoring and evaluation Department of Health and Human Scientific advances; changes in the strategies would further improve HIV Services (HHS), is requesting approval needs of people with and at-risk for prevention, care, and treatment? by OMB of a new information collection these infections; emerging threats to our (4b) What monitoring and evaluation request. OASH is updating the Center progress toward eliminating HIV and strategies would further improve viral for Relationship Education’s Systematic viral hepatitis, such as the opioid crisis; hepatitis prevention, care, and Method for Assessing Risk-Avoidance and other factors including social treatment? Tool (SMARTool), a tool for sexual risk determinants of health and stigma that Dated: January 29, 2019. avoidance (SRA) curriculum developers affect the health of people with and at Tammy R. Beckham, and implementing organizations (IOs) to risk for these infections. Director, Office of HIV/AIDS and Infectious ensure that their SRA curricula are This request for information seeks Disease Policy. grounded in evidence. In an effort to public input on improving efficiency, [FR Doc. 2019–01695 Filed 2–7–19; 8:45 am] assess the SMARTool’s impact, OASH effectiveness, coordination, and BILLING CODE 4150–28–P aims to conduct a formative evaluation accountability of HIV and viral hepatitis to (1) provide preliminary evidence on prevention, care, treatment, and cure the effectiveness of SRA curricula that policies, services, and programs at all DEPARTMENT OF HEALTH AND are aligned with the SMARTool, (2) levels and for all types of stakeholders. HUMAN SERVICES derive lessons learned to improve the The feedback received will inform the implementation of SRA curricula, and next edition of two separate strategies: [Document Identifier: OS–0937–New] (3) develop and test baseline and follow- (1) The National HIV/AIDS Strategy; Agency Information Collection up questionnaires that assess SRA and (2) the National Viral Hepatitis Request: 30-Day Public Comment program effects on the key SMARTool Action Plan. Please indicate the national Request constructs. The evaluation will be strategy to which each comment conducted with an estimated four IOs. applies. If submitting comments for both AGENCY: Office of the Secretary, HHS. The evaluation will use quantitative and strategies please submit two separate ACTION: Notice. qualitative methods and will include responses. Topics of interest include, both a process evaluation and an but are not limited to, the following: SUMMARY: In compliance with the outcome evaluation. (1a) What components of the NHAS requirement of the Paperwork Need and Proposed Use of the do you think should be maintained? Reduction Act of 1995, the Office of the Information: To enhance the rigor of the What changes should be made to the Secretary (OS), Department of Health evaluation, a comparison group will be NHAS? This may include changes to the and Human Services, is publishing the identified for each IO, if possible. This
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would enable an assessment of whether are necessary for the interpretation of Likely Respondents: Respondents will any changes identified in individual outcome findings and to inform efforts include participants in each of the IOs’ and contextual risk and protective to improve program implementation. SRA programs (9th or 10th grade youth), factors in the intervention group differ Depending on their performance on their parent(s), program facilitators, from those in the comparison group. measures of reliability and validity, the representatives of schools participating The process evaluation will describe in baseline and follow-up questionnaires in the program (e.g., school principals), detail each IO’s program, how it was may be made available to organizations and school or school district delivered, and factors that may have planning to evaluate curricula that are administrative staff. influenced the success of the program’s aligned with the SMARTool. implementation. Process evaluation data
EXHIBIT 1—TOTAL ESTIMATED ANNUALIZED BURDEN HOURS
Average Number of Number of burden per Total burden Respondents Form name respondents responses per response (hours) respondent (in hours)
Outcome Evaluation
Parents ...... Parental consent ...... 2,356 1 5/60 196 High school students ...... Youth Assent ...... 2,356 1 5/60 196 Baseline survey ...... 2,356 1 30/60 1,178 Follow-up survey ...... 2,120 1 30/60 1,060 School or school district administra- Classroom roster report ...... 24 1 120/60 48 tive staff.
Process Evaluation
Program Facilitators ...... Process Evaluation Facilitator Ses- 48 20 15/60 240 sion Log. Program Facilitators ...... Process Evaluation Facilitator Sur- 38 1 25/60 16 vey. High school students ...... Process Evaluation Participant Sur- 1,060 1 10/60 177 vey. Program facilitators, site representa- Process Evaluation Key Informant 24 1 60/60 24 tives. Interviews. Teachers ...... Attendance form ...... 48 20 5/60 80
Total burden ...... 3,135
Terry Clark, DATES: The meeting will be held on SUPPLEMENTARY INFORMATION: Pursuant Office of the Secretary, Paperwork Reduction Monday, March 25, 2019. The to Section 2101 of the Public Health Act Reports Clearance Officer. confirmed meeting times and agenda Service Act (42 U.S.C. 300aa–1), the [FR Doc. 2019–01595 Filed 2–7–19; 8:45 am] will be posted on the NVAC website at Secretary of HHS was mandated to BILLING CODE 4150–34–P http://www.hhs.gov/nvpo/nvac/ establish the National Vaccine Program meetings/index.html as soon as they to achieve optimal prevention of human become available. infectious diseases through DEPARTMENT OF HEALTH AND ADDRESSES: Instructions regarding immunization and to achieve optimal HUMAN SERVICES attending this meeting will be posted prevention against adverse reactions to one week prior to the meeting at: http:// Meeting of the National Vaccine vaccines. The NVAC was established to www.hhs.gov/nvpo/nvac/meetings/ Advisory Committee provide advice and make index.html. Pre-registration is required recommendations to the Director of the AGENCY: National Vaccine Program for members of the public who wish to National Vaccine Program on matters Office, Office of the Assistant Secretary attend the meeting and who wish to related to the Program’s responsibilities. for Health, Office of the Secretary, participate in the public comment The Assistant Secretary for Health Department of Health and Human session. Individuals who wish to attend serves as Director of the National Services. the meeting and/or participate in the Vaccine Program. public comment session should register ACTION: Notice. at http://www.hhs.gov/nvpo/nvac/ During the March 2019 NVAC meeting, sessions will consist of SUMMARY: As stipulated by the Federal meetings/index.html. Advisory Committee Act, the FOR FURTHER INFORMATION CONTACT: Ann presentations on reducing disparities, Department of Health and Human Aikin, Acting Designated Federal removing barriers to adult Services (HHS) is hereby giving notice Officer, at the National Vaccine Program immunization, and reducing financial that a meeting is scheduled to be held Office, U.S. Department of Health and burdens to vaccination. Please note that of the National Vaccine Advisory Human Services, Room 715H, Hubert H. agenda items will be related to the Committee (NVAC). The meeting will be Humphrey Building, 200 Independence charge of the Committee and are subject open to the public via teleconference; a Avenue SW, Washington, DC 20201. to change as priorities dictate. public comment session will be held Phone: (202) 690–5566; email: nvac@ Information on the final meeting agenda during the meeting. hhs.gov. will be posted prior to the meeting on
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the NVAC website: http://www.hhs.gov/ ADDRESSES: Submit your comments to grantee and partner experiences with nvpo/nvac/index.html. [email protected] or via the initiative; barriers and facilitators to Members of the public will have the facsimile to (202) 395–5806. project implementation; sustainability opportunity to provide comments at the FOR FURTHER INFORMATION CONTACT: of grantee efforts; and anecdotal or other NVAC meeting during the public Sherrette Funn, [email protected] evidence of reductions in campus comment periods designated on the or (202) 795–7714. When submitting sexual violence. Interviews conducted agenda. Public comments made during comments or requesting information, with individuals representing the the meeting will be limited to three please include the document identifier grantee organizations and campus minutes per person to ensure time is 0990–New–30D and project title for partners, and will occur once per allotted for all those wishing to speak. reference. respondent in the spring of 2019. Individuals are also welcome to submit SUPPLEMENTARY INFORMATION: The CDC estimates that 23 million their written comments. Written Interested persons are invited to send comments women have experienced completed or comments should not exceed three attempted rape in their lifetimes. pages in length. Individuals submitting regarding this burden estimate or any other aspect of this collection of (National Intimate Partner and Sexual written comments should email their Violence Survey, https://www.cdc.gov/ comments to the National Vaccine information, including any of the following subjects: (1) The necessity and mmwr/preview/mmwrhtml/ss630 Program Office ([email protected]) at least 8a1.htm). A September 2015 five business days prior to the meeting. utility of the proposed information collection for the proper performance of Association of American Universities Ann Aikin, the agency’s functions; (2) the accuracy (AAU) survey of 150,000 students across Acting Designated Federal Officer. of the estimated burden; (3) ways to 27 colleges and universities indicated that 23% of female undergraduate [FR Doc. 2019–01694 Filed 2–7–19; 8:45 am] enhance the quality, utility, and clarity students reported experiencing sexual BILLING CODE 4150–44–P of the information to be collected; and (4) the use of automated collection assault since enrolling in college (AAU techniques or other forms of information Campus Climate Survey on Sexual DEPARTMENT OF HEALTH AND technology to minimize the information Assault and Sexual Misconduct, https:// HUMAN SERVICES collection burden. www.aau.edu/sites/default/files/%40% Title of the Collection: Cross-Site 20Files/Climate%20Survey/Executive% [Document Identifier: HHS–OS–0990– 20Summary%2012-14-15.pdf). College Sexual Assault Policy] Evaluation on the Women’s Health College Sexual Assault Policy and The College Sexual Assault Policy, Agency Information Collection Prevention Initiative. and Prevention Initiative of the Request: 30-Day Public Comment Type of Collection: New. Department of Health and Human Request OMB No.: 0990–College Sexual Services, Office of Women’s Health, has Assault Policy; Office of Women’s three main goals: (1) Disseminate sexual AGENCY: Office of the Secretary, HHS. Health within OS. assault policy and prevention ACTION: Notice. Abstract: The Office of Women’s information to organizations in a Health is seeking an approval by OMB position to influence and implement SUMMARY: In compliance with the on a new information collection, Cross- policies and practices at post-secondary requirement of the Paperwork Site Evaluation on the Women’s Health schools; (2) provide technical assistance Reduction Act of 1995, the Office of the College Sexual Assault. The purpose of to post-secondary schools to establish Secretary (OS), Department of Health this data collection is to gather policies and practices that prevent and Human Services, is publishing the qualitative data across the nine grantee sexual assault; and (3) assess the success following summary of a proposed organizations and partners via of policy establishment and sustained collection for public comment. interviews to gain a full understanding prevention strategies enacted by DATES: Comments on the ICR must be of grantee and partner perceived success partnering organizations and post- received on or before March 11, 2019. over the course of the three-year project; secondary schools.
ESTIMATED ANNUALIZED BURDEN TABLE
Average Number of Number of burden per Total burden Type of respondent respondents responses per response hours respondent (in hours)
Grantee organization representative ...... 9 1 1 9 Partner campus representative ...... 36 1 1 36
Total ...... 45
Terry Clark, DEPARTMENT OF HEALTH AND Assistant Secretary for Health, Office of Office of the Secretary, Paperwork Reduction HUMAN SERVICES the Secretary, Department of Health and Act Reports Clearance Officer. Human Services. [FR Doc. 2019–01596 Filed 2–7–19; 8:45 am] Announcement of Meeting of the ACTION: Notice. BILLING CODE 4150–33–P Secretary’s Advisory Committee on National Health Promotion and Disease SUMMARY: The U.S. Department of Prevention Objectives for 2030 Health and Human Services (HHS) announces the next two meetings of the AGENCY: Office of Disease Prevention Secretary’s Advisory Committee on and Health Promotion, Office of the National Health Promotion and Disease
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Prevention Objectives for 2030 to develop the next iteration of national Committee Act (FACA), Public Law 92– (Committee) regarding the development health promotion and disease 463, as amended (5 U.S.C., App.) which of national health promotion and prevention objectives. Healthy People sets forth standards for the formation disease prevention objectives for 2030. provides science-based, 10-year national and use of federal advisory committees. These meetings will be held online via objectives for promoting health and Dated: January 31, 2019. preventing disease. Since 1979, Healthy webinar and are open to the public. The Don Wright, Committee will discuss the nation’s People has set and monitored national health objectives that meet a broad Deputy Assistant Secretary for Health, proposed health promotion and disease (Disease Prevention and Health Promotion). prevention objectives and will provide range of health needs, encourage recommendations to improve health collaboration across sectors, guide [FR Doc. 2019–01696 Filed 2–7–19; 8:45 am] status and reduce health risks for the individuals toward making informed BILLING CODE 4150–32–P nation by the year 2030. The Committee health decisions, and measure the impact of our prevention and health will deliberate recommendations DEPARTMENT OF HEALTH AND promotion activities. Healthy People regarding the proposed Healthy People HUMAN SERVICES 2030 objectives, activities designed to 2030 health objectives will reflect implement the disease prevention and assessments of major risks to health and [Document Identifier: OS–0990–New] health promotion goals and objectives wellness, changing public health for the nation, and graphics for priorities, and emerging technologies Agency Information Collection communicating key Healthy People related to our nation’s health Request: 60-Day Public Comment 2030 elements. Pursuant to the preparedness and prevention. During Request Committee’s charter, the Committee’s the February 26, 2019 Committee AGENCY: Office of the Secretary, HHS. advice must assist the Secretary in meeting, the Committee will discuss reducing the number of objectives while and deliberate recommendations ACTION: Notice. regarding the proposed Healthy People ensuring that the selection criteria SUMMARY: In compliance with the identifies the most critical public health 2030 objectives. During the March 27, 2019 Committee meeting, the requirement of the Paperwork issues that are high-impact priorities Reduction Act of 1995, the Office of the supported by current national data. Committee will develop recommendations regarding activities Secretary (OS), Department of Health DATES: The Committee will meet on designed to implement the disease and Human Services, is publishing the February 26, 2019, from 11:30 a.m. to prevention and health promotion goals following summary of a proposed 1:30 p.m. Eastern Time (ET) and March and objectives for the nation and collection for public comment. 27, 2019, from 2:00 p.m. to 5:00 p.m. graphics for communicating key Healthy DATES: Comments on the ICR must be ET. People 2030 elements. received on or before April 9, 2019. ADDRESSES: The meetings will be held Public Participation at Meeting: ADDRESSES: Submit your comments to online via webinar. Registration for the Members of the public are invited to [email protected] or by calling February 26, 2019 meeting will open on join the online Committee meetings. (202) 795–7714. There will be no opportunity for oral February 11, 2019 at the Healthy People FOR FURTHER INFORMATION CONTACT: website at http://www.healthypeople. public comments during the online When submitting comments or Committee meetings. Written comments gov. Registration for the March 27, 2019 requesting information, please include are welcome throughout the entire meeting will open on March 1, 2019 at the document identifier 0990–New–60D development process of the national the Healthy People website at http:// and project title for reference, to health promotion and disease www.healthypeople.gov. [email protected], or call the prevention objectives for 2030 and may FOR FURTHER INFORMATION CONTACT: Reports Clearance Officer. be emailed to [email protected]. Emmeline Ochiai, Designated Federal To join the Committee meeting, SUPPLEMENTARY INFORMATION: Interested Official, Secretary’s Advisory individuals must pre-register at the persons are invited to send comments Committee on National Health Healthy People website at http:// regarding this burden estimate or any Promotion and Disease Prevention www.healthypeople.gov. Participation in other aspect of this collection of Objectives for 2030, U.S. Department of the meeting is limited. Registrations will information, including any of the Health and Human Services, Office of be accepted until maximum webinar following subjects: (1) The necessity and the Assistant Secretary for Health, capacity is reached. Registration for the utility of the proposed information Office of Disease Prevention and Health February 26, 2019 meeting must be collection for the proper performance of Promotion, 1101 Wootton Parkway, completed by 9:00 a.m. ET on February the agency’s functions; (2) the accuracy Room LL–100, Rockville, MD 20852, 26, 2019. Registration for the March 27, of the estimated burden; (3) ways to (240) 453–8280 (telephone), (240) 453– 2019 meeting must be completed by enhance the quality, utility, and clarity 8281 (fax). Additional information is 9:00 a.m. ET on March 27, 2019. A of the information to be collected; and available on the Healthy People website waiting list will be maintained should (4) the use of automated collection at http://www.healthypeople.gov. registrations exceed capacity, and techniques or other forms of information SUPPLEMENTARY INFORMATION: The individuals on the wait list will be technology to minimize the information names and biographies of the contacted as additional space for the collection burden. Committee members are available at meeting becomes available. Registration Title of the Collection: Cross-site https://www.healthypeople.gov/2020/ questions may be directed to Study Data for Improving about/history-development/healthy- [email protected]. Implementation Evaluation among people-2030-advisory-committee. Authority: 42 U.S.C. 300u and 42 Office of Adolescent Health (OAH) TPP Purpose of Meetings: Through the U.S.C. 217a. The Secretary’s Advisory Grantees to inform National Healthy People initiative, HHS leverages Committee on National Health Implementations (IMAGIN). scientific insights and lessons from the Promotion and Disease Prevention Type of Collection: New. past decade, along with new knowledge Objectives for 2030 is governed by OMB No.: 0990–NEW—Office of of current data, trends, and innovations, provisions of the Federal Advisory Adolescent Health—OASH–OS.
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Abstract: The Office of Adolescent capacity to operate and deliver the leadership, key program staff and Health (OAH), U.S. Department of program as intended, and the local community stakeholders from Fiscal Health and Human Services (HHS) is enabling context. The data from this Year 2018 and Fiscal Year 2019, if requesting 3 years of approval by OMB study will be used to identify awarded, grantees of the OAH Teen on a new collection. The IMAGIN Cross- meaningful lessons, targeted resources, Pregnancy Prevention Program. It will Site Study will examine the process that and timely guidance that could help include semi-structured interviews with federal grantees follow to get their both current and future federal grantees grantee leadership, site visits that will programs and staff ready for full get their programs ready to implement, include in-person discussions with key implementation by exploring specific and add to the evidence on the program staff and community factors related to the program models’ successes and challenges of stakeholders and a front-line staff web readiness for implementation and implementing a program. The cross-site survey with up to 8 front line staff per evaluation, the grantee organizations’ study will be conducted with grantee.
ANNUALIZED BURDEN HOUR TABLE
Number of Average Forms Respondents Number of responses per burden per Total burden (if necessary) (if necessary) respondents respondents response hours
Grantee Leadership Staff Interview Topic Guide: Grantee leadership staff 15 1 90/60 22 Initial. Grantee Leadership Staff Interview Topic Guide: Grantee leadership staff 15 1 1 15 Follow-up. Key Program Staff Interview topic guide ...... Front line staff and su- 47 1 1 47 pervisors. Community Stakeholder Interview Topic Guide ... Key community stake- 9 1 45/60 7 holders. Frontline Staff Survey ...... Frontline staff ...... 117 1 30/60 59
Total ...... 5 ...... 150
Terry Clark, Place: National Library of Medicine/Center as amended. The grant applications and Office of the Secretary, Paperwork Reduction for Scientific Review, 6701 Rockledge Drive, the discussions could disclose Act Reports Clearance Officer. Room 2141, Bethesda, MD 20892 (Virtual confidential trade secrets or commercial Meeting). [FR Doc. 2019–01597 Filed 2–7–19; 8:45 am] Contact Person: Yanli Wang, Ph.D., Health property such as patentable material, BILLING CODE 4168–11–P Data Scientist, Division of Extramural and personal information concerning Programs, National Library of Medicine, NIH, individuals associated with the grant 6705 Rockledge Drive, Suite 301, Bethesda, applications, the disclosure of which DEPARTMENT OF HEALTH AND MD 20892–7968, 301–594–4933, would constitute a clearly unwarranted [email protected]. HUMAN SERVICES invasion of personal privacy. (Catalogue of Federal Domestic Assistance National Institutes of Health Program No. 93.879, Medical Library Name of Committee: National Advisory Assistance, National Institutes of Health, Council for Complementary and Integrative National Library of Medicine; Notice of HHS) Health. Closed Meetings Dated: February 4, 2019. Date: August 15, 2019. Ronald J. Livingston, Jr., Closed: 2:00 p.m. to 3:30 p.m. Pursuant to section 10(d) of the Agenda: To review and evaluate grant Federal Advisory Committee Act, as Program Analyst, Office of Federal Advisory Committee Policy. applications. amended, notice is hereby given of the Place: National Institutes of Health, Two [FR Doc. 2019–01586 Filed 2–7–19; 8:45 am] following meeting. Democracy Boulevard, 6707 Democracy BILLING CODE 4140–01–P The meeting will be closed to the Boulevard, Bethesda, MD 20892 (Virtual public in accordance with the Meeting). provisions set forth in sections Contact Person: Partap Singh Khalsa, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., DEPARTMENT OF HEALTH AND HUMAN SERVICES Ph.D., DC, Director, Division of Extramural as amended. The grant applications and Activities, National Center for the discussions could disclose National Institutes of Health Complementary and, Integrative Health, NIH, confidential trade secrets or commercial National Institutes of Health, 6707 property such as patentable materials, National Center for Complementary & Democracy Blvd., Ste. 401, Bethesda, MD and personal information concerning Integrative Health; Notice of Closed 20892–5475, (301) 594–3462, khalsap@ individuals associated with the grant Meeting mail.nih.gov. applications, the disclosure of which Pursuant to section 10(d) of the Information is also available on the would constitute a clearly unwarranted Institute’s/Center’s home page: https://nccih. invasion of personal privacy. Federal Advisory Committee Act, as amended, notice is hereby given of a nih.gov/about/naccih/, where an agenda and any additional information for the meeting Name of Committee: National Library of meeting of the National Advisory Medicine Special Emphasis Panel; COI/ will be posted when available. Career Award. Council for Complementary and Integrative Health. The meeting will be (Catalogue of Federal Domestic Assistance Date: March 22, 2019. Program Nos. 93.213, Research and Training Time: 11:00 a.m. to 5:30 p.m. closed to the public in accordance with in Complementary and Integrative Health, Agenda: To review and evaluate grant the provisions set forth in sections applications. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., National Institutes of Health, HHS)
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Dated: February 4, 2019. DEPARTMENT OF HEALTH AND Contact Person: Christine Ireland, Ronald J. Livingston, Jr., HUMAN SERVICES Committee Management Officer, Division of Extramural Programs, National Library of Program Analyst, Office of Federal Advisory National Institutes of Health Medicine, 6705 Rockledge Drive, Suite 301, Committee Policy. Bethesda, MD 20892, 301–594–4929, [FR Doc. 2019–01577 Filed 2–7–19; 8:45 am] National Library of Medicine; Notice of [email protected]. BILLING CODE 4140–01–P Meetings Any interested person may file written comments with the committee by forwarding Pursuant to section 10(d) of the the statement to the Contact Person listed on DEPARTMENT OF HEALTH AND Federal Advisory Committee Act, as this notice. The statement should include the HUMAN SERVICES amended, notice is hereby given of a name, address, telephone number and when meeting of the Board of Regents of the applicable, the business or professional National Institutes of Health affiliation of the interested person. National Library of Medicine. In the interest of security, NIH has The meeting will be open to the instituted stringent procedures for entrance Eunice Kennedy Shriver National public as indicated below, with onto the NIH campus. All visitor vehicles, Institute of Child Health & Human attendance limited to space available. including taxicabs, hotel, and airport shuttles Development; Notice of Closed Individuals who plan to attend and will be inspected before being allowed on Meeting need special assistance, such as sign campus. Visitors will be asked to show one language interpretation or other form of identification (for example, a Pursuant to section 10(d) of the reasonable accommodations, should government-issued photo ID, driver’s license, Federal Advisory Committee Act, as notify the Contact Person listed below or passport) and to state the purpose of their visit. amended, notice is hereby given of the in advance of the meeting. Information is also available on the following meeting. The meeting will be closed to the Institute’s/Center’s home page: The meeting will be closed to the public in accordance with the www.nlm.nih.gov/od/bor/bor.html, where an public in accordance with the provisions set forth in sections agenda and any additional information for 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., the meeting will be posted when available. provisions set forth in sections as amended. The grant applications and This meeting will be broadcast to the public, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., the discussions could disclose and available for viewing at http:// as amended. The grant applications and confidential trade secrets or commercial videocast.nih.gov on May 14–15, 2019. the discussions could disclose property such as patentable materials, (Catalogue of Federal Domestic Assistance confidential trade secrets or commercial and personal information concerning Program No. 93.879, Medical Library property such as patentable material, individuals associated with the grant Assistance, National Institutes of Health, HHS) and personal information concerning applications, the disclosure of which individuals associated with the grant would constitute a clearly unwarranted Dated: February 5, 2019. applications, the disclosure of which invasion of personal privacy. Ronald J. Livingston, Jr., would constitute a clearly unwarranted Name of Committee: Board of Regents of Program Analyst, Office of Federal Advisory invasion of personal privacy. the National Library of Medicine Extramural Committee Policy. Name of Committee: National Institute of Programs Subcommittee. [FR Doc. 2019–01680 Filed 2–7–19; 8:45 am] Child Health and Human Development Date: May 14, 2019. BILLING CODE 4140–01–P Special Emphasis Panel; Loan Repayment Closed: 7:45 a.m. to 8:45 a.m. Meeting. Agenda: To review and evaluate grant applications. Date: March 19, 2019. DEPARTMENT OF HEALTH AND Place: National Library of Medicine, HUMAN SERVICES Time: 8:00 a.m. to 5:00 p.m. Building 38, Conference Room B, 8600 Agenda: To review and evaluate grant Rockville Pike, Bethesda, MD 20892. National Institutes of Health applications. Contact Person: Christine Ireland, Place: National Institutes of Health, 6710 B Committee Management Officer, Division of Office of the Director, National Rockledge Drive, Bethesda, MD 20817 Extramural Programs, National Library of Institutes of Health; Notice of Meetings (Telephone Conference Call). Medicine, 6705 Rockledge Drive, Suite 301, Contact Person: Sathasiva B. Kandasamy, Bethesda, MD 20892, 301–594–4929, Pursuant to section 10(d) of the Ph.D., Scientific Review Officer, Eunice [email protected]. Federal Advisory Committee Act, as Kennedy Shriver National Institute of Name of Committee: Board of Regents of amended, notice is hereby given of the Children Health and Human Development, the National Library of Medicine. meetings of the Council of Councils. 6701B Rockledge Drive, Room 2127B Date: May 14–15, 2019. The meetings will be open to the Bethesda, MD 20892, (301) 435–6680, Open: May 14, 2019, 9:00 a.m. to 4:00 p.m. public as indicated below, with [email protected]. Agenda: Program Discussion. Place: National Library of Medicine, attendance limited to space available. (Catalogue of Federal Domestic Assistance Building 38, 2nd Floor, The Lindberg Room, Individuals who plan to attend and Program Nos. 93.864, Population Research; 8600 Rockville Pike, Bethesda, MD 20892. need special assistance, such as sign 93.865, Research for Mothers and Children; Closed: May 14, 2019, 4:00 p.m. to 4:30 language interpretation or other 93.929, Center for Medical Rehabilitation p.m. reasonable accommodations, should Research; 93.209, Contraception and Agenda: To review and evaluate grant notify the Contact Person listed below Infertility Loan Repayment Program, National applications. in advance of the meeting. The open Institutes of Health, HHS) Place: National Library of Medicine, session will be videocast and can be Building 38, 2nd Floor, The Lindberg Room, accessed from the NIH Videocasting and Dated: February 4, 2019. 8600 Rockville Pike, Bethesda, MD 20892. Open: May 15, 2019, 9:00 a.m. to 12:00 Podcasting website (http:// Ronald J. Livingston, Jr., videocast.nih.gov). Program Analyst, Office of Federal Advisory p.m. Agenda: Program Discussion. A portion of the meetings will be Committee Policy. Place: National Library of Medicine, closed to the public in accordance with [FR Doc. 2019–01580 Filed 2–7–19; 8:45 am] Building 38, 2nd Floor, The Lindberg Room, the provisions set forth in sections BILLING CODE 4140–01–P 8600 Rockville Pike, Bethesda, MD 20892. 552b(c)(4), and 552b(c)(6), Title 5
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U.S.C., as amended. The grant the statement to the Contact Person listed on individuals associated with the grant applications and the discussions could this notice. The statement should include the applications, the disclosure of which disclose confidential trade secrets or name, address, telephone number and when would constitute a clearly unwarranted commercial property such as patentable applicable, the business or professional invasion of personal privacy. affiliation of the interested person. material, and personal information In the interest of security, NIH has Name of Committee: National Advisory concerning individuals associated with instituted stringent procedures for entrance Council for Complementary and Integrative the grant applications, the disclosure of onto the NIH campus. All visitor vehicles, Health. which would constitute a clearly including taxicabs, hotel, and airport shuttles Date: June 7, 2019. unwarranted invasion of personal will be inspected before being allowed on Closed: 8:30 a.m. to 9:45 a.m. privacy. campus. Visitors will be asked to show one Agenda: To review and evaluate grant form of identification (for example, a applications. Name of Committee: Council of Councils. government-issued photo ID, driver’s license, Place: National Institutes of Health, Open: May 17, 2019. or passport) and to state the purpose of their Natcher Building, 45 Center Drive, Bethesda, Time: 8:15 a.m. to 12:00 p.m. visit. MD 20892. Agenda: Call to Order and Introductions; Information is also available on the Open: 10:00 a.m. to 4:00 p.m. Announcements and Updates; Scientific Council of Council’s home page at http:// Agenda: A report from the Center Director Talks; NIH Program Updates. dpcpsi.nih.gov/council/ where an agenda and Other Staff. Place: National Institutes of Health, will be posted before the meeting date. Place: National Institutes of Health, Building 60, The Cloisters, Lecture Hall, (Catalogue of Federal Domestic Assistance Natcher Building, 45 Center Drive, Bethesda, Chapel, 1 Cloister Court, Bethesda, MD MD 20892. 20892. Program Nos. 93.14, Intramural Research Training Award; 93.22, Clinical Research Contact Person: Partap Singh Khalsa, Closed: May 17, 2019. Ph.D., DC, Director, Division of Extramural Time: 12:00 p.m. to 1:30 p.m. Loan Repayment Program for Individuals from Disadvantaged Backgrounds; 93.232, Activities, National Center for Agenda: Review of Grant Applications. Complementary and Integrative Health, NIH, Place: National Institutes of Health, Loan Repayment Program for Research Generally; 93.39, Academic Research National Institutes of Health, 6707 Building 60, Cloisters, Lecture Hall, Chapel, Democracy Blvd., Ste. 401, Bethesda, MD 1 Cloister Court, Bethesda, MD 20892. Enhancement Award; 93.936, NIH Acquired Immunodeficiency Syndrome Research Loan 20892–5475, (301) 594–3462, khalsap@ Open: May 17, 2019. mail.nih.gov. Time: 1:30 p.m. to 4:00 p.m. Repayment Program; 93.187, Undergraduate Agenda: Scientific Talks and NIH Program Scholarship Program for Individuals from Any interested person may file written Updates. Disadvantaged Backgrounds, National comments with the committee by forwarding Place: National Institutes of Health, Institutes of Health, HHS) the statement to the Contact Person listed on this notice. The statement should include the Building 60, Cloisters, Lecture Hall, Chapel, Dated: February 5, 2019. 1 Cloister Court, Bethesda, MD 20892. name, address, telephone number and when Contact Person: Franziska Grieder, D.V.M., Ronald J. Livingston, Jr., applicable, the business or professional Ph.D., Executive Secretary, Council of Program Analyst, Office of Federal Advisory affiliation of the interested person. Councils Director, Office of Research Committee Policy. In the interest of security, NIH has Infrastructure Programs, Division of Program [FR Doc. 2019–01681 Filed 2–7–19; 8:45 am] instituted stringent procedures for entrance onto the NIH campus. All visitor vehicles, Coordination, Planning, and Strategic BILLING CODE 4140–01–P Initiatives, Office of the Director, NIH, 6701 including taxicabs, hotel, and airport shuttles Democracy Boulevard, Room 948, Bethesda, will be inspected before being allowed on MD 20892, [email protected], 301–435– campus. Visitors will be asked to show one 0744. DEPARTMENT OF HEALTH AND form of identification (for example, a HUMAN SERVICES Name of Committee: Council of Councils. government-issued photo ID, driver’s license, Open: September 6, 2019. or passport) and to state the purpose of their Time: 8:15 a.m. to 12:00 p.m. National Institutes of Health visit. Agenda: Call to Order and Introductions; Information is also available on the Announcements and Updates; Scientific National Center for Complementary & Institute’s/Center’s home page: https://nccih. Talks; NIH Program Updates. Integrative Health; Notice of Meeting nih.gov/about/naccih/, where an agenda and any additional information for the meeting Place: National Institutes of Health, Pursuant to section 10(d) of the Natcher Building, Building 45, Room E, 45 will be posted when available. Center Drive, Bethesda, MD 20892. Federal Advisory Committee Act, as amended, notice is hereby given of a (Catalogue of Federal Domestic Assistance Closed: September 6, 2019. Program Nos. 93.213, Research and Training Time: 12:00 p.m. to 1:30 p.m. meeting of the National Advisory in Complementary and Integrative Health, Agenda: Review of Grant Applications. Council for Complementary and National Institutes of Health, HHS) Place: National Institutes of Health, Integrative Health. Natcher Building, Building 45, Room E, 45 The meeting will be open to the Dated: February 4, 2019. Center Drive, Bethesda, MD 20892. public as indicated below, with Ronald J. Livingston, Jr., Open: September 6, 2019. attendance limited to space available. Program Analyst, Office of Federal Advisory Time: 1:30 p.m. to 4:00 p.m. Committee Policy. Agenda: Scientific Talks and NIH Program Individuals who plan to attend and Updates. need special assistance, such as sign [FR Doc. 2019–01576 Filed 2–7–19; 8:45 am] Place: National Institutes of Health, language interpretation or other BILLING CODE 4140–01–P Natcher Building, Building 45, Room E, 45 reasonable accommodations, should Center Drive, Bethesda, MD 20892. notify the Contact Person listed below Contact Person: Franziska Grieder, D.V.M., in advance of the meeting. DEPARTMENT OF HEALTH AND Ph.D., Executive Secretary, Council of The meeting will be closed to the HUMAN SERVICES Councils Director, Office of Research public in accordance with the Infrastructure Programs, Division of Program provisions set forth in sections National Institutes of Health Coordination, Planning, and Strategic Initiatives, Office of the Director, NIH, 6701 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., National Institute of Neurological Democracy Boulevard, Room 948, Bethesda, as amended. The grant applications and Disorders and Stroke; Notice of MD 20892, [email protected], 301–435– the discussions could disclose Meetings 0744. confidential trade secrets or commercial Any interested person may file written property such as patentable material, Pursuant to section 10(d) of the comments with the committee by forwarding and personal information concerning Federal Advisory Committee Act, as
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amended, notice is hereby given of the 3309, MSC 9531, Bethesda, MD 20892, (301) Name of Committee: National Advisory National Advisory Neurological 496–9248, [email protected]. Council for Complementary and Integrative Disorders and Stroke Council. Any interested person may file written Health. The meetings will be open to the comments with the committee by forwarding Date: September 20, 2019. public as indicated below, with the statement to the Contact Person listed on Closed: 8:30 a.m. to 9:45 a.m. this notice. The statement should include the Agenda: To review and evaluate grant attendance limited to space available. applications. Individuals who plan to attend and name, address, telephone number and when applicable, the business or professional Place: National Institutes of Health, Porter need special assistance, such as sign affiliation of the interested person. Neuroscience Research Center, Building 35A language interpretation or other In the interest of security, NIH has Convent Drive, Bethesda, MD 20892. reasonable accommodations, should instituted stringent procedures for entrance Open: 10:00 a.m. to 4:00 p.m. notify the Contact Person listed below into Federal buildings. Visitors will be asked Agenda: A report from the Center Director in advance of the meeting. to show one form of identification (for and Other Staff. The meetings will be closed to the example, a government-issued photo ID, Place: National Institutes of Health, Porter public in accordance with the driver’s license, or passport) and to state the Neuroscience Research Center, Building 35A provisions set forth in sections purpose of their visit. Convent Drive, Bethesda, MD 20892. Information is also available on the Contact Person: Partap Singh Khalsa, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Ph.D., DC, Director, Division of Extramural as amended. The grant applications and Institute’s/Center’s home page: http:// www.ninds.nih.gov, where an agenda and Activities, National Center for the discussions could disclose any additional information for the meeting Complementary and Integrative Health, NIH, confidential trade secrets or commercial will be posted when available. National Institutes of Health, 6707 property such as patentable materials, (Catalogue of Federal Domestic Assistance Democracy Blvd., Ste. 401, Bethesda, MD and personal information concerning Program Nos. 93.853, Clinical Research 20892–5475, (301) 594–3462, khalsap@ individuals associated with the grant Related to Neurological Disorders; 93.854, mail.nih.gov. applications, the disclosure of which Biological Basis Research in the Any interested person may file would constitute a clearly unwarranted Neurosciences, National Institutes of Health, written comments with the committee invasion of personal privacy. HHS) by forwarding the statement to the Name of Committee: National Advisory Dated: February 5, 2019. Contact Person listed on this notice. The Neurological Disorders and Stroke Council. Sylvia L. Neal, statement should include the name, Date: May 23–24, 2019. Program Analyst, Office of Federal Advisory address, telephone number and when Open: May 23, 2019, 12:30 p.m. to 6:00 Committee Policy. p.m. applicable, the business or professional Agenda: Report by the Director, NINDS; [FR Doc. 2019–01679 Filed 2–7–19; 8:45 am] affiliation of the interested person. In Report by the Director, Division of BILLING CODE 4140–01–P the interest of security, NIH has Extramural Activities; and Administrative instituted stringent procedures for and Program Developments. And Overview entrance onto the NIH campus. All of the NINDS Intramural Program. DEPARTMENT OF HEALTH AND visitor vehicles, including taxicabs, Place: National Institutes of Health, HUMAN SERVICES hotel, and airport shuttles will be Natcher Building, 45 Center Drive, Bethesda, inspected before being allowed on MD 20892. National Institutes of Health Closed: May 24, 2019, 8:30 a.m. to 1:00 campus. Visitors will be asked to show p.m. National Center for Complementary & one form of identification (for example, Agenda: To review and evaluate grant Integrative Health; Notice of Meeting a government-issued photo ID, driver’s applications. license, or passport) and to state the Place: National Institutes of Health, Pursuant to section 10(d) of the purpose of their visit. Information is Natcher Building, 45 Center, Drive, Bethesda, Federal Advisory Committee Act, as also available on the Institute’s/Center’s MD 20892. amended, notice is hereby given of a home page: https://nccih.nih.gov/about/ Contact Person: Robert Finkelstein, Ph.D., meeting of the National Advisory naccih/, where an agenda and any Director, Division of Extramural Activities, National Institute of Neurological Disorders Council for Complementary and additional information for the meeting and Stroke, NIH, 6001 Executive Blvd., Suite Integrative Health. will be posted when available. 3309, MSC 9531, Bethesda, MD 20892, (301) The meeting will be open to the (Catalogue of Federal Domestic Assistance 496–9248, [email protected]. public as indicated below, with Program Nos. 93.213, Research and Training Name of Committee: National Advisory attendance limited to space available. in Complementary and Integrative Health, Neurological Disorders and Stroke Council. Individuals who plan to attend and National Institutes of Health, HHS) Date: September 4–5, 2019. need special assistance, such as sign Dated: February 4, 2019. Open: September 4, 12:30 p.m. to 6:00 p.m. language interpretation or other Ronald J. Livingston, Jr., Agenda: Report by the Director, NINDS; reasonable accommodations, should Report by the Director, Division of notify the Contact Person listed below Program Analyst, Office of Federal Advisory Committee Policy. Extramural Activities; and Administrative in advance of the meeting. and Program Developments. The meeting will be closed to the [FR Doc. 2019–01578 Filed 2–7–19; 8:45 am] Place: National Institutes of Health, Porter BILLING CODE 4140–01–P Neuroscience Research Center, Building 35A public in accordance with the Convent Drive, Bethesda, MD 20892. provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Closed: September 5, 2019, 8:30 a.m. to DEPARTMENT OF HEALTH AND 1:00 p.m. as amended. The grant applications and HUMAN SERVICES Agenda: To review and evaluate grant the discussions could disclose applications. confidential trade secrets or commercial National Institutes of Health Place: National Institutes of Health, Porter property such as patentable material, Neuroscience Research Center, Building 35A Convent Drive, Bethesda, MD 20892. and personal information concerning National Library of Medicine; Notice of Contact Person: Robert Finkelstein, Ph.D., individuals associated with the grant Closed Meetings Director, Division of Extramural Activities, applications, the disclosure of which National Institute of Neurological Disorders would constitute a clearly unwarranted Pursuant to section 10(d) of the and Stroke, NIH, 6001 Executive Blvd., Suite invasion of personal privacy. Federal Advisory Committee Act, as
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amended, notice is hereby given of the Time: 8:00 a.m. to 5:00 p.m. 93.865, Research for Mothers and Children; meetings. Agenda: To review and evaluate grant 93.929, Center for Medical Rehabilitation The meetings will be closed to the applications. Research; 93.209, Contraception and public in accordance with the Place: Bethesda Hyatt, One Metro Center, Infertility Loan Repayment Program, National provisions set forth in sections Bethesda, MD 20814. Institutes of Health, HHS) Contact Person: Zoe E. Huang, MD, Chief 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Scientific Review Officer, Division of Dated: February 4, 2019. as amended. The grant applications and Extramural Programs, National Library of Ronald J. Livingston, Jr., the discussions could disclose Medicine, NIH, 6705 Rockledge Drive, Suite confidential trade secrets or commercial 301, Bethesda, MD 20892–7968, 301–594– Program Analyst, Office of Federal Advisory property such as patentable materials, 4933, [email protected]. Committee Policy. and personal information concerning (Catalogue of Federal Domestic Assistance [FR Doc. 2019–01582 Filed 2–7–19; 8:45 am] individuals associated with the grant Program No. 93.879, Medical Library BILLING CODE 4140–01–P applications, the disclosure of which Assistance, National Institutes of Health, would constitute a clearly unwarranted HHS) invasion of personal privacy. Dated: February 4, 2019. DEPARTMENT OF HEALTH AND HUMAN SERVICES Name of Committee: Biomedical Ronald J. Livingston, Jr., Program Analyst, Office of Federal Advisory Informatics, Library and Data Sciences National Institutes of Health Review Committee. Committee Policy. Date: March 7, 2019. [FR Doc. 2019–01585 Filed 2–7–19; 8:45 am] National Institute on Minority Health Time: 8:00 a.m. to 5:00 p.m. BILLING CODE 4140–01–P Agenda: To review and evaluate grant and Health Disparities; Notice of applications. Closed Meeting Place: Bethesda Hyatt, 1 Metro Center, DEPARTMENT OF HEALTH AND Bethesda, MD 20814. HUMAN SERVICES Pursuant to section 10(d) of the Contact Person: Zoe E. Huang, MD, Chief Federal Advisory Committee Act, as Scientific Review Officer, Scientific Review National Institutes of Health amended (5 U.S.C. App.), notice is Office, Extramural Programs, National hereby given of the following meeting. Library of Medicine, NIH, 6705 Rockledge Eunice Kennedy Shriver National Drive, Suite 301, Bethesda, MD 20892–7968, The meeting will be closed to the Institute of Child Health & Human 301–594–4937, [email protected]. public in accordance with the Development; Notice of Closed (Catalogue of Federal Domestic Assistance provisions set forth in sections Meeting Program No. 93.879, Medical Library 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Assistance, National Institutes of Health, Pursuant to section 10(d) of the as amended. The grant applications and HHS) Federal Advisory Committee Act, as the discussions could disclose Dated: February 4, 2019. amended, notice is hereby given of the confidential trade secrets or commercial Ronald J. Livingston, Jr., following meeting. property such as patentable materials, Program Analyst, Office of Federal Advisory The meeting will be closed to the and personal information concerning Committee Policy. public in accordance with the individuals associated with the grant [FR Doc. 2019–01584 Filed 2–7–19; 8:45 am] provisions set forth in sections applications, the disclosure of which BILLING CODE 4140–01–P 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., would constitute a clearly unwarranted as amended. The grant applications and invasion of personal privacy. the discussions could disclose DEPARTMENT OF HEALTH AND confidential trade secrets or commercial Name of Committee: National Institute on HUMAN SERVICES property such as patentable material, Minority Health and Health Disparities and personal information concerning Special Emphasis Panel; NIMHD Research National Institutes of Health individuals associated with the grant Centers in Minority Institutions (RCMI). applications, the disclosure of which Date: March 6–8, 2019. National Library of Medicine; Notice of would constitute a clearly unwarranted Time: 8:00 a.m. to 5:00 p.m. Closed Meetings invasion of personal privacy. Agenda: To review and evaluate grant applications. Pursuant to section 10(d) of the Name of Committee: National Institute of Place: Embassy Suites at the Chevy Chase Federal Advisory Committee Act, as Child Health and Human Development Initial Pavilion, 4300 Military Rd. NW, Washington, amended, notice is hereby given of the Review Group; Developmental Biology Subcommittee. DC 20015 (Face-to-Face). following meeting. Contact Person: Maryline Laude-Sharp, The meeting will be closed to the Date: March 15, 2019. Ph.D., Scientific Review Officer, National public in accordance with the Time: 8:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant Institute on Minority Health, and Health provisions set forth in sections applications. Disparities, National Institutes of Health, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Place: Embassy Suites at the Chevy Chase, 7201 Wisconsin Ave., Bethesda, MD 20814, as amended. The grant applications and Pavilion, 4300 Military Road NW, (301) 451–9536, [email protected]. the discussions could disclose Washington, DC 20015. confidential trade secrets or commercial Contact Person: Cathy J. Wedeen, Ph.D., Dated: February 4, 2019. property such as patentable materials, Scientific Review Officer, Division of Ronald J. Livingston, Jr., and personal information concerning Scientific Review, Division of Scientific Program Analyst, Office of Federal Advisory Review, OD, Eunice Kennedy Shriver individuals associated with the grant Committee Policy. National Institute of Child Health and applications, the disclosure of which Human Development, NIH, DHHS, 6710B [FR Doc. 2019–01583 Filed 2–7–19; 8:45 am] would constitute a clearly unwarranted Rockledge Drive, Rm. 2121D, Bethesda, MD BILLING CODE 4140–01–P invasion of personal privacy. 20892–7501, 301–435–6878, wedeenc@ Name of Committee: National Library of mail.nih.gov. Medicine Special Emphasis Panel G08. (Catalogue of Federal Domestic Assistance Date: March 8, 2019. Program Nos. 93.864, Population Research;
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DEPARTMENT OF HEALTH AND The meeting will be closed to the would constitute a clearly unwarranted HUMAN SERVICES public in accordance with the invasion of personal privacy. provisions set forth in sections Name of Committee: National Institute of National Institutes of Health 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Child Health and Human Development as amended. The grant applications and Special Emphasis Panel; Development of National Heart, Lung, and Blood the discussions could disclose Novel Nonsteroidal Contraceptive Methods. Institute; Notice of Closed Meeting confidential trade secrets or commercial Date: March 15, 2019. Time: 8:00 a.m. to 6:00 p.m. Pursuant to section 10(d) of the property such as patentable material, and personal information concerning Agenda: To review and evaluate grant Federal Advisory Committee Act, as applications. amended, notice is hereby given of the individuals associated with the grant Place: Bethesda Marriott, 5151 Pooks Hill, following meeting. applications, the disclosure of which Road Bethesda, MD 20814. The meeting will be closed to the would constitute a clearly unwarranted Contact Person: Helen Huang, Scientific public in accordance with the invasion of personal privacy. Review Officer, Scientific Review Branch, Eunice Kennedy Shriver National Institute of Name of Committee: National Institute of provisions set forth in sections Child Health and Human Development, NIH, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Child Health and Human Development Initial 6710B Rockledge Dr., Bethesda, MD 20817, as amended. The grant applications and Review Group; Function, Integration, and 301–435–8380, [email protected]. Rehabilitation Sciences Subcommittee. the discussions could disclose (Catalogue of Federal Domestic Assistance confidential trade secrets or commercial Date: March 8, 2019. Time: 8:30 a.m. to 5:00 p.m. Program Nos. 93.864, Population Research; property such as patentable material, Agenda: To review and evaluate grant 93.865, Research for Mothers and Children; and personal information concerning applications. 93.929, Center for Medical Rehabilitation individuals associated with the grant Place: Embassy Suites Chevy Chase, 4300 Research; 93.209, Contraception and applications, the disclosure of which Military Rd. NW, Washington, DC 20019. Infertility Loan Repayment Program, National would constitute a clearly unwarranted Contact Person: Joanna Kubler-Kielb, Institutes of Health, HHS) invasion of personal privacy. Ph.D., Scientific Review Officer, Scientific Dated: February 4, 2019. Review Branch, Eunice Kennedy Shriver Ronald J. Livingston, Jr., Name of Committee: Heart, Lung, and National Institute of Child Health and Program Analyst, Office of Federal Advisory Blood Initial Review Group; Heart, Lung, and Human Development, NIH, 6710B Rockledge Committee Policy. Blood Program Project Review Committee. Dr., Bethesda, MD 20817, 301–435–6916, Date: March 22, 2019. [email protected]. [FR Doc. 2019–01579 Filed 2–7–19; 8:45 am] Time: 8:00 a.m. to 1:00 p.m. BILLING CODE 4140–01–P Agenda: To review and evaluate grant (Catalogue of Federal Domestic Assistance applications. Program Nos. 93.864, Population Research; Place: Sheraton BWI (Baltimore), 1100 Old 93.865, Research for Mothers and Children; 93.929, Center for Medical Rehabilitation DEPARTMENT OF HEALTH AND Elkridge Landing Road, Linthicum Heights, HUMAN SERVICES MD 21090. Research; 93.209, Contraception and Infertility Loan Repayment Program, National Contact Person: Jeffrey H. Hurst, Ph.D., National Institutes of Health Scientific Review Officer, Office of Scientific Institutes of Health, HHS) Review/DERA, National Heart, Lung, and Dated: February 4, 2019. National Institute of Neurological Blood Institute, National Institutes of Health, Ronald J. Livingston, Jr., 6701 Rockledge Drive, Room 7208, Bethesda, Disorders and Stroke; Notice of Closed Program Analyst, Office of Federal Advisory MD 20892, 301–435–0303, hurstj@ Meetings Committee Policy. nhlbi.nih.gov. [FR Doc. 2019–01581 Filed 2–7–19; 8:45 am] Pursuant to section 10(d) of the (Catalogue of Federal Domestic Assistance BILLING CODE 4140–01–P Federal Advisory Committee Act, as Program Nos. 93.233, National Center for amended, notice is hereby given of the Sleep Disorders Research; 93.837, Heart and Vascular Diseases Research; 93.838, Lung following meetings. Diseases Research; 93.839, Blood Diseases DEPARTMENT OF HEALTH AND The meetings will be closed to the and Resources Research, National Institutes HUMAN SERVICES public in accordance with the of Health, HHS) provisions set forth in sections National Institutes of Health 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Dated: February 5, 2019. as amended. The grant applications and Ronald J. Livingston, Jr., Eunice Kennedy Shriver National the discussions could disclose Program Analyst, Office of Federal Advisory Institute of Child Health & Human confidential trade secrets or commercial Committee Policy. Development; Notice of Closed property such as patentable material, [FR Doc. 2019–01676 Filed 2–7–19; 8:45 am] Meeting and personal information concerning BILLING CODE 4140–01–P individuals associated with the grant Pursuant to section 10(d) of the applications, the disclosure of which Federal Advisory Committee Act, as would constitute a clearly unwarranted DEPARTMENT OF HEALTH AND amended, notice is hereby given of the invasion of personal privacy. HUMAN SERVICES following meeting. Name of Committee: National Institute of The meeting will be closed to the National Institutes of Health Neurological Disorders and Stroke Special public in accordance with the Emphasis Panel; Program Project Grant P01. Eunice Kennedy Shriver National provisions set forth in sections Date: February 21–22, 2019. Institute of Child Health & Human 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Time: 11:00 a.m. to 6:00 p.m. as amended. The grant applications and Agenda: To review and evaluate grant Development; Notice of Closed applications. Meeting the discussions could disclose confidential trade secrets or commercial Place: National Institutes of Health, Neuroscience Center, 6001 Executive Pursuant to section 10(d) of the property such as patentable material, Boulevard, Rockville, MD 20852 (Virtual Federal Advisory Committee Act, as and personal information concerning Meeting). amended, notice is hereby given of the individuals associated with the grant Contact Person: Anna Olairu, Ph.D., following meeting. applications, the disclosure of which Scientific Review Officer, Scientific Review
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Branch, Division of Extramural Activities, Branch, Division of Extramural Activities, Name of Committee: National Institute of NINDS/NIH/DHHS, NSC, 6001 Executive NINDS/NIH/DHHS, NSC, 6001 Executive Neurological Disorders and Stroke Special Blvd., Suite 3208, MSC 9529, Bethesda, MD Blvd., Suite 3208, MSC 9529, Bethesda, MD Emphasis Panel; R13 Review. 20892–9529, (301) 496–9223, Ana.Olairu@ 20892–9529, (301) 496–9223, Lyonse@ Date: March 11–12, 2019. nih.gov. ninds.nih.gov. Time: 9:00 a.m. to 1:00 p.m. This notice is being published less than 15 Name of Committee: National Institute of Agenda: To review and evaluate grant days prior to the meeting due to the timing Neurological Disorders and Stroke Special applications. limitations imposed by the review and Emphasis Panel; DSPAN F99 Application Place: National Institutes of Health, funding cycle. Review. Neuroscience Center, 6001 Executive Boulevard, Rockville, MD 20852. Name of Committee: National Institute of Date: February 27, 2019. Contact Person: Ernest Lyons, Ph.D., Neurological Disorders and Stroke Special Time: 8:00 a.m. to 6:00 p.m. Scientific Review Officer, Scientific Review Emphasis Panel; BRAIN Initiative— Agenda: To review and evaluate grant Branch, Division of Extramural Activities, Postdoctoral Career Transition Award to applications. NINDS/NIH/DHHS, NSC, 6001 Executive Promote Diversity (K99/R00). Place: Bourbon Orleans Hotel, 717 Orleans Blvd., Suite 3208, MSC 9529, Bethesda, MD Date: February 25, 2019. Street, New Orleans, LA 70116. 20892–9529, (301) 496–9223, Lyonse@ Time: 10:00 a.m. to 3:00 p.m. Contact Person: William Benzing, Ph.D., ninds.nih.gov. Agenda: To review and evaluate grant Scientific Review Officer, Scientific Review applications. Branch, Division of Extramural Activities, Name of Committee: National Institute of Place: National Institutes of Health, NINDS/NIH/DHHS, NSC, 6001 Executive Neurological Disorders and Stroke Special Neuroscience Center, 6001 Executive Blvd., Suite 3204, MSC 9529, Bethesda, MD Emphasis Panel; Translational Neural, Brain, Boulevard, Rockville, MD 20852. 20892–9529, (301) 496–0660, benzingw@ and Pain treatment Device Review Meeting. Contact Person: Elizabeth Webber, Ph.D., mail.nih.gov. Date: March 15, 2019. Scientific Review Officer, Scientific Review Time: 8:00 a.m. to 6:00 p.m. Name of Committee: National Institute of Agenda: To review and evaluate grant Branch, Division of Extramural Activities, Neurological Disorders and Stroke Special NINDS/NIH/DHHS, NSC, 6001 Executive applications. Emphasis Panel; NINDS Diversity K Grant Place: Melrose Hotel, 2430 Pennsylvania Blvd., Suite 3208, MSC 9529, Bethesda, MD Application Review. 20892–9529, (301) 496–1917, Webbere@ Ave. NW, Washington, DC 20037. Date: February 27, 2019. nih.gov. Contact Person: Joonil Seog, Ph.D., Time: 1:00 a.m. to 7:00 p.m. Name of Committee: National Institute of Scientific Review Officer, Scientific Review Agenda: To review and evaluate grant Branch, Division of Extramural Activities, Neurological Disorders and Stroke Special applications. Emphasis Panel; IGNITE Translational NINDS/NIH/DHHS, NSC, 6001 Executive Place: Bourbon Orleans Hotel, 717 Orleans Blvd., Suite 3284, MSC 9529, Bethesda, MD Programs. Street, New Orleans, LA 70116. Date: February 25, 2019. 20892–9529, (301) 827–6383, joonil.seog@ Contact Person: William Benzing, Ph.D., nih.gov. Time: 3:00 p.m. to 5:00 p.m. Scientific Review Officer, Scientific Review Agenda: To review and evaluate grant Name of Committee: National Institute of Branch, Division of Extramural Activities, Neurological Disorders and Stroke Special applications. NINDS/NIH/DHHS, NSC, 6001 Executive Place: National Institutes of Health, Emphasis Panel; NINDS Stroke Preclinical Blvd., Suite 3204, MSC 9529, Bethesda, MD Neuroscience Center, 6001 Executive Assessment Network (SPAN). 20892–9529, (301) 496–0660, benzingw@ Boulevard, Rockville, MD 20852. Date: March 18–19, 2019. mail.nih.gov. Contact Person: Joel Saydoff, Ph.D., Time: 8:00 a.m. to 6:00 p.m. Scientific Review Officer, Scientific Review Name of Committee: National Institute of Agenda: To review and evaluate grant Branch, Division of Extramural Activities, Neurological Disorders and Stroke Special applications. NINDS/NIH/DHHS, NSC, 6001 Executive Emphasis Panel; Stroke Net Clinical Trials Place: Bethesda North Marriott Hotel & Blvd., Suite 3205, MSC 9529, Bethesda, MD and Biomarkers. Conference Center, 5701 Marinelli Road, 20892–9529, (301) 496–9223, Webbere@ Date: March 1, 2019. Bethesda, MD 20852. nih.gov. Time: 10:00 a.m. to 4:00 p.m. Contact Person: Deanna Lynn Adkins, Name of Committee: National Institute of Agenda: To review and evaluate grant Ph.D., Scientific Review Officer, Scientific Neurological Disorders and Stroke Special applications. Review Branch, Division of Extramural Emphasis Panel; National Institute of Place: National Institutes of Health, Activities, NINDS/NIH/DHHS, NSC, 6001 Neurological Disorders and Stroke Special Neuroscience Center, 6001 Executive Executive Blvd., Bethesda, MD 20892–9529, Emphasis Panel. Boulevard, Rockville, MD 20852. (301) 496–9223, [email protected]. Date: February 26, 2019. Contact Person: Marilyn Moore-Hoon, Name of Committee: National Institute of Time: 8:00 a.m. to 4:00 p.m. Ph.D., Scientific Review Officer, Scientific Neurological Disorders and Stroke Special Agenda: To review and evaluate grant Review Branch, Division of Extramural Emphasis Panel; LBD CWOW. applications. Activities, NINDS/NIH/DHHS, NSC, 6001 Date: March 18, 2019. Place: Bourbon Orleans Hotel, 717 Orleans Executive Blvd., Suite 3205, MSC 9529, Time: 8:00 a.m. to 7:00 p.m. Street, New Orleans, LA 70116. Bethesda, MD 20892–9529, (301) 827–9087, Agenda: To review and evaluate grant Contact Person: Natalia Strunnikova, [email protected]. applications. Ph.D., Scientific Review Officer, Scientific Name of Committee: National Institute of Place: Bethesda North Marriott Hotel & Review Branch, Division of Extramural Neurological Disorders and Stroke Special Conference Center, 5701 Marinelli Road, Activities, NINDS/NIH/DHHS, NSC, 6001 Emphasis Panel; BRAIN Initiative U24 Bethesda, MD 20852. Executive Blvd., Suite 3208, MSC 9529, Review. Contact Person: Ana Olariu, Ph.D., Bethesda, MD 20892–9529, (301) 453–3755, Date: March 11, 2019. Scientific Review Officer, Scientific Review [email protected]. Time: 8:00 a.m. to 6:00 p.m. Branch, Division of Extramural Activities, Name of Committee: National Institute of Agenda: To review and evaluate grant NINDS/NIH/DHHS, NSC, 6001 Executive Neurological Disorders and Stroke Special applications. Blvd., Suite 3208, MSC 9529, Bethesda, MD Emphasis Panel; BRAIN Initiative Research Place: National Institutes of Health, 20892–9529, (301) 496–9223, Ann.olariu@ Opportunities in Human U01 Review. Neuroscience Center, 6001 Executive nih.gov. Date: February 27, 2019. Boulevard, Rockville, MD 20852. Name of Committee: National Institute of Time: 8:00 a.m. to 5:00 p.m. Contact Person: Jimok Kim, Ph.D., Neurological Disorders and Stroke Special Agenda: To review and evaluate grant Scientific Review Officer, Scientific Review Emphasis Panel; BRAIN Circuit U19 applications. Branch, Division of Extramural Activities, programs. Place: Hilton Crystal City, 2399 Jefferson NINDS/NIH/DHHS, NSC, 6001 Executive Date: March 27–29, 2019. Davis Hwy., Arlington, VA 22202. Blvd., Suite 3226, MSC 9529, Bethesda, MD Time: 8:00 a.m. to 6:00 p.m. Contact Person: Ernest Lyons, Ph.D., 20892–9529, (301) 496–9223, Jimok.kim@ Agenda: To review and evaluate grant Scientific Review Officer, Scientific Review nih.gov. applications.
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Place: Fairmont Hotel, 2401 M St. NW, Dated: February 5, 2019. a letter of intent, a brief description of the Washington, DC 20037. Ronald J. Livingston, Jr., organization represented, and a short description of the oral presentation. Only one Contact Person: Natalia Strunnikova, Program Analyst, Office of Federal Advisory representative of an organization may be Ph.D., Scientific Review Officer, Scientific Committee Policy. Review Branch, Division of Extramural allowed to present oral comments and if Activities, NINDS/NIH/DHHS, NSC, 6001 [FR Doc. 2019–01675 Filed 2–7–19; 8:45 am] accepted by the committee, presentations Executive Blvd., Suite 3208, MSC 9529, BILLING CODE 4140–01–P may be limited to five minutes. Both printed Bethesda, MD 20892–9529, (301) 496–9223, and electronic copies are requested for the [email protected]. record. In addition, any interested person (Catalogue of Federal Domestic Assistance DEPARTMENT OF HEALTH AND may file written comments with the committee by forwarding their statement to Program Nos. 93.853, Clinical Research HUMAN SERVICES the Contact Person listed on this notice. The Related to Neurological Disorders; 93.854, statement should include the name, address, Biological Basis Research in the National Institutes of Health telephone number and when applicable, the Neurosciences, National Institutes of Health, Office of the Director, National business or professional affiliation of the HHS) interested person. Dated: February 5, 2019. Institutes of Health; Notice of Meetings In the interest of security, NIH has Sylvia L. Neal, Pursuant to section 10(a) of the instituted stringent procedures for entrance onto the NIH campus. All visitor vehicles, Program Analyst, Office of Federal Advisory Federal Advisory Committee Act, as including taxicabs, hotel, and airport shuttles Committee Policy. amended, notice is hereby given of will be inspected before being allowed on [FR Doc. 2019–01678 Filed 2–7–19; 8:45 am] meetings of the Advisory Committee on campus. Visitors will be asked to show one BILLING CODE 4140–01–P Research on Women’s Health. form of identification (for example, a The meetings will be open to the government-issued photo ID, driver’s license, public as indicated below, with or passport) and to state the purpose of their DEPARTMENT OF HEALTH AND attendance limited to space available. visit. HUMAN SERVICES Individuals who plan to attend and Information is also available on the Institute’s/Center’s home page: https:// need special assistance, such as sign National Institutes of Health orwh.od.nih.gov/, where an agenda and any language interpretation or other additional information for the meeting will reasonable accommodations, should National Heart, Lung, and Blood be posted when available. notify the Contact Person listed below Institute; Notice of Closed Meeting (Catalogue of Federal Domestic Assistance in advance of the meetings. The Program Nos. 93.14, Intramural Research Training Award; 93.22, Clinical Research Pursuant to section 10(d) of the meetings will also be videocast and can be accessed from the NIH Videocasting Loan Repayment Program for Individuals Federal Advisory Committee Act, as from Disadvantaged Backgrounds; 93.232, amended, notice is hereby given of the and Podcasting website (http:// videocast.nih.gov/). Loan Repayment Program for Research following meeting. Generally; 93.39, Academic Research The meeting will be closed to the Name of Committee: Advisory Committee Enhancement Award; 93.936, NIH Acquired on Research on Women’s Health. Immunodeficiency Syndrome Research Loan public in accordance with the Date: April 10, 2019. Repayment Program; 93.187, Undergraduate provisions set forth in section Time: 9:00 a.m. to 4:00 p.m. Scholarship Program for Individuals from 552b(c)(6), Title 5 U.S.C., as amended. Agenda: Opening Remarks, Director’s Disadvantaged Backgrounds, National The grant applications and the Report, and Scientific Presentations. Institutes of Health, HHS) discussions could disclose confidential Place: National Institutes of Health, Dated: February 5, 2019. Natcher Building, Conference Room D, 45 trade secrets or commercial property Ronald J. Livingston, Jr., such as patentable material, and Center Drive, Bethesda, MD 20892. Contact Person: Elizabeth Spencer, R.N., Program Analyst, Office of Federal Advisory personal information concerning Committee Policy. individuals associated with the grant Deputy Director, Office of Research on Women’s Health, Executive Secretary, [FR Doc. 2019–01672 Filed 2–7–19; 8:45 am] applications, the disclosure of which ACRWH, National Institutes of Health, 6707 BILLING CODE 4140–01–P would constitute a clearly unwarranted Democracy Blvd., Room 7W444, Bethesda, invasion of personal privacy. MD 20817, 301–402–1770, Name of Committee: Heart, Lung, and [email protected]. DEPARTMENT OF HEALTH AND Blood Initial Review Group; NHLBI Name of Committee: Advisory Committee HUMAN SERVICES Mentored Patient-Oriented Research Review on Research on Women’s Health. Committee. Date: October 23, 2019. National Institutes of Health Date: February 28, 2019–March 1, 2019. Time: 9:00 a.m. to 4:30 p.m. Time: 8:30 a.m. to 1:00 p.m. Agenda: Opening Remarks, Director’s Fogarty International Center; Notice of Agenda: To review and evaluate grant Report, and Scientific Presentations. Meeting applications. Place: National Institutes of Health, Place: Hilton Washington DC/Rockville, Natcher Building, Conference Room E1/E2, Pursuant to section 10(d) of the 1750 Rockville Pike, Rockville, MD 20852. 45 Center Drive, Bethesda, MD 20892. Federal Advisory Committee Act, as Contact Person: Stephanie Johnson Webb, Contact Person: Elizabeth Spencer, R.N., amended, notice is hereby given of a Ph.D., Scientific Review Officer, Office of Deputy Director, Office of Research on meeting of the Fogarty International Scientific Review/DERA, National Heart, Women’s Health, Executive Secretary, Center Advisory Board. Lung, and Blood Institute, 6701 Rockledge ACRWH, National Institutes of Health, 6707 The meeting will be open to the Drive, Room 7196, Bethesda, MD 20892, 301– Democracy Blvd., Room 7W444, Bethesda, public as indicated below, with 827–7992, [email protected]. MD 20817, 301–402–1770, [email protected]. attendance limited to space available. (Catalogue of Federal Domestic Assistance Individuals who plan to attend and Program Nos. 93.233, National Center for Any member of the public interested in Sleep Disorders Research; 93.837, Heart and presenting oral comments to the committee need special assistance, such as sign Vascular Diseases Research; 93.838, Lung may notify the Contact Person listed on this language interpretation or other Diseases Research; 93.839, Blood Diseases notice at least 10 days in advance of the reasonable accommodations, should and Resources Research, National Institutes meetings. Interested individuals and notify the Contact Person listed below of Health, HHS) representatives of organizations may submit in advance of the meeting.
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The meeting will be closed to the including taxicabs, hotel, and airport shuttles Place: National Institutes of Health public in accordance with the will be inspected before being allowed on Building 31, Room 4C32, 31 Center Drive, provisions set forth in sections campus. Visitors will be asked to show one Bethesda, MD 20892. form of identification (for example, a Date: May 1, 2019. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Time: 8:00 a.m. to 4:30 p.m. as amended. The grant applications government-issued photo ID, driver’s license, or passport) and to state the purpose of their Agenda: To review and evaluate personal and/or contract proposals and the visit. qualifications and performance, and discussions could disclose confidential Information is also available on the competence of individual investigators. trade secrets or commercial property Institute’s/Center’s home page: http:// Place: National Institutes of Health such as patentable material, and www.fic.nih.gov/About/Advisory/Pages/ Building 31, Room 4C32, 31 Center Drive, personal information concerning default.aspx, where an agenda and any Bethesda, MD 20892. Contact Person: John J. O’Shea, MD, Ph.D., individuals associated with the grant additional information for the meeting will Scientific Director, National Institute of be posted when available. applications and/or contract proposals, Arthritis & Musculoskeletal and Skin the disclosure of which would (Catalogue of Federal Domestic Assistance Diseases, Building 10, Room 9N228, MSC constitute a clearly unwarranted Program Nos. 93.106, Minority International 1820, Bethesda, MD 20892, (301) 496–2612, invasion of personal privacy. Research Training Grant in the Biomedical [email protected]. and Behavioral Sciences; 93.154, Special Name of Committee: Fogarty International Any interested person may file written International Postdoctoral Research Program Center Advisory Board. comments with the committee by forwarding in Acquired Immunodeficiency Syndrome; Date: May 6–7, 2019. the statement to the Contact Person listed on Closed: May 06, 2019, 2:00 p.m. to 5:00 93.168, International Cooperative this notice. The statement should include the p.m. Biodiversity Groups Program; 93.934, Fogarty name, address, telephone number and when Agenda: Second level review of grant International Research Collaboration Award; applicable, the business or professional applications. 93.989, Senior International Fellowship affiliation of the interested person. Place: National Institutes of Health, Awards Program, National Institutes of In the interest of security, NIH has Lawton L. Chiles International House, Health, HHS) instituted stringent procedures for entrance onto the NIH campus. All visitor vehicles, Building 16, Conference Room, 16 Center Dated: February 4, 2019. including taxicabs, hotel, and airport shuttles Drive, Bethesda, MD 20892. Natasha M. Copeland, Open: May 07, 2019, 9:00 a.m. to 3:00 p.m. will be inspected before being allowed on Agenda: Update and discussion of current Program Analyst, Office of Federal Advisory campus. Visitors will be asked to show one and planned FIC activities. Committee Policy. form of identification (for example, a Place: National Institutes of Health, [FR Doc. 2019–01575 Filed 2–7–19; 8:45 am] government-issued photo ID, driver’s license, or passport) and to state the purpose of their Lawton L. Chiles International House, BILLING CODE 4140–01–P Building 16, Conference Room, 16 Center visit. Drive, Bethesda, MD 20892. (Catalogue of Federal Domestic Assistance Contact Person: Kristen Weymouth, DEPARTMENT OF HEALTH AND Program Nos. 93.846, Arthritis, Executive Secretary, Fogarty International HUMAN SERVICES Musculoskeletal and Skin Diseases Research, Center, National Institutes of Health, 31 National Institutes of Health, HHS) Center Drive, Room B2C02, Bethesda, MD National Institutes of Health Dated: February 5, 2019. 20892, (301) 496–1415, kristen.weymouth@ nih.gov. Sylvia L. Neal, National Institute of Arthritis and Program Analyst, Office of Federal Advisory Name of Committee: Fogarty International Musculoskeletal and Skin Diseases; Center Advisory Board. Committee Policy. Date: September 5–6, 2019. Notice of Closed Meetings [FR Doc. 2019–01677 Filed 2–7–19; 8:45 am] Closed: September 05, 2019, 2:00 p.m. to BILLING CODE 4140–01–P 5:00 p.m. Pursuant to section 10(d) of the Agenda: Second level review of grant Federal Advisory Committee Act, as applications. amended, notice is hereby given of a DEPARTMENT OF HEALTH AND Place: National Institutes of Health, meeting of the Board of Scientific HUMAN SERVICES Lawton L. Chiles International House, Counselors, NIAMS. Building 16, Conference Room, 16 Center National Institutes of Health Drive, Bethesda, MD 20892. The meeting will be closed to the public as indicated below in accordance Open: September 06, 2019, 9:00 a.m. to Center for Scientific Review; Notice of 3:00 p.m. with the provisions set forth in section Meeting Agenda: Update and discussion of current 552b(c)(6), Title 5 U.S.C., as amended and planned FIC activities. for the review, discussion, and Pursuant to section 10(a) of the Place: National Institutes of Health, evaluation of individual intramural Federal Advisory Committee Act, as Lawton L. Chiles International House, programs and projects conducted by the Building 16, Conference Room, 16 Center amended, notice is hereby given of a Drive, Bethesda, MD 20892. National Institute of Arthritis and meeting of the Center for Scientific Contact Person: Kristen Weymouth, Musculoskeletal and Skin Diseases, Review Advisory Council. Executive Secretary, Fogarty International including consideration of personnel The meeting will be open to the Center, National Institutes of Health, 31 qualifications and performance, and the public, with attendance limited to space Center Drive, Room B2C02, Bethesda, MD competence of individual investigators, available. Individuals who plan to 20892, (301) 496–1415, kristen.weymouth@ the disclosure of which would attend and need special assistance, such nih.gov. constitute a clearly unwarranted as sign language interpretation or other Any interested person may file written invasion of personal privacy. reasonable accommodations, should comments with the committee by forwarding the statement to the Contact Person listed on Name of Committee: Board of Scientific notify the Contact Person listed below this notice. The statement should include the Counselors, NIAMS. in advance of the meeting. name, address, telephone number and when Date: April 30–May 1, 2019. Name of Committee: Center for Scientific applicable, the business or professional Date: April 30, 2019. Review Advisory Council. affiliation of the interested person. Time: 6:00 p.m. to 9:00 p.m. Date: March 25, 2019. In the interest of security, NIH has Agenda: To review and evaluate personal Time: 8:30 a.m. to 3:00 p.m. instituted stringent procedures for entrance qualifications and performance, and Agenda: Provide advice to the Director, onto the NIH campus. All visitor vehicles, competence of individual investigators. Center for Scientific Review (CSR), on
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matters related to planning, execution, Integrated Review Group; Neurobiology of by terrorists, other unlawful aliens, conduct, support, review, evaluation, and Motivated Behavior Study Section. instruments of terrorism, narcotics, and receipt and referral of grant applications at Date: February 28–March 1, 2019. other contraband. Id. Consistent with CSR. Time: 8:00 a.m. to 6:00 p.m. that mandate from Congress, the Place: National Institutes of Health, Third Agenda: To review and evaluate grant Floor Conference Center, 6701 Rockledge applications. President’s Executive Order on Border Drive, Bethesda, MD 20892. Place: St. Gregory Hotel, 2033 M Street Security and Immigration Enforcement Contact Person: Cathleen L. Cooper, Ph.D., NW, Washington, DC 20036. Improvements directed executive Executive Secretary, Center for Scientific Contact Person: Jasenka Borzan, Ph.D., departments and agencies to deploy all Review, National Institutes of Health, 6701 Scientific Review Officer, Center for lawful means to secure the southern Rockledge Drive, Room 3030, Bethesda, MD Scientific Review, National Institutes of border. Executive Order 13767, § 1. In 20892, 301–435–1111, [email protected]. Health, 6701 Rockledge Drive, Room 4214, order to achieve that end, the President Any interested person may file written MSC 7814, Bethesda, MD 20892–7814, 301– directed, among other things, that I take comments with the committee by forwarding 435–1260, [email protected]. immediate steps to prevent all unlawful the statement to the Contact Person listed on (Catalogue of Federal Domestic Assistance this notice. The statement should include the entries into the United States, including Program Nos. 93.306, Comparative Medicine; the immediate construction of physical name, address, telephone number and when 93.333, Clinical Research, 93.306, 93.333, applicable, the business or professional 93.337, 93.393–93.396, 93.837–93.844, infrastructure to prevent illegal entry. affiliation of the interested person. 93.846–93.878, 93.892, 93.893, National Executive Order 13767, § 4(a). In the interest of security, NIH has Institutes of Health, HHS) Congress has provided to the instituted stringent procedures for entrance Secretary of Homeland Security a into NIH buildings. Dated: February 5, 2019. number of authorities necessary to carry Visitors will be asked to show one form of Sylvia L. Neal, identification (for example, a government- out DHS’s border security mission. One Program Analyst, Office of Federal Advisory of those authorities is found at section issued photo ID, driver’s license, or passport) Committee Policy. and to state the purpose of their visit. 102 of the Illegal Immigration Reform Information is also available on the [FR Doc. 2019–01673 Filed 2–7–19; 8:45 am] and Immigrant Responsibility Act of Institute’s/Center’s home page: http:// BILLING CODE 4140–01–P 1996, as amended (‘‘IIRIRA’’). Public public.csr.nih.gov/aboutcsr/ Law 104–208, Div. C, 110 Stat. 3009– CSROrganization/Pages/CSRAC.aspx, where 546, 3009–554 (Sept. 30, 1996) (8 U.S.C an agenda and any additional information for DEPARTMENT OF HOMELAND 1103 note), as amended by the REAL ID the meeting will be posted when available. SECURITY Act of 2005, Public Law 109–13, Div. B, (Catalogue of Federal Domestic Assistance 119 Stat. 231, 302, 306 (May 11, 2005) Program Nos. 93.306, Comparative Medicine; Office of the Secretary 93.333, Clinical Research, 93.306, 93.333, (8 U.S.C. 1103 note), as amended by the Secure Fence Act of 2006, Public Law 93.337, 93.393–93.396, 93.837–93.844, Determination Pursuant to Section 102 109–367, § 3, 120 Stat. 2638 (Oct. 26, 93.846–93.878, 93.892, 93.893, National of the Illegal Immigration Reform and Institutes of Health, HHS) 2006) (8 U.S.C. 1103 note), as amended Immigrant Responsibility Act of 1996, by the Department of Homeland Dated: February 5, 2019. as Amended Ronald J. Livingston, Jr., Security Appropriations Act, 2008, Program Analyst, Office of Federal Advisory AGENCY: Office of the Secretary, Public Law 110–161, Div. E, Title V, Committee Policy. Department of Homeland Security. § 564, 121 Stat. 2090 (Dec. 26, 2007). In [FR Doc. 2019–01674 Filed 2–7–19; 8:45 am] ACTION: Notice of determination. section 102(a) of IIRIRA, Congress provided that the Secretary of BILLING CODE 4140–01–P SUMMARY: The Secretary of Homeland Homeland Security shall take such Security has determined, pursuant to actions as may be necessary to install DEPARTMENT OF HEALTH AND law, that it is necessary to waive certain additional physical barriers and roads HUMAN SERVICES laws, regulations, and other legal (including the removal of obstacles to requirements in order to ensure the detection of illegal entrants) in the National Institutes of Health expeditious construction of barriers and vicinity of the United States border to roads in the vicinity of the international deter illegal crossings in areas of high Center for Scientific Review: Notice of land border near the City of San Diego illegal entry into the United States. In Closed Meeting in the State of California. section 102(b) of IIRIRA, Congress Pursuant to section 10(d) of the DATES: This determination takes effect mandated the installation of additional Federal Advisory Committee Act, as on February 8, 2019. fencing, barriers, roads, lighting, amended, notice is hereby given of the SUPPLEMENTARY INFORMATION: Important cameras, and sensors on the southwest following meeting. mission requirements of the Department border. Finally, in section 102(c) of The meeting will be closed to the of Homeland Security (‘‘DHS’’) include IIRIRA, Congress granted to the public in accordance with the border security and the detection and Secretary of Homeland Security the provisions set forth in sections prevention of illegal entry into the authority to waive all legal requirements 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., United States. Border security is critical that I, in my sole discretion, determine as amended. The grant applications and to the nation’s national security. necessary to ensure the expeditious the discussions could disclose Recognizing the critical importance of construction of barriers and roads confidential trade secrets or commercial border security, Congress has mandated authorized by section 102 of IIRIRA. property such as patentable material, DHS to achieve and maintain Determination and Waiver and personal information concerning operational control of the international individuals associated with the grant land border. Secure Fence Act of 2006, Section 1 applications, the disclosure of which Public Law 109–367, § 2, 120 Stat. 2638 The United States Border Patrol’s San would constitute a clearly unwarranted (Oct. 26, 2006) (8 U.S.C. 1701 note). Diego Sector is an area of high illegal invasion of personal privacy. Congress defined ‘‘operational control’’ entry. For example, in fiscal year 2018 Name of Committee: Integrative, as the prevention of all unlawful entries alone, the United States Border Patrol Functional and Cognitive Neuroscience into the United States, including entries (‘‘Border Patrol’’) apprehended over
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38,000 illegal aliens in the San Diego Pollution Control Act (commonly Administrative Procedure Act (5 U.S.C. Sector. In that same year Border Patrol referred to as the Clean Water Act (33 551 et seq.); the Otay Mountain seized approximately 8,700 pounds of U.S.C. 1251 et seq.)); the National Wilderness Act of 1999 (Pub. L. 106– marijuana and approximately 1,800 Historic Preservation Act (Pub. L. 89– 145); sections 102(29) and 103 of Title pounds of cocaine in the San Diego 665, 80 Stat. 915 (Oct. 15, 1966), as I of the California Desert Protection Act Sector. amended, repealed, or replaced by Pub. (Pub. L. 103–433); the Rivers and In order to satisfy the need for L. 113–287 (Dec. 19, 2014) (formerly Harbors Act of 1899 (33 U.S.C. 403); the additional border infrastructure in the codified at 16 U.S.C. 470 et seq., now Eagle Protection Act (16 U.S.C. 668 et San Diego Sector, DHS will take action codified at 54 U.S.C. 100101 note and seq.); the Native American Graves to construct barriers and roads. 54 U.S.C. 300101 et seq.)); the Migratory Protection and Repatriation Act (25 Specifically, construction of secondary Bird Treaty Act (16 U.S.C. 703 et seq.); U.S.C. 3001 et seq.); and the American barriers and roads will occur within an the Migratory Bird Conservation Act (16 Indian Religious Freedom Act (42 U.S.C. approximately fourteen mile segment of U.S.C. 715 et seq.); the Clean Air Act (42 1996). the border within the San Diego Sector U.S.C. 7401 et seq.); the Archeological This waiver does not revoke or that starts at approximately the Pacific Resources Protection Act (Pub. L. 96–95 supersede previous waivers published Ocean and extends eastward. The (16 U.S.C. 470aa et seq.)); the in the Federal Register on September segment of the border within which Paleontological Resources Preservation 22, 2005 (70 FR 55622), and August 2, such construction will occur is referred Act (16 U.S.C. 470aaa et seq.); the 2017 (82 FR 35984), which shall remain to herein as the ‘‘project area’’ and is Federal Cave Resources Protection Act in full force and effect in accordance more specifically described in Section 2 of 1988 (16 U.S.C. 4301 et seq.); the with their terms. I reserve the authority below. National Trails System Act (16 U.S.C. to execute further waivers from time to Section 2 1241 et seq.), the Safe Drinking Water time as I may determine to be necessary under section 102 of IIRIRA. I determine that the following area in Act (42 U.S.C. 300f et seq.); the Noise the vicinity of the United States border, Control Act (42 U.S.C. 4901 et seq.); the Kirstjen M. Nielsen, located in the State of California within Solid Waste Disposal Act, as amended Secretary of Homeland Security. the United States Border Patrol’s San by the Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); [FR Doc. 2019–01379 Filed 2–7–19; 8:45 am] Diego Sector, is an area of high illegal BILLING CODE 9111–14–P entry (the ‘‘project area’’): Starting at the Comprehensive Environmental approximately the Pacific Ocean and Response, Compensation, and Liability extending eastward to approximately Act (42 U.S.C. 9601 et seq.); the DEPARTMENT OF HOMELAND Border Monument 251. Archaeological and Historic SECURITY There is presently an acute and Preservation Act (Pub. L. 86–523, as immediate need to construct physical amended, repealed, or replaced by Pub. Office of the Secretary barriers and roads in the vicinity of the L. 113–287 (Dec. 19, 2014) (formerly border of the United States in order to codified at 16 U.S.C. 469 et seq., now [Docket No. DHS–2019–0001] prevent unlawful entries into the United codified at 54 U.S.C. 312502 et seq.)); States in the project area. In order to the Antiquities Act (formerly codified at DHS Data Privacy and Integrity ensure the expeditious construction of 16 U.S.C. 431 et seq., now codified 54 Advisory Committee the barriers and roads in the project U.S.C. 320301 et seq.); the Historic AGENCY: Privacy Office, Department of area, I have determined that it is Sites, Buildings, and Antiquities Act Homeland Security (DHS). necessary that I exercise the authority (formerly codified at 16 U.S.C. 461 et that is vested in me by section 102(c) of seq., now codified at 54 U.S.C. 3201– ACTION: Committee management; notice IIRIRA. 320303 & 320101–320106); the Wild and of Federal Advisory Committee meeting. Accordingly, pursuant to section Scenic Rivers Act (Pub. L. 90–542 (16 SUMMARY: The DHS Data Privacy and 102(c) of IIRIRA, I hereby waive in their U.S.C. 1281 et seq.)); the Farmland Integrity Advisory Committee will meet entirety, with respect to the Protection Policy Act (7 U.S.C. 4201 et on Tuesday, February 26, 2019, via construction of roads and physical seq.); the Coastal Zone Management Act teleconference. The meeting will be barriers (including, but not limited to, (Pub. L. 92–583 (16 U.S.C. 1451 et seq.)); open to the public. accessing the project area, creating and the Wilderness Act (Pub. L. 88–577 (16 using staging areas, the conduct of U.S.C. 1131 et seq.)); the Federal Land DATES: The DHS Data Privacy and earthwork, excavation, fill, and site Policy and Management Act (Pub L. 94– Integrity Advisory Committee will meet preparation, and installation and 579 (43 U.S.C. 1701 et seq.)); the on Tuesday, February 26, 2019, from upkeep of physical barriers, roads, National Wildlife Refuge System 9:00 a.m. to 10:30 a.m. Please note that supporting elements, drainage, erosion Administration Act (Pub. L. 89–669 (16 the teleconference may end early if the controls, safety features, lighting, U.S.C. 668dd-668ee)); the National Committee has completed its business. cameras, and sensors) in the project Wildlife Refuge System Improvement ADDRESSES: The meeting will be held area, all of the following statutes, Act of 1997 (Pub. L. 105–57); National via teleconference and an online forum including all federal, state, or other Fish and Wildlife Act of 1956 (Pub. L. (URL will be posted on the Privacy laws, regulations, and legal 84–1024 (16 U.S.C. 742a, et seq.)); the Office website in advance of the meeting requirements of, deriving from, or Fish and Wildlife Coordination Act at www.dhs.gov/privacy-advisory- related to the subject of, the following (Pub. L. 73–121 (16 U.S.C. 661 et seq.)); committees). For information on statutes, as amended: the Wild Horse and Burro Act (16 U.S.C. facilities or services for individuals with The National Environmental Policy 1331 et seq.); an Act of Oct. 30, 2000, disabilities, or to request special Act (Pub. L. 91–190, 83 Stat. 852 (Jan. Pub. L. 106–398, 1, 114 Stat. 1654 assistance during the meeting, please 1, 1970) (42 U.S.C. 4321 et seq.)); the (enacting into law § 2848 of Part II of contact Sandra Taylor, Designated Endangered Species Act (Pub. L. 93– Subtitle D of Title XXVIII of Division B Federal Officer, DHS Data Privacy and 205, 87 Stat. 884 (Dec. 28, 1973) (16 of H.R. 5408 (114 Stat. 1654A–426), as Integrity Advisory Committee, as soon U.S.C. 1531 et seq.)); the Federal Water introduced on Oct. 6, 2000); the as possible.
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To facilitate public participation, we Docket: For access to the docket to Integrity Advisory Committee meeting, invite public comment on the issues to read background documents or DHS collects your name, contact be considered by the Committee as comments received by the DHS Data information, and the organization you listed in the SUPPLEMENTARY Privacy and Integrity Advisory represent, if any. We use this INFORMATION section below. A public Committee, go to http:// information to contact you for purposes comment period will be held during the www.regulations.gov and search for related to the meeting, such as to meeting from 10:15 a.m.–10:30 a.m., and docket number DHS–2019–0001. confirm your registration, to advise you speakers are requested to limit their FOR FURTHER INFORMATION CONTACT: of any changes in the meeting, or to comments to three minutes. If you Sandra Taylor, Designated Federal assure that we have sufficient materials would like to address the Committee at Officer, DHS Data Privacy and Integrity to distribute to all attendees. We may the meeting, we request that you register Advisory Committee, Department of also use the information you provide for in advance by contacting Sandra Taylor Homeland Security, 245 Murray Lane public record purposes such as posting at the address provided below. The SW, Mail Stop 0655, Washington, DC publicly available transcripts and names and affiliations, if any, of 20528, by telephone (202) 343–1717, by meeting minutes. individuals who address the Committee fax (202) 343–4010, or by email to Routine Uses and Sharing: In general, are included in the public record of the [email protected]. DHS will not use the information you meeting. Please note that the public SUPPLEMENTARY INFORMATION: provide for any purpose other than the comment period may end before the Notice of this meeting is given under the Federal Principal Purposes, and will not share time indicated, following the last call this information within or outside the for comments. Written comments Advisory Committee Act (FACA), Title 5, U.S.C. The DHS Data Privacy and agency. In certain circumstances, DHS should be sent to Sandra Taylor, may share this information on a case-by- Designated Federal Officer, DHS Data Integrity Advisory Committee provides advice at the request of the Secretary of case basis as required by law or as Privacy and Integrity Advisory necessary for a specific purpose, as Committee, by February 21, 2019. Homeland Security and the DHS Chief Privacy Officer on programmatic, described in the DHS/ALL–002 Mailing Persons who wish to submit comments and Other Lists System of Records and who are not able to participate or policy, operational, administrative, and technological issues within DHS that Notice (November 25, 2008, 73 FR speak at the meeting may submit 71659). comments at any time. All submissions relate to personally identifiable information, as well as data integrity Effects of Not Providing Information: must include the Docket Number (DHS– You may choose not to provide the 2019–0001) and may be submitted by and other privacy-related matters. The Committee was established by the requested information or to provide any one of the following methods: only some of the information DHS • Federal eRulemaking Portal: http:// Secretary of Homeland Security under the authority of 6 U.S.C. 451. requests. If you choose not to provide www.regulations.gov. Follow the some or all of the requested information, instructions for submitting comments. Proposed Agenda DHS may not be able to contact you for • E-mail: PrivacyCommittee@ purposes related to the meeting. hq.dhs.gov. Include the Docket Number During the meeting, the Committee Accessing and Correcting (DHS–2019–0001) in the subject line of will review and vote on the Policy Information: If you are unable to access the message. Subcommittee’s report to the • Fax: (202) 343–4010. Department providing recommendations or correct this information by using the • Mail: Sandra Taylor, Designated on privacy considerations in biometric method that you originally used to Federal Officer, Data Privacy and facial recognition technology. The draft submit it, you may direct your request Integrity Advisory Committee, report will be posted on the in writing to the DHS Deputy Chief Department of Homeland Security, 245 Committee’s website at www.dhs.gov/ FOIA Officer at [email protected]. Murray Lane SW, Mail Stop 0655, dhs-data-privacy-and-integrity-advisory- Additional instructions are available at Washington, DC 20528. committee-meeting-information in http://www.dhs.gov/foia and in the Instructions: All submissions must advance of the meeting. If you wish to DHS/ALL–002 Mailing and Other Lists include the words ‘‘Department of submit written comments on the draft System of Records referenced above. Homeland Security Data Privacy and report, you may do so in advance of the Dated: February 4, 2019. Integrity Advisory Committee’’ and the meeting by forwarding them to the Philip S. Kaplan, Docket Number (DHS–2019–0001). Committee at the locations listed under Chief Privacy Officer, Department of Comments received will be posted ADDRESSES. The final agenda will be Homeland Security. without alteration at http:// posted on or before February 18, 2019, [FR Doc. 2019–01682 Filed 2–7–19; 8:45 am] www.regulations.gov, including any on the Committee’s website at BILLING CODE 9110–9L–P personal information provided. www.dhs.gov/dhs-data-privacy-and- If you wish to attend the meeting, integrity-advisory-committee-meeting- please plan to call in no later than 8:50 information. Please note that the DEPARTMENT OF HOMELAND a.m. The DHS Privacy Office encourages meeting may end early if all business is SECURITY you to register for the meeting in completed. advance by contacting Sandra Taylor, [Docket No. DHS–2019–0003] Privacy Act Statement: DHS’s Use of Designated Federal Officer, DHS Data Homeland Security Advisory Council Privacy and Integrity Advisory Your Information Committee, at PrivacyCommittee@ Authority: DHS requests that you AGENCY: Office of Partnership and hq.dhs.gov. Advance registration is voluntarily submit this information Engagement (OPE), Department of voluntary. The Privacy Act Statement under its following authorities: The Homeland Security (DHS). below explains how DHS uses the Federal Records Act, 44 U.S.C. 3101; the ACTION: Notice of open teleconference registration information you may FACA, 5 U.S.C. appendix; and the federal advisory committee meeting. provide and how you may access or Privacy Act of 1974, 5 U.S.C. 552a. correct information retained by DHS, if Principal Purposes: When you register SUMMARY: The Homeland Security any. to attend a DHS Data Privacy and Advisory Council (‘‘HSAC’’ or
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‘‘Council’’) will meet via teleconference The agenda for the meeting is as Nebraska. The Nebraska Public Power on February 28, 2019. The meeting will follows: The Council will receive District (NPPD) applied for an be open to the public. briefings from senior officials, and incidental take permit for take of the DATES: The Council conference call will receive progress updates from the CBP American burying beetle (Nicrophorus take place from 2:00 p.m. to 4:00 p.m. Families and Children Care Panel, americanus), which is listed as EDT on Thursday, February 28, 2019. Countering Foreign Influence, Emerging endangered under the Endangered Please note that the meeting may end Technologies, and the State, Local, Species Act of 1973 (ESA), as amended. early if the Council has completed its Tribal, and Territorial Cybersecurity The permit would authorize take likely business. Subcommittees. to result from the construction, Participation: Members of the public operation, and maintenance of the ADDRESSES: The HSAC meeting will be held via teleconference. Members of the will be in listen-only mode. The public transmission line. The HCP describes public interested in participating may may register to participate in this the applicant’s actions and required do so by following the process outlined Council teleconference via the following measures to minimize, mitigate, and below (see ‘‘Public Participation’’). procedures. Each individual must monitor incidental take. The final EIS Written comments must be submitted provide his or her full legal name and analyzes the effects of authorizing the and received by Tuesday, February 26, email address no later than 5:00 p.m. take and implementation of the HCP on 2019 to Friday, March, 29, 2019. EDT on Tuesday, February 26, 2019 to the natural and human environment in Comments must be identified by Docket Mike Miron of the Council via email to accordance with the National No. DHS–2019–0003 and may be [email protected] or via phone at (202) Environmental Policy Act (NEPA). submitted by one of the following 447–3135. The conference call details DATES: Our decision whether to issue methods: will be provided to interested members the permit will occur no sooner than 30 • Federal eRulemaking Portal: http:// of the public after the closing of the days after the U.S. Environmental www.regulations.gov. Follow the public registration period and prior to Protection Agency publishes its notice instructions for submitting comments. the start of the meeting. of the final EIS in the Federal Register. • Email: [email protected]. Include For information on services for We will document our decision in a Docket No. DHS–2019–0003 in the individuals with disabilities, or to record of decision (ROD). subject line of the message. request special assistance at the ADDRESSES: You may obtain copies of • Fax: (202) 282–9207. Include Mike meeting, contact Mike Miron at HSAC@ the documents by any of the following Miron and the Docket No. DHS–2019– hq.dhs.gov or (202) 447–3135 as soon as methods: 0003 in the subject line of the message. possible. Internet: Federal eRulemaking Portal • Mail: Homeland Security Advisory Information on Services for (http://www.regulations.gov) under Council, Attention Mike Miron, Individuals with Disabilities: For Docket No. FWS–R6–ES–2014–0048. Department of Homeland Security, information on facilities or services for Upon Request: You may call 308– Mailstop 0445, 245 Murray Lane SW, individuals with disabilities, or to 382–6468 (extension 204) to request Washington, DC 20528. request special assistance during the alternative formats of the documents or Instructions: All submissions received teleconference contact Mike Miron at make an appointment to inspect the must include the words ‘‘Department of (202) 447–3135. documents during normal business Homeland Security’’ and ‘‘DHS–2019– Dated: February 5, 2019. hours at U.S. Fish and Wildlife Service, 0003,’’ the docket number for this Mike Miron, Nebraska Field Office, 9325 South Alda action. Comments received will be Deputy Executive Director, Homeland Road, Wood River, NE 68883. posted without alteration at http:// Security Advisory Council, DHS. In Person: www.regulations.gov, including any • [FR Doc. 2019–01683 Filed 2–7–19; 8:45 am] North Platte Public Library, 120 personal information provided. West 4th Street, North Platte, Nebraska. BILLING CODE 9110–9B–P Docket: For access to the docket to • Logan County Library, 317 Main read comments received by the Council, Street, Stapleton, Nebraska. go to http://www.regulations.gov, search • Hooker County Library, 102 North ‘‘DHS–2019–0003,’’ ‘‘Open Docket DEPARTMENT OF THE INTERIOR Cleveland Avenue, Mullen, Nebraska. Folder’’ and provide your comments. • Fish and Wildlife Service Garfield County Library, 217 G FOR FURTHER INFORMATION CONTACT: Street, Burwell, Nebraska. Mike Miron at [email protected] or at [Docket No. FWS–R6–ES–2014–0048; • Ewing Township Library, 202 East (202) 447–3135. FF06E220000–178–FXES11140600000] Nebraska, Ewing, Nebraska. • Ainsworth Public Library, 455 SUPPLEMENTARY INFORMATION: Notice of Endangered and Threatened Wildlife this meeting is given under Section North Main Street, Ainsworth, and Plants; Incidental Take Permit and Nebraska. 10(a) of the Federal Advisory Committee Habitat Conservation Plan for the • Act (FACA), Public Law 92–463 (5 Valentine Public Library, 324 North R-Project Transmission Line; Final Main Street, Valentine, Nebraska. U.S.C. Appendix), which requires each Environmental Impact Statement • FACA committee meeting to be open to Thomas County Library, 501 Main the public. AGENCY: Fish and Wildlife Service, Street, Thedford, Nebraska. The Council provides organizationally Interior. FOR FURTHER INFORMATION CONTACT: Drue DeBerry, 303–236–4774 or independent, strategic, timely, specific, ACTION: Notice of availability. actionable advice, and [email protected] (email). If you recommendations to the Secretary of SUMMARY: We, the U.S. Fish and use a telecommunications device for the Homeland Security on matters related to Wildlife Service (Service), announce the deaf, hard-of-hearing, or speech homeland security. The Council is availability of the final environmental disabled, please call the Federal Relay comprised of leaders of local law impact statement (EIS), final habitat Service at 800–877–8339. enforcement, first responders, Federal, conservation plan (HCP), and associated SUPPLEMENTARY INFORMATION: This State, and local government, the private documents for the R-Project notice announces that the final EIS, sector, and academia. transmission line in north-central HCP, and associated documents for the
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R-Project transmission line in Nebraska environment. Under NEPA and its these impacts to the beetle, the HCP is available for the public to read. NPPD implementing regulations, Federal commits NPPD to work with the Service applied for a permit to authorize agencies must also compare effects of a to protect at least 500 acres of occupied incidental take of the federally reasonable range of alternatives to the American burying beetle habitat in endangered American burying beetle proposed action. In these analyses, the Nebraska in perpetuity. The HCP’s resulting from the construction, Federal agency will identify potentially commitments for NPPD to restore beetle operation, and maintenance of the significant direct, indirect, and habitat would also minimize and proposed R-Project transmission line cumulative effects, as well as possible mitigate impacts. and substations. As part of its mitigation for any significant effects, on application, NPPD prepared an HCP that biological resources, land use, air Public Review describes actions to avoid, minimize, quality, water resources, mitigate, and monitor impacts of socioeconomics, environmental justice, We are not requesting public incidental take of the American burying cultural resources, and other comments on the final EIS and HCP, but beetle. According to NEPA (42 U.S.C. environmental resources that could any written comments we receive will 4321 et seq.) and its implementing occur with the implementation of the become part of the public record regulations (40 CFR 1500 et seq.), we proposed action and alternatives. associated with this action. Before analyze in the final EIS the effects of our In accordance with NEPA, we including your address, phone number, preferred alternative to authorize announced public scoping to prepare an email address, or other personal incidental take of the beetle and NPPD’s EIS in the Federal Register on October identifying information in your implementation of the HCP required by 30, 2014 (79 FR 64619). We published comment, you should be aware that the permit. The final EIS also analyzes a notice of availability of the draft EIS your entire comment—including your potential effects from two alternatives and draft HCP, and requested public personal identifying information—may and identifies alternatives that we comments on those draft documents, in be made publicly available at any time. considered but eliminated from further the Federal Register on May 12, 2017 While you may request in your analysis. (82 FR 22153). The May 12, 2017, notice comment that we withhold your also announced three public meetings personal identifying information from Background on the draft EIS and draft HCP, which public review, we cannot guarantee that Section 9 of the ESA prohibits take of we held in June 2017, in three Nebraska cities. We reopened the comment period we will be able to do so. All fish and wildlife species listed as submissions from organizations or endangered (16 U.S.C. 1538). Under for the draft EIS and draft HCP in the businesses and from individuals section 3 of the ESA, the term ‘‘take’’ Federal Register on September 8, 2017 identifying themselves as means to ‘‘harass, harm, pursue, hunt, (82 FR 42561). The final EIS addresses representatives or officials of shoot, wound, kill, trap, capture, or public comments on the draft EIS. organizations or businesses will be collect, or attempt to engage in any such Proposed Action conduct’’ (16 U.S.C. 1532(19)). made available for public disclosure in Under section 10(a)(1)(B) of the ESA We propose to issue a 50-year permit their entirety. for incidental take of the American (16 U.S.C. 1539(a)(1)(B)), the Service Next Steps may issue permits to authorize take of burying beetle if NPPD’s HCP meets all listed fish and wildlife species that is the ESA’s section 10(a)(1)(B) permit We will evaluate the permit issuance criteria. The permit would incidental to, and not the purpose of, application, final HCP, and public authorize take of the American burying carrying out an otherwise lawful comments to determine whether the beetle incidental to the proposed activity. The Service shall issue an application meets the requirements of incidental take permit to non-Federal construction, operation, and maintenance, including emergency section 10(a) of the ESA. This entities, provided the following criteria determination includes our compliance are met: repairs, of the R-Project. The permit • would require NPPD to implement the with section 7 of the ESA through an The taking will be incidental. intra-Service consultation. We will rely • The applicant will minimize and final HCP, which includes measures to on the results of this consultation, our mitigate, to the maximum extent avoid, minimize, mitigate, and monitor practicable, the impact of such taking. the impacts of the authorized take. ROD under NEPA, and the above • The applicant will develop an HCP NPPD would avoid the incidental take findings on permit issuance criteria to and ensure that adequate funding for the of other federally listed species by decide whether to issue the permit with plan will be provided. implementing avoidance measures appropriate terms and conditions. If all • The taking will not appreciably identified in the final HCP. requirements are met, we will sign the reduce the likelihood of the survival The 345-kilovolt R-Project ROD and issue the permit to NPPD. We and recovery of the species in the wild. transmission line would be will post the signed ROD and related • The applicant will carry out any approximately 225 miles long in north- documents on our website at https:// other measures that the Secretary of the central Nebraska. The permit would www.fws.gov/nebraskaes/R-Project.php. Interior may require as being necessary authorize take within 1 mile on each or appropriate for the purposes of the side of the R-Project centerline from Authority Stapleton, Nebraska, north to the HCP. We provide this notice under section Regulations governing permits for Thedford Substation and 4 miles on 10(c) of the ESA (16 U.S.C. 1531 et seq.) endangered species are set forth in title each side of the centerline from the 50 of the Code of Federal Regulations Thedford Substation east to a new Holt and its implementing regulations for (CFR) at part 17, section 17.22 (50 CFR County Substation. incidental take permits (50 CFR 17.22) 17.22). Construction of the R-Project would and NEPA (42 U.S.C. 4321 et seq.) and NEPA requires that Federal agencies permanently remove 33 acres and analyze their proposed actions to temporarily disturb 1,250 acres of determine whether the actions may American burying beetle habitat over significantly affect the human the term of the permit. To fully offset
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its implementing regulations (40 CFR comment addressing the following significantly increase the take of species 1506.6; 43 CFR part 46). issues: (1) Is the collection necessary to of migratory birds relative to their the proper functions of the Service; (2) continental population sizes. Michael Thabault, will this information be processed and We monitored subsistence harvest of Assistant Regional Director—Ecological used in a timely manner; (3) is the migratory birds using household Services, Mountain-Prairie Region, U.S. Fish estimate of burden accurate; (4) how surveys in the Yukon-Kuskokwim Delta and Wildlife Service, Lakewood, Colorado. might the Service enhance the quality, region in 1985–2002 and in the Bristol [FR Doc. 2019–01600 Filed 2–7–19; 8:45 am] utility, and clarity of the information to Bay region in 1995–2002. Since 2004, BILLING CODE 4333–15–P be collected; and (5) how might the the Alaska Migratory Bird Co- Service minimize the burden of this Management Council—Harvest collection on the respondents, including Assessment Program (AMBCC–HAP) DEPARTMENT OF THE INTERIOR through the use of information conducts regular surveys across Alaska Fish and Wildlife Service technology. to document the subsistence harvest of Comments that you submit in birds and their eggs. The statewide [FWS–R7–MB–2018–N137; response to this notice are a matter of harvest assessment program helps to FXMB12610700000–190–FF07M01000; OMB public record. We will include or describe geographical and seasonal Control Number 1018–0124] summarize each comment in our request harvest patterns, and to track trends in to OMB to approve this ICR. Before harvest levels. The program relies on Agency Information Collection including your address, phone number, collaboration among the Service, the Activities; Alaska Subsistence Bird email address, or other personal ADF&G, and diverse Alaska Native Harvest Survey identifying information in your organizations. AGENCY: Fish and Wildlife Service, comment, you should be aware that We collect harvest data for about 60 Interior. your entire comment—including your bird species/categories and their eggs ACTION: Notice of Information personal identifying information—may (ducks, geese, swans, cranes, seabirds, Collection; request for comment. be made publicly available at any time. shorebirds, grebes and loons, and grouse While you can ask us in your comment and ptarmigan) in the subsistence SUMMARY: In accordance with the to withhold your personal identifying eligible areas of Alaska. The survey Paperwork Reduction Act of 1995, we, information from public review, we covers spring, summer, and fall harvest the U.S. Fish and Wildlife Service cannot guarantee that we will be able to in most regions. (Service) are proposing to renew an do so. In collaboration with Alaska Native information collection. Abstract: The Migratory Bird Treaty organizations, we hire local resident DATES: Interested persons are invited to Act of 1918 (16 U.S.C. 703–712) and the surveyors to collect the harvest data. submit comments on or before April 9, Fish and Wildlife Act of 1956 (16 U.S.C. The surveyors list all households in the 2019. 742d) designate the Department of the communities, randomly selects Interior as the key agency responsible households to be surveyed, and ADDRESSES: Send your comments on the interview households that have agreed information collection request (ICR) by for managing migratory bird populations that frequent the United States and for to participate. To ensure anonymity of mail to the Service Information setting harvest regulations that allow for harvest information, we identify Collection Clearance Officer, U.S. Fish the conservation of those populations. households by a numeric code. Since and Wildlife Service, MS: BPHC, 5275 These responsibilities include gathering the beginning of the survey in 2004, Leesburg Pike, Falls Church, VA 22041– data on various aspects of migratory twice we have re-evaluated and revised 3803 (mail); or by email to Info_Coll@ bird harvest. We use harvest data to survey methods to streamline fws.gov. Please reference OMB Control review regulation proposals and to issue procedures and minimize respondent Number 1018–0124 in the subject line of harvest regulations. burden. We use the following forms for your comments. The Migratory Bird Treaty Act household participation: FOR FURTHER INFORMATION CONTACT: To Protocol Amendment (1995) • FWS Form 3–2380 (Tracking Sheet request additional information about (Amendment) provides for the and Household Consent). The surveyor this ICR, contact Madonna L. Baucum, customary and traditional use of visits each household selected to Service Information Collection migratory birds and their eggs for participate in the survey to obtain _ Clearance Officer, by email at Info subsistence use by indigenous household consent to participate. The [email protected], or by telephone at (703) inhabitants of Alaska. The Amendment surveyor uses this form to record 358–2503. states that its intent is not to cause household consent. SUPPLEMENTARY INFORMATION: In significant increases in the take of • FWS Forms 3–2381–1, 3–2381–2, accordance with the Paperwork species of migratory birds relative to 3–2381–3, and 3–2381–4 (Harvest Reduction Act of 1995, we provide the their continental population sizes. A Report). The Harvest Report has general public and other Federal submittal letter from the Department of drawings of bird species most agencies with an opportunity to State to the White House (May 20, 1996) commonly available for harvest in comment on new, proposed, revised, accompanied the Amendment and different regions of Alaska, with fields and continuing collections of specified the need for harvest for recording numbers of birds and eggs information. This helps us assess the monitoring. The submittal letter stated taken. There are four versions of this impact of our information collection that the Service, the Alaska Department form: Interior Alaska, North Slope, requirements and minimize the public’s of Fish and Game (ADF&G), and Alaska Southern Coastal Alaska, and Western reporting burden. It also helps the Native organizations would collect Alaska. This form has a sheet for each public understand our information harvest information cooperatively season surveyed, and each sheet has collection requirements and provide the within the subsistence eligible areas. fields for the household code, requested data in the desired format. Harvest data help to ensure that community name, harvest year, date of We are soliciting comments on the customary and traditional subsistence completion, and comments. proposed ICR that is described below. uses of migratory birds and their eggs by Following the most recent re- We are especially interested in public indigenous inhabitants of Alaska do not evaluation of survey methods, the
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sampling design was revised to include maximize accuracy of harvest estimates Form Number: 3–2380, 3–2381–1, only 5 of 12 management regions as an given the survey funding. We also 3–2381–2, 3–2381–3, and 3–2381–4. index to the statewide harvest, these 5 reduced the number of household visits Type of Review: Extension of a regions representing about 90% of the from seasonal (3 times per year) to currently approved collection. statewide subsistence bird harvest. This annual (once a year). These Respondents/Affected Public: modification was needed to make modifications much reduced the Households within subsistence eligible survey effort compatible with the estimated survey burden. areas of Alaska. funding available for the survey. The Title of Collection: Alaska Migratory Respondent’s Obligation: Voluntary. number of communities and households Bird Subsistence Harvest Household Frequency of Collection: Annually. to be surveyed each year were also Survey. Total Estimated Annual Nonhour adjusted based on statistical methods to OMB Control Number: 1018–0124. Burden Cost: None.
Average Average Completion number of number of time per Total annual Activity annual annual response burden hours respondents responses (minutes)
3–2380 Tracking Sheet and Household Consent 723 723 5 58 3–2381–1 thru 3–2381–4 Harvest Report (three seasonal sheets) 645 645 15 155
Totals ...... 1,368 1,368 ...... 213
An agency may not conduct or request to the State Center Community agency that has control of the Native sponsor and a person is not required to College District—Fresno City College. If American human remains and respond to a collection of information no additional requestors come forward, associated funerary objects. The unless it displays a currently valid OMB transfer of control of the human remains National Park Service is not responsible control number. and associated funerary objects to the for the determinations in this notice. The authority for this action is the lineal descendants, Indian Tribes, or Paperwork Reduction Act of 1995 (44 Native Hawaiian organizations stated in Consultation U.S.C. 3501 et seq.). this notice may proceed. A detailed assessment of the human Dated: February 5, 2019. DATES: Lineal descendants or remains was made by the State Center Madonna L. Baucum, representatives of any Indian Tribe or Community College District—Fresno Information Collection Clearance Officer, U.S. Native Hawaiian organization not City College professional staff in Fish and Wildlife Service. identified in this notice that wish to consultation with representatives of the [FR Doc. 2019–01601 Filed 2–7–19; 8:45 am] request transfer of control of these Big Sandy Rancheria of Western Mono BILLING CODE 4333–15–P human remains and associated funerary Indians of California (previously listed objects should submit a written request as the Big Sandy Rancheria of Mono with information in support of the Indians of California); Buena Vista DEPARTMENT OF THE INTERIOR request to the State Center Community Rancheria of Me-Wuk Indians of College District—Fresno City College at California; Cold Springs Rancheria of National Park Service the address in this notice by March 11, Mono Indians of California; Middletown [NPS–WASO–NAGPRA–NPS0027204; 2019. Rancheria of Pomo Indians of California; PPWOCRADN0–PCU00RP14.R50000] ADDRESSES: Mary Beth Miller, Interim Northfork Rancheria of Mono Indians of Dean of Social Sciences, in care of Jill California; Picayune Rancheria of Notice of Inventory Completion: The Minar, Ph.D., Fresno City College of The Chukchansi Indians of California; Santa State Center Community College State Center Community College Rosa Indian Community of the Santa District—Fresno City College, Fresno, District, 1101 E University Avenue, Rosa Rancheria, California; Shingle CA Fresno, CA 93741, telephone (559) 442– Springs Band of Miwok Indians, Shingle 8210, email jill.minar@ Springs Rancheria (Verona Tract), AGENCY: National Park Service, Interior. fresnocitycollege.edu. California; Table Mountain Rancheria ACTION: Notice. SUPPLEMENTARY INFORMATION: Notice is (previously listed as the Table Mountain SUMMARY: The State Center Community here given in accordance with the Rancheria of California) Tejon Indian College District—Fresno City College Native American Graves Protection and Tribe; Tule River Indian Tribe of the has completed an inventory of human Repatriation Act (NAGPRA), 25 U.S.C. Tule River Reservation, California; and remains and associated funerary objects, 3003, of the completion of an inventory Tuolumne Band of Me-Wuk Indians of in consultation with the appropriate of human remains and associated the Tuolumne Rancheria of California. Indian Tribes or Native Hawaiian funerary objects under the control of the The California Valley Miwok Tribe, organizations, and has determined that State Center Community College California; Chicken Ranch Rancheria of there is a cultural affiliation between the District—Fresno City College, Fresno, Me-Wuk Indians of California; Fort human remains and associated funerary CA. The human remains and associated McDermitt Paiute and Shoshone Tribes objects and present-day Indian Tribes or funerary objects were removed from of the Fort McDermitt Indian Native Hawaiian organizations. Lineal CA–FRE–2481, Fresno County, CA. Reservation, Nevada and Oregon; Ione descendants or representatives of any This notice is published as part of the Band of Miwok Indians of California; Indian Tribe or Native Hawaiian National Park Service’s administrative Jackson Band of Miwuk Indians organization not identified in this notice responsibilities under NAGPRA, 25 (previously listed as the Jackson that wish to request transfer of control U.S.C. 3003(d)(3). The determinations in Rancheria of Me-Wuk Indians of of these human remains and associated this notice are the sole responsibility of California); Pyramid Lake Paiute Tribe funerary objects should submit a written the museum, institution, or Federal of the Pyramid Lake Reservation,
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Nevada; Reno-Sparks Indian Colony, and the Big Sandy Rancheria of Western If no additional requestors come Nevada; Walker River Paiute Tribe of Mono Indians of California (previously forward, transfer of control of the the Walker River Reservation, Nevada; listed as the Big Sandy Rancheria of human remains to the lineal and the Yerington Paiute Tribe of the Mono Indians of California), based on descendants, Indian Tribes, or Native Yerington Colony & Campbell Ranch, geography and oral tradition. Hawaiian organizations stated in this Nevada were contacted and invited to Additional Requestors and Disposition notice may proceed. consult, but did not participate. DATES: Lineal descendants or Two non-federally recognized groups, Lineal descendants or representatives representatives of any Indian Tribe or the Dunlap Band of Mono Indians and of any Indian Tribe or Native Hawaiian Native Hawaiian organization not the Traditional Choinumni Tribe, organization not identified in this notice identified in this notice that wish to participated in consultation. One non- that wish to request transfer of control request transfer of control of these federally recognized group, the of these human remains and associated human remains should submit a written Wukchumni Tribe, was invited to funerary objects should submit a written request with information in support of consult, but did not participate. request with information in support of the request to the Morris Museum at the Hereafter, all the Indian Tribes and the request to Mary Beth Miller, Interim address in this notice by March 11, non-federally recognized Indian groups Dean of Social Sciences, in care of Jill 2019. listed in this section are referred to as Minar, Ph.D., Fresno City College of The ‘‘The Consulted and Notified Tribes and State Center Community College ADDRESSES: Maria Ribaudo, Collections Groups.’’ District, 1101 E University Avenue, Manager, Morris Museum, 6 Normandy Fresno, CA 93741, telephone (559) 442– Heights Road, Morristown, NJ 07960, History and Description of the Remains 8210, email jill.minar@ telephone (973) 971–3735, email In 1996 and 1998, human remains fresnocitycollege.edu, by March 11, [email protected]. representing, at minimum, one 2019. After that date, if no additional SUPPLEMENTARY INFORMATION: Notice is individual were removed from CA– requestors have come forward, transfer here given in accordance with the FRE–2481 in Fresno County, CA. This of control of the human remains and Native American Graves Protection and site was excavated by Don Wren and his associated funerary objects to the Big Repatriation Act (NAGPRA), 25 U.S.C. field archeology class for the Wiser Sandy Rancheria of Western Mono 3003, of the completion of an inventory Project, and is located on private Indians of California (previously listed of human remains under the control of property. In January 2017, funded by a as the Big Sandy Rancheria of Mono the Morris Museum, Morristown, NJ. 2016 NAGPRA Consultation/ Indians of California) may proceed. The human remains were removed from Documentation grant awarded to the The State Center Community College Minisink Island, Sussex County, NJ. State Center Community College District—Fresno City College is This notice is published as part of the District, an osteological examination of responsible for notifying The Consulted National Park Service’s administrative the faunal collections was conducted to and Notified Tribes and Groups that this responsibilities under NAGPRA, 25 determine if human remains were notice has been published. U.S.C. 3003(d)(3). The determinations in present. That examination resulted in Dated: December 18, 2018. this notice are the sole responsibility of the museum, institution, or Federal the identification of the human remains Melanie O’Brien, agency that has control of the Native described in this inventory. The human Manager, National NAGPRA Program. remains belong to one adult of American human remains. The National indeterminate sex, and are represented [FR Doc. 2019–01628 Filed 2–7–19; 8:45 am] Park Service is not responsible for the by one tooth and three tooth fragments. BILLING CODE 4312–52–P determinations in this notice. No known individuals were identified. Consultation The three associated funerary objects are DEPARTMENT OF THE INTERIOR one steatite rim sherd, one blue A detailed assessment of the human hexagonal trade bead, and one ochre National Park Service remains was made by the Morris fragment. Museum professional staff in 1995. The [NPS–WASO–NAGPRA–NPS0027203: Morris Museum invited the Delaware Determinations Made by the State PPWOCRADN0–PCU00RP14.R50000] Nation, Oklahoma, and Stockbridge Center Community College District— Munsee Community, Wisconsin, to Notice of Inventory Completion: Morris Fresno City College consult, but did not receive any requests Museum, Morristown, NJ Officials of the State Center to review the human remains. Community College District—Fresno AGENCY: National Park Service, Interior. History and Description of the Remains City College have determined that: ACTION: Notice. • Pursuant to 25 U.S.C. 3001(9), the On April 4, 1942, human remains human remains described in this notice SUMMARY: The Morris Museum has representing, at minimum, one represent the physical remains of one completed an inventory of human individual, were removed from individual of Native American ancestry, remains, in consultation with the Minisink Island, Sussex County, NJ, by based on archeological context. appropriate Indian Tribes or Native Phillip Launer and J.P. Clark. The • Pursuant to 25 U.S.C. 3001(3)(A), Hawaiian organizations, and has human remains, consisting of bone the three objects described in this notice determined that there is a cultural fragments ranging in size from half an are reasonably believed to have been affiliation between the human remains inch to four inches, were donated to the placed with or near individual human and present-day Indian Tribes or Native Morris Museum by J.P. Clark. remains at the time of death or later as Hawaiian organizations. Lineal Geographic affiliation was attributed to part of the death rite or ceremony. descendants or representatives of any the Munsee-Lenape-Delaware of New • Pursuant to 25 U.S.C. 3001(2), there Indian Tribe or Native Hawaiian Jersey and Pennsylvania. There are no is a relationship of shared group organization not identified in this notice additional records or information identity that can be reasonably traced that wish to request transfer of control known about the human remains. No between the Native American human of these human remains should submit known individuals were identified. No remains and associated funerary objects a written request to the Morris Museum. associated funerary objects are present.
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Determinations Made by the Morris identified in this notice that wish to items purchased from Thornburgh with Museum claim these cultural items should the Indian Curio Company. Based on Officials of the Morris Museum have submit a written request to the St. consultation with the Osage Nation, the determined that: Joseph Museum. If no additional tattooing needle was a component of a • Pursuant to 25 U.S.C. 3001(9), the claimants come forward, transfer of sacred bundle, was removed from the human remains described in this notice control of the cultural items to the lineal bundle, and was sold to Mr. George. represent the physical remains of one descendants, Indian Tribes, or Native On an unknown date, Harry L. George individual of Native American ancestry. Hawaiian organizations stated in this acquired a bundle of counting sticks. notice may proceed. • Pursuant to 25 U.S.C. 3001(2), there During consultation with the Osage is a relationship of shared group DATES: Lineal descendants or Nation, the bundle of counting sticks identity that can be reasonably traced representatives of any Indian Tribe or was identified as a consecrated item and between the Native American human Native Hawaiian organization not an object of cultural patrimony. remains and the Delaware Nation, identified in this notice that wish to Consultation with the Osage Nation Oklahoma, and Stockbridge Munsee claim these cultural items should on these three objects began in July Community, Wisconsin. submit a written request with information in support of the claim to 2015. Representatives of the Osage Additional Requestors and Disposition the St. Joseph Museum, at the address Nation visited the St. Joseph Museum in Lineal descendants or representatives in this notice by March 11, 2019. July 2017 to view the Harry L. George of any Indian Tribe or Native Hawaiian ADDRESSES: Trevor Tutt, St. Joseph collection. During consultation, the organization not identified in this notice Museums, Inc., 3406 Frederick Avenue, Osage Nation identified the objects that wish to request transfer of control St. Joseph, MO 64506, telephone (816) listed above as objects of cultural of these human remains should submit 232–8471, email trevor@ patrimony. After consulting with the a written request with information in stjosephmuseum.org. Osage Traditional Cultural Advisors Committee, in July 2018, the Osage support of the request to Maria Ribaudo, SUPPLEMENTARY INFORMATION: Notice is Nation requested the repatriation of Collections Manager, Morris Museum, 6 here given in accordance with the these three cultural items. Normandy Heights Road, Morristown, Native American Graves Protection and NJ 07960, telephone (973) 971–3735, Repatriation Act (NAGPRA), 25 U.S.C. Determinations Made by the St. Joseph email [email protected], by 3005, of the intent to repatriate cultural Museum March 11, 2019. After that date, if no items under the control of the St. Joseph additional requestors have come Museums, Inc., St. Joseph, MO, that Officials of the St. Joseph Museum forward, transfer of control of the meet the definition of objects of cultural have determined that: human remains to the Delaware Nation, patrimony under 25 U.S.C. 3001. • Pursuant to 25 U.S.C. 3001(3)(D), Oklahoma, and Stockbridge Munsee This notice is published as part of the the three cultural items described above Community, Wisconsin, may proceed. National Park Service’s administrative have ongoing historical, traditional, or The Morris Museum is responsible for responsibilities under NAGPRA, 25 notifying the Delaware Nation, cultural importance central to the U.S.C. 3003(d)(3). The determinations in Native American group or culture itself, Oklahoma, and Stockbridge Munsee this notice are the sole responsibility of Community, Wisconsin, that this notice rather than property owned by an the museum, institution, or Federal individual. has been published. agency that has control of the Native • Dated: December 18, 2018. American cultural items. The National Pursuant to 25 U.S.C. 3001(2), there is a relationship of shared group Melanie O’Brien, Park Service is not responsible for the identity that can be reasonably traced Manager, National NAGPRA Program. determinations in this notice. between the objects of cultural [FR Doc. 2019–01611 Filed 2–7–19; 8:45 am] History and Description of the Cultural patrimony and The Osage Nation BILLING CODE 4312–52–P Items (previously listed as the Osage Tribe). The three objects of cultural Additional Requestors and Disposition DEPARTMENT OF THE INTERIOR patrimony are a Life Stick, tattooing needle from a sacred bundle, and a stick Lineal descendants or representatives National Park Service bundle. In October 1915, Harry L. of any Indian Tribe or Native Hawaiian George purchased an ‘‘Osage Life Stick’’ organization not identified in this notice [NPS–WASO–NAGPRA–NPS0027166; from Vern Thornburgh of Lincoln, NE, PPWOCRADN0–PCU00RP14.R50000] that wish to claim these cultural items for $12.50. Francis La Flesche was in should submit a written request with Notice of Intent To Repatriate Cultural correspondence with Mr. Thornburgh information in support of the claim to Items: St. Joseph Museums, Inc., St. regarding the Life Stick and stated that Trevor Tutt, St. Joseph Museums, Inc., Joseph, MO it belonged to ‘‘See Haw’’ before his 3406 Frederick Avenue, St. Joseph, MO death. La Flesche also stated that the 64506, telephone (816) 232–8471, email AGENCY: National Park Service, Interior. Life Stick had belonged to one of the [email protected], by March Buffalo clans of the Osage tribe and was ACTION: Notice. 11, 2019. After that date, if no used in ceremonies. Based on additional claimants have come SUMMARY: The St. Joseph Museum, in consultation and the available forward, transfer of control of the consultation with the appropriate information, the Life Stick fits the objects of cultural patrimony to The Indian Tribes or Native Hawaiian NAGPRA definition of an object of Osage Nation (previously listed as the organizations, has determined that the cultural patrimony. cultural items listed in this notice meet In March 1916, Harry L. George Osage Tribe) may proceed. the definition of objects of cultural purchased a tattooing needle from the The St. Joseph Museum is responsible patrimony. Lineal descendants or Indian Curio Company of Oklahoma for notifying The Osage Nation representatives of any Indian Tribe or City, OK, for $10. According to (previously listed as the Osage Tribe) Native Hawaiian organization not correspondence, George was trading that this notice has been published.
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Dated: December 11, 2018. U.S.C. 3003(d)(3). The determinations in Man by Ruth Ingersoll Baily. These Melanie O’Brien, this notice are the sole responsibility of items were collected from an unknown Manager, National NAGPRA Program. the museum, institution, or Federal context. The two objects of cultural [FR Doc. 2019–01640 Filed 2–7–19; 8:45 am] agency that has control of the Native patrimony are one cooking basket and BILLING CODE 4312–52–P American cultural items. The National one burden basket. Park Service is not responsible for the In 1946, three cultural items were determinations in this notice. donated to the San Diego Museum of DEPARTMENT OF THE INTERIOR Man by the heirs of Edith H. Williams. History and Description of the Cultural These items were collected by Mrs. Items National Park Service Williams from an unknown context. The In 1928, one cultural item was two sacred objects are basket caps. The [NPS–WASO–NAGPRA–NPS0027195; bequeathed to the San Diego Museum of PPWOCRADN0–PCU00RP14.R50000] one object of cultural patrimony is a Man by Abbie Warren Goodale Boutelle. mush basket. Notice of Intent To Repatriate Cultural The item was collected by Mrs. Boutelle In 1951, one cultural item was Items: San Diego Museum of Man, San from an unknown context. Beginning in donated to the San Diego Museum of Diego, CA 1895, Mrs. Boutelle and her husband Man by Dr. Henry Stoever. These items acquired extensive collections of were collected from an unknown AGENCY: National Park Service, Interior. cultural items made by California context. The object of cultural ACTION: Notice. indigenous communities. At the time of patrimony is a mush basket. her death, Mrs. Boutelle left more than In 1953, two cultural items were SUMMARY: The San Diego Museum of 300 Native American cultural resources donated to the San Diego Museum of Man, in consultation with the to the San Diego Museum of Man. The Man by Mrs. Irving T. Snyder. These appropriate Indian Tribes or Native one object of cultural patrimony is a items were collected by Mrs. Snyder Hawaiian organizations, has determined storage basket. from an unknown context prior to 1935, that the cultural items listed in this In 1931, three cultural items were but most likely around 1900. The one notice meet the definition of donated to the San Diego Museum of unassociated funerary object is a unassociated funerary objects, sacred Man by Mrs. Stewart Kendall. These puberty basket. The one sacred objects objects, and/or objects of cultural items were collected from an unknown is a basket cap. patrimony. Lineal descendants or context by the donor’s father-in-law, In 1956, one cultural item was representatives of any Indian Tribe or most likely between 1890 and 1906. The purchased by the San Diego Museum of Native Hawaiian organization not two sacred objects are a basket cap, and Man from Fred T. Wheeler Curios. This identified in this notice that wish to an apron made of twisted strands of item was collected from an unknown claim these cultural items should yellow and brown colored grass and context. The sacred item is a drum. The submit a written request to the San decorated with a band of seed pods. The drum is rawhide stretched over a square Diego Museum of Man. If no additional one object of cultural patrimony is a wooden frame with a braided leather claimants come forward, transfer of basket tray. loop handle at top. The drum is painted control of the cultural items to the lineal In 1931, 13 cultural items were red with black and yellow geometric descendants, Indian Tribes, or Native donated to the San Diego Museum of designs. Hawaiian organizations stated in this Man by Commander and Mrs. Earl B. In 1956, one cultural item was notice may proceed. Brix. These items were collected from received by the San Diego Museum of Man as part of an exchange with the DATES: Lineal descendants or an unknown context by Mrs. Brix’s representatives of any Indian Tribe or father, Dr. William L. Kneedler, a U.S. Denver Museum of Art. The item was Native Hawaiian organization not Army surgeon whose various Army collected by Grace Nicholson at an identified in this notice that wish to appointments enabled him to collect unknown date and from an unknown claim these cultural items should cultural items from various locales. The context. The sacred item is a headband. submit a written request with one unassociated funerary object is a The headband is made of white information in support of the claim to basket cap. The six sacred objects are buckskin adorned with red woodpecker the San Diego Museum of Man at the basket caps. The six objects of cultural scalps, woodpecker feathers, cormorant address in this notice by March 11, patrimony are four mush baskets, one or mallard feathers, and white deer hair. 2019. storage basket, and one burden basket. When not in use, the headband is In 1936, two cultural items were wrapped on a cylindrical log of wood. ADDRESSES: Ben Garcia, San Diego donated to the San Diego Museum of In 1957, seven cultural items were Museum of Man, 1350 El Prado, San Man by Dr. J. H. Mallery. These items received at the San Diego Museum of Diego, CA 92101, telephone (619) 239– were collected from an unknown Man as part of an exchange with the 2001, email [email protected]. context by Dr. Mallery. The two objects State Indian Museum. These objects SUPPLEMENTARY INFORMATION: Notice is of cultural patrimony are one burden were acquired by the State Indian here given in accordance with the basket and one baby basket. Museum through an unknown context. Native American Graves Protection and In 1939, one cultural item was The three sacred items are one Repatriation Act (NAGPRA), 25 U.S.C. donated to the San Diego Museum of headdress, one set of feather plumes, 3005, of the intent to repatriate cultural Man by Mrs. Herbert Doolittle. This and one otter-skin quiver. The four items under the control of the San Diego item was collected from an unknown unassociated funerary objects are two Museum of Man, San Diego, CA, that context. The sacred item is a basket cap. obsidian blades and two steatite pipes. meet the definition of unassociated In 1941, one cultural item was The headdress is a buckskin hoop funerary objects, sacred objects, and donated to the San Diego Museum of stuffed with bark fiber and covered with objects of cultural patrimony under 25 Man by Mrs. Emma A. Davis. This item woodpecker and duck feathers, as well U.S.C. 3001. was collected from an unknown context. as deer hair. Small slits on either side This notice is published as part of the The sacred item is a basket cap. of the hoop are for the holding National Park Service’s administrative In 1945, two cultural items were ceremonial feather plumes. The responsibilities under NAGPRA, 25 donated to the San Diego Museum of accompanying feather plumes are of
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great blue heron feathers attached with Sometime, prior to 1957, and most with or near individual human remains sinew to a pointed stick. likely around 1929, one cultural item at the time of death or later as part of In 1961, one cultural item was was donated to the San Diego Museum the death rite or ceremony and are purchased by the San Diego Museum of of Man by a Mrs. Carter. No additional believed, by a preponderance of the Man from Ralph Altman of Altman information exists as to the context from evidence, to have been removed from a Antiques. No additional information which the item was collected. The one specific burial site of a Native American exists as to the context from which this object of cultural patrimony is a mush individual. item was collected. The sacred object is basket. • a buckskin and abalone shell dress with At an unknown date, the San Diego Pursuant to 25 U.S.C. 3001(3)(C), glass beading. Museum of Man acquired four cultural the 26 cultural items identified above as In 1963, two cultural items were objects that lack information and sacred objects are specific ceremonial donated to the San Diego Museum of documentation concerning the donor or objects needed by traditional Native Man by Dr. Janice Kelly. These objects the context of collection. The three American religious leaders for the were collected by the donor’s mother unassociated funerary objects are one practice of traditional Native American from an unknown context sometime mush basket, one obsidian blade, and religions by their present-day adherents. around 1900. The two objects of cultural one cluster of deer hooves. The one • Pursuant to 25 U.S.C. 3001(3)(D), patrimony are one storage basket and object of cultural patrimony is a mush the 24 cultural items identified above as one basket tray. basket. objects of cultural patrimony have In 1964, six cultural items were Information provided during donated to the San Diego Museum of consultation between the San Diego ongoing historical, traditional, or Man by Mr. Robert Whitson Jr. These Museum of Man and the Tolowa Dee-ni’ cultural importance central to the objects were collected from an unknown Nation (previously listed as the Smith Native American group or culture itself, context by the donor’s grand-father, Mr. River Rancheria, California) rather than property owned by an W. W. Whitson, who operated a curio documented and confirmed the individual. shop in Coronado, CA prior to 1900. identification and affiliation of these • Pursuant to 25 U.S.C. 3001(2), there The one sacred object is a basket cap. cultural items. Representatives from the is a relationship of shared group The five objects of cultural patrimony Tolowa Dee-ni’ Nation (previously identity that can be reasonably traced are one hopper basket, three mush listed as the Smith River Rancheria, between the unassociated funerary baskets, and one basket tray. California) informed the Museum that objects, sacred objects, and objects of In 1969, one cultural item was the items identified above as sacred cultural patrimony and the Tolowa Dee- donated to the San Diego Museum of objects are needed by present-day ni’ Nation (previously listed as the Man by the Serra Museum, San Diego religious leaders for use in modern day Smith River Rancheria, California). Historical Society. This object was religious ceremonies by the Tolowa Dee- collected by the Serra Museum from an ni’ adherents, including the Naa-yvlh- Additional Requestors and Disposition unknown context. The object of cultural sri-nee-dash (World Renewal Feather patrimony is a storage basket. Dance), the Ch’a∼lh-day wvn Srdee-yvn Lineal descendants or representatives In 1975, one cultural resource was (Flower Dance), and the Shin-chu Nee- of any Indian Tribe or Native Hawaiian donated to the San Diego Museum of dash (Summer solstice Nee-dash). organization not identified in this notice Man by Mrs. I. Norman Lawson. This Certain indicators on the items that wish to claim these cultural items item was collected by Mrs. Lawson identified above as unassociated should submit a written request with sometime around 1925 from an funerary objects show they are funerary, information in support of the claim to unknown source in the Santa Fe area of and to have been buried with individual Ben Garcia, San Diego Museum of Man, New Mexico. The sacred item is a basket human remains at the time of death as 1350 El Prado, San Diego, CA 92101, cap. part of the death rite of the Tolowa Dee- telephone (619) 239–2001, email In 1984, one cultural item was ni’ culture. As the San Diego Museum [email protected], by March donated to the San Diego Museum of of Man does not possess or control any 11, 2019. After that date, if no Man by Dorothy Copeland and Walter human remains of Tolowa Dee-ni, these additional claimants have come D. Cannon, Jr. This item was collected objects are unassociated funerary forward, transfer of control of by the donors’ parents, Walter and Lucia objects. unassociated funerary objects, sacred Cannon, around 1916. The Cannons Those items identified above as objects, and objects of cultural were prolific basket collectors in objects of cultural patrimony were patrimony to the Tolowa Dee-ni’ Nation Southern California between 1906 and shown by Tolowa Dee-ni’ (previously listed as the Smith River 1942, and operated a general store in representatives to have an ongoing and Rancheria, California) may proceed. Campo, CA beginning in 1932. They historical cultural importance to the regularly traded goods and commodities people of the Nation. The Tolowa Dee- The San Diego Museum of Man is with local indigenous people in ni’ consider these objects to be responsible for notifying the Tolowa exchange for cultural items. The one communally owned by the Tolowa Dee- Dee-ni’ Nation (previously listed as the sacred item is a basket cap. ni’ Nation (previously listed as the Smith River Rancheria, California) that In 1989, three cultural items were Smith River Rancheria, California) and this notice has been published. donated to the San Diego Museum of to be inalienable by any individual. Man by Mrs. Margaret Barlow. These Dated: December 17, 2018. items were collected from an unknown Determinations Made by the San Diego Melanie O’Brien, context. The three sacred items are Museum of Man Manager, National NAGPRA Program. basket caps. Officials of the San Diego Museum of [FR Doc. 2019–01617 Filed 2–7–19; 8:45 am] In 2002, one cultural item was Man have determined that: BILLING CODE 4312–52–P donated to the San Diego Museum of • Pursuant to 25 U.S.C. 3001(3)(B), Man by Ira Feinswog. This item was the nine cultural items identified above collected from an unknown context. The as unassociated funerary objects are one sacred item is a basket cap. reasonably believed to have been placed
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DEPARTMENT OF THE INTERIOR U.S.C. 3003(d)(3). The determinations in Classic period (between A.D. 1150 and this notice are the sole responsibility of 1450). National Park Service the museum, institution, or Federal Between 1910 and 1911, human remains representing, at minimum, four [NPS–WASO–NAGPRA–NPS0027160; agency that has control of the Native PPWOCRADN0–PCU00RP14.R50000] American human remains and individuals were removed from the area associated funerary objects. The near 32nd Avenue and Buckeye Road in Notice of Inventory Completion: National Park Service is not responsible Maricopa County, AZ by an unknown Pueblo Grande Museum, City of for the determinations in this notice. individual. On October 20, 1928, the Phoenix, AZ human remains and associated funerary Consultation object were donated by Florence AGENCY: National Park Service, Interior. A detailed assessment of the human Blackmer to the Arizona Museum, ACTION: Notice. remains was made by the Pueblo Grande which later became the Phoenix Museum professional staff in Museum of History. No known SUMMARY: The Pueblo Grande Museum consultation with representatives of the individuals were identified. The has completed an inventory of human Gila River Indian Community of the Gila fragmentary and cremated human remains and associated funerary objects, River Indian Reservation, Arizona; Hopi remains belong to four adults. One is in consultation with the appropriate Tribe of Arizona; Salt River Pima- possibly male, another is possibly Indian Tribes or Native Hawaiian Maricopa Indian Community of the Salt female, and the other two are of organizations, and has determined that River Reservation, Arizona; and the indeterminate sex. The one associated there is a cultural affiliation between the Zuni Tribe of the Zuni Reservation, New funerary object is a Hohokam Sacaton human remains and associated funerary Mexico. Red-on-Buff ceramic jar. The location objects and present-day Indian Tribes or History and Description of the Remains where the human remains and Native Hawaiian organizations. Lineal associated funerary object were descendants or representatives of any On September 10, 2009, human collected is not a known archeological Indian Tribe or Native Hawaiian remains representing, at minimum, 19 site. The Sacaton Red-on-Buff jar dates organization not identified in this notice individuals, and 34 associated funerary between A.D. 900 and 1150, which is that wish to request transfer of control objects were transferred from the within the Hohokam Sedentary period. of these human remains and associated Phoenix Museum of History (which The lower Salt River Valley was funerary objects should submit a written closed in 2009) to the Pueblo Grande intensively occupied by the prehistoric request to the Pueblo Grande Museum. Museum. On February 4, 2011 human Hohokam archeological culture during If no additional requestors come remains representing, at minimum, one this time. forward, transfer of control of the individual, and two associated funerary At an unknown date, human remains human remains and associated funerary objects were transferred from the representing, at minimum, one objects to the lineal descendants, Indian Phoenix Museum of History (which individual were removed from the area Tribes, or Native Hawaiian closed in 2009) to the Pueblo Grande near the site of AZ T:12:256(ASM)/ organizations stated in this notice may Museum. The collection history Grand Canal Ruin in Maricopa County, proceed. information regarding these 20 AZ by an unknown collector. The individuals and 36 associated funerary DATES: Lineal descendants or human remains and associated funerary objects follows. objects were identified in the collection representatives of any Indian Tribe or At an unknown date, likely during the Native Hawaiian organization not of the Phoenix Museum of History in late 1800s or early 1900s, human 2002. No known individuals were identified in this notice that wish to remains representing, at minimum, one request transfer of control of these identified. The fragmentary and individual were removed from a site in cremated human remains belong to a human remains and associated funerary Maricopa County, AZ, by James H. objects should submit a written request young adult of indeterminate sex. The McClintock. The site was identified as two associated funerary objects are one with information in support of the ‘‘the great ruin on the Tempe Road,’’ request to the Pueblo Grande Museum at plain ware sherd and one daub which is consistent with either AZ fragment. Grand Canal Ruin is a the address in this notice by March 11, U:9:1(ASM)/Pueblo Grande or AZ 2019. prehistoric Hohokam habitation site that T:12:1(ASM)/La Ciudad. At an was heavily occupied from A.D. 1100 to ADDRESSES: Lindsey Vogel-Teeter, unknown date, the human remains and 1450. Pueblo Grande Museum, 4619 E associated funerary objects were loaned At an unknown date, likely during the Washington Street, Phoenix, AZ 85331, to the Arizona Museum, which later late 1800s or early 1900s, human telephone (602) 495–0901, email became the Phoenix Museum of History. remains representing, at minimum, one [email protected]. No known individual was identified. individual were removed by an SUPPLEMENTARY INFORMATION: Notice is The fragmentary and cremated human unknown individual from a location here given in accordance with the remains belong to a young to middle- about 100 yards away from the redwood Native American Graves Protection and aged adult of indeterminate sex. The pipeline intake on the Verde River in Repatriation Act (NAGPRA), 25 U.S.C. two associated funerary objects are a Maricopa County, AZ. On October 27, 3003, of the completion of an inventory partial Gila Red Ware ceramic jar and a 1932, the human remains and associated of human remains and associated Tucson Polychrome ceramic sherd. funerary objects were donated by Mrs. funerary objects under the control of the Tucson Polychrome dates between A.D. J.A.R. Irvine to the Arizona Museum, Pueblo Grande Museum, Phoenix, AZ. 1275 and 1450, which is within the which later became the Phoenix The human remains and associated Hohokam Classic period. Both AZ Museum of History. No known funerary objects were removed from U:9:1(ASM) and AZ T:12:1(ASM) were individuals were identified. The Maricopa County, AZ, and central or located on the north side of the Salt fragmentary and cremated human southern AZ. River, along Canal System Two, and remains belong to a middle-aged to old This notice is published as part of the were occupied throughout the Hohokam adult of indeterminate sex. The two National Park Service’s administrative cultural sequence, reaching their associated funerary objects are a responsibilities under NAGPRA, 25 greatest extent during the Hohokam Hohokam Gila Plain Ware ceramic jar
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and one lot of plain ware sherds. The collector. The human remains were funerary objects are seven textile location where the human remains and identified in the collection of the fragments associated with the perinatal associated funerary objects were Phoenix Museum of History in 2002. No infant, six textile fragments associated collected is not a known archeological known individuals were identified. The with the infant who is one to two years site. While the redwood pipeline intake fragmentary and cremated human old, and nine textile fragments, one itself was located on the Fort McDowell remains belong to an older adolescent or leather sandal, and one woven sandal Yavapai Nation Indian Reservation, adult of indeterminate sex. The one associated with the infant under six whether or not these human remains associated funerary object is a partial, months old. Although provenience and associated funerary objects were burnt Glycymeris shell bracelet. The information for these individuals does collected on tribal lands is unclear. This presence of this funerary object and the not exist, the associated funerary objects area of the lower Verde River was preservation of the human remains are are consistent with known examples of occupied by the Hohokam archeological consistent with the Hohokam Hohokam textiles, as identified by the culture between A.D. 1 and 1450. archeological culture, which intensively two conservators and a representative of At an unknown date, likely during the occupied Central Arizona between A.D. the Salt River Pima-Maricopa Indian late 1800s or early 1900s, human 1 and 1450. Community. One associated textile has remains representing, at minimum, six At an unknown date, human remains brocade ornamentation that has been individuals were removed by Herbert R. representing, at minimum, one Patrick from an unknown location individual were removed from an observed at the Hohokam site of Casa somewhere in the lower Salt River unknown location by an unknown Grande. Mummified human remains Valley (Maricopa County, AZ). On May collector. The human remains were and complete textiles from the 20, 1921, the human remains were identified in the collection of the Hohokam archeological culture are donated to the Arizona Museum, which Phoenix Museum of History in 2002. No usually found in dry cave contexts. The later became the Phoenix Museum of known individuals were identified. The Hohokam archeological culture was History. No known individuals were fragmentary and cremated human present across central and southern identified. The co-mingled and partial remains belong to an older, possibly Arizona between A.D. 1 and 1450. to fragmentary human remains were male, adult. The one associated funerary At an unknown date, likely during the likely obtained from inhumations or object is a plain ware ceramic sherd that late 1800s or early 1900s, human surface collections. The preservation is tempered with platy schist. A remains representing, at minimum, two state of these individuals varies, and ceramicist identified the temper in the individuals were removed by Herbert R. includes some organic materials, which funerary object as being consistent with Patrick from an unknown location, suggests that individuals of both phyllite tempered ceramics produced somewhere in the lower Salt River prehistoric and historic date are present. along the middle Gila River and Valley (Maricopa County, AZ). On May The human remains are those of one associated with the Hohokam 20, 1921, the human remains and child, one sub-adult, three young adults, archeological culture. Central Arizona associated funerary objects were and one young to middle-aged adult. was intensively occupied by the donated to the Arizona Museum, which One individual is male, one is female, Hohokam archeological culture between later became the Phoenix Museum of and the other individuals are of an A.D. 1 and 1450. A piece of paper with History. No known individuals were indeterminate sex. No associated the human remains reading ‘‘Sallie identified. The fragmentary and funerary objects are present. Herbert R. Medina’’ might identify the donor. cremated human remains belong to a Patrick documented canals and Around 1900, human remains middle-aged, possibly adult, and a representing, at minimum, three prehistoric architecture in the lower Salt young to middle-aged adult of individuals were collected by Thomas River Valley, and wrote a booklet called indeterminate sex. The three associated Whitney from an unknown location in The Ancient Canal Systems and Pueblos funerary objects are two Hohokam Gila central or southern Arizona. Thomas of the Salt River Valley in 1903. Red Ware ceramic jars, and one lot of According to a deed dated April 8, 1884, Whitney (d. 3/1/1919) lived in sherds. Herbert R. Patrick documented and an article in the Arizona Weekly California between 1880 and 1910, and canals and prehistoric architecture in Gazette (1/28/1899 pg. 4:4), Herbert R. while there is no record of him living in the lower Salt River Valley, and wrote Patrick lived within 100 feet of a Arizona, his son, John Thomas Whitney a booklet called The Ancient Canal Hohokam platform mound, and owned (d. 12/2/1939), was an undertaker and land within the site boundaries of AZ partial owner of the Whitney and Systems and Pueblos of the Salt River T:12:1(ASM)/La Ciudad. Historic Murphy Funeral Home in Phoenix, AZ, Valley in 1903. According to a deed documents and consultation with the between 1900 and 1939. On February dated April 8, 1884, and an article in the Gila River Indian Community and the 21, 1951, the granddaughter of Thomas Arizona Weekly Gazette (1/28/1899 pg. Salt River Pima-Maricopa Indian Whitney, Marion Russell, donated the 4:4), Herbert R. Patrick lived within 100 Community demonstrate that Herbert R. human remains and associated funerary feet of a Hohokam platform mound, and Patrick was a collector of Hohokam, objects to the Arizona Museum, which owned land within the site boundaries O’odham, and Hopi material culture. later became the Phoenix Museum of of AZ T:12:1(ASM)/La Ciudad. Historic More likely than not, these individuals History. No known individuals were documents and consultation with the are Hohokam or historic O’odham, and identified. The human remains are those Gila River Indian Community and the were collected in the lower Salt River of three children who were naturally Salt River Pima-Maricopa Indian Valley. This area of Arizona was mummified. All three are of Community demonstrate that Herbert R. intensively occupied by the prehistoric indeterminate sex. They include a Patrick was a collector of Hohokam, Hohokam archeological culture between perinatal (pre-term) infant, an infant O’odham, and Hopi material culture. A.D. 1 and 1450, and continues to be between one and two years of age, and More likely than not, the associated occupied by the O’odham people. an infant under six months of age. The funerary object types suggest that these At an unknown date, human remains individuals—who are wrapped in individuals belong to the Hohokam representing, at minimum, one Hohokam textiles, were displayed at the archeological culture, and were individual were removed from an Arizona Museum for an unspecified collected in the lower Salt River Valley, unknown location by an unknown length of time. The 24 associated which was intensively occupied by the
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prehistoric Hohokam archeological remains at the time of death or later as Representatives of any Indian Tribe or culture between A.D. 1 and 1450. part of the death rite or ceremony. Native Hawaiian organization not The Ak Chin Indian Community of • Pursuant to 25 U.S.C. 3001(2), there identified in this notice that wish to the Maricopa (Ak Chin) Indian is a relationship of shared group request transfer of control of these Reservation, Arizona; Gila River Indian identity that can be reasonably traced human remains should submit a written Community of the Gila River Indian between the Native American human request to Princeton University. If no Reservation, Arizona; Salt River Pima- remains and associated funerary objects additional requestors come forward, Maricopa Indian Community of the Salt and the Ak-Chin Indian Community transfer of control of the human remains River Reservation, Arizona; and the (previously listed as the Ak Chin Indian to the Indian Tribes or Native Hawaiian Tohono O’odham Nation of Arizona Community of the Maricopa (Ak Chin) organizations stated in this notice may comprise one cultural group known as Indian Reservation, Arizona); Gila River proceed. the O’odham. Cultural continuity Indian Community of the Gila River DATES: Representatives of any Indian between the prehistoric Hohokam and Indian Reservation, Arizona; Hopi Tribe Tribe or Native Hawaiian organization present day O’odham peoples is of Arizona; Salt River Pima-Maricopa not identified in this notice that wish to supported by continuities in settlement Indian Community of the Salt River request transfer of control of these pattern, architectural technologies, Reservation, Arizona; Tohono O’odham human remains should submit a written basketry, textiles, ceramic technology, Nation of Arizona; and the Zuni Tribe request with information in support of and ritual practices. Oral traditions that of the Zuni Reservation, New Mexico the request to Princeton University at are documented for the Ak Chin Indian (hereafter referred to as ‘‘The Tribes’’). the address in this notice by March 11, Community of the Maricopa (Ak Chin) Additional Requestors and Disposition 2019. Indian Reservation, Arizona; Gila River ADDRESSES: Bryan R. Just, Princeton Indian Community of the Gila River Lineal descendants or representatives of any Indian Tribe or Native Hawaiian University Art Museum, Princeton, NJ Indian Reservation, Arizona; Salt River 08544, telephone (609) 258–8805, email Pima-Maricopa Indian Community of organization not identified in this notice that wish to request transfer of control [email protected]. the Salt River Reservation, Arizona; and SUPPLEMENTARY INFORMATION: Notice is the Tohono O’odham Nation of Arizona of these human remains and associated funerary objects should submit a written here given in accordance with the support their cultural affiliation with Native American Graves Protection and Hohokam sites in central and southern request with information in support of the request to Lindsey Vogel-Teeter, Repatriation Act (NAGPRA), 25 U.S.C. Arizona. 3003, of the completion of an inventory The Hopi Tribe of Arizona considers Pueblo Grande Museum, 4619 E Washington Street, Phoenix, AZ 85331, of human remains under the control of all of Arizona to be within traditional Princeton University, Princeton, NJ. The Hopi lands or within areas where Hopi telephone (602) 495–0901, email [email protected], by human remains were removed from clans migrated in the past. Oral Circular Mound, Detroit River, Wayne traditions and material culture that are March 11, 2019. After that date, if no additional requestors have come County, MI; Great Mound, Rouge River, documented for the Hopi Tribe support Wayne County, MI; and Mound at their cultural affiliation with Hohokam forward, transfer of control of the human remains and associated funerary Beaver Harbor, Charlevoix County, MI. sites in central and southern Arizona. This notice is published as part of the Several Hopi clans and religious objects to The Tribes may proceed. The Pueblo Grande Museum is National Park Service’s administrative societies are derived from ancestors who responsible for notifying The Tribes that responsibilities under NAGPRA, 25 migrated from the south, and likely this notice has been published. U.S.C. 3003(d)(3) and 43 CFR 10.11(d). identified with the Hohokam tradition. The determinations in this notice are Migration from portions of the Dated: December 11, 2018. the sole responsibility of the museum, Southwest to present day Zuni are Melanie O’Brien, institution, or Federal agency that has documented in the oral traditions of Manager, National NAGPRA Program. control of the Native American human kivas, priesthoods, and medicine [FR Doc. 2019–01629 Filed 2–7–19; 8:45 am] remains. The National Park Service is societies of the Zuni Tribe of the Zuni BILLING CODE 4312–52–P not responsible for the determinations Reservation, New Mexico. These in this notice. traditions support their affiliation with the central and southern Arizona DEPARTMENT OF THE INTERIOR Consultation Hohokam archeological culture. A detailed assessment of the human Historical linguistic analysis also National Park Service remains was made by Princeton suggests interaction between ancestral [NPS–WASO–NAGPRA–NPS0027140; University professional staff in Zuni and Uto-Aztecan speakers during PPWOCRADN0–PCU00RP14.R50000] consultation with representatives of the the late Hohokam period. Bay Mills Indian Community, Michigan; Notice of Inventory Completion: Grand Traverse Band of Ottawa and Determinations Made by the Pueblo Princeton University, Princeton, NJ Grande Museum Chippewa Indians, Michigan; AGENCY: National Park Service, Interior. Hannahville Indian Community, Officials of the Pueblo Grande ACTION: Notice. Michigan; Keweenaw Bay Indian Museum have determined that: Community, Michigan; Lac Vieux Desert • Pursuant to 25 U.S.C. 3001(9), the SUMMARY: Princeton University has Band of Lake Superior Chippewa human remains described in this notice completed an inventory of human Indians of Michigan, Little River Band represent the physical remains of 20 remains, in consultation with the of Ottawa Indians, Michigan; Little individuals of Native American appropriate Indian Tribes or Native Traverse Bay Bands of Odawa Indians, ancestry. Hawaiian organizations, and has Michigan; Match-e-be-nash-she-wish • Pursuant to 25 U.S.C. 3001(3)(A), determined that there is no cultural Band of Pottawatomi Indians of the 36 objects described in this notice affiliation between the human remains Michigan; Nottawaseppi Huron Band of are reasonably believed to have been and any present-day Indian Tribes or the Potawatomi, Michigan (previously placed with or near individual human Native Hawaiian organizations. listed as the Huron Potawatomi, Inc.);
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Pokagon Band of Potawatomi Indians, University on April 18, 1874. The The Invited Tribes that this notice has Michigan and Indiana; Saginaw human remains are grouped together been published. Chippewa Indian Tribe of Michigan, and thus cannot be linked to any of the Dated: December 11, 2018. and the Sault Ste. Marie Tribe of specific three locations listed as the Melanie O’Brien, Chippewa Indians, Michigan, hereafter sources. Analysis of the human remains Manager, National NAGPRA Program. referred to as ‘‘The Consulted Tribes.’’ suggests that between twelve and Additional invitations to consult were eighteen individuals are represented. [FR Doc. 2019–01610 Filed 2–7–19; 8:45 am] sent to the Absentee-Shawnee Tribe of Sex cannot be determined due to the BILLING CODE 4312–52–P Indians of Oklahoma; Bad River Band of lack of pelves or intact crania. At least the Lake Superior Tribe of Chippewa one individual was in early childhood DEPARTMENT OF THE INTERIOR Indians of the Bad River Reservation, (from 2–6 years old), at least one was an Wisconsin; Chippewa Cree Indians of adolescent (from 16–21 years old), and National Park Service the Rocky Boy’s Reservation, Montana the remainder were adults. No known (previously listed as the Chippewa-Cree individuals were identified. No [NPS–WASO–NAGPRA–NPS0027191; Indians of the Rocky Boy’s Reservation, associated funerary objects are present. PPWOCRADN0–PCU00RP14.R50000] Montana); Citizen Potawatomi Nation, Oklahoma; Delaware Nation, Oklahoma; Determinations Made by Princeton Notice of Intent To Repatriate Cultural Delaware Tribe of Indians; Eastern University Items: U.S. Fish and Wildlife Service, Office of Law Enforcement, Rio Rico, Shawnee Tribe of Oklahoma; Kickapoo Officials of Princeton University have AZ Traditional Tribe of Texas; Kickapoo determined that: Tribe of Indians of the Kickapoo • Pursuant to 25 U.S.C. 3001(9), the AGENCY: National Park Service, Interior. Reservation in Kansas; Kickapoo Tribe human remains described in this notice ACTION: Notice. of Oklahoma; Lac Courte Oreilles Band are Native American based on of the Lake Superior Chippewa Indians associated records and Henry Gillman’s SUMMARY: The U.S. Fish and Wildlife of Wisconsin; Lac du Flambeau Band of 1874 publication ‘‘The Mound-Builders Service, in consultation with the the Lake Superior Chippewa Indians of and Platycnemism in Michigan’’ appropriate Indian Tribes or Native the Lac du Flambeau Reservation of (Smithsonian Report for 1975). Hawaiian organizations, has determined Wisconsin; Miami Tribe of Oklahoma; • Pursuant to 25 U.S.C. 3001(9), the that the cultural item listed in this Minnesota Chippewa Tribe, Minnesota human remains described in this notice notice meets the definition of object of (Six component reservations: Bois Forte represent the physical remains of 12 cultural patrimony. Lineal descendants Band (Nett Lake); Fond du Lac Band; individuals of Native American or representatives of any Indian Tribe or Grand Portage Band; Leech Lake Band; ancestry. Native Hawaiian organization not Mille Lacs Band; White Earth Band); • Pursuant to 25 U.S.C. 3001(2), a identified in this notice that wish to Ottawa Tribe of Oklahoma; Peoria Tribe relationship of shared group identity claim this cultural item should submit of Indians of Oklahoma; Prairie Band cannot be reasonably traced between the a written request to the U.S. Fish and Potawatomi Nation (previously listed as Native American human remains and Wildlife Service, Office of Law the Prairie Band of Potawatomi Nation, any present-day Indian Tribe. Enforcement, Rio Rico, AZ. If no Kansas); Red Cliff Band of Lake • additional claimants come forward, Superior Chippewa Indians of According to the final judgments of the Indian Claims Commission or the transfer of control of the cultural item to Wisconsin; Red Lake Band of Chippewa the lineal descendants, Indian Tribes, or Indians, Minnesota; Sac & Fox Nation of Court of Federal Claims, Treaties, Acts of Congress, or Executive Orders, the Native Hawaiian organizations stated in Missouri in Kansas and Nebraska; Sac & this notice may proceed. Fox Nation, Oklahoma; Sac & Fox Tribe land from which the Native American DATES: Lineal descendants or of the Mississippi in Iowa; Seneca human remains were removed is the aboriginal land of The Consulted Tribes representatives of any Indian Tribe or Nation of Indians (previously listed as Native Hawaiian organization not the Seneca Nation of New York); and The Invited Tribes. • Pursuant to 43 CFR 10.11(c)(1), the identified in this notice that wish to Seneca-Cayuga Nation (previously listed claim this cultural item should submit as the Seneca-Cayuga Tribe of disposition of the human remains may a written request with information in Oklahoma); Shawnee Tribe; Sokaogon be to The Consulted Tribes and The support of the claim to the U.S. Fish and Chippewa Community, Wisconsin; St. Invited Tribes. Wildlife Service, Office of Law Croix Chippewa Indians of Wisconsin; Additional Requestors and Disposition Enforcement at the address in this Tonawanda Band of Seneca (previously notice by March 11, 2019. listed as the Tonawanda Band of Seneca Representatives of any Indian Tribe or Indians of New York); Turtle Mountain Native Hawaiian organization not ADDRESSES: Jeff Moore, Wildlife Band of Chippewa Indians of North identified in this notice that wish to Inspector, U.S. Fish and Wildlife Dakota; and the Wyandotte Nation, request transfer of control of these Service, P.O. Box 4405, Rio Rico, AZ human remains should submit a written 85648, telephone (520) 287–4625, email hereinafter referred to as ‘‘The Invited _ Tribes.’’ request with information in support of jeffery [email protected]. the request to Bryan R. Just, Princeton SUPPLEMENTARY INFORMATION: Notice is History and Description of the Remains University Art Museum, Princeton, NJ here given in accordance with the In 1871–1873, human remains 08544, telephone (609) 258–8805, email Native American Graves Protection and representing, at minimum, 12 [email protected], by March 11, Repatriation Act (NAGPRA), 25 U.S.C. individuals were removed from Circular 2019. After that date, if no additional 3005, of the intent to repatriate a Mound, Detroit River, Wayne County, requestors have come forward, transfer cultural item under the control of the MI; Great Mound, Rouge River, Wayne of control of the human remains to The U.S. Fish and Wildlife Service, Office of County, MI; and Mound at Beaver Consulted Tribes and The Invited Tribes Law Enforcement, Rio Rico, AZ, that Harbor, Charlevoix County, MI, by may proceed. meets the definition of an object of Henry Gillman. Mr. Gillman donated Princeton University is responsible cultural patrimony under 25 U.S.C. the human remains to Princeton for notifying The Consulted Tribes and 3001.
