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  <VOL>77</VOL>
  <NO>35</NO>
  <DATE>Wednesday, February 22, 2012</DATE>
  <UNITNAME>Contents</UNITNAME>
  <CNTNTS>
    <AGCY>
      <EAR>Agriculture</EAR>
      <PRTPAGE P="iii"/>
      <HD>Agriculture Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Animal and Plant Health Inspection Service</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Forest Service</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Rural Utilities Service</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Alcohol Tobacco Firearms</EAR>
      <HD>Alcohol, Tobacco, Firearms, and Explosives Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Application for National Firearms Examiner Academy,</SJDOC>
          <PGS>10560</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4000</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Certification of Secure Gun Storage or Safety Devices,</SJDOC>
          <PGS>10559</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4001</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Animal</EAR>
      <HD>Animal and Plant Health Inspection Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Plant Pest Risk Assessment, and Environmental Assessments; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Determination of Nonregulated Status for Dow AgroScience LLC Genetically Engineered Corn,</SJDOC>
          <PGS>10472</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4081</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Antitrust Division</EAR>
      <HD>Antitrust Division</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Proposed Final Judgment and Competitive Impact Statement:</SJ>
        <SJDENT>
          <SJDOC>United States v. International Paper Company et al.,</SJDOC>
          <PGS>10560-10572</PGS>
          <FRDOCBP D="12" T="22FEN1.sgm">2012-3975</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Children</EAR>
      <HD>Children and Families Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Permanency Innovations Initiative Evaluation; Phase I,</SJDOC>
          <PGS>10531-10532</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4051</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Protection and Advocacy Voting Access Application and Annual Report,</SJDOC>
          <PGS>10532-10533</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3986</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Understanding Dynamics of Disconnection from Employment and Assistance,</SJDOC>
          <PGS>10533</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-3945</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Coast Guard</EAR>
      <HD>Coast Guard</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Drawbridge Operations:</SJ>
        <SJDENT>
          <SJDOC>Sacramento River, Sacramento, CA,</SJDOC>
          <PGS>10371-10372</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-4016</FRDOCBP>
          <FRDOCBP D="0" T="22FER1.sgm">2012-4019</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>The Gut, South Bristol, ME,</SJDOC>
          <PGS>10372-10373</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-4020</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Revision of the National Preparedness for Response Exercise Program Guidelines,</DOC>
          <PGS>10542-10543</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4021</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Commerce</EAR>
      <HD>Commerce Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Industry and Security Bureau</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>International Trade Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>National Oceanic and Atmospheric Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Patent and Trademark Office</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Consumer Product</EAR>
      <HD>Consumer Product Safety Commission</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Mandatory Consumer Product Safety Standards:</SJ>
        <SJDENT>
          <SJDOC>ASTM F963-11,</SJDOC>
          <PGS>10358</PGS>
          <FRDOCBP D="0" T="22FER1.sgm">2012-3990</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Defense Department</EAR>
      <HD>Defense Department</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Federal Acquisition Regulations:</SJ>
        <SJDENT>
          <SJDOC>Unallowability of Costs Associated with Foreign Contractor Excise Tax,</SJDOC>
          <PGS>10461-10463</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-3905</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10484</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4063</FRDOCBP>
        </DOCENT>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Federal Acquisition Regulation; Delivery Schedules,</SJDOC>
          <PGS>10529-10530</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4088</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Education Department</EAR>
      <HD>Education Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10484-10485</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4055</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Employment and Training</EAR>
      <HD>Employment and Training Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Funding Opportunities and Solicitations for Grant Applications:</SJ>
        <SJDENT>
          <SJDOC>Workforce Data Quality Initiative,</SJDOC>
          <PGS>10573-10574</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3982</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Energy Department</EAR>
      <HD>Energy Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Energy Regulatory Commission</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Management Site-Specific Advisory Board:</SJ>
        <SJDENT>
          <SJDOC>Idaho National Laboratory,</SJDOC>
          <PGS>10485</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4061</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Electricity Advisory Committee,</SJDOC>
          <PGS>10486-10487</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4048</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Ultra-Deepwater Advisory Committee,</SJDOC>
          <PGS>10487</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4086</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Unconventional Resources Technology Advisory Committee,</SJDOC>
          <PGS>10485-10486</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4083</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Environmental Protection</EAR>
      <HD>Environmental Protection Agency</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Designation of Hazardous Substances:</SJ>
        <SJDENT>
          <SJDOC>Designation, Reportable Quantities, and Notification,</SJDOC>
          <PGS>10387-10390</PGS>
          <FRDOCBP D="3" T="22FER1.sgm">2012-4060</FRDOCBP>
        </SJDENT>
        <SJ>Greenhouse Gas Reporting Program:</SJ>
        <SJDENT>
          <SJDOC>Electronics Manufacturing; Revisions to Heat Transfer Fluid Provisions,</SJDOC>
          <PGS>10373-10381</PGS>
          <FRDOCBP D="8" T="22FER1.sgm">2012-3769</FRDOCBP>
        </SJDENT>
        <SJ>Pesticide Tolerances:</SJ>
        <SJDENT>
          <SJDOC>Metaflumizone,</SJDOC>
          <PGS>10381-10387</PGS>
          <FRDOCBP D="6" T="22FER1.sgm">2012-3795</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Approval and Promulgation of Air Quality Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>West Virginia Ambient Air Quality Standards,</SJDOC>
          <PGS>10423-10424</PGS>
          <FRDOCBP D="1" T="22FEP1.sgm">2012-3918</FRDOCBP>
        </SJDENT>
        <SJ>Approvals and Promulgations of Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>Wisconsin; Volatile Organic Compound Emission Control Measures for Milwaukee and Sheboygan Ozone Nonattainment Areas,</SJDOC>
          <PGS>10424-10430</PGS>
          <FRDOCBP D="6" T="22FEP1.sgm">2012-4171</FRDOCBP>
        </SJDENT>
        <SJ>California State Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>South Coast Rule 1315; Air Quality Management District; Revision,</SJDOC>
          <PGS>10430-10434</PGS>
          <FRDOCBP D="4" T="22FEP1.sgm">2012-4172</FRDOCBP>
        </SJDENT>
        <SJ>Designation of Hazardous Substances:</SJ>
        <SJDENT>
          <SJDOC>Designation, Reportable Quantities, and Notification,</SJDOC>
          <PGS>10450-10451</PGS>
          <FRDOCBP D="1" T="22FEP1.sgm">2012-4059</FRDOCBP>
        </SJDENT>
        <SJ>Fishing Tackle Containing Lead:</SJ>
        <SJDENT>
          <SJDOC>Disposition of Petition Filed Pursuant to TSCA Section 21,</SJDOC>
          <PGS>10451-10455</PGS>
          <FRDOCBP D="4" T="22FEP1.sgm">2012-4087</FRDOCBP>
        </SJDENT>
        <PRTPAGE P="iv"/>
        <SJ>Mandatory Reporting of Greenhouse Gases Rule:</SJ>
        <SJDENT>
          <SJDOC>Confidentiality Determinations and Best Available Monitoring Methods Provisions,</SJDOC>
          <PGS>10434-10450</PGS>
          <FRDOCBP D="16" T="22FEP1.sgm">2012-3778</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Access to Confidential Business Information:</SJ>
        <SJDENT>
          <SJDOC>Syracuse Research Corp., Inc., and BeakerTree Corp.,</SJDOC>
          <PGS>10506-10507</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4067</FRDOCBP>
        </SJDENT>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Background Checks for Contractor Employees,</SJDOC>
          <PGS>10508-10509</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4022</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Drug Testing for Contract Employees,</SJDOC>
          <PGS>10509-10510</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3985</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Final Authorization for Hazardous Waste Management Programs,</SJDOC>
          <PGS>10510-10511</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3981</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NESHAP for Petroleum Refineries,</SJDOC>
          <PGS>10507-10508</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3983</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Requirements for Generators, Transporters, and Waste Management Facilities, etc.,</SJDOC>
          <PGS>10511-10512</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3980</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Certain New Chemicals; Receipt and Status Information,</DOC>
          <PGS>10512-10515</PGS>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-4069</FRDOCBP>
        </DOCENT>
        <SJ>Pesticide Product Registrations:</SJ>
        <SJDENT>
          <SJDOC>Conditional Approval,</SJDOC>
          <PGS>10515-10516</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3928</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Requests to Voluntarily Cancel Certain Pesticide Registrations,</DOC>
          <PGS>10516-10519</PGS>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-3798</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Suspension of Certain Pesticide Registrations,</DOC>
          <PGS>10520-10522</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-3930</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Aviation</EAR>
      <HD>Federal Aviation Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Airworthiness Directives:</SJ>
        <SJDENT>
          <SJDOC>Rolls-Royce plc (RR) RB211-Trent 800 Series Turbofan Engines,</SJDOC>
          <PGS>10355-10356</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-3863</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Various Transport Category Airplanes,</SJDOC>
          <PGS>10352-10355</PGS>
          <FRDOCBP D="3" T="22FER1.sgm">2012-3973</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Airworthiness Directives:</SJ>
        <SJDENT>
          <SJDOC>Airbus Airplanes,</SJDOC>
          <PGS>10409-10411</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-4163</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Boeing Co. Airplanes,</SJDOC>
          <PGS>10403-10408, 10411-10413</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-4002</FRDOCBP>
          <FRDOCBP D="3" T="22FEP1.sgm">2012-4161</FRDOCBP>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-4162</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Bombardier, Inc. Airplanes,</SJDOC>
          <PGS>10413-10415</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-4160</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Bureau</EAR>
      <HD>Federal Bureau of Investigation</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>The Voluntary Appeal File Brochure,</SJDOC>
          <PGS>10572-10573</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3999</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Communications</EAR>
      <HD>Federal Communications Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10522-10525</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3965</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4057</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4058</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Energy</EAR>
      <HD>Federal Energy Regulatory Commission</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Standards for Business Practices for Interstate Natural Gas Pipelines,</DOC>
          <PGS>10415-10422</PGS>
          <FRDOCBP D="7" T="22FEP1.sgm">2012-4041</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Combined Filings,</DOC>
          <PGS>10487-10489</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4023</FRDOCBP>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4024</FRDOCBP>
        </DOCENT>
        <SJ>Complaints:</SJ>
        <SJDENT>
          <SJDOC>Xcel Energy Services Inc. Northern States Power Company v. American Transmission Company, LLC,</SJDOC>
          <PGS>10489-10490</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4073</FRDOCBP>
        </SJDENT>
        <SJ>Environmental Assessments; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>FPL Energy Maine Hydro, LLC,</SJDOC>
          <PGS>10490</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4076</FRDOCBP>
        </SJDENT>
        <SJ>Filings:</SJ>
        <SJDENT>
          <SJDOC>Arcadia Gas Storage, LLC,</SJDOC>
          <PGS>10490</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4078</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>SourceGas Distribution LLC,</SJDOC>
          <PGS>10490</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4072</FRDOCBP>
        </SJDENT>
        <SJ>License Amendment Applications:</SJ>
        <SJDENT>
          <SJDOC>Progress Energy Carolinas, Inc.,</SJDOC>
          <PGS>10491</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4075</FRDOCBP>
        </SJDENT>
        <SJ>License Applications:</SJ>
        <SJDENT>
          <SJDOC>Aspen, CO,</SJDOC>
          <PGS>10491-10492</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4012</FRDOCBP>
        </SJDENT>
        <SJ>Order Reaffirming Commission Policy and Terminating Proceeding:</SJ>
        <SJDENT>
          <SJDOC>Analysis of Horizontal Market Power under the Federal Power Act,</SJDOC>
          <PGS>10492-10501</PGS>
          <FRDOCBP D="9" T="22FEN1.sgm">2012-4050</FRDOCBP>
        </SJDENT>
        <SJ>Petitions for Declaratory Orders:</SJ>
        <SJDENT>
          <SJDOC>MATL LLP, Montana Alberta Tie, Ltd.,</SJDOC>
          <PGS>10502</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4015</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Northeast Utilities Service Co.,</SJDOC>
          <PGS>10501-10502</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4014</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>PJM Interconnection, LLC, Technical Conference Comment Period,</DOC>
          <PGS>10502</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4011</FRDOCBP>
        </DOCENT>
        <SJ>Preliminary Permit Applications:</SJ>
        <SJDENT>
          <SJDOC>Alaska Village Electric Cooperative,</SJDOC>
          <PGS>10504-10505</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4013</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Fall River Community Hydro Project,</SJDOC>
          <PGS>10503-10504</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4077</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Grand Coulee Project Hydroelectric Authority,</SJDOC>
          <PGS>10502-10503</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4010</FRDOCBP>
        </SJDENT>
        <SJ>Staff Attendances:</SJ>
        <SJDENT>
          <SJDOC>PJM Interconnection, LLC, Meetings,</SJDOC>
          <PGS>10505-10506</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4074</FRDOCBP>
        </SJDENT>
        <SJ>Terminations of Proceedings:</SJ>
        <SJDENT>
          <SJDOC>Locational Exchanges of Wholesale Electric Power,</SJDOC>
          <PGS>10506</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4071</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Highway</EAR>
      <HD>Federal Highway Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Surface Transportation Project Delivery Pilot Program:</SJ>
        <SJDENT>
          <SJDOC>Caltrans Audit Report,</SJDOC>
          <PGS>10599-10604</PGS>
          <FRDOCBP D="5" T="22FEN1.sgm">2012-3977</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Housing Finance Agency</EAR>
      <HD>Federal Housing Finance Agency</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Regulatory Review Plans,</DOC>
          <PGS>10351-10352</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-4056</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Motor</EAR>
      <HD>Federal Motor Carrier Safety Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Harmonizing Schedule I Drug Requirements; Correction,</DOC>
          <PGS>10391-10400</PGS>
          <FRDOCBP D="9" T="22FER1.sgm">2012-3978</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Qualifications of Drivers; Exemption Applications:</SJ>
        <SJDENT>
          <SJDOC>Diabetes Mellitus,</SJDOC>
          <PGS>10607-10608, 10612-10615</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3979</FRDOCBP>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-3996</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Vision,</SJDOC>
          <PGS>10604-10607, 10610-10612</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-3976</FRDOCBP>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-3991</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3994</FRDOCBP>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-3995</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Reserve</EAR>
      <HD>Federal Reserve System</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10525-10529</PGS>
          <FRDOCBP D="4" T="22FEN1.sgm">2012-3964</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Formations of, Acquisitions by, and Mergers of Bank Holding Companies,</DOC>
          <PGS>10529</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4018</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Retirement</EAR>
      <HD>Federal Retirement Thrift Investment Board</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>10529</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4248</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Food and Drug</EAR>
      <HD>Food and Drug Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Debarment Order:</SJ>
        <SJDENT>
          <SJDOC>Stephen L. Marks,</SJDOC>
          <PGS>10533-10534</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4064</FRDOCBP>
        </SJDENT>
        <SJ>Guidance for Industry; Availability:</SJ>
        <SJDENT>
          <SJDOC>Product-Specific Bioequivalence Recommendations,</SJDOC>
          <PGS>10535-10537</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4035</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4037</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Food and Drug Administration/Xavier University Global Medical Device; Public Conference,</SJDOC>
          <PGS>10537-10538</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4036</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Training Program for Regulatory Project Managers,</DOC>
          <PGS>10538</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4034</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Forest</EAR>
      <HD>Forest Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Mitsubishi South Quarry Expansion Project, San Bernardino National Forest, Mountaintop Ranger District, CA,</SJDOC>
          <PGS>10472-10475</PGS>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-3938</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>General Services</EAR>
      <PRTPAGE P="v"/>
      <HD>General Services Administration</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Federal Acquisition Regulations:</SJ>
        <SJDENT>
          <SJDOC>Unallowability of Costs Associated with Foreign Contractor Excise Tax,</SJDOC>
          <PGS>10461-10463</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-3905</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Federal Acquisition Regulation; Delivery Schedules,</SJDOC>
          <PGS>10529-10530</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4088</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Geological</EAR>
      <HD>Geological Survey</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Nonferrous Metals Surveys,</SJDOC>
          <PGS>10544-10545</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4038</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Health and Human</EAR>
      <HD>Health and Human Services Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Children and Families Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Food and Drug Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>National Institutes of Health</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10530-10531</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4033</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Homeland</EAR>
      <HD>Homeland Security Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Coast Guard</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>U.S. Customs and Border Protection</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Housing</EAR>
      <HD>Housing and Urban Development Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Funding Awards, Fiscal Year 2011:</SJ>
        <SJDENT>
          <SJDOC>Capacity Building for Sustainable Communities Program,</SJDOC>
          <PGS>10543</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-3943</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Indian Affairs</EAR>
      <HD>Indian Affairs Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Alcoholic Beverage Control Ordinances:</SJ>
        <SJDENT>
          <SJDOC>Coushatta Tribe of Louisiana,</SJDOC>
          <PGS>10545-10547</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4029</FRDOCBP>
        </SJDENT>
        <SJ>Beer and Liquor Tax Ordinances:</SJ>
        <SJDENT>
          <SJDOC>Kickapoo Traditional Tribe of Texas,</SJDOC>
          <PGS>10547-10551</PGS>
          <FRDOCBP D="4" T="22FEN1.sgm">2012-4052</FRDOCBP>
        </SJDENT>
        <SJ>Liquor Codes:</SJ>
        <SJDENT>
          <SJDOC>Confederated Tribes of the Umatilla Indian Reservation,</SJDOC>
          <PGS>10551-10553</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4131</FRDOCBP>
        </SJDENT>
        <SJ>Liquor Control Ordinances:</SJ>
        <SJDENT>
          <SJDOC>Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians (Gun Lake),</SJDOC>
          <PGS>10553-10554</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4053</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Industry</EAR>
      <HD>Industry and Security Bureau</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Updated Statements of Legal Authority to Reflect Continuation of Emergency Declared in Executive Orders 12947 and 13224,</DOC>
          <PGS>10357-10358</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-4062</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Interior</EAR>
      <HD>Interior Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Geological Survey</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Indian Affairs Bureau</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Land Management Bureau</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Wildlife and Hunting Heritage Conservation Council Charter,</DOC>
          <PGS>10543-10544</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4028</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Internal Revenue</EAR>
      <HD>Internal Revenue Service</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Rewards and Awards for Information Relating to Violations of Internal Revenue Laws,</DOC>
          <PGS>10370-10371</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-3989</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Reporting of Specified Foreign Financial Assets; Correction,</DOC>
          <PGS>10422-10423</PGS>
          <FRDOCBP D="1" T="22FEP1.sgm">2012-3904</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>International Trade Adm</EAR>
      <HD>International Trade Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Antidumping Duty Administrative Reviews; Results, Extensions, Amendments, etc.:</SJ>
        <SJDENT>
          <SJDOC>Certain New Pneumatic Off-the-Road Tires from People's Republic of China,</SJDOC>
          <PGS>10476</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4125</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Seamless Refined Copper Pipe and Tube from Mexico,</SJDOC>
          <PGS>10476-10477</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4123</FRDOCBP>
        </SJDENT>
        <SJ>Antidumping Duty Sunset Reviews; Results, Extensions, Amendments, etc.:</SJ>
        <SJDENT>
          <SJDOC>Silicon Metal from People's Republic of China,</SJDOC>
          <PGS>10477-10478</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4127</FRDOCBP>
        </SJDENT>
        <SJ>Countervailing Duty Investigations; Results, Extensions, Amendments, etc.:</SJ>
        <SJDENT>
          <SJDOC>Crystalline Silicon Photovoltaic Cells from People's Republic of China,</SJDOC>
          <PGS>10478</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4119</FRDOCBP>
        </SJDENT>
        <SJ>Quarterly Updates to Annual Listings of Foreign Government Subsidies:</SJ>
        <SJDENT>
          <SJDOC>Articles of Cheese Subject to In-Quota Rate of Duty,</SJDOC>
          <PGS>10478-10479</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4122</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Requests for Panel Reviews,</DOC>
          <PGS>10479-10480</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3854</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>International Trade Com</EAR>
      <HD>International Trade Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Complaints:</SJ>
        <SJDENT>
          <SJDOC>Certain Radio Frequency Integrated Circuits and Devices Containing Same,</SJDOC>
          <PGS>10556</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4042</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Justice Department</EAR>
      <HD>Justice Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Alcohol, Tobacco, Firearms, and Explosives Bureau</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Antitrust Division</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Bureau of Investigation</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Justice Programs Office</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Entry of Appearance as Attorney or Representative before the Board of Immigration Appeals,</SJDOC>
          <PGS>10557-10558</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4093</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Entry of Appearance as Attorney or Representative before the Immigration Court,</SJDOC>
          <PGS>10556-10557</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4092</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Immigration Practitioner Complaint Form,</SJDOC>
          <PGS>10558-10559</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4094</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Request for Recognition of a Non-profit Religious, Charitable, Social Service, or Similar Organization,</SJDOC>
          <PGS>10558</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4095</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Justice Programs</EAR>
      <HD>Justice Programs Office</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>National Motor Vehicle Title Information System (NMVTIS) Federal Advisory Committee,</SJDOC>
          <PGS>10573</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-3997</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Labor Department</EAR>
      <HD>Labor Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Employment and Training Administration</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Land</EAR>
      <HD>Land Management Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10554-10555</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4100</FRDOCBP>
        </DOCENT>
        <SJ>Filing of Plats of Survey:</SJ>
        <SJDENT>
          <SJDOC>Oregon/Washington,</SJDOC>
          <PGS>10555</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4032</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Mojave-Southern Great Basin Resource Advisory Council, Nevada,</SJDOC>
          <PGS>10555-10556</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4026</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Legal</EAR>
      <HD>Legal Services Corporation</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>10574</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4259</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>NASA</EAR>
      <PRTPAGE P="vi"/>
      <HD>National Aeronautics and Space Administration</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Federal Acquisition Regulations:</SJ>
        <SJDENT>
          <SJDOC>Unallowability of Costs Associated with Foreign Contractor Excise Tax,</SJDOC>
          <PGS>10461-10463</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-3905</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Federal Acquisition Regulation; Delivery Schedules,</SJDOC>
          <PGS>10529-10530</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4088</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Highway</EAR>
      <HD>National Highway Traffic Safety Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Petitions for Decisions of Inconsequential Noncompliance:</SJ>
        <SJDENT>
          <SJDOC>Cooper Tire and Rubber Tire Co.,</SJDOC>
          <PGS>10615-10616</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4030</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Institute</EAR>
      <HD>National Institutes of Health</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Loan Repayment Programs,</DOC>
          <PGS>10455-10461</PGS>
          <FRDOCBP D="6" T="22FEP1.sgm">2012-3900</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Center for Scientific Review,</SJDOC>
          <PGS>10539</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4101</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Center for Complementary and Alternative Medicine,</SJDOC>
          <PGS>10540</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4107</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Heart, Lung, and Blood Institute,</SJDOC>
          <PGS>10538-10539</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4109</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Institute of Allergy and Infectious Diseases,</SJDOC>
          <PGS>10540-10541</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4099</FRDOCBP>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4104</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Institute of Dental and Craniofacial Research,</SJDOC>
          <PGS>10539-10541</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4098</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4103</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4110</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Institute of Diabetes and Digestive and Kidney Diseases,</SJDOC>
          <PGS>10540</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4105</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Institute of General Medical Sciences,</SJDOC>
          <PGS>10541-10542</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4097</FRDOCBP>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4102</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Oceanic</EAR>
      <HD>National Oceanic and Atmospheric Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Fisheries of Exclusive Economic Zone Off Alaska:</SJ>
        <SJDENT>
          <SJDOC>Pacific Cod by Catcher Vessels Using Hook-and-Line or Pot Gear in Bering Sea and Aleutian Islands Management Area,</SJDOC>
          <PGS>10400</PGS>
          <FRDOCBP D="0" T="22FER1.sgm">2012-4115</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Fisheries of Northeastern United States:</SJ>
        <SJDENT>
          <SJDOC>2012-2013 Northeast Skate Complex Fishery Specifications,</SJDOC>
          <PGS>10463-10466</PGS>
          <FRDOCBP D="3" T="22FEP1.sgm">2012-4111</FRDOCBP>
        </SJDENT>
        <SJ>Magnuson-Stevens Act Provisions; Fisheries off West Coast States:</SJ>
        <SJDENT>
          <SJDOC>Pacific Coast Groundfish Fishery; 2012 Tribal Fishery for Pacific Whiting,</SJDOC>
          <PGS>10466-10471</PGS>
          <FRDOCBP D="5" T="22FEP1.sgm">2012-4113</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Survey of Hawaii Resident Resource Users' Knowledge, Attitudes and Perceptions of Coral Reefs, etc.,</SJDOC>
          <PGS>10480</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-3992</FRDOCBP>
        </SJDENT>
        <SJ>Incidental Taking of Marine Mammals:</SJ>
        <SJDENT>
          <SJDOC>Explosive Removal of Offshore Structures in the Gulf of Mexico,</SJDOC>
          <PGS>10481-10482</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4117</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Science</EAR>
      <HD>National Science Foundation</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Proposal Review Panel for Chemistry,</SJDOC>
          <PGS>10574-10575</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4054</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>10575</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4244</FRDOCBP>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4247</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Nuclear Regulatory</EAR>
      <HD>Nuclear Regulatory Commission</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Low-Level Radioactive Waste Management Issues:</SJ>
        <SJDENT>
          <SJDOC>Public Meeting,</SJDOC>
          <PGS>10401-10403</PGS>
          <FRDOCBP D="2" T="22FEP1.sgm">2012-4090</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>10575-10576</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4226</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Methodology for Low Power/Shutdown Fire PRA,</DOC>
          <PGS>10576-10577</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4096</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Patent</EAR>
      <HD>Patent and Trademark Office</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Trademark Petitions,</DOC>
          <PGS>10482-10483</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4085</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Postal Regulatory</EAR>
      <HD>Postal Regulatory Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>International Mail Contracts,</DOC>
          <PGS>10577-10578</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3984</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Research Innovative</EAR>
      <HD>Research and Innovative Technology Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Advisory Council on Transportation Statistics,</SJDOC>
          <PGS>10616-10617</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3849</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Rural Utilities</EAR>
      <HD>Rural Utilities Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Assessments; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Tri-State Generation and Transmission Association, Inc.:,</SJDOC>
          <PGS>10475</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4082</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Securities</EAR>
      <HD>Securities and Exchange Commission</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Investment Adviser Performance Compensation,</DOC>
          <PGS>10358-10368</PGS>
          <FRDOCBP D="10" T="22FER1.sgm">2012-4046</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>10578</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4009</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>10578</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4153</FRDOCBP>
        </DOCENT>
        <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
        <SJDENT>
          <SJDOC>EDGA Exchange, Inc.,</SJDOC>
          <PGS>10593-10595</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4008</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>EDGX Exchange, Inc.,</SJDOC>
          <PGS>10595-10598</PGS>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-4007</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>International Securities Exchange, LLC,</SJDOC>
          <PGS>10579-10581</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4084</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Securities Clearing Corp.,</SJDOC>
          <PGS>10589-10592</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4004</FRDOCBP>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4005</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>New York Stock Exchange LLC,</SJDOC>
          <PGS>10581-10584</PGS>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-4080</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>New York Stock Exchange LLC; NYSE Amex LLC,</SJDOC>
          <PGS>10586-10589</PGS>
          <FRDOCBP D="3" T="22FEN1.sgm">2012-4003</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NYSE Amex LLC,</SJDOC>
          <PGS>10584-10586</PGS>
          <FRDOCBP D="2" T="22FEN1.sgm">2012-4079</FRDOCBP>
        </SJDENT>
        <SJ>Suspension of Trading Orders:</SJ>
        <SJDENT>
          <SJDOC>BIOTECH Holdings Ltd., California Oil and Gas Corp., Central Minera Corp., et al.,</SJDOC>
          <PGS>10598</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4195</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>State Department</EAR>
      <HD>State Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Culturally Significant Objects Imported for Exhibition; Determinations:</SJ>
        <SJDENT>
          <SJDOC>Elegance and Refinement; The Still-Life Paintings of Willem van Aelst,</SJDOC>
          <PGS>10599</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4112</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Surface Transportation</EAR>
      <HD>Surface Transportation Board</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Abandonment Exemptions:</SJ>
        <SJDENT>
          <SJDOC>CSX Transportation, Inc., Vermillion County, IL,</SJDOC>
          <PGS>10617</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-3915</FRDOCBP>
        </SJDENT>
        <SJ>Acquisition and Operation Exemptions:</SJ>
        <SJDENT>
          <SJDOC>Wellsboro and Corning Railroad, LLC, from Wellsboro and Corning Railroad Co.,</SJDOC>
          <PGS>10617-10618</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-3944</FRDOCBP>
        </SJDENT>
        <SJ>Control Exemptions:</SJ>
        <SJDENT>
          <SJDOC>Eric Temple; Portland Vancouver Junction Railroad, LLC,</SJDOC>
          <PGS>10618</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-3941</FRDOCBP>
        </SJDENT>
        <SJ>Petitions for Declaratory Orders:</SJ>
        <SJDENT>
          <SJDOC>Western Coal Traffic League; Public Hearing,</SJDOC>
          <PGS>10618-10619</PGS>
          <FRDOCBP D="1" T="22FEN1.sgm">2012-4049</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Susquehanna</EAR>
      <HD>Susquehanna River Basin Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Meetings,</DOC>
          <PGS>10599</PGS>
          <FRDOCBP D="0" T="22FEN1.sgm">2012-4027</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Transportation Department</EAR>
      <PRTPAGE P="vii"/>
      <HD>Transportation Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Aviation Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Highway Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Motor Carrier Safety Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>National Highway Traffic Safety Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Research and Innovative Technology Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Surface Transportation Board</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Treasury</EAR>
      <HD>Treasury Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Internal Revenue Service</P>
      </SEE>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Duty-Free Treatment of Certain Visual and Auditory Materials,</DOC>
          <PGS>10368-10369</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-4091</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Changes to In-Bond Process,</DOC>
          <PGS>10622-10648</PGS>
          <FRDOCBP D="26" T="22FEP2.sgm">2012-2819</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Customs</EAR>
      <HD>U.S. Customs and Border Protection</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Duty-Free Treatment of Certain Visual and Auditory Materials,</DOC>
          <PGS>10368-10369</PGS>
          <FRDOCBP D="1" T="22FER1.sgm">2012-4091</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Changes to In-Bond Process,</DOC>
          <PGS>10622-10648</PGS>
          <FRDOCBP D="26" T="22FEP2.sgm">2012-2819</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <PTS>
      <HD SOURCE="HED">Separate Parts In This Issue</HD>
      <HD>Part II</HD>
      <DOCENT>
        <DOC>Homeland Security Department, U.S. Customs and Border Protection,</DOC>
        <PGS>10622-10648</PGS>
        <FRDOCBP D="26" T="22FEP2.sgm">2012-2819</FRDOCBP>
      </DOCENT>
      <DOCENT>
        <DOC>Treasury Department,</DOC>
        <PGS>10622-10648</PGS>
        <FRDOCBP D="26" T="22FEP2.sgm">2012-2819</FRDOCBP>
      </DOCENT>
    </PTS>
    <AIDS>
      <HD SOURCE="HED">Reader Aids</HD>
      <P>Consult the Reader Aids section at the end of this page for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.</P>
      
      <P>To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions.</P>
    </AIDS>
  </CNTNTS>
  <VOL>77</VOL>
  <NO>35</NO>
  <DATE>Wednesday, February 22, 2012</DATE>
  <UNITNAME>Rules and Regulations</UNITNAME>
  <RULES>
    <RULE>
      <PREAMB>
        <PRTPAGE P="10351"/>
        <AGENCY TYPE="F">FEDERAL HOUSING FINANCE AGENCY</AGENCY>
        <DEPDOC>[No. 2012-N-01]</DEPDOC>
        <CFR>12 CFR Chapter XII</CFR>
        <SUBJECT>Regulatory Review Plan</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Housing Finance Agency.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of final regulatory review plan.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Federal Housing Finance Agency (FHFA) is issuing a notice of the final FHFA regulatory review plan for review of existing regulations under Executive Order 13579, “Regulation and Independent Regulatory Agencies,” (July 11, 2011).</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>The effective date of this document is April 23, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Alfred M. Pollard, General Counsel,<E T="03">alfred.pollard@fhfa.gov,</E>telephone (202) 649-3050 (not a toll-free number), Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. The telephone number for the Telecommunications Device for the Deaf is (800) 877-8339.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. Background</HD>
        <HD SOURCE="HD2">Executive Order 13579</HD>
        <P>Executive Order 13579, “Regulation and Independent Regulatory Agencies,” (July 11, 2011), requests that each independent regulatory agency, such as FHFA, analyze its existing regulations and modify, streamline, expand, or repeal them in accordance with the findings of the analysis. Executive Order 13579 also requests each independent regulatory agency to make public a plan under which the agency will periodically review its existing significant regulations to make the agency's regulatory program more effective or less burdensome in achieving regulatory objectives.</P>
        <HD SOURCE="HD2">Establishment of FHFA; Transfer and Review of Regulations</HD>
        <P>The Housing and Economic Recovery Act of 2008 (HERA) established FHFA on July 30, 2008, as an independent regulatory agency to supervise and regulate the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Banks (collectively, regulated entities), and the Office of Finance of the Federal Home Loan Bank System. HERA transferred to the new agency the employees, functions, and regulations of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB), and the Government-Sponsored Enterprise mission team within the U.S. Department of Housing and Urban Development (HUD).</P>
        <P>HERA and, most recently, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) mandate that FHFA issue new regulations on specific matters in connection with FHFA's supervision and regulation of the regulated entities and the Office of Finance. Currently, in determining whether to revise, adopt without change, or repeal transferred OFHEO, FHFB, and certain HUD regulations, FHFA reviews such regulations to determine the appropriate action and publishes the regulations for comment. Public comments provide additional information to FHFA on how to make the regulations more effective and less burdensome.</P>
        <HD SOURCE="HD2">Regulatory Review Plan Under Executive Order 13579</HD>

        <P>FHFA's current review of OFHEO, FHFB, and certain HUD regulations is similar to the review it will conduct of existing regulations under Executive Order 13579. The regulatory review plan is set forth below. FHFA will conduct the review of its existing regulations under Executive Order 13579 at least every five years. In light of the recent establishment of FHFA and ongoing regulatory activities mandated by HERA and the Dodd-Frank Act, the first review will begin no later than August 2013, five years after the establishment of FHFA. FHFA regulations published in Chapter XII of Title 12 of the<E T="03">Code of Federal Regulations</E>and are also posted on the FHFA Internet Web site at<E T="03">http://www.fhfa.gov</E>.</P>
        <HD SOURCE="HD1">II. Notice of Regulatory Review Plan</HD>
        <P>FHFA published a notice of its interim regulatory review plan and requested comments on the plan. 76 FR 59066 (September 23, 2011). FHFA received no comments. FHFA is adopting as final the interim regulatory review plan without change. The final regulatory review plan follows.</P>
        <HD SOURCE="HD2">Plan for Review of Existing Regulations Under Executive Order 13579</HD>
        <P>a.<E T="03">Scope and timing of regulatory reviews.</E>At least every five years, FHFA will conduct a review of the regulations it has issued and that are in effect. The first regulatory review will begin no later than August 2013.</P>
        <P>b.<E T="03">Factors considered in the regulatory reviews.</E>The regulatory reviews will take into consideration the following factors, as applicable:</P>
        <P>(1) Legal or regulatory developments, including new laws, executive orders, or judicial decisions that have been adopted since the promulgation of a regulation that make such regulation inefficient, obsolete, contrary to controlling legal precedent, or unduly burdensome;</P>
        <P>(2) Application by Fannie Mae, Freddie Mac, or a Federal Home Loan Bank (regulated entity) or the Office of Finance of the Federal Home Loan Bank System for revision of a regulation because of reasonably discernible regulatory burden or inefficiency;</P>
        <P>(3) Marketplace developments, technological evolution and related changes that may have rendered an existing regulation, in whole or in part, inefficient, outmoded, or outdated;</P>
        <P>(4) Such other occurrences or developments as determined by FHFA to be relevant to a review for inefficiency or unwarranted regulatory burden;</P>
        <P>(5) Whether the provisions of the regulation are written in plain language or otherwise need clarification;</P>
        <P>(6) Compelling evidence that a consolidation of two or more regulations, elimination of a duplicative regulation, or other revision to regulatory requirements would facilitate compliance by or supervision of a regulated entity or the Office of Finance;</P>

        <P>(7) A demonstration of a better alternative method to effect a regulatory<PRTPAGE P="10352"/>purpose or requirement supported by compelling evidence of significantly less intrusive means or of a substantially more efficient method of accomplishing the same supervisory purpose; and</P>
        <P>(8) Such other factors as determined by FHFA to be relevant to determining and evaluating the need for and effectiveness of a particular regulation.</P>
        <P>c.<E T="03">Regulatory review process.</E>—(1) The regulatory reviews will be conducted by the FHFA Office of General Counsel, under the direction of the General Counsel, and will include internal consultation with other FHFA offices and staff, guidance provided by the FHFA Director, as well as consideration of public comments.</P>
        <P>(2) A review and report of findings and recommendations will be provided to the FHFA Director on a timely basis. The report of findings and recommendations will be privileged and confidential.</P>
        <P>(3) After receiving the report of findings and recommendations, the FHFA Director will determine what steps may be necessary to relieve any unnecessary burden, including amendment to or repeal of existing regulations or issuance of less formal guidance.</P>
        <P>d.<E T="03">No right of action.</E>The regulatory reviews are not formal or informal rulemaking proceedings under the Administrative Procedure Act and create no right of action against FHFA. Moreover, the determination of FHFA to conduct or not to conduct a review of a regulation and any determination, finding, or recommendation resulting from any review are not final agency actions and, as such, are not subject to judicial review.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Edward J. DeMarco,</NAME>
          <TITLE>Acting Director, Federal Housing Finance Agency.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4056 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 8070-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2010-0956; Directorate Identifier 2010-NM-018-AD; Amendment 39-16951; AD 74-08-09 R3]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; Various Transport Category Airplanes</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We are revising an existing airworthiness directive (AD) for transport category airplanes that have one or more lavatories equipped with paper or linen waste receptacles. That AD currently requires installation of placards prohibiting smoking in the lavatory and disposal of cigarettes in the lavatory waste receptacles; establishment of a procedure to announce to airplane occupants that smoking is prohibited in the lavatories; installation of ashtrays at certain locations; and repetitive inspections to ensure that lavatory waste receptacle doors operate correctly. This new AD extends the time an airplane may be operated with certain missing ashtrays. This AD was prompted by the determination that certain compliance times required by the existing AD could be extended and still address fires occurring in lavatories caused by, among other things, the improper disposal of smoking materials in lavatory waste receptacles. We are issuing this AD to correct this unsafe condition on these products.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This AD is effective March 28, 2012.</P>
        </EFFDATE>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (phone: 800-647-5527) is Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Alan Sinclair, Aerospace Engineer, Airframe/Cabin Safety Branch, ANM-115, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-227-2195; fax: 425-227-1232.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Discussion</HD>