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This notice is published as part of the DEPARTMENT OF THE INTERIOR Repatriation Act (NAGPRA), 25 U.S.C. National Park Service’s administrative 3003, of the completion of an inventory responsibilities under NAGPRA, 25 National Park Service of human remains and associated U.S.C. 3003(d)(3). The determinations in [NPS–WASO–NAGPRA–NPS0027114; funerary objects under the control of the this notice are the sole responsibility of PPWOCRADN0–PCU00RP14.R50000] U.S. Department of Interior, Bureau of the museum, institution, or Federal Reclamation, Salt Lake City, UT. The agency that has control of the Native Notice of Inventory Completion: U.S. human remains and associated funerary American cultural item. The National Department of Interior, Bureau of objects were removed from 22 Park Service is not responsible for the Reclamation, Upper Colorado Region, archeological sites in the Navajo determinations in this notice. Salt Lake City, UT; Museum of New Reservoir District in Rio Arriba County, Mexico, Museum of Indian Arts and NM; San Juan County, NM; and History and Description of the Cultural Culture, Santa Fe, NM; and Arizona Archuleta County, CO from 1956 to Item State University, School of Human 1963 by archeologists from the Museum Evolution and Social Change, Tempe, of New Mexico and School for On January 30, 2018, one cultural AZ Advanced Research (then known as the item was seized at the Port of Entry in School of American Research) under Nogales, AZ. The object seized is a deer AGENCY: National Park Service, Interior. contract with the National Park Service. head. The object has been identified by ACTION: Notice. Additional excavations were conducted the Pascua Yaqui Tribe of Arizona as a at one of the sites in Archuleta County, Yaqui ceremonial deer head. SUMMARY: The U.S. Department of the CO, during 1987 by Complete Interior, Bureau of Reclamation, Upper Archaeological Service Associates under Determinations Made by the U.S. Fish Colorado Region (Reclamation); contract with Reclamation. This notice and Wildlife Service Museum of New Mexico, Museum of includes cultural items dating from the Indian Arts and Culture (Museum of Officials of the U.S. Fish and Wildlife Los Pinos Phase (A.D. 1–400), Sambrito Indian Arts and Culture); and Arizona Phase (A.D. 400–700), Rosa Phase (A.D. Service have determined that: State University, School of Human • 750–850), Piedra Phase (A.D. 800–1000), Pursuant to 25 U.S.C. 3001(3)(D), Evolution and Social Change (ASU) and Arboles Phase (A.D. 950–1050). the one cultural item described above have completed an inventory of human This notice is published as part of the remains and associated funerary objects, has ongoing historical, traditional, or National Park Service’s administrative in consultation with the appropriate cultural importance central to the responsibilities under NAGPRA, 25 Indian Tribes or Native Hawaiian Native American group or culture itself, U.S.C. 3003(d)(3). The determinations in organizations, and have determined that rather than property owned by an this notice are the sole responsibility of there is a cultural affiliation between the individual. the museum, institution, or Federal human remains and associated funerary • agency that has control of the Native Pursuant to 25 U.S.C. 3001(2), there objects and present-day Indian Tribes or American human remains and is a relationship of shared group Native Hawaiian organizations. Lineal associated funerary objects. The identity that can be reasonably traced descendants or representatives of any National Park Service is not responsible between the object of cultural patrimony Indian Tribe or Native Hawaiian for the determinations in this notice. and the Pascua Yaqui Tribe of Arizona. organization not identified in this notice Additional Requestors and Disposition that wish to request transfer of control Consultation of these human remains and associated A detailed assessment of the human Lineal descendants or representatives funerary objects should submit a written remains was made by Reclamation, of any Indian Tribe or Native Hawaiian request to Reclamation. If no additional Museum of Indian Arts and Culture, and organization not identified in this notice requestors come forward, transfer of control of the human remains and ASU professional staff in consultation that wish to claim the cultural item with representatives of the Hopi Tribe of should submit a written request with associated funerary objects to the lineal descendants, Indian Tribes, or Native Arizona; Navajo Nation, Arizona, New information in support of the claim to Mexico & Utah; Ohkay Owingeh, New Jeff Moore, Wildlife Inspector, U.S. Fish Hawaiian organizations stated in this notice may proceed. Mexico (previously listed as the Pueblo and Wildlife Service, P.O. Box 4405, Rio of San Juan); Pueblo of Acoma, New Rico, AZ 85648, telephone (520) 287– DATES: Lineal descendants or Mexico; Pueblo of Jemez, New Mexico; 4625, email [email protected], by representatives of any Indian Tribe or Pueblo of Pojoaque, New Mexico; March 11, 2019. After that date, if no Native Hawaiian organization not Pueblo of Santa Ana, New Mexico; additional claimants have come identified in this notice that wish to Pueblo of Santa Clara, New Mexico; forward, transfer of control of the object request transfer of control of these Pueblo of Zia, New Mexico; Southern of cultural patrimony to the Pascua human remains and associated funerary Ute Indian Tribe of the Southern Ute Yaqui Tribe of Arizona may proceed. objects should submit a written request Reservation, Colorado; Ute Mountain with information in support of the The U.S. Fish and Wildlife Service is Ute Tribe (previously listed as the Ute request to Reclamation at the address in Mountain Tribe of the Ute Mountain responsible for notifying the Pascua this notice by March 11, 2019. Yaqui Tribe of Arizona that this notice Reservation, Colorado, New Mexico & ADDRESSES: Nancy Coulam, U.S. Utah); and the Zuni Tribe of the Zuni has been published. Department of Interior, Bureau of Reservation, New Mexico (hereafter Dated: December 17, 2018. Reclamation, Upper Colorado Region, referred to as ‘‘The Tribes’’). Melanie O’Brien, 125 South State Street, Room 8100, Salt History and Description of the Remains Manager, National NAGPRA Program. Lake City, UT 84138, telephone (801) 524–3684, email [email protected]. [FR Doc. 2019–01612 Filed 2–7–19; 8:45 am] In 1961, human remains representing, SUPPLEMENTARY INFORMATION: Notice is at minimum, one individual were BILLING CODE 4312–52–P here given in accordance with the removed from LA 3430, in San Juan Native American Graves Protection and County, NM. No known individuals
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were identified. No associated funerary stone tools, one adobe, one antler, one were identified. No associated funerary objects are present. groundstone, one lot of debitage, one lot objects are present. In 1957, human remains representing, of corn cob, one mollusk cast, one From 1961–1962, human remains at minimum, one individual were worked stone, and one pipe fragment. representing, at minimum, four removed from LA 3434 (ASU 3483), San In 1960, human remains representing, individuals were removed from LA Juan County, NM. No known at minimum, nine individuals were 4363, the Uells Site, San Juan County, individuals were identified. No removed from LA 4148, Archuleta NM. No known individuals were associated funerary objects are present. County, NM. No known individuals identified. The four associated funerary In 1957, human remains representing, were identified. No associated funerary objects are two beads, one pottery at minimum, one individual were objects are present. vessel, and one sherd. removed from ASU 4048, San Juan In 1960, human remains representing, In 1962, human remains representing, County, NM. No known individuals at minimum, two individuals were at minimum, 52 individuals were were identified. No associated funerary removed from LA 4151, Archuleta removed from LA 4380, Bancos Village, objects are present. County, CO. No known individuals San Juan County, NM. No known In 1959, human remains representing, were identified. The one associated individuals were identified. The seven at minimum, one individual were funerary object is one pottery vessel. associated funerary objects are five removed from LA 4053, Archuleta From 1962–1963, human remains pottery vessels, one adobe pot stopper, County, CO. No known individuals representing, at minimum, 16 and one clay object. were identified. The six associated individuals were removed from LA In 1962, human remains representing, funerary objects are three worked bone 4169, the Oven Site, Archuleta County, at minimum, 10 individuals were tools, two elk bones, and one shell CO. No known individuals were removed from LA 4384, the Cemetery beads from a bracelet. identified. The 39 associated funerary Site, San Juan County, NM. No known In 1958, human remains representing, objects are 10 faunal remains, eight individuals were identified. The 35 at minimum, three individuals were pottery vessels, six stones, four sherds, associated funerary objects are 14 removed from LA 4054 (ASU 4056), San three worked bones, two chipped stone pottery vessels, seven gaming pieces, six Juan County, NM. No known tools, one ground stone, one lot of corn worked bones, three stones, two individuals were identified. No cobs, one lot of shells, one bead, one chipped stone tools, two faunal remains, associated funerary objects are present. shell bracelet, and one mat fragment. and one lot of shells. In 1961, human remains representing, In 1987, additional human remains In 1962, human remains representing, at minimum, 58 individuals were representing, at minimum, eight at minimum, one individual was removed from LA 4086, the Sanchez individuals were removed from LA removed from ASU 4385, San Juan Site, Archuleta County, CO. No known 4169, the Oven Site. No known County, NM. No known individuals individuals were identified. The 11 individuals were identified. The 44 were identified. No associated funerary associated funerary objects are four associated funerary objects are 11 faunal objects are present. pottery vessels, two worked bones, one remains, 10 worked bones, eight pottery In 1959, human remains representing, groundstone, one antler, one adobe vessels, four lots of sherds, three shells, at minimum, four individuals were plug, one pot rest, and one lot of corn two stones, two chipped stone tools, removed from LA 4406, the Candelaria cobs. two groundstone, one clay ball, and one Site, San Juan County, NM. No known In 1961, human remains representing, basket fragment. individuals were identified. No at minimum, three individuals were From 1960–1963, human remains associated funerary objects are present. removed from LA 4088, Archuleta representing, at minimum, 142 Osteological analysis indicates the County, CO. No known individuals individuals were removed from LA individuals are Native American. No were identified. The 12 associated 4195, Sambrito Village, San Juan known individuals or lineal funerary objects are five pottery vessels, County, NM. No known individuals descendants have been identified. The two pipes, one shell necklace, one were identified. The 88 associated evidence shows that the individuals are projectile point, one stone, one lot of funerary objects are 38 pottery vessels, culturally affiliated with the Pueblo of sherds, and one lot of faunal remains. 12 stones, 11 lots of sherds, seven Jemez, New Mexico. In 1961, human remains representing, worked bones, six shells, five beads, at minimum, two individuals were four faunal remains, one chipped stone Determinations Made by the U.S. removed from LA 4103, the Railroad tool, one crystal, one corn cob, one Department of Interior, Bureau of Site, Archuleta County, CO. No known bracelet, and one basket fragment. Reclamation individuals were identified. The one In 1963, human remains representing, Officials of the U.S. Department of associated funerary object is a pottery at minimum, six individuals were Interior, Bureau of Reclamation has vessel. removed from LA 4198, the Mascarenas determined that: In 1961, human remains representing, Site, San Juan County, NM. No known • Pursuant to 25 U.S.C. 3001(9), the at minimum, one individual were individuals were identified. The seven human remains described in this notice removed from LA 4120, Archuleta associated funerary objects are six represent the physical remains of 398 County, CO. No known individuals pottery vessels, and one chipped stone individuals of Native American were identified. No associated funerary tool. ancestry. objects are present. In 1960, human remains representing, • Pursuant to 25 U.S.C. 3001(3)(A), In 1963, human remains representing, at minimum, one individual were the 331 objects described in this notice at minimum, 71 individuals were removed from LA 4242, Rio Arriba are reasonably believed to have been removed from LA 4131, Sandoval County, NM. No known individuals placed with or near individual human Village, Archuleta County, CO. No were identified. No associated funerary remains at the time of death or later as known individuals were identified. The objects are present. part of the death rite or ceremony. 76 associated funerary objects are 29 In 1960, human remains representing, • Pursuant to 25 U.S.C. 3001(2), there pottery vessels, 12 stones, nine lots of at minimum, one individual were is a relationship of shared group sherds, six worked bones, six faunal removed from LA 4247, Rio Arriba identity that can be reasonably traced remains, four crystals, two chipped County, NM. No known individuals between the Native American human
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remains and associated funerary objects DATES: Lineal descendants or ancestral to the Lummi Tribe. Oral and the Pueblo of Jemez, New Mexico. representatives of any Indian Tribe or tradition, archeological evidence and Native Hawaiian organization not ethnographic accounts all support a Additional Requestors and Disposition identified in this notice that wish to cultural affiliation between the Lineal descendants or representatives claim this cultural item should submit unassociated funerary object from Guss of any Indian Tribe or Native Hawaiian a written request with information in Island and the Lummi Tribe of the organization not identified in this notice support of the claim to the Burke Lummi Reservation. that wish to request transfer of control Museum at the address in this notice by Determinations Made by the Thomas of these human remains and associated March 11, 2019. funerary objects should submit a written Burke Memorial Washington State ADDRESSES: Peter Lape, Burke Museum, Museum request with information in support of University of Washington, Box 353010, the request to Nancy Coulam, U.S. Seattle, WA 98195, telephone (206) Officials of the Thomas Burke Department of the Interior, Bureau of 685–3849 Ext 2, email [email protected]. Memorial Washington State Museum Reclamation, Upper Colorado Region, have determined that: SUPPLEMENTARY INFORMATION: Notice is 125 South State Street, Room 8100, Salt • Pursuant to 25 U.S.C. 3001(3)(B), here given in accordance with the Lake City, UT 84138 telephone, (801) the one cultural item described above is Native American Graves Protection and 524–3684, email [email protected], by reasonably believed to have been placed Repatriation Act (NAGPRA), 25 U.S.C. March 11, 2019. After that date, if no with or near individual human remains 3005, of the intent to repatriate a additional requestors have come at the time of death or later as part of cultural item under the control of the forward, transfer of control of the the death rite or ceremony and are Thomas Burke Memorial Washington human remains and associated funerary believed, by a preponderance of the State Museum, University of objects to the Pueblo of Jemez, New evidence, to have been removed from a Washington, Seattle, WA, that meets the Mexico may proceed. specific burial site of a Native American definition of an unassociated funerary The U.S. Department of Interior, individual. object under 25 U.S.C. 3001. • Bureau of Reclamation is responsible for This notice is published as part of the Pursuant to 25 U.S.C. 3001(2), there notifying The Tribes that this notice has National Park Service’s administrative is a relationship of shared group been published. responsibilities under NAGPRA, 25 identity that can be reasonably traced Dated: December 4, 2018. U.S.C. 3003(d)(3). The determinations in between the unassociated funerary object and the Lummi Tribe of the Melanie O’Brien, this notice are the sole responsibility of Lummi Reservation. Program Manager, National NAGPRA the museum, institution, or Federal Program. agency that has control of the Native Additional Requestors and Disposition American cultural items. The National [FR Doc. 2019–01618 Filed 2–7–19; 8:45 am] Lineal descendants or representatives Park Service is not responsible for the BILLING CODE 4312–52–P of any Indian Tribe or Native Hawaiian determinations in this notice. organization not identified in this notice History and Description of the Cultural that wish to claim this cultural item DEPARTMENT OF THE INTERIOR Item(s) should submit a written request with National Park Service In 1946, one cultural item was information in support of the claim to removed from site 45–SJ–21, Guss Peter Lape, Burke Museum, University [NPS–WASO–NAGPRA–NPS0027194; Island, in San Juan County, WA, during of Washington, Box 353010, Seattle, WA PPWOCRADN0–PCU00RP14.R50000] a survey by B. Lane and F. Barnett. Lane 98195, telephone (206) 685–3849 Ext 2, and Barnett were accompanied by email [email protected], by March 11, Notice of Intent To Repatriate Cultural 2019. After that date, if no additional Items: Thomas Burke Memorial Arden King, who directed a University of Washington field school on San Juan claimants have come forward, transfer Washington State Museum, University of control of the unassociated funerary of Washington, Seattle, WA Island from 1946–1947. The cultural item was accessioned by the Burke object to the Lummi Tribe of the Lummi Reservation may proceed. AGENCY: National Park Service, Interior. Museum in 1951 (Burke Accn. #3649) The Burke Museum is responsible for ACTION: Notice. along with other archeological material from the field school. The one notifying the Lummi Tribe of the Lummi Reservation that this notice has SUMMARY: The Thomas Burke Memorial unassociated funerary object is a broken Washington State Museum (Burke hammerstone. been published. Museum), in consultation with the Guss Island, located in Garrison Bay Dated: December 17, 2018. appropriate Indian Tribes or Native on San Juan Island, is within the Melanie O’Brien, Hawaiian organizations, has determined aboriginal territory of the Lummi Tribe Manager, National NAGPRA Program. that the cultural item listed in this of the Lummi Reservation. Information [FR Doc. 2019–01627 Filed 2–7–19; 8:45 am] notice meets the definition of an provided during consultation indicates BILLING CODE 4312–52–P unassociated funerary object. Lineal that it was used as a burial island, descendants or representatives of any which corresponds with archeological Indian Tribe or Native Hawaiian evidence of Native American canoe DEPARTMENT OF THE INTERIOR organization not identified in this notice burials on Guss Island. Lummi oral that wish to claim this cultural item tradition and anthropological data National Park Service should submit a written request to the clearly associate the Lummi with San Burke Museum. If no additional Juan Island, including Guss Island [NPS–WASO–NAGPRA–NPS0027164; claimants come forward, transfer of (Suttles 1951, 1990). The archeological PPWOCRADN0–PCU00RP14.R50000] control of the cultural item to the lineal record shows continuous habitation Notice of Inventory Completion: descendants, Indian Tribes, or Native from approximately 2000 years ago Pueblo Grande Museum, Phoenix, AZ Hawaiian organizations stated in this through the mid-19th century by notice may proceed. Northern Straits peoples who were AGENCY: National Park Service, Interior.
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ACTION: Notice. River Pima-Maricopa Indian Archeological sites identified as Community of the Salt River Yavapai and located within Yavapai SUMMARY: The Pueblo Grande Museum Reservation, Arizona; Yavapai-Apache traditional lands have also been found has completed an inventory of human Nation of the Camp Verde Indian in and near Tuzigoot pueblo. remains, in consultation with the Reservation, Arizona; Yavapai-Prescott The Hopi Tribe of Arizona considers appropriate Indian Tribes or Native Indian Tribe (previously listed as the all of Arizona to be within traditional Hawaiian organizations, and has Yavapai-Prescott Tribe of the Yavapai Hopi lands or within areas where Hopi determined that there is a cultural Reservation, Arizona); and the Zuni clans migrated in the past. Oral affiliation between the human remains Tribe of the Zuni Reservation, New traditions and material culture, and present-day Indian Tribes or Native Mexico. including pottery traditions, Hawaiian organizations. Lineal National Park Service staff in the demonstrate continuity between the descendants or representatives of any Southern Arizona Office and the prehistoric village of Tuzigoot pueblo Indian Tribe or Native Hawaiian Intermountain Region Museum Services and the Hopi people. organization not identified in this notice Program were consulted regarding the The Zuni Tribe of the Zuni that wish to request transfer of control control of these human remains. In an Reservation, New Mexico, considers the of these human remains should submit email on 5/14/2018, they stated that Verde Valley to be within the migration a written request to the Pueblo Grande Pueblo Grande Museum has control of path of ancestral Zuni people. Museum. If no additional requestors these human remains. Archeological evidence, including come forward, transfer of control of the similarities in ceramic designs History and Description of the Remains human remains to the lineal demonstrates continuity between the descendants, Indian Tribes, or Native At an unknown date prior to 1950, prehistoric people of the Verde Valley Hawaiian organizations stated in this human remains representing, at and the people of Zuni. notice may proceed. minimum, three individuals were removed from Tuzigoot pueblo in Determinations Made by the Pueblo DATES: Lineal descendants or Grande Museum representatives of any Indian Tribe or Yavapai County, AZ, by an unknown Native Hawaiian organization not collector. Around 1950, the human Officials of the Pueblo Grande remains were donated by Mrs. Adele Museum have determined that: identified in this notice that wish to • request transfer of control of these DeLong (or Mrs. Adelede Long) to the Pursuant to 25 U.S.C. 3001(9), the human remains should submit a written Arizona Museum, which later became human remains described in this notice request with information in support of the Phoenix Museum of History. On represent the physical remains of three September 10, 2009, the human remains the request to the Pueblo Grande individuals of Native American were transferred from the Phoenix Museum at the address in this notice by ancestry. Museum of History (which closed in • Pursuant to 25 U.S.C. 3001(2), there March 11, 2019. 2009) to the Pueblo Grande Museum. is a relationship of shared group ADDRESSES: Lindsey Vogel-Teeter, The fragmentary human remains belong identity that can be reasonably traced Pueblo Grande Museum, 4619 E to one, possibly male, adult; one, between the Native American human Washington Street, Phoenix, AZ 85331, possibly female, young-adult; and one remains and the Ak-Chin Indian telephone (602) 495–0901, email child of indeterminate sex between the Community (previously listed as the Ak [email protected]. ages of 7–8 years old. No known Chin Indian Community of the SUPPLEMENTARY INFORMATION: Notice is individuals were identified. No Maricopa (Ak Chin) Indian Reservation, here given in accordance with the associated funerary objects are present. Arizona); Fort McDowell Yavapai Native American Graves Protection and Tuzigoot pueblo is a large, prehistoric Nation, Arizona; Gila River Indian Repatriation Act (NAGPRA), 25 U.S.C. Sinagua habitation site occupied Community of the Gila River Indian 3003, of the completion of an inventory between A.D. 1125 and A.D. 1425. Reservation, Arizona; Hopi Tribe of of human remains under the control of The Ak-Chin Indian Community Arizona; Salt River Pima-Maricopa the Pueblo Grande Museum, Phoenix, (previously listed as the Ak Chin Indian Indian Community of the Salt River AZ. The human remains were removed Community of the Maricopa (Ak Chin) Reservation, Arizona; Tohono O’odham from Tuzigoot pueblo, Yavapai County, Indian Reservation, Arizona); Gila River Nation of Arizona; Yavapai-Apache AZ. Indian Community of the Gila River Nation of the Camp Verde Indian This notice is published as part of the Indian Reservation, Arizona; Salt River Reservation, Arizona; Yavapai-Prescott National Park Service’s administrative Pima-Maricopa Indian Community of Indian Tribe (previously listed as the responsibilities under NAGPRA, 25 the Salt River Reservation, Arizona; and Yavapai-Prescott Tribe of the Yavapai U.S.C. 3003(d)(3). The determinations in the Tohono O’odham Nation of Arizona Reservation, Arizona); and the Zuni this notice are the sole responsibility of comprise one cultural group known as Tribe of the Zuni Reservation, New the museum, institution, or Federal the O’odham. The material culture Mexico, hereafter referred to as ‘‘The agency that has control of the Native found at Tuzigoot pueblo demonstrates Tribes.’’ American human remains. The National continuity between the earlier people at Park Service is not responsible for the the prehistoric site and the present-day Additional Requestors and Disposition determinations in this notice. O’odham. Lineal descendants or representatives The Fort McDowell Yavapai Nation, of any Indian Tribe or Native Hawaiian Consultation Arizona; Yavapai-Apache Nation of the organization not identified in this notice A detailed assessment of the human Camp Verde Indian Reservation, that wish to request transfer of control remains was made by the Pueblo Grande Arizona; and theYavapai-Prescott Indian of these human remains should submit Museum professional staff in Tribe (previously listed as the Yavapai- a written request with information in consultation with representatives of the Prescott Tribe of the Yavapai support of the request to Lindsey Vogel- Fort McDowell Yavapai Nation, Reservation, Arizona) comprise one Teeter, Pueblo Grande Museum, 4619 E Arizona; Gila River Indian Community cultural group known as the Yavapai. Washington Street, Phoenix, AZ 85331, of the Gila River Indian Reservation, They trace their ancestry to bands once telephone (602) 495–0901, email Arizona; Hopi Tribe of Arizona; Salt living in the Verde Valley. [email protected], by
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March 11, 2019. After that date, if no request with information in support of a cranium were recovered on Simeonof additional requestors have come the request to the Alaska Region USFWS Island by J. Beck on September 22, 1977. forward, transfer of control of the at the address in this notice by March The cranium was turned over to the human remains to The Tribes may 11, 2019. Alaska Region USFWS in Anchorage proceed. ADDRESSES: Edward DeCleva, Regional and later sent to the Alaska State Office The Pueblo Grande Museum is Historic Preservation Officer, Alaska of History and Archeology for inventory responsible for notifying The Tribes that Region U.S. Fish and Wildlife Service, in 2008. The cranium consists of several this notice has been published. 1011 East Tudor Road MS–235, fragmentary pieces. No known Dated: December 11, 2018. Anchorage, AK 99503, telephone (907) individuals were identified. No _ Melanie O’Brien, 786–3399, email edward decleva@ associated funerary objects are present. Manager, National NAGPRA Program. fws.gov. The cranium is that of an adult female, approximately 40 years old. SUPPLEMENTARY INFORMATION: Notice is [FR Doc. 2019–01626 Filed 2–7–19; 8:45 am] Metric and non-metric cranial features BILLING CODE 4312–52–P here given in accordance with the Native American Graves Protection and were utilized to determine cultural Repatriation Act (NAGPRA), 25 U.S.C. affiliation. The human remains indicate DEPARTMENT OF THE INTERIOR 3003, of the completion of an inventory the person to be of Native Alaskan of human remains under the control of descent, most likely Aleut. National Park Service the Alaska Region, USFWS, Anchorage, Determinations Made by the Alaska [NPS–WASO–NAGPRA–NPS0027144; AK. The human remains were removed Region USFWS from Simeonof Island, Aleutians East PPWOCRADN0–PCU00RP14.R50000] Officials of the Alaska Region USFWS Borough, AK. have determined that: Notice of Inventory Completion: U.S. This notice is published as part of the • Fish and Wildlife Service, Anchorage, National Park Service’s administrative Pursuant to 25 U.S.C. 3001(9), the AK responsibilities under NAGPRA, 25 human remains described in this notice U.S.C. 3003(d)(3). The determinations in represent the physical remains of one AGENCY: National Park Service, Interior. this notice are the sole responsibility of individual of Native American ancestry. • ACTION: Notice. the museum, institution, or Federal Pursuant to 25 U.S.C. 3001(2), there agency that has control of the Native is a relationship of shared group SUMMARY: The U.S. Fish and Wildlife American human remains. The National identity that can be reasonably traced Service, Alaska Region (Alaska Region Park Service is not responsible for the between the Native American human USFWS) has completed an inventory of determinations in this notice. remains and the Qagan Tayagungin human remains, in consultation with Tribe of Sand Point. the appropriate Indian Tribes or Native Consultation Additional Requestors and Disposition Hawaiian organizations, and has A detailed assessment of the human determined that there is a cultural remains was made by the Alaska Region Lineal descendants or representatives affiliation between the human remains USFWS professional staff in of any Indian Tribe or Native Hawaiian and present-day Indian Tribes or Native consultation with representatives of organization not identified in this notice Hawaiian organizations. Lineal Native Village of Unga and Qagan that wish to request transfer of control descendants or representatives of any Tayagungin Tribe of Sand Point Village. of these human remains should submit Indian Tribe or Native Hawaiian Also consulted were four non-federally a written request with information in organization not identified in this notice recognized groups—the Aleutian support of the request to Edward that wish to request transfer of control Pribilof Islands Association, Inc.; DeCleva, Regional Historic Preservation of these human remains should submit Shumagin Corporation; The Aleut Officer, Alaska Region U.S. Fish and a written request to the Alaska Region Corporation; and Unga Corporation. Wildlife Service, 1011 East Tudor Road, USFWS. If no additional requestors Hereafter, all the entities listed in this MS–235, Anchorage, AK 99503, come forward, transfer of control of the section are referred to as ‘‘The telephone (907) 786–3399, email human remains to the lineal Consulting Tribes.’’ [email protected], by March 11, descendants, Indian Tribes, or Native 2019. After that date, if no additional Hawaiian organizations stated in this History and Description of the Remains requestors have come forward, transfer notice may proceed. In 1977, human remains representing, of control of the human remains to the DATES: Lineal descendants or at minimum, one individual were Qagan Tayagungin Tribe of Sand Point representatives of any Indian Tribe or removed from Simeonof Island in the may proceed. Native Hawaiian organization not Aleutians East Borough, AK. Little The Alaska Region USFWS is identified in this notice that wish to information regarding the circumstances responsible for notifying The Consulting request transfer of control of these of removal was available to the Alaska Tribes that this notice has been human remains should submit a written Region USFWS. The human remains— published.
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Dated: December 11, 2018. funerary objects under the control of the San Juan County, UT. No known Melanie O’Brien, U.S. Department of the Interior, Bureau individuals were identified. No Manager, National NAGPRA Program. of Reclamation, Upper Colorado Region, associated funerary objects are present. [FR Doc. 2019–01613 Filed 2–7–19; 8:45 am] Salt Lake City, UT, and in the custody In 1959, human remains representing, at minimum, two individuals were BILLING CODE 4312–52–P of the University of Utah, Utah Museum of Natural History, Salt Lake City, UT. removed from 42SA366 (NA5501), The human remains and associated Husteds Well, a Kayenta Anasazi DEPARTMENT OF THE INTERIOR funerary objects were removed from pithouse in Forgotten Canyon, San Juan multiple locations in Kane and San Juan County, UT. No known individuals National Park Service Counties, UT. were identified. No associated funerary This notice is published as part of the objects are present. [NPS–WASO–NAGPRA–NPS0027116; In 1958, human remains representing, PPWOCRADN0–PCU00RP14.R50000] National Park Service’s administrative responsibilities under NAGPRA, 25 at minimum, two individuals were Notice of Inventory Completion: U.S. U.S.C. 3003(d)(3). The determinations in removed from 42SA396, a surface Department of the Interior, Bureau of this notice are the sole responsibility of scatter in Catfish Canyon, San Juan Reclamation, Upper Colorado Region, the museum, institution, or Federal County, UT. No known individuals Salt Lake City, UT agency that has control of the Native were identified. No associated funerary American human remains and objects are present. AGENCY: National Park Service, Interior. associated funerary objects. The In 1962, human remains representing, ACTION: Notice. National Park Service is not responsible at minimum, three individuals were for the determinations in this notice. removed from 42SA454, Steer Palace, in SUMMARY: The U.S. Department of the Castle Wash, San Juan County, UT. No Consultation Interior, Bureau of Reclamation, Upper known individuals were identified. The Colorado Region (Reclamation) has A detailed assessment of the human seven associated funerary objects are completed an inventory of human remains was made by the Reclamation five pottery vessels, one stone bead remains and associated funerary objects, professional staff in consultation with necklace, and one turquoise and black in consultation with the appropriate representatives of the Havasupai Tribe bead bracelet. Indian Tribes or Native Hawaiian of the Havasupai Reservation, Arizona; In 1960, human remains representing, organizations, and has determined that Hopi Tribe of Arizona; Hualapai Indian at minimum, two individuals were there is a cultural affiliation between the Tribe of the Hualapai Indian removed from 42SA544, Horsefly human remains and associated funerary Reservation, Arizona; Kaibab Band of Hollow, in Lake Canyon, San Juan objects and present-day Indian Tribes or Paiute Indians of the Kaibab Indian County, UT. No known individuals Native Hawaiian organizations. Lineal Reservation, Arizona; Navajo Nation, were identified. The six associated descendants or representatives of any Arizona, New Mexico, & Utah; Paiute funerary objects are two pottery vessels, Indian Tribe or Native Hawaiian Indian Tribe of Utah (Cedar Band of two manos, one pottery sherd, and one organization not identified in this notice Paiutes, Kanosh Band of Paiutes, stone tool. that wish to request transfer of control Koosharem Band of Paiutes, Indian In 1960, human remains representing, of these human remains and associated Peaks Band of Paiutes, and Shivwits at minimum, four individuals were funerary objects should submit a written Band of Paiutes (formerly Paiute Indian removed from 42SA554, Rogers House, request to Reclamation. If no additional Tribe of Utah (Cedar City Band of in Lake Canyon, San Juan County, UT. requestors come forward, transfer of Paiutes, Kanosh Band of Paiutes, No known individuals were identified. control of the human remains and Koosharem Band of Paiutes, Indian No associated funerary objects are associated funerary objects to the lineal Peaks Band of Paiutes, and Shivwits present. descendants, Indian Tribes, or Native Band of Paiutes)); Pueblo of Jemez, New In 1960, human remains representing, Hawaiian organizations stated in this Mexico; Pueblo of Pojoaque, New at minimum, two individuals were notice may proceed. Mexico; Pueblo of Santa Clara, New removed from 42SA623, Lyman Flat, in DATES: Lineal descendants or Mexico; Pueblo of Zia, New Mexico; Lake Canyon, San Juan County, UT. No representatives of any Indian Tribe or Southern Ute Indian Tribe of the known individuals were identified. No Native Hawaiian organization not Southern Ute Reservation, Colorado; Ute associated funerary objects are present. identified in this notice that wish to Mountain Ute Tribe (previously listed as In 1961, human remains representing, request transfer of control of these the Ute Mountain Tribe of the Ute at minimum, five individuals were human remains and associated funerary Mountain Reservation, Colorado, New removed from 42SA738, Ivy Shelter, in objects should submit a written request Mexico & Utah); and the Zuni Tribe of Moqui Canyon, San Juan County, UT. with information in support of the the Zuni Reservation, New Mexico No known individuals were identified. request to Reclamation at the address in (hereafter referred to as ‘‘The Consulted The 28 associated funerary objects are this notice by March 11, 2019. Tribes’’). eight pottery vessels, five baskets fragments, five cordage fragments, five ADDRESSES: Bill R. Chada, U.S. History and Description of the Remains projectile points, two wooden foot Department of the Interior, Bureau of In 1957, human remains representing, boards, one cradleboard in fragments, Reclamation, Upper Colorado Region, at minimum, one individual were one digging stick, and one forked stick. 125 South State Street, Room 8100, Salt removed from 42KA172, the Alvey Site, In 1962, human remains representing, Lake City, UT 84138, telephone (801) a rockshelter adjacent to a tributary of at minimum, one individual were 524–3646, email [email protected]. the Escalante River, Kane County, UT. removed from 42SA1010, Scorup SUPPLEMENTARY INFORMATION: Notice is No known individuals were identified. Pasture, in Castle Wash, San Juan here given in accordance with the No associated funerary objects are County, UT. No known individuals Native American Graves Protection and present. were identified. No associated funerary Repatriation Act (NAGPRA), 25 U.S.C. In 1960, human remains representing, objects are present. 3003, of the completion of an inventory at minimum, two individuals were Excavation of all the above sites was of human remains and associated removed from 42SA314, on Cedar Mesa, carried out from 1957 to 1962 by
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University of Utah archeologists under Dated: December 4, 2018. Repatriation Act (NAGPRA), 25 U.S.C. contract with the National Park Service, Melanie O’Brien, 3003, of the completion of an inventory prior to the construction of Glen Canyon Manager, National NAGPRA Program. of human remains and associated Dam, as part of the Upper Colorado [FR Doc. 2019–01620 Filed 2–7–19; 8:45 am] funerary objects under the control of the River Basin Archaeological Salvage BILLING CODE 4312–52–P Oregon Parks and Recreation Project. The human remains and Department, Salem, OR, and in the associated funerary objects date from custody of the Oregon State University, the Pueblo I through Pueblo III period DEPARTMENT OF THE INTERIOR Department of Anthropology, Corvallis, (approximately A.D. 750–1350). OR. The human remains and associated National Park Service funerary objects were removed from Determinations Made by U.S. Oceanside Beach State Recreation Site [NPS–WASO–NAGPRA–NPS0027190; Department of the Interior, Bureau of PPWOCRADN0–PCU00RP14.R50000] (35TI47) in Tillamook County, OR. Reclamation This notice is published as part of the Notice of Inventory Completion: National Park Service’s administrative Officials of the U.S. Department of the Oregon Parks and Recreation responsibilities under NAGPRA, 25 Interior, Bureau of Reclamation has Department, Salem, OR, and Oregon U.S.C. 3003(d)(3). The determinations in determined that: State University, Department of this notice are the sole responsibility of • Pursuant to 25 U.S.C. 3001(9), the Anthropology, Corvallis, OR the museum, institution, or Federal human remains described in this notice agency that has control of the Native AGENCY: National Park Service, Interior. represent the physical remains of 24 American human remains and associated funerary objects. The individuals of Native American ACTION: Notice. National Park Service is not responsible ancestry. SUMMARY: The Oregon State University, for the determinations in this notice. • Pursuant to 25 U.S.C. 3001(3)(A), Department of Anthropology and the the 41 objects described in this notice Oregon Parks and Recreation Consultation are reasonably believed to have been Department (OPRD) has completed an A detailed assessment of the human placed with or near individual human inventory of human remains and remains was made by Oregon Parks and remains at the time of death or later as associated funerary objects, in Recreation Department and Oregon part of the death rite or ceremony. consultation with the appropriate State University, Department of Indian Tribes or Native Hawaiian Anthropology professional staff in • Pursuant to 25 U.S.C. 3001(2), there organizations, and has determined that consultation with representatives of the is a relationship of shared group there is a cultural affiliation between the Confederated Tribes of Siletz Indians of identity that can be reasonably traced human remains and associated funerary Oregon (previously listed as the between the Native American human objects and present-day Indian Tribes or Confederated Tribes of the Siletz remains and associated funerary objects Native Hawaiian organizations. Lineal Reservation) and the Confederated and the Hopi Tribe of Arizona, based on descendants or representatives of any Tribes of the Grand Ronde Community lifeway, oral tradition, folklore, Indian Tribe or Native Hawaiian of Oregon, hereafter referred to as ‘‘The geography, anthropology, ceramic organization not identified in this notice Consulted Tribes.’’ design, rock art, basketry, kiva plan, that wish to request transfer of control The Burns Paiute Tribe (previously kinship and linguistics, dentition, of these human remains and associated listed as the Burns Paiute Tribe of the mitochondrial DNA, and expert funerary objects should submit a written Burns Paiute Indian Colony of Oregon); opinion. request to the Oregon Parks and Confederated Tribes of the Coos, Lower Recreation Department. If no additional Umpqua and Siuslaw Indians; Additional Requestors and Disposition requestors come forward, transfer of Confederated Tribes of the Umatilla Indian Reservation (previously listed as Lineal descendants or representatives control of the human remains and the Confederated Tribes of the Umatilla of any Indian Tribe or Native Hawaiian associated funerary objects to the lineal Reservation, Oregon); Confederated organization not identified in this notice descendants, Indian Tribes, or Native Tribes of the Warm Springs Reservation that wish to request transfer of control Hawaiian organizations stated in this notice may proceed. of Oregon; Coquille Indian Tribe of these human remains and associated (previously listed as the Coquille Tribe funerary objects should submit a written DATES: Lineal descendants or representatives of any Indian Tribe or of Oregon); Cow Creek Band of Umpqua request with information in support of Tribe of Indians (previously listed as the the request to Bill R. Chada, U.S. Native Hawaiian organization not identified in this notice that wish to Cow Creek Band of Umpqua Indians of Department of the Interior, Bureau of Oregon); and the Klamath Tribes were Reclamation, Upper Colorado Region, request transfer of control of these human remains and associated funerary notified, but did not participate in 125 South State Street, Room 8100, Salt objects should submit a written request consultation. Hereafter, these tribes are Lake City, UT 84138, telephone (801) with information in support of the referred to as ‘‘The Invited Tribes.’’ 524–3646, email [email protected], by request to the Oregon Parks and History and Description of the Remains March 11, 2019. After that date, if no Recreation Department at the address in In 1977, human remains representing, additional requestors have come this notice by March 11, 2019. forward, transfer of control of the at minimum, three individuals were ADDRESSES: Nancy Nelson, Oregon human remains and associated funerary removed from 35TI47, Oceanside Beach Parks and Recreation Department objects to the Hopi Tribe of Arizona may State Recreation Site in Tillamook Archaeologist, 725 Summer Street NE, proceed. County, OR, by Oregon State University. Suite C, Salem, OR 97301, telephone The excavation took place at the request The U.S. Department of the Interior, (503) 986–0578. of the OPRD to assess the impacts of Bureau of Reclamation is responsible for SUPPLEMENTARY INFORMATION: Notice is proposed park improvements. The 20 notifying The Consulted Tribes that this here given in accordance with the associated funerary objects are ten notice has been published. Native American Graves Protection and olivella shell beads; one antler or bone
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wedge; one blade; one modified bone; associated funerary objects to The This notice is published as part of the one non-human bone fragment; one Consulted Tribes may proceed. National Park Service’s administrative unidentified lithic; three projectile The Oregon Parks and Recreation responsibilities under NAGPRA, 25 points; one camas bulb; and one lot of Department is responsible for notifying U.S.C. 3003(d)(3). The determinations in bagged flakes, glass, shell, ecofacts, The Consulted Tribes and the Invited this notice are the sole responsibility of lithics, and unidentified botanical Tribes that this notice has been the museum, institution, or Federal remains. published. agency that has control of the Native Ethnographic records indicate that Dated: December 17, 2018. American cultural items. The National Oceanside, located on the sand spit that Melanie O’Brien, Park Service is not responsible for the determinations in this notice. defines the southern edge of Tillamook Manager, National NAGPRA Program. Bay, was occupied by the Tillamook. [FR Doc. 2019–01624 Filed 2–7–19; 8:45 am] History and Description of the Cultural Based on geographical, ethnographic, Item linguistic, kinship, oral historical and BILLING CODE 4312–52–P historical evidence, a relationship of In the late nineteenth century, one cultural item was acquired by the New shared group identity between the DEPARTMENT OF THE INTERIOR Confederated Tribes of Siletz Indians of York State Museum through Harriet Oregon (previously listed as the National Park Service Maxwell Converse (E–37417). The one Confederated Tribes of the Siletz cultural item is a wampum belt known Reservation) and the Tillamook at [NPS–WASO–NAGPRA–NPS0027158; as the Ransom wampum belt. It is PPWOCRADN0–PCU00RP14.R50000] Oceanside can be reasonably traced composed of six rows of purple beads interspersed with white beads forming historically. Based on geographical, Notice of Intent To Repatriate Cultural ethnographic, linguistic and historical five diagonal bands and two white open Items: New York State Museum, hexagons. The wampum belt is strung evidence, a relationship of shared group Albany, NY identity between the Confederated on leather warps with thread wefts and Tribes of the Grand Ronde Community AGENCY: National Park Service, Interior. mounted on linen backing. The 3 of Oregon and the Tillamook at ACTION: Notice. wampum belt measures 24 ⁄4 inches Oceanside also can be reasonably traced long and 13⁄4 inches wide. historically. SUMMARY: The New York State Museum, Museum records indicate Converse in consultation with the appropriate identified the Ransom wampum belt as Determinations Made by the Oregon Indian Tribes or Native Hawaiian ‘‘Onondaga.’’ She reported that this Parks and Recreation Department organizations, has determined that the wampum belt was used by women as Officials of the Oregon Parks and cultural item listed in this notice meets ransom to spare the life of a prisoner. As Recreation Department have determined the definition of objects of cultural such, the Ransom wampum belt that: patrimony. Lineal descendants or symbolizes the role of women in the • Pursuant to 25 U.S.C. 3001(9), the representatives of any Indian Tribe or adoption of captives. human remains described in this notice Native Hawaiian organization not The records of the New York State represent the physical remains of three identified in this notice that wish to Museum establish the cultural individuals of Native American claim this cultural item should submit affiliation of this wampum belt with the ancestry. a written request to the New York State Haudenosaunee Confederacy, and specifically with the Onondaga Nation. • Pursuant to 25 U.S.C. 3001(3)(A), Museum. If no additional claimants Based on consultation with the the 20 objects described in this notice come forward, transfer of control of the Onondaga Nation, the Ransom wampum are reasonably believed to have been cultural item to the lineal descendants, belt is an object of cultural patrimony, placed with or near individual human Indian Tribes, or Native Hawaiian as it relates to the civil functions of a remains at the time of death or later as organizations stated in this notice may Council. part of the death rite or ceremony. proceed. • Pursuant to 25 U.S.C. 3001(2), there DATES: Lineal descendants or Determinations Made by the New York is a relationship of shared group representatives of any Indian Tribe or State Museum Native Hawaiian organization not identity that can be reasonably traced Officials of the New York State between the Native American human identified in this notice that wish to claim this cultural item should submit Museum have determined that: remains and associated funerary objects • Pursuant to 25 U.S.C. 3001(3)(D), a written request with information in and The Consulted Tribes. the one cultural item described above support of the claim to the New York has ongoing historical, traditional, or Additional Requestors and Disposition State Museum at the address in this cultural importance central to the notice by March 11, 2019. Lineal descendants or representatives Native American group or culture itself, of any Indian Tribe or Native Hawaiian ADDRESSES: Lisa Anderson, NAGPRA rather than property owned by an organization not identified in this notice Coordinator, New York State Museum, individual. that wish to request transfer of control 3049 Cultural Education Center, Albany, • Pursuant to 25 U.S.C. 3001(2), there of these human remains and associated NY 12230, telephone (518) 486–2020, is a relationship of shared group funerary objects should submit a written email [email protected]. identity that can be reasonably traced request with information in support of SUPPLEMENTARY INFORMATION: Notice is between the object of cultural patrimony the request to Nancy Nelson, Oregon here given in accordance with the and the Onondaga Nation. Parks and Recreation Department Native American Graves Protection and Archaeologist, 725 Summer Street NE, Repatriation Act (NAGPRA), 25 U.S.C. Additional Requestors and Disposition Suite C, Salem, OR 97301, telephone 3005, of the intent to repatriate cultural Lineal descendants or representatives (503) 986–0578, by March 11, 2019. items under the control of the New York of any Indian Tribe or Native Hawaiian After that date, if no additional State Museum, Albany, NY that meet organization not identified in this notice requestors have come forward, transfer the definition of objects of cultural that wish to claim this cultural item of control of the human remains and patrimony under 25 U.S.C. 3001. should submit a written request with
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information in support of the claim to Reduction Act of 1995, we provide the Respondents/Affected Public: Lisa Anderson, NAGPRA Coordinator, general public and other Federal Individual/households. New York State Museum, 3049 Cultural agencies with an opportunity to Total Estimated Number of Annual Education Center, Albany, NY 12230, comment on new, proposed, revised, Respondents: 160,000. telephone (518) 486–2020, email and continuing collections of Total Estimated Number of Annual [email protected], by March 11, information. This helps us assess the Responses: 160,000. 2019. After that date, if no additional impact of our information collection Estimated Completion Time per claimants have come forward, transfer requirements and minimize the public’s Response: 1 minute for 120,000 low-risk of control of the object of cultural reporting burden. It also helps the watercrafts and 3 minutes for 40,000 patrimony to the Onondaga Nation may public understand our information high-risk watercrafts. proceed. collection requirements and provide the Total Estimated Number of Annual The New York State Museum is requested data in the desired format. Burden Hours: 4,000 hours. responsible for notifying the Onondaga We are soliciting comments on the Respondent’s Obligation: Mandatory. Nation that this notice has been proposed ICR that is described below. Frequency of Collection: One time per published. We are especially interested in public launch site. comment addressing the following Total Estimated Annual Nonhour Dated: December 11, 2018. issues: (1) Is the collection necessary to Burden Cost: None. Melanie O’Brien, the proper functions of the NPS; (2) will An agency may not conduct or Manager, National NAGPRA Program. this information be processed and used sponsor and a person is not required to [FR Doc. 2019–01616 Filed 2–7–19; 8:45 am] in a timely manner; (3) is the estimate respond to a collection of information BILLING CODE 4312–52–P of burden accurate; (4) how might the unless it displays a currently valid 0MB NPS enhance the quality, utility, and control number. clarity of the information to be The authority for this action is the DEPARTMENT OF THE INTERIOR collected; and (5) how might the NPS Paperwork Reduction Act of 1995 (44 minimize the burden of this collection U.S.C. 3501 et seq.). National Park Service on the respondents, including through Phadrea Ponds, [NPS–NRSS–WRD–NPS0027123; the use of information technology. Acting NPS Information Collections PPWONRADW0, PPMRSNR1Y.NM0000 Comments that you submit in Clearance Officer, National Park Service. (199); OMB Control Number 1024–NEW] response to this notice are a matter of [FR Doc. 2019–01564 Filed 2–7–19; 8:45 am] public record. We will include or BILLING CODE 4312–52–P Agency Information Collection summarize each comment in our request Activities; National Park Service to OMB to approve this IC. Before Watercraft Inspection Decontamination including your address, phone number, DEPARTMENT OF THE INTERIOR Regional Data-Sharing for Trailered email address, or other personal Recreational Boats identifying information in your National Park Service comment, you should be aware that AGENCY: National Park Service, Interior. [NPS–WASO–NAGPRA–NPS0027196; ACTION: Notice of Information Collection your entire comment—including your PCU00RP14.R50000–PPWOCRDN0] Request; request for comment. personal identifying information—may be made publicly available at any time. Notice of Inventory Completion: U.S. SUMMARY: In accordance with the While you can ask us in your comment Department of the Interior, Bureau of Paperwork Reduction Act of 1995, we, to withhold your personal identifying Indian Affairs, Washington, DC the National Park Service (NPS) are information from public review, we proposing a new information collection. cannot guarantee that we will be able to AGENCY: National Park Service, Interior. DATES: Interested persons are invited to do so. ACTION: Notice. submit comments on or before April 9, Abstract: The NPS is authorized by the Lacey Act (18 U.S.C. 42, 16 U.S.C. SUMMARY: The U.S. Department of the 2019. Interior, Bureau of Indian Affairs, has ADDRESSES: Send your comments on 3371–3378 et seq) to collect this information. The NPS is requesting completed an inventory of human this Information Collection Request remains and associated funerary objects, (ICR) by mail to Phadrea Ponds, Acting, approval to collect information from recreational boaters entering or exiting in consultation with the appropriate Information Collection Clearance Indian Tribes or Native Hawaiian Officer, National Park Service, 1201 water areas managed by the agency. The data will help document the presence organizations, and has determined that Oakridge Drive, Fort Collins, CO 80525 there is no cultural affiliation between _ and evaluate any risks associated with (mail); or phadrea [email protected] the human remains and associated (email). Please reference Information the unintentional introduction of quagga/zebra mussels in waters funerary objects and any present-day Collection Request 1024–NEW (Quagga) Indian Tribes or Native Hawaiian in the subject line. managed by the NPS in waters managed by the agency. Collection of this organizations. Representatives of any FOR FURTHER INFORMATION CONTACT: To information is mandatory for all Indian Tribe or Native Hawaiian request additional information about watercrafts entering and exiting waters organization not identified in this notice this IC, contact John Wullschleger, Fish managed by the NPS with an active that wish to request transfer of control Program Lead Water Resources Division, Watercraft inspection and of these human remains and associated Natural Resource Stewardship and decontamination programs. funerary objects should submit a written Science Directorate, National Park Title of Collection: National Park request to the Bureau of Indian Affairs. Service, 1201 Oakridge Dr., Suite 20, If no additional requestors come _ Service Watercraft Inspection Fort Collins, CO 80525 (mail); john Decontamination Regional Data-sharing forward, transfer of control of the [email protected] (email); or 970– for Trailered Recreational Boats. human remains and associated funerary 225–3572 (phone). OMB Control Number: 1024–NEW. objects to the Indian Tribes or Native SUPPLEMENTARY INFORMATION: In Form Number: None. Hawaiian organizations stated in this accordance with the Paperwork Type of Review: Regular. notice may proceed.
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DATES: Representatives of any Indian Southern Illinois University at are Native American based on studies Tribe or Native Hawaiian organization Carbondale (SIU), gathered conducted by physical anthropologists. not identified in this notice that wish to archeological and anthropological data • Pursuant to 25 U.S.C. 3001(9), the request transfer of control of these on Black Mesa. In 1974, Prescott College human remains described in this notice human remains and associated funerary declared bankruptcy and closed. In represent the physical remains of 341 objects should submit a written request 1976, after being housed at Fort Lewis individuals of Native American with information in support of the College in Durango, CO, for one year, ancestry. the BMAP collections and records were request to the Bureau of Indian Affairs • at the address in this notice by March transferred to SIU. In or about 1979, SIU Pursuant to 25 U.S.C. 3001(3)(A), 11, 2019. entered into a long-term loan agreement the 10,889 objects described in this notice are reasonably believed to have ADDRESSES: Anna Pardo, Museum with Debra Martin for the human remains from BMAP. Dr. Martin been placed with or near individual Program Manager/NAGPRA human remains at the time of death or Coordinator, U.S. Department of the transported the human remains to the University of Massachusetts, Amherst, later as part of the death rite or Interior, Bureau of Indian Affairs, 12220 ceremony. Sunrise Valley Drive, Room 6084, and in or about 1986, Dr. Martin moved • Reston, VA 20191, telephone (703) 390– the human remains to Hampshire Pursuant to 25 U.S.C. 3001(2), a 6343, email [email protected]. College. In or about 2006, Dr. Martin, relationship of shared group identity with approval from SIU, relocated the cannot be reasonably traced between the SUPPLEMENTARY INFORMATION: Notice is human remains to the University of Native American human remains and here given in accordance with the Nevada, Las Vegas. BIA was never Native American Graves Protection and associated funerary objects and any consulted nor advised of any of these present-day Indian Tribe. Repatriation Act (NAGPRA), 25 U.S.C. loans or moves. The associated funerary • Pursuant to 25 U.S.C. 3001 (15), the 3003, of the completion of an inventory objects remained at SIU. In March and land from which the Native American of human remains and associated May 2018, the BIA, in consultation with human remains and associated funerary funerary objects under the control of the the Hopi Tribe of Arizona and Navajo objects were removed is the tribal land U.S. Department of the Interior, Bureau Nation, Arizona, New Mexico & Utah, of the Hopi Tribe of Arizona and Navajo of Indian Affairs, Washington, DC. The authorized the physical transfer of all Nation, Arizona, New Mexico & Utah. human remains and associated funerary BMAP human remains and associated objects were removed from sites on and funerary objects to the Museum of • Pursuant to 43 CFR 10.11(c)(1), the around Black Mesa and Klethla Valley Northern Arizona (MNA) in Flagstaff, disposition of the human remains and in Coconino and Navajo Counties, AZ. AZ. The human remains were associated funerary objects may be to This notice is published as part of the transferred to MNA in May 2018, and the Hopi Tribe of Arizona and Navajo National Park Service’s administrative the associated funerary objects were Nation, Arizona, New Mexico & Utah. responsibilities under NAGPRA, 25 transferred from SIU to MNA in October Additional Requestors and Disposition U.S.C. 3003(d)(3) and 43 CFR 10.11(d). 2018. The determinations in this notice are In 1960 and 1971–72, additional Representatives of any Indian Tribe or the sole responsibility of the museum, excavations were conducted under Native Hawaiian organization not institution, or Federal agency that has Antiquities Act permits issued by the identified in this notice that wish to control of the Native American human BIA on ten sites in Klethla Valley, AZ. request transfer of control of these remains and associated funerary objects. One site was excavated in 1960 as part human remains and associated funerary The National Park Service is not of the construction of a highway. Nine objects should submit a written request responsible for the determinations in sites were excavated in 1971 and 1972 with information in support of the this notice. within the right-of-way corridor for the request to Anna Pardo, Museum Consultation Black Mesa and Lake Powell Railroad. Program Manager/NAGPRA Human remains and associated funerary A detailed assessment of the human Coordinator, U.S. Department of the objects were removed and have been Interior, Bureau of Indian Affairs, 12220 remains was made by the U.S. housed at MNA since their removal. Department of the Interior, Bureau of Sunrise Valley Drive, Room 6084, From 1960 to 1983, human remains Reston, VA 20191, telephone (703) 390– Indian Affairs professional staff in representing, at minimum, 341 consultation with representatives of the 6343, email [email protected], by individuals were removed from March 11, 2019. After that date, if no Hopi Tribe of Arizona; Navajo Nation, numerous sites on Black Mesa and in Arizona, New Mexico & Utah; and the additional requestors have come Klethla Valley in Coconino and Navajo forward, transfer of control of the Zuni Tribe of the Zuni Reservation, New Counties, AZ. No known individuals Mexico. human remains and associated funerary were identified. The 10,889 associated objects to the Hopi Tribe of Arizona and History and Description of the Remains funerary objects include ceramic Navajo Nation, Arizona, New Mexico & vessels, beads, pollen and soil samples, Utah, may proceed. From 1967 to 1983, the Bureau of sherds, lithics, plant and wood Indian Affairs (BIA) issued Antiquities materials, groundstone, shells, and The BIA is responsible for notifying Act permits authorizing excavations in faunal remains. A complete, detailed the Hopi Tribe of Arizona; Navajo the Black Mesa region of Arizona. Black inventory is on file with the National Nation, Arizona, New Mexico & Utah; Mesa, an area of roughly 49,300 NAGPRA Program and available upon and the Zuni Tribe of the Zuni hectares, was leased to Peabody Coal written request to the BIA. Reservation, New Mexico, that this Company (now Peabody Energy) by the notice has been published. Determinations Made by the Bureau of Hopi Tribe of Arizona and Navajo Dated: December 17, 2018. Nation, Arizona, New Mexico & Utah for Indian Affairs Melanie O’Brien, the purpose of mining coal deposits. Officials of the Bureau of Indian The Black Mesa Archaeological Project Affairs have determined that: Manager, National NAGPRA Program. (BMAP), conducted by staff and • Pursuant to 25 U.S.C. 3001(9), the [FR Doc. 2019–01623 Filed 2–7–19; 8:45 am] students from Prescott College and later, human remains described in this notice BILLING CODE 4312–52–P
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DEPARTMENT OF THE INTERIOR removed from 12 locations in San Juan In 1959, human remains representing, County, UT, and Coconino County, AZ. at minimum, two individuals were National Park Service This notice is published as part of the removed from NA7166, in San Juan National Park Service’s administrative [NPS–WASO–NAGPRA–NPS0027115; County, UT. No known individuals PPWOCRADN0–PCU00RP14.R50000] responsibilities under NAGPRA, 25 were identified. No associated funerary U.S.C. 3003(d)(3). The determinations in objects are present. Notice of Inventory Completion: U.S. this notice are the sole responsibility of In 1961, human remains representing, Department of the Interior, Bureau of the museum, institution, or Federal at minimum, two individuals were Reclamation, Upper Colorado Region, agency that has control of the Native removed from NA7486, Cummings Mesa Salt Lake City, UT, and the Museum of American human remains and in Coconino County, AZ. The site was Northern Arizona, Flagstaff, AZ associated funerary objects. The excavated with permission of the Navajo National Park Service is not responsible Nation Council and the Navajo AGENCY: National Park Service, Interior. for the determinations in this notice. Mountain Chapter of the Navajo Nation, ACTION: Arizona, New Mexico & Utah. No Notice. Consultation known individuals were identified. The SUMMARY: The U.S. Department of the A detailed assessment of the human 25 associated funerary objects are 11 Interior, Bureau of Reclamation, Upper remains was made by Reclamation and pottery vessels, six manos, five utilized Colorado Region (Reclamation) and the MNA professional staff in consultation flakes, one lot of pottery sherds, one Museum of Northern Arizona (MNA) with representatives of Havasupai Tribe flaked stone, and one bone awl. have completed an inventory of human of the Havasupai Reservation, Arizona; In 1961, human remains representing, remains and associated funerary objects, Hopi Tribe of Arizona; Hualapai Indian at minimum, eight individuals were in consultation with the appropriate Tribe of the Hualapai Indian removed from NA7498, from Cummings Indian Tribes or Native Hawaiian Reservation, Arizona; Kaibab Band of Mesa in Coconino County, AZ. The site organizations, and have determined that Paiute Indians of the Kaibab Indian was excavated with permission of the there is a cultural affiliation between the Reservation, Arizona; Navajo Nation, Navajo Nation Council and the Navajo human remains and associated funerary Arizona, New Mexico, & Utah; Paiute Mountain Chapter of the Navajo Nation, objects and present-day Indian Tribes or Indian Tribe of Utah (Cedar Band of Arizona, New Mexico & Utah. No Native Hawaiian organizations. Lineal Paiutes, Kanosh Band of Paiutes, known individuals were identified. The descendants or representatives of any Koosharem Band of Paiutes, Indian 58 associated funerary objects include Indian Tribe or Native Hawaiian Peaks Band of Paiutes, and Shivwits 21 pottery vessels, eight lots of pottery organization not identified in this notice Band of Paiutes (formerly Paiute Indian sherds, seven worked pottery sherds, that wish to request transfer of control Tribe of Utah (Cedar City Band of seven bone awls, two worked pottery of these human remains and associated Paiutes, Kanosh Band of Paiutes, sherd discs, two bifacially flaked stones, funerary objects should submit a written Koosharem Band of Paiutes, Indian faunal remains of two dogs, one pottery request to Reclamation. If no additional Peaks Band of Paiutes, and Shivwits sherd, one unifacially flaked stone, one requestors come forward, transfer of Band of Paiutes)); Pueblo of Jemez, New worked animal bone, one animal bone, control of the human remains and Mexico; Pueblo of Pojoaque, New one corn cob, one lot of shell beads, one associated funerary objects to the lineal Mexico; Pueblo of Santa Clara, New lot of squash seeds, one lot of wood descendants, Indian Tribes, or Native Mexico; Pueblo of Zia, New Mexico; fragments, and one lot of calcite. Hawaiian organizations stated in this Southern Ute Indian Tribe of the In 1960, human remains representing, notice may proceed. Southern Ute Reservation, Colorado; Ute at minimum, one individual were removed from NA7508, Trail Shelter in DATES: Lineal descendants or Mountain Ute Tribe (previously listed as representatives of any Indian Tribe or the Ute Mountain Tribe of the Ute lower Glen Canyon in San Juan County, Native Hawaiian organization not Mountain Reservation, Colorado, New UT. No known individuals were identified in this notice that wish to Mexico & Utah); and the Zuni Tribe of identified. The 23 associated funerary request transfer of control of these the Zuni Reservation, New Mexico objects include 12 bifaces, three pottery human remains and associated funerary (hereafter referred to as ‘‘The Consulted vessels, two worked stones, two stone objects should submit a written request Tribes’’). flakes, one chopper, one mano, one with information in support of the cobble, and one pebble. History and Description of the Remains In 1961, human remains representing, request to Reclamation at the address in at minimum, one individual were this notice by March 11, 2019. In 1960, human remains representing, at minimum, two individuals were removed from NA7537, Small Jar Pueblo ADDRESSES: Bill R. Chada, U.S. removed from NA2691, in San Juan on Segazlin Mesa, Navajo Mountain in Department of the Interior, Bureau of County, UT. No known individuals San Juan County, UT. The site was Reclamation, Upper Colorado Region, were identified. No associated funerary excavated with permission of the Navajo 125 South State Street, Room 8100, Salt objects are present. Nation Council and the Navajo Lake City, UT 84138, telephone (801) In 1961, human remains representing, Mountain Chapter of the Navajo Nation, 524–3646, email [email protected]. at minimum, one individual were Arizona, New Mexico & Utah. No SUPPLEMENTARY INFORMATION: Notice is removed from NA4075, the Guardian known individuals were identified. No here given in accordance with the Pueblo on Segazlin Mesa, Coconino associated funerary objects are present. Native American Graves Protection and County, AZ. No known individuals In 1962, human remains representing, Repatriation Act (NAGPRA), 25 U.S.C. were identified. No associated funerary at minimum, 30 individuals were 3003, of the completion of an inventory objects are present. removed from NA7713, Pottery Pueblo of human remains and associated In 1961, human remains representing, on Paiute Mesa in San Juan County, UT. funerary objects under the control of the at minimum, one individual were The site was excavated with permission U.S. Department of the Interior, Bureau removed from NA5815, Upper Desha of the Navajo Nation, Arizona, New of Reclamation, Upper Colorado Region, Pueblo in San Juan County, UT. No Mexico & Utah Navajo Nation Council Salt Lake City, UT. The human remains known individuals were identified. No and the Navajo Mountain Chapter. No and associated funerary objects were associated funerary objects are present. known individuals were identified. The
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68 associated funerary objects include • Pursuant to 25 U.S.C. 3001(9), the SUMMARY: The George Fox University, in 27 pottery vessels, five animal bones, human remains described in this notice consultation with the appropriate three clay figurines, three hafted represent the physical remains of 77 Indian Tribes or Native Hawaiian projectile points, two projectile points, individuals of Native American organizations, has determined that the two basket fragments, two lots of corn ancestry. cultural items listed in this notice meet cobs, two lots of squash seeds, two • Pursuant to 25 U.S.C. 3001(3)(A), the definition of sacred objects and unidentified vegetal fragments, one the 248 objects described in this notice objects of cultural patrimony. Lineal cradleboard, one stone bead bracelet, are reasonably believed to have been descendants or representatives of any one lot of beads, one sandstone disc, placed with or near individual human Indian Tribe or Native Hawaiian one lot of corn seeds, one stick, one lot remains at the time of death or later as organization not identified in this notice of cordage fragments, and one medicine part of the death rite or ceremony. that wish to claim these cultural items bundle containing four projectile points, • Pursuant to 25 U.S.C. 3001(2), there should submit a written request to one shark tooth, one crinoid fragment, is a relationship of shared group George Fox University. If no additional one stick, one lot of rocks, one lot of identity that can be reasonably traced claimants come forward, transfer of shell, one worked stone, one stone ball, between the Native American human control of the cultural items to the lineal and 1 green marble. remains and associated funerary objects descendants, Indian Tribes, or Native In 1962, human remains representing, and the Hopi Tribe of Arizona, based on Hawaiian organizations stated in this at minimum, 25 individuals were lifeway, oral tradition, folklore, notice may proceed. removed from NA7719, Neskahi Village geography, anthropology, ceramic DATES: Lineal descendants or on Paiute Mesa in San Juan County, UT. design, rock art, basketry, kiva plan, representatives of any Indian Tribe or The site was excavated with permission kinship and linguistics, dentition, Native Hawaiian organization not of the Navajo Nation Council and the mitochondrial DNA, and expert identified in this notice that wish to Navajo Mountain Chapter of the Navajo opinion. claim these cultural items should submit a written request with Nation, Arizona, New Mexico & Utah. Additional Requestors and Disposition No known individuals were identified. information in support of the claim to The 67 associated funerary objects Lineal descendants or representatives George Fox University at the address in include 44 pottery vessels, seven bone of any Indian Tribe or Native Hawaiian this notice by March 11, 2019. game pieces, six bone awls, three organization not identified in this notice ADDRESSES: Rachel Thomas, George Fox pottery sherds, three shell beads, one that wish to request transfer of control University, 414 N Meridian #6109, projectile point, one stone disc, one of these human remains and associated Newberg, OR 97132, telephone (503) stone ball, and one incised bone disc. funerary objects should submit a written 554–2415, email rthomas@ In 1962, human remains representing, request with information in support of georgefox.edu. the request to Bill R. Chada, U.S. at minimum, three individuals were SUPPLEMENTARY INFORMATION: Notice is removed from NA8317, on Paiute Mesa Department of the Interior, Bureau of Reclamation, Upper Colorado Region, here given in accordance with the in San Juan County, UT. The site was Native American Graves Protection and excavated with permission of the Navajo 125 South State Street, Room 8100, Salt Lake City, UT 84138, telephone (801) Repatriation Act (NAGPRA), 25 U.S.C. Nation, Arizona, New Mexico & Utah 3005, of the intent to repatriate cultural Navajo Nation Council and the Navajo 524–3646, email [email protected], by March 11, 2019. After that date, if no items under the control of George Fox Mountain Chapter. No known University, Newberg, OR, that meet the individuals were identified. The seven additional requestors have come forward, transfer of control of the definition of sacred objects and objects associated funerary objects include five of cultural patrimony under 25 U.S.C. pottery vessels, one metate, and one human remains and associated funerary objects to the Hopi Tribe of Arizona may 3001. worked bone. This notice is published as part of the proceed. In 1962, human remains representing, National Park Service’s administrative The U.S. Department of the Interior, at minimum, one individual were responsibilities under NAGPRA, 25 Bureau of Reclamation is responsible for removed from NA8321, on Paiute Mesa U.S.C. 3003(d)(3). The determinations in notifying The Consulted Tribes that this in San Juan County, UT. No known this notice are the sole responsibility of notice has been published. individuals were identified. No the museum, institution, or Federal associated funerary objects are present. Dated: December 4, 2018. agency that has control of the Native Excavation of all the above sites was Melanie O’Brien, American cultural items. The National carried out from 1957 to 1962 by Manager, National NAGPRA Program. Park Service is not responsible for the Museum of Northern Arizona (MNA) [FR Doc. 2019–01619 Filed 2–7–19; 8:45 am] determinations in this notice. archeologists under contract with the BILLING CODE 4312–52–P National Park Service, prior to the History and Description of the Cultural construction of Glen Canyon Dam, as Item(s) part of the Upper Colorado River Basin DEPARTMENT OF THE INTERIOR From 1880–1920, 26 cultural items Archaeological Salvage Project. The were removed from Kake, AK, by human remains and associated funerary National Park Service missionaries and others visiting the area objects date from the Pueblo I through from Quaker congregations in Oregon. Pueblo III period (approximately A.D. [NPS–WASO–NAGPRA–NPS0027159; The 26 items are one 2018–023 woven 750–1350). PPWOCRADN0–PCU00RP14.R50000] basket, one 91–55 basket, one 032 wooden canoe paddle, one 033 wooden Determinations Made by U.S. Notice of Intent To Repatriate Cultural canoe paddle, one 2018–021 native Department of the Interior, Bureau of Items: George Fox University, basket, one 2018–022 native woven Reclamation Newberg, OR basket, one 2018–020 small basket, one Officials of the U.S. Department of the AGENCY: National Park Service, Interior. 2018–020 small basket, one 2018–025 Interior, Bureau of Reclamation has basket, one 87–29 Indian drum handle, ACTION: Notice. determined that: one 2018–024 woven basket with
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handle, one 2018–067 pillow top, one River Reserve; Native Village of Eyak Native American Graves Protection and part of a face from a totem pole, one (Cordova); Native Village of Kotzebue; Repatriation Act (NAGPRA), 25 U.S.C. ladle made from bone, one Cedarbark Native Village of Selawik; Native Village 3003, of the completion of an inventory headdress, one medicine man mask, one of Shishmaref; Noorvick Native of human remains and associated rattle used by medicine man Rattle/ Community; Organized Village of Kake; funerary objects under the control of the Charm with Eagle and killer whale and the Sitka Tribe of Alaska that this Pueblo Grande Museum, Phoenix, AZ. design, one carving-top for hat, one notice has been published. The human remains and associated woven basket with initials FB, one Dated: December 11, 2018. funerary objects were removed from Greenlee County, AZ. beaded basket with initials FB, one Melanie O’Brien, 2018–081 miniature paddle, one 2018– This notice is published as part of the Manager, National NAGPRA Program. 078 miniature paddle, one 2018–079 National Park Service’s administrative miniature paddle, one Spruceroot [FR Doc. 2019–01632 Filed 2–7–19; 8:45 am] responsibilities under NAGPRA, 25 basket, one red cedar charm used by BILLING CODE 4312–52–P U.S.C. 3003(d)(3). The determinations in Medicine man, and one 2018–080 this notice are the sole responsibility of model canoe. the museum, institution, or Federal Consultation with Frank Hughes, DEPARTMENT OF THE INTERIOR agency that has control of the Native American human remains and NAGPRA and Historic Properties National Park Service coordinator for the Organized Village of associated funerary objects. The Kake, has revealed the identity of these [NPS–WASO–NAGPRA–NPS0027161; National Park Service is not responsible items. Hughes also was able to identify PPWOCRADN0–PCU00RP14.R50000] for the determinations in this notice. unique weaving patterns and other Notice of Inventory Completion: Consultation details indicating that the items were Pueblo Grande Museum, Phoenix, AZ from Kake, and were created by A detailed assessment of the human remains was made by the Pueblo Grande members of the Tlingit tribe. AGENCY: National Park Service, Interior. Museum professional staff in ACTION: Determinations Made by George Fox Notice. consultation with representatives of the University SUMMARY: The Pueblo Grande Museum Hopi Tribe of Arizona; Pueblo of Officials of George Fox University has completed an inventory of human Acoma, New Mexico; and the Zuni have determined that: remains and associated funerary objects, Tribe of the Zuni Reservation, New • Pursuant to 25 U.S.C. 3001(3)(C), in consultation with the appropriate Mexico (hereafter referred to as ‘‘The the 26 cultural items described above Indian Tribes or Native Hawaiian Tribes’’). are specific ceremonial objects needed organizations, and has determined that History and Description of the Remains by traditional Native American religious there is a cultural affiliation between the leaders for the practice of traditional human remains and associated funerary At an unknown date, human remains Native American religions by their objects and present-day Indian Tribes or representing, at minimum, one present-day adherents. Native Hawaiian organizations. Lineal individual were removed from the • Pursuant to 25 U.S.C. 3001(3)(D), descendants or representatives of any Double Circle Ranch near Eagle Creek in the 26 cultural items described above Indian Tribe or Native Hawaiian Greenlee County, AZ, by an unknown have ongoing historical, traditional, or organization not identified in this notice collector. In 1986, the human remains cultural importance central to the that wish to request transfer of control and associated funerary objects were Native American group or culture itself, of these human remains and associated identified in the collections of the rather than property owned by an funerary objects should submit a written Arizona Museum, which later became individual. request to the Pueblo Grande Museum. the Phoenix Museum of History. On • Pursuant to 25 U.S.C. 3001(2), there If no additional requestors come September 10, 2009, the human remains is a relationship of shared group forward, transfer of control of the and associated funerary objects were identity that can be reasonably traced human remains and associated funerary transferred from the Phoenix Museum of between the sacred objects and objects objects to the lineal descendants, Indian History (which closed in 2009) to the of cultural patrimony, and the Tribes, or Native Hawaiian Pueblo Grande Museum. No known Organized Village of Kake. organizations stated in this notice may individual was identified. The proceed. fragmentary and cremated human Additional Requestors and Disposition remains belong to an adult, and are DATES: Lineal descendants or representatives Lineal descendants or possibly male. The two associated of any Indian Tribe or Native Hawaiian representatives of any Indian Tribe or funerary objects include an Alameda organization not identified in this notice Native Hawaiian organization not Brown ware ceramic jar and a red ware that wish to claim these cultural items identified in this notice that wish to sherd. Alameda Brown ware dates should submit a written request with request transfer of control of these between A.D. 700 and 1300. Based on information in support of the claim to human remains and associated funerary the collecting location and associated Rachel Thomas, George Fox University, objects should submit a written request funerary object type, these human 414 N Meridian #6109, Newberg, OR with information in support of the remains are likely from the Mogollon 97132, telephone (503) 554–2415, email request to the Pueblo Grande Museum at archeological culture, which is [email protected], by March 11, the address in this notice by March 11, Ancestral Puebloan. 2019. After that date, if no additional 2019. Cultural continuity between Ancestral claimants have come forward, transfer ADDRESSES: Lindsey Vogel-Teeter, Puebloans and modern day Puebloan of control of the sacred objects and Pueblo Grande Museum, 4619 E tribes is demonstrated by geographical, objects of cultural patrimony to the Washington Steet, Phoenix, AZ 85331, archeological, historical, architectural, Organized Village of Kake may proceed. telephone (602) 495–0901, email and oral traditional evidence. The George Fox University is [email protected]. The Hopi Tribe of Arizona considers responsible for notifying the Metlakatla SUPPLEMENTARY INFORMATION: Notice is all of Arizona to be within traditional Indian Community, Annette Island here given in accordance with the Hopi lands or within areas where Hopi
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clans migrated in the past. Oral DEPARTMENT OF THE INTERIOR • Through the regulations.gov web traditions and material culture portal: Navigate to htttp:// demonstrate continuity between the Bureau of Ocean Energy Management www.regulations.gov and search for Docket No. BOEM–2018–0069. Click on prehistoric Mogollon archeological [Docket No. BOEM–2018–0069] culture and the Hopi people. the ‘‘Comment Now!’’ button to the right of the document link. Enter your The Pueblo of Acoma, New Mexico Notice of Rescheduled Public Hearings and Reopening of the Public Comment information and comment, then click and the Zuni Tribe of the Zuni ‘‘Submit.’’ Reservation, New Mexico, are also Period for the Draft Environmental Impact Statement for Vineyard Wind Since publication in December 2018, affiliated with the Mogollon copies of the Draft EIS have been and archeological culture. LLC’s Proposed Wind Energy Facility Offshore Massachusetts are still available for public review on Determinations Made by the Pueblo BOEM’s website and at the following AGENCY locations: Grande Museum : Bureau of Ocean Energy Management, Interior. Massachusetts Officials of the Pueblo Grande ACTION: Notice to reschedule public Aquinnah Public Library, Aquinnah Museum have determined that: hearings and reopen public comment Boston Public Library, Boston • Pursuant to 25 U.S.C. 3001(9), the period. Chilmark Free Public Library, Chilmark human remains described in this notice Edgartown Public Library, Edgartown SUMMARY: The Bureau of Ocean Energy Hyannis Public Library, Hyannis represent the physical remains of one Management (BOEM), as the National New Bedford Free Public Library, New individual of Native American ancestry. Environmental Policy Act (NEPA) Bedford • Pursuant to 25 U.S.C. 3001(3)(A), Federal lead agency, has rescheduled Oak Bluffs Public Library, Oak Bluffs the two objects described in this notice the public hearings and reopened the Nantucket Atheneum, Nantucket Vineyard Haven Public Library, Vineyard are reasonably believed to have been public comment period for the Draft Haven placed with or near individual human Environmental Impact Statement (EIS) West Tisbury Free Public Library, Vineyard remains at the time of death or later as for the Construction and Operation Plan Haven part of the death rite or ceremony. (COP) submitted by Vineyard Wind LLC Woods Hole Public Library, Woods Hole (Vineyard Wind). • Pursuant to 25 U.S.C. 3001(2), there Rhode Island is a relationship of shared group DATES: The comment period for the Maury Loontjens Memorial Library, identity that can be reasonably traced Draft EIS that was first opened when Narragansett between the Native American human BOEM published a Notice of Availability of the Draft EIS on The public hearings for the Draft EIS remains and associated funerary objects December 7, 2018, (83 FR 63184) is for the Vineyard Wind COP have been and The Tribes. being reopened. Comments should be rescheduled and will be held at the following places and times. submitted no later than February 22, Additional Requestors and Disposition D Nantucket, Massachusetts: Monday, 2019. BOEM’s public hearings have February 11, 2019; Nantucket Lineal descendants or representatives been rescheduled and will be held at the of any Indian Tribe or Native Hawaiian Atheneum, 1 India Street, Nantucket, following dates and times. Please see Massachusetts 02554; Open House 5:00– organization not identified in this notice the ADDRESSES section for the specific 7:30 p.m.; Presentation and Q&A 6:00 that wish to request transfer of control locations. p.m. of these human remains and associated D Nantucket, Massachusetts: Monday, D Vineyard Haven, Massachusetts: funerary objects should submit a written February 11, 2019. Tuesday, February 12, 2019; Martha’s request with information in support of D Vineyard Haven, Massachusetts: Vineyard Hebrew Center, 130 Center the request to Lindsey Vogel-Teeter, Tuesday, February 12, 2019. Street, Vineyard Haven, Massachusetts Pueblo Grande Museum, 4619 E D Hyannis, Massachusetts: 02568; Open House 5:00–8:00 p.m.; Washington Street, Phoenix, AZ 85331, Wednesday, February 13, 2019. Presentation and Q&A 6:00 p.m. telephone (602) 495–0901, email D New Bedford, Massachusetts: D Hyannis, Massachusetts: [email protected], by Thursday, February 14, 2019. Wednesday, February 13, 2019; Double March 11, 2019. After that date, if no D Narragansett, Rhode Island: Friday, Tree Hotel, Cape Cod Room, 287 additional requestors have come February 15, 2019. Iyannough Road, Hyannis, forward, transfer of control of the ADDRESSES: The Draft EIS and detailed Massachusetts 02601; Open House 5:00– human remains and associated funerary information about the proposed wind 8:00 p.m.; Presentation and Q&A 6:00 objects to The Tribes may proceed. energy facility, including the COP, can p.m. be found on BOEM’s website at: https:// D New Bedford, Massachusetts: The Pueblo Grande Museum is www.boem.gov/Vineyard-Wind/. Thursday, February 14, 2019; Fairfield responsible for notifying The Tribes that Comments can be submitted in any of Inn and Suites Waypoint Event Center, this notice has been published. the following ways: 185 MacArthur Drive, New Bedford, Dated: December 11, 2018. • In written form, delivered by U.S. Massachusetts 02740; Open House 5:00– Melanie O’Brien, Postal Service or other delivery service, 8:00 p.m.; Presentation and Q&A 6:00 Manager, National NAGPRA Program. enclosed in an envelope labeled p.m. ‘‘Vineyard Wind COP Draft EIS’’ and D Narragansett, Rhode Island: Friday, [FR Doc. 2019–01625 Filed 2–7–19; 8:45 am] addressed to Program Manager, Office of February 15, 2019; Narragansett BILLING CODE 4312–52–P Renewable Energy, Bureau of Ocean Community Center, 53 Mumford Road, Energy Management, 45600 Woodland Narragansett, RI 02882; Open House Road, Sterling, Virginia 20166. 5:00–8:00 p.m.; Presentation and Q&A Comments must be received or 6:00 p.m. postmarked no later than February 22, FOR FURTHER INFORMATION CONTACT: For 2019; or information on the Vineyard Wind COP
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Draft EIS please contact Michelle Morin, www.usitc.gov). The public record for Investigations, U.S. International Trade BOEM Office of Renewable Energy this investigation may be viewed on the Commission, 500 E Street SW, Programs, 45600 Woodland Road, Commission’s electronic docket (EDIS) Washington, DC 20436. Hearing- Sterling, Virginia 20166, (703) 787–1722 at https://edis.usitc.gov. impaired persons can obtain or [email protected]. SUPPLEMENTARY INFORMATION: On information on this matter by contacting BOEM does not consider anonymous September 7, 2018, the Commission the Commission’s TDD terminal on 202– comments. Please include your name established a schedule for the conduct 205–1810. Persons with mobility and address as part of your submittal. of the full five-year reviews (83 FR impairments who will need special BOEM makes all comments, including 46757, September 14, 2018). Due to the assistance in gaining access to the the name and addresses of respondents, lapse in appropriations and ensuing Commission should contact the Office available for public review during cessation of Commission operations, the of the Secretary at 202–205–2000. regular business hours. Individual Commission is revising its schedule. General information concerning the respondents may request that BOEM The Commission’s revised dates in Commission may also be obtained by withhold their names or addresses from the schedule are as follows: Deadline for accessing its internet server (https:// the public record; however, BOEM filing prehearing briefs is February 12, www.usitc.gov). The public record for cannot guarantee that it will be able to 2019; requests to appear at the hearing these investigations may be viewed on do so. If you wish your name or address should be filed on or before February the Commission’s electronic docket to be withheld, you must state your 14, 2019; prehearing conference to be (EDIS) at https://edis.usitc.gov. preference prominently at the beginning held, if deemed necessary, is on SUPPLEMENTARY INFORMATION: On August of your comment. All submissions from February 20, 2019; the hearing is on 24, 2018, the Commission established a organizations or businesses and from Thursday, February 21, 2019 beginning schedule for the final phase of these individuals identifying themselves as at 9:30 a.m.; the deadline for filing antidumping and countervailing duty representatives or officials of posthearing briefs is March 1, 2019; any investigations (83 FR 44302, August 30, organizations or businesses will be person who has not entered an 2018). Due to the lapse in made available for public inspection in appearance as a party to the reviews appropriations and ensuing cessation of their entirety. may submit a written statement of Commission operations, the Authority: This notice was prepared information pertinent to the subject of Commission is revising its schedule. pursuant to NEPA and implementing the reviews on or before March 1, 2019; The Commission’s revised dates in regulations at 40 CFR 1506.6 and 43 CFR final release of information is on March the schedule are as follows: Final 46.435. 22, 2019; and party final comments are release of information is on February 19, Dated: February 5, 2019. due on March 26, 2019. 2019; and final party comments are due William Yancey Brown, For further information concerning on February 21, 2019. Chief Environmental Officer, Bureau of Ocean these reviews, see the Commission’s For further information concerning Energy Management. notice cited above and the these investigations, see the [FR Doc. 2019–01705 Filed 2–7–19; 8:45 am] Commission’s Rules of Practice and Commission’s notice cited above and Procedure, part 201, subparts A through BILLING CODE 4310–MR–P the Commission’s Rules of Practice and E (19 CFR part 201), and part 207, Procedure, part 201, subparts A through subparts A, D, E, and F (19 CFR part E (19 CFR part 201), and part 207, 207). INTERNATIONAL TRADE subparts A, D, E, and F (19 CFR part COMMISSION Authority: These reviews are being 207). conducted under authority of title VII of the Authority: These investigations are being [Investigation Nos. 701–TA–488 and 731– Tariff Act of 1930; this notice is published TA–1199–1200 (Review)] conducted under authority of title VII of the pursuant to section 207.62 of the Tariff Act of 1930; this notice is published Commission’s rules. Certain Large Residential Washers pursuant to section 207.21 of the From Korea and Mexico; Revised By order of the Commission. Commission’s rules. Schedule for Full Five-Year Reviews Issued: February 5, 2019. By order of the Commission. Lisa Barton, Issued: February 4, 2019. AGENCY: United States International Secretary to the Commission. Lisa Barton, Trade Commission. [FR Doc. 2019–01634 Filed 2–7–19; 8:45 am] Secretary to the Commission. ACTION: Notice. BILLING CODE 7020–02–P [FR Doc. 2019–01569 Filed 2–7–19; 8:45 am] DATES: February 4, 2019. BILLING CODE 7020–02–P FOR FURTHER INFORMATION CONTACT: INTERNATIONAL TRADE Nathanael Comly (202–205–3174), COMMISSION INTERNATIONAL TRADE Office of Investigations, U.S. COMMISSION International Trade Commission, 500 E [Investigation Nos. 701–TA–592 and 731– Street SW, Washington, DC 20436. TA–1400 (Final)] Hearing-impaired persons can obtain [Investigation Nos. 701–TA–486 and 731– Plastic Decorative Ribbon From China; TA–1195–1196 (Review)] information on this matter by contacting Revised Schedule for Final Phase the Commission’s TDD terminal on 202– Investigations Utility Scale Wind Towers From China 205–1810. Persons with mobility and Vietnam; Revised Schedule for impairments who will need special AGENCY: United States International Full Five-Year Reviews assistance in gaining access to the Trade Commission. Commission should contact the Office ACTION: Notice. AGENCY: United States International of the Secretary at 202–205–2000. Trade Commission. General information concerning the DATES: February 4, 2019. ACTION: Notice. Commission may also be obtained by FOR FURTHER INFORMATION CONTACT: accessing its internet server (https:// Calvin Chang (202–205–3062), Office of DATES: February 4, 2019.
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FOR FURTHER INFORMATION CONTACT: INTERNATIONAL TRADE Commission issue a limited exclusion Keysha Martinez (202–205–2136), Office COMMISSION order, cease and desist orders and of Investigations, U.S. International impose a bond during the 60-day review Trade Commission, 500 E Street SW, Notice of Receipt of Complaint; period pursuant to 19 U.S.C. 1337(j). Washington, DC 20436. Hearing- Solicitation of Comments Relating to Proposed respondents, other impaired persons can obtain the Public Interest interested parties, and members of the information on this matter by contacting AGENCY: U.S. International Trade public are invited to file comments, not the Commission’s TDD terminal on 202– Commission. to exceed five (5) pages in length, inclusive of attachments, on any public 205–1810. Persons with mobility ACTION: Notice. impairments who will need special interest issues raised by the complaint assistance in gaining access to the SUMMARY: Notice is hereby given that or § 210.8(b) filing. Comments should Commission should contact the Office the U.S. International Trade address whether issuance of the relief of the Secretary at 202–205–2000. Commission has received a complaint specifically requested by the General information concerning the entitled Certain Blood Separation and complainant in this investigation would Commission may also be obtained by Cell Preparation Devices, DN 3361; the affect the public health and welfare in accessing its internet server (https:// Commission is soliciting comments on the United States, competitive www.usitc.gov). The public record for any public interest issues raised by the conditions in the United States this investigation may be viewed on the complaint or complainant’s filing economy, the production of like or Commission’s electronic docket (EDIS) pursuant to the Commission’s Rules of directly competitive articles in the at https://edis.usitc.gov. Practice and Procedure. United States, or United States FOR FURTHER INFORMATION CONTACT: consumers. SUPPLEMENTARY INFORMATION: On Lisa R. Barton, Secretary to the In particular, the Commission is September 7, 2018, the Commission Commission, U.S. International Trade interested in comments that: established a schedule for the conduct Commission, 500 E Street SW, (i) Explain how the articles of the full five-year reviews (83 FR Washington, DC 20436, telephone (202) potentially subject to the requested 46516, September 13, 2018). Due to the 205–2000. The public version of the remedial orders are used in the United lapse in appropriations and ensuing complaint can be accessed on the States; cessation of Commission operations, the Commission’s Electronic Document (ii) identify any public health, safety, Commission is revising its schedule. Information System (EDIS) at https:// or welfare concerns in the United States The Commission’s revised dates in edis.usitc.gov, and will be available for relating to the requested remedial the schedule are as follows: Deadline for inspection during official business orders; filing prehearing briefs is February 14, hours (8:45 a.m. to 5:15 p.m.) in the (iii) identify like or directly 2019; requests to appear at the hearing Office of the Secretary, U.S. competitive articles that complainant, should be filed on or before February International Trade Commission, 500 E its licensees, or third parties make in the 21, 2019; the prehearing conference, if Street SW, Washington, DC 20436, United States which could replace the necessary, is on February 25, 2019; the telephone (202) 205–2000. subject articles if they were to be hearing is on Thursday, February 28, General information concerning the excluded; 2019 beginning at 9:30 a.m.; the Commission may also be obtained by (iv) indicate whether complainant, deadline for filing posthearing briefs is accessing its internet server at United complainant’s licensees, and/or third March 7, 2019; any person who has not States International Trade Commission party suppliers have the capacity to entered an appearance as a party to the (USITC) at https://www.usitc.gov. The replace the volume of articles reviews may submit a written statement public record for this investigation may potentially subject to the requested of information pertinent to the subject of be viewed on the Commission’s exclusion order and/or a cease and the reviews on or before March 7, 2019; Electronic Document Information desist order within a commercially final release of information is on April System (EDIS) at https://edis.usitc.gov. reasonable time; and 1, 2019; and final party comments are Hearing-impaired persons are advised (v) explain how the requested due on April 4, 2019. that information on this matter can be remedial orders would impact United obtained by contacting the States consumers. For further information concerning Commission’s TDD terminal on (202) Written submissions on the public these reviews, see the Commission’s 205–1810. interest must be filed no later than by notice cited above and the SUPPLEMENTARY INFORMATION: The close of business, eight calendar days Commission’s Rules of Practice and Commission has received a complaint after the date of publication of this Procedure, part 201, subparts A through and a submission pursuant to § 210.8(b) notice in the Federal Register. There E (19 CFR part 201), and part 207, of the Commission’s Rules of Practice will be further opportunities for subparts A, D, E, and F (19 CFR part and Procedure filed on behalf of comment on the public interest after the 207). RegenLab USA LLC on February 4, issuance of any final initial Authority: These reviews are being 2019. The complaint alleges violations determination in this investigation. Any conducted under authority of title VII of the of section 337 of the Tariff Act of 1930 written submissions on other issues Tariff Act of 1930; this notice is published (19 U.S.C. 1337) in the importation into should be filed no later than by close of pursuant to section 207.62 of the the United States, the sale for business nine calendar days after the Commission’s rules. importation, and the sale within the date of publication of this notice in the By order of the Commission. United States after importation of Federal Register. Complainant may file Issued: February 4, 2019. certain blood separation and cell a reply to any written submission no preparation devices. The complaint later than the date on which Lisa Barton, names as respondents: Estar complainant’s reply would be due Secretary to the Commission. Technologies, Ltd. of Israel; and Eclipse under § 210.8(c)(2) of the Commission’s [FR Doc. 2019–01570 Filed 2–7–19; 8:45 am] MedCorp, LLC of The Colony, TX. The Rules of Practice and Procedure (19 CFR BILLING CODE 7020–02–P complainant requests that the 210.8(c)(2)).
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Persons filing written submissions Commission’s Rules of Practice and permitting electronic submission of must file the original document Procedure (19 CFR 201.10, 210.8(c)). responses. electronically on or before the deadlines By order of the Commission. Overview of This Information stated above and submit 8 true paper Issued: February 4, 2019. Collection copies to the Office of the Secretary by Lisa Barton, noon the next day pursuant to § 210.4(f) (1) Type of Information Collection: of the Commission’s Rules of Practice Secretary to the Commission. Revision of a currently approved and Procedure (19 CFR 210.4(f)). [FR Doc. 2019–01573 Filed 2–7–19; 8:45 am] collection. Submissions should refer to the docket BILLING CODE 7020–02–P (2) Title of the Form/Collection: number (‘‘Docket No. 3361) in a Annuity Broker Qualification prominent place on the cover page and/ Declaration Form. or the first page. (See Handbook for DEPARTMENT OF JUSTICE (3) Agency form number, if any, and Electronic Filing Procedures, Electronic [OMB Number 1105–0080] the applicable component of the Filing Procedures).1 Persons with Department sponsoring the collection: questions regarding filing should Agency Information Collection U.S. Department of Justice, Civil contact the Secretary (202–205–2000). Activities: Extension of a Currently Division. Any person desiring to submit a Approved Collection: Annuity Broker (4) Affected public who will be asked document to the Commission in Declaration Form or required to respond, as well as a brief confidence must request confidential abstract: Primary: Individuals. Abstract: treatment. All such requests should be ACTION: 30-Day notice of information This declaration is to be submitted directed to the Secretary to the collection under review. annually to determine whether a broker Commission and must include a full meets the qualifications to be listed as The Department of Justice (DOJ), Civil an annuity broker pursuant to Section statement of the reasons why the Division, will be submitting the Commission should grant such 111015(b) of Public Law 107–273. following information collection request (5) An estimate of the total number of treatment. See 19 CFR 201.6. Documents to the Office of Management and Budget for which confidential treatment by the respondents and the amount of time (OMB) for review and approval in estimated for an average respondent to Commission is properly sought will be accordance with the Paperwork treated accordingly. All such requests respond/reply: It is estimated that 300 Reduction Act of 1995. respondents will complete the form should be directed to the Secretary to The proposed information collection annually within approximately 1 hour. the Commission and must include a full is published to obtain comments from (6) An estimate of the total public statement of the reasons why the the public and affected agencies. burden (in hours) associated with the Commission should grant such Comments are encouraged and will be collection: The total estimated annual treatment. See 19 CFR 201.6. Documents accepted for 30 days until March 11, burden hours to complete the for which confidential treatment by the 2019. Commission is properly sought will be If you have questions concerning the certification form is 300 hours. treated accordingly. All information, collection, please contact James G. If additional information is required including confidential business Touhey, Jr., Director, Torts Branch, Civil contact: Melody Braswell, Department information and documents for which Division, U.S. Department of Justice, Clearance Officer, United States confidential treatment is properly P.O. Box 888, Benjamin Franklin Department of Justice, Justice sought, submitted to the Commission for Station, Washington, DC 20044, Management Division, Policy and purposes of this Investigation may be Telephone: (202) 616–4400. Written Planning Staff, Two Constitution disclosed to and used: (i) By the comments and suggestions from the Square, 145 N Street NE, Suite 3E.405B, Commission, its employees and Offices, public and affected agencies concerning Washington, DC 20530. and contract personnel (a) for the proposed collection of information Dated: February 5, 2019. developing or maintaining the records are encouraged. Your comments should Melody Braswell, of this or a related proceeding, or (b) in address one or more of the following Department Clearance Officer, PRA, U.S. internal investigations, audits, reviews, four points: Department of Justice. and evaluations relating to the —Evaluate whether the proposed [FR Doc. 2019–01621 Filed 2–7–19; 8:45 am] programs, personnel, and operations of collection of information is necessary BILLING CODE 4410–12–P the Commission including under 5 for the proper performance of the U.S.C. Appendix 3; or (ii) by U.S. functions of the agency, including government employees and contract whether the information will have DEPARTMENT OF JUSTICE personnel,2 solely for cybersecurity practical utility; [OMB Number 1122–0028] purposes. All nonconfidential written —Evaluate the accuracy of the agencies submissions will be available for public estimate of the burden of the Agency Information Collection inspection at the Office of the Secretary proposed collection of information, and on EDIS.3 Activities; Proposed eCollection including the validity of the eComments Requested; Extension of a This action is taken under the methodology and assumptions used; Currently Approved Collection authority of section 337 of the Tariff Act —Enhance the quality, utility, and of 1930, as amended (19 U.S.C. 1337), clarity of the information to be AGENCY: Office on Violence Against and of §§ 201.10 and 210.8(c) of the collected; and Women, Department of Justice. —Minimize the burden of the collection ACTION: 30-Day notice. 1 Handbook for Electronic Filing Procedures: of information on those who are to https://www.usitc.gov/documents/handbook_on_ respond, including through the use of SUMMARY: The Department of Justice, _ filing procedures.pdf. appropriate automated, electronic, Office on Violence Against Women 2 All contract personnel will sign appropriate nondisclosure agreements. mechanical, or other technological (OVW) will be submitting the following 3 Electronic Document Information System collection techniques or other forms information collection request to the (EDIS): https://edis.usitc.gov. of information technology, e.g., Office of Management and Budget
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(OMB) for review and approval in (hereafter referred to as the Dated: February 5, 2019. accordance with the Paperwork Consolidated Youth Program) enacted in Melody Braswell, Reduction Act of 1995. the FY 2012–2018 appropriation acts, Department Clearance Officer, PRA, U.S. DATES: Comments are encouraged and which consolidated four previously Department of Justice. will be accepted for 30 days until March authorized and appropriated programs [FR Doc. 2019–01599 Filed 2–7–19; 8:45 am] 11, 2019. into one comprehensive program. The BILLING CODE 4410–FX–P FOR FURTHER INFORMATION CONTACT: four programs included in these Written comments and/or suggestion consolidations were: Services to regarding the items contained in this Advocate for and Respond to Youth DEPARTMENT OF JUSTICE (Youth Services), Grants to Assist notice, especially the estimated public [OMB Number 1121–New] burden and associated response time, Children and Youth Exposed to should be directed to Cathy Poston, Violence (CEV), Engaging Men and Agency Information Collection Office on Violence Against Women, at Youth in Preventing Domestic Violence Activities; Proposed eCollection 202–514–5430 or Catherine.poston@ (EMY), and Supporting Teens through eComments Requested; New usdoj.gov. Education and Prevention (STEP). Collection The Consolidated Youth Program SUPPLEMENTARY INFORMATION: Written AGENCY: Bureau of Justice Assistance, supports projects designed to provide comments and suggestions from the Department of Justice. coordinated community responses that public and affected agencies concerning ACTION: 60 Day notice. the proposed collection of information support child, youth and young adult are encouraged. Your comments should victims through direct services, training, SUMMARY: The Department of Justice, address one or more of the following coordination and collaboration, effective Bureau of Justice Assistance, is four points: intervention, treatment, response, and submitting the following information (1) Evaluate whether the proposed prevention strategies. The Consolidated collection request to the Office of collection of information is necessary Youth Program creates a unique Management and Budget (OMB) for for the proper performance of the opportunity for communities to increase review and approval in accordance with functions of the agency, including collaboration among non-profit victim the Paperwork Reduction Act of 1995. service providers; violence prevention, whether the information will have DATES: The Department of Justice and children (0–10), youth (11–18), practical utility; encourages public comment and will young adult (19–24) and men-serving (2) Evaluate the accuracy of the accept input until April 9, 2019. agency’s estimate of the burden of the organizations; tribes and tribal governments; local government FOR FURTHER INFORMATION CONTACT: If proposed collection of information, you have additional comments including the validity of the agencies; schools; and programs that support men’s role in combating sexual especially on the estimated public methodology and assumptions used; burden or associated response time, (3) Enhance the quality, utility, and assault, domestic violence, dating violence and stalking. suggestions, or need a copy of the clarity of the information to be proposed information collection collected; and (5) An estimate of the total number of instrument with instructions or (4) Minimize the burden of the respondents and the amount of time additional information, please contact collection of information on those who estimated for an average respondent to Gregory Torain, Policy Advisor, Office are to respond, including through the respond/reply: It is estimated that it will of Justice Programs, Bureau of Justice use of appropriate automated, take the approximately 25 respondents Assistance, 810 Seventh Street NW, electronic, mechanical, or other (grantees from the Consolidated Youth Washington, DC 20531, technological collection techniques or Program) approximately one hour to [email protected], O) 202–305– other forms of information technology, complete a semi-annual progress report. 4485. e.g., permitting electronic submission of The semi-annual progress report is SUPPLEMENTARY INFORMATION: responses. divided into sections that pertain to the Written different types of activities in which comments and suggestions from the Overview of This Information public and affected agencies concerning Collection grantees may engage. A Consolidated Youth Program grantee will only be the proposed collection of information (1) Type of Information Collection: required to complete the sections of the are encouraged. Your comments should Extension of a Currently Approved form that pertain to its own specific address one or more of the following Collection. activities. four points: (2) Title of the Form/Collection: Semi- —Evaluate whether the proposed annual Progress Report for Children and (6) An estimate of the total public collection of information is necessary Youth Exposed to Violence Program. burden (in hours) associated with the for the proper performance of the (3) Agency form number, if any, and collection: The total annual hour burden functions of the Bureau of Justice the applicable component of the to complete the data collection forms is Assistance, including whether the Department of Justice sponsoring the 50 hours, that is 25 grantees completing information will have practical utility; collection: Form Number: 1122–0028. a form twice a year with an estimated —Evaluate the accuracy of the agency’s U.S. Department of Justice, Office on completion time for the form being one estimate of the burden of the Violence Against Women. hour. proposed collection of information, (4) Affected public who will be asked If additional information is required including the validity of the or required to respond, as well as a brief contact: Melody Braswell, Deputy methodology and assumptions used; abstract: The affected public includes Clearance Officer, United States —Evaluate whether and if so how the the approximately 25 grantees under the Department of Justice, Justice quality, utility, and clarity of the Consolidated Grant Program to Address Management Division, Policy and information to be collected can be Children and Youth Experiencing Planning Staff, Two Constitution enhanced; and Domestic and Sexual Assault and Square, 145 N Street NE, 3E, 405B, — Minimize the burden of the Engage Men and Boys as Allies Washington, DC 20530. collection of information on those
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who are to respond, including collection: Using the maximum CONSOLIDATED IN THIS through the use of appropriate response rate of 100%, the total annual PROCEEDING MUST NONETHELESS automated, electronic, mechanical, or hours for the ATCS Series is FILE A PETITION TO PARTICIPATE IN other technological collection approximately 2,502 hours across the THIS CONSOLIDATED PROCEEDING. techniques or other forms of 4,343 courts in the population frames. ANY PARTY THAT FAILS TO FILE A information technology, e.g., Specifically, total completion time of PETITION TO PARTICIPATE IN THIS permitting electronic submission of the State Coordinator ATCS is an CONSOLIDATED PROCEEDING BY responses. estimated 18 hours (20 minutes for each THE TIME SET IN THIS NOTICE Overview of This Information of the 54 potential respondents); the SHALL NOT BE A PARTICIPANT AT Collection Local ATCS’s total completion time is ANY STAGE OF THIS CONSOLIDATED estimated at 2,433.67 hours (35 minutes PROCEEDING. 1. Type of Information Collection: for each of the 4,172 potential courts). DATES: Petitions to Participate and the New collection. The total time to complete the Tribal filing fee, if applicable, are due on or 2. The Title of the Form/Collection: ATCS across the tribal population frame before March 11, 2019. Annual Treatment Court Survey Series. is 68.25 hours (35 minutes for each of 3. The agency form number, if any, ADDRESSES: Interested claimants must the 117 tribal courts). and the applicable component of the submit petitions to participate and the If additional information is required Department sponsoring the collection: filing fee, if applicable. Each petition to contact: Melody Braswell, Department [Insert Agency Form Number(s) from participate must identify the proceeding Clearance Officer, United States Question 8 on OMB Form 83–I, or if by docket number 16–CRB–0009 CD Department of Justice, Justice there is no form number insert ‘‘There (2014–17). Participants must file using Management Division, Policy and is no agency form number for this the CRB’s electronic filing application, Planning Staff, Two Constitution collection.’’]. The applicable component eCRB, at https://app.crb.gov/. Claimants Square, 145 N Street NE, 3E.405A, within the Department of Justice is the without access to the internet may file Washington, DC 20530. Bureau of Justice Assistance. using any of the following methods: 4. Affected public who will be asked Dated: February 5, 2019. U.S. mail: Copyright Royalty Board, or required to respond, as well as a brief Melody Braswell, P.O. Box 70977, Washington, DC 20024– abstract: The Local ATCS (N=4,172 Department Clearance Officer for PRA, U.S. 0977; or courts), Tribal ATCS (N=117 courts), Department of Justice. Overnight service (only USPS Express and State Coordinator (N=54 state/ [FR Doc. 2019–01670 Filed 2–7–19; 8:45 am] Mail is acceptable): Copyright Royalty territory court coordinators) address the BILLING CODE 4410–18–P Board, P.O. Box 70977, Washington, DC structure (e.g., funding, personnel, 20024–0977; or partnerships), operation (e.g., services Commercial courier: Address package to: Copyright Royalty Board, Library of offered, eligibility, decision making), LIBRARY OF CONGRESS and successes and challenges (e.g., Congress, James Madison Memorial adherence to or deviance from best Copyright Royalty Board Building, LM–403, 101 Independence practices; racial, ethnic, and gender Avenue SE, Washington, DC 20559– disparity or equity). The purpose of the [Consolidated Docket No. 16–CRB–0009 CD 6000. Deliver to: Congressional Courier (2014–17)] ATCS is to develop a current portrait of Acceptance Site, 2nd Street NE and D Street NE, Washington, DC; or treatment courts including needs and Distribution of Cable Royalty Funds emerging trends. Hand delivery: Library of Congress, 5. An estimate of the total number of AGENCY: Copyright Royalty Board, James Madison Memorial Building, LM– respondents and the amount of time Library of Congress. 401, 101 Independence Avenue SE, estimated for an average respondent to ACTION: Notice announcing Washington, DC 20559–6000. respond: Overall, the ATCS Series uses commencement of distribution Instructions: Unless submitting three national population frames, proceeding with request for Petitions to online, claimants must submit an totaling 4,343 courts and offices for Participate. original, two paper copies, and an court administration. Data collection electronic version on a CD. All uses these full population frames; SUMMARY: The Copyright Royalty Judges submissions must include the Copyright samples from these population frames (Judges) announce commencement of a Royalty Board name and docket are not created for collection purposes. proceeding to determine distribution of number. All submissions received will The national population frame for the 2014, 2015, 2016, and 2017 royalties be posted without change on eCRB Local ATCS contains each of the deposited with the Copyright Office including any personal information treatment courts across the country under the statutory license for provided. (N=4,172) with one respondent from secondary transmissions by cable Docket: For access to the docket to each court, and the tribal courts across systems. The Judges also set the date by read background documents, go to the country constitute the population which all parties wishing to participate eCRB, the Copyright Royalty Board’s frame for the Tribal ATCS (N=117) with and share in the distribution of cable electronic filing and case management one respondent from each court. All retransmission royalties for the years system, at https://app.crb.gov/ and state/territory court coordinators (N=54) 2014 through 2017 must file a Petition search for docket number 16–CRB–0009 comprise the population frame for the to Participate and the accompanying CD (2014–17). To access documents not State Coordinator ATCS. Estimated $150 filing fee, if applicable. The Judges yet uploaded to eCRB (because it is a amounts of time to complete the surveys seek a single Petition to Participate from new system), go to the agency website in the ATCS Series are 20 minutes for any entity intending to participate in the at https://www.crb.gov/ or contact the the State Coordinator ATCS, 35 minutes Allocation Phase or the Distribution CRB Program Specialist. for the Local ATCs, and 35 for the Tribal Phase of this proceeding, or both FOR FURTHER INFORMATION CONTACT: ATCS. Phases. ANY PARTY THAT FILED A Anita Blaine, CRB Program Specialist, 6. An estimate of the total public PETITION TO PARTICIPATE IN ANY by telephone at (202) 707–7658 or email burden (in hours) associated with the OF THE PROCEEDINGS at [email protected].
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SUPPLEMENTARY INFORMATION: allocation of the royalty funds among LIBRARY OF CONGRESS Background claimant groups and ultimate distribution of royalties to eligible Copyright Royalty Board Twice each year, cable system claimants. operators must deposit with the [Consolidated Docket No. 16–CRB–0010 SD Copyright Office royalties payable for Petitions To Participate (2014–17)] the privilege of retransmitting by cable Distribution of Satellite Royalty Funds over-the-air television and radio Parties filing Petitions to Participate must comply with the requirements of broadcast signals. 17 U.S.C. 111. The AGENCY: Copyright Royalty Board, Judges oversee distribution of the § 351.1(b) of the Judges’ regulations. In Library of Congress. addition, each Petition to Participate royalties to copyright owners whose ACTION: Notice announcing must identify for each claim year, the works are included in the commencement of distribution name of each claimant, the retransmissions and who have filed a proceeding with request for Petitions to timely claim for royalties. This notice corresponding claim number, an Participate. announces the commencement of a indication of whether the claim is an proceeding under 17 U.S.C. 803(b)(1) for individual or joint claim, and the SUMMARY: The Copyright Royalty Judges distribution of cable royalties deposited program category into which the claim (Judges) announce commencement of a for transmissions made in 2014, 2015, may fall. proceeding to determine distribution of 2016, and 2017. Any claimant whose claim does not 2014, 2015, 2016, and 2017 royalties ANY PARTY WISHING TO RECEIVE deposited with the Copyright Office ROYALTIES PAYABLE FOR 2014 exceed $1,000 in value and who includes a statement in its Petition to under the statutory license for THROUGH 2017 MUST FILE A secondary transmissions satellite Participate that the claimant will not PETITION TO PARTICIPATE AT THIS television services. The Judges also set seek distribution of more than $1,000 TIME. THE JUDGES SHALL DEEM ANY the date by which all parties wishing to may file the Petition to Participate PETITION TO PARTICIPATE FILED participate and share in the distribution without payment of the filing fee. 37 PURSUANT TO THIS NOTICE AS A of satellite retransmission royalties for PETITION TO PARTICIPATE IN BOTH CFR 351.1(b)(4). the years 2014 through 2017 must file a THE ALLOCATION PHASE AND THE How To Submit Petitions To Participate Petition to Participate and the DISTRIBUTION PHASE OF THIS accompanying $150 filing fee, if PROCEEDING. IN ORDER TO Interested parties with claims applicable. The Judges seek a single PARTICIPATE IN THE DISTRIBUTION exceeding $1,000 must submit a filing Petition to Participate from any entity PHASE, ALL PETITIONERS MUST fee of $150 with their Petition to intending to participate in the PARTICIPATE FULLY AND IN GOOD Participate, or the Judges will reject the Allocation Phase or the Distribution FAITH IN THE ALLOCATION PHASE. petition. THE COPYRIGHT ROYALTY Phase of this proceeding, or both IF AN INTERESTED PARTY FAILS TO BOARD WILL NOT ACCEPT CASH. Phases. ANY PARTY THAT FILED A FILE A PETITION TO PARTICIPATE IN PETITION TO PARTICIPATE IN ANY RESPONSE TO THIS NOTICE, THAT Parties filing online through eCRB must pay the filing fee, if applicable, by OF THE PROCEEDINGS PARTY SHALL NOT BE ELIGIBLE FOR CONSOLIDATED IN THIS DISTRIBUTION OF ROYALTY FUNDS credit card using the payment portal on eCRB. Any party without access to the PROCEEDING MUST NONETHELESS FOR 2014 THROUGH 2017. ANY FILE A PETITION TO PARTICIPATE IN internet must pay the filing fee by check PARTY THAT FILED A PETITION TO THIS CONSOLIDATED PROCEEDING. or money order made payable to the PARTICIPATE IN ANY OF THE ANY PARTY THAT FAILS TO FILE A ‘‘Copyright Royalty Board’’ and mailed PROCEEDINGS CONSOLIDATED IN PETITION TO PARTICIPATE IN THIS or delivered with its filed paper THIS PROCEEDING MUST CONSOLIDATED PROCEEDING BY NONETHELESS FILE A PETITION TO documents and CD as described in the THE TIME SET IN THIS NOTICE PARTICIPATE IN THIS ADDRESSES section above. If a check is SHALL NOT BE A PARTICIPANT AT CONSOLIDATED PROCEEDING. returned for lack of sufficient funds, the ANY STAGE OF THIS CONSOLIDATED The Judges will resolve all issues Judges will dismiss the corresponding PROCEEDING. relating to distribution of cable royalty Petition to Participate. DATES: Petitions to Participate and the funds for 2014 through 2017 in this Any participant that is an individual proceeding, Docket No. 16–CRB–0009 filing fee, if applicable, are due on or may represent herself or himself; all CD (2014–17). See 37 CFR 351.1(b)(2) before March 11, 2019. other participants must be represented ADDRESSES: Interested claimants must Commencement of Distribution by counsel. In accordance with 37 CFR submit petitions to participate and the Proceeding 350.2, only attorneys who are members filing fee, if applicable. Each petition to As required by 17 U.S.C. 804(b)(8), of the bar in one or more states or the participate must identify the proceeding the Judges gave notice of their intention District of Columbia and in good by docket number 16–CRB–0010 SD to commence this consolidated standing will be allowed to represent (2014–17). Participants must file using proceeding in order to determine parties before the Copyright Royalty the CRB’s electronic filing application, whether a controversy exists. See 83 FR Judges. The Judges will address further eCRB, at https://app.crb.gov/. Claimants 56106 (Nov. 9, 2018). The Judges procedural matters, including without access to the internet may file received responses from 12 entities scheduling, after receiving Petitions to using any of the following methods: representing claimants to the royalty Participate. U.S. mail: Copyright Royalty Board, funds at issue. The responsive Dated: January 3, 2019. P.O. Box 70977, Washington, DC 20024– comments establish that controversies 0977; or exist with respect to distribution of Suzanne M. Barnett, Overnight service (only USPS Express royalties in each year’s fund. The Chief Copyright Royalty Judge. Mail is acceptable): Copyright Royalty Judges, therefore, commence this [FR Doc. 2019–01571 Filed 2–7–19; 8:45 am] Board, P.O. Box 70977, Washington, DC proceeding to determine appropriate BILLING CODE 1410–72–P 20024–0977; or
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Commercial courier: Address package IF AN INTERESTED PARTY FAILS TO eCRB. Any party without access to the to: Copyright Royalty Board, Library of FILE A PETITION TO PARTICIPATE IN internet must pay the filing fee by check Congress, James Madison Memorial RESPONSE TO THIS NOTICE, THAT or money order made payable to the Building, LM–403, 101 Independence PARTY SHALL NOT BE ELIGIBLE FOR ‘‘Copyright Royalty Board’’ and mailed Avenue SE, Washington, DC 20559– DISTRIBUTION OF ROYALTY FUNDS or delivered with its filed paper 6000. Deliver to: Congressional Courier FOR 2014 THROUGH 2017. ANY documents and CD as described in the Acceptance Site, 2nd Street NE and D PARTY THAT FILED A PETITION TO ADDRESSES section above. If a check is Street NE, Washington, DC; or PARTICIPATE IN ANY OF THE returned for lack of sufficient funds, the Hand delivery: Library of Congress, PROCEEDINGS CONSOLIDATED IN Judges will dismiss the corresponding James Madison Memorial Building, LM– THIS PROCEEDING MUST Petition to Participate. 401, 101 Independence Avenue SE, NONETHELESS FILE A PETITION TO Any participant that is an individual Washington, DC 20559–6000. PARTICIPATE IN THIS may represent herself or himself; all Instructions: Unless submitting CONSOLIDATED PROCEEDING. other participants must be represented online, claimants must submit an The Judges will resolve all issues by counsel. In accordance with 37 CFR original, two paper copies, and an relating to distribution of satellite 350.2, only attorneys who are members electronic version on a CD. All royalty funds for 2014 through 2017 in of the bar in one or more states or the submissions must include the Copyright this proceeding, Docket No. 16–CRB– District of Columbia and in good Royalty Board name and docket 0010 SD (2014–17). See 37 CFR standing will be allowed to represent number. All submissions received will 351.1(b)(2) parties before the Copyright Royalty be posted without change on eCRB Commencement of Distribution Judges. The Judges will address further including any personal information Proceeding procedural matters, including provided. As required by 17 U.S.C. 804(b)(8), scheduling, after receiving Petitions to Docket: For access to the docket to Participate. read background documents, go to the Judges gave notice of their intention eCRB, the Copyright Royalty Board’s to commence this consolidated Dated: January 3, 2019. electronic filing and case management proceeding in order to determine Suzanne M. Barnett, system, at https://app.crb.gov/ and whether a controversy exists. See 83 FR Chief Copyright Royalty Judge. search for docket number 16–CRB–0010 56106 (Nov. 9, 2018). The Judges [FR Doc. 2019–01572 Filed 2–7–19; 8:45 am] SD (2014–17). To access documents not received responses from 12 entities BILLING CODE 1410–72–P yet uploaded to eCRB (because it is a representing claimants to the royalty new system), go to the agency website funds at issue. The responsive at https://www.crb.gov/ or contact the comments establish that controversies CRB Program Specialist. exist with respect to distribution of NATIONAL FOUNDATION ON THE FOR FURTHER INFORMATION CONTACT: royalties in each year’s fund. The ARTS AND THE HUMANITIES Anita Blaine, CRB Program Specialist, Judges, therefore, commence this National Endowment for the Arts by telephone at (202) 707–7658 or email proceeding to determine appropriate at [email protected]. allocation of the royalty funds among claimant groups and ultimate Arts Advisory Panel Meetings SUPPLEMENTARY INFORMATION: distribution of royalties to eligible AGENCY: National Endowment for the Background claimants. Arts. Twice each year, satellite television Petitions To Participate ACTION: Notice of meetings. services must deposit with the Parties filing Petitions to Participate Copyright Office royalties payable for must comply with the requirements of SUMMARY: Pursuant to the Federal the privilege of retransmitting by § 351.1(b) of the Judges’ regulations. In Advisory Committee Act, as amended, satellite over-the-air television and radio addition, each Petition to Participate notice is hereby given that 3 meetings of broadcast signals. 17 U.S.C. 119. The must identify for each claim year, the the Arts Advisory Panel to the National Judges oversee distribution of the name of each claimant, the Council on the Arts will be held by royalties to copyright owners whose corresponding claim number, an teleconference. works are included in the indication of whether the claim is an retransmissions and who have filed a DATES: See the SUPPLEMENTARY individual or joint claim, and the INFORMATION section for individual timely claim for royalties. This notice program category into which the claim announces the commencement of a meeting times and dates. All meetings may fall. are Eastern time and ending times are proceeding under 17 U.S.C. 803(b)(1) for Any claimant whose claim does not approximate: distribution of satellite royalties exceed $1,000 in value and who deposited for transmissions made in includes a statement in its Petition to ADDRESSES: National Endowment for the 2014, 2015, 2016, and 2017. Participate that the claimant will not Arts, Constitution Center, 400 7th St. ANY PARTY WISHING TO RECEIVE seek distribution of more than $1,000 SW, Washington DC 20506. ROYALTIES PAYABLE FOR 2014 may file the Petition to Participate THROUGH 2017 MUST FILE A FOR FURTHER INFORMATION CONTACT: without payment of the filing fee. 37 Further information with reference to PETITION TO PARTICIPATE AT THIS CFR 351.1(b)(4). TIME. THE JUDGES SHALL DEEM ANY these meetings can be obtained from Ms. PETITION TO PARTICIPATE FILED How To Submit Petitions To Participate Sherry Hale, Office of Guidelines & PURSUANT TO THIS NOTICE AS A Interested parties with claims Panel Operations, National Endowment PETITION TO PARTICIPATE IN BOTH exceeding $1,000 must submit a filing for the Arts, Washington, DC 20506 THE ALLOCATION PHASE AND THE fee of $150 with their Petition to [email protected], or call 202/682–5696. DISTRIBUTION PHASE OF THIS Participate, or the Judges will reject the SUPPLEMENTARY INFORMATION: The PROCEEDING. IN ORDER TO petition. THE COPYRIGHT ROYALTY closed portions of meetings are for the PARTICIPATE IN THE DISTRIBUTION BOARD WILL NOT ACCEPT CASH. purpose of Panel review, discussion, PHASE, ALL PETITIONERS MUST Parties filing online through eCRB evaluation, and recommendations on PARTICIPATE FULLY AND IN GOOD must pay the filing fee, if applicable, by financial assistance under the National FAITH IN THE ALLOCATION PHASE. credit card using the payment portal on Foundation on the Arts and the
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Humanities Act of 1965, as amended, MATTERS TO BE CONSIDERED: Æ New Member Swearing-in including information given in • Director’s Remarks Tuesday, February 12, 2019 confidence to the agency. In accordance Æ Senior Executive Updates with the determination of the Chairman Plenary Board Meeting Æ Office of Legislative and Public of July 5, 2016, these sessions will be Affairs Update Open session: 8:00–9:30 a.m. closed to the public pursuant to • Approval of Prior Minutes subsection (c)(6) of section 552b of title • NSB Chair’s Opening Remarks • Committee Chair Updates • 5, United States Code. NSB Vision Presentation Æ Science and Engineering Indicators Æ Dr. Vinton Cerf Update Æ The Upcoming Meetings Are Dr. Anita Jones Æ Merit Review Report Update Æ Jazz Masters Fellowships (review of Dr. Barry Barish Æ Awards & Facilities Retreat Update • NSF Director’s Remarks Æ applications): This meeting will be • NSB One-Pager on Foreign Born closed. Summary of Activities Students and Workers in the U.S. Date and time: February 19, 2019; Committee on Awards and Facilities S&E Enterprise 2:00 p.m. to 3:00 p.m. (A&F) Æ Committee on Strategy Update Jazz Masters Fellowships (review of Æ Skilled Technical Workforce applications): This meeting will be Closed Session: 9:30 a.m.–12:00 noon Update closed. • Committee Chair’s Opening Remarks • Vote: OIG Semiannual Report and Date and time: February 19, 2019; • Approval of Prior Minutes Management Response 3:00 p.m. to 4:00 p.m. • Action Item: Antarctic Infrastructure • Chair’s Closing Remarks National Heritage Fellowships (review Modernization for Science (AIMS) Meeting Adjourns: 5:15 p.m. • of applications): This meeting will be Action Item: International Ocean MEETINGS THAT ARE OPEN TO THE PUBLIC: closed. Discovery Program (IODP) Date and time: February 28, 2019; • Update on Cornell High Energy 1:00 p.m. to 4:00 p.m. Synchrotron Source Wednesday, November 28, 2018 • Context Item: Green Bank Observatory 8:00–9:30 a.m. Plenary NSB Dated: February 4, 2019. • Update on National Ecological 1:00–2:00 p.m. Plenary Sherry Hale, Observatory Network Staff Assistant, National Endowment for the 4:30–5:15 p.m. Plenary Arts. Plenary Board MEETINGS THAT ARE CLOSED TO THE [FR Doc. 2019–01543 Filed 2–7–19; 8:45 am] Open Session: 1:00–2:00 p.m. PUBLIC: BILLING CODE 4537–01–P • Chair’s Opening Remarks and Wednesday, November 28, 2018 Introductions 9:30 a.m.–12:00 noon (A&F) Æ Mr. Chris Liddell, White House NATIONAL SCIENCE FOUNDATION 2:00–3:15 p.m. Plenary Deputy Chief of Staff for Policy 3:15–3:30 p.m. Plenary Executive (NSF) Coordination 3:45–4:30 p.m. (CS) Sunshine Act Meetings; National Plenary Board CONTACT PERSONS FOR MORE Science Board INFORMATION: The NSB Office contact is Closed Session: 2:00–3:15 p.m. Brad Gutierrez, [email protected], 703– The National Science Board (NSB), • Chair’s Opening Remarks 292–7000. The NSB Public Affairs pursuant to NSF regulations (45 CFR • Director’s Remarks contact is Nadine Lymn, nlymn@ Æ part 614), the National Science Impact of Lapse in Appropriations nsf.gov, 703–292–2490. Foundation Act, as amended, (42 U.S.C. • Approval of Prior Minutes SUPPLEMENTAL INFORMATION: Public 1862n–5), and the Government in the • Closed Committee Reports meetings and public portions of Sunshine Act (5 U.S.C. 552b), hereby • Vote: International Ocean Discovery meetings held in the 2nd Floor gives notice of the scheduling of Program Operations and boardroom will be webcast. To view meetings for the transaction of NSB Maintenance these meetings, go to: http:// business as follows: • Vote: Antarctic Infrastructure Modernization for Science www.tvworldwide.com/events/nsf/ TIME AND DATE: Tuesday, February 12, 190212/ follow the instructions. The 2019 from 8:00 a.m. to 5:15 p.m. EST. Plenary Board (Executive) public may observe public meetings PLACE: These meetings will be held at Closed Session: 3:15–3:30 p.m. held in the boardroom. The address is the NSF headquarters, 2415 Eisenhower 2415 Eisenhower Avenue, Alexandria, Avenue, Alexandria, VA 22314. • Chair’s Opening Remarks • VA 22314. Meetings are held in the boardroom on Approval of Prior Minutes Please refer to the NSB website for • Director’s Remarks the 2nd Floor. The public may observe Æ additional information. You will find public meetings held in the boardroom. Senior Personnel Update Æ Waterman Award Update any updated meeting information and All visitors must contact the Board schedule updates (time, place, subject Office (call 703–292–7000 or send an Committee on Strategy (CS) matter, or status of meeting) at https:// email to [email protected]) at Closed Session: 3:45–4:30 p.m. www.nsf.gov/nsb/meetings/notices.jsp least 24 hours prior to the meeting and #sunshine. provide your name and organizational • Committee Chair’s Opening Remarks The NSB provides some flexibility affiliation. Visitors must report to the • Approval of Prior Minutes • around meeting times. After the first NSF visitor’s desk in the building lobby FY 2019 and 2020 Budget Updates meeting of each day, actual meeting to receive a visitor’s badge. and FY 2020 Passback start and end times will be allowed to STATUS: Some of these meetings will be Plenary Board vary by no more than 15 minutes in open to the public. Others will be closed either direction. As an example, if a to the public. See full description Open Session: 4:30–5:15 p.m. 10:00 meeting finishes at 10:45, the below. • Chair’s Opening Remarks meeting scheduled to begin at 11:00
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may begin at 10:45 instead. Similarly, 7A06M, U.S. Nuclear Regulatory The NRC does not routinely edit the 10:00 meeting may be allowed to Commission, Washington, DC 20555– comment submissions to remove run over by as much as 15 minutes if the 0001, ATTN: Program Management, identifying or contact information. Chair decides the extra time is Announcements and Editing Staff. If you are requesting or aggregating warranted. The next meeting would For additional direction on obtaining comments from other persons for start no later than 11:15. Arrive at the information and submitting comments, submission to the NRC, then you should NSB boardroom or check the webcast 15 see ‘‘Obtaining Information and inform those persons not to include minutes before the scheduled start time Submitting Comments’’ in the identifying or contact information that of the meeting you wish to observe. SUPPLEMENTARY INFORMATION section of they do not want to be publicly this document. disclosed in their comment submission. Chris Blair, FOR FURTHER INFORMATION CONTACT: Your request should state that the NRC Executive Assistant to the National Science does not routinely edit comment Board Office. David Dawood, Telephone: 301–415– 2389, email: [email protected], submissions to remove such information [FR Doc. 2019–01762 Filed 2–6–19; 11:15 am] Yaguang, Yang, Telephone: 301–415– before making the comment BILLING CODE 7555–01–P 0655, email: [email protected], submissions available to the public or and Michael Eudy, Telephone: 301– entering the comment submissions into 415–3104, email: Michael.Eudy@ ADAMS. NUCLEAR REGULATORY nrc.gov. All are staff members of the COMMISSION II. Additional Information Office of Nuclear Regulatory Research, The NRC is issuing for public [[NRC–2019–0041] U.S. Nuclear Regulatory Commission, comment a DG in the NRC’s ‘‘Regulatory Washington, DC 20555–0001. Instrument Sensing Lines Guide’’ series. This series was SUPPLEMENTARY INFORMATION: developed to describe and make AGENCY: Nuclear Regulatory I. Obtaining Information and available to the public information Commission. Submitting Comments regarding methods that are acceptable to ACTION: Draft regulatory guide; request the NRC staff for implementing specific for comment. A. Obtaining Information parts of the NRC’s regulations, Please refer to Docket ID NRC–2019– techniques that the staff uses in SUMMARY: The U.S. Nuclear Regulatory 0041 when contacting the NRC about evaluating specific issues or postulated Commission (NRC) is issuing for public the availability of information regarding events, and data that the staff needs in comment draft regulatory guide (DG), this action. You may obtain publically- its review of applications for permits DG–1352, ‘‘Instrument Sensing Lines.’’ available information related to this and licenses. DG–1352 describes an approach that is action, by any of the following methods: The DG, entitled, ‘‘Instrument Sensing acceptable to the staff of the NRC to • Federal Rulemaking Website: Go to Lines,’’ is a proposed revision meet regulatory requirements for http://www.regulations.gov and search temporarily identified by its task instrument sensing lines in nuclear for Docket ID: NRC–2019–0041. number, DG–1352. DG–1352 is power plants. The DG would endorse, • NRC’s Agencywide Documents proposed revision 2 of RG 1.151, with certain clarifications, standards Access and Management System ‘‘Instrument Sensing Line.’’ DG–1352 that were updated and corrected (ADAMS): You may obtain publicly- describes an approach that is acceptable subsequent to the last time the NRC available documents online in the to the staff of the NRC to meet endorsed them. More information on ADAMS Public Documents collection at regulatory requirements for instrument updates can be found in the ‘‘Additional http://www.nrc.gov/reading-rm/ sensing lines in nuclear power plants. It Information’’ section below. adams.html. To begin the search, select endorses, with certain clarifying DATES: Submit comments by April 9, ‘‘Begin Web-based ADAMS Search.’’ For regulatory positions, American National 2019. Comments received after this date problems with ADAMS, please contact Standards Institute/International will be considered if it is practical to do the NRC’s Public Document Room (PDR) Society of Automation (ANSI/ISA)– so, but the NRC is able to ensure reference staff at 1–800–397–4209, 301– 67.02.01–2014, ‘‘Nuclear Safety-Related consideration only for comments 415–4737, or by email to pdr.resource@ Instrument Sensing Line Piping and received on or before this date. nrc.gov. DG–1352 and the Regulatory Tubing Standard for Use in Nuclear Although a time limit is given, Analysis are available in ADAMS under Power Plants.’’ The revision of ANSI/ comments and suggestions in Accession No. ML18158A303 and ISA–67.02.01 previously endorsed by connection with items for inclusion in ML18158A301 respectfully. the NRC was revised by ANSI/ISA in guides currently being developed or • NRC’s PDR: You may examine and 2014. This DG also references the improvements in all published guides purchase copies of public documents at International Organization for are encouraged at any time. the NRC’s PDR, Room O1–F21, One Standardization (ISO) standard ISO ADDRESSES: You may submit comments White Flint North, 11555 Rockville 2186–2007, ‘‘Fluid Flow in Closed by any of the following methods: Pike, Rockville, Maryland 20852. Conduits—Connections for Pressure • Federal Rulemaking Website: Go to Signal Transmissions between Primary B. Submitting Comments http://www.regulations.gov and search and Secondary Elements.’’ In addition, for: Docket ID: NRC–2019–0041. Please include Docket ID NRC–2019– this DG incorporates recent operating Address questions about NRC dockets to 0041 in your comment submission. The experience, as described in NRC Krupskaya Castellon; telephone: 301– NRC cautions you not to include Information Notice (IN) 2013–12, 287–9122; email: Krupskaya.Castellon@ identifying or contact information that ‘‘Improperly Sloped Instrument Sensing nrc.gov. For technical questions, contact you do not want to be publicly Lines,’’ dated July 3, 2013. the individual(s) listed in the FOR disclosed in your comment submission. FURTHER INFORMATION CONTACT section of The NRC posts all comment III. Backfitting and Issue Finality this document. submissions at http:// This DG may be applied to • Mail comments to: Office of www.regulations.gov as well as enters applications for operating licenses Administration, Mail Stop: TWFN– the comment submissions into ADAMS. under title 10 of the Code of Federal
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Regulations (10 CFR) part 50 or DATES: Comments must be filed by April obtaining materials referenced in this combined licenses under 10 CFR part 52 19, 2019. Comments received after this document are provided in a table in docketed by the NRC as of the date of date will be considered, if it is practical Section VII of this notice entitled, issuance of the final regulatory guide, as to do so, but the Commission is able to Availability of Documents. well as future applications submitted ensure consideration only for comments • NRC’S PDR: You may examine and after the issuance of the regulatory received on or before this date. purchase copies of public documents at guide. Such action would not constitute ADDRESSES: You may submit comments the NRC’s PDR, Room O1–F21, One backfitting as defined in the 10 CFR by any of the following methods: White Flint North, 11555 Rockville 50.109 or be otherwise inconsistent with • Federal Rulemaking Website: Go to Pike, Rockville, Maryland 20852. the applicable issue finality provision in http://www.regulations.gov and search • Project web page: Information 10 CFR part 52, inasmuch as such for Docket ID NRC–2019–0026. Address related to the UNC Church Rock project applicants or potential applicants, with questions about Docket IDs in can be accessed on the NRC’s project certain exceptions, are not within the Regulations.gov to Krupskaya Castellon; web page at: https://www.nrc.gov/info- scope of entities that are the subject of telephone: 301–287–9221; email: finder/decommissioning/uranium/ the Backfit Rule or an issue finality [email protected]. For united-nuclear-corporation-unc-.html. provision in part 52. The exceptions are technical questions, contact the B. Submitting Comments whenever an applicant references a part individual listed in the FOR FURTHER 50 or part 52 license (e.g., a construction INFORMATION CONTACT section of this Please include Docket ID NRC–2019– permit) and/or regulatory approval (e.g., document. 0026 in your comment submission. a design certification or a standard • Mail comments to: Office of Written comments may be submitted design approval) with specified Administration, Mail Stop: TWFN–7– during the scoping period as described backfitting or issue finality provisions. A60M, U.S. Nuclear Regulatory in the ADDRESSES section of the document. Dated at Rockville, Maryland, this 4th day Commission, Washington, DC 20555– 0001, ATTN: Program Management, The NRC cautions you not to include of February, 2019. identifying or contact information that For the Nuclear Regulatory Commission. Announcements and Editing Staff. • Email comments to: UNC- you do not want to be publicly Thomas H. Boyce, [email protected]. disclosed in your comment submission. Chief, Regulatory Guidance and Generic For additional direction on obtaining The NRC posts all comment Issues Branch, Division of Engineering, Office information and submitting comments, submissions at http:// of Nuclear Regulatory Research. see ‘‘Obtaining Information and www.regulations.gov as well as entering [FR Doc. 2019–01556 Filed 2–7–19; 8:45 am] Submitting Comments’’ in the the comment submissions into ADAMS. BILLING CODE 7590–01–P SUPPLEMENTARY INFORMATION section of The NRC does not routinely edit this document. comment submissions to remove FOR FURTHER INFORMATION CONTACT: identifying or contact information. NUCLEAR REGULATORY If you are requesting or aggregating COMMISSION Ashley Waldron, Office of Nuclear Material Safety and Safeguards, U.S. comments from other persons for Nuclear Regulatory Commission, submission to the NRC, then you should [Docket No. 40–8907; NRC–2019–0026] Washington, DC 20555–0001; telephone: inform those persons not to include identifying or contact information that United Nuclear Corporation (UNC) 301–415–7317; email: Ashley.Waldron@ nrc.gov. they do not want to be publicly Church Rock Project disclosed in their comment submission. SUPPLEMENTARY INFORMATION: Your request should state that the NRC AGENCY: Nuclear Regulatory I. Obtaining Information and does not routinely edit comment Commission. Submitting Comments submissions to remove such information ACTION: Intent to prepare an before making the comment environmental impact statement (EIS) A. Obtaining Information submissions available to the public or and conduct a scoping process; request Please refer to Docket ID NRC–2019– entering the comment submissions into for comment. 0026 when contacting the NRC about ADAMS. the availability of information regarding SUMMARY: The U.S. Nuclear Regulatory this document. You may obtain II. Background Commission (NRC) received a license publicly-available information related to By letter dated September 24, 2018, application by letter dated September this action by the following methods: UNC, a wholly owned, indirect 24, 2018, from United Nuclear • Federal Rulemaking Website: Go to subsidiary of General Electric (GE) Corporation (UNC). By this application, http://www.regulations.gov and search submitted an application to amend its UNC is requesting authorization to for Docket ID NRC–2019–0026. license SUA–1475. UNC is seeking to amend its license (SUA–1475) to • NRC’s Agencywide Documents move approximately 1,000,000 CY of excavate approximately 1 million cubic Access and Management System mine spoils from the Northeast Church yards (CY) of mine spoil from the (ADAMS): You may obtain publicly- Rock Mine Site (Mine Site) onto the Northeast Church Rock Mine Site and available documents online in the Church Rock Mill Site (mill site) in dispose of it at the existing mill site in ADAMS Public Documents collection at McKinley County, New Mexico. Church Rock, New Mexico (the http://www.nrc.gov/reading-rm/ The NRC staff has completed an proposed action). The NRC staff will adams.html. To begin the search, select acceptance review of UNC Church Rock prepare an EIS to document the ‘‘Begin Web-based ADAMS Search.’’ For license amendment application. By potential environmental impacts from problems with ADAMS, please contact email dated January 4, 2019, the NRC the proposed action and reasonable the NRC’s Public Document Room (PDR) notified UNC that the staff determined alternatives. As part of the EIS reference staff at 1–800–397–4209, 301– the application contains sufficient development process, the NRC is 415–4737, or by email to pdr.resource@ information for the NRC to conduct a seeking comments on the scope of its nrc.gov. In addition, for the convenience detailed technical review (ADAMS environmental review. of the reader, instructions about Package Accession No. ML18360A424).
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The applicant’s environmental report former uranium-ore processing mill is issues to be analyzed in depth, as well (ER) can be found under ADAMS licensed under NRC license SUA–1475. as those that should be eliminated from Accession No. ML18267A387. A byproduct material tailings detailed study because they are The purpose of this notice is to: (1) impoundment currently exists within peripheral or are not significant. The Inform the public that the NRC staff will the mill site. Both the mine and mill NRC staff is planning to publish prepare an EIS as part of its review of sites are listed on the National Priorities information related to this action in UNC Church Rock license amendment List under the Comprehensive newspapers serving communities near application in accordance with title 10 Environmental Response, the Church Rock site requesting of the Code of Federal Regulations (10 Compensation, and Liability Act information and comments from the CFR) Part 51 ‘‘Environmental Protection (CERCLA, also called Superfund). This public. Additionally, the NRC is Regulations for Domestic Licensing and license amendment is part of the planning to hold public scoping Related Regulatory Functions,’’ and (2) proposed remediation and disposal of meetings to receive comments in person provide the public with an opportunity mine site waste. Waste that meets the in accordance with 10 CFR 51.26. The to participate in the environmental Environmental Protection Agency (EPA) dates, times, and locations for the scoping process as defined in 10 CFR action levels for cleanup [2.24 meetings will be provided on NRC’s 51.29. In addition, as outlined in 36 CFR picocuries per gram (pCi/g) of radium- public web page at: https:// 800.8, ‘‘Coordination with the National 226 and 230 mg/kg natural uranium or www.nrc.gov/pmns/mtg. Environmental Policy Act,’’ the NRC less] would be moved from the mine site After the close of the scoping period, plans to coordinate compliance with and placed within the footprint the the NRC staff will prepare a concise Section 106 of the National Historic existing tailings impoundment on the summary of its scoping process, the Preservation Act in meeting the mill site. Any waste that contains 200 comments received, as well as the requirements of the National pCi/g or more of radium-226 or 500 mg/ NRC’s responses. The Scoping Summary Environmental Policy Act of 1969 kg of total uranium would be segregated Report will be included in NRC’s draft (NEPA). The NRC staff also will and transported to an offsite licensed EIS as an appendix and sent to each document its compliance with other facility for disposal and therefore would participant in the scoping process for applicable Federal statutes, such as the not be placed at the mill site. whom the staff has an address or email Endangered Species Act, in the EIS. Construction of a cover between the address. The UNC Church Rock EIS will III. Environmental Review underlying tailings and the mine spoils is proposed as well as a cover over the address the potential impacts from the The EIS prepared by the NRC staff final mine waste surface. proposed action. The anticipated scope will examine the potential of the EIS will consider both environmental impacts of the proposed V. Alternatives To Be Evaluated radiological and non-radiological action. The NRC staff will evaluate the The EIS will analyze the impacts associated with the proposed potential impacts to various environmental impacts of the proposed project and its alternatives. The EIS will environmental resources, such as air action, the no-action alternative, and also consider unavoidable adverse quality, surface and ground water, reasonable alternatives. A brief environmental impacts, the relationship transportation, geology and soils, and description of each is provided below. between short-term uses of resources socioeconomics. The EIS will analyze No-Action Alternative—The no-action and long-term productivity, and potential impacts of UNC’s proposal on alternative would be to deny the license irreversible and irretrievable historic and cultural resources and on application. Under this alternative, the commitments of resources. The threatened and endangered species. NRC would not issue the license following resource areas have been Additionally, the economic, technical, amendment and UNC would not be tentatively identified for analysis in the and other benefits and costs of the authorized to accept the waste from the EIS: Land use, transportation, geology proposed action and alternatives will be Northeast Church Rock Mine site. This and soils, water resources, ecological considered in the EIS. alternative serves as a baseline for the resources, air quality and climate The NRC staff will also conduct a comparison of environmental impacts of change, noise, historical and cultural safety review to determine UNC’s the proposed action and the reasonable resources, visual and scenic resources, compliance with NRC’s regulations, alternatives. socioeconomics, public and including 10 CFR part 20, ‘‘Standards Proposed Action—The proposed occupational health, waste management, for Protection Against Radiation’’ and Federal action is to issue a license environmental justice, and cumulative 10 CFR part 40, ‘‘Domestic Licensing of amendment to UNC authorizing the impacts. This list is not intended to be Source Material.’’ The NRC staff’s company to amend its license SUA– exhaustive, nor is it a predetermination findings would be published in a safety 1475 to move mine waste from the of potential environmental impacts. The evaluation report. Northeast Church Rock Mine site onto EIS will describe the NRC staff’s the mill site for disposal. approach and methodology undertaken IV. Church Rock Mill Site Alternatives to the Proposed Action— to determine the resource areas that will The NRC’s Federal action is to either Other alternatives not listed here may be be studied in detail and the NRC staff’s grant or deny UNC’s license amendment identified during scoping or through the evaluation of potential impacts to those request. If the NRC approves UNC’s environmental review process. resource areas. request, then UNC could proceed with The NRC encourages members of the the proposed project—as described in VI. Scope of the Environmental Review public, local, State, Tribal, and Federal its application and summarized here. The NRC staff is conducting a scoping government agencies to participate in UNC proposes to excavate process for the UNC Church Rock EIS, the scoping process. Written comments approximately 1,000,000 CY of mine which begins on the day this notice may be submitted during the scoping spoils from the Northeast Church Rock appears in the Federal Register. In period as described in the ADDRESSES Mine site (mine site) onto the adjacent accordance with 10 CFR 51.29, the NRC and SUPPLEMENTARY INFORMATION section Church Rock Mill Site (mill site). Both seeks public input to help the NRC of this document. Participation in the the mine and mill sites are located in determine the appropriate scope of the scoping process for the UNC Church McKinley County, New Mexico. The EIS, including significant environmental Rock EIS does not entitle participants to
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become parties to any proceeding to respect to any environmental impact EIS and the dates of the public comment which the EIS relates. involved. The NRC invites such period will be announced in a future In addition to requesting scoping agencies to participate in the scoping Federal Register notice. The final EIS comments through this Federal Register process and, as appropriate, cooperate will include NRC’s responses to public notice, the NRC staff also intends to in the preparation of the EIS. comments received on the draft EIS. reach out to interested stakeholders, The NRC staff will continue its VII. Availability of Documents including other Federal and State environmental review of UNC Church agencies and Indian Tribes. The NRC Rock license amendment application, The documents identified in this staff seeks to identify, among other and with its contractor, prepare a draft Federal Register notice are accessible to things, all review and consultation EIS and, as soon as practicable, publish interested persons by the means requirements related to the proposed it for public comment. The NRC staff indicated in either the SUPPLEMENTARY action, and agencies with jurisdiction by plans to have a public comment period INFORMATION section of this notice or in law or with special expertise with for the draft EIS. Availability of the draft the table below.
Document ADAMS accession No.
UNC Church Rock license amendment application and ER (September 2018) ...... ML18267A235 (Package). ML18267A387. NRC’s acceptance of the application for docketing and detailed review ...... ML18360A424 (Package).
Dated at Rockville, Maryland, this 5th day laws of Delaware, and serving as Milwaukee, WI 53202, and Andrew of February, 2019. investment adviser to the Fund.1 Dakos, Managing Member, Bulldog For the U.S. Nuclear Regulatory FILING DATES: The application was filed Investors, LLC, Park 80 West, 250 Pehle Commission. on August 3, 2018, and amended on Avenue, Suite 708, Saddle Brook, NJ Michael F. King, November 14, 2018. 07663. Director, Division of Fuel Cycle Safety, HEARING OR NOTIFICATION OF HEARING: FOR FURTHER INFORMATION CONTACT: Safeguards, and Environmental Review, An order granting the application will Laura L. Solomon, Senior Counsel at Office of Nuclear Material Safety, and be issued unless the Commission orders Safeguards. (202) 551–6915, or Kaitlin C. Bottock, a hearing. Interested persons may Branch Chief, at (202) 551–6825 [FR Doc. 2019–01642 Filed 2–7–19; 8:45 am] request a hearing by writing to the (Division of Investment Management, BILLING CODE 7509–01–P Commission’s Secretary and serving Chief Counsel’s Office). applicants with a copy of the request, SUPPLEMENTARY INFORMATION: The personally or by mail. Hearing requests following is a summary of the should be received by the Commission SECURITIES AND EXCHANGE application. The complete application by 5:30 p.m. on March 1, 2019, and COMMISSION may be obtained via the Commission’s should be accompanied by proof of website by searching for the file service on applicants, in the form of an number, or for an applicant using the [Investment Company Act Release No. affidavit or, for lawyers, a certificate of 33367; File No. 812–14937] Company name box, at http:// service. Pursuant to Rule 0–5 under the www.sec.gov/search/search.htm, or by Special Opportunities Fund, Inc. and Act, hearing requests should state the calling (202) 551–8090. nature of the writer’s interest, any facts Bulldog Investors, LLC SUMMARY OF THE APPLICATION: bearing upon the desirability of a 1. Section 19(b) of the Act generally February 4, 2019. hearing on the matter, the reason for the makes it unlawful for any registered request, and the issues contested. AGENCY: Securities and Exchange investment company to make long-term Persons who wish to be notified of a Commission (‘‘Commission’’). capital gains distributions more than hearing may request notification by ACTION: Notice. once every twelve months. Rule 19b–1 writing to the Commission’s Secretary. under the Act limits to one the number Notice of an application under section ADDRESSES : The Commission: Secretary, of capital gain dividends, as defined in 6(c) of the Investment Company Act of U.S. Securities and Exchange section 852(b)(3)(C) of the Internal 1940 (‘‘Act’’) for an exemption from Commission, 100 F Street NE, Revenue Code of 1986 (‘‘Code,’’ and section 19(b) of the Act and rule 19b– Washington, DC 20549–1090. such dividends, ‘‘distributions’’), that a 1 under the Act to permit a registered Applicants: Phillip Goldstein, registered investment company may closed-end investment company to Chairman, Special Opportunities Fund, make with respect to any one taxable make periodic distributions of long-term Inc. c/o U.S. Bancorp Fund Services, year, plus a supplemental distribution capital gains more frequently than LLC, 615 East Michigan Street, made pursuant to section 855 of the permitted by section 19(b) or rule 19b– Code not exceeding 10% of the total 1. 1 Applicants request that the order also apply to amount distributed for the year, plus APPLICANTS: each other registered closed-end investment Special Opportunities company advised or to be advised in the future by one additional capital gain dividend Fund, Inc. (‘‘SPE’’), a diversified closed- Bulldog or by an entity controlling, controlled by, made in whole or in part to avoid the end investment company registered or under common control (within the meaning of excise tax under section 4982 of the under the Act and organized as a section 2(a)(9) of the Act) with Bulldog (including any successor in interest) (each such entity, Code. corporation under the laws of Maryland, including Bulldog, the ‘‘Adviser’’) that in the future 2. Applicants believe that investors in and Bulldog Investors, LLC (‘‘Bulldog’’) seeks to rely on the order (such investment certain closed-end funds may prefer an (together with SPE, the ‘‘Applicants’’), companies, together with SPE, are collectively the investment vehicle that provides regular registered under the Investment ‘‘Funds’’ and, individually, a ‘‘Fund’’). A successor in interest is limited to entities that result from a current income through a fixed Advisers Act of 1940, organized as a reorganization into another jurisdiction or a change distribution policy (‘‘Distribution limited liability company under the in the type of business organization. Policy’’). Applicants propose that the
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Fund be permitted to adopt a SECURITIES AND EXCHANGE testing approach to verify that the Distribution Policy, pursuant to which COMMISSION number of actual losses is consistent the Fund would distribute periodically with the number of projected losses. [Release No. 34–85047; File No. SR–ICC– to its stockholders a fixed percentage of 2019–001] Generally, ICC’s back-testing analysis the market price of the Fund’s common counts the number of occurrences, also stock at a particular point in time or a Self-Regulatory Organizations; ICE referred to as exceedances, when the fixed percentage of net asset value Clear Credit LLC; Proposed Rule observed portfolio loss for a given (‘‘NAV’’) at a particular time or a fixed Change Relating to the ICE CDS horizon is greater than the model amount per share of common stock, any Clearing: Back-Testing Framework projected risk measure, defined as the of which may be adjusted from time to sum of the selected initial margin February 4, 2019. time. components. The total number of Pursuant to Section 19(b)(1) of the exceedances is evaluated against the 3. Applicants request an order under Securities Exchange Act of 1934,1 and desired risk quantile and the model is section 6(c) of the Act granting an Rule 19b–4,2 notice is hereby given that considered well calibrated if the number exemption from section 19(b) of the Act on January 28, 2019, ICE Clear Credit of exceedances is consistent with the and rule 19b–1 to permit a Fund to LLC (‘‘ICC’’) filed with the Securities chosen risk quantile. The Back-Testing distribute periodic capital gain and Exchange Commission Framework also addresses multi- dividends (as defined in section (‘‘Commission’’) the proposed rule currency portfolios by accounting for 852(b)(3)(C) of the Code) as frequently change as described in Items I, II and III the foreign exchange risk exposure and as twelve times in any one taxable year below, which Items have been prepared summarizes the associated back-testing in respect of its common stock (and as by ICC. The Commission is publishing analysis, which is performed in the often as specified by, or determined in this notice to solicit comments on the clearinghouse base currency (i.e., U.S. accordance with the terms of, any proposed rule change from interested Dollar). preferred stock issued by the Fund). persons. ICC utilizes the Basel Traffic Light Section 6(c) of the Act provides, in I. Clearing Agency’s Statement of the System (‘‘BTLS’’) to assess the relevant part, that the Commission may Terms of Substance of the Proposed soundness of its risk management model exempt any person or transaction from Rule Change (‘‘model’’). The Back-Testing any provision of the Act to the extent Framework contains a summary of the The principal purpose of the BTLS, including descriptions and that such exemption is necessary or proposed rule change is to revise the calculations associated with each zone appropriate in the public interest and ICE CDS Clearing: Back-Testing of the BTLS. The BTLS is based on three consistent with the protection of Framework (‘‘Back-Testing zones: Green, yellow, and red. Each investors and the purposes fairly Framework’’). These revisions do not zone is defined by the maximum intended by the policy and provisions of require any changes to the ICC Clearing number of acceptable exceedances. In the Act. Rules (‘‘Rules’’). practice, the more portfolios that fall 4. Applicants state that any order II. Clearing Agency’s Statement of the within the green zone, the sounder the granting the requested relief will be Purpose of, and Statutory Basis for, the model. The BTLS does not penalize the subject to the terms and conditions Proposed Rule Change model for conservativeness. stated in the application, which The Back-Testing Framework contains In its filing with the Commission, ICC generally are designed to address the ICC’s procedures for performing back- included statements concerning the concerns underlying section 19(b) and testing analyses. The ICC Risk purpose of and basis for the proposed rule 19b–1, including concerns about Management Department (‘‘ICC Risk’’) rule change and discussed any proper disclosures and shareholders’ performs daily, weekly, monthly, and comments it received on the proposed quarterly portfolio-level back-testing understanding of the source(s) of a rule change. The text of these statements Fund’s distributions and concerns about analyses. The Back-Testing Framework may be examined at the places specified sets forth ICC’s calculation of the improper sales practices. Among other in Item IV below. ICC has prepared things, such terms and conditions observed loss, which is referred to as the summaries, set forth in sections (A), (B), N-day worst unrealized profit/loss require that (1) the board of directors or and (C) below, of the most significant trustees of the Fund (the ‘‘Board’’) (‘‘P/L’’), using the changes in portfolio aspects of these statements. net asset values (‘‘NAVs’’). The initial review such information as is margin risk horizon is reflected as reasonably necessary to make an (A) Clearing Agency’s Statement of the ‘‘N-day’’ where N≥5 is the initial margin informed determination of whether to Purpose of, and Statutory Basis for, the Proposed Rule Change risk horizon or the Margin Period of adopt the proposed Distribution Policy Risk (‘‘MPOR’’). The back-testing and that the Board periodically review (a) Purpose analysis is based on the greatest MPOR, the amount of the distributions in light ICC proposes to update and formalize rounded up to the nearest integer, for of the investment experience of the the Back-Testing Framework that instruments in the considered portfolio. Fund, and (2) that the Fund’s describes ICC’s back-testing approach, For example, if an instrument is subject shareholders receive appropriate back-testing procedures, and guidelines to 5.5-day MPOR estimations, then the disclosures concerning the for remediating poor back-testing back-testing analysis is performed by distributions. results. ICC proposes to formalize the comparing the model projected risk For the Commission, by the Division of Back-Testing Framework following measure to the N-day worst unrealized Investment Management, under delegated Commission approval of the proposed P/L with N=6. The model projected risk authority. rule change. measure, which is subject to back- Eduardo A. Aleman, ICC’s Back-Testing Framework testing, is the sum of the following selected initial margin components: Deputy Secretary. includes a discussion of ICC’s back- Integrated spread response, basis risk, [FR Doc. 2019–01531 Filed 2–7–19; 8:45 am] 1 15 U.S.C. 78s(b)(1) and interest rate sensitivity (‘‘back- BILLING CODE 8011–01–P 2 17 CFR 240.19b–4. tested components’’). Under the Back-
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Testing Framework, the remaining monthly parameter reviews and by ICC Risk to determine the cause of components of initial margin are parameter sensitivity analyses. the model’s worsened performance and, excluded because they are not always ICC Risk also periodically reports if necessary, a complimentary back- market observed and statistically univariate back-testing results, namely, testing analysis without overlapping modeled. instrument and Risk Factor 3 (‘‘RF’’) back-testing periods. ICC back-tests its model with Clearing back-testing results, depending on Under the Back-Testing Framework, if Participant (‘‘CP’’) portfolios and a market conditions. The Back-Testing poor back-testing results are identified hypothetical set of portfolios (‘‘special Framework discusses how back-testing at the portfolio level, individual RF strategy portfolios’’) at the 99.5% risk results are computed and reported for back-testing results are further analyzed. quantile. Under the Back-Testing SN RFs and index instruments. As The Back-Testing Framework contains Framework, back-testing analysis is noted above, the back-testing analysis is information regarding the analysis if performed for the model at the 99.5% performed for the model at the 99.5% poor back-testing results are identified risk quantile for all CP-related risk quantile and exceedance summary for certain RFs, including analysis on portfolios. The Back-Testing Framework results are generated. The Back-Testing the spread log-return statistical model also includes a sample set of special Framework defines the model projected assumptions, estimation techniques, strategy portfolios, which allow ICC to risk measure with respect to univariate and estimated parameters. consider a range of hypothetical but back-testing as the sum of the integrated To remediate poor back-testing realistic portfolios in its back-testing spread response and the interest rate results, the Back-Testing Framework analysis. Back-testing results for the sensitivity (‘‘univariate back-tested provides ICC Risk with the authority to special strategy portfolios are reviewed components’’) and directs ICC Risk to take various actions depending on the periodically to identify and assess perform several analyses if an situation, including updating statistical potential weaknesses in model exceedance is observed, which include, parameters (i.e., parameters estimated assumptions. among others, an analysis of the spread by statistical analysis of data sets) and increasing the frequency of parameter The Back-Testing Framework and recovery rate changes. The Back- updates. The Back-Testing Framework describes ICC’s procedures for reporting Testing Framework also contains references several situations that may back-testing results. Daily portfolio information regarding ICC Risk’s lead to poor back-testing results, along back-testing results are reported on a performance of univariate back-testing analysis in spread log-return space, with the actions that ICC Risk may take periodic basis for each CP based on the for remediation, including poor back- appropriate MPOR. The Back-Testing including the utilization of different mean absolute deviation estimates and testing results associated with distressed Framework provides example SN RFs, poor performance at the computations for a sample MPOR of 5 an indication of when such analysis may be performed. portfolio level driven by improper days (i.e., all instruments in the portfolio benefits, and poor back-testing considered portfolio are subject to a The Back-Testing Framework provides guidelines for remediating results due to recent changes in the 5-day MPOR). For each day in the back- dependence structure among RFs. testing period, all components of initial poor back-testing results. Back-testing results are identified as poor if the Under the Back-Testing Framework, ICC margin are provided, and the back- Risk may apply additional initial margin tested components and non-back-tested number of observed exceedances at the portfolio level falls in the red zone of while investigating the model’s poor components are identified. The sum of performance and, if needed, recommend the back-tested components is given the BTLS. The Back-Testing Framework discusses various actions to be taken model enhancements to the Risk alongside the unrealized P/L and the Committee and the Board. associated shortfall. An exceedance upon the identification of poor back- summary shows the total number of testing results, which include seeking (b) Statutory Basis exceedances in the period and states the feedback from the Risk Working Group Section 17A(b)(3)(F) of the Act 5 4 maximum number of exceedances that (‘‘RWG’’) and consulting with the Risk requires, among other things, that the satisfy each zone in the BTLS. Back- Committee on any necessary remedial rules of a clearing agency be designed to testing results for the full period are also action. The Back-Testing Framework promote the prompt and accurate reported, and the back-tested describes an instance where the number clearance and settlement of securities components and the N-day P/L results of exceedances falls in the red zone but transactions, and to the extent for every back-tested day are computed may not be indicative of poor back- applicable, derivative agreements, for each portfolio associated with a testing results, namely, where contracts and transactions; to assure the given CP. overlapping back-testing periods are safeguarding of securities and funds The Back-Testing Framework involved and the effects of one adverse which are in the custody or control of discusses the exceedance summaries observation are responsible for a cluster the clearing agency or for which it is that are provided when ICC back-tests of exceedances. The Back-Testing responsible; in general, to protect its model with CP and special strategy Framework provides the Chief Risk investors and the public interest; and to portfolios at the 99.5% risk quantile. Officer and Risk Oversight Officer with comply with the provisions of the Act The Back-Testing Framework notes the the responsibility and the authority to and the rules and regulations reporting frequency, along with the determine whether the number of thereunder. ICC believes that the information that is delivered as part of exceedances is indicative of poor back- proposed rule change is consistent with an exceedance summary, such as the testing results. The Back-Testing the requirements of the Act and the number of observations and Framework also notes the actions to be rules and regulations thereunder exceedances for the set of back-testing taken if the number of exceedances falls applicable to ICC, in particular, to results and the maximum number of in the yellow zone, including a review Section 17(A)(b)(3)(F),6 because ICC exceedances allowed in each zone in the believes that the proposed rule change BTLS. Moreover, in addition to 3 ICC deems each index, sub-index, or underlying single name (‘‘SN’’) reference entity a separate RF. to formalize the Back-Testing assessing the model’s performance by 4 The RWG consists of risk personnel from CPs back-testing, the Back-Testing and provides input to help ensure ICC’s risk 5 15 U.S.C. 78q–1(b)(3)(F). Framework directs ICC Risk to conduct management framework is robust. 6 Id.
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Framework promotes the soundness of The Back-Testing Framework requires information relating to the assignment ICC’s risk management model. The the remediation of poor-back-testing of responsibilities and the requisite Back-Testing Framework describes ICC’s results; the performance of daily, involvement of the Chief Risk Officer, back-testing approach, back-testing weekly, monthly, and quarterly the Risk Oversight Officer, ICC Risk, the procedures, and guidelines for portfolio-level back-testing analyses; RWG, the Risk Committee, and the remediating poor back-testing results. and the performance of monthly Board is clearly documented, consistent The various elements set forth in the parameter reviews and parameter with the requirements of Rule 17Ad– Back-Testing Framework assess the sensitivity analyses. Such procedures 22(d)(8).15 ability of the model to reliably forecast serve to promote the soundness of ICC’s risk at the selected risk quantile and risk management model and to ensure (B) Clearing Agency’s Statement on ensure that ICC takes appropriate that ICC’s risk management system is Burden on Competition remedial action upon the identification effective and appropriate in addressing ICC does not believe the proposed of poor back-testing results. The Back- the risks associated with clearing rule change would have any impact, or Testing Framework provides assurances security based swap-related portfolios. impose any burden, on competition. as to the appropriateness of the model, Namely, by requiring that ICC review The proposed change to formalize the including the appropriateness of margin and improve the model, the Back- Back-Testing Framework will apply requirements, thereby facilitating ICC’s Testing Framework promotes ICC’s use uniformly across all market participants. ability to promptly and accurately clear of margin requirements to limit its Therefore, ICC does not believe the and settle its cleared CDS contracts; credit exposures to participants under proposed rule change imposes any enhancing ICC’s ability to assure the normal market conditions and ICC’s use burden on competition that is safeguarding of securities and funds of risk-based models and parameters to inappropriate in furtherance of the which are in the custody or control of set margin requirements and review purposes of the Act. ICC or for which it is responsible; and such margin requirements and the protecting investors and the public related risk-based models and (C) Clearing Agency’s Statement on interest. Moreover, ICC believes that parameters at least monthly, consistent Comments on the Proposed Rule having policies and procedures that with Rule 17Ad–22(b)(2).10 Change Received From Members, clearly and accurately document ICC’s Rule 17Ad–22(b)(3)11 requires ICC to Participants or Others back-testing procedures are an establish, implement, maintain and Written comments relating to the important component to the enforce written policies and procedures proposed rule change have not been effectiveness of ICC’s risk management reasonably designed to maintain solicited or received. ICC will notify the system, which promotes the prompt and sufficient financial resources to Commission of any written comments accurate clearance and settlement of withstand, at a minimum, a default by received by ICC. securities transactions, derivatives the two CP families to which it has the agreements, contracts, and transactions; largest exposures in extreme but III. Date of Effectiveness of the the safeguarding of securities and funds plausible market conditions. The Back- Proposed Rule Change which are in the custody or control of Testing Framework supports ICC’s Within 45 days of the date of ICC or for which it is responsible; and ability to maintain sufficient margin publication of this notice in the Federal the protection of investors and the requirements and enhances ICC’s Register or within such longer period public interest. As such, the proposed approach to identifying potential up to 90 days (i) as the Commission may rule change is designed to promote the weaknesses in the risk methodology by designate if it finds such longer period prompt and accurate clearance and measuring the quality of its model using to be appropriate and publishes its settlement of securities transactions, the BTLS, thereby ensuring that ICC reasons for so finding or (ii) as to which derivatives agreements, contracts, and continues to maintain sufficient the self-regulatory organization transactions; to contribute to the financial resources to withstand, at a consents, the Commission will: safeguarding of securities and funds minimum, a default by the two CP (A) By order approve or disapprove associated with security-based swap families to which it has the largest such proposed rule change, or transactions in ICC’s custody or control, exposures in extreme but plausible or for which ICC is responsible; and, in (B) institute proceedings to determine market conditions, consistent with the whether the proposed rule change general, to protect investors and the 12 requirements of Rule 17Ad–22(b)(3). should be disapproved. public interest within the meaning of Rule 17Ad–22(d)(8) 13 requires ICC to Section 17A(b)(3)(F) of the Act.7 establish, implement, maintain and IV. Solicitation of Comments In addition, the proposed rule change enforce written policies and procedures Interested persons are invited to is consistent with the relevant reasonably designed to have governance requirements of Rule 17Ad–22.8 Rule submit written data, views, and arrangements that are clear and arguments concerning the foregoing, 17Ad–22(b)(2) 9 requires ICC to transparent to fulfill the public interest establish, implement, maintain and including whether the proposed rule requirements in Section 17A of the change is consistent with the Act. enforce written policies and procedures Act.14 The Back-Testing Framework reasonably designed to use margin Comments may be submitted by any of clearly assigns and documents the following methods: requirements to limit its credit responsibility and accountability for exposures to participants under normal performing back-testing analyses and Electronic Comments market conditions and use risk-based remediating poor back-testing results. • models and parameters to set margin Use the Commission’s internet These governance arrangements are comment form (http://www.sec.gov/ requirements and review such margin clear and transparent, such that requirements and the related risk-based rules/sro.shtml); or • Send an email to rule-comments@ models and parameters at least monthly. 10 Id. 11 17 CFR 240.17Ad–22(b)(3). sec.gov. Please include File Number SR– 7 Id. 12 Id. ICC–2019–001 on the subject line. 8 17 CFR 240.17Ad–22. 13 17 CFR 240.17Ad–22(d)(8). 9 17 CFR 240.17Ad–22(b)(2). 14 15 U.S.C. 78q–1. 15 17 CFR 240.17Ad–22(d)(8).
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Paper Comments ACTION: Notice of a new matching individual is a subsidy-eligible Send paper comments in triplicate to program. individual. Secretary, Securities and Exchange Purpose(s): The purpose of this SUMMARY: In accordance with the matching program is to set forth the Commission, 100 F Street NE, provisions of the Privacy Act, as Washington, DC 20549. terms, conditions, and safeguards under amended, this notice announces a new which OPM will disclose to SSA civil All submissions should refer to File matching program with the Office of service benefit and payment data for Number SR–ICC–2019–001. This file Personnel Management (OPM). verifying an individual’s self- number should be included on the This matching agreement sets forth certification of eligibility for the subject line if email is used. To help the the terms, conditions, and safeguards Prescription Drug Plan Costs program Commission process and review your under which OPM will provide SSA (Extra Help). It will also enable SSA to comments more efficiently, please use with civil service benefit and payment identify individuals who may qualify only one method. The Commission will data. This disclosure will provide SSA for Extra Help as part of its Medicare post all comments on the Commission’s with information necessary to verify an outreach efforts. internet website (http://www.sec.gov/ individual’s self-certification of Categories of Individuals: The rules/sro.shtml). Copies of the eligibility for the Extra Help with individuals whose information is submission, all subsequent Medicare Prescription Drug Plan Costs involved in this matching program are amendments, all written statements program (Extra Help). It will also enable individuals who self-certify their with respect to the proposed rule SSA to identify individuals who may eligibility for the Extra Help program. change that are filed with the qualify for Extra Help as part of its Categories of Records: OPM’s data file Commission, and all written Medicare outreach efforts. will consist of approximately 75,000 communications relating to the DATES: The deadline to submit records of updated payment information proposed rule change between the comments on the proposed matching for new civil service annuitants and Commission and any person, other than program is 30 days from the date of annuitants whose civil service annuity those that may be withheld from the publication of this notice in the Federal has changed. SSA’s comparison file public in accordance with the Register. The matching program will be consists of approximately 91 million provisions of 5 U.S.C. 552, will be applicable on October 1, 2018, or once records from the Medicare Database file. available for website viewing and a minimum of 30 days after publication The number of people who apply for printing in the Commission’s Public of this notice has elapsed, whichever is Extra Help determines in part the Reference Room, 100 F Street NE, later. The matching program will be in number of records matched. Washington, DC 20549, on official effect for a period of 18 months. OPM will provide SSA with business days between the hours of ADDRESSES: Interested parties may electronic files containing civil service 10:00 a.m. and 3:00 p.m. Copies of such comment on this notice by either benefit and payment data for filings will also be available for telefaxing to (410) 966–0869, writing to individuals who apply for the Extra inspection and copying at the principal Mary Ann Zimmerman, Acting Help program. The file includes: office of ICE Clear Credit and on ICE Executive Director, Office of Privacy a. Payee Name and Date of Birth, Clear Credit’s website at https:// and Disclosure, Office of the General b. Payee Social Security number, www.theice.com/clear-credit/regulation. Counsel, Social Security c. Payee Civil Service Claim Number, All comments received will be posted Administration, G–401 WHR, 6401 and without change. Persons submitting Security Boulevard, Baltimore, MD d. Amount of current gross civil comments are cautioned that we do not 21235–6401, or emailing service benefits. redact or edit personal identifying [email protected]. All System(s) of Records: OPM will information from comment submissions. comments received will be available for provide SSA with electronic files You should submit only information public inspection by contacting Ms. containing civil service benefit and that you wish to make available Zimmerman at this street address. payment data from the OPM system of publicly. All submissions should refer records published as OPM/Central–1 to File Number SR–ICC–2019–001 and FOR FURTHER INFORMATION CONTACT: Interested parties may submit general (Civil Service and Insurance Records), should be submitted on or before March on October 8, 1999 (64 FR 54930), as 1, 2019. questions about the matching program to Mary Ann Zimmerman, Acting amended on March 20, 2008 (73 FR For the Commission, by the Division of Executive Director, Office of Privacy 15013). Trading and Markets, pursuant to delegated SSA will match OPM data with its authority.16 and Disclosure, Office of the General Counsel, by any of the means shown system of records 60–0321, Medicare Eduardo A. Aleman, above. Database file, last fully published at 71 Deputy Secretary. FR 42159 (July 25, 2006), and amended [FR Doc. 2019–01553 Filed 2–7–19; 8:45 am] Mary Zimmerman, at 72 FR 69723 (December 10, 2007). BILLING CODE 8011–01–P Acting Executive Director, Office of Privacy [FR Doc. 2019–01693 Filed 2–7–19; 8:45 am] and Disclosure, Office of the General Counsel. BILLING CODE 4191–02–P Participating Agencies: SSA and OPM. SOCIAL SECURITY ADMINISTRATION Authority for Conducting the SURFACE TRANSPORTATION BOARD Matching Program: The legal authority [Docket No. SSA 2017–0063] for SSA to conduct this matching is [Docket No. FD 36068 (Sub-No. 2)] Privacy Act of 1974; Matching Program sections 1144(a)(1) and (b)(1) and The Indiana Rail Road Company— 1860D–14(a)(3) of the Social Security Temporary Trackage Rights AGENCY: Social Security Administration Act (Act) (42 U.S.C. 1320b–14(a)(1) and Exemption—CSX Transportation, Inc. (SSA). (b)(1) and 1395w–114(a)(3)). Pursuant to these sections, SSA must determine On December 21, 2018, The Indiana 16 17 CFR 200.30–3(a)(12). whether a Social Security Part D eligible Rail Road Company (INRD), a Class II
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rail carrier, filed a request under 49 CFR 2. Notice will be published in the Provided no formal expression of 1180.2(d)(8) for a one-year extension of Federal Register. intent to file an offer of financial the limited temporary overhead trackage 3. This decision is effective on its assistance (OFA) has been received,2 rights previously granted in this sub- service date. this exemption will be effective on docket over a line of railroad of CSX Decided: February 4, 2019. March 12, 2019, unless stayed pending Transportation, Inc. (CSXT), between its reconsideration. Petitions to stay that do By the Board, Allison C. Davis, Acting 3 connection with CSXT at approximately Director, Office of Proceedings. not involve environmental issues, CSXT milepost OZA 204.5 at Sullivan, formal expressions of intent to file an Jeffrey Herzig, Ind., and the connection with trackage OFA under 49 CFR 1152.27(c)(2),4 and serving the Oaktown Mine at Clearance Clerk. interim trail use/rail banking requests approximately CSXT milepost OZA [FR Doc. 2019–01594 Filed 2–7–19; 8:45 am] under 49 CFR 1152.29 must be filed by 219.05 at Oaktown, Ind., a distance of BILLING CODE 4915–01–P February 15, 2019. Petitions to reopen approximately 14.55 miles (the Line). or requests for public use conditions INRD was authorized to acquire these under 49 CFR 1152.28 must be filed by trackage rights over the Line by notice SURFACE TRANSPORTATION BOARD February 28, 2019, with the Surface of exemption served and published in [Docket No. AB 55 (Sub-No. 787X)] Transportation Board, 395 E Street SW, the Federal Register on December 22, Washington, DC 20423–0001. 2017 (82 FR 60,788). The trackage rights CSX Transportation, Inc.— A copy of any petition filed with the permit INRD to handle loaded and Abandonment Exemption—in Bronx Board should be sent to CSXT’s empty unit coal trains between the County, N.Y. representative, Louis E. Gitomer, Law Oaktown Mine and the Kentucky Offices of Louis E. Gitomer, LLC, 600 Utilities Generating Station in CSX Transportation, Inc. (CSXT), has Baltimore Avenue, Suite 301, Towson, Harrodsburg, KY, in interline service filed a verified notice of exemption MD 21204. with other carriers. The rights were under 49 CFR pt. 1152 subpart F— If the verified notice contains false or scheduled to expire on December 31, Exempt Abandonments to abandon an misleading information, the exemption 2018.1 approximately 1.8-mile rail line on its is void ab initio. Under 49 CFR 1180.2(d)(8), the Port Morris Branch, Albany Division, CSXT has filed a combined parties may, prior to the expiration of between milepost QVP 0.0 and milepost environmental and historic report that the temporary trackage rights, file a QVP 1.8 in Bronx County, N.Y. (the addresses the effects, if any, of the request for a renewal of the temporary Line).1 The Line traverses U.S. Postal abandonment on the environment and rights for an additional period of up to Service Zip Codes 10456, 10455, and historic resources. OEA will issue an one year, including the reasons for the 10454. environmental assessment (EA) by extension. INRD states that CSXT has CSXT has certified that: (1) No local February 15, 2019. Interested persons agreed to extend the temporary trackage traffic has moved over the Line for at may obtain a copy of the EA by writing rights for an additional year. INRD states least two years; (2) any overhead traffic to OEA (Surface Transportation Board, that the reason for the extension is that on the Line can be rerouted over other Washington, DC 20423–0001) or by further short-term traffic movements to lines; (3) no formal complaint filed by calling OEA at (202) 245–0305. the Kentucky Utilities Generating a user of rail service on the Line (or by Assistance for the hearing impaired is Station appear probable and feasible. a state or local government entity acting available through the Federal INRD filed a draft copy of the on behalf of such user) regarding Information Relay Service at (800) 877– amendment to the temporary trackage cessation of service over the Line either 8339. Comments on environmental and rights agreement with its request for the is pending with the Surface historic preservation matters must be one-year extension, and states that it Transportation Board (Board) or any filed within 15 days after the EA will submit a finalized version within U.S. District Court or has been decided becomes available to the public. 10 days of execution. INRD also in favor of a complainant within the Environmental, historic preservation, acknowledges that any further extension two-year period; and (4) the public use, or trail use/rail banking of these rights, or a conversion of the requirements at 49 CFR 1105.12 conditions will be imposed, where rights from temporary to permanent, (newspaper publication), 49 CFR appropriate, in a subsequent decision. would require a separate notice of 1152.50(d)(1) (notice to governmental Pursuant to the provisions of 49 CFR exemption filing pursuant to 49 CFR agencies), and 49 CFR 1105.7 and 1152.29(e)(2), CSXT shall file a notice of 1180.4(g). 1105.8 (environment and historic In accordance with 49 CFR 2 The Board modified its OFA procedures report), have been met. 1180.2(d)(8), INRD’s temporary trackage effective July 29, 2017. Among other things, the As a condition to this exemption, any rights over the Line will be extended for OFA process now requires potential offerors, in employee adversely affected by the their formal expression of intent, to make a one year and will expire on December abandonment shall be protected under preliminary financial responsibility showing based 31, 2019. The employee protective on a calculation using information contained in the Oregon Short Line Railroad— conditions imposed in the December 22, carrier’s filing and publicly available information. Abandonment Portion Goshen Branch 2017 notice remain in effect. Notice of See Offers of Financial Assistance, EP 729 (STB Between Firth & Ammon, in Bingham & served June 29, 2017); 82 FR 30,997 (July 5, 2017). the one-year extension will be 3 Bonneville Counties, Idaho, 360 I.C.C. The Board will grant a stay if an informed published in the Federal Register. 91 (1979). To address whether this decision on environmental issues (whether raised It is ordered: by a party or by the Board’s Office of Environmental 1. INRD’s temporary trackage rights condition adequately protects affected Analysis (OEA) in its independent investigation) over the Line are extended for one year employees, a petition for partial cannot be made before the exemption’s effective revocation under 49 U.S.C. 10502(d) date. See Exemption of Out-of-Serv. Rail Lines, 5 and will expire on December 31, 2019. I.C.C.2d 377 (1989). Any request for a stay should must be filed. be filed as soon as possible so that the Board may 1 Because of the partial shutdown of the Federal take appropriate action before the exemption’s government from December 22, 2018, through 1 Publication of this notice was delayed due to the effective date. January 25, 2019, INRD’s extension request could partial shutdown of the Federal government from 4 Each OFA must be accompanied by the filing not be addressed before the trackage rights were December 22, 2018, through January 25, 2019. See fee, which currently is set at $1,800. See 49 CFR scheduled to expire. 49 CFR 1152.50(d)(3). 1002.2(f)(25).
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consummation with the Board to signify revocation under 49 U.S.C. 10502(d) Pursuant to the provisions of 49 CFR that it has exercised the authority must be filed. 1152.29(e)(2), EIRR shall file a notice of granted and fully abandoned the Line. If Provided no formal expression of consummation with the Board to signify consummation has not been effected by intent to file an offer of financial that it has exercised the authority CSXT’s filing of a notice of assistance (OFA) has been received,2 granted and fully abandoned the Line. If consummation by February 8, 2020, and this exemption will be effective on consummation has not been effected by there are no legal or regulatory barriers March 12, 2019, unless stayed pending EIRR’s filing of a notice of to consummation, the authority to reconsideration. Petitions to stay that do consummation by February 8, 2020, and abandon will automatically expire. not involve environmental issues,3 there are no legal or regulatory barriers Board decisions and notices are formal expressions of intent to file an to consummation, the authority to available at www.stb.gov. OFA under 49 CFR 1152.27(c)(2),4 and abandon will automatically expire. Decided: February 5, 2019. interim trail use/rail banking requests Board decisions and notices are By the Board, Allison C. Davis, Acting under 49 CFR 1152.29 must be filed by available at www.stb.gov. Director, Office of Proceedings. February 15, 2019. Petitions to reopen Decided: February 5, 2019. Jeffrey Herzig, or requests for public use conditions By the Board, Allison C. Davis, Acting Clearance Clerk. under 49 CFR 1152.28 must be filed by Director, Office of Proceedings. February 28, 2019, with the Surface [FR Doc. 2019–01641 Filed 2–7–19; 8:45 am] Jeffrey Herzig, Transportation Board, 395 E Street SW, BILLING CODE 4915–01–P Washington, DC 20423–0001. Clearance Clerk. A copy of any petition filed with the [FR Doc. 2019–01633 Filed 2–7–19; 8:45 am] SURFACE TRANSPORTATION BOARD Board should be sent to EIRR’s BILLING CODE 4915–01–P representative, Karl Morell, Karl Morell [Docket No. AB 1252X] and Associates, 440 1st Street NW, Suite DEPARTMENT OF TRANSPORTATION Eastern Idaho Railroad, L.L.C.— 440, Washington, DC 20001. If the verified notice contains false or Abandonment Exemption—in Fremont Federal Highway Administration County, Idaho misleading information, the exemption is void ab initio. Notice of Final Federal Agency Actions Eastern Idaho Railroad, L.L.C. (EIRR) EIRR has filed a combined on Proposed Highway Project in has filed a verified notice of exemption environmental and historic report that Rhode Island under 49 CFR pt. 1152 subpart F— addresses the effects, if any, of the Exempt Abandonments to abandon a abandonment on the environment and AGENCY: Federal Highway five-mile rail line located between historic resources. OEA will issue an Administration (FHWA), Department of milepost 28.80 at Egin and milepost environmental assessment (EA) by Transportation (DOT). 33.80 at Parker, in Fremont County, February 15, 2019. Interested persons ACTION: Notice of limitation on claims Idaho (the Line).1 The Line traverses may obtain a copy of the EA by writing for judicial review of actions by FHWA. U.S. Postal Service ZIP Codes 83445 and to OEA, Surface Transportation Board, 83438. Washington, DC 20423–0001, or by SUMMARY: This notice announces actions EIRR has certified that: (1) No local calling OEA at (202) 245–0305. taken by the FHWA that are final freight traffic has moved over the Line Assistance for the hearing impaired is pursuant to the statute. The actions for at least two years; (2) the Line is available through the Federal relate to a proposed highway project, stub-ended and not capable of handling Information Relay Service at (800) 877– Toll Locations 3,4 & 6 through 13 in the overhead traffic; (3) no formal complaint 8339. Comments on environmental and Cities/Towns of Warwick, Providence, filed by a user of rail service on the Line historic preservation matters must be Pawtucket, Cranston, Johnston, (or a state or local government entity filed within 15 days after the EA Cumberland, East Providence, Lincoln acting on behalf of such user) regarding becomes available to the public. and North Smithfield in the State of cessation of service over the Line either Environmental, historic preservation, Rhode Island, FHWA Project Number is pending with the Surface public use, or trail use/rail banking T0LL002, Rhode Island Department of Transportation Board or any U.S. conditions will be imposed, where Transportation (RIDOT) Contract District Court or has been decided in appropriate, in a subsequent decision. Number 2017–OT–002. favor of a complainant within the two- DATES: By this notice, the FHWA is year period; and (4) the requirements at 2 The Board modified its OFA procedures advising the public of final agency 49 CFR 1105.7 and 1105.8 effective July 29, 2017. Among other things, the actions subject to 23 U.S.C. 139(1)(1). A (environmental and historic report), 49 OFA process now requires potential offerors, in claim seeking judicial review of the CFR 1105.12 (newspaper publication), their formal expression of intent, to make a preliminary financial responsibility showing based Federal agency actions on the highway and 49 CFR 1152.50(d)(1) (notice to on a calculation using information contained in the project will be barred unless the claim governmental agencies) have been met. carrier’s filing and publicly available information. is filed on or before July 8, 2019. If the As a condition to this exemption, any See Offers of Financial Assistance, EP 729 (STB Federal law that authorizes judicial employee adversely affected by the served June 29, 2017); 82 FR 30997 (July 5, 2017). review of a claim provides a time period abandonment shall be protected under 3 The Board will grant a stay if an informed decision on environmental issues (whether raised of less than 150 days for filing such Oregon Short Line Railroad— by a party or by the Board’s Office of Environmental claim, then that shorter time period still Abandonment—Goshen, 360 I.C.C. 91 Analysis (OEA) in its independent investigation) applies. cannot be made before the exemption’s effective (1979). To address whether this FOR FURTHER INFORMATION CONTACT: For condition adequately protects affected date. See Exemption of Out-of-Serv. Rail Lines, 5 I.C.C.2d 377 (1989). Any request for a stay should FHWA: Mr. Carlos E. Padilla-Fresse, employees, a petition for partial be filed as soon as possible so that the Board may MSCE, Program Delivery Supervisor, take appropriate action before the exemption’s Federal Highway Administration Rhode 1 Publication of this notice was delayed due to the effective date. partial shutdown of the Federal government from 4 Each OFA must be accompanied by the filing Island Division, 380 Westminster Mall, December 22, 2018, through January 25, 2019. See fee, which currently is set at $1,800. See 49 CFR Suite 601, Providence, Rhode Island 49 CFR 1152.50(d)(3). 1002.2(f)(25). 02903: telephone: (401) 528–4577;
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email: [email protected]. The such actions were taken, including but Issued on: December 20, 2018. FHWA Rhode Island Division Office’s not limited to: Carlos C. Machado, normal business hours are 8:00 a.m. to 1. General: National Environmental FHWA Rhode Island Division Administrator, 4:30 p.m. (Eastern Standard Time), Policy Act (NEPA) [42 U.S.C. 4321– Providence, Rhode Island. Monday through Friday, except Federal 4370h]; Federal-Aid Highway Act [Title [FR Doc. 2019–01062 Filed 2–7–19; 8:45 am] Holidays. For RIDOT: Mr. David Fish, 23] and associated regulations [CFR part BILLING CODE 4910–22–P P.E., Administrator of Project 23]. Management, Rhode Island Department of Transportation, Two Capitol Hill, 2. Hazardous Materials: DEPARTMENT OF TRANSPORTATION Providence, Rhode Island 02903–1124, Comprehensive Environmental telephone: (401) 222–2023, email: Response, Compensation, and Liability Federal Highway Administration [email protected]. RIDOT normal Act [42 U.S.C. 9601–9675]; Superfund Notice of Final Federal Agency Actions business hours are 8:00 a.m. to 4:30 p.m. Amendments and Reauthorization Act on Proposed Highway in Utah (Eastern Standard Time), Monday of 1986 [P.L. 99–499]; Resource Conservation and Recovery Act [42 through Friday, except Federal AGENCY: Utah Department of Holidays. U.S.C. 6901–6992(k)]; Solid Waste Transportation (UDOT), Federal Disposal Act, as amended by the Highway Administration (FHWA), SUPPLEMENTARY INFORMATION: Notice is Resource Conservation and Recovery Department of Transportation. hereby given that the FHWA has taken Act of 1976 (42 U.S.C. 6901, et seq.). ACTION: Notice of limitation on claims final agency actions subject to 23 U.S.C. 3. Air: Clean Air Act, [42 U.S.C. 7401– for judicial review of actions taken by 139(1)(1) by issuing a Finding of No 7671(q)] (transportation conformity). UDOT on behalf of FHWA. Significant Impact (FONSI) for the 4. Noise: 23 U.S.C. 109(i) (P.L. 91– following highway project in the State SUMMARY: 605) (P.L. 93–87). This notice announces certain of Rhode Island: Toll Locations 3, 4 & actions taken by UDOT that are final 6 through 13 in the Cities/Towns of 5. Wildlife: Endangered Species Act Federal agency actions within the Warwick, Providence, Pawtucket, [16 U.S.C. 1531–1544]; Fish and meaning of 23 U.S.C. 139(l)(1). These Cranston, Johnston, Cumberland, East Wildlife Coordination Act [16 U.S.C. actions relate to a proposed highway Providence, Lincoln and North 661–667(e)]; Migratory Bird Treaty Act project on Interstate 15 (I–15) Smithfield. RIDOT proposes to [16 U.S.C. 703–712]. Plant Protection Northbound, from Bangerter Highway to construct and operate electronic toll Act [7 U.S.C. 7701 et seq.]. Interstate 215 (I–215), in the County of systems at ten locations along Interstates 6. Historic and Cultural Resources: Salt Lake, State of Utah. Those actions 95, 195 and 295, and Route 146 and US Section 106 of the National Historic grant licenses, permits and/or approvals Route 6 (Proposed Action). Revenue Preservation Act of 1966, [54 U.S.C. for the project. from Toll Locations 3, 4 & 6 through 13 306108]; Archeological Resources DATES: By this notice, the FHWA, on would be generated and used in Protection Act of 1977 [16 U.S.C. behalf of UDOT, is advising the public accordance with The Rhode Island 470(aa)–470(mm)]; Archeological and of final Federal agency actions subject to Bridge Replacement, Reconstruction Historic Preservation Act [16 U.S.C. 23 U.S.C. 139(l)(1). A claim seeking and Maintenance Fund Act of 2016. The 469–469 c–2]; Native American Grave judicial review of the Federal agency proposed toll systems would be used to Protection and Repatriation Act [25 actions on the highway project will be collect toll revenue from a tractor or U.S.C. 3001–3013]. barred unless the claim is filed on or truck tractor as defined in 23 CFR 658.5, 7. Land: Section 4(f) of The before July 8, 2019. If the Federal law pulling a trailer or trailers traveling that authorizes judicial review of a across select bridges associated with the Department of Transportation Act: [49 U.S.C. 303; 23 U.S.C. 138] Farmland claim provides a time period of less toll locations. Each toll system would be than 150 days for filing such claim, then comprised of one or more gantries with Protection Policy Act (FPPA) [7 U.S.C. 4201–4209]. that shorter time period still applies. communication and electrical FOR FURTHER INFORMATION CONTACT: 8. Wetlands and Water Resources: connections, a roadside cabinet on a Brandon Weston, Director of Clean Water Act [33 U.S.C 1251–1387 concrete pad, and additional safety Environmental Services, UDOT (Sections 319, 401, and 404)); Flood guardrail. Environmental Services, PO Box Disaster Protection Act (42 U.S.C.4012a The actions by the FHWA, and the 143600, Salt Lake City, UT 84114; 4106). laws under which such actions were telephone: (801) 965–4603; email: taken, are described in the 9. Executive Orders: E.O. 11990 [email protected]. UDOT’s Environmental Assessment (EA) for the Protection of Wetlands; E.O. 12898, normal business hours are 8:00 a.m. to project approved on November 8, 2018, Federal Actions to Address 5:00 p.m. (Mountain Standard Time), and a Finding of No Significant Impact Environmental Justice in Minority Monday through Friday, except State (FONSI) issued on December 14, 2018, Populations and Low Income and Federal holidays. and in other documents in the project Populations; E.O. 11988 Floodplain SUPPLEMENTARY INFORMATION: Effective records. The EA, FONSI, and other Management; E.O. 13175 Consultation January 17, 2017, FHWA assigned to project records are available by and Coordination with Indian Tribal UDOT certain responsibilities of FHWA contacting the FHWA or the Rhode Governments. for environmental review, consultation, Island Department of Transportation at (Catalog of Federal Domestic Assistance and other actions required by applicable the addresses provided above. The EA Program Number 20.205, Highway Planning Federal environmental laws and and FONSI can be viewed and and Construction. The regulations regulations for highway projects in downloaded from the project website at implementing Executive Order 12372 Utah, pursuant to 23 U.S.C. 327. Actions http://www.dot.ri.gov/rhodeworks/. regarding intergovernmental consultation on taken by UDOT on FHWA’s behalf This notice applies to all Federal Federal programs and activities apply to this pursuant to 23 U.S.C. 327 constitute agency decisions as of the issuance date program.) Federal agency actions for purposes of of this notice and all laws under which Authority: 23 U.S.C. 139(/)(1). Federal law. Notice is hereby given that
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UDOT has taken final agency actions U.S.C. 303; 23 U.S.C. 138; Paperwork Reduction Act of 1995. subject to 23 U.S.C. 139(l)(1) by issuing Landscaping and Scenic Currently the Bureau of the Fiscal licenses, permits, and approvals for the Enhancement (Wildflowers), 23 Service within the Department of the I–15 Northbound; Bangerter Highway to U.S.C. 319; Land and Water Treasury is soliciting comments I–215 project in the State of Utah. This Conservation Fund (LWCF) Act, 54 concerning Pools and Associations— project proposes to address current and U.S.C. 200302–200310 Annual Letter. future travel demand and improve 4. Wildlife: Endangered Species Act, 16 DATES: Written comments should be safety on northbound I–15 between U.S.C. 1531–1544 and Section 1536; received on or before April 9, 2019 to Bangerter Highway and I–215. Fish and Wildlife Coordination Act, be assured of consideration. 16 U.S.C. 661–667d; Migratory Bird Improvements include construction of ADDRESSES: Direct all written comments Treaty Act, 16 U.S.C. 703–712 two separate collector-distributor (C–D) and requests for additional information 5. Water: Section 404 of the Clean Water systems; each would consist of a three- to Bureau of the Fiscal Service, Bruce A. Act, 33 U.S.C. 1344; E.O. 11990, lane roadway that would be separated Sharp, Room #4006–A, P.O. Box 1328, Protection of Wetlands; Section 402 from mainline northbound I–15 by a Parkersburg, WV 26106–1328, or of the Clean Water Act, 33 U.S.C. concrete traffic barrier. Northbound C– [email protected]. D System A would separate from I–15 1342 SUPPLEMENTARY INFORMATION: just prior to 9000 South and connect to 6. Historic and Cultural Resources: the I–215 east/westbound entrance Section 106 of the National Historic Title: Pools and Associations— ramps and the 7200 South exit ramp. Preservation Act of 1966, 16 U.S.C. Annual Letter. Northbound C–D System B would 470f; Archeological Resources OMB Number: 1530–0007. Abstract: The information is collected separate from I–15 at Bangerter Highway Protection Act of 1977, 16 U.S.C. for the determinations of an acceptable and would rejoin I–15 at 9000 South. C– 470aa–470mm; Archeological and percentage for each pool and association D System B would provide connections Historic Preservation Act, 16 U.S.C. to allow Treasury certified companies to the following locations: 12300 South, 469–469c credit on their Schedule F for 11400 South, 10600 South and 9000 7. Noise: Federal-Aid Highway Act of authorized ceded reinsurance in South. These improvements were 1970, Public Law 91–605, 84 Stat. determining the companies’ identified in the Environmental 1713 underwriting limitations. Assessment (EA) as Alternative 3. The 8. Executive Orders: E.O. 11593 Current Actions: Extension of a actions by UDOT, and the laws under Protection and Enhancement of currently approved collection. which such actions were taken, are Cultural Resources; E.O. 13287 Type of Review: Regular. described in the EA and UDOT Finding Preserve America; E.O. 12898, Affected Public: Business or other for- of No Significant Impact (FONSI) for the Federal Actions to Address profit. project (Finding of No Significant Environmental Justice and Low- Estimated Number of Respondents: Impact, Environmental Assessment and Income Populations 84. Section 4(f) Evaluation, 1–15 (Catalog of Federal Domestic Assistance Estimated Time per Respondent: 1 Northbound; Bangerter Highway to I– Program Number 20.205, Highway Planning hour 30 minutes. 215 in Salt Lake County, Utah, Project and Construction. The regulations Estimated Total Annual Burden No. S–I15–7(341)295), issued on implementing Executive Order 12372 regarding intergovernmental consultation on Hours: 126. November 12, 2018, and in other Federal programs and activities apply to this Request for Comments: Comments documents in the UDOT project records. program.) submitted in response to this notice will The EA and FONSI, and other project be summarized and/or included in the records are available by contacting Authority: 23 U.S.C. 139(l)(1). request for OMB approval. All UDOT at the address provided above. Issued on: December 20, 2018. comments will become a matter of The EA and FONSI can also be viewed Ivan Marrero, public record. Comments are invited on: and downloaded from the project Division Administrator, Federal Highway 1. Whether the collection of information website at http://www.udot.utah.gov/ Administration, Salt Lake City, Utah. is necessary for the proper performance i15northbound/. [FR Doc. 2019–01169 Filed 2–7–19; 8:45 am] of the functions of the agency, including This notice applies to the EA, the BILLING CODE 4910–RY–P whether the information shall have FONSI, the Section 4(f) Determination, practical utility; 2. the accuracy of the the NHPA Section 106 Review, the agency’s estimate of the burden of the noise assessment, the Endangered DEPARTMENT OF THE TREASURY collection of information; 3. ways to Species Act and Migratory Bird Treaty enhance the quality, utility, and clarity Act determinations; and all other UDOT Bureau of the Fiscal Service of the information to be collected; 4. decisions and other actions with respect ways to minimize the burden of the to the project as of the issuance date of Proposed Collection of Information: collection of information on this notice and all laws under which Pools and Associations—Annual respondents, including through the use such actions were taken, including but Letter of automated collection techniques or not limited to the following laws ACTION: other forms of information technology; (including their implementing Notice and request for and 5. estimates of capital or start-up regulations): comments. costs and costs of operation, 1. General: National Environmental SUMMARY: The Department of the maintenance, and purchase of services Policy Act (NEPA),42 U.S.C. 4321– Treasury, as part of its continuing effort to provide information. 4351; Federal-Aid Highway Act, 23 to reduce paperwork and respondent U.S.C. 109 and 23 U.S.C. 128 burden, invites the general public and Dated: January 2, 2019. 2. Air: Clean Air Act, 42 U.S.C. 7401– other Federal agencies to take this Bruce A. Sharp, 7671q opportunity to comment on proposed Bureau Clearance Officer. 3. Land: Section 4(f) of the Department and/or continuing information [FR Doc. 2019–01697 Filed 2–7–19; 8:45 am] of Transportation Act of 1966, 49 collections, as required by the BILLING CODE 4810–AS–P
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DEPARTMENT OF THE TREASURY 1, 2018, ‘‘Blocking Property of the Government of Venezuela or Additional Persons Contributing to the projects or programs administered by Office of Foreign Assets Control Situation in Venezuela’’ (E.O. 13850), the Government of Venezuela, or for for being responsible for or complicit in, being an immediate adult family Notice of OFAC Sanctions Actions or having directly or indirectly engaged member of such a person. AGENCY: Office of Foreign Assets in, any transaction or series of 4. PERDOMO ROSALES, Gustavo Control, Treasury. transactions involving deceptive Adolfo (a.k.a. PERDOMO ROSALES, practices or corruption and the Gustavo A; a.k.a. PERDOMO, Gustavo; ACTION: Notice. Government of Venezuela or projects or a.k.a. PERDOMO, Gustavo A; a.k.a. SUMMARY: The Department of the programs administered by the PERDOMO, Gustavo Adolfo; a.k.a. Treasury’s Office of Foreign Assets Government of Venezuela, or for being PERDOMO–ROSALES, Gustavo), 4100 Control (OFAC) is publishing the names an immediate adult family member of Salzedo St., Unit 804, Coral Gables, FL of one or more persons and one aircraft such a person. 33146, United States; 18555 Collins that have been placed on OFAC’s 2. GORRIN BELISARIO, Raul (a.k.a. Avenue, Unit 4405, Sunny Isles, FL Specially Designated Nationals and GORRIN BELISARIO, Raul Antonio; 33160, United States; DOB 05 Feb 1979; Blocked Persons List based on OFAC’s a.k.a. GORRIN BELISARIO, Raul citizen Venezuela; Gender Male; Cedula determination that one or more Antonio De La Santisima Trinidad; No. 14585388 (Venezuela); Passport applicable legal criteria were satisfied. a.k.a. GORRIN, Raul; a.k.a. GORRIN, 083119116 (Venezuela) expires 28 Jan All property and interests in property Raul A; a.k.a. GORRIN, Raul Antonio; 2019; alt. Passport 023639834 subject to U.S. jurisdiction of these a.k.a. GORRIN–BELISARIO, Raul (Venezuela) expires 13 Jun 2014 persons are blocked, and U.S. persons Antonio De La Santisima), 4100 Salzedo (individual) [VENEZUELA–EO13850]. Designated pursuant to section 1(a)(ii) are generally prohibited from engaging Street, Apt. 1010, Miami, FL 33146, of E.O. 13850 for being responsible for in transactions with them. United States; 4100 Salzedo St., Unit 804, Coral Gables, FL 33146, United or complicit in, or having directly or DATES: See SUPPLEMENTARY INFORMATION States; 144 Isla Dorada Blvd., Coral indirectly engaged in, any transaction or section for applicable date(s). Gables, FL 33143, United States; DOB series of transactions involving FOR FURTHER INFORMATION CONTACT: 22 Nov 1968; citizen Venezuela; Gender deceptive practices or corruption and OFAC: Associate Director for Global Male; Cedula No. 8682996 (Venezuela); the Government of Venezuela or Targeting, tel.: 202–622–2420; Assistant Passport 129603081 (Venezuela) expires projects or programs administered by Director for Sanctions Compliance & 14 Oct 2020; alt. Passport 066936455 the Government of Venezuela, or for Evaluation, tel.: 202–622–2490; (Venezuela) expires 10 Jan 2018; alt. being an immediate adult family Assistant Director for Licensing, tel.: Passport 007931220 (Venezuela) expires member of such a person. 202–622–2480; Assistant Director for 24 Jan 2013 (individual) [VENEZUELA– 5. TARASCIO–PEREZ, Mayela Regulatory Affairs, tel.: 202–622–4855; EO13850]. Antonina (a.k.a. DE PERDOMO, Mayela or the Department of the Treasury’s Designated pursuant to section 1(a)(ii) T; a.k.a. DE PERDOMO, Mayela Office of the General Counsel: Office of of E.O. 13850 for being responsible for Tarascio; a.k.a. TARASCIO DE the Chief Counsel (Foreign Assets or complicit in, or having directly or PERDOMO, Mayela A; a.k.a. TARASCIO Control), tel.: 202–622–2410. indirectly engaged in, any transaction or DE PERDOMO, Mayela Antonina; a.k.a. SUPPLEMENTARY INFORMATION: series of transactions involving TARASCIO, Mayela; a.k.a. TARASCIO– deceptive practices or corruption and PEREZ, Mayela), 4100 Salzedo St., Unit Electronic Availability the Government of Venezuela or 804, Coral Gables, FL 33146, United The Specially Designated Nationals projects or programs administered by States; DOB 20 Feb 1985; citizen and Blocked Persons List and additional the Government of Venezuela, or for Venezuela; Gender Female; Passport information concerning OFAC sanctions being an immediate adult family 083111668 (Venezuela) expires 28 Jan programs are available on OFAC’s member of such a person. 2019; alt. Passport 023639818 website (https://www.treasury.gov/ofac). 3. PERDOMO ROSALES, Maria (Venezuela) expires 13 Jun 2014; alt. Alexandra (a.k.a. DE PERDOMO, Maria Passport C1453352 (Venezuela) expires Notice of OFAC Action(s) A; a.k.a. DE PERDOMO, Maria 02 Nov 2009 (individual) On January 8, 2019, OFAC Alejandra; a.k.a. PERDOMO, Maria [VENEZUELA–EO13850] (Linked To: determined that the property and Alexandra; a.k.a. PERDOMO–ROSALES, PERDOMO ROSALES, Gustavo Adolfo). interests in property subject to U.S. Maria), 144 Isla Dorada Blvd., Coral Designated pursuant to section 1(a)(ii) jurisdiction of the following persons, Gables, FL 33146, United States; 4100 of E.O. 13850 for being responsible for and the following aircraft subject to U.S. Salzedo Street, Apt 1010, Miami, FL or complicit in, or having directly or jurisdiction, are blocked under the 33146, United States; DOB 25 Mar 1972; indirectly engaged in, any transaction or relevant sanctions authorities listed citizen Venezuela; Gender Female; series of transactions involving below. Cedula No. 10538067 (Venezuela); deceptive practices or corruption and Passport 135278046 (Venezuela) expires the Government of Venezuela or Individuals 14 Oct 2020; alt. Passport 079280833 projects or programs administered by 1. DIAZ GUILLEN, Claudia Patricia (Venezuela) expires 22 Oct 2018; alt. the Government of Venezuela, or for (a.k.a. DIAZ, Claudia; a.k.a. DIAZ– Passport 018516885 (Venezuela) expires being an immediate adult family GUILLEN, Claudia), Cap Cana, 04 Dec 2013 (individual) member of such a person. Dominican Republic; Spain; DOB 25 [VENEZUELA–EO13850] (Linked To: 6. VELASQUEZ FIGUEROA, Adrian Nov 1973; citizen Venezuela; Gender GORRIN BELISARIO, Raul). Jose (a.k.a. VELASQUEZ, Adrian), Cap Female; Cedula No. 11502896 Designated pursuant to section 1(a)(ii) Cana, Dominican Republic; Spain; DOB (Venezuela); Passport 030415788 of E.O. 13850 for being responsible for 02 Nov 1979; citizen Venezuela; Gender (Venezuela) expires 22 Nov 2014 or complicit in, or having directly or Male; Cedula No. 13813453 (Venezuela); (individual) [VENEZUELA–EO13850]. indirectly engaged in, any transaction or Passport 024421568 (Venezuela) expires Designated pursuant to section 1(a)(ii) series of transactions involving 25 Jun 2014 (individual) [VENEZUELA– of Executive Order 13850 of November deceptive practices or corruption and EO13850].
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Designated pursuant to section 1(a)(ii) 3. CORPOMEDIOS GV [VENEZUELA–EO13850] (Linked To: of E.O. 13850 for being responsible for INVERSIONES, C.A., Calle Alameda PERDOMO ROSALES, Gustavo Adolfo). or complicit in, or having directly or Quinta Globovision Pb, Libertador, Designated pursuant to section indirectly engaged in, any transaction or Caracas, Venezuela [VENEZUELA– 1(a)(iv) of E.O. 13850 for being owned series of transactions involving EO13850] (Linked To: GORRIN or controlled by, or having acted or deceptive practices or corruption and BELISARIO, Raul; Linked To: purported to act for or on behalf of, the Government of Venezuela or PERDOMO ROSALES, Gustavo Adolfo). directly or indirectly, PERDOMO projects or programs administered by Designated pursuant to section ROSALES, Gustavo Adolfo, a person the Government of Venezuela, or for 1(a)(iv) of E.O. 13850 for being owned whose property and interests in being an immediate adult family or controlled by, or having acted or property are blocked pursuant to E.O. member of such a person. purported to act for or on behalf of, 13850. 7. GONZALEZ DELLAN, Leonardo directly or indirectly, GORRIN 8. MAGUS HOLDING LLC, 4100 (a.k.a. GONZALEZ, Leonardo), London, BELISARIO, Raul, and PERDOMO Salzedo St., Unit 804, Coral Gables, FL United Kingdom; DOB 11 Sep 1966; ROSALES, Gustavo Adolfo, persons 33146, United States [VENEZUELA– citizen Venezuela; Gender Male; Cedula whose property and interests in EO13850] (Linked To: PERDOMO No. 8639102 (Venezuela); Passport property are blocked pursuant to E.O. ROSALES, Gustavo Adolfo). 073785390 (Venezuela) expires 01 Jul 13850. Designated pursuant to section 2018; alt. Passport 046041771 4. CORPOMEDIOS LLC, 4100 Salzedo 1(a)(iv) of E.O. 13850 for being owned (Venezuela) expires 24 May 2016; alt. Street, Unit 804, Coral Gables, FL 33146, or controlled by, or having acted or Passport 002272834 (Venezuela) expires United States [VENEZUELA–EO13850] purported to act for or on behalf of, 14 Aug 2012 (individual) (Linked To: GORRIN BELISARIO, Raul; directly or indirectly, PERDOMO [VENEZUELA–EO13850]. Linked To: PERDOMO ROSALES, ROSALES, Gustavo Adolfo, a person Designated pursuant to section 1(a)(ii) Gustavo Adolfo). whose property and interests in of E.O. 13850 for being responsible for Designated pursuant to section property are blocked pursuant to E.O. or complicit in, or having directly or 1(a)(iv) of E.O. 13850 for being owned 13850. indirectly engaged in, any transaction or or controlled by, or having acted or 9. MAGUS HOLDINGS USA, CORP., series of transactions involving purported to act for or on behalf of, 4100 Salzedo St., Unit 804, Coral deceptive practices or corruption and directly or indirectly, GORRIN Gables, FL 33146, United States the Government of Venezuela or BELISARIO, Raul, and PERDOMO [VENEZUELA–EO13850] (Linked To: projects or programs administered by ROSALES, Gustavo Adolfo, persons PERDOMO ROSALES, Gustavo Adolfo; the Government of Venezuela, or for whose property and interests in Linked To: TARASCIO–PEREZ, Mayela being an immediate adult family property are blocked pursuant to E.O. Antonina). member of such a person. 13850. Designated pursuant to section 5. GLOBOVISION TELE C.A. (a.k.a. 1(a)(iv) of E.O. 13850 for being owned Entities GLOBOVISION), Caracas, Venezuela or controlled by, or having acted or 1. CONSTELLO INC., Saint Kitts and [VENEZUELA–EO13850] (Linked To: purported to act for or on behalf of, Nevis [VENEZUELA–EO13850] (Linked GORRIN BELISARIO, Raul; Linked To: directly or indirectly, PERDOMO To: TARASCIO–PEREZ, Mayela PERDOMO ROSALES, Gustavo Adolfo). ROSALES, Gustavo Adolfo, and Antonina; Linked To: PERDOMO Designated pursuant to section TARASCIO–PEREZ, Mayela Antonina, ROSALES, Gustavo Adolfo). 1(a)(iv) of E.O. 13850 for being owned persons whose property and interests in Designated pursuant to section or controlled by, or having acted or property are blocked pursuant to E.O. 1(a)(iv) of E.O. 13850 for being owned purported to act for or on behalf of, 13850. or controlled by, or having acted or directly or indirectly, GORRIN 10. PLANET 2 REACHING, INC., DE, purported to act for or on behalf of, BELISARIO, Raul, and PERDOMO United States; 7043 Fisher Dr., Unit directly or indirectly, TARASCIO– ROSALES, Gustavo Adolfo, persons 7043, Miami Beach, FL 33109–0064, PEREZ, Mayela Antonina and whose property and interests in United States [VENEZUELA–EO13850] PERDOMO ROSALES, Gustavo Adolfo, property are blocked pursuant to E.O. (Linked To: GORRIN BELISARIO, Raul). persons whose property and interests in 13850. Designated pursuant to section property are blocked pursuant to E.O. 6. GLOBOVISION TELE CA, CORP., 1(a)(iv) of E.O. 13850 for being owned 13850. 4100 Salzedo Street, Unit 804, Coral or controlled by, or having acted or 2. CONSTELLO NO. 1 Gables, FL 33146, United States purported to act for or on behalf of, CORPORATION, 4100 Salzedo Street, [VENEZUELA–EO13850] (Linked To: directly or indirectly, GORRIN Unit 804, Coral Gables, FL 33146, GORRIN BELISARIO, Raul; Linked To: BELISARIO, Raul, a person whose United States; DE, United States PERDOMO ROSALES, Gustavo Adolfo). property and interests in property are [VENEZUELA–EO13850] (Linked To: Designated pursuant to section blocked pursuant to E.O. 13850. TARASCIO–PEREZ, Mayela Antonina; 1(a)(iv) of E.O. 13850 for being owned 11. POSH 8 DYNAMIC, INC., 18555 Linked To: PERDOMO ROSALES, or controlled by, or having acted or Collins Avenue, Unit 4401, Sunny Isles, Gustavo Adolfo). purported to act for or on behalf of, FL 33160, United States; DE, United Designated pursuant to section directly or indirectly, GORRIN States [VENEZUELA–EO13850] (Linked 1(a)(iv) of E.O. 13850 for being owned BELISARIO, Raul, and PERDOMO To: GORRIN BELISARIO, Raul). or controlled by, or having acted or ROSALES, Gustavo Adolfo, persons Designated pursuant to section purported to act for or on behalf of, whose property and interests in 1(a)(iv) of E.O. 13850 for being owned directly or indirectly, TARASCIO– property are blocked pursuant to E.O. or controlled by, or having acted or PEREZ, Mayela Antonina and 13850. purported to act for or on behalf of, PERDOMO ROSALES, Gustavo Adolfo, 7. MAGUS HOLDING II, CORP., 4100 directly or indirectly, GORRIN persons whose property and interests in Salzedo St., Unit 804, Coral Gables, FL BELISARIO, Raul, a person whose property are blocked pursuant to E.O. 33146, United States; 140 Paloma Drive, property and interests in property are 13850. Coral Gables, FL 33143, United States blocked pursuant to E.O. 13850.
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12. POTRICO CORP., DE, United property are blocked pursuant to E.O. Designated pursuant to section States [VENEZUELA–EO13850] (Linked 13850. 1(a)(iv) of E.O. 13850 for being owned To: PERDOMO ROSALES, Gustavo 16. RIM GROUP INVESTMENTS, or controlled by, or having acted or Adolfo). CORP., 4100 Salzedo Street, Apt 1010, purported to act for or on behalf of, Designated pursuant to section Coral Gables, FL 33146, United States directly or indirectly, PERDOMO 1(a)(iv) of E.O. 13850 for being owned [VENEZUELA–EO13850] (Linked To: ROSALES, Gustavo Adolfo, a person or controlled by, or having acted or GORRIN BELISARIO, Raul; Linked To: whose property and interests in purported to act for or on behalf of, PERDOMO ROSALES, Maria property are blocked pursuant to E.O. directly or indirectly, PERDOMO Alexandra). 13850. ROSALES, Gustavo Adolfo, a person Designated pursuant to section 21. TINDAYA PROPERTIES OF NEW whose property and interests in 1(a)(iv) of E.O. 13850 for being owned YORK CORP., 155 SW 25th Road, property are blocked pursuant to E.O. or controlled by, or having acted or Miami, FL 33129, United States; 330 13850. purported to act for or on behalf of, East 57th Street, Unit 12, New York, NY 13. RIM GROUP INVESTMENTS I directly or indirectly, GORRIN 10022, United States [VENEZUELA– CORP., 4100 Salzedo Street, Apt 1010, BELISARIO, Raul, and PERDOMO EO13850] (Linked To: PERDOMO Miami, FL 33146, United States; 4100 ROSALES, Maria Alexandra, persons ROSALES, Gustavo Adolfo). Salzedo Street, Unit 608, Coral Gables, whose property and interests in Designated pursuant to section FL 33146, United States; 4100 Salzedo property are blocked pursuant to E.O. 1(a)(iv) of E.O. 13850 for being owned Street, Unit 807, Coral Gables, FL 33146, 13850. or controlled by, or having acted or United States [VENEZUELA–EO13850] 17. RIM GROUP PROPERTIES OF purported to act for or on behalf of, (Linked To: GORRIN BELISARIO, Raul; NEW YORK II CORP., 675 Third directly or indirectly, PERDOMO Linked To: PERDOMO ROSALES, Maria Avenue, 29th FL., New York, NY 10017, ROSALES, Gustavo Adolfo, a person Alexandra). United States; 20 West 53rd Street, Unit whose property and interests in Designated pursuant to section 47A, New York, NY 10019, United property are blocked pursuant to E.O. 1(a)(iv) of E.O. 13850 for being owned States; 60 Riverside Boulevard, PH 13850. or controlled by, or having acted or 3602, New York, NY 10069, United 22. TINDAYA PROPERTIES OF NEW purported to act for or on behalf of, States [VENEZUELA–EO13850] (Linked YORK II CORP., 675 Third Avenue, 29th directly or indirectly, GORRIN Floor, New York, NY 10017, United BELISARIO, Raul, and PERDOMO To: GORRIN BELISARIO, Raul). Designated pursuant to section States [VENEZUELA–EO13850] (Linked ROSALES, Maria Alexandra, persons To: PERDOMO ROSALES, Gustavo whose property and interests in 1(a)(iv) of E.O. 13850 for being owned or controlled by, or having acted or Adolfo). property are blocked pursuant to E.O. Designated pursuant to section purported to act for or on behalf of, 13850. 1(a)(iv) of E.O. 13850 for being owned directly or indirectly, GORRIN 14. RIM GROUP INVESTMENTS II or controlled by, or having acted or BELISARIO, Raul, a person whose CORP., 4100 Salzedo Street, Apt 1010, purported to act for or on behalf of, property and interests in property are Miami, FL 33146, United States; 4100 directly or indirectly, PERDOMO blocked pursuant to E.O. 13850. Salzedo Street, Unit 813, Coral Gables, ROSALES, Gustavo Adolfo, a person 18. RIM GROUP PROPERTIES OF FL 33146, United States; 4100 Salzedo whose property and interests in NEW YORK, CORP., 4100 Salzedo St., Street, Unit 913, Coral Gables, FL 33146, property are blocked pursuant to E.O. Unit 1010, Coral Gables, FL 33146, United States [VENEZUELA–EO13850] 13850. (Linked To: GORRIN BELISARIO, Raul; United States [VENEZUELA–EO13850] 23. WINDHAM COMMERCIAL Linked To: PERDOMO ROSALES, Maria (Linked To: GORRIN BELISARIO, Raul). GROUP INC., Panama [VENEZUELA– Alexandra). Designated pursuant to section EO13850] (Linked To: GORRIN Designated pursuant to section 1(a)(iv) of E.O. 13850 for being owned BELISARIO, Raul; Linked To: 1(a)(iv) of E.O. 13850 for being owned or controlled by, or having acted or PERDOMO ROSALES, Gustavo Adolfo). or controlled by, or having acted or purported to act for or on behalf of, Designated pursuant to section purported to act for or on behalf of, directly or indirectly, GORRIN 1(a)(iv) of E.O. 13850 for being owned directly or indirectly, GORRIN BELISARIO, Raul, a person whose or controlled by, or having acted or BELISARIO, Raul, and PERDOMO property and interests in property are purported to act for or on behalf of, ROSALES, Maria Alexandra, persons blocked pursuant to E.O. 13850. directly or indirectly, GORRIN whose property and interests in 19. SEGUROS LA VITALICIA C.A. BELISARIO, Raul, and PERDOMO property are blocked pursuant to E.O. (a.k.a. LA VITALICIA), Caracas, ROSALES, Gustavo Adolfo, persons 13850. Venezuela; National ID No. J310205361 whose property and interests in 15. RIM GROUP INVESTMENTS III (Venezuela) [VENEZUELA–EO13850] property are blocked pursuant to E.O. CORP., 4100 Salzedo Street, Apt 1010, (Linked To: GORRIN BELISARIO, Raul). 13850. Miami, FL 33146, United States; 144 Isla Designated pursuant to section Dorada Blvd., Coral Gables, FL 33143, 1(a)(iv) of E.O. 13850 for being owned Aircraft United States [VENEZUELA–EO13850] or controlled by, or having acted or 1. N133JA; Aircraft Model Mystere (Linked To: GORRIN BELISARIO, Raul; purported to act for or on behalf of, Falcon 50EX; Aircraft Manufacturer’s Linked To: PERDOMO ROSALES, Maria directly or indirectly, GORRIN Serial Number (MSN) 268; Aircraft Tail Alexandra). BELISARIO, Raul, a person whose Number N133JA (aircraft) Designated pursuant to section property and interests in property are [VENEZUELA–EO13850] (Linked To: 1(a)(iv) of E.O. 13850 for being owned blocked pursuant to E.O. 13850. PERDOMO ROSALES, Gustavo Adolfo). or controlled by, or having acted or 20. TINDAYA PROPERTIES Identified pursuant to E.O. 13850 as purported to act for or on behalf of, HOLDING USA CORP., 675 Third property in which PERDOMO directly or indirectly, GORRIN Avenue, 29th Floor, New York, NY ROSALES, Gustavo Adolfo, a person BELISARIO, Raul, and PERDOMO 10017, United States [VENEZUELA– whose property and interested in ROSALES, Maria Alexandra, persons EO13850] (Linked To: PERDOMO property are blocked pursuant to E.O. whose property and interests in ROSALES, Gustavo Adolfo). 13850, has an interest.
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Dated: January 8, 2019. Paperwork Reduction Act (PRA) of Questionnaire is used to confirm the Andrea Gacki, 1995, Federal agencies are required to marital status of a surviving spouse in Director, Office of Foreign Assets Control. publish notice in the Federal Register receipt of Dependency and Indemnity [FR Doc. 2019–01643 Filed 2–7–19; 8:45 am] concerning each proposed collection of Compensation (DIC) benefits. If a BILLING CODE 4810–AL–P information, including each proposed surviving spouse remarries, he or she is extension of a currently approved no longer entitled to DIC unless the collection, and allow 60 days for public marriage began after age 57 or has been DEPARTMENT OF THE TREASURY comment in response to the notice. terminated. Information is requested by DATES: Written comments and this form under the authority of 38 United States Mint recommendations on the proposed U.S.C. 101(3) and 38 U.S.C. 103. collection of information should be VA Form 21P–0537 is used by VBA to Establish Pricing and Pricing Changes received on or before April 9, 2019. verify a surviving spouse’s current for 2019 United States Mint ADDRESSES: Submit written comments marital status to determine his or her Numismatic Products on the collection of information through continuing entitlement to DIC benefits. AGENCY: United States Mint, Department Federal Docket Management System The form letter is automatically of the Treasury. (FDMS) at www.Regulations.gov or to generated and mailed to DIC beneficiaries. Agency action depends on ACTION: Notice. Nancy Kessinger, Veterans Benefits Administration, Department of Veterans the information provided by the beneficiary. If the information provided FOR FURTHER INFORMATION CONTACT: Affairs, 810 Vermont Avenue NW, supports the beneficiary’s continued Katrina McDow, Marketing Specialist, Washington, DC 20420 or email to entitlement to benefits, no action is Numismatic and Bullion Directorate; [email protected]. Please refer to taken. If the information provided by United States Mint; 801 9th Street NW, ‘‘OMB Control No. 2900–0495’’ in any the beneficiary does not support Washington, DC 20220; or call 202–354– correspondence. During the comment continued entitlement to benefits, VA 8495. period, comments may be viewed online through FDMS. will act to terminate benefit payments, SUPPLEMENTARY INFORMATION: The based on the facts found. United States Mint is announcing FOR FURTHER INFORMATION CONTACT: Danny S. Green, (202) 421–1354. Affected Public: Individuals and pricing changes and new pricing for households. SUPPLEMENTARY INFORMATION: Under the some 2019 United States Mint Estimated Annual Burden: 1,484 PRA of 1995, Federal agencies must Numismatic Products. Please see the hours. obtain approval from the Office of table below: Estimated Average Burden per Management and Budget (OMB) for each Respondent: 5 minutes. 2019 collection of information they conduct Product retail Frequency of Response: Once. or sponsor. This request for comment is price Estimated Number of Respondents: being made pursuant to Section 17,808. United States Mint America the Beautiful 3506(c)(2)(A) of the PRA. Quarters Silver Proof SetTM ...... $36.95 With respect to the following By direction of the Secretary. United States Mint Silver Proof Set® ...... 54.95 United States Mint Limited Edition Silver collection of information, VBA invites Danny S. Green, Proof SetTM ...... 149.95 comments on: (1) Whether the proposed Acting Interim Clearance Officer, Office of United States Mint RocketshipTM ...... 9.95 collection of information is necessary Quality, Performance and Risk (QPR), for the proper performance of VBA’s Department of Veterans Affairs. Authority: 31 U.S.C. 5111, 5112, 5132, & functions, including whether the [FR Doc. 2019–01692 Filed 2–7–19; 8:45 am] 9701. information will have practical utility; BILLING CODE 8320–01–P Dated: February 4, 2019. (2) the accuracy of VBA’s estimate of the Mark Teskey, burden of the proposed collection of information; (3) ways to enhance the DEPARTMENT OF VETERANS Deputy Director, United States Mint. quality, utility, and clarity of the AFFAIRS [FR Doc. 2019–01636 Filed 2–7–19; 8:45 am] information to be collected; and (4) [OMB Control No. 2900–0009] BILLING CODE P ways to minimize the burden of the collection of information on Agency Information Collection respondents, including through the use Activity: (Application for Vocational DEPARTMENT OF VETERANS of automated collection techniques or Rehabilitation for Veterans With AFFAIRS the use of other forms of information Service-Connected Disabilities [OMB Control No. 2900–0495] technology. (Chapter 31, Title 38 U.S.C.) (VA Form Authority: 38 U.S.C. 101(3), 103. 28–1900)) Agency Information Collection Title: Marital Status Questionnaire, Activity: Marital Status Questionnaire VA Form 21P–0537. AGENCY: Veterans Benefits OMB Control Number: 2900–0495. Administration, Department of Veterans AGENCY: Veterans Benefits Type of Review: Extension without Affairs. Administration, Department of Veterans change of a currently approved ACTION: Notice. Affairs. collection. ACTION: Notice. Abstract: The Department of Veterans SUMMARY: The Veterans Benefits Affairs (VA), through its Veterans Administration (VBA), Department of SUMMARY: Veteran’s Benefits Benefits Administration (VBA), Veterans Affairs (VA), is announcing an Administration (VBA), Department of administers an integrated program of opportunity for public comment on the Veterans Affairs (VA), is announcing an benefits and services established by law proposed collection of certain opportunity for public comment on the for Veterans, service personnel, and information by the agency. Under the proposed collection of certain their dependents and/or beneficiaries. Paperwork Reduction Act (PRA) of information by the agency. Under the VA Form 21P–0537 Marital Status 1995, Federal agencies are required to
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publish notice in the Federal Register correspondence. During the comment Type of Review: Reinstatement With concerning each proposed collection of period, comments may be viewed online Change to a Previously Approved information, including each proposed through the FDMS. Collection. revision of a currently approved Abstract: VA Form 28–1900 is FOR FURTHER INFORMATION CONTACT: collection, and allow 60 days for public completed by Veterans with a combined comment in response to the notice. Danny S. Green at (202) 421–1354. service-connected disability rating of 10 VA Form 28–1900 is completed by SUPPLEMENTARY INFORMATION: Under the percent or more and Servicemembers Veterans with a combined service- PRA of 1995, Federal agencies must awaiting discharge for such disability to connected disability rating of 10 percent obtain approval from the Office of apply for vocational rehabilitation or more and Servicemembers awaiting Management and Budget (OMB) for each benefits. VA provides services and discharge for such disability to apply for collection of information they conduct assistance to Veterans with service- vocational rehabilitation benefits. VA or sponsor. This request for comment is connected disabilities, who are provides services and assistance to being made pursuant to Section determined entitled to such benefits, to Veterans with service-connected 3506(c)(2)(A) of the PRA. obtain and maintain suitable employment. Vocational rehabilitation disabilities, who are determined entitled With respect to the following also provides service to support to such benefits, to obtain and maintain collection of information, VBA invites veterans with service-connected suitable employment. Vocational comments on: (1) Whether the proposed disabilities to achieve maximum rehabilitation also provides service to collection of information is necessary support veterans with service-connected independence in their daily living for the proper performance of VBA’s disabilities to achieve maximum activities if employment is not functions, including whether the independence in their daily living reasonably feasible. VA use the information will have practical utility; activities if employment is not information collected to determine the (2) the accuracy of VBA’s estimate of the reasonably feasible. VA use the claimant’s eligibility for vocational burden of the proposed collection of information collected to determine the rehabilitation benefits. information; (3) ways to enhance the claimant’s eligibility for vocational Affected Public: Individuals or quality, utility, and clarity of the rehabilitation benefits. households. information to be collected; and (4) Estimated Annual Burden: 21,419 DATES: Written comments and ways to minimize the burden of the hours. recommendations on the proposed collection of information on Estimated Average Burden per collection of information should be respondents, including through the use Respondent: 10 minutes. received on or before March 11, 2019. of automated collection techniques or Frequency of Response: One time. ADDRESSES: Submit written comments the use of other forms of information Estimated Number of Respondents: on the collection of information through technology. 128,515. Federal Docket Management System Authority: Public Law 104–13; 44 By direction of the Secretary: (FDMS) at www.Regulations.gov or to U.S.C. 3501–3521. Nancy J. Kessinger, Veterans Benefits Danny S. Green, Administration (20M33), Department of Title: (Application for Vocational Interim VA Clearance Officer, Office of Veterans Affairs, 810 Vermont Avenue Rehabilitation for Veterans with Quality Performance and Risk (QPR), NW, Washington, DC 20420 or email to Service-connected Disabilities (Chapter Department of Veterans Affairs. [email protected]. Please refer to 31, Title 38 U.S.C.) (VA Form 28–1900)). [FR Doc. 2019–01687 Filed 2–7–19; 8:45 am] ‘‘OMB Control No. 2900–0009’’ in any OMB Control Number: 2900–0009. BILLING CODE 8320–01–P
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Part II
Department of The Treasury
Internal Revenue Service 26 CFR Part 1 Qualified Business Income Deduction; Final Rule and Proposed Rule
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DEPARTMENT OF THE TREASURY CC:PA:LPD:PR (REG–107892–18), Room estimates, taxpayers who are self- 5203, Internal Revenue Service, P.O. employed with multiple businesses are Internal Revenue Service Box 7604, Ben Franklin Station, estimated to have a monetization rate of Washington, DC 20044. Submissions $39 per hour. Passthroughs that issue 26 CFR Part 1 may be hand-delivered Monday through K–1s have a monetization rate of $53 Friday between the hours of 8 a.m. and per hour. (See ‘‘Taxpayer Compliance [TD 9847] 4 p.m. to CC:PA:LPD:PR (REG–107892– Costs for Corporations and Partnerships: RIN 1545–BO71 18), Courier’s Desk, Internal Revenue A New Look,’’ Contos, et al. IRS Service, 1111 Constitution Avenue NW, Research Bulletin (2012) p. 5 for a Qualified Business Income Deduction Washington, DC 20224. description of the model.) SUPPLEMENTARY INFORMATION: AGENCY: Internal Revenue Service (IRS), An agency may not conduct or Treasury. Paperwork Reduction Act sponsor, and a person is not required to respond to, a collection of information ACTION: Final regulations. The collection of information unless it displays a valid control contained in these regulations has been SUMMARY: number assigned by the Office of This document contains final revised and approved by the Office of Management and Budget. regulations concerning the deduction Management and Budget for review in for qualified business income under accordance with the Paperwork Books or records relating to a section 199A of the Internal Revenue Reduction Act of 1995 (44 U.S.C. 3507) collection of information must be Code (Code). The regulations will affect under control numbers 1545–0123, retained as long as their contents may individuals, partnerships, S 1545–0074, and 1545–0092. become material in the administration corporations, trusts, and estates engaged Regulations in §§ 1.199A–4 and of any internal revenue law. Generally, in domestic trades or businesses. The 1.199A–6 require the collection of tax returns and tax return information regulations also contain an anti- information. Section 1.199A–4 requires are confidential, as required by section avoidance rule under section 643 of the taxpayers and passthrough entities that 6103. Code to treat multiple trusts as a single choose to aggregate two or more trades Background trust in certain cases, which will affect or businesses to collect information. trusts, their grantors, and beneficiaries. Section 1.199A–6 requires passthrough This document contains amendments This document also requests additional entities to report section 199A to the Income Tax Regulations (26 CFR comments on certain aspects of the information to their owners or part 1) under sections 199A and 643(f) deduction. beneficiaries. Taxpayers need to report of the Code. On August 16, 2018, the DATES: the information to the IRS by attaching Department of the Treasury (Treasury Effective date: These regulations are the applicable statement to Form 1040 Department) and the IRS published a effective on February 8, 2019. Sections or to the Schedules K–1 for the Form notice of proposed rulemaking (REG– 1.199A–1 through 1.199A–6 are 1041, Form 1065, or Form 1120S, as 107892–18) in the Federal Register (83 generally applicable to taxable years appropriate, to ensure the correct FR 40884) containing proposed ending after February 8, 2019. However, amount of deduction is reported under regulations under sections 199A and taxpayers may rely on the rules set forth section 199A. The collection of 643(f) of the Code (proposed in §§ 1.199A–1 through 1.199A–6, in information is necessary to ensure tax regulations). The Summary of their entirety, or on the proposed compliance. Comments and Explanation of Revisions regulations under §§ 1.199A–1 through The likely respondents are summarizes the provisions of sections 1.199A–6 issued on August 16, 2018, in individuals with qualified business 199A and 643(f) and the provisions of their entirety, for taxable years ending income from more than one trade or the proposed regulations, which are in calendar year 2018. business as well as most partnerships, S explained in greater detail in the Applicability date: For dates of corporations, trusts, and estates that preamble to the proposed regulations. applicability, see §§ 1.199A–1(f), have qualified business income. More of the paperwork burden analysis details The Treasury Department and the IRS 1.199A–2(d), 1.199A–3(d), 1.199A–4(e), received written and electronic 1.199A–5(e), 1.199A–6(e), and 1.643(f)– are explained in the Special Analysis Section J, Anticipated impacts on comments responding to the proposed 1(b). regulations and held a public hearing on FOR FURTHER INFORMATION CONTACT: administrative and compliance costs. Estimated total annual reporting the proposed regulations on October 16, Vishal R. Amin or Frank J. Fisher at burden: 25 million hours. This estimate 2018. After full consideration of the (202) 317–6850 or Robert D. Alinsky, primarily reflects two effects of the comments received on the proposed Margaret Burow, or Wendy L. Kribell at regulations: A 0.7 million hour increase regulations and the testimony heard at (202) 317–5279. in reporting burden from compliance the public hearing, this Treasury ADDRESSES: Submit electronic with § 1.199A–4 and a 24.2 million hour decision adopts the proposed submissions to the Federal eRulemaking increase in reporting burden from regulations with modifications in Portal at www.regulations.gov (indicate compliance with § 1.199A–6. response to such comments and IRS and REG–107892–18) by following Estimated average annual burden testimony as described in the Summary the online instructions for submitting hours per respondent will vary from 30 of Comments and Explanation of comments. Once submitted to the minutes to 20 hours, depending on Revisions. Concurrently with the Federal eRulemaking Portal, comments individual circumstances, with an publication of these final regulations, cannot be edited or withdrawn. The estimated average of 2.5 hours. the Treasury Department and the IRS Department of the Treasury (Treasury Estimated number of respondents: 10 are publishing in the Proposed Rule Department) and the IRS will publish million. section of this edition of the Federal for public availability any comment Estimated annual frequency of Register (RIN 1545–BP12) a notice of received to its public docket, whether responses: Annually. proposed rulemaking providing submitted electronically or in hard Estimated monetized burden: Using additional proposed regulations under copy. Send hard copy submissions to the IRS’s taxpayer compliance cost section 199A (REG–134652–18).
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Summary of Comments and been added throughout the final qualified property). These statutory Explanation of Revisions regulations. limitations are subject to phase-in rules Part I of this section provides an based upon taxable income above the The Treasury Department and the IRS overview of the sections of the Code threshold amount. received approximately 335 comments addressed by these final regulations. Section 199A also allows individuals in response to the notice of proposed Part II of this section addresses the and some trusts and estates (but not rulemaking. All comments were operational rules, including definitions, corporations) a deduction of up to 20 considered and are available at computational rules, special rules, and percent of their combined qualified www.regulations.gov or upon request. reporting requirements. Part III of this REIT dividends and qualified PTP Most of the comments addressing the section addresses the determination of income, including qualified REIT proposed regulations are summarized in W–2 wages and unadjusted basis this Summary of Comments and immediately after acquisition (UBIA) of dividends and qualified PTP income Explanation of Revisions. However, qualified property. Part IV of this earned through passthrough entities. comments merely summarizing or section addresses the determination of This component of the section 199A interpreting the proposed regulations, qualified business income (QBI), deduction is not limited by W–2 wages recommending statutory revisions, or qualified real estate investment trust or UBIA of qualified property. addressing provisions outside the scope (REIT) dividends, and qualified publicly The section 199A deduction is the of these final regulations are not traded partnership (PTP) income. Part V lesser of (1) the sum of the combined discussed in this preamble. The of this section addresses the optional amounts described in the prior two Treasury Department and the IRS aggregation of trades or businesses. Part paragraphs or (2) an amount equal to 20 continue to study comments on issues VI of this section addresses specified percent of the excess (if any) of taxable related to section 199A that are beyond services trades or businesses (SSTBs) income of the taxpayer for the taxable the scope of these final regulations (or and the trade or business of being an year over the net capital gain of the the notice of proposed rulemaking on employee. Part VII of this section taxpayer for the taxable year. this subject in the Proposed Rules addresses the rules for relevant section of this issue of the Federal Additionally, section 199A(g), as passthrough entities (RPEs), PTPs, amended by the 2018 Act effective as of Register) and may discuss those beneficiaries, trusts, and estates. Part January 1, 2018, provides that specified comments that are beyond the scope of VIII of this section addresses the agricultural or horticultural the regulations if future guidance on treatment of multiple trusts. those issues is published. cooperatives may claim a special entity- I. Overview level deduction that is substantially As discussed in the preamble to the similar to the domestic production proposed regulations, the purpose and A. Section 199A activities deduction under former scope of the proposed regulations and As noted in the preamble to the section 199. The Treasury Department these final regulations are primarily proposed regulations, section 199A was limited to determining the amount of and the IRS intend to issue a future enacted on December 22, 2017, by notice of proposed rulemaking the deduction of up to 20 percent of section 11011 of ‘‘An Act to provide for income from a domestic business describing proposed rules for applying reconciliation pursuant to titles II and V section 199A to specified agricultural operated as a sole proprietorship or of the concurrent resolution on the through a partnership, S corporation (as and horticultural cooperatives and their budget for fiscal year 2018,’’ Public Law patrons. defined in section 1361(a)(1)), trust, or 115–97 (TCJA), and was amended on estate (section 199A deduction). The March 23, 2018, retroactively to January Finally, the statute expressly grants purpose and scope of the proposed 1, 2018, by section 101 of Division T of the Secretary authority to prescribe such regulations and these final regulations the Consolidated Appropriations Act, regulations as are necessary to carry out are also to determine when to treat two 2018, Public Law 115–141, (2018 Act). the purposes of section 199A (section or more trusts as a single trust for Section 199A applies to taxable years 199A(f)(4)), and provides specific grants purposes of subchapter J of chapter 1 of beginning after 2017 and before 2026. of authority with respect to: The subtitle A of the Code (subchapter J). Section 199A provides a deduction of treatment of acquisitions, dispositions, These final regulations are not intended up to 20 percent of income from a and short taxable years (section to address section 643 in general. domestic business operated as a sole 199A(b)(5)); certain payments to Commenters and others requested that proprietorship or through a partnership, partners for services rendered in a non- the proposed regulations be finalized as S corporation, trust, or estate. The partner capacity (section 199A(c)(4)(C)); quickly as possible to provide guidance section 199A deduction may be taken by the allocation of W–2 wages and UBIA to practitioners and taxpayers as they individuals and by some estates and of qualified property (section prepare returns and determine the trusts. A section 199A deduction is not 199A(f)(1)(A)(iii)); restricting the section 199A deduction for the first available for wage income or for allocation of items and wages under taxable year in which the deduction is business income earned through a C section 199A and such reporting allowed. Commenters also requested corporation (as defined in section requirements as the Secretary that the rules for section 199A be 1361(a)(2)). For taxpayers whose taxable determines appropriate (section simplified and clarified. Accordingly, income exceeds a statutorily-defined 199A(f)(4)(A)); the application of section these final regulations adopt many of amount (threshold amount), section 199A in the case of tiered entities the rules described in the proposed 199A may limit the taxpayer’s section (section 199A(f)(4)(B); preventing the regulations, with revisions in response 199A deduction based on (i) the type of manipulation of the depreciable period to the comments received and testimony trade or business engaged in by the of qualified property using transactions provided at the public hearing, as taxpayer, (ii) the amount of W–2 wages between related parties (section described in the remainder of this paid with respect to the trade or 199A(h)(1)); and determining the UBIA Summary of Comments and Explanation business (W–2 wages), and/or (iii) the of qualified property acquired in like- of Revisions. Additionally, clarifying UBIA of qualified property held for use kind exchanges or involuntary language and additional examples have in the trade or business (UBIA of conversions (section 199A(h)(2)).
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B. Section 643(f) The Treasury Department and the IRS taxpayers who will now benefit from the note that under section 1(h)(2), net section 199A deduction are already Part I of subchapter J provides rules capital gain is reduced by the amount familiar with the trade or business related to the taxation of estates, trusts, that the taxpayer takes into account as standard under section 162, using the and beneficiaries. For various subparts investment income under section section 162 standard appears to be the of part I of subchapter J, sections 643(a), 163(d)(4)(B)(iii). This reduction does not most practical for taxpayers and the IRS. 643(b), and 643(c) define the terms change the definition of net capital gain Therefore, after considering all relevant distributable net income (DNI), income, for purposes of section 1(h). Instead, it comments, the final regulations retain and beneficiary, respectively. Sections reduces the amount of gains that can be and slightly reword the proposed 643(d) through 643(i) (other than section taxed at the maximum capital gains regulation’s definition of trade or 643(f)) provide additional rules. Section rates as a tradeoff for allowing a business. Specifically, for purposes of 643(f) grants the Secretary authority to taxpayer to elect to deduct more section 199A and the regulations treat two or more trusts as a single trust investment interest under section thereunder, § 1.199A–1(b)(14) defines for purposes of subchapter J if (1) the 163(d). Consequently, capital gains and trade or business as a trade or business trusts have substantially the same qualified dividends treated as under section 162 (section 162 trade or grantors and substantially the same investment income are net capital gain business) other than the trade or primary beneficiaries and (2) a principal for purposes of determining the section business of performing services as an purpose of such trusts is the avoidance 199A deduction. employee. of the tax imposed by chapter 1 of the The Treasury Department and the IRS Code. Section 643(f) further provides 2. Relevant Passthrough Entity received a number of comments that, for these purposes, spouses are The proposed regulations define an requesting additional guidance with treated as a single person. RPE as a partnership (other than a PTP) respect to determining whether an activity rises to the level of a section 162 II. Operational Rules or an S corporation that is owned, directly or indirectly, by at least one trade or business, and therefore, will be A. Definitions individual, estate, or trust. A trust or considered to be a trade or business for purposes of determining the section 1. Net Capital Gain estate is treated as an RPE to the extent it passes through QBI, W–2 wages, UBIA 199A deduction. Commenters suggested Section 199A(a) provides, in relevant of qualified property, qualified REIT guidance in the form of a regulatory part, that the section 199A deduction is dividends, or qualified PTP income. In definition, a bright-line test, a factor- limited to the lesser of the taxpayer’s response to a comment, the final based test, or a safe harbor. Whether an combined QBI or 20 percent of the regulations provide that other activity rises to the level of a section 162 excess of a taxpayer’s taxable income passthrough entities, including common trade or business, however, is inherently over the taxpayer’s net capital gain (as trust funds as described in § 1.6032–T a factual question and specific guidance defined in section 1(h)) for the taxable and religious or apostolic organizations under section 162 is beyond the scope year. The proposed regulations do not described in section 501(d), are also of these regulations. Accordingly, the contain a specific definition of net treated as RPEs if the entity files a Form Treasury Department and the IRS have capital gain. The Treasury Department 1065, U.S. Return of Partnership concluded that the factual setting of and the IRS are aware that taxpayers Income, and is owned, directly or various trades or businesses varies so and practitioners have questioned how indirectly, by at least one individual, widely that a single rule or list of factors net capital gain is determined for estate, or trust. The Treasury would be difficult to provide in a timely purposes of section 199A. One Department and the IRS decline to and manageable manner and would be commenter suggested that net capital adopt the recommendation of another difficult for taxpayers to apply. In Higgins v. Commissioner, 312 U.S. gain, as used to calculate the section commenter to treat regulated investment 212 (1941), the Supreme Court noted 199A deduction, should be defined as companies (RICs) as RPEs because RICs that determining whether a trade or excluding qualified dividend income, are C corporations, not passthrough business exists is a factual which is taxed as capital gain. entities. determination. Specifically, the Court The final regulations provide a 3. Trade or Business stated that the determination of definition of net capital gain for a. In General ‘‘whether the activities of a taxpayer are purposes of section 199A. Section 1(h) ‘carrying on a business’ requires an establishes the maximum capital gains The calculation of QBI and therefore, examination of the facts in each case.’’ rates imposed on individuals, trusts, the benefits of section 199A, are limited 312 U.S. at 217. Because there is no and estates that have a net capital gain to taxpayers with income from a trade statutory or regulatory definition of a for the taxable year. Section 1222(11) or business. Section 199A and its section 162 trade or business, courts defines net capital gain as the excess of legislative history, however, do not have established elements to determine net long-term capital gain for the taxable define the phrase ‘‘trade or business.’’ the existence of a trade or business. The year over the net short-term capital loss The proposed regulations define trade courts have developed two definitional for such year. Section 1(h)(11) provides or business by reference to section 162. requirements. One, in relation to profit that for purposes of section 1(h), net Section 162(a) permits a deduction for motive, is said to require the taxpayer to capital gain means net capital gain all the ordinary and necessary expenses enter into and carry on the activity with (determined without regard to section paid or incurred in carrying on a trade a good faith intention to make a profit 1(h)(11)) increased by qualified or business. Multiple commenters or with the belief that a profit can be dividend income. Accordingly, agreed that section 162 is the most made from the activity. The second is in § 1.199A–1(b)(3) defines net capital gain appropriate standard for what relation to the scope of the activities and for purposes of section 199A as net constitutes a trade or business for is said to require considerable, regular, capital gain within the meaning of purposes of section 199A, but noted that and continuous activity. See generally section 1222(11) plus any qualified there are significant uncertainties in the Commissioner v. Groetzinger, 480 U.S. dividend income (as defined in section meaning of trade or business under 23 (1987). In the seminal case of 1(h)(11)(B)) for the taxable year. section 162. However, because many Groetzinger, the Supreme Court stated,
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‘‘[w]e do not overrule or cut back on the taxpayer materially participates in such significance of any ancillary services Court’s holding in Higgins when we activities. Section 1.469–5T(a) provides provided under the lease, and (v) the conclude that if one’s gambling activity seven tests to establish material terms of the lease (for example, a net is pursued full time, in good faith, and participation, but as noted above, these lease versus a traditional lease and a with regularity, to the production of tests only determine whether an short-term lease versus a long-term income for a livelihood, and is not a individual materially participates in a lease). mere hobby, it is a trade or business rental real estate activity. They cannot Providing bright line rules on whether within the statutes with which we are be used to determine whether the a rental real estate activity is a section here concerned.’’ Id. at 35. activity itself is a trade or business. 162 trade or business for purposes of A few commenters suggested adopting Unlike section 469, whether a taxpayer section 199A is beyond the scope of the definitions or rules regarding a trade is entitled to a section 199A deduction these regulations. Additionally, the or business found in other provisions of is not determined based on the Treasury Department and the IRS the Code, including sections 469 and taxpayer’s level of participation in a decline to adopt a position deeming all 1411. Section 469(c)(6) and § 1.469– trade or business, nor does it require rental real estate activity to be a trade or 4(b)(1) broadly define trade or business that an individual materially participate business for purposes of section 199A. activities other than rental activities to in the trade or business. Instead, section However, the Treasury Department and include any activity performed: (i) In 199A is dependent on whether the IRS recognize the difficulties taxpayers connection with a trade or business individual has QBI from a trade or and practitioners may have in within the meaning of section 162, (ii) business. Consequently, the Treasury determining whether a taxpayer’s rental with respect to which expenses are Department and the IRS decline to real estate activity is sufficiently regular, allowable as a deduction under section adopt these comments because the continuous, and considerable for the 212, (iii) conducted in anticipation of § 1.469–5T material participation tests activity to constitute a section 162 trade the commencement of a trade or are not a proxy to establish regular, or business. Accordingly, Notice 2019– business, or (iv) that involves research continuous, and considerable activity 07, 2019–9 IRB, released concurrently and experimentation expenditures that rises to the level of a trade or with these final regulations, provides (within the meaning of section 174). business for purposes of section 199A. notice of a proposed revenue procedure Section 1.469–4(b)(2) defines a rental detailing a proposed safe harbor under activity as an activity that constitutes a b. Rental Real Estate Activities as a which a rental real estate enterprise may rental activity within the meaning of Trade or Business be treated as a trade or business solely § 1.469–1T(e)(3). Passive activities for A majority of the comments received for purposes of section 199A. purposes of section 469 are defined as on the meaning of a trade or business Under the proposed safe harbor, a any activity that involves the conduct of focus on the treatment of rental real rental real estate enterprise may be a trade or business in which the estate activities. Commenters noted treated as a trade or business for taxpayer does not materially participate inconsistency in the case law in purposes of section 199A if at least 250 and includes all rental activity. The determining whether a taxpayer renting hours of services are performed each definition of trade or business for real estate is engaged in a trade or taxable year with respect to the section 469 purposes is significantly business. Some commenters suggested enterprise. This includes services broader than the definition for purposes including safe harbors, tests, or a variety performed by owners, employees, and of section 162 as it is intended to of factors, which if satisfied, would independent contractors and time spent capture a larger universe of activities, qualify a rental real estate activity as a on maintenance, repairs, collection of including passive activities. Section 469 trade or business. A number of rent, payment of expenses, provision of was enacted to limit the deduction of commenters suggested that all rental services to tenants, and efforts to rent certain passive losses and therefore, real estate activity should qualify as a the property. Hours spent by any person serves a very different purpose than the trade or business. Further, one with respect to the owner’s capacity as allowance of a deduction under section commenter suggested that rental income an investor, such as arranging financing, 199A. Further, section 199A does not from real property held for the procuring property, reviewing financial require that a taxpayer materially production of rents within the meaning statements or reports on operations, participate in a trade or business in of section 62(a)(4) should be considered planning, managing, or constructing order to qualify for the section 199A a trade or business for purposes of long-term capital improvements, and deduction. Consequently, the Treasury section 199A. Another commenter traveling to and from the real estate are Department and the IRS decline to suggested that final regulations provide not considered to be hours of service adopt the recommendation to define that an individual whose taxable with respect to the enterprise. The trade or business for purposes of section income does not exceed the threshold proposed safe harbor also would require 199A by reference to section 469. The amount will be considered to be that separate books and records and Treasury Department and the IRS also conducting a trade or business with separate bank accounts be maintained decline to define trade or business by respect to any real estate rental of which for the rental real estate enterprise. reference to section 1411 as § 1.1411– the individual owns at least ten percent Property leased under a triple net lease 1(d)(12) defines trade or business by and in which the individual actively or used by the taxpayer (including an reference to section 162 in a manner participates within the meaning of owner or beneficiary of an RPE) as a similar to § 1.199A–1(b)(14). section 469(i). residence for any part of the year under Commenters also suggested that the In determining whether a rental real section 280A would not be eligible section 199A regulations incorporate the estate activity is a section 162 trade or under the proposed safe harbor. A rental real estate professional provisions in business, relevant factors might include, real estate enterprise that satisfies the section 469(c)(7) in a manner similar to but are not limited to (i) the type of proposed safe harbor may be treated as the cross references in section 163(j) and rented property (commercial real a trade or business solely for purposes § 1.1411–4(g)(7). Under section 469, a property versus residential property), of section 199A and such satisfaction real estate professional may treat rental (ii) the number of properties rented, (iii) does not necessarily determine whether real estate activities described in section the owner’s or the owner’s agents day- the rental real estate activity is a section 469(c)(7)(C) as nonpassive if the to-day involvement, (iv) the types and 162 trade or business. Likewise, failure
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to meet the proposed safe harbor would which the related party is an individual of qualified property, and SSTB not necessarily preclude rental real or an RPE and that the term related information for each trade or business estate activities from being a section 162 party be defined with reference to engaged in by the entity. Whether a trade or business. existing attribution rules under sections single entity has multiple trades or Examples 1 and 2 of proposed 267, 707, or 414. The final regulations businesses is a factual determination. § 1.199A–1(d)(4) describe a taxpayer clarify these rules by adopting these However, court decisions that help who owns several parcels of land that recommendations and limiting this define the meaning of ‘‘trade or the taxpayer manages and leases to special rule to situations in which the business’’ provide taxpayers guidance in airports for parking lots. The Treasury related party is an individual or an RPE. determining whether more than one Department and the IRS are aware that Further, as discussed in part V.B. of this trades or businesses exist. As discussed some practitioners and taxpayers Summary of Comments and Explanation in part II.A.3.a. of this Summary of questioned whether the use of the lease of Revisions, the final regulations Comments and Explanation of of unimproved land in these examples provide that the related party rules Revisions, generally under section 162, was intended to imply that the lease of under sections 267(b) or 707(b) will be to be engaged in a trade or business, the unimproved land is a trade or business used to determine relatedness for taxpayer must be involved in the for purposes of section 199A. Proposed purposes of § 1.199A–4 and this special activity with continuity and regularity § 1.199A–1(d)(4) provides that for rule. and the taxpayer’s primary purpose for purposes of the examples all businesses engaging in the activity must be for d. Multiple Trades or Businesses Within described in the examples are trades or income or profit. Groetzinger, at 35. business for purposes of section 199A. an Entity The Treasury Department and the IRS Example 1 was intended to provide a Several commenters suggested that also believe that multiple trades or simple illustration of how the there should be safe harbors or factors businesses will generally not exist calculation would work if a taxpayer to determine how to delineate separate within an entity unless different lacked sufficient W–2 wages or UBIA of section 162 trades or businesses within methods of accounting could be used for qualified property to claim the an entity and when an entity’s each trade or business under § 1.446– deduction. Example 2 built on the fact combined activities should be 1(d). Section 1.446–1(d) explains that no pattern by adding UBIA of qualified considered a single section 162 trade or trade or business is considered separate property to the facts. The examples in business. Some of the factors suggested and distinct unless a complete and the proposed regulations were not include whether the activities: Have separable set of books and records is intended to imply that the lease of the separate books and records, facilities, kept for that trade or business. Further, land is, or is not, a trade or business for locations, employees, and bank trades or businesses will not be purposes of section 199A beyond the accounts; operate separate types of considered separate and distinct if, by assumption in the examples. In order to businesses or activities; are held out as reason of maintaining different methods avoid any confusion, the final separate to the public; and are housed of accounting, there is a creation or regulations remove the references to in separate legal entities. One shifting of profits and losses between land in both examples. commenter suggested adopting the the businesses of the taxpayer so that separate trade or business rules income of the taxpayer is not clearly c. Special Rule for Renting Property to provided in regulations under sections reflected. a Related Person 446 and 469. In one instance, the proposed The Treasury Department and the IRS e. Taxpayer Consistency regulations and the final regulations decline to adopt these recommendations In cases in which other Code extend the definition of trade or because specific guidance under section provisions use a trade or business business for purposes of section 199A 162 is beyond the scope of these final standard that is the same or beyond section 162. Solely for purposes regulations and, as described in part substantially similar to the section 162 of section 199A, the rental or licensing II.A.3.a. of this Summary of Comments standard adopted in these final of tangible or intangible property to a and Explanation of Revisions, guidance regulations, taxpayers should report related trade or business is treated as a under section 469 is inapplicable. such items consistently. For example, if trade or business if the rental or Further, § 1.446–1(d) does not provide taxpayers who own tenancy in common licensing activity and the other trade or guidance on when trades or businesses interests in rental property treat such business are commonly controlled will be considered separate and distinct. joint interests as a trade or business for under proposed § 1.199A–4(b)(1)(i). Instead, it provides that a taxpayer can purposes of section 199A but do not This rule also allows taxpayers to use different methods of accounting for treat the joint interests as a separate aggregate their trades or businesses with separate and distinct trades or entity for purposes of § 301.7701– the leasing or licensing of the associated businesses and specifies two 1(a)(2), the IRS will consider the facts rental or intangible property if all of the circumstances in which trades or and circumstances surrounding the requirements of proposed § 1.199A–4 businesses will not be considered differing treatment. Similarly, taxpayers are met. separate and distinct. Section 1.446– should consider the appropriateness of One commenter asked for clarification 1(d)(2) provides that no trade or treating a rental activity as a trade or regarding whether this rule applies to business will be considered separate business for purposes of section 199A situations in which the rental or and distinct unless a complete and where the taxpayer does not comply licensing is to a commonly controlled C separable set of books and records is with the information return filing corporation. Another commenter kept for such trade or business. requirements under section 6041. suggested that the rule in the proposed The Treasury Department and the IRS regulations could allow passive leasing acknowledge that an entity can conduct B. Computational Rules and licensing-type activities to benefit more than one section 162 trade or Section 1.199A–1(d)(2)(iii)(A) of the from section 199A even if the business. This position is inherent in proposed regulations provides that if an counterparty is not an individual or an the reporting requirements detailed in individual’s QBI from at least one trade RPE. The commenter recommended that § 1.199A–6, which require an entity to or business is less than zero, the the exception be limited to scenarios in separately report QBI, W–2 wages, UBIA individual must offset the QBI
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attributable to each trade or business 3 is carried to year three (that is, directly by the owner of the entity for that produced net positive QBI with the <7>¥(2 + 2) = <3>).’’ Id. at 211. This purposes of section 199A. QBI from each trade or business that example indicates that QBI is netted in 2. Deductions Limited by Taxable determining combined QBI. produced net negative QBI in Income proportion to the relative amounts of net Another commenter asked, in the case QBI in the trades or businesses with of a taxpayer with taxable income One commenter requested positive QBI. This rule is applied prior within the phase-in range, whether QBI clarification that other deductions to the application of the W–2 wage and from an SSTB is reduced by the limited by taxable income, such as the UBIA of qualified property limitations. applicable percentage before or after 65-percent-of-taxable-income limit One commenter supported this rule, QBI from all of the taxpayer’s trades or imposed on the deduction for oil and noting that it leads to fair and businesses is netted. The commenter gas percentage depletion under section administrable results for both the recommended that negative QBI be 613A, are to be computed without government and taxpayers. Another netted with positive QBI before the regard to any section 199A deduction. commenter argued that the rule reduction amount is applied to the QBI The Treasury Department and the IRS requiring losses to be allocated to a from the SSTB. decline to adopt this comment as the trade or business with positive QBI The Treasury Department and the IRS specific question is answered by section should be eliminated. The commenter agree that clarification is needed 613A(d)(1)(B), as amended by the TCJA, noted that aggregation is optional and regarding the reduction of QBI from an which provides that taxable income for netting provisions force a mathematical SSTB when a taxpayer has multiple purposes of the limitation under section aggregation where one is not desired or trades or businesses. Section 613A(d)(1) is computed without regard necessary. The commenter also stated 199A(d)(3)(A)(ii) provides that only the to any deduction allowable under 199A. that taxpayers are prevented from applicable percentage of qualified items The Treasury Department and the IRS claiming an excessive deduction by the of income, gain, deduction, or loss, and believe that limitations on other taxable income, W–2 wage, and UBIA of the W–2 wages and the unadjusted basis deductions provided for under the Code qualified property limitations. A third immediately after acquisition of are more properly addressed by commenter suggested that if the netting qualified property, of the taxpayer guidance under those Code sections. rule is retained, a taxpayer should be allocable to such specified service trade 3. Treatment of Section 199A Deduction able to elect to include an unprofitable or business shall be taken into account for Purposes of Section 162(a) in computing the qualified business business with any group of businesses Another commenter suggested that income, W–2 wages, and the unadjusted when determining the amount of their the final regulations provide that the basis immediately after acquisition of W–2 wages and UBIA of qualified section 199A deduction is treated as a qualified property of the taxpayer for property regardless of whether the deduction for purposes of section 199A the taxable year for purposes of aggregation factors are met. only and not as a deduction that is paid applying this section. The Treasury The Treasury Department and the IRS or incurred for purposes of section Department and the IRS believe this decline to adopt these 162(a) or for any other purposes of the language applies for all purposes in recommendations. The aggregation rules Code. The Treasury Department and the computing the section 199A deduction. provided in § 1.199A–4 are optional and IRS decline to adopt this Accordingly, the final regulations are intended to assist taxpayers in recommendation. In making this provide that for taxpayers with taxable applying the W–2 wage and UBIA of suggestion, the Treasury Department income within the phase-in range, QBI qualified property limitations in and the IRS assume the commenter is from an SSTB must be reduced by the situations in which a unified business is concerned with how section 199A applicable percentage before the conducted across multiple entities. In interacts with the many Code sections application of the netting and carryover contrast, the netting rule is derived from that reference a ‘‘trade or business.’’ rules described in § 1.199A– section 199A(b) of the Code, which How section 199A interacts with other 1(d)(2)(iii)(A). The final regulations provides in relevant part that the term Code sections must be determined with clarify that the SSTB limitations also ‘‘combined qualified business income respect to the particular Code section at apply to qualified income received by amount’’ includes the sum of 20 percent issue. Accordingly, the Treasury an individual from a PTP. of the taxpayer’s QBI with respect to Department and the IRS decline to each qualified trade or business of the C. Other Comments adopt this general suggestion. taxpayer. Further, the conference report accompanying the TCJA describes the 1. Disregarded Entities 4. Section 6662(a) Penalty for Senate amendment as providing that The proposed regulations do not Underpayment of Tax ‘‘[i]f the net amount of qualified address the treatment of disregarded Section 6662(a) provides a penalty for business income from all qualified entities for purposes of section 199A. A an underpayment of tax required to be trades or businesses during the taxable few commenters questioned whether shown on a return. Under section year is a loss, it is carried forward as a trades or businesses conducted by 6662(b), the penalty applies to the loss from a qualified trade or business disregarded entities would be treated as portion of any underpayment that is in the next taxable year.’’ H.R. Rep. No. if conducted directly by the owner of attributable to a substantial 115–466, at 214 (2017) (Conference the entity. Section 1.199A–1(e)(2) of the underpayment of income tax. Section Report). The Conference Report also final regulations provides that an entity 6662(d)(1) defines substantial includes an example, ‘‘For example, an with a single owner that is treated as understatement of tax, which is individual has two business activities disregarded as an entity separate from generally an understatement that that give rise to a net business loss of its owner under any provision of the exceeds the greater of 10 percent of the 3 and 4, respectively, in year one, giving Code is disregarded for purposes of tax required to be shown on the return rise to a carryover business loss of 7 in section 199A and 1.199A–1 through or $5,000. Section 6662(d)(1)(C) year two. If in year two the two business 1.199A–6. Accordingly, trades or provides a special rule in the case of any activities each give rise to net business businesses conducted by a disregarded taxpayer who claims the section 199A income of 2, a carryover business loss of entity will be treated as conducted deduction for the taxable year, which
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requires that section 6662(d)(1)(A) is calendar year cannot be included in a partnership with qualified property applied by substituting ‘‘5 percent’’ for determining W–2 wages for such that does not produce tax depreciation ‘‘10 percent.’’ Section 1.199A–1(e)(6) calendar year under the language of the during the taxable year. In the case of cross-references this rule. One statute. qualified property held by an S commenter asked for guidance on how corporation, each shareholder’s share of B. UBIA the section 6662 accuracy penalty UBIA of qualified property is a share of would be applied if an activity was 1. Qualified Property Held by an RPE the unadjusted basis proportionate to determined by the IRS not to be a trade The proposed regulations provide that the ratio of shares in the S corporation or business for purposes of section in the case of qualified property held by held by the shareholder on the last day 199A. The Treasury Department and the an RPE, each partner’s or shareholder’s of the taxable year over the total issued IRS decline to adopt this suggestion as share of the UBIA of qualified property and outstanding shares of the S guidance regarding the application of is an amount that bears the same corporation. section 6662 is beyond the scope of proportion to the total UBIA of qualified 2. Property Contributed to a Partnership these regulations. property as the partner’s or or S Corporation in a Nonrecognition III. Determination of W–2 Wages and shareholder’s share of tax depreciation Transfer Unadjusted Basis Immediately After bears to the RPE’s total tax depreciation The proposed regulations provide that Acquisition of Qualified Property with respect to the property for the year. the UBIA of qualified property means In the case of a partnership with A. W–2 Wages the basis on the placed in service date qualified property that does not produce of the property. Therefore, the UBIA of One commenter asked for clarification tax depreciation during the year, each qualified property contributed to a regarding whether W–2 wages include partner’s share of the UBIA of qualified partnership in a section 721 transaction elective deferrals to self-employed property would be based on how gain generally equals the partnership’s tax Simplified Employee Pensions (SEP), would be allocated to the partners basis under section 723 rather than the simple retirement accounts (SIMPLE), pursuant to sections 704(b) and 704(c) if contributing partner’s original UBIA of and other qualified plans. Revenue the qualified property were sold in a the property. Similarly, the UBIA of Procedure 2019–11, 2019–9 IRB, issued hypothetical transaction for cash equal qualified property contributed to an S concurrently with these final to the fair market value of the qualified corporation in a section 351 transaction regulations, provides additional property. Several commenters suggested is determined by reference to section guidance on the definition of W–2 that only section 704(b) should be used 362. Multiple commenters expressed wages, including amounts treated as for this purpose, arguing that the use of concern that this treatment could result elective deferrals. A few commenters section 704(c) allocation methods would in a step-down in the UBIA of qualified asked for confirmation that W–2 wages be unduly burdensome and could lead property used in a trade or business at include S corporation owner/employee to unintended results. One commenter the time of the contribution due only to W–2 wages for purposes of the W–2 recommended that partners should the change in entity structure. These wage limitation (assuming the wages are share UBIA of qualified property in the commenters suggested that the UBIA of included on the Form W–2 filed within same manner that they share the qualified property contributed to a 60 days of the due date). The definition economic depreciation of the property. partnership under section 721 or to an of W–2 wages includes amounts paid to Another commenter suggested S corporation under section 351 should officers of an S corporation and allocating UBIA based on a ratio of each be determined as of the date it was first common-law employees of an partner’s allocation of depreciation and placed in service by the contributing individual or RPE. Amounts paid as W– the partnership’s total depreciation of partner or shareholder. Another 2 wages to an S corporation shareholder qualified property for the year. One commenter suggested that final cannot be included in the recipient’s commenter requested clarification regulations should generally provide for QBI. However, these amounts are regarding how UBIA is allocated when carryover of UBIA of qualified property included as W–2 wages for purposes of a partner or shareholder has in non-recognition transactions, but the W–2 wage limitation to the extent depreciation expense as an ordinary provide an anti-abuse rule for cases in that the requirements of § 1.199A–2 are deduction and as a rental real estate which a transaction was engaged in otherwise satisfied. deduction and they are allocated with a principal purpose of increasing Another commenter suggested that, differently. the section 199A deduction. for purposes of the W–2 wage The Treasury Department and the IRS The Treasury Department and the IRS limitation, taxpayers should be able to agree with the commenters that relying agree that qualified property contributed include wages paid during the 12 on section 704(c) to allocate UBIA could to a partnership or S corporation in a months prior to the sale, disposition, or lead to unintended shifts in the nonrecognition transaction should other transactions involving a business allocation of UBIA. Therefore, the final generally retain its UBIA on the date it segment that generates LIFO and regulations provide that each partner’s was first placed in service by the depreciation recapture. The Treasury share of the UBIA of qualified property contributing partner or shareholder. Department and the IRS decline to is determined in accordance with how Accordingly, § 1.199A–2(c)(3)(iv) adopt this comment. Section 199A(b)(4) depreciation would be allocated for provides that, solely for the purposes of provides that the term W–2 wages section 704(b) book purposes under section 199A, if qualified property is means, with respect to any person for § 1.704–1(b)(2)(iv)(g) on the last day of acquired in a transaction described in any taxable year of such person, the the taxable year. To the extent a partner section 168(i)(7)(B), the transferee’s amounts described in paragraphs (3) has depreciation expense as an ordinary UBIA in the qualified property is the and (8) of section 6051(a) paid by such deduction and as a rental real estate same as the transferor’s UBIA in the person with respect to employment of deduction, the allocation of the UBIA property, decreased by the amount of employees by such person during the should match the allocation of the money received by the transferor in the calendar year ending during such expenses. The Treasury Department and transaction or increased by the amount taxable year. Therefore, regardless of the IRS request comments on whether a of money paid by the transferee to recapture, wages paid prior to a new regime is necessary in the case of acquire the property in the transaction.