        <P>We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to revise AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996). That AD applies to the specified products. The NPRM published in the<E T="04">Federal Register</E>on October 6, 2010 (75 FR 61657). That NPRM proposed to continue to require installation of placards prohibiting smoking in the lavatory and disposal of cigarettes in the lavatory waste receptacles; establishment of a procedure to announce to airplane occupants that smoking is prohibited in the lavatories; installation of ashtrays at certain locations; and repetitive inspections to ensure that lavatory waste receptacle doors operate correctly. That NPRM also proposed to extend the time an airplane may be operated with certain missing ashtrays.</P>
        <HD SOURCE="HD1">Comments</HD>
        <P>We gave the public the opportunity to participate in developing this AD. The following presents the comments received on the NPRM (75 FR 61657, October 6, 2010) proposal and the FAA's response to each comment.</P>
        <HD SOURCE="HD1">Support for the NPRM</HD>
        <P>Air Line Pilots Association, International (ALPA), Boeing, and Air Transport Association (ATA) supported the intent of the NPRM (75 FR 61657, October 6, 2010).</P>
        <HD SOURCE="HD1">Request to Credit MPD Task Cards</HD>
        <P>MNG Airlines reported that some airplane manufacturers' maintenance planning documents (MPDs) include the requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996), in a task card, which the operators add to their own MPDs for their fleet. The commenter requested that we revise the NPRM (75 FR 61657, October 6, 2010) by indicating that, if a manufacturer's and operator's MPDs cover a task card, the AD requirements are automatically satisfied.</P>
        <P>We disagree with the request. Operators determine how to track the implementation and compliance of the AD requirements for their fleet. We do not consider it appropriate to include AD provisions that apply only to certain operators. It is not necessary to change the final rule to include this provision.</P>
        <HD SOURCE="HD1">Request To Clarify Relief Provisions</HD>

        <P>ATA recommended that we simplify and clarify the proposed relief provisions for airplanes having multiple lavatory doors. For those airplanes, ATA recommended that we revise the NPRM (75 FR 61657, October 6, 2010) to provide MMEL (Master Minimum Equipment List) relief for up to—and including—50 percent of the ashtrays for 10 days. (The NPRM specified only “up to” 50 percent of the ashtrays.) ATA noted that this recommendation would (1) Remove the proposed requirement to replace half of the missing ashtrays within 3 days; (2) provide a level of safety equal to or exceeding the level proposed for airplanes having only one<PRTPAGE P="10353"/>lavatory door; (3) simplify the management and oversight of MMEL relief by operators and FAA inspectors; and (4) clarify that the phrase “up to” includes 50 percent, which would eliminate differing interpretations.</P>
        <P>We have reviewed the ATA proposal. While we agree that the proposal has merit, we find that it does not account for all possible scenarios. Paragraph (j) of the AD allows 3 days to install any ashtrays if more than 50 percent of the ashtrays are missing. The commenter's proposed change, on the other hand, could ground airplanes: If, for example, 2 of 2 ashtrays are missing, 1 ash tray must be installed before further flight. We have therefore not changed the final rule regarding this issue. But, according to the provisions of paragraph (m) of this AD, we may approve requests to adjust the compliance schedule if the request includes data substantiating that the new schedule would provide an acceptable level of safety.</P>
        <HD SOURCE="HD1">Request To Revise Compliance Time</HD>
        <P>Thomas Edward Young requested that we clarify paragraph (j) of the NPRM (75 FR 61657, October 6, 2010) to address the case of a single ashtray missing on an airplane with multiple lavatory door ashtrays. Mr. Young provided alternative text to address this situation.</P>
        <P>We disagree with the request. Paragraph (j) of this AD adequately covers the scenario described by the commenter. We have not changed the final rule regarding this issue.</P>
        <HD SOURCE="HD1">Request To Clarify Proposed Changes</HD>
        <P>ALPA requested clarification of the relief proposed in the NPRM (75 FR 61657, October 6, 2010) for two possible scenarios.</P>
        <P>First, ALPA was concerned about possible confusion of the AD requirements for airplanes with an odd number of multiple lavatory doors with missing or inoperative ashtrays. In this case, the 50 percent criteria specified in the AD would result in a fractional number. ALPA therefore suggested that we revise the NPRM (75 FR 61657, October 6, 2010) to ensure that a fractional number of ashtrays be rounded to the next higher whole number.</P>
        <P>Second, ALPA noted that, if there are groups of lavatories in multiple locations throughout an airplane, compliance with the proposed requirements aircraft-wide could result in all of the ashtrays in a group being missing or inoperative. To ensure that the required extinguishing capability is retained, ALPA therefore recommended an additional requirement to ensure that at least one lavatory door in each group of lavatories has a serviceable ashtray.</P>
        <P>We disagree with the requests, although we considered both recommendations during the drafting of this revision of the AD. We determined that the commenter's first recommendation (to address airplanes with an odd number of missing ashtrays) would have only added to the complexity of the AD. If the calculation of ashtrays needing to be replaced results in a fractional number, operators will need to round up this figure. The only way to replace 2.5 ashtrays, for example, is to replace 3 ashtrays. We find that additional clarification is not necessary.</P>
        <P>We determined that the commenter's second recommendation (to address airplanes with all ashtrays missing in a group of lavatories) would have resulted in confusing and overly complicated requirements. The AD's more simplified approach adequately addresses the unsafe condition.</P>
        <P>We have not changed the AD regarding these issues.</P>
        <HD SOURCE="HD1">Conclusion</HD>
        <P>We reviewed the relevant data, considered the comments received, and determined that air safety and the public interest require adopting the AD as proposed.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>This action merely extends a certain compliance time and does not add any new additional economic burden on affected operators. The relief provided by this AD allows operators to continue to operate airplanes without the required number of ashtrays for a longer period of time than was previously permitted. This results in reduced costs to affected operators since it reduces the potential interruptions in service to reinstall the ashtrays. The current costs associated with this AD are provided below for the convenience of affected operators. The following table provides the estimated costs for U.S. operators to comply with this AD.</P>
        <GPOTABLE CDEF="s60,6,10,r50,r60" COLS="05" OPTS="L2,i1">
          <TTITLE>Estimated Costs</TTITLE>
          <BOXHD>
            <CHED H="1">Action</CHED>
            <CHED H="1">Work hours</CHED>
            <CHED H="1">Average labor rate per hour</CHED>
            <CHED H="1">Parts</CHED>
            <CHED H="1">Cost per airplane</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Placard installations</ENT>
            <ENT>1</ENT>
            <ENT>$85</ENT>
            <ENT>Negligible</ENT>
            <ENT>$85.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Inspections</ENT>
            <ENT>2</ENT>
            <ENT>85</ENT>
            <ENT>0</ENT>
            <ENT>$170 per inspection cycle.</ENT>
          </ROW>
        </GPOTABLE>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify that this AD:</P>
        <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
        <P>(2) Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),</P>
        <P>(3) Will not affect intrastate aviation in Alaska, and</P>
        <P>(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <LSTSUB>
          <PRTPAGE P="10354"/>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Adoption of the Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
        <REGTEXT PART="39" TITLE="14">
          <PART>
            <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="39" TITLE="14">
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>2. The FAA amends § 39.13 by removing airworthiness directive (AD) 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996), and adding the following new AD:</AMDPAR>
          
          <EXTRACT>
            <FP SOURCE="FP-2">
              <E T="04">74-08-09 R3Transport category airplanes:</E>Amendment 39-16951; Docket No. FAA-2010-0956; Directorate Identifier 2010-NM-018-AD.</FP>
            <HD SOURCE="HD1">(a) Effective Date</HD>
            <P>This airworthiness directive (AD) is effective March 28, 2012.</P>
            <HD SOURCE="HD1">(b) Affected ADs</HD>
            <P>This AD revises AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996).</P>
            <HD SOURCE="HD1">(c) Applicability</HD>
            <P>This AD applies to transport category airplanes, certificated in any category, that have one or more lavatories equipped with paper or linen waste receptacles. These lavatories may be on various airplanes, identified in but not limited to the airplanes of the manufacturers included in table 1 of this AD.</P>
            <GPOTABLE CDEF="s150" COLS="01" OPTS="L2,i1">
              <TTITLE>Table 1—Affected Airplanes</TTITLE>
              <BOXHD>
                <CHED H="1">Airplane manufacturer</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">328 Support Services GmbH (Type Certificate previously held by AvCraft Aerospace GmbH; Fairchild Dornier GmbH; Dornier Luftfahrt GmbH).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">AEROSPATIALE (Societe Nationale Industrielle Aerospatiale).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Airbus.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">ATR—GIE Avions de Transport Régional.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">BAE Systems (Operations) Limited.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">The Boeing Company.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Bombardier, Inc.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">British Aerospace Regional Aircraft.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Cessna Aircraft Company.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">DASSAULT AVIATION.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">EADS CASA (Type Certificate previously held by Construcciones Aeronauticas, S.A.).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Empresa Brasileira de Aeronautica S.A. (EMBRAER).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Fokker Services B.V.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Gulfstream Aerospace Corporation.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Gulfstream Aerospace LP (Type Certificate previously held by Israel Aircraft Industries, Ltd.).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Hamburger Flugzeugbau GmbH.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Hawker Beechcraft Corporation (Type Certificate previously held by Raytheon Aircraft Company; Beech Aircraft Corporation).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Israel Aircraft Industries, Ltd.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Learjet Inc.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Lockheed Aircraft Corporation.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Lockheed Martin Corporation/Lockheed Martin Aeronautics Company.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Maryland Air Industries, Inc.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">McDonnell Douglas Corporation.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Mitsubishi Heavy Industries, Ltd.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Saab AB, Saab Aerosystems.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Sabreliner Corporation.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Short Brothers PLC.</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Vickers-Armstrongs (Aircraft Limited).</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Viking Air Limited (Type Certificate previously held by Bombardier, Inc.)</ENT>
              </ROW>
            </GPOTABLE>
            <HD SOURCE="HD1">(d) Subject</HD>
            <P>Air Transport Association (ATA) of America Code 25: Equipment/furnishings.</P>
            <HD SOURCE="HD1">(e) Unsafe Condition</HD>
            <P>This revision to the AD (AD 74-08-09 R2 (61 FR 32318, June 24, 1996)) was prompted by the determination that certain compliance times required by the existing AD may be extended and still address fires occurring in lavatories caused by, among other things, the improper disposal of smoking materials in lavatory waste receptacles. This revision to the AD would continue to prevent possible fires that could result from smoking materials being dropped into lavatory paper or linen waste receptacles.</P>
            <HD SOURCE="HD1">(f) Compliance</HD>
            <P>You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done.</P>
            <HD SOURCE="HD1">(g) Restatement of Requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996): Placard Installation</HD>
            <P>Within 60 days after August 6, 1974 (the effective date of AD 74-08-09, Amendment 39-1917 (39 FR 28229, August 6, 1974)), or before the accumulation of any time in service on a new production aircraft after delivery, whichever occurs later—except that new production aircraft may be flown in accordance with sections 21.197 and 21.199 of the Federal Aviation Regulations (14 CFR 21.197 and 21.199) to a base where compliance may be accomplished: Accomplish the requirements of paragraphs (g)(1) and (g)(2) of this AD.</P>
            <P>(1) Install a placard on each side of each lavatory door over the door knob, or on each side of each lavatory door, or adjacent to each side of each lavatory door. The placards must contain the legible words “No Smoking in Lavatory” or “No Smoking,” or contain “No Smoking” symbology in lieu of words, or contain both wording and symbology, to indicate that smoking is prohibited in the lavatory. The placards must be of sufficient size and contrast and be located so as to be conspicuous to lavatory users. And</P>
            <P>(2) Install a placard on or near each lavatory paper or linen waste disposal receptacle door, containing the legible words or symbology indicating “No Cigarette Disposal.”</P>
            <HD SOURCE="HD1">(h) Restatement of Requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996): Announcement Procedures</HD>
            <P>Within 30 days after August 6, 1974 (the effective date of AD 74-08-09, Amendment 39-1917 (39 FR 28229, August 6, 1974)), establish a procedure that requires that, no later than a time immediately after the “No Smoking” sign is extinguished following takeoff, an announcement be made by a crewmember to inform all aircraft occupants that smoking is prohibited in the aircraft lavatories; except that, if the aircraft is not equipped with a “No Smoking” sign, the required procedure must provide that the announcement be made prior to each takeoff.</P>
            <HD SOURCE="HD1">(i) Restatement of Requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996): Ashtray Installation</HD>
            <P>Except as provided by paragraph (j) of this AD: Within 180 days after August 6, 1974 (the effective date of AD 74-08-09, Amendment 39-1917 (39 FR 28229, August 6, 1974)), or before the accumulation of any time in service on a new production aircraft, whichever occurs later—except that new production aircraft may be flown in accordance with sections 21.197 and 21.199 of the Federal Aviation Regulations (14 CFR 21.197 and 21.199) to a base where compliance may be accomplished: Install a self-contained, removable ashtray on or near the entry side of each lavatory door. One ashtray may serve more than one lavatory door if the ashtray can be seen readily from the cabin side of each lavatory door served.</P>
            <HD SOURCE="HD1">(j) Restatement of Requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996), with Revised Compliance Times: Allowances for Partial Replacement</HD>
            <P>An airplane with multiple lavatory doors may be operated with up to 50 percent of the lavatory door ashtrays missing or inoperative, provided 50 percent of the missing or inoperative ashtrays are replaced within 3 days and all remaining missing or inoperative ashtrays are replaced within 10 days. An airplane with only 1 lavatory door may be operated for a period of 10 days with the lavatory door ashtray missing or inoperative.</P>
            <NOTE>
              <HD SOURCE="HED">Note 1 to paragraph (j) of this AD:</HD>
              <P>This AD permits a lavatory door ashtray to be missing, although the FAA-approved Master Minimum Equipment List (MMEL) may not allow such provision. In any case, the provisions of this AD prevail.</P>
            </NOTE>
            <HD SOURCE="HD1">(k) Restatement of Requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996): Inspections</HD>

            <P>Within 30 days after August 6, 1974 (the effective date of AD 74-08-09, Amendment<PRTPAGE P="10355"/>39-1917 (39 FR 28229, August 6, 1974)), and thereafter at intervals not to exceed 1,000 hours' time-in-service from the last inspections, accomplish the following:</P>
            <P>(1) Inspect all lavatory paper and linen waste receptacle enclosure access doors and disposal doors for proper operation, fit, sealing, and latching for the containment of possible trash fires.</P>
            <P>(2) Correct all defects found during the inspections required by paragraph (k)(1) of this AD.</P>
            <HD SOURCE="HD1">(l) Restatement of Requirements of AD 74-08-09 R2, Amendment 39-9680 (61 FR 32318, June 24, 1996): Adjustments to Inspection Intervals</HD>
            <P>Upon the request of an operator, the FAA Principal Maintenance Inspector (PMI) may adjust the 1,000-hour repetitive inspection interval specified in paragraph (k) of this AD to permit compliance at an established inspection period of the operator if the request contains data to justify the requested change in the inspection interval.</P>
            <HD SOURCE="HD1">(m) Alternative Methods of Compliance (AMOCs)</HD>
            <P>(1) The Manager, Airframe/Cabin Safety Branch, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the ACO, send it to the attention of the person identified in the Related Information section of this AD.</P>
            <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
            <HD SOURCE="HD1">(n) Related Information</HD>

            <P>For more information about this AD, contact Alan Sinclair, Aerospace Engineer, Airframe/Cabin Safety Branch, ANM-115, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-227-2195; fax: 425-227-1232; email:<E T="03">alan.sinclair@faa.gov.</E>
            </P>
            <HD SOURCE="HD1">(o) Material Incorporated by Reference</HD>
            <P>None.</P>
          </EXTRACT>
        </REGTEXT>
        <SIG>
          <DATED>Issued in Renton, Washington, on January 27, 2012.</DATED>
          <NAME>Kalene C. Yanamura,</NAME>
          <TITLE>Acting Manager, Transport Airplane Directorate, Aircraft Certification Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3973 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2010-0755; Directorate Identifier 2010-NE-12-AD; Amendment 39-16956; AD 2012-04-01]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; Rolls-Royce plc (RR) RB211-Trent 800 Series Turbofan Engines</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We are superseding an existing airworthiness directive (AD) for all RR RB211-Trent 800 series turbofan engines. That AD currently requires removal from service of certain critical engine parts based on reduced life limits. This new AD reduces the life limits of additional critical engine parts. This AD was prompted by RR reducing the life limits of additional critical engine parts. We are issuing this AD to prevent the failure of critical rotating parts, which could result in uncontained failure of the engine and damage to the airplane.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This AD is effective March 28, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>For service information identified in this AD, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, England, DE248BJ; phone: 011-44-1332-242424; fax: 011-44-1332-245418 or email from<E T="03">http://www.rolls-royce.com/contact/civil_team.jsp,</E>or download the publication from<E T="03">https://www.aeromanager.com.</E>You may review copies of the referenced service information at the FAA, Engine &amp; Propeller Directorate, 12 New England Executive Park, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (phone: 800-647-5527) is Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Alan Strom, Aerospace Engineer, Engine Certification Office, FAA, Engine &amp; Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7143; fax: 781-238-7199; email:<E T="03">alan.strom@faa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Discussion</HD>

        <P>We issued a supplemental notice of proposed rulemaking (SNPRM) to amend 14 CFR part 39 to supersede airworthiness directive (AD) 2003-16-18, amendment 39-13271 (68 FR 49344, August 18, 2003). That AD applies to the specified products. That SNPRM published in the<E T="04">Federal Register</E>on November 7, 2011 (76 FR 68663). The original NPRM (75 FR 45560, August 3, 2010) proposed to revise the Trent 800 Time limits Manual (TLM) of the Trent 800 engine maintenance manuals (EMMs). The SNPRM proposed to prohibit installation of one certain critical part and to increase the life of another critical part whose lives were previously reduced by that existing AD.</P>
        <HD SOURCE="HD1">Comments</HD>
        <P>We gave the public the opportunity to participate in developing this AD. We received no comments on the SNPRM (76 FR 68663, November 7, 2011).</P>
        <HD SOURCE="HD1">Conclusion</HD>
        <P>We reviewed the relevant data and determined that air safety and the public interest require adopting the AD as proposed.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>Based on the service information, we estimate that this AD affects about 16 RB211-Trent 800 series turbofan engines of U.S. registry. The average labor rate is $85 per work-hour, but no labor cost is associated with this AD because discs are replaced at scheduled maintenance intervals. Prorated cost of parts cost about $45,000 per engine. Based on these figures, we estimate the cost of the AD on U.S. operators to be $720,000.</P>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>

        <P>We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701:<PRTPAGE P="10356"/>“General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify that this AD:</P>
        <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
        <P>(2) Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),</P>
        <P>(3) Will not affect intrastate aviation in Alaska, and</P>
        <P>(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Adoption of the Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
        <REGTEXT PART="39" TITLE="14">
          <PART>
            <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="39" TITLE="14">
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>2. The FAA amends § 39.13 by removing airworthiness directive (AD) 2003-16-18, Amendment 39-13271 (68 FR 49344, August 18, 2003) and adding the following new AD:</AMDPAR>
          
          <EXTRACT>
            <FP SOURCE="FP-2">
              <E T="04">2012-04-01Rolls-Royce plc:</E>Amendment 39-16956; Docket No. FAA-2010-0755; Directorate Identifier 2010-NE-12-AD.</FP>
            <HD SOURCE="HD1">(a) Effective Date</HD>
            <P>This AD is effective March 28, 2012.</P>
            <HD SOURCE="HD1">(b) Affected ADs</HD>
            <P>This AD supersedes AD 2003-16-18, Amendment 39-13271 (68 FR 49344, August 18, 2003).</P>
            <HD SOURCE="HD1">(c) Applicability</HD>
            <P>This AD applies to Rolls-Royce plc (RR) RB211-Trent 895-17, 892-17, 892B-17, 884-17, 884B-17, 877-17, and 875-17 turbofan engines.</P>
            <HD SOURCE="HD1">(d) Unsafe Condition</HD>
            <P>This AD was prompted by RR reporting changes to the lives of certain life-limited rotating parts. We are issuing this AD to prevent the failure of critical rotating parts, which could result in uncontained failure of the engine and damage to the airplane.</P>
            <HD SOURCE="HD1">(e) Actions and Compliance</HD>
            <P>Compliance is required within 30 days after the effective date of this AD, unless already done.</P>
            <P>(1) After the effective date of this AD, remove from service the parts listed in Table 1 of this AD before exceeding the new life limit indicated:</P>
            <GPOTABLE CDEF="s100,13,13,13" COLS="4" OPTS="L2,i1">
              <TTITLE>Table 1—Reduced Part Lives</TTITLE>
              <BOXHD>
                <CHED H="1">Part nomenclature</CHED>
                <CHED H="1">Part No.<LI>(P/N)</LI>
                </CHED>
                <CHED H="1">Life in standard duty cycles</CHED>
                <CHED H="1">Life in cycles using the HEAVY profile</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">(i) Intermediate-pressure (IP) Compressor Rotor Shaft</ENT>
                <ENT>FK24100</ENT>
                <ENT>8,140</ENT>
                <ENT>8,140</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(ii) IP Compressor Rotor Shaft</ENT>
                <ENT>FK24496</ENT>
                <ENT>8,860</ENT>
                <ENT>8,180</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(iii) High-pressure (HP) Compressor Stage 1 to 4 Rotor Discs Shaft</ENT>
                <ENT>FK24009</ENT>
                <ENT>4,560</ENT>
                <ENT>4,460</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(iv) HP Compressor Stage 1 to 4 Rotor Discs Shaft</ENT>
                <ENT>FK26167</ENT>
                <ENT>6,340</ENT>
                <ENT>6,000</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(v) HP Compressor Stage 1 to 4 Rotor Discs Shaft</ENT>
                <ENT>FK32580</ENT>
                <ENT>8,550</ENT>
                <ENT>6,850</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(vi) HP Compressor Stage 1 to 4 Rotor Discs Shaft</ENT>
                <ENT>FW11590</ENT>
                <ENT>8,550</ENT>
                <ENT>6,850</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(vii) HP Compressor Stage 1 to 4 Rotor Discs Shaft</ENT>
                <ENT>FW61622</ENT>
                <ENT>8,550</ENT>
                <ENT>6,850</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(viii) HP Compressor Stage 5 and 6 Discs and Cone</ENT>
                <ENT>FK25230</ENT>
                <ENT>5,000</ENT>
                <ENT>5,000</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(ix) HP Compressor Stage 5 and 6 Discs and Cone</ENT>
                <ENT>FK27899</ENT>
                <ENT>5,000</ENT>
                <ENT>5,000</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(x) IP Turbine Rotor Disc</ENT>
                <ENT>FK21117</ENT>
                <ENT>11,610</ENT>
                <ENT>10,400</ENT>
              </ROW>
              <ROW>
                <ENT I="01">(xi) IP Turbine Rotor Disc</ENT>
                <ENT>FK33083</ENT>
                <ENT>0</ENT>
                <ENT>0</ENT>
              </ROW>
            </GPOTABLE>
            <HD SOURCE="HD1">(f) Installation Prohibition</HD>
            <P>After the effective date of this AD, do not install any IP turbine rotor discs, P/N FK33083, into any engine.</P>
            <HD SOURCE="HD1">(g) Alternative Methods of Compliance (AMOCs)</HD>
            <P>The Manager, Engine Certification Office, FAA, may approve AMOCs to this AD. Use the procedures found in 14 CFR 39.19 to make your request.</P>
            <HD SOURCE="HD1">(h) Related Information</HD>
            <P>(1) You may find additional information on calculating Standard Duty Cycles and/or using HEAVY Profile Cycles, in RR Time Limits Manual 05-00-01-800-801, Recording and Control of the Lives of Parts.</P>

            <P>(2) For more information about this AD, contact Alan Strom, Aerospace Engineer, Engine Certification Office, FAA, Engine &amp; Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7143; fax: 781-238-7199; email:<E T="03">alan.strom@faa.gov.</E>
            </P>
            <P>(3) Refer to European Aviation Safety Agency Airworthiness Directive 2007-0003R1, dated January 15, 2009, and RR Alert Service Bulletin No. RB.211-72-AE935, Revision 7, dated January 19, 2009, for related information.</P>

            <P>(4) For service information identified in this AD, contact Rolls-Royce plc, Corporate Communications, P.O. Box 31, Derby, DE24 8BJ, United Kingdom; phone: 011-44-1332-242424; fax: 011-44-1332-249936; email from<E T="03">http://www.rolls-royce.com/contact/civil_team.jsp;</E>or Web:<E T="03">https://www.aeromanager.com.</E>
            </P>
            <HD SOURCE="HD1">(i) Material Incorporated by Reference</HD>
            <P>None.</P>
          </EXTRACT>
        </REGTEXT>
        <SIG>
          <DATED>Issued in Burlington, Massachusetts, on February 10, 2012.</DATED>
          <NAME>Peter A. White,</NAME>
          <TITLE>Manager, Engine &amp; Propeller Directorate, Aircraft Certification Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3863 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <PRTPAGE P="10357"/>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>Bureau of Industry and Security</SUBAGY>
        <CFR>15 CFR Parts 730 and 744</CFR>
        <DEPDOC>[Docket No. 120124063-0261-01]</DEPDOC>
        <RIN>RIN 0694-AF55</RIN>
        <SUBJECT>Updated Statements of Legal Authority To Reflect Continuation of Emergency Declared in Executive Orders 12947 and 13224</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Bureau of Industry and Security, Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>This rule updates the Code of Federal Regulations (CFR) legal authority citations for the Export Administration Regulations (EAR) to replace citations to the President's Notice of January 13, 2011,<E T="03">Continuation of the National Emergency with Respect to Terrorists Who Threaten to Disrupt the Middle East Peace Process,</E>with citations to the President's Notice of January 12, 2012, and add citations to the President's Notice of September 21, 2011,<E T="03">Continuation of the National Emergency With Respect to Persons Who Commit, Threaten to Commit, or Support Terrorism.</E>These notices are the most recent such annual Presidential notices on those subjects. BIS is making these changes to keep the CFR's legal authority citations for the EAR current.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>February 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>William Arvin, Regulatory Policy Division, Bureau of Industry and Security, telephone: (202) 482-2440.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Addition of Citation to the Notice of January 19, 2012</HD>
        <P>In Executive Order 12947 of January 13, 1995 (60 FR 5079, 3 CFR, 1995 Comp., p. 356), the President declared a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy and economy of the United States posed by grave acts of violence committed by terrorists who threaten to disrupt the Middle East process. On August 20, 1998, by Executive Order 13099 (63 FR 45167, 3 CFR, 1998 Comp., p. 208), the President modified the Annex to Executive Order 12947 to identify four additional persons who threaten to disrupt the Middle East peace process. On February 16, 2005, by Executive Order 13372, the President clarified the steps taken in Executive Order 12947. The national emergency declared in Executive Order 12947 has been continued in effect through successive annual presidential notices.</P>
        <P>The authority for Parts 730 and 744 of the EAR (15 CFR parts 730 and 744) rests in part on Executive Order 12947, as amended and clarified, and on the successive annual notices continuing the emergency declared in that Executive Order. This rule revises the authority citation paragraphs in those parts of the CFR to add a citation to the notice of January 19, 2012, which is the most recent such annual Presidential notice, and to remove the citation to the notice of January 13, 2011 on the same topic.</P>
        <HD SOURCE="HD1">Addition of Citation to the Notice of September 21, 2011</HD>

        <P>On September 23, 2001, by Executive Order 13224, the President declared a national emergency with respect to persons who commit, threaten to commit, or support terrorism, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701<E T="03">et seq.</E>). The President took this action to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the grave acts of terrorism and threats of terrorism committed by foreign terrorists, including the terrorist attacks on September 11, 2001.</P>
        <P>The authority for Parts 730 and 744 of the EAR (15 CFR parts 730 and 744) rests in part on Executive Order 13224 and on the successive annual notices continuing the emergency declared in that Executive Order. This rule revises the authority citation paragraphs in those parts of the CFR to cite the notice of September 21, 2011, which is the most recent such annual Presidential notice.</P>
        <P>BIS is making the two revisions described in this rule so that Title 15 of the Code of Federal Regulations will cite the current authorities for the parts mentioned above. This rule is purely procedural and makes no changes other than to revise CFR authority citations paragraphs. It does not change the text of any section of the EAR, nor does it alter any right, obligation or prohibition that applies to any person under the EAR.</P>
        <HD SOURCE="HD1">Rulemaking Requirements</HD>
        <P>1. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). This rule does not impose any regulatory burden on the public and is consistent with the goals of Executive Order 13563. This rule has been determined not to be a significant rule for purposes of Executive Order 12866.</P>

        <P>2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501<E T="03">et seq.,</E>unless that collection of information displays a currently valid Office of Management and Budget (OMB) Control Number. This rule does not involve any collection of information.</P>
        <P>3. This rule does not contain policies with Federalism implications as that term is defined under Executive Order 13132.</P>

        <P>4. The Department finds that there is good cause under 5 U.S.C. 553(b)(3)(B) to waive the provisions of the Administrative Procedure Act requiring prior notice and the opportunity for public comment because they are unnecessary. This rule only updates legal authority citations and is nondiscretionary. This rule does not alter any right, obligation or prohibition that applies to any person under the EAR. Because these revisions are not substantive changes, it is unnecessary to provide notice and opportunity for public comment. In addition, the 30-day delay in effectiveness required by 5 U.S.C. 553(d) is not applicable because this rule is not a substantive rule. Because neither the Administrative Procedure Act nor any other law requires that notice of proposed rulemaking and an opportunity for public comment be given for this rule, the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>) are not applicable.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects</HD>
          <CFR>15 CFR Part 730</CFR>
          <P>Administrative practice and procedure, Advisory committees, Exports, Reporting and recordkeeping requirements, Strategic and critical materials.</P>
          <CFR>15 CFR Part 744</CFR>
          <P>Exports, Reporting and recordkeeping requirements, Terrorism.</P>
        </LSTSUB>
        
        <P>Accordingly, the EAR (15 CFR parts 730-774) is amended as follows:</P>
        <REGTEXT PART="730" TITLE="15">
          <PART>
            <HD SOURCE="HED">PART 730—[AMENDED]</HD>
          </PART>
          <AMDPAR>1. The authority citation for 15 CFR part 730 is revised to read as follows:</AMDPAR>
          <AUTH>
            <PRTPAGE P="10358"/>
            <HD SOURCE="HED">Authority:</HD>
            <P>50 U.S.C. app. 2401<E T="03">et seq.;</E>50 U.S.C. 1701<E T="03">et seq.;</E>10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201<E T="03">et seq.;</E>22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 U.S.C. 7201<E T="03">et seq.;</E>22 U.S.C. 7210; E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p. 256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Notice of August 12, 2011, 76 FR 50661 (August 16, 2011); Notice of September 21, 2011, 76 FR 59001 (September, 22, 2011); Notice of November 9, 2011, 76 FR 70319 (November 10, 2011); Notice of January 19, 2012, 77 FR 3067 (January 20, 2012).</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="744" TITLE="15">
          <PART>
            <HD SOURCE="HED">PART 744—[AMENDED]</HD>
          </PART>
          <AMDPAR>2. The authority citation for 15 CFR part 744 is revised to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>50 U.S.C. app. 2401<E T="03">et seq.;</E>50 U.S.C. 1701<E T="03">et seq.;</E>22 U.S.C. 3201<E T="03">et seq.;</E>42 U.S.C. 2139a; 22 U.S.C. 7201<E T="03">et seq.;</E>22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of August 12, 2011, 76 FR 50661 (August 16, 2011); Notice of September 21, 2011, 76 FR 59001 (September, 22, 2011); Notice of November 9, 2011, 76 FR 70319 (November 10, 2011); Notice of January 19, 2012, 77 FR 3067 (January 20, 2012).</P>
          </AUTH>
        </REGTEXT>
        <SIG>
          <DATED>Dated: February 14, 2012.</DATED>
          <NAME>Kevin J. Wolf,</NAME>
          <TITLE>Assistant Secretary for Export Administration.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4062 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-33-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">CONSUMER PRODUCT SAFETY COMMISSION</AGENCY>
        <CFR>16 CFR Chapter II</CFR>
        <SUBJECT>Acceptance of ASTM F963-11 as a Mandatory Consumer Product Safety Standard</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Consumer Product Safety Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Acceptance of standard.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The Consumer Product Safety Commission (“CPSC,” Commission,” or “we”) is announcing that we have accepted the revised ASTM F963-11 standard titled,<E T="03">Standard Consumer Safety Specifications for Toy Safety.</E>Pursuant to section 106 of the Consumer Product Safety Improvement Act of 2008, ASTM F963-11 will become a mandatory consumer product safety standard effective June 12, 2012.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>ASTM F963-11 will become effective on June 12, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Jonathan Midgett, Ph.D., Office of Hazard Identification and Reduction, U.S. Consumer Product Safety Commission, 4330 East West Highway, Suite 600, Bethesda, MD 20814; telephone (301) 504-7692; email<E T="03">jmidgett@cpsc.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>

        <P>On February 10, 2009, section 106(a) of the Consumer Product Safety Improvement Act of 2008, (CPSIA), Public Law 110-314, made the provisions of ASTM F963-07,<E T="03">Standard Consumer Safety Specifications for Toy Safety</E>(except for section 4.2 and Annex 4 or any provision that restates or incorporates an existing mandatory standard or ban promulgated by the Commission or by statute) mandatory consumer product safety standards under section 9 of the Consumer Product Safety Act (CPSA). On May 13, 2009, the Commission accepted ASTM International (formerly the American Society for Testing and Materials) (ASTM) proposed revisions to the standard, by accepting ASTM F963-08 (except for the removal of section 4.27 of ASTM F963-07, which covers toy chests). The requirements of ASTM F963-08 became effective on August 16, 2009, except for section 4.27 (toy chests) of ASTM F963-07, which was already in effect.</P>

        <P>On December 15, 2011, ASTM officially proposed revisions to the existing standard for Commission consideration, by submitting ASTM F963-11,<E T="03">Standard Consumer Safety Specifications for Toy Safety.</E>ASTM proposes replacing ASTM F963-08 with the revised ASTM F963-11 version. Section 106(g) of the CPSIA provides that, upon ASTM notifying the Commission of proposed revisions to ASTM F963, the Commission must incorporate the revisions into the consumer product safety rule, unless within 90 days of receiving the notice, the Commission notifies ASTM that it has determined that the proposed revisions do not improve the safety of the consumer product(s) covered by the standard. If the Commission so notifies ASTM regarding a proposed revision of the standard, the existing standard remains in effect, regardless of the proposed revision. If the Commission does not object to the proposed revisions, the revised standard becomes effective 180 days after the date that ASTM notifies the Commission of the revision.</P>