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The rules set forth in these regulations formal that substantial,’’ so that taxpayer receives cash in the exchange are limited solely to the determination recognition and income inclusion at that and uses that cash to purchase the of UBIA of qualified property for time of the exchange are not qualified property. purposes of section 199A and are not appropriate. The underlying assumption The rules are similar for qualified applicable to the determination of gain, of these exceptions to the recognition property acquired pursuant to an loss, basis, or depreciation with respect requirement is that the new property is involuntary conversion under section to transactions described in section substantially a continuation of the old 1033, except that appreciation for this 168(i)(7). investment still unliquidated; and in the purpose is the difference between the case of reorganization, that the new fair market value of the converted 3. Property Received in a Section 1031 enterprise, the new corporate structure, property on the date of the conversion Like-Kind Exchange or Section 1033 and the new property are substantially over the fair market value of the Involuntary Conversion a continuation of the old still converted property on the date of Section 1.199A–2(c)(3) of the unliquidated investment. Id. acquisition by the taxpayer. In addition, proposed regulations explains that Application of section 1031(d) in other property is property not similar or UBIA of qualified property means the determining UBIA for the replacement related in service or use to the converted basis of qualified property on the placed property would require, among other property. in service date of the property as possible adjustments, a downward The rules set forth in these final determined under applicable sections of adjustment for depreciation deductions. regulations are limited solely to the chapter 1 of subtitle A of the Code, This approach is contrary to the rule in determination of UBIA of qualified which includes sections 1012 (Basis of § 1.199A–2(c)(3) of the proposed property for purposes of section 199A property—cost), 1031 (Exchange of real regulations that UBIA of qualified and are not applicable to the property held for productive use or property is determined without regard determination of gain, loss, basis, or investment), and 1033 (Involuntary to any adjustments for depreciation depreciation with respect to conversions). Section 1.199A–2(c)(3) of described in section 1016(a)(2) or (3). transactions governed by sections 1031 the proposed regulations also explains Accordingly, the final regulations or 1033. that UBIA of qualified property is provide that the UBIA of qualified like- In determining the depreciable period determined without regard to any kind property that a taxpayer receives in of replacement property acquired in a adjustments for depreciation described a section 1031 like-kind exchange is the like-kind exchange or in an involuntary in section 1016(a)(2) or (3). Example 2 UBIA of the relinquished property. conversion, the proposed regulations to proposed § 1.199A–2(c)(4) illustrates However, if a taxpayer either receives apply § 1.168(i)–6 which, in turn, that the UBIA of qualified property money or property not of a like kind to follows the rules in section 1031(d) or received in a section 1031 like-kind the relinquished property (other 1033(b), as applicable. Because the final exchange is the adjusted basis of the property) or provides money or other regulations do not determine the UBIA relinquished property transferred in the property as part of the exchange, the of replacement property under section exchange as determined under section taxpayer’s UBIA in the replacement 1031(d) or 1033(b), the final regulations 1031(d), which reflects the adjustment property is adjusted. The taxpayer’s correspondingly remove the indirect in basis for depreciation deductions UBIA in the replacement property is references to those rules for determining previously taken under section 168. adjusted downward by the excess of any the depreciable period of replacement Several commenters argued that the money or the fair market value of other property. To be consistent with the rules proposed regulations discourage like- property received by the taxpayer in the regarding the UBIA of replacement kind exchanges by providing an exchange over the taxpayer’s property that is of like kind to the incentive to retain property in order to appreciation in the relinquished relinquished property or that is similar maintain greater UBIA of qualified property (excess boot). Appreciation for or related in service or use to the property. These commenters argue that this purpose is the excess of the involuntarily converted property, the the UBIA of replacement qualified relinquished property’s fair market final regulations provide that (i) for the property should be the taxpayer’s UBIA value on the date of the exchange over portion of the individual’s or RPE’s of the relinquished property on the the fair market value of the relinquished UBIA in the replacement property that placed in service date by the taxpayer, property on the date of acquisition by does not exceed the individual’s or increased by any additional capital the taxpayer. This reduction for excess RPE’s UBIA in the relinquished invested by the taxpayer to acquire the boot in the taxpayer’s UBIA in the property or involuntarily converted replacement property, rather than the replacement property reflects a partial property, the date such portion in the adjusted basis of the replacement liquidation of the taxpayer’s investment replacement property was first placed in property at the time of the exchange as in qualified property. service by the individual or RPE is the determined under section 1031(d). This If the taxpayer adds money or other date on which the relinquished property would be consistent with the step-in- property to acquire replacement or involuntarily converted property was the-shoes rule for determining the property, the taxpayer’s UBIA in the first placed in service by the individual depreciable period. Another commenter replacement property is adjusted or RPE, and (ii) for the portion of the suggested that if the rule is retained, the upward by the amount of money paid or individual’s or RPE’s UBIA in the provision should be revised to treat the the fair market value of the other replacement property that exceeds the placed in service date as the date of the property transferred to reflect additional individual’s or RPE’s UBIA in the exchange. taxpayer investment. relinquished property or involuntarily Section 1.1002–1(c) of the Income Tax If the taxpayer receives other property converted property, such portion in the Regulations generally describes in the exchange that is qualified replacement property is treated as nonrecognition sections, including property, the taxpayer’s UBIA in the separate qualified property that the section 1031, as ‘‘exchanges of property qualified other property will equal the individual or RPE first placed in service in which at the time of the exchange fair market value of the other property. on the date on which the replacement particular differences exist between the Consequently, a taxpayer who receives property was first placed in service by property parted with and the property qualified other property in the exchange the individual or RPE. This rule is not acquired, but such differences are more is treated, for UBIA purposes, as if the a change from the proposed regulations,
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but is consistent with the step-in-the- amount of the section 743(b) adjustment as determined under section 732. The shoes rationale for determining the as separate qualified property with a Treasury Department and the IRS do not depreciable period for certain non- new depreciation period, with believe that the adjustment to basis is an recognition transactions described in adjustments to the partner’s share of the acquisition for purposes of section section 168(i)(7)(B). partnership’s UBIA to avoid duplicating 199A. In addition, the final regulations UBIA; and creating an entirely new Commenters also noted that the provide that when qualified property regime mirroring the principles of failure to adjust UBIA for reduction of that is not of like kind to the sections 734(b), 743(b), 754, and 755. basis under section 734 could result in relinquished property or qualified The Treasury Department and the IRS a duplication of UBIA if property is property that is not similar or related in agree that section 743(b) basis distributed in liquidation of a partner’s service or use to involuntarily converted adjustments should be treated as interest in a partnership and the partner property is received in a section 1031 or qualified property to extent the section takes that property with the partner’s 1033 transaction, such qualified 743(b) basis adjustment reflects an outside basis under section 732(b) property is treated as separate qualified increase in the fair market value of the without the partnership adjusting the property that the individual or RPE first underlying qualified property. UBIA in the partnership’s remaining placed in service on the date on which Accordingly, the final regulations define assets. The Treasury Department and such qualified property was first placed an ‘‘excess section 743(b) basis the IRS agree that such a duplication is in service by the individual or RPE. This adjustment’’ as an amount that is inappropriate, but do not agree with rule is consistent with the rules determined with respect to each item of commenters that such a distribution regarding the UBIA of such qualified qualified property and is equal to an results in an increase in UBIA. These property. amount that would represent the regulations provide that the The rules set forth in these final partner’s section 743(b) basis partnership’s UBIA in the qualified regulations are limited solely to the adjustment with respect to the property, property carries over to a partner that determination of the depreciable period as determined under § 1.743–1(b) and receives a distribution of the qualified for purposes of section 199A and are not § 1.755–1, but calculated as if the property. applicable to the determination of the adjusted basis of all of the partnership’s The Treasury Department and the IRS placed in service date for depreciation property was equal to the UBIA of such continue to study this issue and request or tax credit purposes. property. The absolute value of the additional comments on the interaction of the special basis adjustments under 4. Sections 734(b) and 743(b) Special excess section 743(b) basis adjustment sections 734(b) and 743(b) with section Basis Adjustments cannot exceed the absolute value of the total section 743(b) basis adjustment 199A and whether a new regime for The proposed regulations provide that with respect to qualified property. The calculating adjustments with respect to basis adjustments under sections 734(b) excess section 743(b) basis adjustment is UBIA is necessary. and 743(b) are not treated as qualified treated as a separate item of qualified 5. Qualified Property Held by a Trade or property. The preamble to the proposed property placed in service when the regulations describes concerns about Business at the Close of the Taxable transfer of the partnership interest Year inappropriate duplication of the UBIA occurs. This rule is limited solely to the of qualified property in circumstances determination of the depreciable period Section 199A(b)(6)(A)(i) and proposed such as when the fair market value of for purposes of section 199A and is not § 1.199A–2(c) provide that qualified property has not increased and its applicable to the determination of the property must be held by, and available depreciable period has not ended. placed in service date for depreciation for use in, the qualified trade or Several commenters agreed that special or tax credit purposes. The recovery business at the close of the taxable year. basis adjustments could result in the period for such property is determined One commenter suggested the final duplication of UBIA of qualified under § 1.743–1(j)(4)(i)(B) with respect regulations contain a rule for property to the extent that the fair to positive basis adjustments and determining the UBIA of qualified market value of the qualified property § 1.743–1(j)(4)(ii)(B) with respect to property in a short year on acquisition does not exceed UBIA. However, many negative basis adjustments. or disposition of a trade or business, of these commenters suggested that The Treasury Department and the IRS similar to the guidance provided in basis adjustments under section 734(b) do not believe that a section 734(b) § 1.199A–2(b)(2)(v) for purposes of and 743(b) should be treated as adjustment is an acquisition of qualified calculating W–2 wages. The commenter qualified property to the extent that the property for purposes of determining suggested that one approach for UBIA fair market value of the qualified UBIA. Section 734(b)(1) provides that, could be a pro rata calculation based on property to which the adjustments relate in the case of a distribution of property the number of days the qualified exceeds the UBIA of such property to a partner with respect to which a property is held during the year. The immediately before the special basis section 754 election is in effect (or when Treasury Department and the IRS adjustment. Other commenters there is a substantial basis reduction decline to adopt this suggestion because recommended that both section 734(b) under section 734(d)), the partnership the statute looks to qualified property and section 743(b) adjustments should will increase the adjusted basis of held at the close of the taxable year. generate new UBIA. Commenters partnership property by the sum of (A) Another commenter asked for suggested a variety of methods for the amount of any gain recognized to additional guidance on this rule with adjusting UBIA to account for the the distributee partner under section respect to qualified property held by an special basis adjustments. These 731(a)(1), and (B) in the case of RPE. The commenter questioned included incorporating existing distributed property to which section whether the applicable taxable year is principles of sections 734(b), 743(b), 732(a)(2) or (b) applies, the excess of the that of the taxpayer or the RPE. The 754, and 755 by determining the UBIA adjusted basis of the distributed commenter also asked how the rule of separate qualified property by property to the partnership immediately would be applied if a taxpayer reference to the difference between the before the distribution (as adjusted by transferred his or her interest in an RPE. transferee partner’s outside basis and its section 732(d)) over the basis of the The Treasury Department and the IRS share of UBIA; treating the entire distributed property to the distributee, believe that the UBIA of qualified
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property is measured at the trade or commences as of the date of the these regulations provide that any losses business level. Accordingly, in the case decedent’s death. disallowed, suspended, or limited under of qualified property held by an RPE, the provisions of sections 465, 469, IV. Qualified Business Income, the applicable taxable year is that of the 704(d), and 1366(d), or any other similar Qualified REIT Dividends, and RPE. A taxpayer who transfers an provisions, shall be used, for purposes Qualified PTP Income interest in an RPE prior to the close of of section 199A and these regulations, the RPE’s taxable year is not entitled to A. Qualified Business Income in order from the oldest to the most a share of UBIA from the RPE. 1. Items Spanning Multiple Tax Years recent on a FIFO basis. In the context of S corporations, one One commenter suggested that a commenter noted that section 1377(a) Section 1.199A–3(b)(1)(iii) provides special rule should be provided to provides that income for the taxable that section 481 adjustments (whether identify the section 469 trade or year is allocated among shareholders on positive or negative) are taken into business losses that are used to offset a pro rata basis by assigning a pro rata account for purposes of computing QBI income if the taxpayer’s section 469 to the extent that the requirements of share of each corporate item to each day groupings differ from the taxpayer’s this section and section 199A are of the taxable year. The commenter section 199A aggregations. The otherwise satisfied, but only if the suggested that all shareholders who commenter recommended that any adjustment arises in taxable years were owners during the taxable year section 469 loss carryforward that is ending after December 31, 2017. One should be given access to the UBIA of later used should be allocated across the commenter suggested that income from qualified property held by an S taxpayer’s section 199A aggregations installment sales and deferred corporation at the close of the S based on income with respect to such cancellation of indebtedness income corporation’s taxable year. The Treasury aggregations in the year the loss was under section 108(i) arising in taxable Department and the IRS decline to generated. The Treasury Department adopt this comment because section years ending before January 1, 2018, should not be taken into account for and the IRS decline to adopt this 199A does not have a rule comparable comment. Concurrently with the to the rule in section 1377(a). purposes of computing QBI. The publication of these proposed The proposed regulations provide that commenter also recommended that regulations, the Treasury Department property is not qualified property if the items deferred under Revenue property is acquired within 60 days of Procedure 2004–34, 2004–1 C.B. 911 and the IRS are publishing proposed the end of the taxable year and disposed (advanced payments not included in regulations under section 199A (REG– of within 120 days without having been revenue) prior to January 1, 2018, 134652–18) that treat previously used in a trade or business for at least should be included in QBI. The suspended losses as losses from a 45 days prior to disposition, unless the Treasury Department and the IRS separate trade or business for purposes taxpayer demonstrates that the principal continue to study this issue and request of section 199A. purpose of the acquisition and additional comments on when items 3. Net Operating Losses and the disposition was a purpose other than arising in taxable years prior to January Interaction of Section 199A With increasing the section 199A deduction. 1, 2018, should be taken into account Section 461(l) The Treasury Department and the IRS for purposes of computing QBI. The preamble to the proposed received no comments with respect to 2. Previously Disallowed Losses this rule. The final regulations retain the regulations requested comments on the rule but clarify that the 120 day period The proposed regulations provide that interaction of sections 199A and 461(l). begins with the acquisition of the previously disallowed losses or Commenters requested guidance in property. deductions (including under sections many areas including: Ordering rules for 465, 469, 704(d), and 1366(d)) allowed the use of suspended active business 6. Qualified Property Acquired From a in the taxable year are taken into losses; methods for tracing losses to a Decedent account for purposes of computing QBI taxpayer’s various trades or businesses; The preamble to the proposed so long as the losses were incurred in a whether a loss retains its character; regulations provides that for property taxable year beginning after January 1, whether a deduction under section acquired from a decedent and 2018. Because previously disallowed 199A is a loss for calculating the loss immediately placed in service, the UBIA losses incurred for taxable years limitation; and how the section 199A generally will be its fair market value at beginning before January 1, 2018, loss carryover rules interact with a loss the time of the decedent’s death under cannot be taken into account for limited under section 461(l). The section 1014. One commenter purposes of computing QBI, several Treasury Department and the IRS recommended that the regulations commenters recommended that final understand that taxpayers will need should clearly state this rule in the regulations provide an ordering rule for guidance as to the interaction of section regulatory text. The commenter the use of such losses. Commenters 199A and section 461(l). However, these recommended that the regulations recommended both ‘‘last-in, first-out’’ issues are beyond the scope of these should further clarify that the date of (LIFO) and ‘‘first-in, first-out’’ (FIFO) regulations and will be considered in the decedent’s death should commence approaches, with a slight preference for future guidance under section 461(l). a new depreciable period for the the FIFO approach as consistent with Section 1.199A–3(b)(1)(v) retains and property. The Treasury Department and former section 199. The Treasury clarifies the rule that while a deduction the IRS adopt these comments. The final Department and the IRS agree that under section 172 for a net operating regulations provide that for qualified taxpayers with previously disallowed loss is generally not considered to be property acquired from a decedent and losses for taxable years beginning both with respect to a trade or business (and immediately placed in service, the UBIA before and after January 1, 2018, require thus not taken into account in of the property will generally be the fair an ordering rule to determine which determining QBI), an excess business market value at the date of the portion of a previously disallowed loss loss under section 461(l) is treated as a decedent’s death under section 1014. can be taken into account for purposes net operating loss carryover to the Further, the regulations provide that a of section 199A. Consistent with following taxable year and is taken into new depreciable period for the property regulations under former section 199, account for purposes of computing QBI
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in the subsequent taxable year in which is attributable to a trade or business the partner’s distributive share from the it is deducted. must be determined under the section of partnership and taxed as such, and the Code governing the deduction. All should be included in calculating QBI. 4. Recapture of Overall Foreign Losses deductions attributable to a trade or Similarly, another commenter generally One commentator requested that business should be taken into account requested additional guidance for how Treasury and the IRS provide that U.S.- for purposes of computing QBI except to to determine when a payment to a source taxable income arising upon the extent provided by section 199A and partner is considered for the use of recapture of an overall foreign loss these regulations. Accordingly, capital and excluded from the described in section 904(f) be treated as § 1.199A–3(b)(1)(vi) provides that, in calculation of QBI. Another commenter QBI in the recapture year to the extent general, deductions attributable to a suggested that if guaranteed payments the overall foreign loss limited the trade or business are taken into account for the use of capital under section section 199A deduction in a prior tax for purposes of computing QBI to the 707(c) are excluded from the calculation year. This comment was not adopted. extent that the requirements of section of QBI, a partnership’s expense related Section 199A(c)(3)(A)(i) limits QBI to 199A and § 1.199A–3 are otherwise to guaranteed payments for the use of items that are effectively connected to a satisfied. Thus, for purposes of section capital also should be excluded from the U.S. trade or business in the tax year 199A, deductions such as the deductible calculation of QBI. One commenter concerned and the recapture rules in portion of the tax on self-employment suggested that to the extent a guaranteed section 904(f) apply only for purposes of income under section 164(f), the self- payment for the use of capital is subchapter N, Part III, Subpart A of the employed health insurance deduction considered akin to interest income on Code. In addition, it would not be under section 162(l), and the deduction indebtedness, it is generally appropriate appropriate to expand the scope of QBI for contributions to qualified retirement to exclude the payment from QBI but for recaptured foreign losses when no plans under section 404 are considered noted the significant uncertainty in similar relief is available if non- attributable to a trade or business to the determining whether an arrangement is qualifying domestic losses are extent that the individual’s gross a guaranteed payment for the use of subsequently offset by non-qualifying income from the trade or business is capital, a gross income allocation, or domestic income. taken into account in calculating the something else. The commenter also 5. Treatment of Other Deductions allowable deduction, on a proportionate noted that guaranteed payments for the basis. The Treasury Department and the Section 199A(c)(1) provides that QBI use of capital are not necessarily akin to IRS decline to address whether interest income. includes the net amount of qualified deductions for unreimbursed The Treasury Department and the IRS items of income, gain, deduction, and partnership expenses, the interest decline to adopt the comments loss with respect to any qualified trade expense to acquire partnership and S suggesting that guaranteed payments for or business of the taxpayer. Commenters corporation interests, and state and local the use of capital are generally requested additional guidance on taxes are attributable to a trade or attributable to a trade or business. whether certain items constitute business as such guidance is beyond the Although section 199A is silent with qualified items under this provision. scope of these regulations. Several commenters suggested that respect to guaranteed payments for the deductions for self-employment tax, 6. Guaranteed Payments for the Use of use of capital, section 199A does limit self-employed health insurance, and Capital the deduction under section 199A to certain other retirement plan A few commenters suggested that the income from qualified trades or contribution deductions should not rule in the proposed regulations which businesses. The Treasury Department reduce QBI. One commenter reasoned excludes guaranteed payments for the and the IRS believe that guaranteed that qualified retirement plan use of capital under section 707(c) payments for the use of capital are not contributions should not reduce QBI should be removed. Commenters argued attributable to the trade or business of because they should not be treated as that while section 199A(c)(4) excludes the partnership because they are being associated with a trade or guaranteed payments paid to a partner determined without regard to the business, consistent with the treatment for services rendered with respect to a partnership’s income. Consequently, when calculating net operating losses trade or business under section 707(a), such payments should not generally be under section 172(d)(4)(D). The the statutory language does not likewise considered part of the recipient’s QBI. commenter also suggested that while exclude guaranteed payments for the Rather, for purposes of section 199A, self-employed health insurance is use of capital under section 707(c). The guaranteed payments for the use of treated as associated with a trade or commenters argued that Congress drew capital should be treated in a manner business, such expense should likewise a line between payments for services similar to interest income. Interest not reduce QBI for purposes of and payments for the use of capital income other than interest income simplification in administering the rule. when it drafted section 199A(c) and that which is properly allocated to trade or Another commenter suggested that QBI even though payments for the use of business is specifically excluded from should not be reduced by these capital are determined without regard to qualified items of income, gain, expenses because they are personal the partnership’s income, that does not deduction or loss under section adjustments. One commenter also mean that they are not attributable to a 199A(c)(3)(B)(iii). One commenter noted requested guidance on whether trade or business. Several commenters that if guaranteed payments are treated unreimbursed partnership expenses, the stated that contrary to the reasoning in like interest income for purposes of interest expense to acquire partnership the preamble to the proposed section 199A, and if such payments are and S corporation interests, and state regulations, there is risk involved when properly allocated to a qualified trade or and local taxes reduce QBI. making guaranteed payments for the use business of the recipient, they should The Treasury Department and the IRS of capital because the payments do rely constitute QBI to that recipient in have not adopted these to some degree on the partnership’s respect of such qualified trade or recommendations because they are success. Commenters noted that business. Although, this is an unlikely inconsistent with the statutory language guaranteed payments for the use of fact pattern to occur, the Treasury of section 199A(c). Whether a deduction capital are generally accepted as part of Department and the IRS agree with this
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comment and the final regulations adopt services are similar to guaranteed an activity is a trade or business is made this comment. Further, guidance under payments, reasonable compensation, at the entity level for purposes of sections 707(a) and 707(c) is beyond the and wages, none of which are section 199A. The commenter also scope of these regulations. includable in QBI. Thus, treating section recommended that regulations 707(a) payments received by a partner distinguish between (1) items of income, 7. Section 707(a) Payments for Services for services rendered to a partnership as gain, loss, or deduction that are incurred The proposed regulations provide that QBI would be inconsistent with the in a trade or business applying the any payment described in section 707(a) statute. Further, as noted by one principles of section 162 and (2) items received by a partner for services commenter, it is difficult to distinguish of income, gain, deduction, or loss that rendered with respect to a trade or between payments under section 707(c) are not incurred in such a trade or business, regardless of whether the and payments under section 707(a). business. partner is an individual or an RPE, is Therefore, creating such a distinction For purposes of section 199A, the excluded from QBI. A number of would be difficult for both taxpayers determination of whether an activity is commenters suggested that payments to and the IRS to administer. a trade or business is made at the entity partners in exchange for services Section 1.199A–3(b)(2) of the level. If an RPE is engaged in a trade or provided to the partnership under proposed regulations addresses items business, items of income, gain, loss, or section 707(a) should not be excluded that are not taken into account as deduction from such trade or business from QBI and others suggested a qualified items of income, gain, retain their character as they pass from narrowing of the rule for certain deduction, or loss, and includes all of the entity to the taxpayer—even if the circumstances. Some commenters the items listed in both section taxpayer is not personally engaged in suggested that the payments should be 199A(c)(3) (exceptions from qualified the trade or business of the entity. QBI when the arrangement is structured items of income, gain, deduction, and Conversely, if an RPE is not engaged in as it would be with a third-party. Many loss) and section 199A(c)(4) (treatment a trade or business, income, gain, loss, commenters argued that section 707(a) of reasonable compensation and or deduction allocated to a taxpayer payments should be QBI when the guaranteed payments). As suggested by from such entity will not qualify for the partner who is providing services has its one commenter, the final regulations section 199A deduction even if the own business separate from that of the clarify that amounts received by an S taxpayer or an intervening entity is partnership. On a related note, one corporation shareholder as reasonable otherwise engaged in a trade or commenter suggested payments for compensation or by a partner as a business. As described in part II.A.3 of services should be QBI when the payment for services under sections this Summary of Comments and services provided are a different 707(a) or 707(c) are not taken into Explanation of Revisions, a trade or business from that of the partnership. account as qualified items of income, business for purposes of section 199A is Other commenters further suggested gain, deduction, or loss, and thus are generally defined by reference to the that payments should be QBI when the excluded from QBI. standards for a section 162 trade or partner is not primarily providing business. A rental real estate enterprise 8. Interaction of Sections 875(l) and services solely to one partnership. One that meets the safe harbor described in 199A commenter suggested that the rule Notice 2017–07, released concurrently excluding section 707(a) payments from Section 199A(c)(3)(A)(i) provides that with these final regulations, may also QBI should be narrowed to apply only for purposes of determining QBI, the treated as trades or businesses for in the context of SSTBs or if the term qualified items of income, gain, purposes of section 199A. Additionally, payments would be considered wages deduction, and loss means items of the rental or licensing of property if the by the partner, but that generally income, gain, deduction and loss to the property is rented or licensed to a trade payments from the partner’s qualified extent such items are effectively or business conducted by the individual trade or business should be QBI. One connected with the conduct of a trade or an RPE which is commonly commenter suggested that the or business within the United States controlled under § 1.199A–4(b)(1)(i) is regulations excluding section 707(a) (within the meaning of section 864(c), also treated as a trade or business for payments from QBI be applied only to determined by substituting ‘‘qualified purposes of section 199A. In addition to individuals and RPEs that are either (i) trade or business (within the meaning of these requirements, the items must be not otherwise engaged in a trade or section 199A’’ for ‘‘nonresident alien effectively connected to a trade or business of providing similar services to individual or a foreign corporation’’ or business within the United States as other consumers or (ii) whose for ‘‘a foreign corporation’’ each place it described in section 864(c). ownership interests in the partnership appears). The preamble to the proposed One commenter requested guidance exceed a de minimis amount. Another regulations provides that certain items coordinating section 199A with section commenter suggested that the exclusion of income, gain, deduction, and loss are 751(a) and the rules for dispositions of of section 707(a) payments be replaced treated as effectively connected income certain interests by foreign persons in with a narrowly tailored anti-abuse rule but are not with respect to a domestic section 864(c)(8). The proposed that would exclude from QBI section trade or business (such as items regulations provide that, with respect to 707(a) payments (i) paid to a partner attributable to the election to treat a partnership, if section 751(a) or (b) owning more than 50 percent of the certain U.S. real property sales as applies, then gain or loss attributable to capital or profits interests in the effectively connected pursuant to assets of the partnership giving rise to partnership and (ii) designed with a section 871(d)), and are thus not QBI ordinary income under section 751(a) or primary purpose of causing income that because they are not items attributable (b) is considered attributable to the would not otherwise have qualified as to a qualified trade or business for trades or businesses conducted by the QBI to be treated as QBI. purposes of section 199A. One partnership, and is taken into account The Treasury Department and the IRS commenter agreed with this for purposes of computing QBI. The decline to adopt these interpretation but requested additional commenter questioned whether income recommendations. As stated in the guidance on the interaction between treated as ordinary income under preamble to the proposed regulations, sections 875(l) and 199A, specifically section 751 for purposes of section payments under section 707(a) for whether the determination of whether 864(c)(8) should be QBI. The treatment
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of ordinary income under section 751 included in QBI and noted there could employee of an S corporation or the under subchapter N of chapter 1 of be further impacts depending on application or non-application of subtitle A of the Code is generally a whether the taxpayer is above or below assessable penalties applicable to tax function of section 864(c)(8). On the income thresholds. These return preparers is beyond the scope of December 27, 2018, the Federal Register commenters suggested that the final these final regulations. published a notice of proposed regulations should strive for equity 10. Items Treated as Capital Gain or rulemaking (REG–113604–18) at 83 FR between taxpayers operating businesses Loss 66647 under section 864(c)(8) (proposed in different entity structures. Finally, section 864(c)(8) regulations). The one commenter suggested the need for The proposed regulations provide that proposed section 864(c)(8) regulations additional guidance regarding whether any item of short-term capital gain, provide rules for determining the and how reasonable compensation paid short-term capital loss, long-term capital amount of gain or loss treated as to an S corporation shareholder is gain, or long-term capital loss, including effectively connected with the conduct considered wages for purposes of the any item treated as one of such items, of a trade or business within the United W–2 wage limitation. such as gains or losses under section States (‘‘effectively connected gain’’ or One commenter maintained that to 1231, that are treated as capital gains or ‘‘effectively connected loss’’) described avoid incentivizing minimization of losses, are not taken into account as a in section 864(c)(8), including rules compensation and Federal Insurance qualified item of income, gain, coordinating section 864(c)(8) with Contributions Act tax, the final deduction, or loss in computing QBI. sections 741 and 751 (relating to the regulations should provide that Several commenters suggested that character of gain or loss realized in deductions with respect to reasonable many technical complications arise connection with the sale or exchange of compensation should not reduce QBI. from the exclusion of section 1231 gain an interest in a partnership). Because The commenter stated that reasonable from QBI. Specifically, commenters the proposed section 864(c)(8) compensation must be added back in noted that whether a taxpayer has long- regulations apply the deemed sale calculating QBI. term capital gain or loss under section construct of section 751(a) to determine The Treasury Department and the IRS 1231 is determined at the taxpayer level whether gain or loss on the sale of a decline to adopt these suggestions. and not at the level of the various trades partnership interest is subject to tax Section 199A(c)(4) clearly excludes or businesses for which QBI is being under section 864(c)(8), the issue raised reasonable compensation paid to a determined. For example, if a taxpayer in this comment does not arise, and thus taxpayer by any qualified trade or has two businesses, the taxpayer may this comment is not adopted. The business of the taxpayer for services have section 1231 gains in one trade or Treasury Department and the IRS rendered with respect to the trade or business and section 1231 losses in the request further comments on the business from QBI. These amounts are other trade or business. One commenter interaction of section 199A and the attributable to a trade or business and suggested that both section 1231 gains proposed regulations under section are thus qualified items of deduction as and losses be included in the 864(c)(8) after the publication of those described in section 199A(c)(3) to the calculation of QBI regardless of whether proposed regulations. extent they are effectively connected they result in a capital or ordinary with the conduct of a trade or business amount when combined at the taxpayer 9. Reasonable Compensation within the United States and included level. The commenter asserts that this Several commenters were concerned or allowed in determining taxable approach would not affect the overall that an overlap of the QBI, W–2 wage income for the taxable year. In addition, limitation that restricts a taxpayer’s limitation, and reasonable reasonable compensation paid to a deduction to 20 percent of the excess of compensation rules for S corporations shareholder-employee is included as taxable income over net capital gain. would cause disparities between W–2 wages for purposes of the W–2 The Treasury Department and the IRS taxpayers operating businesses in wage limitation to the extent that the acknowledge the added challenges in different entity structures. These requirements of § 1.199A–2 are applying section 1231 in the context of commenters stated that the rules might otherwise satisfied. Further, guaranteed calculating QBI under section 199A. have the unintended consequence of payments and payments to independent Generally, under section 1231, a encouraging taxpayers to select or avoid contractors are not W–2 wages and taxpayer nets all of its section 1231 certain business entities. For example, therefore, cannot be counted for gains and losses from multiple trades or one commenter noted that the purposes of the W–2 wage limitation. businesses before determining their reasonable compensation requirement A few commenters were concerned ultimate character. In other words, the for S corporations favors S corporations about whether tax return preparers section 1231 determination is not made for purposes of the W–2 wage limitation would have the responsibility to closely until the taxpayer combines its section when calculating the section 199A examine whether compensation paid to 1231 gain or loss from all sources. This deduction, compared to sole a shareholder of an S corporation is does not change in the context of proprietorships and partnerships which reasonable before calculating the section section 199A. Thus, the section 1231 may not pay any wages. That 199A deduction, and whether tax return rules remain the same in the context of commenter suggested the final preparers could be subject to penalties. section 199A. For purposes of regulations include an election for One commenter suggested a small calculating QBI, taxpayers should partners or sole proprietors to treat an business safe harbor approach where continue to net their section 1231 gains amount of reasonable compensation certain cash method S corporations that and losses from their multiple trades or paid as wages for purposes of the W–2 treat at least 70 percent of dividend businesses to determine whether they wage limitation. Other commenters distributions to shareholder-employees have excess gain (which characterizes similarly noted the entity choice issue, as wages are deemed to satisfy the all of the gain or loss as capital and so but from the perspective that S reasonable compensation requirement of all are excluded from QBI) or excess loss corporations can be less advantageous. Rev. Rul. 74–44, 1974–1 C.B. 287. (which characterizes all of the gain or The commenters argued that QBI is Providing additional guidance with loss as ordinary and so all are included reduced for S corporation shareholders respect to what constitutes reasonable in QBI). As would be the case outside because reasonable compensation is not compensation for a shareholder- the section 199A context, the character
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tracks back to the trade or business that excluded from QBI if they are ordinary solely for the allocation of expenses. By disposed of the asset. income. Section 199A(c)(3)(B)(iv) and contrast, the rule described in § 1.199A– Another potential complication noted § 1.199A–3(b)(2)(ii)(D) provide that any 3(b)(5) requires the allocation of all by commenters is the section 1231(c) item of gain or loss described in section qualified items of income, gain, loss, recapture rule. Under the rule, a 954(c)(1)(C) (transactions in and deduction across multiple trades or taxpayer that has a section 1231 capital commodities) or section 954(c)(1)(D) businesses. Whether direct tracing or gain in the current year must look back (excess foreign currency gains) is not allocations based on gross income are to any section 1231 ordinary loss taken included as a qualified item of income, reasonable methods depends on the in the previous five years and convert a gain, deduction, or loss. Section facts and circumstances of each trade or portion of the current year section 1231 199A(c)(3)(B)(v) and § 1.199A– business. Different reasonable methods capital gain to ordinary gain, based on 3(b)(2)(ii)(E) provide any item of may be appropriate for different items. the previous losses taken. One income, gain, deduction, or loss Accordingly, the final regulations retain commenter asked for further guidance described in section 954(c)(1)(F) the rule in the proposed regulations. on how to allocate ordinary gains and (income from notional principal However, once a method is chosen for losses that may result from the section contracts) determined without regard to an item, it must be applied consistently 1231 calculation to multiple trades or section 954(c)(1)(F)(ii) and other than with respect to that item. The Treasury businesses. While the Treasury items attributable to notional principal Department and the IRS continue to Department and the IRS recognize the contracts entered into in transactions study this issue and request additional complexity in applying the section qualifying under section 1221(a)(7) is comments, including comments with 1231(c) recapture rules and allocating not included as a qualified item of respect to potential safe harbors. gain to multiple trades or businesses, income, gain, deduction, or loss. The Another commenter requested providing additional guidance with statutory language does not provide for guidance on when or how a method can respect to section 1231(c) is beyond the the ability to permit an exception to be changed from year to year if, for scope of these regulations. For purposes these rules based on the character of the example, it is no longer reasonable or no of determining whether ordinary income. Accordingly, income from longer clearly reflects income. The income is included in QBI, taxpayers foreign currencies and notional Treasury Department and the IRS should apply the section 1231(c) principal contracts described in the decline to adopt this comment as it is recapture rules in the same manner as listed sections is excluded from QBI, beyond the scope of these regulations. If they would otherwise. Notice 97–59, regardless of whether it is ordinary a method is no longer reasonable or no 1997–2 C.B. 309, provides guidance on income. longer clearly reflects income, the netting capital gains and losses and how 11. Reasonable Methods for Allocation method cannot continue to be used. The that netting incorporates the section individual or RPE must choose a new 1231(c) recapture rule. of Items Among Multiple Trades or Businesses method that is reasonable under the Given the specific reference to section facts and circumstances and apply it 1231 gain in the proposed regulations, The proposed regulations provide that consistently going forward. other commenters requested guidance if an individual or an RPE directly with respect to whether gain or loss conducts multiple trades or businesses, B. Qualified REIT Dividends under other provisions of the Code and has items of QBI which are properly 1. Regulated Investment Companies would be included in QBI. One attributable to more than one trade or commenter asked for clarification about business, the individual or RPE must A number of commenters requested whether real estate gain, which is taxed allocate those items among the several guidance that would allow a at a preferential rate, is included in QBI. trades or businesses to which they are shareholder in a RIC to take a section Additionally, other commenters attributable using a reasonable method 199A deduction with respect to certain requested clarification regarding based on all the facts and distributions or deemed distributions whether items treated as ordinary circumstances. The chosen reasonable from the RIC attributable to qualified income, such as gain under sections method for each item must be REIT dividends received by the RIC. 475, 1245, and 1250, are included in consistently applied from one taxable One of these commenters also suggested QBI. year to another and must clearly reflect that RICs should be able to pass through To avoid any unintended inferences, the income and expenses of each trade qualified PTP income. As noted in part the final regulations remove the specific or business. One commenter suggested II.A.2. of this Summary of Comments reference to section 1231 and provide that a reasonable approach to allocating and Explanation of Revisions, the final that any item of short-term capital gain, items that are not clearly attributable to regulations do not treat a RIC as an RPE, short-term capital loss, long-term capital a single trade or business could be the because a RIC is a C corporation, not a gain, or long-term capital loss, including cost allocation methods used in § 1.199– passthrough entity. However, any item treated as one of such items 4(b)(2). The commenter suggested that concurrently with the publication of under any other provision of the Code, the reasonableness standard could be these final regulations, the Treasury is not taken into account as a qualified applied to determine the allocation of Department and the IRS are publishing item of income, gain, deduction, or loss. items of QBI among multiple trades or elsewhere in this issue of the Federal To the extent an item is not treated as businesses. The commenter also Register proposed regulations under an item of capital gain or capital loss suggested a safe harbor allocation section 199A (REG–134652–18, RIN under any other provision of the Code, method allowing a taxpayer to bypass 1545–BP12) that address the payment it is taken into account as a qualified direct tracing if the amount of other by RICs of dividends that certain item of income, gain, deduction, or loss items of QBI that must be allocated is shareholders may include as qualified unless otherwise excluded by section below a pre-determined threshold, such REIT dividends under section 199A or these regulations. as a percentage of total QBI or a 199A(b)(1)(B). The pass through by RICs Similarly, another commenter specified dollar amount. of qualified PTP income would raise requested clarification regarding The Treasury Department and the IRS several novel issues and the commenter whether income from foreign currencies decline to adopt this comment as the suggesting that RICs be allowed to pass and notional principal contracts are rules under § 1.199–4 were intended through such income did not address
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how these issues should be resolved. to provide guidance to REITs and determine when a taxpayer may Accordingly, the proposed regulations brokers on how to report qualified REIT aggregate. The Treasury Department and do not provide for the pass through of dividends in instances in which it is the IRS decline to adopt this suggestion. qualified PTP income by RICs, but impractical to determine whether the For reasons stated in the proposed request comments on the issues that shareholder has met the requisite regulations (that is, the differences in would be presented if RICs were holding period. This guidance is the definition of trade or business, allowed to pass through qualified PTP expected to be similar to guidance section 469’s reliance on a taxpayer’s income. instructing a person required to make a level of involvement in the trade or business, and the use of separate rules 2. Meaning of Qualified REIT Dividend return under section 6042 to report a dividend as a qualified dividend on a for specified service trades or The proposed regulations provide that Form 1099–DIV if such person businesses), the Treasury Department a REIT dividend is not a qualified REIT determines that the recipient of the and the IRS do not consider the dividend if the stock with respect to dividend has satisfied the holding grouping rules under section 469 an which it is received is held for fewer period test in section 1(h)(11)(B)(iii) or appropriate method for determining than 45 days, taking into account the it is impractical for such person to make whether a taxpayer can aggregate trades principles of sections 246(c)(3) and (4). such determination. See Notice 2003– or businesses for purposes of applying One commenter interpreted the rule as 79, 2003–2 C.B. 1206; Notice 2004–71, section 199A. Another commenter requiring the REIT stock to have been 2004–2 C.B. 793 and Notice 2006–3, suggested looking to the controlled held at least 45 days prior to the 2006–1 C.B. 306. The Treasury group rules under section 414 rather dividend, and asked that the definition Department and the IRS also intend to than creating a new framework for of qualified REIT dividend not be inform REIT shareholders that they may aggregation. The Treasury Department conditioned on a 45-day holding period. receive Forms 1099–DIV reporting and the IRS decline to adopt the The commenter suggested that the qualified REIT dividends that are not controlled group rules under section reporting entity might not have actually qualified REIT dividends 414 as those rules are too specific to be sufficient information to determine because the shareholders have not met applied as a general aggregation rule whether the holding period was met and the holding period requirement. under section 199A. thus whether a particular dividend was The preamble to the proposed in fact a qualified REIT dividend. The V. Aggregation regulations requested comments on commenter also argued that the A. Overview whether the aggregation method proposed rule was not part of the described in § 1.199A–4 would be an statutory text and could create As described in part II of this appropriate grouping method for significant administrative burdens, Summary of Comments and Explanation purposes of sections 469 and 1411, in including in situations where there is no of Revisions, the final regulations addition to section 199A. One abuse and potentially subject a REIT or incorporate the principles of section 162 commenter suggested that the section broker to information reporting for determining whether a trade or 199A aggregation method would not be penalties. The commenter suggested two business exists for purposes of section an appropriate method for sections 469 alternatives. First, the section 199A 199A. A taxpayer can have more than and 1411 because the primary focus of deduction could be disallowed to the one section 162 trade or business. See grouping under those sections is based extent it offsets short-term capital gains. § 1.446–1(d)(1). Multiple trades or on the taxpayer’s level of participation. Second, the holding period could be businesses can also be conducted within Another commenter, noting that the eliminated as part of the definition of one entity. A trade or business, standard for aggregation under the qualified REIT dividend and the however, cannot generally be conducted proposed regulations is narrower than Treasury Department and the IRS could across multiple entities for tax purposes. the section 469 grouping requirements, be given authority to disallow the The preamble to the proposed recommended that taxpayers be deduction in the event that the taxpayer regulations acknowledges that it is not permitted to adopt their section 199A held the stock for the period specified uncommon for what may be thought of aggregation for purposes of section 469. in section 246(c)(1)(A). as single trades or businesses to be The commenter stated that this would The Treasury Department and the IRS operated across multiple entities, for provide taxpayers with an option to have determined that a holding period various legal, economic, or other non- mitigate the administrative burden of for REIT stock with respect to which a tax reasons. It is because trades or multiple grouping rules. The Treasury qualified REIT dividend is received is businesses may be structured this way Department and the IRS continue to appropriate in order to prevent abuse. that the proposed regulations permit study this issue and request additional The holding period in the proposed aggregation. comments. regulations requires holding the stock The proposed regulations provide a no fewer than any 45 days, not set of rules under which an individual B. General Rules necessarily the 45 days prior to the REIT can aggregate multiple trades or The proposed regulations provide dividend. To provide additional businesses for purposes of applying the rules that allow a taxpayer to aggregate certainty regarding the holding period W–2 wage and UBIA of qualified trades or businesses based on a 50- requirements, these final regulations property limitations described in percent ownership test, which must be define the requisite holding period for § 1.199A–1(d)(2)(iv). Based on maintained for a majority of the taxable the REIT stock as the period described comments received, the final regulations year. The final regulations clarify that in section 246(c)(1)(A). Generally, use of retain these rules with modifications as majority of the taxable year must a holding period to prevent abuse is described in the remainder of this part include the last day of the taxable year. consistent with established principles V. The Treasury Department and the IRS One commenter requested guidance on under the Code, and the application of received comments in support of the whether each individual included in these principles and the duration of the aggregation rules generally, though making the ownership determination holding period should be familiar to some commenters suggested that the must own an interest in each trade or affected entities. Furthermore, the grouping rules described in the business to be aggregated. Another Treasury Department and the IRS intend regulations under section 469 be used to commenter suggested that to avoid
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abuse in situations where actual purposes of the 50 percent ownership applying the W–2 wages and UBIA overlapping ownership is low, anyone test. Another commenter recommended limitations. The commenter who owns less than 10 percent of the defining ‘‘directly or indirectly’’ as used recommended that at a minimum, the value of an enterprise could be excluded in the proposed regulations by reference prohibition be removed for taxpayers from the group of owners whose to a specific ownership rule. The final within the phase-in range and that ownership is considered in testing. The regulations address these taxpayers should be permitted to commenter suggested clarification or recommendations by requiring that the aggregate SSTBs with other SSTBs for modification of the overlapping same person or group of persons, reporting purposes. The Treasury ownership requirement including by directly or by attribution through Department and the IRS decline to requiring a minimum ownership sections 267(b) or 707(b), own 50 adopt the recommendation to allow threshold of the trades or businesses, or percent or more of each trade or SSTBs to aggregate as doing so would that the 50 percent test use each owner’s business. A C corporation may increase administrative burden and lowest interest in the RPE. The constitute part of this group. complexity without providing ownership rule in the proposed In addition, the proposed regulations significant benefit. Aggregation is regulations does not require that every require that all items attributable to intended to assist taxpayers in applying person involved in the ownership aggregated trades or businesses be the W–2 wage and UBIA of qualified determination own an interest in every reported on returns for the same taxable property limitations. A taxpayer with trade or business. The rule is satisfied year. Several commenters recommended taxable income below the threshold so long as one person or group of that this requirement be removed, amount does not need to apply the W– persons holds a 50 percent or more arguing that trades or businesses that 2 wage and UBIA of qualified property ownership interest in each trade or meet the ownership and factor tests limitations and therefore will not business. The Treasury Department and could have different taxable years. The benefit from aggregation. Further, the the IRS decline to require a minimum Treasury Department and the IRS Treasury Department and the IRS ownership threshold for purposes of the decline to adopt this recommendation decline to adopt the recommendation ownership test as the abuse potential is because the aggregation rules are that the prohibition on aggregation of outweighed by the administrative intended for use in applying the W–2 SSTBs be removed for taxpayers with complexity such a rule would create. wage and UBIA of qualified property taxable income within the phase-in The Treasury Department and the IRS limitations. As described in § 1.199A– range as taxpayers may have taxable note that trades or businesses to be 2(b), W–2 wages are determined based income within the phase-in range for aggregated must meet all of the on a calendar year. Allowing trades or some taxable years and taxable income requirements of § 1.199A–4, not just the businesses with different taxable years that exceeds the phase-in range in other ownership requirement. to aggregate would require special rules taxable years. Other commenters suggested that for apportioning W–2 wages for aggregation should be allowed for trades purposes of applying the W–2 wage To determine whether trades or or businesses that do not meet the limitation. Accordingly, the final businesses may be aggregated, the common ownership test if the general regulations retain the requirement that proposed regulations provide that partner or managing member is the same all of the items attributable to each trade multiple trades or businesses must, for each entity. The Treasury or business to be aggregated are reported among other requirements, satisfy two Department and the IRS decline to on returns at the trade or business level of three listed factors, which adopt this recommendation. The with the same taxable year, not taking demonstrate that the businesses are part aggregation rules are intended to allow into account short taxable years. One of a larger, integrated trade or business. aggregation of what is commonly commenter asked for clarification These factors include: (1) The thought of as a single trade or business regarding whether the majority of the businesses provide products and where the business is spread across taxable year requirement refers to the services that are the same (for example, multiple entities. Common ownership is taxable year of the taxpayer claiming the a restaurant and a food truck) or an essential element of a single trade or deduction or of the RPE reporting the customarily provided together (for business. items. The aggregation rules are applied example, a gas station and a car wash); Several commenters noted that the at the trade or business level. (2) the businesses share facilities or family attribution rules under section Accordingly, the majority of the taxable share significant centralized business 199A do not include grandparents, year requirement refers to the individual elements (for example, common siblings, or adopted children. One or RPE that conducts the trade or personnel, accounting, legal, commenter requested clarification that business to be aggregated. manufacturing, purchasing, human the family attribution rules would not The proposed regulations also provide resources, or information technology cause an aggregated trade or business to that an SSTB cannot be aggregated. One resources); or (3) the businesses are cease to qualify for aggregation when commenter requested guidance on operated in coordination with, or children and grandchildren reached whether SSTBs with de minimis gross reliance on, other businesses in the adulthood. A few commenters requested receipts are permitted to aggregate. A aggregated group (for example, supply guidance on the manner in which trade or business with gross receipts chain interdependencies). Some beneficial interests in trusts are from a specified service activity below commenters expressed support for the considered for purposes of the common the de minimis thresholds described in factors in the proposed regulations ownership rule. Other commenters § 1.199A–5(c)(1) is not treated as an while others suggested modifications to suggested that the attribution rules in SSTB and therefore may be aggregated the test. One commenter questioned sections 267 and 707 should be used in under the rules described in § 1.199A– whether, to meet the first factor, trades place of the family attribution rule. 4. Another commenter suggested that or businesses must provide both Another commenter suggested that final the prohibition on aggregation for products and services that are the same. regulations provide a specific SSTBs is unnecessary because a Another commenter noted that it is attribution rule that treats owners of taxpayer must combine W–2 wages and unclear how to apply the first factor entities as owning a pro rata share of UBIA of qualified property for the with respect to real estate as real estate any business owned by the entity for aggregated trade or business prior to is neither a product nor a service. In
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response to these comments, the final C. Aggregation by RPEs aggregate or failed to report an regulations describe the first factor as Multiple commenters recommended aggregation. Several commenters products, property, or services that are that RPEs be permitted to aggregate at suggested that taxpayers be required to the same or customarily offered the entity level. One commenter file only one disclosure in the first year together. Additionally, the final suggested that allowing aggregation at the taxpayer chooses to aggregate and regulations add examples clarifying the entity level would reduce reporting that any subsequent aggregation when a real estate trade or business requirements if the owners or information be reported on the same satisfies the aggregation rules. Other beneficiaries of the entity were required form used to report a taxpayer’s section commenters requested additional to follow the entity’s aggregation. The 199A deduction. Further, these guidance on whether certain fact commenter also suggested that entity commenters suggested that taxpayers be patterns regarding specific trades or aggregation would help non-majority allowed to remedy a failure to provide businesses would satisfy a particular owners by allowing them to benefit from the required information by filing an factor. The Treasury Department and the aggregation without requiring the entity amended return or upon examination, IRS decline to address specific fact to provide ownership information. provided that the taxpayer can establish patterns or trades or businesses because Another commenter suggested that reasonable cause for the failure. One this test is based on all the facts and reporting would be simplified if commenter recommended that any circumstances. Therefore, specific rules aggregation was allowed at the entity required aggregation information be would be impractical and imprecise. level when it is known that the owners reported on a form for the section 199A Similarly, the Treasury Department and want to aggregate. A third commenter deduction instead of as a separate the IRS decline to define ‘‘significant’’ suggested that aggregation should be statement. Additionally, commenters in terms of centralized business allowed where each owner provides requested guidance as to whether a elements in the second factor because consent, including through provisions taxpayer is required to aggregate in its the answer is dependent on the facts in the operating agreements. Another first year and if the failure to aggregate and circumstances of each combination commenter suggested that if entity level precludes aggregation in a later year. of trades and businesses. aggregation is not allowed generally, an Finally, one commenter requested Another commenter suggested that exception should be made for guidance regarding when a taxpayer operational interdependence could be disregarded and wholly-owned entities. could re-aggregate. The commenter determined more precisely by using The Treasury Department and the IRS suggested that options could include tests such as the twelve factor test agree that aggregation should be allowed during an open season; after a change in outlined in § 1.469–4T(g)(3). The at the entity level. Accordingly, the final circumstances; under a formal process commenter noted that such a test would regulations permit an RPE to aggregate similar to a change in accounting be less likely to inappropriately trades or businesses it operates directly method; or based on a list of preclude a section 199A deduction. or through lower-tier RPEs. The circumstances that would allow for Other commenters suggested that resulting aggregation must be reported automatic permission to re-aggregate. taxpayers be permitted to aggregate by the RPE and by all owners of the Based on these comments, the final when two of the four factors are met. RPE. An individual or upper-tier RPE regulations provide that a taxpayer’s The Treasury Department and the IRS may not separate the aggregated trade or failure to aggregate trades or businesses have carefully considered alternatives, business of a lower-tier RPE, but instead will not be considered to be an including the factors outlined in must maintain the lower-tier RPE’s aggregation under this rule; that is, later § 1.469–4T(g)(3). Aggregation of aggregation. An individual or upper-tier aggregation is not precluded. The final multiple trades or businesses is not RPE may aggregate additional trades or regulations do not generally allow for an provided for in the statutory text, but businesses with the lower-tier RPE’s initial aggregation to be made on an was added to the regulations to enhance aggregation if the rules of § 1.199A–4 are amended return as this would allow administrability for taxpayers and the otherwise satisfied. Each RPE in a tiered aggregation decisions to be made with IRS in situations when what is thought structure is subject to the disclosure and the benefit of hindsight. A taxpayer who of as a single trade or business is reporting requirements in § 1.199A– fails or chooses not to aggregate in Year operated across multiple entities for 4(c)(1). Further, as discussed in part 1 can still choose to aggregate in Year various legal, economic, or other non- II.C.1 of this Summary of Comments and 2 or other future year (but cannot amend tax reasons. Aggregation is optional and Explanation of Revisions, returns to choose to aggregate for Year the inability to aggregate does not § 1.199A–1(e)(2) of the final regulations 1). A taxpayer who chooses to aggregate preclude a taxpayer with QBI from provides that an entity with a single must continue to aggregate each taxable multiple trades or businesses from owner that is treated as disregarded as year unless there is a material change in claiming a section 199A deduction on an entity separate from its owner under circumstances that would cause a the separate trades or businesses to the any other provision of the Code is change to the aggregation. However, the extent otherwise allowed by section disregarded for purposes of section Treasury Department and the IRS 199A and these regulations. The 199A and §§ 1.199A–1 through acknowledge that many individuals and Treasury Department and the IRS 1.199A–6. RPEs may be unaware of the aggregation believe that reducing the required rules when filing returns for the 2018 number of factors would allow the D. Reporting and Disclosure taxable year. Therefore, the IRS will aggregation of trades or businesses that The proposed regulations require allow initial aggregations to be made on are not owned and operated as consistent reporting of aggregated trades amended returns for the 2018 taxable integrated businesses. Conversely, or businesses. Each individual who year. The final regulations retain the adding new factors would increase chooses to aggregate must attach a annual disclosure requirement and, in complexity and burden for both statement to their return annually order to provide flexibility as forms and taxpayers and the IRS. Accordingly, the identifying each trade or business to be instructions change, allow the final regulations retain the factors aggregated. A few commenters Commissioner to require disclosure of provided in the proposed regulations, requested clarification of these rules in information on aggregated trades or modified to take real estate into account. situations in which a taxpayer did not businesses as provided in a variety of
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formats including forms, instructions, or Department and the IRS also decline to any expansion beyond these definitions published guidance. The final adopt the commenter’s suggestion that is contrary to legislative intent as regulations contain similar reporting the final regulations include an expressed in ‘‘Tax Cuts and Jobs Act,’’ and disclosure rules for RPEs. additional anti-abuse rule that would Statement of Managers to the The preamble to the proposed allow the Commissioner to aggregate Conference Report to Accompany H.R. regulations requested comments on trades or business in cases in which a 1, H.R. Rept. 115–466 (Dec. 15, 2017), p. whether reporting requirements should division of the taxpayer’s trades or 216–222. These commenters argue that be imposed on RPEs requiring majority businesses is used in conjunction with the Statement of Managers notes that the owners to provide information about all the aggregation rules with a principal committee adopted the Senate of the other RPEs in which they hold a purpose of increasing the taxpayer’s Amendment and described the section majority interest. One commenter stated section 199A deduction. As explained 448 regulations as an indicator of the that the extra time and cost of imposing in part II.D. of this Summary of meaning of services in the health, additional reporting requirements on Comments and Explanation of performing arts, and consulting fields aggregated trades or businesses would Revisions, taxpayers and entities can referenced in section 1202(e)(3)(A) as not be worth the potential benefit a non- have more than one trade or business. incorporated by section 199A. The majority owner may gain by having such The suggested anti-abuse rule is overly Treasury Department and the IRS information. Another commenter broad and would create unnecessary decline to adopt these comments. While suggested that the need for such a rule complexity for both taxpayers and the the Statement of Managers does would be reduced if the final IRS. reference § 1.448–1T(e)(4), nothing in regulations allowed aggregation by E. Examples the language of the report limits the RPEs. The Treasury Department and the definitions for purposes of section 199A IRS agree with these comments. The proposed regulations provide to those provided in § 1.448–1T(e)(4). Accordingly, the final regulations do not several examples of the aggregation Section 199A does not reference section adopt a rule requiring the disclosure of rules. One commenter noted that 448; instead, section 199A incorporates such information to non-majority proposed § 1.199A–4(b)(1)(i) refers to section 1202(e)(3)(A) with owners. the capital or profits of a partnership modifications. The Treasury Department The proposed regulations permit the while the examples refer to the capital and the IRS believe it is appropriate to Commissioner to disaggregate trades or and profits of a partnership. The look to the definitions provided for in businesses if a taxpayer fails to attach language in the examples was intended the regulations under section 448 to demonstrate that the taxpayers were the required annual disclosure. The because guidance under section 1202 is sharing proportionately in all items. For preamble to the proposed regulations limited. However, as stated in the clarification, the final regulations retain requested comments on an preamble to the proposed regulations, administrable standard under which the reference to capital or profits in the existing guidance under section 448 trades or businesses will be § 1.199A–4(b)(1)(i) and update the is not a substitute for guidance under disaggregated. One commenter examples to remove the references to section 199A. suggested that a disaggregation rule is capital and profits. unnecessary because the Commissioner The intent of section 448 and the VI. Specified Service Trades or can always assert that an aggregation intent of section 199A are different. Businesses and the Trade or Business of that was inappropriate should be Section 448 prohibits certain taxpayers Being an Employee disregarded. The commenter suggested from computing taxable income under that the Treasury Department and the A. Definition of Specified Service Trade the cash receipts and disbursements IRS consider a rule allowing the or Business method of accounting. Qualified Commissioner to aggregate trades or personal services corporations are 1. In General businesses in which the taxpayer excluded from this prohibition. Section engages in a transaction or series of The proposed regulations provide 448(d)(2) defines the term qualified transactions to divide trades or definitional guidance on the meaning of personal service corporation to include businesses in a manner that allows the a trade or business involving the certain employee-owned corporations, taxpayer to use the aggregation rules to performance of services in each of the substantially all of the activities of artificially increase the taxpayer’s fields listed in section 199A(d)(2). which involve the performance of section 199A deduction. Multiple commenters requested services in the fields of health, law, The Treasury Department and the IRS guidance on whether specific trades or engineering architecture, accounting, decline to adopt both of these businesses would constitute SSTBs. In actuarial sciences, performing arts, or suggestions. Although the Treasury many cases, the determination of consulting. By contrast, section 199A Department and the IRS agree with the whether a specific trade or business is provides a deduction based on QBI from commenter that the Commissioner can an SSTB depends on whether the facts a qualified trade or business. For always assert that an inappropriate and circumstances demonstrate that the taxpayers with taxable income above the aggregation should be disregarded, the trade or business is in one of the listed phase-in range, an SSTB is not a reporting requirements, including the fields. Although the Treasury qualified trade or business. Section disaggregation rule, are necessary for the Department and the IRS understand the 199A, through reference to section 1202, Commissioner to administer section desire for certainty, because the defines an SSTB as a trade or business 199A in accordance with the statutory determination of whether a particular involving the performance of services in intent. The final regulations clarify that trade or business is an SSTB is factually the fields of health, law, accounting, the disaggregation is not permanent by dependent, this analysis is beyond the actuarial science, performing arts, providing that trades or businesses that scope of these regulations. consulting, athletics, financial services, are disaggregated by the Commissioner Several commenters argued that the brokerage services, or any trade or may not be re-aggregated for the three meaning of performance of services in business where the principal asset of subsequent taxable years, similar to the the various fields should be limited to such trade or business is the reputation typical period during which a tax return the definitions provided in § 1.448– or skill of one or more of its employees may be audited. The Treasury 1T(e)(4). A few commenters noted that or owners. The trade or business of the
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performance of services that consist of 2. Health level of the performance of services in investing and investment management, Multiple commenters submitted the field of health. trading, or dealing in securities (as comments requesting additional Several commenters asked for defined in section 475(c)(2)), guidance on the meaning of clarification regarding when two partnership interests, or commodities performance of services in the field of separate activities would generally be (as defined in section 475(e)(2)) is also health. Several commenters viewed separately, particularly in the defined as an SSTB for purposes of recommended that the definition of the context of health care facilities such as section 199A. Further, section 199A performance of services in the field of emergency centers, urgent care centers, looks to the trade or business of health should differentiate between and surgical centers that provide performing services involving one or institutional health care providers (such improved real estate and equipment but more of the listed fields, and not the as skilled nursing homes), which bill on do not directly provide treatment or performance of services themselves in a fee-for-service or per diem-basis, diagnostic care to service recipients. determining whether a trade or business versus health care providers who One commenter noted that there is is an SSTB. The designation of a trade provide and bill for professional precedent under section 469 for or business as an SSTB applies to services (such as a physician’s practice). distinguishing between the provision of owners of the trade or business, Another commenter suggested a direct treatment and diagnostic care regardless of whether the owner is distinction between these types of versus the business of providing passive or participated in any specified providers based on whether the trade or services or facilities ancillary to direct service activity. Accordingly, it is both business had made the capital care, even if the physicians own an necessary and consistent with the investment necessary to function as a interest in the entity owning the statute and the legislative history to custodial institution. One commenter facilities. The commenter suggested that expand the definitions of the fields of recommended the definition be the final regulations provide examples services listed in section 199A(d)(1) and restricted to health care providers who or other clarification regarding when (2) and § 1.199A–5 beyond those derive a majority of their revenue from these and similar facilities will be provided in § 1.448–1T(e)(4). billing patients and third party payers treated as performing services in the field of health, particularly if one of the One commenter suggested that in for professional services, thereby owners of a facility also performs order to provide certainty and further excluding health care providers who medical services in the facility. The economic growth, the final regulations derive a majority of their revenue from final regulations provide an additional should include a franchising example to billing for institutional services (skilled example of an outpatient surgical center clarify that a franchisor will not be nursing facilities, hospitals, ambulatory demonstrating a fact pattern that the considered to be an SSTB based solely surgery centers, home health care Treasury Department and the IRS do not on the selling of a franchise in a listed agencies, outpatient radiology centers, believe is a trade or business providing field of service. The Treasury and hospice agencies). services in the field of health. Department and the IRS adopt this Commenters noted the many services comment and have included a that skilled nursing facilities and Several commenters requested franchising example in the final assisted living facilities provide are clarification regarding whether a retail regulations. unrelated to health care, including pharmacy selling pharmaceuticals or housing, meals, laundry facilities, medical devices is engaged in a health Finally, the final regulations add two security, and socialization activities. In service trade or business. One rules of general application. First, the some cases, skilled nursing and similar commenter suggested that final final regulations specify that the rules facilities may make available regulations include an example of when for determining whether a business is an independent contractors who provide a pharmacist would be considered in SSTB within the meaning of section services related to health care available the health profession. The commenter 199A(d)(2) apply solely for purposes of to patients, without the facility agreed that a pharmacist working as an section 199A and therefore, may not be receiving any payment or revenue with independent contractor at various taken into account for purposes of respect to such services. Another pharmacies, a pharmacist providing applying any other provision of law, commenter suggested that skilled inoculations directly to the patient, and except to the extent that another nursing facilities, assisted living, and a consulting pharmacist working as an provision expressly refers to section similar facilities should be excluded independent contractor would all be 199A(d). Second, the final regulations from the definition of services in the examples of a pharmacist engaged in an include a hedging rule that is applicable field of health unless 95 percent or more SSTB. Another commenter stated that to any trade or business conducted by of the time spent by employees of the the inclusion of pharmacists in the an individual or an RPE. The hedging facility are directly related to providing definition might be overbroad, rule provides that income, deduction, medical care. suggesting that a pharmacist who was gain, or loss from a hedging transaction The Treasury Department and the IRS also a pharmacy owner generating entered into in the normal course of a agree that skilled nursing, assisted revenue from selling pharmaceuticals or trade or business is included as income, living, and similar facilities provide medical devices would not be engaged deduction, gain, or loss from that trade multi-faceted services to their residents. in an SSTB while a pharmacist or business. A hedging transaction for Whether such a facility and its owners operating as a consultant and paid as an these purposes is defined in § 1.1221– are in the trade or business of independent contractor would be 2(b) and the timing rules of § 1.446–4 performing services in the field of engaged in an SSTB. A third commenter are also applicable. health requires a facts and suggested that a pharmacist working as The remainder of this part VI.A. circumstances inquiry that is beyond an independent contractor for several responds to those comments advocating the scope of these final regulations. The pharmacies would not be performing that a specific category of trade or final regulations provide an additional services in the field of health unless the business should be excluded from one example of one such facility offering pharmacists provides medical services, of the listed fields in section 199(d)(2) services that the Treasury Department such as inoculations, directly to a or from the SSTB provisions entirely. and the IRS do not believe rises to the patient.
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The Treasury Department and the IRS the performance of these services. The health as this is a question of fact. agree that the sale of pharmaceuticals ruling also describes the definition of However, the final regulations do and medical devices by a retail the performance of services in the field include an additional example related to pharmacy is not by itself a trade or of health contained in § 1.448– laboratory services. business performing services in the field 1T(e)(4)(ii) and holds that a corporation 3. Accounting of health. As the commenters note, whose employees perform veterinary however, some services provided by a services is a qualified personal service One commenter suggested that real retail pharmacy through a pharmacist corporation within the meaning of estate settlement agents should be are the performance of services in the sections 448(d)(2) and 11(b)(2) and a excluded from the definition of those field of health. The final regulations personal service corporation within the who perform services in the field of provide an additional example of a meaning of section 441(i). Accordingly, accounting. The commenter pharmacist performing services in the the Treasury Department and the IRS recommended that final regulations field of health. believe that it is appropriate to continue define the performance of services in Another commenter argued that gene the long-standing treatment of the field of accounting as the therapy and similar injectable products veterinary services as the performance performance of core accounting services such as stem cell therapy and RNA- of services in the field of health for such as bookkeeping (including data based therapies manufactured or purposes of section 199A and these final entry), write-up work, review services, produced from the patient’s body itself regulations. and attest functions, as well as tax should be treated in the same manner as Another commenter noted that there preparation and similar functions. As an pharmaceuticals. The commenter is a dividing line between physical alternative, the commenter recommends argued that their manufacture and therapists and other health-related that settlement agents be added as not production should not be treated as an occupations. For example, constituting the practice of accounting. SSTB, regardless of whether they take reimbursement rates from third-party A second commenter stated that the place in a hospital or in a separate payers are higher for doctors, nurses, definition of accounting should be production facility. The Treasury and dentists. The commenter also noted narrowed to the ordinary meaning of Department and the IRS decline to that Congress initially attempted to accounting. This comment noted that adopt this recommendation as this is a exclude physical therapists from the field of accounting should include question of facts and circumstances. participating in Medicare and Medicaid bookkeeping and financial statement Another commenter argued that incentive programs and health service preparation, but not tax return advice veterinary medicine should not be student loan forgiveness programs. The and preparation. A third commenter considered an SSTB. The commenter Treasury Department and the IRS noted that the proposed regulations treat stated that delivery of veterinary care is decline to adopt this comment as bookkeeping services, which do not different than delivery of human health multiple health services are reimbursed require professional training or license, care because veterinary patients are differently, but are still within the field as an accounting service. The property and the nature of the animal of health. commenter argued that if the intent of may dictate the level of veterinary care One commenter suggested that section 199A is to create parity between provided by the owner. Most veterinary services are not performed in the field C corporations and passthrough entities, practices have other streams of income of health unless services are performed the regulations should narrowly define such as retail, laboratory and diagnostic directly to a patient. As an example, the SSTBs, as was done for reputation and services, boarding and grooming commenter argued that a physician who skill, and not expand the definitions services, and pharmacies, and the reads x-rays for another physician but beyond what was expressly commenter expressed concern that it does not work directly with the patient contemplated by Congress. would be difficult for veterinarians to would not be performing a service in the The Treasury Department and the IRS segregate those other streams of income. field of health. Another commenter decline to adopt these comments. As The commenter noted that animal stated that defining services in the field noted in the preamble to the proposed boarding and grooming would of health by proximity to patients could regulations, the provision of services in ordinarily generate income eligible for lead to arbitrary results, pointing out the field of accounting is not limited to the deduction and that should not that a radiologist who acts as an expert services requiring state licensure. It is change when services are provided by a consultant to a physician engages in the based on a common understanding of veterinarian. The commenter also stated same exercise of medical skills and accounting, which includes tax return that Federal health legislation does not judgment as a physician who sees and bookkeeping services. Whether a apply to veterinarians unless the patients. The commenter suggested that real estate settlement agent is engaged in legislation specifically refers to technicians who operate medical the performance of services in the field veterinarians, veterinary medicine, or equipment or test samples, but are not of accounting depends on the facts and animal health. Finally, the commenter required to exercise medical judgment circumstances including the specific noted that § 1.448–1T(e)(4)(ii) does not should not be considered as performing services offered and performed by the reference veterinarians, suggesting that services in the field of health. The trade or business. this is an indication that Congress did Treasury Department and the IRS agree not intend for veterinary medicine to be with the second commenter that 4. Actuarial Science treated as a business in the field of proximity to patients is not a necessary The proposed regulations provide that health. component of providing services in the the performance of services in the field Issued nearly three decades ago, Rev. field of health. Accordingly, the final of actuarial science means the provision Rul. 91–30, 1991–1 C.B. 61, described a regulations remove the requirement that of services by individuals such as corporation in which employees spend medical services be provided directly to actuaries and similar professionals all of their time in the performance of the patient. The final regulations do not performing services in their capacity as veterinary services, including diagnostic adopt the suggestion that technicians such. One commenter stated that the and recuperative services as well as who operate medical equipment or test definition creates uncertainty for activities, such as the boarding and samples are not considered to be businesses that employ actuaries but do grooming of animals, that are incident to performing services in the field of not separately bill for the services (such
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as insurance businesses). The making their personnel structures more the IRS agree with the commenter that commenter recommended providing a efficient, does not provide any many service-based businesses could be rule similar to the rule for consulting temporary workers, and C’s construed as providing professional services related to the manufacture and compensation and fees are not affected advice and counsel to clients to assist sale of goods for actuarial science. The by whether C’s clients use temporary the client in achieving goals and solving Treasury Department and the IRS workers. The commenter argued that problems; however, the Treasury decline to adopt this comment as such a change would prevent the Department and the IRS decline to section 199A looks to the trade or example from being interpreted as adopt the recommendation to limit the business of performing services rather treating any recommendation for a consulting field based on NAICS codes. than the performance of services business to use temporary workers as Section 1.199A–5(b)(2)(vii) excludes the themselves. As stated in the preamble to consulting services. The commenter also performance of services other than the proposed regulations, the field of suggested that the final regulations providing advice and counsel from the actuarial science does not include the include an additional example similar field of consulting. At issue is whether provision of services by analysts, to Example 7 of § 1.448–1T(e)(4)(iv)(B) advice and counsel is provided in the economists, mathematicians, and related to staffing firms. The commenter context of the provision of goods or statisticians not engaged in analyzing or recommended that the example provide services (that are not otherwise SSTBs). assessing the financial cost of risk or that a business that assists other This is a question of facts and uncertainty of events. The mere businesses in meeting their personnel circumstances. Consulting services that employment of an actuary does not needs by referring job applicants to are separately billed are generally not itself cause a trade or business to be them does not engage in the considered to be provided in the context treated as performing services in the performance of services in the field of of the provisions of goods or services. field of actuarial science. Whether a consulting when the compensation for 7. Athletics trade or business is providing actuarial the business referring job applicants is services is a question of fact and based on whether the applicants accept A few commenters suggested that the circumstance. employment positions with the definition of a trade or business businesses searching for employees. The involving the performance of services in 5. Performing Arts final regulations adopt these the field of athletics should not include Multiple commenters stated that the suggestions. the trade or business of owning a definition of performance of services in Another commenter suggested that professional sports team. One the field of performing arts should be final regulations clarify whether commenter stated that the definition limited to the definition in § 1.448– services provided by engineers and should be limited to entities that are 1T(e)(4)(iii). One commenter argued that architects could be considered to be an either owned or controlled by, or whose the position in the proposed regulations SSTB if their services meet the primary beneficiaries are, professional that includes individuals who definition of consulting services. The athletes or that involve the performance participate in the creation of the Treasury Department and the IRS adopt of services by those athletes; in other performing arts is not supported by the this comment. Section 1.199A– words, the definition should apply legislative history, namely the 5(b)(2)(vii) of the final regulations solely to athletes’ personal services Statement of Managers that references provides that services within the fields companies. the section 448 regulations. As of architecture and engineering are not Another commenter recommended described in part VII.A.1. of this treated as consulting services for that § 1.199A–5(b)(3) Example 2 be Summary of Comments and Explanation purposes of section 199A. revised to reflect that neither sports of Revisions, the Treasury Department One commenter suggested that the clubs nor club owners perform services and the IRS decline to limit the definition of consulting should be described in section 1202(e)(3)(A). The definition of the performance of services narrowed to stand-alone advice and commenter stated that a professional in the field of performing arts to the counsel with no link to production, sports club and its owners do not definition in § 1.448–1T(e)(4)(iii). manufacturing, sales, or licensing of perform services in the field of athletics. Another commenter suggested that products. The Treasury Department and Instead, a sports club sells tickets, writers should fall outside the definition the IRS decline to adopt this suggestion licenses, sponsorships, and other of the performance of services in the as it would be difficult to administer intellectual property, creates digital field of performing arts because writing and subject to manipulation. Another content, engages in community does not require a skill unique to the commenter suggested that the phrase activities, manages a stadium, and creation of performing arts. Further, ‘‘provision of professional advice and produces an entertainment product. The writers create a wide variety of works counsel to clients to assist the client in commenter argued that Congress not intended to be performed before an achieving goals and solving problems’’ intended through the SSTB rules to audience. The Treasury Department and is overly broad as it could apply to prevent W–2 wage income from being the IRS also decline to adopt this almost any service-based business that converted to QBI and that only the trade comment. To the extent that a writer is assists clients in achieving goals and or business of an athlete involves W–2 paid for written material, such as a song solving problems. The commenter stated wage income from athletic performance. or screenplay, that is integral to the that applying the ancillary rule would The commenter continued, stating that creation of the performing arts, the be difficult where a taxpayer is required professional sports clubs are not writer is performing services in the field to separately bill for embedded described in section 1202(e)(3)(A) or of performing arts. consulting services under state or local provided in section 448(d)(2)(A). sales tax laws. The commenter The Treasury Department and the IRS 6. Consulting suggested that the consulting field decline to adopt this comment. As One commenter suggested that should be limited to taxpayers that fall described in part VII.A.1. of this proposed § 1.199A–5(b)(3), Example 3, under a consulting-related business Summary of Comments and Explanation should be modified to clarify that C, a activity code under the North American of Revisions, the Treasury Department taxpayer in the business of providing Industry Classification Systems and the IRS do not believe that services that assist unrelated entities in (NAICS). The Treasury Department and definitional guidance should be limited
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to that provided in § 1.448–1T(e)(4)(i) section 199A. Another commenter capacity as such are not brokers in (by analogy to performing arts for suggested that insurance should be securities for purposes of section 199A. athletics). While sports club and team categorically excluded from the Other commenters requested the final owners are not performing athletic meaning of financial services because regulations clarify that the business of services directly, that is not a insurance is described in section financing or making loans, including the requirement of section 199A, which 1202(e)(3)(B). The Treasury Department services provided by mortgage banking looks to whether there is income and the IRS agree that by operation of companies, does not fall within the attributable to a trade or business section 1202(e)(3)(B), insurance cannot definition of brokerage services. The involving the performance of services in be considered a financial service for Treasury Department and the IRS a specified activity, not who performed purposes of section 199A. The address this comment in the final the services. A professional sports club commenter also suggested that a rule regulations by explicitly stating that may operate more than one trade or similar to the ancillary services rule for although the performance of services in business. For example, a team may consulting should be extended to cover the field of financial services does not operate its concession services as a financial services. Another commenter include taking deposits or making loans, separate trade or business. The Treasury argued that insurance agents and others it does include arranging lending Department and the IRS agree that such who provide investment advice are not transactions between a lender and concession services generally would not in the field of financial services, unless borrower. The final regulations define be a trade or business of performing the agent receives a fee for the advice, securities by reference to section services in the field of athletics. rather than a commission on the sale. 475(c)(2). Nonetheless, a professional sports club’s The Treasury Department and the IRS operation of an athletic team is a trade decline to categorically exclude services 10. Investing and Investment or business of performing services in the provided by insurance agents from the Management field of athletics. Income from that trade definition of financial services as One commenter recommended that or business, including income from financial services such as managing the performance of services that consist ticket sales and broadcast rights, is wealth, advising clients with respect to of investing and investment income from a trade or business of finances, and the provision of advisory management be limited to investment performing services in the field of and other similar services that can be management and investment advisory athletics. The performance of services in provided by insurance agents. However, businesses whose income is principally the field of athletics does not include the Treasury Department and the IRS attributable to the performance of the provision of services by persons note that the provision of these services personal services involving the who broadcast or otherwise disseminate to the extent that they are ancillary to provision of investment advice or the video or audio of athletic events to the the commission-based sale of an regular and contemporaneous public. insurance policy will generally not be management of investors’ assets by considered the provision of financial 8. Financial Services individual employees or owners of the services for purposes of section 199A. Several commenters suggested that business. The commenter recommended final regulations clarify that financing, 9. Brokerage Services that the definition exclude large, including taking deposits, making loans, One commenter stated that the diversified asset managers that invest and entering into financing contracts, is ordinary definition of a broker is any significant capital in and derive not a financial service. One commenter person who buys and sells goods or significant income from the research, requested an explicit rule clarifying that services for others, including agents, development, and sale of investment non-bank mortgage bankers are not and argued that nothing in the statute products. The commenter suggested that SSTBs and that customary activities of limits this to stock brokers. The rather than making business-by-business mortgage bankers including mortgage commenter said that the definition in determinations, the final regulations loan origination, sales of mortgage the proposed regulations artificially should look to rules such as the loans, mortgage loan servicing, and sale narrows the standard to appease special regulations under now repealed section of mortgage servicing rights are not interests without any justification. The 1348, which did not treat income from financial services. The preamble to the definition provided for in the proposed a business in which capital is a material proposed regulations provides that the regulations applies more broadly than income producing factor as earned provision of financial services does not stock brokers and includes all services income. As an alternative, the include taking deposits or making loans. in which a person arranges transactions commenter suggested that the final The final regulations clarify that the between a buyer and a seller with regulations could provide a safe harbor provision of financial services does not respect to securities (as defined in for firms that research, develop, and sell include taking deposits or making loans. section 475(c)(2)) for a commission or investment products, including changes One commenter stated that the fee. While the term ‘‘broker’’ is to the de minimis and incidental rules determination that banking is not a sometimes used in a broad sense to necessary to effectuate the safe harbor. financial service appears to be wrong include anyone who facilitates the An example of such a rule could be and inconsistent with statutory purchase and sale of goods for a fee or similar to the rule provided for ancillary construction since any common commission, the term ‘‘brokerage consulting services. definition of financial services includes services’’ is most commonly associated The Treasury Department and the IRS banking services. As stated in the with services, such as those provided by decline to adopt this comment as the preamble to the proposed regulations, brokerage firms, involving the regulations under now repealed section banking is listed in section 1202(e)(3)(B) facilitation of purchases and sales of 1348 looked to earned income including but not section 1202(e)(3)(A). As a stock and other securities. fees received by taxpayers engaged in a matter of statutory construction, the Another commenter suggested that professional occupation. Section 199A Treasury Department and the IRS final regulations clarify that life is focused on a trade or business, not a believe that banking must therefore be insurance products are not securities for profession of an individual. excluded from the definition of purposes of section 199A or that life Accordingly, the determination of financial services for purposes of insurance brokers engaged in their whether a trade or business in an SSTB
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must be made on a business-by-business would be required. Another commenter performance of services to originate a basis. suggested that the creation of a loan loan is not treated as the purchase of a Another commenter suggested that should not be construed as a purchase security from the borrower in final regulations clarify that investing and a taxpayer should be considered a determining whether the lender is and investment management does not dealer in securities only if they both performing services consisting of include the sale of life insurance purchase and sell securities. As an dealing in securities. The comment products and that life insurance alternative, this commenter suggested regarding the definition of a dealer in products are not investments for that negligible sales could be defined in securities, however, is not accepted, as purposes of section 199A. The Treasury terms of the number of customers that the definition of a securities dealer has Department and the IRS decline to the lender sells loans to each year. For never depended on whether securities define investment for purposes of this purpose, the Government National were held in inventory. The final section 199A but note that commission- Mortgage Association (GNMA) would be regulations also do not address loans based sales of insurance policies considered to be the customer for that are sold outside the normal course generally will not be considered the purpose of sales of GNMA mortgage of business, which is an inherently performance of services in the field of pools through the issuance of mortgage factual question. Similarly, the Treasury investing and investing management for backed securities. Another commenter Department and the IRS decline to purposes of section 199A. suggested that sales of retail installment address the question of whether a Another commenter recommended contracts or loans for purposes of person is a customer as this is a subject that final regulations clarify that directly liquidity, portfolio diversification, and which is beyond the scope of these managing real property includes similar purposes should be considered regulations. to be outside of recurring business management through agents and b. Banking affiliates acting as agents for the activity and thus not dealing in property manager. The SSTB limitations securities. In response to these Many commenters recommended that apply to direct and indirect owners of comments, the final regulations provide traditional banking activities be a trade or business that is an SSTB, that for purposes of section 199A and excluded entirely from the definition of regardless of whether the owner is the definition of performing services an SSTB, including the performance of passive or participated in any specified that consist of dealing in securities, the services that consist of dealing in service activity. Accordingly, direct and performance of services to originate a securities. The commenters argued that indirect management of real property loan is not treated as the purchase of a Congress intended banks that elect includes management through agents, security from the borrower. under section 1362(a) to be S employees, and independent Additionally, the final regulations corporations (subchapter S banks) to contractors. remove the reference to the negligible have the same relative reduction in sales exception under § 1.475(c)–1(c)(2) taxes as C corporation banks after 11. Dealing and (4) from the definition of dealing in enactment of the TCJA. Many a. Mortgage Banking, Credit Sales, and securities. commenters noted that subchapter S Non-Bank Lending Another commenter suggested that bank activities are already strictly under section 199A, the term limited by the Bank Holding Company Several commenters suggested that ‘‘securities’’ should be defined by Act and this effectively serves as a the provisions regarding dealing in reference to section 475 but not the guardrail against abuse of the section securities should exclude mortgage terms ‘‘dealer’’ or ‘‘dealer in securities.’’ 199A deduction. As an alternative, banking and other lending activities in The commenter suggested that a lender commenters suggested that the which lending is the primary business should be considered to be a dealer in definition of SSTB should be more focus. Several of these commenters securities for purposes of section 199A narrowly drawn to exclude bank noted that the plain language meaning only to the extent that loans, including services such as trust or fiduciary of ‘‘purchasing securities’’ does not retail sales contracts, acquired by the services, securities brokerage, and the include making loans. One commenter lender are held in inventory or held for origination and sale of mortgages and suggested that the reference to the sale to customers in the ordinary course loans. Commenters also expressed definition of negligible sales should be of a trade or business within the concern that the de minimis rule is clarified to explain that negligible sales meaning of section 1221. The insufficient to protect banks. These as defined in § 1.475(c)–1(c)(2) and (4) commenter also suggested that when a commenters suggested revisions does not apply if the loan is in loan is acquired with a view towards including raising the de minimis connection with mortgage servicing holding the loan to maturity in the threshold to 25 percent regardless of the contracts as excluded in section lender’s portfolio and the loan is later amount of gross receipts and using net 451(b)(1)(B). Another commenter sold outside the normal course of income rather than gross receipts for the suggested that portfolio lenders should business; such a sale should not result measure. also be able to use the negligible sales in the lender being viewed as a dealer The Treasury Department and the IRS exemption and all sales of loans outside in securities. Another commenter decline to accept these comments. the ordinary course of business should suggested that the meaning of sales to Although the final regulations continue be excluded from consideration in customers should be clarified in the to exclude taking deposits or making applying the negligible sales test. A context of a mortgage finance business. loans from the definition of an SSTB third commenter suggested that the This commenter requested that the involving the performance of financial regulation clarify that the negligible regulations clarify that a mortgage loan services, and exclude the origination of sales exception is simply an exception originator which transfers mortgages to loans from the definition of dealing in to the general definition of dealing in an agency or broker/dealer for cash or securities for purposes of section 199A, securities. Another commenter mortgage-backed securities does not the Treasury Department and the IRS do suggested that application of dealing in engage in a sale by the originator to a not believe that there is a broad securities should be limited to taxpayers customer for purposes of section 199A. exemption from the listed SSTBs with engaged in broker-dealer activities for In response to these comments, the respect to all services that may be which registration under Federal law final regulations provide that the legally permitted to be performed by
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banks. Therefore, to the extent a bank a commodities trade or business by inconsistent with the text, structure, and operates a single trade or business that dealing or trading in financial purpose of section 199A to potentially involves the performance of services instruments that are commodities exclude income from all service listed as SSTBs outside of the de (within the meaning of section businesses from qualifying for the minimis exception, such as investing 475(e)(2)), or a trade or business that section 199A deduction for taxpayers and investment management, the bank’s otherwise does not perform substantial with taxable income above the threshold single trade or business will be treated activities with commodities, the final amount. If Congressional intent was to as an SSTB. However, as noted regulations adopt rules similar to the exclude all service businesses, Congress previously, an RPE, including a rules that apply to qualified active sales clearly could have drafted such a rule. subchapter S bank, may operate more of commodities in § 1.954–2(f)(2)(iii). Accordingly, the final regulations retain than one trade or business. Thus, a Those rules generally require a person the proposed rule limiting the meaning subchapter S bank could segregate to be engaged in the active conduct of of the reputation or skill clause to fact specified service activities from an a commodities business as a producer, patterns in which an individual or RPE existing trade or business and operate processor, merchant, or handler of is engaged in the trade or business of such specified service activities as an commodities and to perform certain receiving income from endorsements, SSTB separate from its remaining trade activities with respect to those the licensing of an individual’s likeness or business, either within the same legal commodities. or features, and appearance fees. entity or in a separate entity. Accordingly, for purposes of section One commenter requested additional 199A, gains and losses from the sale of clarification regarding whether c. Commodities commodities in the active conduct of a advertising income received for on air Several commenters suggested that commodities business as a producer, advertising spots in which a program the final regulations provide that a trade processor, merchant, or handler of host reads a script describing the or business is not engaged in the commodities will be qualified active positive qualities of a product or performance of services of investing, sales and gains and losses from service, and may also choose to describe trading, or dealing in commodities if it qualified active sales are not taken into his or her own positive experiences regularly takes physical possession of account in determining whether a with the product, is endorsement the underlying commodity in the person is engaged in the trade or income as described in § 1.199A– ordinary course of its trade or business. business of dealing in commodities. 5(b)(2)(xiv)(A). The commenter argued These commenters also argued that a Similarly, income, deduction, gain, or that such income should not be business that takes physical possession loss from a hedging transaction (as considered endorsement income of the commodity should not be treated defined in § 1.1221–2(b)) entered into in because it is not received in connection as an SSTB if it hedges its risk with the normal course of a commodities with a separate trade or business of respect to the commodity as part of the business conducted by a producer, making endorsements. The Treasury ordinary course of its trade or business. processor, merchant, or handler of Department and the IRS decline to The commenters state that dealing in commodities will be treated as gains adopt this suggestion as § 1.199A– commodities for purposes of section and losses from qualified active sales 5(b)(2)(xiv)(A) looks to whether the 199A should be understood to mean an that are part of that trade or business. individual or RPE is receiving income activity similar to dealing in securities Qualified active sales generally require from the endorsement of products or and should be limited to the dealing in a taxpayer to hold commodities as services, not whether the income is financial instruments referenced to inventory or similar property and to received in connection with a separate commodities, such as commodities satisfy specified conditions regarding trade or business of making futures or options that are traded on substantial and significant activities endorsements. Whether a taxpayer regulated exchanges. One commenter described in the final regulations. A sale endorses a product or services is argued that if the regulations were to by a trade or business of commodities dependent on the facts and apply to physical commodities it would held for investment or speculation is not circumstances. result in different tax treatment a qualified active sale. depending on whether the commodity is B. De Minimis Rule actively traded and that Congress 13. Reputation/Skill The proposed regulations provide that intended the definition of commodities Many commenters expressed support for a trade or business with gross to apply only to commodities for the position in the proposed receipts of $25 million or less for the derivatives. Another commenter regulations that reputation or skill was taxable year, a trade or business is not suggested that manufacturing activities intended to describe a narrow set of an SSTB if less than 10 percent of the as defined under the now repealed trades or businesses not otherwise gross receipts of the trade or business section 199 should be expressly covered by the other listed SSTBs, often are attributable to a specified service excluded from the definition of both writing that a more broad interpretation field. The percentage is reduced to 5 trading in commodities and dealing in would be inherently complex and percent in the case of trades or commodities. unworkable. Other commenters businesses with gross receipts in excess The Treasury Department and the IRS disagreed with the definition in the of $25 million. Several commenters agree with commenters that the proposed regulations, expressing requested clarification regarding definition of dealing in commodities for concern that the narrowness of the whether the entire trade or business is purposes of section 199A should be definition is contrary to the language of designated an SSTB if the threshold is limited to a trade or business that is the statute and Congressional intent. exceeded. Some of these commenters dealing in financial instruments or The Treasury Department and the IRS suggested that the rule be modified so otherwise does not engage in substantial remain concerned that a broad that the deduction could be claimed on activities with respect to physical interpretation of the reputation and skill the portion of the trade or business commodities. To distinguish a trade or clause would result in substantial activity that was not an SSTB. A few business that performs substantial uncertainty for both taxpayers and the suggested that an allocation similar to activities with physical commodities IRS. As stated in the preamble to the that in now repealed section 199 could from a trade or business that engages in proposed regulations, it would be be used. One commenter suggested
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using the cost accounting principles of able to use the deduction with respect minimis threshold is applied to each section 861 with a safe harbor allowing to income from such devices and trade or business of an RPE separately, a simplified method for entities with expressed concern that the de minimis not in the aggregate to all the trades or average annual gross receipts less than thresholds could limit the ability of businesses of the RPE. Thus, to the $25 million. Another commenter stated some practitioners to use the deduction. extent that an individual or RPE has that treating the entire trade or business Another commenter suggested that a more than one trade or business, the as an SSTB is a trap for the unwary business with SSTB gross receipts in presence of specified service activity in because well-advised taxpayers could excess of the de minimis should not be one of those trades or business will not avoid application of the rule by entirely disqualified, but that the facts cause the individual’s or RPE’s other rearranging their activities into separate and circumstances should be analyzed trades or businesses to be considered entities. One commenter suggested that to determine the true nature of the trade SSTBs except to the extent that the rules the de minimis rule allow for minor or business. The commenter also in § 1.199A–5(c)(2) (services or property year-to-year changes in gross receipts for suggested that a safe harbor should be provided to an SSTB) apply. businesses that are close to the de provided in which a business can make C. Services or Property Provided to an minimis thresholds. The commenter an election to deem the SSTB activity as SSTB also suggested that the thresholds be a separate trade or business solely for increased and recommended an the purposes of section 199A. Finally, The proposed regulations provide incremental approach in which the one commenter suggested that final special rules for service or property deduction is calculated based on the regulations include an example of what provided to an SSTB by a trade or portion of the business that is not result occurs if a taxpayer’s SSTB business with common ownership. A engaged in an SSTB. Another revenue is not de minimis. trade or business that provides more commenter suggested that if the rule is The Treasury Department and the IRS than 80 percent of its property or retained, it should be imposed only at decline to adopt most of the services to an SSTB is treated as an a greater than 50 percent threshold since recommendations in these comments. SSTB if there is 50 percent or more only at that point would SSTB gross As stated in the preamble to the common ownership of the trades or receipts predominate over non-SSTB proposed regulations, the statutory businesses. In cases in which a trade or gross receipts. The commenter also language of section 199A does not business provides less than 80 percent noted that a higher threshold would be provide a certain quantum of activity of its property or services to a easier to track. Several commenters also before an SSTB is found. Rather, section commonly owned SSTB, the portion of suggested that the de minimis threshold 199A looks to whether the trade or the trade or business providing property be raised. One commenter suggested business involves the performance of to the commonly owned SSTB is treated that the de minimis threshold be raised services in the list of SSTBs. The use of as part of the SSTB with respect to the to 20 percent for all qualified the word ‘‘involving’’ suggests that any related parties. businesses, regardless of gross receipts. amount of specified service activity causes a trade or business to be an One commenter suggested that the The commenter argued that a 20 percent provision is warranted because of abuse threshold is supported by Congress’s SSTB. Consequently, the Treasury Department and the IRS believe that it potential but is overbroad and prevents decision to use section 1202(e) for its legitimate transactions. The commenter definition of an SSTB, noting that would be inappropriate to adopt a pro rata rule. However, requiring all recommended that the rule be modified section 1202(e)(1)(A) uses an at least 80 taxpayers to evaluate and quantify any into a presumption that a taxpayer percent (by value) rule for determining amount of specified service activity could rebut with evidence whether a qualified trade or business would be unduly burdensome and demonstrating that the property or satisfies the section’s active business complex for both taxpayers and the IRS. services provided to the SSTB by the requirement. Other commenters Accordingly, the proposed rule provides related RPE are (1) comparable to those recommended that the ten percent a de minimis threshold under which a available from competing organizations threshold should apply for purposes of trade or business will not be considered and (2) that prices charged by the RPE the de minimis threshold regardless of an SSTB merely because it provides a and paid by the SSTB are comparable to the amount of gross receipts of the trade small amount of services in a specified those charged in the market. The or business. Public comments lacked service activity. Trades or business with commenter also suggested that the IRS consensus regarding the 5-percent de gross income from a specified service could examine the totality of facts and minimis threshold. After considering all activity in excess of the de minimis circumstances, including historic of the comments, the Treasury threshold are considered to be SSTBs. conduct between the SSTB and RPE. Department and the IRS chose to retain The final regulations retain the Another commenter suggested that the the 5-percent threshold in the final proposed rule but add an additional final rule add an exception to the rule regulations as it is a de minimis example demonstrating the result in for taxpayers that can demonstrate they threshold that is generally consistent which a trade or business has income have a substantial purpose (apart from with prior regulations under the Code in from a specified service activity in Federal income tax effects) for similar circumstances and therefore, excess of the de minimis threshold. structuring their trade or business in a such a standard should be familiar to As discussed in part II of this particular manner. For example, title to affected entities. Summary of Comments and Explanation a skilled nursing facility could be held Another commenter suggested that of Revisions, the Treasury Department by one passthrough entity that is final regulations clarify whether and the IRS acknowledge that an RPE operated by a related passthrough entity revenue generated from the sale of can have more than one trade or in order to satisfy Department of medical products or devices should be business for purposes of section 162 and Housing and Urban Development excluded from the overall QBI for trades thus for section 199A. However, each lending requirements. The Treasury or businesses that provide services in trade or business is required under Department and the IRS decline to the field of health. The commenter section 199A to be separately tested to adopt these recommendations. Creating noted that physicians who provide their determine whether that trade or a presumption or substantial purpose patients with medical devices should be business is an SSTB. Similarly, the de test would lead to greater complexity
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and administrative burden for both D. Incidental to a Specified Service whether a former employee is properly taxpayers and the IRS. Trade or Business classified as an employee and that the A few commenters requested The proposed regulations provide that presumption would impede the clarification regarding whether the rule if a trade or business (that would not objective of ensuring similar treatment applies when the property or services otherwise be treated as an SSTB) has of similarly situated taxpayers because are provided to a commonly-owned C both 50 percent or more common two similarly situated taxpayers who corporation. One commenter also asked ownership with an SSTB and shared provide services to the same company would be treated differently if one was for clarification on the meaning of 50 expenses with an SSTB, then the trade a former employee of the company and percent or more common ownership, or business is treated as incidental to the other was not. The commenter also examples of how ownership is and, therefore, part of the SSTB, if the notes that the presumption would create determined, and whether the definition gross receipts of the trade or business uncertainty for taxpayers and would represent no more than five percent of is different than the 50 percent or more cause former employees to not claim the the total combined gross receipts of the common ownership test used in the deduction in order to avoid a dispute trade or business and the SSTB in a aggregation rules. One commenter with the IRS. suggested that the rule should apply taxable year. One commenter Another commenter expressed only to those owners who make up the recommended that this rule be removed concern that the presumption as written 50 percent ownership test. Another because it is unnecessary and causes in the proposed regulations could create commenter suggested that the rule administrative difficulties for taxpayers a dual standard for worker classification should not apply to real estate rentals to who must determine whether a trade or under the Code, in which a worker a commonly owned SSTB. Another business is incidental in order to apply could be classified as an independent commenter suggested that structures the rule. If the rule is retained, the contractor for employment tax purposes, that existed before December 22, 2017, commenter recommended that final and an employee for purposes of be grandfathered so that the rule would regulations define gross receipts and claiming section 199A deduction. This not apply. In response to comments, the shared expenses, make adjustments to could result in an independent final regulations clarify that the rule avoid double counting the same gross contractor being held liable for self- applies only to those who make up the receipts, clarify what businesses are employment taxes and unable to claim 50 percent test. As discussed in section taken into account for purposes of the the section 199A deduction on income V.B. of this Summary of Comments and rule, and treat a trade or business to that would otherwise qualify as QBI. Explanation of Revisions, the final which the anti-abuse rule applies as a The commenter suggested that if the regulations provide that sections 267(b) separate SSTB rather than as part of the presumption is retained, it should and 707(b) apply in determining SSTB. Another commenter suggested include an exemption for certain common ownership for purposes of the that the final regulations add an independent contractors based on aggregation rules. The Treasury exception for start-ups such as a three factors including income, source of Department and the IRS decline to to five year grace period and also clarify income, industry practice, and exempt real estate rentals or to the ownership standard, how the rule timeframe. structures that existed before December would apply if the trades or business A different commenter suggested that 22, 2017, as the rule is intended to have different tax years, and how shared the presumption should provide that an address goods and services that are expenses would be determined. In independent contractor is operating as provided to an SSTB regardless of the accordance with the comments, the rule such and that it is up to the relevant type of good or service provided or the is removed from the final regulations. Federal agencies to determine whether date on which the structure was put into E. Trade or Business of Performing the business misclassified the place. Services as an Employee individual. The commenter also noted that the IRS is barred from issuing One commenter stated that the rule is Multiple commenters expressed regulations with respect to the overbroad and not based on statutory support for the rule in the proposed employment status of any individual for authority and unfairly punishes related regulations that provides that an employment tax purposes under Section party transactions. Other commenters individual who was previously treated 530(b) of the Revenue Act of 1978 (Pub. suggested that the rule automatically as an employee and is subsequently L. 95–600), as amended by section treating a trade or business that provides treated as other than an employee while 9(d)(2) of Public Law 96–167, section more than 80 percent of its goods or performing substantially the same 1(a) of Public Law 96–541, and section services to a commonly owned SSTB as services to the same person, or a related 269(c) of Public Law 97–248, and that an SSTB is unnecessary, as there are no person, will be presumed to be in the the presumption could result in an abuse concerns regarding the portions of trade or business of performing services individual otherwise subject to self- goods or services provided to a third as an employee for purposes of section employment tax to not get the benefit of party. The Treasury Department and the 199A. The commenters noted that the the section 199A deduction. Another IRS agree with this comment and have presumption furthers the public policy commenter argued that an employee removed the 80 percent rule in the final goal of preventing worker who changes his status from employee regulations. Accordingly, the final misclassification, preserves agency to independent contractor so he may regulations provide that if a trade or resources, and prevents a decline in deduct business expenses on Schedule business provides property or services Federal and state tax revenues. The C and claim a section 199A deduction to an SSTB and there is 50 percent or commenters also state that regulations is exercising his right to structure his more common ownership of the trade or should not incentivize workers to accept business transactions to minimize his business, the portion of the trade or misclassification by their employer in tax liability. business providing property or services order to obtain a tax benefit. Another commenter questioned how to the 50 percent or more commonly- Other commenters recommended that the rule would be applied, asking for owned SSTB will be treated as a the presumption be removed arguing clarification on whether the rule is separate SSTB with respect to related that the common law test under current intended to prohibit employers from parties. law is sufficient for determining firing employees and rehiring them as
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independent contractors; whether it report any QBI, W–2 wages, UBIA of does not need to determine and report applies to former employees regardless qualified property, or SSTB W–2 wages, UBIA of qualified property, of current relationship; and how far the determinations, the owner’s share (and or whether the trade or business is an IRS would look back at prior employees. the share of any upper-tier indirect SSTB. One commenter recommended Another commenter suggested that a owner) of QBI, W–2 wages, and UBIA of that a special rule be provided that an new example be added to the final qualified property attributable to trades RPE need not determine or report W–2 regulations demonstrating that the or businesses engaged in by that RPE wages, UBIA of qualified property or presumption is inapplicable when the will be presumed to be zero. A few whether the trade or business is an facts demonstrate that a service commenters suggested that the final SSTB if none of the owners of the RPE recipient and a service provider have regulations clarify that if an RPE fails to have taxable income above the materially modified their relationship separately identify or report each threshold amount. The commenter such that its proper classification is that owner’s allocable share of QBI, W–2 suggested that the final regulations of a service recipient and a partner. wages, or UBIA of qualified property, provide an exception to the reporting The Treasury Department and the IRS then only the unidentified or requirements if (1) an RPE does not have believe that the presumption is unreported amount is presumed to be gross receipts that constitute QBI; (2) necessary to prevent misclassifications zero. Another commenter suggested that none of the owners of the RPE are non- but agree that some clarification of the a return be considered substantially corporate taxpayers; or (3) none of the presumption is necessary. In accordance complete even if an RPE chooses not to RPE owners have taxable income above with commenter’s suggestions, the final report QBI, W–2 wages, and UBIA of the threshold amount. The commenter regulations provide a three-year look qualified property, while other suggested that an RPE could establish back rule for purposes of the commenters suggested that taxpayers the taxable income of its owners presumption. The final regulations could rebut the presumption. One through the review and maintenance of provide that an individual may rebut commenter requested that the final its owners’ tax returns or written the presumption by showing records, regulations clarify that if an RPE fails to statements signed under the penalty of such as contracts or partnership report QBI, W–2 wages, UBIA of perjury. Another commenter suggested agreements, that are sufficient to qualified property, and SSTB that an RPE should not be subject to the corroborate the individual’s status as a information, the information can still be reporting requirements unless the RPE non-employee for three years from the reported on an amended or late filed is aware of a non-corporate owner. date a person ceases to treat the return if filed while the period of Another commenter suggested that the individual as an employee for Federal limitations is still open. Another RPE only needs to report W–2 wages employment taxes. Finally, the final commenter suggested that to incentivize when it is clear that the amount will regulations contain an additional accurate and timely reporting, taxpayers result in an amount greater than 20 example demonstrating the application should be given reasonable percent of QBI. Another commenter of the presumption for the situation in opportunities to correct errors and not requested guidance on how to qualify which an employee has materially be subject to penalties for such errors. for the special rule and what modified his relationship with his The Treasury Department and the IRS information the RPE would be required employer such that the employee can agree with commenters that all of an to report to its owners and retain in successfully rebut the presumption. RPE’s items related to section 199A connection with the rule. One should not be presumed to be zero commenter, however, cautioned against VII. Relevant Passthrough Entities, because of a failure to report one item. a special rule because of the lack of Publicly Traded Partnerships, Trusts, For example, an RPE may have knowledge the RPE has about the and Estates sufficient W–2 wages and send out that owners. The commenter also suggested information, but decline to provide A. Reporting Rules that a certification process by the information for UBIA of qualified owners would create an administrative The proposed regulations provide that property because it is not necessary or burden. The commenter requested an RPE must determine and separately is an insignificant amount. Accordingly, guidance on who would be responsible report QBI, W–2 wages, UBIA of the final regulations retain the reporting for corrections and penalties due to qualified property, and whether the requirement but revise the presumption failure to disclose the information on trade or business is an SSTB for each of to provide that if an RPE fails to the RPE’s trades or businesses. To help separately identify or report an item of the Schedule K–1 when the simplify the administration and QBI, W–2 wages, or UBIA of qualified determination affects the owner’s QBI compliance burden, several commenters property, the owner’s share of each deduction. One commenter suggested suggested that there be an option to unreported item of positive QBI, W–2 that RPEs should not have to report QBI, compute, aggregate, and report activities wages, or UBIA of qualified property W–2 wages, and UBIA of qualified at the RPE or entity level. As discussed attributable to trades or businesses property with respect to trades or in part V of this Summary of Comments engaged in by that RPE will be businesses not effectively connected and Explanation of Revisions, the final presumed to be zero. The final with the United States. regulations allow an RPE to aggregate its regulations also provide that such The Treasury Department and the IRS trades or businesses provided the rules information can be reported on an remain concerned that RPEs do not have of § 1.199A–4 are satisfied. An RPE that amended or late filed return for any sufficient information to determine an chooses to aggregate can report open tax year. Guidance on the ultimate owner’s taxable income or combined QBI, W–2 wages, and UBIA of application of penalties is beyond the whether the ultimate owner will require qualified property for the aggregated scope of these regulations. W–2 wage or UBIA of qualified property trade of business. This aggregation must The preamble to the proposed information for the RPE’s trades or be maintained and reported by all direct regulations requested comments businesses in order to determine the and indirect owners of the RPE, regarding whether it is administrable to owner’s section 199A deduction. including upper-tier RPEs. provide a special rule that if none of the Conversely, the RPE itself, not its The proposed regulations provide that owners of the RPE have taxable income ultimate owners, is in the best position if an RPE fails to separately identify or above the threshold amount, the RPE to determine the RPE’s section 199A
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items. Accordingly, the final regulations rulemaking under section 512(a)(6), is 5. Allocation Between Trust or Estate do not contain a special reporting rule warranted. and Beneficiaries for RPEs based on whether the RPE’s 3. ESBTs One commenter argued that proposed owners have taxable income below the § 1.199A–6(d)(3)(v)(C) and (D) and the threshold amounts. Similarly, the One commenter supported the accompanying example are wrong in Treasury Department and the IRS proposed regulation’s position on allocating the whole depreciation decline to create a reporting exception ESBT’s eligibility for the deduction. deduction to the trust. Instead, the based on whether an RPE has non- Another commenter stated that based on commenter said that the depreciation corporate owners. Finally, a trade or § 1.641(c)–1(a) and its reference to an should be allocated based on fiduciary businesses that is not effectively ESBT being two separate trusts for accounting income. Another commenter connected with the United States purposes of chapter 1 of subtitle A of stated that the QBI net loss should be produces no QBI, W–2 wages, or UBIA the Code (except regarding allocated entirely to the trust or estate of qualified property and thus has no administrative purposes), the S portion and not passed through to the reporting requirement under § 1.199A– and non-S portion should each have its beneficiaries. Another commenter stated 6. own threshold. The Treasury that the example in proposed § 1.199A– Department and the IRS disagree with B. Application to Trusts and Estates 6(d)(3)(vi) overlooks section 167(d) and this comment. Although an ESBT has that final regulations should clarify 1. Charitable Remainder Trust separate portions, it is one trust. whether reporting of depreciation is Beneficiary’s Eligibility for the Therefore, in order to provide clarity, being changed. An additional Deduction the final regulations state that the S and commenter stated that a charitable lead non-S portions of an ESBT are treated as trust’s threshold amount should be the The preamble to the proposed a single trust for purposes of same as other trusts after the charitable regulations requested comments with determining the threshold amount. deduction. Based on comments respect to whether taxable recipients of received, the final regulations provide annuity and unitrust interests in 4. Inclusion of Trust Distributions in Taxable Income that the treatment of depreciation charitable remainder trusts and taxable applies solely for purposes of section beneficiaries of other split-interest trusts Multiple commenters suggested that 199A, and the example has been revised may be eligible for the section 199A distributions should not be counted to clarify the allocation of QBI and deduction to the extent that the amounts twice in determining whether the depreciation to the trust and the received by such recipients include threshold amount is met or exceeded, beneficiaries. As an RPE, the final amounts that may give rise to the saying this is counter to the statute and regulations continue to require that a deduction. Concurrently with the beyond the regulatory authority of the trust or estate allocates QBI (which may publication of these proposed Treasury Department and the IRS. be a negative amount) to its regulations, the Treasury Department Further, sections 651 and 661 are beneficiaries based on the relative and the IRS are publishing proposed fundamental principles of fiduciary portions of DNI distributed to its regulations under section 199A (REG– income taxation and the possible beneficiaries or retained by the trust or 134652–18) that address the eligibility duplication of the threshold is better estate. of taxable recipients of annuity and addressed in anti-abuse provisions. unitrust interests in charitable Another commenter suggested that 6. Section 199A Anti-Abuse Rule remainder trusts and taxable double counted income should be One commenter requested beneficiaries of other split-interests ignored, arguing that double counting is clarification on whether a trust with a trusts to receive the section 199A punitive because it fails to take into reasonable estate or business planning deduction. account the economic consequences of purpose would be respected. Another 2. Tax Exempt Trusts distributions and is inconsistent with commenter argued that the rule is the longstanding fundamental overbroad and lacks clarity as to what One commenter requested guidance principles of subchapter J. Another would be abusive and what the on whether ‘‘exempt trust commenter recommended that the consequences would be of not organizations’’ (that is, trusts that are distribution deduction should be given respecting the trust for section 199A exempt from income tax under section effect in computing thresholds, purposes. The commenter also stated 501(a) or ‘‘tax exempt trusts’’) are consistent with section 1411 and that the rule is not needed because of entitled to a section 199A deduction in fiduciary obligations. The Treasury § 1.643–1 and if both rules are retained, computing their unrelated business Department and IRS agree with the they should use the same test (principal taxable income. The commenter also commenters that distributions should versus significant purpose). Finally, the requested confirmation regarding reduce taxable income because the trust commenter asked for clarification on whether the method of determining or is not taxed on that income. The final whether the rule applies to a single trust separating trades of businesses is the regulations remove the provision that and suggested it should apply on an same for sections 199A and 512(a)(6). would exclude distributions from annual basis. This last suggestion has The Treasury Department and the IRS taxable income for purposes of not been adopted because the test goes decline to adopt these comments here determining whether taxable income for to the creation of the trust, factors which because they are beyond the scope of a trust or estate exceeds the threshold would not change in later years. The these final regulations. The Treasury amount. The final regulations final regulations clarify that the anti- Department and the IRS continue to specifically provide that for purposes of abuse rule is designed to thwart the study this issue and request comments determining whether a trust or estate creation of even one single trust with a on the interaction of sections 199A and has taxable income that exceeds the principal purpose of avoiding, or using 512. We will consider all comments and threshold amount, the taxable income of more than one, threshold amount. If decide whether further guidance on the trust or estate is determined after such trust creation violates the rule, the these issues, including as part of a taking into account any distribution trust will be aggregated with the grantor forthcoming notice of a proposed deduction under sections 651 or 661. or other trusts from which it was funded
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for purposes of determining the as ‘‘principal purpose’’ and which prevent abuse of the Code threshold amount for calculating the ‘‘substantially identical grantors and generally through the use of trusts, deduction under section 199A. beneficiaries’’ should be defined or their apply to taxable years ending after meaning clarified in regulations or other August 16, 2018. VIII. Treatment of Multiple Trusts guidance, along with providing Section 199A(f)(1) provides that Two commenters requested illustrating examples for each of these section 199A applies at the partner or S clarification regarding whether multiple terms. Nevertheless, the position of the corporation shareholder level, and that trusts will be aggregated if section 643(f) Treasury Department and the IRS each partner or shareholder takes into requirements are met. Specifically, the remains that the determination of account such person’s allocable share of commenters asked for clarification on whether an arrangement involving each qualified item. Section 199A(c)(3) what it means to form or fund a trust multiple trusts is subject to treatment provides that the term ‘‘qualified item’’ with a significant purpose of receiving under section 643(f) may be made on means items that are effectively a section 199A deduction. These the basis of the statute and the guidance connected with a U.S. trade or business, commenters state that trusts should not provided regarding that provision in the and ‘‘included or allowed in be combined simply because the section legislative history of section 643(f), in determining taxable income from the 199A deduction is increased if a the case of any arrangement involving taxable year.’’ Section 199A applies to legitimate non-tax reason led to the multiple trusts entered into or modified taxable years beginning after December creation of the trusts. before the effective date of these final 31, 2017. However, there is no statutory Other commenters objected to the regulations. requirement under section 199A that a presumption of a tax-avoidance Availability of IRS Documents qualified item arise after December 31, purpose, arguing that it will shift the 2017. focus to a requirement that there be a IRS notices cited in this preamble are Section 1366(a) generally provides non-tax purpose for creating multiple made available by the Superintendent of that, in determining the income tax of trusts. The commenters also asked Documents, U.S. Government Printing a shareholder for the shareholder’s whether the reference to income tax Office, Washington, DC 20402. taxable year in which the taxable year includes state income tax, as the Request for Comments of the S corporation ends, the proposed rule refers to the avoidance of shareholder’s pro rata share of the The Treasury Department and the IRS more than Federal income tax. corporation’s items is taken into Another commenter agreed with the request comments on various aspects of account. Similarly, section 706(a) need for the rule but asked for section 199A and these regulations, as generally provides that, in computing clarification on the definitions of described in this preamble. All the taxable income of a partner for a primary beneficiary, significant tax comments that are submitted as taxable year, the partner includes items benefit, principal purpose, and prescribed in this preamble under the of the partnership for any taxable year arrangement involving multiple trusts; ADDRESSES heading will be available at of the partnership ending within or with the application of the substantially the www.regulations.gov and upon request. the partner’s taxable year. Therefore, same beneficiary rule; and whether Effective/Applicability Date income flowing to an individual from a trusts for different children, with other partnership or S corporation is subject children as default beneficiaries, are the Section 7805(b)(1)(A) and (B) of the to the tax rates and rules in effect in the same. Another commenter noted that Code generally provide that no year of the individual in which the the use of substantial purpose rather temporary, proposed, or final regulation entity’s year closes, not the year in than principal purpose is inconsistent relating to the internal revenue laws which the item actually arose. with the statutory language. may apply to any taxable period ending Another commenter asked for before the earliest of (A) the date on Accordingly, for purposes of clarification of the effective date which such regulation is filed with the determining QBI, W–2 wages, UBIA of regarding modifications or contributions Federal Register, or (B) in the case of a qualified property, and the aggregate to pre-effective date trusts, and of the final regulation, the date on which a amount of qualified REIT dividends and identification of trusts to which the proposed or temporary regulation to qualified PTP income, the effective date regulation applies. Another commenter which the final regulation relates was provisions provide that if an individual requested that final regulations address filed with the Federal Register. receives QBI, W–2 wages, UBIA of the applicability of the rule to the Consistent with authority provided by qualified property, and the aggregate conversion of grantor trusts to non- section 7805(b)(1)(A), §§ 1.199A–1 amount of qualified REIT dividends and grantor trusts post enactment of the through 1.199A–6 generally apply to qualified PTP income from an RPE with TCJA. taxable years ending after February 8, a taxable year that begins before January One commenter requested that 2019. However, taxpayers may rely on 1, 2018, and ends after December 31, examples be given for each of the three the rules set forth in §§ 1.199A–1 2017, such items are treated as having requirements under section 643(f) and through 1.199A–6, in their entirety, or been incurred by the individual during requested that § 1.643(f)–1, Example 2, on the proposed regulations under the individual’s tax year during which be clarified to describe the trusts as non- §§ 1.199A–1 through 1.199A–6 issued such RPE taxable year ends. grantor trusts. on August 16, 2018, in their entirety, for Special Analyses Based on the comments received, the taxable years ending in calendar year Treasury Department and the IRS have 2018. In addition, to prevent abuse of I. Regulatory Planning and Review— removed the definition of ‘‘principal section 199A and the regulations Economic Analysis purpose’’ and the examples illustrating thereunder, the anti-abuse rules in Executive Orders 13563 and 12866 this rule that had been included in the §§ 1.199A–2(c)(1)(iv), 1.199A–3(c)(2)(ii), direct agencies to assess costs and proposed regulations, and are taking 1.199A–5(c)(2), 1.199A–5(d)(3), and benefits of available regulatory under advisement whether and how 1.199A–6(d)(3)(vii) apply to taxable alternatives and, if regulation is these questions should be addressed in years ending after December 22, 2017, necessary, to select regulatory future guidance. This includes the date of enactment of the TCJA. approaches that maximize net benefits questions of whether certain terms such Finally, the provisions of § 1.643–1, (including potential economic,
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environmental, public health and safety B. Baseline the relinquished property. The rule is effects, distributive impacts, and The analysis in this section compares the same for qualified property acquired equity). Executive Order 13563 the final regulation to a no-action pursuant to an involuntary conversion emphasizes the importance of baseline reflecting anticipated Federal under section 1033. quantifying both costs and benefits, of income tax-related behavior in the 2. Entity Aggregation reducing costs, of harmonizing rules, absence of these regulations. and of promoting flexibility. The final regulations allow an RPE to These final regulations have been C. Economic Analysis of Changes in aggregate trades or businesses it designated as subject to review under Final Regulations operates directly or through lower-tier Executive Order 12866 pursuant to the RPEs for the purposes of calculating the The Treasury Department and the IRS section 199A deduction in addition to Memorandum of Agreement (April 11, received comments from the public in 2018) between the Treasury Department allowing aggregation at the individual response to the section 199A proposed owner level. This change to the and the Office of Management and regulations. This section discusses Budget (OMB) regarding review of tax proposed rules allows RPEs, if they significant issues brought up in the meet the ownership and other tests regulations. OIRA has designated this comments for which economic final regulation as economically outlined in the regulations, to aggregate reasoning would be particularly QBI, wages, and capital amounts and significant under section 1(c) of the insightful. For a full discussion of Memorandum of Agreement. report aggregated figures to owners. This comments received see the Summary of change was made in response to Accordingly, these final regulations Comments and Explanation of Revisions comments suggesting that allowing have been reviewed by the Office of section of this preamble. aggregation at the RPE level would Management and Budget. For more simplify reporting and compliance detail on the economic analysis, please 1. UBIA of Qualified Property efforts for owners because the RPEs may refer to the following analysis. Relative to the proposed 199A more easily obtain the information to A. Overview regulations, the final regulations make determine whether the trades or several changes in the determination of businesses meet the tests for aggregation Congress enacted section 199A to UBIA of qualified property. In and whether it is beneficial to aggregate. provide individuals, estates, and trusts particular, proposed § 1.199A–2 Because RPEs that aggregate must meet a deduction of up to 20 percent of QBI adjusted UBIA for (i) qualified property all of the aggregation requirements, the from domestic businesses, which contributed to a partnership or S change is consistent with the includes trades or businesses operated corporation in a nonrecognition aggregation concept, which allows as a sole proprietorship or through a transaction, (ii) like-kind exchanges, or trades or businesses that operate across partnership, S corporation, trust, or (iii) involuntary conversions. Upon multiple entities but are commonly estate. As stated in the Summary of review of comments received addressing considered one business to benefit from Comments and Explanation of these rules, the Treasury Department calculating their section 199A Revisions, these regulations are and the IRS have amended these rules deduction using combined income and necessary to provide taxpayers with in the final regulations such that UBIA expenses. computational, definitional, and anti- of qualified property generally remains avoidance guidance regarding the unadjusted as a result of these three 3. Anti-Abuse Rules application of section 199A. The final types of transactions. As several The final regulations removed the regulations provide guidance to commenters pointed out, the proposed ‘‘incidental to an SSTB’’ rule requiring taxpayers for purposes of calculating the regulations would have introduced that businesses with majority ownership section 199A deduction. They provide distortions into the economic incentives and shared expenses with an SSTB be clarity for taxpayers in determining for businesses to invest or earn income. considered as part of the same trade or their eligibility for the deduction and In cases where UBIA would have been business for purposes of the section the amount of the allowed deduction. reduced following a nonrecognition 199A deduction. This anti-abuse rule Among other benefits, this clarity helps transfer under the proposed regulations, was intended to limit the ability of ensure that taxpayers all calculate the the treatment under the proposed taxpayers to separate their SSTB and deduction in a similar manner, which regulations would have discouraged non-SSTB income into two trades or encourages decision-making that is such transactions by introducing a businesses in order to receive the economically efficient contingent on the financial cost (in the form of a reduced deduction on their non-SSTB income. In provisions of the overall Code. 199A deduction) where no resource cost response to comments, the rule was The final regulations contain seven exists. An analogous distortion exists for removed from the final regulations for a sections, six under section 199A the other two types of transactions. number of reasons. First, defining when (§§ 1.199A–1 through 1.199A–6) and Such distortions are economically two businesses have shared expenses is one under section 643(f) (§ 1.643(f)–1). inefficient. difficult to administer and could be Each of §§ 1.199A–1 through 1.199A–6 To avoid such distortion, the final overly inclusive. Second, there was a provides rules relevant to the section regulations establish that qualified concern that start-up businesses could 199A deduction and § 1.643(f)–1 would property contributed to a partnership or be excluded from the section 199A establish anti-abuse rules to prevent S corporation in a nonrecognition deduction if they shared expenses and taxpayers from establishing multiple transaction generally retains its UBIA on ownership with a larger business that non-grantor trusts or contributing the date it was first placed in service by could be considered an SSTB. additional capital to multiple existing the contributing partner or shareholder. The final regulations modify the anti- non-grantor trusts in order to avoid Similar rules are adopted for the other abuse rule concerning services or Federal income tax, including abuse of two transaction forms mentioned above. property provided to an SSTB. The rule section 199A. This economic analysis In particular, the final regulations is meant to disallow SSTBs from describes the economic benefits and provide that the UBIA of qualified splitting their trade or business into two costs of each of the seven sections of the property received in a section 1031 like- pieces with one providing services or final regulations. kind exchange is generally the UBIA of leasing property to the other. For
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example, imagine a dentist office that as a trade or business if the rental or a manner that avoids perverse owns a building. The dental practice licensing and the other trade or business incentives for shifting wages and capital would be considered an SSTB. Suppose are commonly controlled under assets across businesses. The statute the dentist split the business into two § 1.199A–4(b)(1)(i). The regulations also does not address the ordering for how trades or businesses, the first of which make clear that the section 199A the W–2 wages and UBIA of qualified was the dental practice and the second deduction is allowed when calculating property limitations should be applied of which owned the building and leased alternative minimum taxable income of when taxpayers have both positive and it to the dental practice. This rule states individuals. negative QBI from different businesses. that the income from leasing the Because the section 199A deduction The final regulations clarify that in such building to the dental practice would has multiple components that may cases the negative QBI should offset also be considered SSTB income and interact in determining the deduction, it positive QBI prior to applying the wage ineligible for the section 199A is also valuable to lay out rules for and capital limitations. For taxpayers deduction. Under the proposed calculating the deduction since the who would have assumed in the regulations, a trade or business that statute does not provide each of those alternate that negative QBI offsets provides more than 80 percent of its particulars. positive QBI after applying the wage property or services to an SSTB is Alternative approaches the Treasury and capital limitations, the regulations treated as an SSTB if there is 50 percent Department and the IRS could have weaken the incentive to shift W–2 wage or more common ownership of the taken would be to remain silent on labor or capital (in the form of qualified trades or businesses. In cases in which additional definitional specificities and property) from one business to another a trade or business provides less than 80 to allow post-limitation netting in to maximize the section 199A percent of its property or services to a calculating the section 199A deduction. deduction. The Treasury Department and the IRS commonly owned SSTB, the portion of To illustrate this, consider a taxpayer concluded these approaches would the trade or business providing property who is above the statutory threshold likely give rise to less economically to the commonly owned SSTB is treated and owns two non-service sector efficient tax-related decisions than as part of the SSTB with respect to the businesses, A and B. A has net qualified would relying on statutory language related parties. The final regulations income of $10,000, while B has net remove the 80 percent threshold and alone and requiring or leaving open the ¥ possibility of post-limitation netting. qualified income of $5,000. Suppose allow any portion that is not provided that A paid $3,000 in W–2 wages, B to an SSTB to be eligible for the section 2. Anticipated Benefits of § 1.199A–1 paid $1,000 in W–2 wages, and neither 199A deduction. For example, if the The Treasury Department and the IRS business has tangible capital. If negative dentist’s leasing trade or business leased expect that the definitions and guidance QBI offsets positive QBI after applying 90 percent of the building to the dental provided in § 1.199A–1 will implement the wage and capital limitations, then A office and 10 percent to a coffee shop, the section 199A deduction in an generates a tentative deduction of the 10 percent would now be eligible for economically efficient manner. An $1,500, while B generates a tentative the section 199A deduction. This economically efficient tax system deduction of ¥$1,000, for a total change removed a threshold in the anti- generally aims to treat income derived deduction of $500. After moving B’s abuse rule, which will remove any from similar economic decisions W–2 wages to A, A’s tentative deduction incentive to stay below the 80 percent similarly in order to reduce incentives rises to $2,000, while B’s remains threshold, while still disallowing the to make choices based on tax rather than ¥$1,000, increasing the total deduction income from providing property or market incentives. In this context, the to $1,000. If, on the other hand, negative services to related SSTBs to be eligible principal benefit of § 1.199A–1 is to QBI offsets positive QBI prior to for the deduction. reduce taxpayer uncertainty regarding applying the wage and capital C. Economic Analysis of § 1.199A–1 the calculation of the section 199A limitations (as in the final regulations), deduction relative to an alternative then A and B have combined income of 1. Background scenario in which no such regulations $5,000, and the total deduction is Because the section 199A deduction were issued. In the absence of the $1,000 because the wage and capital has not previously been available, a clarifications in § 1.199A–1 regarding, limitations are non-binding. After large number of the relevant terms and for example, the definition of an eligible moving B’s wages to A, the total necessary calculations taxpayers are trade or business, similarly situated deduction remains $1,000. Thus, an currently required to apply under the taxpayers might interpret the statutory incentive to shift wages arises if statute can benefit from greater rules of section 199A differently, given negative QBI offsets positive QBI after specificity. For example, the statute uses the statute’s limited prescription or applying the wage and capital the term trade or business to refer to the absence of implementation details. In limitations. By taking the opposite enterprise whose income would be addition, without these regulations it is approach, § 1.199A–1 reduces potentially eligible for the deduction but likely that many taxpayers impacted by incentives for such tax-motivated, does not define what constitutes a trade section 199A would take on more (or economically inefficient reallocations of or business for purposes of section less) than the optimal level of risk in labor (or capital) relative to a scenario 199A; the final regulations provide that allocating resources within or across in which offsets were taken after wage taxpayers should generally apply the their businesses. Both of these actions and capital limitations were applied. trade or business standard used for would give rise to economic 3. Anticipated Costs of § 1.199A–1 section 162(a). The definition of trade or inefficiencies. The final regulations business in § 1.199A–1 is extended would provide a uniform signal to The Treasury Department and the IRS beyond the section 162 standard if a businesses and thus lead taxpayers to do not anticipate any meaningful taxpayer chooses to aggregate businesses make decisions that are more economic distortions to be induced by under the rules of § 1.199A–4. In economically efficient contingent on the § 1.199A–1. However, changes to the addition, solely for purposes of section overall Code. As an example, § 1.199A– collective paperwork burden arising 199A, the rental or licensing of property 1 prescribes the steps taxpayers must from this and other sections of these to a related trade or business is treated take to calculate the QBI deduction in regulations are discussed in section J,
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Anticipated impacts on administrative that property transferred or acquired therefore excluded from QBI. This and compliance costs, of this analysis. within a specific timeframe with a principle applies to other forms of principal purpose of increasing the income that similarly represent income D. Economic Analysis of § 1.199A–2 section 199A deduction is not that either is not at risk or does not flow 1. Background considered qualified for purposes of the from the specific economic value Section 199A provides a deduction of section 199A deduction. provided by a qualifying trade or up to 20 percent of the taxpayer’s The final regulations will also reduce business, such as returns on income from qualifying trades or taxpayer uncertainty regarding the investments of working capital. implementation of the section 199A businesses. Taxpayers with incomes 2. Anticipated Benefits of § 1.199A–3 above a threshold amount cannot enjoy deduction relative to a scenario in The Treasury Department and the IRS the full 20 percent deduction unless which no regulations were issued. In the expect that the § 1.199A–3 regulations they determine that their businesses pay absence of such clarification, similarly will implement the section 199A a sufficient amount of wages and/or situated taxpayers would likely deduction in an economically efficient maintain a sufficient stock of tangible interpret the section 199A deduction manner. For example, § 1.199A–3 will capital, among other requirements. differently to the extent that the statute discourage the creation of tiered Because this deduction has not does not adequately specify the partnerships purely for the purposes of previously been available, § 1.199A–2 particular implementation issues increasing the section 199A deduction. provides greater specificity than is addressed by § 1.199A–2, such as the In the absence of regulation, some available from the statute regarding the determination of UBIA for taxpayers would likely create tiered definitions of W–2 wages and UBIA of nonrecognition transfers and like-kind partnerships under which a lower-tier qualified property (that is, depreciable exchanges. As a result, taxpayers might partnership would make a guaranteed capital stock) relevant to this aspect of take on more (or less) than the optimal payment to an upper-tier partnership, the deduction. For example, the final level of risk in their interpretations. The and the upper-tier partnership would regulations make clear that property that final regulations would lead taxpayers pay out this income to its partners is transferred or acquired within a to make decisions that were more without guaranteeing it. Such an specific timeframe with a principal economically efficient, conditional on organizational structure would likely be purpose of increasing the section 199A the overall Code. economically inefficient because it was, deduction is not considered qualified 3. Anticipated Costs of § 1.199A–2 apparently, created solely for tax property for purposes of the section The Treasury Department and the IRS minimization purposes and not for 199A deduction. In addition, § 1.199A– do not anticipate any meaningful reasons related to efficient economic 2 generally follows prior guidance for economic distortions to be induced by decision-making. the former section 199 deduction in § 1.199A–2. However, changes to the The Treasury Department and the IRS determining which W–2 wages are collective paperwork burden arising further expect that the final regulations relevant for section 199A purposes, with from this and other sections of these will reduce uncertainty over whether additional rules for allocating wages regulations are discussed in section J, particular forms of income do or do not amongst multiple trades or businesses. Anticipated impacts on administrative constitute QBI relative to a scenario in In these and other cases, the final and compliance costs, of this analysis. which no regulations were issued. In the regulations generally aim, within the absence of regulations, taxpayers would context of the legislative language and E. Economic Analysis of § 1.199A–3 still need to determine what income is other tax considerations, to ensure that 1. Background considered QBI and similarly situated only genuine business income is eligible taxpayers might interpret the statutory for the section 199A deduction, and to Section 199A provides a deduction of rules differently and pursue income- reduce business compliance costs and up to 20 percent of the taxpayer’s generating activities based on different government administrative costs. income from qualifying trades or Alternative approaches would be to businesses. In the absence of legislative assumptions about whether that income remain silent or to choose different and regulatory constraints, taxpayers would qualify for QBI. Section 1.199A– definitions of W–2 wages or qualified would have an incentive to count as 3 provides clearer guidance for how to property for the purposes of claiming income some income that, from an determine QBI, helping to ensure that the deduction. The Treasury economic standpoint, did not accrue taxpayers face uniform incentives when Department and the IRS rejected these specifically from qualifying economic making economic decisions, a tenet of alternatives as being inconsistent with activity. The final regulations clarify economic efficiency. other definitions or requirements under what does and does not constitute QBI 3. Anticipated Costs of § 1.199A–3 the Code and therefore unnecessarily for purposes of the section 199A The Treasury Department and the IRS costly for taxpayers to comply with and deduction, providing greater do not anticipate any meaningful the IRS to administer. implementation specificity than provided by the statute. Because economic distortions to be induced by 2. Anticipated Benefits of § 1.199A–2 guaranteed payments for capital, for § 1.199A–3. However, changes to the The Treasury Department and the IRS example, are not at risk in the same way collective paperwork burden arising expect that § 1.199A–2 will implement as other forms of income, it would from this and other sections of these the section 199A deduction in an generally be economically efficient to regulations are discussed in section J, economically efficient manner. For exclude them from QBI. Similarly, the Anticipated impacts on administrative example, § 1.199A–2 will discourage Treasury Department and the IRS and compliance costs, of this analysis. some inefficient transfers of capital proposes that income that is a F. Economic Analysis of § 1.199A–4 given the statute’s silence regarding the guaranteed payment, but which is circumstances in which certain property filtered through a tiered partnership in 1. Background transfers would or would not be order to avoid being labeled as such, Businesses may organize either as C considered under section 199A. should be treated similarly to corporations, which are owned by Specifically, the final rules make clear guaranteed payments in general and stockholders, or in a form generally
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called a passthrough, which may take 3. Anticipated Costs of § 1.199A–4 of gross income from specified service one of several legal forms including sole The final regulations require common activities. The Treasury Department and proprietorships, under which there does majority ownership, in addition to other the IRS concluded that providing a de not exist a clear separation between the requirements, to apply the aggregation minimis exception is necessary to avoid owners and the business’s decision- rule. If no aggregation were allowed, very small amounts of SSTB activity makers. Each organizational structure, taxpayers would have to combine within a trade or business making the in some circumstance, may be businesses to calculate the deduction entire trade or business ineligible for the economically efficient, depending on based on the combined income, wages, deduction, an outcome that is inefficient the risk profile, information and capital. The majority ownership in the context of section 199A. asymmetries, and decision-making threshold may thus encourage owners to 2. Anticipated Benefits of § 1.199A–5 challenges pertaining to the specific concentrate their ownership in order to The Treasury Department and the IRS business and on the risk preferences and benefit from the aggregation rule. The expect that § 1.199A–5 will implement economic situations of the individual additional costs of the final regulations the section 199A deduction in an owners. An economically efficient tax would be limited to those owners who economically efficient manner. To this system would keep the choice among would find merging entities too costly end, § 1.199A–5 clarifies the definition organizational structures neutral based on other market conditions, but of an SSTB. In the absence of such contingent on the provisions of the under these regulations may find it clarification, similarly situated corporate income tax. beneficial to increase their ownership taxpayers might interpret the legislative This principle of neutral tax treatment share in order to aggregate their text differently, leading some taxpayers further applies to the various businesses and maximize their QBI to invest in particular businesses under organizational structures that qualify as deduction. the assumption income earned from that passthroughs. Many passthrough Changes to the collective paperwork entity was eligible for the deduction business entities are connected through burden arising from § 1.199A–4 and while other taxpayers might forgo that ownership, management, or shared other sections of these regulations are investment due to the opposite decision-making. The aggregation rule discussed in section J, Anticipated assumption. These disparate investment allows individuals or entities to impacts on administrative and signals generate economic aggregate their trades or businesses for compliance costs, of this analysis. the purposes of calculating the section inefficiencies. Additionally, similarly 199A deduction. It thus helps ensure G. Economic Analysis of § 1.199A–5 situated taxpayers may interpret the legislative text differently leading to that significant choices over ownership 1. Background and management relationships within equity concerns and possibly businesses are not chosen solely to Section 199A provides a deduction of disadvantaging taxpayers who take a increase the section 199A deduction. up to 20 percent of the taxpayer’s less aggressive approach. These An alternative approach would be not income from qualifying trades or distortions are reduced by the to allow aggregation for purposes of businesses. In the absence of legislative specificity provided in these final claiming the deduction. The Treasury and regulatory constraints, taxpayers regulations relative to a scenario Department and the IRS decided to have an incentive to receive labor without regulations. allow aggregation in the specified income as income earned as a an Furthermore, in the absence of the circumstances to minimize or avoid independent contractor or through regulations, some owners of businesses distortions in organizational form that ownership of an RPE, even though this may find it advantageous to separate could arise if aggregation were not income may not derive from the risk- their business activity into SSTB and allowed. bearing or decision-making efficiencies non-SSTB businesses in order to receive that are unique to being an independent the section 199A deduction on their 2. Anticipated Benefits of § 1.199A–4 contractor or to owning an equity non-SSTB activity. The final regulations The Treasury Department and the IRS interest in an RPE. The TCJA provided would disallow this behavior by stating expect that the aggregation guidance several provisions that bear on this that a taxpayer that provides property or provided in § 1.199A–4 will implement distinction. services to an SSTB that is commonly- the section 199A deduction in an Section 1.199A–5 provides guidance owned will have the portion of property economically efficient manner. on what trades or businesses would be or services provided to the SSTB treated Economic tax principles are called into characterized as an SSTB under each as attributable to an SSTB. Additionally play here because a large number of type of services trade or business listed without these regulations, some businesses that could commonly be in the legislative text. In addition, businesses may have an incentive to thought of as a single trade or business § 1.199A–5 provides an exception to the change employment relationships in actually may be divided across multiple SSTB exclusion if the trade or business favor of independent contractors. Either entities for legal or economic reasons. only earns a small fraction of its gross of these actions would entail some loss Allowing individual owners and entities income from specified service activities of economic efficiency due to changes to aggregate trades or businesses offers (de minimis exception). Finally, the in businesses’ decision-making taxpayers a means of putting together final regulations state that former structures based on tax incentives. The what they think of as their trade or employees providing services as final regulations help to avoid these business for the purposes of claiming independent contractors to their former sources of inefficiency. the deduction under section 199A employer will be presumed to be acting In addition to the statutory threshold without otherwise changing market- as employees unless they provide amount, below which SSTB status is not driven ownership and management evidence that they are providing relevant, § 1.199A–5 provides a de structure incentives. If such aggregation services in a capacity other than an minimis rule with tiered thresholds of were not permitted, certain taxpayers employee. gross revenues arising from specified would restructure their businesses An alternative approach to the de service activity in determining whether solely for tax purposes, with the minimis exception would be to require a trade or business is classified as an resulting structures leading to less businesses or their owners to trigger the SSTB. The threshold for trades or efficient economic decision-making. SSTB exclusion regardless of the share businesses with less than $25 million of
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gross receipts is 10 percent, and for to be derived from SSTB activity, the Anticipated impacts on administrative trades or businesses with more than $25 regulation may cause businesses near and compliance costs, of this analysis. million of gross receipts it is 5 percent. the threshold to decrease their specified I. Economic Analysis of § 1.643(f)–1 This de minimis rule allows trades and service activities or increase their non- businesses that have very little SSTB specified service activities to avoid 1. Background activity to benefit from the deduction. being classified as an SSTB. Section 1.643(f)–1 provides that Absent these regulations, any income Additionally, the de minimis rule may taxpayers cannot set up multiple trusts from SSTB activity could make the encourage smaller entities engaged in in certain cases with a principal entire trade or business ineligible for the SSTBs to merge with larger entities not purpose of tax avoidance, which would deduction. engaged in an SSTB. The economic include the avoidance of the statutory The de minimis thresholds were set at costs of these mergers are difficult to threshold amounts under section 199A. these levels to balance the desire of the quantify. 2. Anticipated Benefits of § 1.643(f)–1 Treasury Department and the IRS to Changes to the collective paperwork Relative to the Baseline allow the deduction for trades and burden arising from § 1.199A–5 and businesses with very small amounts of other sections of these regulations are The Treasury Department and the IRS SSTB activity with the intent of the discussed in section J, Anticipated expect that the § 1.643(f)–1 will legislation to disallow the deduction for impacts on administrative and implement the section 199A deduction trades or businesses involving SSTB compliance costs, of this analysis. in an economically efficient manner. activity. The $25 million threshold is Because § 1.643(f)–1 defines the manner used in multiple statutory provisions H. Economic Analysis of § 1.199A–6 in which multiple trusts are subject to enacted into law by the TCJA as a 1. Background the threshold amount, the Treasury threshold to apply certain rules to Department and the IRS anticipate that smaller businesses. For example, The section 199A deduction is the final regulations will lead to fewer businesses with average annual gross reduced below 20 percent for some resources being devoted to setting up receipts under $25 million are exempt businesses and taxpayers. The attributes trusts in attempts to avoid the threshold from the application of the interest that determine any such reduction must amount rules under section 199A. If deduction limitation under section be determined by taxpayers claiming the multiple trusts have substantially the 163(j), the uniform capitalization section 199A deduction. Section same grantors and beneficiaries, and a (UNICAP) rules under section 263A, 1.199A–6 provides rules for RPEs, PTPs, principal purpose for establishing such and the inventory accounting rules of trusts, and estates relevant to making trusts or contributing additional cash or section 471. The Treasury Department these determinations. In particular, other property to such trusts is the and the IRS chose to adopt this RPEs are required to calculate and avoidance of Federal income tax, then threshold for § 1.199A–5 because of its report their owners’ QBI, SSTB status, the various trusts would be generally prevalent use in the TCJA as a threshold W–2 wages, UBIA of qualified property, considered one trust, including for applicable to smaller businesses and to REIT dividends, and PTP income. section 199A purposes. avoid a proliferation of varying Similarly, PTPs must calculate and thresholds applicable to such businesses report their owners’ QBI, SSTB status, 3. Anticipated Costs of § 1.643(f)–1 in TCJA-related rule-making. REIT dividends, and other PTP income. Relative to the Baseline The SSTB gross revenue percentages The Treasury Department and the IRS 2. Anticipated Benefits of § 1.199A–6 for businesses above and below the $25 do not anticipate any meaningful million threshold were selected to economic distortions to be induced by represent small fractions of income. At The Treasury Department and the IRS expect that § 1.199A–6 will implement § 1.643(f)–1. However, changes to the present, the Treasury and IRS do not collective paperwork burden arising have data to determine what fraction of the section 199A deduction in an from this and other sections of these activity within a trade or business arises economically efficient manner. As with regulations are discussed in section J, from SSTB activity. Treasury and the other regulations discussed in these Anticipated impacts on administrative IRS also do not have data to determine Analyses, a principal benefit of and compliance costs, of this analysis. whether or to what extent it would be § 1.199A–6 is to increase the likelihood advantageous for businesses to that all taxpayers interpret the statutory J. Anticipated Impacts on restructure in order to avoid the SSTB rules of section 199A similarly. Administrative and Compliance Costs classification based on de minimis Additionally, we expect that requiring 1. Discussion standards set at various percentage RPEs to determine and report the levels nor, if businesses were to information necessary to compute the The final regulations have a number restructure, what the economic section 199A deduction will result in a of effects on taxpayers’ compliance consequences would be at those various more accurate and uniform application costs. Section 1.199A–2 provides percentage levels. The stipulated of the regulations and statute relative to guidance in determining a taxpayer’s percentages represent the best judgment an alternative approach under which share of W–2 wages and UBIA of of Treasury and the IRS regarding individual owners would most likely qualified property. The Treasury percentages that efficiently balance determine these items. Department and the IRS expect that this compliance costs for taxpayers, effective 3. Anticipated Costs of § 1.199A–6 guidance reduces the tax compliance administration of section 199A, and Relative to the Baseline costs of making this determination and revenue considerations. Treasury and reduces uncertainty. In the absence of the IRS received several comments on The Treasury Department and the IRS the regulations, taxpayers would still these percentages and discuss these do not anticipate any meaningful need to determine how to allocate W– comments in the preamble. economic distortions to be induced by 2 wages and UBIA of qualified property, § 1.199A–6. However, changes to the among other calculations. These 3. Anticipated Costs of § 1.199A–5 collective paperwork burden arising regulations provide clear instructions By providing a de minimis rule to from this and other sections of these for how to do this, simplifying the allow a small fraction of gross receipts regulations are discussed in section J, process of complying with the law.
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Section 1.199A–4 requires that information. Under the final regulations, burden. Second, the Treasury owners who decide to aggregate their owners will receive information Department and the IRS project that—in trades or businesses report the pertaining to the section 199A complying with the § 1.199A–6 aggregation annually. This reporting deduction from the RPE, such as requirement to report relevant section requirement adds to the tax compliance whether a given trade or business is an 199A information to their burden of these owners. For owners SSTB, whereas in the alternate they approximately 8.8 million owners— who consider aggregating, these could have been required to make such RPEs will spend 2.75 hours annually regulations increase compliance costs determinations themselves. per owner, resulting in a 24.2 million because the owners must calculate their Overall, it is likely to be more hour increase in reporting burden. deduction for both disaggregated and efficient for RPEs, rather than individual These estimates do not include the aggregated trades or businesses to make owners, to keep records of section 199A decrease in compliance costs to the aggregation decision. These deduction information. Therefore, the individuals who would no longer find it additional compliance costs would be Treasury Department and the IRS expect necessary to compute the quantities voluntary and accrue only to owners that § 1.199A–6 will reduce compliance detailed in § 1.199A–6 because they costs on net and relative to these who find it beneficial to aggregate for would receive this information from alternative scenarios. the purposes of calculating their section each RPE. Nor do these estimates reflect 199A deduction. The final regulations 2. Estimated Effect on Compliance Costs the decrease in compliance costs also allow for aggregation at the entity outlined above. level. This will generally reduce As explained above, key provisions of reporting and compliance costs for §§ 1.199A–1 through 1.199A–6 will Valuations of the burden hours of individual owners, relative to allowing reduce compliance costs that taxpayers $39/hour in the case of individuals aggregation only at the individual owner would likely have incurred in the making aggregation decisions and $53/ level, because the entity may have easier absence of the regulations. Most hour in the case of RPEs reporting access to the facts and circumstances notably, the de minimis rule of section 199A information lead to gross required for aggregation. § 1.199A–5 provides that a trade or reporting annualized costs to taxpayers Section 1.199A–5 includes a business will not be considered to be an of $1.36 billion (3 percent rate) to $1.37 requirement for former employees SSTB merely because it provides a small billion (7 percent rate) ($2017). These working as independent contractors for amount of services in a specified service estimates do not account for the their former employer to show that their activity. This provision is expected to provisions of the final regulations that employment relationship has changed reduce compliance costs associated with will substantially reduce compliance in order to be eligible for the section section 199A for millions of U.S. costs. These estimates assume that the 199A deduction. The burden to businesses. In addition, the aggregation costs are approximately the same substantiate employment status exists rules will reduce overall costs for proportion of GDP each year. It is without these regulations; however, the taxpayers because some taxpayers possible, however, that costs will be final regulation may increase these would otherwise restructure their higher in the first years that the individuals’ compliance costs slightly. business arrangements in order to deduction is allowed and lower in Section 1.199A–6 specifies that RPEs receive the benefit of the deduction. future years once taxpayers have more must report relevant section 199A These and other discretionary choices experience with the calculations and information to owners. Due to these by the Treasury Department and the IRS reporting requirements associated with entity reporting requirements, the final in the final regulations will the deduction. Finally, the estimates regulations will increase compliance substantially reduce taxpayers’ reflect data for entities of a size and costs for RPEs. These entities will need compliance costs. form expected to be impacted by section The Treasury Department and the IRS to keep records of new information 199A. More specifically, because of the also assessed the provisions of the final relevant to the calculation of their scope of the section 199A deduction, regulations that could increase owners’ section 199A deduction, such the Treasury Department and the IRS compliance burdens. The Treasury as QBI, W–2 wages, SSTB status, and expect the majority of affected entities UBIA of qualified property. This Department and the IRS estimate that to be primarily small, and medium in recordkeeping is costly. Without these these regulations will lead to a gross size. regulations, it is likely that only some (not net) increase in total reporting RPEs would engage in this record burden of 25 million hours annually. The Treasury Department and the IRS keeping. This estimate primarily reflects two received a comment that the hours Section 1.199A–6 reduces the effects of the regulations. First, the assumptions for the compliance costs compliance burden on many Treasury Department and the IRS were too small. The hours estimates individuals that own RPEs relative a project that approximately 1.2 million were not revised because the scenario in which no regulations were individuals with more than one directly commenter’s discussion focused mainly issued or regulatory alternatives that owned or passthrough business who on the effort required to compute the assigned each owner of an RPE the voluntarily choose to aggregate will values necessary to calculate the responsibility to acquire the required spend 0.66 hours annually complying deduction not on the specific information were issued without any with § 1.199A–4, resulting in a 0.7 aggregation or reporting requirements requirement for the RPE to provide such million hour increase in reporting estimated here.
Years 2018 to 2027 Years 2018 to 2027 Annualized monetized effect on compliance costs from final regulations (3% discount rate, millions $2017) (7% discount rate, millions $2017)
Estimated Gross Costs ...... $1,357 ...... $1,368. Estimated Savings ...... Not quantified ...... Not quantified. Estimated net change in compliance costs ...... Not quantified ...... Not quantified.
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OMB control number 1545–0123 and the IRS have determined that the that conduct, directly or indirectly, one represents a total estimated burden regulations may affect a substantial or more trades or businesses. Section time, including all other related forms number of small entities (businesses 1.199A–6 requires such an entity to and schedules, of 3.157 billion hours entities with receipts below $10 million) attach a statement describing the QBI, and total estimated monetized costs of but have also concluded that the W–2 wages, and UBIA of qualified $58.148 billion (available at: https:// economic impact on small entities as a property for each separate trade or www.federalregister.gov/documents/ result of the collections of information business to the Schedule K–1 required 2018/10/09/2018-21846/proposed- in this regulation is not expected to be under existing law to be issued to each collection-comment-request-for-forms- significant. beneficiary, partner, or shareholder. 1065-1065-b-1066-1120-1120-c-1120-f- The collection in § 1.199A–4 may Although data is not available to 1120-h-1120-nd). Likewise, OMB apply to RPEs, individuals, and certain estimate the number of small entities control number 1545–0074 represents a trusts or estates that have qualified (business entities with receipts below total estimated burden time, including business income (QBI) under section $10 million) affected by the § 1.199A–6 all other related forms and schedules, of 199A and that choose to aggregate two requirements, the Treasury Department 1.784 billion hours and total estimated or more trades or businesses for and the IRS project that number would monetized costs of $31.764 billion. purposes of section 199A. If a taxpayer include a substantial number of small OMB Control number 1545–0092 chooses to aggregate its trades or entities. represents burden hours of roughly businesses, the taxpayer, must include As discussed elsewhere in this 917,800 hours. The burden estimates an attachment to its tax return preamble, the reporting burden is provided by the IRS under the OMB identifying and describing each trade or estimated at 30 minutes to 20 hours, Numbers listed in the above table are business aggregated, describing changes depending on individual circumstances, aggregate amounts that relate to the to the aggregated group, and providing with an estimated average of 2.5 hours entire package of forms associated with other information as the Commissioner for all affected entities, regardless of the OMB control number, and do not may require in forms, instructions, or size. The burden on entities (those with include the estimated burden changes other published guidance. Aggregation business receipts below $10 million) is related to the additional burdens is not required by a person claiming the expected to be at the lower end of the contemplated in this final rule such as section 199A deduction, and therefore, range (30 minutes to 2.5 hours). Using attaching the applicable statement to the collection of information in the IRS’s taxpayer compliance cost Form 1040 or Schedule K–1 for the § 1.199A–4 is required only if the estimates, taxpayers who are self- Form 1041, Form 1065, or Form 1120S, person or RPE chooses to aggregate employed with multiple businesses are as appropriate, to ensure the correct multiple trades or businesses. Because estimated to have a monetization rate of amount of deduction is reported under the Treasury Department and the IRS do $39 per hour. Passthroughs that issue section 199A. The Treasury department not yet have data on how many small K–1s have a monetization rate of $53 anticipates incorporating these burdens entities will choose to aggregate per hour. Thus, the annual aggregate in the next annual cycle of the above multiple trades or businesses, the burden on businesses with gross aggregated collections, and the public number of affected entities is not receipts below $10 million is between will have an opportunity to comment on estimated at this time. However, the $19.50 and $132.50 per business. those estimates at that time. Treasury Department and the IRS have Moreover, the Treasury Department determined that the majority of and the IRS have determined that there K. Executive Order 13771 businesses and particularly small would be no significant economic These final regulations have been businesses (businesses entities with impact on affected entities. Based on designated as regulatory under E.O. receipts below $10 million) will choose published information from the 13771. not to aggregate or will have no call to Conference Report accompanying the do so. Aggregation is potentially Act, H.R. Rep. No. 155–446, at 683 II. Regulatory Flexibility Act beneficial to businesses with individual (2017), and Statistics of Income It is hereby certified that the owners who have taxable income above aggregate data, the projected net tax collections of information in $315,000 for married filing joint revenue losses from section 199A are §§ 1.199A–4 and 1.199A–6 will not have taxpayers and $157,500 for others. estimated to be only a small fraction of a significant economic impact on a Approximately three-quarters of the business receipts of S corporations substantial number of small entities. passthrough businesses are structured as (including subchapter S banks), Based on Joint Committee on Taxation a sole proprietorship and therefore only partnerships, and non-farm sole (JCT) analysis of 2014 tax returns, there have one owner. The Treasury proprietorships projected to 2027. See were approximately 4.3 million S Department and the IRS estimate that the following table in this Part II. These corporations, 3.6 million partnerships, approximately 95 percent of these revenue projections, which represent a 24.6 million non-farm sole businesses have owners below the reduced tax liability for these proprietorships with receipts below $10 income threshold and therefore, would businesses, include both the effects of million, and 1.8 million farm sole not need to aggregate to receive the full the statute as well as the regulations. proprietorships with gross income benefit of the section 199A deduction. The reduction in tax liability varies below $10 million. See Present Law and The small entities subject to the from 0.02 percent to 0.49 percent of Background Regarding the Federal collection of information in § 1.199A–6 gross receipts, an economic impact that Income Taxation of Small Businesses are business entities formed as estates, is not regarded as substantial under the JCX–32–17. The Treasury Department trusts, partnerships, or S corporations Regulatory Flexibility Act.
Fiscal years 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Net Tax Reduction 1 ($billions) ...... 27.7 47.1 49.9 51.8 52.8 52.2 53.6 53.2 24.2 1.9 Total Business Receipts 2 ($ billions) ...... 10095.1 10306.7 10415.2 10525.7 10638.0 10752.2 10868.4 10986.5 11106.96 11228.7
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Fiscal years 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Percent ...... 0.27 0.46 0.48 0.49 0.50 0.49 0.49 0.48 0.22 0.02 1 Tax revenue effects of 199A are from the Conference Report accompanying the Act. 2 To the extent that some ‘‘not small’’ passthroughs are reflected in this table, the percentages reported represent an underestimate of the tax cut that those small businesses will receive. 3 Business receipt figures for 2013 S Corp (https://www.irs.gov/statistics/soi-tax-stats-table-1-returns-of-active-corporations-form-1120s), 2016 Sole Prop (https:// www.irs.gov/statistics/soi-tax-stats-nonfarm-sole-proprietorship-statistics), and 2015 Partnerships (https://www.irs.gov/statistics/soi-tax-stats-partnership-statistics-by- sector-or-industry) come from published SOI data. Amounts for 2017 through 2029 are projected using historical growth rates.
Finally, no comments regarding the ■ Par. 2. Section 1.199A–0 is added to (3) Self-employment tax and net economic impact of these regulations on read as follows: investment income tax. small entities were received. For these (4) Commonwealth of Puerto Rico. § 1.199A–0 Table of contents. (5) Coordination with alternative minimum reasons, the Treasury Department and tax. the IRS have determined that the This section lists the section headings (6) Imposition of accuracy-related penalty collection of information in this final that appear in §§ 1.199A–1 through on underpayments. rulemaking will not have a significant 1.199A–6. (7) Reduction for income received from economic impact. Accordingly, a cooperatives. § 1.199A–1 Operational rules. regulatory flexibility analysis under the (f) Applicability date. Regulatory Flexibility Act (5 U.S.C. (a) Overview. (1) General rule. (1) In general. chapter 6) is not required. (2) Exception for non-calendar year RPE. (2) Usage of term individual. § 1.199A–2 Determination of W–2 Wages Pursuant to section 7805(f) of the (b) Definitions. Code, this final rulemaking has been and unadjusted basis immediately after (1) Aggregated trade or business. acquisition of qualified property. submitted to the Chief Counsel for (2) Applicable percentage. (a) Scope. Advocacy of the Small Business (3) Net capital gain. (1) In general. Administration for comment on its (4) Phase-in range. (2) W–2 wages. (5) Qualified business income (QBI). impact on small business. (3) UBIA of qualified property. (6) QBI component. (i) In general. Drafting Information (7) Qualified PTP income. (ii) UBIA of qualified property held by a (8) Qualified REIT dividends. The principal authors of these partnership. (9) Reduction amount. regulations are Robert D. Alinsky, (iii) UBIA of qualified property held by an (10) Relevant passthrough entity (RPE). Vishal R. Amin, Margaret Burow, Frank S corporation. (11) Specified service trade or business J. Fisher, and Wendy L. Kribell, Office (iv) UBIA and section 743(b) basis (SSTB). adjustments. of the Associate Chief Counsel (12) Threshold amount. (Passthroughs and Special Industries). (A) In general. (13) Total QBI amount. (B) Excess section 743(b) basis However, other personnel from the (14) Trade or business. adjustments. Treasury Department and the IRS (15) Unadjusted basis immediately after the (C) Computation of partner’s share of UBIA participated in their development. acquisition of qualified property (UBIA of with excess section 734(b) basis adjustments. qualified property). List of Subjects in 26 CFR Part 1 (D) Examples. (16) W–2 Wages. (b) W–2 wages. Income taxes, Reporting and (c) Computation of the section 199A (1) In general. recordkeeping requirements. deduction for individuals with taxable (2) Definition of W–2 wages. income not exceeding threshold amount. (i) In general. Amendments to the Regulations (1) In general. (ii) Wages paid by a person other than a Accordingly, 26 CFR part 1 is (2) Carryover rules. common law employer. (i) Negative total QBI amount. amended as follows: (iii) Requirement that wages must be (ii) Negative combined qualified REIT reported on return filed with the Social dividends/qualified PTP income. PART 1—INCOME TAXES Security Administration. (3) Examples. (A) In general. ■ Paragraph 1. The authority citation (d) Computation of the section 199A (B) Corrected return filed to correct a deduction for individuals with taxable return that was filed within 60 days of the for part 1 is amended by adding income above the threshold amount. sectional authorities for §§ 1.199A–1 due date. (1) In general. (C) Corrected return filed to correct a through 1.199A–6 and § 1.643(f) to read (2) QBI component. return that was filed later than 60 days after in part as follows: (i) SSTB exclusion. the due date. (ii) Aggregated trade or business. Authority: 26 U.S.C. 7805 * * * (iv) Methods for calculating W–2 Wages. (iii) Netting and carryover. (A) In general. Section 1.199A–1 also issued under 26 (A) Netting. U.S.C. 199A(f)(4). (B) Acquisition or disposition of a trade or (B) Carryover of negative total QBI amount. Section 1.199A–2 also issued under 26 business. (iv) QBI component calculation. U.S.C. 199A(b)(5), (f)(1)(A), (f)(4), and (h). (1) In general. (A) General rule. Section 1.199A–3 also issued under 26 (2) Acquisition or disposition. (B) Taxpayers with taxable income within U.S.C. 199A(c)(4)(C) and (f)(4). (C) Application in the case of a person with Section 1.199A–4 also issued under 26 phase-in range. a short taxable year. U.S.C. 199A(f)(4). (3) Qualified REIT dividends/qualified PTP (1) In general. Section 1.199A–5 also issued under 26 income component. (2) Short taxable year that does not include U.S.C. 199A(f)(4). (i) In general. December 31. Section 1.199A–6 also issued under 26 (ii) SSTB exclusion. (D) Remuneration paid for services U.S.C. 199A(f)(1)(B) and (f)(4). (iii) Negative combined qualified REIT performed in the Commonwealth of Puerto dividends/qualified PTP income. Rico. * * * * * (4) Examples. (3) Allocation of wages to trades or Section 1.643(f)–1 also issued under 26 (e) Special rules. businesses. U.S.C. 643(f). (1) Effect of deduction. (4) Allocation of wages to QBI. * * * * * (2) Disregarded entities. (5) Non-duplication rule.