        <P>The Commission has determined that the proposed revisions in ASTM F963-11 improve the safety of the consumer products covered by the standard. Therefore, although the CPSIA does not require us to issue a notice in the<E T="04">Federal Register</E>announcing our decision, we are, through this notice, announcing that the CPSC accepts the revisions as mandatory consumer product safety standards. ASTM F963-11 will become effective as a mandatory consumer product safety standard on June 12, 2012. However, because ASTM F963-11 does not reincorporate section 4.27 (toy chests) of ASTM F963-07, that provision from ASTM F963-07 regarding toy chests remains in effect.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Todd A. Stevenson,</NAME>
          <TITLE>Secretary, Consumer Product Safety Commission.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3990 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6355-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
        <CFR>17 CFR Part 275</CFR>
        <DEPDOC>[Release No. IA-3372; File No. S7-17-11]</DEPDOC>
        <RIN>RIN 3235-AK71</RIN>
        <SUBJECT>Investment Adviser Performance Compensation</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Securities and Exchange Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The Securities and Exchange Commission (“Commission” or “SEC”) is adopting amendments to the rule under the Investment Advisers Act of 1940 that permits investment advisers to charge performance based compensation to “qualified clients.” The amendments<PRTPAGE P="10359"/>revise the dollar amount thresholds of the rule's tests that are used to determine whether an individual or company is a qualified client. These rule amendments codify revisions that the Commission recently issued by order that adjust the dollar amount thresholds to account for the effects of inflation. In addition, the rule amendments: provide that the Commission will issue an order every five years in the future adjusting the dollar amount thresholds for inflation; exclude the value of a person's primary residence and certain associated debt from the test of whether a person has sufficient net worth to be considered a qualified client; and add certain transition provisions to the rule.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>The amendments are effective on May 22, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Daniel K. Chang, Senior Counsel, or C. Hunter Jones, Assistant Director, at 202-551-6792, Office of Regulatory Policy, Division of Investment Management, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-8549.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>The Commission is adopting amendments to rule 205-3 [17 CFR 275.205-3] under the Investment Advisers Act of 1940 (“Advisers Act” or “Act”).<SU>1</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>1</SU>15 U.S.C. 80b. Unless otherwise noted, all references to statutory sections are to the Investment Advisers Act, and all references to rules under the Advisers Act, including rule 205-3, are to Title 17, Part 275 of the Code of Federal Regulations [17 CFR part 275].</P>
        </FTNT>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Introduction</FP>
          <FP SOURCE="FP-2">II. Discussion</FP>
          <FP SOURCE="FP1-2">A. Inflation Adjustment of Dollar Amount Thresholds</FP>
          <FP SOURCE="FP1-2">B. Exclusion of the Value of Primary Residence From Net Worth Determination</FP>
          <FP SOURCE="FP1-2">C. Transition Provisions</FP>
          <FP SOURCE="FP1-2">D. Effective Date</FP>
          <FP SOURCE="FP-2">III. Cost-Benefit Analysis</FP>
          <FP SOURCE="FP1-2">A. Benefits</FP>
          <FP SOURCE="FP1-2">B. Costs</FP>
          <FP SOURCE="FP-2">IV. Paperwork Reduction Act</FP>
          <FP SOURCE="FP-2">V. Regulatory Flexibility Act Certification</FP>
          <FP SOURCE="FP-2">VI. Statutory Authority</FP>
          <FP SOURCE="FP-2">Text of Rules</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Introduction</HD>
        <P>Section 205(a)(1) of the Investment Advisers Act generally restricts an investment adviser from entering into, extending, renewing, or performing any investment advisory contract that provides for compensation to the adviser based on a share of capital gains on, or capital appreciation of, the funds of a client.<SU>2</SU>
          <FTREF/>Congress restricted these compensation arrangements (also known as performance compensation or performance fees) in 1940 to protect advisory clients from arrangements it believed might encourage advisers to take undue risks with client funds to increase advisory fees.<SU>3</SU>
          <FTREF/>Congress subsequently authorized the Commission to exempt any advisory contract from the performance fee restrictions if the contract is with persons that the Commission determines do not need the protections of those restrictions.<SU>4</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>2</SU>15 U.S.C. 80b-5(a)(1).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>H.R. Rep. No. 2639, 76th Cong., 3d Sess. 29 (1940). Performance fees were characterized as “heads I win, tails you lose” arrangements in which the adviser had everything to gain if successful and little, if anything, to lose if not. S. Rep No. 1775, 76th Cong., 3d Sess. 22 (1940).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>4</SU>Section 205(3) of the Advisers Act. Section 205(e) of the Advisers Act authorizes the Commission to exempt conditionally or unconditionally from the performance fee prohibition advisory contracts with persons that the Commission determines do not need its protections. Section 205(e) provides that the Commission may determine that persons do not need the protections of section 205(a)(1) on the basis of such factors as “financial sophistication, net worth, knowledge of an experience in financial matters, amount of assets under management, relationship with a registered investment adviser, and such other factors as the Commission determines are consistent with [section 205].”</P>
        </FTNT>
        <P>The Commission adopted rule 205-3 in 1985 to exempt an investment adviser from the restrictions against charging a client performance fees in certain circumstances.<SU>5</SU>
          <FTREF/>The rule, when adopted, allowed an adviser to charge performance fees if the client had at least $500,000 under management with the adviser immediately after entering into the advisory contract (“assets-under-management test”) or if the adviser reasonably believed the client had a net worth of more than $1 million at the time the contract was entered into (“net worth test”). The Commission stated that these standards would limit the availability of the exemption to clients who are financially experienced and able to bear the risks of performance fee arrangements.<SU>6</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>5</SU>Exemption To Allow Registered Investment Advisers to Charge Fees Based Upon a Share of Capital Gains Upon or Capital Appreciation of a Client's Account, Investment Advisers Act Release No. 996 (Nov. 14, 1985) [50 FR 48556 (Nov. 26, 1985)] (“1985 Adopting Release”). The exemption applies to the entrance into, performance, renewal, and extension of advisory contracts. See rule 205-3(a).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>6</SU>See 1985 Adopting Release,<E T="03">supra</E>note 5, at Sections I.C and II.B. The rule also imposed other conditions, including specific disclosure requirements and restrictions on calculation of performance fees.<E T="03">See id.</E>at Sections II.C-E.</P>
        </FTNT>
        <P>In 1998, the Commission amended rule 205-3 to, among other things, change the dollar amounts of the assets-under-management test and net worth test to adjust for the effects of inflation since 1985.<SU>7</SU>
          <FTREF/>The Commission revised the former from $500,000 to $750,000, and the latter from $1 million to $1.5 million.<SU>8</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>7</SU>
            <E T="03">See</E>Exemption To Allow Investment Advisers To Charge Fees Based Upon a Share of Capital Gains Upon or Capital Appreciation of a Client's Account, Investment Advisers Act Release No. 1731 (July 15, 1998) [63 FR 39022 (July 21, 1998)] (“1998 Adopting Release”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>8</SU>
            <E T="03">See id.</E>at Section II.B.1.</P>
        </FTNT>
        <P>The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”)<SU>9</SU>
          <FTREF/>amended section 205(e) of the Advisers Act to require that the Commission adjust for inflation the dollar amount thresholds in rules under the section, rounded to the nearest $100,000.<SU>10</SU>
          <FTREF/>Separately, the Dodd-Frank Act also required that we adjust the net worth standard for an “accredited investor” in rules under the Securities Act of 1933 (“Securities Act”),<SU>11</SU>
          <FTREF/>such as Regulation D,<SU>12</SU>
          <FTREF/>to exclude the value of a person's primary residence.<SU>13</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>9</SU>Public Law 111-203, 124 Stat. 1376 (2010).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>10</SU>See section 418 of the Dodd-Frank Act (requiring the Commission to issue an order every five years revising dollar amount thresholds in a rule that exempts a person or transaction from section 205(a)(1) of the Advisers Act if the dollar amount threshold was a factor in the Commission's determination that the persons do not need the protections of that section).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>11</SU>15 U.S.C. 77a-77z-3.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>12</SU>
            <E T="03">See</E>17 CFR 230.501-.508.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>13</SU>
            <E T="03">See</E>section 413(a) of the Dodd-Frank Act.</P>
        </FTNT>
        <P>In May 2011, the Commission published a notice of intent to issue an order revising the dollar amount thresholds of the assets-under-management and the net worth tests of rule 205-3 to account for the effects of inflation.<SU>14</SU>
          <FTREF/>Our release (“Proposing Release”) also proposed to amend the rule itself to reflect any inflation adjustments to the dollar amount thresholds that we might issue by order.<SU>15</SU>
          <FTREF/>In addition, our proposed amendments (i) stated that the Commission would issue an order every five years adjusting for inflation the dollar amount thresholds, (ii) excluded the value of a person's primary residence from the test of whether a person has sufficient net worth to be considered a “qualified client,” and (iii) modified certain transition provisions of the rule.</P>
        <FTNT>
          <P>
            <SU>14</SU>
            <E T="03">See</E>Investment Adviser Performance Compensation, Investment Advisers Act Release No. 3198 (May 10, 2011) [76 FR 27959 (May 13, 2011)] (“Proposing Release”). Rule 205-3 is the only exemptive rule issued under section 205(e) of the Advisers Act that includes dollar amount tests, which are the assets-under-management and net worth tests.<E T="03">See supra</E>text accompanying note 10.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>15</SU>
            <E T="03">Id.</E>
          </P>
        </FTNT>

        <P>On July 12, 2011, we issued an order revising the threshold of the assets-under-management test to $1 million,<PRTPAGE P="10360"/>and of the net worth test to $2 million.<SU>16</SU>
          <FTREF/>We received approximately 50 comments on our proposed rule amendments.<SU>17</SU>
          <FTREF/>Today we are adopting amendments to rule 205-3 largely as we proposed them, with modifications to address issues raised by commenters, as discussed further below.</P>
        <FTNT>
          <P>
            <SU>16</SU>
            <E T="03">See</E>Order Approving Adjustment for Inflation of the Dollar Amount Tests in Rule 205-3 under the Investment Advisers Act of 1940, Investment Advisers Act Release No. 3236 (July 12, 2011) [76 FR 41838 (July 15, 2011)] (“Order”). The Order is effective as of September 19, 2011.<E T="03">Id.</E>The order applies to contractual relationships entered into on or after the effective date, and does not apply retroactively to contractual relationships previously in existence.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>17</SU>The comment letters we received on the Proposing Release are available on our Web site at<E T="03">http://www.sec.gov/comments/s7-17-11/s71711.shtml.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD1">II. Discussion</HD>
        <HD SOURCE="HD2">A. Inflation Adjustment of Dollar Amount Thresholds</HD>
        <P>We are amending rule 205-3 in three ways to carry out the required inflation adjustment of the dollar amount thresholds of the rule. First, we are revising the dollar amount thresholds that currently apply to investment advisers, to codify the order we issued on July 12, 2011. As amended, paragraph (d) of rule 205-3 provides that the assets-under-management threshold is $1 million and that the net worth threshold is $2 million, which are the revised amounts we issued by order.<SU>18</SU>
          <FTREF/>Although some commenters objected to raising these dollar amount thresholds,<SU>19</SU>
          <FTREF/>section 205(e) of the Advisers Act requires that we adjust the amounts for inflation.<SU>20</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>18</SU>The calculation used to determine the revised dollar amounts in the tests is described below.<E T="03">See infra</E>note 25. As we noted in the Proposing Release, an investment adviser can include in determining the amount of assets under management the assets that a client is contractually obligated to invest in private funds managed by the adviser. Only bona fide contractual commitments may be included, i.e., those that the adviser has a reasonable belief that the investor will be able to meet. See Proposing Release,<E T="03">supra</E>note 15, at n.17.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>19</SU>Some commenters maintained, for example, that raising the dollar amount thresholds would limit the investment options for those investors that fall below the new thresholds, and would harm smaller funds that rely on investments from investors with more limited resources to operate.<E T="03">See, e.g.,</E>Comment Letter of Crescat Portfolio Management LLC (May 11, 2011) (“Crescat Portfolio Comment Letter”); Comment Letter of Hyonmyong Cho (June 8, 2011) (“H. Cho Comment Letter”); Comment Letter of Harold Clyde (June 4, 2011) (“H. Clyde Comment Letter”); Comment Letter of Douglas Estadt (June 7, 2011) (“D. Estadt Comment Letter”). Other commenters supported raising the dollar amount thresholds, noting that this change would ensure that the “qualified client” standard is limited to clients who are financially experienced and able to bear the risks of performance fee arrangements.<E T="03">See, e.g.,</E>Comment Letter of Better Markets, Inc. (July 11, 2011) (“Better Markets Comment Letter”); Comment Letter of Certified Financial Planner Board of Standards, Inc. (July 11, 2011) (“CFP Board Comment Letter”); Comment Letter of Managed Funds Association (July 8, 2011) (“MFA Comment Letter”); Comment Letter of North American Securities Administrators Association, Inc. (July 11, 2011) (“NASAA Comment Letter”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>20</SU>
            <E T="03">See supra</E>note 10.</P>
        </FTNT>
        <P>Second, we are adding to rule 205-3, as proposed, a new paragraph (e) that states that the Commission will issue an order every five years adjusting for inflation the dollar amount thresholds of the assets-under-management and net worth tests of the rule.<SU>21</SU>
          <FTREF/>These periodic adjustments are required by the Advisers Act,<SU>22</SU>
          <FTREF/>and most commenters supported this amendment to the rule.<SU>23</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>21</SU>Rule 205-3(e) provides that the Commission will issue an order on or about May 1, 2016 and approximately every five years thereafter adjusting the assets-under-management and net worth tests for the effects of inflation. These adjusted amounts will apply to contractual relationships entered into on or after the effective date of the order, and will not apply retroactively to contractual relationships previously in existence.<E T="03">See supra</E>note 16. The proposed rule would have stated that the Commission's order would be<E T="03">effective</E>on or about May 1. We have deleted the word “effective” in the final rule to reflect the fact that the effective date will likely be later than May 1.<E T="03">See</E>Order,<E T="03">supra</E>note 16 (setting effective date of the order approximately 60 days after the order's issuance).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>22</SU>
            <E T="03">See supra</E>note 10.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>23</SU>
            <E T="03">See</E>Comment Letter of Chris Barnard (May 31, 2011) (“C. Barnard Comment Letter”); Better Markets Comment Letter; CFP Board Comment Letter; Comment Letter of Investment Adviser Association (July 11, 2011) (“IAA Comment Letter”); MFA Comment Letter. One commenter stated that the dollar amount tests should be reevaluated more frequently.<E T="03">See</E>NASAA Comment Letter.</P>
        </FTNT>
        <P>Amended rule 205-3(e) also specifies the price index on which future inflation adjustments will be based.<SU>24</SU>
          <FTREF/>The index is the Personal Consumption Expenditures Chain-Type Price Index (“PCE Index”),<SU>25</SU>
          <FTREF/>which is published by the Department of Commerce.<SU>26</SU>
          <FTREF/>The dollar amount tests we adopted in 1998 will be the baseline for future calculations.<SU>27</SU>
          <FTREF/>As we noted in the Proposing Release, the use of the PCE Index is appropriate because it is an indicator of inflation in the personal sector of the U.S. economy<SU>28</SU>
          <FTREF/>and is used in other provisions of the federal securities laws.<SU>29</SU>
          <FTREF/>Commenters agreed that the PCE Index is an appropriate indicator of inflation<SU>30</SU>
          <FTREF/>and that the 1998 dollar amounts are the proper baseline for future inflation adjustments.<SU>31</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>24</SU>
            <E T="03">See</E>rule 205-3(e)(1).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>25</SU>The revised dollar amounts in the tests reflect inflation as of the end of 2010, and are rounded to the nearest $100,000 as required by section 418 of the Dodd-Frank Act. The 2010 PCE Index is 111.112, and the 1997 PCE Index is 85.433. These values are slightly different from those provided in the Proposing Release because of periodic adjustments issued by the Department of Commerce.<E T="03">See</E>Proposing Release,<E T="03">supra</E>note 15, at n.19;<E T="03">see also infra</E>note 26. Assets-under-management test calculation to adjust for the effects of inflation: 111.112/85.433 × $750,000 = $975,431; $975,431 rounded to the nearest multiple of $100,000 = $1 million. Net worth test calculation to adjust for the effects of inflation: 111.112/85.433 × $1.5 million = $1,950,862; $1,950,862 rounded to the nearest multiple of $100,000 = $2 million.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>26</SU>The values of the PCE Index are available from the Bureau of Economic Analysis, a bureau of the Department of Commerce.<E T="03">See  http://www.bea.gov. See also  http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=64&amp;ViewSeries=NO&amp;Java=no&amp;Request3Place=N&amp;3Place=N&amp;FromView=YES&amp;Freq=Year&amp;FirstYear=1997&amp;LastYear=2010&amp;3Place=N&amp;Update=Update&amp;JavaBox=no#Mid.</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>27</SU>Rule 205-3(e) provides that the assets-under-management and net worth tests will be adjusted for inflation by (i) dividing the year-end value of the PCE Index for the calendar year preceding the calendar year in which the order is being issued, by the year-end value of the PCE Index for the calendar year 1997, (ii) multiplying the threshold amounts adopted in 1998 ($750,000 and $1.5 million) by that quotient, and (iii) rounding each product to the nearest multiple of $100,000. For example, for the order the Commission would issue in 2016, the Commission would (i) divide the year-end 2015 PCE Index by the year-end 1997 PCE Index, (ii) multiply the quotient by $750,000 and $1.5 million, and (iii) round each of the two products to the nearest $100,000.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>28</SU>See Clinton P. McCully, Brian C. Moyer, and Kenneth J. Stewart, “Comparing the Consumer Price Index and the Personal Consumption Expenditures Price Index,” Survey of Current Business (Nov. 2007) at 26 n.1 (available at<E T="03">http://www.bea.gov/scb/pdf/2007/11%20november/1107_cpipce.pdf</E>) (PCE Index measures changes in “prices paid for goods and services by the personal sector in the U.S. national income and product accounts” and is primarily used for macroeconomic analysis and forecasting).<E T="03">See also Federal Reserve Board, Monetary Policy Report to the Congress</E>(Feb. 17, 2000) at n.1 (available at<E T="03">http://www.federalreserve.gov/boarddocs/hh/2000/february/ReportSection1.htm#FN1</E>) (noting the reasons for using the PCE Index rather than the consumer price index).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>29</SU>
            <E T="03">See</E>Proposing Release,<E T="03">supra</E>note 15, at n.22 and accompanying text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>30</SU>
            <E T="03">See</E>Better Markets Comment Letter; IAA Comment Letter; Comment Letter of Georg Merkl (July 11, 2011) (“G. Merkl Comment Letter”). Although two commenters asserted that inflation is not the proper unit of measure by which to adjust net worth requirements, see Comment Letter of David Hale (May 20, 2011) and Comment Letter of Joseph V. Delaney (undated) (“J. Delaney Comment Letter”), section 205(e) of the Advisers Act requires that we adjust the dollar amount thresholds of rule 205-3 for inflation.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>31</SU>
            <E T="03">See</E>C. Barnard Comment Letter; G. Merkl Comment Letter.</P>
        </FTNT>
        <HD SOURCE="HD2">B. Exclusion of the Value of Primary Residence From Net Worth Determination</HD>
        <P>We also are amending the net worth test in the definition of “qualified client” in rule 205-3 to exclude the value of a natural person's primary residence and certain debt secured by the property.<SU>32</SU>

          <FTREF/>This change, although not required by the Dodd-Frank Act, is similar to the change that Act requires the Commission to make to rules under<PRTPAGE P="10361"/>the Securities Act, such as Regulation D.<SU>33</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>32</SU>Rule 205-3(d)(1)(ii)(A).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>33</SU>
            <E T="03">See</E>section 413(a) of the Dodd-Frank Act (requiring the Commission to adjust any net worth standard for an “accredited investor” as set forth in Commission rules under the Securities Act to exclude the value of a natural person's primary residence). The Dodd-Frank Act does not require that the net worth standard for an accredited investor be adjusted periodically for the effects of inflation, although it does require the Commission at least every four years to “undertake a review of the definition, in its entirety, of the term `accredited investor' * * * [as defined in Commission rules] as such term applies to natural persons, to determine whether the requirements of the definition should be adjusted or modified for the protection of investors, in the public interest, and in light of the economy.”<E T="03">See</E>section 413(b)(2)(A) of the Dodd-Frank Act. In January 2011, we proposed rule amendments to adjust the net worth standards for accredited investors in our rules under the Securities Act.<E T="03">See</E>Net Worth Standard for Accredited Investors, Securities Act Release No. 9177 (Jan. 25, 2011) [76 FR 5307 (Jan. 31, 2011)] (“Accredited Investor Proposing Release”). We recently adopted those amendments substantially as proposed.<E T="03">See</E>Net Worth Standard for Accredited Investors, Securities Act Release No. 9287 (Dec. 21, 2011) [76 FR 81793 (Dec. 29, 2011)] (“Accredited Investor Adopting Release”).</P>
        </FTNT>
        <P>We proposed to exclude the value of a person's primary residence and the debt secured by the residence, up to the fair market value of the residence, from the calculation of a person's net worth.<SU>34</SU>
          <FTREF/>A number of commenters supported the proposed exclusion.<SU>35</SU>
          <FTREF/>Many agreed with our statement in the Proposing Release that the value of an individual's residence may have little relevance to the person's financial experience and ability to bear the risks of performance fee arrangements.<SU>36</SU>
          <FTREF/>The Certified Financial Planner Board of Standards noted in its comment letter that the value of an individual's equity in a residence is more likely to be a function of the length of time that the investor has owned the home, than to be a function of the investor's experience or sophistication. Commenters also stated that excluding the value of the residence would promote regulatory consistency because it parallels the treatment of a person's primary residence in determinations of net worth under other securities rules.<SU>37</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>34</SU>
            <E T="03">See</E>Proposing Release,<E T="03">supra</E>note 15, at n.28 and accompanying text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>35</SU>
            <E T="03">See, e.g.,</E>C. Barnard Comment Letter; CFP Board Comment Letter; MFA Comment Letter; NASAA Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>36</SU>
            <E T="03">See, e.g.,</E>C. Barnard Comment Letter; CFP Board Comment Letter; NASAA Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>37</SU>
            <E T="03">See, e.g.,</E>Better Markets Comment Letter; CFP Board Comment Letter; NASAA Comment Letter.</P>
        </FTNT>
        <P>Many commenters objected to the exclusion of the value of a person's primary residence from the calculation of net worth. Commenters expressed concern that the exclusion would limit the investment options of less wealthy investors and restrict their access to advisory arrangements that include performance fees.<SU>38</SU>
          <FTREF/>Some argued that excluding the value of a residence would harm advisers to smaller funds that rely on investments from less wealthy investors.<SU>39</SU>
          <FTREF/>Others argued that home ownership, compared to home rental, may in fact evidence greater rather than less financial experience on the part of individuals.<SU>40</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>38</SU>
            <E T="03">See, e.g.,</E>Comment Letter of Matthew Gee (June 14, 2011); Comment Letter of Gunderson Dettmer Stough Villeneuve Franklin Hachigan LLP (July 8, 2011) (“Gunderson Dettmer Comment Letter”); Comment Letter of Alvin Suvil (July 17, 2011) (“A. Suvil Comment Letter”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>39</SU>
            <E T="03">See, e.g.,</E>Comment Letter of Roger Alsop (June 16, 2011) (“R. Alsop Comment Letter”); J. Delaney Comment Letter; Comment Letter of Molly Huntsman (June 23, 2011) (“M. Huntsman Comment Letter”); Comment Letter of Greg Thornton (June 2, 2011); Comment Letter of Greg J. Wimmer (June 3, 2011).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>40</SU>
            <E T="03">See</E>M. Gee Comment Letter; Comment Letter of Douglas Wood (June 13, 2011) (“D. Wood Comment Letter”). Some commenters appeared to object to excluding residence from net worth on public policy grounds because the exclusion would discourage home ownership.<E T="03">See, e.g.,</E>Comment Letter of Ron Cuningham (June 25, 2011) (“R. Cuningham Comment Letter”); D. Wood Comment Letter.</P>
        </FTNT>
        <P>We continue to believe that the value of a person's residence generally has little relevance to the individual's financial experience and ability to bear the risks of performance fee arrangements, and therefore little relevance to the individual's need for the Act's protections from performance fee arrangements.<SU>41</SU>
          <FTREF/>Although the process of purchasing and financing a home can contribute to an individual's financial experience, the value of the individual's equity interest in the residence reflects the prevailing market values at the time and can be a function of time in paying down the associated debt rather than a function of deliberate investment decision-making. In addition, because of the generally illiquid nature of residential assets, the value of an individual's home equity may not help the investor to bear the risks of loss that are inherent in performance fee arrangements.</P>
        <FTNT>
          <P>

            <SU>41</SU>For example, an individual who meets the net worth test only by including the value of his primary residence in the calculation is unlikely to be as able to bear the risks of performance fee arrangements as an individual who meets the test without including the value of her primary residence. We stated in 2006, when we proposed a minimum net worth threshold for establishing when an individual could invest in hedge funds pursuant to the safe harbor of Regulation D, that the value of an individual's personal residence may bear little or no relationship to that person's knowledge and financial sophistication.<E T="03">See</E>Prohibition of Fraud by Advisers to Certain Pooled Investment Vehicles; Accredited Investors in Certain Private Investment Vehicles, Investment Advisers Act Release No. 2576 (Dec. 27, 2006) [72 FR 400 (Jan. 4, 2007)] at Section III.B.3.</P>
        </FTNT>
        <P>Our exclusion of the value of a person's primary residence from the net worth calculation under the rule is similar to the approach that the Commission has taken in other rules to determine the financial qualifications of investors. For example, the Commission excluded the value of a person's primary residence and associated liabilities from the determination of whether a person is a “high net worth customer” in Regulation R under the Securities Exchange Act of 1934.<SU>42</SU>
          <FTREF/>The Commission also excluded the value of a residence from the determination of whether an individual has sufficient investments to be considered a “qualified purchaser” under the Investment Company Act of 1940 (“Investment Company Act”) who can invest in certain private funds that are not registered under that Act.<SU>43</SU>
          <FTREF/>As discussed above, this approach is also reflected in the Commission's recent amendments to the definition of “accredited investor” in rules under the Securities Act, including Regulation D, as required by the Dodd-Frank Act.<SU>44</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>42</SU>
            <E T="03">See, e.g.,</E>Definition of Terms and Exemptions Relating to the “Broker” Exceptions for Banks, Securities Exchange Act Release No. 56501 (Sept. 24, 2007) [72 FR 56514 (Oct. 3, 2007)] at Section II.C.1 (excluding primary residence and associated liabilities from the fixed-dollar threshold for “high net worth customers” under Rule 701 of Regulation R, which permits a bank to pay an employee certain fees for the referral of a high net worth customer or institutional customer to a broker-dealer without requiring registration of the bank as a broker-dealer).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>43</SU>Section 3(c)(7) of the Investment Company Act provides an exclusion from the definition of “investment company” for any “issuer, the outstanding securities of which are owned exclusively by persons who, at the time of acquisition of such securities, are qualified purchasers, and which is not making and does not at that time propose to make a public offering of such securities.” A “qualified purchaser” under section 2(a)(51) of the Investment Company Act [15 U.S.C. 80a-2(a)(51)] includes, among others, any natural person who owns not less than $5 million in investments, as defined by the Commission. Rule 2a51-1 under the Investment Company Act includes within the meaning of “investments” real estate held for investment purposes. 17 CFR 270.2a51-1(b)(2). A personal residence is not considered an investment under rule 2a51-1, although residential property may be treated as an investment if it is not treated as a residence for tax purposes.<E T="03">See</E>Privately Offered Investment Companies, Investment Company Act Release No. 22597 (Apr. 3, 1997) [62 FR 17512 (Apr. 9, 1997)] at text accompanying and following n.48.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>44</SU>
            <E T="03">See supra</E>note 33 and accompanying text.</P>
        </FTNT>
        <P>Some commenters voiced particular concern about the exclusion of the residential value at the same time that we adjust the dollar amount thresholds for inflation, and argued that the two changes together could cause too much change at one time.<SU>45</SU>

          <FTREF/>We note that we revised the dollar amount threshold of the net worth test last July and that the<PRTPAGE P="10362"/>revision was effective in September. Our current amendment of the net worth test to exclude the value of a residence, which will be effective in May 2012, will be effective approximately eight months after the previous change to the net worth test. Any further revisions of the dollar amount thresholds of rule 205-3 to adjust for inflation are not scheduled to occur until 2016.<SU>46</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>45</SU>
            <E T="03">See, e.g.,</E>R. Alsop Comment Letter; R. Cuningham Comment Letter; M. Huntsman Comment Letter; A. Suvil Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>46</SU>
            <E T="03">See</E>rule 205-3(e).</P>
        </FTNT>
        <P>Some of the commenters who disagreed with the proposal to raise the dollar amount threshold of the net worth standard or to exclude the value of a residence from net worth, also disagreed that a person's net worth should be used as a measure of eligibility for the exemption from the performance fee restrictions.<SU>47</SU>
          <FTREF/>These commenters did not recommend an alternative standard that is objective and verifiable, and that would effectively distinguish between those investors who do, and those who do not, need the protections of the Act's performance fee restrictions.<SU>48</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>47</SU>
            <E T="03">See, e.g.,</E>J. Delaney Comment Letter; Comment Letter of David Hale (May 20, 2011); Comment Letter of Tom Irvin (May 18, 2011).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>48</SU>One commenter suggested that a “qualified client” include an individual with a bachelor's degree in a finance-related major or a master's degree in any area from an accredited U.S. university.<E T="03">See</E>Comment Letter of Troy Clark (June 23, 2011). Although the suggested finance-related major requirement would help to determine whether an individual is financially knowledgeable, the suggested master's degree requirement would not, and neither requirement would establish whether an investor has sufficient practical experience in making investment decisions or is capable of bearing the risks of loss associated with performance fee arrangements.</P>
        </FTNT>
        <P>Our amendment of the net worth standard of rule 205-3 differs from the proposed amendment in one respect. The approach we are adopting today will generally require any increase in the amount of debt secured by the primary residence in the 60 days before the advisory contract is entered into to be included as a liability. As discussed below, this change will prevent debt that is incurred shortly before entry into an advisory contract from being excluded from the calculation of net worth merely because it is secured by the individual's home.</P>
        <P>As proposed, the amended rule would have excluded the value of a person's primary residence and the amount of all debt secured by the property that is no greater than the property's current market value.<SU>49</SU>
          <FTREF/>The proposed treatment of debt secured by the primary residence was the same as we proposed for the calculation of net worth for accredited investors in our rules under the Securities Act.<SU>50</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>49</SU>Proposed rule 205-3(d)(1)(ii)(A).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>50</SU>
            <E T="03">See</E>Accredited Investor Proposing Release,<E T="03">supra</E>note 33, at text preceding n.28. One commenter recommended that all debt secured by the residence (not just debt up to the fair market value of the residence) be excluded from the net worth calculation.<E T="03">See</E>G. Merkl Comment Letter. The commenter argued that excluding the debt secured by the residence up to the fair market value of the residence would require an investor to obtain a valuation of the residence from a real estate agent, which would be burdensome and costly. We note that the rule requires an estimate of the fair market value, but does not require a third party opinion on valuation for the primary residence. Furthermore, many online services provide residence valuations at no charge. In addition, if the amount of mortgage debt exceeds the value of the primary residence, excluding the entire debt would result in a higher net worth than under a conventional calculation that takes into account all assets and all liabilities. The commenter also acknowledged that, although he disagreed with the net worth test as a measure of financial sophistication, for purposes of calculating residence-related indebtedness a “close proximity between the time of taking on new debt and entering into the advisory contract could work.”<E T="03">Cf.</E>rule 205-3(d)(1)(ii)(A)(2) (requiring that all residence-related indebtedness incurred within 60 days before the advisory contract is entered into, other than as a result of the acquisition of the primary residence, be subtracted from a client's net worth for purposes of determining whether the client is a “qualified client”).</P>
        </FTNT>
        <P>In the Proposing Release, we requested comment on whether the amendments to the rule should contain a timing provision to prevent investors from inflating their net worth by borrowing against their homes, effectively converting their home equity—which is excluded from the net worth calculation under the amendments adopted today—into cash or other assets that would be included in the net worth calculation.<SU>51</SU>
          <FTREF/>In particular, we indicated that the amendments could provide that the net worth calculation must be made as of a date 30, 60, or 90 days prior to entry into the investment advisory contract.<SU>52</SU>
          <FTREF/>This request for comment was similar to the one we made when we proposed amendments to the net worth standard in rules under the Securities Act, including Regulation D.<SU>53</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>51</SU>
            <E T="03">See</E>Proposing Release,<E T="03">supra</E>note 15, at Section II.B.2.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>52</SU>
            <E T="03">Id.</E>Two commenters stated that the net worth calculation should not be required to be made on a specified date prior to the day the advisory contract is entered into.<E T="03">See</E>C. Barnard Comment Letter; G. Merkl Comment Letter. Another commenter stated that the net worth calculation should be required to be made on a specified date prior to the day the advisory contract is entered into to assist in protecting against refinancing transactions intended solely to inflate net worth.<E T="03">See</E>NASAA Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>53</SU>
            <E T="03">See</E>Accredited Investor Proposing Release,<E T="03">supra</E>note 33, at Specific Request for Comment Number 7 in Section II.A.</P>
        </FTNT>
        <P>As in the recently adopted accredited investor rule amendments adjusting the net worth standard,<SU>54</SU>
          <FTREF/>the rule amendments to the qualified client net worth standard include a specific provision addressing the treatment of incremental debt secured by the primary residence that is incurred in the 60 days before the advisory contract is entered into.<SU>55</SU>
          <FTREF/>Debt secured by the primary residence generally will not be included as a liability in the net worth calculation under the rule, except to the extent it exceeds the estimated value of the primary residence. Under the final rule amendments, however, any increase in the amount of debt secured by the primary residence in the 60 days before the advisory contract is entered into generally will be included as a liability, even if the estimated value of the primary residence exceeds the aggregate amount of debt secured by such primary residence.<SU>56</SU>
          <FTREF/>Net worth will be calculated only once, at the time the advisory contract is entered into. The individual's primary residence will be excluded from assets and any indebtedness secured by the primary residence, up to the estimated value of the primary residence at that time, will be excluded from liabilities, except if there is incremental debt secured by the primary residence incurred in the 60 days before the advisory contract is entered into. If any such incremental debt is incurred, net worth will be reduced by the amount of the incremental debt. In other words, the 60-day look-back provision requires investors to identify any increase in mortgage debt over the 60-day period prior to entering into an advisory contract and count that debt as a liability in calculating net worth.</P>
        <FTNT>
          <P>
            <SU>54</SU>
            <E T="03">See</E>Accredited Investor Adopting Release,<E T="03">supra</E>note 33, at text following n.34.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>55</SU>
            <E T="03">See</E>rule 205-3(d)(1)(ii)(A)(2).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>56</SU>The fair market value of the primary residence is determined as of the time the advisory contract is entered into, even if the investor has changed his or her primary residence during the 60-day period. The rule provides an exception to the 60-day look-back provision for increases in debt secured by a primary residence where the debt results from the acquisition of the primary residence. Without this exception, an individual who acquires a new primary residence in the 60-day period before the advisory contract is entered into may have to include the full amount of the mortgage incurred in connection with the purchase of the primary residence as a liability, while excluding the full value of the primary residence, in a net worth calculation. The 60-day look-back provision is intended to address incremental debt secured against a primary residence that is incurred for the purpose of circumventing the net worth standard of the rule. It is not intended to address debt secured by a primary residence that is incurred in connection with the acquisition of a primary residence within the 60-day period.</P>
        </FTNT>

        <P>This approach should significantly reduce the incentive for persons to induce potential clients to take on incremental debt secured against their homes to facilitate a near-term investment. We believe a 60-day look-<PRTPAGE P="10363"/>back period is long enough to decrease the likelihood of circumvention of the standard by taking on new debt and waiting for the look-back period to expire. The 60-day period also is designed to be short enough to accommodate investors who may have increased their mortgage debt in the ordinary course at some point prior to entering into an advisory contract.</P>
        <P>Another alternative to address the possibility of parties attempting to circumvent the standard would have been to provide that any debt secured by the primary residence that was incurred after the original purchase date of the primary residence would have been counted as a liability, whether or not the fair market value of the primary residence exceeded the value of the total amount of debt secured by the primary residence. We believe that such a standard would be overly restrictive and not provide for ordinary course changes to debt secured by a primary residence, such as refinancing and drawings on home equity lines. We believe that the approach we are adopting here will protect investors by addressing circumstances in which they may have been induced to incur new debt secured by the primary residence for the purpose of inflating net worth under the rule, while still permitting ordinary course changes to debt secured by the primary residence. This approach is similar to the approach the Commission recently adopted for accredited investor rule amendments adjusting the net worth standard, and it responds to commenters who urged the Commission to promote regulatory consistency in the treatment of primary residences in other similar contexts in order to promote fairness, facilitate enforcement, and provide clarity for both industry and regulators.<SU>57</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>57</SU>
            <E T="03">See</E>Accredited Investor Adopting Release,<E T="03">supra</E>note 33, at text following n.46;<E T="03">see, e.g.,</E>Better Markets Comment Letter; NASAA Comment Letter.</P>
        </FTNT>
        <HD SOURCE="HD2">C. Transition Provisions</HD>
        <P>We proposed two new transition provisions that would allow an investment adviser and its clients to maintain existing performance fee arrangements that were permissible when the advisory contract was entered into, even if the performance fees would not be permissible under the contract if it were entered into at a later date. We are adopting the two transition rules substantially as proposed, which commenters supported.<SU>58</SU>
          <FTREF/>At the suggestion of one commenter we also are adopting an additional transition provision to address certain transfers of interest, as discussed below.<SU>59</SU>
          <FTREF/>The amendments replace the current transition rules section of rule 205-3.</P>
        <FTNT>
          <P>
            <SU>58</SU>Rule 205-3(c)(1); rule 205-3(c)(2).<E T="03">See,</E>
            <E T="03">e.g.,</E>C. Barnard Comment Letter; Gunderson Dettmer Comment Letter; M. Huntsman Comment Letter; IAA Comment Letter; MFA Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>59</SU>
            <E T="03">See</E>rule 205-3(c)(3).</P>
        </FTNT>
        <P>Paragraphs (1) and (2) of rule 205-3(c) are designed so that restrictions on performance fees apply only to new contractual arrangements and do not apply to new investments by clients (including equity owners of “private investment companies”) who met the definition of “qualified client” when they entered into the advisory contract, even if they subsequently do not meet the dollar amount thresholds of the rule.<SU>60</SU>
          <FTREF/>This approach minimizes the disruption of existing contractual relationships that met applicable requirements under the rule at the time the parties entered into them.</P>
        <FTNT>
          <P>

            <SU>60</SU>A “private investment company” is a company that is excluded from the definition of an “investment company” under the Investment Company Act by reason of section 3(c)(1) of that Act. Rule 205-3(d)(3). Under rule 205-3(b), the equity owner of a private investment company, or of a registered investment company or business development company, is considered a client of the adviser for purposes of rule 205-3(a). We adopted this provision in 1998, and the provision was not affected by our subsequent rule amendments and related litigation concerning the registration of certain hedge fund advisers.<E T="03">See</E>1998 Adopting Release,<E T="03">supra</E>note 7;<E T="03">Goldstein</E>v.<E T="03">Securities and Exchange Commission,</E>451 F.3d 873 (DC Cir. 2006).</P>
        </FTNT>
        <P>Rule 205-3(c)(1)<E T="03"/>
          <SU>61</SU>
          <FTREF/>provides that, if a registered investment adviser entered into a contract and satisfied the conditions of the rule that were in effect when the contract was entered into, the adviser will be considered to satisfy the conditions of the rule.<SU>62</SU>
          <FTREF/>If, however, a natural person or company that was not a party to the contract becomes a party, the conditions of the rule in effect at the time they become a party will apply to that person or company. This provision means, for example, that if an individual met the $1.5 million net worth test in effect before the effective date of our 2011 order and entered into an advisory contract with a registered investment adviser before that date, the client could continue to maintain assets (and invest additional assets) with the adviser under that contract even though the net worth test was subsequently raised to $2 million and he or she no longer met the new test. If, however, another person becomes a party to that contract, the current net worth threshold will apply to the new party when he or she becomes a party to the contract.<SU>63</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>61</SU>Rule 205-3(c)(1), as amended, modifies the existing transition rule in rule 205-3(c)(1), which permits advisers and their clients that entered into a contract before August 20, 1998, and satisfied the eligibility criteria in effect on the date the contract was entered into, to maintain their existing performance fee arrangements.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>62</SU>One commenter supported the provisions allowing advisers to continue to provide advisory services under performance fee arrangements that were permitted at the time the contract was entered into but stated that the rule should prohibit an adviser from charging performance fees to investors that are not qualified clients with respect to money committed after the effective date for the rule amendments. See G. Merkl Comment Letter. We believe such an approach would be unnecessarily disruptive to advisory relationships.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>63</SU>Rule 205-3(c)(1). Similarly, a person who invests in a private investment company advised by a registered investment adviser must satisfy the rule's conditions when he or she becomes an investor in the company. See rule 205-3(b) (equity owner of a private investment company is considered a client of a registered investment adviser for purposes of rule 205-3(a)).</P>
        </FTNT>
        <P>Rule 205-3(c)(2) provides that, if a registered investment adviser previously was not required to register with the Commission pursuant to section 203 of the Act and did not register, section 205(a)(1) of the Act will not apply to the contractual arrangements into which the registered adviser entered when it was not registered with the Commission.<SU>64</SU>

          <FTREF/>This means, for example, that if an investment adviser to a private investment company with 50 individual investors was exempt from registration with the Commission in 2009, but then subsequently registered with the Commission because it was no longer exempt from registration or because it chose voluntarily to register, section 205(a)(1) will not apply to the contractual arrangements the adviser entered into before it registered, including the accounts of the 50 individual investors with the private investment company and any additional investments they make in that company. If, however, any other individuals<PRTPAGE P="10364"/>become new investors in the private investment company or if the original investors became investors in a different private investment company managed by the adviser after the adviser registers with the Commission, section 205(a)(1) will apply to the adviser's relationship with the investors with regard to their new investments.<SU>65</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>64</SU>Section 205(a)(1) will apply, however, to contractual arrangements into which the adviser enters after it is required to register with the Commission. See rule 205-3(c)(2). The approach of subsection (c)(2) is similar to the transition provisions we adopted for the registration of investment advisers to private funds. See Registration Under the Advisers Act of Certain Hedge Fund Advisers, Investment Advisers Act Release No. 2333 (Dec. 2, 2004) [69 FR 72054 (Dec. 10, 2004)]. We are adopting the subsection substantially as proposed, but have made minor changes to clarify that the transition provision applies only to contractual arrangements with advisers that were not required to register and did not register with the Commission. Our proposed subsection would have applied to contractual arrangements with any registered investment adviser that previously was “exempt” from the requirement to register with the Commission. The revised language clarifies that the transition provision applies to contractual arrangements with advisers when they were not required to register (even if they were not “exempt”), and does not apply to contractual arrangements entered into with advisers when they were registered (even if they were not required to register). Investment advisers that previously registered already are subject to section 205(a)(1) and rule 205-3, and therefore would not need the transition relief of rule 205-3(c)(2).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>65</SU>One commenter recommended that we revise the rule to accommodate fund-of-funds purchases when the acquiring funds are private investment companies.<E T="03">See</E>MFA Comment Letter. The commenter recommended that the rule “clarify” that an acquiring private investment company is able to pay performance fees to the adviser of an acquired private investment company even if some of the investors in the acquiring private investment company are not qualified clients at the time the investment is made in the acquired private investment company. We are not making the suggested revision to the final rule, because it would permit advisers to pool small client accounts to circumvent the eligibility standards of rule 205-3(d)(1) and would permit performance fee arrangements that currently are not permissible under rule 205-3(b). As we stated in 1998, rule 205-3(b) specifies that the requirement to look through to each investor of a private investment company applies to each tier of a funds-of-funds structure.<E T="03">See</E>1998 Adopting Release,<E T="03">supra</E>note 7, at Section II.C. (“Under [Rule 205-3(b)], each `tier' of such entities must be examined in this manner. Thus, if a private investment company seeking to enter into a performance fee contract (first tier company) is owned by another private investment company (the second tier company), the look through provision applies to the second (and any other) level private investment company, and thus the adviser must look to the ultimate client to determine whether the arrangement satisfies the requirements of the rule.”).</P>
        </FTNT>
        <P>Finally, at the suggestion of one commenter, we have revised the third paragraph of rule 205-3(c), to allow for limited transfers of interests from a qualified client to a person that was not a party to the contract and is not a qualified client at the time of the transfer.<SU>66</SU>
          <FTREF/>The approach we are taking is similar to the approach we adopted in rule 3c-6 under the Investment Company Act. Rule 3c-6 provides that, in the case of a transfer of ownership interest in a private investment company by gift or bequest, or pursuant to an agreement relating to a legal separation or divorce, the beneficial owner of the interest will be considered to be the person who transferred the interest.<SU>67</SU>
          <FTREF/>We believe that, when those types of transfers occur, the transferee does not make a separate investment decision to enter into an advisory contract with the adviser, but is the recipient, perhaps involuntarily, of the benefits of a pre-existing contractual relationship. Because of the circumstances of these transfers, we believe the transferee is not of the type that needs the protections of the performance fee restrictions. We are therefore amending paragraph (3) of rule 205-3(c) to provide that, if an owner of an interest in a private investment company transfers an interest by gift or bequest, or pursuant to an agreement related to a legal separation or divorce, the transfer will not cause the transferee to “become a party” to the contract and will not cause section 205(a)(1) of the Act to apply to such transferee. Thus, transfers in these circumstances will not cause the transferee to have to meet the definition of a qualified client under rule 205-3.<SU>68</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>66</SU>
            <E T="03">See</E>Gunderson Dettmer Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>67</SU>
            <E T="03">See</E>rule 3c-6(b) under the Investment Company Act [17 CFR 270.3c-6(b)].</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>68</SU>A gift transfer, however, would need to be a bona fide gift and could not be used as a means to avoid the protections of section 205 of the Act, for example by transferring an interest in a private fund supposedly as a gift but in reality in exchange for payment.</P>
        </FTNT>
        <HD SOURCE="HD2">D. Effective Date</HD>
        <P>The rule amendments we are adopting today will be effective on May 22, 2012. In addition, in order to minimize the disruption of contractual relationships that met applicable requirements at the time the parties entered into them, the Commission will not object if advisers rely or relied upon the amended transition provisions of rule 205-3(c) before that date.<SU>69</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>69</SU>As discussed above, some advisers may have entered into contractual relationships with clients who met the requirements of the rule at the time the parties entered into them, but who no longer meet the requirements of the amended rule.<E T="03">See supra</E>Section II.C. For example, some registered investment advisers may have entered into advisory contracts with clients who met the $1.5 million net worth test when that test was applicable, but who would not meet the $2 million net worth test of the revised rule.</P>
        </FTNT>
        <HD SOURCE="HD1">III. Cost-Benefit Analysis</HD>
        <P>The Commission is sensitive to the costs and benefits imposed by its rules. In the Proposing Release, we analyzed the costs and benefits of the proposed rules and sought comment on all aspects of the cost-benefit analysis, including identification and assessment of any costs and benefits not discussed in the analysis. Only two commenters addressed the cost-benefit analysis.<SU>70</SU>
          <FTREF/>These commenters focused on the costs of the rule but did not provide any empirical data.</P>
        <FTNT>
          <P>
            <SU>70</SU>
            <E T="03">See</E>Comment Letter of Phillip Goldstein (May 24, 2011) (“P. Goldstein Comment Letter”); G. Merkl Comment Letter.</P>
        </FTNT>
        <P>As stated above, section 205(a)(1) of the Advisers Act generally restricts an investment adviser from entering into an advisory contract that provides for performance-based compensation.<SU>71</SU>
          <FTREF/>Congress restricted performance compensation arrangements to protect advisory clients from arrangements it believed might encourage advisers to take undue risks with client funds to increase advisory fees.<SU>72</SU>
          <FTREF/>Congress subsequently authorized the Commission in section 205(e) of the Advisers Act to exempt any advisory contract from the performance fee restrictions if the contract is with persons that the Commission determines do not need the protections of those restrictions. Section 205(e) provides that the Commission may determine that persons do not need the protections of section 205(a)(1) on the basis of such factors as “financial sophistication, net worth, knowledge of and experience in financial matters, amount of assets under management, relationship with a registered investment adviser, and such other factors as the Commission determines are consistent with [section 205].”</P>
        <FTNT>
          <P>
            <SU>71</SU>
            <E T="03">See supra</E>Section I.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>72</SU>
            <E T="03">Id.</E>
          </P>
        </FTNT>
        <P>The Commission adopted rule 205-3 to exempt an investment adviser from the restrictions against charging a client performance fees where a client has a specified net worth or amount of assets under management. Section 418 of the Dodd-Frank Act amended section 205(e) to require that the Commission adjust for inflation the dollar amount thresholds in rules promulgated under section 205(e) within one year of enactment of the Dodd-Frank Act and every five years thereafter. Generally an inflation adjustment is designed to help make the dollar amount thresholds in a provision continue to serve the same purposes over time. The amendments to rule 205-3 providing that the Commission will issue orders every five years adjusting for inflation the dollar amount thresholds of the rule will codify the Dodd-Frank Act's amendment of section 205(e) of the Advisers Act that requires the Commission to issue these orders.<SU>73</SU>
          <FTREF/>Also, pursuant to section 418's requirements, the Commission issued an order in July 2011 revising the threshold of the assets-under-management test to $1 million, and of the net worth test to $2 million. The rule amendments will codify in the rule the changes already made to the dollar amount thresholds in the July 2011 Order, and will have no separate economic effect.</P>
        <FTNT>
          <P>
            <SU>73</SU>Section 418 of the Dodd-Frank Act.</P>
        </FTNT>

        <P>As proposed, we are amending rule 205-3 to exclude the value of a natural person's primary residence and certain debt secured by the property from the determination of whether a person has sufficient net worth to be considered a “qualified client.” We are also modifying the transition provisions of the rule to take into account performance fee arrangements that were permissible when they were entered<PRTPAGE P="10365"/>into. We analyze the costs and benefits of these provisions below.</P>
        <HD SOURCE="HD2">A. Benefits</HD>
        <P>The exclusion of the value of an individual's primary residence will benefit certain investors. As discussed above, the Act's restrictions on performance fee arrangements are designed to protect advisory clients from arrangements that encourage advisers to take undue risks with client funds to increase advisory fees, while rule 205-3 is designed to permit clients who are financially experienced and able to bear the risks of performance fee arrangements to enter into those arrangements.<SU>74</SU>
          <FTREF/>We believe that the value of an individual's primary residence may bear little or no relationship to that person's financial experience or ability to bear the risks of performance fee arrangements. The value of the individual's equity interest in the residence reflects the prevailing market values at the time and can be a function of time in paying down the associated debt rather than a function of deliberate investment decision-making. In addition, because of the generally illiquid nature of residential assets, the value of an individual's home equity may not help the investor to bear the risks of loss that are inherent in performance fee arrangements. Therefore, some of the clients who do not meet the net worth test of rule 205-3 without including the value of their primary residence may not possess the financial experience or ability to bear the risks of performance fee arrangements. We estimate that the exclusion of the value of an individual's primary residence will result in up to 1.3 million households that no longer qualify as “qualified clients” under the revised net worth test and therefore will now be protected by the performance fee restrictions in section 205 of the Advisers Act.<SU>75</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>74</SU>
            <E T="03">See supra</E>notes 3 and 6.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>75</SU>
            <E T="03">See infra</E>notes 79-81. As discussed above, the amendments to rule 205-3 also exclude from the net worth test the amount of debt secured by the primary residence that is no greater than the property's current market value. The exclusion of the debt might limit these benefits in some circumstances. For example, if a client meets the net worth test as a result of the exclusion of debt secured by the primary residence and the market value of the primary residence were to decline to the extent that the debt could not be satisfied by the sale of the residence, the client might be less able to bear the risks related to the performance fee contract and the investments that the adviser might make on behalf of the client.</P>
        </FTNT>
        <P>As discussed above, the exclusion of the value of an individual's primary residence from the calculation of net worth under the rule is similar to changes that Congress required the Commission to make to rules under the Securities Act, including Regulation D.<SU>76</SU>
          <FTREF/>As we noted when we recently adopted those rule amendments, section 413(a) of the Dodd-Frank Act required us to adjust the “accredited investor” net worth standards of certain rules under the Securities Act that apply to individuals, by “excluding the value of the primary residence.”<SU>77</SU>
          <FTREF/>The amendment to rule 205-3 under the Advisers Act we are adopting today, as some commenters argued, will promote regulatory consistency in the treatment of primary residences between this rule and other rules that the Commission has adopted that distinguish high net worth individuals from less wealthy individuals.<SU>78</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>76</SU>
            <E T="03">See supra</E>note 33.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>77</SU>
            <E T="03">See</E>Accredited Investor Adopting Release,<E T="03">supra</E>note 33, at n.18 and accompanying text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>78</SU>
            <E T="03">See supra</E>notes 42-44 and 57 and accompanying text.</P>
        </FTNT>
        <P>The amendments to the rule's transition provisions will allow advisory clients and investment advisers to avoid certain costs resulting from the statutory mandate to adjust for inflation and the Commission's resultant July 2011 Order. The amendments allow an investment adviser and its clients to maintain existing performance fee arrangements that were permissible when the advisory contract was entered into, even if performance fees would not be permissible under the contract if it were entered into at a later date. These transition provisions are designed so that the restrictions on the charging of performance fees apply to new contractual arrangements and do not apply retroactively to existing contractual arrangements, including investments in private investment companies. Otherwise, advisory clients and investment advisers might have to terminate contractual arrangements into which they previously entered and enter into new arrangements, which could be costly to investors and advisers.</P>
        <HD SOURCE="HD2">B. Costs</HD>
        <P>The amendments exclude the value of a person's primary residence and generally exclude debt secured by the property (if no greater than the current market value of the residence) from the calculation of a person's net worth.<SU>79</SU>

          <FTREF/>Based on data from the Federal Reserve Board, approximately 5.5 million households have a net worth of more than $2 million including the equity in the primary residence (<E T="03">i.e.,</E>value minus debt secured by the property), and approximately 4.2 million households have a net worth of more than $2 million excluding the equity in the primary residence.<SU>80</SU>
          <FTREF/>Therefore, approximately 1.3 million households will not meet a $2 million net worth test under the revised test, and will therefore not be considered “qualified clients,” when the value of the primary residence is excluded from the test.<SU>81</SU>
          <FTREF/>Excluding the value of the primary residence (and debt secured by the property up to the current market value of the residence) means that 1.3 million households that would have met the net worth threshold if the value of the residence were included, as is currently permitted, will no longer be “qualified clients” under the revised net worth test and therefore will be unable to enter into performance fee contracts unless they meet another test of rule 205-3.<SU>82</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>79</SU>As discussed above, any increase in the amount of debt secured by the primary residence in the 60 days before the securities are purchased will be included in the net worth calculation as a liability, regardless of the estimated value of the residence.<E T="03">See supra</E>Section II.B; rule 205-3(d)(1)(ii)(A)(2).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>80</SU>These figures are derived from the 2007 Federal Reserve Board Survey of Consumer Finances. These figures represent the net worth of households rather than individual persons who might be clients. More information regarding the survey may be obtained at<E T="03">http://www.federalreserve.gov/pubs/oss/oss2/scfindex.html</E>.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>81</SU>Although some of these 1.3 million households may be grandfathered by the transition provisions of the rule, we assume for the purposes of our analysis that none of these households will be grandfathered. This assumption may therefore result in an overestimation of the costs of the rule amendments.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>82</SU>This estimate, as described in the Proposing Release, was not premised on the notion that investors would borrow against the equity in their primary residence shortly before the calculation of net worth.<E T="03">See</E>Proposing Release,<E T="03">supra</E>note 15, at nn. 47-48 and accompanying text. The 60-day look-back provision in rule 205-3 that we are adopting today, because it reduces the incentives to incur debt secured by residences in order to boost net worth under the rule, strengthens the accuracy of our estimate.<E T="03">See supra</E>notes 55-57 and accompanying text.</P>
        </FTNT>
        <P>For purposes of this cost-benefit analysis, Commission staff assumes that 25 percent of the 1.3 million households would have entered into new advisory contracts that contained performance fee arrangements after the compliance date of the amendments, and therefore approximately 325,000 clients will not meet the revised net worth test.<SU>83</SU>
          <FTREF/>
          <PRTPAGE P="10366"/>Commission staff estimates that about 40 percent of those 325,000 potential clients (<E T="03">i.e.,</E>130,000) will separately meet the “qualified client” definition under the assets-under-management test, and therefore will be able to enter into performance fee arrangements.<SU>84</SU>
          <FTREF/>The remaining 60 percent (195,000 households) will have access only to those investment advisers (directly or through the private investment companies they manage) that charge advisory fees other than performance fees.<SU>85</SU>

          <FTREF/>Some of these investors may be negatively affected by their inability to enter into performance-based compensation arrangements with investment advisers (which arrangements in some ways align the advisers' interests with the clients' interests). These investors also may experience differences in their investment options and returns, changes in advisory service, and the cost of being unable to enter into advisory contracts with their preferred advisers. For purposes of this cost-benefit analysis, Commission staff assumes that approximately 80 percent of the 195,000 households (<E T="03">i.e.,</E>156,000 households) will enter into non-performance fee arrangements, and that the other 20 percent (<E T="03">i.e.,</E>39,000 households) will decide not to invest their assets with an adviser.<SU>86</SU>

          <FTREF/>Commission staff anticipates that the non-performance fee arrangements into which these clients will enter may contain management fees that yield advisers approximately the same amount of fees that clients would have paid under performance fee arrangements. Under these non-performance fee arrangements, if the adviser's performance is not positive or does not reach the level at which it would have accrued performance fees (<E T="03">i.e.,</E>the “hurdle rate” of return), a client might end up paying higher overall fees than if he had paid performance fees.<SU>87</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>83</SU>The assumption that 25% of these investors would have entered into new performance fee arrangements is based on data compiled in a 2008 report sponsored by the Commission.<E T="03">See Angela A. Hung et al., Investor and Industry Perspectives on Investment Advisers and Broker-Dealers</E>130 (Table C.1) (2008) (available at<E T="03">http://www.sec.gov/news/press/2008/2008-1_randiabdreport.pdf</E>). That report indicated that 20% of investment advisers charge performance fees. Id. at 105 (Table 6.13). Commission staff assumes the percentage of investment advisers charging performance fees reflects investor demand for these advisory arrangements. Although the report indicates that 20% of investment advisers charge performance fees, the use of a 25% assumption is intended to<PRTPAGE/>overestimate rather than underestimate costs, especially given the inherent uncertainty surrounding hypothetical events. It is also notable that an average of only 37% of investors indicated they would seek investment advisory services in the next five years. The estimate concerning 1.3 million households is derived from the 2007 Federal Reserve Board Survey of Consumer Finances.<E T="03">See supra</E>note 80 and accompanying and following text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>84</SU>This estimate is based on data filed by registered investment advisers on Form ADV.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>85</SU>Commission staff estimates that less than one percent of registered investment advisers are compensated solely by performance fees, based on data from filings by registered investment advisers on Form ADV.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>86</SU>This assumption is based on the idea that a substantial majority of investment advisers that typically charge performance fees and that in the future would calculate a potential client's net worth and determine that it does not meet the $2 million threshold, will offer alternate compensation arrangements in order to offer their services. As noted above, Commission staff estimates that less than one percent of registered advisers charge performance fees exclusively.<E T="03">See supra</E>note 85.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>87</SU>Performance fee arrangements typically include a “hurdle rate,” which is a minimum rate of return that must be exceeded before the performance fee can be charged.<E T="03">See, e.g., Tamar Frankel, The Regulation of Money Managers</E>§ 12.03[F] (2d ed. Supp. 2009).</P>
        </FTNT>
        <P>Commission staff estimates that the remaining 39,000 households that would have entered into advisory contracts, if the value of the client's primary residence were not excluded from the calculation of a person's net worth, will not enter into advisory contracts. Some of these households will likely seek other investment opportunities. Other households may forego professional investment management altogether because of the higher value they place on the alignment of advisers' interests with their own interests associated with the use of performance fee arrangements.</P>
        <P>We recognize that the exclusion of the value of a person's primary residence from the calculation of a person's net worth will reduce the pool of potential qualified clients for advisers. This, in turn, might result in a reduction in the total fees collected by investment advisers. In order to replace those clients and lost revenue, some advisers may choose to market their services to more potential clients, which may result in increased marketing and administrative costs.<SU>88</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>88</SU>Although advisers that charge performance fees typically require investment minimums of $10,000 or more, one of the steps that advisers may take to market their services to a larger number of potential clients is to reduce their investment minimums. This may result in slightly higher administrative costs for investment advisers that choose to take such action.</P>
        </FTNT>
        <P>Although some commenters asserted that these amendments would harm small advisers or less wealthy clients, commenters did not provide any quantitative data to support their statements.<SU>89</SU>
          <FTREF/>As discussed above, advisers may charge advisory fees other than performance fees in order to obtain revenue from clients who do not meet the definition of “qualified clients.” In addition, clients who no longer meet the net worth test as a result of the exclusion of their primary residence likely would have invested a smaller amount of assets than other clients who continue to meet the test. As a result, the revenue loss to investment advisers from the exclusion of these clients from the performance fee exemption may be mitigated. Moreover, as mentioned above, less wealthy clients can enter into non-performance based compensation arrangements and seek other investment opportunities. Therefore, for the reasons discussed above, we believe that the amendments are unlikely to impose a significant net cost on most advisers and clients.</P>
        <FTNT>
          <P>
            <SU>89</SU>
            <E T="03">See supra</E>notes 38-39 and accompanying text.</P>
        </FTNT>
        <P>One commenter asserted that because liabilities in excess of the value of the primary residence would be included in the net worth calculation the Commission should include in its analysis the cost to clients of obtaining valuations from real estate agents.<SU>90</SU>
          <FTREF/>First, currently investors may include the value of their primary residence in the calculation of their net worth and, as such, those investors that choose to do so must be estimating the value of the primary residence in order to calculate their net worth. Second, the rule requires an estimate, but does not require a third party opinion on valuation either for the primary residence or for any other assets or liabilities. Third, as we noted previously, many online services provide residence valuations at no charge.<SU>91</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>90</SU>
            <E T="03">See</E>G. Merkl Comment Letter.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>91</SU>
            <E T="03">See supra</E>note 50.</P>
        </FTNT>
        <P>Some commenters argued that excluding the value of an investor's primary residence from the net worth test of the rule at the same time as adjusting the rule's dollar amount thresholds for inflation would cause too much change at one time.<SU>92</SU>
          <FTREF/>Although we attribute the costs of inflation-adjusting the dollar amount thresholds of the rule to the Dodd-Frank Act and the order we issued thereunder, we have considered the relative magnitude of each of these changes to the net worth standard in determining the significance of making these changes at the same time. Based on data from the Federal Reserve Board, approximately 7 million households have a net worth of more than $1.5 million (the previous net worth threshold, including primary residence), and approximately 5.5 million households have a net worth of more than $2 million (the revised net worth threshold we established by order in July 2011, including primary residence).<SU>93</SU>

          <FTREF/>Therefore, inflation-adjusting the dollar amount threshold of the net worth test from $1.5 to $2 million will have caused about 1.5 million households to no longer meet the net worth test of the rule. Therefore the numerical effect of the inflation adjustment of the net worth test's dollar amount threshold (1.5 million households) is slightly greater than the exclusion of primary residence from the net worth test (1.3 million<PRTPAGE P="10367"/>households).<SU>94</SU>
          <FTREF/>As discussed above, we are not making these two changes to the rule at the same time.<SU>95</SU>
          <FTREF/>We revised the dollar amount threshold of the net worth test for inflation in July 2011 (as required by statute), and the revision was effective in September 2011. Our current amendment of the net worth test to exclude the value of a primary residence, which will be effective in May 2012, will be effective approximately eight months after the previous change to the net worth test.<SU>96</SU>
          <FTREF/>We believe that what has turned out to be a two-step process (adjustment for inflation followed by exclusion of primary residence), with roughly equal results on the numbers of “qualified clients,” will help to ameliorate the economic impact of the two rule revisions on investment advisers. In addition, we are concerned that delaying beyond 90 days the effective date of excluding primary residence from the net worth standard might encourage some advisers to focus their efforts on entering into performance fee arrangements with clients who will not meet the rule's net worth standards after the effective date.</P>
        <FTNT>
          <P>
            <SU>92</SU>
            <E T="03">See supra</E>note 45 and accompanying text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>93</SU>
            <E T="03">See supra</E>note 80.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>94</SU>
            <E T="03">See supra</E>text accompanying note 81.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>95</SU>
            <E T="03">See supra</E>note 46 and preceding text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>96</SU>Any further revisions of the dollar amount thresholds of rule 205-3 to adjust for inflation are not scheduled to occur until 2016. See rule 205-3(e).</P>
        </FTNT>
        <P>The amendments to the rule's transition provisions are not likely to impose any new costs on advisory clients or investment advisers. As discussed above, the amendments allow an investment adviser and its clients to maintain existing performance fee arrangements that were permissible when the advisory contract was entered into, even if performance fees would not be permissible under the contract if it were entered into at a later date. The amendments also allow for the transfer of an ownership interest in a private investment company by gift or bequest, or pursuant to an agreement relating to a legal separation or divorce to a party that is not a qualified client.<SU>97</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>97</SU>Rule 205-3(c)(3). The rule provides that for purposes of paragraphs 205-3(c)(1) (transition rule for registered investment advisers) and 205-3(c)(2) (transition rule for registered investment advisers that were previously not registered) the transfer of an equity ownership interest in a private investment company by gift or bequest, or pursuant to an agreement related to a legal separation or divorce, will not cause the transferee to become a party to the contract and will not cause section 205(a)(1) of the Act to apply to such transferee.</P>
        </FTNT>
        <P>We do not expect that adjustment of the dollar amount thresholds in rule 205-3, which codifies the adjustments that the Commission effected in its July 2011 order, will impose new costs on advisory clients or investment advisers. The adjustments will have no effect on existing contractual relationships that met applicable requirements under the rule at the time the parties entered into them, because those relationships may continue under the transition provisions of the rule. Although an investment adviser could be prohibited from charging performance fees to new clients to whom it could have charged performance fees if the advisory contract had been entered into before the adjustment of the dollar thresholds, we attribute this effect to the Dodd-Frank Act rather than to this rulemaking. One commenter stated that rather than addressing the contention that the adjustment to the dollar amount thresholds is unfair to small investors, the Commission “passed the buck” back to Congress.<SU>98</SU>
          <FTREF/>The Commission, however, is required to adjust the dollar amount thresholds for the effects of inflation. Exempting less wealthy investors from the limits would be contrary to the purpose of the dollar amount thresholds, which is to limit the availability of the exemption to clients who are financially experienced and able to bear the risks of performance fee arrangements.</P>
        <FTNT>
          <P>
            <SU>98</SU>
            <E T="03">See</E>P. Goldstein Comment Letter.</P>
        </FTNT>
        <P>Section 418 of the Dodd-Frank Act does not specify how the Commission should measure inflation in adjusting the dollar amount thresholds. We proposed, and are adopting, the PCE Index because it is widely used as a broad indicator of inflation in the economy and because the Commission has used the PCE Index in other contexts. It is possible that the use of the PCE Index to measure inflation might result in a larger or smaller dollar amount for the two thresholds than the use of a different index, but the rounding required by the Dodd-Frank Act (to the nearest $100,000) likely negates any difference between indexes.</P>
        <HD SOURCE="HD1">IV. Paperwork Reduction Act</HD>
        <P>The amendments to rule 205-3 under the Investment Advisers Act do not contain any “collection of information” requirements as defined by the Paperwork Reduction Act of 1995, as amended (“PRA”).<SU>99</SU>
          <FTREF/>Accordingly, the PRA is not applicable. We received no comments on any PRA issues.</P>
        <FTNT>
          <P>
            <SU>99</SU>44 U.S.C. 3501-3520.</P>
        </FTNT>
        <HD SOURCE="HD1">V. Regulatory Flexibility Act Certification</HD>
        <P>The Commission certified in the Proposing Release, pursuant to section 605(b) of the Regulatory Flexibility Act of 1980 (“RFA”),<SU>100</SU>
          <FTREF/>that the proposed rule amendments would not, if adopted, have a significant impact on a substantial number of small entities.<SU>101</SU>
          <FTREF/>As we explained in the Proposing Release, under Commission rules, for the purposes of the Advisers Act and the RFA, an investment adviser generally is a small entity if it: (i) Has assets under management having a total value of less than $25 million; (ii) did not have total assets of $5 million or more on the last day of its most recent fiscal year; and (iii) does not control, is not controlled by, and is not under common control with another investment adviser that has assets under management of $25 million or more, or any person (other than a natural person) that had total assets of $5 million or more on the last day of its most recent fiscal year (“small adviser”).<SU>102</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>100</SU>5 U.S.C. 605(b).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>101</SU>
            <E T="03">See</E>Proposing Release,<E T="03">supra</E>note 15, at Section VI.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>102</SU>Rule 0-7(a).</P>
        </FTNT>
        <P>Based on information in filings submitted to the Commission, 617 of the approximately 11,888 investment advisers registered with the Commission are small entities. Only approximately 20 percent of the 617 registered investment advisers that are small entities (about 122 advisers) charge any of their clients performance fees. In addition, 24 of the 122 advisers required at the time of the Proposing Release an initial investment from their clients that would meet the then current assets-under-management threshold ($750,000), which advisory contracts will be grandfathered into the exemption provided by rule 205-3 under the amendments. Therefore, if these advisers in the future raise those minimum investment levels to the revised level that we issued by order ($1 million), those advisers could charge their clients performance fees because the clients would meet the assets-under-management test, even if they would not meet the revised net worth test that excludes the value of the client's primary residence. For these reasons, the Commission believes that the amendments to rule 205-3 will not have a significant economic impact on a substantial number of small entities. The Commission requested written comments regarding the certification. One commenter stated that the Proposing Release includes “suspicious” quantified data to support the claim as to how few advisers will be affected by the required review every five years.<SU>103</SU>

          <FTREF/>The commenter provided no further detail about why the quantified data was suspicious, or any<PRTPAGE P="10368"/>alternative empirical data, and did not address the number of small advisers that would be affected.<SU>104</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>103</SU>
            <E T="03">See</E>Comment Letter of David Flatray (May 29, 2011).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>104</SU>
            <E T="03">Id.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD1">VI. Statutory Authority</HD>
        <P>The Commission is adopting amendments to rule 205-3 pursuant to the authority set forth in section 205(e) of the Investment Advisers Act of 1940 [15 U.S.C. 80b-5(e)].</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 17 CFR Part 275</HD>
          <P>Reporting and recordkeeping requirements, Securities.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Text of Rules</HD>
        <AMDPAR>For the reasons set out in the preamble, Title 17, Chapter II of the Code of Federal Regulations is amended as follows:</AMDPAR>
        <REGTEXT PART="275" TITLE="17">
          <PART>
            <HD SOURCE="HED">PART 275—RULES AND REGULATIONS, INVESTMENT ADVISERS ACT OF 1940</HD>
          </PART>
          <AMDPAR>1. The general authority citation for Part 275 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>15 U.S.C. 80b-2(a)(11)(G), 80b-2(a)(11)(H), 80b-2(a)(17), 80b-3, 80b-4, 80b-4a, 80b-6(4), 80b-6a, 80b-11, unless otherwise noted.</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="275" TITLE="17">
          <STARS/>
          <AMDPAR>2. Section 275.205-3 is amended by:</AMDPAR>
          <AMDPAR>a. Revising paragraph (c);</AMDPAR>
          <AMDPAR>b. Revising paragraphs (d)(1)(i) and (ii); and</AMDPAR>
          <AMDPAR>c. Adding paragraph (e).</AMDPAR>
          <P>The revisions and addition read as follows:</P>
          <SECTION>
            <SECTNO>§ 275.205-3</SECTNO>
            <SUBJECT>Exemption from the compensation prohibition of section 205(a)(1) for investment advisers.</SUBJECT>
            <STARS/>
            <P>(c)<E T="03">Transition rules</E>—(1)<E T="03">Registered investment advisers.</E>If a registered investment adviser entered into a contract and satisfied the conditions of this section that were in effect when the contract was entered into, the adviser will be considered to satisfy the conditions of this section;<E T="03">Provided,</E>however, that if a natural person or company who was not a party to the contract becomes a party (including an equity owner of a private investment company advised by the adviser), the conditions of this section in effect at that time will apply with regard to that person or company.</P>
            <P>(2)<E T="03">Registered investment advisers that were previously not registered.</E>If an investment adviser was not required to register with the Commission pursuant to section 203 of the Act (15 U.S.C. 80b-3) and was not registered, section 205(a)(1) of the Act will not apply to an advisory contract entered into when the adviser was not required to register and was not registered, or to an account of an equity owner of a private investment company advised by the adviser if the account was established when the adviser was not required to register and was not registered;<E T="03">Provided,</E>however, that section 205(a)(1) of the Act will apply with regard to a natural person or company who was not a party to the contract and becomes a party (including an equity owner of a private investment company advised by the adviser) when the adviser is required to register.</P>
            <P>(3)<E T="03">Certain transfers of interests.</E>Solely for purposes of paragraphs (c)(1) and (c)(2) of this section, a transfer of an equity ownership interest in a private investment company by gift or bequest, or pursuant to an agreement related to a legal separation or divorce, will not cause the transferee to “become a party” to the contract and will not cause section 205(a)(1) of the Act to apply to such transferee.</P>
            <P>(d) * * *</P>
            <P>(1) * * *</P>
            <P>(i) A natural person who, or a company that, immediately after entering into the contract has at least $1,000,000 under the management of the investment adviser;</P>
            <P>(ii) A natural person who, or a company that, the investment adviser entering into the contract (and any person acting on his behalf) reasonably believes, immediately prior to entering into the contract, either:</P>
            <P>(A) Has a net worth (together, in the case of a natural person, with assets held jointly with a spouse) of more than $2,000,000. For purposes of calculating a natural person's net worth:</P>
            <P>(<E T="03">1</E>) The person's primary residence must not be included as an asset;</P>
            <P>(<E T="03">2</E>) Indebtedness secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time the investment advisory contract is entered into may not be included as a liability (except that if the amount of such indebtedness outstanding at the time of calculation exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess must be included as a liability); and</P>
            <P>(<E T="03">3</E>) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the residence must be included as a liability; or</P>
            <P>(B) Is a qualified purchaser as defined in section 2(a)(51)(A) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(51)(A)) at the time the contract is entered into; or</P>
            <STARS/>
            <P>(e)<E T="03">Inflation adjustments.</E>Pursuant to section 205(e) of the Act, the dollar amounts specified in paragraphs (d)(1)(i) and (d)(1)(ii)(A) of this section shall be adjusted by order of the Commission, on or about May 1, 2016 and issued approximately every five years thereafter. The adjusted dollar amounts established in such orders shall be computed by:</P>
            <P>(1) Dividing the year-end value of the Personal Consumption Expenditures Chain-Type Price Index (or any successor index thereto), as published by the United States Department of Commerce, for the calendar year preceding the calendar year in which the order is being issued, by the year-end value of such index (or successor) for the calendar year 1997;</P>
            <P>(2) For the dollar amount in paragraph (d)(1)(i) of this section, multiplying $750,000 times the quotient obtained in paragraph (e)(1) of this section and rounding the product to the nearest multiple of $100,000; and</P>
            <P>(3) For the dollar amount in paragraph (d)(1)(ii)(A) of this section, multiplying $1,500,000 times the quotient obtained in paragraph (e)(1) of this section and rounding the product to the nearest multiple of $100,000.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          
          <P>By the Commission.</P>
          <NAME>Elizabeth M. Murphy,</NAME>
          <TITLE>Secretary.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4046 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 8011-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>U.S. Customs and Border Protection</SUBAGY>
        <AGENCY TYPE="O">DEPARTMENT OF THE TREASURY</AGENCY>
        <CFR>19 CFR Parts 10 and 163</CFR>
        <DEPDOC>[CBP Dec. 12-02; USCBP-2011-0030]</DEPDOC>
        <RIN>RIN 1515-AD75</RIN>
        <SUBJECT>Duty-Free Treatment of Certain Visual and Auditory Materials</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>This document adopts as a final rule, without change, the proposed amendments to the U.S. Customs and Border Protection (CBP) regulations to permit an applicant to file the<PRTPAGE P="10369"/>documentation required for duty-free treatment of certain visual and auditory materials of an educational, scientific, or cultural character under subheading 9817.00.40, Harmonized Tariff Schedule of the United States (HTSUS), at any time prior to the liquidation of the entry. This change allots more time for the importer to provide the necessary certification documentation to CBP and serves to align the filing of required certification documentation with a change in CBP policy that extended the liquidation cycle for entries in the ordinary course of business from 90 days to 314 days after the date of entry.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective date:</E>March 23, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Robert Dinerstein, Valuation and Special Programs Branch, Regulations and Rulings, Office of International Trade, (202) 325-0132.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>

        <P>On August 19, 2011, U.S. Customs and Border Protection (CBP) published in the<E T="04">Federal Register</E>(76 FR 51914) a proposal to amend title 19 of the Code of Federal Regulations (19 CFR) regarding the filing of documentation for duty-free treatment of certain visual and auditory materials of an educational, scientific, or cultural character under subheading 9817.00.40, HTSUS. Specifically, CBP proposed amendments to the regulations to provide for the suspension of the liquidation cycle for entries in the ordinary course of business from 90 days to 314 days after the date of entry, or until the required documentation is submitted, whichever occurs first. This proposal also proposed to make a non-substantive change to the listing in the Appendix to Part 163 to reflect the State Department rather than the abolished U.S. Information Agency (USIA).</P>
        <P>CBP solicited comments from the public on the proposed rulemaking; however, CBP received no comments in response to its solicitation in 76 FR 51914.</P>
        <HD SOURCE="HD1">Conclusion</HD>