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(c) UBIA of qualified property. (2) Exceptions. is the reputation or skill of one or more of (1) Qualified property. (i) Anti-abuse rules. its employees or owners. (i) In general. (ii) Non-calendar year RPE. (3) Examples. (ii) Improvements to qualified property. § 1.199A–4 Aggregation. (c) Special rules. (iii) Adjustments under sections 734(b) and (a) Scope and purpose. (1) De minimis rule. 743(b). (b) Aggregation rules. (i) Gross receipts of $25 million or less. (iv) Property acquired at end of year. (1) General rule. (ii) Gross receipts of greater than $25 (2) Depreciable period. (2) Operating rules. million. (i) In general. (i) Individuals. (2) Services or property provided to an (ii) Additional first-year depreciation (ii) RPEs. SSTB. under section 168. (c) Reporting and consistency. (i) In general. (iii) Qualified property acquired in (1) For individual. (ii) 50 percent or more common ownership. transactions subject to section 1031 or (2) Individual disclosure. (iii) Examples. section 1033. (i) Required annual disclosure. (d) Trade or business of performing (A) Replacement property received in a (ii) Failure to disclose. services as an employee. section 1031 or 1033 transaction. (3) For RPEs. (1) In general. (B) Other property received in a section (i) Required annual disclosure. (2) Employer’s Federal employment tax 1031 or 1033 transaction. (ii) Failure to disclose. classification of employee immaterial. (iv) Qualified property acquired in (d) Examples. (3) Presumption that former employees are transactions subject to section 168(i)(7)(B). (e) Applicability date. still employees. (v) Excess section 743(b) basis adjustment. (1) General rule. (i) Presumption. (3) Unadjusted basis immediately after (2) Exception for non-calendar year RPE. (ii) Rebuttal of presumption. acquisition. § 1.199A–5 Specified service trades or (iii) Examples. (i) In general. businesses and the trade or business of (e) Applicability date. (ii) Qualified property acquired in a like- performing services as an employee. (1) General rule. kind exchange. (2) Exceptions. (A) In general. (a) Scope and effect. (1) Scope. (i) Anti-abuse rules. (B) Excess boot. (ii) Non-calendar year RPE. (iii) Qualified property acquired pursuant (2) Effect of being an SSTB. § 1.199A–6 Relevant passthrough entities to an involuntary conversion. (3) Trade or business of performing (RPEs), publicly traded partnerships (A) In general. services as an employee. (PTPs), trusts, and estates. (B) Excess boot. (b) Definition of specified service trade or (iv) Qualified property acquired in business. (a) Overview. transactions described in section 168(i)(7)(B). (1) Listed SSTBs. (b) Computational and reporting rules for (v) Qualified property acquired from a (2) Additional rules for applying section RPEs. decedent. 199A(d)(2) and paragraph (b) of this section. (1) In general. (vi) Property acquired in a nonrecognition (i) In general. (2) Computational rules. transaction with principal purpose of (A) No effect on other tax rules. (3) Reporting rules for RPEs. increasing UBIA. (B) Hedging transactions. (i) Trade or business directly engaged in. (4) Examples. (ii) Meaning of services performed in the (ii) Other items. (d) Applicability date. field of health. (iii) Failure to report information. (1) General rule. (iii) Meaning of services performed in the (c) Computational and reporting rules for (2) Exceptions. field of law. PTPs. (i) Anti-abuse rules. (iv) Meaning of services performed in the (1) Computational rules. (ii) Non-calendar year RPE. field of accounting. (2) Reporting rules. (v) Meaning of services performed in the § 1.199A–3 Qualified business income, (d) Application to trusts, estates, and field of actuarial science. beneficiaries. qualified REIT dividends, and qualified (vi) Meaning of services performed in the PTP income. (1) In general. field of performing arts. (2) Grantor trusts. (a) In general. (vii) Meaning of services performed in the (3) Non-grantor trusts and estates. (b) Definition of qualified business income. field of consulting. (i) Calculation at entity level. (1) In general. (viii) Meaning of services performed in the (ii) Allocation among trust or estate and (i) Section 751 gain. field of athletics. beneficiaries. (ii) Guaranteed payments for the use of (ix) Meaning of services performed in the capital. (iii) [Reserved] field of financial services. (iv) Threshold amount. (iii) Section 481 adjustments. (x) Meaning of services performed in the (iv) Previously disallowed losses (v) [Reserved] field of brokerage services. (vi) Electing small business trusts. (v) Net operating losses. (xi) Meaning of the provision of services in (vii) Anti-abuse rule for creation of a trust (vi) Other deductions. investing and investment management. to avoid exceeding the threshold amount. (2) Qualified items of income, gain, (xii) Meaning of the provision of services (viii) Example. deduction, and loss. in trading. (e) Applicability date. (i) In general. (xiii) Meaning of the provision of services (1) General rule. (ii) Items not taken into account. in dealing. (2) Exceptions. (3) Commonwealth of Puerto Rico. (A) Dealing in securities. (i) Anti-abuse rules. (4) Wages. (B) Dealing in commodities. (ii) Non-calendar year RPE. (5) Allocation of items among directly- (1) Qualified active sale. conducted trades or businesses. (2) Active conduct of a commodities ■ Par. 3. Section 1.199A–1 is added to (c) Qualified REIT dividends and qualified business. read as follows: PTP income. (3) Directly holds commodities as (1) In general. inventory or similar property. § 1.199A–1 Operational rules. (2) Qualified REIT dividend. (4) Directly incurs substantial expenses in (a) Overview—(1) In general. This (3) Qualified PTP income. the ordinary course. (i) In general. (5) Significant activities for purposes of section provides operational rules for (ii) Special rules. paragraph (b)(2)(xiii)(B)(4)(iii) of this section. calculating the section 199A(a) qualified (d) [Reserved] (C) Dealing in partnership interests. business income deduction (section (e) Applicability date. (xiv) Meaning of trade or business where 199A deduction) under section 199A of (1) General rule. the principal asset of such trade or business the Internal Revenue Code (Code). This
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section refers to the rules in §§ 1.199A– (8) Qualified REIT dividends are rise to the level of a section 162 trade 2 through 1.199A–6. This paragraph (a) defined in § 1.199A–3(c)(2). or business is nevertheless treated as a provides an overview of this section. (9) Reduction amount means, with trade or business for purposes of section Paragraph (b) of this section provides respect to any taxable year, the excess 199A, if the property is rented or definitions that apply for purposes of amount multiplied by the ratio that the licensed to a trade or business section 199A and §§ 1.199A–1 through taxable income of the individual for the conducted by the individual or an RPE 1.199A–6. Paragraph (c) of this section taxable year in excess of the threshold which is commonly controlled under provides computational rules and amount, bears to $50,000 (or $100,000 § 1.199A–4(b)(1)(i) (regardless of examples for individuals whose taxable in the case of a joint return). For whether the rental activity and the trade income does not exceed the threshold purposes of this paragraph (b)(9), the or business are otherwise eligible to be amount. Paragraph (d) of this section excess amount is the amount by which aggregated under § 1.199A–4(b)(1)). provides computational rules and 20 percent of QBI exceeds the greater of (15) Unadjusted basis immediately examples for individuals whose taxable 50 percent of W–2 wages or the sum of after acquisition of qualified property income exceeds the threshold amount. 25 percent of W–2 wages plus 2.5 (UBIA of qualified property) is defined Paragraph (e) of this section provides percent of the UBIA of qualified in § 1.199A–2(c). special rules for purposes of section property. (16) W–2 wages means W–2 wages of 199A and §§ 1.199A–1 through 1.199A– (10) Relevant passthrough entity a trade or business (or aggregated trade 6. This section and §§ 1.199A–2 through (RPE) means a partnership (other than a or business) properly allocable to QBI as 1.199A–6 do not apply for purposes of PTP) or an S corporation that is owned, determined under § 1.199A–2(b). calculating the deduction in section directly or indirectly, by at least one (c) Computation of the section 199A 199A(g) for specified agricultural and individual, estate, or trust. Other deduction for individuals with taxable horticultural cooperatives. passthrough entities including common income not exceeding threshold (2) Usage of term individual. For trust funds as described in § 1.6032–T amount—(1) In general. The section purposes of applying the rules of and religious or apostolic organizations 199A deduction is determined for §§ 1.199A–1 through 1.199A–6, a described in section 501(d) are also individuals with taxable income for the reference to an individual includes a treated as RPEs if the entity files a Form taxable year that does not exceed the reference to a trust (other than a grantor 1065, U.S. Return of Partnership threshold amount by adding 20 percent trust) or an estate to the extent that the Income, and is owned, directly or of the total QBI amount (including the section 199A deduction is determined indirectly, by at least one individual, individual’s share of QBI from an RPE by the trust or estate under the rules of estate, or trust. A trust or estate is and QBI attributable to an SSTB) and 20 § 1.199A–6. treated as an RPE to the extent it passes percent of the combined amount of (b) Definitions. For purposes of through QBI, W–2 wages, UBIA of qualified REIT dividends and qualified section 199A and §§ 1.199A–1 through qualified property, qualified REIT PTP income (including the individual’s 1.199A–6, the following definitions dividends, or qualified PTP income. share of qualified REIT dividends and apply: (11) Specified service trade or qualified PTP income from RPEs and (1) Aggregated trade or business business (SSTB) means a specified qualified PTP income attributable to an means two or more trades or businesses service trade or business as defined in SSTB). That sum is then compared to 20 that have been aggregated pursuant to § 1.199A–5(b). percent of the amount by which the § 1.199A–4. (12) Threshold amount means, for any individual’s taxable income exceeds net (2) Applicable percentage means, taxable year beginning before 2019, capital gain. The lesser of these two with respect to any taxable year, 100 $157,500 (or $315,000 in the case of a amounts is the individual’s section percent reduced (not below zero) by the taxpayer filing a joint return). In the 199A deduction. percentage equal to the ratio that the case of any taxable year beginning after (2) Carryover rules—(i) Negative total taxable income of the individual for the 2018, the threshold amount is the dollar QBI amount. If the total QBI amount is taxable year in excess of the threshold amount in the preceding sentence less than zero, the portion of the amount, bears to $50,000 (or $100,000 increased by an amount equal to such individual’s section 199A deduction in the case of a joint return). dollar amount, multiplied by the cost- related to QBI is zero for the taxable (3) Net capital gain means net capital of-living adjustment determined under year. The negative total QBI amount is gain as defined in section 1222(11) plus section 1(f)(3) of the Code for the treated as negative QBI from a separate any qualified dividend income (as calendar year in which the taxable year trade or business in the succeeding defined in section 1(h)(11)(B)) for the begins, determined by substituting taxable years of the individual for taxable year. ‘‘calendar year 2017’’ for ‘‘calendar year purposes of section 199A and this (4) Phase-in range means a range of 2016’’ in section 1(f)(3)(A)(ii). The section. This carryover rule does not taxable income between the threshold amount of any increase under the affect the deductibility of the loss for amount and the threshold amount plus preceding sentence is rounded as purposes of other provisions of the $50,000 (or $100,000 in the case of a provided in section 1(f)(7) of the Code. Code. joint return). (13) Total QBI amount means the net (ii) Negative combined qualified REIT (5) Qualified business income (QBI) total QBI from all trades or businesses dividends/qualified PTP income. If the means the net amount of qualified items (including the individual’s share of QBI combined amount of REIT dividends of income, gain, deduction, and loss from trades or business conducted by and qualified PTP income is less than with respect to any trade or business (or RPEs). zero, the portion of the individual’s aggregated trade or business) as (14) Trade or business means a trade section 199A deduction related to determined under the rules of § 1.199A– or business that is a trade or business qualified REIT dividends and qualified 3(b). under section 162 (a section 162 trade PTP income is zero for the taxable year. (6) QBI component means the amount or business) other than the trade or The negative combined amount must be determined under paragraph (d)(2) of business of performing services as an carried forward and used to offset the this section. employee. In addition, rental or combined amount of REIT dividends (7) Qualified PTP income is defined in licensing of tangible or intangible and qualified PTP income in the § 1.199A–3(c)(3). property (rental activity) that does not succeeding taxable years of the
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individual for purposes of section 199A 20% of B and C’s total taxable income for the prior to applying the netting and and this section. This carryover rule taxable year ($270,000 × 20% = $54,000). carryover rules described in paragraph does not affect the deductibility of the (iv) Example 4. Assume the same facts as (d)(2)(iii) of this section and the W–2 in Example 3 of paragraph (c)(3)(iii) of this loss for purposes of other provisions of section except that B also earns $1,000 in wage and UBIA of qualified property the Code. qualified REIT dividends and $500 in limitations described in paragraph (3) Examples. The following examples qualified PTP income in 2018, increasing (d)(2)(iv) of this section. illustrate the provisions of this taxable income to $271,500. B and C’s section (iii) Netting and carryover—(A) paragraph (c). For purposes of these 199A deduction is equal to $20,300, the Netting. If an individual’s QBI from at examples, unless indicated otherwise, lesser of: least one trade or business (including an assume that all of the trades or (A) 20% of C’s QBI from the business ($100,000 × 20% = $20,000) plus 20% of B’s aggregated trade or business) is less than businesses are trades or businesses as zero, the individual must offset the QBI defined in paragraph (b)(14) of this combined qualified REIT dividends and qualified PTP income ($1,500 × 20% = $300); attributable to each trade or business (or section and all of the tax items are and aggregated trade or business) that effectively connected to a trade or (B) 20% of B and C’s total taxable for the produced net positive QBI with the QBI business within the United States taxable year ($271,500 × 20% = $54,300). from each trade or business (or within the meaning of section 864(c). (d) Computation of the section 199A aggregated trade or business) that Total taxable income does not include deduction for individuals with taxable produced net negative QBI in the section 199A deduction. income above threshold amount—(1) In proportion to the relative amounts of net (i) Example 1. A, an unmarried individual, general. The section 199A deduction is QBI in the trades or businesses (or owns and operates a computer repair shop as determined for individuals with taxable aggregated trades or businesses) with a sole proprietorship. The business generates income for the taxable year that exceeds positive QBI. The adjusted QBI is then $100,000 in net taxable income from the threshold amount by adding the QBI used in paragraph (d)(2)(iv) of this operations in 2018. A has no capital gains or section. The W–2 wages and UBIA of losses. After allowable deductions not component described in paragraph relating to the business, A’s total taxable (d)(2) of this section and the qualified qualified property from the trades or income for 2018 is $81,000. The business’s REIT dividends/qualified PTP income businesses (including aggregated trades QBI is $100,000, the net amount of its component described in paragraph or businesses) that produced net qualified items of income, gain, deduction, (d)(3) of this section (including the negative QBI are not taken into account and loss. A’s section 199A deduction for individual’s share of qualified REIT for purposes of this paragraph (d) and 2018 is equal to $16,200, the lesser of 20% are not carried over to the subsequent × dividends and qualified PTP income of A’s QBI from the business ($100,000 year. 20% = $20,000) and 20% of A’s total taxable from RPEs). That sum is then compared income for the taxable year ($81,000 × 20% to 20 percent of the amount by which (B) Carryover of negative total QBI = $16,200). the individual’s taxable income exceeds amount. If an individual’s QBI from all (ii) Example 2. Assume the same facts as net capital gain. The lesser of these two trades or businesses (including in Example 1 of paragraph (c)(3)(i) of this amounts is the individual’s section aggregated trades or businesses) section, except that A also has $7,000 in net 199A deduction. combined is less than zero, the QBI capital gain for 2018 and that, after allowable (2) QBI component. An individual component is zero for the taxable year. deductions not relating to the business, A’s with taxable income for the taxable year taxable income for 2018 is $74,000. A’s This negative amount is treated as taxable income minus net capital gain is that exceeds the threshold amount negative QBI from a separate trade or $67,000 ($74,000¥$7,000). A’s section 199A determines the QBI component using business in the succeeding taxable years deduction is equal to $13,400, the lesser of the following computational rules, of the individual for purposes of section 20% of A’s QBI from the business ($100,000 which are to be applied in the order 199A and this section. This carryover × 20% = $20,000) and 20% of A’s total they appear. rule does not affect the deductibility of taxable income minus net capital gain for the (i) SSTB exclusion. If the individual’s the loss for purposes of other provisions × taxable year ($67,000 20% = $13,400). taxable income is within the phase-in of the Code. The W–2 wages and UBIA (iii) Example 3. B and C are married and range, then only the applicable of qualified property from the trades or file a joint individual income tax return. B percentage of QBI, W–2 wages, and earns $50,000 in wages as an employee of an businesses (including aggregated trades unrelated company in 2018. C owns 100% of UBIA of qualified property for each or businesses) that produced net the shares of X, an S corporation that SSTB is taken into account for all negative QBI are not taken into account provides landscaping services. X generates purposes of determining the for purposes of this paragraph (d) and $100,000 in net income from operations in individual’s section 199A deduction, are not carried over to the subsequent 2018. X pays C $150,000 in wages in 2018. including the application of the netting year. B and C have no capital gains or losses. After and carryover rules described in allowable deductions not related to X, B and (iv) QBI component calculation—(A) paragraph (d)(2)(iii) of this section. If General rule. Except as provided in C’s total taxable income for 2018 is $270,000. the individual’s taxable income exceeds B’s and C’s wages are not considered to be paragraph (d)(2)(iv)(B) of this section, the phase-in range, then none of the income from a trade or business for purposes the QBI component is the sum of the of the section 199A deduction. Because X is individual’s share of QBI, W–2 wages, amounts determined under this an S corporation, its QBI is determined at the or UBIA of qualified property paragraph (d)(2)(iv)(A) for each trade or S corporation level. X’s QBI is $100,000, the attributable to an SSTB may be taken business (or aggregated trade or net amount of its qualified items of income, into account for purposes of business). For each trade or business (or gain, deduction, and loss. The wages paid by determining the individual’s section X to C are considered to be a qualified item aggregated trade or business) (including 199A deduction. trades or businesses operated through of deduction for purposes of determining X’s (ii) Aggregated trade or business. If an RPEs) the individual must determine QBI. The section 199A deduction with individual chooses to aggregate trades or respect to X’s QBI is then determined by C, the lesser of— X’s sole shareholder, and is claimed on the businesses under the rules of § 1.199A– 4, the individual must combine the QBI, (1) 20 percent of the QBI for that trade joint return filed by B and C. B and C’s or business (or aggregated trade or section 199A deduction is equal to $20,000, W–2 wages, and UBIA of qualified the lesser of 20% of C’s QBI from the property of each trade or business business); or business ($100,000 × 20% = $20,000) and within an aggregated trade or business (2) The greater of—
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(i) 50 percent of W–2 wages with SSTB may be taken into account for the business’s QBI or 2.5% of its UBIA of respect to that trade or business (or purposes of determining the qualified property. Twenty percent of the aggregated trade or business); or individual’s section 199A deduction. $4,000,000 of QBI is $800,000. Two and one- (ii) The sum of 25 percent of W–2 (iii) Negative combined qualified half percent of the $10,000,000 UBIA of wages with respect to that trade or qualified property is $250,000. The QBI REIT dividends/qualified PTP income. If component of D’s section 199A deduction is business (or aggregated trade or the combined amount of REIT dividends thus limited to $250,000. D’s section 199A business) plus 2.5 percent of the UBIA and qualified PTP income is less than deduction is equal to the lesser of: of qualified property with respect to that zero, the portion of the individual’s (A) 20% of the QBI from the business as trade or business (or aggregated trade or section 199A deduction related to limited ($250,000); or business). qualified REIT dividends and qualified (B) 20% of D’s taxable income ($3,980,000 (B) Taxpayers with taxable income PTP income is zero for the taxable year. × 20% = $796,000). Therefore, D’s section within phase-in range. If the The negative combined amount must be 199A deduction for 2020 is $250,000. (iii) Example 3. E, an unmarried individual’s taxable income is within carried forward and used to offset the the phase-in range and the amount individual, is a 30% owner of LLC, which is combined amount of REIT dividends/ classified as a partnership for Federal income determined under paragraph qualified PTP income in the succeeding tax purposes. In 2018, the LLC has a single (d)(2)(iv)(A)(2) of this section for a trade taxable years of the individual for trade or business and reports QBI of or business (or aggregated trade or purposes of section 199A and this $3,000,000. The LLC pays total W–2 wages of business) is less than the amount section. This carryover rule does not $1,000,000, and its total UBIA of qualified determined under paragraph affect the deductibility of the loss for property is $100,000. E is allocated 30% of (d)(2)(iv)(A)(1) of this section for that purposes of other provisions of the all items of the partnership. For the 2018 trade or business (or aggregated trade or Code. taxable year, E reports $900,000 of QBI from business), the amount determined under the LLC. After allowable deductions (4) Examples. The following examples unrelated to LLC, E’s taxable income is paragraph (d)(2)(iv)(A) of this section for illustrate the provisions of this such trade or business (or aggregated $880,000. Because E’s taxable income is paragraph (d). For purposes of these above the threshold amount, the QBI trade or business) is modified. Instead of examples, unless indicated otherwise, component of E’s section 199A deduction the amount determined under paragraph assume that all of the trades or will be limited to the lesser of 20% of E’s (d)(2)(iv)(A)(2) of this section, the QBI businesses are trades or businesses as share of LLC’s QBI or the greater of the W– component for the trade or business (or defined in paragraph (b)(14) of this 2 wage or UBIA of qualified property aggregated trade or business) is the section, none of the trades or businesses limitations. Twenty percent of E’s share of amount determined under paragraph are SSTBs as defined in paragraph QBI of $900,000 is $180,000. The W–2 wage limitation equals 50% of E’s share of the (d)(2)(iv)(A)(1) of this section reduced (b)(11) of this section and § 1.199A–5(b); by the reduction amount as defined in LLC’s wages ($300,000) or $150,000. The and all of the tax items associated with UBIA of qualified property limitation equals paragraph (b)(9) of this section. This the trades or businesses are effectively reduction amount does not apply if the $75,750, the sum of 25% of E’s share of LLC’s connected to a trade or business within wages ($300,000) or $75,000 plus 2.5% of E’s amount determined in paragraph the United States within the meaning of share of UBIA of qualified property ($30,000) (d)(2)(iv)(A)(2) of this section is greater section 864(c). Also assume that the or $750. The greater of the limitation than the amount determined under taxpayers report no capital gains or amounts ($150,000 and $75,750) is $150,000. paragraph (d)(2)(iv)(A)(1) of this section losses or other tax items not specified in The QBI component of E’s section 199A (in which circumstance the QBI the examples. Total taxable income does deduction is thus limited to $150,000, the lesser of 20% of QBI ($180,000) and the component for the trade or business (or not include the section 199A deduction. aggregated trade or business) will be the greater of the limitations amounts ($150,000). unreduced amount determined in (i) Example 1. D, an unmarried individual, E’s section 199A deduction is equal to the paragraph (d)(2)(iv)(A)(1) of this operates a business as a sole proprietorship. lesser of 20% of the QBI from the business The business generates $1,000,000 of QBI in as limited ($150,000) or 20% of E’s taxable section). × (3) Qualified REIT dividends/ 2018. Solely for purposes of this example, income ($880,000 20% = $176,000). assume that the business paid no wages and Therefore, E’s section 199A deduction is qualified PTP income component—(i) In holds no qualified property for use in the $150,000 for 2018. general. The qualified REIT dividend/ business. After allowable deductions (iv) Example 4. F, an unmarried qualified PTP income component is 20 unrelated to the business, D’s total taxable individual, owns a 50% interest in Z, an S percent of the combined amount of income for 2018 is $980,000. Because D’s corporation for Federal income tax purposes qualified REIT dividends and qualified taxable income exceeds the applicable that conducts a single trade or business. In PTP income received by the individual threshold amount, D’s section 199A 2018, Z reports QBI of $6,000,000. Z pays (including the individual’s share of deduction is subject to the W–2 wage and total W–2 wages of $2,000,000, and its total qualified REIT dividends and qualified UBIA of qualified property limitations. D’s UBIA of qualified property is $200,000. For PTP income from RPEs). section 199A deduction is limited to zero the 2018 taxable year, F reports $3,000,000 of (ii) SSTB exclusion. If the individual’s because the business paid no wages and held QBI from Z. F is not an employee of Z and no qualified property. receives no wages or reasonable taxable income is within the phase-in (ii) Example 2. Assume the same facts as compensation from Z. After allowable range, then only the applicable in Example 1 of paragraph (d)(4)(i) of this deductions unrelated to Z and a deductible percentage of qualified PTP income section, except that D holds qualified qualified net loss from a PTP of ($10,000), F’s generated by an SSTB is taken into property with a UBIA of $10,000,000 for use taxable income is $1,880,000. Because F’s account for purposes of determining the in the trade or business. D reports $4,000,000 taxable income is above the threshold individual’s section 199A deduction, of QBI for 2020. After allowable deductions amount, the QBI component of F’s section including the determination of the unrelated to the business, D’s total taxable 199A deduction will be limited to the lesser combined amount of qualified REIT income for 2020 is $3,980,000. Because D’s of 20% of F’s share of Z’s QBI or the greater dividends and qualified PTP income taxable income is above the threshold of the W–2 wage and UBIA of qualified amount, the QBI component of D’s section property limitations. Twenty percent of F’s described in paragraph (d)(1) of this 199A deduction is subject to the W–2 wage share of Z’s QBI ($3,000,000) is $600,000. section. If the individual’s taxable and UBIA of qualified property limitations. The W–2 wage limitation equals 50% of F’s income exceeds the phase-in range, then Because the business has no W–2 wages, the share of Z’s W–2 wages ($1,000,000) or none of the individual’s share of QBI component of D’s section 199A $500,000. The UBIA of qualified property qualified PTP income generated by an deduction is limited to the lesser of 20% of limitation equals $252,500, the sum of 25%
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of F’s share of Z’s W–2 wages ($1,000,000) or deduction is equal to the lesser of 20% of the unrelated company. After allowable $250,000 plus 2.5% of E’s share of UBIA of QBI from the business as limited ($36,000) or deductions unrelated to the businesses, F’s qualified property ($100,000) or $2,500. The 20% of B and C’s taxable income ($375,000 taxable income is $2,722,000. greater of the limitation amounts ($500,000 × 20% = $75,000). Therefore, B and C’s (B) Because F’s taxable income is above the and $252,500) is $500,000. The QBI section 199A deduction is $36,000 for 2018. threshold amount, the QBI component of F’s component of F’s section 199A deduction is (vi) Example 6. (A) Assume the same facts section 199A deduction is subject to the thus limited to $500,000, the lesser of 20% as in Example 5 of paragraph (d)(4)(v) of this W–2 wage and UBIA of qualified property of QBI ($600,000) and the greater of the section, except that M is engaged in an SSTB. limitations. These limitations must be limitations amounts ($500,000). F reports a Because B and C are within the phase-in applied on a business-by-business basis. qualified loss from a PTP and has no range, B must reduce the QBI and W–2 wages None of the businesses hold qualified qualified REIT dividend. F does not net the allocable to B from M to the applicable property, therefore only the 50% of W–2 ($10,000) loss from the PTP against QBI. percentage of those items. B and C’s wage limitation must be calculated. Because Instead, the portion of F’s section 199A applicable percentage is 100% reduced by QBI from each business is positive, F applies deduction related to qualified REIT the percentage equal to the ratio that their the limitation by determining the lesser of dividends and qualified PTP income is zero taxable income for the taxable year 20% of QBI and 50% of W–2 wages for each for 2018. F’s section is 199A deduction is ($375,000) exceeds their threshold amount business. For Business X, the lesser of 20% equal to the lesser of 20% of the QBI from ($315,000), or $60,000, bears to $100,000. of QBI ($1,000,000 × 20 percent = $200,000) the business as limited ($500,000) or 20% of Their applicable percentage is 40%. The and 50% of Business X’s W–2 wages F’s taxable income over net capital gain applicable percentage of B’s QBI is ($300,000 ($500,000 × 50% = $250,000) is $200,000. ($1,880,000 x 20% = $376,000). Therefore, × 40% =) $120,000, and the applicable Business Y pays no W–2 wages. The lesser F’s section 199A deduction is $376,000 for percentage of B’s share of W–2 wages is of 20% of Business Y’s QBI ($1,000,000 × 2018. F must also carry forward the ($10,000) ($40,000 × 40% =) $16,000. These reduced 20% = $200,000) and 50% of its W–2 wages qualified loss from a PTP to be netted against numbers must then be used to determine (zero) is zero. For Business Z, the lesser of F’s qualified REIT dividends and qualified how B’s section 199A deduction is limited. 20% of QBI ($2,000 × 20% = $400) and 50% PTP income in the succeeding taxable year. (B) B and C must apply the W–2 wage of W–2 wages ($500,000 × 50% = $250,000) (v) Example 5: Phase-in range. (A) B and limitation by first determining 20% of B’s is $400. C are married and file a joint individual share of M’s QBI as limited by paragraph (C) Next, F must then combine the amounts income tax return. B is a shareholder in M, (d)(4)(vi)(A) of this section. Twenty percent determined in paragraph (d)(4)(vii)(B) of this an entity taxed as an S corporation for of B’s share of M’s QBI of $120,000 is section and compare that sum to 20% of F’s Federal income tax purposes that conducts a $24,000. Next, B and C must determine 50% taxable income. The lesser of these two single trade or business. M holds no qualified of B’s share of M’s W–2 wages. Fifty percent amounts equals F’s section 199A deduction. property. B’s share of the M’s QBI is $300,000 of B’s share of M’s W–2 wages of $16,000 is The total of the combined amounts in in 2018. B’s share of the W–2 wages from M $8,000. Because 50% of B’s share of M’s paragraph (d)(4)(vii)(B) of this section is in 2018 is $40,000. C earns wage income W–2 wages ($8,000) is less than 20% of B’s $200,400 ($200,000 + zero + 400). Twenty from employment by an unrelated company. share of M’s QBI ($24,000), B and C’s must percent of F’s taxable income is $544,400 After allowable deductions unrelated to M, B determine the QBI component of their ($2,722,000 × 20%). Thus, F’s section 199A and C’s taxable income for 2018 is $375,000. section 199A deduction by reducing 20% of deduction for 2018 is $200,400. B and C are within the phase-in range B’s share of M’s QBI by the reduction (viii) Example 8. (A) Assume the same because their taxable income exceeds the amount. facts as in Example 7 of paragraph (d)(4)(vii) applicable threshold amount, $315,000, but (C) B and C are 60% through the phase-in of this section, except that F aggregates does not exceed the threshold amount plus range (that is, their taxable income exceeds Business X, Business Y, and Business Z $100,000, or $415,000. Consequently, the QBI the threshold amount by $60,000 and their under the rules of § 1.199A–4. component of B and C’s section 199A phase-in range is $100,000). B and C must (B) Because F’s taxable income is above the deduction may be limited by the W–2 wage determine the excess amount, which is the threshold amount, the QBI component of F’s and UBIA of qualified property limitations excess of 20% of B’s share of M’s QBI, as section 199A deduction is subject to the but the limitations will be phased in. adjusted in paragraph (d)(4)(vi)(A) of this W–2 wage and UBIA of qualified property (B) Because M does not hold qualified section or $24,000, over 50% of B’s share of limitations. Because the businesses are property, only the W–2 wage limitation must M’s W–2 wages, as adjusted in paragraph aggregated, these limitations are applied on be calculated. In order to apply the W–2 (d)(4)(vi)(A) of this section, or $8,000. Thus, an aggregated basis. None of the businesses wage limitation, B and C must first determine the excess amount is $16,000. The reduction holds qualified property, therefore only the 20% of B’s share of M’s QBI. Twenty percent amount is equal to 60% of the excess amount W–2 wage limitation must be calculated. F of B’s share of M’s QBI of $300,000 is or $9,600. Thus, the QBI component of B and applies the limitation by determining the $60,000. Next, B and C must determine 50% C’s section 199A deduction is equal to lesser of 20% of the QBI from the aggregated of B’s share of M’s W–2 wages. Fifty percent $14,400, 20% of B’s share M’s QBI of businesses, which is $400,400 ($2,002,000 × of B’s share of M’s W–2 wages of $40,000 is $24,000, reduced by $9,600. B and C’s 20%) and 50% of W–2 wages from the $20,000. Because 50% of B’s share of M’s W– section 199A deduction is equal to the lesser aggregated businesses, which is $500,000 2 wages ($20,000) is less than 20% of B’s of 20% of the QBI from the business as ($1,000,000 x 50%). F’s section 199A share of M’s QBI ($60,000), B and C must limited ($14,400) or 20% of B’s and C’s deduction is equal to the lesser of $400,400 determine the QBI component of their taxable income ($375,000 × 20% = $75,000). and 20% of F’s taxable income ($2,722,000 section 199A deduction by reducing 20% of Therefore, B and C’s section 199A deduction × 20% = $544,400). Thus, F’s section 199A B’s share of M’s QBI by the reduction is $14,400 for 2018. deduction for 2018 is $400,400. amount. (vii) Example 7. (A) F, an unmarried (ix) Example 9. (A) Assume the same facts (C) B and C are 60% through the phase-in individual, owns as a sole proprietor 100 as in Example 7 of paragraph (d)(4)(vii) of range (that is, their taxable income exceeds percent of three trades or businesses, this section, except that for taxable year 2018, the threshold amount by $60,000 and their Business X, Business Y, and Business Z. Business Z generates a loss that results in phase-in range is $100,000). B and C must None of the businesses hold qualified ($600,000) of negative QBI and pays $500,000 determine the excess amount, which is the property. F does not aggregate the trades or of W–2 wages. After allowable deductions excess of 20% of B’s share of M’s QBI, or businesses under § 1.199A–4. For taxable unrelated to the businesses, F’s taxable $60,000, over 50% of B’s share of M’s W–2 year 2018, Business X generates $1 million of income is $2,120,000. Because Business Z wages, or $20,000. Thus, the excess amount QBI and pays $500,000 of W–2 wages with had negative QBI, F must offset the positive is $40,000. The reduction amount is equal to respect to the business. Business Y also QBI from Business X and Business Y with the 60% of the excess amount, or $24,000. Thus, generates $1 million of QBI but pays no negative QBI from Business Z in proportion the QBI component of B and C’s section 199A wages. Business Z generates $2,000 of QBI to the relative amounts of positive QBI from deduction is equal to $36,000, 20% of B’s and pays $500,000 of W–2 wages with Business X and Business Y. Because Business $300,000 share M’s QBI (that is, $60,000), respect to the business. F also has $750,000 X and Business Y produced the same amount reduced by $24,000. B and C’s section 199A of wage income from employment with an of positive QBI, the negative QBI from
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Business Z is apportioned equally among negative combined QBI of ($150,000) carries $192,000 ($960,000 × 20%) Thus, F’s section Business X and Business Y. Therefore, the forward and will be treated as negative QBI 199A deduction for 2019 is $9,144. There is adjusted QBI for each of Business X and from a separate trade or business for no carryover of any negative QBI into the Business Y is $700,000 ($1 million plus 50% purposes of computing the section 199A following taxable year for purposes of section of the negative QBI of $600,000). The deduction in the next taxable year. None of 199A. adjusted QBI in Business Z is $0, because its the W–2 wages carry forward. However, for (xii) Example 12. (A) Assume the same negative QBI has been fully apportioned to income tax purposes, the $150,000 loss may facts as in Example 11 of paragraph (d)(4)(xi) Business X and Business Y. offset F’s $750,000 of wage income (assuming of this section, except that F aggregates (B) Because F’s taxable income is above the the loss is otherwise allowable under the Business X, Business Y, and Business Z threshold amount, the QBI component of F’s Code). under the rules of § 1.199A–4. For 2018, F’s section 199A deduction is subject to the (B) In taxable year 2019, Business X QBI from the aggregated trade or business is W–2 wage and UBIA of qualified property generates $200,000 of net QBI and pays ($150,000). Because F has a combined limitations. These limitations must be $100,000 of W–2 wages with respect to the negative QBI for 2018, F has no section 199A applied on a business-by-business basis. business. Business Y generates $150,000 of deduction with respect to any trade or None of the businesses hold qualified net QBI but pays no wages. Business Z business for 2018. Instead, the negative property, therefore only the 50% of W–2 generates a loss that results in ($120,000) of combined QBI of ($150,000) carries forward wage limitation must be calculated. For negative QBI and pays $500 of W–2 wages and will be treated as negative QBI from a Business X, the lesser of 20% of QBI with respect to the business. F also has separate trade or business for purposes of ($700,000 × 20% = $140,000) and 50% of $750,000 of wage income from employment × computing the section 199A deduction in the W–2 wages ($500,000 50% = $250,000) is with an unrelated company. After allowable next taxable year. However, for income tax $140,000. Business Y pays no W–2 wages. deductions unrelated to the businesses, F’s purposes, the $150,000 loss may offset taxable income is $960,000. Pursuant to The lesser of 20% of Business Y’s QBI taxpayer’s $750,000 of wage income ($700,000 × 20% = $140,000) and 50% of its paragraph (d)(2)(iii)(B) of this section, the (assuming the loss is otherwise allowable W–2 wages (zero) is zero. ($150,000) of negative QBI from 2018 is under the Code). (C) F must combine the amounts treated as arising in 2019 from a separate (B) In taxable year 2019, F will have QBI determined in paragraph (d)(4)(ix)(B) of this trade or business. Thus, F has overall net QBI of $230,000 and W–2 wages of $100,500 from section and compare the sum to 20% of of $80,000 when all trades or businesses are the aggregated trade or business. F also has taxable income. F’s section 199A deduction taken together ($200,000) plus $150,000 $750,000 of wage income from employment equals the lesser of these two amounts. The minus $120,000 minus the carryover loss of with an unrelated company. After allowable combined amount from paragraph $150,000). Because Business Z had negative deductions unrelated to the businesses, F’s (d)(4)(ix)(B) of this section is $140,000 QBI and F also has a negative QBI carryover taxable income is $960,000. F must treat the ($140,000 + zero) and 20% of F’s taxable amount, F must offset the positive QBI from negative QBI carryover loss ($150,000) from income is $424,000 ($2,120,000 × 20%). Business X and Business Y with the negative 2018 as a loss from a separate trade or Thus, F’s section 199A deduction for 2018 is QBI from Business Z and the carryover business for purposes of section 199A. This $140,000. There is no carryover of any loss amount in proportion to the relative amounts loss will offset the positive QBI from the into the following taxable year for purposes of positive QBI from Business X and Business aggregated trade or business, resulting in an of section 199A. Y. Because Business X produced 57.14% of adjusted QBI of $80,000 ($230,000 ¥ (x) Example 10. (A) Assume the same facts the total QBI from Business X and Business $150,000). as in Example 9 of paragraph (d)(4)(ix) of this Y, 57.14% of the negative QBI from Business (C) Because F’s taxable income is above the section, except that F aggregates Business X, Z and the negative QBI carryforward must be threshold amount, the QBI component of F’s Business Y, and Business Z under the rules apportioned to Business X, and the section 199A deduction is subject to the of § 1.199A–4. remaining 42.86% allocated to Business Y. W–2 wage and UBIA of qualified property (B) Because F’s taxable income is above the Therefore, the adjusted QBI in Business X is limitations. These limitations must be threshold amount, the QBI component of F’s $45,722 ($200,000 minus 57.14% of the loss applied on a business-by-business basis. section 199A deduction is subject to the from Business Z ($68,568), minus 57.14% of None of the businesses hold qualified W–2 wage and UBIA of qualified property the carryover loss ($85,710). The adjusted property, therefore only the 50% of W–2 limitations. Because the businesses are QBI in Business Y is $34,278 ($150,000, wage limitation must be calculated. For the aggregated, these limitations are applied on minus 42.86% of the loss from Business Z aggregated trade or business, the lesser of an aggregated basis. None of the businesses ($51,432) minus 42.86% of the carryover loss 20% of QBI ($80,000 × 20% = $16,000) and holds qualified property, therefore only the ($64,290)). The adjusted QBI in Business Z is 50% of W–2 wages ($100,500 × 50% = W–2 wage limitation must be calculated. F $0, because its negative QBI has been $50,250) is $16,000. F’s section 199A applies the limitation by determining the apportioned to Business X and Business Y. deduction equals the lesser of that amount lesser of 20% of the QBI from the aggregated (C) Because F’s taxable income is above the ($16,000) and 20% of F’s taxable income businesses ($1,400,000 × 20% = $280,000) threshold amount, the QBI component of F’s ($960,000 × 20% = $192,000). Thus, F’s and 50% of W–2 wages from the aggregated section 199A deduction is subject to the section 199A deduction for 2019 is $16,000. businesses ($1,000,000 × 50% = $500,000), or W–2 wage and UBIA of qualified property There is no carryover of any negative QBI $280,000. F’s section 199A deduction is limitations. These limitations must be into the following taxable year for purposes equal to the lesser of $280,000 and 20% of applied on a business-by-business basis. of section 199A. F’s taxable income ($2,120,000 × 20% = None of the businesses hold qualified $424,000). Thus, F’s section 199A deduction property, therefore only the 50% of W–2 (e) Special rules—(1) Effect of for 2018 is $280,000. There is no carryover wage limitation must be calculated. For of any loss into the following taxable year for Business X, 20% of QBI is $9,144 ($45,722 deduction. In the case of a partnership purposes of section 199A. × 20%) and 50% of W–2 wages is $50,000 or S corporation, section 199A is (xi) Example 11. (A) Assume the same facts ($100,000 × 50%), so the lesser amount is applied at the partner or shareholder as in Example 7 of paragraph (d)(4)(vii) of $9,144. Business Y pays no W–2 wages. level. The rules of subchapter K and this section, except that Business Z generates Twenty percent of Business Y’s QBI is $6,856 subchapter S of the Code apply in their a loss that results in ($2,150,000) of negative ($34,278 × 20%) and 50% of its W–2 wages entirety for purposes of determining QBI and pays $500,000 of W–2 wages with (zero) is zero, so the lesser amount is zero. each partner’s or shareholder’s share of respect to the business in 2018. Thus, F has (D) F must then compare the combined QBI, W–2 wages, UBIA of qualified a negative combined QBI of ($150,000) when amounts determined in paragraph property, qualified REIT dividends, and the QBI from all of the businesses are added (d)(4)(xi)(C) of this section to 20% of F’s together ($1 million plus $1 million minus taxable income. The section 199A deduction qualified PTP income or loss. The the loss of ($2,150,000)). Because F has a equals the lesser of these amounts. F’s section 199A deduction has no effect on negative combined QBI for 2018, F has no combined amount from paragraph the adjusted basis of a partner’s interest section 199A deduction with respect to any (d)(4)(xi)(C) of this section is $9,144 ($9,144 in the partnership, the adjusted basis of trade or business for 2018. Instead, the plus zero) and 20% of F’s taxable income is a shareholder’s stock in an S
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corporation, or an S corporation’s REIT dividends and qualified PTP the UBIA of qualified property is the accumulated adjustments account. income, if an individual receives any of share of the unadjusted basis (2) Disregarded entities. An entity these items from an RPE with a taxable proportionate to the ratio of shares in with a single owner that is treated as year that begins before January 1, 2018, the S corporation held by the disregarded as an entity separate from and ends after December 31, 2017, such shareholder on the last day of the its owner under any provision of the items are treated as having been taxable year over the total issued and Code is disregarded for purposes of incurred by the individual during the outstanding shares of the S corporation. section 199A and §§ 1.199A–1 through individual’s taxable year in which or (iv) UBIA and section 743(b) basis 1.199A–6. with which such RPE taxable year ends. adjustments—(A) In general. A partner (3) Self-employment tax and net ■ Par. 4. Section 1.199A–2 is added to will be allowed to take into account investment income tax. The deduction read as follows: UBIA with respect to an item of allowed under section 199A does not qualified property in addition to the reduce net earnings from self- § 1.199A–2 Determination of W–2 wages amount of UBIA with respect to such employment under section 1402 or net and unadjusted basis immediately after qualified property determined under investment income under section 1411. acquisition of qualified property. paragraphs (a)(3)(i) and (c) of this (4) Commonwealth of Puerto Rico. If (a) Scope—(1) In general. This section section and allocated to such partner all of an individual’s QBI from sources provides guidance on calculating a trade under paragraph (a)(3)(ii) of this section within the Commonwealth of Puerto or business’s W–2 wages properly to the extent of the partner’s excess Rico is taxable under section 1 of the allocable to QBI (W–2 wages) and the section 743(b) basis adjustment with Code for a taxable year, then for trade or business’s unadjusted basis respect to such item of qualified purposes of determining the QBI of such immediately after acquisition of all property. individual for such taxable year, the qualified property (UBIA of qualified (B) Excess section 743(b) basis term ‘‘United States’’ includes the property). The provisions of this section adjustments. A partner’s excess section Commonwealth of Puerto Rico. apply solely for purposes of section 743(b) basis adjustment is an amount (5) Coordination with alternative 199A of the Internal Revenue Code that is determined with respect to each minimum tax. For purposes of (Code). item of qualified property and is equal determining alternative minimum (2) W–2 wages. Paragraph (b) of this to an amount that would represent the taxable income under section 55, the section provides guidance on the partner’s section 743(b) basis deduction allowed under section determination of W–2 wages. The adjustment with respect to the same 199A(a) for a taxable year is equal in determination of W–2 wages must be item of qualified property, as amount to the deduction allowed under made for each trade or business by the determined under §§ 1.743–1(b) and section 199A(a) in determining taxable individual or RPE that directly conducts 1.755–1, but calculated as if the income for that taxable year (that is, the trade or business (or aggregated adjusted basis of all of the partnership’s without regard to any adjustments trade or business). In the case of W–2 property was equal to the UBIA of such under sections 56 through 59). wages paid by an RPE, the RPE must property. The absolute value of the (6) Imposition of accuracy-related determine and report W–2 wages for excess section 743(b) basis adjustment penalty on underpayments. For rules each trade or business (or aggregated cannot exceed the absolute value of the related to the imposition of the trade or business) conducted by the total section 743(b) basis adjustment accuracy-related penalty on RPE. W–2 wages are presumed to be with respect to qualified property. underpayments for taxpayers who claim zero if not determined and reported for (C) Computation of partner’s share of the deduction allowed under section each trade or business (or aggregated UBIA with excess section 743(b) basis 199A, see section 6662(d)(1)(C). trade or business). adjustments. The partnership first (7) Reduction for income received (3) UBIA of qualified property—(i) In computes its UBIA with respect to from cooperatives. In the case of any general. Paragraph (c) of this section qualified property under paragraphs trade or business of a patron of a provides guidance on the determination (a)(3)(i) and (c) of this section and specified agricultural or horticultural of the UBIA of qualified property. The allocates such UBIA under paragraph cooperative, as defined in section determination of the UBIA of qualified (a)(3)(ii) of this section. If the sum of the 199A(g)(4), the amount of section 199A property must be made for each trade or excess section 743(b) basis adjustment deduction determined under paragraph business (or aggregated trade or for all of the items of qualified property (c) or (d) of this section with respect to business) by the individual or RPE that is a negative number, that amount will such trade or business must be reduced directly conducts the trade or business be subtracted from the partner’s UBIA of by the lesser of: (or aggregated trade or business). The qualified property determined under (i) Nine percent of the QBI with UBIA of qualified property is presumed paragraphs (a)(3)(i) and (c) of this respect to such trade or business as is to be zero if not determined and section and allocated under paragraph properly allocable to qualified payments reported for each trade or business (or (a)(3)(ii) of this section. A partner’s received from such cooperative; or aggregated trade or business). UBIA of qualified property may not be (ii) 50 percent of the W–2 wages with (ii) UBIA of qualified property held by below $0. Excess section 743(b) basis respect to such trade or business as are a partnership. In the case of qualified adjustments are computed with respect so allocable as determined under property held by a partnership, each to all section 743(b) adjustments, § 1.199A–2. partner’s share of the UBIA of qualified including adjustments made as a result (f) Applicability date—(1) General property is determined in accordance of a substantial built-in loss under rule. Except as provided in paragraph with how the partnership would section 743(d). (f)(2) of this section, the provisions of allocate depreciation under § 1.704– (D) Examples. The provisions of this this section apply to taxable years 1(b)(2)(iv)(g) on the last day of the paragraph (a)(3)(iv) are illustrated by the ending after February 8, 2019. taxable year. following examples: (2) Exception for non-calendar year (iii) UBIA of qualified property held (1) Example 1—(i) Facts. A, B, and C are RPE. For purposes of determining QBI, by an S corporation. In the case of equal partners in partnership, PRS. PRS has W–2 wages, UBIA of qualified property, qualified property held by an S a single trade or business that generates QBI. and the aggregate amount of qualified corporation, each shareholder’s share of PRS has no liabilities and only one asset, a
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single item of qualified property with a UBIA section 743(b) basis adjustment calculated as are those issued for the calendar year equal to $900,000. Each partner’s share of the if adjusted basis of the qualified property ending during the individual’s or RPE’s UBIA is $300,000. A sells its one-third were equal to its UBIA is negative $100,000 taxable year for wages paid to interest in PRS to T for $350,000 when a (the excess of $300,000, T’s share of the employees (or former employees) of the section 754 election is in effect. At the time adjusted basis to PRS of the partnership’s of the sale, the tax basis of the qualified property, over $200,000, T’s cost basis for its individual or RPE for employment by property held by PRS is $750,000. The interest). T’s excess section 743(b) basis the individual or RPE. For purposes of amount of gain that would be allocated to T adjustment to the qualified property is this section, employees of the from a hypothetical transaction under limited to the amount of T’s section 743(b) individual or RPE are limited to § 1.743–1(d)(2) is $100,000. Thus, T’s interest basis adjustment of negative $50,000. Thus, employees of the individual or RPE as in PRS’s previously taxed capital is equal to T’s excess section 743(b) basis adjustment is defined in section 3121(d)(1) and (2). $250,000 ($350,000, the amount of cash T equal to negative $50,000. For purposes of (For purposes of section 199A, this would receive if PRS liquidated immediately applying the UBIA limitation to T’s share of includes officers of an S corporation and QBI from PRS’s trade or business, T’s UBIA after the hypothetical transaction, decreased employees of an individual or RPE by $100,000, T’s share of gain from the is equal to $250,000 ($300,000, T’s one-third hypothetical transaction). The amount of T’s share of the qualified property’s UBIA, under common law.) section 743(b) basis adjustment to PRS’s reduced by T’s negative $50,000 excess (ii) Wages paid by a person other than qualified property is $100,000 (the excess of section 743(b) basis adjustment). a common law employer. In determining W–2 wages, an individual or RPE may $350,000, T’s cost basis for its interest, over (b) W–2 wages—(1) In general. Section $250,000, T’s share of the adjusted basis to take into account any W–2 wages paid 199A(b)(2)(B) provides limitations on PRS of the partnership’s property). by another person and reported by the the section 199A deduction based on (iii) Analysis. In order for T to determine other person on Forms W–2 with the its UBIA, T must calculate its excess section the W–2 wages paid with respect to other person as the employer listed in 743(b) basis adjustment. T’s excess section each trade or business (or aggregated Box c of the Forms W–2, provided that 743(b) basis adjustment is equal to an amount trade or business). Section 199A(b)(4)(B) the W–2 wages were paid to common that would represent T’s section 743(b) basis provides that W–2 wages do not include law employees or officers of the adjustment with respect to the same item of any amount which is not properly qualified property, as determined under individual or RPE for employment by allocable to QBI for purposes of section the individual or RPE. In such cases, the §§ 1.743–1(b) and 1.755–1, but calculated as 199A(c)(1). This section provides a three if the adjusted basis of all of PRS’s property person paying the W–2 wages and was equal to the UBIA of such property. T’s step process for determining the W–2 reporting the W–2 wages on Forms W– section 743(b) basis adjustment calculated as wages paid with respect to a trade or 2 is precluded from taking into account if adjusted basis of the qualified property business that are properly allocable to such wages for purposes of determining were equal to its UBIA is $50,000 (the excess QBI. First, each individual or RPE must W–2 wages with respect to that person. of $350,000, T’s cost basis for its interest, determine its total W–2 wages paid for For purposes of this paragraph (b)(2)(ii), over $300,000, T’s share of the adjusted basis the taxable year under the rules in persons that pay and report W–2 wages to PRS of the partnership’s property). Thus, paragraph (b)(2) of this section. Second, T’s excess section 743(b) basis adjustment is on behalf of or with respect to others each individual or RPE must allocate its can include, but are not limited to, equal to $50,000. For purposes of applying W–2 wages between or among one or the UBIA limitation to T’s share of QBI from certified professional employer PRS’s trade or business, T’s UBIA is equal to more trades or businesses under the organizations under section 7705, $350,000 ($300,000, T’s one-third share of rules in paragraph (b)(3) of this section. statutory employers under section the qualified property’s UBIA, plus $50,000, Third, each individual or RPE must 3401(d)(1), and agents under section T’s excess section 743(b) basis adjustment). determine the amount of such wages 3504. (2) Example 2—(i) Facts. Assume the same with respect to each trade or business, (iii) Requirement that wages must be facts as in Example 1 of paragraph which are allocable to the QBI of the reported on return filed with the Social (a)(3)(iv)(D)(1) of this section, except that A trade or business (or aggregated trade or Security Administration (SSA)—(A) In sells its one-third interest in PRS to T for business) under the rules in paragraph general. Pursuant to section $200,000 when a section 754 election is in (b)(4) of this section. 199A(b)(4)(C), the term W–2 wages does effect. At the time of the sale, the tax basis (2) Definition of W–2 wages—(i) In of the qualified property held by PRS is not include any amount that is not $750,000, and the amount of loss that would general. Section 199A(b)(4)(A) provides properly included in a return filed with be allocated to T from a hypothetical that the term W–2 wages means with SSA on or before the 60th day after the transaction under § 1.743–1(d)(2) is $50,000. respect to any person for any taxable due date (including extensions) for such Thus, T’s interest in PRS’s previously taxed year of such person, the amounts return. Under § 31.6051–2 of this capital is equal to $250,000 ($200,000, the described in section 6051(a)(3) and (8) chapter, each Form W–2 and the amount of cash T would receive if PRS paid by such person with respect to transmittal Form W–3, ‘‘Transmittal of liquidated immediately after the hypothetical employment of employees by such Wage and Tax Statements,’’ together transaction, increased by $50,000, T’s share person during the calendar year ending constitute an information return to be of loss from the hypothetical transaction). during such taxable year. Thus, the term The amount of T’s section 743(b) basis filed with SSA. Similarly, each Form adjustment to PRS’s qualified property is W–2 wages includes the total amount of W–2c, ‘‘Corrected Wage and Tax negative $50,000 (the excess of $250,000, T’s wages as defined in section 3401(a) plus Statement,’’ and the transmittal Form share of the adjusted basis to PRS of the the total amount of elective deferrals W–3 or W–3c, ‘‘Transmittal of Corrected partnership’s property, over $200,000, T’s (within the meaning of section Wage and Tax Statements,’’ together cost basis for its interest). 402(g)(3)), the compensation deferred constitute an information return to be (ii) Analysis. In order for T to determine its under section 457, and the amount of filed with SSA. In determining whether UBIA, T must calculate its excess section designated Roth contributions (as any amount has been properly included 743(b) basis adjustment. T’s excess section defined in section 402A). For this in a return filed with SSA on or before 743(b) basis adjustment is equal to an amount purpose, except as provided in the 60th day after the due date that would represent T’s section 743(b) basis adjustment with respect to the same item of paragraphs (b)(2)(iv)(C)(2) and (including extensions) for such return, qualified property, as determined under (b)(2)(iv)(D) of this section, the Forms each Form W–2 together with its §§ 1.743–1(b) and 1.755–1, but calculated as W–2, ‘‘Wage and Tax Statement,’’ or any accompanying Form W–3 will be if the adjusted basis of all of PRS’s property subsequent form or document used in considered a separate information was equal to the UBIA of such property. T’s determining the amount of W–2 wages, return and each Form W–2c together
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with its accompanying Form W–3 or with SSA on or before the 60th day after under section 457 during the short Form W–3c will be considered a the due date (including extensions) of taxable year with respect to employees separate information return. Section the Form W–2 (or to correct a Form W– of the individual or RPE. 6071(c) provides that Forms W–2 and 2c relating to Form W–2 that had not (2) Short taxable year that does not W–3 must be filed on or before January been filed with SSA on or before the include December 31. If an individual or 31 of the year following the calendar 60th day after the due date (including RPE has a short taxable year that does year to which such returns relate (but extensions) of the Form W–2), then this not contain a calendar year ending see the special rule in § 31.6071(a)– Form W–2c will not be considered to during such short taxable year, wages 1T(a)(3)(1) of this chapter for monthly have been filed with SSA on or before paid to employees for employment by returns filed under § 31.6011(a)–5(a) of the 60th day after the due date such individual or RPE during the short this chapter). Corrected Forms W–2 are (including extensions) for this Form W– taxable year are treated as W–2 wages required to be filed with SSA on or 2c (or corrected Form W–2), regardless for such short taxable year for purposes before January 31 of the year following of when the Form W–2c is filed. of paragraph (b) of this section (if the the year in which the correction is (iv) Methods for calculating W–2 wages would otherwise meet the made. wages—(A) In general. The Secretary requirements to be W–2 wages under (B) Corrected return filed to correct a may provide for methods to be used in this section but for the requirement that return that was filed within 60 days of calculating W–2 wages, including W–2 a calendar year must end during the the due date. If a corrected information wages for short taxable years by short taxable year). return (Return B) is filed with SSA on publication in the Internal Revenue (D) Remuneration paid for services or before the 60th day after the due date Bulletin (see § 601.601(d)(2)(ii)(b) of this performed in the Commonwealth of (including extensions) of Return B to chapter). Puerto Rico. In the case of an individual correct an information return (Return A) (B) Acquisition or disposition of a or RPE that conducts a trade or business that was filed with SSA on or before the trade or business—(1) In general. In the in the Commonwealth of Puerto Rico, 60th day after the due date (including case of an acquisition or disposition of the determination of W–2 wages of such extensions) of the information return a trade or business, the major portion of individual or RPE will be made without (Return A) and paragraph (b)(2)(iii)(C) of a trade or business, or the major portion regard to any exclusion under section this section does not apply, then the of a separate unit of a trade or business 3401(a)(8) for remuneration paid for wage information on Return B must be that causes more than one individual or services performed in the included in determining W–2 wages. If entity to be an employer of the Commonwealth of Puerto Rico. The a corrected information return (Return employees of the acquired or disposed individual or RPE must maintain D) is filed with SSA later than the 60th of trade or business during the calendar sufficient documentation (for example, day after the due date (including year, the W–2 wages of the individual Forms 499R–2/W–2PR) to substantiate extensions) of Return D to correct an or entity for the calendar year of the the amount of remuneration paid for information return (Return C) that was acquisition or disposition are allocated services performed in the filed with SSA on or before the 60th day between each individual or entity based Commonwealth of Puerto Rico that is after the due date (including extensions) on the period during which the used in determining the W–2 wages of of the information return (Return C), employees of the acquired or disposed such individual or RPE with respect to and if Return D reports an increase (or of trade or business were employed by any trade or business conducted in the increases) in wages included in the individual or entity, regardless of Commonwealth of Puerto Rico. determining W–2 wages from the wage which permissible method is used for (3) Allocation of wages to trades or amounts reported on Return C, then reporting predecessor and successor businesses. After calculating total W–2 such increase (or increases) on Return D wages on Form W–2, ‘‘Wage and Tax wages for a taxable year, each individual will be disregarded in determining W– Statement.’’ For this purpose, the period or RPE that directly conducts more than 2 wages (and only the wage amounts on of employment is determined one trade or business must allocate Return C may be included in consistently with the principles for those wages among its various trades or determining W–2 wages). If Return D determining whether an individual is an businesses. W–2 wages must be reports a decrease (or decreases) in employee described in paragraph (b) of allocated to the trade or business that wages included in determining W–2 this section. generated those wages. In the case of W– wages from the amounts reported on (2) Acquisition or disposition. For 2 wages that are allocable to more than Return C, then, in determining W–2 purposes of this paragraph (b)(2)(iv)(B), one trade or business, the portion of the wages, the wages reported on Return C the term acquisition or disposition W–2 wages allocable to each trade or must be reduced by the decrease (or includes an incorporation, a formation, business is determined in the same decreases) reflected on Return D. a liquidation, a reorganization, or a manner as the expenses associated with (C) Corrected return filed to correct a purchase or sale of assets. those wages are allocated among the return that was filed later than 60 days (C) Application in the case of a person trades or businesses under § 1.199A– after the due date. If an information with a short taxable year—(1) In 3(b)(5). return (Return F) is filed to correct an general. In the case of an individual or (4) Allocation of wages to QBI. Once information return (Return E) that was RPE with a short taxable year, subject to W–2 wages for each trade or business not filed with SSA on or before the 60th the rules of paragraph (b)(2) of this have been determined, each individual day after the due date (including section, the W–2 wages of the or RPE must identify the amount of W– extensions) of Return E, then Return F individual or RPE for the short taxable 2 wages properly allocable to QBI for (and any subsequent information year include only those wages paid each trade or business (or aggregated returns filed with respect to Return E) during the short taxable year to trade or business). W–2 wages are will not be considered filed on or before employees of the individuals or RPE, properly allocable to QBI if the the 60th day after the due date only those elective deferrals (within the associated wage expense is taken into (including extensions) of Return F (or meaning of section 402(g)(3)) made account in computing QBI under the subsequent corrected information during the short taxable year by § 1.199A–3. In the case of an RPE, the return). Thus, if a Form W–2c is filed to employees of the individual or RPE and wage expense must be allocated and correct a Form W–2 that was not filed only compensation actually deferred reported to the partners or shareholders
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of the RPE as required by the Code, on the date the property was first placed placed in service by the individual or including subchapters K and S of in service by the individual or RPE and RPE. chapter 1 of subtitle A of the Code. The ending on the later of— (iv) Qualified property acquired in RPE must also identify and report the (A) The date that is 10 years after such transactions described in section associated W–2 wages to its partners or date; or 168(i)(7)(B). If an individual or RPE shareholders. (B) The last day of the last full year acquires qualified property in a (5) Non-duplication rule. Amounts in the applicable recovery period that transaction described in section that are treated as W–2 wages for a would apply to the property under 168(i)(7)(B) (pertaining to treatment of taxable year under any method cannot section 168(c), regardless of any transferees in certain nonrecognition be treated as W–2 wages of any other application of section 168(g). transactions), the individual or RPE taxable year. Also, an amount cannot be (ii) Additional first-year depreciation must determine the date on which the treated as W–2 wages by more than one under section 168. The additional first- qualified property was first placed in trade or business (or aggregated trade or year depreciation deduction allowable service solely for purposes of paragraph business). under section 168 (for example, under (c)(2)(i) of this section as follows— (c) UBIA of qualified property—(1) section 168(k) or (m)) does not affect the (A) For the portion of the transferee’s Qualified property—(i) In general. The applicable recovery period under this UBIA in the qualified property that does term qualified property means, with paragraph for the qualified property. not exceed the transferor’s UBIA in such respect to any trade or business (or (iii) Qualified property acquired in property, the date such portion was first aggregated trade or business) of an transactions subject to section 1031 or placed in service by the transferee is the individual or RPE for a taxable year, section 1033. Solely for purposes of date on which the transferor first placed tangible property of a character subject paragraph (c)(2)(i) of this section, the the qualified property in service; and to the allowance for depreciation under following rules apply to qualified (B) For the portion of the transferee’s section 167(a)— property acquired in a like-kind UBIA in the qualified property that (A) Which is held by, and available exchange or in an involuntary exceeds the transferor’s UBIA in such for use in, the trade or business (or conversion (replacement property). property, such portion is treated as aggregated trade or business) at the close (A) Replacement property received in separate qualified property that the of the taxable year; a section 1031 or 1033 transaction. The transferee first placed in service on the (B) Which is used at any point during date on which replacement property date of the transfer. the taxable year in the trade or that is of like-kind to relinquished (v) Excess section 743(b) basis business’s (or aggregated trade or property or is similar or related in adjustment. Solely for purposes of business’s) production of QBI; and service or use to involuntarily converted paragraph (c)(2)(i) of this section, an (C) The depreciable period for which property was first placed in service by excess section 743(b) basis adjustment has not ended before the close of the the individual or RPE is determined as with respect to an item of partnership individual’s or RPE’s taxable year. follows— property that is qualified property is (ii) Improvements to qualified (1) For the portion of the individual’s treated as being placed in service when property. In the case of any addition to, or RPE’s UBIA, as defined in paragraph the transfer of the partnership interest or improvement of, qualified property (c)(3) of this section, in such occurs, and the recovery period for such that has already been placed in service replacement property that does not property is determined under § 1.743– by the individual or RPE, such addition exceed the individual’s or RPE’s UBIA 1(j)(4)(i)(B) with respect to positive basis or improvement is treated as separate in the relinquished property or adjustments and § 1.743–1(j)(4)(ii)(B) qualified property first placed in service involuntarily converted property, the with respect to negative basis on the date such addition or date such portion in the replacement adjustments. improvement is placed in service for property was first placed in service by (3) Unadjusted basis immediately purposes of paragraph (c)(2) of this the individual or RPE is the date on after acquisition—(i) In general. Except section. which the relinquished property or as provided in paragraphs (c)(3)(ii) (iii) Adjustments under sections involuntarily converted property was through (v) of this section, the term 734(b) and 743(b). Excess section 743(b) first placed in service by the individual unadjusted basis immediately after basis adjustments as defined in or RPE; and acquisition (UBIA) means the basis on paragraph (a)(3)(iv)(B) of this section are (2) For the portion of the individual’s the placed in service date of the treated as qualified property. Otherwise, or RPE’s UBIA, as defined in paragraph property as determined under section basis adjustments under sections 734(b) (c)(3) of this section, in such 1012 or other applicable sections of and 743(b) are not treated as qualified replacement property that exceeds the chapter 1 of the Code, including the property. individual’s or RPE’s UBIA in the provisions of subchapters O (relating to (iv) Property acquired at end of year. relinquished property or involuntarily gain or loss on dispositions of property), Property is not qualified property if the converted property, such portion in the C (relating to corporate distributions property is acquired within 60 days of replacement property is treated as and adjustments), K (relating to partners the end of the taxable year and disposed separate qualified property that the and partnerships), and P (relating to of within 120 days of acquisition individual or RPE first placed in service capital gains and losses). UBIA is without having been used in a trade or on the date on which the replacement determined without regard to any business for at least 45 days prior to property was first placed in service by adjustments described in section disposition, unless the taxpayer the individual or RPE. 1016(a)(2) or (3), to any adjustments for demonstrates that the principal purpose (B) Other property received in a tax credits claimed by the individual or of the acquisition and disposition was a section 1031 or 1033 transaction. Other RPE (for example, under section 50(c)), purpose other than increasing the property, as defined in paragraph or to any adjustments for any portion of section 199A deduction. (c)(3)(ii) or (iii) of this section, that is the basis which the individual or RPE (2) Depreciable period—(i) In general. qualified property is treated as separate has elected to treat as an expense (for The term depreciable period means, qualified property that the individual or example, under sections 179, 179B, or with respect to qualified property of a RPE first placed in service on the date 179C). However, UBIA does reflect the trade or business, the period beginning on which such other property was first reduction in basis for the percentage of
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the individual’s or RPE’s use of property properties in proportion to their relative (4) Examples. The provisions of this for the taxable year other than in the fair market values. Other property paragraph (c) are illustrated by the trade or business. acquired by the taxpayer with the following examples: (ii) Qualified property acquired in a proceeds of an involuntary conversion (i) Example 1. (A) On January 5, 2012, A like-kind exchange—(A) In general. that is qualified property has a UBIA purchases Real Property X for $1 million and Solely for purposes of this section, if equal to the fair market value of such places it in service in A’s trade or business. property that is qualified property other property. A’s trade or business is not an SSTB. A’s (replacement property) is acquired in a (B) Excess boot. For purposes of basis in Real Property X under section 1012 is $1 million. Real Property X is qualified like-kind exchange that qualifies for paragraph (c)(3)(iii)(A) of this section, deferral of gain or loss under section property within the meaning of section excess boot is the amount of any money 1031, then the UBIA of such property is 199A(b)(6). As of December 31, 2018, A’s or the fair market value of other the same as the UBIA of the qualified basis in Real Property X, as adjusted under property received by the taxpayer in the property exchanged (relinquished section 1016(a)(2) for depreciation conversion over the amount of deductions under section 168(a), is $821,550. property), decreased by excess boot or appreciation in the converted property. (B) For purposes of section increased by the amount of money paid Appreciation for this purpose is the 199A(b)(2)(B)(ii) and this section, A’s UBIA or the fair market value of property not excess of the fair market value of the of Real Property X is its $1 million cost basis of a like kind to the relinquished converted property on the date of the under section 1012, regardless of any later property (other property) transferred by depreciation deductions under section 168(a) conversion over the fair market value of the taxpayer to acquire the replacement and resulting basis adjustments under section property. If the taxpayer acquires more the converted property on the date of 1016(a)(2). than one piece of qualified property as the acquisition by the taxpayer. (ii) Example 2. (A) The facts are the same replacement property that is of a like (iv) Qualified property acquired in as in Example 1 of paragraph (c)(4)(i) of this kind to the relinquished property in an transactions described in section section, except that on January 15, 2019, A 168(i)(7)(B). Solely for purposes of this enters into a like-kind exchange under exchange described in section 1031, section 1031 in which A exchanges Real UBIA is apportioned between or among section, if qualified property is acquired Property X for Real Property Y. Real Property the qualified replacement properties in in a transaction described in section Y has a value of $1 million. No cash or other proportion to their relative fair market 168(i)(7)(B) (pertaining to treatment of property is involved in the exchange. As of values. Other property received by the transferees in certain nonrecognition January 15, 2019, A’s basis in Real Property taxpayer in a section 1031 transaction transactions), the transferee’s UBIA in X, as adjusted under section 1016(a)(2) for that is qualified property has a UBIA the qualified property shall be the same depreciation deductions under section equal to the fair market value of such as the transferor’s UBIA in the property, 168(a), is $820,482. other property. decreased by the amount of money (B) A’s UBIA in Real Property Y is $1 (B) Excess boot. For purposes of received by the transferor in the million as determined under paragraph paragraph (c)(3)(ii)(A) of this section, (c)(3)(ii) of this section. Pursuant to transaction or increased by the amount paragraph (c)(2)(iii)(A) of this section, Real excess boot is the amount of any money of money paid by the transferee to Property Y is first placed in service by A on or the fair market value of other acquire the property in the transaction. January 5, 2012, which is the date on which property received by the taxpayer in the (v) Qualified property acquired from a Real Property X was first placed in service by exchange over the amount of decedent. In the case of qualified A. appreciation in the relinquished property acquired from a decedent and (iii) Example 3. (A) The facts are the same as in Example 1 of paragraph (c)(4)(i) of this property. Appreciation for this purpose immediately placed in service, the UBIA is the excess of the fair market value of section, except that on January 15, 2019, A of the property will generally be the fair enters into a like-kind exchange under the relinquished property on the date of market value at the date of the the exchange over the fair market value section 1031, in which A exchanges Real decedent’s death under section 1014. of the relinquished property on the date Property X for Real Property Y. Real Property See section 1014 and the regulations X has appreciated in value to $1.3 million, of the acquisition by the taxpayer. and Real Property Y also has a value of $1.3 (iii) Qualified property acquired thereunder. Solely for purposes of paragraph (c)(2)(i) of this section, a new million. No cash or other property is pursuant to an involuntary conversion— involved in the exchange. As of January 15, (A) In general. Solely for purposes of depreciable period for the property commences as of the date of the 2019, A’s basis in Real Property X, as this section, if qualified property is adjusted under section 1016(a)(2), is compulsorily or involuntarily converted decedent’s death. $820,482. (converted property) within the (vi) Property acquired in a (B) A’s UBIA in Real Property Y is $1 meaning of section 1033 and qualified nonrecognition transaction with million as determined under paragraph replacement property is acquired in a principal purpose of increasing UBIA. If (c)(3)(ii) of this section. Pursuant to transaction that qualifies for deferral of qualified property is acquired in a paragraph (c)(2)(iii)(A) of this section, Real gain under section 1033, then the UBIA transaction described in section 1031, Property Y is first placed in service by A on January 5, 2012, which is the date on which of the replacement property is the same 1033, or 168(i)(7) with the principal Real Property X was first placed in service by as the UBIA of the converted property, purpose of increasing the UBIA of the A. decreased by excess boot or increased qualified property, the UBIA of the (iv) Example 4. (A) The facts are the same by the amount of money paid or the fair acquired qualified property is its basis as in Example 1 of paragraph (c)(4)(i) of this market value of property not similar or as determined under relevant Code section, except that on January 15, 2019, A related in service or use to the converted sections and not under the rules enters into a like-kind exchange under property (other property) transferred by described in paragraphs (c)(3)(i) through section 1031, in which A exchanges Real the taxpayer to acquire the replacement (iv) of this section. For example, in a Property X for Real Property Y. Real Property property. If the taxpayer acquires more section 1031 transaction undertaken X has appreciated in value to $1.3 million, but Real Property Y has a value of $1.5 than one piece of qualified replacement with the principal purpose of increasing million. A therefore adds $200,000 in cash to property that meets the similar or the UBIA of the replacement property, the exchange of Real Property X for Real related in service or use requirements in the UBIA of the replacement property is Property Y. On January 15, 2019, A places section 1033, UBIA is apportioned its basis as determined under section Real Property Y in service. As of January 15, between the qualified replacement 1031(d). 2019, A’s basis in Real Property X, as
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adjusted under section 1016(a)(2), is X on the date of the exchange over the $1 the property in service in 2011. Therefore, $820,482. million fair market value of Property X on the Machinery Y may be qualified property of the (B) A’s UBIA in Real Property Y is $1.2 date of acquisition by the taxpayer)). S corporation (assuming it continues to be million as determined under paragraph Pursuant to paragraph (c)(2)(iii)(A) of this used in the business) for 2019 and 2020 and (c)(3)(ii) of this section ($1 million in UBIA section, Real Property Y is first placed in will not be qualified property of the S from Real Property X plus $200,000 cash service by A on January 5, 2012, which is the corporation after 2020, because its paid by A to acquire Real Property Y). date on which Real Property X was first depreciable period will have expired. Because the UBIA of Real Property Y exceeds placed in service by A. (ix) Example 9. (A) LLC, a partnership, the UBIA of Real Property X, Real Property (vii) Example 7. (A) The facts are the same operates a trade or business that is not an Y is treated as being two separate qualified as in Example 1 of paragraph (c)(4)(i) of this SSTB. On January 5, 2011, LLC purchases properties for purposes of applying section, except that on January 15, 2019, A Machinery Z for $30,000 and places it in paragraph (c)(2)(iii)(A) of this section. One enters into a like-kind exchange under service in LLC’s trade or business. LLC’s property has a UBIA of $1 million (the section 1031, in which A exchanges Real basis in Machinery Z under section 1012 is portion of A’s UBIA of $1.2 million in Real Property X for Real Property Y. Real Property $30,000. Machinery Z is qualified property Property Y that does not exceed A’s UBIA of X has declined in value to $900,000, and Real within the meaning of section 199A(b)(6). $1 million in Real Property X) and it is first Property Y also has a value of $900,000. No Assume that Machinery Z’s recovery period placed in service by A on January 5, 2012, cash or other property is involved in the under section 168(c) is 10 years, and LLC which is the date on which Real Property X exchange. As of January 15, 2019, A’s basis depreciates Machinery Z under the general was first placed in service by A. The other in Real Property X, as adjusted under section depreciation system by using the straight-line property has a UBIA of $200,000 (the portion 1016(a)(2), is $820,482. depreciation method, a 10-year recovery of A’s UBIA of $1.2 million in Real Property (B) Even though Real Property Y is worth period, and the half-year convention. As of Y that exceeds A’s UBIA of $1 million in Real only $900,000, A’s UBIA in Real Property Y December 31, 2018, LLC’s basis in Machinery Property X) and it is first placed in service is $1 million as determined under paragraph Z, as adjusted under section 1016(a)(2) for by A on January 15, 2019, which is the date (c)(3)(ii) of this section because no cash or depreciation deductions under section on which Real Property Y was first placed in other property was involved in the exchange. 168(a), is $7,500. On January 1, 2019, LLC service by A. Pursuant to paragraph (c)(2)(iii)(A) of this distributes Machinery Z to Partner A in full (v) Example 5. (A) The facts are the same section, Real Property Y is first placed in liquidation of Partner A’s interest in LLC. as in Example 1 of paragraph (c)(4)(i) of this service by A on January 5, 2012, which is the Partner A’s outside basis in LLC is $35,000. section, except that on January 15, 2019, A date on which Real Property X was first (B) For purposes of section enters into a like-kind exchange under placed in service by A. 199A(b)(2)(B)(ii) and this section, LLC’s section 1031, in which A exchanges Real (viii) Example 8. (A) C operates a trade or UBIA of Machinery Z from 2011 through Property X for Real Property Y. Real Property business that is not an SSTB as a sole 2018 is its $30,000 cost basis under section X has appreciated in value to $1.3 million. proprietorship. On January 5, 2011, C 1012, regardless of any later depreciation Real Property Y has a fair market value of $1 purchases Machinery Y for $10,000 and deductions under section 168(a) and million. As of January 15, 2019, A’s basis in places it in service in C’s trade or business. resulting basis adjustments under section Real Property X, as adjusted under section C’s basis in Machinery Y under section 1012 1016(a)(2). Prior to the distribution to Partner 1016(a)(2), is $820,482. Pursuant to the is $10,000. Machinery Y is qualified property A, LLC’s basis of Machinery Z is $7,500. exchange, A receives Real Property Y and within the meaning of section 199A(b)(6). Under section 732(b), Partner A’s basis in $300,000 in cash. Assume that Machinery Y’s recovery period Machinery Z is $35,000. Pursuant to (B) A’s UBIA in Real Property Y is $1 under section 168(c) is 10 years, and C paragraph (c)(3)(iv) of this section, upon million as determined under paragraph depreciates Machinery Y under the general distribution of Machinery Z, Partner A’s (c)(3)(ii) of this section ($1 million in UBIA depreciation system by using the straight-line UBIA of Machinery Z is $30,000, which was from Real Property X, less $0 excess boot depreciation method, a 10-year recovery LLC’s UBIA of Machinery Z. ($300,000 cash received in the exchange over period, and the half-year convention. As of (d) Applicability date—(1) General $300,000 in appreciation in Property X, December 31, 2018, C’s basis in Machinery Y, rule. Except as provided in paragraph which is equal to the excess of the $1.3 as adjusted under section 1016(a)(2) for million fair market value of Property X on the depreciation deductions under section (d)(2) of this section, the provisions of date of the exchange over $1 million fair 168(a), is $2,500. On January 1, 2019, C this section apply to taxable years market value of Property X on the date of incorporates the sole proprietorship and ending after February 8, 2019. acquisition by the taxpayer)). Pursuant to elects to treat the newly formed entity as an (2) Exceptions—(i) Anti-abuse rules. paragraph (c)(2)(iii)(A) of this section, Real S corporation for Federal income tax The provisions of paragraph (c)(1)(iv) of Property Y is first placed in service by A on purposes. C contributes Machinery Y and all this section apply to taxable years January 5, 2012, which is the date on which other assets of the trade or business to the S ending after December 22, 2017. Real Property X was first placed in service by corporation in a non-recognition transaction (ii) Non-calendar year RPE. For A. under section 351. The S corporation purposes of determining QBI, W–2 (vi) Example 6. (A) The facts are the same immediately places all the assets in service. wages, UBIA of qualified property, and as in Example 1 of paragraph (c)(4)(i) of this (B) For purposes of section the aggregate amount of qualified REIT section, except that on January 15, 2019, A 199A(b)(2)(B)(ii) and this section, C’s UBIA enters into a like-kind exchange under of Machinery Y from 2011 through 2018 is dividends and qualified PTP income if section 1031, in which A exchanges Real its $10,000 cost basis under section 1012, an individual receives any of these Property X for Real Property Y. Real Property regardless of any later depreciation items from an RPE with a taxable year X has appreciated in value to $1.3 million. deductions under section 168(a) and that begins before January 1, 2018, and Real Property Y has a fair market value of resulting basis adjustments under section ends after December 31, 2017, such $900,000. Pursuant to the exchange, A 1016(a)(2). The S corporation’s basis of items are treated as having been receives Real Property Y and $400,000 in Machinery Y is $2,500, the basis of the incurred by the individual during the cash. As of January 15, 2019, A’s basis in property under section 362 at the time the S individual’s taxable year in which or Real Property X, as adjusted under section corporation places the property in service. with which such RPE taxable year ends. 1016(a)(2), is $820,482. Pursuant to paragraph (c)(3)(iv) of this (B) A’s UBIA in Real Property Y is section, S corporation’s UBIA of Machinery ■ Par. 5. Section 1.199A–3 is added to $900,000 as determined under paragraph Y is $10,000, which is C’s UBIA of read as follows: (c)(3)(ii) of this section ($1 million in UBIA Machinery Y. Pursuant to paragraph from Real Property X less $100,000 excess (c)(2)(iv)(A) of this section, for purposes of § 1.199A–3 Qualified business income, boot ($400,000 in cash received in the determining the depreciable period of qualified REIT dividends, and qualified PTP exchange over $300,000 in appreciation in Machinery Y, the S corporation’s placed in income. Property X, which is equal to the excess of service date of Machinery Y will be January (a) In general. This section provides the $1.3 million fair market value of Property 5, 2011, which is the date C originally placed rules on the determination of a trade or
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business’s qualified business income 465, 469, 704(d), and 1366(d)) allowed section 199A(c)(3)(B) and (c)(4), the (QBI), as well as the determination of in the taxable year are taken into following items are not taken into qualified real estate investment trust account for purposes of computing QBI. account as qualified items of income, (REIT) dividends and qualified publicly These losses shall be used, for purposes gain, deduction, or loss and thus are not traded partnership (PTP) income. The of section 199A and these regulations, included in determining QBI: provisions of this section apply solely in order from the oldest to the most (A) Any item of short-term capital for purposes of section 199A of the recent on a first-in, first-out (FIFO) gain, short-term capital loss, long-term Internal Revenue Code (Code). basis. However, losses or deductions capital gain, or long-term capital loss, Paragraph (b) of this section provides that were disallowed, suspended, including any item treated as one of rules for the determination of QBI. limited, or carried over from taxable such items under any other provision of Paragraph (c) of this section provides years ending before January 1, 2018 the Code. This provision does not apply rules for the determination of qualified (including under sections 465, 469, to the extent an item is treated as REIT dividends and qualified PTP 704(d), and 1366(d)), are not taken into anything other than short-term capital income. QBI must be determined and account in a later taxable year for gain, short-term capital loss, long-term reported for each trade or business by purposes of computing QBI. capital gain, or long-term capital loss. the individual or relevant passthrough (v) Net operating losses. Generally, a (B) Any dividend, income equivalent entity (RPE) that directly conducts the net operating loss deduction under to a dividend, or payment in lieu of trade or business before applying the section 172 is not considered with dividends described in section aggregation rules of § 1.199A–4. respect to a trade or business and 954(c)(1)(G). Any amount described in (b) Definition of qualified business therefore, is not taken into account in section 1385(a)(1) is not treated as income—(1) In general. For purposes of computing QBI. However, an excess described in this clause. this section, the term qualified business business loss under section 461(l) is (C) Any interest income other than income or QBI means, for any taxable treated as a net operating loss carryover interest income which is properly year, the net amount of qualified items to the following taxable year and is allocable to a trade or business. For of income, gain, deduction, and loss taken into account for purposes of purposes of section 199A and this with respect to any trade or business of computing QBI in the subsequent section, interest income attributable to the taxpayer as described in paragraph taxable year in which it is deducted. an investment of working capital, (b)(2) of this section, provided the other (vi) Other deductions. Generally, reserves, or similar accounts is not requirements of this section and section deductions attributable to a trade or properly allocable to a trade or business. 199A are satisfied (including, for business are taken into account for (D) Any item of gain or loss described example, the exclusion of income not purposes of computing QBI to the extent in section 954(c)(1)(C) (transactions in effectively connected with a United that the requirements of section 199A commodities) or section 954(c)(1)(D) States trade or business). and this section are otherwise satisfied. (excess foreign currency gains) applied (i) Section 751 gain. With respect to For purposes of section 199A only, in each case by substituting ‘‘trade or a partnership, if section 751(a) or (b) deductions such as the deductible business (within the meaning of section applies, then gain or loss attributable to portion of the tax on self-employment 199A)’’ for ‘‘controlled foreign assets of the partnership giving rise to income under section 164(f), the self- corporation.’’ ordinary income under section 751(a) or employed health insurance deduction (E) Any item of income, gain, (b) is considered attributable to the under section 162(l), and the deduction deduction, or loss described in section trades or businesses conducted by the for contributions to qualified retirement 954(c)(1)(F) (income from notional partnership, and is taken into account plans under section 404 are considered principal contracts) determined without for purposes of computing QBI. attributable to a trade or business to the regard to section 954(c)(1)(F)(ii) and (ii) Guaranteed payments for the use extent that the individual’s gross other than items attributable to notional of capital. Income attributable to a income from the trade or business is principal contracts entered into in guaranteed payment for the use of taken into account in calculating the transactions qualifying under section capital is not considered to be allowable deduction, on a proportionate 1221(a)(7). attributable to a trade or business, and basis to the gross income received from (F) Any amount received from an thus is not taken into account for the trade or business. annuity which is not received in purposes of computing QBI except to (2) Qualified items of income, gain, connection with the trade or business. the extent properly allocable to a trade deduction, and loss—(i) In general. The (G) Any qualified REIT dividends as or business of the recipient. The term qualified items of income, gain, defined in paragraph (c)(2) of this partnership’s deduction associated with deduction, and loss means items of section or qualified PTP income as the guaranteed payment will be taken gross income, gain, deduction, and loss defined in paragraph (c)(3) of this into account for purposes of computing to the extent such items are— section. QBI if such deduction is properly (A) Effectively connected with the (H) Reasonable compensation allocable to the trade or business and is conduct of a trade or business within received by a shareholder from an S otherwise deductible for Federal income the United States (within the meaning of corporation. However, the S tax purposes. section 864(c), determined by corporation’s deduction for such (iii) Section 481 adjustments. Section substituting ‘‘trade or business (within reasonable compensation will reduce 481 adjustments (whether positive or the meaning of section 199A)’’ for QBI if such deduction is properly negative) are taken into account for ‘‘nonresident alien individual or a allocable to the trade or business and is purposes of computing QBI to the extent foreign corporation’’ or for ‘‘a foreign otherwise deductible for Federal income that the requirements of this section and corporation’’ each place it appears); and tax purposes. section 199A are otherwise satisfied, but (B) Included or allowed in (I) Any guaranteed payment described only if the adjustment arises in taxable determining taxable income for the in section 707(c) received by a partner years ending after December 31, 2017. taxable year. for services rendered with respect to the (iv) Previously disallowed losses. (ii) Items not taken into account. trade or business, regardless of whether Generally, previously disallowed losses Notwithstanding paragraph (b)(2)(i) of the partner is an individual or an RPE. or deductions (including under sections this section and in accordance with However, the partnership’s deduction
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for such guaranteed payment will paragraph (c)(3) of this section earned 1(d)(3) and 1.199A–5 also apply to reduce QBI if such deduction is directly or through an RPE. income earned from a PTP. properly allocable to the trade or (2) Qualified REIT dividend—(i) The Furthermore, each PTP is required to business and is otherwise deductible for term qualified REIT dividend means any determine its qualified PTP income for Federal income tax purposes. dividend from a REIT received during each trade or business and report that (J) Any payment described in section the taxable year which— information to its owners as described 707(a) received by a partner for services (A) Is not a capital gain dividend, as in § 1.199A–6(b)(3). rendered with respect to the trade or defined in section 857(b)(3); and (d) [Reserved] business, regardless of whether the (B) Is not qualified dividend income, (e) Applicability date—(1) General partner is an individual or an RPE. as defined in section 1(h)(11). rule. Except as provided in paragraph However, the partnership’s deduction (ii) The term qualified REIT dividend (e)(2) of this section, the provisions of for such payment will reduce QBI if does not include any REIT dividend this section apply to taxable years such deduction is properly allocable to received with respect to any share of ending after February 8, 2019. the trade or business and is otherwise REIT stock— (2) Exceptions—(i) Anti-abuse rules. deductible for Federal income tax (A) That is held by the shareholder for The provisions of paragraph (c)(2)(ii) of purposes. 45 days or less (taking into account the this section apply to taxable years (3) Commonwealth of Puerto Rico. For principles of section 246(c)(3) and (4)) ending after December 22, 2017. the purposes of determining QBI, the during the 91-day period beginning on (ii) Non-calendar year RPE. For term United States includes the the date which is 45 days before the purposes of determining QBI, W–2 Commonwealth of Puerto Rico in the date on which such share becomes ex- wages, UBIA of qualified property, and case of any taxpayer with QBI for any dividend with respect to such dividend; the aggregate amount of qualified REIT taxable year from sources within the or dividends and qualified PTP income if Commonwealth of Puerto Rico, if all of (B) To the extent that the shareholder an individual receives any of these such receipts are taxable under section is under an obligation (whether items from an RPE with a taxable year 1 for such taxable year. This paragraph pursuant to a short sale or otherwise) to that begins before January 1, 2018, and (b)(3) only applies as provided in make related payments with respect to ends after December 31, 2017, such section 199A(f)(1)(C). positions in substantially similar or items are treated as having been (4) Wages. Expenses for all wages paid related property. incurred by the individual during the (or incurred in the case of an accrual (3) Qualified PTP income—(i) In individual’s taxable year in which or method taxpayer) must be taken into general. The term qualified PTP income with which such RPE taxable year ends. account in computing QBI (if the means the sum of— ■ Par. 6. Section 1.199A–4 is added to requirements of this section and section (A) The net amount of such taxpayer’s read as follows: 199A are satisfied) regardless of the allocable share of income, gain, application of the W–2 wage limitation deduction, and loss from a PTP as § 1.199A–4 Aggregation. described in § 1.199A–1(d)(2)(iv). defined in section 7704(b) that is not (a) Scope and purpose. An individual (5) Allocation of items among taxed as a corporation under section or RPE may be engaged in more than directly-conducted trades or businesses. 7704(a); plus one trade or business. Except as If an individual or an RPE directly (B) Any gain or loss attributable to provided in this section, each trade or conducts multiple trades or businesses, assets of the PTP giving rise to ordinary business is a separate trade or business and has items of QBI that are properly income under section 751(a) or (b) that for purposes of applying the limitations attributable to more than one trade or is considered attributable to the trades described in § 1.199A–1(d)(2)(iv). This business, the individual or RPE must or businesses conducted by the section sets forth rules to allow allocate those items among the several partnership. individuals and RPEs to aggregate trades trades or businesses to which they are (ii) Special rules. The rules applicable or businesses, treating the aggregate as attributable using a reasonable method to the determination of QBI described in a single trade or business for purposes based on all the facts and paragraph (b) of this section also apply of applying the limitations described in circumstances. The individual or RPE to the determination of a taxpayer’s § 1.199A–1(d)(2)(iv). Trades or may use a different reasonable method allocable share of income, gain, businesses may be aggregated only to with respect to different items of deduction, and loss from a PTP. An the extent provided in this section, but income, gain, deduction, and loss. The individual’s allocable share of income aggregation by taxpayers is not required. chosen reasonable method for each item from a PTP, and any section 751 gain or (b) Aggregation rules—(1) General must be consistently applied from one loss is qualified PTP income only to the rule. Trades or businesses may be taxable year to another and must clearly extent the items meet the qualifications aggregated only if an individual or RPE reflect the income and expenses of each of section 199A and this section, can demonstrate that— trade or business. The overall including the requirement that the item (i) The same person or group of combination of methods must also be is included or allowed in determining persons, directly or by attribution under reasonable based on all facts and taxable income for the taxable year, and sections 267(b) or 707(b), owns 50 circumstances. The books and records the requirement that the item be percent or more of each trade or maintained for a trade or business must effectively connected with the conduct business to be aggregated, meaning in be consistent with any allocations under of a trade or business within the United the case of such trades or businesses this paragraph (b)(5). States. For example, if an individual owned by an S corporation, 50 percent (c) Qualified REIT Dividends and owns an interest in a PTP, and for the or more of the issued and outstanding Qualified PTP Income—(1) In general. taxable year is allocated a distributive shares of the corporation, or, in the case Qualified REIT dividends and qualified share of net loss which is disallowed of such trades or businesses owned by PTP income are the sum of qualified under the passive activity rules of a partnership, 50 percent or more of the REIT dividends as defined in paragraph section 469, such loss is not taken into capital or profits in the partnership; (c)(2) of this section earned directly or account for purposes of section 199A. (ii) The ownership described in through an RPE and the net amount of The specified service trade or business paragraph (b)(1)(i) of this section exists qualified PTP income as defined in limitations described in §§ 1.199A– for a majority of the taxable year,
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including the last day of the taxable lower-tier RPE but may aggregate businesses. The individual may not year, in which the items attributable to additional trades or businesses with a aggregate trades or businesses that are each trade or business to be aggregated lower-tier RPE’s aggregation if the rules disaggregated by the Commissioner for are included in income; of this section are otherwise satisfied. the subsequent three taxable years. (iii) All of the items attributable to (c) Reporting and consistency (3) RPEs. Once an RPE chooses to each trade or business to be aggregated requirements—(1) Individuals. Once an aggregate two or more trades or are reported on returns with the same individual chooses to aggregate two or businesses, the RPE must consistently taxable year, not taking into account more trades or businesses, the report the aggregated trades or short taxable years; individual must consistently report the businesses in all subsequent taxable (iv) None of the trades or businesses aggregated trades or businesses in all years. A failure to aggregate will not be to be aggregated is a specified service subsequent taxable years. A failure to considered to be an aggregation for trade or business (SSTB) as defined in aggregate will not be considered to be an purposes of this rule. An RPE that fails § 1.199A–5; and aggregation for purposes of this rule. An to aggregate may not aggregate trades or (v) The trades or businesses to be individual that fails to aggregate may businesses on an amended return (other aggregated satisfy at least two of the not aggregate trades or businesses on an than an amended return for the 2018 following factors (based on all of the amended return (other than an amended taxable year). However, an RPE may add facts and circumstances): return for the 2018 taxable year). a newly created or newly acquired (A) The trades or businesses provide However, an individual may add a (including through non-recognition products, property, or services that are newly created or newly acquired transfers) trade or business to an the same or customarily offered (including through non-recognition existing aggregated trade or business together. transfers) trade or business to an (other than the aggregated trade or (B) The trades or businesses share existing aggregated trade or business business of a lower-tier RPE) if the facilities or share significant centralized (including the aggregated trade or requirements of paragraph (b)(1) of this business elements, such as personnel, business of an RPE) if the requirements section are satisfied. In a subsequent accounting, legal, manufacturing, of paragraph (b)(1) of this section are year, if there is a significant change in purchasing, human resources, or satisfied. In a subsequent year, if there facts and circumstances such that an information technology resources. is a significant change in facts and RPE’s prior aggregation of trades or (C) The trades or businesses are circumstances such that an individual’s businesses no longer qualifies for operated in coordination with, or prior aggregation of trades or businesses aggregation under the rules of this reliance upon, one or more of the no longer qualifies for aggregation under section, then the trades or businesses businesses in the aggregated group (for the rules of this section, then the trades will no longer be aggregated within the example, supply chain or businesses will no longer be meaning of this section, and the RPE interdependencies). aggregated within the meaning of this must reapply the rules in paragraph (2) Operating rules—(i) Individuals. section, and the individual must (b)(1) of this section to determine a new An individual may aggregate trades or reapply the rules in paragraph (b)(1) of permissible aggregation (if any). An RPE businesses operated directly or through this section to determine a new also must report aggregated trades or an RPE to the extent an aggregation is permissible aggregation (if any). An businesses of a lower-tier RPE in which not inconsistent with the aggregation of individual also must report aggregated the RPE holds a direct or indirect an RPE. If an individual aggregates trades or businesses of an RPE in which interest. multiple trades or businesses under the individual holds a direct or indirect (4) RPE disclosure—(i) Required paragraph (b)(1) of this section, QBI, interest. annual disclosure. For each taxable W–2 wages, and UBIA of qualified (2) Individual disclosure—(i) Required year, RPEs (including each RPE in a property must be combined for the annual disclosure. For each taxable tiered structure) must attach a statement aggregated trades or businesses for year, individuals must attach a to each owner’s Schedule K–1 purposes of applying the W–2 wage and statement to their returns identifying identifying each trade or business UBIA of qualified property limitations each trade or business aggregated under aggregated under paragraph (b)(1) of this described in § 1.199A–1(d)(2)(iv). An paragraph (b)(1) of this section. The section. The statement must contain— individual may not subtract from the statement must contain— (A) A description of each trade or trades or businesses aggregated by an (A) A description of each trade or business; RPE but may aggregate additional trades business; (B) The name and EIN of each entity or businesses with the RPE’s aggregation (B) The name and EIN of each entity in which a trade or business is operated; if the rules of this section are otherwise in which a trade or business is operated; (C) Information identifying any trade satisfied. (C) Information identifying any trade or business that was formed, ceased (ii) RPEs. An RPE may aggregate or business that was formed, ceased operations, was acquired, or was trades or businesses operated directly or operations, was acquired, or was disposed of during the taxable year; through a lower-tier RPE to the extent disposed of during the taxable year; (D) Information identifying any an aggregation is not inconsistent with (D) Information identifying any aggregated trade or business of an RPE the aggregation of a lower-tier RPE. If an aggregated trade or business of an RPE in which the RPE holds an ownership RPE itself does not aggregate, multiple in which the individual holds an interest; and owners of an RPE need not aggregate in ownership interest; and (E) Such other information as the the same manner. If an RPE aggregates (E) Such other information as the Commissioner may require in forms, multiple trades or businesses under Commissioner may require in forms, instructions, or other published paragraph (b)(1) of this section, the RPE instructions, or other published guidance. must compute and report QBI, W–2 guidance. (ii) Failure to disclose. If an RPE fails wages, and UBIA of qualified property (ii) Failure to disclose. If an to attach the statement required in for the aggregated trade or business individual fails to attach the statement paragraph (c)(2)(i) of this section, the under the rules described in § 1.199A– required in paragraph (c)(2)(i) of this Commissioner may disaggregate the 6(b). An RPE may not subtract from the section, the Commissioner may RPE’s trades or businesses. The RPE trades or businesses aggregated by a disaggregate the individual’s trades or may not aggregate trades or businesses
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that are disaggregated by the (ii) Analysis. W owns more than 50% of (b)(1)(v)(B) of this section because of their Commissioner for the subsequent three the stock of S1 and more than 50% of PRS centralized purchasing and accounting taxable years. thereby satisfying paragraph (b)(1)(i) of this offices. D is only able to show that the (d) Examples. The following examples section. Although W manages both S1 and requirements of paragraph (b)(1)(v)(B) of this PRS, W is not able to satisfy the requirements section are satisfied for S1 and S2; therefore, illustrate the principles of this section. of paragraph (b)(1)(v) of this section as the D only may aggregate S1 and S2 into a single For purposes of these examples, assume two businesses do not provide goods or trade or business for purposes of § 1.199A– the taxpayer is a United States citizen, services that are the same or customarily 1(d). D must report S3 as a separate trade or all individuals and RPEs use a calendar offered together; there are no significant business for purposes of applying § 1.199A– taxable year, there are no ownership centralized business elements; and no facts 1(d). changes during the taxable year, all indicate that the businesses are operated in (7) Example 7—(i) Facts. Assume the same trades or businesses satisfy the coordination with, or reliance upon, one facts as Example 6 of paragraph (d)(6) of this section except each store is independently requirements under section 162, all tax another. W must treat S1 and PRS as separate trades or businesses for purposes of applying operated and S1 and S2 do not have items are effectively connected to a § 1.199A–1(d). centralized purchasing or accounting trade or business within the United (4) Example 4—(i) Facts. E owns a 60% functions. States within the meaning of section interest in each of four partnerships (PRS1, (ii) Analysis. Although the stores provide 864(c), and none of the trades or PRS2, PRS3, and PRS4). Each partnership the same products and services within the businesses is an SSTB within the operates a hardware store. A team of meaning of paragraph (b)(1)(v)(A) of this meaning of § 1.199A–5. Except as executives oversees the operations of all four section, D cannot show that another factor otherwise specified, a single capital of the businesses and controls the policy under paragraph (b)(1)(v) of this section is present. Therefore, D must report S1, S2, and letter denotes an individual taxpayer. decisions involving the business as a whole. Human resources and accounting are S3 as separate trades or businesses for (1) Example 1—(i) Facts. A wholly owns centralized for the four businesses. E reports purposes of applying § 1.199A–1(d). and operates a catering business and a PRS1, PRS3, and PRS4 as an aggregated trade (8) Example 8—(i) Facts. G owns 80% of restaurant through separate disregarded or business under paragraph (b)(1) of this the stock in S1, an S corporation and 80% entities. The catering business and the section and reports PRS2 as a separate trade of LLC1 and LLC2, each of which is a restaurant share centralized purchasing to or business. Only PRS2 generates a net partnership for Federal tax purposes. LLC1 obtain volume discounts and a centralized taxable loss. manufactures and supplies all of the widgets accounting office that performs all of the (ii) Analysis. E owns more than 50% of sold by LLC2. LLC2 operates a retail store bookkeeping, tracks and issues statements on each partnership thereby satisfying paragraph that sells LLC1’s widgets. S1 owns the real property leased to LLC1 and LLC2 for use by all of the receivables, and prepares the (b)(1)(i) of this section. Under paragraph the factory and retail store. The entities share payroll for each business. A maintains a (b)(1)(v) of this section, the following factors common advertising and management. website and print advertising materials that are satisfied: Paragraph (b)(1)(v)(A) of this (ii) Analysis. G owns more than 50% of the reference both the catering business and the section because each partnership operates a restaurant. A uses the restaurant kitchen to stock of S1 and more than 50% of LLC1 and hardware store; and paragraph (b)(1)(v)(B) of prepare food for the catering business. The LLC2 thus satisfying paragraph (b)(1)(i) of this section because the businesses share catering business employs its own staff and this section. LLC1, LLC2, and S1 share accounting and human resource functions. owns equipment and trucks that are not used significant centralized business elements and E’s decision to aggregate only PRS1, PRS3, or associated with the restaurant. are operated in coordination with, or in (ii) Analysis. Because the restaurant and and PRS4 into a single trade or business for reliance upon, one or more of the businesses catering business are held in disregarded purposes of applying § 1.199A–1(d) is in the aggregated group. G can treat the entities, A will be treated as operating each permissible. The loss from PRS2 will be business operations of LLC1 and LLC2 as a of these businesses directly and thereby netted against the aggregate profits of PRS1, single trade or business for purposes of satisfies paragraph (b)(1)(i) of this section. PRS3, and PRS4 pursuant to § 1.199A– applying § 1.199A–1(d). S1 is eligible to be Under paragraph (b)(1)(v) of this section, A 1(d)(2)(iii). included in the aggregated group because it satisfies the following factors: Paragraph (5) Example 5—(i) Facts. Assume the same leases property to a trade or business within (b)(1)(v)(A) of this section is met as both facts as Example 4 of paragraph (d)(4) of this the aggregated trade or business as described businesses offer prepared food to customers; section, and that F owns a 10% interest in in § 1.199A–1(b)(14) and meets the and paragraph (b)(1)(v)(B) of this section is PRS1, PRS2, PRS3, and PRS4. requirements of paragraph (b)(1) of this met because the two businesses share the (ii) Analysis. Because under paragraph section. same kitchen facilities in addition to (b)(1)(i) of this section E owns more than (9) Example 9—(i) Facts. Same facts as centralized purchasing, marketing, and 50% of the four partnerships, F may Example 8 of paragraph (d)(8) of this section, accounting. Having satisfied paragraphs aggregate PRS 1, PRS2, PRS3, and PRS4 as a except G owns 80% of the stock in S1 and (b)(1)(i) through (v) of this section, A may single trade or business for purposes of 20% of each of LLC1 and LLC2. B, G’s son, treat the catering business and the restaurant applying § 1.199A–1(d), provided that F can owns a majority interest in LLC2, and M, G’s as a single trade or business for purposes of demonstrate that the ownership test is met by mother, owns a majority interest in LLC1. B applying § 1.199A–1(d). E. does not own an interest in S1 or LLC1, and (2) Example 2—(i) Facts. Assume the same (6) Example 6—(i) Facts. D owns 75% of M does not own an interest in S1 or LLC2. facts as in Example 1 of paragraph (d)(1) of the stock of S1, S2, and S3, each of which (ii) Analysis. Under the rules in paragraph this section, but the catering and restaurant is an S corporation. Each S corporation (b)(1) of this section, B and M’s interest in businesses are owned in separate operates a grocery store in a separate state. LLC2 and LLC1, respectively, are attributable partnerships and A, B, C, and D each own a S1 and S2 share centralized purchasing to G and G is treated as owning a majority 25% interest in each of the two partnerships. functions to obtain volume discounts and a interest in LLC2 and LLC1; G thus satisfies A, B, C, and D are unrelated. centralized accounting office that performs paragraph (b)(1)(i) of this section. G may (ii) Analysis. Because under paragraph all of the bookkeeping, tracks and issues aggregate his interests in LLC1, LLC2, and S1 (b)(1)(i) of this section A, B, C, and D together statements on all of the receivables, and as a single trade or business for purposes of own more than 50% of each of the two prepares the payroll for each business. S3 is applying § 1.199A–1(d). Under paragraph partnerships, they may each treat the catering operated independently from the other (b)(1) of this section, S1 is eligible to be business and the restaurant as a single trade businesses. included in the aggregated group because it or business for purposes of applying (ii) Analysis. D owns more than 50% of the leases property to a trade or business within § 1.199A–1(d). stock of each S corporation thereby satisfying the aggregated trade or business as described (3) Example 3—(i) Facts. W owns a 75% paragraph (b)(1)(i) of this section. Under in § 1.199A–1(b)(14) and meets the interest in S1, an S corporation, and a 75% paragraph (b)(1)(v) of this section, the grocery requirements of paragraph (b)(1) of this interest in PRS, a partnership. S1 stores satisfy paragraph (b)(1)(v)(A) of this section. manufactures clothing and PRS is a retail pet section because they are in the same trade or (10) Example 10—(i) Facts. F owns a 75% food store. W manages S1 and PRS. business. Only S1 and S2 satisfy paragraph interest and G owns a 5% interest in five
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partnerships (PRS1–PRS5). H owns a 10% reliance of one another under paragraph (16) Example 16—(i) Facts. PRS1, a interest in PRS1 and PRS2. Each partnership (b)(1)(v)(C) of this section. For purposes of partnership, owns 60% of a commercial operates a restaurant and each restaurant applying § 1.199A–1(d), L must treat PRS1 rental office building in state A, and 80% of separately constitutes a trade or business for and PRS2 as separate trades or businesses. a commercial rental office building in state purposes of section 162. G is the executive (13) Example 13—(i) Facts. C owns a B. Both commercial rental office building chef of all of the restaurants and as such he majority interest in a sailboat racing team and operations share centralized accounting, creates the menus and orders the food also owns an interest in PRS1 which operates legal, and human resource functions. PRS1 supplies. a marina. PRS1 is a trade or business under treats the two commercial rental office (ii) Analysis. F owns more than 50% of the section 162, but the sailboat racing team is buildings as an aggregated trade or business partnerships thereby satisfying paragraph not a trade or business within the meaning under paragraph (b)(1) of this section. (b)(1)(i) of this section. Under paragraph of section 162. (ii) Analysis. PRS1 owns more than 50% of (b)(1)(v) of this section, the restaurants satisfy (ii) Analysis. C has only one trade or each trade or business thereby satisfying paragraph (b)(1)(v)(A) of this section because business for purposes of section 199A and, paragraph (b)(1)(i) of this section. Under they are in the same trade or business, and therefore, cannot aggregate the interest in the paragraph (b)(1)(v) of this section, PRS1 may paragraph (b)(1)(v)(B) of this section is racing team with PRS1 under paragraph aggregate its commercial rental office satisfied as G is the executive chef of all of (b)(1) of this section. buildings because the businesses provide the the restaurants and the businesses share a (14) Example 14—(i) Facts. Trust wholly same type of property and share accounting, centralized function for ordering food and owns LLC1, LLC2, and LLC3. LLC1 operates legal, and human resource functions. supplies. F can show the requirements under a trucking company that delivers lumber and (17) Example 17—(i) Facts. S, an S paragraph (b)(1) of this section are satisfied other supplies sold by LLC2. LLC2 operates corporation owns 100% of the interests in a as to all of the restaurants. Because F owns a lumber yard and supplies LLC3 with residential condominium building and 100% a majority interest in each of the building materials. LLC3 operates a of the interests in a commercial rental office partnerships, G can demonstrate that construction business. LLC1, LLC2, and LLC3 building. Both building operations share paragraph (b)(1)(i) of this section is satisfied. have a centralized human resources centralized accounting, legal, and human G can also aggregate all five restaurants into department, payroll, and accounting resource functions. a single trade or business for purposes of department. (ii) Analysis. S owns more than 50% of applying § 1.199A–1(d). H, however, only (ii) Analysis. Because Trust owns 100% of each trade or business thereby satisfying owns an interest in PRS1 and PRS2. Like G, the interests in LLC1, LLC2, and LLC3, Trust paragraph (b)(1)(i) of this section. Although satisfies paragraph (b)(1)(i) of this section. H satisfies paragraph (b)(1)(i) of this section both businesses share significant centralized Trust can also show that it satisfies paragraph because F owns a majority interest. H can, business elements, S cannot show that (b)(1)(v)(B) of this section as the trades or therefore, aggregate PRS1 and PRS2 into a another factor under paragraph (b)(1)(v) of businesses have a centralized human single trade or business for purposes of this section is present because the two resources department, payroll, and applying § 1.199A–1(d). accounting department. Trust also can show building operations are not of the same type (11) Example 11—(i) Facts. H, J, K, and L is meets paragraph (b)(1)(v)(C) of this section of property. S must treat the residential own interests in PRS1 and PRS2, each a as the trades or businesses are operated in condominium building and the commercial partnership, and S1 and S2, each an S coordination, or reliance upon, one or more rental office building as separate trades or corporation. H, J, K, and L also own interests in the aggregated group. Trust can aggregate businesses for purposes of applying in C, an entity taxable as a C corporation. H LLC1, LLC2, and LLC3 for purposes of § 1.199A–1(d). owns 30%, J owns 20%, K owns 5%, and L applying § 1.199A–1(d). (18) Example 18—(i) Facts. M owns 75% owns 45% of each of the five entities. All of (15) Example 15—(i) Facts. PRS1, a of a residential apartment building. M also the entities satisfy 2 of the 3 factors under partnership, directly operates a food service owns 80% of PRS2. PRS2 owns 80% of the paragraph (b)(1)(v) of this section. For trade or business and owns 60% of PRS2, interests in a residential condominium purposes of section 199A the taxpayers which directly operates a movie theater trade building and 80% of the interests in a report the following aggregated trades or or business and a food service trade or residential apartment building. PRS2’s businesses: H aggregates PRS1 and S1 business. PRS2’s movie theater and food residential condominium building and together and aggregates PRS2 and S2 service businesses operate in coordination residential apartment building operations together; J aggregates PRS1, S1 and S2 with, or reliance upon, one another and share share centralized back office functions and together and reports PRS2 separately; K a centralized human resources department, management. M’s residential apartment aggregates PRS1 and PRS2 together and payroll, and accounting department. PRS1’s building and PRS2’s residential aggregates S1 and S2 together; and L and PRS2’s food service businesses provide condominium and apartment building aggregates S1, S2, and PRS2 together and products and services that are the same and operate in coordination with each other in reports PRS1 separately. C cannot be share centralized purchasing and shipping to renting apartments to tenants. aggregated. obtain volume discounts. (ii) Analysis. PRS2 may aggregate its (ii) Analysis. Under paragraph (b)(1)(i) of (ii) Analysis. PRS2 may aggregate its movie residential condominium and residential this section, because H, J, and K together own theater and food service businesses. apartment building operations. PRS2 owns a majority interest in PRS1, PRS2, S1, and S2, Paragraph (b)(1)(v) of this section is satisfied more than 50% of each trade or business H, J, K, and L are permitted to aggregate because the businesses operate in thereby satisfying paragraph (b)(1)(i) of this under paragraph (b)(1) of this section. coordination with one another and share section. Paragraph (b)(1)(v) of this section is Further, the aggregations reported by the centralized business elements. If PRS does satisfied because the businesses are of the taxpayers are permitted, but not required for aggregate the two businesses, PRS1 may not same type of property and share centralized each of H, J, K, and L. C’s income is not aggregate its food service business with back office functions and management. M eligible for the section 199A deduction and PRS2’s aggregated trades or businesses. may also add its residential apartment it cannot be aggregated for purposes of Because PRS1 owns more than 50% of PRS2, building operations to PRS2’s aggregated applying § 1.199A–1(d). thereby satisfying paragraph (b)(1)(i) of this residential condominium and apartment (12) Example 12—(i) Facts. L owns 60% of section, PRS1 may aggregate its food service building operations. M owns more than 50% PRS1, a partnership, a business that sells businesses with PRS2’s food service business of each trade or business thereby satisfying non-food items to grocery stores. L also owns if PRS2 has not aggregated its movie theater paragraph (b)(1)(i) of this section. Paragraph 55% of PRS2, a partnership, which owns and and food service businesses. Paragraph (b)(1)(v) of this section is also satisfied operates a distribution trucking business. The (b)(1)(v) of this section is satisfied because because the businesses operate in predominant portion of PRS2’s business is the businesses provide the same products coordination with each other. transporting goods for PRS1. and services and share centralized business (ii) Analysis. L is able to meet paragraph elements. Under either alternative, PRS1’s (e) Applicability date—(1) General (b)(1)(i) of this section as the majority owner food service business and PRS2’s movie rule. Except as provided in paragraph of PRS1 and PRS2. Under paragraph (b)(1)(v) theater cannot be aggregated because there (e)(2) of this section, the provisions of of this section, L is only able to show the are no factors in paragraph (b)(1)(v) of this this section apply to taxable years operations of PRS1 and PRS2 are operated in section present between the businesses. ending after February 8, 2019.
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(2) Exception for non-calendar year SSTB. The phase-in rule also applies to effect on other tax rules. This paragraph RPE. For purposes of determining QBI, income earned from a PTP. A direct or (b)(2) provides additional rules for W–2 wages, and UBIA of qualified indirect owner of a trade or business determining whether a business is an property, and the aggregate amount of engaged in the performance of a SSTB within the meaning of section qualified REIT dividends and qualified specified service is engaged in the 199A(d)(2) and paragraph (b) of this PTP income, if an individual receives performance of the specified service for section only. The rules of this paragraph any of these items from an RPE with a purposes of section 199A and this (b)(2) apply solely for purposes of taxable year that begins before January section, regardless of whether the owner section 199A and therefore may not be 1, 2018, and ends after December 31, is passive or participated in the taken into account for purposes of 2017, such items are treated as having specified service activity. applying any provision of law or been incurred by the individual during (3) Trade or business of performing regulation other than section 199A and the individual’s taxable year in which or services as an employee. The trade or the regulations thereunder, except to the with which such RPE taxable year ends. business of performing services as an extent such provision expressly refers to ■ Par. 7. Section 1.199A–5 is added to employee is not a trade or business for section 199A(d) or this section. read as follows: purposes of section 199A and the (B) Hedging transactions. Income, regulations thereunder. Therefore, no deduction, gain or loss from a hedging § 1.199A–5 Specified service trades or items of income, gain, deduction, or loss transaction (as defined in § 1.1221–2(b)) businesses and the trade or business of entered into by an individual or RPE in performing services as an employee. from the trade or business of performing services as an employee constitute QBI the normal course of the individual’s or (a) Scope and effect—(1) Scope. This within the meaning of section 199A and RPE’s trade or business is treated as section provides guidance on specified § 1.199A–3. No taxpayer may claim a income, deduction, gain, or loss from service trades or businesses (SSTBs) and section 199A deduction for wage that trade or business for purposes of the trade or business of performing income, regardless of the amount of this paragraph (b)(2). See also § 1.446– services as an employee. This paragraph taxable income. 4. (a) describes the effect of a trade or (b) Definition of specified service (ii) Meaning of services performed in business being an SSTB and the trade or trade or business. Except as provided in the field of health. For purposes of business of performing services as an paragraph (c)(1) of this section, the term section 199A(d)(2) and paragraph employee. Paragraph (b) of this section specified service trade or business (b)(1)(i) of this section only, the provides definitional guidance on (SSTB) means any of the following: performance of services in the field of SSTBs. Paragraph (c) of this section (1) Listed SSTBs. Any trade or health means the provision of medical provides special rules related to SSTBs. business involving the performance of services by individuals such as Paragraph (d) of this section provides services in one or more of the following physicians, pharmacists, nurses, guidance on the trade or business of fields: dentists, veterinarians, physical performing services as an employee. (i) Health as described in paragraph therapists, psychologists, and other The provisions of this section apply (b)(2)(ii) of this section; similar healthcare professionals solely for purposes of section 199A of (ii) Law as described in paragraph performing services in their capacity as the Internal Revenue Code (Code). (b)(2)(iii) of this section; such. The performance of services in the (2) Effect of being an SSTB. If a trade (iii) Accounting as described in field of health does not include the or business is an SSTB, no qualified paragraph (b)(2)(iv) of this section; provision of services not directly related business income (QBI), W–2 wages, or (iv) Actuarial science as described in to a medical services field, even though unadjusted basis immediately after paragraph (b)(2)(v) of this section; the services provided may purportedly acquisition (UBIA) of qualified property (v) Performing arts as described in relate to the health of the service from the SSTB may be taken into paragraph (b)(2)(vi) of this section; recipient. For example, the performance account by any individual whose (vi) Consulting as described in of services in the field of health does not taxable income exceeds the phase-in paragraph (b)(2)(vii) of this section; include the operation of health clubs or range as defined in § 1.199A–1(b)(4), (vii) Athletics as described in health spas that provide physical even if the item is derived from an paragraph (b)(2)(viii) of this section; exercise or conditioning to their activity that is not itself a specified (viii) Financial services as described customers, payment processing, or the service activity. The SSTB limitation in paragraph (b)(2)(ix) of this section; research, testing, and manufacture also applies to income earned from a (ix) Brokerage services as described in and/or sales of pharmaceuticals or publicly traded partnership (PTP). If a paragraph (b)(2)(x) of this section; medical devices. trade or business conducted by a (x) Investing and investment (iii) Meaning of services performed in relevant passthrough entity (RPE) or management as described in paragraph the field of law. For purposes of section PTP is an SSTB, this limitation applies (b)(2)(xi) of this section; 199A(d)(2) and paragraph (b)(1)(ii) of to any direct or indirect individual (xi) Trading as described in paragraph this section only, the performance of owners of the business, regardless of (b)(2)(xii) of this section; services in the field of law means the whether the owner is passive or (xii) Dealing in securities (as defined performance of legal services by participated in any specified service in section 475(c)(2)), partnership individuals such as lawyers, paralegals, activity. However, the SSTB limitation interests, or commodities (as defined in legal arbitrators, mediators, and similar does not apply to individuals with section 475(e)(2)) as described in professionals performing services in taxable income below the threshold paragraph (b)(2)(xiii) of this section; or their capacity as such. The performance amount as defined in § 1.199A–1(b)(12). (xiii) Any trade or business where the of services in the field of law does not A phase-in rule, provided in § 1.199A– principal asset of such trade or business include the provision of services that do 1(d)(2), applies to individuals with is the reputation or skill of one or more not require skills unique to the field of taxable income within the phase-in of its employees or owners as defined in law; for example, the provision of range, allowing them to take into paragraph (b)(2)(xiv) of this section. services in the field of law does not account a certain ‘‘applicable (2) Additional rules for applying include the provision of services by percentage’’ of QBI, W–2 wages, and section 199A(d)(2) and paragraph (b) of printers, delivery services, or UBIA of qualified property from an this section—(i) In general—(A) No stenography services.
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(iv) Meaning of services performed in services) or the provision of training and planners, retirement advisors, and other the field of accounting. For purposes of educational courses. For purposes of the similar professionals performing section 199A(d)(2) and paragraph preceding sentence, the determination services in their capacity as such. Solely (b)(1)(iii) of this section only, the of whether a person’s services are sales for purposes of section 199A, the performance of services in the field of or economically similar services will be performance of services in the field of accounting means the provision of based on all the facts and circumstances financial services does not include services by individuals such as of that person’s business. Such facts and taking deposits or making loans, but accountants, enrolled agents, return circumstances include, for example, the does include arranging lending preparers, financial auditors, and manner in which the taxpayer is transactions between a lender and similar professionals performing compensated for the services provided. borrower. services in their capacity as such. Performance of services in the field of (x) Meaning of services performed in (v) Meaning of services performed in consulting does not include the the field of brokerage services. For the field of actuarial science. For performance of consulting services purposes of section 199A(d)(2) and purposes of section 199A(d)(2) and embedded in, or ancillary to, the sale of paragraph (b)(1)(ix) of this section only, paragraph (b)(1)(iv) of this section only, goods or performance of services on the performance of services in the field the performance of services in the field behalf of a trade or business that is of brokerage services includes services of actuarial science means the provision otherwise not an SSTB (such as typical in which a person arranges transactions of services by individuals such as services provided by a building between a buyer and a seller with actuaries and similar professionals contractor) if there is no separate respect to securities (as defined in performing services in their capacity as payment for the consulting services. section 475(c)(2)) for a commission or such. Services within the fields of architecture fee. This includes services provided by (vi) Meaning of services performed in and engineering are not treated as stock brokers and other similar the field of performing arts. For consulting services. professionals, but does not include purposes of section 199A(d)(2) and (viii) Meaning of services performed services provided by real estate agents paragraph (b)(1)(v) of this section only, in the field of athletics. For purposes of and brokers, or insurance agents and the performance of services in the field section 199A(d)(2) and paragraph brokers. of the performing arts means the (b)(1)(vii) of this section only, the (xi) Meaning of the provision of performance of services by individuals performance of services in the field of services in investing and investment who participate in the creation of athletics means the performance of management. For purposes of section performing arts, such as actors, singers, services by individuals who participate 199A(d)(2) and paragraph (b)(1)(x) of musicians, entertainers, directors, and in athletic competition such as athletes, this section only, the performance of similar professionals performing coaches, and team managers in sports services that consist of investing and services in their capacity as such. The such as baseball, basketball, football, investment management refers to a trade performance of services in the field of soccer, hockey, martial arts, boxing, or business involving the receipt of fees performing arts does not include the bowling, tennis, golf, skiing, for providing investing, asset provision of services that do not require snowboarding, track and field, billiards, management, or investment skills unique to the creation of and racing. The performance of services management services, including performing arts, such as the in the field of athletics does not include providing advice with respect to buying maintenance and operation of the provision of services that do not and selling investments. The equipment or facilities for use in the require skills unique to athletic performance of services of investing and performing arts. Similarly, the competition, such as the maintenance investment management does not performance of services in the field of and operation of equipment or facilities include directly managing real property. the performing arts does not include the for use in athletic events. Similarly, the (xii) Meaning of the provision of provision of services by persons who performance of services in the field of services in trading. For purposes of broadcast or otherwise disseminate athletics does not include the provision section 199A(d)(2) and paragraph video or audio of performing arts to the of services by persons who broadcast or (b)(1)(xi) of this section only, the public. otherwise disseminate video or audio of performance of services that consist of (vii) Meaning of services performed in athletic events to the public. trading means a trade or business of the field of consulting. For purposes of (ix) Meaning of services performed in trading in securities (as defined in section 199A(d)(2) and paragraph the field of financial services. For section 475(c)(2)), commodities (as (b)(1)(vi) of this section only, the purposes of section 199A(d)(2) and defined in section 475(e)(2)), or performance of services in the field of paragraph (b)(1)(viii) of this section partnership interests. Whether a person consulting means the provision of only, the performance of services in the is a trader in securities, commodities, or professional advice and counsel to field of financial services means the partnership interests is determined by clients to assist the client in achieving provision of financial services to clients taking into account all relevant facts and goals and solving problems. Consulting including managing wealth, advising circumstances, including the source and includes providing advice and counsel clients with respect to finances, type of profit that is associated with regarding advocacy with the intention of developing retirement plans, developing engaging in the activity regardless of influencing decisions made by a wealth transition plans, the provision of whether that person trades for the government or governmental agency and advisory and other similar services person’s own account, for the account of all attempts to influence legislators and regarding valuations, mergers, others, or any combination thereof. other government officials on behalf of acquisitions, dispositions, restructurings (xiii) Meaning of the provision of a client by lobbyists and other similar (including in title 11 of the Code or services in dealing—(A) Dealing in professionals performing services in similar cases), and raising financial securities. For purposes of section their capacity as such. The performance capital by underwriting, or acting as a 199A(d)(2) and paragraph (b)(1)(xii) of of services in the field of consulting client’s agent in the issuance of this section only, the performance of does not include the performance of securities and similar services. This services that consist of dealing in services other than advice and counsel, includes services provided by financial securities (as defined in section such as sales (or economically similar advisors, investment bankers, wealth 475(c)(2)) means regularly purchasing
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securities from and selling securities to an agent or independent contractor, as (xiv) Meaning of trade or business customers in the ordinary course of a inventory or similar property. The term where the principal asset of such trade trade or business or regularly offering to inventory or similar property means or business is the reputation or skill of enter into, assume, offset, assign, or property that is stock in trade of the one or more employees or owners. For otherwise terminate positions in trade or business or other property of a purposes of section 199A(d)(2) and securities with customers in the kind that would properly be included in paragraph (b)(1)(xiii) of this section ordinary course of a trade or business. the inventory of the trade or business if only, the term any trade or business Solely for purposes of the preceding on hand at the close of the taxable year, where the principal asset of such trade sentence, the performance of services to or property held by the trade or business or business is the reputation or skill of originate a loan is not treated as the primarily for sale to customers in the one or more of its employees or owners purchase of a security from the borrower ordinary course of its trade or business. means any trade or business that in determining whether the lender is (4) Directly incurs substantial consists of any of the following (or any dealing in securities. expenses in the ordinary course. The combination thereof): (B) Dealing in commodities. For commodities trade or business incurs (A) A trade or business in which a purposes of section 199A(d)(2) and substantial expenses in the ordinary person receives fees, compensation, or paragraph (b)(1)(xii) of this section only, course of the commodities trade or other income for endorsing products or the performance of services that consist business from engaging in one or more services; of dealing in commodities (as defined in of the following activities directly, and (B) A trade or business in which a section 475(e)(2)) means regularly not through an agent or independent person licenses or receives fees, purchasing commodities from and contractor— compensation, or other income for the selling commodities to customers in the (i) Substantial activities in the use of an individual’s image, likeness, ordinary course of a trade or business or production of the commodities, name, signature, voice, trademark, or regularly offering to enter into, assume, including planting, tending or any other symbols associated with the offset, assign, or otherwise terminate harvesting crops, raising or slaughtering individual’s identity; or positions in commodities with livestock, or extracting minerals; (C) Receiving fees, compensation, or customers in the ordinary course of a (ii) Substantial processing activities other income for appearing at an event trade or business. Solely for purposes of prior to the sale of the commodities, or on radio, television, or another media the preceding sentence, gains and losses including the blending and drying of format. from qualified active sales as defined in agricultural commodities, or the (D) For purposes of paragraphs paragraph (b)(2)(xiii)(B)(1) of this concentrating, refining, mixing, (b)(2)(xiv)(A) through (C) of this section, section are not taken into account in crushing, aerating or milling of the term fees, compensation, or other determining whether a person is commodities; or income includes the receipt of a engaged in the trade or business of (iii) Significant activities as described partnership interest and the dealing in commodities. in paragraph (b)(2)(xiii)(B)(5) of this corresponding distributive share of (1) Qualified active sale. The term section. income, deduction, gain, or loss from qualified active sale means the sale of (5) Significant activities for purposes the partnership, or the receipt of stock commodities in the active conduct of a of paragraph (b)(2)(xiii)(B)(4)(iii) of this of an S corporation and the commodities business as a producer, section. The commodities trade or corresponding income, deduction, gain, processor, merchant, or handler of business performs significant activities or loss from the S corporation stock. commodities if the trade or business is with respect to the commodities that (3) Examples. The following examples as an active producer, processor, consists of— illustrate the rules in paragraphs (a) and merchant or handler of commodities. A (i) The physical movement, handling (b) of this section. The examples do not hedging transaction described in and storage of the commodities, paragraph (b)(2)(i)(B) of this section is including preparation of contracts and address all types of services that may or treated as a qualified active sale. The invoices, arranging transportation, may not qualify as specified services. sale of commodities held by a trade or insurance and credit, arranging for Unless otherwise provided, the business other than in its capacity as an receipt, transfer or negotiation of individual in each example has taxable active producer, processor, merchant, or shipping documents, arranging storage income in excess of the threshold handler of commodities is not a or warehousing, and dealing with amount. qualified active sale. For example, the quality claims; (i) Example 1. B is a board-certified sale by a trade or business of (ii) Owning and operating facilities for pharmacist who contracts as an independent commodities that were held for storage or warehousing; or contractor with X, a small medical facility in investment or speculation would not be (iii) Owning, chartering, or leasing a rural area. X employs one full time a qualified active sale. vessels or vehicles for the transportation pharmacist, but contracts with B when X’s of the commodities. needs exceed the capacity of its full-time (2) Active conduct of a commodities staff. When engaged by X, B is responsible for business. For purposes of paragraph (C) Dealing in partnership interests. receiving and reviewing orders from (b)(2)(xiii)(B)(1) of this section, a trade For purposes of section 199A(d)(2) and physicians providing medical care at the or business is engaged in the active paragraph (b)(1)(xii) of this section only, facility; making recommendations on dosing conduct of a commodities business as a the performance of services that consist and alternatives to the ordering physician; producer, processor, merchant, or of dealing in partnership interests performing inoculations, checking for drug handler of commodities only with means regularly purchasing partnership interactions, and filling pharmaceutical respect to commodities for which each interests from and selling partnership orders for patients receiving care at X. B is of the conditions described in interests to customers in the ordinary engaged in the performance of services in the course of a trade or business or regularly field of health within the meaning of section paragraphs (b)(2)(xiii)(B)(3) through (5) 199A(d)(2) and paragraphs (b)(1)(i) and of this section are satisfied. offering to enter into, assume, offset, (b)(2)(ii) of this section. (3) Directly holds commodities as assign, or otherwise terminate positions (ii) Example 2. X is the operator of a inventory or similar property. The in partnership interests with customers residential facility that provides a variety of commodities trade or business holds the in the ordinary course of a trade or services to senior citizens who reside on commodities directly, and not through business. campus. For residents, X offers standard
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domestic services including housing as to the healthcare provider’s diagnosis or compensation and fees are not affected by management and maintenance, meals, treatment. Z is not providing services in the whether D’s clients used temporary workers. laundry, entertainment, and other similar field of health within the meaning of section D is engaged in the performance of services services. In addition, X contracts with local 199A(d)(2) and paragraphs (b)(1)(i) and in an SSTB in the field of consulting within professional healthcare organizations to offer (b)(2)(ii) of this section or where the the meaning of section 199A(d)(2) or residents a range of medical and health principal asset of the trade or business is the paragraphs (b)(1)(vi) and (b)(2)(vii) of this services provided at the facility, including reputation or skill of one or more of its section. skilled nursing care, physical and employees within the meaning of paragraphs (ix) Example 9. E is an individual who occupational therapy, speech-language (b)(1)(xiii) and (b)(2)(xiv) of this section. owns and operates a temporary worker pathology services, medical social services, (v) Example 5. A, a singer and songwriter, staffing firm primarily focused on the medications, medical supplies and writes and records a song. A is paid a software consulting industry. Business equipment used in the facility, ambulance mechanical royalty when the song is licensed clients hire E to provide temporary workers transportation to the nearest supplier of or streamed. A is also paid a performance that have the necessary technical skills and needed services, and dietary counseling. X royalty when the recorded song is played experience with a variety of business receives all of its income from residents for publicly. A is engaged in the performance of software to provide consulting and advice the costs associated with residing at the services in an SSTB in the field of performing regarding the proper selection and operation facility. Any health and medical services are arts within the meaning of section 199A(d)(2) of software most appropriate for the business billed directly by the healthcare providers to or paragraphs (b)(1)(v) and (b)(2)(vi) of this they are advising. E does not have a technical the senior citizens for those professional section. The royalties that A receives for the software engineering background and does healthcare services even though those song are not eligible for a deduction under not provide software consulting advice services are provided at the facility. X does section 199A. herself. E reviews resumes and refers not perform services in the field of health (vi) Example 6. B is a partner in Movie candidates to the client when the client within the meaning of section 199A(d)(2) and LLC, a partnership. Movie LLC is a film indicates a need for temporary workers. E paragraphs (b)(1)(i) and (b)(2)(ii) of this production company. Movie LLC plans and does not evaluate her clients’ needs about section. coordinates film production. Movie LLC whether the client needs workers and does (iii) Example 3. Y operates specialty shares in the profits of the films that it not evaluate the clients’ consulting contracts surgical centers that provide outpatient produces. Therefore, Movie LLC is engaged to determine the type of expertise needed. medical procedures that do not require the in the performance of services in an SSTB in Rather, the client provides E with a job patient to remain overnight for recovery or the field of performing arts within the description indicating the required skills for observation following the procedure. Y is a meaning of section 199A(d)(2) or paragraphs the upcoming consulting project. E is paid a private organization that owns a number of (b)(1)(v) and (b)(2)(vi) of this section. B is a fixed fee for each temporary worker actually facilities throughout the country. For each passive owner in Movie LLC and does not hired by the client and receives a bonus if facility, Y ensures compliance with state and provide any services with respect to Movie that worker is hired permanently within a Federal laws for medical facilities and LLC. However, because Movie LLC is year of referral. E’s fee is not contingent on manages the facility’s operations and engaged in an SSTB in the field of the profits of its clients. E is not considered performs all administrative functions. Y does performing arts, B’s distributive share of the to be engaged in the performance of services not employ physicians, nurses, and medical income, gain, deduction, and loss with in the field of consulting within the meaning assistants, but enters into agreements with respect to Movie LLC is not eligible for a of section 199A(d)(2) or (b)(1)(vi) and other professional medical organizations or deduction under section 199A. (b)(2)(vii) of this section. directly with the medical professionals to (vii) Example 7. C is a partner in (x) Example 10. F is in the business of perform the procedures and provide all Partnership, which solely owns and operates licensing software to customers. F discusses medical care. Patients are billed by Y for the a professional sports team. Partnership and evaluates the customer’s software needs facility costs relating to their procedure and employs athletes and sells tickets and with the customer. The taxpayer advises the by the healthcare professional or their broadcast rights for games in which the customer on the particular software products affiliated organization for the actual costs of sports team competes. Partnership sells the it licenses. F is paid a flat price for the the procedure conducted by the physician broadcast rights to Broadcast LLC, a separate software license. After the customer licenses and medical support team. Y does not trade or business. Broadcast LLC solely the software, F helps to implement the perform services in the field of health within broadcasts the games. Partnership is engaged software. F is engaged in the trade or the meaning of section 199A(d)(2) and in the performance of services in an SSTB in business of licensing software and not paragraphs (b)(1)(i) and (b)(2)(ii) of this the field of athletics within the meaning of engaged in an SSTB in the field of consulting section. section 199A(d)(2) or paragraphs (b)(1)(vii) within the meaning of section 199A(d)(2) or (iv) Example 4. Z is the developer and the and (b)(2)(viii) of this section. The tickets paragraphs (b)(1)(vi) and (b)(2)(vii) of this only provider of a patented test used to sales and the sale of the broadcast rights are section. detect a particular medical condition. Z both the performance of services in the field (xi) Example 11. G is in the business of accepts test orders only from health care of athletics. C is a passive owner in providing services to assist clients with their professionals (Z’s clients), does not have Partnership and C does not provide any finances. G will study a particular client’s contact with patients, and Z’s employees do services with respect to Partnership or the financial situation, including, the client’s not diagnose, treat, or manage any aspect of sports team. However, because Partnership is present income, savings, and investments, patient care. A, who manages Z’s testing engaged in an SSTB in the field of athletics, and anticipated future economic and operations, is the only employee with an C’s distributive share of the income, gain, financial needs. Based on this study, G will advanced medical degree. All other deduction, and loss with respect to then assist the client in making decisions and employees are technical support staff and not Partnership is not eligible for a deduction plans regarding the client’s financial healthcare professionals. Z’s workers are under section 199A. Broadcast LLC is not activities. Such financial planning includes highly educated, but the skills the workers engaged in the performance of services in an the design of a personal budget to assist the bring to the job are not often useful for Z’s SSTB in the field of athletics. client in monitoring the client’s financial testing methods. In order to perform the (viii) Example 8. D is in the business of situation, the adoption of investment duties required by Z, employees receive more providing services that assist unrelated strategies tailored to the client’s needs, and than a year of specialized training for entities in making their personnel structures other similar services. G is engaged in the working with Z’s test, which is of no use to more efficient. D studies its client’s performance of services in an SSTB in the other employers. Upon completion of an organization and structure and compares it to field of financial services within the meaning ordered test, Z analyses the results and peers in its industry. D then makes of section 199A(d)(2) or paragraphs provides its clients a report summarizing the recommendations and provides advice to its (b)(1)(viii) and (b)(2)(ix) of this section. findings. Z does not discuss the report’s client regarding possible changes in the (xii) Example 12. H is in the business of results, or the patient’s diagnosis or treatment client’s personnel structure, including the franchising a brand of personal financial with any health care provider or the patient. use of temporary workers. D does not provide planning offices, which generally provide Z is not informed by the healthcare provider any temporary workers to its clients and D’s personal wealth management, retirement
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planning, and other financial advice services corresponding distributive share with respect has separate employees who are unaffiliated to customers for a fee. H does not provide to the partnership interest for M’s likeness with the veterinary clinic and who only work financial planning services itself. H licenses and the use of her name is an SSTB within on the formulation, marketing, sales, and the right to use the business tradename, other the meaning of section 199A(d)(2) or distribution of the organic dog food products. branding intellectual property, and a paragraphs (b)(1)(xiii) and (b)(2)(xiv) of this Animal Care LLC treats its veterinary practice marketing plan to third-party financial section. and the dog food development and sales as planner franchisees that operate the separate trades or businesses for purposes of franchised locations and provide all services (c) Special rules—(1) De minimis section 162 and 199A. Animal Care LLC has to customers. In exchange, the franchisees rule—(i) Gross receipts of $25 million or gross receipts of $3,000,000. $1,000,000 of compensate H based on a fee structure, less. For a trade or business with gross the gross receipts is attributable to the which includes a one-time fee to acquire the receipts of $25 million or less for the veterinary services, an SSTB. Although the franchise. H is not engaged in the taxable year, a trade or business is not gross receipts from the services in the field performance of services in the field of an SSTB if less than 10 percent of the of health exceed 10 percent of Animal Care financial services within the meaning of LLC’s total gross receipts, the dog food gross receipts of the trade or business development and sales business is not section 199A(d)(2) or paragraphs (b)(1)(viii) are attributable to the performance of and (b)(2)(ix) of this section. considered an SSTB due to the fact that the (xiii) Example 13. J is in the business of services in a field described in veterinary practice and the dog food executing transactions for customers paragraph (b) of this section. For development and sales are separate trades or involving various types of securities or purposes of determining whether this 10 businesses under section 162. commodities generally traded through percent test is satisfied, the performance (2) Services or property provided to an organized exchanges or other similar of any activity incident to the actual SSTB—(i) In general. If a trade or networks. Customers place orders with J to performance of services in the field is business provides property or services trade securities or commodities based on the considered the performance of services to an SSTB within the meaning of this taxpayer’s recommendations. J’s in that field. compensation for its services typically is section and there is 50 percent or more based on completion of the trade orders. J is (ii) Gross receipts of greater than $25 common ownership of the trades or engaged in an SSTB in the field of brokerage million. For a trade or business with businesses, that portion of the trade or services within the meaning of section gross receipts of greater than $25 business of providing property or 199A(d)(2) or paragraphs (b)(1)(ix) and million for the taxable year, the rules of services to the 50 percent or more (b)(2)(x) of this section. paragraph (c)(1)(i) of this section are commonly-owned SSTB will be treated (xiv) Example 14. K owns 100% of Corp, applied by substituting ‘‘5 percent’’ for as a separate SSTB with respect to the an S corporation, which operates a bicycle ‘‘10 percent’’ each place it appears. related parties. sales and repair business. Corp has 8 (iii) Examples. The following (ii) 50 percent or more common employees, including K. Half of Corp’s net examples illustrate the provisions of ownership. For purposes of paragraph income is generated from sales of new and used bicycles and related goods, such as paragraph (c)(1) of this section. (c)(2)(i) and (ii) of this section, 50 helmets, and bicycle-related equipment. The (A) Example 1. Landscape LLC sells lawn percent or more common ownership other half of Corp’s net income is generated care and landscaping equipment and also includes direct or indirect ownership by from bicycle repair services performed by K provides advice and counsel on landscape related parties within the meaning of and Corp’s other employees. Corp’s assets design for large office parks and residential sections 267(b) or 707(b). consist of inventory, fixtures, bicycle repair buildings. The landscape design services (iii) Examples. The following equipment, and a leasehold on its retail include advice on the selection and examples illustrate the provisions of location. Several of the employees and G placement of trees, shrubs, and flowers and paragraph (c)(2) of this section. have worked in the bicycle business for many are considered to be the performance of years, and have acquired substantial skill and services in the field of consulting under (A) Example 1. Law Firm is a partnership reputation in the field. Customers often paragraphs (b)(1)(vi) and (b)(2)(vii) of this that provides legal services to clients, owns consult with the employees on the best section. Landscape LLC separately invoices its own office building and employs its own bicycle for purchase. K is in the business of for its landscape design services and does not administrative staff. Law Firm divides into sales and repairs of bicycles and is not sell the trees, shrubs, or flowers it three partnerships. Partnership 1 performs engaged in an SSTB within the meaning of recommends for use in the landscape design. legal services to clients. Partnership 2 owns section 199A(d)(2) or paragraphs (b)(1)(xiii) Landscape LLC maintains one set of books the office building and rents the entire building to Partnership 1. Partnership 3 and (b)(2)(xiv) of this section. and records and treats the equipment sales employs the administrative staff and through (xv) Example 15. L is a well-known chef and design services as a single trade or a contract with Partnership 1 provides and the sole owner of multiple restaurants business for purposes of sections 162 and administrative services to Partnership 1 in each of which is owned in a disregarded 199A. Landscape LLC has gross receipts of $2 exchange for fees. All three of the entity. Due to L’s skill and reputation as a million. $250,000 of the gross receipts is partnerships are owned by the same people chef, L receives an endorsement fee of attributable to the landscape design services, (the original owners of Law Firm). Because $500,000 for the use of L’s name on a line an SSTB. Because the gross receipts from the Partnership 2 provides all of its property to of cooking utensils and cookware. L is in the consulting services exceed 10 percent of Partnership 1, and Partnership 3 provides all trade or business of being a chef and owning Landscape LLC’s total gross receipts, the of its services to Partnership 1, Partnerships restaurants and such trade or business is not entirety of Landscape LLC’s trade or business 2 and 3 will each be treated as an SSTB an SSTB. However, L is also in the trade or is considered an SSTB. under paragraph (c)(2) of this section. business of receiving endorsement income. (B) Example 2. Animal Care LLC provides (B) Example 2. Assume the same facts as L’s trade or business consisting of the receipt veterinarian services performed by licensed in Example 1 of this paragraph (c)(2), except of the endorsement fee for L’s skill and/or staff and also develops and sells its own line that Partnership 2, which owns the office reputation is an SSTB within the meaning of of organic dog food at its veterinarian clinic building, rents 50 percent of the building to section 199A(d)(2) or paragraphs (b)(1)(xiii) and online. The veterinarian services are Partnership 1, which provides legal services, and (b)(2)(xiv) of this section. considered to be the performance of services and the other 50 percent to various unrelated (xvi) Example 16. M is a well-known actor. in the field of health under paragraphs third party tenants. Because Partnership 2 is M entered into a partnership with Shoe (b)(1)(i) and (b)(2)(ii) of this section. Animal owned by the same people as Partnership 1, Company, in which M contributed her Care LLC separately invoices for its the portion of Partnership 2’s leasing activity likeness and the use of her name to the veterinarian services and the sale of its related to the lease of the building to partnership in exchange for a 50% interest in organic dog food. Animal Care LLC maintains Partnership 1 will be treated as a separate the partnership and a guaranteed payment. separate books and records for its SSTB. The remaining 50 percent of M’s trade or business consisting of the receipt veterinarian clinic and its development and Partnership 2’s leasing activity will not be of the partnership interest and the sale of its dog food. Animal Care LLC also treated as an SSTB.