        <P>In light of the fact that no comments were submitted in response to CBP's solicitation of public comment, CBP has determined to adopt as a final rule the proposed amendments in the Notice of Proposed Rulemaking published in the<E T="04">Federal Register</E>(76 FR 51914) on August 19, 2011.</P>
        <HD SOURCE="HD1">The Regulatory Flexibility Act and Executive Order 12866</HD>
        <P>The Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>) requires Federal agencies to examine the impact a rule will have on small entities. A small entity may be: a small business (defined as any independently owned and operated business not dominant in its field that qualifies as a small business under the Small Business Act); a small not-for-profit organization; or a small governmental jurisdiction (locality with fewer than 50,000 people). Because these amendments provide more time for an importer to obtain the State Department certificate, CBP certifies under 5 U.S.C. 605(b) that the amendments will not have a significant economic impact on a substantial number of small entities. Further, these amendments do not meet the criteria for a “significant regulatory action” as specified in Executive Order 12866.</P>
        <HD SOURCE="HD1">Paperwork Reduction Act</HD>
        <P>As there are no new collections of information in this document, the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) are inapplicable.</P>
        <HD SOURCE="HD1">Signing Authority</HD>
        <P>This rulemaking is being issued in accordance with 19 CFR 0.1(a)(1), pertaining to the authority of the Secretary of the Treasury (or his/her delegate) to approve regulations related to certain CBP revenue functions.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects</HD>
          <CFR>19 CFR Part 10</CFR>
          <P>Customs duties and inspection, Entry, Imports, Preference programs, Reporting and recordkeeping requirements, Trade agreements.</P>
          <CFR>19 CFR Part 163</CFR>
          <P>Administrative practice and procedure, Customs duties and inspection, Exports, Imports, Reporting and recordkeeping requirements, Trade agreements.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Amendments to the CBP Regulations</HD>
        <P>For the reasons set forth above, parts 10 and 163 of title 19 of the Code of Federal Regulations (19 CFR parts 10 and 163) are amended as set forth below.</P>
        <REGTEXT PART="10" TITLE="19">
          <PART>
            <HD SOURCE="HED">PART 10—ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.</HD>
          </PART>
          <AMDPAR>1. The general authority citation for part 10 continues to read and a specific authority is added for § 10.121 as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 1498, 1508, 1623, 1624, 3314.</P>
          </AUTH>
          <STARS/>
          <EXTRACT>
            <P>Section 10.121 also issued under 19 U.S.C. 2501.</P>
          </EXTRACT>
          <STARS/>
        </REGTEXT>
        <REGTEXT PART="10" TITLE="19">
          <AMDPAR>2. Section 10.121(b) is revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 10.121</SECTNO>
            <SUBJECT>Visual or auditory materials of an educational, scientific, or cultural character.</SUBJECT>
            <STARS/>
            <P>(b) Articles entered under subheading 9817.00.40, HTSUS, will be released from CBP custody prior to submission of the document required in paragraph (a) of this section only upon the deposit of estimated duties with the port director. Liquidation of an entry which has been released under this procedure will be suspended for a period of 314 days from the date of entry or until the required document is submitted, whichever comes first. In the event that documentation is not submitted before liquidation, the merchandise will be classified and liquidated in the ordinary course, without regard to subheading 9817.00.40, HTSUS.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="163" TITLE="19">
          <PART>
            <HD SOURCE="HED">PART 163—RECORDKEEPING</HD>
          </PART>
          <AMDPAR>3. The authority citation for part 163 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510, 1624.</P>
          </AUTH>
          <STARS/>
          <HD SOURCE="HD1">Appendix to Part 163—[Amended]</HD>
          <AMDPAR>4. Section IV is amended by removing the listing “§ 10.121 Certificate from USIA for visual/auditory materials” and adding in its place the listing “§ 10.121 Certificate from the U.S. Department of State for visual/auditory materials”.</AMDPAR>
        </REGTEXT>
        <SIG>
          <NAME>David V. Aguilar,</NAME>
          <TITLE>Acting Commissioner, U.S. Customs and Border Protection.</TITLE>
          <DATED>Approved: February 16, 2012.</DATED>
          <NAME>Timothy E. Skud,</NAME>
          <TITLE>Deputy Assistant Secretary of the Treasury.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4091 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9111-14-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <PRTPAGE P="10370"/>
        <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
        <SUBAGY>Internal Revenue Service</SUBAGY>
        <CFR>26 CFR Part 301</CFR>
        <DEPDOC>[TD 9580]</DEPDOC>
        <RIN>RIN 1545-BJ89</RIN>
        <SUBJECT>Rewards and Awards for Information Relating to Violations of Internal Revenue Laws</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Internal Revenue Service (IRS), Treasury.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final regulations.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This document contains final regulations relating to the payment of rewards under section 7623(a) of the Internal Revenue Code for detecting underpayments or violations of the internal revenue laws and whistleblower awards under section 7623(b). The guidance is necessary to clarify the definition of proceeds of amounts collected and collected proceeds under section 7623. This regulation provides needed guidance to the general public as well as officers and employees of the IRS who review claims under section 7623.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>This final regulation is effective on February 22, 2012.</P>
          <P>
            <E T="03">Applicability Date:</E>For dates of applicability, see § 301.7623-1(g).</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Kirsten N. Witter, at (202) 927-0900 (not a toll-free number).</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>
        <P>Section 7623(a) provides the Secretary with the authority to pay such sums as he deems necessary from proceeds of amounts collected based on information provided to the Secretary when the information relates to the detection of underpayments of tax or the detection and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same. Section 7623(b) provides the Secretary with the authority to pay awards to individuals if the Secretary proceeds with an administrative or judicial action described in section 7623(a) that results in collected proceeds based on information provided by the individuals. Section 301.7623-1(a) of the regulations on Procedure and Administration currently provides that proceeds of amounts (other than interest) collected by reason of the information provided include both amounts collected because of the information provided and amounts collected prior to receipt of the information if the information leads to the denial of a claim for refund that otherwise would have been paid. 63 FR 44777.</P>
        <P>Section 301.7623-1(a) was promulgated prior to amendments of section 7623 as part of the Tax Relief and Health Care Act of 2006, division A, section 406, Public Law 109-432, 120 Stat. 2958. The amendments designated existing section 7623 as section 7623(a). Before the 2006 amendments, section 7623 provided that rewards shall be paid “from the proceeds of amounts (other than interest) collected by reason of the information provided * * *.” The 2006 Act struck the “other than interest” language. The Act also added section 7623(b), which provides that in certain cases individuals shall receive an award of at least 15% but not more than 30% of the collected proceeds resulting from the action with which the Secretary proceeded based on information brought to the attention of the Secretary by the individual. The Act also created the IRS Whistleblower Office, which is responsible for administering a whistleblower program within the IRS.</P>

        <P>On January 18, 2011, a notice of proposed rulemaking (REG-131151-10) was published in the<E T="04">Federal Register</E>(76 FR 2852) clarifying the definitions of proceeds of amounts collected and collected proceeds for purposes of section 7623, and providing that the provisions of Treas. Reg. § 301.7623-1(a) concerning refund prevention claims are applicable to claims under section 7623(a) and (b). The proposed regulations further provide that the reduction of an overpayment credit balance is also considered proceeds of amounts collected and collected proceeds under section 7623.</P>
        <P>Seventeen written comments responding to the notice of proposed rulemaking were received. A public hearing was held on May 11, 2011. After consideration of the comments and hearing testimony, the regulation is adopted as proposed.</P>
        <P>Other issues concerning the whistleblower statute, including terminology, additional definitions, and implementation of the statute, all of which were beyond the scope of these regulations, have been deferred and will be considered and addressed, if appropriate, in future guidance.</P>
        <HD SOURCE="HD1">Summary of Comments</HD>
        <P>Several commenters recommended removal of “overpayment” as a modifier of credit balance. The commenters suggested that the term only applied to individual taxpayers, and would discourage claimants from coming forward with information about corporate taxpayers. Further, the commenters stated that “overpayment” unnecessarily limits the definition of collected proceeds as credit balances may arise in circumstances other than an overpayment.</P>
        <P>The use of the term “overpayment credit balance” was intended to include amounts that have been credited to a taxpayer's account and that would have been refunded to the taxpayer under section 6402 but for the information provided by the whistleblower. These amounts represent monies credited to the taxpayer's account that are available to pay any tax liability or certain other liabilities, or to be refunded to the taxpayer. Overpayment credit balances are distinguishable from other types of balances shown on a taxpayer's account, such as a cash deposit under section 6603. Both individual and corporate taxpayers may have overpayment credit balances. Accordingly, the final regulations retain the term “overpayment credit balance” as consistent with the payment and refund provisions of the Code.</P>

        <P>A number of commenters recommended that the definition of collected proceeds specifically include net operating losses (NOLs). In contrast to overpayment credit balances, NOLs and similar tax attributes do not represent amounts credited to the taxpayer's account that are directly available to satisfy current or future tax liabilities or that can be refunded. Rather, tax attributes such as NOLs are component elements of a taxpayer's tax liability. If an NOL claimed by a taxpayer is disallowed as a result of information provided by a whistleblower, the IRS will factor that disallowance into the computation of the taxpayer's liability, which may, in turn, result in collected proceeds. For example: A taxpayer reports an NOL of $10 million for 2009 and a whistleblower's information results in a reduction of the NOL to $5 million. If the NOL is unused as of the date the IRS computes the amount of collected proceeds, there are no collected proceeds. If, however, the 2009 NOL was partially carried back to 2008, initially generating a $3 million refund, and the whistleblower's information reduced the carryback amount, resulting in a $1.5 million reduction in the refund for 2008, then the amount of the erroneous refund recovered and collected would be collected proceeds. The final regulation's definition of collected proceeds, therefore, does not refer explicitly to NOLs, tax credits, or any other tax attributes that may factor<PRTPAGE P="10371"/>into the computation of a particular taxpayer's liability.</P>
        <P>Several commenters suggested that collected proceeds should include criminal fines. Under the Victims of Crimes Act of 1984, criminal fines that are imposed on a defendant by a district court are deposited into the Crime Victims Fund (CVF). 42 U.S.C. 10601(b)(1). Criminal fines imposed for Title 26 offenses are not exempt from this requirement. The fines imposed in criminal tax cases that are deposited into the CVF are not available to the Secretary to pay awards under section 7623. As criminal fines deposited in the CVF are not available to pay awards, the final regulations do not include criminal fines in the definition of collected proceeds. However, restitution ordered by a court to the IRS is collected as a tax by the IRS and, therefore, is encompassed in the definition of collected proceeds.</P>
        <P>Several commenters suggested that whistleblowers should be rewarded for the prevention of future tax avoidance based on the whistleblower's information. Whether the IRS has the authority to make such an award under section 7623 and, if so, how the amount of the award would be determined and paid, is beyond the scope of this regulation. The final regulations do not address awards relating to the prevention of future tax avoidance.</P>
        <HD SOURCE="HD1">Special Analysis</HD>
        <P>It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and, because the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, these regulations have been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses.</P>
        <HD SOURCE="HD1">Drafting Information</HD>
        <P>The principal author of this regulation is Kirsten N. Witter, Office of the Associate Chief Counsel (General Legal Services).</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 26 CFR Part 301</HD>
          <P>Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes, Penalties, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Amendments to the Regulations</HD>
        <P>Accordingly, 26 CFR part 301 is amended as follows:</P>
        <REGTEXT PART="201" TITLE="26">
          <PART>
            <HD SOURCE="HED">PART 301—PROCEDURE AND ADMINISTRATION</HD>
          </PART>
          <AMDPAR>
            <E T="04">Paragraph 1.</E>The authority citation for part 301 is amended by adding an entry in numerical order to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>26 U.S.C. 7805 * * *</P>
          </AUTH>
          <EXTRACT>
            <P>Section 301.7623-1 also issued under 26 U.S.C. 7623. * * *</P>
          </EXTRACT>
          
        </REGTEXT>
        <REGTEXT PART="301" TITLE="26">
          <AMDPAR>
            <E T="04">Par. 2.</E>Section 301.7623-1 is amended by revising the section heading, and paragraphs (a) and (g) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 301.7623-1</SECTNO>
            <SUBJECT>Rewards and awards for information relating to violations of internal revenue laws.</SUBJECT>
            <P>(a)<E T="03">In general</E>—(1)<E T="03">Rewards and awards.</E>When information that has been provided to the Internal Revenue Service results in the detection of underpayments of tax or the detection and bringing to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same, the IRS may approve a reward under section 7623(a) in a suitable amount from the proceeds of amounts collected in cases when rewards are not otherwise provided by law, or shall determine an award under section 7623(b) from collected proceeds.</P>
            <P>(2)<E T="03">Proceeds of amounts collected and collected proceeds.</E>For purposes of section 7623 and this section, both proceeds of amounts collected and collected proceeds include: Tax, penalties, interest, additions to tax, and additional amounts collected by reason of the information provided; amounts collected prior to receipt of the information if the information provided results in the denial of a claim for refund that otherwise would have been paid; and a reduction of an overpayment credit balance used to satisfy a tax liability incurred because of the information provided.</P>
            <STARS/>
            <P>(g)<E T="03">Effective/applicability date.</E>Paragraph (a) is effective on February 22, 2012. This section is applicable with respect to rewards paid after January 29, 1997, except the rules of paragraph (a) of this section apply with respect to rewards and awards paid after February 22, 2012.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <NAME>Steven T. Miller,</NAME>
          <TITLE>Deputy Commissioner for Services and Enforcement.</TITLE>
          <DATED>Approved: February 14, 2012.</DATED>
          <NAME>Emily S. McMahon,</NAME>
          <TITLE>(Acting) Assistant Secretary of the Treasury (Tax Policy).</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3989 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4830-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 117</CFR>
        <DEPDOC>[Docket No. USCG-2012-0081]</DEPDOC>
        <SUBJECT>Drawbridge Operation Regulation; Sacramento River, Sacramento, CA</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of temporary deviation from regulations.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Commander, Eleventh Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the Tower Drawbridge across the Sacramento River, mile 59.0, at Sacramento, CA. The deviation is necessary to allow the bridge owner to conduct maintenance of the bridge. This deviation allows the bridge to remain in the closed-to-navigation position during the maintenance period.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This deviation is effective from 7 a.m. on March 5, 2012 through 7 p.m. on March 16, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble as being available in the docket are part of docket USCG-2012-0081 and are available online by going to<E T="03">http://www.regulations.gov,</E>inserting USCG-2012-0081 in the “Keyword” box and then clicking “Search”. They are also available for inspection or copying at the Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email David H. Sulouff, Chief, Bridge Section, Eleventh Coast Guard District; telephone 510-437-3516, email<E T="03">David.H.Sulouff@uscg.mil.</E>If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <PRTPAGE P="10372"/>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>The California Department of Transportation (Caltrans) has requested a temporary change to the operation of the Tower Drawbridge, mile 59.0, Sacramento River, at Sacramento, CA. The Tower Drawbridge navigation span provides a vertical clearance of 30 feet above Mean High Water in the closed-to-navigation position. The draw opens on signal from May 1 through October 31 from 6 a.m. to 10 p.m. and from November 1 through April 30 from 9 a.m. to 5 p.m. At all other times the draw shall open on signal if at least four hours notice is given, as required by 33 CFR 117.189(a). Navigation on the waterway is commercial and recreational.</P>
        <P>The drawspan will be secured in the closed-to-navigation position from 7 a.m. on March 5, 2012 through 7 p.m. on March 9, 2012 and from 7 a.m. on March 12, 2012 through 7 p.m. on March 16, 2012 to allow Caltrans to replace the lifting cables on the drawspan. This temporary deviation has been coordinated with waterway users. There are no scheduled river boat cruises or anticipated levee maintenance during this deviation period. No objections to the proposed temporary deviation were raised. Vessels that can transit the bridge, while in the closed-to-navigation position, may continue to do so at any time.</P>
        <P>In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35.</P>
        <SIG>
          <DATED>Dated: February 6, 2012.</DATED>
          <NAME>D.H. Sulouff,</NAME>
          <TITLE>District Bridge Chief, Eleventh Coast Guard District.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4016 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 117</CFR>
        <DEPDOC>[Docket No. USCG-2012-0049]</DEPDOC>
        <SUBJECT>Drawbridge Operation Regulation; Sacramento River, Sacramento, CA</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of temporary deviation from regulations.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Commander, Eleventh Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the Tower Drawbridge across the Sacramento River, mile 59.0, at Sacramento, CA. The deviation is necessary to allow the community to participate in the 8th Annual Shamrock Half Marathon. This deviation allows the bridge to remain in the closed-to-navigation position during the event.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This deviation is effective from 7:30 a.m. to 1:05 p.m. on March 11, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble as being available in the docket are part of docket USCG-2012-0049 and are available online by going to<E T="03">http://www.regulations.gov,</E>inserting USCG-2012-0049 in the “Keyword” box and then clicking “Search”. They are also available for inspection or copying at the Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email David H. Sulouff, Chief, Bridge Section, Eleventh Coast Guard District; telephone 510-437-3516, email<E T="03">David.H.Sulouff@uscg.mil</E>. If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>The California Department of Transportation has requested a temporary change to the operation of the Tower Drawbridge, mile 59.0, Sacramento River, at Sacramento, CA. The Tower Drawbridge navigation span provides a vertical clearance of 30 feet above Mean High Water in the closed-to-navigation position. The draw opens on signal from May 1 through October 31 from 6 a.m. to 10 p.m. and from November 1 through April 30 from 9 a.m. to 5 p.m. At all other times the draw shall open on signal if at least four hours notice is given, as required by 33 CFR 117.189(a). Navigation on the waterway is commercial and recreational.</P>
        <P>The drawspan will be secured in the closed-to-navigation position from 7:30 a.m. to 1:05 p.m. on March 11, 2012 to allow the community to participate in the 8th Annual Shamrock Half Marathon. This temporary deviation has been coordinated with waterway users. There are no scheduled river boat cruises or anticipated levee maintenance during this deviation period. No objections to the proposed temporary deviation were raised. Vessels that can transit the bridge, while in the closed-to-navigation position, may continue to do so at any time. In the event of an emergency the drawspan can be opened with 15 minutes advance notice.</P>
        <P>In accordance with 33 CFR 117.35(e), the drawbridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35.</P>
        <SIG>
          <DATED>Dated: January 3, 2012.</DATED>
          <NAME>D.H. Sulouff,</NAME>
          <TITLE>District Bridge Chief, Eleventh Coast Guard District.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4019 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 117</CFR>
        <DEPDOC>[Docket No. USCG-2012-0086]</DEPDOC>
        <SUBJECT>Drawbridge Operation Regulations; The Gut, South Bristol, ME</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of temporary deviation from regulations.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Commander, First Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the Gut Bridge, mile 0.2, across The Gut at South Bristol, Maine. The deviation is necessary to facilitate subsurface test boring at the bridge. This deviation will allow the bridge to remain in the closed position for two days.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This deviation is effective from 7 a.m. on February 29, 2012 through 7 p.m. on March 1, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble as being available in the docket are part of docket USCG-2012-0086 and are available online at<E T="03">www.regulations.gov,</E>inserting USCG-2012-0086 in the “Keyword” and then clicking “Search”. They are also available for inspection or copying at the Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC, 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email Mr. John W. McDonald, Project Officer, First Coast Guard District, telephone (617) 223-8364. If you have questions on viewing the docket, call Renee V. Wright, Program Manager,<PRTPAGE P="10373"/>Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>The Gut Bridge, across The Gut, mile 0.2, has a vertical clearance in the closed position of 3 feet at mean high water and 12 feet at mean low water. The existing drawbridge operation regulations are listed at 33 CFR 117.5.</P>
        <P>The waterway supports recreational vessels of various sizes. There is an alternate route for vessels to use; however, vessels that can pass under the bridge in the closed position may do so at all times.</P>
        <P>The owner of the bridge, Maine Department of Transportation, requested a temporary deviation to facilitate subsurface test borings at the bridge.</P>
        <P>Under this temporary deviation the Gut Bridge may remain in the closed position from 7 a.m. through 7 p.m. on February 29, 2012 and also on March 1, 2012.</P>
        <P>In accordance with 33 CFR 117.35(e), the bridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35.</P>
        <SIG>
          <DATED>Dated: February 10, 2012.</DATED>
          <NAME>Gary Kassof,</NAME>
          <TITLE>Bridge Program Manager, First Coast Guard District.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4020 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 98</CFR>
        <DEPDOC>[EPA-HQ-OAR-2011-0512; FRL-9633-5]</DEPDOC>
        <RIN>RIN 2060-AR09</RIN>
        <SUBJECT>Greenhouse Gas Reporting Program: Electronics Manufacturing: Revisions to Heat Transfer Fluid Provisions</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The EPA is finalizing technical revisions to the electronics manufacturing source category of the Greenhouse Gas Reporting Rule related to fluorinated heat transfer fluids. More specifically, EPA is finalizing amendments to the definition of fluorinated heat transfer fluids and to the provisions to estimate and report emissions from fluorinated heat transfer fluids. This final rule is narrow in scope and does not address any other changes related to the electronics manufacturing source category.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule will be effective on March 23, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The EPA has established a docket for this action under Docket ID No. EPA-HQ-OAR-2011-0512. All documents in the docket are listed in the<E T="03">http://www.regulations.gov</E>index.</P>

          <P>Although listed in the index, some information may not be publicly available, e.g., confidential business information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and is publicly available in hard copy only. Publicly available docket materials are available either electronically through<E T="03">http://www.regulations.gov</E>or in hard copy at the EPA's Docket Center, EPA/DC, EPA West Building, Room 3334, 1301 Constitution Ave. NW., Washington, DC. This Docket Facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744, and the telephone number for the Air Docket is (202) 566-1742.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Carole Cook, Climate Change Division, Office of Atmospheric Programs (MC-6207J), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number: (202) 343-9263; fax number: (202) 343-2342; email address:<E T="03">GHGReportingRule@epa.gov.</E>For technical information and implementation materials, please go to the Web site<E T="03">http://www.epa.gov/climatechange/emissions/subpart/i.html.</E>To submit a question, select “Rule Help Center,” followed by “Contact Us.”</P>
          <P>
            <E T="03">Worldwide Web (WWW</E>). In addition to being available in Docket ID No. EPA-HQ-OAR-2011-0512, following the Administrator's signature, an electronic copy of this final rule will also be available through the WWW on the EPA's Greenhouse Gas Reporting Program Web site at<E T="03">http://www.epa.gov/climatechange/emissions/ghgrulemaking.html.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P SOURCE="NPAR">
          <E T="03">Regulated Entities.</E>The Administrator determined that this action is subject to the provisions of Clean Air Act (CAA) section 307(d). These amended regulations could affect owners or operators of certain electronic manufacturing facilities. Regulated categories and entities may include those listed in Table 1 of this preamble:</P>
        <GPOTABLE CDEF="xs150,12,r150" COLS="3" OPTS="L2,i1">
          <TTITLE>Table 1—Examples of Affected Entities by Category</TTITLE>
          <BOXHD>
            <CHED H="1">Source category</CHED>
            <CHED H="1">NAICS</CHED>
            <CHED H="1">Examples of affected facilities</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Electronics Manufacturing</ENT>
            <ENT>334111</ENT>
            <ENT>Microcomputers manufacturing facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>334413</ENT>
            <ENT>Semiconductor, photovoltaic (solid-state) device manufacturing facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>334419</ENT>
            <ENT>Liquid Crystal Display (LCD) unit screens manufacturing facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>334419</ENT>
            <ENT>Micro-electro-mechanical systems (MEMS) manufacturing facilities.</ENT>
          </ROW>
        </GPOTABLE>

        <P>Table 1 of this preamble is not intended to be exhaustive, but rather provides a guide for readers regarding facilities likely to be affected by this action. Table 1 of this preamble lists the types of facilities of which the EPA is aware could be potentially affected by the reporting requirements. Other types of facilities not listed in the table could also be affected. To determine whether you are affected by this action, you should carefully examine the applicability criteria found in 40 CFR part 98, subpart A and 40 CFR part 98, subpart I. If you have questions regarding the applicability of this action to a particular facility, consult the person listed in the preceding<E T="02">FOR FURTHER INFORMATION CONTACT</E>section.</P>
        <P>
          <E T="03">Judicial Review.</E>Under CAA section 307(b)(1), judicial review of this final rule is available only by filing a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit (the Court) by April 23, 2012. Under CAA section 307(d)(7)(B), only an objection to this final rule that was raised with reasonable specificity during the period for public comment can be raised during<PRTPAGE P="10374"/>judicial review. Section 307(d)(7)(B) of the CAA also provides a mechanism for the EPA to convene a proceeding for reconsideration, “[i]f the person raising an objection can demonstrate to EPA that it was impracticable to raise such objection within [the period for public comment] or if the grounds for such objection arose after the period for public comment (but within the time specified for judicial review) and if such objection is of central relevance to the outcome of the rule.” Any person seeking to make such a demonstration to us should submit a Petition for Reconsideration to the Office of the Administrator, Environmental Protection Agency, Room 3000, Ariel Rios Building, 1200 Pennsylvania Ave. NW., Washington, DC 20460, with a copy to the person listed in the preceding<E T="02">FOR FURTHER INFORMATION CONTACT</E>section, and the Associate General Counsel for the Air and Radiation Law Office, Office of General Counsel (Mail Code 2344A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20004. Note that under CAA section 307(b)(2), the requirements established by this final rule may not be challenged separately in any civil or criminal proceedings brought by the EPA to enforce these requirements.</P>
        <P>
          <E T="03">Acronyms and Abbreviations.</E>The following acronyms and abbreviations are used in this document.</P>
        
        <EXTRACT>
          <FP SOURCE="FP-1">CAAClean Air Act</FP>
          <FP SOURCE="FP-1">CARBCalifornia Air Resources Board</FP>
          <FP SOURCE="FP-1">CBIconfidential business information</FP>
          <FP SOURCE="FP-1">CFRCode of Federal Regulations</FP>
          <FP SOURCE="FP-1">CO<E T="52">2</E>carbon dioxide</FP>
          <FP SOURCE="FP-1">CO<E T="52">2</E>eCO<E T="52">2</E>-equivalent</FP>
          <FP SOURCE="FP-1">EPAU.S. Environmental Protection Agency</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">GHGgreenhouse gas</FP>
          <FP SOURCE="FP-1">GHGRPGreenhouse Gas Reporting Program</FP>
          <FP SOURCE="FP-1">GWPglobal warming potential</FP>
          <FP SOURCE="FP-1">HTFheat transfer fluid</FP>
          <FP SOURCE="FP-1">ICRinformation collection request</FP>
          <FP SOURCE="FP-1">mm Hgmillimeters of mercury</FP>
          <FP SOURCE="FP-1">MSDSMaterial Safety Data Sheets</FP>
          <FP SOURCE="FP-1">mtCO<E T="52">2</E>emetric tons CO<E T="52">2</E>-equivalent</FP>
          <FP SOURCE="FP-1">N<E T="52">2</E>Onitrous oxide</FP>
          <FP SOURCE="FP-1">NAICSNorth American Industry Classification System</FP>
          <FP SOURCE="FP-1">NF<E T="52">3</E>nitrogen trifluoride</FP>
          <FP SOURCE="FP-1">NTTAANational Technology Transfer and Advancement Act</FP>
          <FP SOURCE="FP-1">OMBOffice of Management and Budget</FP>
          <FP SOURCE="FP-1">QA/QCquality assurance/quality control</FP>
          <FP SOURCE="FP-1">RFARegulatory Flexibility Act</FP>
          <FP SOURCE="FP-1">SBASmall Business Administration</FP>
          <FP SOURCE="FP-1">SBREFASmall Business Regulatory Enforcement and Fairness Act</FP>
          <FP SOURCE="FP-1">U.S.United States</FP>
          <FP SOURCE="FP-1">UMRAUnfunded Mandates Reform Act of 1995</FP>
          <FP SOURCE="FP-1">U.S.C.United States Code</FP>
        </EXTRACT>
        <HD SOURCE="HD1">Table Of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Background</FP>
          <FP SOURCE="FP1-2">A. Organization of This Preamble</FP>
          <FP SOURCE="FP1-2">B. Background on the Final Rule</FP>
          <FP SOURCE="FP1-2">C. Legal Authority</FP>
          <FP SOURCE="FP1-2">D. How Confidential Business Information Determinations and the Deferral of Inputs to Emission Equations Are Affected by Today's Action</FP>
          <FP SOURCE="FP-2">II. Overview of Amendments to the Electronics Manufacturing Source Category</FP>
          <FP SOURCE="FP1-2">A. Summary of Final Amendments to the Electronics Manufacturing Source Category</FP>
          <FP SOURCE="FP1-2">B. Summary of Comments and Responses Submitted on the Electronics Manufacturing Source Category</FP>
          <FP SOURCE="FP-2">III. Economic Impacts of the Rule</FP>
          <FP SOURCE="FP-2">IV. Statutory and Executive Order Reviews</FP>
          <FP SOURCE="FP1-2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review</FP>
          <FP SOURCE="FP1-2">B. Paperwork Reduction Act</FP>
          <FP SOURCE="FP1-2">C. Regulatory Flexibility Act</FP>
          <FP SOURCE="FP1-2">D. Unfunded Mandates Reform Act</FP>
          <FP SOURCE="FP1-2">E. Executive Order 13132: Federalism</FP>
          <FP SOURCE="FP1-2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</FP>
          <FP SOURCE="FP1-2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</FP>
          <FP SOURCE="FP1-2">H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use</FP>
          <FP SOURCE="FP1-2">I. National Technology Transfer and Advancement Act</FP>
          <FP SOURCE="FP1-2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</FP>
          <FP SOURCE="FP1-2">K. Congressional Review Act</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background</HD>
        <HD SOURCE="HD2">A. Organization of This Preamble</HD>
        <P>This preamble consists of four sections. The first section provides a brief history of 40 CFR part 98, subpart I (hereinafter referred to as “subpart I”).</P>
        <P>The second section of this preamble summarizes the revisions made to specific requirements for subpart I being incorporated into 40 CFR part 98 (hereinafter referred to as “Part 98”) by this action and the EPA's rationale for those changes. The amendments finalized in this action reflect the changes to subpart I proposed on September 9, 2011 (76 FR 56010), with some additional clarifications. This section also presents a summary of, and EPA's responses to, the major public comments submitted on the proposed rule amendments, and significant changes, if any, made since proposal in response to those comments.</P>
        <P>The third section of this preamble provides a discussion regarding the economic impacts of this final rule. Finally, the last section discusses the various statutory and executive order requirements applicable to this rulemaking.</P>
        <HD SOURCE="HD2">B. Background on the Final Rule</HD>

        <P>This action finalizes amendments to provisions in 40 CFR part 98, subpart I. The EPA published subpart I: Electronics Manufacturing of the Greenhouse Gas Reporting Program (GHGRP) on December 1, 2010 (75 FR 74774) in the<E T="04">Federal Register.</E>Subpart I of the GHGRP requires monitoring and reporting of GHG emissions from electronics manufacturing facilities that have yearly emissions equal to or greater than 25,000 mtCO<E T="52">2</E>e.</P>
        <P>Following the publication of subpart I in the<E T="04">Federal Register,</E>3M Company (3M) sought EPA reconsideration of the final rule requirements for reporting fluorinated heat transfer fluids (HTFs). Subsequently, EPA published a proposal to amend provisions in subpart I related to calculating and reporting fluorinated HTFs to reflect the agency's intent to require reporting of all fluorocarbons (except for ozone depleting substances regulated under EPA's Stratospheric Protection Regulations at 40 CFR part 82) that can enter the atmosphere under the conditions in which fluorinated HTFs are used in the electronics manufacturing industry.</P>

        <P>The proposal was published on September 9, 2011 (76 FR 56010). The public comment period for the proposed rule amendments initially was scheduled to end on October 11, 2011. The EPA received a request to extend the public comment period and published a notice in the<E T="04">Federal Register</E>on October 4, 2011 (76 FR 61293) extending the public comment period to October 24, 2011.</P>
        <P>In this action, the EPA is finalizing amendments to provisions in subpart I that were proposed in the September 9, 2011 action with some additional clarifications. Responses to comments submitted on the proposed amendments can be found in Section II of this preamble. Note that the agency is not requiring reports filed in September 2012 for reporting year 2011 to cover emissions of newly included fluorinated HTFs.</P>
        <HD SOURCE="HD2">C. Legal Authority</HD>
        <P>The EPA is promulgating these rule amendments under its existing CAA authority, specifically authorities provided in CAA section 114.</P>

        <P>As stated in the preamble to the 2009 final Greenhouse Gas Reporting Rule (74 FR 56260, October 30, 2009), CAA section 114 provides the EPA broad authority to require the information mandated by Part 98 because such data would inform and are relevant to the EPA's obligation to carry out a wide<PRTPAGE P="10375"/>variety of CAA provisions. As discussed in the preamble to the initial proposal (74 FR 16448, April 10, 2009), CAA section 114(a)(1) authorizes the Administrator to require emissions sources, persons subject to the CAA, manufacturers of process or control equipment, and persons whom the Administrator believes may have necessary information to monitor and report emissions and provide such other information the Administrator requests for the purposes of carrying out any provision of the CAA. For further information about the EPA's legal authority, see the preambles to the proposed and final rule, and related Response to Comments Documents.</P>
        <HD SOURCE="HD2">D. How Confidential Business Information Determinations and the Deferral of Inputs to Emission Equations Are Affected by Today's Action</HD>
        <P>The EPA finalized several rulemakings in 2011 in response to concerns related to the reporting and publication of information that may be considered CBI.</P>
        <P>On May 26, 2011, the EPA promulgated confidentiality determinations for certain data elements required to be reported under Part 98 and finalized amendments to the Special Rules Governing Certain Information Obtained Under the Clean Air Act, which authorizes the EPA to release or withhold as confidential reported data according to the confidentiality determinations for such data without taking further procedural steps (76 FR 30782, hereinafter referred to as the “May 26, 2011 Final CBI Rule”).</P>
        <P>On August 25, 2011, the EPA published a final rule that deferred the reporting deadline for data elements that are used by direct emitter reporters, including those under subpart I, as inputs to emission equations under the Mandatory Greenhouse Gas Reporting Rule (76 FR 53057). In that final rule, the EPA deferred the deadline for reporting subpart I inputs to emission equations based on the 2010 final rules for 40 CFR part 98, subpart I (75 FR 74774, December 1, 2010). With respect to the subject of today's rule, emissions of fluorinated HTFs, the EPA deferred the deadline for reporting inputs to the fluorinated HTF mass balance equation (Equation I-16) as required in 40 CFR 98.95(r) until March 31, 2015 and those elements have not changed as a result of today's final rule.</P>
        <P>The May 26, 2011 Final CBI Rule only addressed reporting of data elements in 34 subparts that were determined not to be inputs to emission equations and, therefore, were not proposed to have their reporting deadline deferred. Furthermore, that rule also did not make confidentiality determinations for eight subparts, including subpart I, for which reporting requirements were finalized after the publication of the CBI proposals (July 7, 2010 CBI proposal at 75 FR 39094 and July 27, 2010 supplemental proposal at 75 FR 43889).</P>
        <P>Instead, on January 10, 2012 (77 FR 1434), the EPA proposed CBI determinations for non-inputs data elements from six of the eight subparts not included in the 2010 rulemakings. CBI determinations for the non-inputs data elements of the two remaining subparts, subpart I and subpart W, are being addressed in separate actions.</P>
        <P>As stated above, the EPA intends to propose and finalize CBI determinations for subpart I (both non-inputs and inputs to emissions equations) in separate actions. The agency's goal is to finalize CBI determinations for the non-inputs before the deadline for reporting 2011 data (September 28, 2012).</P>

        <P>With respect to the two new subpart I reporting requirements finalized today (40 CFR 98.96(u) and (v)) discussed in detail in Section II.A of this preamble, these are not inputs to emissions equations and EPA is planning to finalize CBI determinations for these two data elements in separate actions prior to the deadline for reporting these data elements to the EPA. For more information generally on the various actions related to treatment of data that may be considered CBI, please see the GHGRP Web site dedicated to CBI at<E T="03">http://www.epa.gov/climatechange/emissions/CBI.html.</E>
        </P>
        <HD SOURCE="HD1">II. Overview of Amendments to the Electronics Manufacturing Source Category</HD>
        <HD SOURCE="HD2">A. Summary of Final Amendments to the Electronics Manufacturing Source Category</HD>
        <P>In this action, the EPA is finalizing amendments to subpart I regarding the calculation and reporting of emissions of fluorinated HTFs. More specifically, the EPA is finalizing the changes to the definition of fluorinated HTFs and to the provisions to estimate and report emissions of fluorinated HTFs that were proposed on September 9, 2011 (76 FR 56010), with the following five refinements.</P>
        
        <EXTRACT>
          <P>• In the definition of fluorinated HTFs, the EPA is specifically excluding select applications of fluorinated chemicals. These applications include their uses as lubricants (such as greases and oils), and surfactants.</P>
          <P>• Where a fluorinated chemical is used in both HTF and non-HTF applications, the EPA is providing flexibility to allow facilities to estimate either that chemical's emissions from all applications or its emissions from only the applications included in the fluorinated HTF definition.</P>

          <P>• To accommodate the change in the definition of fluorinated HTF, the EPA is amending 40 CFR 98.94(h)(3), which requires facilities to ensure that the inventory of fluorinated HTFs at the beginning of the reporting year is identical to the inventory recorded at the end of the previous reporting year. Specifically, EPA is adding an exception to this requirement to allow for differences between the beginning and end-of-year inventories that are solely attributable to the change in the scope of subpart I. In addition, EPA is clarifying that 40 CFR 98.94(h) applies to each fluorinated HTF just as it applies to each fluorinated GHG and nitrous oxide (N<E T="52">2</E>O).</P>
          <P>• The EPA is adding two new reporting requirements to reflect flexibilities being added to the rule that are described above.</P>
          <P>a. First, related to the flexibility provision discussed in the second bulleted paragraph above, the EPA is requiring facilities to report to the EPA whether they estimated and reported fluorinated HTF emissions from all applications or only from those covered by the definition of fluorinated HTFs (see 40 CFR 98.96(u)).</P>
          <P>b. Second, for reporting year 2012 only, the EPA is requiring that facilities report the date on which monitoring of the newly included fluorinated HTFs began (see 40 CFR 98.96(v)). As discussed in the paragraphs below, for 2012, facilities will have the option to begin accounting for the newly included fluorinated HTFs on the first day of the year, January 1, 2012, or on the date that the final rule becomes effective.</P>
        </EXTRACT>
        
        <P>The EPA is requiring facilities to estimate emissions of newly included fluorinated HTFs beginning in 2012 and to file reports that cover such emissions beginning in 2013 for the 2012 reporting year. The Agency is not requiring reports filed in September 2012 for reporting year 2011 to cover emissions of newly included fluorinated HTFs. For reporting year 2012 only, the EPA is allowing facilities to determine whether they wish to begin to estimate emissions of newly included fluorinated HTFs on January 1, 2012 or March 23, 2012. In other words, facilities may calculate and report emissions of newly included fluorinated HTFs either for the time-period of January 1, 2012 through December 31, 2012 or for the time period of March 23, 2012 through December 31, 2012. Beginning in 2013, facilities will be required to calculate and report emissions from all fluorinated HTFs for the entirety of the reporting year (i.e., January 1 through December 31).</P>