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(d) Trade or business of performing rebuts the presumption in paragraph example would not change if, instead of services as an employee—(1) In general. (d)(3)(i) of this section by providing contracting with Law Firm 1, Law Firm 2 was The trade or business of performing records, such as contracts or partnership instead admitted as a partner in Law Firm 1. services as an employee is not a trade agreements, that provide sufficient (C) Example 3. E is an engineer employed as a senior project engineer in an engineering or business for purposes of section 199A evidence to corroborate the individual’s firm, Engineering Firm. Engineering Firm is and the regulations thereunder. status as a non-employee. a partnership for Federal tax purposes and Therefore, no items of income, gain, (iii) Examples. The following structured such that after 10 years, senior deduction, and loss from the trade or examples illustrate the provision of project engineers are considered for partner business of performing services as an paragraph (d)(3) of this section. Unless if certain career milestones are met. After 10 employee constitute QBI within the otherwise provided, the individual in years, E meets those career milestones and is meaning of section 199A and § 1.199A– each example has taxable income in admitted as a partner in Engineering Firm. As 3. Except as provided in paragraph excess of the threshold amount. a partner in Engineering Firm, E shares in the (d)(3) of this section, income from the net profits of Engineering Firm, and also (A) Example 1. A is employed by PRS, a otherwise satisfies the requirements under trade or business of performing services partnership for Federal tax purposes, as a Federal tax law, regulations, and principles as an employee refers to all wages fulltime employee and is treated as such for (including common-law employee (within the meaning of section 3401(a)) Federal employment tax purposes. A quits classification rules) to be respected as a and other income earned in a capacity his job for PRS and enters into a contract partner. E is presumed (solely for purposes as an employee, including payments with PRS under which A provides of section 199A(d)(1)(B) and paragraphs (a)(3) described in § 1.6041–2(a)(1) (other than substantially the same services that A and (d) of this section) to be in the trade or payments to individuals described in previously provided to PRS in A’s capacity business of performing services as an section 3121(d)(3)) and § 1.6041–2(b)(1). as an employee. Because A was treated as an employee with respect to the services E (2) Employer’s Federal employment employee for services he provided to PRS, provides to Engineering Firm. However, E is tax classification of employee and now is no longer treated as an employee able to rebut the presumption by showing with regard to such services, A is presumed that E became a partner in Engineering Firm immaterial. For purposes of determining (solely for purposes of section 199A(d)(1)(B) as a career milestone, shares in the overall whether wages are earned in a capacity and paragraphs (a)(3) and (d) of this section) net profits in Engineering Firm, and as an employee as provided in to be in the trade or business of performing otherwise satisfies the requirements under paragraph (d)(1) of this section, the services as an employee with regard to his Federal tax law, regulations, and principles treatment of an employee by an services performed for PRS. Unless the (including common-law employee employer as anything other than an presumption is rebutted with a showing that, classification rules) to be respected as a employee for Federal employment tax under Federal tax law, regulations, and partner. purposes is immaterial. Thus, if a principles (including the common-law (D) Example 4. F is a financial advisor worker should be properly classified as employee classification rules), A is not an employed by a financial advisory firm, an employee, it is of no consequence employee, any amounts paid by PRS to A Advisory Firm, a partnership for Federal tax with respect to such services will not be QBI purposes, as a fulltime employee and is that the employee is treated as a non- for purposes of section 199A. The treated as such for Federal employment tax employee by the employer for Federal presumption would apply even if, instead of purposes. F has taxable income below the employment tax purposes. contracting directly with PRS, A formed a threshold amount. Advisory Firm is a (3) Presumption that former disregarded entity, or a passthrough entity, partnership and offers F the opportunity to employees are still employees—(i) and the entity entered into the contract with be admitted as a partner. F elects to be Presumption. Solely for purposes of PRS. admitted as a partner to Advisory Firm and section 199A(d)(1)(B) and paragraph (B) Example 2. C is an attorney employed is admitted as a partner to Advisory Firm. As (d)(1) of this section, an individual that as an associate in a law firm (Law Firm 1) a partner in Advisory Firm, F shares in the was properly treated as an employee for and was treated as such for Federal net profits of Advisory Firm, is obligated to Federal employment tax purposes by employment tax purposes. C and the other Advisory Firm in ways that F was not previously obligated as an employee, is no the person to which he or she provided associates in Law Firm 1 have taxable income below the threshold amount. Law Firm 1 longer entitled to certain benefits available services and who is subsequently terminates its employment relationship with only to employees of Advisory Firm, and has treated as other than an employee by C and its other associates. C and the other materially modified his relationship with such person with regard to the provision former associates form a new partnership, Advisory Firm. F’s share of net profits is not of substantially the same services Law Firm 2, which contracts to perform legal subject to a floor or capped at a dollar directly or indirectly to the person (or services for Law Firm 1. Therefore, in form, amount. F is presumed (solely for purposes a related person), is presumed, for three C is now a partner in Law Firm 2 which of section 199A(d)(1)(B) and paragraphs (a)(3) years after ceasing to be treated as an earns income from providing legal services to and (d) of this section) to be in the trade or employee for Federal employment tax Law Firm 1. C continues to provide business of performing services as an purposes, to be in the trade or business substantially the same legal services to Law employee with respect to the services F provides to Advisory Firm. However, F is of performing services as an employee Firm 1 and its clients. Because C was previously treated as an employee for able to rebut the presumption by showing with regard to such services. As services she provided to Law Firm 1, and that F became a partner in Advisory Firm by provided in paragraph (d)(3)(ii) of this now is no longer treated as an employee with sharing in the profits of Advisory Firm, section, this presumption may be regard to such services, C is presumed (solely materially modifying F’s relationship with rebutted upon a showing by the for purposes of section 199A(d)(1)(B) and Advisory Firm, and otherwise satisfying the individual that, under Federal tax law, paragraphs (a)(3) and (d) of this section) to requirements under Federal tax law, regulations, and principles (including be in the trade or business of performing regulations, and principles (including common-law employee classification services as an employee with respect to the common-law employee classification rules) rules), the individual is performing services C provides to Law Firm 1 indirectly to be respected as a partner. services in a capacity other than as an through Law Firm 2. Unless the presumption (e) Applicability date—(1) General is rebutted with a showing that, under employee. This presumption applies Federal tax law, regulations, and principles rule. Except as provided in paragraph regardless of whether the individual (including common-law employee (e)(2) of this section, the provisions of provides services directly or indirectly classification rules), C’s distributive share of this section apply to taxable years through an entity or entities. Law Firm 2 income (including any ending after February 8, 2019. (ii) Rebuttal of presumption. Upon guaranteed payments) will not be QBI for (2) Exceptions–(i) Anti-abuse rules. notice from the IRS, an individual purposes of section 199A. The results in this The provisions of paragraphs (c)(2) and
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(d)(3) of this section apply to taxable (iii) Third, the RPE must apply the paragraph (c)(1) of this section on years ending after December 22, 2017. rules in § 1.199A–2 to determine the W– Schedules K–1 issued to its partners. (ii) Non-calendar year RPE. For 2 wages and UBIA of qualified property Each PTP must also determine and purposes of determining QBI, W–2 for each trade or business engaged in report any qualified REIT dividends or wages, UBIA of qualified property, and directly. qualified PTP income or loss received the aggregate amount of qualified REIT (iv) Fourth, the RPE must determine by the PTP including through an RPE, dividends and qualified PTP income, if whether it has any qualified REIT a REIT, or another PTP. A PTP is not an individual receives any of these dividends as defined in § 1.199A–3(c)(1) required to determine or report W–2 items from an RPE with a taxable year earned directly or through another RPE. wages or the UBIA of qualified property that begins before January 1, 2018, and The RPE must also determine the attributable to trades or businesses it is ends after December 31, 2017, such amount of qualified PTP income as engaged in directly. items are treated as having been defined in § 1.199A–3(c)(2) earned (d) Application to trusts, estates, and incurred by the individual during the directly or indirectly through beneficiaries—(1) In general. A trust or individual’s taxable year in which or investments in PTPs. estate computes its section 199A with which such RPE taxable year ends. (3) Reporting rules for RPEs—(i) Trade deduction based on the QBI, W–2 or business directly engaged in. An RPE ■ wages, UBIA of qualified property, Par. 8. Section 1.199A–6 is added to must separately identify and report on read as follows: qualified REIT dividends, and qualified the Schedule K–1 issued to its owners PTP income that are allocated to the § 1.199A–6 Relevant passthrough entities for any trade or business (including an trust or estate. An individual beneficiary (RPEs), publicly traded partnerships (PTPs), aggregated trade or business) engaged in of a trust or estate takes into account trusts, and estates. directly by the RPE— any QBI, W–2 wages, UBIA of qualified (A) Each owner’s allocable share of (a) Overview. This section provides property, qualified REIT dividends, and QBI, W–2 wages, and UBIA of qualified special rules for RPEs, PTPs, trusts, and qualified PTP income allocated from a property attributable to each such trade estates necessary for the computation of trust or estate in calculating the or business; and the section 199A deduction of their beneficiary’s section 199A deduction, in (B) Whether any of the trades or owners or beneficiaries. Paragraph (b) of the same manner as though the items businesses described in paragraph this section provides computational and had been allocated from an RPE. For (b)(3)(i) of this section is an SSTB. reporting rules for RPEs necessary for (ii) Other items. An RPE must also purposes of this section and §§ 1.199A– individuals who own interests in RPEs report on an attachment to the Schedule 1 through 1.199A–5, a trust or estate is to calculate their section 199A K–1, any QBI, W–2 wages, UBIA of treated as an RPE to the extent it deduction. Paragraph (c) of this section qualified property, or SSTB allocates QBI and other items to its provides computational and reporting determinations, reported to it by any beneficiaries, and is treated as an rules for PTPs necessary for individuals RPE in which the RPE owns a direct or individual to the extent it retains the who own interests in PTPs to calculate indirect interest. The RPE must also QBI and other items. their section 199A deduction. Paragraph report each owner’s allocated share of (2) Grantor trusts. To the extent that (d) of this section provides any qualified REIT dividends received the grantor or another person is treated computational and reporting rules for by the RPE (including through another as owning all or part of a trust under trusts (other than grantor trusts) and RPE) as well as any qualified PTP sections 671 through 679, such person estates necessary for their beneficiaries income or loss received by the RPE for computes its section 199A deduction as to calculate their section 199A each PTP in which the RPE holds an if that person directly conducted the deduction. interest (including through another activities of the trust with respect to the (b) Computational and reporting rules RPE). Such information can be reported portion of the trust treated as owned by for RPEs—(1) In general. An RPE must on an amended or late filed return to the the grantor or other person. determine and report information extent that the period of limitations (3) Non-grantor trusts and estates—(i) attributable to any trades or businesses remains open. Calculation at entity level. A trust or it is engaged in necessary for its owners (iii) Failure to report information. If estate must calculate its QBI, W–2 to determine their section 199A an RPE fails to separately identify or wages, UBIA of qualified property, deduction. report on the Schedule K–1 (or any qualified REIT dividends, and qualified (2) Computational rules. Using the attachments thereto) issued to an owner PTP income. The QBI of a trust or estate following four rules, an RPE must an item described in paragraph (b)(3)(i) must be computed by allocating determine the items necessary for of this section, the owner’s share (and qualified items of deduction described individuals who own interests in the the share of any upper-tier indirect in section 199A(c)(3) in accordance with RPE to calculate their section 199A owner) of each unreported item of the classification of those deductions deduction under § 1.199A–1(c) or (d). positive QBI, W–2 wages, or UBIA of under § 1.652(b)–3(a), and deductions An RPE that chooses to aggregate trades qualified property attributable to trades not directly attributable within the or businesses under the rules of or businesses engaged in by that RPE meaning of § 1.652(b)–3(b) (other § 1.199A–4 may determine these items will be presumed to be zero. deductions) are allocated in a manner for the aggregated trade or business. (c) Computational and reporting rules consistent with the rules in § 1.652(b)– (i) First, the RPE must determine if it for PTPs—(1) Computational rules. Each 3(b). Any depletion and depreciation is engaged in one or more trades or PTP must determine its QBI under the deductions described in section 642(e) businesses. The RPE must also rules of § 1.199A–3 for each trade or and any amortization deductions determine whether any of its trades or business in which the PTP is engaged in described in section 642(f) that businesses is an SSTB under the rules directly. The PTP must also determine otherwise are properly included in the of § 1.199A–5. whether any of the trades or businesses computation of QBI are included in the (ii) Second, the RPE must apply the it is engaged in directly is an SSTB. computation of QBI of the trust or rules in § 1.199A–3 to determine the (2) Reporting rules. Each PTP is estate, regardless of how those QBI for each trade or business engaged required to separately identify and deductions may otherwise be allocated in directly. report the information described in between the trust or estate and its
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beneficiaries for other purposes of the a principal purpose of avoiding, or of business income of $155,000 ($55,000 from Code. using more than one, threshold amount PRS and $100,000 from the bakery) and (ii) Allocation among trust or estate for purposes of calculating the direct business expenses of $200,000 and beneficiaries. The QBI (including deduction under section 199A will not ($45,000 from PRS and $155,000 from the any amounts that may be less than zero bakery). In addition, $1,000 of the trustee be respected as a separate trust entity for commissions and $1,000 of state and local as calculated at the trust or estate level), purposes of determining the threshold taxes are directly attributable under W–2 wages, UBIA of qualified property, amount for purposes of section 199A. § 1.652(b)–3(a) to Trust’s business income. qualified REIT dividends, and qualified See also § 1.643(f)–1 of the regulations. Accordingly, Trust has excess business PTP income of a trust or estate are (viii) Example. The following deductions of $47,000. Pursuant to its allocated to each beneficiary and to the example illustrates the application of authority recognized under § 1.652(b)–3(d), trust or estate based on the relative paragraph (d) of this section. Trust allocates the $47,000 excess business proportion of the trust’s or estate’s deductions as follows: $15,000 to the interest (A) Example—(1) Computation of DNI and income, resulting in $0 interest income, distributable net income (DNI), as inclusion and deduction amounts—(i) Trust’s defined by section 643(a), for the taxable $25,000 to the dividends, resulting in $0 distributive share of partnership items. Trust, dividend income, and $7,000 to the tax year that is distributed or required to be an irrevocable testamentary complex trust, is exempt interest. distributed to the beneficiary or is a 25% partner in PRS, a family partnership (iv) Allocation of deductions under retained by the trust or estate. For this that operates a restaurant that generates QBI § 1.652(b)–3 (Non-directly attributable purpose, the trust’s or estate’s DNI is and W–2 wages. A and B, Trust’s expenses). The trustee must allocate the sum determined with regard to the separate beneficiaries, own the remaining 75% of PRS of the balance of the trustee commissions share rule of section 663(c), but without directly. In 2018, PRS properly allocates ($2,000) and state and local taxes ($4,000) to gross income from the restaurant of $55,000, regard to section 199A. If the trust or Trust’s remaining tax-exempt interest and expenses directly allocable to the income, resulting in $2,000 of tax exempt estate has no DNI for the taxable year, restaurant of $45,000 (including W–2 wages any QBI, W–2 wages, UBIA of qualified interest. of $25,000, and miscellaneous expenses of (v) Amounts included in taxable income. property, qualified REIT dividends, and $20,000) to Trust. These items are properly For 2018, Trust has DNI of $2,000. Pursuant qualified PTP income are allocated included in Trust’s DNI. PRS distributes to Trust’s governing instrument, Trustee entirely to the trust or estate. $10,000 of cash to Trust in 2018. distributes 50%, or $1,000, of that DNI to A, (iii) [Reserved] (ii) Trust’s activities. In addition to its an individual who is a discretionary (iv) Threshold amount. The threshold interest in PRS, Trust also operates a family beneficiary of Trust. In addition, Trustee is amount applicable to a trust or estate is bakery conducted through an LLC wholly- required to distribute 25%, or $500, of that $157,500 for any taxable year beginning owned by the Trust that is treated as a DNI to B, a current income beneficiary of disregarded entity. In 2018, the bakery Trust. Trust retains the remaining 25% of before 2019. For taxable years beginning produces $100,000 of gross income and DNI. Consequently, with respect to the after 2018, the threshold amount shall $155,000 of expenses directly allocable to $1,000 distribution A receives from Trust, A be $157,500 increased by the cost-of- operation of the bakery (including W–2 properly excludes $1,000 of tax-exempt living adjustment as outlined in wages of $50,000, rental expense of $75,000, interest income under section 662(b). With § 1.199A–1(b)(12). For purposes of miscellaneous expenses of $25,000, and respect to the $500 distribution B receives depreciation deductions of $5,000). (The net determining whether a trust or estate from Trust, B properly excludes $500 of tax loss from the bakery operations is not subject has taxable income in excess of the exempt interest income under section 662(b). to any loss disallowance provisions outside threshold amount, the taxable income of Because the DNI consists entirely of tax- of section 199A.) Trust maintains a reserve of the trust or estate is determined after exempt income, Trust deducts $0 under $5,000 for depreciation. Trust also has taking into account any distribution $125,000 of UBIA of qualified property in the section 661 with respect to the distributions deduction under sections 651 or 661. bakery. For purposes of computing its section to A and B. (v) [Reserved] 199A deduction, Trust and its beneficiaries (2) Section 199A deduction—(i) Trust’s W– (vi) Electing small business trusts. An have properly chosen to aggregate the family 2 wages and QBI. For the 2018 taxable year, electing small business trust (ESBT) is restaurant conducted through PRS with the prior to allocating the beneficiaries’ shares of entitled to the deduction under section bakery conducted directly by Trust under the section 199A items, Trust has $75,000 ($25,000 from PRS + $50,000 of Trust) of W– 199A. Any section 199A deduction § 1.199A–4. Trust also owns various investment assets that produce portfolio-type 2 wages. Trust also has $125,000 of UBIA of attributable to the assets in the S portion qualified property. Trust has negative QBI of of the ESBT is to be taken into account income consisting of dividends ($25,000), interest ($15,000), and tax-exempt interest ($47,000) ($155,000 gross income from by the S portion. The S portion of the ($15,000). Accordingly, Trust has the aggregated businesses less the sum of ESBT must take into account the QBI following items which are properly included $200,000 direct expenses from aggregated and other items from any S corporation in Trust’s DNI: businesses and $2,000 directly attributable owned by the ESBT, the grantor portion business expenses from Trust under the rules of § 1.652(b)–3(a)). of the ESBT must take into account the TABLE 1 TO PARAGRAPH QBI and other items from any assets (ii) A’s Section 199A deduction (d)(3)(viii)(A)(1)(ii) computation. Because the $1,000 Trust treated as owned by a grantor or another distribution to A equals one-half of Trust’s person (owned portion) of a trust under Interest Income ...... 15,000 DNI, A has W–2 wages from Trust of $37,500. sections 671 through 679, and the non- Dividends ...... 25,000 A also has W–2 wages of $2,500 from a trade S portion of the ESBT must take into Tax-exempt interest ...... 15,000 or business outside of Trust (computed account any QBI and other items from Net business loss from PRS without regard to A’s interest in Trust), any other entities or assets owned by the and bakery ...... (45,000) which A has properly aggregated under ESBT. For purposes of determining Trustee commissions ...... 3,000 § 1.199A–4 with the Trust’s trade or whether the taxable income of an ESBT State and local taxes ...... 5,000 businesses (the family’s restaurant and exceeds the threshold amount, the S bakery), for a total of $40,000 of W–2 wages (iii) Allocation of deductions under from the aggregate trade or businesses. A also portion and the non-S portion of an § 1.652(b)–3 (Directly attributable expenses). has $62,500 of UBIA from Trust and $25,000 ESBT are treated as a single trust. See In computing Trust’s DNI for the taxable of UBIA of qualified property from the trade § 1.641(c)–1. year, the distributive share of expenses of or business outside of Trust for $87,500 of (vii) Anti-abuse rule for creation of a PRS are directly attributable under total UBIA of qualified property. A has trust to avoid exceeding the threshold § 1.652(b)–3(a) to the distributive share of $100,000 of QBI from the non-Trust trade or amount. A trust formed or funded with income of PRS. Accordingly, Trust has gross businesses in which A owns an interest.
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Because the $1,000 Trust distribution to A is not subject to the W–2 wage limitation. ■ Par. 9. Section 1.643(f)–1 is added to equals one-half of Trust’s DNI, A has Because Trust retained 25% of Trust’s DNI, read as follows: (negative) QBI from Trust of ($23,500). A’s Trust is allocated 25% of its QBI, which is total QBI is determined by combining the ($11,750). Trust’s section 199A deduction for § 1.643(f)–1 Treatment of multiple trusts. $100,000 QBI from non-Trust sources with 2018 is zero. The ($11,750) of QBI is carried (a) General rule. For purposes of the ($23,500) QBI from Trust for a total of over to 2019 as a loss from a qualified subchapter J of chapter 1 of subtitle A $76,500 of QBI. Assume that A’s taxable business in the hands of Trust pursuant to income is $357,500, which exceeds A’s section 199A(c)(2). of Title 26 of the United States Code, applicable threshold amount for 2018 by two or more trusts will be aggregated $200,000. A’s tentative deductible amount is (B) [Reserved] and treated as a single trust if such $15,300 (20% × $76,500 of QBI), limited to trusts have substantially the same (e) Applicability date—(1) General the greater of (i) $20,000 (50% × $40,000 of grantor or grantors and substantially the rule. Except as provided in paragraph W–2 wages), or (ii) $12,187.50 ($10,000, 25% same primary beneficiary or × (e)(2) of this section, the provisions of $40,000 of W–2 wages, plus $2,187.50, beneficiaries, and if a principal purpose 2.5% × $87,500 of UBIA of qualified this section apply to taxable years for establishing one or more of such property). A’s section 199A deduction is ending after February 8, 2019. equal to the lesser of $15,300, or $71,500 trusts or for contributing additional cash (20% × $357,500 of taxable income). (2) Exceptions—(i) Anti-abuse rules. or other property to such trusts is the Accordingly, A’s section 199A deduction for The provisions of paragraph (d)(3)(vii) avoidance of Federal income tax. For 2018 is $15,300. of this section apply to taxable years purposes of applying this rule, spouses (iii) B’s Section 199A deduction ending after December 22, 2017. will be treated as one person. computation. For 2018, B’s taxable income is (ii) Non-calendar year RPE. For (b) Applicability date. The provisions below the threshold amount so B is not subject to the W–2 wage limitation. Because purposes of determining QBI, W–2 of this section apply to taxable years the $500 Trust distribution to B equals one- wages, UBIA of qualified property, and ending after August 16, 2018. quarter of Trust’s DNI, B has a total of the aggregate amount of qualified REIT Kirsten Wielobob, ($11,750) of QBI. B also has no QBI from non- dividends and qualified PTP income, if Trust trades or businesses, so B has a total Deputy Commissioner for Services and an individual receives any of these Enforcement. of ($11,750) of QBI. Accordingly, B’s section items from an RPE with a taxable year 199A deduction for 2018 is zero. The that begins before January 1, 2018, and Approved: December 20, 2018. ($11,750) of QBI is carried over to 2019 as a ends after December 31, 2017, such David J. Kautter, loss from a qualified business in the hands Assistant Secretary of the Treasury (Tax of B pursuant to section 199A(c)(2). items are treated as having been Policy). (iv) Trust’s Section 199A deduction incurred by the individual during the computation. For 2018, Trust’s taxable individual’s taxable year in which or [FR Doc. 2019–01025 Filed 2–4–19; 4:15 pm] income is below the threshold amount so it with which such RPE taxable year ends. BILLING CODE 4830–01–P
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DEPARTMENT OF THE TREASURY 5279; concerning submissions of income of the taxpayer for the taxable comments or requests for a public year over the net capital gain of the Internal Revenue Service hearing, Regina Johnson at (202) 317– taxpayer for the taxable year. 6901 (not toll-free numbers). Additionally, section 199A(g) 26 CFR Part 1 SUPPLEMENTARY INFORMATION: provides that specified agricultural or horticultural cooperatives may claim a [REG–134652–18] Background special entity-level deduction that is RIN 1545–BP12 This document contains proposed substantially similar to the domestic amendments to the Income Tax production activities deduction under Qualified Business Income Deduction Regulations (26 CFR part 1) under former section 199. section 199A of the Code. The statute expressly grants the AGENCY: Internal Revenue Service (IRS), Section 199A was enacted on Secretary authority to prescribe such Treasury. December 22, 2017, by section 11011 of regulations as are necessary to carry out ACTION: Notice of proposed rulemaking. ‘‘An Act to provide for reconciliation the purposes of section 199A (section pursuant to titles II and V of the 199A(f)(4)), and also provides specific SUMMARY: This document contains concurrent resolution on the budget for grants of authority with respect to proposed regulations concerning the fiscal year 2018,’’ Public Law 115–97 certain issues: The treatment of deduction for qualified business income (TCJA), and was amended on March 23, acquisitions, dispositions, and short-tax under section 199A of the Internal 2018, retroactively to January 1, 2018, years (section 199A(b)(5)); certain Revenue Code (Code). The proposed by section 101 of Division T of the payments to partners for services regulations will affect certain Consolidated Appropriations Act, 2018, rendered in a non-partner capacity individuals, partnerships, S Public Law 115–141, (2018 Act). Section (section 199A(c)(4)(C)); the allocation of corporations, trusts, and estates. The 199A applies to taxable years beginning W–2 wages and UBIA of qualified proposed regulations provide guidance after 2017 and before 2026. property (section 199A(f)(1)(A)(iii)); on the treatment of previously Section 199A provides a deduction of restricting the allocation of items and suspended losses that constitute up to 20 percent of qualified business wages under section 199A and such qualified business income. The income from a U.S. trade or business reporting requirements as the Secretary proposed regulations also provide operated as a sole proprietorship or determines appropriate (section guidance on the determination of the through a partnership, S corporation, 199A(f)(4)(A)); the application of section section 199A deduction for taxpayers trust, or estate (section 199A deduction). 199A in the case of tiered entities that hold interests in regulated The section 199A deduction may be (section 199A(f)(4)(B); preventing the investment companies, charitable taken by individuals and by some manipulation of the depreciable period remainder trusts, and split-interest estates and trusts. A section 199A of qualified property using transactions trusts. deduction is not available for wage between related parties (section DATES: Written or electronic comments income or for income earned by a C 199A(h)(1)); and determining the UBIA and requests for a public hearing must corporation. For taxpayers whose of qualified property acquired in like- be received by April 9, 2019. taxable income exceeds a statutorily- kind exchanges or involuntary defined amount (threshold amount), conversions (section 199A(h)(2)). ADDRESSES: Submit electronic section 199A may limit the taxpayer’s The Treasury Department and the submissions to the Federal eRulemaking section 199A deduction based on (i) the Internal Revenue Service published Portal at www.regulations.gov (indicate type of trade or business engaged in by proposed regulations interpreting IRS and REG–134652–18) by following the taxpayer, (ii) the amount of W–2 section 199A on August 16, 2018 (the the online instructions for submitting wages paid with respect to the trade or August Proposed Regulations) (83 FR comments. Once submitted to the business (W–2 wages), and/or (iii) the 40884). The August Proposed Federal eRulemaking Portal, comments unadjusted basis immediately after Regulations contain six substantive cannot be edited or withdrawn. The acquisition (UBIA) of qualified property sections, §§ 1.199A–1 through 1.199A– Department of the Treasury (Treasury held for use in the trade or business 6, each of which provides rules relevant Department) and the IRS will publish (UBIA of qualified property). These to the calculation of the section 199A for public availability any comment statutory limitations are subject to deduction. The August Proposed received to its public docket, whether phase-in rules based upon taxable Regulations, with modifications in submitted electronically or in hard income above the threshold amount. response to comments and testimony copy. Send hard copy submissions to Section 199A also allows individuals received, were adopted as final CC:PA:LPD:PR (REG–134652–18), Room and some trusts and estates (but not regulations in TD 9847, issued 5203, Internal Revenue Service, P.O. corporations) a deduction of up to 20 concurrently with this notice of Box 7604, Ben Franklin Station, percent of their combined qualified real proposed rulemaking and published Washington, DC 20044. Submissions estate investment trust (REIT) dividends elsewhere in this issue of the Federal may be hand-delivered Monday through and qualified publicly traded Register. Friday between the hours of 8 a.m. and partnership (PTP) income, including 4 p.m. to CC:PA:LPD:PR (REG–134652– qualified REIT dividends and qualified Explanation of Provisions 18), Courier’s Desk, Internal Revenue PTP income earned through These proposed regulations propose Service, 1111 Constitution Avenue NW, passthrough entities. This component of rules addressing issues not addressed in Washington, DC 20224. the section 199A deduction is not the August Proposed Regulations that FOR FURTHER INFORMATION CONTACT: limited by W–2 wages or UBIA of are necessary to provide taxpayers with Concerning § 1.199A–3(d), Michael Y. qualified property. computational, definitional, and anti- Chin or Steven Harrison at (202) 317– The section 199A deduction is the avoidance guidance regarding the 6842; concerning §§ 1.199A–3(b) and lesser of (1) the sum of the combined application of section 199A. 1.199A–6, Vishal R. Amin or Frank J. amounts described in the prior two Specifically, these proposed regulations Fisher at (202) 317–6850 or Robert D. paragraphs or (2) an amount equal to 20 contain amendments to two substantive Alinsky or Margaret Burow at 202–317– percent of the excess (if any) of taxable sections of the August Proposed
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Regulations, §§ 1.199A–3 and 1.199A–6, determination of QBI, qualified REIT year generally may pay capital gain each of which provides rules relevant to dividends, and qualified PTP income. dividends, and shareholders receiving the calculation of the section 199A For simplicity, the regulations use the the capital gain dividends treat them as deduction. These additional proposed term individual when referring to an gain from the sale or exchange of a rules respond to comments received on individual, trust, estate, or other person capital asset held for more than one the August Proposed Regulations as eligible to claim the section 199A year. Section 852(b)(3) provides well as address certain issues identified deduction. See § 1.199A–1(a)(2). The necessary limits and procedures that after additional study. This Explanation term relevant passthrough entity (RPE) apply to capital gain dividends. There of Provisions describes each of the is used to describe passthrough entities are similar statutory provisions for proposed rules contained in this that directly operate the trade or exempt-interest dividends under section document in turn. The Treasury business or pass through the trade or 852(b)(5), interest-related dividends Department and the IRS request business’ items of income, gain, loss, or under section 871(k)(1), short-term comments on all aspects of these deduction from lower-tier RPEs to the capital gain dividends under section proposed regulations. individual. See § 1.199A–1(b)(10). 871(k)(2), dividends eligible for the A number of commenters on the dividends received deduction under I. Treatment of Previously Suspended August Proposed Regulations requested section 854(b)(1)(A), and qualified Losses That Constitute QBI guidance that would allow a dividend income under section Section 1.199A–3(b)(1)(iv) of the final shareholder in a regulated investment 854(b)(1)(B). Rules for paying dividends regulations provides that previously company within the meaning of section corresponding to different types of long- disallowed losses or deductions 851(a) (RIC) to take a section 199A term capital gain have been provided in (including under sections 465, 469, deduction with respect to certain guidance under regulatory authority 704(d), and 1366(d)) allowed in the income of, or distributions from, the granted in section 1(h). See Notice taxable year are generally taken into RIC. Because a RIC is a subchapter C 2015–41, 2015–24 I.R.B. 1058, account for purposes of computing QBI corporation, a shareholder in a RIC modifying Notice 2004–39, 2004–1 C.B. except to the extent the losses or generally does not take into account a 982 and Notice 97–64, 1997–2 C.B. 323. deductions were disallowed, share of the RIC’s items of income, Investing in RICs enables small suspended, limited, or carried over from deduction, gain, or loss. Part 1 of investors to gain benefits, such as taxable years ending before January 1, subchapter M, however, has features professional management and broad 2018. The final regulations also provide that allow the tax consequences of diversification, that otherwise would be a first-in-first-out ordering rule. One investing in a RIC to approximate those available only to investors with more commenter on the August Proposed of a direct investment in the assets of resources. The House Report for the Regulations suggested that a special rule the RIC. The principal feature is the enactment of the Internal Revenue Code should be provided to identify the allowance of the deduction for of 1954 explained that the RIC regime section 469 trade or business losses that dividends paid under section ‘‘permits investors to pool their funds are used to offset income if the 852(b)(2)(D). If a corporation qualifies as through the use of a corporation in order taxpayer’s section 469 groupings differ a RIC under section 851 and meets the to obtain skilled, diversified investment from the taxpayer’s section 199A distribution requirements and other in corporate securities without having to aggregations. The commenter requirements in section 852(a), the RIC’s pay an additional layer of corporate recommended that any section 469 loss income tax is computed on its tax.’’ H.R. Rep. No. 83–1337, p. 73 carryforward that is later used should be investment company taxable income (1954). The ability to elect to be taxed allocated across the taxpayer’s section (ICTI), which is its taxable income with as a RIC is available typically only to 199A aggregations based on income certain adjustments, including the domestic corporations that, at all times with respect to such aggregations in the allowance of the deduction for during the taxable year, are registered year the loss was generated. dividends paid. See section 852(b)(2). under the Investment Company Act of The Treasury Department and the IRS ICTI also excludes the amount of the 1940, as amended (15 U.S.C. 80a–1 to believe that that previously disallowed RIC’s net capital gain, but tax is 80b–2). See section 851(a)(1)(A). losses should be treated as losses from separately imposed on that amount to Section 199A(f)(4) directs the a separate trade or business for both the the extent it exceeds the deduction for Secretary to prescribe such regulations as are necessary to carry out the reasons stated by the commenter and dividends paid, taking into account only purposes of section 199A, including because the losses may relate to a trade capital gain dividends. See section regulations for its application in the or business that is no longer in 852(b)(3)(A). The deduction for case of tiered entities. The Treasury existence. Accordingly, these proposed dividends paid allows RICs to eliminate Department and the IRS have regulations amend § 1.199A–3(b)(1)(iv) all or most of their corporate income tax determined that it is consistent with the to provide that such losses are treated as liability. If a RIC has certain items of income grant of authority under section 199A loss from a separate trade or business. or gain, subchapter M also provides and the purposes of part 1 of subchapter To the extent that losses relate to a PTP, rules under which a RIC may pay M of chapter 1 of the Code to provide they must be treated as losses from a dividends that a shareholder in the RIC for conduit treatment of qualified REIT separate PTP. Section 1.199A– may treat in the same manner (or a dividends. The Treasury Department 3(b)(1)(iv)(B) provides that attributes of similar manner) as the shareholder and the IRS continue to consider the disallowed loss are determined in would treat the underlying item of whether it is appropriate to provide for the year the loss is incurred. income or gain if the shareholder conduit treatment of qualified PTP II. Regulated Investment Companies realized it directly. Although this income. With Interests in REITs and PTPs treatment differs fundamentally from These proposed regulations provide the pass-through treatment of partners rules under which a RIC that receives A. REITs or trust beneficiaries, this preamble qualified REIT dividends may pay Section 1.199A–3 restates the refers to is as ‘‘conduit treatment.’’ For section 199A dividends. Non-corporate definitions in section 199A(c) and example, under section 852(b)(3), a RIC shareholders receiving section 199A provides additional guidance on the that has net capital gain for a taxable dividends would treat them as qualified
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REIT dividends under section a PTP may be qualified PTP income for carry forward PTP losses, it would 199A(e)(3), provided the shareholder taxpayers with taxable income below appear that RICs would need to track meets the holding period requirements the threshold amount, but not for separate loss carryforwards for SSTB for its shares in the RIC. taxpayers with taxable income above the PTP losses and non-SSTB PTP losses. The rules under which a RIC would top of the phase-out range. For While netting qualified non-SSTB losses compute and report section 199A taxpayers with taxable income in the from PTPs against larger amounts of dividends are based on the rules for phase-out range, a portion of PTP qualified REIT dividends would support capital gain dividends in section income attributable to an SSTB is RIC dividends that could be treated as 852(b)(3) and exempt-interest dividends qualified PTP income. There is no eligible for the section 199A deduction in section 852(b)(5). The amount of a precedent for providing conduit by the RICs’ shareholders regardless of RIC’s section 199A dividends for a treatment for a RIC (or any other C income level, SSTB losses from PTPs taxable year would be limited to the corporation) with respect to income of would complicate the offset of qualified excess of the RIC’s qualified REIT a PTP or other partnership taxed in this PTP losses against qualified REIT dividends for the taxable year over manner, and the complexity and dividends by RICs because SSTB losses allocable expenses. Section 199A potential confusion such treatment from a PTP do not offset qualified REIT dividends generally are also subject to might create for RIC investors is dividends for taxpayers with taxable the principles that apply to other RIC arguably inconsistent with the relative income above the phase-out range. Such dividends. See, e.g., Rev. Rul. 2005–31, simplicity that the tax system has losses do, however, offset qualified REIT 2005–1 C.B. 1084; Rev. Rul. 89–81, historically provided for RIC investors. dividends for taxpayers with income 1989–1 C.B. 226. This is particularly true given the below the threshold amount. For B. PTPs limitation on the portion of a RIC’s taxpayers with income in the phase-out assets that can be invested in qualified range, these losses partially offset One of the commenters PTPs as defined in section 851(h) (the qualified REIT dividends to a greater or recommending that the regulations type of PTP likely to be engaged in a lesser extent depending on where the permit conduit treatment for qualified trade or business) and the limited taxpayer’s income falls in the phase-out REIT dividends received by a RIC also portion of the RIC’s dividends that range. It is not clear how a conduit recommended that the regulations would likely be attributable to income regime for qualified PTP income could permit conduit treatment for qualified from such PTPs. work in terms of treating RIC PTP income received by a RIC. In Another novel issue is presented by shareholders in the phase-out range in response to this comment, the Treasury the rules relating to the treatment of a manner that is consistent with the Department and the IRS have given losses for purposes of section 199A. treatment they would receive if they significant consideration to including in First, a PTP may not net losses from an received the qualified REIT dividend this notice of proposed rulemaking SSTB against income from a non-SSTB, regulations that would provide conduit and the qualified PTP loss from an and vice versa, in determining the SSTB directly rather than through a RIC. treatment for qualified PTP income. amounts that it reports to its partners. However, unlike conduit treatment for Thus, PTPs are required to separately Providing conduit treatment for qualified REIT dividends received by a calculate income and deductions from qualified PTP income would also raise RIC, conduit treatment of qualified PTP SSTBs and non-SSTBs and report that potentially significant issues with income received by a RIC presents information to their partners. Second, if respect to the treatment of RIC several novel issues. The commenter a taxpayer has a net loss from an SSTB shareholders that are non-U.S. persons, recommending this conduit treatment or a non-SSTB that is allowed in tax-exempt organizations, and trusts did not address these issues or make determining taxable income for a underlying individual retirement any suggestions as to how they should taxable year, that loss may be required accounts (IRAs) and qualified retirement be resolved. The need to resolve these to be carried over to the subsequent year plans. In order to be qualified PTP issues in a way that would afford RIC for section 199A attribute purposes. In income, section 199A(c)(3)(A)(i) shareholders treatment that is similar to the case of a RIC, it is not clear to what requires that the income must be the treatment they would receive if they extent these requirements can be effectively connected with a U.S. trade held the PTP interests directly while implemented by permitting RIC or business. If conduit treatment is preserving the relative simplicity of the dividends to reflect attributes of the afforded to RIC dividends attributable to tax treatment of RIC investors has RIC’s investment experiences in PTPs. such PTP income for section 199A prevented the Treasury Department and For example, it is difficult to conceive purposes, it is not clear that a RIC the IRS from crafting and including how losses of a RIC can be passed dividend attributable to such income appropriate rules in these proposed through to shareholders upon the could be disregarded for purposes of regulations. As noted later in this part payment of a dividend, which would be calculating effectively connected of the Explanation of Provisions, the inconsistent with the status of a RIC as income of a non-U.S. shareholder or Treasury Department and the IRS a C corporation. See section 311(a). In unrelated business taxable income of a continue to consider permitting conduit addition, RICs and RIC shareholders tax-exempt organization or trust treatment for qualified PTP income would experience complexity underlying an IRA or qualified received by a RIC to further the inconsistent with the longstanding tax retirement plan. Given that such purposes of section 199A(b)(1)(B) and policy of providing simplified reporting investors typically do not hold directly seek public comment to assist in for RIC investors. interests in PTPs intentionally, but do resolving these novel issues with a view Consistent with RICs’ status as C so through corporate ‘‘blockers,’’ to developing regulations permitting corporations, RICs could instead offset allowing conduit treatment for qualified conduit treatment for qualified PTP losses from PTPs against qualified REIT PTP income through RICs could cause income. dividends received, with any excess unwelcome results for non-U.S. These issues arise in part from the fact PTP losses carried forward as negative shareholders, tax-exempt organizations, that income attributable to a specified qualified PTP income for section 199A and trusts underlying IRAs and service trade or business within the attribute purposes at the RIC level. To qualified retirement plans holding RIC meaning of section 199A(d)(2) (SSTB) of the extent RICs would be required to stock.
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The Treasury Department and the IRS including the W–2 wages relevant to the identified and reported in the various continue to evaluate whether it is computation of the wage limitation, and classes of income of the trusts received appropriate to provide conduit relevant UBIA of depreciable property by such recipients and how the excise treatment for qualified PTP income must be allocated among the trust or tax rules in section 664(c) would apply through RICs, and request detailed estate and its various beneficiaries. to such amounts. comments on these novel issues. In Specifically, § 1.199A–6(d)(3)(ii) A. Charitable Remainder Trust particular, comments are requested provides that each beneficiary’s share of Beneficiary’s Eligibility for the concerning: (1) Whether RICs have the trust’s or estate’s QBI and W–2 Deduction sufficient qualified items of PTP wages is determined based on the income, gain, deduction, or loss to proportion of the trust’s or estate’s DNI A few commenters suggested that a warrant a conduit regime that would that is deemed to be distributed to that charitable remainder trust under section permit RICs to pay qualified PTP beneficiary for that taxable year. 664 should be allowed to calculate the dividends to shareholders; (2) How to Similarly, the proportion of the entity’s deduction at the trust level and that the provide conduit treatment for qualified DNI that is not deemed distributed by charitable remainder trust should be PTP income for taxpayers with income the trust or estate will determine the treated as a single taxpayer for purposes below the threshold amount or within entity’s share of the QBI and W–2 of the thresholds for taxable income, W– the phase-out range, particularly where wages. In addition, if the trust or estate 2 wages, and UBIA of qualified a RIC has qualified REIT dividends and has no DNI in a particular taxable year, property. a qualified PTP loss from an SSTB; (3) any QBI and W–2 wages are allocated to Several commenters recommended How to treat losses of PTPs arising from the trust or estate, and not to any that, if unrelated business taxable SSTBs and non-SSTBs; (4) Whether beneficiary. income (UBTI) is qualified business conduit treatment for qualified PTP In addition, § 1.199A–6(d)(3)(ii) income, the section 199A deduction income can be disregarded for purposes provides that, to the extent the trust’s or should be allowed before the UBTI of determining the effectively connected estate’s UBIA of qualified property is excise tax is imposed. However, other income or unrelated business taxable relevant to a trust or estate and any commenters disagreed. Another income of certain RIC shareholders; (5) beneficiary, the trust’s or estate’s UBIA commenter stated that the section 199A Whether SSTB items are sufficiently of qualified property will be allocated deduction should not be allowed when rare or incidental for PTPs that a among the trust or estate and its calculating UBTI because it is not a conduit regime for PTP dividends beneficiaries in the same proportions as deduction directly connected with should exclude all SSTB items; and (6) is the DNI of the trust or estate. This is carrying on the trade or business and is How to implement conduit treatment for the case regardless of how any allowable only for purposes of chapter qualified PTP income in a way that is depreciation or depletion deductions 1, while the excise tax on UBTI is consistent with the policy goal of resulting from the same property may be imposed under chapter 42 (that is, it is preserving the overall relative simplicity allocated under section 643(c) among not an income tax). Another commenter of the tax treatment of investors in RICs the trust or estate and its beneficiaries said the UBTI excise tax under section while still achieving the policy goals of for purposes other than section 199A. 664(c) should not affect QBI because section 199A and section 199A(b)(1)(B) Under § 1.199A–6(d)(3)(iv), the that tax is charged to principal. in particular. threshold amount is determined at the One commenter recommended that trust level after taking into account any QBI should be allocated to the ordinary III. Special Rules for Trusts and Estates distribution deductions. Commenters income tier. Another recommended that Section 1.199A–6 provides guidance have noted that taxpayers could QBI should be the bottom of the first tier that certain specified entities (for circumvent the threshold amount by (last to be distributed) and section 199A example, trusts and estates) may need to dividing assets among multiple trusts, items should be reported on the follow to enable the computation of the each of which would claim its own Schedule K–1 when QBI is deemed section 199A deduction of the entity threshold amount. This result is distributed. Another commenter stated and each of its owners. Section 1.199A– inappropriate and inconsistent with the that a charitable remainder trust has no 6(d) contains special rules for applying purpose of section 199A. Therefore, taxable income and no DNI, so the section 199A to trusts and decedents’ § 1.199A–6(d)(3)(vii) provides that a allocation of QBI, W–2 wages, and UBIA estates. The August Proposed trust formed or funded with a principal of qualified property should be Regulations expressly requested purpose of receiving a deduction under allocated to beneficiaries based on the comments, and comments were section 199A will not be respected for percentage of distributions from the submitted, on whether and how certain purposes of determining the threshold ordinary income tier, with QBI allocated trusts and other entities would be able amount under section 199A. to the charitable remainder trust to take a deduction under section 199A. In the August Proposed Regulations, remaining a tier one item. Another These proposed regulations take those the Treasury Department and the IRS commenter stated that QBI cannot be a suggestions into consideration in requested comments with respect to separate tier because it is a deduction, proposing rules applicable to those whether taxable recipients of annuity rather than a rate difference. particular situations identified by and unitrust interests in charitable The Treasury Department and the IRS commenters. remainder trusts and taxable believe that, because a charitable In the case of a section 199A beneficiaries of other split-interest trusts remainder trust described in section 664 deduction claimed by a non-grantor may be eligible for the section 199A is not subject to income tax, and trust or estate, section 199A(f)(1)(B) deduction to the extent that the amounts because the excise tax imposed by applies rules similar to the rules under received by such recipients include section 664(c) is treated as imposed former section 199(d)(1)(B)(i) for the amounts that may give rise to the under chapter 42, the trust does not apportionment of W–2 wages and the deduction. The request for such either have or calculate a section 199A apportionment of UBIA of qualified comments indicated that such deduction and the threshold amount property. In the case of a non-grantor comments should include explanations described in section 199A(e)(2) does not trust or estate, the QBI and expenses of how amounts that may give rise to the apply to the trust. Furthermore, properly allocable to the business, section 199A deduction would be application of section 199A to
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effectively reduce the 100 percent rate share of the trust’s total QBI (whether or a single trust with respect to the of tax imposed by section 664(c) on any not distributed) for that taxable year. retained DNI. Only trusts with retained UBTI would be inconsistent with the Any QBI, qualified REIT dividends, or DNI will be eligible for the section 199A intent of section 664(c) to deter trusts qualified PTP income of the trust that is deduction, because a trust will be from making investments that generate unrelated business taxable income is allocated QBI, qualified REIT dividends, significant UBTI. However, any taxable subject to excise tax and § 1.664–1(c) and qualified PTP income only in recipient of a unitrust or annuity requires that tax to be allocated to the proportion to the amount of DNI amount from the trust must determine corpus of the trust. Certain other rules retained by the trust for the taxable year. and apply the recipient’s own threshold relating to charitable remainder trusts For this reason, a trust, regardless of the amount for purposes of section 199A, are provided. number of separate shares it has for its taking into account any annuity or B. Split-interest Trusts beneficiaries under the separate share unitrust amounts received from the rule of section 663(c), will be treated as trust. Therefore, a taxable recipient of a The August Proposed Regulations a single trust for purposes of applying unitrust or annuity amount from a requested comments on whether any the threshold amount under section charitable remainder trust may take into special rules were necessary with 199A. To the extent that a taxable account QBI, qualified REIT dividends, respect to split-interest trusts. One beneficiary of a trust receives a and qualified PTP income for purposes commenter suggested that additional distribution of DNI from the of determining the recipient’s section rules may be necessary for split-interest beneficiary’s separate share of the trust 199A deduction for the taxable year to trusts other than charitable reminder which includes section 199A items, the the extent that the unitrust or annuity trusts. After considering the comment beneficiary would apply its own amount distributed to such recipient and studying other split-interest trusts threshold amount to those section 199A in more depth after the publication of consists of such section 199A items items in computing its section 199A the August Proposed Regulations, the under § 1.664–1(d). deduction in accordance with the rules Treasury Department and the IRS have of § 1.199A–6(d). In order to determine the order of determined that special rules for other distribution of the various classes of split-interest trusts, such as non-grantor Availability of IRS Documents income of the trust for purposes of charitable lead trusts or pooled income applying § 1.664–1(d), QBI, qualified IRS notices cited in this preamble are funds, are not necessary because such made available by the Superintendent of REIT dividends, and qualified PTP trusts are taxable under part I, income of a charitable remainder trust Documents, U.S. Government Printing subchapter J, chapter 1 of the Code, Office, Washington, DC 20402. will be allocated to the classes of except subpart E. Such split-interest income within the category of income trusts would apply the rules for non- Proposed Effective/Applicability Date described in § 1.664–1(d)(1)(i)(a)(1) grantor trusts and estates set forth in Section 7805(b)(1)(A) and (B) of the based on the rate of tax that normally § 1.199A–6(d)(3) to determine any would apply to that type of income, not Code generally provide that no applicable section 199A deduction for temporary, proposed, or final regulation taking into account the characterization the trust or its taxable beneficiaries. of that income as QBI, qualified REIT relating to the internal revenue laws dividends, or qualified PTP income for C. Separate Shares may apply to any taxable period ending before the earliest of (A) the date on purposes of section 199A. Accordingly, Although no comments were received which such regulation is filed with the any QBI, qualified REIT dividends, and with respect the application of the Federal Register, or (B) in the case of a qualified PTP income will be treated as threshold amount to separate shares, the final regulation, the date on which a distributed from the trust to a unitrust Treasury Department and the IRS proposed or temporary regulation to or annuity recipient only when all other believe that clarification with respect to which the final regulation relates was classes of income within the ordinary this issue may be necessary. These filed with the Federal Register. income category subject to a higher rate proposed regulations provide that, in The amendments to §§ 1.199A–3 and of tax (not taking into account section the case of a trust described in section 1.199A–6 set forth in this notice of 199A) have been exhausted. The 663(c) with substantially separate and proposed rulemaking generally are unitrust or annuity recipient will be independent shares for multiple proposed to apply to taxable years treated as receiving a proportionate beneficiaries, such separate shares will ending after the date of publication of a amount of any QBI, qualified REIT not be treated as separate trusts for Treasury decision adopting these rules dividends, and qualified PTP income purposes of applying the threshold as final regulations in the Federal that is distributed along with other amount. Instead, the trust will be treated Register. However, taxpayers may rely income in the same class within the as a single trust for purposes of on the rules in the amendments to ordinary income category. To the extent determining whether the taxable income §§ 1.199A–3 and 1.199A–6 set forth in that a trust is treated as distributing QBI, of the trust exceeds the threshold this notice of proposed rulemaking, in qualified REIT dividends, or qualified amount. The purpose of the separate their entirety, until the date a Treasury PTP income to more than one unitrust share rule in section 663(c) is to treat decision adopting these regulations as or annuity recipient in the taxable year, distributions of trust DNI to trust final regulations is published in the the distribution of such income will be beneficiaries as independent taxable Federal Register. treated as made to the recipients events solely for purposes of applying proportionately, based on their sections 661 and 662 with respect to Special Analyses respective shares of the total of QBI, each beneficiary’s separate share. The I. Regulatory Planning and Review— qualified REIT dividends, and qualified rule determines each beneficiary’s share Economic Analysis PTP income distributed for that year. of DNI based on the amount of DNI from The amount of any W–2 wages or UBIA that beneficiary’s separate share, rather Executive Orders 13563 and 12866 of qualified property of the charitable than as a percentage of the trust’s DNI. direct agencies to assess costs and remainder trust in a taxable year will be Nevertheless, under the separate share benefits of available regulatory allocable to unitrust or annuity rule, if a trust retains any portion of alternatives and, if regulation is recipients based on each recipient’s DNI, the trust will be subject to tax as necessary, to select regulatory
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approaches that maximize net benefits the relevant terms and necessary rules under which a RIC that earns (including potential economic, calculations taxpayers are currently qualified REIT dividends may pay environmental, public health and safety required to apply under the statute. section 199A dividends to its effects, distributive impacts, and However, one subject not covered by the shareholders, such that the effective tax equity). Executive Order 13563 August 2018 Proposed Regulations is treatment of qualified REIT dividends is emphasizes the importance of the treatment of REIT dividends similar under the proposed regulations quantifying both costs and benefits, of received by RICs. Because RICs are regardless of whether a taxpayer invests reducing costs, of harmonizing rules, taxed as C corporations, they are in a REIT directly or through a RIC. and of promoting flexibility. ineligible for the section 199A The proposed regulations have been deduction under the statute, which 3. Anticipated Costs of the Proposed designated by the Office of Management generally does not apply to C Amendments to § 1.199A–3 and Budget’s (‘‘OMB’’) Office of corporations. However, the statute also Information and Regulatory Affairs directs the Secretary to prescribe such The Treasury Department and the IRS (‘‘OIRA’’) as subject to review under regulations as are necessary to carry out do not anticipate any meaningful Executive Order 12866 pursuant to the the purposes of section 199A, including economic distortions to be induced by Memorandum of Agreement (April 11, regulations for its application in the the proposed amendments to § 1.199A– 2018) between the Treasury Department case of tiered entities. Thus these 3 because the proposed amendments and OMB regarding review of tax proposed regulations establish rules seek to continue to provide similar tax regulations. It has been determined that under which a RIC that earns qualified treatment to REIT income regardless of the proposed rulemaking is REIT dividends may pay section 199A whether it is held directly or through a economically significant under section dividends to its shareholders. RIC. Prior to TCJA, the tax treatment 1(c) of the Memorandum of Agreement An alternative approach the Treasury was similar, but TCJA made REIT and thereby subject to review. Department and the IRS could have dividends eligible for the section 199A Accordingly, the proposed regulations taken would be to remain silent on this deduction, and the section 199A final have been reviewed by OMB. issue. For reasons given below, the regulations did not address this Treasury Department and the IRS A. Overview uncertainty. This proposed amendment concluded such an approach would ensures that REIT income earned Congress enacted section 199A to likely give rise to less economically through a RIC is also eligible for the provide taxpayers other than efficient decisions than the approach same deduction. RICs are financial corporations a deduction of up to 20 taken in these proposed regulations. percent of QBI from domestic intermediaries, and, as a general rule, businesses plus up to 20 percent of their 2. Anticipated Benefits of the Proposed economic distortion is minimized to the combined qualified REIT dividends and Amendments to § 1.199A–3 extent that the tax consequences of qualified PTP income. As stated in the The Treasury Department and the IRS investment through an intermediary Explanation of Provisions, these expect that the definitions and guidance correspond to the tax consequences of regulations are necessary to provide provided in the proposed amendments direct investment. The Treasury taxpayers with computational, to § 1.199A–3 will implement the Department and the IRS request definitional, and anti-avoidance section 199A deduction in an comments regarding any anticipated guidance regarding the application of economically efficient manner. An economic costs. Changes to the section 199A. These proposed economically efficient tax system collective paperwork burden arising regulations contain amendments to generally aims to treat income derived from this and other sections of these § 1.199A–3, providing further guidance from similar economic decisions regulations are discussed in section D, to taxpayers for purposes of calculating similarly in order to reduce incentives Anticipated impacts on administrative the section 199A deduction. They to make choices based on tax rather than and compliance costs, of this analysis. provide clarity for taxpayers in market incentives. In absence of these determining their eligibility for the proposed regulations, the section 199A D. Anticipated Impacts on deduction and the amount of the statute would not accomplish this in the Administrative and Compliance Costs allowed deduction. Among other case of REIT dividends. Under the The proposed regulations add to the benefits, this clarity helps ensure that statute and the section 199A final compliance costs of RICs and taxpayers all calculate the deduction in regulations, individuals who directly intermediaries such as brokerage firms a similar manner, which encourages hold ownership interests in a REIT decision-making that is economically would generally qualify for the section that hold RIC shares. In order for a RIC’s efficient contingent on the provisions of 199A deduction on their qualified REIT shareholders to benefit from the section the overall Code. dividends. However, individuals who 199A deduction on qualified REIT dividends earned by the RIC, the B. Baseline are shareholders of a RIC that has an ownership interest in a REIT would not proposed regulations require the RIC to The analysis in this section compares receive any benefit from section 199A compute and report section 199A the proposed regulation to a no-action on REIT dividends received by the RIC, dividends to its shareholders. Though baseline reflecting anticipated Federal even if the RIC pays dividends to the many RICs keep detailed records of their income tax-related behavior in the individual. Thus, in the absence of these investment portfolios, this action absence of these regulations. supplemental proposed regulations, a nonetheless creates non-trivial administrative costs for any RICs and C. Economic Analysis of the Proposed market distortion is introduced by Amendments to § 1.199A–3 section 199A whereby direct ownership intermediaries that wish to provide of REITs is tax-advantaged relative to section 199A dividends to their 1. Background indirect ownership of REITs through shareholders. These costs and the Because the section 199A deduction RICs. associated impacted tax forms are has not previously been available, These proposed regulations remove described in the Paperwork Reduction §§ 1.199A–1 through 1.199A–6 provide this distortion. The proposed Act section of this proposed greater specificity for a large number of amendments to § 1.199A–3 establish amendment.
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E. Executive Order 13771 that are available only with very large Steven Harrison, Office of the Associate These regulations have been investment portfolios. To insure Chief Counsel (Financial Institutions designated as regulatory under E.O. appropriate non-tax regulation of these and Products) and Robert Alinsky, 13771. substantial investment portfolios, Vishal R. Amin, Margaret Burow, and subchapter M of chapter 1 of subtitle A Frank J. Fisher, Office of the Associate II. Paperwork Reduction Act the Code requires that such RICs must Chief Counsel (Passthroughs and The collection of information required be eligible for registration, and must Special Industries). However, other by this proposed regulation is in actually be registered, with the personnel from the Treasury proposed § 1.199A–3. The collection of Securities and Exchange Commission Department and the IRS participated in information in proposed § 1.199A–3 is under the Investment Company Act of their development. 1940. There are some small businesses required for RICs that choose to report List of Subjects in 26 CFR Part 1 information regarding qualified REIT that are publicly traded, but most Income taxes, Reporting and dividends to their shareholders. It is publicly traded businesses are not small recordkeeping requirements. necessary to report the information to entities as defined by the Regulatory Flexibility Act. Thus, the Treasury the IRS and relevant taxpayers in order Proposed Amendments to the Department and IRS expect that most to ensure that taxpayers properly report Regulations RICs are not small entities for purposes in accordance with the rules of the of the Regulatory Flexibility Act. Accordingly, 26 CFR part 1 is proposed regulations the correct amount Accordingly, the Treasury Department proposed to be amended as follows: of deduction under section 199A. The and the IRS have determined that the collection of information in proposed collection of information in this notice PART 1—INCOME TAXES § 1.199A–3 is satisfied by providing of proposed rulemaking will not have a information about section 199A ■ Paragraph 1. The authority citations significant economic impact. dividends as Form 1099–DIV and its for part 1 are revised by amending Accordingly, a regulatory flexibility instructions may prescribe. sectional authorities for §§ 1.199A–3 analysis under the Regulatory For purpose of the PRA, the reporting and 1.199A–6 to read in part as follows: Flexibility Act (5 U.S.C. chapter 6) is burden associated with § 1.199A–3 will not required. Notwithstanding this Authority: 26 U.S.C. 7805 * * * be reflected in the IRS Form 14029, certification, the Treasury Department Section 1.199A–3 also issued under 26 Paperwork Reduction Act Submission, and the IRS invite comments from U.S.C. 199A(c)(4)(C) and (f)(4). associated with Form 1099–DIV (OMB interested members of the public on control number 1545–0110). The burden * * * * * both the number of entities affected and Section 1.199A–6 also issued under 26 associated with the information the economic impact on small entities. U.S.C. 199A(f)(1)(B) and (f)(4). collection in the proposed regulations Pursuant to section 7805(f) of the represents 1.567 million hours and $149 * * * * * Code, this notice of proposed ■ Par. 2. Section 1.199A–0 is amended million ($2018) annually to comply rulemaking has been submitted to the by: with the information collection Chief Counsel for Advocacy of the Small ■ 1. Adding entries for § 1.199A– requirement in the proposed Business Administration for comment 3(b)(1)(iv)(A) and (B). regulations. The burden hours estimate on its impact on small business. ■ 2. Adding entries for § 1.199A–3(d), was derived from IRS’s legacy burden Pursuant to section 7805(f) of the (d)(1) and (2), (d)(2)(i) through (iii), model and is discussed in further detail Code, this notice of proposed (d)(2)(iii)(A) and (B), (d)(3), (d)(3)(i) on 1545–0110. The hourly rate is rulemaking has been submitted to the through (v), (d)(4), (d)(4)(i) and (ii), and derived from RAAS’s Business Taxpayer Chief Counsel for Advocacy of the Small (d)(5) and (6). Burden model that relates time and out- Business Administration for comment ■ 3. Adding entries for § 1.199A– of-pocket costs of business tax on its impact on small business. 6(d)(3)(iii) and (v). preparation, derived from survey data, The additions read as follows: to assets and receipts of affected Comments and Requests for Public taxpayers along with other relevant Hearing § 1.199A–0 Table of contents. variables, and converted by the Treasury The Treasury Department and the IRS * * * * * Department to $2017. The Treasury request comments on all aspects of the Department and the IRS request § 1.199A–3 Qualified business income, proposed rules. qualified REIT dividends, and qualified PTP comments on all aspects of information Before these proposed regulations are income. collection burdens related to the adopted as final regulations, proposed regulations. In addition, when * * * * * consideration will be given to any (b) * * * available, drafts of the applicable IRS comments that are submitted timely to (1) * * * forms are posted for comment at https:// the IRS as prescribed in this preamble (iv) * * * www.irs.gov/pub/irs-pdf/f1099div.pdf. under the ADDRESSES heading. All (A) In general. III. Regulatory Flexibility Act comments will be available at (B) Attributes of disallowed loss www.regulations.gov or upon request. A determined in year loss is incurred. It is hereby certified that the public hearing will be scheduled if * * * * * collections of information in proposed requested in writing by any person that (d) Section 199A dividends paid by a § 1.199A–3 will not have a significant timely submits written comments. If a regulated investment company. economic impact on a substantial public hearing is scheduled, then notice (1) In general. number of small entities. of the date, time, and place for the (2) Definition of section 199A The collection in proposed § 1.199A– public hearing will be published in the dividend. 3 applies only to RICs that pay section Federal Register. (i) In general. 199A dividends. As described above, (ii) Reduction in the case of excess Congress created RICs to give small Drafting Information reported amounts. investors access to the professional The principal authors of these (iii) Allocation of excess reported management and asset diversification regulations are Michael Y. Chin and amount.
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(A) In general. otherwise meets the requirements of this (i) Reported section 199A dividend (B) Special rule for noncalendar-year section is determined in the year the amount. The term reported section 199A RICs. loss is incurred. Whether a disallowed dividend amount means the amount of (3) Definitions. loss or deduction is attributable to a a dividend distribution reported to the (i) Reported section 199A dividend specified service trade or business RIC’s shareholders under paragraph amount. (including whether an individual has (d)(2)(i) of this section as a section 199A (ii) Excess reported amount. taxable income under the threshold dividend. (iii) Aggregate reported amount. amount, within the phase-in range, or in (ii) Excess reported amount. The term (iv) Post-December reported amount. excess of the phase-in range) also is excess reported amount means the (v) Qualified REIT dividend income. determined in the year the loss is excess of the aggregate reported amount (4) Treatment of section 199A incurred. To the extent a loss is partially over the RIC’s qualified REIT dividend dividends by shareholders. disallowed, QBI in the year of income for the taxable year. (i) In general. disallowance must be reduced (iii) Aggregate reported amount. The (ii) Holding period. proportionately. term aggregate reported amount means (5) Example. * * * * * the aggregate amount of dividends (6) Applicability date. (d) Section 199A dividends paid by a reported by the RIC under paragraph * * * * * regulated investment company—(1) In (d)(2)(i) of this section as section 199A general. If section 852(b) applies to a dividends for the taxable year § 1.199A–6 Relevant passthrough entities (including section 199A dividends paid (RPEs), publicly traded partnerships (PTPs), regulated investment company (RIC) for trusts, and estates. a taxable year, the RIC may pay section after the close of the taxable year and 199A dividends, as defined in this described in section 855). * * * * * paragraph (d). (iv) Post-December reported amount. (d) * * * (2) Definition of section 199A The term post-December reported (3) * * * dividend—(i) In general. Except as amount means the aggregate reported (iii) Separate shares. provided in paragraph (d)(2)(ii) of this amount determined by taking into * * * * * section, a section 199A dividend is any account only dividends paid after (v) Charitable remainder trusts. dividend or part of such a dividend that December 31 of the taxable year. * * * * * a RIC pays to its shareholders and (v) Qualified REIT dividend income. ■ Par. 3. Section 1.199A–3 is amended reports as a section 199A dividend in The term qualified REIT dividend by revising paragraph (b)(1)(iv) and written statements furnished to its income means, with respect to a taxable adding paragraph (d) to read as follows: shareholders. year of a RIC, the excess of the amount (ii) Reduction in the case of excess of qualified REIT dividends, as defined § 1.199A–3 Qualified business income, reported amounts. If the aggregate in § 1.199A–3(c)(2), includible in the qualified REIT dividends, and qualified PTP income. reported amount with respect to the RIC RIC’s taxable income for the taxable year for any taxable year exceeds the RIC’s over the amount of the RIC’s deductions * * * * * qualified REIT dividend income for the that are properly allocable to such (b) * * * taxable year, then a section 199A income. ll(1) * * * dividend is equal to— (4) Treatment of section 199A (iv) Previously disallowed losses—(A) (A) The reported section 199A dividends by shareholders—(i) In In general. Previously disallowed losses dividend amount, reduced by; general. For purposes of section 199A or deductions (including losses (B) The excess reported amount that and the regulations under section 199A, disallowed under sections 465, 469, is allocable to that reported section a section 199A dividend is treated by a 704(d), and 1366(d)) allowed in the 199A dividend amount. taxpayer that receives the section 199A taxable year generally are taken into (iii) Allocation of excess reported dividend as a qualified REIT dividend. account for purposes of computing QBI amount—(A) In general. Except as (ii) Holding period. Paragraph (d)(4)(i) to the extent the disallowed loss or provided in paragraph (d)(2)(iii)(B) of does not apply to any dividend received deduction is otherwise allowed by this section, the excess reported amount with respect to a share of RIC stock— section 199A and this section. These (if any) that is allocable to the reported (A) That is held by the shareholder for losses shall be used, for purposes of section 199A dividend amount is that 45 days or less (taking into account the section 199A and these regulations, in portion of the excess reported amount principles of section 246(c)(3) and (4)) order from the oldest to the most recent that bears the same ratio to the excess during the 91-day period beginning on on a first-in, first-out (FIFO) basis and reported amount as the reported section the date which is 45 days before the shall be treated as losses from a separate 199A dividend amount bears to the date on which the share becomes ex- trade or business. To the extent such aggregate reported amount. dividend with respect to such dividend; losses relate to a PTP, they must be (B) Special rule for noncalendar-year or treated as a loss from a separate PTP in RICs. In the case of any taxable year that (B) To the extent that the shareholder the taxable year the losses are taken into does not begin and end in the same is under an obligation (whether account. However, losses or deductions calendar year, if the post-December pursuant to a short sale or otherwise) to that were disallowed, suspended, reported amount equals or exceeds the make related payments with respect to limited, or carried over from taxable excess reported amount for that taxable positions in substantially similar or years ending before January 1, 2018 year, paragraph (d)(2)(iii)(A) of this related property. (including under sections 465, 469, section is applied by substituting ‘‘post- (5) Example. The following example 704(d), and 1366(d)), are not taken into December reported amount’’ for illustrates the provisions of this account in a later taxable year for ‘‘aggregate reported amount,’’ and no paragraph (d). purposes of computing QBI. excess reported amount is allocated to (i) Example. (A) X is a corporation that has (B) Attributes of disallowed loss any dividend paid on or before elected to be a RIC. For its taxable year determined in year loss is incurred. December 31 of that taxable year. ending March 31, 2019, X has $25,000x of net Whether a disallowed loss or deduction (3) Definitions. For purposes of long-term capital gain, $60,000x of qualified is attributable to a trade or business, and paragraph (d) of this section— dividend income, $25,000x of taxable interest
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income, $15,000x of net short-term capital However, taxpayers may rely on the income and qualified REIT dividends. gain, and $25,000x of qualified REIT rules of this section until the date the Thus, the charitable remainder trust dividends. X has $15,000x of deductible Treasury decision adopting these would be treated as distributing a expenses, of which $3,000x is allocable to the regulations as final regulations is proportionate amount of the investment qualified REIT dividends. On December 31, 2018, X pays a single dividend of $100,000x published in the Federal Register. income ($500/(1,000+500)*1,000 = on December 31, and reports $20,000x of the * * * * * $333) and qualified REIT dividends dividend as a section 199A dividend in ■ Par. 4. Section 1.199A–6 is amended ($1000/(1,000+500)*1000 = $667) written statements to its shareholders. On by adding paragraphs (d)(3)(iii) and (v) because the investment income and March 31, 2019, X pays a dividend of to read as follows: qualified REIT dividends are taxed at $35,000x, and reports $5,000x of the the same rate and within the same class, dividend as a section 199A dividend in § 1.199A–6 Relevant passthrough entities which is higher than the rate of tax for written statements to its shareholders. (RPEs), publicly traded partnerships (PTPs), (B) X’s qualified REIT dividend income trusts, and estates. the qualified dividend income which is under paragraph (d)(3)(v) of this section is in a separate class. The charitable * * * * * remainder trust in this example would $22,000x, which is the excess of X’s $25,000x (d) * * * of qualified REIT dividends over $3,000x in not be treated as distributing any of the (3) * * * allocable expenses. The reported section qualified dividend income until it 199A dividend amounts for the December 31, (iii) Separate shares. In the case of a trust described in section 663(c) with distributed all of the investment income 2018, and March 31, 2019, distributions are and qualified REIT dividends (more $20,000x and $5,000x, respectively. For the substantially separate and independent taxable year ending March 31, 2019, the shares for multiple beneficiaries, such than $1,500 in total) to the recipient. To aggregate reported amount of section 199A trust will be treated as a single trust for the extent that a trust is treated as dividends is $25,000x, and the excess purposes of determining whether the distributing QBI, qualified REIT reported amount under paragraph (d)(3)(ii) of taxable income of the trust exceeds the dividends, or qualified PTP income to this section is $3,000x. Because X is a threshold amount. more than one unitrust or annuity noncalendar-year RIC and the post-December recipient in the taxable year, the * * * * * reported amount of $5,000x exceeds the distribution of such income will be (v) Charitable remainder trusts. A excess reported amount of $3,000x, the entire treated as made to the recipients excess reported amount is allocated under charitable remainder trust described in paragraphs (d)(2)(iii)(A) and (B) of this section 664 is not entitled to and does proportionately, based on their section to the reported section 199A not calculate a section 199A deduction respective shares of the total of QBI, dividend amount for the March 31, 2019, and the threshold amount described in qualified REIT dividends, or qualified distribution. No portion of the excess section 199A(e)(2) does not apply to the PTP income distributed for that year. reported amount is allocated to the reported The trust allocates and reports any W– section 199A dividend amount for the trust. However, any taxable recipient of a unitrust or annuity amount from the 2 wages or UBIA of qualified property December 31, 2018, distribution. Thus, the to the taxable recipient of the annuity or section 199A dividend on March 31, 2019, is trust must determine and apply the $2,000x, which is the reported section 199A recipient’s own threshold amount for unitrust interest based on each dividend amount of $5,000x reduced by the purposes of section 199A taking into recipient’s share of the trust’s total QBI $3,000x of allocable excess reported amount. account any annuity or unitrust (whether or not distributed) for that The section 199A dividend on December 31, amounts received from the trust. A taxable year. Accordingly, if 10 percent 2018, is the $20,000x that X reports as a recipient of a unitrust or annuity of the QBI of a charitable remainder section 199A dividend. trust is distributed to the recipient and (C) Shareholder A, a United States person, amount from a trust may take into account QBI, qualified REIT dividends, 90 percent of the QBI is retained by the receives a dividend from X of $100x on trust, 10 percent of the W–2 wages and December 31, 2018, of which $20x is or qualified PTP income for purposes of reported as a section 199A dividend. If A determining the recipient’s section UBIA of qualified property is allocated meets the holding period requirements in 199A deduction for the taxable year to and reported to the recipient and 90 paragraph (d)(4)(ii) of this section with the extent that the unitrust or annuity percent of the W–2 wages and UBIA of respect to the stock of X, A treats $20x of the amount distributed to such recipient qualified property is treated as retained dividend from X as a qualified REIT dividend consists of such section 199A items by the trust. However, any W–2 wages for purposes of section 199A for A’s 2018 under § 1.664–1(d). For example, if a retained by the trust do not carry over taxable year. charitable remainder trust has to subsequent taxable years for section (D) A receives a dividend from X of $35x 199A purposes. Any QBI, qualified REIT on March 31, 2019, of which $5x is reported investment income of $500, qualified as a section 199A dividend. If A meets the dividend income of $200, and qualified dividends, or qualified PTP income of holding period requirements in paragraph REIT dividends of $1,000, and the trust that is unrelated business (d)(4)(ii) of this section with respect to the distributes $1,000 to the recipient, the taxable income is subject to excise tax stock of X, A may only treat $2x of the trust would be treated as having income and that tax must be allocated to the dividend from X as a section 199A dividend in two classes within the category of corpus of the trust under § 1.664–1(c). for A’s 2019 taxable year. income described in § 1.664– * * * * * (6) Applicability date. The provisions 1(d)(1)(i)(a)(1), for purposes of § 1.664– of paragraph (d) of this section apply to 1(d)(1)(ii)(b). Because the annuity Kirsten Wielobob, taxable years ending after the date the amount first carries out income in the Deputy Commissioner for Services and Treasury decision adopting these class subject to the highest income tax Enforcement. regulations as final regulations is rate, the entire annuity payment comes [FR Doc. 2019–01023 Filed 2–4–19; 4:15 pm] published in the Federal Register. from the class with the investment BILLING CODE 4830–01–P
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Part III
Department of Labor
Office of Workers’ Compensation Programs 20 CFR Part 30 Claims for Compensation Under the Energy Employees Occupational Illness Compensation Program Act; Final Rule
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DEPARTMENT OF LABOR regulatory description of the claims than imposing any new regulatory adjudication process, and to improve burdens. However, it puts necessary Office of Workers’ Compensation the administration of the Act. The controls in place to allow the Programs majority of the changes in the NPRM Department to better manage the consisted of routine updates to the provision of home health care to 20 CFR Part 30 existing regulations to remove obsolete beneficiaries, since these costs have RIN 1240–AA08 terms, update references and been rising over the past decade, and incorporate policy changes that have reduces the likelihood of fraudulent Claims for Compensation Under the already been adopted in the Federal practices by some providers of this care. Energy Employees Occupational (EEOICPA) Procedure Manual. Most Accordingly, the Department believes Illness Compensation Program Act significantly, the Department proposed that the likely benefits of this modifying the existing regulations to rulemaking for both OWCP and the AGENCY: Office of Workers’ describe the increased involvement of public, in the form of regularized, Compensation Programs, Department of the National Institute for Occupational simplified, and less costly Labor. Safety and Health (NIOSH), within the administrative practices of OWCP, and ACTION: Final rule. Department of Health and Human the reduced need for costly Services (HHS), in the Office of overpayment-recovery efforts, will SUMMARY: The Department of Labor Workers’ Compensation Programs’ clearly outweigh any unlikely and initiated this rulemaking to bring clarity (OWCP’s) consideration of objections to presumably intangible burdens on to the regulatory description of the NIOSH’s final radiation dose businesses and the public at large. claims adjudication process, and to reconstruction reports. Since the improve the administration of the II. Comments on the Proposed beginning of OWCP’s administration of Regulations program. This final rule updates Part B of EEOICPA, Final Adjudication existing regulations to remove obsolete Branch (FAB) reviewers have struggled The Department originally allowed a terms, update references and with their regulatory obligation in 60-day period for interested parties to incorporate policy and procedural existing § 30.318 to consider objections comment on the NPRM that was changes. It also adds necessary controls to final dose reconstruction reports that scheduled to close on January 19, 2016, to allow the Department to better have been prepared by NIOSH during its but on that date it extended the comment period another 30 days manage the provision of home health portion of the adjudication process for through February 18, 2016 (81 FR 2787). care to beneficiaries. radiogenic cancer claims. The In addition, on April 5, 2016, the DATES: Effective Date: This final rule is experience has also been frustrating for Department reopened the comment effective on April 9, 2019, and will claimants, and convinced the period for the NPRM through May 9, apply to all claims filed on or after that Department that FAB reviewers are ill- 2016 (81 FR 19518). During these date. This rule will also apply to any suited to address objections that comment periods, the Department claims that are pending on April 9, concern matters within the particular received a total of 493 timely comments 2019. scientific expertise of NIOSH. Since from the following 474 unique NIOSH agreed to consider and address FOR FURTHER INFORMATION CONTACT: commenters: 272 individuals; 158 Rachel P. Leiton, Director, Division of claimant concerns in the final dose unknown persons or organizations; 25 Energy Employees Occupational Illness reconstruction report it sends to OWCP, physicians; 6 claimant representatives; 5 Compensation, Office of Workers’ and also agreed to provide consultation advocacy groups; 3 health care Compensation Programs, U.S. at the request of FAB reviewers to providers; 1 congressional Department of Labor, Room C–3321, 200 address any objections raised while the representative; 1 labor organization; 1 Constitution Avenue NW, Washington, claim is pending before FAB, the Federal employee from an agency other DC 20210, Telephone: 202–693–0081 Department proposed modifying than the Department; 1 law firm and the (this is not a toll-free number). § 30.318(a). That proposed paragraph new Advisory Board on Toxic Individuals with hearing or speech describes the potential for NIOSH to Substances and Worker Health impairments may access this telephone provide consultation in FAB’s established under section 7385s–16 of number via TTY by calling the toll-free consideration of objections to final dose EEOICPA. The Department also received Federal Information Relay Service at 1– reconstruction reports, and this one untimely comment from an 800–877–8339. consultation process will provide for a individual that raised issues that were SUPPLEMENTARY INFORMATION: more complete consideration of the also raised by the timely commenters. claimant’s objections. In addition, the Of the 493 timely comments, 220 did I. Background of This Rulemaking Department proposed changes in the not address any aspect of the proposed The Department of Labor NPRM to align the processing and regulatory changes in the NPRM and are (Department) published its Notice of payment of medical bills with the not discussed further in this document. Proposed Rulemaking (NPRM) in the system that OWCP currently uses for This left 273 comments, of which 128 Federal Register on November 18, 2015 paying medical bills, updated the only asked the Department to extend the (80 FR 72296). In its NPRM, the process for excluding EEOICPA medical comment period for the NPRM, but did Department proposed amending certain service providers and set out a new not discuss any other aspect of the of the existing regulations governing its process for authorizing home health NPRM. The remaining 145 comments administration of Parts B and E of the care. referenced at least one change to the Energy Employees Occupational Illness The Department notes that this final existing regulations suggested in the Compensation Program Act of 2000, as rule is largely an update to the existing proposed rule; 7 of these 145 also amended (EEOICPA or Act), 42 U.S.C. regulations to reflect the program’s included an extension request. The 7384 et seq to conform them to current current processes, and incorporates the Department’s section-by-section administrative practice, based on its policy and procedural changes that have analysis of the 145 timely comments is experience administering the Act since been implemented since the existing set forth below (see section III). A brief 2001, to bring further clarity to the regulations were issued in 2006, rather discussion of the total of 135 extension
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requests and other ancillary matters beryllium vendors, and replaced it with refers to ‘‘a facility owned, operated or related to this rulemaking is also set a reference to the final list of beryllium occupied by a beryllium vendor.’’ While forth below (see section IV). vendors that DOE compiled on the Department acknowledges that December 27, 2002. One individual section 7384l(7)(A) refers to ‘‘a facility III. Section-by-Section Analysis objected to the proposed language, owned, operated or occupied by a The analysis in this section provides because he believed that the change did beryllium vendor,’’ employees who the Department’s response to public not acknowledge that additional satisfy that first provision must also comments received on the NPRM. beryllium vendor facilities, i.e., newly show that they were exposed in the Unless otherwise stated, the section identified locations where beryllium performance of duty under section numbers in the text of the analysis refer vendors performed their work, could 7384n(a)(2), which refers to ‘‘a facility to the numbering used for the final still be designated. While DOE’s owned and operated by a beryllium regulations. authority to designate new beryllium vendor.’’ Put simply, an employee must satisfy both statutory provisions to be Subpart A—General Provisions vendors expired on December 31, 2002 pursuant to 42 U.S.C. 7384m, the entitled to Part B benefits due to a Introduction Department agrees that there is beryllium illness. Thus, the narrower of those two implicit definitions of a In the NPRM, the Department authority, as the individual pointed out, ‘‘beryllium vendor facility’’ controls. proposed modifying existing § 30.1 to to designate additional beryllium The Department notes, however, that update the Secretary’s Order reference vendor facilities, and notes that the proposed definition did not, nor and delete the reference to the Assistant additional beryllium vendor facilities could it, alter the eligibility of workers Secretary for Employment Standards, have been designated after December 31, at beryllium vendor facilities. since that position, as well as the 2002. The Department therefore agrees Accordingly, no changes were made in Employment Standards Administration, that the proposed language might cause the final rule with respect to these no longer exists. A claimant confusion, and is clarifying it in the final rule by removing the term comments. representative agreed with the Proposed § 30.5(k)(2) suggested Department’s deletion of those ‘‘facilities’’ and replacing it with ‘‘other entities.’’ This change will acknowledge replacing the term ‘‘medical doctor’’ references. An individual commented with ‘‘licensed physician’’ in the on other aspects of proposed § 30.1 that the continuing authority to designate additional beryllium vendor facilities existing definition of chronic silicosis are no different from the existing § 30.1. that currently appears in existing Because the individual’s comment did that are, or have been, owned and operated by either a beryllium vendor § 30.5(j)(2). One claimant representative not refer to a change that was proposed commented on the language in existing in the NPRM, no amendment was made identified in section 7384l(6) of EEOICPA or a beryllium vendor § 30.5(k), which contains a definition of in the final rule with respect to this the term claim, rather than on the comment. designated by DOE prior to December 31, 2002. The same individual also proposed change to the definition of Proposed § 30.2(b) added language to chronic silicosis. Since the claimant that section to note that HHS delegated suggested that the Department amend proposed § 30.5(i) to clarify the representative’s comment did not refer its dose reconstruction responsibilities to a change that was proposed in the to NIOSH in 42 CFR 82.1. A claimant distinction between corporate beryllium vendors identified in EEOICPA and NPRM, no amendment was made in the representative suggested that the final rule with respect to this comment. those designated by DOE prior to Department should retain the reference Proposed § 30.5(w) updated the December 31, 2002. The Department to HHS that appears in existing existing definition of the Department of § 30.2(b). However, the Department sees no utility in making the suggested Energy or DOE to clarify that DOE’s believes that explicitly acknowledging distinction, particularly in the context predecessor agencies date back to this delegation will promote better of claims adjudication, and therefore August 13, 1942, which is the date that public understanding of the fact that did not alter the text as desired. the Manhattan Engineer District was this particular portion of the claim In the NPRM, the Department established. Two advocacy groups adjudication process is performed by proposed adding a new paragraph, asserted that the start date of DOE’s and under the exclusive control of § 30.5(j), to define the term beryllium predecessor agencies in proposed another Federal agency. Under these vendor facility. To accommodate this § 30.5(w) would prevent some circumstances, no changes were made proposed addition, the Department also employees who worked on the atomic in the final rule with respect to this proposed redesignating existing bomb from applying for benefits, and comment. An individual commented on paragraphs (j) through (hh) as suggested that the start date should other aspects of proposed § 30.2(b) that paragraphs (k) through (ii). Proposed conform with the employment are no different from the existing § 30.5(j) defined the term beryllium eligibility criteria under section 5 of § 30.2(b). Because the individual’s vendor facility as ‘‘a facility owned and RECA. However, the Department notes comment did not refer to a change that operated by a beryllium vendor.’’ Two that such a proposal is not legally was proposed in the NPRM, no claimant representatives and three permissible because section 7384l(10) of amendment was made in the final rule advocacy groups objected to proposed EEOICPA provides that the term with respect to this comment. § 30.5(j) because they believed that the ‘‘Department of Energy’’ includes the proposed definition would Manhattan Engineer District, which was Definitions impermissibly narrow the scope of established on August 13, 1942, not The Department proposed amending coverage as set out in EEOICPA for both January 1, 1942. Since the proposed the definition of a beryllium vendor in current and potential covered beryllium regulatory language aligns with section existing § 30.5(i) by removing the employees. These commenters 7384l(10), no change was made to language indicating that the Department suggested that proposed § 30.5(j) be § 30.5(w) in the final rule. One claimant of Energy (DOE) periodically updated a amended to include the words representative also commented on list of beryllium vendors in the Federal ‘‘occupied by a beryllium vendor’’ to § 30.5(w), but did not comment on a Register, since DOE no longer has the specifically align the definition with proposed change in that provision. statutory authority to designate section 7384l(7)(A) of EEOICPA, which Because the claimant representative’s
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comment did not refer to a change that definition because these practitioners will not be affected in any way by this was proposed in the NPRM, no are qualified to prescribe medication in clarification. Accordingly, no change amendment was made in the final rule some jurisdictions. However, while the was made to § 30.5(ii)(2) in the final with respect to this comment. Department acknowledges that nurse rule. In proposed § 30.5(x), the Department practitioners and physician assistants In the NPRM, the Department added § 30.5(x)(2)(iii) to the definition can provide valuable services to patients proposed adding new paragraph of a Department of Energy contractor who reside in remote locations, their § 30.5(jj) to define the terms time of employee in existing § 30.5(w) to state written opinions are not widely payment or payment. To accommodate that a civilian employee of a state or accepted as probative and persuasive this addition, the Department also Federal government agency qualifies as medical evidence. To make that point proposed redesignating existing a DOE contractor employee if the agency clear, the Department has added text to paragraphs (ii) and (jj) as paragraphs employing that individual is found to this effect to § 30.5(ee) in the final rule. (kk) and (ll). Proposed § 30.5(jj) defined have entered into a contract with DOE Finally, one claimant representative time of payment or payment as the date for the provision of one or more services referred to something that was not that (1) a paper check issued by the it was not statutorily obligated to changed in proposed § 30.5(ee). Because Department of the Treasury was perform and DOE compensated the the claimant representative’s comment received by the payee or by someone agency for those services, and also that does not pertain to a change in proposed who was legally able to act for the the delivery or removal of goods from § 30.5(ee), no change was made in the payee, or (2) the date the Department of the premises of a DOE facility does not final rule based on this comment. the Treasury made an Electronic Funds constitute a service for the purposes of Proposed § 30.5(gg) removed Transfer to the payee’s financial determining a worker’s coverage under references to ‘‘RECA’’ and ‘‘EEOICPA’’ institution. One claimant representative the Act. Four advocacy groups, one in the existing definition of a specified objected to the proposed definition and claimant representative, two individuals cancer in § 30.5(ff). One claimant argued that the Department should and the labor organization objected to representative suggested that the define this term by referring to the time the added language regarding the Department should retain those a payment is issued, rather than delivery or removal of goods for the references. However, the Department received. However, the commenter purposes of determining a worker’s notes that these two statutory references erroneously believes that it is OWCP coverage under the Act. However, that are clearly surplusage and serve no that issues payments on claims under language memorializes a policy that has useful purpose in the regulatory context. EEOICPA, when as noted above, it is the been followed by OWCP since it issued Therefore, the suggested change to this Department of the Treasury that EEOICPA Bulletin No. 03–27 in 2003, paragraph was not adopted in the final performs these ministerial functions. and that policy continues to conform rule. Therefore, since the date a payment is with the eligibility terms of the statute. The Department proposed to expand issued is not entirely within OWCP’s Because § 30.5(x)(2)(iii) merely updates upon the definition of the term time of control, nothing in this final rule could the current regulations with OWCP’s injury in existing § 30.5(hh) by adding alter when payment by either paper longstanding policy, the requested text in proposed § 30.5(ii)(2) to explain check or Electronic Funds Transfer changes were not made in the final rule. that the time of injury in a survivor’s occurs. Thus, the suggested change to Another claimant representative claim is the ‘‘date of the employee’s this paragraph was not made in the final commented on aspects of existing death.’’ Four advocacy groups, a rule. § 30.5(x), but did not comment on a claimant representative, a physician and proposed change in that provision. the labor organization disagreed with Subpart B—Filing Claims; Evidence Since the individual’s comment did not the proposed definition, based on their and Burden of Proof; Special refer to a change that was proposed in concern that the proposed text could Procedures for Certain Cancer Claims the NPRM, no amendment was made in deprive survivors of reimbursement for Filing Claims for Benefits Under medical expenses in situations when a the final rule with respect to this EEOICPA comment. covered employee dies after filing a Proposed § 30.5(ee) amended the claim, but before such claim is accepted. Proposed § 30.100(a) and (c)(1) definition of a physician in existing Section 7385i(a) of EEOICPA is the only removed language that would allow § 30.5(dd), which states that a place in the statute that Congress used certain persons other than the employee ‘‘physician includes’’ a list of types of the term ‘‘time of injury,’’ and the to sign a written claim with OWCP on physicians, by stating that a ‘‘physician Department notes that proposed the employee’s behalf, and instead means’’ that same list. Two advocacy § 30.5(ii)(2) was intended to clarify how required that the employee sign his or groups, one Federal employee, the labor the forfeiture provision in section her own claim. Proposed § 30.101(a) and organization and one health care 7385i(a) works when a survivor, as (d)(1) made the same change with provider suggested that the Department distinguished from an employee, is respect to survivor claims. Three retain the word ‘‘includes’’ so that convicted of fraud in the application for claimant representatives, three medical doctors and other medical or receipt of EEOICPA benefits or of individuals, two health care providers, specialists are included in that Federal or state workers’ compensation one advocacy group and the labor definition. The Department agrees with benefits. It was the Department’s organization objected to the these commenters and acknowledges intention in the NPRM to give full force Department’s change in proposed that the proposed change would have and effect to this important fraud § 30.100(a) and (c)(1) to require an had unintended consequences. prevention provision. Because this employee to sign his or her own written Accordingly, the Department is definition only impacts those survivors claim. The same three claimant reverting back to using the word who have committed fraud of the sort representatives, the same three ‘‘includes’’ in the final rule. One of that triggers the forfeiture provision of individuals, the same advocacy group those same advocacy groups and section 7385i(a), and the overwhelming and the same labor organization another health care provider suggested majority of survivors who might be objected to the same change made in adding nurse practitioners and/or eligible to claim this reimbursement do proposed § 30.101(a) and (d)(1). These physician assistants to this regulatory not engage in such fraudulent acts, they commenters were concerned that the
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requirement would cause undue E of EEOICPA and has no intrinsic as evidence of employment. An difficulty and delay in the submission of meaning in the scheme that Congress advocacy group had the same concern claims by some elderly or otherwise eventually passed. Since there is no regarding the effect of the changes made impaired individuals. However, when practical difference between a in proposed § 30.112(b)(3), and noted signing Forms EE–1 and EE–2, a ‘‘minimum impairment rating’’ and an that DOE does not have complete claimant makes certain certifications ‘‘impairment rating’’ when a claimant employment records. Both commenters with possible legal ramifications, and has reached maximum medical asked the Department to clearly define authorizes the release of information to improvement, no amendment was made several terms used in the proposed text OWCP. Therefore, it is reasonable to in the final rule in response to this that explain how OWCP will evaluate require claimants to sign the form, comment. affidavit evidence in these situations. particularly since doing so will be an However, proposed § 30.112(b)(3) Evidence and Burden of Proof objective indication that he or she is described OWCP’s longstanding method aware of these matters. The same In proposed § 30.110(a)(1), the of evaluating employment evidence, advocacy group and one of the three Department updated a cross-reference to which necessarily involves a high individuals suggested that these reflect the changed location of the degree of administrative discretion, and sections should be written so as to regulatory provision defining the term therefore the Department is not accommodate those claimants who may covered beryllium illness from § 30.5(o) persuaded that it would be appropriate be unable to sign a claim form. OWCP to § 30.5(p). Also, in proposed to make the above changes in the final already accepts, and will continue to § 30.110(a)(4), the Department updated a rule. An individual mistakenly asserted accept, claim forms signed by a valid cross-reference to reflect the changed that OWCP does not accept affidavit attorney-in-fact or court-appointed location of the regulatory provision evidence to prove covered employment, representative. An individual other than defining the term covered uranium but did not comment on the proposed a claimant may sign the claim form for employee from § 30.5(s) to § 30.5(t). change in that provision. Because the the claimant if they have the recognized Finally, in proposed § 30.110(b), the individual’s comment did not refer to a authority to do so, and are not otherwise Department updated a cross-reference to change that was proposed in the NPRM, prohibited under any other provision in reflect the changed location of the no change was made to § 30.112(b)(3) in these regulations. Therefore, the regulatory provision defining the term the final rule with respect to this Department has not made the suggested covered Part E employee from § 30.5(p) comment. However, the Department has changes to § 30.100(a) and (c)(1), or to to § 30.5(q). A claimant representative decided that it needs to conform the § 30.101(a) and (d)(1), in the final rule. questioned the need to change these regulatory language of § 30.112(b)(3) Also in proposed §§ 30.100 and regulatory cross-references in proposed with the related text of § 30.231(a) in the 30.101, the Department proposed § 30.110(a) and (b), and suggested that final rule, by specifying that if the only amending language that currently only the existing cross-references be retained. evidence that the claimant submits to recognizes postmark dates as evidence However, the Department notes that establish covered employment is an of the time a claim is filed to also these changes were necessary to reflect affidavit, OWCP will evaluate that recognize the date-markings of other the changed location of the specified affidavit in conjunction with the other carriers, since other delivery options regulatory provisions. Therefore, no available evidence of employment in the besides the U.S. Mail are widely used. change was made to § 30.110(a) or (b) in record. A claimant representative indicated that the final rule. Proposed § 30.113(c) removed the she did not see any reason for making In the NPRM, proposed § 30.112(b)(3) term ‘‘self-serving’’ when referring to these proposed changes, and suggested removed the term ‘‘self-serving’’ when documents submitted to establish a that the additional language be referring to affidavits submitted to covered medical condition, and instead removed. However, since the proposed establish covered employment, and also proposed language codifying OWCP’s language at issue in these two sections removed language that ‘‘OWCP may current method of evaluating all adds new ways for a claimant to reject the claim based upon a lack of medical evidence in a claim when it establish the date he or she filed a evidence of covered employment’’ when decides if the claimant has met his or claim, which is important because the DOE or another entity either disagrees, her burden of proof under § 30.111. A date of filing also marks the date of or cannot concur or disagree with the claimant representative and a health commencement for the potential assertion in a written affidavit or care provider suggested that the payment of medical benefits, the declaration of covered employment. In Department further define several terms claimant representative’s belief is its place, proposed § 30.112(b)(3) it used in proposed § 30.113(c). The unfounded. Therefore, no change was explained that OWCP will evaluate such Department believes that OWCP’s made in the final rule in response to this an affidavit in conjunction with the evaluation of medical evidence is a comment. other evidence of employment when matter of administrative discretion and In the NPRM, proposed § 30.102(a) DOE or another entity either disagrees, cannot reasonably be further defined. removed the superfluous word or cannot concur or disagree with the An individual mistakenly asserted that ‘‘minimum’’ from the term ‘‘minimum assertion, and ‘‘may determine that the OWCP does not accept the type of impairment rating’’ in existing claimant has not met his or her burden medical evidence described in proposed § 30.102(a). A claimant representative of proof under § 30.111.’’ A claimant § 30.113(c), but did not comment on the objected to that change, and pointed out representative agreed with removing the proposed change in that provision. that this word appears in the statutory term ‘‘self-serving,’’ but stated that the Because the individual’s comment did description of impairment ratings found added language in that provision might not refer to a change that was proposed in section 7385s–2(a)(1)(A)(i) of signify that OWCP will always make a in the NPRM, no change was made to EEOICPA. However, as the Department finding of no covered employment § 30.113(c) in the final rule with respect explained when it published proposed based on this type of evidence, and to this comment. § 30.102(a), the term ‘‘minimum suggested adding language that The Department proposed modifying impairment rating’’ is an artifact left ‘‘objective’’ evidence such as statements existing § 30.114(b) in the NPRM to over from an early draft of the from co-workers, social security records, clarify that current paragraphs (b)(1) and legislation that was later enacted as Part and payroll records will be considered (b)(2) pertain to medical evidence
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needed to establish a compensable § 30.5(u). In proposed § 30.205(a)(3)(i), exists, since the requirement to establish medical condition under Part B, and the Department updated a cross- a diagnosis of a chronic respiratory added paragraph (b)(3) to provide that reference to reflect the changed location disorder is one of the ways that would additional medical evidence, as of the regulatory provision defining the permit the use of the pre-1993 described in other sections of the term Department of Energy facility from diagnostic criteria (of which the regulations, is required to establish § 30.5(x) to § 30.5(y). A claimant statutory provision referenced above is claims for covered illness(es), representative noted those cross- one of five) for ‘‘established chronic impairment benefits and wage-loss reference changes in proposed § 30.205. beryllium disease’’ under Part B of benefits under Part E. A claimant However, because the commenter did EEOICPA, rather than, as the commenter representative agreed with the not either support or oppose the posited, a criterion in and of itself. Department’s changes in proposed proposed regulation or offer ideas for Therefore, the Department made no § 30.114(b)(1) and (2), but asserted that changes, no change was made to change to § 30.207(d) as a result of this proposed § 30.114(b)(3)(ii) wrongly § 30.205 in the final rule based on this comment. A claimant representative required a claimant to submit additional comment. suggested that the Department further medical evidence to establish a wage- Proposed § 30.206(a) removed the define the term ‘‘chronic’’ in proposed loss claim, because she believed that the language ‘‘a facility owned, operated, or § 30.207(d), but she did not suggest any medical evidence already used to accept occupied by a beryllium vendor’’ from changes to the text of the provision. The a covered illness should be enough to existing § 30.206(a), and instead Department is unaware of any current or support a claim for wage-loss benefits. referenced the definition of a beryllium past difficulty regarding the use of this This belief does not consider that there vendor facility in proposed § 30.5(j). An term in the claims adjudication process, are, however, additional eligibility advocacy group, a claimant and is therefore not persuaded that the requirements for wage-loss benefits in representative, a health care provider term requires any further explanation in section 7385s–2(a)(2) of EEOICPA and the Advisory Board suggested that the regulations. The same claimant beyond those set out in section 7385s– the Department should retain the representative suggested that the 4 of EEOICPA. Therefore, no change was language in current § 30.206(a), and not Department add the words ‘‘tested for’’ made to § 30.114(b) in the final rule as reference proposed § 30.5(j) because a chronic respiratory disorder in a result of this comment. they believed that proposed § 30.5(j) proposed § 30.207(d)(1) and (2), since erroneously excluded facilities that that change would be consistent with Special Procedures for Certain were ‘‘occupied by’’ a beryllium vendor. OWCP’s past practice. The Department Radiogenic Cancer Claims As explained above, proposed § 30.5(j) agrees with this comment; accordingly, Proposed § 30.115(a) deleted a did not alter the eligibility of workers at text has been added to § 30.207(d)(1) reference to an obsolete HHS regulation, beryllium vendor facilities; rather, it and (2) in the final rule to acknowledge and proposed § 30.115(a)(2) deleted encompassed the narrower of the two that OWCP will consider whether the language stating that HHS may perform definitions at section 7384n(a)(2) of employee was ‘‘tested positive for’’ a further development of the employee’s EEOICPA, which all beryllium vendor chronic respiratory disorder when it work history and that it will provide employees must satisfy to establish their decides whether the criteria in DOE with a copy of the final dose eligibility. Therefore, the suggested paragraph (c)(1) in § 30.207 can be used. change was not adopted in the final reconstruction report for an employee, Eligibility Criteria for Claims Relating to since HHS does not perform either of rule. The same advocacy group and another advocacy group commented on Radiogenic Cancer Under Parts B and E those actions. In addition, proposed of EEOICPA § 30.115(a) and (b) replaced references other aspects of proposed § 30.206(a) to ‘‘HHS’’ with ‘‘NIOSH.’’ A claimant that were no different from existing In proposed §§ 30.210(a)(1) and representative commented on other § 30.206(a). Because the comments 30.211, the Department updated a cross- reference to reflect the changed location aspects of proposed § 30.115(a) that are submitted by the advocacy groups did of the regulatory provision defining the no different from the existing not refer to changes that were proposed term specified cancer from § 30.5(ff) to § 30.115(a). The same claimant in the NPRM, no amendments were § 30.5(gg). A claimant representative representative and the labor made to § 30.206(a) in the final rule noted those cross-reference changes in organization commented on other with respect to those comments. The Department proposed adding the above sections. However, because aspects of proposed § 30.115(a)(2) that paragraph (d) to existing § 30.207 to the commenter did not either support or are no different from existing memorialize its current practices for oppose the proposed regulation or offer § 30.115(a)(2). Because those determining whether to evaluate an ideas for changes, no change was made commenters did not refer to changes employee’s medical evidence under to those sections in the final rule based that were proposed in the NPRM, no either the pre- or post-1993 criteria on this comment. changes were made to § 30.115(a)(2) in outlined in section 7384l(13) of Proposed § 30.213(a) replaced the the final rule based on their comments, EEOICPA. Proposed § 30.207(d)(1) words ‘‘the employee’s radiation dose nor was any change made to § 30.115(b) through (3) explained that OWCP will reconstruction’’ with ‘‘the employee’s in the final rule. look to the date that the employee was final dose reconstruction report,’’ and Subpart C—Eligibility Criteria either treated for or diagnosed with a replaced a reference to ‘‘HHS’’ with chronic respiratory disorder when ‘‘NIOSH.’’ A claimant representative Eligibility Criteria for Claims Relating to determining whether to use either the commented on other aspects of Covered Beryllium Illness Under Part B pre- or post-1993 criteria. One advocacy proposed § 30.213(a) that are no of EEOICPA group took issue with the portion of different from existing § 30.213(a). In proposed § 30.205(a)(1), the proposed § 30.207(d) that refers to a Because the claimant representative’s Department updated a cross-reference to diagnosis of a ‘‘chronic respiratory comment did not refer to a change that reflect the changed location of the disorder,’’ in the belief that the need to was proposed in the NPRM, no regulatory provision defining the term establish this diagnosis might conflict amendment was made to § 30.213(a) in current or former employee as defined with section 7384l(13)(B)(ii)(IV) of the final rule with respect to this in 5 U.S.C. 8101(1) from § 30.5(t) to EEOICPA. However, no such conflict comment.
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Eligibility Criteria for Claims Relating to language stating that it will accept a explain OWCP’s evaluation of evidence Chronic Silicosis Under Part B of claimant’s affidavit as evidence of of toxic exposure. However, any such EEOICPA covered employment, absent strong definitions would be unnecessarily In proposed § 30.220(a), the evidence discrediting the affidavit. Also, specific, and therefore not appropriate Department updated cross-references to one of the four advocacy groups for regulatory text. A claimant reflect the changed location of the questioned whether proposed representative suggested that the regulatory provisions defining the terms § 30.231(a) would make it more difficult Department state in proposed § 30.231(b) that OWCP will only require Department of Energy facility and for claimants to meet their burden of evidence that the toxic substance was chronic silicosis, from § 30.5(x) to proof. While the Department does not present at a claimed work site and that § 30.5(y) and from § 30.5(j) to § 30.5(k), agree with the comment submitted by the employee came in contact with the respectively. A claimant representative the claimant representative noted above, substance. However, such a change noted those cross-reference changes in it nonetheless has added text (as it did would ignore the explicit requirements § 30.220(a). However, because the for § 30.112(b)(3)) to clarify that if the of section 7385s–4(c)(1). The Advisory commenter did not either support or only evidence that the claimant submits Board requested that the Department oppose the proposed regulation or offer to establish covered employment is an include in proposed § 30.231(b) ideas for changes, no changes were affidavit, OWCP will evaluate that additional potential sources of probative made to this section in the final rule affidavit in conjunction with the other available evidence of employment when evidence of toxic exposure. Such a based on this comment. change is unnecessary because proposed In proposed § 30.222(a), the it is unable to verify the alleged covered § 30.231(b)(3) already made clear that Department updated a cross-reference to employment through the processes described in 20 CFR 30.105(a) and OWCP would consider evidence from reflect the changed location of the any entity deemed by OWCP to be a regulatory provision defining the term 30.106. The Department made that same minor change in the text of § 30.231(a). reliable source of information for the chronic silicosis from § 30.5(j) to purposes of proving toxic exposure § 30.5(k). Also in proposed § 30.222(a), However, the Department notes that the advocacy group’s concern about the information. For the above reasons, the the Department replaced the term Department did not make any of the ‘‘medical doctor’’ with ‘‘licensed burden of proof is misplaced, since there is nothing in the text of proposed suggested changes discussed by these physician.’’ A claimant representative commenters to § 30.231(b) in the final noted the cross-reference change in § 30.231(a) that would alter a claimant’s burden of proof to establish covered rule. § 30.222(a). However, because the Proposed § 30.232(a) deleted the commenter did not either support or employment; therefore, no changes were made in § 30.231(a) in the final rule former Part D requirements for oppose the proposed regulation or offer establishing a covered illness, as ideas for changes, no change was made based on this other comment. The other three advocacy groups and the labor Congress abolished Part D and those to those sections in the final rule based requirements are now irrelevant. In its on this comment. organization also asked the Department to define several terms used in the text place, the Department proposed adding Eligibility Criteria for Other Claims that explain how OWCP will evaluate language to describe its current Under Part E of EEOICPA affidavit evidence in these situations, requirements for establishing a covered while the same three advocacy groups, illness under Part E. A claimant In proposed § 30.230(a) and (d)(1), the representative questioned why the the two claimant representatives and the Department updated a cross-reference to Department did not retain the first advocacy group discussed above all reflect the changed location of the requirements stated in § 30.232(a)(2) suggested that neither DOE nor another regulatory provision defining the term through (4) of the current regulations. entity should have any role in OWCP’s Department of Energy contractor As the Department explained in the evaluation of affidavit evidence. employee from § 30.5(w) to § 30.5(x). A preamble to the proposed rule, proposed However, as it explained above in claimant representative noted the cross- § 30.232(a) deleted references in that response to similar comments to reference changes in § 30.230(a) and paragraph that referred to the irrelevant proposed § 30.112(b)(3), the Department (d)(1). However, because the commenter requirements in former Part D. The labor is not persuaded that it would be did not either support or oppose the organization disagreed with the proposed regulation or offer ideas for appropriate to make such changes. Department’s removal of the reference to changes, no change was made to those Therefore, no change was made in DOE’s Former Worker Program in paragraphs in the final rule based on § 30.231(a) as a result of those current § 30.232(a)(3). However, this comment. comments. deleting that reference does not mean The Department proposed to amend Proposed § 30.231(b) described that evidence from DOE’s Former § 30.231(a) by adding the same language sources, in addition to the Site Exposure Worker Program may not be used to contained in proposed § 30.112(b)(3) to Matrices that are currently listed in that establish that a claimant whose explain its current practice of evaluating paragraph, that the Department employment has been established has affidavit evidence submitted by a considers to be reliable sources of been diagnosed with a covered illness claimant as proof of employment, in information to establish whether an under Part E. Thus, the Department did conjunction with all evidence of employee was exposed to a toxic not make any changes to § 30.232(a) employment, to determine if the substance at a DOE facility or a RECA based on these comments in the final claimant has met his or her burden of section 5 facility. An advocacy group rule. proof. Four advocacy groups, one of disagreed in general terms with Proposed § 30.232(a)(1) required the whom submitted two different proposed § 30.231(b). However, the claimant to submit ‘‘[w]ritten medical comments, two claimant representatives Department believes that the proposed evidence containing a physician’s and the labor organization objected to expansion of the list will be helpful for diagnosis of the employee’s covered the proposed language in § 30.231(a). claimants during the claims illness (as that term is defined in One of those claimant representatives adjudication process. Another advocacy § 30.5(s)), and the physician’s reasoning suggested that the Department replace group suggested that the Department for his or her opinion regarding the proposed language entirely with define several terms used in the text that causation’’ to establish that an employee
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has been diagnosed with a covered current § 30.232(a)(4) and accurately carriers, since other delivery options illness. An advocacy group, two reflects the claimant’s burden of proof to besides the U.S. Mail are widely used. claimant representatives and the submit medical evidence of causation, A claimant representative stated that Advisory Board disagreed with this which the Department believes is ‘‘the proposed and the current is the general requirement in proposed consistent with the statute, the same.’’ However, since the commenter § 30.232(a)(1). One of those claimant suggested changes to this provision have did not either support or oppose the representatives suggested that the not been adopted in the final rule. proposed regulation or offer ideas for Department state instead that any In proposed § 30.232(b), the changes, no change was made to that credible sources may be provided to Department updated a cross-reference to paragraph in the final rule based on this prove causation of a covered illness. reflect the changed location of the comment. An advocacy group requested The other claimant representative regulatory provision defining the term that proposed § 30.301(b)(1) be amended suggested that this provision include the covered illness from § 30.5(r) to to allow for the submission of subpoena words ‘‘aggravating and contributing § 30.5(s). Two advocacy groups and an requests through the Energy Document to.’’ The advocacy group believed that individual commented on other aspects Portal. This suggestion does not pertain proposed § 30.232(a)(1) increased the of proposed § 30.232(b) that are no to the changes in proposed burden necessary to establish a sick different from the existing § 30.232(b). § 30.301(b)(1). Because the advocacy worker’s illness by requiring the Because those commenters did not refer group’s comment did not refer to a physician to opine on causation. The to changes that were proposed in the change that was proposed in the NPRM, Advisory Board had a similar concern, NPRM, no amendments to § 30.232(b) no amendment was made in the final but suggested replacing the proposed were made in the final rule with respect rule based on this comment. text with text that would be essentially to their comments. Recommended Decisions on Claims identical. However, the Department Subpart D—Adjudicatory Process notes that proposed § 30.232(a)(1) Proposed § 30.305(a) replaced merely recognized a claimant’s burden, General Provisions references to ‘‘HHS’’ with ‘‘NIOSH.’’ A as authoritatively stated by the U.S. claimant representative agreed with that In § 30.300, the Department proposed proposed change. Therefore, no change Supreme Court, to provide evidence to adding language to explain that a meet the causation standard in section was made to § 30.305(a) in the final rule claimant may seek judicial review of a based on that comment. In addition, the 7385s-4(c) of EEOICPA, and the final decision issued by FAB by filing Department proposed modifying the requirement that the physician an action in Federal district court, since language in § 30.306 to make diagnosing a condition opine on the current regulations do not provide recommended decisions more causation. For those reasons, the this explanation. A claimant understandable by mandating that they Department is not persuaded that any representative agreed with the include a narrative discussion of the change to § 30.232(a)(1) is needed in the Department’s change. An individual, district office’s findings of fact and final rule based on these comments. The however, suggested that the Department conclusions of law. A claimant Department also updated a cross- add regulatory language establishing ‘‘a representative asked the Department to reference in proposed § 30.232(a)(1) to process for next-higher appeal within explain how OWCP will ‘‘enforce the reflect the changed location of the the DOL’’ in proposed § 30.300. This district offices to only list the facts and regulatory provision defining the term same suggestion was made by several law in the recommended decisions.’’ covered illness from § 30.5(r) to commenters on this section as it Since proposed § 30.306 merely codified § 30.5(s). A claimant representative appeared in the first interim final rule OWCP’s current practice of including a noted that change. Because the governing OWCP’s administration of narrative discussion in the commenter did not either support or EEOICPA that was published on May recommended decision of the district oppose the proposed regulation, or offer 25, 2001 (66 FR 28948). As it did when office’s findings of fact and conclusions ideas for changes, no change was made it subsequently published the first final of law, the comment addressed a matter to that section in the final rule based on rule on December 26, 2002 (67 FR of enforcement rather than the this comment. 78874), the Department continues to substance of the proposed change. Thus, In addition to the requirement in believe that utilizing administrative law no change was made to § 30.306 in the proposed § 30.232(a)(1), proposed judges or another type of independent final rule. § 30.232(a)(2) stated that a claimant review body would unnecessarily In the NPRM, the Department must submit ‘‘[a]ny other evidence complicate and delay the claims proposed moving the provisions in OWCP may deem necessary to show adjudication process to the detriment of current § 30.307 to § 30.308. Newly that the employee has or had an illness claimants. The commenter did not proposed § 30.307(a) informed readers that resulted from an exposure to a toxic present any new reasons not previously that in most situations, OWCP will issue substance while working at either a DOE considered by the Department when it a single recommended decision to all facility or a RECA section 5 facility.’’ originally decided to retain the survivors who filed claims under Part B One advocacy group and the Advisory adjudicatory structure described in and/or Part E of EEOICPA relating to the Board asserted that proposed § 30.300, or any evidence of problems same deceased employee, while newly § 30.232(a)(2) unreasonably required a with it since its inception in 2001. proposed § 30.307(b) recognized an claimant to provide evidence beyond a Therefore, no change was made to exception to that policy when another diagnosis of a covered illness. Another § 30.300 in the final rule based on that individual subsequently files a claim advocacy group asked for clarification comment. seeking the same award referenced in and further explanation of certain terms In proposed § 30.301(b)(1), the § 30.307(a). A claimant representative used in the text in proposed Department proposed amending commented that the proposed language § 30.232(a)(2). The Department language that currently only recognizes was confusing and would deny a appreciates these comments and postmark dates as evidence of a timely subsequent survivor the opportunity to understands the underlying concerns. request for the issuance of an file a claim. However, proposed However, because proposed administrative subpoena to also § 30.307(b) did not state that OWCP will § 30.232(a)(2) is materially identical to recognize the date-markings of other deny a subsequently claiming survivor
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the opportunity to file such a claim, but notice less than 30 days prior to the should indicate in its final dose instead explained that in circumstances hearing if the claimant and/or reconstruction report the calculated where a district office recommends that representative waives the 30-day notice recommended probability of causation. a subsequently filed claim be denied, period in writing. A claimant While the Department agrees that this the same recommended decision will representative agreed with the change in suggestion has merit, it is nonetheless not address the entitlement of the earlier proposed § 30.314(b). An advocacy contrary to how the President assigned claimants. Therefore, no change was group suggested that OWCP allow responsibility for this task in E.O. made to this section in the final rule. claimants more time to prepare for a 13179, and the suggested change was hearing if needed, and more time to not made to § 30.318(b) in the final rule. Hearings and Final Decisions on Claims present evidence at hearings. However, In the NPRM, the Department In the NPRM, proposed § 30.310(a) the advocacy group’s comments did not proposed to add language in § 30.319(b), replaced references to ‘‘HHS’’ with pertain to any of the changes made in which currently only recognizes ‘‘NIOSH.’’ In addition, the Department proposed § 30.314(b). Because the postmark dates as evidence of the time proposed amending the language in advocacy group’s comment did not refer a request for reconsideration is filed, to § 30.310(b) that only recognizes to a change that was proposed in the also recognize the date-markings of postmark dates as evidence of the time NPRM, no amendment was made in the other carriers, since other delivery a written objection is filed to also final rule based on this comment. options besides the U.S. Mail are widely recognize the date-markings of other Proposed § 30.315(a) added a used. The Department also changed the carriers, since other delivery options provision prohibiting a claimant or wording in proposed § 30.319(b) to besides the U.S. Mail are widely used. representative from making more than reflect recent changes in how the The Department also changed the one request to reschedule a hearing, program receives and processes mail. A wording in proposed § 30.310(b) to since repeated requests to cancel and claimant representative commented that reflect recent changes in how the reschedule hearings can have a negative the changes in proposed § 30.319(b) program receives and processes mail. A impact on the claim adjudication were unnecessary. However, as stated claimant representative had ‘‘no process for other claimants. A claimant above, other carrier’s date markings objections’’ to the proposed changes in representative agreed with the change. besides postmarks exist and therefore § 30.310. An advocacy group suggested The labor organization asked whether the Department believes that it is that proposed § 30.310(b) be amended to and how OWCP will notify claimants of necessary to recognize them for allow claimants to submit hearing this provision prior to their hearing timeliness purposes. Also, since the requests through the Energy Document date. The Department does not believe program now receives and processes Portal. As stated above in response to that the issue of notification suggested mail through a central mail room, the this same request in relation to by the latter comment is appropriate for reference in current § 30.319(b) that proposed § 30.301(b)(1), this suggestion a regulation, since it involves a purely FAB receives mail is no longer accurate. does not address the proposed change in internal procedure. Thus, no change Thus, no changes were made to that provision. Because the advocacy was made to § 30.315(a) in the final rule. § 30.319(b) in the final rule based on group’s comment did not refer to a As the Department explained above in this comment. change that was proposed in the NPRM, the ‘‘Background of This Rulemaking,’’ no amendment was made to this it proposed to modify § 30.318(a) to Reopening Claims paragraph in the final rule based on that describe the potential for NIOSH to Proposed § 30.320(b) allowed comment. provide consultation in FAB’s claimants to request a reopening based Proposed § 30.313(c) in the NPRM consideration of objections to final dose on new medical evidence diagnosing a replaced references to ‘‘HHS’’ with reconstruction reports. This medical condition. Two advocacy ‘‘NIOSH.’’ A claimant representative consultation process will provide for a groups and a health care provider and an individual commented on other more complete consideration of the suggested that the new language aspects of proposed § 30.313(c) that claimant’s objections. The Department proposed in § 30.320(b) be amended to were no different from the existing also proposed to clarify OWCP’s state that the Director for Energy § 30.313(c). Because those comments obligation to consider objections to how Employees Occupational Illness did not refer to changes that were it calculates the probability of causation Compensation will reopen any claim in proposed in the NPRM, no changes to in new § 30.318(b). One claimant instances when it failed to take into § 30.313(c) were made in the final rule representative commented that the account all relevant evidence in with respect to those comments. changes in proposed § 30.318 were reaching their determination on The Department also proposed unnecessary. However, the Department eligibility. Another advocacy group amending § 30.314(a), which currently believes that the changes to that section asserted that the Department’s change in provides a FAB reviewer with the will alleviate the frustration proposed § 30.320(b) was unnecessary discretion to conduct hearings by experienced by claimants and FAB because the Director has the discretion telephone or teleconference, to also reviewers in determining whether an to reopen a claim at any time. Both of allow the FAB reviewer to conduct objection to NIOSH’s final dose those comments go beyond the hearings by videoconference or other reconstruction report concerned proposed change in § 30.320(b). Because electronic means. A claimant ‘‘methodology’’ or ‘‘application.’’ The those commenters referred to something representative stated that there was ‘‘no Department further believes that that was not changed in the NPRM, no change’’ from the current regulations. NIOSH’s increased involvement in amendment to § 30.320(b) was made in Because the commenter did not either FAB’s consideration of objections to the final rule with respect to their support or oppose the proposed NIOSH’s final dose reconstruction comments. A claimant representative regulation or offer ideas for changes, no reports will make this process more commented that she was unsure change was made to that paragraph in efficient and transparent. For those whether OWCP will grant a reopening the final rule based on this comment. reasons, no changes were made to request based on new medical evidence. Proposed § 30.314(b) included new § 30.318 in the final rule based on this Proposed § 30.320(b) answered this language to provide the FAB reviewer comment. Another claimant question in the affirmative by explicitly with the discretion to mail a hearing representative suggested that NIOSH stating that the Director will reopen a
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claim in instances when, in her applicable licenses required under state no changes were made to § 30.400(c) in discretion, she determines that a law ‘‘as determined by the applicable the final rule as a result of any of these claimant has submitted new medical State regulatory body.’’ However, the comments. evidence that diagnoses a medical only occasions when OWCP is As stated above, the Department condition and is material to the claim. concerned with a provider’s possession proposed to move language in current Under these circumstances, no of state-required licenses is either at the § 30.400(a) regarding payments to amendment was made to § 30.320(b) in time of enrollment or exclusion. The reimburse out-of-pocket costs of the final rule as a result of those Department believes that no further obtaining covered medical treatment to comments. specificity is required in this provision survivors to a new paragraph, proposed since the proposed language explicitly § 30.400(d), in order to bring attention to Subpart E—Medical and Related states that state law governs licensure that longstanding policy. A claimant Benefits requirements. Therefore, the above representative agreed with the Medical Treatment and Related Issues suggestions have not been adopted in Department’s new proposed § 30.400(d). Accordingly, no changes were made to In the NPRM, the Department the final rule. In addition, the NPRM proposed this paragraph in the final rule. proposed to move language in current In the NPRM, the Department adding language in § 30.400(c) § 30.400(a) regarding the payment to proposed reorganizing existing § 30.403 authorizing OWCP to offset the cost of reimburse out-of-pocket costs of into three separate paragraphs to better prior rental payments against the future obtaining covered medical treatment to focus the section on OWCP’s current purchase of an appliance or supply. A survivors to a new paragraph. It also methods for pre-authorization of and claimant representative objected to this proposed to add a new statement to that payment for claims under section 7384t paragraph clarifying that if there is any provision, and suggested that OWCP of EEOICPA for home health care, doubt about whether a contemplated had other means available to it to nursing home, and assisted living service, appliance or supply is or will be control its costs in this area. However, services, which comprise the vast bulk necessary to treat an accepted illness, this practice has been in effect since of services of this type being provided. the employee should consult OWCP’s EEOICPA Bulletin No. 13–03 was issued Proposed § 30.403(a) incorporated the bill processing agent prior to obtaining in 2013, and has not proved descriptive text in current § 30.403 with it. An advocacy group suggested that the problematic. Accordingly, no changes minor modifications, and proposed new language in proposed § 30.400(a) be were made in the final rule as a result § 30.403(b) described OWCP’s general amended to state that employees may of this comment. The Department also requirements for payment of a claim for contact OWCP directly to ascertain proposed adding authority in § 30.400(c) nursing home and assisted living whether a contemplated medical for it to provide refurbished equipment services. A claimant representative treatment is considered to be necessary. where appropriate. The same claimant generally agreed with the Department’s However, such questions are more representative and a health care changes in proposed § 30.403(a) and (b), efficiently answered by contacting provider objected to this provision, and but that same claimant representative OWCP’s bill processing agent, as is the commented that it should be removed and a health care provider objected to current practice. Therefore, no change because such appliances may not work the new language in those paragraphs was made to § 30.400(a) in the final rule properly. However, these comments stating that authorization and payment as a result of this comment. Also, a presumed that refurbished appliances for home health care services are claimant representative and the labor would be unreliable without providing ‘‘subject to the pre-authorization organization commented on aspects of any data in support of that position. requirements described’’ in proposed proposed § 30.400(a) that did not relate Therefore, no changes were made in the § 30.403(c). For the reasons described to the proposed changes in that final rule in response to these below in response to comments in paragraph. Because those comments did comments. Lastly, in proposed proposed § 30.403(c), the Department is not refer to a change that was proposed § 30.400(c), the NPRM proposed not persuaded that it is necessary to in the NPRM, no amendment was made codifying OWCP’s inherent authority to remove that language in § 30.403(a) and to § 30.400(a) in the final rule with contract with specific providers to (b) in the final rule. respect to them. provide non-physician services and Proposed § 30.403(c) set out the The Department also proposed to appliances to beneficiaries. Three health particular pre-authorization process make a number of changes to care providers, two advocacy groups used to file an initial claim for home § 30.400(c). First, the Department and a claimant representative objected health care, nursing home, and assisted proposed adding new language in that to this provision. All of these living services. The Department paragraph to explain the current commenters, except one of the two received 39 comments on this proposed qualifications that must be met before advocacy groups, questioned the paragraph (24 comments were from hospitals and providers of medical Department’s statutory authority for this physicians, eight comments were from services or supplies may furnish proposed change, while the remaining individuals, four comments were from appropriate services, drugs, supplies advocacy group believed that the three health care providers, two and appliances to covered employees. A proposal was too vague. However, comments were from an advocacy group claimant representative agreed with the section 7384t(b)(2) of EEOICPA states and one comment was from a claimant Department’s change in that paragraph. that a physician initially selected by a representative). While one of the Two health care providers believed that beneficiary must ‘‘provide medical individuals and the claimant the proposed language in § 30.400(c) services, appliances, and supplies under representative agreed with the indicating that specified providers must this section in accordance with such Department’s changes in proposed possess ‘‘all applicable licenses required regulations and instructions as the § 30.403(c), the remainder of the under State law’’ would obligate OWCP President considers necessary.’’ Since commenters requested that the to monitor providers’ licensure. One of OWCP has been delegated the Department retain the language in those same two health care providers President’s authority under section current § 30.403 because they believe proposed amending that provision to 7384t(b)(2), it clearly has the authority that the new procedures would be too specify that a provider must possess all to regulate in this manner. Accordingly, burdensome for claimants and
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providers, and would cause unnecessary in proposed § 30.405(b) and (c) changed claimant representative suggested that delays in the medical treatment of existing § 30.405(a), which also the Department amend proposed EEOICPA beneficiaries. However, the recognizes that treating physicians may, §§ 30.410(c) and 30.411(d) to state that processes set forth in proposed and often do, refer their patients to a claimant may utilize the adjudicatory § 30.403(c) were merely a compilation of specialists for further medical care. process described in subpart D of the the current processes for pre- Proposed § 30.405(b) and (c) merely regulations if their claim is authorization, and will improve clarified the standards that OWCP may administratively closed, and include communications between the program use under its existing authority to provisions allowing the claimant to and the beneficiary, and between the approve or deny certain requests to cancel and request rescheduling of those program and the treating physician. change a treating physician. Although examinations upon a showing of good Currently, OWCP does not require most of the 102 comments submitted a cause. Two health care providers beneficiaries to identify the name of general objection to the changes in questioned the propriety of proposed their treating physician at the time that proposed § 30.405(b) and (c), the §§ 30.410(c) and 30.411(d) and home health care is requested, and following commenters submitted suggested amending these provisions to believes that obtaining this information comments with specific suggestions on state that OWCP will pay for reasonable up front will greatly enhance efficiency those proposed provisions. One of the travel accommodations, will hold because it will be able to communicate three advocacy groups, one of the three examinations in facilities which with the physician directly, if needed. claimant representatives and both of the accommodate the medical needs of Furthermore, OWCP currently requires health care providers suggested that the beneficiaries, allow for adjudication that the beneficiary’s physician submit Department further define the terms and under subpart D and include in the a letter of medical necessity and verify circumstances under which it would provisions language that OWCP will that a timely face-to-face physical deny a beneficiary’s request to change a give 30 days notice of an examination examination of the beneficiary took treating physician. However, the and limit the employee’s travel to a 100- place, and proposed § 30.403(c) merely Department believes that these are mile radius, prior to assessing if the recognizes this current process. Thus, properly matters of administrative employee ‘‘refused’’ an examination. no changes were made to § 30.403(c) discretion and would be too confusing OWCP notes that its procedures and based on these comments. to define and of little utility to other regulations not part of this In the NPRM, proposed § 30.405(b) beneficiaries. A different claimant rulemaking already provide that OWCP and (c) clarified OWCP’s policy for representative suggested that the will pay for the cost of these approving or denying an employee’s proposed language in these paragraphs examinations, including travel and request to change treating physicians. be replaced with language stating that a accommodations, allow their The language in current § 30.405(b) and beneficiary may select and utilize any cancellation for good cause, and direct (c) states that OWCP may approve or physician, at any time, so long as that that these examinations be held in deny a certain type of request to change physician is an approved provider facilities that accommodate the physicians based on the ‘‘sufficiency’’ of under the program. Consistent with the individual’s medical needs and are the request, while the proposed above explanation, such a proposal goes language in those paragraphs stated that well beyond the right of initial choice within a reasonable distance from the OWCP will approve or deny such a found in section 7384t(b)(2) of individual’s residence (almost always request based on the credibility of the EEOICPA, and was not proposed in the within a 100-mile radius). It is not request, and whether it is supported by NPRM. The Advisory Board suggested always possible to schedule minimally persuasive evidence. The that the Department eliminate the examinations at locations within that Department received 102 comments that changes in proposed § 30.405(b) and (c), radius, such as cases involving objected to the proposed changes in and instead state in those paragraphs individuals who reside in remote areas, § 30.405 (from 90 individuals, three that ‘‘The claimant may cite personal but the examination must still be within advocacy groups, three claimant preference as a valid reason to change a reasonable distance and these same representatives, two health care physicians.’’ However, this suggestion protections apply. Nevertheless, in providers, two unknown persons or goes beyond the change proposed, situations when a directed medical organizations, one labor organization which clarified that OWCP will approve examination is necessary, OWCP is and the Advisory Board). Out of these, or deny a request to change physicians unable to make a determination on a 54 comments interpreted proposed based on the credibility of the request claimant’s eligibility for benefits until § 30.405(b) and (c) to mean that a and whether it is supported by completion of such examination. beneficiary’s right to change physicians minimally persuasive evidence, instead Accordingly, administratively closing was being eliminated, 26 other of the ‘‘sufficiency’’ of the request, as is the claim until that essential comments interpreted those paragraphs stated in the existing regulation. In light development step takes place is a to mean that a beneficiary’s right to of the above discussion, no changes reasonable action that can be resolved initially choose a physician was being were made to this section in the final by employee cooperation. The eliminated, another 14 comments rule as a result of these 102 comments. Department further notes that the believed that those paragraphs decision whether or not to eliminated both of those rights, and the Directed Medical Examinations administratively close a claim properly final group of eight comments opposed The Department proposed to amend involves a question of administrative the proposed language without further §§ 30.410(c) and 30.411(d) to discretion, and that as such, the explanation. memorialize OWCP’s existing authority Department has decided not to identify The Department notes that section to administratively close an employee’s specific factors for such circumstances 7384t(b)(2) of EEOICPA allows a claim when he or she refuses to attend in the regulations. For those reasons, the beneficiary the opportunity to initially a second opinion examination or a suggested changes were not made to choose a physician to provide medical referee medical examination, §§ 30.410(c) and 30.411(d) in the final services, appliances and supplies, and respectively. A claimant representative rule. Finally, an advocacy group asked that statutory provision is reflected in agreed with the changes in proposed the Department to clarify what it means the text of existing § 30.405(a). Nothing §§ 30.410(c) and 30.411(d). Another by ‘‘pending matters’’ in proposed
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§§ 30.410(c) and 30.411(d). The in current § 30.500(a)(2) to a new of amending current § 30.509(c) to Department believes that the term must paragraph, proposed § 30.500(c)(1), in specifically reference the 5th Edition, be broad enough to retain maximum order to increase the understandability since this would reduce the ability to administrative discretion because the of this important definition. The change this in the future absent another matters that OWCP may need to Department also proposed adding a rulemaking. The Department agrees suspend under these sections will likely sentence in proposed § 30.500(c)(1) to with these commenters and be unique to the case at hand. Thus, the explain that a child’s marital status or acknowledges that OWCP may wish to Department has not made this last dependency on the covered employee move to another edition in the future. suggested change to §§ 30.410(c) and for support is irrelevant to his or her Accordingly, this change in proposed 30.411(d) in the final rule. eligibility for benefits as a ‘‘covered § 30.509(c) was not made in this final child’’ under Part E. A claimant Medical Reports rule. An individual commented on other representative agreed with the changes aspects of proposed § 30.509(c) that are In the NPRM, proposed § 30.416(a) in proposed § 30.500(c)(1). Therefore, no no different from the existing removed language that a physician’s change was made to § 30.500(c)(1) in the § 30.509(c). Because the individual’s stamp will be accepted in lieu of his or final rule. In addition, proposed comment did not refer to a change that her signature on a medical report, and § 30.500(c)(2) further defined the was proposed in the NPRM, no specified that the physician’s statutory term incapable of self-support amendment was made to § 30.509(c) in handwritten or electronic signature to mean that the child must have been the final rule with respect to this should be on his or her medical report. physically and/or mentally incapable of comment. Two claimant representatives suggested self-support at the time of the covered that it was unreasonable for OWCP to employee’s death. An individual Subpart G—Special Provisions require a physician’s handwritten or objected to the Department’s proposed Representation electronic signature on a medical report. definition as too vague. The Department However, this change was made to align does not agree that the proposed In the NPRM, the Department with the requirements of other programs definition at issue is vague, however, proposed amending § 30.600 to state administered by OWCP, as well as the and believes that the text added to this that a representative does not have the requirements of the Centers for definition in proposed § 30.500(c)(2) authority to sign either Form EE–1 or Medicare and Medicaid Services (CMS) highlights that determinations made on Form EE–2, to be consistent with within HHS. Thus, no change was made this point will focus on objective factual proposed §§ 30.100 and 30.101. Four to § 30.416(a) in this final rule based on and/or medical evidence, while still claimant representatives and one those comments. A third claimant permitting OWCP to retain the advocacy group suggested that it was representative mistakenly asserted that maximum amount of discretion needed unreasonable for the Department to for it to adjudicate these sorts of claims proposed § 30.416(a) was identical to eliminate a representative’s authority to on their individual facts. Furthermore, existing § 30.416(a), and therefore sign these initial claim forms in the Department notes that this approach questioned why it appeared in the proposed § 30.600(c)(2), citing reasons has met with judicial approval. See NPRM. However, because the claimant such as convenience and contractual representative’s comment did not Watson v. Solis, 693 F.3d 620 (6th Cir. 2012). Accordingly, no change was arrangements. One of those same pertain to something that was changed claimant representatives asserted in the NPRM, no amendment was made made to § 30.500(c)(2) in the final rule. In proposed § 30.501(a) and (b), the instead that a properly appointed in the final rule with respect to this authorized representative ought to have comment. Department updated a cross-reference to reflect the changed location of the the authority to sign all documents Subpart F—Survivors; Payments and regulatory provision defining the term relating to a claim. The Department Offsets; Overpayments survivor from § 30.5(gg) to § 30.5(hh). In discussed above, in its response to comments it received on proposed Survivors proposed § 30.502, the Department updated a cross-reference to reflect the §§ 30.100 and 30.101, the reasons why In the NPRM, the Department changed location of the statutory it believes that a claimant’s signature is proposed amending the first sentence in definition of a ‘‘covered child’’ from needed on his or her claim form. § 30.500(a)(2) to memorialize OWCP’s § 30.500(a)(2) to § 30.500(c)(1). A Because those same reasons apply here, policy determination that a ‘‘child’’ claimant representative noted both of the Department did not make any under Parts B and E of EEOICPA means these updated cross-references. change to proposed § 30.600(c)(2) as a only a biological child, a stepchild or an However, because the commenter did result of these comments. The same one adopted child of a deceased covered not either support or oppose the of these four claimant representatives Part B or Part E employee. Also, the proposed regulations or offer ideas for and the same advocacy group noted that Department proposed to move the changes, no change was made to either there was no provision in proposed statutory definition of a ‘‘covered child’’ section in the final rule based on her § 30.600(c)(2) allowing an attorney-in- found in the second sentence of existing comments. fact to sign a claim form on a claimant’s § 30.500(a)(2) to its own new paragraph. behalf. As discussed above in relation to A claimant representative asserted that Payment of Claims and Offset for proposed §§ 30.100 and 30.101, OWCP the changes in proposed § 30.500(a)(2) Certain Payments has and will continue to accept claim were unnecessary. However, since the In the NPRM, the Department forms signed by a valid attorney-in-fact. Department believes that these changes proposed amending current § 30.509(c), Any individual other than a claimant are substantive in nature and add which references the American Medical may sign the claim form if they have the clarity, no change was made to Association’s Guides to the Evaluation legal authority to do so, and have not § 30.500(a)(2) in the final rule as a result of Permanent Impairment (AMA’s otherwise been excluded under of this comment. Guides) to specifically reference the 5th proposed § 30.600(c)(2) of the As noted above, the Department Edition of the AMA’s Guides. Both a regulations. Therefore, no change was proposed in the NPRM to move the claimant representative and the made to this section as a result of this statutory definition of a ‘‘covered child’’ Advisory Board questioned the wisdom second group of comments.