        <P>The EPA does not expect that facilities will have any difficulty beginning to estimate emissions of newly included fluorinated HTFs on either January 1, 2012 or March 23, 2012. In summary, as finalized in the<PRTPAGE P="10376"/>December 2010 final rule (75 FR 74774), the subpart I provisions for estimating and reporting emissions of fluorinated HTFs require a simple mass balance methodology where the facility is required to track inventories at the beginning and end of the year, acquisitions and disbursements of fluorinated HTFs, and the nameplate capacity of only newly installed and removed equipment containing fluorinated HTFs.</P>
        <HD SOURCE="HD2">B. Summary of Comments and Responses Submitted on the Electronics Manufacturing Source Category</HD>
        <P>The EPA received comments from two entities. In general, one commenter supported the EPA's proposed changes to the definition of fluorinated HTFs, and the other commenter, while not objecting in principle to including high global warming potential (GWP) HTFs in subpart I irrespective of their vapor pressure, argued that the proposed definition of fluorinated HTFs is overly broad and suggested changes to narrow it. The second commenter also had a number of comments requesting that the set of fluorinated chemicals and applications included in Part 98 be narrowed. As discussed below, EPA has concluded that these broader comments are outside the scope of this rule. However, it is important to note that the Agency is open to considering any of these broader issues, as appropriate, in future actions.</P>
        <P>The Agency further notes that many of the chemicals for which exemptions were requested are likely excluded from Part 98, because they are used in applications that fall outside the definition of fluorinated heat transfer fluid or fluorinated GHG. The 1 millimeter mercury (mm Hg) vapor pressure at 25 °C limit remains in effect for fluorinated chemicals that are used in applications outside of the definition of fluorinated heat transfer fluid. Therefore, the EPA concluded the change to the definition of heat transfer fluid defined in this rule is sufficient to provide the necessary exclusions. All comments are summarized and addressed in more detail below.</P>
        <HD SOURCE="HD3">Definition of Heat Transfer Fluids</HD>
        <P>
          <E T="03">Comment:</E>One commenter supported the proposed changes to subpart I that amended the definition of HTFs. The commenter stated that the changes will result in more comprehensive reporting of HTFs, including those with high GWP.</P>

        <P>Another commenter asserted that the EPA's proposed definition for HTFs is overly broad and argued that it includes applications that do not involve heat transfer, such as cleaning processes. The commenter stated that the proposed language fails to distinguish between<E T="03">de minimis</E>sources of emissions within a facility and between production and non-production operations. The commenter asserted that tracking substances that are not used in “heat transfer” applications would be extremely burdensome and that given their design and intended use, the materials are expected to generate insignificant emissions. The commenter argued that eliminating the vapor pressure cutoff and finalizing a definition of HTFs that includes applications that do not involve “heat transfer” would exacerbate these issues. The commenter suggested several revisions to the proposed definitions of HTF and fluorinated GHG to narrow the scope of those definitions.</P>
        <P>First, the commenter, in response to EPA's request for comment in this issue, strongly supported the exclusion of greases, oils, and lubricants from the definition of HTFs, and suggested the definition be modified to explicitly exclude these applications. The commenter agreed with the EPA's statement that these “applications do not typically occur at temperatures at which lubricants would volatilize,” and further argued that for greases, oils, and lubricants to serve their primary purpose, it is necessary that they not volatilize. In addition, the commenter stated that: (1) These materials are used within systems that must be designed to prevent leaks; (2) greases, oils, and lubricants are essential for equipment functioning; and (3) the loss of a lubricant may result in equipment damage. The commenter concluded that these substances are unlikely to be emitted into the atmosphere in the semiconductor manufacturing process and argued they are used in small quantities.</P>
        <P>This commenter also supported explicitly excluding fluorinated surfactants from subpart I HTF consumption and emission reporting requirements. The commenter noted that fluorinated surfactants may be added to lithography chemical formulations and aqueous polishing slurries, among other things. The commenter explained that fluorinated surfactants are added in minimal quantities (concentrations are typically around a fraction of a percent) and that they are designed to remain in solution to be effective. For this reason, the commenter argued, the potential for surfactant emissions is very limited. The commenter also stated that the identity of surfactants may be highly proprietary and in some cases not disclosed on Material Safety Data Sheets (MSDS). The commenter provided several MSDS to support their suggested explicit exclusions of oils, greases, lubricants, and surfactants.</P>
        <P>To address the issues mentioned above, the second commenter recommended that the definition of HTFs and fluorinated GHGs be modified. Specifically, the commenter suggested that EPA only include the concept of substances used “solely or primarily to transfer heat by radiation, conduction, convection or a combination of these methods” in the definition of HTFs. The commenter also suggested that the definition of fluorinated GHGs in subpart A explicitly exclude greases, oils, lubricants, polymers, and surfactants whose primary purpose is not heat transfer. The commenter concluded that these changes would clarify the EPA's intent not to encompass other, non-heat transfer fluorinated materials.</P>
        <P>
          <E T="03">Response:</E>The EPA agrees with the first commenter that the revised definition of fluorinated HTFs will result in more comprehensive reporting of high-GWP HTF emissions, as the EPA originally intended. With respect to the comment that the EPA should exclude specific applications from the definition, the EPA acknowledges that it may be helpful to explicitly exclude some applications from the definition of fluorinated HTFs that it did not intend to capture; these applications include uses as lubricants (such as greases and oils) and surfactants. While the EPA continues to interpret the proposed definition of fluorinated HTFs to already exclude these applications (because it did not specifically list them), the agency has determined that explicitly excluding them may further clarify the definition. The EPA agrees with the commenter that these applications typically occur under conditions where the substances would not volatize and would not result in atmospheric emissions. The EPA concluded the change to the definition of heat transfer fluid is sufficient to provide the necessary exclusions and ensure that chemicals such as lubricants and embedded solid polymers are not covered.</P>

        <P>The EPA is not explicitly excluding “polymers” because it is not specifically an application. As explained above, in response to the comments, EPA added exclusions to the definition of HTF based on applications. The EPA acknowledges that, in many cases, fluorocarbon polymers are solids at room temperature and will not meet the definition of a fluorinated HTF. Polymers with vapor pressures well<PRTPAGE P="10377"/>below 1 mm Hg absolute at 25 °C are unsuitable for use in the applications included in the definition of fluorinated HTF (e.g., because its melting point or viscosity is too high). Moreover, it will not otherwise be subject to subpart I because, with a vapor pressure below 1 mm Hg absolute at 25 °C, it will not meet the definition of a fluorinated GHG. On the other hand, if a polymer is used in applications included in the definition of fluorinated HTF, it is likely to be used under conditions (e.g., high temperatures) where emissions may occur. The definition of fluorinated HTF will appropriately include the polymer under these circumstances.</P>

        <P>In this final rule, the EPA is finalizing the following definition of fluorinated heat transfer fluids: “<E T="03">Fluorinated heat transfer fluids</E>means fluorinated GHGs used for temperature control, device testing, cleaning substrate surfaces and other parts, and soldering in certain types of electronics manufacturing production processes. Fluorinated heat transfer fluids do not include fluorinated GHGs used as lubricants or surfactants. For fluorinated heat transfer fluids under this subpart I, the lower vapor pressure limit of 1 mm Hg in absolute at 25 °C in the definition of Fluorinated greenhouse gas in 40 CFR 98.6 shall not apply. Fluorinated heat transfer fluids used in the electronics manufacturing sector include, but are not limited to, perfluoropolyethers, perfluoroalkanes, perfluoroethers, tertiary perfluoroamines, and perfluorocyclic ethers.” The EPA believes that this final definition of fluorinated HTFs will ensure that all fluorinated HTFs used in electronics manufacturing and susceptible to being emitted in the atmosphere are appropriately monitored and reported under subpart I, and that the EPA will receive valuable emissions information on the full range of volatile fluorinated HTFs used in electronics manufacturing.</P>
        <P>While the EPA agrees that it is appropriate to modify the definition of fluorinated HTFs in subpart I to explicitly exclude, lubricants (such as greases and oils), and surfactants, the EPA does not agree with the commenter's suggestion to modify both the definition of fluorinated HTFs and the definition of fluorinated GHGs in 40 CFR part 98, subpart A. Making changes to the general definition of fluorinated GHGs in 40 CFR part 98, subpart A for purposes of subpart I only is not appropriate, because this definition applies to multiple other subparts. Further, such a modification is outside the scope of this rulemaking because the EPA did not propose any changes to the definition of fluorinated GHGs. However, the Agency notes that many of the chemicals for which exemptions were requested are likely excluded from Part 98 because they are used in applications that fall outside the definition of fluorinated heat transfer fluid. Moreover, the definition of fluorinated GHG retains the 1 mm Hg at 25 °C vapor pressure limit and these chemicals generally have a vapor pressure below that limit.</P>
        <P>The EPA also does not agree with the suggestion to remove the clause, “device testing, cleaning substrate surfaces and other parts, and soldering,” from the definition. All of these applications were included in the December 1, 2010 final rule (75 FR 74775). In the proposed rule, the EPA did not intend to modify the set of applications included in the definition of fluorinated HTFs, but rather to clarify the definition to cover all fluorocarbons (except for ozone depleting substances regulated under the EPA's Stratospheric Protection Regulations at 40 CFR part 82) that can enter the atmosphere under the conditions in which fluorinated HTFs are used in the electronics manufacturing industry.</P>
        <P>Similarly, the EPA is not revising the definition of fluorinated HTFs to limit it to substances used “solely or primarily to transfer heat by radiation, conduction, convection or a combination of these methods.” This definition would not include all of the applications in electronics manufacturing in which fluorocarbons are used at high temperatures and can therefore enter the atmosphere. The EPA believes that by explicitly excluding certain items from the definition we can address the commenter's primary concerns without restructuring the definition.</P>
        <HD SOURCE="HD3">Burden</HD>
        <P>
          <E T="03">Comment:</E>One commenter expressed concern that unless the EPA made its recommended changes (i.e., modifications to the scope of Part 98 to explicitly exclude certain substances and related provisions), the burden associated with the monitoring, reporting, recordkeeping, and quality assurance and quality control (QA/QC) requirements under subpart I would be unjustified (40 CFR 98.92(a)(6), 98.93(s), 98.94(h), and 98.96(g)). The commenter expressed the opinion that materials covered by the HTF provisions are expected to generate insignificant emissions.</P>
        <P>
          <E T="03">Response:</E>With respect to the commenter's concern about the burden associated with modifying the fluorinated HTF definition, the only change in burden relative to the current subpart I requirements is associated with the inclusion of fluorinated HTFs whose vapor pressures fall below 1 mm Hg absolute at 25 °C. This action aligns the reporting requirements with the EPA's original intention to include all fluorocarbons that can enter the atmosphere under the conditions in which fluorinated HTFs are used in the electronics manufacturing industry. The set of applications included in the definition (temperature control, device testing, cleaning substrate surfaces and other parts, and soldering in certain types of electronics manufacturing production processes) is the same as in the December 1, 2010 final rule. As the EPA stated in the preamble of the proposed rule, the EPA's burden estimates for the December 2010 final rule were based on reporting of all fluorinated HTFs; therefore the clarifications in this final rule do not impose additional burden on reporters (76 FR 56010, September 9, 2011). In addition, in this final rule, the EPA has included flexibility provisions to reduce burden associated with monitoring and reporting of fluorinated HTF emissions.</P>
        <P>The other comments that the commenter provided on burden (i.e., comments not directly related to the definition of fluorinated HTFs or the provisions to calculate and report them) are outside the scope of this rule as the EPA did not propose any changes to those sections.</P>
        <HD SOURCE="HD3">Flexibility for Reported Fluorinated HTF Emissions</HD>
        <P>
          <E T="03">Comment:</E>In response to the EPA's request for comment on whether reporters should be given flexibility under 40 CFR 98.93(h) to report either a chemical's emissions from all applications or its emissions from only the applications included in the HTF definition, one commenter asserted that flexibility is needed. The commenter advocated flexibility to reduce the burden associated with separately quantifying and tracking consumption due to miscellaneous non-HTF applications. The commenter stated that numerous materials used in semiconductor manufacturing may have non-HTF applications, and the burden of identifying and categorizing the different material would be significant.</P>
        <P>
          <E T="03">Response:</E>To provide flexibility, the EPA has finalized provisions to give facilities the option to avoid maintaining a separate supply of the chemical for purposes of tracking fluorinated HTF emissions, as would otherwise be required for the mass-balance calculation. Where a fluorinated chemical is used in both HTF and non-<PRTPAGE P="10378"/>HTF applications, the EPA is revising provisions in 40 CFR 98.93(h)(1) to allow facilities to estimate and report emissions either from all applications or from only those covered in the definition of “fluorinated heat transfer fluids.” The EPA concluded that this flexibility would result in a reduction of burden for all electronics manufacturing facilities. Further, as the EPA stated in the preamble to the proposed rule, the EPA understands that emissions from the non-HTF applications would make up a small fraction of the total. To ensure that the EPA understands whether emissions reported are from all applications of a fluorinated chemical or only from applications specified in the definition of fluorinated HTFs, the EPA is requiring facilities to report which approach they took in estimating emissions (40 CFR 98.94(u)). The EPA has concluded that the burden associated with the data reporting requirement is minimal and is balanced by the flexibility provided.</P>
        <HD SOURCE="HD3">Reporting Requirements for Newly Included Fluorinated HTFs</HD>
        <P>
          <E T="03">Comment:</E>One commenter strongly supported EPA's proposal to apply the requirement to report newly included fluorinated HTFs (i.e., HTFs with a vapor pressure of less than 1 mm Hg absolute at 25 °C) to emissions that occur in 2012 and beyond, but not to 2011 emissions. The commenter asserted that because of the specific exclusion of these HTFs in the December 1, 2010, rule (75 FR 74774), many facilities may not have records available for 2011 to support reporting of emissions.</P>
        <P>
          <E T="03">Response:</E>In this final rule, the EPA is requiring facilities to begin to estimate and report emissions from newly-included fluorinated HTFs (that is, HTFs whose vapor pressures fall below 1 mm Hg absolute at 25 °C) for emissions that occur in 2012. For reporting year 2012, the EPA is allowing facilities to select either the time-period of January 1, 2012 through December 31, 2012 or March 23, 2012 through December 31, 2012. The EPA has concluded that this flexibility will provide facilities sufficient time to comply with the revisions. To ensure that the EPA can ascertain the time period over which reported 2012 emissions occurred, the EPA is requiring that, for 2012 only, facilities report the date selected to begin accounting for the newly included fluorinated HTFs (40 CFR 98.94(v)). Beginning in 2013, facilities will be required to estimate and report emissions from the entire reporting year (e.g., January 1 through December 31).</P>
        <HD SOURCE="HD3">Other Comments</HD>
        <P>
          <E T="03">Comment:</E>One commenter observed that the definition of “fluorinated GHGs” proposed by the California Air Resources Board (CARB) in their proposed GHG reporting rule is consistent with the U.S. EPA definition. The commenter noted that the consistency will help minimize the burden associated with the various reporting requirements. The commenter further encouraged the EPA to work with CARB to establish a consistent definition of HTFs if and when CARB does require reporting of HTFs. Lastly, the commenter also suggested minor edits to the explanation of vapor phase soldering in order to make the EPA's statement from the proposed preamble (September 9, 2011, 76 FR 56010) more technically accurate.</P>
        <P>
          <E T="03">Response:</E>The EPA acknowledges the commenter's suggestion for the EPA to work with CARB to maintain consistency in the definition of fluorinated HTFs. As the EPA stated in the preamble to the GHG Reporting Rule in 2009, “EPA is committed to working with State and regional programs to coordinate implementation of reporting programs, reduce burden on reporters, provide timely access to verified emissions data, establish mechanisms to efficiently share data, and harmonize data systems to the extent possible” (74 FR 56260, October 30, 2009). The EPA also appreciates the commenter's clarifications of the process of vapor phase soldering.</P>
        <P>
          <E T="03">Comment:</E>One commenter provided recommendations to address the burden of reporting obligations for fluorinated materials with<E T="03">de minimis</E>emissions of GHGs. The commenter suggested that a<E T="03">de minimis</E>threshold for reporting be adopted under subpart I, 40 CFR 98.92(a)(6), 98.93(c), 98.94(h), and 98.96(g), to reduce reporting burden for miscellaneous fluorinated materials. In addition, the commenter suggested that EPA modify subpart I to clarify that 98.92(a)(6) applies only to materials used in manufacturing processes and not for other purposes, such as the operation and maintenance of the facility (e.g., fluorinated surfactant in anti-static floor finish) and facility infrastructure systems (e.g., refrigerants for HVAC).</P>
        <P>
          <E T="03">Response:</E>The comments related to the adoption of a<E T="03">de minimis</E>threshold for specific consumption reporting requirements in subpart I that are not related to the definition of fluorinated HTFs (e.g., 40 CFR 98.92(a)(6), 98.93(c), 98.94(h), and 98.96(g)) are outside the scope of this rule because EPA did not propose any changes to those sections regarding reporting thresholds or suggest that a<E T="03">de minimis</E>threshold would be adopted.<SU>1</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>1</SU>On the topic of de minimis in general, EPA directs the commenter to the Final MRR where EPA determined that de minimis provisions were not necessary because they would compromise the quality and usefulness of the data collected (74 FR 56260, October 2009). For additional background on EPA's decisions to exclude de minimis provisions, please see response to comments in the preamble to the Final MRR (74 FR 56278-56279, October 30, 2009) and also “Reporting Methods for Small Emission Points (De Minimis Reporting)” (EPA-HQ-OAR-2008-0508-0048).</P>
        </FTNT>
        <P>With respect to the commenter's suggestion to limit the scope of 40 CFR 98.92(a)(6) to materials used in manufacturing processes and not for other purposes, such as the operation and maintenance of the facility and facility infrastructure systems, is also outside the scope of this rule. EPA did not propose to narrow the scope of reporting under subpart I. For this reason, EPA is not taking action at this time regarding the commenter's suggestion. However, in a separate future action, the Agency may consider whether a modification to this reporting requirement is appropriate.</P>
        <HD SOURCE="HD1">III. Economic Impacts of the Rule</HD>
        <P>The amendments finalized in this action are intended to clarify the intent of EPA to include all fluorocarbons that can enter the atmosphere under the conditions in which fluorinated HTFs are used in the electronics manufacturing industry. Overall, these revisions are not expected to have a significant effect on the economy and an economic impact analysis is not required.</P>
        <HD SOURCE="HD1">IV. Statutory and Executive Order Review</HD>
        <HD SOURCE="HD2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review</HD>
        <P>This action is not a “significant regulatory action” under the terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is therefore not subject to review under Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011).</P>
        <HD SOURCE="HD2">B. Paperwork Reduction Act</HD>

        <P>The final amendments to subpart I will carry out the agency's intent to require reporting of emissions of all fluorocarbons used as fluorinated HTFs in the electronics manufacturing industry. This was the intent of the subpart I reporting requirements for fluorinated HTFs finalized on December 1, 2010 (75 FR 74774), and this intent was reflected in the Information<PRTPAGE P="10379"/>Collection Request (ICR) prepared during that rulemaking. Thus, the final amendments will not increase the EPA or industry burden beyond that estimated in the ICR.</P>

        <P>The Office of Management and Budget (OMB) has previously approved the information collection requirements contained in the existing regulations and 40 CFR part 98, subpart I (75 FR 74774, December 1, 2010), under the provisions of the<E T="03">Paperwork Reduction Act,</E>44 U.S.C. 3501<E T="03">et seq.</E>and has assigned OMB control number 2060-0650. The OMB control numbers for the EPA's regulations in 40 CFR are listed in 40 CFR part 9. Burden is defined at 5 CFR 1320.3(b).</P>
        <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.</P>
        <HD SOURCE="HD2">C. Regulatory Flexibility Act (RFA)</HD>
        <P>The Regulatory Flexibility Act (RFA) generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small organizations, and small governmental jurisdictions.</P>
        <P>For purposes of assessing the impacts of this rule on small entities, small entity is defined as: (1) A small business as defined by the Small Business Administration's (SBA) regulations at 13 CFR 121.201; (2) a small governmental jurisdiction that is a government of a city, county, town, school district or special district with a population of less than 50,000; and (3) a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.</P>
        <P>After considering the economic impacts of today's final rule on small entities, I certify that this action will not have a significant economic impact on a substantial number of small entities. The small entities directly regulated by this final rule are facilities included in NAICS codes for Semiconductor and Related Device Manufacturing (334413) and Other Computer Peripheral Equipment Manufacturing (334119). As shown in Tables 5-13 and 5-14 of the Economic Impact Analysis for the Mandatory Reporting of Greenhouse Gas Emissions Final Rule (74 FR 56260, October 30, 2009) available in docket number EPA-HQ-OAR-2008-0508, the average ratio of annualized reporting program costs to receipts of establishments owned by model small enterprises was less than 1 percent for industries presumed likely to have small businesses covered by the reporting program.</P>
        <P>Further, the EPA has clarified its intent and revised specific provisions to reflect what must be reported. While these revisions expand the scope of fluorocarbons that must be reported, EPA's burden estimates were based reporting of all fluorinated HTFs; therefore, the clarification of intent does not impose additional burden on reporters. We have therefore concluded that this action will not impose additional regulatory burden for all affected small entities.</P>
        <HD SOURCE="HD2">D. Unfunded Mandates Reform Act (UMRA)</HD>
        <P>Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1531-1538, requires federal agencies, unless otherwise prohibited by law, to assess the effects of their regulatory actions on state, local, and tribal governments and the private sector. Federal agencies must also develop a plan to provide notice to small governments that might be significantly or uniquely affected by any regulatory requirements. The plan must enable officials of affected small governments to have meaningful and timely input in the development of EPA regulatory proposals with significant federal intergovernmental mandates and must inform, educate, and advise small governments on compliance with the regulatory requirements.</P>
        <P>These final rule amendments do not contain a federal mandate that may result in expenditures of $100 million or more for state, local, and tribal governments, in the aggregate, or the private sector in any one year. Thus, the proposed rule amendments were not subject to the requirements of section 202 and 205 of the UMRA. This rule is also not subject to the requirements of section 203 of UMRA because it contains no regulatory requirements that might significantly or uniquely affect small governments.</P>
        <HD SOURCE="HD2">E. Executive Order 13132: Federalism</HD>
        <P>This action does not have federalism implications. It will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. Few, if any, state or local government facilities would be affected by the provisions in this final rule. This regulation also does not limit the power of states or localities to collect GHG data and/or regulate GHG emissions. Thus, Executive Order 13132 does not apply to this action.</P>
        <HD SOURCE="HD2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</HD>
        <P>This action does not have tribal implications, as specified in Executive Order 13175 (65 FR 67249, November 9, 2000). During the finalization of subpart I, the EPA undertook the necessary steps to determine the impact of those rules on tribal entities and provided supporting documentation demonstrating the results of the agency's analyses. The rule amendments in this action do not impose any significant changes to the current reporting requirements contained 40 CFR part 98, subpart I. Thus, Executive Order 13175 does not apply to this action.</P>
        <HD SOURCE="HD2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</HD>
        <P>EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) as applying only to those regulatory actions that concern health or safety risks, such that the analysis required under section 5-501 of the Executive Order has the potential to influence the regulation. This action is not subject to Executive Order 13045 because it does not establish an environmental standard intended to mitigate health or safety risks.</P>
        <HD SOURCE="HD2">H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use</HD>
        <P>This action is not subject to Executive Order 13211 (66 FR 28355, May 22, 2001), because it is not a significant regulatory action under Executive Order 12866.</P>
        <HD SOURCE="HD2">I. National Technology Transfer and Advancement Act</HD>

        <P>Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113, 12(d) (15 U.S.C. 272 note) directs the EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted by voluntary consensus standards bodies. NTTAA directs the EPA to<PRTPAGE P="10380"/>provide Congress, through OMB, explanations when the agency decides not to use available and applicable voluntary consensus standards.</P>
        <P>This final action does not involve technical standards. Therefore, the EPA did not consider the use of any voluntary consensus standards.</P>
        <HD SOURCE="HD2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</HD>
        <P>Executive Order 12898 (59 FR 7629, February 16, 1994) establishes federal executive policy on environmental justice. Its main provision directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States.</P>
        <P>The EPA has determined that this action will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations. This rule does not affect the level of protection provided to human health or the environment because it is a rule addressing information collection and reporting procedures.</P>
        <HD SOURCE="HD2">K. Congressional Review Act</HD>
        <P>The Congressional Review Act, 5 U.S.C. 801<E T="03">et seq.,</E>as added by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the U.S. A major rule cannot take effect until 60 days after it is published in the<E T="04">Federal Register</E>. This action is not a “major rule” as defined by 5 U.S.C. 804(2). This rule will be effective on March 23, 2012.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 98</HD>
          <P>Environmental protection, Administrative practice and procedure, Greenhouse gases, Incorporation by reference, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 10, 2012.</DATED>
          <NAME>Lisa P. Jackson,</NAME>
          <TITLE>Administrator.</TITLE>
        </SIG>
        
        <P>For the reasons stated in the preamble, title 40, chapter I, of the Code of Federal Regulations is amended as follows:</P>
        <REGTEXT PART="98" TITLE="40">
          <PART>
            <HD SOURCE="HED">PART 98—[AMENDED]</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 98 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>42 U.S.C. 7401-7671q.</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <SUBPART>
            <HD SOURCE="HED">Subpart I—[Amended]</HD>
          </SUBPART>
          <AMDPAR>2. Section 98.90 is amended by revising paragraph (a)(5) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.90</SECTNO>
            <SUBJECT>Definition of the source category.</SUBJECT>
            <STARS/>
            <P>(a) * * *</P>
            <P>(5) Any electronics manufacturing production process in which fluorinated heat transfer fluids are used to cool process equipment, to control temperature during device testing, to clean substrate surfaces and other parts, and for soldering (e.g., vapor phase reflow).</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>3. Section 98.91 is amended by revising the definition of “δ” in Equation I-4 in paragraph (a)(4) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.91</SECTNO>
            <SUBJECT>Reporting threshold.</SUBJECT>
            <STARS/>
            <P>(a) * * *</P>
            <P>(4) * * *</P>
            <EXTRACT>
              
              <FP SOURCE="FP-2">δ = Factor accounting for fluorinated heat transfer fluid emissions, estimated as 10 percent of total annual production process emissions at a semiconductor facility. Set equal to 1.1 when Equation I-4 of this subpart is used to calculate total annual production process emissions from semiconductor manufacturing. Set equal to 1 when Equation I-4 of this subpart is used to calculate total annual production process emissions from MEMS, LCD, or PV manufacturing.</FP>
            </EXTRACT>
            <STARS/>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>4. Section 98.92 is amended by revising paragraph (a) introductory text and paragraph (a)(5) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.92</SECTNO>
            <SUBJECT>GHGs to report.</SUBJECT>

            <P>(a) You must report emissions of fluorinated GHGs (as defined in § 98.6), N<E T="52">2</E>O, and fluorinated heat transfer fluids (as defined in § 98.98). The fluorinated GHGs and fluorinated heat transfer fluids that are emitted from electronics manufacturing production processes include, but are not limited to, those listed in Table I-2 to this subpart. You must individually report, as appropriate:</P>
            <STARS/>
            <P>(5) Emissions of fluorinated heat transfer fluids.</P>
            <STARS/>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>5. Section 98.93 is amended by:</AMDPAR>
          <AMDPAR>a. Revising paragraph (h) introductory text.</AMDPAR>
          <AMDPAR>b. Revising the definition of “EH<E T="52">i</E>” in Equation I-16 in paragraph (h).</AMDPAR>
          <AMDPAR>c. Revising the definition of “i” in Equation I-16 in paragraph (h).</AMDPAR>
          <AMDPAR>d. Adding paragraph (h)(1).</AMDPAR>
          <AMDPAR>e. Adding paragraph (h)(2).</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.93</SECTNO>
            <SUBJECT>Calculating GHG emissions.</SUBJECT>
            <STARS/>
            <P>(h) If you use fluorinated heat transfer fluids, you must report the annual emissions of fluorinated heat transfer fluids using the mass balance approach described in Equation I-16 of this subpart.</P>
            <STARS/>
            <EXTRACT>
              <FP SOURCE="FP-2">EH<E T="52">i</E>= Emissions of fluorinated heat transfer fluid i, (metric tons/year).</FP>
              <STARS/>
              <FP SOURCE="FP-2">i = Fluorinated heat transfer fluid.</FP>
            </EXTRACT>
            <STARS/>

            <P>(1) If you use a fluorinated chemical both as a fluorinated heat transfer fluid and in other applications, you may calculate and report either emissions from all applications or from only those specified in the definition of<E T="03">fluorinated heat transfer fluids in § 98.98.</E>
            </P>

            <P>(2) For the 2012 reporting year, you may calculate and report emissions of fluorinated heat transfer fluids whose vapor pressure falls below 1 mm Hg absolute at 25 °C either for the time period January 1, 2012 through December 31, 2012 or for the time period March 23, 2012 through December 31, 2012. The term “reporting year” in Equation I-16 shall be interpreted to be consistent with the time period selected. In addition, for the 2012 reporting year I<E T="52">iB</E>is not required to be the same as the inventory at the end of 2011 if the inventory at the end of 2011 excluded fluorinated heat transfer fluids whose vapor pressure falls below 1 mm Hg absolute at 25 °C. Starting in the reporting year 2013, you must calculate and report emissions of all fluorinated heat transfer fluids for the entirety of the reporting year.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>6. Section 98.94 is amended by revising paragraph (h) introductory text and paragraph (h)(3) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.94</SECTNO>
            <SUBJECT>Monitoring and QA/QC requirements.</SUBJECT>
            <STARS/>

            <P>(h) You must adhere to the QA/QC procedures of this paragraph (h) when<PRTPAGE P="10381"/>calculating annual gas consumption for each fluorinated GHG and N<E T="52">2</E>O used at your facility and emissions from the use of each fluorinated heat transfer fluid.</P>
            <STARS/>
            <P>(3) Ensure that the inventory at the beginning of one reporting year is identical to the inventory reported at the end of the previous reporting year. This requirement does not apply to the end-of-the-year inventory of fluorinated heat transfer fluids in 2011 and the beginning-of-the-year inventory of the same in 2012.</P>
            <STARS/>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>7. Section 98.95 is amended by revising paragraph (b) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.95</SECTNO>
            <SUBJECT>Procedures for estimating missing data.</SUBJECT>
            <STARS/>
            <P>(b) If you use fluorinated heat transfer fluids at your facility and are missing data for one or more of the parameters in Equation I-16 of this subpart, you must estimate fluorinated heat transfer fluid emissions using the arithmetic average of the emission rates for the reporting year immediately preceding the period of missing data and the months immediately following the period of missing data. Alternatively, you may estimate missing information using records from the fluorinated heat transfer fluid supplier. You must document the method used and values used for all missing data values.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>8. Section 98.96 is amended by:</AMDPAR>
          <AMDPAR>a. Revising paragraph (c)(4).</AMDPAR>
          <AMDPAR>b. Revising paragraph (r).</AMDPAR>
          <AMDPAR>c. Revising paragraph (s).</AMDPAR>
          <AMDPAR>d. Adding paragraph (u).</AMDPAR>
          <AMDPAR>e. Adding paragraph (v).</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.96</SECTNO>
            <SUBJECT>Data reporting requirements.</SUBJECT>
            <STARS/>
            <P>(c) * * *</P>
            <P>(4) Each fluorinated heat transfer fluid emitted as calculated in Equation 1-16 of this subpart.</P>
            <STARS/>
            <P>(r) For fluorinated heat transfer fluid emissions, inputs to the fluorinated heat transfer fluid mass balance equation, Equation I-16 of this subpart, for each fluorinated heat transfer fluid used.</P>
            <P>(s) Where missing data procedures were used to estimate inputs into the fluorinated heat transfer fluid mass balance equation under § 98.95(b), the number of times missing data procedures were followed in the reporting year, the method used to estimate the missing data, and the estimates of those data.</P>
            <STARS/>
            <P>(u) For each fluorinated heat transfer fluid used, whether the emission estimate includes emissions from all applications or from only the applications specified in the definition of fluorinated heat transfer fluids in § 98.98.</P>
            <P>(v) For reporting year 2012 only, the date on which you began monitoring emissions of fluorinated heat transfer fluids whose vapor pressure falls below 1 mm Hg absolute at 25 °C. This is either January 1, 2012 or March 23, 2012.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="98" TITLE="40">
          <AMDPAR>9. Section 98.98 is amended by removing the definition of “Heat transfer fluids” and adding the definition of “Fluorinated heat transfer fluids” in alphabetical order to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 98.98</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <STARS/>
            <P>
              <E T="03">Fluorinated heat transfer fluids</E>means fluorinated GHGs used for temperature control, device testing, cleaning substrate surfaces and other parts, and soldering in certain types of electronics manufacturing production processes. Fluorinated heat transfer fluids do not include fluorinated GHGs used as lubricants or surfactants. For fluorinated heat transfer fluids under this subpart I, the lower vapor pressure limit of 1 mm Hg in absolute at 25 °C in the definition of<E T="03">Fluorinated greenhouse gas</E>in § 98.6 shall not apply. Fluorinated heat transfer fluids used in the electronics manufacturing sector include, but are not limited to, perfluoropolyethers, perfluoroalkanes, perfluoroethers, tertiary perfluoroamines, and perfluorocyclic ethers.</P>
            <STARS/>
          </SECTION>
          <AMDPAR>10. Table I-2 to Subpart I is revised to read as follows:</AMDPAR>
          <GPOTABLE CDEF="xs100,r100" COLS="2" OPTS="L2,i1">
            <TTITLE>Table I-2 to Subpart I of Part 98—Examples of Fluorinated GHGs and Fluorinated Heat Transfer Fluids Used by the Electronics Industry</TTITLE>
            <BOXHD>
              <CHED H="1">Product type</CHED>
              <CHED H="1">Fluorinated GHGs and fluorinated heat transfer fluids used during manufacture</CHED>
            </BOXHD>
            <ROW>
              <ENT I="01">Electronics</ENT>
              <ENT>CF<E T="52">4</E>, C<E T="52">2</E>F<E T="52">6</E>, C<E T="52">3</E>F<E T="52">8</E>, c-C<E T="52">4</E>F<E T="52">8</E>, c-C<E T="52">4</E>F<E T="52">8</E>O, C<E T="52">4</E>F<E T="52">6</E>, C<E T="52">5</E>F<E T="52">8</E>, CHF<E T="52">3</E>, CH<E T="52">2</E>F<E T="52">2</E>, NF<E T="52">3</E>, SF<E T="52">6</E>, and fluorinated HTFs (CF<E T="52">3</E>-(O-CF(CF<E T="52">3</E>)-CF<E T="52">2</E>)<E T="52">n</E>-(O-CF<E T="52">2</E>)<E T="52">m</E>-O-CF<E T="52">3</E>, C<E T="52">n</E>F<E T="52">2n+2</E>, C<E T="52">n</E>F<E T="52">2n+1</E>(O)C<E T="52">m</E>F<E T="52">2m+1</E>, C<E T="52">n</E>F<E T="52">2n</E>O, (C<E T="52">n</E>F<E T="52">2n+1</E>)<E T="52">3N</E>).</ENT>
            </ROW>
          </GPOTABLE>
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3769 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 180</CFR>
        <DEPDOC>[EPA-HQ-OPP-2008-0168; FRL-9333-4]</DEPDOC>
        <SUBJECT>Metaflumizone; Pesticide Tolerances</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This regulation establishes tolerances for residues of metaflumizone in or on citrus fruit, tree nuts, almond hulls; and grape. BASF Corporation requested these tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA).</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>

          <P>This regulation is effective February 22, 2012. Objections and requests for hearings must be received on or before April 23, 2012, and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the<E T="02">SUPPLEMENTARY INFORMATION</E>).</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>EPA has established a docket for this action under docket identification (ID) number EPA-HQ-OPP-2008-0168. All documents in the docket are listed in the docket index available at<E T="03">http://www.regulations.gov</E>. Although listed in the index, some information is not publicly available, e.g., Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available in the electronic docket at<E T="03">http://www.regulations.gov,</E>or, if only available in hard copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The Docket Facility is open from 8:30 a.m. to 4 p.m., Monday through Friday, excluding legal holidays. The Docket Facility telephone number is (703) 305-5805.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Julie Chao, Registration Division (7505P), Office of Pesticide Programs,<PRTPAGE P="10382"/>Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: (703) 308-8735; email address:<E T="03">chao.julie@epa.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. General Information</HD>
        <HD SOURCE="HD2">A. Does this action apply to me?</HD>
        <P>You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. Potentially affected entities may include, but are not limited to those engaged in the following activities:</P>
        <P>• Crop production (NAICS code 111).</P>
        <P>• Animal production (NAICS code 112).</P>
        <P>• Food manufacturing (NAICS code 311).</P>
        <P>• Pesticide manufacturing (NAICS code 32532).</P>

        <P>This listing is not intended to be exhaustive, but rather to provide a guide for readers regarding entities likely to be affected by this action. Other types of entities not listed in this unit could also be affected. The North American Industrial Classification System (NAICS) codes have been provided to assist you and others in determining whether this action might apply to certain entities. If you have any questions regarding the applicability of this action to a particular entity, consult the person listed under<E T="02">FOR FURTHER INFORMATION CONTACT</E>.</P>
        <HD SOURCE="HD2">B. How can I get electronic access to other related information?</HD>

        <P>You may access a frequently updated electronic version of EPA's tolerance regulations at 40 CFR part 180 through the Government Printing Office's e-CFR site at<E T="03">http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?&amp;c=ecfr&amp;tpl=/ecfrbrowse/Title40/40tab_02.tpl</E>.</P>
        <HD SOURCE="HD2">C. How can I file an objection or hearing request?</HD>
        <P>Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an objection to any aspect of this regulation and may also request a hearing on those objections. You must file your objection or request a hearing on this regulation in accordance with the instructions provided in 40 CFR part 178. To ensure proper receipt by EPA, you must identify docket ID number EPA-HQ-OPP-2008-0168 in the subject line on the first page of your submission. All objections and requests for a hearing must be in writing, and must be received by the Hearing Clerk on or before April 23, 2012. Addresses for mail and hand delivery of objections and hearing requests are provided in 40 CFR 178.25(b).</P>
        <P>In addition to filing an objection or hearing request with the Hearing Clerk as described in 40 CFR part 178, please submit a copy of the filing that does not contain any CBI for inclusion in the public docket. Information not marked confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior notice. Submit a copy of your non-CBI objection or hearing request, identified by docket ID number EPA-HQ-OPP-2008-0168, by one of the following methods:</P>
        <P>•<E T="03">Federal eRulemaking Portal: http://www.regulations.gov</E>. Follow the on-line instructions for submitting comments.</P>
        <P>•<E T="03">Mail:</E>Office of Pesticide Programs (OPP) Regulatory Public Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001.</P>
        <P>•<E T="03">Delivery:</E>OPP Regulatory Public Docket (7502P), Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only accepted during the Docket Facility's normal hours of operation (8:30 a.m. to 4 p.m., Monday through Friday, excluding legal holidays). Special arrangements should be made for deliveries of boxed information. The Docket Facility telephone number is (703) 305-5805.</P>
        <HD SOURCE="HD1">II. Summary of Petitioned-for Tolerance</HD>
        <P>In the<E T="04">Federal Register</E>of August 10, 2011 (76 FR 49396) (FRL-8882-8), EPA issued a notice pursuant to section 408(d)(3) of FFDCA, 21 U.S.C. 346a(d)(3), announcing the filing of a pesticide petition (PP 7F7260) by BASF Corporation, P.O. Box 13528, Research Triangle Park, NC 27709. The petition requested that 40 CFR part 180 be amended by establishing tolerances for residues of the insecticide metaflumizone, in or on: Fruit, citrus, group 10 at 0.04 ppm; nut, tree, group 14 at 0.04 ppm; almond, hulls at 0.04 ppm; and grape at 0.04 ppm. That notice referenced a summary of the petition prepared by BASF Corporation, the registrant, which is available in the docket,<E T="03">http://www.regulations.gov</E>. There were no comments received in response to the notice of filing.</P>
        <HD SOURCE="HD1">III. Aggregate Risk Assessment and Determination of Safety</HD>
        <P>Section 408(b)(2)(A)(i) of FFDCA allows EPA to establish a tolerance (the legal limit for a pesticide chemical residue in or on a food) only if EPA determines that the tolerance is “safe.” Section 408(b)(2)(A)(ii) of FFDCA defines “safe” to mean that “there is a reasonable certainty that no harm will result from aggregate exposure to the pesticide chemical residue, including all anticipated dietary exposures and all other exposures for which there is reliable information.” This includes exposure through drinking water and in residential settings, but does not include occupational exposure. Section 408(b)(2)(C) of FFDCA requires EPA to give special consideration to exposure of infants and children to the pesticide chemical residue in establishing a tolerance and to “ensure that there is a reasonable certainty that no harm will result to infants and children from aggregate exposure to the pesticide chemical residue. * * *”</P>
        <P>Consistent with section 408(b)(2)(D) of FFDCA, and the factors specified in section 408(b)(2)(D) of FFDCA, EPA has reviewed the available scientific data and other relevant information in support of this action. EPA has sufficient data to assess the hazards of and to make a determination on aggregate exposure for metaflumizone including exposure resulting from the tolerances established by this action. EPA's assessment of exposures and risks associated with metaflumizone follows.</P>
        <HD SOURCE="HD2">A. Toxicological Profile</HD>
        <P>EPA has evaluated the available toxicity data and considered its validity, completeness, and reliability as well as the relationship of the results of the studies to human risk. EPA has also considered available information concerning the variability of the sensitivities of major identifiable subgroups of consumers, including infants and children.</P>

        <P>Hematotoxicity (toxicity of the blood) was the primary toxic effect of concern following subchronic or chronic oral exposures to metaflumizone. Splenic extramedullary hematopoiesis, increased hemosiderin, and anemia were the most common hematotoxic effects reported after repeated oral dosing with metaflumizone. The postulated pesticidal mode of action of metaflumizone involves inhibition of sodium channels in target insect species; however, in mammals (rats), there were only clinical signs of neurotoxicity (i.e., piloerection and body temperature variations) with no neuropathology in the presence of systemic toxicity (e.g., recumbency and poor general state) following acute or repeated exposures. Similarly, several immune system organs seem to be affected following metaflumizone administration via the oral, dermal, and inhalation routes (e.g., the presence of macrophages in the thymus, lymphocyte necrosis in the mesenteric lymph nodes,<PRTPAGE P="10383"/>and diffuse atrophy of the mandibular); however, there was no evidence of any functional deficits at the highest dose tested (HDT) in a recently submitted and reviewed guideline immunotoxicity study. Therefore, the clinical neurotoxicity signs and the effects on the immune system organs following metaflumizone administration are likely to be secondary to the hematotoxic effects. Metaflumizone induced an increased incidence of a missing subclavian artery at a relatively high dose that also caused severe maternal toxicity (e.g., late term abortions) in the developmental toxicity study in rabbits. There was no evidence (quantitative or qualitative) of increased susceptibility following<E T="03">in utero</E>exposures to rats or rabbit and following pre- and post natal exposures. There was no evidence that metaflumizone is genotoxic and carcinogenicity studies with mice and rabbits were negative.</P>

        <P>Specific information on the studies received and the nature of the adverse effects caused by metaflumizone as well as the no-observed-adverse-effect-level (NOAEL) and the lowest-observed-adverse-effect-level (LOAEL) from the toxicity studies can be found at<E T="03">http://www.regulations.gov</E>in the document entitled “Metaflumizone. Revised Human-Health Risk Assessment Associated with a Section 3 Registration for a Fire Ant Bait for Application to Citrus, Tree Nuts, and Grape, and a new Section 3 Registration for a Fly Bait for Application around Industrial, Commercial, Agricultural, and Recreational Facilities/Structures and Premises” in docket ID number EPA-HQ-OPP-2008-0168.</P>
        <HD SOURCE="HD2">B. Toxicological Points of Departure/Levels of Concern</HD>

        <P>Once a pesticide's toxicological profile is determined, EPA identifies toxicological points of departure (POD) and levels of concern to use in evaluating the risk posed by human exposure to the pesticide. For hazards that have a threshold below which there is no appreciable risk, the toxicological POD is used as the basis for derivation of reference values for risk assessment. PODs are developed based on a careful analysis of the doses in each toxicological study to determine the dose at which no adverse effects are observed (the NOAEL) and the lowest dose at which adverse effects of concern are identified (the LOAEL). Uncertainty/safety factors are used in conjunction with the POD to calculate a safe exposure level—generally referred to as a population-adjusted dose (PAD) or a reference dose (RfD)—and a safe margin of exposure (MOE). For non-threshold risks, the Agency assumes that any amount of exposure will lead to some degree of risk. Thus, the Agency estimates risk in terms of the probability of an occurrence of the adverse effect expected in a lifetime. For more information on the general principles EPA uses in risk characterization and a complete description of the risk assessment process, see<E T="03">http://www.epa.gov/pesticides/factsheets/riskassess.htm</E>.</P>
        <P>A summary of the toxicological endpoints for metaflumizone used for human risk assessment is provided in this unit:</P>
        <P>i.<E T="03">Acute dietary endpoint (general population including infants and children).</E>An acute dietary endpoint was not established for this population group since an endpoint of concern (effect) attributable to a single dose was not identified in the database. Studies considered for this endpoint included the acute neurotoxicity study in which no toxicity was observed at any dose including the HDT, which is the limit dose (1,000 milligrams/kilograms/day (mg/kg/day)).</P>
        <P>ii.<E T="03">Acute dietary endpoint (females 13-49 years old).</E>This endpoint was established based on a developmental effect observed in the rabbit developmental toxicity study that can be potentially due to a single dose of metaflumizone. This effect consisted of an increased incidence of an absent subclavian artery in the offspring at the LOAEL of 300 mg/kg body/weight/day (bw/day) metaflumizone (NOAEL = 100 mg/kg bw/day). The rat developmental toxicity study was also considered for this endpoint; however, no developmental effects were observed in this study at the HDT of 120 mg/kg bw/day metaflumizone. A combined uncertainty factor of 300 was applied to account for interspecies (10X) and intraspecies (10X) extrapolation and a Food Quality Protection Act (FQPA) safety factor of 3X. Thus, the acute population adjusted dose (aPAD) for females 13-49 years old is estimated to be 0.33 mg/kg bw/day.</P>
        <P>iii.<E T="03">Chronic dietary endpoint.</E>This endpoint was established based on the systemic toxicity observed in the chronic toxicity study with dogs. At the LOAEL of 30 mg/kg bw/day (NOAEL = 12 mg/kg bw/day), the effects consisted of reduced general health condition, slight to severe ataxia, recumbency, and severe salivation, slight decreases in mean corpuscular hemoglobin concentration and total hemoglobin, leading to increased plasma bilirubin, increased urinary urobilinogen, and increased hemosiderin in the liver. A combined uncertainty factor of 300 was applied to account for interspecies (10X) and intraspecies (10X) extrapolation and an FQPA safety factor of 3X. Thus, the chronic population adjusted dose (cPAD) is estimated to be 0.040 mg/kg bw/day.</P>
        <P>iv.<E T="03">Incidental oral (short- and intermediate-term).</E>This endpoint was selected on the basis of the maternal effects observed in the rat 2-generation reproductive toxicity study at the LOAEL of 50 mg/kg bw/day metaflumizone (NOAEL = 20 mg/kg bw/day). Maternal toxicity consisted of poor general health and body weight deficits which were also associated with improper nursing behavior. Similar effects were also noted in a developmental neurotoxicity study (gavage, range finding) also considered for this endpoint. In this study, poor maternal health was also observed at the LOAEL of 120 mg/kg bw/day metaflumizone (NOAEL = 80 mg/kg bw/day). Both studies considered for this endpoint achieved a clear NOAEL for the offspring effects, but the NOAEL of 20 mg/kg bw/day for the 2-generation reproductive toxicity study is considered more protective. The Agency's level of concern for this scenario is 300 based on a 10X intraspecies factor, a 10X interspecies factor, and an FQPA safety factor of 3X.</P>
        <P>v.<E T="03">Dermal (short- and intermediate-term).</E>This endpoint was based on a rat 90-day dermal toxicity study in which deficits in body weight, body-weight gain and food consumption (in males and females); anogenital smearing; increased macrophages in the thymus; lymphocyte necrosis in the mesenteric lymph nodes; diffuse atrophy of the mandibular lymph node; and increased hemosiderin in the liver (females only) were observed at the LOAEL of 300 mg/kg bw/day (NOAEL = 100 mg/kg bw/day). The Agency's level of concern for this scenario is 100 based on a 10X interspecies factor, and a 10X intraspecies factor.</P>
        <P>vi.<E T="03">Inhalation (short- and intermediate-term).</E>There is a 28-day inhalation study for this exposure scenario. There was no NOAEL identified for female rats. At the LOAEL of 0.10 mg/Liter (L) metaflumizone (NOAEL = 0.03 mg/L), histopathology of the nasal tissues, lungs, thymus, prostate, and adrenal cortex was observed in males. The LOAEL identified in females resulted in lymphocyte necrosis in the mesenteric lymph node. The Agency's level of concern for this scenario is 1,000 based on a 10X interspecies factor, a 10X intraspecies factor, and an FQPA safety factor of 10X. Route-specific toxicity studies were selected for assessment of<PRTPAGE P="10384"/>short-intermediate-term dermal, inhalation, and oral exposures. Short-intermediate-term dermal and inhalation exposures can be aggregated based on the immunotoxic effects seen at the LOAEL in the selected studies. Short/intermediate-term oral, dermal, and inhalation exposures can be aggregated based on the decreased body weight or decreased body-weight gain effects seen at the LOAEL in the selected oral and dermal studies and at doses above the LOAEL in the selected inhalation study.</P>
        <HD SOURCE="HD2">C. Exposure Assessment</HD>
        <P>1.<E T="03">Dietary exposure from food and feed uses.</E>In evaluating dietary exposure to metaflumizone, EPA considered exposure under the petitioned-for tolerances. EPA assessed dietary exposures from metaflumizone in food as follows:</P>
        <P>i.<E T="03">Acute exposure.</E>Quantitative acute dietary exposure and risk assessments are performed for a food-use pesticide, if a toxicological study has indicated the possibility of an effect of concern occurring as a result of a 1-day or single exposure. Such effects were identified for metaflumizone. In estimating acute dietary exposure, EPA used food consumption information from the United States Department of Agriculture (USDA) 1994-1996 and 1998 Nationwide Continuing Surveys of Food Intake by Individuals (CSFII). As to residue levels in food, EPA assumed tolerance-level residues. It was further assumed that 100% of crops with the requested uses of metaflumizone were treated.</P>
        <P>ii.<E T="03">Chronic exposure.</E>In conducting the chronic dietary exposure assessment EPA used the food consumption data from the USDA 1994-1996 and 1998 CSFII. As to residue levels in food, EPA assumed tolerance-level residues. It was further assumed that 100% of crops with the requested uses of metaflumizone were treated.</P>
        <P>iii.<E T="03">Cancer.</E>Based on the data summarized in Unit III.A., EPA has concluded that metaflumizone does not pose a cancer risk to humans. Therefore, a dietary exposure assessment for the purpose of assessing cancer risk is unnecessary.</P>
        <P>iv.<E T="03">Anticipated residue and percent crop treated (PCT) information.</E>EPA did not use anticipated residue or PCT information in the dietary assessment for metaflumizone. Tolerance level residues and/or 100 PCT were assumed for all food commodities.</P>
        <P>2.<E T="03">Dietary exposure from drinking water.</E>The Agency used screening level water exposure models in the dietary exposure analysis and risk assessment for metaflumizone in drinking water. These simulation models take into account data on the physical, chemical, and fate/transport characteristics of metaflumizone. Further information regarding EPA drinking water models used in pesticide exposure assessment can be found at<E T="03">http://www.epa.gov/oppefed1/models/water/index.htm</E>.</P>
        <P>Based on the Pesticide Root Zone Model/Exposure Analysis Modeling System (PRZM/EXAMS) and Screening Concentration in Ground Water (SCI-GROW) models, the estimated drinking water concentrations (EDWCs) of metaflumizone for acute exposures are estimated to be 1.14 parts per billion (ppb) for surface water and 0.00214 ppb for ground water. The EDWCs of metaflumizone for chronic exposures for non-cancer chronic assessments are estimated to be 0.597 ppb for surface water and 0.00214 ppb for ground water.</P>
        <P>Modeled estimates of drinking water concentrations were directly entered into the dietary exposure model. For acute dietary risk assessment, the water concentration value of 1.14 ppb was used to assess the contribution to drinking water. For chronic dietary risk assessment, the water concentration of value 0.597 ppb was used to assess the contribution to drinking water.</P>
        <P>3.<E T="03">From non-dietary exposure.</E>The term “residential exposure” is used in this document to refer to non-occupational, non-dietary exposure (e.g., for lawn and garden pest control, indoor pest control, termiticides, and flea and tick control on pets). Metaflumizone is currently registered for the following uses that could result in residential exposures: Pet spot-on products to control fleas on dogs and cats; fire ant bait products for application to lawns, landscapes, golf courses, and other non-cropland area. In addition, a pending fly bait product is proposed for use in areas where people may be present; therefore, a residential exposure assessment was performed for this use.</P>
        <P>EPA assessed residential exposure using the following assumptions: For the pet spot-on products, residential handler exposure is not expected, because the product is applied directly from a tube to the pet. Pet spot-on applications are expected to result in short- and intermediate-term post-application dermal exposure to all populations, and incident oral exposure (i.e., hand-to-mouth) for children 3 to &lt;6 years of age. For the fire ant bait, applications to home lawns are expected to result in short-term, residential handler exposure to adults. Fire ant bait applications to lawns, landscapes, golf-courses, and other non-cropland areas are expected to result in short-term, post-application dermal exposure to adults, adolescents, and children 3 to &lt;6 years old, and incident oral exposure for children 3 to &lt;6 years old. For the pending fly bait product, residential handler exposure is not expected, because the product is applied by commercial handlers. The pending fly bait product is expected to result in short-term, post-application dermal exposure to adults and children 3 to &lt;6 years old, and incident oral exposure to children 3 to &lt;6 years old.</P>

        <P>For residential handlers, dermal and inhalation exposures are combined since the endpoints are similar for these routes. For children (3 to &lt;6 year olds), post-application hand-to-mouth and dermal exposures are combined. Since the levels of concern (LOCs) for the dermal, inhalation and incidental oral routes are not the same (dermal LOC = 100, inhalation LOC = 1,000, and incidental oral LOC = 300), these routes were combined using the aggregate risk index approach. Further information regarding EPA standard assumptions and generic inputs for residential exposures may be found at<E T="03">http://www.epa.gov/pesticides/trac/science/trac6a05.pdf</E>.</P>
        <P>4.<E T="03">Cumulative effects from substances with a common mechanism of toxicity.</E>Section 408(b)(2)(D)(v) of FFDCA requires that, when considering whether to establish, modify, or revoke a tolerance, the Agency consider “available information” concerning the cumulative effects of a particular pesticide's residues and “other substances that have a common mechanism of toxicity.”</P>

        <P>EPA has not found metaflumizone to share a common mechanism of toxicity with any other substances, and metaflumizone does not appear to produce a toxic metabolite produced by other substances. For the purposes of this tolerance action, therefore, EPA has assumed that metaflumizone does not have a common mechanism of toxicity with other substances. For information regarding EPA's efforts to determine which chemicals have a common mechanism of toxicity and to evaluate the cumulative effects of such chemicals, see EPA's Web site at<E T="03">http://www.epa.gov/pesticides/cumulative</E>.</P>
        <HD SOURCE="HD2">D. Safety Factor for Infants and Children</HD>
        <P>1.<E T="03">In general.</E>Section 408(b)(2)(C) of FFDCA provides that EPA shall apply an additional tenfold (10X) margin of safety for infants and children in the case of threshold effects to account for<PRTPAGE P="10385"/>prenatal and postnatal toxicity and the completeness of the database on toxicity and exposure unless EPA determines based on reliable data that a different margin of safety will be safe for infants and children. This additional margin of safety is commonly referred to as the FQPA safety factor. In applying this provision, EPA either retains the default value of 10X, or uses a different additional safety factor when reliable data available to EPA support the choice of a different factor.</P>
        <P>2.<E T="03">Prenatal and postnatal sensitivity.</E>There is no evidence for increased qualitative or quantitative sensitivity/susceptibility resulting from prenatal and/or postnatal exposures. In the rat prenatal development toxicity study, there was no offspring toxicity reported at any dose tested whereas in the rabbit study a maltransformation based on an absent subclavian artery was noted to occur only in the presence of severe maternal toxicity. Similarly, offspring mortality in the 2-generation reproductive toxicity occurred only in the presence of a poor maternal health state. Thus, there is no evidence for increased susceptibility.</P>
        <P>3.<E T="03">Conclusion.</E>EPA has determined that reliable data show the safety of infants and children would be adequately protected if the FQPA safety factor were reduced from 10X to 3X for all oral exposure scenarios; retained at 10X for inhalation exposure scenarios; and reduced to 1X for dermal exposures. That decision is based on the following findings:</P>
        <P>i. The toxicity database for metaflumizone is complete.</P>
        <P>ii. There is no indication that metaflumizone directly affects the nervous system. Clinical signs consisting of piloerection and body temperature variations were observed only in the absence of neuropathology and in the presence of a poor general state. There is no need for a developmental neurotoxicity study or additional uncertainty factors to account for neurotoxicity.</P>

        <P>iii. There is no evidence that metaflumizone results in increased susceptibility in<E T="03">in utero</E>rats or rabbits in the prenatal developmental studies or in young rats in the 2-generation reproduction study.</P>
        <P>iv. There are no residual uncertainties identified in the exposure databases.The dietary analyses assumed tolerance-level residues, 100 PCT, and modeled drinking water estimates. Therefore, HED concludes that while the submission of data/information by the petitioner addressing the residue chemistry deficiencies may conceivably result in adjustment of the maximum theoretical residue estimate, actual metaflumizone dietary exposure estimates will not be greater than those generated in the current risk assessment. EPA made conservative (protective) assumptions in the ground and surface water modeling used to assess exposure to metaflumizone in drinking water. EPA used similarly conservative assumptions to assess postapplication exposure of children as well as incidental oral exposure of toddlers. These assessments will not underestimate the exposure and risks posed by metaflumizone.</P>
        <P>v. Dietary exposures (which are more relevant for human exposures) exhibited an approximately 2-fold greater absorption into the systemic circulation and, thus, can potentially lead to toxicity at 2-fold lower levels of exposure. Applying a FQPA safety factor of 3X for all oral exposure scenarios is adequate to protect against any greater toxicity that might occur in dietary exposures (absorption was noted to be 2-fold greater in dietary versus oral gavage studies).</P>
        <P>vi. The FQPA safety factor of 10X is being retained for inhalation exposure scenarios for the use of a LOAEL instead of a NOAEL (no NOAEL achieved) for histopathological lesions consisting of lymphocyte necrosis in the mesenteric lymph node. The FQPA safety factor of 10X is adequate due to the severity of lymphocyte necrosis being minimal to slight and not exhibiting a strong dose dependence.</P>
        <P>vii. The FQPA safety factor for dermal exposure scenarios is being reduced from 10X to 1X since there is a route-specific study with a clear NOAEL.</P>
        <HD SOURCE="HD2">E. Aggregate Risks and Determination of Safety</HD>
        <P>EPA determines whether acute and chronic dietary pesticide exposures are safe by comparing aggregate exposure estimates to the acute PAD (aPAD) and chronic PAD (cPAD). For linear cancer risks, EPA calculates the lifetime probability of acquiring cancer given the estimated aggregate exposure. Short-, intermediate-, and chronic-term risks are evaluated by comparing the estimated aggregate food, water, and residential exposure to the appropriate PODs to ensure that an adequate MOE exists.</P>
        <P>1.<E T="03">Acute risk.</E>Using the exposure assumptions discussed in this unit for acute exposure, the acute dietary exposure from food and water to metaflumizone will occupy &lt;1% of the aPAD for females 13-49 years old. An acute dietary exposure estimate was generated for females 13-49 years old, but not for the remaining population subgroups since an endpoint attributed to a single dose was not identified for those populations.</P>
        <P>2.<E T="03">Chronic risk.</E>Using the exposure assumptions described in this unit for chronic exposure, EPA has concluded that chronic exposure to metaflumizone from food and water will utilize &lt;1% of the cPAD for children 1-2 years old, the population group receiving the greatest exposure. Based on the explanation in Unit III.C.3., regarding residential use patterns, chronic residential exposure to residues of metaflumizone is not expected.</P>
        <P>3.<E T="03">Short-term risk.</E>Short-term aggregate exposure takes into account short-term residential exposure plus chronic exposure to food and water (considered to be a background exposure level). Metaflumizone is currently registered for uses that could result in short-term residential exposure, and the Agency has determined that it is appropriate to aggregate chronic exposure through food and water with short-term residential exposures to metaflumizone. Since the level of concern (LOC) is different for dermal and oral exposures (100 and 300, respectively), the aggregate risk index method was used to determine aggregate risk (aggregate risk indices &gt; 1 are not a risk of concern).</P>
        <P>Using the exposure assumptions described in this unit for short-term exposures, EPA has concluded the combined short-term food, water, and residential exposures result in aggregate risk indices of 3 for the general population, and 2 for children 1-2 years old. Since the LOCs for the dermal, inhalation and incidental oral routes are not the same (dermal LOC = 100, inhalation LOC = 1,000, and incidental oral LOC = 300), these routes were combined using the aggregate risk index approach. Because EPA's LOC for metaflumizone is an aggregate risk index less than 1, the aggregate risks are not of concern. These aggregate risk indices utilize residential exposure estimates from the pet spot-on products, which represent the worst-case exposure scenario. However, it should be noted that all registered pet spot-on products containing metaflumizone are pending voluntary cancellation; therefore, these aggregate risk indices can be considered conservative.</P>
        <P>4.<E T="03">Intermediate-term risk.</E>Intermediate-term aggregate exposure takes into account intermediate-term residential exposure plus chronic exposure to food and water (considered to be a background exposure level). Metaflumizone is currently registered for uses that could result in intermediate-term residential exposure;<PRTPAGE P="10386"/>however, since the PODs for the short- and intermediate-term durations are the same for metaflumizone, the short-term aggregate assessment is protective of longer-term exposures.</P>
        <P>5.<E T="03">Aggregate cancer risk for U.S. population.</E>Based on the lack of evidence of carcinogenicity in two adequate rodent carcinogenicity studies, metaflumizone is not expected to pose a cancer risk to humans.</P>
        <P>6.<E T="03">Determination of safety.</E>Based on these risk assessments, EPA concludes that there is a reasonable certainty that no harm will result to the general population, or to infants and children from aggregate exposure to metaflumizone residues.</P>
        <HD SOURCE="HD1">IV. Other Considerations</HD>
        <HD SOURCE="HD2">A. Analytical Enforcement Methodology</HD>

        <P>Adequate enforcement methodology (liquid chromatograph/mass spectrometer/mass spectrometer (LC/MS/MS) Method 531/0) is available to enforce the tolerance expression. The method may be requested from: Chief, Analytical Chemistry Branch, Environmental Science Center, 701 Mapes Rd., Ft. Meade, MD 20755-5350; telephone number: (410) 305-2905; email address:<E T="03">residuemethods@epa.gov.</E>
        </P>
        <HD SOURCE="HD2">B. International Residue Limits</HD>
        <P>In making its tolerance decisions, EPA seeks to harmonize U.S. tolerances with international standards whenever possible, consistent with U.S. food safety standards and agricultural practices. EPA considers the international maximum residue limits (MRLs) established by the Codex Alimentarius Commission (Codex), as required by FFDCA section 408(b)(4). The Codex Alimentarius is a joint U.N. Food and Agriculture Organization/World Health Organization food standards program, and it is recognized as an international food safety standards-setting organization in trade agreements to which the United States is a party. EPA may establish a tolerance that is different from a Codex MRL; however, FFDCA section 408(b)(4) requires that EPA explain the reasons for departing from the Codex level.</P>
        <P>The Codex has not established a MRL for metaflumizone.</P>
        <HD SOURCE="HD1">V. Conclusion</HD>

        <P>Therefore, tolerances are established for residues of metaflumizone, (E and Z isomers; 2-[2-(4-cyanophenyl)-1-[3-(trifluoromethyl) phenyl]ethylidene]-<E T="03">N</E>-[4-(trifluoromethoxy)phenyl] hydrazinecarboxamide) and its metabolite 4-{2-oxo-2-[3-(trifluoromethyl) phenyl]ethyl}-benzonitrile, in or on: Fruit, citrus, group 10 at 0.04 ppm; nut, tree, group 14 at 0.04 ppm; almond, hulls at 0.04 ppm; and grape at 0.04 ppm.</P>
        <HD SOURCE="HD1">VI. Statutory and Executive Order Reviews</HD>

        <P>This final rule establishes tolerances under section 408(d) of FFDCA in response to a petition submitted to the Agency. The Office of Management and Budget (OMB) has exempted these types of actions from review under Executive Order 12866, entitled<E T="03">Regulatory Planning and Review</E>(58 FR 51735, October 4, 1993). Because this final rule has been exempted from review under Executive Order 12866, this final rule is not subject to Executive Order 13211, entitled<E T="03">Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use</E>(66 FR 28355, May 22, 2001) or Executive Order 13045, entitled<E T="03">Protection of Children from Environmental Health Risks and Safety Risks</E>(62 FR 19885, April 23, 1997). This final rule does not contain any information collections subject to OMB approval under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501<E T="03">et seq.,</E>nor does it require any special considerations under Executive Order 12898, entitled<E T="03">Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations</E>(59 FR 7629, February 16, 1994).</P>

        <P>Since tolerances and exemptions that are established on the basis of a petition under section 408(d) of FFDCA, such as the tolerance in this final rule, do not require the issuance of a proposed rule, the requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601<E T="03">et seq.</E>) do not apply.</P>

        <P>This final rule directly regulates growers, food processors, food handlers, and food retailers, not States or tribes, nor does this action alter the relationships or distribution of power and responsibilities established by Congress in the preemption provisions of section 408(n)(4) of FFDCA. As such, the Agency has determined that this action will not have a substantial direct effect on States or tribal governments, on the relationship between the national government and the States or tribal governments, or on the distribution of power and responsibilities among the various levels of government or between the Federal Government and Indian tribes. Thus, the Agency has determined that Executive Order 13132, entitled<E T="03">Federalism</E>(64 FR 43255, August 10, 1999) and Executive Order 13175, entitled<E T="03">Consultation and Coordination with Indian Tribal Governments</E>(65 FR 67249, November 9, 2000) do not apply to this final rule. In addition, this final rule does not impose any enforceable duty or contain any unfunded mandate as described under Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. L. 104-4).</P>
        <P>This action does not involve any technical standards that would require Agency consideration of voluntary consensus standards pursuant to section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272 note).</P>
        <HD SOURCE="HD1">VII. Congressional Review Act</HD>
        <P>The Congressional Review Act, 5 U.S.C. 801<E T="03">et seq.,</E>generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of this final rule in the<E T="04">Federal Register</E>. This final rule is not a “major rule” as defined by 5 U.S.C. 804(2).</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 180</HD>
          <P>Environmental protection, Administrative practice and procedure, Agricultural commodities, Pesticides and pests, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 3, 2012.</DATED>
          <NAME>Steven Bradbury,</NAME>
          <TITLE>Director, Office of Pesticide Programs.</TITLE>
        </SIG>
        
        <P>Therefore, 40 CFR chapter I is amended as follows:</P>
        <REGTEXT PART="180" TITLE="40">
          <PART>
            <HD SOURCE="HED">PART 180—[AMENDED]</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 180 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>21 U.S.C. 321(q), 346a and 371.</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="180" TITLE="40">
          <AMDPAR>2. Section 180.657 is added to subpart C to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 180.657</SECTNO>
            <SUBJECT>Metaflumizone; tolerances for residues.</SUBJECT>
            <P>(a)<E T="03">General.</E>Tolerances are established for residues of the insecticide metaflumizone, including its metabolites and degradates, in or on the commodities listed in the following table. Compliance with the tolerance levels specified in the following table is to be determined by measuring only the sum of metaflumizone (E and Z isomers; 2-[2-(4-cyanophenyl)-1-[3-(trifluoromethyl) phenyl]ethylidene]-<E T="03">N</E>-[4-(trifluoromethoxy)phenyl]<PRTPAGE P="10387"/>hydrazinecarboxamide) and its metabolite 4-{2-oxo-2-[3-(trifluoromethyl) phenyl]ethyl}-benzonitrile, calculated as the stoichiometric equivalent of metaflumizone, in or on the following commodities:</P>
            <GPOTABLE CDEF="s60,8" COLS="2" OPTS="L2,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Commodity</CHED>
                <CHED H="1">Parts per million</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">Almond, hulls</ENT>
                <ENT>0.04</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Fruit, citrus, group 10</ENT>
                <ENT>0.04</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Grape</ENT>
                <ENT>0.04</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Nut, tree, group 14</ENT>
                <ENT>0.04</ENT>
              </ROW>
            </GPOTABLE>
            <P>(b)<E T="03">Section 18 emergency exemptions.</E>[Reserved]</P>
            <P>(c)<E T="03">Tolerances with regional registrations.</E>[Reserved]</P>
            <P>(d)<E T="03">Indirect or inadvertent residues.</E>[Reserved]</P>
          </SECTION>
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3795 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 302</CFR>
        <DEPDOC>[EPA-HQ-SFUND-2011-0965; FRL-9635-9]</DEPDOC>
        <SUBJECT>Designation of Hazardous Substances; Designation, Reportable Quantities, and Notification</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Direct final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>EPA is taking direct final action to reinstate the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations by a November 8, 2000 final rule.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>

          <P>This rule is effective on April 23, 2012 without further notice, unless EPA receives adverse comment by March 23, 2012. If EPA receives adverse comment, we will publish a timely withdrawal in the<E T="04">Federal Register</E>informing the public that the rule will not take effect.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID No. EPA-HQ-SFUND-2011-0965, by one of the following methods:</P>
          <P>•<E T="03">www.regulations.gov:</E>Follow the on-line instructions for submitting comments.</P>
          <P>•<E T="03">Email: superfund.docket@epa.gov.</E>
          </P>
          <P>•<E T="03">Fax:</E>202-566-9744.</P>
          <P>•<E T="03">Mail:</E>Environmental Protection Agency, EPA Docket Center (EPA/DC), Superfund Docket, Mailcode: 28221T, 1200 Pennsylvania Ave. NW., Washington, DC 20460.</P>
          <P>•<E T="03">Hand Delivery:</E>EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave. NW., Washington, DC 20460. Attention Docket ID No.<E T="03">EPA-HQ-SFUND-2011-0965.</E>Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-HQ-SFUND-2011-0965. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at<E T="03">www.regulations.gov,</E>including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through<E T="03">www.regulations.gov</E>or email. The<E T="03">www.regulations.gov</E>Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through<E T="03">www.regulations.gov,</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional information about EPA's public docket, visit the EPA Docket Center homepage at<E T="03">http://www.epa.gov/epahome/dockets.htm</E>.</P>
          <P>
            <E T="03">Docket:</E>All documents in the docket are listed in the<E T="03">www.regulations.gov</E>index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in<E T="03">www.regulations.gov</E>or in hard copy at the EPA-HQ-SFUND-2011-0965 docket. This Docket Facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The Superfund Docket telephone number is (202) 566-0276. EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Ave. NW., Washington, DC.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>For general information, contact the Superfund, TRI, EPCRA, RMP and Oil Information Center at (800) 424-9346 or TDD (800) 553-7672 (hearing impaired). In the Washington, DC metropolitan area, call (703) 412-9810 or TDD (703) 412-3323. For more detailed information on specific aspects of this direct final rule, contact Lynn Beasley at (202) 564-1965 (<E T="03">beasley.lynn@epa.gov</E>), U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460-0002, Mail Code 5104A.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. Why is EPA using a direct final rule?</HD>

        <P>EPA is publishing this rule without a prior proposed rule because we view this as a noncontroversial action and anticipate no adverse comment. This action merely reinstates the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from regulations by a November 8, 2000 final rule. However, in the “Proposed Rules” section of today's<E T="04">Federal Register,</E>we are also publishing a separate proposed rule to reinstate these same maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations if adverse comments are received on this direct final rule. We will not institute a second comment period on this action. Any parties interested in commenting must do so at this time. For further information about commenting on this rule, see the<E T="02">ADDRESSES</E>section of this document.</P>

        <P>If EPA receives adverse comment, we will publish a timely withdrawal in the<E T="04">Federal Register</E>informing the public that this direct final rule will not take effect until EPA addresses all public comments in any subsequent final rule based on the proposed rule.</P>
        <HD SOURCE="HD1">II. Does this action apply to me?</HD>
        <GPOTABLE CDEF="s50,r150" COLS="2" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Type of entity</CHED>
            <CHED H="1">Examples of affected entities</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Federal Agencies</ENT>
            <ENT>National Response Center and any Federal agency that may release or respond to releases of hazardous substances.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10388"/>
            <ENT I="01">State and Local Governments</ENT>
            <ENT>State Emergency Response Commissions, and Local Emergency Planning Committees.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Responsible Parties</ENT>
            <ENT>Those entities responsible for the release of a hazardous substance from a vessel or facility. Those entities with an interest in the substances that were inadvertently removed from the table of maximum observed constituent concentrations for listed hazardous wastes K169, K170, K171, and K172 in 40 CFR 302.6(b)(1)(iii).</ENT>
          </ROW>
        </GPOTABLE>

        <FP>This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. This table lists the types of entities that EPA is now aware could potentially be regulated by this action. Other types of entities not listed in the table could also be regulated. If you have questions regarding the applicability of this action to a particular entity, consult the person listed in the preceding<E T="02">FOR FURTHER INFORMATION CONTACT</E>section.</FP>
        <HD SOURCE="HD1">III. What should I consider as I prepare my comments for EPA?</HD>
        <HD SOURCE="HD2">A. Submitting CBI</HD>
        <P>Do not submit this information to EPA through<E T="03">www.regulations.gov</E>or email. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as CBI and then identify electronically within the disk or CD-ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with the procedures set forth in 40 CFR part 2.</P>
        <HD SOURCE="HD2">B. Tips for Preparing Your Comments</HD>
        <P>When submitting comments, remember to:</P>

        <P>• Identify the rulemaking by docket number and other identifying information (subject heading,<E T="04">Federal Register</E>date and page number).</P>
        <P>• Follow directions—The agency may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations (CFR) part or section number.</P>
        <P>• Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes.</P>
        <P>• Describe any assumptions and provide any technical information and/or data that you used.</P>
        <P>• If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced.</P>
        <P>• Provide specific examples to illustrate your concerns, and suggest alternatives.</P>
        <P>• Explain your views as clearly as possible.</P>
        <P>• Make sure to submit your comments by the comment period deadline identified.</P>
        <HD SOURCE="HD1">IV. What does this amendment do?</HD>

        <P>This direct final rule reinstates the maximum observed constituent concentrations for listed hazardous wastes K169, K170, K171, and K172 to the table found in 40 CFR 302.6(b)(1)(iii). A November 8, 2000 final rule (Hazardous Waste Management System; Identification and Listing of Hazardous Waste; Chlorinated Aliphatics Production Wastes; Land Disposal Restrictions for Newly Identified Wastes; CERCLA Hazardous Substance Designation and Reportable Quantities; Final Rule) inadvertently removed the maximum observed constituent concentrations for those listed hazardous wastes from the table in that section when it was amended to include the maximum observed constituent concentrations for listed hazardous wastes K174 and K175. (<E T="03">See</E>65 FR 67132.) The maximum observed constituent concentrations were included in the 40 CFR 302.6 regulations to allow generators, transporters, and disposal facilities handling these hazardous wastes to calculate reportable quantities (RQs) using the mixture rule<SU>1</SU>
          <FTREF/>developed in connection with the Clean Water Act section 311 regulations. The listed hazardous wastes K169, K170, K171, and K172 and their respective RQs are included in Table 302.4—List of Hazardous Substances and Reportable Quantities and Appendix A to section 302.4—Sequential CAS Registry Number List of CERCLA Hazardous Substances of Title 40 of the Code of Federal Regulations. However, the aforementioned Table 302.4 and Appendix A do not contain the maximum observed constituent concentrations. Section 302.6 is the only source of these maximum observed constituent concentrations contained in 40 CFR 302—Designation, Reportable Quantities, and Notification.</P>
        <FTNT>
          <P>
            <SU>1</SU>44 FR 50767, Aug. 29, 1979, Final Rulemaking; Water Programs; Determination of Reportable Quantities for Hazardous Substances; and 50 FR 13463, Apr. 4, 1985, Final rule; Notification Requirements; Reportable Quantity Adjustments. Discharges of mixtures and solutions are subject to these regulations only where a component hazardous substance of the mixture or solution is discharged in a quantity equal to or greater than its reportable quantity.</P>
        </FTNT>
        <HD SOURCE="HD1">V. How were the maximum observed constituent concentrations inadvertently removed?</HD>