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Proposed § 30.601 added language to representative could interfere with, or inception of the program in 2001. While provide that a representative must be contrary to, the best interests of the these requirements have been in comply with OWCP’s conflict of interest claimant. The Department agrees, existence since that time, the policy. Three advocacy groups, two however, with the commenters’ Department continues to prefer health care providers and a claimant suggestion that a basic statement of such describing its current provider processes representative disagreed with this policy should be incorporated in this in a regulatory format. A health care requirement in proposed § 30.601. One provision. The Department has therefore provider suggested amending proposed of those advocacy groups asserted that added a basic statement of OWCP’s § 30.700(a) to specify that Federal and such policy removes a class of potential conflict of interest policy to § 30.601 in state license requirements are to be authorized representatives without the final rule. determined by the applicable Federal or proof of any wrongdoing, restricts home Proposed § 30.603(a) clarified that a state regulatory body. However, the fact health care workers from being representative may charge a claimant for that the requirements are determined by appointed as authorized representatives costs and expenses related to a claim in the applicable Federal or state in situations when home health care addition to a fee for his or her services regulatory body is irrelevant to this benefits would not be available (such as within the limitations specified in provision. As explained in the for survivors), and that the Department § 30.603(b). A claimant representative Department’s discussion of a similar should address its fraud concerns in agreed with this change in proposed comment received in connection with other ways. That same advocacy group § 30.603(a). Under these circumstances, proposed § 30.400(c), the only occasions and the second advocacy group believed no change was made to that provision when OWCP is concerned with a that some elderly sick workers only in the final rule. provider’s possession of required licenses is either at the time of have their nurses to represent them, and Effect of Tort Suits Against Beryllium any limitation on who they may select enrollment or exclusion. The Vendors and Atomic Weapons Department believes that no further to represent them would be Employers unreasonable or would negatively affect specificity is required in this provision since the proposed language explicitly their health. The third advocacy group In the NPRM, proposed states that Federal and state law governs stated that the Department’s proposal to §§ 30.617(b)(2) and 30.618(c)(2) any pertinent licensure requirements. limit a claimant’s ability to designate a replaced references to ‘‘HHS’’ with Therefore, no changes to § 30.700(a) representative creates an unnecessary ‘‘NIOSH.’’ A claimant representative were made in the final rule based on burden on claimants since it is already asserted that the changes to these two these comments. difficult for claimants to find sections were unnecessary. The Department, however, has replaced the Proposed § 30.700(b) recognized representatives willing to provide OWCP’s current practice of requiring assistance, and that OWCP did not term ‘‘HHS’’ with ‘‘NIOSH’’ throughout the NPRM to correctly reflect HHS’s providers to seek pre-authorization for provide any rationale for the change. certain services. A health care provider Both of the health care providers delegation of its exclusive control of the portion of the claims process for felt that proposed § 30.700(b) should be disagreed with the conflict of interest removed because it conflicted with policy because the prohibition against radiogenic cancer to NIOSH in 42 CFR 82.1. Accordingly, no changes were unspecified provisions in EEOICPA, representatives having outside financial would result in delayed care, and interests unreasonably bars health care made in the final rule with respect to this comment. presented the likelihood that health care providers (who have experience providers seeking pre-authorization navigating complex Federal benefit Subpart H—Information for Medical might violate unspecified state laws. programs) from advocating for a Providers The Department is not persuaded by claimant, and suggested addressing this Medical Records and Bills this vague and unspecific comment, in the regulations or removing it. Two which appears to be based on pure of the advocacy groups and one of the In the NPRM, the Department speculation. A second health care health care providers believed that other proposed amending § 30.700 to provider, an advocacy group and a health benefit programs are not as describe, for the first time, OWCP’s claimant representative suggested that restrictive. Finally, the claimant process for enrolling providers with its the Department provide more detail in representative did not offer any reasons bill processing agent, as well as the proposed § 30.700(b) to describe the pre- for her disagreement with this proposed agent’s automated bill processing and authorization process, and list the change, nor did she suggest any authorization systems. Proposed specific procedures that require pre- changes. The two health care providers, § 30.700(a) required that a provider authorization. However, the requested the claimant representative and one of seeking to enroll certify that it has level of specificity in these comments is the advocacy groups asked the satisfied all applicable Federal and state not appropriate for regulations, and the Department to specifically state in the licensure and regulatory requirements, processes and procedures at issue are regulations the standards it has adopted. that it will maintain documentation more appropriately addressed through The Department is not persuaded by any showing that it satisfies those provider manuals, the bill processing of the reasons given by these requirements, and that it will notify agent’s web page and other explanatory commenters to abandon the proposed OWCP immediately if any such materials. For the above reasons, no application of the conflict-of-interest information changes. A claimant changes were made to § 30.700(b) in the policy in this context, because the aim representative questioned whether the final rule. of the policy is to keep providers from Department’s changes in proposed Proposed § 30.700(c) required that a straying outside of their proper roles as § 30.700(a) were necessary and argued provider submit ‘‘all medical bills’’ to providers of medical treatment. Also, that they placed undue hardship on OWCP through its bill processing portal. the Department believes that its policy providers. The Department does not A health care provider asked the will help it safeguard our vulnerable, agree that the changes in proposed Department to clarify whether it often aged, claimant population by § 30.700(a) cause any hardship, given intended to use electronic billing as the lessening the chance that an outside that providers have been adhering to the sole billing method in proposed financial interest of an authorized described requirements since the § 30.700(c). The commenter was
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concerned that supporting medical in proposed § 30.701(b) recognizing this use ‘‘industry standards’’ for billing of evidence can be voluminous, and discretion might create inconsistencies services, and commented that ‘‘industry asserted that it could be more efficiently and delays. This comment is merely standards’’ should be mandated for all submitted via U.S. Mail. The conjectural, however, and is not medical benefits. Accordingly, no Department notes, however, that the consistent with OWCP’s experience. change was needed for § 30.701(d) in regulatory requirement to support all The same claimant representative the final rule. bills for medical treatment with objected to the proposed language that Proposed § 30.701(e) described supporting medical reports or office/ OWCP will return and/or deny payment OWCP’s current practice of rejecting a treatment notes has been in existence for a bill if no code is submitted, and bill that does not conform to the since 2001 in existing § 30.701(a). As to felt that this action would be statutorily requirements in § 30.701, after which whether OWCP and/or its bill impermissible. On the contrary, this the rejected bill is returned to the processing agent will allow exceptions reasonable and fiscally prudent practice provider to be corrected and to this requirement for case-specific has been in place since the beginning of resubmitted. Proposed § 30.701(e) also circumstances is beyond the scope of the program in 2001, and the clarified OWCP’s policy that a bill must proposed § 30.700(c), and thus no Department is not persuaded by the contain the provider’s handwritten or change was made to this paragraph in commenter that it should be changed. electronic signature when required by the final rule based on this comment. Accordingly, no changes were made to the pertinent billing form, and removed In the NPRM, proposed § 30.701(a) this paragraph in the final rule. language that a provider’s stamp will be recognized that OWCP may withhold Proposed § 30.701(c)(1)(ii) alerted accepted in lieu of his or her signature payment for services until the required providers that in the future, OWCP may on the bill. An advocacy group was medical evidence described in proposed adopt certain provisions contained concerned that the proposed language in § 30.700 is provided, and clarified that within the Home Health Prospective § 30.701(e) that OWCP may deny a non- charges for medicinal drugs dispensed Payment System, which was devised by conforming bill could force beneficiaries in a physician’s office must be reported CMS. Three health care providers, three to pay bills that OWCP refuses to pay, on Form OWCP–1500 or CMS–1500. An advocacy groups and an individual and will ultimately leave the beneficiary advocacy group and a claimant objected to the possible adoption of any without necessary care. However, as representative were concerned that the aspect of that system, alleging that it noted above, this scenario appears to be language in proposed § 30.701(a) might would not be a good fit for the EEOICPA dependent upon the particular force beneficiaries to pay bills that beneficiary population, while one contractual relationships between OWCP refuses to pay, and might claimant representative agreed with that providers and their clients, and does not ultimately leave beneficiaries without proposed change. The Department notes therefore involve OWCP in a meaningful necessary care. This scenario appears to that this provision merely stated that way. A claimant representative be dependent upon the particular OWCP may adopt the system, or parts suggested that the Department state in contractual relationships between of that system, in the future. Since CMS proposed § 30.701(e) that a provider providers and their clients, and does not currently uses the system, providers may seek review of a disputed bill by an therefore involve OWCP in a meaningful should already be prepared for these administrative law judge. Once again, way. The same claimant representative changes if they are ultimately the Department notes that a provider also suggested that proposed § 30.701(a) implemented by OWCP. Therefore, no has the ability to seek judicial review of include a provision allowing providers change was made to proposed a disputed bill, and a regulatory to obtain administrative and/or judicial § 30.701(c)(1)(ii) in the final rule as a acknowledgment of that ability is not review if OWCP withholds payment, result of these comments. In proposed necessary. Two other claimant and allow providers to receive interest § 30.701(c)(3), the Department stated representatives argued that it was on a service that was provided, yet not that nursing home charges for unreasonable for the Department to paid for in a timely manner. The appliances, supplies or services ‘‘shall amend § 30.701(e) to require a Department notes that a provider be subject to any applicable OWCP fee physician’s handwritten or electronic already has the ability to seek judicial schedule.’’ A claimant representative signature, and no longer accept review of OWCP’s decision to withhold agreed with the Department that a fee signature stamps. However, as payment for services, and therefore does schedule for nursing home charges explained in the Department’s not require a regulatory would probably be necessary. An discussion on similar comments acknowledgment of that ability. As for advocacy group suggested instead that received in connection with proposed the payment of interest, the Department the Department initiate a new § 30.416(a), this change was made to notes that any such payment would be rulemaking at the point in time that it conform with the requirements in other governed by the Prompt Payment Act decides to implement such a fee programs within OWCP, and with the and is thus not within the purview of schedule. However, it is within OWCP’s requirements of CMS. Thus, no change this rulemaking. Accordingly, no discretion to use such a fee schedule, was made to § 30.701(e) as a result of changes were made to § 30.701(a) in the and proposed § 30.701(c)(3) merely these comments. final rule based on these comments. announces that OWCP may subject In the NPRM, proposed § 30.702 Proposed § 30.701(b) described nursing home charges to a fee schedule clarified how an employee can seek OWCP’s existing discretion to determine in the future. Therefore, no amendments reimbursement for out-of-pocket which codes to use in the automated were made to § 30.701(c)(3) in the final expenses incurred for the medical billing process managed by its agent, rule. treatment of an accepted illness. and to create and supply specific codes Proposed § 30.701(d) clarified that Proposed § 30.702(a) added a reference to be used by providers when either providers must adhere to accepted to Forms OWCP–04 and UB–04 to seeking authorization or submitting a industry standards when billing, and clarify that those forms must be used to bill for payment. In addition, proposed that billing practices such as upcoding request reimbursement of hospital § 30.701(b) noted that OWCP will return and unbundling are not in accord with charges. An advocacy group felt that the and/or deny payment for a bill if no those industry standards. A claimant current requirement in existing code is submitted. A claimant representative agreed with the § 30.702(a) that an employee submit representative feared that the language Department’s proposal in § 30.701(d) to Form OWCP–1500 or CMS–1500 to
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request reimbursement for professional provide that OWCP may require nursing the dispensing fee be unbiased and medical services is too burdensome. homes to abide by a fee schedule. A unambiguous, and consistent with the However, this comment does not refer to claimant representative and two CMS fee schedule. The Department is a change in proposed § 30.702(a). advocacy groups asserted that it was unaware of any objective evidence of Because the advocacy group’s comment premature for the Department to add bias regarding the dispensing fee for did not refer to a change that was that language to proposed § 30.705(b). medical drugs and this comment is proposed in the NPRM, no amendment The same claimant representative and outside the scope of the proposed was made in the final rule with respect one of those advocacy groups suggested change in § 30.709(a). Because the to this comment. The Department also that the Department initiate a separate claimant representative’s comment goes added language in proposed rulemaking if it decides to adopt this fee beyond the change in the NPRM, no § 30.702(a)(1) to provide that OWCP will schedule. The Department notes, amendment was made in the final rule reject a reimbursement request if a however, that it is within OWCP’s with respect to this comment. provider does not indicate the code or discretion to adopt such a fee schedule, Proposed § 30.709(c) codified OWCP’s a description of the service on the and proposed § 30.705(b) merely authority to require the use of generic billing form, after which the beneficiary announces that OWCP may decide that drugs, where appropriate. A claimant would have to resubmit a corrected bill. nursing homes will be covered by a fee representative generally agreed with the An advocacy group and a claimant schedule in the future. Accordingly, no proposed addition, as long as a representative objected to this amendment was made to § 30.705(b) in beneficiary can petition for ‘‘ungeneric’’ provision, but did not suggest a change the final rule. In proposed §§ 30.706 and equivalents if recommended by the to the proposed language in the NPRM. 30.707, the Department proposed provider. An advocacy group disagreed This requirement has been in effect updating the indices used to determine with the Department’s proposed change since the beginning of the program, and maximum fees. A claimant because it believes that a beneficiary’s the Department sees no reason to change representative agreed with the changes physician, not OWCP, must decide what this established practice based on these to those provisions. Therefore, no medications are best for the beneficiary. comments. changes were made to those sections in However, OWCP has required the use of Proposed § 30.702(d) stated that the final rule. generic equivalents where available billing forms submitted by beneficiaries In the introductory text in proposed since the beginning of the program in with their requests for reimbursement § 30.709, the Department added 2001, and sees no reason to alter this must bear the handwritten or electronic language that payment will be made for established requirement. Therefore, no signature of the provider. The medicinal drugs ‘‘[u]nless otherwise change made to § 30.709(c) in the final Department also proposed to amend specified by OWCP.’’ Also in the rule as a result of this comment. language in existing § 30.702(d), which introductory text in proposed § 30.709, Proposed § 30.710(a) removed the currently provides that OWCP’s the Department added language that terminology in existing § 30.710(a) that decision regarding reimbursement to a OWCP may contract for, or require the refers to the obsolete ‘‘Prospective beneficiary for out-of-pocket expenses is use of, specific providers for medicinal Payment System,’’ and instead referred final, to instead provide that OWCP will drugs. A claimant representative felt to the ‘‘Inpatient Prospective Payment issue a letter decision in such that the new language ‘‘[u]nless System’’ devised by CMS. A claimant circumstances. An advocacy group and otherwise specified by OWCP’’ is representative noted the change in two claimant representatives objected to ambiguous and requires further proposed § 30.710(a). However, since the new language in proposed explanation. The Department added that the commenter did not either support or § 30.702(d) concerning a provider’s language to clarify its discretionary oppose the proposed regulation or offer signature. However, this change was authority in this unsettled area of ideas for changes, no change was made made to conform with similar medical costs, and is not persuaded that to § 30.710(a) in the final rule based on requirements in other programs any change to that section is required in this comment. The same claimant administered by OWCP, and with the the final rule. The same claimant representative commented on existing requirements of CMS, as discussed representative also felt that the § 30.710(b), but the Department did not above in connection with the comments proposed language in the introductory propose any changes to this paragraph received by the Department on proposed text noting that OWCP may contract for, in the NPRM. Because the claimant § 30.416(a). Another claimant or require the use of, specific providers representative’s second comment did representative agreed with the change in for certain medications was a violation not refer to a change that was proposed proposed § 30.702(d) regarding OWCP’s of a claimant’s right to obtain his or her in the NPRM, no amendment was made issuance of a letter decision. Therefore, own physician. However, the proposed in the final rule with respect to this no changes were made to proposed language only stated that OWCP may comment. § 30.702(d) as a result of these four contract with or require the use of In the NPRM, the Department added comments. specific providers for certain a new section, proposed § 30.711, to medications; it did not state that explain its current practice of paying Medical Fee Schedule beneficiaries could be required to obtain hospitals for outpatient medical services In the NPRM, the Department treatment from specific physicians. according to Ambulatory Payment proposed amending existing § 30.705(a) Thus, no change was made to the Classifications based on the Outpatient to provide that ‘‘devices and supplies,’’ introductory text of § 30.709 in the final Prospective Payment System devised by in addition to ‘‘health services’’ as rule. CMS. To accommodate the addition of currently stated in that paragraph, are In the NPRM, proposed § 30.709(a) that new section, existing §§ 30.711, covered by the OWCP fee schedule. A clarified that the fee schedule for 30.712 and 30.713 appeared in the claimant representative agreed with the medicinal drugs applies whether the NPRM as proposed §§ 30.712, 30.713 Department’s change in proposed drugs are dispensed by a pharmacy or and 30.714. A claimant representative § 30.705(a). Therefore, no changes were by a doctor in his office. A claimant generally agreed with proposed made to that paragraph in the final rule. representative commented that she § 30.711, and suggested adding a The Department also proposed generally agreed with the proposed provision in proposed § 30.711 to state modifying existing § 30.705(b) to language in § 30.709(a), but asked that that an aggrieved party may petition for
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judicial review if OWCP denies § 30.715 to set out two new reasonable administrative discretion that need not payment for outpatient medical bases for excluding providers. In be further defined. Two of the services. The Department notes that a proposed § 30.715(i), a provider may be individual commenters asserted that claimant already has the ability to seek excluded for failing to inform OWCP of proposed § 30.715(j) will infringe on a judicial review of such a denial, and any change in its provider status, and in state’s authority to regulate licensed does not require a regulatory proposed § 30.715(j), a provider may be health care providers. However, OWCP acknowledgment of that ability. For that excluded for engaging in conduct is not now, and will not in the future, reason, no change was made to § 30.711 related to care found by OWCP to be monitoring a provider’s compliance in the final rule based on that comment. misleading, deceptive or unfair. A with state licensing and other regulatory Proposed § 30.712(a) clearly stated claimant representative suggested that requirements, and therefore no such that OWCP will not correct procedure or the Department add text, presumably in infringement exists. Accordingly, no diagnosis codes on submitted bills. the introductory paragraph of existing change was made to § 30.715(j) in the Rather, those bills will be returned to § 30.715, to state that OWCP will final rule based on these comments. the provider for correction because the exclude providers based on ‘‘substantial In the NPRM, the Department added responsibility for proper submission of relevant evidence,’’ and that providers a new paragraph, proposed § 30.716(c), bills lies with the provider. A claimant have the right to seek administrative to clarify that a provider may representative commented that the review. These suggestions, however, do voluntarily choose to be excluded Department’s proposed change in not relate to the proposed changes in without undergoing the exclusion § 30.712(a) may cause unnecessary existing § 30.715. Further, the process. That clarification was meant to delay. This requirement, however, is not Department notes that an excluded address situations where providers may new to this rulemaking and has been in provider already has the ability to simply agree to be excluded, and existence since the beginning of the request a hearing before an thereby avoid a possibly burdensome program. Therefore, since the administrative law judge as outlined in administrative exclusion process when, Department sees no reason to alter this existing §§ 30.720 through 30.723, and for example, they are facing criminal requirement, no change was made to to seek judicial review of such a charges unrelated to the provision of this paragraph in the final rule. The decision excluding them from the services to any EEOICPA beneficiaries. same claimant representative program. Thus, the suggested changes to A claimant representative suggested that commented on both proposed existing § 30.715 suggested by the the Department should state in §§ 30.712(b) and 30.713(a), but the commenter were not made in the final proposed § 30.716(c) that a provider Department did not propose any rule. may voluntarily exclude themselves changes to those provisions in the With respect to proposed § 30.715(i), from the program. Such clarification is NPRM. Because the claimant two health care providers relayed their unnecessary since the language in representative’s latter comments fears that the language in that proposed proposed § 30.716(c) states exactly what referred to regulatory text that was not paragraph might cause a provider to be the commenter suggested. Therefore, no changed in the NPRM, no amendment excluded for something as inadvertent change was made to that paragraph in was made in the final rule with respect as a mere administrative mishap. In the final rule. to those comments. addition, both of those health care Proposed § 30.717 reorganized Proposed § 30.713(a)(1) clarified that providers and an advocacy group existing § 30.717 into three separate the provider should make a request for requested that the Department clearly paragraphs to provide that the reconsideration of a fee determination to define the terms used in the text of that Department’s Office of Inspector the district office with jurisdiction of paragraph. The Department believes that General (DOL OIG) will be primarily the employee’s claim. A claimant a provider’s failure to inform OWCP that responsible for investigating all representative agreed with that change. it no longer satisfies all applicable potential exclusions of providers, Accordingly, no change was needed for Federal and state licensure and instead of the Regional Director as § 30.713(a)(1) in the final rule. In regulatory requirements is significant, provided in existing § 30.717. Proposed addition, proposed § 30.713(b) provided rather than a mere administrative § 30.717(a) stated that OWCP will that a Regional Director’s decision on a mishap, and thus a valid basis for forward exclusion-related information reduction in a provider’s fee is final. A exclusion. Also, the Department firmly to the DOL OIG. A claimant claimant representative objected to the believes that the grounds upon which it representative agreed with the changes Department’s addition in proposed may exclude a provider involve matters in proposed § 30.717(a). Another § 30.713(b), and suggested adding of administrative discretion that need claimant representative commented that language stating that the provider has not be further defined. Therefore, the exclusion matters should be handled by the right to file an objection with an Department is not persuaded that the Regional Director, not the DOL OIG, administrative law judge or in Federal proposed § 30.715(i) should be modified since the current regulations state that district court. The Department added in the final rule as requested by these the Regional Director will handle those the provision concerning the finality of commenters. matters. The Department acknowledged the Regional Director’s decision to As for proposed § 30.715(j), four in the preamble to the proposed rule § 30.713(b) to conform with similar individuals, one health care provider that this function was previously regulations in another program and a law firm believed that the handled by OWCP; however, OWCP has administered by OWCP, and is not wording in proposed § 30.715(j) was no investigatory arm and lacks resources persuaded to deviate from those similar overbroad and arbitrary. Two advocacy to carry out this responsibility. The regulations. For that reason, no change groups, the same and one other health Department continues to believe that the was made to § 30.713(b) in the final care provider and the law firm DOL OIG is in the best position to rule. suggested that the Department clearly handle such investigations. A health define the terms used in the text of that care provider commented that referral to Exclusion of Providers paragraph. As it noted above, the the DOL OIG will result in significant In the NPRM, the Department Department firmly believes that the and expensive adverse impacts on proposed adding two new paragraphs, grounds upon which it may exclude a legitimate providers. This commenter proposed § 30.715(i) and (j), to existing provider involve matters of did not provide any proof to validate the
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fear that such problems will occur, nor contain any time requirements. Two decision regarding exclusion will has this been OWCP’s experience in its health care providers commented that become final until the Director for administration of another compensation this language was confusing, and both of Energy Employees Occupational Illness program that already uses this those commenters suggested that no Compensation issues the decision in contemplated process. Another health timeframe for requesting information final form, while existing § 30.724(a) care provider commented that proposed should be imposed. The Department is provides that an administrative law § 30.717(a) lacked necessary details. not persuaded that the proposed judge’s recommended decision on However, that paragraph merely regulation is confusing, because both of exclusion becomes final if no objection announced that the DOL OIG will be these commenters have read it properly is filed. A claimant representative and a responsible for investigating all possible regarding the 20-day period for health care provider commented that exclusions of providers, and therefore requesting access. Regarding the they did not understand why the any further explanation of the process suggestion that no timeframe should be Department modified this section in the involved would be superfluous. For the imposed, the Department thinks that it NPRM. That same health care provider reasons stated above, the Department is is reasonable for a provider to decide, objected to the language in proposed not persuaded that any change is within 20 days of receiving the letter of § 30.724(h) and argued that it gave the needed in § 30.717(a); therefore, no intent, whether or not it wants to review Director authority over administrative change was made in the final rule. any information in the record. Allowing law judges and the DOL OIG. The In proposed § 30.717(c), the these requests to be made at any time Department disagrees that the proposed Department described the contents of would likely result in an inefficient and changes will give the Director any the written report that the DOL OIG slower administrative review process, managerial authority over would need to prepare for OWCP if it which would benefit neither the administrative law judges and/or the determined that there was reasonable provider nor OWCP. Thus, no DOL OIG, and notes again that it added cause to believe that any violations amendments were made to those that language in order to conform the enumerated in proposed § 30.715 had provisions in the final rule. In the provision to similar regulations in occurred. The law firm and a health care NPRM, the Department added a new another program administered by provider suggested wording changes to paragraph, proposed § 30.719(d), to OWCP. Therefore, no changes were proposed § 30.717(c), but those changes allow OWCP 30 days to answer the made to that paragraph in the final rule. would inadvisably limit the amount of provider’s response to OWCP’s letter of In the NPRM, the Department discretion that the Department feels is intent, and to allow the provider 15 proposed adding paragraph (a)(4) to necessary in this process. Therefore, the days to reply to OWCP’s answer. A existing § 30.725 to state that OWCP suggested changes to this paragraph claimant representative suggested that will notify the state or local authority were not made in the final rule. the Department allow OWCP 60 days, responsible for licensing or certifying Proposed § 30.718(a) through (f) instead of 30 days, to answer a the excluded party of the exclusion. A contained minor wording changes to the provider’s response in proposed claimant representative questioned existing language in those paragraphs § 30.719(d). However, the Department whether OWCP has the authority to do with respect to how OWCP will notify made this change to conform with so; the Department is confident that a provider of its intent to exclude them, similar regulations in another program OWCP has such authority, as would any in order to conform the existing administered by OWCP. For that reason, member of the public with knowledge regulatory language with similar and since the claimant representative relevant to the professional deficiencies regulations in another program gave no reason for her suggestion, no of any licensed provider. A health care administered by OWCP. A health care changes were made in § 30.719 in the provider asked the Department to provider asked the Department to add final rule based on her comment. explain the difference between specific details in proposed § 30.718 In proposed §§ 30.720 through 30.723, automatic and non-automatic exclusion, about what will happen to the clients of the Department made minor wording but this comment does not pertain to the excluded providers, and whether OWCP changes to the existing language in change proposed in § 30.725(a)(4). will alert other home health care those sections that addresses how an Because the health care provider’s providers that a specific provider was excluded provider can request a comment did not refer to a change that excluded from the program. However, hearing, how hearings are assigned and was proposed in the NPRM, no the above comment was outside the scheduled, how subpoenas or advisory amendment was made to § 30.725(a)(4) scope of the changes in proposed opinions are obtained and how an § 30.718. Because the comment goes in the final rule. administrative law judge will conduct a Proposed § 30.726(c) corrected beyond the change in the NPRM, no hearing and issue a recommended outdated terminology by replacing the amendment was made in the final rule decision, respectively. A claimant word ‘‘argument’’ with ‘‘presentation.’’ with respect to this comment. In representative suggested that the A claimant representative commented proposed § 30.718(e), the Department Department’s changes in those proposed that the change was unnecessary. The proposed allowing a provider 60 days, sections were unnecessary. However, Department agrees that this change is instead of 30 days as stated in current these sections were amended to conform minor; however, it was made to conform § 30.718(e), to respond to a letter of with similar regulations in another to similar regulations in another intent. A claimant representative agreed program administered by OWCP. Thus, program administered by OWCP. For with that provision. Under these the proposed changes are necessary, and that reason, no changes were made to circumstances, no changes were made no changes were made to those sections § 30.726(c) in the final rule in response in § 30.718(e) based on the comment. in the final rule as a result of this to this single comment. Proposed § 30.719(c) stated that ‘‘[t]he comment. provider may inspect or request copies Proposed § 30.724(a) through (h) Subpart I—Wage-Loss Determinations of information in the record at any time modified the manner in which the Under Part E of EEOICPA prior to the deciding official’s decision administrative law judge’s by making such request to OWCP within recommended decision on exclusion General Provisions 20 days of receipt of the letter of intent,’’ becomes final. In particular, proposed In proposed § 30.800(c), the while existing § 30.719(c) does not § 30.724(h) stated that no recommended Department updated a cross-reference to
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reflect the changed location of the groups objected to proposed § 30.805(b), existing § 30.806, which describes the regulatory provision defining the term because they were concerned that the submission of factual evidence of wage- covered illness from § 30.5(r) to decision to discontinue development loss by claimants. A claimant § 30.5(s). A claimant representative would not be subject to administrative representative submitted a comment in commented that the cross-reference review if OWCP administratively closed which she questioned whether the change in § 30.800(c) was unnecessary. such a claim for wage-loss benefits changes in proposed § 30.807 were Nonetheless, because this change was without issuing recommended and final necessary. These regulatory changes not needed to reflect the changed location of decisions. However, the text of only reorganize and clarify the existing the regulatory provision, no change was proposed § 30.805(b) nowhere suggested regulatory description of the process for made to § 30.800(c) in the final rule. The that this would occur. The Department developing wage-loss claims, but also Department proposed slight has added text to § 30.805(b) in the final explain how OWCP has interpreted and modifications and additions to the rule to make clear that a decision would applied the complex provisions of the definitions related to wage-loss benefits issue. statute. Because of this, and also available under Part E contained in In the NPRM, proposed § 30.806 was because the commenter did not suggest proposed § 30.801. A claimant substantially similar to current a viable alternative, no change to representative generally agreed with § 30.805(b), except that it provided an § 30.807 was made in the final rule in those changes, and specifically asserted explanation of what OWCP would response to this comment. that the regulatory definition of wages in consider to be ‘‘rationalized’’ medical proposed § 30.801(g) should refer evidence, i.e., medical evidence based Determinations of Average Annual explicitly to the ‘‘time of injury.’’ on a physician’s fully explained and Wage and Percentages of Loss However, because the term ‘‘time of reasoned decision, which a covered Part In the NPRM, the Department injury’’ is only relevant to a E employee must submit in order to proposed revising existing § 30.810 to determination whether an individual establish that the claimed wage-loss at state that it will calculate the average has forfeited his or her entitlement issue was causally related to the annual wage of a covered Part E under section 7385i(a) of EEOICPA, and employee’s covered illness. employee using months instead of because the definition of wages needs to Additionally, proposed § 30.806 quarters, to be consistent with proposed be applicable to potentially multiple memorialized OWCP’s established § 30.801(a). Also, proposed § 30.811(a) points of time in a single claim, no policy and Federal case law that wage- combined the text from paragraphs (a) change to § 30.801 was made in the final loss sustained due to something other and (b) in existing § 30.811, since the rule. than a covered illness is not current text in those paragraphs is compensable under Part E of EEOICPA. Evidence of Wage-Loss repetitive. A claimant representative See Trego v. U.S. Dep’t of Labor, 681 questioned the need for the admittedly Proposed § 30.805(a) set out in detail F.Supp. 2d 894 (E.D. Tenn. 2009). Two minor conforming changes in proposed the criteria, derived from the statute at advocacy groups, one claimant §§ 30.810 and 30.811. However, the section 7385s–2(a)(2)(A) of EEOICPA representative and the Advisory Board proposed minor changes to existing that claimants must establish in order to suggested that several terms used in the § 30.810 were needed to conform with be eligible for wage-loss benefits under text describing the type of medical other proposed changes in subpart I, Part E. A claimant representative evidence a claimant must submit to and repetitive text was removed from suggested that proposed § 30.805(a) prove that he or she lost wages in the proposed § 30.811 to make it clearer. wrongly placed the burden of proof on alleged trigger month needed to be Under these circumstances, the claimants to establish their entitlement defined further or eliminated, and Department did not make any changes to wage-loss benefits, because she suggested that the type of medical to §§ 30.810 and 30.811 in the final rule believed that once OWCP determines evidence described in proposed § 30.806 with respect to this comment. that a claimant is a covered employee would be difficult for claimants to who contracted a covered illness, ‘‘then obtain. It should be noted, however, that Subpart J—Impairment Benefits Under the employee claimant is mandated to proposed § 30.806 does not alter or Part E of EEOICPA receive wage-loss’’ benefits. However, increase the existing requirement for the General Provisions this comment does not recognize that submission of this medical evidence in there are clearly discernable eligibility current § 30.805(b). Rather, it gives a In the NPRM, proposed § 30.901(a) requirements for wage-loss benefits in fuller and more helpful description of deleted the word ‘‘minimum’’ from the section 7385s–2(a)(2)(A) beyond those the type of medical evidence necessary, statutory term ‘‘minimum impairment set out in section 7385s–4 of EEOICPA, which is useful to claimants seeking to rating’’ that appears in the existing and that it is the claimant’s burden, as obtain these benefits. Accordingly, no paragraph, and proposed § 30.901(b) stated by the U.S. Supreme Court, to changes were made to § 30.806 in the deleted the same statutory term entirely. provide evidence to meet the final rule. In addition, the Department proposed requirements in both of those sections of Proposed new § 30.807 was added to deleting the statement that appears in EEOICPA. Therefore, no change was accommodate the changes described existing § 30.901(b) that OWCP will made to § 30.805(a) in the final rule as above in proposed § 30.806. Proposed determine impairment ratings under a result of this comment. § 30.807(a) was substantially similar to EEOICPA in accordance with the AMA’s Proposed § 30.805(b) explained that existing § 30.805(a), except that the Guides. A claimant representative and OWCP may discontinue development of provision stated that OWCP may rely an advocacy group objected to the a covered Part E employee’s request for upon annual, as well as quarterly, wage deletion of the word ‘‘minimum’’ in wage-loss benefits at any point when the information that has been reported to proposed § 30.901(a), and to the claimant is unable to meet his or her the Social Security Administration. deletion of the term ‘‘minimum burden of proof to submit factual and/ Also, the Department sought to move impairment rating’’ in (b), and pointed or medical evidence to establish the language defining ‘‘wages’’ that appears out that this language appears in the criteria specified in proposed in current § 30.805(a) to a new statutory description of impairment § 30.805(a). Two claimant § 30.801(g). And finally, proposed ratings found in 42 U.S.C. 7385s– representatives and four advocacy § 30.807(b) was substantially similar to 2(a)(1)(A)(i). However, as the
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Department pointed out when it proposed § 30.908(b) and (c) in the but did not otherwise comment on any published proposed § 30.901(a) and (b), NPRM that were no different from aspect of the proposed rule (92 from the word ‘‘minimum’’ has no actual existing § 30.908(b) and (c). Since the individuals, 2 from unknown persons or meaning in the context of rating only change to the existing paragraphs organizations, and 1 from a health care permanent impairment, nor does it that were made in proposed § 30.908(b) provider), while an additional 4 timely meaningfully describe or further modify and (c) was the deletion of the words commenters requested that the ‘‘impairment rating.’’ Put simply, there ‘‘minimum,’’ none of the changes Department extend the comment period is no difference between a ‘‘minimum suggested by this second group of and also commented on aspects of the impairment rating’’ and an ‘‘impairment comments were made to § 30.908(b) and proposed rule (1 from the same health rating’’ when a claimant has reached (c) in the final rule. care provider and 1 from another health maximum medical improvement. The care provider, 1 from an individual and IV. Miscellaneous Rulemaking Issues same advocacy group, a second 1 from a labor organization). The advocacy group, a claimant During this rulemaking process, Department also received 1 untimely representative and a health care several extraneous issues arose that are request from an individual requesting provider also objected to the deletion of not addressed in the above section-by- an extension. A significant portion of the statement that OWCP will determine section analysis. The Department’s these requests were identical or nearly impairment ratings under EEOICPA in analysis of the requests it received to identical ‘‘form letters’’ that generally accordance with the AMA’s Guides, and extend the comment periods, the asked for more time for physicians to asserted that this change was confusing comment it received from the Advisory review the proposed regulations, and and contrary to section 7385s–2(b). The Board on issues that were either outside some asked the Department to hold Department agrees, but notes that the the Advisory Board’s scope of duties Town Hall meetings. The few remaining deletion in question was made at the under section 7385s–16(b)(1) of requesters asked the Department to wait insistence of the Office of the Federal EEOICPA or not addressed in any aspect until the Advisory Board was seated Register, which deemed it to be a of the proposed changes, and its before issuing final regulations. prohibited incorporation of material by communications with interested parties Comments From the Advisory Board on reference. Accordingly, for the reasons about the NPRM outside of the Toxic Substances and Worker Health stated above, no changes were made to rulemaking process follows: On April 5, 2016, the Department § 30.901(a) and (b) in the final rule Requests To Extend the Comment reopened the comment period for the based on the above comments. Period Proposed new § 30.902(b) added text NPRM through May 9, 2016, to afford to describe OWCP’s longstanding policy Prior to expiration of the original interested parties the opportunity to of proportionately reducing an January 19, 2016 deadline to submit further review the NPRM, and to afford impairment award in circumstances comments concerning the NPRM, the the new Advisory Board the opportunity when such award is payable based on a Department received 33 timely to review the NPRM at its public whole person impairment rating, and at comments that requested that the meeting held April 26, 27 and 28, 2016. least one of the elements of the award Department extend the comment period, Prior to the meeting, the Advisory Board is subject to a reduction under existing but did not otherwise comment on any received legal guidance with respect to §§ 30.505(b) and/or 30.626. A claimant aspect of the proposed rule (24 from which of the sections of the NPRM were representative objected to the new different individuals, 1 of whom within the scope of its duties, as paragraph, and mistakenly assumed that submitted 2 separate comments, 3 from specified in § 7385s–16(b)(1) of these reductions would be made advocacy groups, 2 from claimant EEOICPA, and which other sections fell without providing a claimant with representatives, 1 from a health care outside its scope of duties. During the notice and an opportunity to respond. provider and 1 from a member of reopened comment period, the Appropriate process will be provided, Congress), while an additional 3 timely Department received 180 comments, and therefore no changes were made to comments requested that the including 1 from the Advisory Board. § 30.902(b) in the final rule. Department extend the comment period The Department thanks the Advisory and also commented on aspects of the Board for its work. The Advisory Board Medical Evidence of Impairment proposed rule (2 from individuals and 1 addressed a number of aspects of the Proposed § 30.908(b) and (c) replaced from a health care provider). Most of the proposed regulations in its comment. the term ‘‘minimum impairment rating’’ commenters asked that the comment Section 7385s–16(b)(1) of EEOICPA sets with ‘‘impairment rating,’’ to be period be extended to allow the out the scope of the Board’s advisory consistent with the changes in proposed Advisory Board to be seated and have duties and, consequently, the §§ 30.102(a), 30.901 and 30.902. A the opportunity to comment on the Department’s bounds on formal claimant representative objected to that proposed rule. The remainder of these consideration of that advice. Some of change, for the same reasons she gave in requesters asked for an extension for the issues raised by the Board addressed support of her comments regarding reasons such as the comment period sections of the regulation that fell proposed § 30.901. However, and as was disrupted by several holidays, and within its duties: §§ 30.206(a), noted above regarding those comments, because the elderly and sick population 30.231(b), 30.232(a)(1) and (2), 30.405(b) the word ‘‘minimum’’ serves no actual interested in the program needed more and (c), 30.509(c) and 30.806. The purpose in the determination of a time to review the proposed changes. Department discussed these comments claimant’s impairment rating. On January 19, 2016, the Department in the section-by-section analysis set Accordingly, and as it did above in extended the comment period another forth above. The Advisory Board also connection with proposed § 30.901, the 30 days through February 18, 2016. went outside its statutory mandate to Department did not make any changes During the 30-day extended period, the submit comments on proposed to § 30.908(b) and (c) in the final rule Department received requests that the §§ 30.5(j), 30.5(x)(2)(iii), 30.5(ee), based on this comment. The same comment period be extended yet further 30.112(b)(3), 30.231(a) and 30.805(a)(3). claimant representative, as well as a from 99 commenters. Of those 99 Although the Department did not health care provider and two advocacy commenters, 95 requested that the discuss this second set of Advisory groups, commented on other aspects of Department extend the comment period Board comments in the section-by-
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section analysis, the issues raised in VI. Statutory Authority IX. Paperwork Reduction Act those comments were also raised in Section 7384d of EEOICPA provides The Paperwork Reduction Act of 1995 other timely comments and thus were general statutory authority, which E.O. (PRA), 44 U.S.C. 3501 et seq., and its fully addressed. Lastly, the Advisory 13179 allocates to the Secretary, to implementing regulations, 5 CFR part Board commented on existing prescribe rules and regulations 1320, require that the Department § 30.230(d)(2)(iii) and aspects of necessary for administration of Part B of consider the impact of paperwork and proposed § 30.231(b) that were not the Act. Section 7385s–10 provides the other information collection burdens included in the NPRM, and therefore no Secretary with the general statutory imposed on the public. A Federal discussion of that comment was authority to administer Part E of the Act. agency generally cannot conduct or included in the Department’s section- Sections 7384t, 7384u and 7385s8 sponsor a collection of information, and by-section analysis. provide the specific authority regarding the public is generally not required to medical treatment and care, including Communications Outside of the respond to an information collection, authority to determine the Rulemaking Process unless it is approved by the Office of appropriateness of charges. The Federal Management and Budget (OMB) under Meetings or discussions with one or Claims Collection Act of 1966, as the PRA and displays a currently valid more parties about NPRMs can take amended (31 U.S.C. 3701 et seq.), OMB Control Number. In addition, place outside of the comment process, authorizes imposition of interest charges notwithstanding any other provisions of provided that the agency properly and collection of debts by withholding law, no person may generally be subject documents the particulars of those funds due the debtor. to penalty for failing to comply with a communications. However, such VII. Executive Orders 12866 and 13563 collection of information that does not discussions are not a substitute for display a valid Control Number. See 5 E.O. 12866 directs agencies to assess submission of public comments, and the CFR 1320.5(a) and 1320.6. all costs and benefits of available content of those communications cannot This final rule contains information regulatory alternatives and, if regulation collection requirements subject to the be considered in preparation of the final is necessary, to select regulatory rule. PRA. The information collection approaches that maximize net benefits requirements in §§ 30.700, 30.701 and During the comment periods for this (including distributive impacts, equity, 30.702 of this final rule, which relate to NPRM, DOL personnel had a total of 16 and potential economic, environmental, information required to be submitted by instances wherein they discussed public health and safety effects). E.O. claimants and medical providers in aspects of the NPRM with interested 13563 is supplemental to and reaffirms connection with the processing of bills, individuals and groups outside of the the principles, structures, and were both submitted to and approved by formal comment process. Specifically, definitions governing regulatory review OMB under the PRA, and the currently DOL personnel attended four face-to- as established in E.O. 12866. approved collections in OMB Control This rule has been designated a face meetings with congressional staff at Nos. 1240–0007, 1240–0019, 1240– ‘‘significant regulatory action’’ although the request of the staffers and spoke 0021, 1240–0044 and 1240–0050 will not economically significant under with a member of the press on two not be affected by any of the changes section 3(f) of E.O. 12866. The rule is separate occasions. In addition, three made in this final rule. No comments not economically significant because it advocacy groups, two claimant were received concerning the will not have an annual effect on the representatives, two NIOSH employees information collection burdens in this and one health care provider contacted economy of $100 million or more. The Department believes that this rule is first group of sections, and therefore no DOL personnel on matters relating to changes relating to those burdens were the NPRM. Also, on April 4, 2016, DOL merely an update to the existing regulations to reflect the program’s made in this final rule. The information personnel provided a briefing on the collection requirements in §§ 30.100, NPRM to all members of the Advisory current processes, and to incorporate the policy and procedural changes that 30.101, 30.102, 30.103, 30.112, 30.113, Board, and the Advisory Board 30.206, 30.207, 30.213, 30.222, 30.231, discussed the NPRM at its public have been implemented since the existing regulations were issued in 30.232 and 30.416 of this final rule were meeting held April 26, 27 and 28, 2016. also previously submitted to and Although those specific discussions 2006. Thus, the Department does not approved by OMB under the PRA, and were not considered in preparation of were assigned OMB Control No. 1240– this final rule, the subjects and sections believe that any of the above significant policies in the final rule will result in 0002. The information collection of the NPRM that were discussed in requirements in this second group of those communications were addressed increased or decreased administrative costs to either the program or the public, sections will not be affected by any of by the timely comments that are the substantive changes made in this discussed above. or any increase in benefits paid. This rule has been reviewed by the Office of final rule; no comments concerning the V. Publication in Final Management and Budget. information collection burdens in this second group were received, and The Department has determined, VIII. Regulatory Flexibility Act therefore no changes relating to those pursuant to 5 U.S.C. 553(b)(B), that good This rule has been reviewed in burdens were made in this final rule. cause exists for waiving public accordance with the Regulatory However, in the NPRM, the comment on this final rule with respect Flexibility Act of 1980, as amended by Department noted that proposed to the following changes: (1) Corrections the Small Business Regulatory sections 30.114(b)(3) and 30.403, which, of typographical errors; and (2) minor Enforcement Fairness Act of 1996, 5 as discussed above, require parties to wording changes and clarifications that U.S.C. 601–612. The Department has submit information OWCP needs before do not affect the substance of the concluded that the rule does not involve it can accept and then provide medical regulations. For these changes, regulatory and informational benefits for a claim, constituted publication of a proposed rule and requirements regarding businesses, collections of information within the solicitation of comments would be organizations and governmental meaning of the PRA that were being neither necessary nor fruitful. jurisdictions subject to the regulation. added to OMB Control. No. 1240–0002.
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80 FR 72302–72304. The NPRM the information collection instruments X. Unfunded Mandates Reform Act specifically invited comments regarding at issue. The Department is submitting the information collections and notified ICRs to OMB for the information Title II of the Unfunded Mandates the public of their opportunity to file collections to revise and update them Reform Act of 1995 (2 U.S.C. 1531 et such comments with both OMB and the for this final rule. seq.) directs agencies to assess the Department. Id. On the same date the The information collections in this effects of Federal regulatory actions on NPRM was published, the Department rule may be summarized as follows. The state, local, and tribal governments, and submitted a series of Information number of responses and burden the private sector, ‘‘other than to the Collection Requests (ICRs) to OMB for estimates listed are not specific to the extent that such regulations incorporate approval in order to update the Energy program; instead, the estimates requirements specifically set forth in information collections to be consistent are cumulative for all OWCP- law.’’ For purposes of the Unfunded with the proposed rule. On January 19, administered compensation programs Mandates Reform Act, this final rule 2016, OMB concluded its reviews by that collect this information. does not include any Federal mandate asking the Department to submit a 1. Title of Collection: Energy that may result in increased annual summary of all comments received on Employees Occupational Illness expenditures in excess of $100 million the proposed information collections Compensation Program Act Forms. by state, local or tribal governments in and identify any changes made in OMB Control Number: 1240–0002. the aggregate, or by the private sector. response to these comments. Id. Total Estimated Number of XI. Executive Order 13132 (Federalism) The Department received comments Responses: 60,294. on the substance of proposed sections Total Estimated Annual Time Burden: The Department has reviewed this 30.114(b)(3) and 30.403; those 20,359 hours. final rule in accordance with E.O. 13132 comments are fully addressed in the Total Estimated Annual Other Costs regarding federalism, and has above section-by-section analysis Burden: $28,989.48. determined that it does not have entitled ‘‘Comments on the Proposed 2. Title of Collection: Claim for ‘‘federalism implications.’’ The final Regulations.’’ The Department also Medical Reimbursement Form. rule does not ‘‘have substantial direct received 18 comments about the OMB Control Number: 1240–0007. effects on the States, on the relationship information collections in proposed Total Estimated Number of between the national government and section 30.403, but no comments on the Responses: 34,564. the States, or on the distribution of information collections in proposed Total Estimated Annual Time Burden: power and responsibilities among the § 30.114(b)(3) were received. The 5,738 hours. various levels of government.’’ comments regarding proposed § 30.403 Total Estimated Annual Other Costs were submitted by 17 different Burden: $59,450. XII. Executive Order 13175 commenters (one of whom submitted 3. Title of Collection: Uniform Billing (Consultation and Coordination With two separate comments). Ten Form (OWCP–04). Indian Tribal Governments) physicians, two individuals, three OMB Control Number: 1240–0019. The Department has reviewed this health care providers and one claimant Total Estimated Number of final rule in accordance with E.O. 13175 Responses: 259,865. representative submitted comments in and has determined that it does not which they stated that the information Total Estimated Annual Time Burden: have ‘‘tribal implications.’’ The final collection burdens of the proposed 29,466. rule does not ‘‘have substantial direct Form EE–17A (which asks the claimant Total Estimated Annual Other Costs effects on one or more Indian tribes, on to provide OWCP with the name and Burden: $0. the relationship between the Federal contact information for their treating 4. Title of Collection: Provider government and Indian tribes, or on the physician) and Form EE–17B (which Enrollment Form. distribution of power and asks the treating physician to verify that OMB Control Number: 1240–0021. responsibilities between the Federal a timely a face-to-face examination took Total Estimated Number of government and Indian tribes.’’ place and to submit a Letter of Medical Responses: 64,325. Necessity supporting the requested Total Estimated Annual Time Burden: XIII. Executive Order 12988 (Civil services) were excessive. However, the 8,555 hours. Justice Reform) Department notes that these comments Total Estimated Annual Other Costs are based on the erroneous supposition Burden: $33,449. This final rule has been drafted and that these two new forms will add 5. Title of Collection: Health reviewed in accordance with E.O. 12988 additional burdens on the public and Insurance Claim Form. and will not unduly burden the Federal delay the provision of necessary OMB Control Number: 1240–0044. court system. The regulation has been services, when in fact they are intended Total Estimated Number of written so as to minimize litigation and to standardize and thus replace the Responses: 3,381,232. provide a clear legal standard for current individualized method Total Estimated Annual Time Burden: affected conduct, and has been reviewed (currently not accounted for under the 321,455 hours. carefully to eliminate drafting errors and PRA) for OWCP’s required pre- Total Estimated Annual Other Costs ambiguities. authorization process which can, and Burden: $0. XIV. Executive Order 13045 (Protection often does, take longer than all parties 6. Title of Collection: Pharmacy of Children From Environmental, would wish. One individual commenter Billing Requirements. Health Risks and Safety Risks) praised the idea behind the creation of OMB Control Number: 1240–0050. proposed Forms EE–17A and EE–17B, Total Estimated Number of In accordance with E.O. 13045, the noting that standardizing the process Responses: 1,381,903. Department has evaluated the would likely bring a measure of order to Total Estimated Annual Time Burden: environmental health and safety effects an otherwise often chaotic process. The 24,203 hours. of this rule on children, and has Department is in agreement with this Total Estimated Annual Other Costs determined that the final rule will have last commenter, and made no changes to Burden: $0. no effect on children.
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XV. Executive Order 13211 (Actions ■ 3. Amend § 30.2 by revising paragraph (2) A written diagnosis of silicosis is Concerning Regulations That (b) to read as follows: made by a licensed physician and is Significantly Affect Energy Supply, accompanied by: Distribution, or Use) § 30.2 In general, how have the tasks associated with the administration of * * * * * In accordance with E.O. 13211, the EEOICPA claims process been assigned? (w) Department of Energy or DOE includes the predecessor agencies of Department has evaluated the effects of * * * * * DOE back to the establishment of the this final rule on energy supply, (b) However, HHS has exclusive Manhattan Engineer District on August distribution or use, and has determined control of the portion of the claims 13, 1942. that it is not likely to have a significant process under which it provides adverse effect on them. (x) * * * reconstructed doses for certain (2) An individual who is or was XVI. Executive Order 13771 (Reducing radiogenic cancer claims (see § 30.115), employed at a DOE facility by: Regulation and Controlling Regulatory which it delegated to the National (i) An entity that contracted with the Costs) Institute for Occupational Safety and DOE to provide management and This rule is not subject to the Health (NIOSH) in 42 CFR part 82. HHS operating, management and integration, requirements of E.O. 13771 because this also has exclusive control of the process or environmental remediation at the rule results in no more than de minimis for designating classes of employees to facility; costs. This final rule simply updates be added to the Special Exposure Cohort (ii) A contractor or subcontractor that some of the provisions governing under Part B of the Act, and has provided services, including EEOICPA transfers to ensure the promulgated regulations governing that construction and maintenance, at the program operates properly and process at 42 CFR part 83. Finally, HHS facility; or efficiently. has promulgated regulations at 42 CFR (iii) A civilian employee of a state or part 81 that set out guidelines that Federal government agency if the List of Subjects in 20 CFR Part 30 OWCP follows when it assesses the agency employing that individual is Administrative practice and compensability of an employee’s found to have entered into a contract procedure, Cancer, Claims, Kidney radiogenic cancer (see § 30.213). DOE with DOE for the provision of one or diseases, Leukemia, Lung diseases, and DOJ must, among other things, more services it was not statutorily Miners, Radioactive materials, Tort notify potential claimants and submit obligated to perform, and DOE claims, Underground mining, Uranium, evidence that OWCP deems necessary compensated the agency for those Workers’ compensation. for its adjudication of claims under services. The delivery or removal of EEOICPA (see §§ 30.105, 30.112, 30.206, Text of the Rule goods from the premises of a DOE 30.212 and 30.221). facility does not constitute a service for For the reasons stated in the ■ 4. Amend § 30.5 as follows: the purposes of determining a worker’s preamble, the Department of Labor ■ a. Revise paragraphs (c)(2)(i) and (i); coverage under this paragraph (x). amends 20 CFR part 30 as follows: ■ b. Redesignate paragraphs (ii) and (jj) * * * * * PART 30—CLAIMS FOR as paragraphs (kk) and (ll) and (ee) Physician includes surgeons, COMPENSATION UNDER THE paragraphs (j) through (hh) as podiatrists, dentists, clinical ENERGY EMPLOYEES paragraphs (k) through (ii) and, psychologists, optometrists, OCCUPATIONAL ILLNESS respectively; chiropractors and osteopathic COMPENSATION PROGRAM ACT OF ■ c. Add new paragraphs (j) and (jj); practitioners, within the scope of their 2000, AS AMENDED ■ d. Revise newly redesignated practice as defined by state law. paragraphs (k)(2) introductory text, (w), Physician assistants and nurse ■ 1. The authority citation for part 30 is (x)(2), (ee), (gg) introductory text; and practitioners are excluded from this revised to read as follows: (ii). definition. The services of chiropractors Authority: 5 U.S.C. 301; 31 U.S.C. 3716 The revisions and additions read as that may be reimbursed are limited to and 3717; 42 U.S.C. 7384d, 7384t, 7384u and follows: treatment consisting of manual 7385s–10; Executive Order 13179, 65 FR manipulation of the spine to correct a 77487, 3 CFR, 2000 Comp., p. 321; Secretary § 30.5 What are the definitions used in this subluxation as demonstrated by x-ray to part? of Labor’s Order No. 10–2009, 74 FR 58834. exist. ■ 2. Revise § 30.1 to read as follows: * * * * * * * * * * (c) * * * § 30.1 What rules govern the (gg) Specified cancer means: (2)(i) An individual employed at a administration of EEOICPA and this * * * * * facility that NIOSH reported had a chapter? (ii) Time of injury is defined as potential for significant residual In accordance with EEOICPA, follows: Executive Order 13179 and Secretary’s contamination outside of the period (1) For an employee’s claim, this term Order No. 10–2009, the primary described in paragraph (c)(1) of this means: responsibility for administering the Act, section; (i) In regard to a claim arising out of except for those activities assigned to * * * * * exposure to beryllium or silica, the last the Secretary of Health and Human (i) Beryllium vendor means the date on which a covered Part B Services (HHS), the Secretary of Energy specific corporations and named employee was exposed to such and the Attorney General, has been predecessor corporations listed in substance in the performance of duty in delegated to the Director of the Office of section 7384l(6) of the Act and any accordance with sections 7384n(a) or Workers’ Compensation Programs other entities designated as such by 7384r(c) of the Act; (OWCP). Except as otherwise provided DOE on December 27, 2002. (ii) In regard to a claim arising out of by law, the Director of OWCP and his (j) Beryllium vendor facility means a exposure to radiation under Part B, the or her designees have the exclusive facility owned and operated by a last date on which a covered Part B authority to administer, interpret and beryllium vendor. employee was exposed to radiation in enforce the provisions of the Act. (k) * * * the performance of duty in accordance
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with section 7384n(b) of the Act or, in 1 is true, and must inform OWCP of any (e) For those claims under Part E of the case of a member of the Special subsequent changes to that information. EEOICPA that were originally filed with Exposure Cohort, the last date on which * * * * * DOE as claims for assistance under the member of the Special Exposure (d) For those claims under Part E of former section 7385o of EEOICPA Cohort was employed at the Department EEOICPA that were originally filed with (which was repealed on October 28, of Energy facility or the atomic weapons DOE as claims for assistance under 2004), a claim is considered to be employer facility at which the member former section 7385o of EEOICPA ‘‘filed’’ on the date that the survivor was exposed to radiation; or (which was repealed on October 28, mailed his or her claim to DOE, as (iii) In regard to a claim arising out of 2004), a claim is considered to be determined by postmark or other exposure to a toxic substance, the last ‘‘filed’’ on the date that the employee carrier’s date marking, or on the date date on which a covered Part E mailed his or her claim to DOE, as that the claim was received by DOE, employee was employed at the determined by postmark or other whichever is the earliest determinable Department of Energy facility or RECA carrier’s date marking, or on the date date. However, in no event will a claim section 5 facility, as appropriate, at that the claim was received by DOE, referred to in this paragraph be which the exposure took place. whichever is the earliest determinable considered to be ‘‘filed’’ earlier than (2) For a survivor’s claim, the date of date. However, in no event will a claim October 30, 2000. the employee’s death is the time of referred to in this paragraph be * * * * * injury. considered to be ‘‘filed’’ earlier than ■ 7. Amend § 30.102 by revising (jj) Time of payment or payment October 30, 2000. paragraph (a) to read as follows: means the date that a paper check ■ 6. Amend § 30.101 by revising paragraphs (a), (d) introductory text, § 30.102 In general, how does an employee issued by the Department of the file a claim for additional impairment or Treasury was received by the payee or (d)(1) and (e) to read as follows: wage-loss under Part E of EEOICPA? by someone who was legally able to act § 30.101 In general, how is a survivor’s (a) An employee previously awarded for the payee, or the date the claim filed? impairment benefits by OWCP may file Department of the Treasury made an (a) A survivor of an employee must a claim for additional impairment Electronic Funds Transfer to the payee’s file a claim for compensation in writing benefits. Such claim must be based on financial institution. with OWCP. Form EE–2 should be used an increase in the employee’s * * * * * for this purpose, but any written impairment rating attributable to the ■ 5. Amend § 30.100 by revising communication that requests survivor covered illness or illnesses from the paragraphs (a), (c) introductory text, benefits under the Act will be impairment rating that formed the basis (c)(1) and (d) to read as follows: considered a claim. It will, however, be for the last award of such benefits by necessary for a survivor to submit a OWCP. OWCP will only adjudicate § 30.100 In general, how does an employee Form EE–2 for OWCP to fully develop claims for such an increased rating that file an initial claim for benefits? the claim. Copies of Form EE–2 may be are filed at least two years from the date (a) To claim benefits under EEOICPA, obtained from OWCP or on the internet of the last award of impairment benefits. an employee must file a claim in writing at http://www.dol.gov/owcp/energy/ However, OWCP will not wait two years with OWCP. Form EE–1 should be used index.htm. The survivor must sign the before it will adjudicate a claim for for this purpose, but any written written claim that is filed with OWCP, additional impairment that is based on communication that requests benefits but another person may present the an allegation that the employee under EEOICPA will be considered a claim to OWCP on the survivor’s behalf. sustained a new covered illness. claim. It will, however, be necessary for Although only one survivor needs to file * * * * * an employee to submit a Form EE–1 for a claim under this section to initiate the ■ 8. Amend § 30.103 by revising OWCP to fully develop the claim. development process, OWCP will paragraph (b) to read as follows: Copies of Form EE–1 may be obtained distribute any monetary benefits from OWCP or on the internet at http:// payable on the claim among all eligible § 30.103 How does a claimant make sure www.dol.gov/owcp/energy/index.htm. surviving beneficiaries who have filed that OWCP has the evidence necessary to process the claim? The employee must sign the written claims with OWCP. claim that is filed with OWCP, but * * * * * * * * * * (b) Copies of the forms listed in this another person may present the claim to (d) Except as provided in paragraph section are available for public OWCP on the employee’s behalf. (e) of this section, a survivor’s claim is inspection at the U.S. Department of * * * * * considered to be ‘‘filed’’ on the date that Labor, Office of Workers’ Compensation (c) Except as provided in paragraph the survivor mails his or her claim to Programs, Washington, DC 20210. They (d) of this section, a claim is considered OWCP, as determined by postmark or may also be obtained from OWCP to be ‘‘filed’’ on the date that the other carrier’s date marking, or the date district offices and on the internet at employee mails his or her claim to that the claim is received by OWCP, http://www.dol.gov/owcp/energy/ OWCP, as determined by postmark or whichever is the earliest determinable index.htm. other carrier’s date marking, or on the date. However, in no event will a ■ date that the claim is received by survivor’s claim under Part B of the Act 9. Amend § 30.110 by revising OWCP, whichever is the earliest be considered to be ‘‘filed’’ earlier than paragraphs (a)(1) and (4) and (b) to read determinable date. However, in no event July 31, 2001, nor will a survivor’s claim as follows: will a claim under Part B of EEOICPA under Part E of the Act be considered to § 30.110 Who is entitled to compensation be considered to be ‘‘filed’’ earlier than be ‘‘filed’’ earlier than October 30, 2000. under the Act? July 31, 2001, nor will a claim under (1) The survivor shall affirm that the (a) * * * Part E of EEOICPA be considered to be information provided on the Form EE– (1) A ‘‘covered beryllium employee’’ ‘‘filed’’ earlier than October 30, 2000. 2 is true, and must inform OWCP of any (as described in § 30.205(a)) with a (1) The employee shall affirm that the subsequent changes to that information. covered beryllium illness (as defined in information provided on the Form EE– * * * * * § 30.5(p)) who was exposed to beryllium
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in the performance of duty (in (1) For covered beryllium illnesses that it deems such development to be accordance with § 30.206). under Part B of EEOICPA, additional appropriate. * * * * * medical evidence, as set forth in ■ 14. Amend § 30.205 by revising (4) A ‘‘covered uranium employee’’ § 30.207, is required to establish a paragraphs (a)(1) and (a)(3)(i) to read as (as defined in § 30.5(t)). beryllium illness. follows: (b) Under Part E of EEOICPA, (2) For chronic silicosis under Part B compensation is payable to a ‘‘covered of EEOICPA, additional medical § 30.205 What are the criteria for eligibility evidence, as set forth in § 30.222, is for benefits relating to beryllium illnesses Part E employee’’ (as defined in covered under Part B of EEOICPA? § 30.5(q)), or his or her survivors. required to establish chronic silicosis. * * * * * * * * * * (3) For covered illnesses under Part E of EEOICPA, additional medical (a) * * * ■ 10. Amend § 30.112 by revising (1) The employee is a ‘‘current or evidence, as set forth in § 30.232, is paragraph (b)(3) to read as follows: former employee as defined in 5 U.S.C. required to establish a covered illness. 8101(1)’’ (see § 30.5(u)) who may have § 30.112 What kind of evidence is needed (i) For impairment benefits under Part been exposed to beryllium at a DOE to establish covered employment and how E of EEOICPA, additional medical facility or at a facility owned, operated will that evidence be evaluated? evidence, as set forth in § 30.901, is or occupied by a beryllium vendor; or * * * * * required to establish an impairment that (b) * * * is the result of a covered illness referred * * * * * (3) If the only evidence of covered to in § 30.900. (3) * * * (i) Employed at a DOE facility (as employment submitted by the claimant (ii) For wage-loss benefits under Part defined in § 30.5(y)); or is a written affidavit or declaration E of EEOICPA, additional medical subject to penalty of perjury by the evidence, as set forth in § 30.806, is * * * * * employee, survivor or any other person, required to establish wage-loss that is ■ 15. Amend § 30.206 by revising and DOE or another entity either the result of a covered illness referred to paragraph (a) to read as follows: disagrees with the assertion of covered in § 30.800. employment or cannot concur or § 30.206 How does a claimant prove that * * * * * the employee was a ‘‘covered beryllium disagree with the assertion of covered ■ 13. Amend § 30.115 by revising employee’’ exposed to beryllium dust, employment, then OWCP will evaluate particles or vapor in the performance of the probative value of the affidavit in paragraphs (a) introductory text, (a)(2), and (b) to read as follows: duty? conjunction with the other evidence of (a) Proof of employment or physical employment, and may determine that § 30.115 For those radiogenic cancer presence at a DOE facility, or a the claimant has not met his or her claims that do not seek benefits under Part beryllium vendor facility as defined in burden of proof under § 30.111. B of the Act pursuant to the Special § 30.5(j), because of employment by the Exposure Cohort provisions, what will ■ 11. Amend § 30.113 by revising United States, a beryllium vendor, or a paragraph (c) to read as follows: OWCP do once it determines that an employee contracted cancer? contractor or subcontractor of a § 30.113 What are the requirements for beryllium vendor during a period when (a) Other than claims seeking benefits beryllium dust, particles or vapor may written medical documentation, under Part E of the Act that have contemporaneous records, and other have been present at such facility, may previously been accepted under section be made by the submission of any records or documents? 7384u of the Act or claims previously * * * * * trustworthy records that, on their face or accepted under Part B pursuant to the in conjunction with other such records, (c) If a claimant submits a certified Special Exposure Cohort provisions, statement, by a person with knowledge establish that the employee was OWCP will forward the claim package employed or present at a covered of the facts, that the medical records (including, but not limited to, Forms containing a diagnosis and date of facility and the time period of such EE–1, EE–2, EE–3, EE–4 and EE–5, as employment or presence. diagnosis of a covered medical appropriate) to NIOSH for dose condition no longer exist, then OWCP reconstruction. At that point in time, * * * * * may consider other evidence to development of the claim by OWCP may ■ 16. Amend § 30.207 as follows: establish a diagnosis and date of be suspended. ■ a. Revise paragraph (a); diagnosis of a covered medical ■ b. Redesignate paragraph (d) as * * * * * condition. However, OWCP will paragraph (e); and (2) NIOSH will then reconstruct the evaluate the probative value of such ■ c. Add new paragraph (d). radiation dose of the employee and other evidence to determine whether it The revision and addition read as provide the claimant and OWCP with is sufficient proof of a covered medical follows: the final dose reconstruction report. The condition. final dose reconstruction record will be § 30.207 How does a claimant prove a ■ 12. Amend § 30.114 as follows: delivered to OWCP with the final dose diagnosis of a beryllium disease covered ■ a. Revise paragraphs (b)(1) and (2); reconstruction report and to the under Part B? ■ b. Redesignate paragraph (b)(3) as claimant upon request. (a) Written medical documentation is paragraph (b)(4); and required in all cases to prove that the ■ (b) Following its receipt of the final c. Add new paragraph (b)(3). dose reconstruction report from NIOSH, employee developed a covered The revisions and addition read as OWCP will resume its adjudication of beryllium illness. Proof that the follows: the cancer claim and consider whether employee developed a covered § 30.114 What kind of evidence is needed the claimant has met the eligibility beryllium illness must be made by using to establish a compensable medical criteria set forth in subpart C of this the procedures outlined in paragraph condition and how will that evidence be part. However, during the period before (b), (c), (d) or (e) of this section. evaluated? it receives a reconstructed dose from * * * * * * * * * * NIOSH, OWCP may continue to develop (d) OWCP will use the criteria in (b) * * * other aspects of a claim, to the extent either paragraph (c)(1) or (2) of this
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section to establish that the employee evidence that will be considered by mine or mill during that same period, developed chronic beryllium disease as OWCP, in addition to the employee’s and that he or she: follows: final dose reconstruction report that will * * * * * (1) If the earliest dated medical be provided to OWCP by NIOSH, in ■ evidence shows that the employee was making this particular factual 23. Amend § 30.231 by revising either treated for, tested positive for, or determination. paragraphs (a) and (b) to read as follows: diagnosed with a chronic respiratory * * * * * § 30.231 How does a claimant prove disorder before January 1, 1993, the ■ employment-related exposure to a toxic criteria set forth in paragraph (c)(2) of 20. Amend § 30.220 by revising substance at a DOE facility or a RECA this section may be used; paragraph (a) to read as follows: section 5 facility? (2) If the earliest dated medical § 30.220 What are the criteria for eligibility * * * * * evidence shows that the employee was for benefits relating to chronic silicosis? (a) Proof of employment may be either treated for, tested positive for, or * * * * * established by any trustworthy records diagnosed with a chronic respiratory (a) The employee is a civilian DOE that, on their face or in conjunction with disorder on or after January 1, 1993, the employee, or a civilian DOE contractor other such records, establish that the criteria set forth in paragraph (c)(1) of employee, who was present for a employee was so employed and the time this section must be used; and number of workdays aggregating at least period(s) of such employment. If the (3) If the employee was treated for a only evidence of covered employment chronic respiratory disorder before 250 workdays during the mining of tunnels at a DOE facility (as defined in submitted by the claimant is a written January 1, 1993 and medical evidence affidavit or declaration subject to verifies that such treatment was § 30.5(y)) located in Nevada or Alaska for tests or experiments related to an penalty of perjury by the employee, performed before January 1, 1993, but survivor or any other person, and DOE the medical evidence is dated on or after atomic weapon, and has been diagnosed with chronic silicosis (as defined in or another entity either disagrees with January 1, 1993, the criteria set forth in the assertion of covered employment or paragraph (c)(2) of this section may be § 30.5(k)); or * * * * * cannot concur or disagree with the used. assertion of covered employment, then * * * * * ■ 21. Amend § 30.222 by revising OWCP will evaluate the probative value ■ 17. Amend § 30.210 by revising paragraph (a) introductory text to read of the affidavit in conjunction with the paragraph (a)(1) to read as follows: as follows: other evidence of employment, and may determine that the claimant has not met § 30.210 What are the criteria for eligibility § 30.222 How does a claimant establish for benefits relating to radiogenic cancer? that the employee has been diagnosed with his or her burden of proof under chronic silicosis or has sustained a § 30.111. (a) * * * consequential injury, illness, impairment or (b) For claimants who have (1) The employee has been diagnosed disease? with one of the forms of cancer established proof of employment, proof specified in § 30.5(gg); and (a) A written diagnosis of the of exposure to a toxic substance may be employee’s chronic silicosis (as defined established by the submission of any * * * * * in § 30.5(k)) shall be made by a licensed appropriate document or information ■ 18. Revise § 30.211 to read as follows: physician and accompanied by one of that is evidence that such substance was § 30.211 How does a claimant establish the following: present at the facility where the that the employee has or had contracted * * * * * employee was employed and that the cancer? employee came into contact with such ■ 22. Amend § 30.230 by revising A claimant establishes that the substance. Information from the paragraphs (a) and (d)(1) introductory following sources may be considered as employee has or had contracted a text to read as follows: specified cancer (as defined in probative factual evidence for purposes § 30.5(gg)) or other cancer with medical § 30.230 What are the criteria necessary to of establishing an employee’s exposure evidence that sets forth an explicit establish that an employee contracted a to a toxic substance at a DOE facility or diagnosis of cancer and the date on covered illness under Part E of EEOICPA? a RECA section 5 facility: which that diagnosis was first made. * * * * * (1) To the extent practicable and ■ 19. Amend § 30.213 by revising (a) That OWCP has determined under appropriate, from DOE, a DOE- paragraph (a) to read as follows: Part B of EEOICPA that the employee is sponsored Former Worker Program, or a DOE contractor employee as defined an entity that acted as a contractor or § 30.213 How does a claimant establish in § 30.5(x), and that he or she has been subcontractor to DOE; that the radiogenic cancer was at least as likely as not related to employment at the awarded compensation under that Part (2) OWCP’s Site Exposure Matrices; or DOE facility, the atomic weapons employer of the Act for an occupational illness; (3) Any other entity deemed by OWCP facility, or the RECA section 5 facility? * * * * * to be a reliable source of information (a) HHS, with the advice of the (d)(1) That the employee is a civilian necessary to establish that the employee Advisory Board on Radiation and DOE contractor employee as defined in was exposed to a toxic substance at a Worker Health, has issued regulatory § 30.5(x), or a civilian who was DOE facility or RECA section 5 facility. guidelines at 42 CFR part 81 that OWCP employed in a uranium mine or mill ■ 24. Amend § 30.232 as follows: uses to determine whether radiogenic located in Colorado, New Mexico, ■ a. Revise paragraphs (a)(1) and (2); cancers claimed under Parts B and E Arizona, Wyoming, South Dakota, ■ were at least as likely as not related to Washington, Utah, Idaho, North Dakota, b. Remove paragraphs (a)(3) and (4) employment at a DOE facility, an atomic Oregon or Texas at any time during the and (b); and weapons employer facility, or a RECA period from January 1, 1942 through ■ c. Redesignate paragraph (c) as section 5 facility. Persons should December 31, 1971, or was employed in paragraph (b) and revise newly consult HHS’s regulations for the transport of uranium ore or designated paragraph (b). information regarding the factual vanadium-uranium ore from such a The revisions read as follows:
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§ 30.232 How does a claimant establish conduct a hearing, if requested to do so described in paragraph (b) of this that the employee has been diagnosed with by the claimant, before issuing a final section. a covered illness, or sustained an injury, decision on the claim for entitlement. (b) If another individual subsequently illness, impairment or disease as a Claimants may request judicial review files a survivor claim for the same consequence of a covered illness? of a final decision of FAB by filing an award, the recommended decision on (a) * * * action in Federal district court. that claim will not address the (1) Written medical evidence entitlement of the earlier claimants if containing a physician’s diagnosis of the ■ 26. Amend § 30.301 by revising paragraph (b)(1) to read as follows: the district office recommended that the employee’s covered illness (as that term later survivor claim be denied. is defined in § 30.5(s)), and the § 30.301 May subpoenas be issued for ■ 30. Revise § 30.310 to read as follows: physician’s reasoning for his or her witnesses and documents in connection opinion regarding causation; and with a claim under Part B of EEOICPA? § 30.310 What must the claimant do if he (2) Any other evidence OWCP may * * * * * or she objects to the recommended deem necessary to show that the (b) * * * decision or wants to request a hearing? employee has or had an illness that (a) Within 60 days from the date the resulted from an exposure to a toxic (1) Submit the request in writing and send it to the FAB reviewer as early as recommended decision is issued, the substance while working at either a DOE claimant must state, in writing, whether facility or a RECA section 5 facility. possible, but no later than 30 days (as evidenced by postmark or other carrier’s he or she objects to any of the findings (b) An injury, illness, impairment or of fact and/or conclusions of law disease sustained as a consequence of a date marking) after the date of the original hearing request; discussed in such decision, including covered illness (as defined in § 30.5(s)) NIOSH’s reconstruction of the radiation * * * * * must be established with a fully dose to which the employee was rationalized medical report by a ■ 27. Amend § 30.305 by revising exposed (if any), and whether a hearing physician that shows the relationship paragraph (a) to read as follows: is desired. This written statement between the injury, illness, impairment should be filed with the FAB at the or disease and the covered illness. § 30.305 How does OWCP determine entitlement to EEOICPA compensation? address indicated in the notice Neither the fact that the injury, illness, accompanying the recommended (a) In reaching a recommended impairment or disease manifests itself decision. after a diagnosis of a covered illness, nor decision with respect to EEOICPA (b) For purposes of determining the belief of the claimant that the injury, compensation, OWCP considers the whether the written statement referred illness, impairment or disease was claim presented by the claimant, the to in paragraph (a) of this section has caused by the covered illness, is factual and medical evidence of record, been timely filed with the FAB, the sufficient in itself to prove a causal the dose reconstruction report prepared statement will be considered to be relationship. by NIOSH (if any), any report submitted ‘‘filed’’ on the date that the claimant ■ 25. Add an undesignated center by DOE and the results of such mails it to the FAB, as determined by heading immediately preceding § 30.300 investigation as OWCP may deem postmark or other carrier’s date and revise § 30.300 to read as follows: necessary. marking, or on the date that such * * * * * General Provisions written statement is actually received, ■ 28. Revise § 30.306 to read as follows: whichever is the earliest determinable § 30.300 What administrative process will date. § 30.306 What does the recommended OWCP use to decide claims for entitlement, ■ 31. Amend § 30.313 by revising and how can claimants obtain judicial decision include? paragraph (c) to read as follows: review of final decisions on their claims? The recommended decision shall OWCP district offices will issue include a discussion of the district § 30.313 How is a review of the written recommended decisions with respect to office’s findings of fact and conclusions record conducted? most claims for entitlement under Part of law in support of the * * * * * B and/or Part E of EEOICPA that are recommendation. The recommended (c) Any objection that is not presented filed pursuant to the regulations set decision may recommend acceptance or to the FAB reviewer, including any forth in subpart B of this part. In rejection of the claim in its entirety, or objection to NIOSH’s reconstruction of circumstances where a claim is made for of a portion of the claim presented. It is the radiation dose to which the more than one benefit available under accompanied by a notice of the employee was exposed (if any), whether Part B and/or Part E of the Act, OWCP claimant’s right to file objections with, or not the pertinent issue was may issue a recommended decision on and request a hearing before, the FAB. previously presented to the district only part of that particular claim in office, is deemed waived for all order to adjudicate that portion of the § 30.307 [Redesignated as § 30.308] purposes. claim as quickly as possible. Should this ■ 29a. Redesignate § 30.307 as § 30.308. ■ 32. Amend § 30.314 by revising occur, OWCP will issue one or more ■ 29b. Add new § 30.307 to read as paragraphs (a) introductory text and (b) recommended decisions on the deferred follows: to read as follows: portions of the claim when the adjudication of those portions is § 30.307 Can one recommended decision § 30.314 How is a hearing conducted? completed. All recommended decisions address the entitlement of multiple (a) The FAB reviewer retains granting and/or denying claims for claimants? complete discretion to set the time and entitlement under Part B and/or Part E (a) When multiple individuals have place of the hearing, including the of the Act will be forwarded to the Final filed survivor claims under Part B and/ amount of time allotted for the hearing, Adjudication Branch (FAB). Claimants or Part E of EEOICPA relating to the considering the issues to be resolved. At will be given an opportunity to object to same deceased employee, the the discretion of the reviewer, the all or part of the recommended decision entitlement of all of those individuals hearing may be conducted by telephone, before the FAB. The FAB will consider shall be determined in the same teleconference, videoconference or other objections filed by a claimant and recommended decision, except as electronic means. As part of the hearing
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process, the FAB reviewer will consider ■ 34. Revise § 30.318 to read as follows: request that the Director for Energy the written record forwarded by the Employees Occupational Illness district office and any additional § 30.318 How will FAB consider objections Compensation reopen his or her claim, to NIOSH’s reconstruction of a radiation evidence and/or argument submitted by dose, or to OWCP’s calculation of the provided that the claimant also submits the claimant. The reviewer may also recommended probability of causation, in a new evidence of a diagnosed medical conduct whatever investigation is Part B claim for radiogenic cancer? condition, covered employment, or deemed necessary. (a) If the claimant objects to NIOSH’s exposure to a toxic substance. A written * * * * * reconstruction of the radiation dose to request to reopen a claim may also be (b) The FAB reviewer will mail a which the employee was exposed, either supported by identifying either a change notice of the time and place of the in writing or at the oral hearing, the in the PoC guidelines, a change in the hearing to the claimant and any FAB reviewer has the discretion to dose reconstruction methods or an representative at least 30 days before the consult with NIOSH as part of his or her addition of a class of employees to the scheduled hearing date. The FAB consideration of any objection. Special Exposure Cohort. If the Director reviewer may mail a hearing notice less However, the HHS dose reconstruction concludes that the evidence submitted than 30 days prior to the hearing if the regulation, which provides guidance for or matter identified in support of the claimant and/or representative waives the technical methods developed and claimant’s request is material to the the above 30-day notice period in used by NIOSH to provide a reasonable claim, the Director will reopen the claim writing. If the claimant only objects to estimate of the radiation dose received and return it to the district office for part of the recommended decision, the by an employee, is binding on FAB. such further development as may be FAB reviewer may issue a final decision Should this consultation take place, the necessary, to be followed by a new accepting the remaining part of the FAB reviewer will properly document it recommended decision. recommendation of the district office in the case. Whether or not NIOSH is * * * * * without first holding a hearing (see consulted, and as provided for in ■ 37. Amend § 30.400 by revising § 30.316). Any objection that is not § 30.317, the FAB reviewer may decide paragraphs (a) and (c) and adding presented to the FAB reviewer, to return the case to the district office paragraph (d) to read as follows: including any objection to NIOSH’s for referral to NIOSH for such further reconstruction of the radiation dose to action as may be appropriate. § 30.400 What are the basic rules for obtaining medical treatment? which the employee was exposed (if (b) If the claimant objects to OWCP’s any), whether or not the pertinent issue calculation of the recommended (a) A covered Part B employee or a was previously presented to the district probability of causation in a Part B covered Part E employee who fits into office, is deemed waived for all radiogenic cancer claim, the FAB at least one of the compensable claim purposes. reviewer has the discretion to consider categories described in subpart C of this * * * * * if OWCP used incorrect factual part is entitled to receive all medical ■ 33. Amend § 30.315 by revising information when it performed this services, appliances or supplies that a paragraph (a) to read as follows: calculation. However, the statute qualified physician prescribes or requires that OWCP use a particular recommends and that OWCP considers § 30.315 May a claimant postpone a methodology, established by regulations necessary to treat his or her hearing? issued by HHS at 42 CFR part 81, when occupational illness or covered illness, (a) The FAB will entertain any it calculates the recommended retroactive to the date the claim for reasonable request for scheduling the probability of causation. benefits for that occupational illness or time and place of the hearing, but such covered illness under Part B or Part E of ■ 35. Amend § 30.319 by revising requests should be made at the time that EEOICPA was filed. The employee need paragraph (b) to read as follows: the hearing is requested. Scheduling is not be disabled to receive such at the discretion of the FAB, and is not § 30.319 May a claimant request treatment. If there is any doubt as to reviewable. In most instances, once the reconsideration of a final decision of the whether a specific service, appliance or hearing has been scheduled and FAB? supply is necessary to treat the appropriate written notice has been * * * * * occupational illness or covered illness, mailed, it cannot be postponed at the (b) For purposes of determining the employee should consult OWCP claimant’s request for any reason except whether the written request referred to prior to obtaining it through the those stated in paragraph (b) of this in paragraph (a) of this section has been automated authorization process section, unless the FAB reviewer can timely filed with the FAB, the request described in § 30.700. In situations reschedule the hearing on the same will be considered to be ‘‘filed’’ on the where the occupational illness or docket (that is, during the same hearing date that the claimant mails it to the covered illness is a secondary cancer, trip). If a request to postpone a FAB, as determined by postmark or such treatment may include treatment of scheduled hearing does not meet one of other carrier’s date marking, or on the the underlying primary cancer when it the tests of paragraph (b) of this section date that such written request is actually is medically necessary or related to and cannot be accommodated on the received, whichever is the earliest treatment of the secondary cancer; same docket, or if the claimant and/or determinable date. however, payment for medical treatment representative cancels or fails to attend * * * * * of the underlying primary cancer under a scheduled hearing, no further these circumstances does not constitute ■ 36. Amend § 30.320 by revising opportunity for a hearing will be a determination by OWCP that the paragraph (b) to read as follows: provided. Instead, the FAB will primary cancer is a covered illness consider the claimant’s objections by § 30.320 Can a claim be reopened after the under Part E of EEOICPA. means of a review of the written record. FAB has issued a final decision? * * * * * In the alternative, a teleconference may * * * * * (c) Any qualified physician may be substituted for the hearing at the (b) At any time after the FAB has provide medical services, appliances discretion of the reviewer. issued a final decision pursuant to and supplies to the covered Part B * * * * * § 30.316, a claimant may file a written employee or the covered Part E
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employee. A hospital or a provider of identify his or her treating physician. ■ 42. Amend § 30.416 by revising medical services or supplies may OWCP then provides the treating paragraph (a) to read as follows: furnish appropriate services, drugs, physician with Form EE–17B, which supplies and appliances, so long as such asks the physician to submit a letter of § 30.416 How and when should medical reports be submitted? provider possesses all applicable medical necessity and verify that a licenses required under State law and timely face-to-face physical examination (a) The initial medical report (and any has not been excluded from of the beneficiary took place. This subsequent reports) should be made in participation in the program under particular pre-authorization process narrative form on the physician’s subpart H of this part. OWCP may apply must be followed only for the initial letterhead stationery. The physician a test of cost-effectiveness when it claim for home health care, nursing should use the Form EE–7 as a guide for decides if appliances and supplies are home, and assisted living services; any the preparation of his or her initial necessary to treat an occupational subsequent request for pre-authorization medical report in support of a claim illness or covered illness, may offset the must satisfy OWCP’s usual medical under Part B and/or Part E of EEOICPA. cost of prior rental payments against a necessity requirements. If a claimant The report should bear the physician’s future purchase price, and may provide disagrees with the decision of OWCP handwritten or electronic signature. refurbished appliances where that the claimed services are not OWCP may require an original signature appropriate. Also, OWCP may authorize medically necessary, he or she may on the report. payment for durable medical equipment utilize the adjudicatory process * * * * * and modifications to a home or vehicle, described in subpart D of this part. ■ 43. Amend § 30.500 by revising to the extent that OWCP deems it ■ 39. Amend § 30.405 by revising paragraph (a)(2) and adding paragraph necessary and reasonable. With respect paragraphs (b) and (c) to read as follows: (c) to read as follows: to prescribed medications, OWCP may require the use of generic equivalents § 30.405 After selecting a treating § 30.500 What special statutory definitions where they are available. OWCP may physician, may an employee choose to be apply to survivors under EEOICPA? treated by another physician instead? contract with a specific provider or (a) * * * * * * * * providers to supply non-physician (2) Child of a deceased covered Part medical services or supplies. (b) OWCP will approve the request if it determines that the reasons submitted B employee or deceased covered Part E (d) In circumstances when a covered employee means only a biological child, employee dies after filing a claim but are credible and supported by probative factual and/or medical evidence, as a stepchild or an adopted child of that before such claim is accepted, OWCP individual. will pay for medical treatment for all appropriate. Requests that are often * * * * * accepted illnesses, retroactive to the approved include those for transfer of date that the employee filed the claim, care from a general practitioner to a (c) For the purposes of paying if the deceased employee’s survivor(s) physician who specializes in treating compensation to survivors under Part E files a claim that is accepted under Part the occupational illnesses or covered of EEOICPA, OWCP will use the B and/or Part E of EEOICPA. If this illnesses covered by EEOICPA, or the following additional definitions: occurs, OWCP shall only pay either the need for a new physician when an (1) Covered child means a child that employee has moved. provider(s) or the employee’s estate for is, as of the date of the deceased covered (c) OWCP may deny a requested medical treatment that the employee Part E employee’s death, either under change of physician if it determines that obtained after filing his or her claim. the age of 18 years, or under the age of the reasons submitted are not both 23 years and a full-time student who ■ 38. Revise § 30.403 to read as follows: credible and supported by probative was continuously enrolled in one or § 30.403 Will OWCP pay for home health evidence. If a claimant disagrees with more educational institutions since care, nursing home, and assisted living such an informal denial, he or she may attaining the age of 18 years, or any age services? utilize the adjudicatory process and incapable of self-support. A child’s (a) OWCP will authorize and pay for described in subpart D of this part. marital status or dependency on the home health care claimed under section ■ 40. Amend § 30.410 by adding covered employee for support is 7384t of the Act, whether or not such paragraph (c) to read as follows: irrelevant to his or her eligibility for benefits as a covered child under Part E. care constitutes skilled nursing care, so § 30.410 Can OWCP require an employee long as the care has been determined to to be examined by another physician? (2) Incapable of self-support means be medically necessary. OWCP will pay that the child must have been physically * * * * * for approved periods of care by a (c) OWCP may administratively close and/or mentally incapable of self- registered nurse, licensed practical the claim and suspend adjudication of support at the time of the covered nurse, home health aide or similarly any pending matters if the employee employee’s death. trained individual, subject to the pre- refuses to attend a second opinion ■ 44. Amend § 30.501 by revising authorization requirements described in examination. paragraphs (a) introductory text and (b) paragraph (c) of this section. ■ introductory text to read as follows: (b) OWCP will also authorize and pay 41. Amend § 30.411 by adding for periods of nursing home and assisted paragraph (d) to read as follows: § 30.501 What order of precedence will living services claimed under section § 30.411 What happens if the opinion of OWCP use to determine which survivors 7384t of the Act, so long as such the physician selected by OWCP differs are entitled to receive compensation under services have been determined to be from the opinion of the physician selected EEOICPA? medically necessary, subject to the pre- by the employee? (a) Under Part B of the Act, if OWCP authorization requirements described in * * * * * determines that a survivor or survivors paragraph (c) of this section. (d) OWCP may administratively close are entitled to receive compensation (c) To file an initial claim for home the claim and suspend adjudication of under EEOICPA because a covered Part health care, nursing home, or assisted any pending matters if the employee B employee who would otherwise have living services, the beneficiary must refuses to attend a referee medical been entitled to benefits is deceased, submit Form EE–17A to OWCP and examination. that compensation will be disbursed as
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follows, subject to the qualifications set 20 (described in § 30.505(c)) for his or (2) The date that is 30 months after forth in § 30.5(hh)(3): her client the date the claimant or claimants first * * * * * ■ 48. Amend § 30.601 by revising the became aware that an illness of the (b) Under Part E of the Act, if OWCP introductory text to read as follows: covered Part B employee may be determines that a survivor or survivors connected to his or her exposure to are entitled to receive compensation § 30.601 Who may serve as a beryllium or radiation covered by representative? under EEOICPA because a covered Part EEOICPA. For purposes of determining E employee who would otherwise have A claimant may authorize any when this 30-month period begins, ‘‘the been entitled to benefits is deceased, individual to represent him or her in date the claimant or claimants first that compensation will be disbursed as regard to a claim under EEOICPA, became aware’’ will be deemed to be the follows, subject to the qualifications set unless that individual’s service as a date they received either a reconstructed forth in § 30.5(hh)(3): representative would violate any dose from NIOSH, or a diagnosis of a applicable provision of law (such as 18 * * * * * covered beryllium illness, as applicable. U.S.C. 205 and 208) or the standards ■ ■ 45. Revise § 30.502 to read as follows: regarding conflicts of interest adopted 52. Revise §§ 30.700 through 30.702 to read as follows: § 30.502 When is entitlement for survivors by OWCP. Under those standards, determined for purposes of EEOICPA? authorized representatives are § 30.700 In general, what responsibilities Entitlement to any lump-sum prohibited from having private, non- do providers have with respect to enrolling payment for survivors under the representational financial interests with with OWCP, seeking authorization to EEOICPA, other than for ‘‘covered’’ respect to their client’s EEOICPA provide services, billing, and retaining medical records? children under Part E, will be claims. This does not include their fee determined as of the time OWCP makes for serving as a representative. A (a) All providers must enroll with such a payment. As noted in Federal employee may act as a OWCP or its designated bill processing § 30.500(c)(1), a child of a deceased Part representative only: agent (hereinafter OWCP in this subpart) E employee will only qualify as a * * * * * to have access to the automated ‘‘covered’’ child of that individual if he ■ 49. Amend § 30.603 by revising authorization system and to submit or she satisfied one of the additional paragraph (a) to read as follows: medical bills to OWCP. To enroll, the statutory criteria for a ‘‘covered’’ child provider must complete and submit a as of the date of the deceased Part E § 30.603 Are there any limitations on what Form OWCP–1168 to the appropriate employee’s death. the representative may charge the claimant location noted on that form. By for his or her services? ■ 46. Amend § 30.509 by revising completing and submitting this form, (a) Notwithstanding any contract, the paragraph (c) to read as follows: providers certify that they satisfy all representative may not receive, for applicable Federal and state licensure § 30.509 Under what circumstances may a services rendered in connection with a and regulatory requirements that apply survivor claiming under Part E of the Act claim pending before OWCP, more than to their specific provider or supplier choose to receive the benefits that would the percentages of the lump-sum type. The provider must maintain otherwise be payable to a covered Part E payment made to the claimant set out in documentary evidence indicating that it employee who is deceased? paragraph (b) of this section, exclusive satisfies those requirements. The * * * * * of costs and expenses. provider is also required to notify (c) OWCP only makes impairment * * * * * OWCP immediately if any information determinations based on rationalized ■ 50. Amend § 30.617 by revising provided to OWCP in the enrollment medical evidence in the case file that is paragraph (b)(2) to read as follows: process changes. Federal government sufficiently detailed and meets the medical officers, private physicians and various requirements for the many § 30.617 What happens if this type of tort hospitals are also required to keep different types of impairment suit was filed during the period from records of all cases treated by them determinations possible under the October 30, 2000 through December 28, 2001? under EEOICPA so they can supply American Medical Association’s Guides OWCP with a history of the claimed to the Evaluation of Permanent * * * * * occupational illness or covered illness, Impairment (AMA’s Guides). Therefore, (b) * * * a description of the nature and extent of (2) The date that is 30 months after OWCP will only make an impairment the claimed occupational illness or the date the claimant or claimants first determination for a deceased covered covered illness, the results of any became aware that an illness of the Part E employee pursuant to this section diagnostic studies performed and the covered Part B employee may be if the medical evidence of record is nature of the treatment rendered. This connected to his or her exposure to sufficient to satisfy the pertinent requirement terminates after a provider beryllium or radiation covered by requirements in the AMA’s Guides and has supplied OWCP with the above- EEOICPA. For purposes of determining subpart J of this part. noted information, and otherwise when this 30-month period begins, ‘‘the ■ 47. Amend § 30.600 by revising terminates ten years after the record was date the claimant or claimants first paragraph (c)(2) to read as follows: created. became aware’’ will be deemed to be the § 30.600 May a claimant designate a date they received either a reconstructed (b) Where a medical provider intends representative? dose from NIOSH, or a diagnosis of a to bill for a procedure where prior * * * * * covered beryllium illness, as applicable. authorization is required, authorization must be requested from OWCP. (c) * * * ■ 51. Amend § 30.618 by revising (2) A representative does not have paragraph (c)(2) to read as follows: (c) After enrollment, a provider must authority to sign the Form EE–1 submit all medical bills to OWCP (described in § 30.100(a)) or the Form § 30.618 What happens if this type of tort through its bill processing portal and EE–2 (described in § 30.101(a)) for his or suit was filed after December 28, 2001? include the Provider Number/ID her client. A representative also does * * * * * obtained through enrollment or other not have authority to sign the Form EN– (c) * * * identifying number required by OWCP.
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§ 30.701 How are medical bills to be (ii) OWCP may adopt a Home Health CPT codes, RCCs or NDC numbers. submitted? Prospective Payment System (HHPPS), Otherwise, OWCP may deny the bill, (a) All charges for medical and as developed and implemented by the and the provider must correct and surgical treatment, appliances or Centers for Medicare and Medicaid resubmit the bill. The decision of OWCP supplies furnished to employees, except Services (CMS) within HHS for whether to pay a provider’s bill is final for treatment and supplies provided by Medicare, while modifying the when issued and is not subject to the nursing homes, shall be supported by allowable costs under Medicare to adjudicatory process described in medical evidence as provided in account for deductibles and other subpart D of this part. § 30.700. OWCP may withhold payment additional costs that are covered by § 30.702 How should an employee prepare for services until such report or EEOICPA. If adopted, home health care providers will be required to submit and submit requests for reimbursement for evidence is provided. The physician or medical expenses, transportation costs, provider shall itemize the charges on bills on Form OWCP–04 or UB–04 and loss of wages, and incidental expenses? Form OWCP–1500 or CMS–1500 (for to use Health Insurance Prospective Payment System codes and other coding (a) If an employee has paid bills for professional charges or medicinal drugs medical, surgical or other services, dispensed in the office), Form OWCP– schemes. (2) Pharmacies shall itemize charges supplies or appliances provided by a 04 or UB–04 (for hospitals), an professional due to an occupational electronic or paper-based bill that for prescription medications, appliances or supplies on electronic or paper-based illness or a covered illness, he or she includes required data elements (for must submit a request for pharmacies) or other form as warranted, bills and submit them promptly to OWCP. Bills for prescription reimbursement on Form OWCP–915, and submit the form or bill promptly to together with an itemized bill on Form OWCP. medications must include all required data elements, including the NDC OWCP–1500 or CMS–1500 prepared by (b) The provider shall identify each the provider, or Form OWCP–04 or UB– service performed using the Physician’s number assigned to the product, the generic or trade name of the drug 04 prepared by the provider, and a Current Procedural Terminology (CPT) medical report as provided in § 30.700, code, the Healthcare Common provided, the prescription number, the quantity provided, and the date the to OWCP for consideration. Procedure Coding System (HCPCS) (1) The provider of such service shall code, the National Drug Code (NDC) prescription was filled. (3) Nursing homes shall itemize state each diagnosed condition and number, or the Revenue Center Code charges for appliances, supplies or furnish the applicable ICD–9–CM code, (RCC), with a brief narrative description. services on the provider’s billhead or as revised, and identify each service OWCP has discretion to determine stationery and submit them promptly to performed using the applicable HCPCS/ which of these codes may be utilized in OWCP. Such charges shall be subject to CPT code, with a brief narrative the billing process. OWCP also has the any applicable OWCP fee schedule. description of the service performed, or, authority to create and supply specific (d) By submitting a bill and/or where no code is applicable, a detailed procedure codes that will be used by accepting payment, the provider description of that service. If no code or OWCP to better describe and allow signifies that the service for which description is received, OWCP will specific payments for special services. payment is sought was performed as deny the reimbursement request, and These OWCP-created codes will be described and was necessary, correction and resubmission will be issued to providers by OWCP as appropriate and properly billed in required. appropriate and may only be used as accordance with accepted industry (2) The reimbursement request must authorized by OWCP. For example, a standards. For example, accepted be accompanied by evidence that the physician conducting a referee or industry standards preclude upcoding provider received payment for the second opinion examination as billed services for extended medical service from the employee and a described in §§ 30.410 through 30.412 appointments when the employee statement of the amount paid. will be furnished an OWCP-created actually had a brief routine Acceptable evidence that payment was code. A provider may not use an OWCP- appointment, or charging for the received includes, but is not limited to, created code for other types of medical services of a professional when a a signed statement by the provider, a examinations or services. When no code paraprofessional or aide performed the mechanical stamp or other device is submitted to identify the services service. Also, industry standards showing receipt of payment, a copy of performed, the bill will be returned to prohibit unbundling services to charge the employee’s canceled check (both the provider and/or denied. separately for services that should be front and back), a copy of the (c) For professional charges billed on billed as a single charge. In addition, the employee’s credit card receipt or a Form OWCP–1500 or CMS–1500, the provider thereby agrees to comply with provider billing form indicating a zero provider shall also state each diagnosed all regulations set forth in this subpart balance due. condition and furnish the corresponding concerning the rendering of treatment (b) If a pharmacy or nursing home diagnostic code using the ‘‘International and/or the process for seeking payment provided services for which the Classification of Disease, 9th Edition, for medical services, including the employee paid, the employee must also Clinical Modification’’ (ICD–9–CM), or limitation imposed on the amount to be use Form OWCP–915 to request as revised. A separate bill shall be paid for such services. reimbursement and should submit the submitted when the employee is (e) In summary, bills submitted by request in accordance with the discharged from treatment or monthly, providers must: Be itemized on Form provisions of § 30.701(a). Any such if treatment for the occupational illness OWCP–1500 or CMS–1500 (for request for reimbursement must be or covered illness is necessary for more physicians), Form OWCP–04 or UB–04 accompanied by evidence, as described than 30 days. (for hospitals), or an electronic or paper- in paragraph (a)(2) of this section, that (1)(i) Hospitals shall submit charges based bill that includes required data the provider received payment for the for both inpatient and outpatient elements (for pharmacies); contain the service from the employee and a medical and surgical treatment or handwritten or electronic signature of statement of the amount paid. supplies promptly to OWCP on Form the provider when required; and (c) OWCP may waive the OWCP–04 or UB–04. identify the procedures using HCPCS/ requirements of paragraphs (a) and (b) of
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this section if extensive delays in the § 30.705 What services are covered by the enrollment and medical cost per county, filing or the adjudication of a claim OWCP fee schedule? provided by CMS. make it unusually difficult for the (a) Payment for medical and other (b) OWCP shall assign the RVUs employee to obtain the required health services, devices and supplies published by CMS to all services for information. furnished by physicians, hospitals and which CMS has made assignments, other providers for occupational using the most recent revision. Where (d) Copies of bills submitted for illnesses or covered illnesses shall not there are no RVUs assigned to a reimbursement must bear the exceed a maximum allowable charge for procedure, OWCP may develop and handwritten or electronic signature of such service as determined by OWCP, assign any RVUs it considers the provider when required, with except as provided in this section. appropriate. The geographic adjustment evidence of payment. Payment for (b) The schedule of maximum factor shall be that designated by GPCI medical and surgical treatment, allowable charges does not apply to values for Metropolitan Statistical Areas appliances or supplies shall in general charges for services provided in nursing as devised for CMS and as updated or be no greater than the maximum homes, but it does apply to charges for revised by CMS from time to time. allowable charge for such service treatment furnished in a nursing home OWCP will devise conversion factors for determined by OWCP, as set forth in by a physician or other medical each category of service as appropriate § 30.705. OWCP will issue a letter professional. In the future, OWCP may using OWCP’s processing experience decision on whether to reimburse an also decide to implement a fee schedule and internal data. employee for out-of-pocket medical for services provided in nursing homes. (c) For example, if the RVUs for a expenses, and the amount of any (c) The schedule of maximum particular surgical procedure are 2.48 reimbursement. A claimant who allowable charges also does not apply to for physician’s work (W), 3.63 for disagrees with OWCP’s letter decision charges for appliances, supplies, practice expense (PE), and 0.48 for may request a formal recommended services or treatment furnished by malpractice insurance (M), and the decision and utilize the adjudicatory medical facilities of the U.S. Public conversion factor assigned to one unit in process described in subpart D of this Health Service or the Departments of the that category of service (surgery) is part. Army, Navy, Air Force and Veterans $61.20, then the maximum allowable Affairs. charge for one performance of that (e) An employee will be only partially procedure is the product of the three reimbursed for a medical expense if the RVUs times the corresponding GPCI amount he or she paid to a provider for § 30.706 How are the maximum fees for values for the locality times the the service exceeds the maximum professional medical services defined? conversion factor. If the GPCI values for allowable charge set by OWCP’s For professional medical services, the locality are 0.988(W), 0.948 (PE), schedule. If this happens, OWCP shall OWCP shall maintain a schedule of and 1.174 (M), then the maximum advise the employee of the maximum maximum allowable fees for procedures payment calculation is: allowable charge for the service in performed in a given locality. The [(2.48)(0.988) + (3.63)(0.948) + question and of his or her responsibility schedule shall consist of: An assignment (0.48)(1.174)] × $61.20 to ask the provider to refund to the of a Relative Value Unit (RVU) to [2.45 + 3.44 + .56] × $61.20 employee, or credit to the employee’s procedures identified by HCPCS/CPT 6.45 × $61.20 = $394.74 account, the amount he or she paid code which represents the relative skill, ■ 54. Revise §§ 30.709 and 30.710 to which exceeds the maximum allowable effort, risk and time required to perform read as follows: charge. The provider that the employee the procedure, as compared to other paid, but not the employee, may request procedures of the same general class; an § 30.709 How are payments for medicinal reconsideration of the fee determination assignment of Geographic Practice Cost drugs determined? as set forth in § 30.712. Index (GPCI) values which represent the Unless otherwise specified by OWCP, payment for medicinal drugs prescribed (f) If the provider fails to make relative work, practice expenses and by physicians shall not exceed the appropriate refund to the employee, or malpractice expenses relative to other amount derived by multiplying the to credit the employee’s account, within localities throughout the country; and a monetary value assignment (conversion average wholesale price of the 60 days after the employee requests a factor) for one unit of value for each medication by the quantity or amount refund of any excess amount, or the date coded service. provided, plus a dispensing fee. OWCP of a subsequent reconsideration may, in its discretion, contract for or decision which continues to disallow all § 30.707 How are payments to providers require the use of specific providers for or a portion of the disputed amount, calculated? certain medications. OWCP will initiate exclusion Payment for a procedure, service or (a) All prescription medications procedures as provided by § 30.715. device identified by a HCPCS/CPT code identified by NDC number will be (g) If the provider does not refund to shall not exceed the amount derived by assigned an average wholesale price the employee or credit to his or her multiplying the RVU values for that representing the product’s nationally account the amount of money paid in procedure by the GPCI values for recognized wholesale price as excess of the charge which OWCP services in that area and by the determined by surveys of manufacturers allows, the employee should submit conversion factor to arrive at a dollar and wholesalers. OWCP will establish documentation of the attempt to obtain amount assigned to one unit in that the dispensing fee, which will not be such refund or credit to OWCP. OWCP category of service. affected by the location or type of may authorize reasonable (a) The ‘‘locality’’ which serves as a provider dispensing the medication. reimbursement to the employee after basis for the determination of cost is (b) The NDC numbers, the average reviewing the facts and circumstances of defined by the Bureau of Census wholesale prices, and the dispensing fee the case. Metropolitan Statistical Areas. OWCP shall be reviewed from time to time and shall base the determination of the updated as necessary. ■ 53. Revise §§ 30.705 through 30.707 to relative per capita cost of medical care (c) With respect to prescribed read as follows: in a locality using information about medications, OWCP may require the use
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of generic equivalents where they are prescribed by CMS for that service in documentary evidence that the available. the form of the Outpatient Prospective procedure performed was either Payment System Grouper software incorrectly identified by the original § 30.710 How are payments for inpatient code, that the presence of a severe or medical services determined? program. Each payment is derived by multiplying the prospectively concomitant medical condition made (a) OWCP will pay for inpatient established scaled relative weight for treatment especially difficult, or that the medical services according to pre- the service’s clinical APC by a provider possessed unusual determined, condition-specific rates conversion factor to arrive at a national qualifications. In itself, board based on the Inpatient Prospective unadjusted payment rate for the APC. certification in a specialty is not Payment System (IPPS) devised by The labor portion of the national sufficient evidence of unusual CMS. Using this system, payment is unadjusted payment rate is further qualifications to justify a charge in derived by multiplying the diagnosis- adjusted by the hospital wage index for excess of the maximum allowable related group (DRG) weight assigned to the area where payment is being made. amount set by OWCP. These are the the hospital discharge by the provider- (c) If a payable service has no only three circumstances that will specific factors. assigned APC, the payment will be (1) All inpatient hospital discharges justify reevaluation of the paid amount. derived from the OWCP Medical Fee (2) A list of district offices and their will be classified according to the DRGs Schedule. respective areas of jurisdiction is prescribed by CMS in the form of the (d) OWCP shall review the pre- available upon request from the U.S. DRG Grouper software program. On this determined outpatient hospital rates at Department of Labor, Office of Workers’ list, each DRG represents the average least once a year, and may adjust any or Compensation Programs, Washington, resources necessary to provide care in a all components when OWCP deems it DC 20210, or at http://www.dol.gov/ case in that DRG relative to the national necessary or appropriate. average of resources consumed per case. owcp/energy/index.htm. Within 30 days (2) The provider-specific factors will ■ 55c. Revise newly redesignated of receiving the request for be provided by CMS in the form of their §§ 30.712 and 30.713 to read as follows: reconsideration, the district office shall respond in writing stating whether or IPPS Pricer software program. The § 30.712 When and how are fees reduced? software takes into consideration the not an additional amount will be (a) OWCP shall accept a provider’s type of facility, census division, actual allowed as reasonable, considering the geographic location of the hospital, case designation of the code to identify a evidence submitted. mix cost per discharge, number of billed procedure or service if the code (b) If the district office issues a hospital beds, intern/beds ratio, is consistent with medical reports and decision that continues to disallow a operating cost to charge ratio, and other other evidence, and will pay no more contested amount, the provider may factors used by CMS to determine the than the maximum allowable fee for that apply to the Regional Director of the specific rate for a hospital discharge procedure. If the code is not consistent region with jurisdiction over the district under their IPPS. OWCP may devise with the medical and other evidence or office. The application must be filed price adjustment factors as appropriate where no code is supplied, the bill will within 30 days of the date of such using OWCP’s processing experience be returned to the provider for decision, and it may be accompanied by and internal data. correction and resubmission. additional evidence. Within 60 days of (3) OWCP will base payments to (b) If the charge submitted for a receipt of such application, the Regional facilities excluded from CMS’s IPPS on service supplied to an employee Director shall issue a decision in writing consideration of detailed medical exceeds the maximum amount stating whether or not an additional reports and other evidence. determined to be reasonable according amount will be allowed as reasonable, (4) OWCP shall review the pre- to the schedule, OWCP shall pay the considering the evidence submitted. determined hospital rates at least once amount allowed by the schedule for that This decision is final, and shall not be a year, and may adjust any or all service and shall notify the provider in subject to further review. components when OWCP deems it writing that payment was reduced for ■ 56. Revise § 30.715 to read as follows: necessary or appropriate. that service in accordance with the (b) OWCP shall review the schedule schedule. OWCP shall also notify the § 30.715 What are the grounds for of fees at least once a year, and may provider of the method for requesting excluding a provider from payment under this part? adjust the schedule or any of its reconsideration of the balance of the components when OWCP deems it charge. The decision of OWCP to pay A physician, hospital, or provider of necessary or appropriate. less than the charged amount is final medical services or supplies shall be when issued and is not subject to the excluded from payment under this part § § 30.711 through 30.713 [Redesignated adjudicatory process described in if such physician, hospital or provider as §§ 30.712 through 30.714] subpart D of this part. has: ■ 55a. Redesignate §§ 30.711 through (a) Been convicted under any criminal 30.713 as §§ 30.712 through 30.714. § 30.713 If OWCP reduces a fee, may a statute of fraudulent activities in ■ provider request reconsideration of the connection with any Federal or state 55b. Add new § 30.711 to read as reduction? follows: program for which payments are made (a) A physician or other provider to providers for similar medical, § 30.711 How are payments for outpatient whose charge for service is only surgical or hospital services, appliances medical services determined? partially paid because it exceeds a or supplies; (a) OWCP will pay for outpatient maximum allowable amount set by (b) Been excluded or suspended, or medical services according to OWCP may, within 30 days, request has resigned in lieu of exclusion or Ambulatory Payment Classifications reconsideration of the fee suspension, from participation in any (APC) based on the Outpatient determination. Federal or state program referred to in Prospective Payment System devised by (1) The provider should make such a paragraph (a) of this section; CMS. request to the district office with (c) Knowingly made, or caused to be (b) All outpatient medical services jurisdiction over the employee’s claim. made, any false statement or will be classified according to the APC The request must be accompanied by misrepresentation of a material fact in
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connection with a determination of the Inspector General (DOL OIG) for its (b) A summary of the information, right to reimbursement under this part, consideration. If the information was with supporting documentation, upon or in connection with a request for provided directly to DOL OIG, DOL OIG which OWCP has relied in reaching an payment; will notify OWCP of its receipt and initial decision that exclusion (d) Submitted, or caused to be implement the appropriate action proceedings should begin; submitted, three or more bills or within its authority, unless such (c) An invitation to the provider to: requests for payment within a 12-month notification will or may compromise the (1) Resign voluntarily from period under this subpart containing identity of confidential sources, or participation in the EEOICPA program charges which OWCP finds to be compromise or prejudice an ongoing or without admitting or denying the substantially in excess of such potential criminal investigation. allegations presented in the letter; or provider’s customary charges, unless (b) DOL OIG will conduct such action (2) Request a decision on exclusion OWCP finds there is good cause for the as it deems necessary, and, when based upon the existing record and any bills or requests containing such appropriate, provide a written report as additional documentary information the charges; described in paragraph (c) of this provider may wish to furnish; (e) Knowingly failed to timely section to OWCP. OWCP will then (d) A notice of the provider’s right, in reimburse employees for treatment, determine whether to initiate the event of an adverse ruling by the services or supplies furnished under procedures to exclude the provider from deciding official, to request a formal this subpart and paid for by OWCP; participation in the EEOICPA program. hearing before an administrative law (f) Failed, neglected or refused on If DOL OIG determines not to take any judge; three or more occasions during a 12- further action, it will promptly notify (e) A notice that should the provider month period to submit full and OWCP of such determination. fail to respond (as described in § 30.719) accurate medical reports, or to respond (c) If DOL OIG discovers reasonable the letter of intent within 60 days of to requests by OWCP for additional cause to believe that violations of receipt, the deciding official may deem reports or information, as required by § 30.715 have occurred, it shall, when the allegations made therein to be true § 30.700; appropriate, prepare a written report, and may order exclusion of the provider (g) Knowingly furnished treatment, i.e., investigative memorandum, and without conducting any further services or supplies which are forward the report along with proceedings; and substantially in excess of the employee’s supporting evidence to OWCP. The (f) The address to where the response needs, or of a quality which fails to meet report shall be in the form of a single from the provider should be sent. professionally recognized standards; memorandum in narrative form with (h) Collected or attempted to collect § 30.719 What requirements must the attachments. provider’s response and OWCP’s decision from the employee, either directly or (1) The report should contain all of meet? through a collection agent, an amount in the following elements: (a) The provider’s response shall be in excess of the charge allowed by OWCP (i) A brief description and explanation writing and shall include an answer to for the procedure performed, and has of the subject provider or providers; OWCP’s invitation to resign voluntarily. failed or refused to make appropriate (ii) A concise statement of the DOL If the provider does not offer to resign, refund to the employee, or to cease such OIG’s findings upon which exclusion he or she shall request that a collection attempts, within 60 days of may be based; determination be made upon the the date of the decision of OWCP; (iii) A summary of the events that (i) Failed to inform OWCP of any make up the DOL OIG’s findings; existing record and any additional change in their provider status as (iv) A discussion of the information provided. required in § 30.700; or documentation supporting DOL OIG’s (b) Should the provider fail to (j) Engaged in conduct related to care findings; respond to the letter of intent within 60 of an employee’s occupational illness or (v) A discussion of any other days of receipt, the deciding official covered illness that OWCP finds to be information that may have bearing upon may deem the allegations made therein misleading, deceptive or unfair. the exclusion process; and to be true and may order exclusion of ■ (vi) The supporting documentary the provider. 57. Amend § 30.716 by adding (c) The provider may inspect or paragraph (c) to read as follows: evidence including any expert opinion rendered in the case. request copies of information in the § 30.716 What will cause OWCP to (2) The attachments to the report record at any time prior to the deciding automatically exclude a physician or other should be provided in a manner that official’s decision by making such provider of medical services and supplies? they may be easily referenced from the request to OWCP within 20 days of * * * * * report. receipt of the letter of intent. (c) A provider may be excluded on a (d) OWCP shall have 30 days to voluntary basis at any time. § 30.718 How is a provider notified of answer the provider’s response. That OWCP’s intent to exclude him or her? ■ 58. Revise §§ 30.717 through 30.721 to answer will be forwarded to the read as follows: Following receipt of the investigative provider, who shall then have 15 days report, OWCP will determine if there to reply. Any response from the exists a reasonable basis to exclude the provider may be forwarded to DOL OIG, § 30.717 When are OWCP’s exclusion provider or providers. If OWCP should OWCP deem it appropriate, to procedures initiated? determines that such a basis exists, obtain additional information which (a) Upon receipt of information OWCP shall initiate the exclusion may be relevant to the provider’s indicating that a physician, hospital or process by sending the provider a letter, response. provider of medical services or supplies by certified mail and with return receipt (e) The deciding official shall be the (hereinafter the provider) has or may requested (or equivalent services from a Regional Director in the region in which have engaged in activities enumerated commercial carrier), which shall contain the provider is located unless otherwise in paragraphs (c) through (j) of § 30.715, the following: specified by the Director for Energy OWCP will forward that information to (a) A concise statement of the grounds Employees Occupational Illness the Department of Labor’s Office of upon which exclusion shall be based; Compensation.
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(f) The deciding official shall issue his However, a specific designation of (4) A substantial question of law, or her decision in writing, and shall issues is required if the provider wishes policy, or discretion is involved; or send a copy of the decision to the to interpose affirmative defenses, or (5) A prejudicial error of procedure provider by certified mail, return receipt request the certification of questions for was committed. requested (or equivalent service from a an advisory opinion. (d) Each issue shall be separately commercial carrier). The decision shall ■ 59. Amend § 30.723 by revising numbered and plainly and concisely advise the provider of his or her right paragraph (b) to read as follows: stated, and shall be supported by to request, within 30 days of the date of detailed citations to the record when the adverse decision, a formal hearing § 30.723 How will the administrative law assignments of error are based on the before an administrative law judge judge conduct the hearing and issue the record, and by statutes, regulations or recommended decision? under the procedures set forth in principal authorities relied upon. § 30.720. The filing of a request for a * * * * * Except for good cause shown, no hearing within the time specified shall (b) The administrative law judge shall assignment of error by the provider shall stay the effectiveness of the decision to receive such relevant evidence as may rely on any question of fact or law upon exclude. be adduced at the hearing. Parties to the which the administrative law judge had hearing are the provider and OWCP. not been afforded an opportunity to § 30.720 How can an excluded provider Evidence shall be presented under oath, pass. request a hearing? orally or in the form of written (e) If a written statement of objection A request for a hearing shall be sent statements. The administrative law is filed within the allotted period of to the deciding official and shall judge shall consider the notice and time, the Director for Energy Employees contain: response, including all pertinent Occupational Illness Compensation will (a) A concise notice of the issues on documents accompanying them, and review the objection. The Director will which the provider desires to give may also consider any evidence which forward the written objection to DOL evidence at the hearing; refers to the provider or to any claim OIG, which will have 14 calendar days (b) Any request for the presentation of with respect to which the provider has from that date to respond. Any response oral argument or evidence; and provided medical services, hospital from DOL OIG will be forwarded to the (c) Any request for a certification of services, or medical services and provider, which will have 14 calendar questions concerning professional supplies, and such other evidence as the days from that date to reply. medical standards, medical ethics or administrative law judge may determine (f) The Director for Energy Employees medical regulation for an advisory to be necessary or useful in evaluating Occupational Illness Compensation will opinion from a competent recognized the matter. consider the recommended decision, the professional organization or Federal, * * * * * written record and any response or state or local regulatory body. ■ 60. Revise § 30.724 to read as follows: reply received and will then issue a written, final decision either upholding § 30.721 How are hearings assigned and § 30.724 How does a recommended scheduled? decision become final? or reversing the exclusion. (g) If no written statement of objection (a) If the deciding official receives a (a) Within 30 days from the date the is filed within the allotted period of timely request for hearing, he or she recommended decision is issued, the time, the Director for Energy Employees shall refer the matter to the Chief provider may state, in writing, any Occupational Illness Compensation will Administrative Law Judge of the objections to the recommended issue a written, final decision accepting Department of Labor, who shall assign decision. This written statement should the recommendation of the it for an expedited hearing. The be filed with the Director for Energy administrative law judge. administrative law judge assigned to the Employees Occupational Illness (h) The decision of the Director for matter shall consider the request for Compensation. hearing, act on all requests therein, and (b) For the purposes of determining Energy Employees Occupational Illness issue a Notice of Hearing and schedule whether the written statement referred Compensation shall be final with for the conduct of the hearing. A copy to in paragraph (a) of this section has respect to the provider’s participation in of the hearing notice shall be served on been timely filed with the Director for the program, and shall not be subject to the provider by certified mail, return Energy Employees Occupational Illness further review. receipt requested. The Notice of Hearing Compensation, the statement will be ■ 61. Amend § 30.725 by revising and schedule shall include: considered to be ‘‘filed’’ on the date that paragraph (a) to read as follows: (1) A ruling on each item raised in the the provider mails it to the Director, as request for hearing; § 30.725 What are the effects of non- determined by postmark or other automatic exclusion? (2) A schedule for the prompt carrier’s date marking, or the date that (a) OWCP shall give notice of the disposition of all preliminary matters, such written statement is actually exclusion of a physician, hospital or including requests for the certification received by the Director, whichever is provider of medical services or supplies of questions to advisory bodies; and earlier. (3) A scheduled hearing date not less (c) Written statements objecting to the to: than 30 days after the date the schedule recommended decision may be filed (1) All OWCP district offices; is issued, and not less than 15 days after upon one or more of the following (2) CMS; the scheduled conclusion of preliminary grounds: (3) All employees who are known to matters, provided that the specific time (1) A finding or conclusion of material have had treatment, services or supplies and place of the hearing may be set on fact is not supported by substantial from the excluded provider within the 10 days’ notice. evidence; six-month period immediately (b) The provider is entitled to be (2) A necessary legal conclusion is preceding the order of exclusion; and heard on any matter placed in issue by erroneous; (4) The state or local authority his or her response to the notice of (3) The decision is contrary to law or responsible for licensing or certifying intent to exclude, and may designate to the duly promulgated rules or the excluded provider. ‘‘all issues’’ for purposes of hearing. decisions of the Director; * * * * *
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■ 62. Amend § 30.726 by revising quarter is one during which the must meet his or her burden of proof to paragraph (c) to read as follows: employee was retired. establish each of the criteria listed in (f) Trigger month means the calendar paragraph (a) of this section, at any § 30.726 How can an excluded provider be month during which the employee first point when the claimant is unable to reinstated? experienced a loss in wages due to meet such burden and proceed to issue * * * * * exposure to a toxic substance at a DOE a recommended decision to deny the (c) A request for reinstatement may be facility or RECA section 5 facility. request. accompanied by a request for oral (g) Wages mean all monetary ■ 66. Revise § 30.806 to read as follows: presentation. Oral presentations will be payments that the covered Part E allowed only in unusual circumstances employee earns from his or her regular § 30.806 What kind of medical evidence where it will materially aid the decision employment or services that are taxed as must the claimant submit to prove that he process. income by the Internal Revenue Service. or she lost wages due to a covered illness? * * * * * Salaries, overtime compensation, sick OWCP requires the submission of ■ 63. Amend § 30.800 by revising leave, vacation leave, tips, and bonuses rationalized medical evidence of paragraph (c) to read as follows: received for employment services are sufficient probative value to convince considered wages under this subpart. the fact-finder that the covered Part E § 30.800 What types of wage-loss are However, capital gains, IRA employee experienced a loss in wages in compensable under Part E of EEOICPA? distributions, pensions, annuities, his or her trigger month due to a * * * * * unemployment compensation, state covered illness, i.e., medical evidence (c) Whether the employee’s inability workers’ compensation benefits, based on a physician’s fully explained to earn at least as much as his or her medical retirement benefits, and Social and reasoned decision (see average annual wage was due to a Security benefits are not considered § 30.805(a)(3)). A loss in wages in the covered illness as defined in § 30.5(s). wages. trigger month due solely to non-covered ■ 64. Amend § 30.801 as follows: * * * * * illness matters, such as a reduction in ■ a. Revise paragraph (a); ■ force or voluntary retirement, is not ■ b. Redesignate paragraphs (c), (d), and 65. Revise § 30.805 to read as follows: proof of compensable wage-loss under (e) as paragraphs (d), (e), and (h), § 30.805 What are the criteria for eligibility Part E. respectively; for wage-loss benefits under Part E? ■ 67. Add § 30.807 immediately ■ c. Add new paragraph (c); (a) In addition to satisfying the preceding the undesignated center ■ d. Revise newly redesignated general eligibility requirements heading ‘‘Determinations of Average paragraph (e); and applicable to all Part E claims, a Annual Wage and Percentages of Loss’’ ■ e. Add paragraphs (f) and (g). claimant seeking benefits for calendar to read as follows: The revisions and additions read as years of qualifying wage-loss has the follows: § 30.807 What factual evidence does burden of proof to establish each of the OWCP use to determine a covered Part E § 30.801 What special definitions does following criteria: employee’s average annual wage? (1) He or she held a job at which he OWCP use in connection with Part E wage- (a) OWCP may rely on annual or loss determinations? or she earned wages; quarterly wage information reported to * * * * * (2) He or she experienced a loss in those wages in a particular month the Social Security Administration to (a) Average annual wage means 12 establish a covered Part E employee’s times the average monthly wage of a (referred to as the ‘‘trigger month’’ in this section); presumed average annual wage (see covered Part E employee for the 36 § 30.810) and the duration and extent of months preceding the month during (3) The wage-loss in the trigger month was caused by the covered Part E any years of wage-loss that are which he or she first experienced wage- compensable under Part E of the Act loss due to exposure to a toxic substance employee’s covered illness, i.e., that he or she would have continued to earn (see § 30.811). OWCP may also rely on at a DOE facility or RECA section 5 other probative evidence of a covered facility (referred to as the ‘‘trigger wages in the trigger month from that employment but for the covered illness; Part E employee’s wages, and may ask month’’), excluding any months during the claimant for additional evidence which the employee was unemployed. (4) His or her average annual wage; (5) His or her normal retirement age needed to make this determination, if Because being ‘‘retired’’ is not and the calendar year in which he or necessary. For the purposes of making equivalent to being ‘‘unemployed,’’ she would reach that age; these two types of determinations, months during which an employee had (6) Beginning with the calendar year OWCP will consider all monetary no wages because he or she was retired of the trigger month, the percentage of payments that the covered Part E will not be excluded from this the average annual wage that was employee received as wages (see calculation. earned in each calendar year up to and § 30.801(g)). * * * * * including the retirement year; (b) A claimant who disagrees with the (c) Month during which the employee (7) The number of those calendar evidence OWCP has obtained under was unemployed means any month years in which the covered illness paragraph (a) of this section and alleges during which the covered Part E caused the covered Part E employee to a different average annual wage for the employee had $250 (in constant 2013 earn 50% or less of his or her average covered Part E employee, or that there dollars) or less in wages unless the annual wage; and was a greater duration or extent of wage- month is one during which the (8) The number of those calendar loss, may submit records that were employee was retired. years in which the covered illness produced in the ordinary course of * * * * * caused him or her to earn more than business due to the employee’s (e) Quarter during which the 50% but not more than 75% of his or employment to rebut that evidence, to employee was unemployed means any her average annual wage. the extent that such records are quarter during which the covered Part E (b) OWCP will discontinue determined to be authentic by OWCP. employee had $750 (in constant 2013 development of a request for wage-loss The average annual wage and/or wage- dollars) or less in wages unless the benefits, during which the claimant loss of the covered Part E employee will
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then be determined by OWCP in the calendar year in which the employee (b) An employee’s impairment rating exercise of its discretion. reached normal retirement age (as may be comprised of multiple ■ 68. Amend § 30.810 by revising defined in § 30.801(b)), whichever impairments of organs and body paragraphs (a) through (d) to read as occurred first. functions due to multiple covered follows: * * * * * illnesses. If an impairment award is ■ 70. Amend § 30.901 by revising payable based on a whole person § 30.810 How will OWCP calculate the paragraphs (a) and (b) to read as follows: impairment rating in which at least one average annual wage of a covered Part E of the impairments is subject to a employee? § 30.901 How does OWCP determine the reduction under §§ 30.505(b) and/or * * * * * extent of an employee’s impairment that is 30.626, OWCP will reduce the due to a covered illness contracted through (a) Aggregate the wages for the 36 impairment award proportionately. months that preceded the trigger month, exposure to a toxic substance at a DOE excluding any month during which the facility or a RECA section 5 facility, as ■ 72. Amend § 30.908 by revising employee was unemployed; appropriate? paragraphs (b) and (c) to read as follows: (b) Add any additional wages earned (a) OWCP will determine the amount by the employee during those same of impairment benefits to which an § 30.908 How will the FAB evaluate new months as evidenced by records employee is entitled based on one or medical evidence submitted to challenge more impairment evaluations submitted the impairment determination in the described in § 30.807; recommended decision? (c) Divide the sum of paragraphs (a) by physicians. An impairment and (b) of this section by 36, less the evaluation shall contain the physician’s * * * * * number of months during which the opinion on the extent of whole person (b) The employee shall bear the employee was unemployed; and impairment of all organs and body burden of proving that the additional (d) Multiply this figure by 12 to functions of the employee that are impairment evaluation submitted is calculate the covered Part E employee’s compromised or otherwise affected by more probative than the evaluation average annual wage. the employee’s covered illness or relied upon by the district office to ■ 69. Amend § 30.811 as follows: illnesses, which shall be referred to as determine the employee’s recommended ■ a. Revise paragraph (a); an ‘‘impairment rating.’’ impairment rating. ■ (b) In making impairment benefit b. Remove paragraph (b); and (c) If an employee submits an ■ c. Redesignate paragraphs (c) and (d) determinations, OWCP will only additional impairment evaluation that as paragraphs (b) and (c), respectively. consider medical reports from differs from the impairment evaluation The revision reads as follows: physicians who are certified by the relevant medical board and who satisfy relied upon by the district office, the § 30.811 How will OWCP calculate the any additional criteria determined by FAB will review all relevant evidence of duration and extent of a covered Part E OWCP to be necessary to qualify to impairment in the record, and will base employee’s initial period of compensable perform impairment evaluations under its determinations regarding impairment wage-loss? Part E, including any specific training upon the evidence it considers to be (a) To determine the initial calendar and experience related to particular most probative. The FAB will determine years of wage-loss, OWCP will use the conditions and other objective factors. the impairment rating after it has evidence it receives under §§ 30.805 * * * * * evaluated all relevant evidence and through 30.807 to compare the calendar- ■ 71. Revise § 30.902 to read as follows: argument in the record. year wages for the covered Part E Signed at Washington, DC, this 28th day of employee, as adjusted, with the average § 30.902 How will OWCP calculate the January, 2019. annual wage determined under § 30.810 amount of the award of impairment benefits for each calendar year beginning with that is payable under Part E? Julia K. Hearthway, the calendar year that includes the (a) OWCP will multiply the Director, Office of Workers’ Compensation trigger month, and concluding with the percentage points of the impairment Programs. last calendar year of wage-loss prior to rating by $2,500 to calculate the amount [FR Doc. 2019–00581 Filed 2–7–19; 8:45 am] the submission of the claim or the of the award. BILLING CODE 4510–CR–P
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Part IV
Department of the Treasury
Office of the Comptroller of the Currency 12 CFR Parts 1, 3, 5, et al.
Federal Reserve System
12 CFR Parts 206, 208, 211, et al.
Federal Deposit Insurance Corporation
12 CFR parts 303, 324, 337, et al. Regulatory Capital Rule: Capital Simplification for Qualifying Community Banking Organizations; Proposed Rule
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DEPARTMENT OF THE TREASURY Deposit Insurance Act and regulations ‘‘Docket ID OCC–2018–0040’’ in the implementing that section, as Search box and click ‘‘Search.’’ Click on Office of the Comptroller of the applicable, and the generally applicable ‘‘Open Docket Folder’’ on the right side Currency capital requirements under the agencies’ of the screen. Comments and supporting capital rule. materials can be viewed and filtered by 12 CFR Parts 1, 3, 5, 6, 23, 24, 32, 34, DATES: Comments must be received by clicking on ‘‘View all documents and 160, and 192 April 9, 2019. comments in this docket’’ and then [Docket ID OCC–2018–0040] ADDRESSES: Comments should be using the filtering tools on the left side directed to: of the screen. RIN 1557–AE59 • OCC: You may submit comments to Click on the ‘‘Help’’ tab on the Regulations.gov home page to get FEDERAL RESERVE SYSTEM the OCC by any of the methods set forth below. Commenters are encouraged to information on using Regulations.gov. submit comments through the Federal The docket may be viewed after the 12 CFR Parts 206, 208, 211, 215, 217, close of the comment period in the same 223, 225, 238, and 251 eRulemaking Portal or email, if possible. Please use the title ‘‘Regulatory Capital manner as during the comment period. • Viewing Comments Personally: You [Regulation Q; Docket No. R–1638] Rule: Capital Simplification for may personally inspect comments at the Qualifying Community Banking RIN 7100–AF29 OCC, 400 7th Street SW, Washington, Organizations’’ to facilitate the DC 20219. For security reasons, the OCC FEDERAL DEPOSIT INSURANCE organization and distribution of the requires that visitors make an CORPORATION comments. You may submit comments appointment to inspect comments. You by any of the following methods: may do so by calling (202) 649–6700 or, 12 CFR Parts 303, 324, 337, 347, 362, • Federal eRulemaking Portal— for persons who are deaf or hearing 365, and 390 ‘‘Regulations.gov’’: Go to impaired, TTY, (202) 649–5597. Upon www.regulations.gov. Enter ‘‘Docket ID RIN 3064–AE91 arrival, visitors will be required to OCC–2018–0040’’ in the Search Box and present valid government-issued photo click ‘‘Search.’’ Click on ‘‘Comment Regulatory Capital Rule: Capital identification and submit to security Now’’ to submit public comments. Simplification for Qualifying screening in order to inspect comments. • Click on the ‘‘Help’’ tab on the Community Banking Organizations Board: You may submit comments, Regulations.gov home page to get identified by Docket No. R–1638, by any AGENCY: Office of the Comptroller of the information on using Regulations.gov, of the following methods: Currency, Treasury; the Board of including instructions for submitting • Agency website: http:// Governors of the Federal Reserve public comments. • www.federalreserve.gov. Follow the System; and the Federal Deposit Email: regs.comments@ instructions for submitting comments at Insurance Corporation. occ.treas.gov. • http://www.federalreserve.gov/general ACTION: Notice of proposed rulemaking. Mail: Legislative and Regulatory info/foia/ProposedRegs.cfm. Activities Division, Office of the • Email: regs.comments@ SUMMARY: The Office of the Comptroller Comptroller of the Currency, 400 7th federalreserve.gov. Include docket of the Currency (OCC), the Board of Street SW, Suite 3E–218, Washington, number in the subject line of the Governors of the Federal Reserve DC 20219. • message. System (Board), and the Federal Deposit Hand Delivery/Courier: 400 7th • Fax: (202) 452–3819 or (202) 452– Insurance Corporation (FDIC) are Street SW, Suite 3E–218, Washington, 3102. inviting public comment on a notice of DC 20219. • Mail: Ann E. Misback, Secretary, proposed rulemaking (proposal) that • Fax: (571) 465–4326. Board of Governors of the Federal would provide for a simple measure of Instructions: You must include Reserve System, 20th Street and capital adequacy for certain community ‘‘OCC’’ as the agency name and ‘‘Docket Constitution Avenue NW, Washington, banking organizations, consistent with ID OCC–2018–0040’’ in your comment. DC 20551. All public comments are section 201 of the Economic Growth, In general, the OCC will enter all available from the Board’s website at Regulatory Relief, and Consumer comments received into the docket and http://www.federalreserve.gov/general Protection Act. Under the proposal, publish the comments on the info/foia/ProposedRegs.cfm as most depository institutions and Regulations.gov website without submitted, unless modified for technical depository institution holding change, including any business or reasons. Accordingly, comments will companies that have less than $10 personal information provided such as not be edited to remove any identifying billion in total consolidated assets, that name and address information, email or contact information. Public meet risk-based qualifying criteria, and addresses, or phone numbers. comments may also be viewed that have a community bank leverage Comments received, including electronically or in paper form in Room ratio (as defined in the proposal) of attachments and other supporting 3515, 1801 K Street NW (between 18th greater than 9 percent would be eligible materials, are part of the public record and 19th Street NW), Washington, DC to opt into a community bank leverage and subject to public disclosure. Do not 20006 between 9:00 a.m. and 5:00 p.m. ratio framework. Such banking include any information in your on weekdays. organizations that elect to use the comment or supporting materials that FDIC: You may submit comments, community bank leverage ratio and that you consider confidential or identified by RIN 3064–AE91 by any of maintain a community bank leverage inappropriate for public disclosure. the following methods: ratio of greater than 9 percent would not You may review comments and other • Agency website: https:// be subject to other risk-based and related materials that pertain to this www.FDIC.gov/regulations/laws/federal. leverage capital requirements and rulemaking action by any of the Follow instructions for submitting would be considered to have met the following methods: comments on the Agency website. well capitalized ratio requirements for • Viewing Comments Electronically: • Mail: Robert E. Feldman, Executive purposes of section 38 of the Federal Go to www.regulations.gov. Enter Secretary, Attention: Comments/Legal
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ESS, Federal Deposit Insurance Catherine Wood, Counsel, cawood@ financial crisis of 2007–09.1 The capital Corporation, 550 17th Street NW, fdic.gov; Alexander Bonander, Attorney, rule strengthened the capital Washington, DC 20429. [email protected]; Supervision requirements applicable to banking • Hand Delivered/Courier: Comments Branch, Legal Division, Federal Deposit organizations 2 supervised by the may be hand-delivered to the guard Insurance Corporation, 550 17th Street agencies by improving both the quality station at the rear of the 550 17th Street NW, Washington, DC 20429. and quantity of regulatory capital and NW, building (located on F Street) on SUPPLEMENTARY INFORMATION: increasing risk-sensitivity. For example, business days between 7:00 a.m. and the capital rule introduced a minimum 5:00 p.m. Table of Contents common equity tier 1 capital • Email: [email protected]. I. Background requirement of 4.5 percent and Include the RIN 3064–AE91 on the II. Summary of the Proposal strengthened the qualifying criteria for subject line of the message. A. Overview of the Community Bank regulatory capital instruments, which • Public Inspection: All comments Leverage Ratio Framework had the effect of making the existing received must include the agency name B. Qualifying Community Banking capital requirements more stringent.3 Organization and RIN 3064–AE91 for this rulemaking. 1. Total Consolidated Assets The capital rule also raised the All comments received will be posted 2. Total Off-balance Sheet Exposures minimum tier 1 risk-based capital without change to https://www.fdic.gov/ 3. Total Trading Assets and Trading requirement from 4 percent to 6 percent regulations/laws/federal/, including any Liabilities and, for advanced approaches banking personal information provided. Paper 4. Mortgage Servicing Assets organizations only,4 established a copies of public comments may be 5. Temporary Difference Deferred Tax supplementary leverage ratio of 3 ordered from the FDIC Public Assets percent.5 Information Center, 3501 North Fairfax 6. Advanced Approaches Banking Organization Since the issuance of the capital rule Drive, Room E–1002, Arlington, VA C. CBLR Tangible Equity in 2013, community banking 22226 by telephone at (877) 275–3342 or 1. Minority Interests organizations have raised concerns (703) 562–2200. 2. Accumulated Other Comprehensive regarding the regulatory burden, FOR FURTHER INFORMATION CONTACT: Income complexity, and costs associated with OCC: Christine A. Smith, Risk 3. Intangible Assets certain aspects of the capital rule. In Analyst; or David Elkes, Risk Expert; or 4. Deferred Tax Assets March 2017, the agencies published the D. Average Total Consolidated Assets JungSup Kim, Risk Specialist, Capital (CBLR Denominator) Economic Growth and Regulatory Policy (202–649–6370); or Carl E. Calibration of the Community Bank Paperwork Reduction Act of 1996 Kaminski, Special Counsel; or Daniel Leverage Ratio (EGRPRA) Joint Report to Congress.6 In Perez, Attorney; or Rima Kundnani, F. Election to Use the Community Bank Attorney, Chief Counsel’s Office, (202) Leverage Ratio Framework 1 The Board and OCC issued a joint final rule on 649–5490, for persons who are deaf or G. Compliance with the Proposed CBLR October 11, 2013 (78 FR 62018), and the FDIC hearing impaired, TTY, (202) 649–5597, Framework issued a substantially identical interim final rule on September 10, 2013 (78 FR 55340). On April 14, Office of the Comptroller of the 1. Definition of a qualifying community banking organization 2014 (79 FR 20754), the FDIC adopted the interim Currency, 400 7th Street SW, 2. Treatment of a community banking final rule as a final rule with no substantive Washington, DC 20219. organization that falls below the CBLR changes. 2 Board: Constance M. Horsley, Deputy Requirement Banking organizations subject to the agencies’ capital rule include national banks, state member Associate Director, (202) 452–5239; Juan a. CBLR Levels for Certain PCA Categories banks, insured state nonmember banks, savings Climent, Manager, (202) 872–7526; b. Critically Undercapitalized Capital associations, and top-tier bank holding companies Sviatlana Phelan, Senior Supervisory Category and savings and loan holding companies domiciled Financial Analyst, (202) 912–4306; c. Effect of CBLR Levels on Other in the United States not subject to the Board’s Small Regulations Bank Holding Company and Savings and Loan Andrew Willis, Senior Supervisory Holding Company Policy Statement (12 CFR part Financial Analyst, (202) 912–4323; d. Alternative Approach H. Other Affected Regulations 225, appendix C), excluding certain savings and Division of Supervision and Regulation; I. Deposit Insurance Assessment loan holding companies that are substantially or Benjamin McDonough, Assistant engaged in insurance underwriting or commercial Regulations activities or that are estate trusts, and bank holding General Counsel, (202) 452–2036; Mark J. Illustrative Reporting Form companies and savings and loan holding companies Buresh, Counsel, (202) 452–5270; or K. Consultation with State Bank that are employee stock ownership plans. Andrew Hartlage, Counsel, (202) 452– Supervisors 3 12 CFR 3.20 (OCC); 12 CFR 217.20 (Board); 12 6483; Legal Division, Board of III. Regulatory Analyses CFR 324.20 (FDIC). Governors of the Federal Reserve A. Paperwork Reduction Act 4 A banking organization is an advanced B. Regulatory Flexibility Act approaches banking organization if it has System, 20th and C Streets NW, consolidated assets of at least $250 billion or if it Washington, DC 20551. For the hearing C. Plain Language D. OCC Unfunded Mandates Reform Act of has consolidated on-balance sheet foreign impaired only, Telecommunication 1995 exposures of at least $10 billion, or if it is a Device for the Deaf (TDD), (202) 263– subsidiary of a depository institution, bank holding E. Riegle Community Development and company, savings and loan holding company, or 4869. Regulatory Improvement Act of 1994 intermediate holding company that is an advanced FDIC: Benedetto Bosco, Chief, Capital approaches banking organization. See 12 CFR 3.100 Policy Section, [email protected]; I. Background (OCC); 12 CFR 217.100 (Board); 12 CFR 324.100 Stephanie Lorek, Senior Capital Markets In 2013, the Office of the Comptroller (FDIC). The agencies are seeking comment on the definition of an advanced approaches banking Policy Analyst, [email protected]; Dushan of the Currency (OCC), the Board of organization. See https://www.federalreserve.gov/ Gorechan, Financial Analyst, Governors of the Federal Reserve newsevents/pressreleases/bcreg20181031a.htm [email protected]; Kyle McCormick, System (Board), and the Federal Deposit 5 12 CFR 3.10(a) (OCC); 12 CFR 217.10(a) (Board); Financial Analyst, kmccormick@ Insurance Corporation (FDIC) 12 CFR 324.10(a) (FDIC). fdic.gov; Capital Markets Branch, (collectively, the agencies) revised the 6 See Joint Report to Congress; Economic Growth and Regulatory Paperwork Reduction Act (March Division of Risk Management regulatory capital rule (capital rule) to 2017), https://www.ffiec.gov/pdf/2017_FFIEC_ Supervision, (202) 898–6888; or Michael address weaknesses in the capital EGRPRA_Joint-Report_to_Congress.pdf. EGRPRA, Phillips, Counsel, [email protected]; framework that became apparent in the Public Law 104–208, 110 Stat. 3009.
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the EGRPRA report, the agencies stated Section 201 of the Act defines the agencies intend for banking they are considering simplifications to CBLR as the ratio of a qualifying organizations with higher risk profiles the capital rule with the goal of community banking organization’s to remain subject to the generally meaningfully reducing regulatory CBLR tangible equity to its average total applicable capital requirements 12 to burden on community banking consolidated assets, both as reported on ensure that such banking organizations organizations while maintaining safety the qualifying community banking hold capital commensurate with the risk and soundness and the quality and organization’s applicable regulatory of their exposures and activities. Fourth, quantity of regulatory capital in the filing. In addition, the Act states that the consistent with the Act, the agencies banking system. In September 2017, the agencies may determine that a banking would maintain the supervisory actions agencies proposed simplifying certain organization is not a qualifying applicable under the PCA framework capital requirements for all banking community banking organization based and other statutes and regulations based organizations, except advanced on the banking organization’s risk on the capital ratios and risk profile of approaches banking organizations profile. The Act states that such a a banking organization. Finally, the (simplifications proposal).7 In an effort determination shall be based on CBLR framework is intended to provide to provide immediate relief, the consideration of off-balance sheet meaningful regulatory compliance agencies also extended transition exposures, trading assets and liabilities, burden relief and be relatively simple provisions for certain regulatory capital total notional derivatives exposures, and for banking organizations to implement. requirements that would be affected by such other factors as the agencies Under the proposal, a qualifying the simplifications proposal.8 determine appropriate. The Act also community banking organization would On May 24, 2018, the Economic specifies that the CBLR framework be defined as a depository institution or Growth, Regulatory Relief, and developed by the agencies does not depository institution holding company Consumer Protection Act (the Act) limit the authority of the Federal with less than $10 billion in total amended provisions in the Dodd-Frank banking agencies in effect as of the date consolidated assets with limited Wall Street Reform and Consumer of enactment of the Act. amounts of off-balance sheet exposures, Protection Act (Dodd-Frank Act) 9 as Finally, the Act directs the agencies to trading assets and liabilities, mortgage well as certain other statutes consult with applicable state bank servicing assets (MSAs), and deferred administered by the agencies.10 Section supervisors in carrying out section 201 tax assets (DTAs) arising from 201 of the Act, titled ‘‘Capital of the Act and to notify the applicable temporary differences that a banking Simplification for Qualifying state bank supervisor of any qualifying organization could not realize through Community Banks,’’ directs the agencies community banking organization that net operating loss carrybacks (temporary to develop a community bank leverage exceeds, or does not exceed after difference DTAs). In addition, an ratio (CBLR) of not less than 8 percent previously exceeding, the CBLR. advanced approaches banking organization would not be a qualifying and not more than 10 percent for II. Summary of the Proposal qualifying community banks (qualifying community banking organization. community banking organizations). The A. Overview of the Community Bank The CBLR would be calculated as the Act defines a qualifying community Leverage Ratio Framework ratio of tangible equity capital (CBLR banking organization as a depository The proposed CBLR framework, based tangible equity) divided by average total institution or depository institution on the requirements of section 201 of consolidated assets. Under the proposal, holding company with total the Act, is a simple alternative CBLR tangible equity would be defined consolidated assets of less than $10 methodology to measure capital as total bank equity capital or total billion. A qualifying community adequacy for qualifying community holding company equity capital, as banking organization that exceeds the banking organizations. The proposal applicable, prior to including minority CBLR level established by the agencies together with associated reporting interests, and excluding accumulated is considered to have met: (i) The requirement changes that the agencies other comprehensive income (AOCI), generally applicable leverage and risk- anticipate proposing would simplify DTAs arising from net operating loss based capital requirements under the regulatory requirements and provide and tax credit carryforwards, goodwill, agencies’ capital rule; (ii) the capital material regulatory relief to qualifying and other intangible assets (other than ratio requirements in order to be community banking organizations that MSAs), each as of the most recent considered well capitalized under the opt into the CBLR framework. calendar quarter and calculated in agencies’ prompt corrective action The agencies designed the CBLR accordance with a qualifying (PCA) framework (in the case of insured framework taking into account multiple community banking organization’s depository institutions); and (iii) any considerations, seeking to balance the regulatory reports. Average total other applicable capital or leverage simplicity of the framework with safety consolidated assets would be calculated requirements. In addition, the Act and soundness goals. First, the CBLR in a manner similar to the current tier directs the agencies to establish framework is intended to be available to 1 leverage ratio denominator in that procedures for the treatment of a meaningful number of well capitalized amounts deducted from the CBLR qualifying community banking banking organizations with less than numerator would also be excluded from organizations that fall below the CBLR $10 billion in total consolidated assets. the CBLR denominator. level established by the agencies.11 Second, the CBLR should be calibrated Under the proposal, a qualifying to not reduce the amount of capital community banking organization may 7 82 FR 49984 (October 27, 2017). currently held by qualifying community elect to use the CBLR framework if its 8 83 FR 55309 (November 21, 2017). The agencies banking organizations. Third, the CBLR is greater than 9 percent. A CBLR continue to evaluate comments on the greater than 9 percent, in conjunction simplifications proposal. demonstrate that it is not subject to any written with the proposed definitions of a 9 Public Law 111–203, 124 Stat. 1376. agreement, order, capital directive, or as applicable, qualifying community banking 10 See Public Law 115–174, 132 Stat. 1296. prompt corrective action directive, to meet and organization and CBLR tangible equity, 11 The agencies note that under existing legal maintain a specific capital level for any capital requirements applicable to holding companies and measure. See, e.g., 12 CFR 225.2. The same legal insured depository institutions, to be considered requirements would continue to apply under the 12 12 CFR 3.10(a)–(b) (OCC); 12 CFR 217.10(a)–(b) well capitalized a banking organization must CBLR framework. (Board); 12 CFR 324.10(a)–(b) (FDIC).
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should generally maintain the current proposal. The agencies intend to The agencies believe that banking level of capital held by these banking publish a separate information organizations that do not meet these organizations, while supporting the collection proposal in the Federal qualifying criteria should remain subject agencies’ goals of reducing regulatory Register to seek comment on revising to the generally applicable capital burden for community banking the reporting schedules and instructions requirements to ensure that such organizations and retaining safety and for purposes of the CBLR framework. banking organizations hold capital soundness in the banking system. The agencies are monitoring the commensurate with the risk profile of The proposal provides a regulatory impact of the upcoming implementation their activities. The agencies would capital treatment for a qualifying of the current expected credit losses monitor the appropriateness of the community banking organization that methodology (CECL) on community proposed qualifying criteria over time to elects to use the CBLR framework (CBLR banking organizations. In May 2018, the ensure that they remain effective in banking organization), but whose CBLR agencies issued a notice of proposed excluding banking organizations with subsequently falls to 9 percent or less, rulemaking to amend the capital rule in complex or potentially risky off-balance and continues to provide for the response to CECL (CECL transitions sheet activities from the CBLR agencies’ supervisory actions under NPR).13 The CECL transitions NPR framework. As mentioned previously, PCA and other applicable statutes and proposed an optional three-year the agencies developed these qualifying regulations. Specifically, for insured transition arrangement that would allow criteria in conjunction with the depository institutions, the proposal a banking organization to phase in any proposed CBLR of greater than 9 percent incorporates CBLR levels as proxies for adverse day-one regulatory capital and the CBLR tangible equity definition the following PCA categories: effects of CECL adoption on retained to create a simple alternative framework Adequately capitalized, earnings, DTAs, allowance for credit to the generally applicable capital undercapitalized and significantly losses, and average total consolidated requirements. undercapitalized. If a CBLR banking assets. These day-one regulatory capital Question 2: The agencies invite organization’s CBLR meets the effects would be phased in over the comment on the definition of a corresponding CBLR levels, it would be transition period on a straight line basis. qualifying community banking considered to have met the capital ratio Question 1: The agencies invite organization. What are the advantages requirements within the applicable PCA comment on the impact to the CBLR and disadvantages of the qualifying category and be subject to the same framework due to the upcoming criteria? What is the burden associated restrictions that currently apply to any implementation of CECL. What changes with determining whether a banking other insured depository institution in should the agencies consider? For organization meets the proposed the same PCA category. Further, the example, what are the advantages and qualifying criteria? What other criteria, proposal would not limit the agencies’ disadvantages of providing CBLR if any, should the agencies consider in authority to take any supervisory banking organizations an optional the proposed definition of a qualifying actions consistent with their transition arrangement to phase in any community banking organization? What supervisory authority under the PCA adverse day-one effects on the CBLR due are commenters’ views on the tradeoffs framework or other statutes or to the implementation of CECL? How between simplicity and having regulations. could any phase-in be included in the additional risk profile criteria? In The agencies are not proposing CBLR framework without creating specifying any alternative qualifying changes to the definition of the critically undue burden? criteria regarding a banking undercapitalized category under their organization’s risk profile, please PCA rules. Therefore, under the B. Qualifying Community Banking provide information on how alternative proposal, if an insured depository Organization qualifying criteria should be considered institution is considered significantly Under the proposal, a qualifying in conjunction with the calibration of undercapitalized, based on its CBLR, the community banking organization would the CBLR level and why the agencies insured depository institution would be be defined as a depository institution or should consider such alternative required to provide promptly to its depository institution holding company criteria. appropriate regulators such information that is not an advanced approaches 1. Total Consolidated Assets as is necessary to calculate the tangible banking organization and that meets the Under the proposal, a qualifying equity ratio as defined under the PCA following criteria (qualifying criteria), community banking organization would framework for insured depository each as described further below: be required to have less than $10 billion institutions. • Total consolidated assets of less The CBLR calculation would require in total consolidated assets as of the end than $10 billion; of the most recent calendar quarter, in significantly less data than are used to • Total off-balance sheet exposures accordance with the Act. Total calculate the generally applicable (excluding derivatives other than credit consolidated assets would be calculated capital requirements. The agencies derivatives and unconditionally therefore expect that a CBLR banking in accordance with the reporting cancelable commitments) of 25 percent organization would report its CBLR and or less of total consolidated assets; other relevant information on a simpler • framework by a depository institution or depository Total trading assets and trading institution holding company, based on the risk regulatory capital schedule, relative to liabilities of 5 percent or less of total Schedules RC–R of the Consolidated profile of the banking organization. This authority consolidated assets; would be reserved under the general reservation of Reports of Condition and Income (Call • MSAs of 25 percent or less of CBLR authority included in the capital rule, in which the CBLR framework would be codified. See 12 CFR Report) and HC–R of Form FR Y–9C. tangible equity; and The agencies are including in this 3.1(d) (OCC); 12 CFR 217.1(d) (Board); 12 CFR • Temporary difference DTAs of 25 324.1(d) (FDIC). In addition, for purposes of the Supplementary Information an percent or less of CBLR tangible capital rule and section 201 of the Act, the agencies illustrative CBLR reporting schedule. equity.14 would reserve the authority to take action under The illustrative schedule reflects other provisions of law, including action to address unsafe or unsound practices or conditions, deficient potential reduced reporting 13 83 FR 22312 (May 14, 2018). capital levels, or violations of law or regulation. See requirements and is intended to aid 14 In addition, the agencies would reserve the 12 CFR 3.1(b) (OCC); 12 CFR 217.1(b) (Board); 12 commenters in understanding the authority to disallow the use of the CBLR CFR 324.1(b) (FDIC).
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instructions to Schedule RC of the Call the sum of off-balance sheet securities items reported on Schedules RC–L of the Report or Schedule HC of Form FR Y– lent and borrowed measured in Call Report or HC–L of Form FR Y–9C 9C, as applicable. accordance with the reporting in place of the off-balance sheet items instructions for these items in as currently reported on Schedules RC– 2. Total Off-Balance Sheet Exposures Schedules RC–L of the Call Report or R of the Call Report or HC–R of Form Under the proposal, a qualifying HC–L of Form FR Y–9C, as applicable. FR Y–9C? What impact would the community banking organization would The proposed calculation of total off- proposed qualifying criterion have on a be required to have total off-balance balance sheet exposures is significantly banking organization’s business sheet exposures of 25 percent or less of simpler than under the generally strategies and lending decisions? its total consolidated assets, as of the applicable capital requirements, which end of the most recent calendar quarter. require that off-balance sheet exposures 3. Total Trading Assets and Trading The agencies are including this be converted to on-balance sheet Liabilities qualifying criterion in the CBLR equivalents and assigned the Under the proposal, a qualifying framework because the CBLR includes appropriate risk weight. banking organization would be required only on-balance sheet assets in its As mentioned previously, the to have total trading assets and denominator and thus would not agencies also intend to ensure that the liabilities of 5 percent or less of its total require a qualifying banking regulatory relief included in the CBLR consolidated assets, each measured as of organization to hold capital against its framework is available to a meaningful the end of the most recent calendar off-balance sheet exposures. This number of community banking quarter. Total trading assets and qualifying criterion is intended to organizations. As a result, the agencies liabilities would be calculated as the reduce the likelihood that a qualifying do not believe that traditional banking sum of those exposures, in accordance community banking organization with activities, such as extending loan with the reporting instructions for these significant off-balance sheet exposures commitments to customers, should items on Schedules RC of the Call would hold less capital under the CBLR necessarily preclude a banking Report or HC of Form FR Y–9C, as framework than under the generally organization from qualifying to use the applicable. A banking organization applicable capital requirements. CBLR framework. The agencies would divide the sum of its total trading Under the proposal, total off-balance analyzed average off-balance sheet assets and trading liabilities by its total sheet exposures would be calculated as exposures, relative to total consolidated consolidated assets to determine its the sum of the notional amounts of assets, for banking organizations with percentage of total trading assets and certain off-balance sheet items as of the less than $10 billion in total liabilities. end of the most recent calendar quarter. consolidated assets and observed that The agencies recognize the potential Total off-balance sheet exposures would the vast majority of such banking elevated levels of risk and complexity include the unused portions of organizations report off-balance sheet that can be associated with certain commitments (except for exposures totaling less than 25 percent trading activities. For this reason, unconditionally cancellable of total consolidated assets. banking organizations with significant commitments); self-liquidating, trade- Accordingly, the agencies have trading assets and liabilities are subject related contingent items that arise from determined that the proposed 25 to a market risk capital requirement the movement of goods; transaction- percent qualifying criterion of total off- under the generally applicable risk- related contingent items (i.e., balance sheet exposures to total based capital requirements.15 In performance bonds, bid bonds and consolidated assets would allow a contrast, CBLR banking organizations warranties); sold credit protection in the meaningful number of banking would not be required to calculate form of guarantees and credit organizations to use the CBLR additional market risk capital derivatives; credit-enhancing framework without unduly restricting requirements and, as a result, the CBLR representations and warranties; off- lending practices. The proposed framework may not appropriately balance sheet securitization exposures; criterion would help to prevent banking capitalize for material amounts of letters of credit; forward agreements that organizations from engaging in trading assets and trading liabilities. In are not derivative contracts; and excessive off-balance sheet exposures addition, elevated levels of trading securities lending and borrowing without a commensurate capital activity can produce a heightened level transactions (total off-balance sheet requirement under the CBLR of earnings volatility, which has exposures). Total off-balance sheet framework. implications for capital adequacy. exposures would exclude derivatives Question 3: The agencies invite Therefore, the agencies have concerns that are not credit derivatives, such as comment on the proposed off-balance about making the CBLR framework foreign exchange swaps and interest rate sheet qualifying criterion. What aspects available to banking organizations with swaps. The agencies believe the of the off-balance sheet qualifying material market risk exposure. At the notional amount for such derivatives is criterion, including definitions, require same time, the agencies do not believe not an appropriate indicator of credit further clarity? For example, what that low levels of trading activity should risk and could inadvertently disqualify aspects, if any, of the generally preclude a banking organization from a banking organization from using the applicable capital requirement’s using the CBLR framework. CBLR framework if the banking definition of credit enhancing Based on the agencies’ analysis, the organization is appropriately hedging its representations and warranties or the vast majority of banking organizations credit risks. reporting instructions to Schedules RC– with less than $10 billion in total The proposed components of total off- L of the Call Report or HC–L of Form FR consolidated assets have total trading balance sheet exposures would be Y–9C for securities lent and borrowed assets and liabilities well below 5 generally consistent with off-balance require further clarity? What other percent of their total consolidated sheet items in the generally applicable alternatives should the agencies assets. The agencies believe that the capital requirements, except for consider for purposes of defining the securities lending and borrowing proposed qualifying criterion? For 15 12 CFR part 3, subpart F (OCC); 12 CFR part transactions. Securities lending and example, what are the advantages and 217, subpart F (Board); 12 CFR part 324, subpart F borrowing transactions would include disadvantages of using off-balance sheet (FDIC).
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proposed 5 percent threshold would the reporting instructions to Schedules as of the end of the most recent calendar help to ensure that banking RC–M of the Call Report or HC–M of quarter. Temporary difference DTAs, net organizations under the CBLR Form FR Y–9C, as applicable, divided of any related valuation allowances, are framework would not engage in by CBLR tangible equity, each measured assets that banking organizations may significant trading activity. Further, this as of the end of the most recent calendar not be able to fully realize, especially criterion is generally consistent with quarter. under adverse financial conditions, section 203 of the Act, which excludes High concentrations in MSAs are because a banking organization’s ability a community banking organization from subject to stringent capital requirements to realize its temporary difference DTAs proprietary trading restrictions if its through a deduction approach under the is dependent on future taxable trading assets and liabilities are 5 generally applicable capital income.19 This concern is particularly percent or less of its total consolidated requirements.16 The stringent capital acute when banking organizations are assets. requirements are designed to protect experiencing financial difficulty. The agencies considered adopting an banking organizations from sudden Question 7: The agencies invite additional qualifying criterion in the fluctuations in the value of MSAs and comment on the treatment of temporary CBLR framework based on a banking from the potential inability of banking difference DTAs for purposes of the organization’s total notional derivatives organizations to divest themselves of definition of a qualifying community exposures. However, as described MSAs quickly at their full estimated banking organization. What are the above, the agencies are concerned that value during periods of financial stress. advantages and disadvantages of the such additional criterion may The 25 percent threshold for holdings of proposed qualifying criterion for inadvertently disqualify a banking MSAs in the CBLR framework would temporary difference DTAs? What organization from using the CBLR help to ensure that banking alternatives should the agencies framework if the banking organization organizations with high concentrations consider in limiting exposures to DTAs engages in prudent risk management by of MSAs would remain subject to the and how would such alternatives affect appropriately hedging its risks generally applicable capital the proposed calibration of the CBLR associated with traditional banking requirements. The proposed MSA framework? activities. The agencies reviewed the qualifying criterion is aligned with the 6. Advanced Approaches Banking notional derivative exposures reported proposed threshold for MSAs in the Organizations by banking organizations with less than simplifications proposal discussed Under the proposal, only non– $10 billion in total consolidated assets above.17 and determined that a significant As an alternative to the proposed advanced approaches banking majority of such banking organizations qualifying criterion for MSAs, the organizations would be eligible to use currently either do not report any agencies considered an approach that the CBLR framework. Advanced derivative exposure or report notional would instead require a qualifying approaches banking organizations are derivative amounts of less than $500 community banking organization to generally banking organizations with million, which would require relatively deduct from its CBLR tangible equity $250 billion or more in total consolidated assets or $10 billion or low amounts of regulatory capital under MSAs in excess of 25 percent of CBLR more in on-balance sheet foreign the generally applicable capital tangible equity. However, the agencies exposure, or subsidiaries of such requirements. Therefore, except for the are concerned that such an approach banking organizations.20 As such, a notional amount of sold credit would unduly complicate the CBLR depository institution with less than $10 protection in the form of a credit framework. derivative, the agencies have not Question 6: The agencies invite billion in total consolidated assets may be an advanced approaches banking incorporated total notional derivatives comment on the proposed qualifying organization. exposure as a qualifying criterion under criterion for MSAs. What are The agencies believe that, in general, the proposed CBLR framework. commenters’ views on the inclusion of Question 4: The agencies invite the Act is designed to provide such a qualifying criterion as opposed regulatory relief for banking comment on the proposed trading to an alternative deduction approach activity criterion. What other organizations with less than $10 billion from CBLR tangible equity for purposes in total consolidated assets and that alternatives to limiting trading activity of the CBLR? should the agencies consider for have a limited risk profile. While an purposes of defining a qualifying 5. Temporary Difference Deferred Tax advanced approaches banking community banking organization and Assets organization with less than $10 billion in total consolidated assets is a why? Under the proposal, a qualifying relatively small banking organization, it Question 5: What are the advantages community banking organization would is nonetheless part of a more complex and disadvantages of using total have temporary difference DTAs, net of banking organization. Consequently, notional derivatives exposures or any related valuation allowances, of 25 such a banking organization would not another measure as the basis for the percent or less of CBLR tangible equity. be eligible to use the CBLR framework qualifying criterion? If such a criterion This criterion would be calculated as were included in the CBLR framework, under this proposal. temporary difference DTAs, as Question 8: The agencies invite how should it be measured and why? At 18 described in the capital rule, divided comment on the exclusion of advanced what level should any such qualifying by CBLR tangible equity, each measured criterion be set? approaches banking organizations from the CBLR framework. What other 4. Mortgage Servicing Assets 16 12 CFR 3.22(d) (OCC); 12 CFR 217.22(d) (Board); 12 CFR 324.22(d) (FDIC). alternatives should the agencies Under the proposal, a qualifying 17 82 FR 49984 (October 27, 2017). consider with respect to a banking community banking organization would 18 12 CFR 3.22(d)(1)(i) (OCC); 12 CFR be required to have MSAs of 25 percent 217.22(d)(1)(i) (Board); 12 CFR 324.22(d)(1)(i) 19 Temporary differences arise when financial (FDIC). As described further below, this proposal events or transactions are recognized in one period or less of its CBLR tangible equity. This would not include the option for netting deferred for financial reporting purposes and in another qualifying criterion would be calculated tax liabilities to maintain a simple calculation of period, or periods, for tax purposes. as MSAs, calculated in accordance with CBLR tangible equity. 20 See footnote 4.
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organization’s affiliation with larger, 1 capital. However, consistent with the regulatory capital through a relatively more complex banking organizations? intention to maintain a simple complex calculation. definition of CBLR tangible equity, the To balance the agencies’ concern C. CBLR Tangible Equity proposal does not include such regarding the capacity of minority Under the proposal, the numerator of restrictions and thus provides more interests to absorb losses at the the CBLR would be CBLR tangible flexibility with respect to the types of consolidated banking organization and equity. CBLR tangible equity would be capital instruments that could qualify to preserve the simplicity of the CBLR calculated as a banking organization’s for CBLR tangible equity. The agencies framework, the proposed definition of total bank equity capital or total holding believe providing such flexibility is CBLR tangible equity would not include company equity capital, as applicable, consistent with safety and soundness minority interests in consolidated determined in accordance with the when considering the overall proposed subsidiaries. The agencies reviewed reporting instructions to Schedule RC of calibration of the CBLR framework for data regarding minority interests that the Call Report or Schedule HC of Form qualifying community banking banking organizations with less than FR Y–9C, prior to including minority organizations. $10 billion in total consolidated assets interests, less: (i) Accumulated other Question 9: The agencies invite report in regulatory capital and found comprehensive income (AOCI), (ii) all comment on the proposed definition of that only a small number of such intangible assets (other than MSAs), and CBLR tangible equity. What changes, if banking organizations currently report (iii) DTAs, net of any related valuation any, would commenters suggest to the any minority interests. Therefore, the allowances, that arise from net operating proposed definition of CBLR tangible exclusion of minority interests is not loss and tax credit carryforwards, each equity? What are the advantages and expected to have a material impact on as of the end of the most recent calendar disadvantages of a CBLR that closely the amount of CBLR tangible equity for 21 quarter. CBLR tangible equity would aligns with the applicable reporting the vast majority of banking not include minority interests (equity of instructions to Schedules RC of the Call organizations. Question 12: The agencies invite a consolidated subsidiary that is not Report and HC of Form FR Y–9C comment on the proposed exclusion of owned by the qualifying community measure of equity? What are the minority interests from the definition of banking organization) because minority advantages and disadvantages of CBLR tangible equity. What are the interests do not have the same loss introducing additional adjustments and advantages and disadvantages of this absorption capacity as other deductions from equity capital when approach? If minority interests were to components of CBLR tangible equity at defining CBLR tangible equity? be included, how should the agencies the consolidated banking organization Question 10: What are the advantages level. The proposed definition is limit the amount of minority interests and disadvantages of not imposing that could count toward a banking intended as a prudent, simple measure specific eligibility criteria for capital of CBLR tangible equity, which CBLR organization’s CBLR tangible equity instruments under the CBLR framework? without creating undue complexity? banking organizations can calculate If the agencies exclude certain types of using amounts reported on regulatory capital instruments from CBLR tangible 2. Accumulated Other Comprehensive reports. The agencies believe that this equity, how should the agencies Income simpler measure of capital is consistent incorporate such criteria in a simple Under the proposal, the definition of with the goal of providing meaningful manner? For example, what are the burden relief for qualifying community CBLR tangible equity would exclude all advantages and disadvantages of the components of AOCI, measured in banking organizations. agencies requiring that voting common The agencies’ generally applicable accordance with the reporting equity be the dominant form of CBLR capital requirements have long included instructions to Schedule RC of the Call tangible equity? restrictions on the types of capital Report or Schedule HC of Form FR Y– instruments that can be included in tier Question 11: What other alternative 9C, as applicable. Under the generally 1 capital. Prior to 2013, the agencies’ definitions of CBLR tangible equity applicable capital requirements, capital rule required that voting should the agencies consider with banking organizations, other than common stock holders’ equity be the respect to the CBLR, and how should advanced approaches banking dominant form of tier 1 capital and that such alternatives be considered in organizations, may exclude most banking organizations should avoid conjunction with the proposed 9 percent components of AOCI from common equity tier 1 capital. AOCI generally undue reliance on nonvoting equity and CBLR calibration? Would defining CBLR includes accumulated unrealized gains preferred stock. Furthermore, tangible equity to equal a measure of and losses on certain assets and cumulative perpetual preferred capital under the generally applicable liabilities that are not included in net securities are generally not included in capital requirements (e.g., tier 1 capital) income, yet are included in equity tier 1 capital. The definition of tier 1 be more appropriate, and if so, why? under U.S. GAAP (for example, capital under the generally applicable 1. Minority Interests unrealized gains and losses on securities capital requirements excludes Under the proposal, the definition of designated as available-for-sale). When cumulative perpetual preferred CBLR tangible equity would not include the agencies revised the capital rule in securities as such instruments allow for minority interests in consolidated 2013, they noted that smaller or the accumulation of interest payable subsidiaries because, while such relatively less complex banking and are not likely to absorb losses to the minority interests are available to absorb organizations may not have degree appropriate for inclusion in tier losses at the subsidiary, they are not sophisticated risk management always available to absorb losses at the techniques to hedge interest rate risk 21 Solely for purposes of the FDIC’s proposed definition of CBLR tangible equity, FDIC-supervised banking organization’s consolidated and that including AOCI in regulatory institutions that are CBLR banking organizations level. To address this concern, the capital could introduce significant must deduct identified losses (to the extent that generally applicable capital volatility in the capital ratios due to CBLR tangible equity would have been reduced if requirements limit the amount of fluctuations in benchmark interest rates. the appropriate accounting entries to reflect the identified losses had been recorded on the banking minority interests that a banking The agencies therefore included an organization’s books). organization may include in its option for non-advanced approaches
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banking organizations to neutralize the an option for netting of deferred tax realizable. This concern is particularly impact of AOCI on their regulatory liabilities from the items subject to acute when banking organizations are capital calculations and the vast deduction, which may result in a experiencing financial difficulty or majority of banking organizations have complex calculation for banking when broad economic conditions made that election. organizations with limited deferred tax change. Consistent with the generally liabilities. The agencies propose to not In developing the proposal, the applicable capital requirements’ include the same option for netting agencies considered alternative treatment of AOCI for banking deferred tax liabilities to maintain a treatments of DTAs that arise from net organizations other than advanced simple calculation of CBLR tangible operating loss and tax credit approaches banking organizations, the equity. The agencies also analyzed the carryforwards and temporary difference proposal would exclude all components effect of netting deferred tax liabilities DTAs that would have varying degrees of AOCI from CBLR tangible equity. The from intangible assets subject to of conservatism and complexity. One proposed adjustment for AOCI would be deduction and observed that permitting alternative for calculating CBLR tangible simpler than under the generally netting of deferred tax liabilities would equity would be to deduct DTAs that applicable capital requirements which not meaningfully change the CBLR for arise from net operating loss and tax allow certain banking organizations to qualifying banking organizations. credit carryforwards from a banking neutralize some but not all AOCI, and Question 14: The agencies invite organization’s total equity capital, and thus should alleviate regulatory burden comment on the treatment of intangible then to deduct temporary difference for banking organizations that qualify assets in the proposed definition of DTAs that exceed 25 percent of a for and elect to use the CBLR, without CBLR tangible equity for purposes of the threshold amount equal to a banking meaningfully affecting the amount of CBLR. What are the advantages and organization’s total equity capital less the AOCI adjustment. disadvantages of the proposed all other adjustments and deductions for Question 13: The agencies invite approach? What are commenters’ views CBLR tangible equity. The agencies comment on the proposed treatment of on retaining the option to net deferred decided against this alternative because AOCI for purposes of the CBLR. What tax liabilities from items subject to such a threshold deduction would result are the advantages and disadvantages of deduction, as permitted under the in an unduly complex CBLR tangible making adjustments to CBLR tangible generally applicable capital equity calculation. Another alternative equity for all components of AOCI? requirements? What alternatives, if any, would be to deduct all net DTAs (i.e., What alternatives, if any, to the to the proposed treatment of intangible DTAs that arise from net operating loss proposed treatment of AOCI should the assets should the agencies consider and and tax credit carryforwards and agencies consider for purposes of the why? temporary difference DTAs), net of any CBLR and why? valuation allowances, measured in 4. Deferred Tax Assets 3. Intangible Assets accordance with the reporting Under the proposal, DTAs that arise instructions to Schedule RC–F of the Under the proposal, the definition of from net operating loss and tax credit Call Report or Schedule HC–F of Form CBLR tangible equity would require carryforwards, net of any related FR Y–9C, as applicable, from a banking deduction of goodwill and all other valuation allowances, would be organization’s total equity capital, intangible assets (other than MSAs), deducted from CBLR tangible equity. which would be a more conservative which is consistent with long-standing This deduction would supplement the treatment than under the generally requirements in the generally applicable qualifying criterion that requires a applicable capital requirements. The capital requirements. This deduction qualifying community banking agencies have not proposed this would be calculated as goodwill and all organization to have temporary approach based on a concern that a other intangible assets (other than difference DTAs of 25 percent or less of deduction for all temporary difference MSAs), measured in accordance with its CBLR tangible equity. DTAs could be unduly punitive. the reporting instructions to Schedules Under the proposal, DTAs that arise Question 15: The agencies invite RC–M of the Call Report or HC–M of from net operating loss and tax credit comment on the treatment of DTAs that Form FR Y–9C, as applicable. All other carryforwards would be measured arise from net operating loss and tax intangible assets generally include, for consistently with the generally credit carryforwards in the proposed example, core deposit intangibles, applicable capital requirements,22 definition of CBLR tangible equity. What favorable leasehold rights, purchased except that a banking organization are the advantages and disadvantages of credit card relationships, and non- would not have the option to reduce the not permitting the netting of deferred mortgage servicing assets. During times amount of the deduction by deferred tax tax liabilities? What are commenters’ of stress, it may be difficult to sell, or liabilities. The proposed approach for views on the complexity of netting to calculate reliable values for, DTAs is similar to, but simpler than, the deferred tax liabilities as compared to intangible assets. Fully deducting treatment of DTAs in the generally the simplicity of a gross deduction? goodwill and all other intangible assets applicable capital requirements, which What alternatives, if any, should the would help to retain the quality of CBLR requires deduction from common equity agencies consider and why? tangible equity and would be consistent tier 1 capital of the entire amount of Question 16: The agencies invite with safety and soundness and with the DTAs that arise from net operating loss comment on whether it would be more generally applicable capital and tax credit carryforwards and appropriate to deduct all net DTAs from requirements. Deducting these items is requires the deduction of temporary CBLR tangible equity. What are the also consistent with section 201 of the difference DTAs above certain advantages and disadvantages of Act, which requires the agencies to thresholds. The proposed approach for deducting all net DTAs from CBLR develop a CBLR using tangible equity DTAs is intended to address the concern tangible equity? What are commenters’ capital. that DTAs that are generally dependent views on the tradeoffs of simply The proposed deduction for upon future taxable income may not be deducting all net DTAs as compared to intangible assets is gross of associated separate treatments for DTAs that arise deferred tax liabilities. The generally 22 12 CFR 3.22(a)(3) (OCC); 12 CFR 217.22(a)(3) from net operating loss and tax credit applicable capital requirements contain (Board); 12 CFR 324.22(a)(3) (FDIC). carryforwards and temporary difference
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DTAs? What alternatives, if any, should safety and soundness, and providing to use the CBLR framework at any time. the agencies consider and why? appropriate regulatory burden relief to Such a banking organization would as many banking organizations as indicate its election by completing a D. Average Total Consolidated Assets possible. For example, an 8 percent CBLR reporting schedule in its Call (CBLR Denominator) CBLR would allow more banking Report or Form FR Y–9C, as applicable, Consistent with the Act, the proposed organizations to opt into the CBLR which will be proposed at a later date, CBLR denominator would be based on framework but could incentivize a large as discussed below in this a banking organization’s average total number of CBLR banking organizations Supplementary Information. consolidated assets. Specifically, to hold less regulatory capital than they Under the proposal, a CBLR banking average total consolidated assets for do today. Conversely, a significant organization may opt out of the CBLR purposes of the CBLR denominator number of banking organizations would framework and use the generally would be calculated in accordance with not meet a 10 percent CBLR, which applicable capital requirements by the reporting instructions to Schedules could preclude the use of the CBLR completing the associated reporting RC–K on the Call Report or HC–K on framework by banking organizations requirements on Schedules RC–R of the Form FR Y–9C, as applicable, less the that are operating in a safe and sound Call Report or HC–R of Form FR Y–9C, items deducted from the CBLR manner with prudent levels of capital. as applicable. While the agencies would numerator, except AOCI. The proposed The agencies estimate that as of the not place restrictions on the ability of calculation is similar to that used in second quarter of 2018, the vast majority qualifying community banking determining the denominator of the tier of banking organizations under $10 organizations to switch in and out of the 1 leverage ratio. billion in total consolidated assets CBLR framework, the agencies Question 17: The agencies invite would meet the definition of a anticipate such changes to be rare and comment on the proposed definition of qualifying community banking typically driven by significant changes average total consolidated assets. What, organization and have a CBLR above 9 in the banking organization’s business if any, alternative definitions of average percent. Based on reported data as of activities. The agencies believe that total consolidated assets should the June 30, 2018, there are 5,408 insured some flexibility to reverse the election agencies consider for purposes of the depository institutions with less than to use the CBLR framework is warranted CBLR and why? $10 billion in total consolidated assets to ensure that banking organizations can E. Calibration of the Community Bank and 151 depository institution holding adjust their business strategies and Leverage Ratio companies with more than $3 billion activities over time. The agencies would and less than $10 billion in total expect a CBLR banking organization to The agencies propose that a qualifying consolidated assets.23 Approximately 83 be able to provide a rationale for opting community banking organization may percent of such insured depository out of the CBLR framework to its elect to use the CBLR framework if the institutions and 56 percent of such appropriate regulators, if requested. CBLR of the banking organization is depository institution holding Additionally, the agencies note that a greater than 9 percent at the time of companies would qualify to use the CBLR banking organization may opt out election. A qualifying community CBLR framework under the proposed 9 of the CBLR framework between banking organization with a CBLR percent calibration and qualifying reporting periods by producing the greater than 9 percent would be criteria. The agencies believe the CBLR capital ratios under the generally considered to have met: (i) The framework, including its proposed applicable capital requirements to its generally applicable capital calibration, meets the objectives appropriate regulators at the time of requirements; (ii) the well capitalized described above. opting out. This requirement is intended capital ratio requirements under the Question 18: The agencies invite to remove any ambiguity relating to agencies’ PCA framework for insured comment on the proposed CBLR capital adequacy for either the banking depository institutions or the well calibration. What other factors should organization or the appropriate capitalized standards under the Board’s the agencies consider in calibrating the regulators. regulations for holding companies, as CBLR and why? The agencies request A banking organization that has opted applicable; and (iii) any other capital or that commenters include discussion of out of the CBLR framework would need leverage requirements to which the how the proposed CBLR level should be to meet the qualifying criteria included banking organization is subject. Such affected by potential changes to other in the definition of a qualifying banking organizations would not be aspects of the proposed CBLR community banking organization and required to calculate capital ratios under framework, such as the definition of have a CBLR of greater than 9 percent the generally applicable capital CBLR tangible equity and the definition to be able to opt back into the CBLR requirements. Additionally, to be of a qualifying community banking framework. This proposed approach is considered well capitalized under the organization. intended to balance the need for CBLR framework, and consistent with flexibility in applying capital F. Election To Use the Community Bank the agencies’ PCA framework, a requirements tailored to banking Leverage Ratio Framework qualifying community banking organizations’ different and potentially organization must not be subject to any Under the proposal, a qualifying shifting business models with the goal written agreement, order, capital community banking organization with a of discouraging arbitrage between directive, or PCA directive to meet and CBLR greater than 9 percent may elect capital frameworks. maintain a specific capital level for any Question 19: The agencies invite capital measure. 23 As of June 30, 2018, there are 4,261 depository comment on the proposed procedure a The proposed calibration of the CBLR, institution holding companies with less than $10 banking organization would use to opt billion in total consolidated assets. More than 95 in conjunction with the qualifying percent of such holding companies are not subject into and out of the CBLR framework. community banking organization and to the capital rule because they have less than $3 What are commenters’ views on the CBLR tangible equity definitions, seek billion in total consolidated assets and meet certain frequency with which a qualifying additional criteria to qualify for the Board’s small to strike a balance among the following bank holding company policy statement. See 12 community banking organizations may objectives: Maintaining strong capital CFR 217.1(c)(1)(ii) and (iii); 12 CFR part 225, opt in and out of the CBLR framework? levels in the banking system, ensuring appendix C; 12 CFR 238.9. What other alternatives should the
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agencies consider for purposes of 30, unless at that time the banking capital rule if its CBLR is 7.5 percent or qualifying community banking organization once again met the greater.24 organizations’ election to use and report qualifying criteria of the CBLR The Act requires that the agencies the CBLR and why? Do qualifying framework. The agencies believe that establish procedures for the treatment of community banking organizations this limited grace period is appropriate a CBLR banking organization that anticipate frequent switching between to mitigate potential volatility in capital experiences a decline in its CBLR below the CBLR framework and the generally and associated regulatory reporting the percentage set by the agencies after applicable capital requirements, and if requirements based on temporary exceeding such percentage. A CBLR so, why? What are the operational or changes in a banking organization’s risk banking organization’s CBLR may other challenges associated with profile from quarter to quarter, while deteriorate due to a decline in its level frequent switching between frameworks? capturing more permanent changes in of CBLR tangible equity, growth in its What are commenters’ views on the loss risk profile. average total consolidated assets, or a of comparability in capital ratios over A CBLR banking organization that combination of both. As described time that may result from frequent ceases to meet the criteria to be a above, a CBLR banking organization switching between frameworks? How qualifying community banking may choose to stop using the CBLR would the changes proposed in the organization as a result of a business framework and instead become subject simplifications proposal influence combination would receive no grace to the generally applicable capital whether a banking organization elects to period, however, and immediately requirements. However, the agencies use the CBLR framework? would no longer be a qualifying recognize that some banking organizations may find it unduly G. Compliance With the Proposed CBLR community banking organization. The burdensome to begin complying with Framework agencies believe this approach is appropriate as banking organizations the more complex risk-based capital 1. Definition of a Qualifying Community would need to consider the regulatory reporting requirements at the same time Banking Organization capital implications of a planned that the organization is experiencing a Under the proposal, a CBLR banking business combination and be prepared decline in its CBLR. Accordingly, in the organization that no longer meets the to comply with the applicable case of CBLR banking organizations that proposed qualifying criteria would be requirements. A CBLR banking are insured depository institutions and required, within a limited grace period organization that expects that it would that no longer exceed the 9 percent of two consecutive calendar quarters, not meet the qualifying criteria as a CBLR, the agencies are proposing to either to once again meet the qualifying result of a planned business establish the following CBLR levels to criteria or demonstrate compliance with combination would need to provide its serve as proxies for the adequately the generally applicable capital pro-forma capital ratios under the capitalized, undercapitalized, and requirements. The grace period would generally applicable capital significantly undercapitalized PCA begin as of the end of the calendar requirements to its appropriate regulator capital categories and be deemed to as part of its merger application, if satisfy statutory capital requirements: 25 quarter in which the CBLR banking • organization ceases to satisfy the criteria applicable, and fully comply with the Adequately capitalized—CBLR of 7.5 generally applicable capital percent or greater; to be a qualifying community banking • Undercapitalized—CBLR of less than 7.5 organization and end after two requirements as of the completion of the transaction. percent; and consecutive calendar quarters. During • Significantly undercapitalized—CBLR of the grace period, the banking Question 20: The agencies invite less than 6 percent. organization could continue to be comment on the proposed treatment for The definition of critically treated as a qualifying community a banking organization that no longer undercapitalized would remain the banking organization and could, meets the definition of a qualifying same as under the PCA framework and therefore, continue calculating and community banking organization after the generally applicable capital reporting a CBLR to determine its PCA making an election to use the CBLR requirements. The agencies are not category, in the case of an insured framework. Specifically, what are the proposing a proxy CBLR level for the depository institution, and compliance advantages and disadvantages of the critically undercapitalized category, with other statutes and regulations. proposed period of time a banking which would continue to be calculated A banking organization that grows to organization that no longer meets the as the ratio of tangible equity to total $10 billion or larger in total qualifying criteria would be provided to assets (as defined under the PCA consolidated assets or no longer meets transition to the generally applicable framework) of 2 percent or below. As one or more of the other qualifying capital requirements? What other discussed above, the agencies are criteria (e.g., increased concentrations in alternatives should the agencies proposing a CBLR level of greater than MSAs) could use the grace period to consider with respect to a banking 9 percent for the well capitalized capital again meet the qualifying criteria or organization that no longer meets the category pursuant to section 201 of the revert to the generally applicable capital definition of a qualifying community Act. requirements. For example, if the CBLR banking organization and why? banking organization exceeded one of 2. Treatment of a Community Banking 24 A CBLR banking organization that is a the qualifying criteria as of February 15, Organization That Falls Below the CBLR depository institution holding company would no the grace period for such a banking Requirement longer be considered well capitalized if the holding organization would begin as of the end company had a CBLR of 9 percent or less. 25 of the quarter ending March 31. The Under the proposal, a CBLR banking See, for example, 12 U.S.C. 5371 (establishing organization that has a CBLR greater a capital floor for insured depository institutions banking organization could continue to and depository institution holding companies); use the CBLR framework as of June 30, than 9 percent would be considered section 201 of the Act (requiring development of a but would need to fully comply with the well capitalized. In addition, a CBLR community bank leverage ratio for which a generally applicable capital banking organization would be depository institution exceeding that ratio would be considered to have met the minimum considered to meet the requirements to be treated requirements (including the associated as well capitalized under PCA); and 12 U.S.C. reporting requirements) as of September capital requirements under the agencies’ 1831o (PCA).
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a. CBLR Levels for Certain PCA undercapitalized PCA ratio in the risk- monitor the banking organization’s Categories based and leverage capital rules, and (2) tangible equity ratio in the event that its Under the proposal, the CBLR levels providing sufficient separation between condition deteriorates. Such for the adequately capitalized, the significantly undercapitalized and deterioration can occur quickly undercapitalized, and significantly the undercapitalized and critically depending on the particular undercapitalized PCA capital categories undercapitalized PCA ratios. circumstances and economic Under the proposal, a CBLR banking would serve as proxies for the existing environment. Under the proposal and organization that maintains a CBLR of risk-based and leverage capital ratios consistent with the current authorities, 7.5 percent or greater but less than or that currently define these PCA capital the appropriate regulators also may equal to 9 percent would be deemed to categories. In setting the proposed proxy request the information necessary to have met the minimum capital determine the tangible equity ratio at levels, the agencies sought to provide requirements and all of the capital ratio any time, and the CBLR banking sufficient separation across categories requirements for the adequately organization must provide it. such that a banking organization would capitalized capital category under the The agencies considered proposing a not face frequent changes to its PCA PCA framework and therefore, treated as CBLR level for the critically category without a corresponding adequately capitalized. A CBLR banking undercapitalized capital category. significant change in its CBLR. For organization whose CBLR falls below However, allowing two definitions for reference, the agencies note that under 7.5 percent but is greater than or equal the critically undercapitalized capital the current PCA rules, there is a 2 to 6 percent would be deemed to have category would create potential percentage point difference between the met all of the capital ratio requirements arbitrage between the generally risk-based capital ratios for the for the undercapitalized capital category applicable capital requirements and corresponding PCA capital categories under the PCA framework and therefore, CBLR framework and legal uncertainty and a 1 percentage point difference treated as undercapitalized. A CBLR as to when a bank is critically between the tier 1 leverage ratios for the banking organization whose CBLR falls undercapitalized for purposes of the corresponding PCA capital categories. below 6 percent and tangible equity FDIC being appointed as a conservator The agencies performed data analysis ratio is above 2 percent would be or receiver for a failing banking on 5,408 insured depository institutions deemed to have met all of the capital organization. under $10 billion in total consolidated ratio requirements for the significantly c. Effect of CBLR Levels on Other assets as of June 30, 2018, to calibrate undercapitalized capital category under Regulations the CBLR levels for the adequately the PCA framework and therefore, capitalized, undercapitalized, and considered and treated as significantly The agencies would use the proxies significantly undercapitalized PCA undercapitalized. The definition of described in the previous section to capital categories, of which 4,469 critically undercapitalized would apply the regulatory, supervisory, and insured depository institutions meet all remain the same as under the PCA enforcement authorities under PCA and the proposed qualifying criteria (eligible framework and the generally applicable other statutes to CBLR banking IDIs). capital requirements. Specifically, the organizations.27 A CBLR banking The agencies’ data analysis has critically undercapitalized category organization would be subject to all of demonstrated that at the proposed PCA would continue to include banking the requirements and restrictions, adequately capitalized requirement of organizations with a ratio of tangible including any capital restoration plan 7.5 percent, about 0.5 percent of eligible equity to total assets (as defined under requirement and mandatory and IDIs would require less capital—in order the PCA framework) of 2 percent or discretionary supervisory actions, to be deemed adequately capitalized— below. applicable to a banking organization in under the CBLR framework than under its PCA category. Similarly, agencies the generally applicable capital b. Critically Undercapitalized Capital expect to continue applying the current requirements. Thus, the data analysis by Category supervisory standards for examining the agencies supports a conclusion that Section 38 of the Federal Deposit banking organizations for capital 7.5 percent results in an appropriate Insurance Act 26 specifies that the adequacy. balance between the two considerations critically undercapitalized capital For example, if a CBLR banking of (1) serving as an appropriate proxy category must be set at no less than 2 organization becomes less than well for the adequately capitalized PCA ratio percent of the tangible equity ratio. capitalized, it would become subject to in the risk-based and leverage capital Therefore, a CBLR depository institution applicable regulatory restrictions. For a rules, and (2) providing sufficient with a ratio of tangible equity to total CBLR banking organization that is a separation between the adequately assets (as provided for under the depository institution, these restrictions capitalized PCA ratio and the well agencies PCA framework) of 2 percent would include the brokered deposit and capitalized and the undercapitalized or below would be classified as interest rate restrictions.28 For a CBLR PCA ratios. critically undercapitalized. Because the banking organization that is a Similarly, at the proposed PCA information necessary to calculate the depository institution holding company, significantly undercapitalized PCA tangible equity ratio under the these restrictions would include requirement of 6 percent, about 0.4 current capital rule may not be readily limitations on financial activities under percent of eligible IDIs would require available to a CBLR banking the Bank Holding Company Act and less capital—in order to be considered organization, a CBLR banking Regulation Y. A CBLR banking undercapitalized—under the CBLR organization with a CBLR of less than 6 organization’s capital category can also framework than under the generally percent would be required to provide affect various applications’ standards, applicable capital requirements. promptly to its appropriate regulators procedures, and processing in the same Therefore, the agencies believe that the such information as is necessary to way as a banking organization’s current proposed 6 percent level would calculate the PCA tangible equity ratio PCA category based on the generally represent an appropriate balance so that the regulators may calculate and between (1) serving as an appropriate 27 See section 201(c)(2) of the Act. proxy for the significantly 26 12 U.S.C. 1831o. 28 12 U.S.C 1831f; 12 CFR 337.6.
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applicable capital requirements. These H. Other Affected Federal Regulations organizations under the CBLR include the ability to conduct interstate Under the proposal, a CBLR banking framework. What are commenters’ views mergers and to establish interstate organization would no longer be or concerns with the proposed branches, as well as eligibility for required to calculate or report the amendments, including with regard to expedited applications processing. components of capital used in the any unintended consequences? What are the advantages and disadvantages of d. Alternative Approach calculation of risk-based capital ratios or the tier 1 leverage ratio, such as tier 1 retaining the current tier 1 capital Consistent with the treatment of a capital, total capital, or risk-weighted measure for purposes of the other CBLR banking organization that no assets. Various Federal banking regulations that would be revised under longer meets the definition of a regulations outside of the regulatory this proposal or within the CBLR qualifying community banking capital rule (non-capital rules) contain framework itself? What other organization, the agencies considered references to these regulatory capital approaches should the agencies proposing to require CBLR banking terms and therefore would need to be consider in amending the affected organizations to report capital ratios updated to reflect the components of regulations? Which other additional under the generally applicable capital capital and related capital measures non-capital rules should the agencies requirements if their CBLR fell to 9 under the CBLR framework. To ensure consider and amend as a result of the percent or below, subject to a transition that these non-capital rules continue to CBLR framework and why? period. On the one hand, this approach operate as intended, the agencies I. Deposit Insurance Assessments is straightforward, avoids any potential propose that standards using tier 1 Regulations ambiguity with respect to a banking capital or total capital be amended so organization’s capital category when it that a CBLR banking organization would FDIC assessments regulations also is less than well capitalized, and is use CBLR tangible equity instead of tier would be affected by the proposed consistent with the CBLR framework 1 capital or total capital. The agencies CBLR framework. For example, CBLR being available for highly capitalized propose that where applicable, banking organizations would no longer community banking organizations. On standards referencing risk-weighted be required to report tier 1 capital or the the other hand, this approach is assets be amended so that a CBLR tier 1 leverage ratio. The FDIC, however, relatively inflexible compared to the banking organization would use average uses these measures as part of its proposal. The agencies believe that total consolidated assets (i.e., the CBLR deposit insurance assessment system. some additional flexibility in the denominator) instead of risk-weighted For established small institutions, the implementation of the CBLR framework assets. tier 1 leverage ratio is one of eight is not inconsistent with the Act’s In addition, certain of the agencies’ measures used to determine an purpose of relieving qualifying non-capital rules refer to ‘‘capital stock institution’s assessment rate.31 For all community banking organizations. and surplus’’ (or similar items), which institutions, tier 1 capital is used to Question 21: The agencies invite is generally defined as tier 1 and tier 2 determine an institution’s assessment comment on the proposed treatment for capital plus the amount of allowances base.32 a CBLR banking organization that no for loan and lease losses not included in The FDIC plans to publish a separate longer exceeds the 9 percent CBLR level. tier 2 capital.29 The agencies propose notice of proposed rulemaking to Specifically, what are commenters’ that a CBLR banking organization would address the application of the CBLR views on the proposed CBLR levels for calculate capital stock and surplus as framework as it relates to the deposit all other PCA capital categories except CBLR tangible equity plus allowances insurance assessment system. The for the critically undercapitalized for loan and lease losses. Thus, for rulemaking would address, among other capital category? What are the example, for purposes of compliance things, how the CBLR framework can be advantages and disadvantages of with section 23A of the Federal Reserve applied in lieu of the tier 1 leverage establishing proxies for the identified Act, the proposal would amend the ratio and in lieu of tier 1 capital when PCA capital categories? Board’s Regulation W to provide that, calculating a bank’s assessment. The Question 22: The agencies invite for a CBLR banking organization, FDIC plans to consider and discuss in comment on the proposal to require a ‘‘capital stock and surplus’’ would mean the rulemaking reasonable and possible CBLR banking organization to provide CBLR tangible equity plus allowances options that address the application of the information necessary for its for loan and lease losses.30 the CBLR framework in the assessment regulators to calculate the banking At this time, the agencies are not system. The FDIC does not expect that organization’s tangible equity once the proposing changes to their supervisory any changes to its deposit insurance banking organization’s CBLR falls below guidance which uses these capital assessment system would have a 6 percent. What, if any, would be the terms. The agencies will consider how material impact on aggregate assessment burden of gathering and providing such best to address affected supervisory guidance in conjunction with comments information and how long would it take 31 For assessments purposes, an established small to generate such information? received on this proposal. bank is generally defined as one that has been Question 23: What alternative Question 25: The agencies invite federally insured for at least five years and has less procedures should the agencies consider comment on the proposed amendments than $10 billion in assets. 12 CFR 327.8(v). A bank to their affected non-capital rules that no longer qualifies as a small bank once it reports with respect to the treatment of a CBLR assets of $10 billion of more in its quarterly reports banking organization whose CBLR has would apply to CBLR banking of condition for four consecutive quarters. fallen to 9 percent or less and why? 32 The Dodd-Frank Act required the FDIC to 29 See e.g., 12 CFR 223.3(d). amend its regulations to generally define an Question 24: The agencies invite 30 The agencies issued a proposal in May 2018 to institution’s assessment base as average comment on the proposed address pending changes to U.S. GAAP related to consolidated total assets of the institution minus implementation of section 201 of the accounting for allowances under the agencies’ rules. average tangible equity during the assessment Act. How does the proposed definition See 83 FR 22312 (May 14, 2018). For purposes of period. The FDIC chose to use tier 1 capital in lieu any final rule, the agencies expect to match the of tangible equity when implementing this of CBLR tangible equity interact with the treatment and terminology related to allowances requirement in part because it required no risk profile criteria and the proposed under the agencies’ rules under this proposal and additional reporting. See 12 CFR 327.5(a)(2); 76 FR CBLR ratio requirement? the May 2018 proposal. 10673, 10678 (Feb. 25, 2011).
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revenue or on rates paid by individual community banking organizations that requirements for those banking institutions. elect to use the CBLR framework. To organizations that elect to use the provide an indication of the potential proposed CBLR framework, the agencies J. Illustrative Reporting Form reporting format and potential reporting include an illustrative reporting form The agencies intend to separately seek burden relief relative to the regulatory below, using the Call Report as an comment on the proposed changes to reporting requirements under the example. regulatory reports for qualifying generally applicable capital BILLING CODE 4810–33–P, 6210–01–P, 6714–01–P
BILLING CODE 4810–33–C, 6210–01–C, 6714–01–C process, in accordance with section 201 organizations report their CBLR levels K. Consultation With State Bank of the Act. on a quarterly basis. These reports are, Supervisors Section 201 also requires that the and would continue to be, released to agencies notify the applicable state bank the public. The agencies believe that The agencies have had discussions supervisor if a qualifying community this public release of the CBLR would with state bank supervisors and staff of banking organization exceeds the CBLR provide an operable means of notifying the Conference of State Bank established by the agencies or ceases to the applicable state bank supervisor of Supervisors, during which the agencies exceed the CBLR after having previously the relevant information about a CBLR received helpful input in connection exceeded it. The agencies plan to banking organization’s CBLR. with this proposal. The agencies expect incorporate the CBLR into the Call Question 26: What other to continue engaging with the state bank Report and Form FR Y–9C so that considerations should the agencies supervisors during the rulemaking qualifying community banking contemplate to help ensure that the
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applicable state bank supervisor is A copy of the comments may also be Standardized Approach (1,365 notified when supervised qualifying submitted to the OMB desk officer by Institutions Affected) community banking organizations mail to U.S. Office of Management and Recordkeeping (Initial setup)—122. exceed or cease to exceed the CBLR and Budget, 725 17th Street NW, #10235, Recordkeeping (Ongoing)—20. why? Washington, DC 20503; facsimile to Disclosure (Initial setup)—226.25. (202) 395–6974; or email to oira_ III. Regulatory Analyses Disclosure (Ongoing quarterly)— [email protected], Attention, 131.25. A. Paperwork Reduction Act Federal Banking Agency Desk Officer. Advanced Approach (18 Institutions Certain provisions of the proposed Proposed Information Collection Affected) rule contain ‘‘collection of information’’ Title of Information Collection: requirements within the meaning of the Recordkeeping (Initial setup)—460. Recordkeeping and Disclosure Paperwork Reduction Act (PRA) of 1995 Recordkeeping (Ongoing)—540.77. Requirements Associated with Capital (44 U.S.C. 3501–3521). In accordance Recordkeeping (Ongoing quarterly)— Adequacy. with the requirements of the PRA, the 20. agencies may not conduct or sponsor, Frequency: Quarterly, annual. Disclosure (Initial setup)—280. and the respondent is not required to Affected Public: Businesses or other Disclosure (Ongoing)—5.78. respond to, an information collection for-profit. Disclosure (Ongoing quarterly)—35. unless it displays a currently-valid Respondents Estimated annual burden hours: 1,088 Office of Management and Budget hours initial setup, 64,929 hours for OCC: National banks, state member (OMB) control number. The OMB ongoing. banks, state nonmember banks, and control number for the OCC is 1557– state and federal savings associations. Board 0318, Board is 7100–0313, and FDIC is Board: State member banks (SMBs), 3064–0153. The OCC and the FDIC may Agency form number: FR Q. bank holding companies (BHCs), U.S. need to request new control numbers if OMB control number: 7100–0313. intermediate holding companies (IHCs), submissions are pending under their Estimated number of respondents: savings and loan holding companies current respective control numbers at 1,431 (of which 17 are advanced (SLHCs), and global systemically the time of this submission. These approaches institutions). important bank holding companies information collections will be extended Estimated average hours per response: (GSIBs). for three years, with revision. The FDIC: State nonmember banks, state Minimum Capital Ratios (1,431 information collection requirements savings associations, and certain Institutions Affected) contained in this proposed rulemaking subsidiaries of those entities. Recordkeeping (Ongoing)—16. have been submitted by the OCC and Current Actions: The proposal would FDIC to OMB for review and approval _ _ Standardized Approach (1,431 under section 3507(d) of the PRA (44 revise sections .2 and .10 of the Institutions Affected) capital rule, add a new section _.12 to U.S.C. 3507(d)) and section 1320.11 of Recordkeeping (Initial setup)—122. the OMB’s implementing regulations (5 the capital rule, and revise the agencies’ PCA rules, to implement the community Recordkeeping (Ongoing)—20. CFR 1320). The Board reviewed the Disclosure (Initial setup)—226.25. proposed rule under the authority bank leverage ratio in accordance with the Act. These changes will not, Disclosure (Ongoing quarterly)— delegated to the Board by OMB. 131.25. Comments are invited on: however, result in changes to the a. Whether the collections of burden. Nevertheless, in order to be Advanced Approach (17 Institutions information are necessary for the proper consistent across the agencies, the Affected) performance of the agencies’ functions, agencies are applying a conforming methodology for calculating the burden Recordkeeping (Initial setup)—460. including whether the information has Recordkeeping (Ongoing)—540.77. practical utility; estimates. The agencies are also updating the number of respondents Recordkeeping (Ongoing quarterly)— b. The accuracy or the estimate of the 20. burden of the information collections, based on the current number of supervised entities even though this Disclosure (Initial setup)—280. including the validity of the Disclosure (Ongoing)—5.78. methodology and assumptions used; proposal only affects a limited number of entities. The agencies believe that any Disclosure (Ongoing quarterly)—35. c. Ways to enhance the quality, Disclosure (Table 13 quarterly)—5. utility, and clarity of the information to changes to the information collections be collected; associated with the proposed rule are Risk-Based Capital Surcharge for GSIBs d. Ways to minimize the burden of the the result of the conforming (21 Institutions Affected) methodology and updates to the information collections on respondents, Recordkeeping (Ongoing)—0.5. respondent count and not the result of including through the use of automated Estimated annual burden hours: 1,088 the proposed rule changes. collection techniques or other forms of hours initial setup, 78,183 hours for information technology; and PRA Burden Estimates ongoing. e. Estimates of capital or startup costs and costs of operation, maintenance, OCC FDIC and purchase of services to provide OMB control number: 1557–0318. OMB control number: 3064–0153. information. Estimated number of respondents: Estimated number of respondents: All comments will become a matter of 1,365 (of which 18 are advanced 3,575 (of which 2 are advanced public record. Comments on aspects of approaches institutions). approaches institutions). this notice that may affect reporting, Estimated average hours per response: Estimated average hours per response: recordkeeping, or disclosure requirements and burden estimates Minimum Capital Ratios (1,365 Minimum Capital Ratios (3,575 should be sent to the addresses listed in Institutions Affected) Institutions Affected) the ADDRESSES section of this document. Recordkeeping (Ongoing)—16. Recordkeeping (Ongoing)—16.
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Standardized Approach (3,575 elect to adopt the CBLR framework entities.35 In connection with a Institutions Affected) would be administrative costs that arise proposed rule, the RFA requires an Recordkeeping (Initial setup)—122. from modifying policies and procedures agency to prepare an Initial Regulatory Recordkeeping (Ongoing)—20. and reporting the new CBLR schedule, Flexibility Analysis describing the Disclosure (Initial setup)—226.25. rather than the existing RC–R schedule. impact of the rule on small entities or Disclosure (Ongoing quarterly)— OCC staff estimates that each national to certify that the proposed rule would 131.25. bank or Federal savings association not have a significant economic impact would spend no more than 320 hours to on a substantial number of small Advanced Approach (2 Institutions modify their policies and procedures entities. An initial regulatory flexibility Affected) and switch to reporting the CBLR analysis must contain (1) a description Recordkeeping (Initial setup)—460. schedule. To estimate this cost, OCC of the reasons why action by the agency Recordkeeping (Ongoing)—540.77. staff used a compensation rate of $117 is being considered; (2) a succinct Recordkeeping (Ongoing quarterly)— per hour.34 Therefore, OCC staff statement of the objectives of, and legal 20. estimate the cost per institution would basis for, the proposed rule; (3) a Disclosure (Initial setup)—280. not exceed $37,440 (320 hours × $117 description of, and, where feasible, an Disclosure (Ongoing)—5.78. per hour). In general, OCC staff estimate of the number of small entities Disclosure (Ongoing quarterly)—35. classifies the economic impact of to which the proposed rule will apply; Estimated annual burden hours: 1,088 expected cost (to comply with a rule) on (4) a description of the projected hours initial setup, 130,758 hours for an individual national bank or Federal reporting, recordkeeping, and other ongoing. savings association as significant if the compliance requirements of the The proposed rule will also require total estimated monetized costs in one proposed rule, including an estimate of changes to the Consolidated Reports of year are greater than (1) 5 percent of the the classes of small entities that will be Condition and Income (Call Reports) national bank’s or Federal savings subject to the requirement and the type (FFIEC 031, FFIEC 041, and FFIEC 051; association’s total annual salaries and of professional skills necessary for OMB No. 1557–0081 (OCC), 7100–0036 benefits or (2) 2.5 percent of the national preparation of the report or record; (5) (Board), and 3064–0052 (FDIC)) and bank’s or Federal savings association’s an identification, to the extent Consolidated Financial Statements for total annual non-interest expense. Based practicable, of all relevant Federal rules Holding Companies (FR Y–9C; OMB No. on this criteria, the estimated cost of the which may duplicate, overlap with, or 7100–0128 (Board)), which will be rule would impose a significant conflict with the proposed rule; and (6) addressed in one or more separate economic impact at only one of the 860 a description of any significant Federal Register notices. affected small institutions, which is not alternatives to the proposed rule which a substantial number. accomplish its stated objectives. B. Regulatory Flexibility Act The Board has considered the OCC: The Regulatory Flexibility Act, Additionally, a critical element of the potential impact of the proposed rule on 5 U.S.C. 601 et seq., (RFA), requires an proposed rule is its inherent optionality. small entities in accordance with the agency, in connection with a proposed OCC staff believe CBLR eligible national RFA. Based on its analysis and for the rule, to prepare an Initial Regulatory banks and Federal savings associations reasons stated below, the Board believes Flexibility Analysis describing the would only choose to use the CBLR that this proposed rule will not have a impact of the rule on small entities framework if the benefits outweighed significant economic impact on a (defined by the SBA for purposes of the the costs. substantial number of small entities. RFA to include commercial banks and Therefore, the OCC certifies that the Nevertheless, the Board is publishing savings institutions with total assets of proposed rule would not have a and inviting comment on this initial $550 million or less and trust significant economic impact on a regulatory flexibility analysis. A final companies with total assets of $38.5 substantial number of OCC-supervised regulatory flexibility analysis will be million of less) or to certify that the small entities. conducted after comments received proposed rule would not have a Board: The Board is providing an during the public comment period have significant economic impact on a initial regulatory flexibility analysis been considered. As discussed in detail above, the substantial number of small entities. with respect to this proposed rule. The proposed rule would establish a As of June 30, 2018, the OCC Regulatory Flexibility Act, 5 U.S.C. 601 33 community bank leverage ratio for supervises 886 small entities, of which et seq. (RFA), requires an agency to qualifying community banking 860 could be impacted by the proposed consider whether the rules it proposes organizations. Qualifying community rule. Thus, a substantial number of will have a significant economic impact banking organizations would consist of small entities could be impacted by the on a substantial number of small proposed rule. insured depository institutions, bank holding companies, and savings and OCC staff also consider whether the 34 The OCC’s cost estimate includes an estimate proposed rule would result in a of the time required to implement the mandates and loan holding companies with total significant economic impact on affected the estimated average hourly wage of the bank consolidated assets of less than $10 small entities. OCC staff believe the employees who might be responsible for tasks billion that also satisfy certain associated with achieving compliance with the qualifying criteria. The qualifying primary cost to small institutions that proposal and other rules that would be affected by implementation of the proposal. To estimate criteria are designed to ensure that 33 The OCC calculated the number of small average hourly wages, OCC staff reviewed data from entities using the SBA’s size thresholds for May 2017 for wages (by industry and occupation) 35 Under regulations issued by the Small Business commercial banks and savings institutions, and from the U.S. Bureau of Labor Statistics (BLS) for Administration, a small entity includes a depository trust companies, which are $550 million and $38.5 depository credit intermediation (NAICS 522100). institution, bank holding company, or savings and million, respectively. Consistent with the General To estimate compensation costs associated with the loan holding company with total assets of $550 Principles of Affiliation, 13 CFR 121.103(a), the rule, OCC staff used $117 per hour, which is based million or less and trust companies with total assets OCC counted the assets of affiliated financial on the average of the 90th percentile for seven of $38.5 million or less. As of June 30, 2018, there institutions when determining whether to classify occupations adjusted for inflation, plus an were approximately 3,053 small bank holding a national bank or Federal savings association as a additional 34.2 percent to cover private sector companies, 184 small savings and loan holding small entity. benefits. companies, and 541 small state member banks.
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qualifying community banking Bank Holding Company Act of 1956, the Federal rules that duplicate, overlap, or organizations do not have significant Home Owners’ Loan Act, and the Dodd- conflict with the proposed changes to levels of assets that would make the Frank Act.41 the capital rule. Therefore, the Board community bank leverage ratio a less The proposed rule would be an believes that the proposed rule will not appropriate capital standard for the optional framework that qualifying have a significant economic impact on risks presented by the firms’ portfolios. community banking organizations could small banking organizations supervised Qualifying community banking choose to apply instead of the Board’s by the Board and therefore believes that organizations that elect to be under the current capital rule. A qualifying there are no significant alternatives to community bank leverage ratio community banking organization would the proposed rule that would reduce the generally would be exempt from the be able to remain subject to the current economic impact on small banking Board’s current capital framework, capital rule if it chose to do so. The organizations supervised by the Board. including risk-based capital proposed rule therefore would not The Board welcomes comment on all requirements and capital conservation impose mandatory requirements on any aspects of its analysis. In particular, the buffer requirements.36 The CBLR would small entities. However, the proposal Board requests that commenters be calibrated such that qualifying would allow Board-regulated describe the nature of any impact on community banking organizations institutions that are qualifying small entities and provide empirical would not be required to raise community banking organizations to data to illustrate and support the extent significant additional capital and would elect to be under the community bank of the impact. not face materially less stringent capital leverage ratio framework. Small entities FDIC: The Regulatory Flexibility Act requirements. The primary benefit of the that are subject to the Board’s capital (RFA) generally requires that, in CBLR for qualifying community banking rule could make such an election, which connection with a proposed rulemaking, organizations is therefore expected to be would require immediate changes to an agency prepare and make available reduced calculation and reporting reporting, recordkeeping, and for public comment an initial regulatory burdens. compliance systems. flexibility analysis describing the The Board has broad authority under Further, as discussed previously in impact of the rulemaking on small the International Lending Supervision the Paperwork Reduction Act section, entities.42 A regulatory flexibility Act of 1983 (ILSA) 37 and the Prompt the proposal would make changes to the analysis is not required, however, if the Corrective Action (PCA) provisions of projected reporting, recordkeeping, and agency certifies that the rule will not the Federal Deposit Insurance Act 38 to other compliance requirements of the have a significant economic impact on establish regulatory capital rule by impacting the information that a substantial number of small entities. requirements for the institutions it qualifying community banking The Small Business Administration regulates. For example, ILSA directs organizations that elect to use the (SBA) has defined ‘‘small entities’’ to each Federal banking agency to cause community bank leverage ratio would include banking organizations with total banking institutions to achieve and be required to collect. assets less than or equal to $550 maintain adequate capital by The agencies anticipate making million.43 The FDIC supervises 3,575 establishing minimum capital changes through a separate notice to depository institutions,44 of which requirements as well as by other means regulatory reporting forms that currently 2,763 are defined as small banking that the agency deems appropriate.39 collect regulatory capital information entities by the terms of the RFA.45 Based The PCA provisions of the Federal (the Call Report (FFIEC 031, 041, and on its analysis and for the reasons stated Deposit Insurance Act direct each 051) and the Consolidated Financial below, the FDIC believes that this Federal banking agency to specify, for Statements for Holding Companies proposal would not have a significant each relevant capital measure, the level (Form FR Y–9C)). Firms would be economic impact on a substantial at which an IDI subsidiary is well required to update their systems to number of small entities. capitalized, adequately capitalized, implement these changes to reporting Description of Need and Policy undercapitalized, and significantly forms. Systems changes would be Objectives undercapitalized.40 In addition, the predominantly due to changes to the Board has broad authority to establish applicable reporting forms that are The policy objective of the proposed regulatory capital standards for bank expected to be released in the near rule is to conform the FDIC’s regulations holding companies, savings and loan future, rather than the proposal to the statutory language established by holding companies, and U.S. described in this notice. The Board does the Act. On May 24, 2018, the Economic intermediate holding companies of not expect that the compliance, Growth, Regulatory Relief, and foreign banking organizations under the recordkeeping, and reporting updates Consumer Protection Act (the Act) from this proposal would impose a amended provisions in the Dodd-Frank 36 Nearly all small bank holding companies and significant cost on small Board- small savings and loan holding companies are regulated institutions. These changes 42 5 U.S.C. 601 et seq. currently exempt from the Board’s capital rule and would only impact small entities that 43 The SBA defines a small banking organization are instead covered by the Board’s Small Bank elect to use the community bank as having $550 million or less in assets, where ‘‘a Holding Company and Savings and Loan Holding financial institution’s assets are determined by Company Policy Statement. The policy statement leverage ratio and, while there would be averaging the assets reported on its four quarterly applies to bank holding companies and savings and limited upfront costs to update systems, financial statements for the preceding year.’’ 13 CFR loan holding companies with less than $3 billion an overall reduction in burden is 121.201 n.8 (2018). ‘‘SBA counts the receipts, in total consolidated assets that also satisfy expected. However, the reduction in employees, or other measure of size of the concern specified eligibility criteria. See 12 CFR whose size is at issue and all of its domestic and 217.1(c)(1)(ii) through (iii); 12 CFR part 225 app. C. burden will be predominantly due to foreign affiliates. . . .’’ 13 CFR 121.103(a)(6) The proposal is not expected to impact small bank changes in regulatory reporting forms, (2018). Following these regulations, the FDIC uses holding companies and small savings and loan and these burden changes therefore are a covered entity’s affiliated and acquired assets, holding companies that are subject to the policy expected to be discussed in a regulatory averaged over the preceding four quarters, to statement. determine whether the covered entity is ‘‘small’’ for 37 12 U.S.C. 3901–3911. reporting notice in the near future. In the purposes of RFA. 38 12 U.S.C. 1831o. addition, the Board is aware of no other 44 FDIC-supervised institutions are set forth in 12 39 12 U.S.C. 3907(a)(1). U.S.C. 1813(q)(2). 40 12 U.S.C. 1831o(c)(2). 41 See 12 U.S.C. 1467a, 1844, 5365, 5371. 45 Call Report: June 30, 2018.
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Wall Street Reform and Consumer resulting in a reduction in reporting consolidated assets outweighs the cost Protection Act (Dodd-Frank Act) 46 as costs for institutions. As described in incurred in doing so. However, the well as certain other statutes section II.J. of this preamble, Illustrative statutory changes established by the Act administered by the agencies.47 Section Reporting Form, the agencies intend to will enable certain institutions to utilize 201 of the Act, titled ‘‘Capital separately seek comment on the the CBLR framework. The proposed rule Simplification for Qualifying proposed changes to regulatory reports amends the FDIC’s regulations to Community Banks,’’ directs the agencies for qualifying community banking conform with the CBLR framework to develop a community bank leverage organizations that opt into the CBLR authorized under the Act. Therefore, ratio (CBLR) of not less than 8 percent framework. To provide an indication of this component of the proposal would and not more than 10 percent for the potential reporting format and not have a direct effect on small, FDIC- ‘‘qualifying community banks’’ potential reporting burden relief for supervised institutions. (qualifying community banking qualifying community banking As noted previously, the proposed organizations). The Act defines a organizations that opt into the proposed rule could affect the deposit insurance qualifying community banking CBLR framework, the agencies included assessments of qualifying small, FDIC- organization as a depository institution an illustrative report with this supervised institutions that elect to use or depository institution holding rulemaking, using the Call Report as an the CBLR framework. The extent of this company with total consolidated assets example. Depository institutions that effect is difficult to quantify with of less than $10 billion. may benefit from reduced reporting available information. The proposed costs because of the proposed rule could rule removes the requirement for small, Other Federal Rules employ those resources in ways the FDIC-supervised institutions that opt The FDIC has not identified any likely institution believes is more beneficial. It into the CBLR framework from reporting duplication, overlap, and/or potential is difficult to accurately estimate the tier 1 capital or the tier 1 leverage ratio. conflict between the proposal and any size of this potential effect because it The FDIC, however, uses these measures Federal rule. depends on the characteristics of the as part of its deposit insurance assessment system. The FDIC plans to Economic Impacts on Small Entities individual institution and the future decisions of senior management. publish a separate notice of proposed As discussed previously in section II: rulemaking to address the application of As noted previously, by opting into Summary of the Proposal, a depository the CBLR framework as it relates to the the CBLR framework, the capital levels institution that is not an advanced deposit insurance assessment system. of some small, FDIC-supervised approaches banking organization could The rulemaking would address, among institutions could be marginally be eligible to opt into the CBLR other things, how the CBLR framework affected, but it is unlikely to framework, if they meet the following can be applied in lieu of the leverage significantly affect the quantity of criteria: ratio and in lieu of tier 1 capital when regulatory capital in the banking system. • Have total consolidated assets of calculating a bank’s assessment. The FDIC estimates that 2,296 small, less than $10 billion; However, since the final form of that FDIC-supervised institutions are • Have total off-balance sheet rule is unknown, the potential effects on qualifying community banking exposures (excluding derivatives that small, FDIC-supervised institutions are organizations. Of those entities, 2,027 are not credit derivatives and unknown. As one option, the FDIC may report holding a volume of CBLR unconditionally cancelable consider using the definitions in this tangible equity to total consolidated commitments) of 25 percent or less of proposal in the deposit insurance assets in excess of nine percent, plus an total consolidated assets; assessment system. For most qualifying additional buffer of 50 basis points. • Have total trading assets and community banking organizations, Some eligible small, FDIC-supervised trading liabilities of 5 percent or less of pursuing this option would result in no institutions that opt into the CBLR total consolidated assets; change, or would result in a reduction, • Have MSAs of 25 percent or less of framework could employ any CBLR in an institution’s assessment. In CBLR tangible equity; and tangible equity in excess of the level particular, based on June 30, 2018 Call • Have temporary difference DTAs of required to achieve nine percent of total Report data, replacing the leverage ratio 25 percent or less of CBLR tangible consolidated assets in other ways the with the CBLR, and replacing tier 1 equity. institution decides is more beneficial. It capital with CBLR tangible equity in the As of June 30, 2018, there were 2,713 is difficult to accurately estimate what calculation of the assessment base, small, FDIC-supervised depository these institutions will do with the would result in the same or lower institutions who would be qualifying tangible equity that exceeds nine assessments for more than 90 percent of community banking organizations under percent because it depends on the institutions that could be qualifying the proposed rule. They comprise characteristics of each individual community banking organizations under approximately 98 percent of small, institution, the decisions of senior this proposal. For other institutions, FDIC-supervised depository institutions. management, current and future application of the CBLR framework to Therefore, the proposed rule could economic conditions, as well as current deposit insurance assessments would affect an estimated 98 percent of small, and future financial conditions. result in higher assessments; however, FDIC-supervised institutions. Additionally, some institutions who are for over three-quarters of those Utilizing the CBLR framework is not qualifying community banking institutions, that increase would expected to reduce reporting costs for organizations because their CBLR represent less than one percent of their small, FDIC-supervised institutions. tangible equity is less than nine percent deposit insurance assessment for the Opting into the CBLR framework would of total consolidated assets may elect to second quarter of 2018. raise additional tangible equity in order enable institutions to no longer report Alternatives Considered Schedule RC–R of the Call Report, to become eligible. In such cases, each entity will have determined that the As previously discussed in section 46 Public Law 111–203, 124 Stat. 1391, 12 U.S.C. value of attaining a level of CBLR II.E. Calibration of the Community Bank 5301 et seq. tangible equity necessary to meet or Leverage Ratio, other alternatives 47 Public Law 115–174 (May 24, 2018). exceed nine percent of total including calibrating the CBLR to eight
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percent were considered by the FDIC. private sector, of $100 million or more 12 CFR Part 5 This alternative would allow more in any one year (adjusted for inflation). Administrative practice and banking organizations to opt into the The OCC has determined that this procedure, National banks, Reporting CBLR framework but would potentially proposed rule would not result in and recordkeeping requirements, allow a large number of CBLR banking expenditures by State, local, and Tribal Securities. organizations to hold less capital than governments, or the private sector, of 12 CFR Part 6 under the generally applicable capital $100 million or more in any one year. requirements. The proposed calibration Accordingly, the OCC has not prepared Federal Reserve System, National of the CBLR, in conjunction with the a written statement to accompany this banks. qualifying community banking proposal. organization and CBLR tangible equity 12 CFR Part 23 definitions, seeks to strike a balance E. Riegle Community Development and National banks. among the following objectives: Regulatory Improvement Act of 1994 Maintaining strong capital levels in the 12 CFR Part 24 banking system, ensuring safety and Pursuant to section 302(a) of the Community development, Credit, soundness, and providing appropriate Riegle Community Development and Investments, Low and moderate income regulatory burden relief to as many Regulatory Improvement Act 49 housing, National banks, Reporting and banking organizations as possible. (RCDRIA), in determining the effective recordkeeping requirements, Rural The FDIC invites comments on all date and administrative compliance areas, Small businesses. aspects of the supporting information requirements for new regulations that provided in this RFA section. In impose additional reporting, disclosure, 12 CFR Part 32 particular, would this proposal have any or other requirements on insured National banks, Reporting and significant effects on small entities that depository institutions, each Federal recordkeeping requirements. the FDIC has not identified? banking agency must consider, consistent with principles of safety and 12 CFR Part 34 C. Plain Language soundness and the public interest, any Mortgages, National banks, Reporting Section 722 of the Gramm-Leach administrative burdens that such and recordkeeping requirements. Bliley Act 48 requires the Federal regulations would place on depository banking agencies to use plain language institutions, including small depository 12 CFR Part 160 in all proposed and final rules institutions, and customers of Consumer protection, Investments, published after January 1, 2000. The depository institutions, as well as the Manufactured homes, Mortgages, agencies invite comments on how to benefits of such regulations. In addition, Reporting and recordkeeping make these notices of proposed section 302(b) of RCDRIA requires new requirements, Savings associations, rulemaking easier to understand. For regulations and amendments to Securities. example: regulations that impose additional • Have the agencies presented the reporting, disclosures, or other new 12 CFR Part 192 material in an organized manner that requirements on insured depository Reporting and recordkeeping meets your needs? If not, how could this institutions generally to take effect on requirements, Savings associations, material be better organized? the first day of a calendar quarter that Securities. • Are the requirements in the notice begins on or after the date on which the of proposed rulemaking clearly stated? regulations are published in final 12 CFR Part 206 If not, how could the proposal be more form.50 Banks, Banking, Interbank liability, clearly stated? The agencies note that comment on Lending limits, Savings associations. • Does the proposal contain language these matters has been solicited in other 12 CFR Part 208 that is not clear? If so, which language sections of this Supplementary requires clarification? Confidential business information, • Information section, and that the Would a different format (grouping requirements of RCDRIA will be Crime, Currency, Federal Reserve and order of sections, use of headings, considered as part of the overall System, Mortgages, reporting and paragraphing) make the proposal easier rulemaking process. In addition, the recordkeeping requirements, Securities. to understand? If so, what changes to agencies also invite any other comments 12 CFR Part 211 the format would make the proposal that further will inform the agencies’ Exports, Federal Reserve System, easier to understand? consideration of RCDRIA. • What else could the agencies do to Foreign banking, Holding companies, make the proposal easier to understand? List of Subjects Investments, Reporting and recordkeeping requirements. D. OCC Unfunded Mandates Reform Act 12 CFR Part 1 of 1995 12 CFR Part 215 Banks, banking, National banks, The OCC analyzed the proposed rule Credit, Penalties, Reporting and Reporting and recordkeeping under the factors set forth in the recordkeeping requirements. requirements, Securities. Unfunded Mandates Reform Act of 1995 12 CFR Part 217 (UMRA) (2 U.S.C. 1532). Under this 12 CFR Part 3 analysis, the OCC considered whether Administrative practice and the proposed rule includes a Federal Administrative practice and procedure, Banks, banking, Holding mandate that may result in the procedure, Federal Reserve System, companies, Reporting and expenditure by State, local, and Tribal National banks, Reporting and recordkeeping requirements, Securities. recordkeeping requirements. governments, in the aggregate, or by the 12 CFR Part 223
48 Public Law 106–102, section 722, 113 Stat. 49 12 U.S.C. 4802(a). Banks, Banking, Federal Reserve 1338, 1471 (1999). 50 Id. System.
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12 CFR Part 225 DEPARTMENT OF THE TREASURY association must maintain the following Office of the Comptroller of the minimum capital ratios: Administrative practice and (i) A common equity tier 1 capital Currency procedure, Banks, banking, Federal ratio of 4.5 percent. Reserve System, Holding companies, 12 CFR Chapter I (ii) A tier 1 capital ratio of 6 percent. Reporting and recordkeeping Authority and Issuance (iii) A total capital ratio of 8 percent. requirements, Securities. (iv) A leverage ratio of 4 percent. For the reasons stated in the (v) For advanced approaches FDIC- 12 CFR Part 238 Supplementary Information, Chapter I supervised institutions, a Savings and loan holding companies of title 12 of the Code of Federal supplementary leverage ratio of 3 (Regulation LL). Regulations is proposed to be amended percent. as follows: (vi) For state savings associations, a 12 CFR Part 251 tangible capital ratio of 1.5 percent. PART 1—INVESTMENT SECURITIES (2) A qualifying community banking Administrative practice and organization (as defined in § 3.12), that ■ procedure, Banks, banking, 1. The authority citation for part 1 is subject to the community bank Concentration Limit, Federal Reserve continues to read as follows: leverage ratio (as defined in § 3.12), is System, Holding companies, Reporting Authority: 12 U.S.C. 1 et seq., 24 (Seventh), considered to have met the minimum and recordkeeping requirements, and 93a. capital requirements in this paragraph Securities. ■ 2. Section 1.2 is amended by revising (a) only if the qualifying community 12 CFR Part 303 paragraph (a) to read as follows: banking organization maintains a community bank leverage ratio of at Administrative practice and § 1.2 Definitions. least 7.5 percent. procedure, Bank deposit insurance, (a) Capital and surplus means: * * * * * Banks, banking, Reporting and (1) For qualifying community banking ■ 5. Add section 3.12 to read as follows: recordkeeping requirements, State non- organizations that have elected to use member banks, Savings associations. the community bank leverage ratio § 3.12 Community bank leverage ratio. framework, as set forth under the OCC’s (a) Community bank leverage ratio 12 CFR Part 324 Capital Adequacy Standards set forth at framework. (1) Notwithstanding any Administrative practice and 12 CFR part 3: other provision in this part, a qualifying procedure, Banks, banking, Capital (i) A qualifying community banking community banking organization that adequacy, Reporting and recordkeeping organization’s tangible equity capital, as has made an election to use the requirements, State non-member banks, calculated under 12 CFR 3.12(b)(2); plus community bank leverage ratio Savings associations. (ii) A qualifying community banking framework under paragraph (a)(3) of this organization’s allowances for loan and section shall be considered to have met 12 CFR Part 337 lease losses as reported in the bank’s the minimum capital requirements Consolidated Report of Condition and under § 3.10, the capital ratio Banks, banking, Reporting and Income (Call Report); or requirements for the well capitalized recordkeeping requirements, Securities. (2) For all other banks: capital category under 12 CFR part 6, 12 CFR Part 347 (i) A bank’s tier 1 and tier 2 capital and any other capital or leverage calculated under the OCC’s risk-based requirements to which the qualifying Authority delegations (Government capital standards set forth in 12 CFR community banking organization is agencies), Bank deposit insurance, part 3, as applicable (or comparable subject, if it has a community bank Banks, banking, Credit, Foreign banking, capital guidelines of the appropriate leverage ratio greater than 9.0 percent. Investments, Reporting and Federal banking agency), as reported in (2) For purposes of this section, a recordkeeping requirements, U.S. the bank’s Call Report; plus qualifying community banking Investments abroad. (ii) The balance of a bank’s organization means a national bank or allowances for loan and lease losses not Federal savings association that is not 12 CFR Part 362 included in the bank’s Tier 2 capital, for an advanced approaches national bank Administrative practice and purposes of the calculation of risk-based or Federal savings association and that procedure, Authority delegations capital described in paragraph (a)(2)(i) satisfies all of the following criteria: (Government agencies), Bank deposit of this section, as reported in the bank’s (i) Has total consolidated assets of less insurance, Banks, banking, Investments, Call Report. than $10 billion, calculated in Reporting and recordkeeping * * * * * accordance with the reporting requirements. instructions to Schedule RC of the Call PART 3—CAPITAL ADEQUACY Report as of the end of the most recent 12 CFR Part 365 STANDARDS calendar quarter; (ii) Has off-balance sheet exposures of Banks, banking, Mortgages. ■ 3. The authority citation for part 3 25 percent or less of its total continues to read as follows: 12 CFR Part 390 consolidated assets as of the end of the Authority: 12 U.S.C. 93a, 161, 1462, 1462a, most recent calendar quarter, calculated Administrative practice and 1463, 1464, 1818, 1828(n), 1828 note, 1831n as the sum of the notional amounts of procedure, Advertising, Aged, Civil note, 1835, 3907, 3909, and 5412(b)(2)(B). the exposures listed in paragraphs rights, Conflict of interests, Credit, ■ 4. Section 3.10 is amended by revising (a)(2)(ii)(A) through (I) of this section-, Crime, Equal employment opportunity, paragraph (a) to read as follows: divided by total consolidated assets, Fair housing, Government employees, each as of the end of the most recent Individuals with disabilities, Reporting § 3.10 Minimum capital requirements. calendar quarter: and recordkeeping requirements, (a) Minimum capital requirements. (1) (A) The unused portion of Savings associations. A national bank or Federal savings commitments (except for
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unconditionally cancellable use the community bank leverage ratio national bank or Federal savings commitments); may opt-out of using the community association ceases to satisfy the criteria (B) Self-liquidating, trade-related bank leverage ratio by completing to be a qualifying community banking contingent items that arise from the Schedule RC–R in its Call Report or by organization provided in paragraph movement of goods; otherwise providing the information (a)(2) of this section. The grace period (C) Transaction-related contingent required in Schedule RC–R to the OCC. ends on the last day of the second items, including performance bonds, bid (B) A qualifying community banking consecutive calendar quarter following bonds, warranties, and performance organization that opts out of using the the beginning of the grace period. standby letters of credit; community bank leverage ratio pursuant (3) During the grace period, the (D) Sold credit protection through to paragraph (a)(3)(iv)(A) of this section national bank or Federal savings (1) Guarantees; and must comply with § 3.10 immediately. association continues to be a qualifying (2) Credit derivatives; (b) Calculation of the community community banking organization for the (E) Credit-enhancing representations bank leverage ratio. (1) A qualifying purposes of this part and must continue and warranties; community banking organization’s calculating and reporting its community (F) Securities lent and borrowed, community bank leverage ratio is the bank leverage ratio unless the national calculated in accordance with the ratio of the banking organization’s CBLR reporting instructions to Schedule RC– bank or Federal savings association has tangible equity as defined in paragraph opted out of using the community bank L of the Call Report; (b)(2) of this section, to its average total (G) Financial standby letters of credit; leverage ratio under paragraph (a)(3) of (H) Forward agreements that are not consolidated assets, as defined in this section. derivative contracts; and paragraph (b)(3) of this section. (4) Notwithstanding paragraphs (c)(1) (I) Off-balance sheet securitization (2) CBLR tangible equity means total through (3) of this section, a national exposures; bank equity capital, calculated in bank or Federal savings association that (iii) Has total trading assets and accordance with the reporting no longer meets the definition of a trading liabilities, calculated in instructions to Schedule RC of the Call qualifying community banking accordance with the reporting Report, before the inclusion of non- organization as a result of a merger or instructions to Schedule RC of the Call controlling (minority) interests in acquisition has no grace period and Report of 5 percent or less of the consolidated subsidiaries, as of the end immediately ceases to be a qualifying national bank’s or Federal savings of the most recent calendar quarter less community banking organization. Such association’s total consolidated assets, the following (each as of the end of the a national bank or Federal savings each as of the end of the most recent most recent calendar quarter): association must comply with § 3.10 calendar quarter; (i) Accumulated other comprehensive and must report the required capital (iv) Has mortgage servicing assets, income calculated in accordance with measures under § 3.10 on its next Call calculated in accordance with the the reporting instructions to Schedule Report. reporting instructions to Schedule RC– RC of the Call Report; (d) Tangible equity information. (1) A M of the Call Report, of 25 percent or (ii) Intangible Assets, calculated in qualifying community banking less of the national bank’s or Federal accordance with the reporting organization, that has elected to use the savings association’s CBLR tangible instructions to Schedule RC of the Call community bank leverage ratio under equity, each as of the end of the most Report, other than mortgage servicing this section and has a community bank recent calendar quarter; and assets; and leverage ratio that falls below 6.0 (v) Has DTAs arising from temporary (iii) Deferred tax assets (DTAs) that percent, must promptly provide to the differences that the national bank or arise from net operating loss and tax OCC the information necessary for the Federal savings association could not credit carryforwards net of any related calculation of its tangible equity, as realize through net operating loss valuation allowances. defined under 12 CFR 6.2, for purposes carrybacks, net of any related valuation (3) Average total consolidated assets of determining the capital category of allowances, of 25 percent or less of the means total assets calculated in the national bank or Federal savings national bank’s or Federal savings accordance with the reporting association under 12 CFR part 6. association’s CBLR tangible equity, each instructions to Schedule RC–K of the (2) Notwithstanding paragraph (d)(1), as of the end of the most recent calendar Call Report as of the end of the most upon request by the OCC, a qualifying quarter. recent calendar quarter less the amounts community banking organization must (3)(i) A qualifying community deducted from CBLR tangible equity provide the information necessary for banking organization may elect to use under paragraphs (b)(2)(ii) and (iii) of the calculation of its tangible equity, as the community bank leverage ratio this section. defined under 12 CFR part 6, to the framework if it makes an opt-in election (c) Treatment when ceasing to be a OCC. under this paragraph (a)(3). qualifying community banking (ii) A qualifying community banking organization requirements. (1) Except as PART 5—RULES, POLICIES, AND organization may elect to use the provided in paragraph (c)(4) of this PROCEDURES FOR CORPORATE community bank leverage ratio section, if a national bank or Federal ACTIVITIES framework only if it has a community savings association ceases to meet the bank leverage ratio that exceeds 9 definition of a qualifying community ■ 6. The authority citation for part 5 percent at the time of the election. banking organization, the national bank continues to read as follows: (iii) For purposes of paragraph (a)(3) or Federal savings association has two Authority: 12 U.S.C. 1 et seq., 24a, 93a, of this section, a qualifying community reporting periods (grace period) to either 215a–2, 215a–3, 481, 1462a, 1463, 1464, 2901 banking organization makes an election satisfy the requirements to be a et seq., 3907, and 5412(b)(2)(B). to use the community bank leverage qualifying community banking ■ 7. Section 5.3 is amended by revising ratio framework by completing the organization or to comply with § 3.10 paragraph (e) to read as follows: community bank leverage ratio and report the required capital measures reporting schedule in its Call Report. under section 10 on its Call Report. § 5.3 Definitions. (iv)(A) A qualifying community (2) The grace period begins as of the * * * * * banking organization that has elected to end of the calendar quarter in which the (e) Capital and surplus means:
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(1) For qualifying community banking U.S.C. 161 or 12 U.S.C. 1464(v), (2) For a qualifying community organizations that have elected to use respectively; plus banking organization (as defined in 12 the community bank leverage ratio (B) The balance of a national bank’s CFR 3.12), that is subject to the framework, as set forth under the OCC’s or Federal savings association’s community bank leverage ratio (as Capital Adequacy Standards set forth at allowances for loan and lease losses not defined in 12 CFR 3.12), the community 12 CFR part 3: included in the bank’s or savings bank leverage ratio, as defined under 12 (i) A qualifying community banking association’s tier 2 capital, for purposes CFR 3.12 is used to determine the organization’s tangible equity capital, as of the calculation of risk-based capital applicable capital category under calculated under 12 CFR 3.12(b)(2); plus described in paragraph (c)(3)(ii)(A) of paragraphs (b)(1) through (4) of this (ii) A qualifying community banking this section, as reported in the national section. organization’s allowances for loan and bank’s or Federal savings association’s (b) Capital categories. For purposes of lease losses or allowance for credit Call Reports filed under 12 U.S.C. 161 section 38 of the FDI Act and this part, losses, as applicable, as reported in the or 1464(v), respectively. a national bank or Federal savings national bank’s or Federal savings * * * * * association shall be deemed to be: association’s Consolidated Report of ■ 9. Section 5.58 is amended by revising (1)(i) ‘‘Well capitalized’’ if: Condition and Income (Call Report); or paragraph (h)(2) to read as follows: (A) Total Risk-Based Capital Measure: (2) For all other national banks and the national bank or Federal savings Federal savings associations: § 5.58 Pass-through investments by a association has a total risk-based capital (i) A national bank’s or Federal Federal savings association. ratio of 10.0 percent or greater; savings association’s tier 1 and tier 2 * * * * * (B) Tier 1 Risk-Based Capital Measure: capital calculated under the OCC’s risk- (h) * * * The national bank or Federal savings based capital standards set forth in 12 (2) The Federal savings association is association has a tier 1 risk-based CFR part 3, as applicable, as reported in not investing more than 10 percent of its capital ratio of 8.0 percent or greater; the bank’s or savings association’s total capital (in the case of a Federal (C) Common Equity Tier 1 Capital Consolidated Reports of Condition and savings association that is a qualifying Measure: The national bank or Federal Income (Call Reports) filed under 12 community banking organization that savings association has a common U.S.C. 161 or 12 U.S.C. 1464(v), has elected to use the community bank equity tier 1 risk-based capital ratio of respectively; plus leverage ratio framework, 10 percent of 6.5 percent or greater; (ii) The balance of the national bank’s its tangible equity capital, calculated (D) Leverage Measure: or Federal savings association’s under 12 CFR 3.12) in one company; (1) The national bank or Federal savings association has a leverage ratio allowances for loan and lease losses not * * * * * included in the institution’s tier 2 of 5.0 percent or greater; and capital, for purposes of the calculation PART 6—PROMPT CORRECTIVE (2) With respect to a national bank or of risk-based capital reported in the ACTION Federal savings association that is a institution’s Call Reports, described in subsidiary of a U.S. top-tier bank ■ paragraph (e)(2)(i) of this section. 10. The authority citation for part 6 holding company that has more than continues to read as follows: $700 billion in total assets as reported * * * * * on the company’s most recent ■ 8. Section 5.37 is amended by revising Authority: 12 U.S.C. 93a, 1831o, Consolidated Financial Statement for paragraph (c)(3) to read as follows: 5412(b)(2)(B). Bank Holding Companies (Form FR Y– ■ 11. Section 6.4 is amended by: 9C) or more than $10 trillion in assets § 5.37 Investment in national bank or ■ a. Revising the heading to read as set Federal savings association premises. under custody as reported on the forth below, * * * * * ■ b. Removing paragraph (c), company’s most recent Banking (c) * * * ■ c. Redesignating paragraphs (d) and Organization Systemic Risk Report (3) Capital and surplus means: (e) as paragraphs (c) and (d), (Form FR Y–15), on Jan. 1, 2018 and (i) For qualifying community banking respectively, and thereafter, the national bank or Federal organizations that have elected to use ■ d. Revising paragraphs (a) and (b). savings association has a supplementary the community bank leverage ratio The revisions read as follows. leverage ratio of 6.0 percent or greater; framework, as set forth under the OCC’s and Capital Adequacy Standards set forth at § 6.4 Capital measures and capital (E) The national bank or Federal 12 CFR part 3: categories. savings association is not subject to any (A) A qualifying community banking (a) Capital measures. (1) For purposes written agreement, order or capital organization’s tangible equity capital, as of section 38 of the FDI Act and this directive, or prompt corrective action calculated under 12 CFR 3.12(b)(2); plus part, the relevant capital measures shall directive issued by the OCC pursuant to (B) A qualifying community banking be: section 8 of the FDI Act, the organization’s allowances for loan and (i) Total Risk-Based Capital Measure: International Lending Supervision Act lease losses or allowance for credit The total risk-based capital ratio; of 1983 (12 U.S.C. 3907), the Home losses, as applicable, as reported in the (ii) Tier 1 Risk-Based Capital Measure: Owners’ Loan Act (12 U.S.C. national bank’s or Federal savings The tier 1 risk-based capital ratio; 1464(t)(6)(A)(ii)), or section 38 of the association’s Call Report; or (iii) Common Equity Tier 1 Capital FDI Act, or any regulation thereunder, (ii) For all other national banks and Measure: The common equity tier 1 risk- to meet and maintain a specific capital Federal savings associations: based capital ratio; level for any capital measure. (A) A national bank’s or Federal (iv) The Leverage Measure: (ii) A qualifying community banking savings association’s tier 1 and tier 2 (A) The leverage ratio; and organization, as defined under 12 CFR capital calculated under 12 CFR part 3, (B) With respect to an advanced 3.12, that has elected to use the as applicable, as reported in the national approaches national bank or advanced community bank leverage ratio bank’s or Federal savings association’s approaches Federal savings association, framework under section 12 CFR 3.12 Consolidated Reports of Condition and on January 1, 2018, and thereafter, the and that has a community bank leverage Income (Call Reports) filed under 12 supplementary leverage ratio; and ratio, as defined under 12 CFR 3.12,
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greater than 9.0 percent, shall be on January 1, 2018, and thereafter, the Capital Adequacy Standards set forth at considered to have met the capital ratio national bank or Federal savings 12 CFR part 3: requirements for the well capitalized association has a supplementary (i) A qualifying community banking capital category in paragraphs leverage ratio of less than 3.0 percent. organization’s tangible equity capital, as (b)(1)(i)(A) through (D) of this section. (ii) A qualifying community banking calculated under 12 CFR 3.12(b)(2); plus (2)(i) ‘‘Adequately capitalized’’ if: organization, as defined under 12 CFR (ii) A qualifying community banking (A) Total Risk-Based Capital Measure: 3.12, that has elected to use the organization’s allowances for loan and The national bank or Federal savings community bank leverage ratio lease losses or allowance for credit association has a total risk-based capital framework under section 12 CFR 3.12 losses, as applicable, as reported in the ratio of 8.0 percent or greater; and that has a community bank leverage national bank’s Call Report; or (B) Tier 1 Risk-Based Capital Measure: ratio, as defined under 12 CFR 3.12, of (2) For all other national banks: The national bank or Federal savings less than 7.5 percent, shall be (i) A bank’s tier 1 and tier 2 capital association has a tier 1 risk-based considered to have met the calculated under the OCC’s risk-based capital ratio of 6.0 percent or greater; requirements for the undercapitalized capital standards set forth in 12 CFR (C) Common Equity Tier 1 Capital capital category in paragraph part 3, as applicable, as reported in the Measure: The national bank or Federal (b)(3)(1)(A) through (D) of this section. bank’s Consolidated Reports of savings association has a common (4)(i) ‘‘Significantly undercapitalized’’ Condition and Income (Call Report) equity tier 1 risk-based capital ratio of if: filed under 12 U.S.C. 161; plus 4.5 percent or greater; (A) Total Risk-Based Capital Measure: (ii) The balance of a bank’s (D) Leverage Measure: The national bank or Federal savings allowances for loan and lease losses not (1) The national bank or Federal association has a total risk-based capital included in the bank’s Tier 2 capital, for savings association has a leverage ratio ratio of less than 6.0 percent; purposes of the calculation of risk-based of 4.0 percent or greater; and (B) Tier 1 Risk-Based Capital Measure: capital described in paragraph (b)(2)(i) (2) With respect to an advanced The national bank or Federal savings of this section, as reported in the bank’s approaches national bank or advanced association has a tier 1 risk-based Consolidated Report of Condition and approaches Federal savings association, capital ratio of less than 4.0 percent; Income filed under 12 U.S.C. 161. on January 1, 2018 and thereafter, the (C) Common Equity Tier 1 Capital * * * * * national bank or Federal savings Measure: The national bank or Federal association has an supplementary savings association has a common PART 24—COMMUNITY AND leverage ratio of 3.0 percent or greater; equity tier 1 risk-based capital ratio of ECONOMIC DEVELOPMENT ENTITIES, and less than 3.0 percent; or COMMUNITY DEVELOPMENT (E) The national bank or Federal (D) Leverage Ratio: The national bank PROJECTS, AND OTHER PUBLIC savings association does not meet the or Federal savings association has a WELFARE INVESTMENTS definition of a ‘‘well capitalized’’ leverage ratio of less than 3.0 percent. ■ national bank or Federal savings (ii) A qualifying community banking 14. The authority citation for part 24 association. organization, as defined under 12 CFR continues to read as follows: (ii) A qualifying community banking 3.12, that has elected to use the Authority: 12 U.S.C. 24(Eleventh), 93a, organization, as defined under 12 CFR community bank leverage ratio 481 and 1818. 3.12, that has elected to use the framework under section 12 CFR 3.12 ■ 15. Section 24.2 is amended by community bank leverage ratio and that has a community bank leverage revising paragraph (b) to read as follows: framework under 12 CFR 3.12 and that ratio, as defined under 12 CFR 3.12, of has a community bank leverage ratio, as less than 6.0 percent, shall be § 24.2 Definitions. defined under 12 CFR 3.12, of 7.5 considered to have met the * * * * * percent or greater, shall be considered to requirements for the significantly (b) Capital and surplus means: have met the requirements for the undercapitalized capital category in (1) For qualifying community banking adequately capitalized capital category paragraphs (b)(4)(i)(A) through (D) of organizations that have elected to use in paragraphs (b)(2)(i)(A) through (D) of this section. the community bank leverage ratio this section. (5) ‘‘Critically undercapitalized’’ if the framework, as set forth under the OCC’s (3)(i) ‘‘Undercapitalized’’ if: insured depository institution has a Capital Adequacy Standards set forth at (A) Total Risk-Based Capital Measure: ratio of tangible equity to total assets 12 CFR part 3: The national bank or Federal savings that is equal to or less than 2.0 percent. (i) A qualifying community banking association has a total risk-based capital * * * * * organization’s tangible equity capital, as ratio of less than 8.0 percent; calculated under 12 CFR 3.12(b)(2); plus (B) Tier 1 Risk-Based Capital Measure: PART 23—LEASING (ii) A qualifying community banking The national bank or Federal savings organization’s allowances for loan and ■ association has a tier 1 risk-based 12. The authority citation for part 23 lease losses or allowance for credit capital ratio of less than 6.0 percent; continues to read as follows: losses, as applicable, as reported in the (C) Common Equity Tier 1 Capital Authority: 12 U.S.C. 1 et seq., 24(Seventh), national bank’s Call Report; or Measure: The national bank or Federal 24(Tenth), and 93a. (2) For all other national banks: savings association has a common ■ 13. Section 23.2 is amended by (i) A bank’s tier 1 and tier 2 capital equity tier 1 risk-based capital ratio of revising paragraph (b) to read as follows: calculated under the OCC’s risk-based less than 4.5 percent; or capital standards set forth in 12 CFR (D) Leverage Measure: § 23.2 Definitions. part 3, as applicable, as reported in the (1) The national bank or Federal * * * * * bank’s Consolidated Reports of savings association has a leverage ratio (b) Capital and surplus means: Condition and Income (Call Report) as of less than 4.0 percent; or (1) For qualifying community banking filed under 12 U.S.C. 161; plus (2) With respect to an advanced organizations that have elected to use (ii) The balance of a bank’s approaches national bank or advanced the community bank leverage ratio allowances for loan and lease losses not approaches Federal savings association, framework, as set forth under the OCC’s included in the bank’s tier 2 capital, for
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purposes of the calculation of risk-based (1) For qualifying community banking § 192.500 What management stock benefit capital described in paragraph (b)(2)(i) organizations that have elected to use plans may I implement? of this section, as reported in the bank’s the community bank leverage ratio (a) * * * Call Report as filed under 12 U.S.C. 161. framework, as set forth under the OCC’s (3) * * * * * * * * Capital Adequacy Standards set forth at (iii) For a qualifying community 12 CFR part 3: banking organization that has elected to PART 32—LENDING LIMITS (i) A qualifying community banking use the community bank leverage ratio organization’s tangible equity capital, as framework, as set forth under the OCC’s ■ 16. The authority citation for part 32 calculated under 12 CFR 3.12(b)(2); plus Capital Adequacy Standards set forth at continues to read as follows: (ii) A qualifying community banking 12 CFR part 3, the term tangible capital, Authority: 12 U.S.C. 1 et seq., 12 U.S.C. organization’s allowances for loan and as it is used in this paragraph (a)(3), 84, 93a, 1462a, 1463, 1464(u), 5412(b)(2)(B), lease losses, or allowance for credit refers to the qualifying community and 15 U.S.C. 1639h. losses, as applicable, as reported in the banking organization’s tangible equity ■ 17. Section 32.2 is amended by national bank’s Call Report; or capital, as calculated under 12 CFR revising paragraph (c) to read as follows: (2) For all other national banks: 3.12(b)(2). (i) A bank’s tier 1 and tier 2 capital * * * * * § 32.2 Definitions. calculated under the OCC’s risk-based * * * * * capital standards set forth in 12 CFR FEDERAL RESERVE SYSTEM (c) Capital and surplus means— part 3, as applicable, as reported in the 12 CFR Chapter II (1) For qualifying community banking bank’s Call Report; plus organizations that have elected to use (ii) The balance of a bank’s Authority and Issuance the community bank leverage ratio allowances for loan and lease losses, or For the reasons set forth in the framework, as set forth under the OCC’s allowance for credit losses, as preamble, chapter II of title 12 of the Capital Adequacy Standards set forth at applicable, not included in the bank’s Code of Federal Regulations is proposed 12 CFR part 3: tier 2 capital, for purposes of the to be amended as set forth below: (i) A qualifying community banking calculation of risk-based capital organization’s tangible equity capital, as described in paragraph (a)(2)(i) of this PART 206—LIMITATIONS ON calculated under 12 CFR 3.12(b)(2); plus section, as reported in the bank’s Call INTERBANK LIABILITIES (ii) A qualifying community banking Report. (REGULATION F) organization’s allowances for loan and lease losses or allowance for credit * * * * * ■ 24. The authority citation for part 206 continues to read as follows: losses, as applicable, as reported in the PART 160—LENDING AND national bank’s or Federal savings INVESTMENT Authority: 12 U.S.C. 371b–2. association’s Call Report; or ■ 25. Section 206.2 is amended by (2) For all other national banks and ■ 20. The authority citation for part 160 revising paragraph (g) to read as follows: Federal savings associations: continues to read as follows: (i) A national bank’s or savings Authority: 12 U.S.C. 1462a, 1463, 1464, § 206.2 Definitions. association’s Tier 1 and Tier 2 capital 1467a, 1701j-3, 1828, 3803, 3806, * * * * * calculated under the risk-based capital 5412(b)(2)(B); 42 U.S.C. 4106. (g) Total capital means the total of a standards applicable to the institution ■ 21. Section 160.3 is amended by bank’s Tier 1 and Tier 2 capital under as reported in the bank’s or savings the risk-based capital guidelines association’s Consolidated Reports of adding the definition of total capital in alphabetical order to read as follows: provided by the bank’s primary federal Condition and Income (Call Report); supervisor. For a qualifying community plus * * * * * banking organization (as defined in 12 (ii) The balance of a national bank’s Total capital means: CFR 217.12) that is subject to the or Federal savings association’s (1) For a qualifying community community bank leverage ratio (as allowances for loan and lease losses not banking organization that has elected to defined in 12 CFR 217.12), total capital included in the bank’s or savings use the community bank leverage ratio means the bank’s CBLR tangible equity association’s Tier 2 capital, for purposes framework, as set forth under the OCC’s (as defined in 12 CFR 217.12). For an of the calculation of risk-based capital Capital Adequacy Standards set forth at insured branch of a foreign bank described in paragraph (c)(2)(i) of this 12 CFR part 3, total capital refers to the organized under the laws of a country section, as reported in the national qualifying community banking that subscribes to the principles of the bank’s or savings association’s Call organization’s tangible equity capital, as Basel Capital Accord, ‘‘total capital’’ Report. calculated under 12 CFR 3.12(b)(2); (2) For all other Federal savings means total Tier 1 and Tier 2 capital as * * * * * associations, total capital means the calculated under the standards of that PART 34—REAL ESTATE LENDING sum of tier 1 capital and tier 2 capital, country. For an insured branch of a AND APPRAISALS as calculated under 12 CFR part 3. foreign bank organized under the laws of a country that does not subscribe to ■ 18. The authority citation for part 34 PART 192—CONVERSIONS FROM the principles of the Basel Capital continues to read as follows: MUTUAL TO STOCK FORM Accord, ‘‘total capital’’ means total Tier 1 and Tier 2 capital as calculated under Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, ■ 22. The authority citation for part 192 the provisions of the Accord. 371, 1462a, 1463, 1464, 1465, 1701j–3, continues to read as follows: 1828(o), 3331 et seq., 5101 et seq., and * * * * * 5412(b)(2)(B) and 15 U.S.C. 1639h. Authority: 12 U.S.C. 1462a, 1463, 1464, ■ 26. Section 206.5 is amended by ■ 1467a, 2901, 5412(b)(2)(B); 15 U.S.C. 78c, 19. Section 34.81 is amended by 78l, 78m, 78n, 78w. adding paragraph (a)(4) to read as revising paragraph (a) to read as follows: follows: ■ 23. Section 192.500 is amended by § 34.81 Definitions. adding paragraph (a)(3)(iii) to read as § 206.5 Capital levels of correspondents. (a) Capital and surplus means: follows: (a) * * *
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(4) Notwithstanding paragraphs (a)(1) (iii) Common Equity Tier 1 Capital capital category in paragraphs through (3) of this section, a qualifying Measure: The common equity tier 1 risk- (b)(1)(i)(A) through (D) of this section. community banking organization (as based capital ratio; and (2)(i) ‘‘Adequately capitalized’’ if: defined in 12 CFR 217.12) that is subject (iv) Leverage Measure: (A) Total Risk-Based Capital Measure: to the community bank leverage ratio (as (A) The leverage ratio; and The bank has a total risk-based capital defined in 12 CFR 217.12), is adequately (B) With respect to an advanced ratio of 8.0 percent or greater; and capitalized if it has a community bank approaches bank, on January 1, 2018, (B) Tier 1 Risk-Based Capital Measure: leverage ratio of 7.5 percent or greater. and thereafter, the supplementary The bank has a tier 1 risk-based capital ratio of 6.0 percent or greater; and * * * * * leverage ratio. (C) With respect to any bank that is a (C) Common Equity Tier 1 Capital PART 208—MEMBERSHIP OF STATE subsidiary (as defined in § 217.2 of Measure: The bank has a common BANKING INSTITUTIONS IN THE Regulation Q (12 CFR 217.2)) of a global equity tier 1 risk-based capital ratio of FEDERAL RESERVE SYSTEM systemically important BHC, on Jan. 1, 4.5 percent or greater; and (REGULATION H) 2018, and thereafter, the supplementary (D) Leverage Measure: leverage ratio. (1) The bank has a leverage ratio of 4.0 ■ 27. The authority citation for part 208 (2) For a qualifying community percent or greater; and is revised to read as follows: banking organization (as defined in 12 (2) With respect to an advanced approaches bank, on January 1, 2018, Authority: 12 U.S.C. 24, 36, 92a, 93a, CFR 217.12), that is subject to the 248(a), 248(c), 321–338a, 371d, 461, 481–486, community bank leverage ratio (as and thereafter, the bank has a 601, 611, 1814, 1816, 1818, 1820(d)(9), defined in 12 CFR 217.12), the supplementary leverage ratio of 3.0 1833(j), 1828(o), 1831, 1831o, 1831p–1, community bank leverage ratio is used percent or greater; and (E) The bank does not meet the 1831r–1, 1831w, 1831x, 1835a, 1882, 2901– to determine the applicable capital 2907, 3105, 3310, 3331–3351, 3905–3909, definition of a ‘‘well capitalized’’ bank. 5371, and 5371 note; 15 U.S.C. 78b, 78I(b), category under paragraphs (b)(1) (ii) A bank that is a qualifying 78l(i), 780–4(c)(5), 78q, 78q–1, and 78w, through (4) of this section. community banking organization (as (b) Capital categories. For purposes of 1681s, 1681w, 6801, and 6805; 31 U.S.C. defined in 12 CFR 217.12) that has section 38 of the FDI Act and this 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106 elected to use the community bank and 4128. subpart, a member bank is deemed to leverage ratio (as defined in 12 CFR ■ 28. Section 208.2 is amended by be: 217.12) and that has a community bank (1)(i) ‘‘Well capitalized’’ if: revising paragraph (d) to read as leverage ratio of 7.5 percent or greater, (A) Total Risk-Based Capital Measure: follows: is considered to have met the The bank has a total risk-based capital requirements for the adequately § 208.2 Definitions. ratio of 10.0 percent or greater; and capitalized capital category in (B) Tier 1 Risk-Based Capital Measure: * * * * * paragraphs (b)(2)(i)(A) through (D) of The bank has a tier 1 risk-based capital (d) Capital stock and surplus means, this section. unless otherwise provided in this part, ratio of 8.0 percent or greater; and (3)(i) ‘‘Undercapitalized’’ if: or by statute, tier 1 and tier 2 capital (C) Common Equity Tier 1 Capital (A) Total Risk-Based Capital Measure: included in a member bank’s risk-based Measure: the bank has a common equity The bank has a total risk-based capital capital (as defined in 12 CFR 217.2 of tier 1 risk-based capital ratio of 6.5 ratio of less than 8.0 percent; or Regulation Q) and the balance of a percent or greater; and (B) Tier 1 Risk-Based Capital Measure: member bank’s allowances for loan and (D) Leverage Measure: The bank has a tier 1 risk-based capital lease losses not included in its tier 2 (1) The bank has a leverage ratio of 5.0 ratio of less than 6.0 percent; or capital for calculation of risk-based percent or greater; and (C) Common Equity Tier 1 Capital capital, based on the bank’s most recent (2) Beginning on Jan. 1, 2018, with Measure: The bank has a common Report of Condition and Income filed respect to any bank that is a subsidiary equity tier 1 risk-based capital ratio of under 12 U.S.C. 324. For a qualifying of a global systemically important BHC less than 4.5 percent; or community banking organization (as under the definition of ‘‘subsidiary’’ in (D) Leverage Measure: defined in 12 CFR 217.12) that is subject § 217.2 of Regulation Q (12 CFR 217.2), (1) The bank has a leverage ratio of to the community bank leverage ratio (as the bank has a supplementary leverage less than 4.0 percent; or defined in 12 CFR 217.12), capital stock ratio of 6.0 percent or greater; and (2) With respect to an advanced and surplus means the bank’s CBLR (E) The bank is not subject to any approaches bank, on January 1, 2018, tangible equity (as defined in 12 CFR written agreement, order, capital and thereafter, the bank has a 217.12) plus allowances for loan and directive, or prompt corrective action supplementary leverage ratio of less lease losses (as defined in 12 CFR directive issued by the Board pursuant than 3.0 percent. 217.2). to section 8 of the FDI Act, the (ii) A bank that is a qualifying International Lending Supervision Act community banking organization (as * * * * * of 1983 (12 U.S.C. 3907), or section 38 ■ 29. Section 208.43 is amended by defined in 12 CFR 217.12) that has of the FDI Act, or any regulation revising paragraphs (a) and (b) to read elected to use the community bank thereunder, to meet and maintain a as follows: leverage ratio (as defined in 12 CFR specific capital level for any capital 217.12) and that has a community bank § 208.43 Capital measures and capital measure. leverage ratio of less than 7.5 percent, is category definitions. (ii) A bank that is a qualifying considered to have met the (a) Capital measures. (1) For purposes community banking organization (as requirements for the undercapitalized of section 38 of the FDI Act and this defined in 12 CFR 217.12) that has capital category in paragraphs subpart, the relevant capital measures elected to use the community bank (b)(3)(i)(A) through (D) of this section. are: leverage ratio (as defined in 12 CFR (4)(i) ‘‘Significantly undercapitalized’’ (i) Total Risk-Based Capital Measure: 217.12) and that has a community bank if: The total risk-based capital ratio; leverage ratio greater than 9 percent, is (A) Total Risk-Based Capital Measure: (ii) Tier 1 Risk-Based Capital Measure: considered to have met the capital ratio The bank has a total risk-based capital The tier 1 risk-based capital ratio; requirements for the well capitalized ratio of less than 6.0 percent; or
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(B) Tier 1 Risk-Based Capital Measure: § 211.2 Definitions. required is total and tier 1 capital ratios The bank has a tier 1 risk-based capital * * * * * of 8 percent and 4 percent, respectively. ratio of less than 4.0 percent; or (b) Capital rule means 12 CFR part * * * * * (C) Common Equity Tier 1 Capital 217. Measure: The bank has a common (c) Capital and surplus means, unless PART 215—LOANS TO EXECUTIVE equity tier 1 risk-based capital ratio of otherwise provided in this part: (1) For OFFICERS, DIRECTORS, AND less than 3.0 percent; or organizations subject to the capital rule PRINCIPAL SHAREHOLDERS OF (D) Leverage Measure: The bank has a (other than qualifying community MEMBER BANKS (REGULATION O) leverage ratio of less than 3.0 percent. banking organizations (as defined in 12 (ii) A bank that is a qualifying ■ CFR 217.12) that are subject to the 35. The authority citation for part 215 community banking organization (as continues to read as follows: defined in 12 CFR 217.12) that has community bank leverage ratio (as Authority: 12 U.S.C. 248(a), 375a(10), elected to use the community bank defined in 12 CFR 217.12)): (i) Tier 1 and tier 2 capital included 375b(9) and (10), 1468, 1817(k), 5412; and leverage ratio (as defined in 12 CFR Pub. L. 102–242, 105 Stat. 2236 (1991). 217.12) and that has a community bank in an organization’s risk-based capital ■ leverage ratio of less than 6 percent, is ratios (under the capital rule); and 36. Section 215.2 is amended by considered to have met the (ii) The balance of allowances for loan revising paragraphs (i)(1) and (i)(2) and requirements for the significantly and lease losses not included in an adding paragraph (i)(3) to read as undercapitalized capital category in organization’s tier 2 capital for follows: paragraphs (b)(4)(i)(A) through (D) of calculation of risk-based capital ratios, § 215.2 Definitions. this section. based on the organization’s most recent (5) ‘‘Critically undercapitalized’’ if the consolidated Report of Condition and * * * * * bank has a ratio of tangible equity, as Income. (i) * * * defined in § 208.41, to total assets that (2) For qualifying community banking (1) The bank’s Tier 1 and Tier 2 is equal to or less than 2.0 percent. organizations (as defined in 12 CFR capital included in the bank’s risk-based * * * * * 217.12) that are subject to the capital under the capital guidelines of ■ 30. Section 208.73 is amended by community bank leverage ratio (as the appropriate Federal banking agency, removing paragraph (a), redesignating defined in 12 CFR 217.12), CBLR based on the bank’s most recent paragraphs (b) through (f) as paragraphs tangible equity (as defined in 12 CFR consolidated report of condition filed (a) through (e), respectively, and 217.12) plus allowances for loan and under 12 U.S.C. 1817(a)(3); and revising newly redesignated paragraph lease losses (as defined in 12 CFR (2) The balance of the bank’s (a) to read as follows: 217.2). allowances for loan and lease losses not (3) For all other organizations, paid-in § 208.73 What additional provisions are included in the bank’s Tier 2 capital for applicable to state member banks with and unimpaired capital and surplus, purposes of the calculation of risk-based financial subsidiaries? and includes undivided profits but does capital by the appropriate Federal (a) Capital requirements for state not include the proceeds of capital notes banking agency, based on the bank’s member banks. A state member bank or debentures. most recent consolidated report of other than a qualifying community * * * * * condition filed under 12 U.S.C. banking organization (as defined in 12 (x) Tier 1 capital has the same 1817(a)(3). CFR 217.12) that is subject to the meaning as provided under 12 CFR part (3) Notwithstanding paragraphs (i)(1) community bank leverage ratio (as 217, except that for a qualifying through (2) of this section, for a member defined in 12 CFR 217.12) that controls community banking organization (as bank that is a qualifying community or holds an interest in a financial defined in 12 CFR 217.12) that is subject banking organization (as defined in 12 subsidiary must comply with the rules to the community bank leverage ratio (as CFR 217.12) that is subject to the set forth in § 217.22(a)(7) of Regulation defined in 12 CFR 217.12), tier 1 capital community bank leverage ratio (as Q (12 CFR 217.22(a)(7)) in determining means CBLR tangible equity (as defined defined in 12 CFR 217.12), unimpaired its compliance with applicable in 12 CFR 217.12). capital and unimpaired surplus equals regulatory capital standards (including * * * * * CBLR tangible equity (as defined in 12 the well capitalized standard of ■ 34. Section 211.9 is amended by CFR 217.12) plus allowances for loan § 208.71(a)(1)). redesignating footnote 5 to paragraph (a) and lease losses (as defined in 12 CFR * * * * * as footnote 1 to paragraph (a) 217.2). andrevising paragraph (a)(1) to read as * * * * * PART 211—INTERNATIONAL follows: BANKING OPERATIONS PART 217—CAPITAL ADEQUACY OF (REGULATION K) § 211.9 Investment procedures. BANKING HOLDING COMPANIES, ■ 31. The authority citation for part 211 (a) * * * SAVINGS AND LOAN HOLDING continues to read as follows: (1) Minimum capital adequacy COMPANIES, AND STATE MEMBER standards. Except as the Board may BANKS (REGULATION Q) Authority: 12 U.S.C. 221 et seq., 1818, otherwise determine, in order for an 1835a, 1841 et seq., 3101 et seq., 3901 et seq., ■ 37. The authority citation for part 217 and 5101 et seq.; 15 U.S.C. 1681s, 1681w, investor to make investments pursuant 6801 and 6805. to the procedures set out in this section, is revised to read as follows: ■ 32. In part 211, remove the words the investor, the bank holding company, Authority: 12 U.S.C. 248(a), 321–338a, ‘‘Capital Adequacy Guidelines’’ and the member bank shall be in 481–486, 1462a, 1467a, 1818, 1828, 1831n, wherever they appear and add in their compliance with applicable minimum 1831o, 1831p–l, 1831w, 1835, 1844(b), 1851, place the words ‘‘capital rule’’. standards for capital adequacy set out in 3904, 3906–3909, 4808, 5365, 5368, 5371, ■ 33. Section 211.2 is amended by the capital rule; provided that, if the and 5371 note. revising paragraphs (b), (c), and (x) to investor is an Edge or agreement ■ 38. Section 217.10 is amended by read as follows: corporation, the minimum capital revising paragraph (a) to read as follows:
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§ 217.10 Minimum capital requirements. each as of the end of the most recent framework by completing the (a) Minimum capital requirements. (1) calendar quarter: community bank leverage ratio A Board-regulated institution must (A) The unused portion of reporting schedule in its Call Report or maintain the following minimum commitments (except for Form FR Y–9C, as applicable. capital ratios: unconditionally cancellable (iv)(A) A qualifying community (i) A common equity tier 1 capital commitments); banking organization that has elected to ratio of 4.5 percent. (B) Self-liquidating, trade-related use the community bank leverage ratio (ii) A tier 1 capital ratio of 6 percent. contingent items that arise from the may opt out of using the community (iii) A total capital ratio of 8 percent. movement of goods; bank leverage ratio by completing (iv) A leverage ratio of 4 percent. (C) Transaction-related contingent Schedule RC–R in its Call Report or (v) For advanced approaches Board- items, including performance bonds, bid Schedule HC–R of Form FR Y–9C, as regulated institutions, a supplementary bonds, warranties, and performance applicable, or by otherwise providing leverage ratio of 3 percent. standby letters of credit; the information required in Schedule (2) A qualifying community banking (D) Sold credit protection through RC–R or Schedule HC–R, as applicable, organization (as defined in 12 CFR guarantees and credit derivatives; to the Board. 217.12), that is subject to the (E) Credit-enhancing representations (B) A qualifying community banking community bank leverage ratio (as and warranties; organization that opts out of using the defined in 12 CFR 217.12), is considered (F) Securities lent and borrowed, community bank leverage ratio pursuant to have met the minimum capital calculated in accordance with the to paragraph (a)(3)(iv)(A) of this section requirements in this paragraph (a) only reporting instructions to Schedule RC– must comply with § 217.10 if the qualifying community banking L of the Call Report or Schedule HC–L immediately. organization has a community bank of Form FR Y–9C, as applicable; (b) Calculation of the community leverage ratio of at least 7.5 percent or (G) Financial standby letters of credit; bank leverage ratio. (1) A qualifying more. (H) Forward agreements that are not community banking organization’s * * * * * derivative contracts; and community bank leverage ratio is the ■ 39. Section 217.12 is added as to read (I) Off-balance sheet securitization ratio of the banking organization’s CBLR as follows: exposures; tangible equity, as defined in paragraph (iii) Has total trading assets and (b)(2) of this section, to its average total § 217.12 Community bank leverage ratio. trading liabilities, calculated in consolidated assets, as defined in (a) Community bank leverage ratio accordance with the reporting paragraph (b)(3) of this section. framework. (1) Notwithstanding any instructions to Schedule RC of the Call (2) CBLR tangible equity means total other provision in this part, a qualifying Report or Schedule HC of Form FR Y– bank equity capital, calculated in community banking organization that 9C, as applicable, of 5 percent or less of accordance with the reporting has made an election to use the the Board-regulated institution’s total instructions to Schedule RC of the Call community bank leverage ratio consolidated assets, each as of the end Report or Schedule HC of Form FR Y– framework under paragraph (a)(3) of this of the most recent calendar quarter; 9C, as applicable, before the inclusion of section shall be considered to have met (iv) Has mortgage servicing assets, noncontrolling (minority) interests in the minimum capital requirements calculated in accordance with the consolidated subsidiaries, as of the end under § 217.10, the capital ratio reporting instructions to Schedule RC– of the most recent calendar quarter less requirements for the well capitalized M of the Call Report or Schedule HC– the following (each as of the end of the capital category under 12 CFR M of Form FR Y–9C, as applicable, of most recent calendar quarter): 208.43(b)(1), and any other capital or 25 percent or less of the Board-regulated (i) Accumulated other comprehensive leverage requirements to which the institution’s CBLR tangible equity, each income calculated in accordance with qualifying community banking as of the end of the most recent calendar the reporting instructions to Schedule organization is subject, if it has a quarter; and RC of the Call Report or Schedule HC community bank leverage ratio greater (v) Has DTAs arising from temporary of Form FR Y–9C, as applicable; than 9 percent. differences that the Board-regulated (ii) Intangible Assets, calculated in (2) For purposes of this section, a institution could not realize through net accordance with the reporting qualifying community banking operating loss carrybacks, net of any instructions to Schedule RC of the Call organization means a Board-regulated related valuation allowances, of 25 Report or Schedule HC of Form FR Y– institution that is not an advanced percent or less of the Board-regulated 9C, as applicable, other than mortgage approaches Board-regulated institution institution’s CBLR tangible equity, each servicing assets; and and that satisfies all of the following as of the end of the most recent calendar (iii) Deferred tax assets (DTAs) that criteria: quarter. arise from net operating loss and tax (i) Has total consolidated assets of less (3)(i) A qualifying community credit carryforwards net of any related than $10 billion, calculated in banking organization may elect to use valuation allowances. accordance with the reporting the community bank leverage ratio (3) Average total consolidated assets instructions to Schedule RC of the Call framework if it makes an opt-in election means total assets calculated in Report or Schedule HC of Form FR Y– under this paragraph (a)(3). accordance with the reporting 9C, as applicable, as of the end of the (ii) A qualifying community banking instructions to Schedule RC–K of the most recent calendar quarter; organization may elect to use the Call Report or Schedule HC–K of Form (ii) Has off-balance sheet exposures of community bank leverage ratio FR Y–9C, as applicable, as of the end of 25 percent or less of its total framework only if it has a community the most recent calendar quarter less the consolidated assets as of the end of the bank leverage ratio that exceeds 9 amounts deducted from CBLR tangible most recent calendar quarter, calculated percent at the time of the election. equity under paragraphs (b)(2)(ii) and as the sum of the notional amounts of (iii) For purposes of this paragraph (iii) of this section. the exposures listed in paragraphs (a)(3), a qualifying community banking (c) Treatment when ceasing to be a (a)(2)(ii)(A) through (I) of this section, organization makes an election to use qualifying community banking divided by total consolidated assets, the community bank leverage ratio organization requirements. (1) Except as
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provided in paragraph (c)(4) of this PART 223—TRANSACTIONS average total consolidated assets (as section, if an Board-regulated institution BETWEEN MEMBER BANKS AND defined in 12 CFR 217.12). ceases to meet the definition of a THEIR AFFILIATES (REGULATION W) * * * * * qualifying community banking ■ (r) * * * organization, the Board-regulated 40. The authority citation for part 223 (4) Notwithstanding paragraphs (r)(1) institution has two reporting periods continues to read as follows: through (3) of this section: (grace period) to either satisfy the Authority: 12 U.S.C. 371c(b)(1)(E), (i) A bank holding company that is a requirements to be a qualifying (b)(2)(A), and (f), 371c–1(e), 1828(j), 1468(a), qualifying community banking community banking organization or to and section 312(b)(2)(A) of the Dodd-Frank organization (as defined in 12 CFR comply with§ 217.10and report the Wall Street Reform and Consumer Protection 217.12) that is subject to the community required capital measures under Act (12 U.S.C. 5412). bank leverage ratio (as defined in 12 ■ 41. Section 223.3 is amended by § 217.10 on its Call Report or Form FR CFR 217.12), is well capitalized if: adding paragraph (d)(4) to read as Y–9C, as applicable. (A) It has a community bank leverage follows: (2) The grace period begins as of the ratio greater than 9.0 percent; and end of the calendar quarter in which the § 223.3 What are the meanings of the other (B) It satisfies the requirements of Board-regulated institution ceases to terms used in sections 23A and 23B and paragraph (r)(1)(iii) of this section. satisfy the criteria to be a qualifying this part? (ii) A depository institution that is a qualifying community banking community banking organization * * * * * organization (as defined in 12 CFR provided in paragraph (a)(2) of this (d) * * * section. The grace period ends on the (4) Notwithstanding paragraphs (d)(1) 217.12) that is subject to the community bank leverage ratio (as defined in 12 last day of the second consecutive through (3) of this section, for a CFR 217.12) is well capitalized if it has calendar quarter following the qualifying community banking a community bank leverage ratio greater beginning of the grace period. organization (as defined in 12 CFR than 9.0 percent. (3) During the grace period, the Board- 217.12) that is subject to the community regulated institution continues to be a bank leverage ratio (as defined in 12 * * * * * ■ qualifying community banking CFR 217.12), capital stock and surplus 44. Section 225.14 is amended by: ■ a. Redesignating footnote 3 to organization for purposes of this part equals CBLR tangible equity (as defined paragraph (a)(1)(ii) as footnote 1 to and must continue calculating and in 12 CFR 217.12) plus allowances for paragraph (a)(1)(ii); reporting its community bank leverage loan and lease losses (as defined in 12 ■ b. Revising paragraphs (a)(1)(v)(A) and ratio unless the Board-regulated CFR 217.2). (vii), and . (c)(6)(i); and institution has opted out of using the * * * * * ■ c. Adding paragraphs (c)(6)(iii; and (f). community bank leverage ratio under The revisions and additions read as paragraph (a)(3). PART 225—BANK HOLDING follows: (4) Notwithstanding paragraphs (c)(1) COMPANIES AND CHANGE IN BANK through (3), an Board-regulated CONTROL (REGULATION Y) § 225.14 Expedited action for certain bank institution that no longer meets the acquisitions by well-run bank holding ■ definition of a qualifying community 42. The authority citation for part 225 companies. banking organization as a result of a continues to read as follows: (a) * * * merger or acquisition has no grace Authority: 12 U.S.C. 1817(j)(13), 1818, (1) * * * period and immediately ceases to be a 1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b), (v) (A) If the bank holding company qualifying community banking 1972(1), 3106, 3108, 3310, 3331–3351, 3906, is not a qualifying community banking organization. Such an Board-regulated 3907, and 3909; 15 U.S.C. 1681s, 1681w, organization (as defined in 12 CFR 6801 and 6805. institution comply with § 217.10 and 217.12) that is subject to the community ■ 43. Section 225.2 is amended by by bank leverage ratio (as defined in 12 must report the required capital revising paragraph (h), redesignating measures under § 217.10 on its next Call CFR 217.12), and: footnote 2 to paragraph (r)(1) as footnote (1) If the bank holding company has Report or Form FR Y–9C. 1 to paragraph (r)(1), and adding consolidated assets of $3 billion or (d) Tangible equity information. (1) A paragraph (r)(4) to read as follows: more, an abbreviated consolidated pro qualifying community banking forma balance sheet as of the most organization that has elected to use the § 225.2 Definitions. recent quarter showing credit and debit community bank leverage ratio under * * * * * adjustments that reflect the proposed this section and has a community bank (h) Lead insured depository transaction, consolidated pro forma leverage ratio that falls below 6 percent, institution means the largest insured risk-based capital ratios for the must promptly provide to the Board the depository institution controlled by the acquiring bank holding company as of information necessary for the bank holding company as of the quarter the most recent quarter, and a calculation of its tangible equity, as ending immediately prior to the description of the purchase price and defined under section 12 CFR 208.41, proposed filing, based on a comparison the terms and sources of funding for the for purposes of determining the capital of the average total risk-weighted assets transaction; or category of the banking organization controlled during the previous 12- (2) If the bank holding company has under 12 CFR 208.43. month period be each insured consolidated assets of less than $3 (2) Notwithstanding paragraph (d)(1) depository institution subsidiary of the billion, a pro forma parent-only balance of this section, upon request by the holding company. For purposes of this sheet as of the most recent quarter Board, a qualifying community banking paragraph, for a qualifying community showing credit and debit adjustments organization must provide the banking organization (as defined in 12 that reflect the proposed transaction, information necessary for the CFR 217.12) that is subject to the and a description of the purchase price, calculation of its tangible equity, as community bank leverage ratio (as the terms and sources of funding for the defined under 12 CFR 208.41, to the defined in 12 CFR 217.12), average total transaction, and the sources and Board. risk-weighted assets equal the qualifying schedule for retiring any debt incurred * * * * * community banking organization’s in the transaction;
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(B) If the bank holding company is a and (B) of this section shall not apply ■ a .Redesignating footnote 2 to qualifying community banking if: paragraph (a)(1) as footnote 1 to organization (as defined in 12 CFR (A) The acquiring bank holding paragraph (a)(1); 217.12) that is subject to the community company is a qualifying community ■ b. Revising paragraphs (a)(1)(iii) and bank leverage ratio (as defined in 12 banking organization (as defined in 12 (c)(5)(i); and CFR 217.12), an abbreviated CFR 217.12) that is subject to the ■ c. Adding paragraphs (c)(5)(iii) and consolidated pro forma balance sheet as community bank leverage ratio (as (e). of the most recent quarter showing defined in 12 CFR 217.12); The revisions and additions read as credit and debit adjustments that reflect (B) The sum of the total assets to be follows: the proposed transaction, consolidated acquired in the proposal and the total pro forma community bank leverage assets acquired by the acquiring bank § 225.23 Expedited action for certain ratio for the acquiring bank holding holding company in all other qualifying nonbanking proposals by well-run bank company as of the most recent quarter, transactions does not exceed 35 percent holding companies. and a description of the purchase price of the average total consolidated assets (a) * * * and the terms and sources of funding for (as defined in 12 CFR 217.12) of the (1) * * * the transaction; acquiring bank holding company as last (iii) If the proposal involves an * * * * * reported to the Board. For purposes of acquisition of a going concern: (vii)(A) For each insured depository this paragraph other qualifying (A) If the acquiring bank holding institution (that is not a qualifying transactions means any transaction company is not a qualifying community community banking organization (as approved under this section or § 225.23 banking organization (as defined in 12 defined in 12 CFR 217.12) that is subject during the 12 months prior to filing the CFR 217.12) that is subject to the to the community bank leverage ratio (as notice under this section; and community bank leverage ratio (as defined in 12 CFR 217.12)) whose Tier (C) The total assets to be acquired do defined in 12 CFR 217.12): 1 capital, total capital, total assets or not exceed $7.5 billion; (1) If the bank holding company has risk-weighted assets change as a result * * * * * consolidated assets of $3 billion or of the transaction, the total risk- (f) Qualifying community banking more, an abbreviated consolidated pro weighted assets, total assets, Tier 1 organizations. For purposes of this forma balance sheet for the acquiring capital and total capital of the section, a qualifying community bank holding company as of the most institution on a pro forma basis; and banking organization (as defined in 12 recent quarter showing credit and debit (B) For each insured depository CFR 217.12) that is subject to the adjustments that reflect the proposed institution that is a qualifying community bank leverage ratio (as transaction, consolidated pro forma risk- community banking organization (as defined in 12 CFR 217.12) controls total based capital ratios for the acquiring defined in 12 CFR 217.12) that is subject risk-weighted assets equal to the bank holding company as of the most to the community bank leverage ratio (as qualifying community banking recent quarter, a description of the defined in 12 CFR 217.12), whose CBLR organization’s average total consolidated purchase price and the terms and tangible equity (as defined in 12 CFR assets (as defined in 12 CFR 217.12) as sources of funding for the transaction, 217.12) or total assets change as a result last reported to its primary banking and the total revenue and net income of of the transaction, the total assets, and supervisor. the company to be acquired; or ■ CBLR tangible equity of the institution 45. Section 225.22 is amended by (2) If the bank holding company has on a pro forma basis; and adding paragraph (d)(8)(vi) to read as consolidated assets of less than $3 follows: * * * * * billion, a pro forma parent-only balance (c) * * * § 225.22 Exempt nonbanking activities and sheet as of the most recent quarter (6) * * * acquisitions. showing credit and debit adjustments (i) * * * * * * * * that reflect the proposed transaction, a (A) Limited Growth. Except as (d) * * * description of the purchase price and provided in paragraphs (c)(6)(ii) and (iii) (8) * * * the terms and sources of funding for the of this section, the sum of the aggregate (vi) Qualifying community banking transaction and the sources and risk-weighted assets to be acquired in organizations. For purposes of schedule for retiring any debt incurred the proposal and the aggregate risk- paragraph (d)(8)(ii) of this section, a in the transaction, and the total assets, weighted assets acquired by the lending company or industrial bank that off-balance sheet items, revenue and net acquiring bank holding company in all is a qualifying community banking income of the company to be acquired; other qualifying transactions does not organization (as defined in 12 CFR (B) If the acquiring bank holding exceed 35 percent of the consolidated 217.12) that is subject to the community company is a qualifying community risk-weighted assets of the acquiring bank leverage ratio (as defined in 12 banking organization (as defined in 12 bank holding company. For purposes of CFR 217.12), or is a subsidiary of such CFR 217.12) that is subject to the this paragraph other qualifying a qualifying community banking community bank leverage ratio (as transactions means any transaction organization, has risk-weighted assets defined in 12 CFR 217.12), an approved under this section or § 225.23 equal to: abbreviated consolidated pro forma during the 12 months prior to filing the (A) Its average total consolidated balance sheet for the acquiring bank notice under this section; and assets (as defined in 12 CFR 217.12) as holding company as of the most recent (B) Individual size limitation. Except most recently reported to its primary quarter showing credit and debit as provided in paragraph (c)(6)(iii) of banking supervisor (as defined in adjustments that reflect the proposed this section, the total risk-weighted § 225.14(d)(5)); or transaction, consolidated pro forma assets to be acquired do not exceed $7.5 (B) Its total assets, if the company or community bank leverage ratio for the billion; industrial bank does not report such acquiring bank holding company as of * * * * * average total consolidated assets. the most recent quarter, a description of (iii) Qualifying community banking * * * * * the purchase price and the terms and organizations. Paragraphs (c)(6)(i)(A) ■ 46. Section 225.23 is amended by: sources of funding for the transaction,
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and the total revenue and net income of (B) The sum of the total assets to be capital and total capital of the the company to be acquired; acquired in the proposal and the total institution on a pro forma basis; and (C) For each insured depository assets acquired by the acquiring bank (B) For each insured depository institution (that is not a qualifying holding company in all other qualifying institution that is a qualifying community banking organization (as transactions does not exceed 35 percent community banking organization (as defined in 12 CFR 217.12) that is subject of the average total consolidated assets defined in 12 CFR 217.12) that is subject to the community bank leverage ratio (as (as defined in 12 CFR 217.12) of the to the community bank leverage ratio (as defined in 12 CFR 217.12)) whose Tier acquiring bank holding company as last defined in 12 CFR 217.12), whose CBLR 1 capital, total capital, total assets or reported to the Board. For purposes of tangible equity (as defined in 12 CFR risk-weighted assets change as a result this paragraph ‘‘other qualifying 217.12) or total assets change as a result of the transaction, the total risk- transactions’’ means any transaction of the transaction, the total assets and weighted assets, total assets, Tier 1 approved under this section or § 225.14 CBLR tangible equity of the institution capital and total capital of the during the 12 months prior to filing the on a pro forma basis; institution on a pro forma basis; and notice under this section; (D) For each insured depository (C) The gross consideration to be paid * * * * * institution that is a qualifying by the acquiring bank holding company ■ 48. Section 225.87 is amended by community banking organization (as in the proposal does not exceed 15 adding paragraph (b)(4)(iv) to read as defined in 12 CFR 217.12) that is subject percent of the CBLR tangible equity (as follows: to the community bank leverage ratio (as defined in 12 CFR 217.12) of the § 225.87 Is notice to the Board required defined in 12 CFR 217.12), whose CBLR acquiring bank holding company; and after engaging in a financial activity? tangible equity (as defined in 12 CFR (D) The total assets to be acquired do 217.12) or total assets change as a result not exceed $7.5 billion; * * * * * of the transaction, the total assets and * * * * * (b) * * * CBLR tangible equity of the institution (e) Qualifying community banking (4) * * * on a pro forma basis; organizations. For purposes of this (iv) For purposes of paragraph (b)(4) * * * * * section, a qualifying community of this section, a financial holding (c) * * * banking organization (as defined in 12 company that is a qualifying community (5) * * * CFR 217.12) that is subject to the banking organization (as defined in 12 (i) In general— community bank leverage ratio (as CFR 217.12) that is subject to the (A) Limited growth. Except as defined in 12 CFR 217.12) controls total community bank leverage ratio (as provided in paragraphs (c)(5)(ii) and (iii) risk-weighted assets equal to the defined in 12 CFR 217.12) has Tier 1 of this section, the sum of aggregate risk- qualifying community banking capital equal to its CBLR tangible equity weighted assets to be acquired in the organization’s average total consolidated (as defined in 12 CFR 217.12). proposal and the aggregate risk- assets (as defined in 12 CFR 217.12) as ■ weighted assets acquired by the 49. Section 225.174 is amended by last reported to its primary banking adding paragraph (d) to read as follows: acquiring bank holding company in all supervisor. other qualifying transactions does not ■ 47. Section 225.24 is amended § 225.174 What aggregate thresholds exceed 35 percent of the consolidated byrevising paragraphs (a)(2)(iv)(B) and apply to merchant banking investments? risk-weighted assets of the acquiring (a)(2)(vi) to read as follows: * * * * * bank holding company. For purposes of this paragraph, ‘‘other qualifying § 225.24 Procedures for other nonbanking (d) Qualifying community banking transactions’’ means any transaction proposals. organizations. For purposes of this approved under this section or § 225.14 (a) * * * section, a financial holding company during the 12 months prior to filing the (2) * * * that is a qualifying community banking notice under this section; (iv) * * * organization (as defined in 12 CFR (B) Consideration paid. Except as (B) Consolidated pro forma risk-based 217.12) that is subject to the community provided in paragraph (c)(5)(iii) of this capital and leverage ratio calculations bank leverage ratio (as defined in 12 section, the gross consideration to be for the acquiring bank holding company CFR 217.12) has Tier 1 capital equal to paid by the acquiring bank holding as of the most recent quarter (or, in the its CBLR tangible equity (as defined in company in the proposal does not case of a qualifying community banking 12 CFR 217.12). exceed 15 percent of the consolidated organization (as defined in 12 CFR ■ 50. Section 225.175 is amended by Tier 1 capital of the acquiring bank 217.12) that is subject to the community adding paragraph (c)(3) to read as holding company; and bank leverage ratio (as defined in 12 follows: (C) Individual size limitation. Except CFR 217.12), consolidated pro forma as provided in paragraph (c)(5)(iii) of community bank leverage ratio § 225.175 What risk management, record calculations for the acquiring bank keeping and reporting policies are required this section, the total risk-weighted to make merchant banking investments? assets to be acquired do not exceed $7.5 holding company as of the most recent billion; quarter); and * * * * * * * * * * * * * * * (c) * * * (iii) Qualifying community banking (vi) (A) For each insured depository (3) Qualifying community banking organizations. Paragraphs (c)(5)(i)(A), institution (that is not a qualifying organizations. For purposes of this (B), and (C) of this section shall not community banking organization (as paragraph (c), a financial holding apply if: defined in 12 CFR 217.12) that is subject company that is a qualifying community (A) The acquiring bank holding to the community bank leverage ratio (as banking organization (as defined in 12 company is a qualifying community defined in 12 CFR 217.12)) whose Tier CFR 217.12) that is subject to the banking organization (as defined in 12 1 capital, total capital, total assets or community bank leverage ratio (as CFR 217.12) that is subject to the risk-weighted assets change as a result defined in 12 CFR 217.12) has Tier 1 community bank leverage ratio (as of the transaction, the total risk- capital equal to its CBLR tangible equity defined in 12 CFR 217.12); and weighted assets, total assets, Tier 1 (as defined in 12 CFR 217.12).
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PART 238—SAVINGS AND LOAN § 251.3 Concentration limit. means the FDIC-supervised institution’s HOLDING COMPANIES (REGULATION * * * * * CBLR tangible equity (as defined in 12 LL) (c) * * * CFR 324.12). (2) U.S. company not subject to ■ * * * * * 51. The authority citation for part 238 applicable risk-based capital rules. For continues to read as follows: a U.S. company that is not subject to PART 324—Capital Adequacy of FDIC- Authority: 5 U.S.C. 552, 559; 12 U.S.C. applicable risk-based capital rules (other Supervised Institutions 1462, 1462a, 1463, 1464, 1467, 1467a, 1468, than a qualifying community banking ■ 57. The authority citation for part 324 1813, 1817, 1829e, 1831i, 1972; 15 U.S.C. 78l. organization (as defined in 12 CFR continues to read as follows: ■ 52. Section 238.53 is amended by 217.12) that is subject to the community revising paragraphs (c)(2)(iii)(B) and (v) bank leverage ratio (as defined in 12 Authority: 12 U.S.C. 1815(a), 1815(b), to read as follows: CFR 217.12)), consolidated liabilities are 1816, 1818(a), 1818(b), 1818(c), 1818(t), equal to the total liabilities of such 1819(Tenth), 1828(c), 1828(d), 1828(i), § 238.53 Prescribed services and activities company on a consolidated basis, as 1828(n), 1828(o), 1831o, 1835, 3907, 3909, of savings and loan holding companies. 4808; 5371; 5412; Pub.L. 102–233, 105 Stat. determined under applicable accounting 1761, 1789, 1790 (12 U.S.C. 1831n note); * * * * * standards. Pub.L. 102–242, 105 Stat. 2236, 2355, as (c) * * * (3) Qualifying community banking amended by Pub.L. 103–325, 108 Stat. 2160, (2) * * * organizations. For a U.S. company that 2233 (12 U.S.C. 1828 note); Pub.L. 102–242, (iii) * * * is a qualifying community banking 105 Stat. 2236, 2386, as amended by Pub.L. (B) Consolidated pro forma risk-based organization (as defined in 12 CFR 102–550, 106 Stat. 3672, 4089 (12 U.S.C. capital and leverage ratio calculations 217.12) that is subject to the community 1828 note); Pub.L. 111–203, 124 Stat. 1376, for the acquiring savings and loan bank leverage ratio (as defined in 12 1887 (15 U.S.C. 78o–7 note); Pub. L. 115–174 holding company as of the most recent CFR 217.12), consolidated liabilities are § 201. quarter (or, in the case of a qualifying equal to: ■ 58. Section 324.10 is amended by community banking organization (as (i) Average total consolidated assets revising paragraph (a) to read as follows: defined in 12 CFR 217.12) that is subject (as defined in 12 CFR 217.12) of the § 324.10 Minimum capital requirements. to the community bank leverage ratio (as company as last reported on the defined in 12 CFR 217.12), consolidated qualifying community banking (a) Minimum capital requirements. (1) pro forma community bank leverage organization’s applicable regulatory An FDIC-supervised institution must ratio calculations for the acquiring filing with the qualifying community maintain the following minimum savings and loan holding company as of banking organization’s appropriate capital ratios: the most recent quarter); and Federal banking agency; minus (i) A common equity tier 1 capital * * * * * (ii) The company’s CBLR tangible ratio of 4.5 percent. (ii) A tier 1 capital ratio of 6 percent. (v) (A) For each insured depository equity (as defined in 12 CFR 217.12). (iii) A total capital ratio of 8 percent. institution (that is not a qualifying * * * * * (iv) A leverage ratio of 4 percent. community banking organization (as FEDERAL DEPOSIT INSURANCE (v) For advanced approaches FDIC- defined in 12 CFR 217.12) that is subject CORPORATION supervised institutions, a to the community bank leverage ratio (as supplementary leverage ratio of 3 defined in 12 CFR 217.12)) whose Tier 12 CFR Chapter III percent. 1 capital, total capital, total assets or Authority and Issuance (vi) For state savings associations, a risk-weighted assets change as a result For the reasons stated in the tangible capital ratio of 1.5 percent. of the transaction, the total risk- (2) A qualifying community banking preamble, the Federal Deposit Insurance weighted assets, total assets, Tier 1 organization (as defined in 12 CFR Corporation proposes to amend chapter capital and total capital of the 324.12), that is subject to the III of Title 12, Code of Federal institution on a pro forma basis; and community bank leverage ratio (as Regulations as follows: (B) For each insured depository defined in 12 CFR 324.12), is considered institution that is a qualifying PART 303—Filing Procedures to have met the minimum capital community banking organization (as requirements in this paragraph (a) only defined in 12 CFR 217.12) that is subject ■ 55. The authority citation for part 303 if the qualifying community banking to the community bank leverage ratio (as continues to read as follows: organization has a community bank defined in 12 CFR 217.12), whose CBLR Authority: 12 U.S.C. 378, 1464, 1813, leverage ratio of at least 7.5 percent or tangible equity (as defined in 12 CFR 1815, 1817, 1818, 1819(a) (Seventh and more. 217.12) or total assets change as a result Tenth), 1820, 1823, 1828, 1831a, 1831e, * * * * * of the transaction, the total assets and 1831o, 1831p–1, 1831w, 1835a, 1843(l), 3104, ■ 59. Section 324.12 is added to read as CBLR tangible equity of the institution 3105, 3108, 3207, 5414; 15 U.S.C. 1601–1607. follows: on a pro forma basis; ■ 56. Section 303.2 is amended by * * * * * revising paragraph (ee) to read as § 324.12 Community bank leverage ratio. follows: (a) Community bank leverage ratio PART 251—CONCENTRATION LIMIT framework. (1) Notwithstanding any (REGULATION XX) § 303.2 Definitions. other provision in this part, a qualifying ■ 53. The authority citation for part 251 * * * * * community banking organization that continues to read as follows: (ee) Tier 1 capital shall have the same has made an election to use the meaning as provided in § 324.2 of this community bank leverage ratio Authority: 12 U.S.C. 1818, 1844(b), 1852, chapter. For a qualifying community framework under paragraph (a)(3) of this 3101 et seq. banking organization (as defined in 12 section shall be considered to have met ■ 54. Section 251.3 is amended by CFR 324.12) that is subject to the the minimum capital requirements revising paragraph (c)(2) and adding community bank leverage ratio (as under § 324.10, the capital ratio paragraph (c)(3) to read as follows: defined in 12 CFR 324.12), Tier 1 capital requirements for the well capitalized
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capital category under (v) Has DTAs arising from temporary (iii) Deferred tax assets (DTAs) that § 324.403(b)(1)(i)(A) through (D) of this differences that the FDIC-supervised arise from net operating loss and tax part, and any other capital or leverage institution could not realize through net credit carryforwards net of any related requirements to which the qualifying operating loss carrybacks, net of any valuation allowances; and community banking organization is related valuation allowances, of 25 (iv) Identified losses. A qualifying subject, if it has a community bank percent or less of the FDIC-supervised community banking organization must leverage ratio greater than 9 percent. institution’s CBLR tangible equity, each deduct identified losses (to the extent (2) For purposes of this section, a as of the end of the most recent calendar that CBLR tangible equity would have qualifying community banking quarter. been reduced if the appropriate organization means an FDIC-supervised (3)(i) A qualifying community accounting entries to reflect the institution that is not an advanced banking organization may elect to use identified losses had been recorded on approaches FDIC-supervised institution the community bank leverage ratio the banking organization’s books). and that satisfies all of the following framework if it makes an opt-in election (3) Average total consolidated assets criteria: under this paragraph (a)(3). means total assets calculated in (i) Has total consolidated assets of less (ii) A qualifying community banking accordance with the reporting than $10 billion, calculated in organization may elect to use the instructions to Schedule RC–K of the accordance with the reporting community bank leverage ratio Call Report as of the end of the most instructions to Schedule RC of the Call framework only if it has a community recent calendar quarter less the amounts Report as of the end of the most recent bank leverage ratio that exceeds 9 deducted from CBLR tangible equity calendar quarter; percent at the time of the election. under paragraphs (b)(2)(ii) through (iv) (ii) Has off-balance sheet exposures of (iii) For purposes of this paragraph of this section. (c) Treatment when ceasing to be a 25 percent or less of its total (a)(3), a qualifying community banking qualifying community banking consolidated assets as of the end of the organization makes an election to use organization requirements. (1) Except as most recent calendar quarter, calculated the community bank leverage ratio provided in paragraph (c)(4) of this as the sum of the notional amounts of framework by completing the section, if an FDIC-supervised the exposures listed in paragraphs community bank leverage ratio institution ceases to meet the definition (a)(2)(ii)(A) through (I), divided by total reporting schedule in its Call Report. (iv)(A) A qualifying community of a qualifying community banking consolidated assets, each as of the end banking organization that has elected to organization, the FDIC-supervised of the most recent calendar quarter: use the community bank leverage ratio institution has two reporting periods (A) The unused portion of may opt out of using the community (grace period) to either satisfy the commitments (except for bank leverage ratio by completing requirements to be a qualifying unconditionally cancellable Schedule RC–R in its Call Report or by community banking organization or to commitments); otherwise providing the information comply with § 324.10 and report the (B) Self-liquidating, trade-related required in Schedule RC–R to the FDIC. required capital measures under contingent items that arise from the (B) A qualifying community banking § 324.10 on its Call Report. movement of goods; organization that opts out of using the (2) The grace period begins as of the (C) Transaction-related contingent community bank leverage ratio pursuant end of the calendar quarter in which the items, including performance bonds, bid to paragraph (a)(3)(iv)(A) of this section FDIC-supervised institution ceases to bonds, warranties, and performance must comply with § 324.10 satisfy the criteria to be a qualifying standby letters of credit; immediately. community banking organization (D) Sold credit protection through (b) Calculation of the community provided in paragraph (a)(2) of this guarantees and credit derivatives; bank leverage ratio. (1) A qualifying section. The grace period ends on the (E) Credit-enhancing representations community banking organization’s last day of the second consecutive and warranties; community bank leverage ratio is the calendar quarter following the (F) Securities lent and borrowed, ratio of the banking organization’s CBLR beginning of the grace period. calculated in accordance with the tangible equity, as defined in paragraph (3) During the grace period, the FDIC- reporting instructions to Schedule RC– (b)(2) of this section, to its average total supervised institution continues to be a L of the Call Report; consolidated assets, as defined in qualifying community banking (G) Financial standby letters of credit; paragraph (b)(3) of this section. organization for purposes of this part (H) Forward agreements that are not (2) CBLR tangible equity means total and must continue calculating and derivative contracts; and bank equity capital, calculated in reporting its community bank leverage (I) Off-balance sheet securitization accordance with the reporting ratio unless the FDIC-supervised exposures; instructions to Schedule RC of the Call institution has opted out of using the (iii) Has total trading assets and Report, before the inclusion of community bank leverage ratio under trading liabilities, calculated in noncontrolling (minority) interests in paragraph (a)(3). accordance with the reporting consolidated subsidiaries, as of the end (4) Notwithstanding paragraphs (c)(1) instructions to Schedule RC of the Call of the most recent calendar quarter less through (3), an FDIC-supervised Report of 5 percent or less of the FDIC- the following (each as of the end of the institution that no longer meets the supervised institution’s total most recent calendar quarter): definition of a qualifying community consolidated assets, each as of the end (i) Accumulated other comprehensive banking organization as a result of a of the most recent calendar quarter; income calculated in accordance with merger or acquisition has no grace (iv) Has mortgage servicing assets, the reporting instructions to Schedule period and immediately ceases to be a calculated in accordance with the RC of the Call Report; qualifying community banking reporting instructions to Schedule RC– (ii) Intangible Assets, calculated in organization. Such an FDIC-supervised M of the Call Report, of 25 percent or accordance with the reporting institution comply with § 324.10 and less of the FDIC-supervised institution’s instructions to Schedule RC of the Call must report the required capital CBLR tangible equity, each as of the end Report, other than mortgage servicing measures under § 324.10 on its next Call of the most recent calendar quarter; and assets; Report.
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(d) Tangible equity information. (1) A International Lending Supervision Act paragraphs (b)(2)(i)(A) through (D) of qualifying community banking of 1983 (12 U.S.C. 3907), or the Home this section. organization that has elected to use the Owners’ Loan Act (12 U.S.C. (3)(i) ‘‘Undercapitalized’’ if it: community bank leverage ratio under 1464(t)(6)(A)(ii)), or section 38 of the (A) Has a total risk-based capital ratio this section and has a community bank FDI Act (12 U.S.C. 1831o), or any that is less than 8.0 percent; or leverage ratio that falls below 6 percent, regulation thereunder, to meet and (B) Has a Tier 1 risk-based capital must promptly provide to the FDIC the maintain a specific capital level for any ratio that is less than 6.0 percent; or information necessary for the capital measure. (C) Has a common equity tier 1 capital calculation of its tangible equity, as (ii) Beginning on January 1, 2018 and ratio that is less than 4.5 percent; or defined under § 324.2, for purposes of thereafter, an FDIC–supervised (D) Has a leverage ratio that is less than 4.0 percent. determining the capital category of the institution that is a subsidiary of a (ii) Beginning January 1, 2018, an banking organization under subpart H of covered BHC will be deemed to be well advanced approaches FDIC–supervised capitalized if the FDIC–supervised this part. institution will be deemed to be (2) Notwithstanding paragraph (d)(1), institution satisfies paragraphs ‘‘undercapitalized’’ if it has a upon request by the FDIC, a qualifying (b)(1)(i)(A) through (E) of this section supplementary leverage ratio of less and has a supplementary leverage ratio community banking organization must than 3.0 percent, as calculated in of 6.0 percent or greater. For purposes provide the information necessary for accordance with § 324.11. the calculation of its tangible equity, as of this paragraph, a covered BHC means (iii) A qualifying community banking defined under § 324.2, to the FDIC. a U.S. top-tier bank holding company organization, as defined under § 324.12, ■ 60. Section 324.403is amended by with more than $700 billion in total that has elected to use the community revising paragraphs (a) and (b) to read assets as reported on the company’s bank leverage ratio framework under as follows: most recent Consolidated Financial section § 324.12 and that has a Statement for Bank Holding Companies community bank leverage ratio, as § 324.403 Capital measures and capital (Form FR Y–9C) or more than $10 category definitions. defined under § 324.12, of less than 7.5 trillion in assets under custody as (a) Capital measures. (1) For purposes percent, shall be considered to have met reported on the company’s most recent the requirements for the of section 38 of the FDI Act and this Banking Organization Systemic Risk subpart H, the relevant capital measures undercapitalized capital category in Report (Form FR Y–15). paragraphs (b)(3)(i)(A) through (D) of shall be: (iii) A qualifying community banking (i) The total risk-based capital ratio; this section. organization, as defined under § 324.12, (4)(i) ‘‘Significantly undercapitalized’’ (ii) The Tier 1 risk-based capital ratio; that has elected to use the community (iii) The common equity tier 1 ratio; if it has: bank leverage ratio framework under (A) A total risk-based capital ratio that (iv) The leverage ratio; § 324.12 and that has a community bank (v) The tangible equity to total assets is less than 6.0 percent; or leverage ratio, as defined under (B) A Tier 1 risk-based capital ratio ratio; and § 324.12, greater than 9 percent, shall be that is less than 4.0 percent; or (vi) Beginning January 1, 2018, the considered to have met the capital ratio (C) A common equity tier 1 capital supplementary leverage ratio calculated requirements for the well capitalized ratio that is less than 3.0 percent; or in accordance with § 324.11 for capital category in paragraphs (D) A leverage ratio that is less than advanced approaches FDIC–supervised (b)(1)(i)(A) through (D) of this section. 3.0 percent. institutions that are subject to subpart E (2)(i) ‘‘Adequately capitalized’’ if it: (ii) A qualifying community banking of this part. (A) Has a total risk-based capital ratio organization, as defined under § 324.12, (2) For a qualifying community of 8.0 percent or greater; and that has elected to use the community banking organization (as defined under (B) Has a Tier 1 risk-based capital bank leverage ratio framework under § 324.12), that is subject to the ratio of 6.0 percent or greater; and section § 324.12 and that has a community bank leverage ratio (as (C) Has a common equity tier 1 capital community bank leverage ratio, as defined under § 324.12), the community ratio of 4.5 percent or greater; and defined under § 324.12, of less than 6 bank leverage ratio (as defined under (D) Has a leverage ratio of 4.0 percent percent, shall be considered to have met § 324.12), is used to determine the or greater; and the requirements for the significantly applicable capital category under (E) Does not meet the definition of a undercapitalized capital category in paragraphs (b)(1) through (4) of this well capitalized bank. paragraphs (b)(4)(i)(A) through (D) of section. (ii) Beginning January 1, 2018, an this section. (b) Capital categories. For purposes of advanced approaches FDIC–supervised (5) ‘‘Critically undercapitalized’’ if the section 38 of the FDI Act and this institution will be deemed to be insured depository institution has a subpart, an FDIC–supervised institution ‘‘adequately capitalized’’ if it satisfies ratio of tangible equity, as defined in shall be deemed to be: paragraphs (b)(2)(i)(A) through (E) of § 324.2, to total assets that is equal to or (1) (i) ‘‘Well capitalized’’ if it: this section and has a supplementary less than 2.0 percent. (A) Has a total risk-based capital ratio leverage ratio of 3.0 percent or greater, of 10.0 percent or greater; and as calculated in accordance with PART 337—UNSAFE AND UNSOUND (B) Has a Tier 1 risk-based capital § 324.11 of subpart B of this part. BANKING PRACTICES (iii) A qualifying community banking ratio of 8.0 percent or greater; and ■ (C) Has a common equity tier 1 capital organization, as defined under § 324.12, 61. The authority citation for part 337 ratio of 6.5 percent or greater; and that has elected to use the community continues to read as follows: (D) Has a leverage ratio of 5.0 percent bank leverage ratio framework under Authority: 12 U.S.C. 375a(4), 375b, or greater; and section § 324.12 and that has a 1463(a)(1), 1816, 1818(a), 1818(b), 1819, (E) Is not subject to any written community bank leverage ratio, as 1820(d), 1828(j)(2), 1831, 1831f, 5412. agreement, order, capital directive, or defined under § 324.12, of 7.5 percent or ■ 62. Section 337.3 is amended by prompt corrective action directive greater, shall be considered to have met redesignating footnote 3 to paragraph (b) issued by the FDIC pursuant to section the requirements for the adequately as footnote 1 and revising newly to read 8 of the FDI Act (12 U.S.C. 1818), the capitalized capital category in as follows:
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§ 337.3 Limits on extensions of credit to (s) Tier one capital has the same Authority: 12 U.S.C. 1819. executive officers, directors, and principal meaning as set forth in part 324 of this ■ shareholders of insured nonmember banks. chapter for an insured State nonmember 70. Section 390.265 is amended by * * * * * bank or insured state savings revising footnote 4 to read as follows: (b) * * * association. For other state-chartered * * * * * 1 For the purposes of § 337.3, an depository institutions, the term ‘‘tier 4 For the state member banks, the insured nonmember bank’s capital and one capital’’ has the same meaning as unimpaired surplus shall have the same term ‘‘total capital’’ is defined at 12 CFR set forth in the capital regulations 217.2. For insured state non-member meaning as found in § 215.2(f) of adopted by the appropriate Federal banks, the term ‘‘total capital’’ is Federal Reserve Board Regulation O (12 banking agency. For a qualifying defined at 12 CFR 324.2. For national CFR 215.2(f)). For a qualifying community banking organization (as community banking organization (as defined in 12 CFR 324.12) that is subject banks, the term ‘‘total capital’’ is defined in 12 CFR 324.12) that is subject to the community bank leverage ratio (as defined at 12 CFR 3.2. For state savings to the community bank leverage ratio (as defined in 12 CFR 324.12), Tier one associations, the term ‘‘total capital’’ is defined in 12 CFR 324.12), capital and capital means the FDIC-supervised defined at 12 CFR 324.2. For a unimpaired surplus shall mean the institution’s CBLR tangible equity (as qualifying community banking FDIC-supervised institution’s CBLR defined in 12 CFR 324.12). organization (as defined in 12 CFR tangible equity (as defined in 12 CFR * * * * * 324.12) that is subject to the community 324.12) plus allowances for loan and bank leverage ratio (as defined in 12 lease losses (as defined in 12 CFR 324. PART 365—REAL ESTATE LENDING CFR 324.12), ‘‘total capital’’ means the 2). STANDARDS FDIC-supervised institution’s CBLR * * * * * ■ 67. The authority citation for part 365 tangible equity (as defined in 12 CFR 324.12). PART 347—INTERNATIONAL continues to read as follows: BANKING Authority: 12 U.S.C. 1828(o) and 5101 et * * * * * seq. ■ 71. Section 390.344 is amended by ■ 63. The authority citation for part 347 ■ revising the definition of ‘‘Capital’’ to continues to read as follows: 68. Appendix A to subpart A of part 365 is amended by: read as follows: Authority: 12 U.S.C. 1813, 1815, 1817, ■ a. Following the heading * * * * * 1819, 1820, 1828, 3103, 3104, 3105, 3108, ‘‘Supervisory Loan-to-Value-Limits’’, in 3109; Pub L. No. 111–203, section 939A, 124 the table, redesignating footnotes 1 and § 390.344 Definitions applicable to capital Stat. 1376, 1887 (July 21, 2010) (codified 15 distributions. U.S.C. 78o–7 note). 2 as footnotes 2 and 3; ■ b. In the first paragraph of the * * * * * ■ 64. Section 347.102 is amended by appendix, redesignating footnote 5 as Capital means total capital, as revising paragraph (u) to read as footnote 1; and follows: ■ c. Following the heading ‘‘Loans in computed under part 324 of this chapter. For a qualifying community § 347.102 Definitions. Excess of the Supervisory Loan-to- Value-Limits’’, redesignating the second banking organization (as defined in 12 * * * * * footnote 2 as footnote 4 and revising CFR 324.12) that is subject to the (u) Tier 1 capital means Tier 1 capital newly redesignated footnote 4. community bank leverage ratio (as as defined in § 324.2 of this chapter. For The revision reads as follows: defined in 12 CFR 324.12), total capital a qualifying community banking means the FDIC-supervised institution’s organization (as defined in 12 CFR Appendix A to Subpart A of Part 365— CBLR tangible equity (as defined in 12 324.12) that is subject to the community Interagency Guidelines for Real Estate CFR 324.12). bank leverage ratio (as defined in 12 Lending Policies * * * * * CFR 324.12), Tier 1 capital means the * * * * * FDIC-supervised institution’s CBLR 4 For state non-member banks and Dated: November 15, 2018. tangible equity (as defined in 12 CFR state savings associations, ‘‘total Joseph M. Otting, 324.12). capital’’ refers to that term described in Comptroller of the Currency. * * * * * 12 CFR 324.2. For a qualifying community banking organization (as By order of the Board of Governors of the PART 362—ACTIVITIES OF INSURED defined in 12 CFR 324.12) that is subject Federal Reserve System, November 21, 2018. STATE BANKS AND INSURED to the community bank leverage ratio (as Margaret McCloskey Shanks, SAVINGS ASSOCIATIONS defined in 12 CFR 324.12), ‘‘total Deputy Secretary of the Board. ■ 65. The authority citation for part 362 capital’’ refers to the FDIC-supervised Dated at Washington, DC, on November 20, continues to read as follows: institution’s CBLR tangible equity (as 2018. defined in 12 CFR 324.12). Authority: 12 U.S.C. 1816, 1818, 1819(a) By order of the Board of Directors. * * * * * (Tenth), 1828(j), 1828(m), 1828a, 1831a, Federal Deposit Insurance Corporation. 1831e, 1831w, 1843(l). PART 390—REGULATIONS Robert E. Feldman, ■ 66. Section 362.2 is amended by TRANSFERRED FROM THE OFFICE OF Executive Secretary. revision paragraph (s) to read as follows: THRIFT SUPERVISION [FR Doc. 2018–27002 Filed 2–7–19; 8:45 am] § 362.2 Definitions. ■ 69. The authority citation for part 390 BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P * * * * * continues to read as follows:
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Reader Aids Federal Register Vol. 84, No. 27 Friday, February 8, 2019
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902...... 2725 29 CFR 39 CFR 46 CFR Proposed Rules: 3035...... 974 506...... 2459 17 CFR 1404...... 1420 Proposed Rules Proposed Rules: 229...... 2402 4001...... 2075 3020...... 1420 515...... 2125 240...... 2402 4204...... 2075 Proposed Rules: 4206...... 2075 40 CFR 47 CFR 75...... 2778 4207...... 2075 19...... 2056 255...... 2778 4211...... 2075 52 ...... 976, 1610, 1615, 2060, 0...... 2753 270...... 1286 4219...... 2075 2063, 2449, 2738 1 ...... 1618, 2460, 2461, 2753 274...... 1286 63...... 2742 5...... 2753 32 CFR 70...... 1615 25...... 2462 18 CFR 100...... 968 80...... 2453 30...... 1618 11...... 1359 101...... 968 180...... 2456 64...... 1409 250...... 966 279...... 969 Proposed Rules: 73...... 2753 385...... 966 809a...... 2734 49...... 1690 74...... 2753 Proposed Rules: 52 ...... 1015, 1016, 1021, 1025, Proposed Rules: 33 CFR 7...... 2469 1037, 1690, 2109, 2801 1...... 2485 35...... 993 117...... 1401, 2735 60...... 2484, 2485 25...... 2126 141...... 1412 165...... 969, 2736 62...... 1039 32...... 2132 385...... 1412 Proposed Rules: 63...... 1570, 2670 54...... 2132 154...... 2799 110...... 2483 65...... 2132 20 CFR 155...... 2800 112...... 2483 73...... 2485 30...... 3026 165...... 2479 116...... 2483 328...... 2483 Proposed Rules: 117...... 2483 48 CFR 122...... 2483 404...... 1006 34 CFR 501...... 1410 416...... 1006 174...... 2115 36...... 971 180...... 1691, 2115 519...... 1410 552...... 1410 21 CFR 668...... 971 232...... 2483 300 ...... 2116, 2122, 2483 Proposed Rules: 1308...... 2448 37 CFR 302...... 2483 806...... 1014 401...... 2483 22 CFR 385...... 1918 Proposed Rules: 49 CFR Proposed Rules: 42 CFR 201...... 1661 Proposed Rules: 171...... 1419 Proposed Rules: 10...... 2137 38 CFR 493...... 1536 23 CFR 563...... 2804 3...... 2449 1001...... 2340 1270...... 2731 1002...... 1046 8...... 2449 1312...... 1046 1275...... 2731 14...... 2449 44 CFR Proposed Rules: 19...... 2449 64...... 978 658...... 2071 20...... 2449 50 CFR 21...... 2449 45 CFR 622...... 1631, 2759 26 CFR Proposed Rules: 1149...... 1402 648 ...... 1632, 2463, 2760 1...... 1838, 2952 4...... 1678 1158...... 1402 665...... 2767 Proposed Rules: 38...... 2093 1607...... 1404 679 ...... 2067, 2068, 2723, 2776 1...... 1014, 3015 39...... 2093 1611...... 1408 680...... 2723
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