        <P>The inadvertent removal of the maximum observed constituent concentrations for K169, K170, K171, and K172 from § 302.6 was the result of a formatting error. On November 8, 2000, EPA issued a final rule (65 FR 67132) in the<E T="04">Federal Register</E>that amended 40 CFR 302.6(b)(1)(iii) by adding entries K174 and K175 to an existing table of maximum observed constituent concentrations for listed hazardous wastes K169, K170, K171, and K172. The<E T="04">Federal Register</E>final rule did not contain the proper signal (5 asterisks) to the Office of the Federal Register that would cause the addition of entries K174 and K175 to the existing table and instead replaced the existing table with a table that only included entries for K174 and K175. The missing signal (5 asterisks) was a formatting error. The proper signal (5 asterisks) was contained in the proposed rule that was published on August 25, 1999. (<E T="03">See</E>64 FR 46539.)</P>
        <P>On November 14, 2011, Artisan EHS Consulting, LLC (Artisan EHS) submitted a request for correction of information under the Data Quality Act (also known as the Information Quality Act),<SU>2</SU>
          <FTREF/>as implemented through the Office of Management and Budget<SU>3</SU>
          <FTREF/>and the EPA.<E T="51">4 5</E>
          <FTREF/>EPA confirmed the accuracy<PRTPAGE P="10389"/>of the Artisan EHS' request which led to this direct final rule.<SU>6</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>2</SU>Section 5(a) of the Treasury and General Government Appropriations Act for Fiscal Year 2001, Public Law 106-554; 44 U.S.C. 3516 (notes).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility, and Integrity of Information Disseminated by Federal Agencies, 67 FR 8452 (Feb. 22, 2002).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>4</SU>Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility, and Integrity, of Information Disseminated by the Environmental Protection Agency, EPA/260R-02-008 (October 2002).</P>
          <P>
            <SU>5</SU>The letter from Artisan EHS can be found in the docket for this final rule, EPA-HQ-SFUND-2011-0965.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>6</SU>In their letter, Artisan EHS also pointed out a typographical error—that is, at the end of 40 CFR 302.6 there is an erroneous reference—`65 FR 87132, Nov. 8, 2001' should read `65 FR 67132, Nov. 8, 2000. Typographical errors are corrected by the Office of the Federal Register. On November 23, 2011, EPA requested that the Office of<E T="04">Federal Register</E>change the reference accordingly—that change was made and is available to view at:<E T="03">http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&amp;tpl=/index.tpl;</E>follow the links to 40 CFR 302.6.</P>
        </FTNT>
        <HD SOURCE="HD1">VI. Statutory and Executive Order Reviews</HD>
        <HD SOURCE="HD2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review</HD>
        <P>This action is not a “significant regulatory action” under the terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is therefore not subject to review under Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011).</P>
        <HD SOURCE="HD2">B. Paperwork Reduction Act</HD>

        <P>This direct final action does not impose any new information collection burden. The amendments in this direct final rule simply reinstates the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations when they were amended to include the maximum observed constituent concentrations for other newly listed hazardous wastes in a November 8, 2000 final rule. This direct final rule does not change any reporting requirements in the general provisions. However, the Office of Management and Budget (OMB) has previously approved the information collection requirements contained in the existing subparts of 40 CFR 302 under the provisions of the<E T="03">Paperwork Reduction Act ,</E>44 U.S.C. 3501<E T="03">et seq.</E>and has assigned OMB control number 2050-0046. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9. Subparts that will be added through separate rulemakings will document the respective information collection requirements in their own ICR documents.</P>
        <HD SOURCE="HD2">C. Regulatory Flexibility Act (RFA)</HD>
        <P>The RFA generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small organizations, and small governmental jurisdictions.</P>
        <P>For purposes of assessing the impacts of this rule on small entities, small entity is defined as: (1) A small business as defined by the Small Business Administration's regulations at 13 CFR 121.201; (2) a small governmental jurisdiction that is a government of a city, county, town, school district or special district with a population of less than 50,000; and (3) a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.</P>
        <P>After considering the economic impacts of this final rule on small entities, I certify that this action will not have a significant economic impact on a substantial number of small entities. The direct final rule simply reinstates the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations when they were amended to include the maximum observed constituent concentrations for other newly listed hazardous wastes in a November 8, 2000 final rule. The direct final rule does not itself add any additional subparts or requirements. The direct final rule will not impose any new requirements on small entities.</P>
        <HD SOURCE="HD2">D. Unfunded Mandates Reform Act (UMRA)</HD>
        <P>This action contains no Federal mandates under the provisions of title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1531-1538 for State, local, or tribal governments or the private sector. The action imposes no enforceable duty on any State, local or tribal governments or the private sector. Therefore, this action is not subject to the requirements of sections 202 or 205 of the UMRA. This action is also not subject to the requirements of section 203 of UMRA because it contains no regulatory requirements that might significantly or uniquely affect small governments. The amendments in this direct final rule reinstate the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations when they were amended to include the maximum observed constituent concentrations for other newly listed hazardous wastes in a November 8, 2000 final rule.</P>
        <HD SOURCE="HD2">E. Executive Order 13132: Federalism</HD>
        <P>Executive Order (EO) 13132, entitled “Federalism” (64 FR 43255, August 10, 1999), requires EPA to develop an accountable process to ensure “meaningful and timely input by State and local officials in the development of regulatory policies that have Federalism implications.” “Policies that have Federalism implications” is defined in the EO to include regulations that have “substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.”</P>
        <P>This direct final rule does not have Federalism implications. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in EO 13132.</P>
        <P>This amendment applies directly to responsible parties. They do not apply to governmental entities unless the government entity releases any of the listed hazardous wastes. This regulation also does not limit the power of States or localities to the responsible parties. Thus, EO 13132 does not apply to this direct final rule.</P>
        <HD SOURCE="HD2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</HD>
        <P>This action does not have tribal implications, as specified in Executive Order 13175 (65 FR 67249, November 9, 2000). The changes in this direct final rule do not result in any changes to the requirements of 40 CFR 302.6. Thus Executive Order 13175 does not apply to this action.</P>
        <HD SOURCE="HD2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</HD>
        <P>This direct final rule is not subject to EO 13045 (62 FR 19885, April 23, 1997) because it is not economically significant as defined in EO 12866, and because the Agency does not believe the environmental health or safety risks addressed by this action present a disproportionate risk to children. The changes in this direct final rule do not result in any changes to the requirements in 40 CFR 302.6.</P>
        <HD SOURCE="HD2">H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use</HD>

        <P>This action is not subject to Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not a significant regulatory action under Executive Order 12866.<PRTPAGE P="10390"/>
        </P>
        <HD SOURCE="HD2">I. National Technology Transfer and Advancement Act</HD>
        <P>Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113, 12(d) (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted by voluntary consensus standards bodies. NTTAA directs EPA to provide Congress, through OMB, explanations when the Agency decides not to use available and applicable voluntary consensus standards.</P>
        <P>This action does not involve technical standards. Therefore, EPA did not consider the use of any voluntary consensus standards.</P>
        <HD SOURCE="HD2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</HD>
        <P>Executive Order 12898 (59 FR 7629, February 16, 1994) establishes Federal executive policy on environmental justice. Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States.</P>
        <P>EPA has determined that the direct final rule will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations because the amendments do not affect the level of protection provided to human health or the environment.</P>
        <HD SOURCE="HD2">K. Congressional Review Act</HD>
        <P>The Congressional Review Act, 5 U.S.C. 801<E T="03">et seq.,</E>as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the U.S. prior to publication of the rule in the<E T="04">Federal Register</E>. A major rule cannot take effect until 60 days after it is published in the<E T="04">Federal Register</E>. This action is not a “major rule” as defined by 5 U.S.C. 804(2).</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 302</HD>
          <P>Environmental protection, Air pollution control, Chemicals, Hazardous substances, Hazardous waste, Intergovernmental relations, Natural resources, Reporting and recordkeeping requirements, Superfund, Water pollution control, Water supply.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 14, 2012.</DATED>
          <NAME>Mathy Stanislaus,</NAME>
          <TITLE>Assistant Administrator, Office of Solid Waste and Emergency Response.</TITLE>
        </SIG>
        
        <P>For the reasons set out, title 40, chapter I of the Code of Federal Regulations is amended as follows:</P>
        <REGTEXT PART="302" TITLE="40">
          <PART>
            <HD SOURCE="HED">PART 302—DESIGNATION, REPORTABLE QUANTITIES, AND NOTIFICATION</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 302 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>42 U.S.C. 9602, 9603, and 9604; 33 U.S.C. 1321 and 1361.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="302" TITLE="40">
          <AMDPAR>2. In § 302.6, paragraph (b)(1)(iii), the table is amended by adding entries K169, K170, K171, and K172 in numerical order to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 302.6</SECTNO>
            <SUBJECT>Notification requirements.</SUBJECT>
            <STARS/>
            <P>(b) * * *</P>
            <P>(1) * * *</P>
            <P>(iii) * * *</P>
            <GPOTABLE CDEF="s50,r100,14" COLS="3" OPTS="L1,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Waste</CHED>
                <CHED H="1">Constituent</CHED>
                <CHED H="1">Max ppm</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">K169</ENT>
                <ENT>Benzene</ENT>
                <ENT>220.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">K170</ENT>
                <ENT>Benzene</ENT>
                <ENT>1.2</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (a) pyrene</ENT>
                <ENT>230.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Dibenz (a,h) anthracene</ENT>
                <ENT>49.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (a) anthracene</ENT>
                <ENT>390.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (b) fluoranthene</ENT>
                <ENT>110.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (k) fluoranthese</ENT>
                <ENT>110.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>3-Methylcholanthrene</ENT>
                <ENT>27.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>7, 12-Dimethylbenz (a) anthracene</ENT>
                <ENT>1,200.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">K171</ENT>
                <ENT>Benzene</ENT>
                <ENT>500.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Arsenic</ENT>
                <ENT>1,600.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">K172</ENT>
                <ENT>Benzene</ENT>
                <ENT>100.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Arsenic</ENT>
                <ENT>730.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
            </GPOTABLE>
          </SECTION>
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4060 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </RULE>
    
    <RULE>
      <PREAMB>
        <PRTPAGE P="10391"/>
        <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
        <CFR>49 CFR Parts 382 and 391</CFR>
        <DEPDOC>[Docket No. FMCSA-2011-0073]</DEPDOC>
        <RIN>RIN 2126-AB35</RIN>
        <SUBJECT>Harmonizing Schedule I Drug Requirements</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Motor Carrier Safety Administration, DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule; correction.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The Federal Motor Carrier Safety Administration (FMCSA) is correcting a Final Rule that appeared in the<E T="04">Federal Register</E>on January 30, 2012 (77 FR 4479), which amended the physical qualifications for drivers and the instructions for the medical examination report to clarify that drivers may not use Schedule I drugs and be qualified to drive commercial motor vehicles (CMVs) under any circumstances.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective February 22, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or e-mail Angela Ward, Nurse Consultant, Medical Programs Office, Federal Motor Carrier Safety Administration, telephone: 202-366-3109; email:<E T="03">angela.ward@dot.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>FMCSA's recent rule harmonizing Schedule I drug requirements included several changes to the Instructions to the Medical Examination Report for Commercial Driver Fitness Determination, form 649-F (6045). Although no changes were to be made to the form itself, due to a printing error, several changes were inadvertently made. The following correction reverses those changes.</P>
        <P>In FR Doc. 2012-1905 appearing on page 4483 in the<E T="04">Federal Register</E>of Monday, January 30, 2012, in Instruction 8, correct the form in § 391.43(f) to read as follows:</P>
        <SECTION>
          <SECTNO>§ 391.43</SECTNO>
          <SUBJECT>Medical examination; certificate of physical examination.</SUBJECT>
          <STARS/>
          <P>(f) * * *</P>
          <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10392"/>
            <GID>ER22FE12.000</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10393"/>
            <GID>ER22FE12.001</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10394"/>
            <GID>ER22FE12.002</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10395"/>
            <GID>ER22FE12.003</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10396"/>
            <GID>ER22FE12.004</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10397"/>
            <GID>ER22FE12.005</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10398"/>
            <GID>ER22FE12.006</GID>
          </GPH>
          <GPH DEEP="640" SPAN="3">
            <PRTPAGE P="10399"/>
            <GID>ER22FE12.007</GID>
          </GPH>
          <PRTPAGE P="10400"/>
          <STARS/>
        </SECTION>
        <SIG>
          <DATED>Issued on: January 31, 2012.</DATED>
          <NAME>Larry Minor,</NAME>
          <TITLE>Associate Administrator for Policy.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3978 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-EX-C</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <CFR>50 CFR Part 679</CFR>
        <DEPDOC>[Docket No. 101126521-0640-02]</DEPDOC>
        <RIN>RIN 6048-XB024</RIN>
        <SUBJECT>Fisheries of the Exclusive Economic Zone Off Alaska; Pacific Cod by Catcher Vessels Less Than 60 Feet (18.3 Meters) Length Overall Using Hook-and-Line or Pot Gear in the Bering Sea and Aleutian Islands Management Area</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Temporary rule; closure.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>NMFS is prohibiting directed fishing for Pacific cod by catcher vessels less than 60 feet (18.3 meters (m)) length overall (LOA) using hook-and-line or pot gear in the Bering Sea and Aleutian Islands management area (BSAI). This action is necessary to prevent exceeding the 2012 Pacific cod total allowable catch (TAC) specified for catcher vessels less than 60 feet (18.3 m) LOA using hook-and-line or pot gear in the BSAI.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective 1200 hrs, Alaska local time (A.l.t.), February 17, 2012, through 2400 hrs, A.l.t., December 31, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Josh Keaton, 907-586-7228.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>NMFS manages the groundfish fishery in the BSAI exclusive economic zone according to the Fishery Management Plan for Groundfish of the Bering Sea and Aleutian Islands Management Area (FMP) prepared by the North Pacific Fishery Management Council under authority of the Magnuson-Stevens Fishery Conservation and Management Act. Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679.</P>
        <P>The 2012 Pacific cod TAC allocated as a directed fishing allowance to catcher vessels less than 60 feet (18.3 m) LOA using hook-and-line or pot gear in the BSAI is 4,645 metric tons as established by the final 2011 and 2012 harvest specifications for groundfish in the BSAI (76 FR 11139, March 1, 2011) and inseason adjustment (76 FR 81875, December 29, 2011).</P>
        <P>In accordance with § 679.20(d)(1)(iii), the Administrator, Alaska Region, NMFS, has determined that the 2012 Pacific cod TAC allocated as a directed fishing allowance to catcher vessels less than 60 feet (18.3 m) LOA using hook-and-line or pot gear in the BSAI has been reached. Consequently, NMFS is prohibiting directed fishing for Pacific cod by catcher vessels less than 60 feet (18.3 m) LOA using hook-and-line or pot gear in the BSAI.</P>
        <P>After the effective date of this closure the maximum retainable amounts at § 679.20(e) and (f) apply at any time during a trip.</P>
        <HD SOURCE="HD1">Classification</HD>
        <P>This action responds to the best available information recently obtained from the fishery. The Assistant Administrator for Fisheries, NOAA (AA), finds good cause to waive the requirement to provide prior notice and opportunity for public comment pursuant to the authority set forth at 5 U.S.C. 553(b)(B) as such requirement is impracticable and contrary to the public interest. This requirement is impracticable and contrary to the public interest as it would prevent NMFS from responding to the most recent fisheries data in a timely fashion and would delay the closure of Pacific cod by catcher vessels less than 60 feet (18.3 m) LOA using hook-and-line or pot gear in the BSAI. NMFS was unable to publish a notice providing time for public comment because the most recent, relevant data only became available as of February 15, 2012.</P>
        <P>The AA also finds good cause to waive the 30-day delay in the effective date of this action under 5 U.S.C. 553(d)(3). This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment.</P>
        <P>This action is required by § 679.20 and is exempt from review under Executive Order 12866.</P>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>16 U.S.C. 1801<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: February 16, 2012.</DATED>
          <NAME>Carrie Selberg,</NAME>
          <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4115 Filed 2-16-12; 4:15 pm]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </RULE>
  </RULES>
  <VOL>77</VOL>
  <NO>35</NO>
  <DATE>Wednesday, February 22, 2012</DATE>
  <UNITNAME>Proposed Rules</UNITNAME>
  <PRORULES>
    <PRORULE>
      <PREAMB>
        <PRTPAGE P="10401"/>
        <AGENCY TYPE="F">NUCLEAR REGULATORY COMMISSION</AGENCY>
        <CFR>10 CFR Part 61</CFR>
        <RIN>RIN-3150-AI92</RIN>
        <DEPDOC>[NRC-2011-0012]</DEPDOC>
        <SUBJECT>Low-Level Radioactive Waste Management Issues</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Nuclear Regulatory Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Public meeting; request for comment.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The U.S. Nuclear Regulatory Commission (NRC or the Commission) plans to conduct a public meeting to discuss possible revisions to the regulatory framework for the management of commercial low-level radioactive waste (LLW). The purpose of this public meeting is to gather information and receive feedback from stakeholders and other interested members of the public concerning specific proposed revisions to the Commission's LLW regulations. Consistent with Commission direction, the NRC staff plans to hold a series of three public meetings in 2012 on the proposed revisions to Commission's LLW regulations. This is the first of those public meetings.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>

          <P>The first public meeting will be held on March 2, 2012, in Phoenix, Arizona. Comments on the issues and questions presented in Section V of the<E T="02">SUPPLEMENTARY INFORMATION</E>section of this document should be submitted by July 31, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The public meeting will be held on March 2, 2012, from 8 a.m. to 4 p.m. at the Marriott Renaissance Phoenix Downtown Hotel, 50 East Adams Street, Phoenix, Arizona 85004. The NRC will accept written comments at the public meeting and welcomes active participation from those attending. You may access information and comment submissions related to this document, which the NRC possesses and is publicly-available, by searching on<E T="03">http://www.regulations.gov</E>under Docket ID NRC-2011-0012. You may submit comments by the following methods:</P>
          <P>•<E T="03">Federal Rulemaking Web site:</E>Go to<E T="03">http://www.regulations.gov</E>and search for Docket ID NRC-2011-0012. Address questions about NRC dockets to Carol Gallagher; telephone: (301) 492-3668; email:<E T="03">Carol.Gallagher@nrc.gov</E>.</P>
          <P>•<E T="03">Mail comments to:</E>Cindy Bladey, Chief, Rules, Announcements, and Directives Branch (RADB), Office of Administration, Mail Stop: TWB-05-B01M, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.</P>
          <P>•<E T="03">Fax comments to:</E>RADB at 301-492-3446.</P>

          <P>For additional direction on accessing information and submitting comments, see “Accessing Information and Submitting Comments” in the<E T="02">SUPPLEMENTARY INFORMATION</E>section of this document.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Michael P. Lee, Ph.D., Office of Federal and State Materials and Environmental Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: (301) 415-6887; email:<E T="03">Mike.Lee@nrc.gov;</E>or Tarsha Moon, Office of Federal and State Materials and Environmental Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: (301) 415-6745; email:<E T="03">Tarsha.Moon@nrc.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">I. Accessing Information and Submitting Comments</HD>
        <HD SOURCE="HD2">A. Accessing Information</HD>
        <P>Please refer to Docket ID NRC-2011-0012 when contacting the NRC about the availability of information regarding this document. You may access information related to this document, which the NRC possesses and is publicly-available, by the following methods:</P>
        <P>•<E T="03">Federal Rulemaking Web Site:</E>Go to<E T="03">http://www.regulations.gov</E>and search for Docket ID NRC-2011-0012.</P>
        <P>•<E T="03">NRC's Agencywide Documents Access and Management System (ADAMS):</E>You may access publicly-available documents online in the NRC Library at<E T="03">http://www.nrc.gov/reading-rm/adams.html</E>. To begin the search, select “<E T="03">ADAMS Public Documents</E>” and then select “<E T="03">Begin Web-based ADAMS Search</E>.” For problems with ADAMS, please contact the NRC's Public Document Room (PDR) reference staff at 1-(800) 397-4209, (301) 415-4737, or by email to<E T="03">pdr.resource@nrc.gov</E>. The ADAMS accession number for each document referenced in this document is provided the first time that a document is referenced.</P>
        <P>•<E T="03">NRC's PDR:</E>You may examine and purchase copies of public documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.</P>
        <HD SOURCE="HD2">B. Submitting Comments</HD>
        <P>Please include Docket ID NRC-2011-0012 in the subject line ofyour comment submission, in order to ensure that the NRC is able to make your comment submission available to the public in this docket.</P>

        <P>The NRC cautions you not to include identifying or contact information in comment submissions that you do not want to be publicly disclosed. The NRC posts all comment submissions at<E T="03">http://www.regulations.gov</E>as well as entering the comment submissions into ADAMS, and the NRC does not edit comment submissions to remove identifying or contact information.</P>
        <P>If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information in their comment submissions that they do not want to be publicly disclosed. Your request should state that the NRC will not edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment submissions into ADAMS.</P>
        <HD SOURCE="HD1">II. Background</HD>

        <P>The Commission's licensing requirements for the disposal of LLW in near-surface [approximately the uppermost 30 meters (100 feet)] facilities reside in Title 10 of the<E T="03">Code of Federal Regulations</E>(10 CFR) Part 61, “Licensing Requirements for Land Disposal of Radioactive Waste.” These regulations were published in the<E T="04">Federal Register</E>on December 27, 1982 (47 FR 57446). The rule applies to any near-surface LLW disposal technology, including shallow-land burial, engineered land disposal methods such as below-ground vaults, earth-mounded concrete bunkers, and augured holes. The regulations emphasize an integrated<PRTPAGE P="10402"/>systems approach to the disposal of commercial LLW, including site selection, disposal facility design and operation, minimum waste form requirements, and disposal facility closure. To lessen the burden on society over the long periods of time contemplated for the control of the radioactive material, and thus lessen reliance on institutional controls, 10 CFR Part 61 emphasizes passive rather than active systems to limit and retard releases to the environment.</P>
        <P>Development of the 10 CFR Part 61 regulation in the early 1980s was based on several assumptions as to the types of wastes likely to go into a commercial LLW disposal facility. To better understand what the likely inventory of wastes available for disposal might be, the NRC conducted a survey of existing LLW generators. The survey, documented in Chapter 3 of NUREG-0782, Draft 10 CFR Part 61 Environmental Impact Statement (DEIS), “Licensing Requirements for Land Disposal of Radioactive Waste” (ADAMS Accession No. ML052590347)—revealed that there were about 37 distinct commercial waste streams consisting of about 25 radionuclides of potential regulatory interest. The specific waste streams in question were representative of the types of commercial LLW being generated at the time. Waste streams associated with the U.S. Department of Energy's (DOE's) nuclear defense complex were not considered as part of the survey, since disposal of those wastes, at that time, was to be conducted at the DOE-operated sites. Over the last several years there have been a number of developments that have called into question some of the key assumptions made in connection with the earlier 10 CFR Part 61 DEIS, including:</P>
        <P>• The emergence of potential LLW streams that were not considered in the original 10 CFR Part 61 rulemaking, including large quantities of depleted uranium (DU), and possibly incidental wastes associated with the commercial reprocessing of spent nuclear fuel;</P>
        <P>• The DOE's increasing use of commercial facilities for the disposal of defense-related LLW streams; and</P>
        <P>• Extensive international operational experience in the management of LLW and intermediate-level radioactive wastes that did not exist at the time 10 CFR Part 61 was promulgated.</P>
        <P>The developments previously described will need to be considered if the staff undertakes a revision of 10 CFR Part 61. Waste from the Nation's defense programs has been managed by DOE and is not subject to regulation under 10 CFR Part 61. Instead, DOE has relied on Order 435.1 to specify the disposal requirements for this waste. The current version of this Order has been in place for about 11 years and applies to management of radioactive waste within the DOE complex. Like 10 CFR Part 61, Order 435.1 places a heavy emphasis on performance assessment as part of its radioactive waste management decision-making. The DOE recently started a comprehensive revision of Order 435.1, which it plans to complete sometime in 2012.</P>
        <HD SOURCE="HD1">III. Recent Commission Direction to the NRC Staff</HD>
        <P>In a March 18, 2009, staff requirements memorandum (SRM) SRM-SECY-08-0147,<SU>1</SU>
          <FTREF/>the Commission directed the NRC staff to proceed with a 10 CFR Part 61 rulemaking to specify a requirement for a site-specific analysis for the disposal of large quantities of DU including the technical requirements for such an analysis, and to develop a guidance document for public comment that outlines the parameters and assumptions to be used in conducting such site-specific analyses. In a second SRM, SRM SECY-10-0043,<SU>2</SU>

          <FTREF/>the staff was also directed to include blended LLW streams as part of this rulemaking initiative. Following the solicitation of early public input in 2009 (74 FR 30175; Docket ID NRC-2009-0257), the NRC staff subsequently developed a technical basis document for the rulemaking amendment (ADAMS Accession No. ML111040419), shared it with the NRC Agreement States, and proceeded to develop a proposed rulemaking package. In connection with the rulemaking effort, the NRC staff also proposed a two-tier approach for evaluating compliance with 10 CFR Part 61's overall system performance objectives: An assessment that extends to 20,000 years as well as an assessment that extends beyond 20,000 years to the time of peak dose. In May 2011, the NRC staff sought public feedback (76 FR 24831) on the preliminary proposed rulemaking language (ADAMS Accession No. ML111150205), as well as the technical basis for the time of compliance recommendation (ADAMS Accession No. ML111030586) after these materials were made publicly available. (See<E T="03">http://www.nrc.gov/about-nrc/regulatory/rulemaking/potential-rulemaking/uw-streams.html</E>.) Later in 2011, the staff also briefed the Advisory Committee on Reactor Safeguards (ACRS) on the preliminary proposed rulemaking language for which a Committee Letter Report dated September 22, 2011 (ADAMS Accession No. ML11256A191) was issued to the Commission.</P>
        <FTNT>
          <P>
            <SU>1</SU>See<E T="03">http://www.nrc.gov/reading-rm/doc-collections/commission/srm/2008/2008-0147srm.pdf</E>.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>See<E T="03">http://www.nrc.gov/reading-rm/doc-collections/commission/srm/2010/2010-0043srm.pdf</E>.</P>
        </FTNT>
        <P>More recently, in a SRM, dated January 19, 2012,<SU>3</SU>
          <FTREF/>the Commission provided additional direction to the NRC staff concerning this particular rulemaking. Specifically, the NRC staff was directed to amend the existing draft rulemaking to include the following:</P>
        <FTNT>
          <P>
            <SU>3</SU>See<E T="03">http://www.nrc.gov/reading-rm/doc-collections/commission/comm-secy/2011/2011-0002comgeawdm-srm.pdf</E>.</P>
        </FTNT>
        <P>• Allowing licensees the flexibility to use ICRP dose methodologies in a site-specific performance assessment for the disposal of all radioactive waste.</P>

        <P>• A two tiered approach that establishes a compliance period that covers the reasonably foreseeable future and a longer period of performance that is not<E T="03">a priori</E>and is established to evaluate the performance of the site over longer timeframes. The period of performance is developed based on the candidate site characteristics (waste package, waste form, disposal technology, cover technology and geo-hydrology) and the peak dose to a designated receptor</P>
        <P>• Flexibility for disposal facilities to establish site-specific waste acceptance criteria based on the results of the site's performance assessment and intruder assessment.</P>
        <P>• A compatibility category for the elements of the revised rule that establish the requirements for site-specific performance assessments and the development of the site-specific waste acceptance criteria that ensures alignment between the States and Federal government on safety fundamentals, while providing the States with the flexibility to determine how to implement these safety requirements.</P>

        <P>In the January 2012 SRM, the Commission also directed the NRC staff to engage stakeholders and other members of the interested public to discuss and finalize the NRC's approach to address the matters raised by the Commission. The Commission also noted that it would reserve judgment on the regulatory form these elements should take in any final rule following NRC staff evaluation of stakeholder input. Accordingly, the NRC staff plans to hold a series of three public meetings in March, May, and July 2012 on the proposed revisions to 10 CFR Part 61. After completion of the public outreach campaign, the staff will prepare an<PRTPAGE P="10403"/>amended technical basis document and commence with the rulemaking. Changes will also need to be made to any 10 CFR Part 61 performance assessment companion guidance document to address the recent June 2012 direction. The completion date for submittal of a revised rulemaking package is currently July 19, 2013.</P>
        <P>The Commission also directed the staff to gather information on the options presented in SECY-10-0165, dated December 27, 2010,<SU>4</SU>
          <FTREF/>concerning the staff's approach to a risk-informing 10 CFR Part 61. Previously, the NRC staff sponsored an earlier workshop on SECY-10-0165, on March 4, 2011 (76 FR 10810). The staff intends to seek the public's views on earlier stakeholder comments received as well as other proposals for a risk-informed revision of 10 CFR Part 61.</P>
        <FTNT>
          <P>
            <SU>4</SU>See<E T="03">http://www.nrc.gov/reading-rm/doc-collections/commission/secys/2010/secy2010-0165/2010-0165scy.pdf.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD1">IV. Emerging Issues Concerning Part 61</HD>

        <P>The NRC staff has also conducted other activities related to 10 CFR Part 61. These include revisions to the Commission's<E T="03">LLW Volume Reduction Policy Statement</E>(76 FR 50500; August 15, 2011); and the<E T="03">Concentration Averaging Branch Technical Position</E>(76 FR 4739; January 26, 2011). Through the course of those stakeholder interactions, the staff received comments and suggestions relevant to the more comprehensive revision of 10 CFR Part 61. For example, stakeholders have recommended changes that would lengthen the period of institutional controls and allow a site-specific intruder assessment. Some stakeholders have questioned basic fundamental tenets of 10 CFR Part 61 including the need to protect the inadvertent intruder. The staff intends to seek the public's views on these and other stakeholder comments.</P>
        <HD SOURCE="HD1">V. NRC Public Meeting</HD>
        <P>The purpose of this public meeting is to gather information from stakeholders and other interested members of the public concerning the rulemaking proposals identified by the Commission in its January 2012 SRM. This overall approach is consistent with NRC's openness policy and is consistent with the type of public outreach initiative originally used by the NRC staff to develop 10 CFR Part 61. The March 2, 2012, public meeting will be organized into three parts. In the first part, the NRC staff will seek public feedback on the pros and cons of the four technical issues specifically identified by the Commission in its January 2012 SRM. In the second part, the staff will identify other technical issues identified by stakeholders bearing on the 10 CFR Part 61 rule and seek public feedback on the merits of these (additional) changes that have been suggested in connection with other on-going LLW regulatory initiatives. In the third session, the staff will seek public feedback on the options proposed in SECY-10-0165 and accept other proposals for a comprehensive revision of 10 CFR Part 61.</P>
        <P>The public meeting will be held on March 2, 2012, from 8 a.m. to 4 p.m. at the Marriott Renaissance Phoenix Downtown Hotel, 50 East Adams Street, Phoenix, Arizona 85004. Pre-registration for this meeting is not necessary. Members of the public choosing to participate in this meeting remotely can do so in one of two ways—online, or via a telephone (audio) connection. Instructions for remote participation in this meeting follow.</P>

        <P>Interested members of the public can also participate in this meeting via webinar. The webinar meeting registration link can be found at:<E T="03">https://www1.gotomeeting.com/register/191710105</E>. After registering, instructions for joining the webinar (including a teleconference number and pass code) will be provided via email. All participants will be in “listen-only” mode during the presentation. Participants will have a chance to pose questions either orally after the presentation or in writing during the webinar.</P>
        <P>To receive a call back, provide your phone number when you join the meeting, or call the following number and enter the access code:</P>
        <P>
          <E T="03">Call-in toll-free number (US/Canada):</E>1-888-942-8392, access code: 8568781.</P>

        <P>The agenda for the public meeting will be noticed no fewer than ten (10) days prior to the meeting on the NRC's Public Meeting Schedule Web site at<E T="03">http://www.nrc.gov/public-involve/public-meetings/index.cfm</E>. Subsequent public meetings are tentatively planned for Dallas, Texas, on May 15, 2012 and late July in Rockville, Maryland.</P>
        <P>Comments may be sent to the address listed in the<E T="02">ADDRESSES</E>section of this document.</P>

        <P>Questions about participation in the public meetings should be directed to the points of contact listed in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section of this document.</P>
        <SIG>
          <DATED>Dated at Rockville, Maryland, this 15th day of February 2012.</DATED>
          <P>For the U.S. Nuclear Regulatory Commission.</P>
          <NAME>Andrew Persinko,</NAME>
          <TITLE>Deputy Director, Environmental Protection and Performance Assessment Directorate, Division of Waste Management and Environmental Protection, Office of Federal and State Materials and Environmental Management Programs.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4090 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 7590-01-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2012-0145; Directorate Identifier 2011-NM-066-AD]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; The Boeing Company Airplanes</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking (NPRM).</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We propose to supersede an existing airworthiness directive (AD) that applies to certain The Boeing Company Model 767 airplanes. The existing AD currently requires revising the Airworthiness Limitations Section of the maintenance planning data (MPD) document. Since we issued that AD, a re-evaluation of certain doors and flaps was done based on their fatigue-critical nature. This proposed AD would revise the maintenance program to incorporate an additional limitation, and would add airplanes to the applicability. We are proposing this AD to detect and correct fatigue cracking of the principal structural element (PSEs), which could adversely affect the structural integrity of the airplane.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We must receive comments on this proposed AD by April 9, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov</E>. Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>202-493-2251.</P>
          <P>•<E T="03">Mail:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
          <P>•<E T="03">Hand Delivery:</E>Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.<PRTPAGE P="10404"/>
          </P>

          <P>For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data &amp; Services Management, P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-544-5000, extension 1; fax 206-766-5680; email<E T="03">me.boecom@boeing.com;</E>Internet<E T="03">https://www.myboeingfleet.com.</E>You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (phone: 800-647-5527) is in the<E T="02">ADDRESSES</E>section. Comments will be available in the AD docket shortly after receipt.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Berhane Alazar, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-917-6577; fax: 425-917-6590; email:<E T="03">berhane.alazar@faa.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Comments Invited</HD>

        <P>We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the<E T="02">ADDRESSES</E>section. Include “Docket No. FAA-2012-0145; Directorate Identifier 2011-NM-066-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments.</P>
        <P>We will post all comments we receive, without change, to<E T="03">http://www.regulations.gov</E>, including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD.</P>
        <HD SOURCE="HD1">Discussion</HD>
        <P>On September 4, 2003, we issued AD 2003-18-10, amendment 39-13301 (68 FR 53503, September 11, 2003), for certain The Boeing Company Model 767-200, -300, -300F, and -400ER series airplanes. That AD requires revising Subsection B, Section 9, of Boeing 767 Maintenance Planning Data (MPD) Document D622T001-9, titled “Airworthiness Limitations (AWLs) and Certification Maintenance Requirements (CMRs),” to incorporate Revision October 2002; and Appendix B of Boeing 767 MPD Document D622T001, Revision December 2002. That AD resulted from analysis of data that identified specific initial inspection thresholds and repetitive inspection intervals for certain principal structural elements (PSEs) to be added to the airworthiness limitation instructions (ALI). We issued that AD to ensure that fatigue cracking of various PSEs is detected and corrected; such fatigue cracking could adversely affect the structural integrity of these airplanes.</P>
        <HD SOURCE="HD1">Actions Since Existing AD Was Issued</HD>
        <P>Since we issued AD 2003-18-10 (68 FR 53503, September 11, 2003), a re-evaluation of certain doors and flaps was done based on their fatigue-critical nature. These items were classified as PSEs and have been included in the revised MPD Document.</P>
        <HD SOURCE="HD1">Relevant Service Information</HD>
        <P>We reviewed Subsection B, Airworthiness Limitations—Structural Inspections, of Section 9, Airworthiness Limitations (AWLs) and Certification Maintenance Requirements (CMRs), D622T001-9, Revision July 2011, of the Boeing 767 Maintenance Planning Data (MPD) Document. This service information describes procedures for an additional critical fatigue inspection.</P>
        <HD SOURCE="HD1">FAA's Determination</HD>
        <P>We are proposing this AD because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design.</P>
        <HD SOURCE="HD1">Proposed AD Requirements</HD>
        <P>This proposed AD would retain certain requirements of AD 2003-18-10 (68 FR 53503, September 11, 2003). This proposed AD would revise the Airworthiness Limitations Section of the Maintenance Planning Data (MPD) Document 767 Airworthiness Limitations Instructions (ALI) which adds a critical fatigue inspection and revises the applicability to include additional airplane line numbers.</P>
        <HD SOURCE="HD1">Change to Existing AD</HD>
        <P>This proposed AD would retain certain requirements of AD 2003-18-10 (68 FR 53503, September 11, 2003). Since AD 2003-18-10 was issued, the AD format has been revised, and certain paragraphs have been rearranged. As a result, the corresponding paragraph identifiers have changed in this proposed AD, as listed in the following table:</P>
        <GPOTABLE CDEF="12C,12C" COLS="2" OPTS="L2,i1">
          <TTITLE>Revised Paragraph Identifiers</TTITLE>
          <BOXHD>
            <CHED H="1">Requirement in AD 2003-18-10 (68 FR 53503, September 11, 2003)</CHED>
            <CHED H="1">Corresponding<LI>requirement in this</LI>
              <LI>proposed AD</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">paragraph (c)</ENT>
            <ENT>paragraph (g)</ENT>
          </ROW>
          <ROW>
            <ENT I="01">paragraph (d)</ENT>
            <ENT>paragraph (h)</ENT>
          </ROW>
        </GPOTABLE>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>We estimate that this proposed AD affects 417 airplanes of U.S. registry.</P>
        <P>We estimate the following costs to comply with this proposed AD:</P>
        <GPOTABLE CDEF="s100,r50,13,13,13" COLS="5" OPTS="L2,i1">
          <TTITLE>Estimated Costs</TTITLE>
          <BOXHD>
            <CHED H="1">Action</CHED>
            <CHED H="1">Labor cost</CHED>
            <CHED H="1">Parts cost</CHED>
            <CHED H="1">Cost per<LI>product</LI>
            </CHED>
            <CHED H="1">Cost on U.S. operators</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Revise airworthiness limitations [retained actions from existing AD 2003-18-10 (68 FR 53503, September 11, 2003)]</ENT>
            <ENT>1 work-hour × $85 per hour = $85</ENT>
            <ENT>$0</ENT>
            <ENT>$85</ENT>
            <ENT>$35,445</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Revise airworthiness limitations [new requirements]</ENT>
            <ENT>1 work-hour × $85 per hour = $85</ENT>
            <ENT>0</ENT>
            <ENT>85</ENT>
            <ENT>35,445</ENT>
          </ROW>
        </GPOTABLE>
        <PRTPAGE P="10405"/>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We have determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify that the proposed regulation:</P>
        <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
        <P>(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),</P>
        <P>(3) Will not affect intrastate aviation in Alaska, and</P>
        <P>(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          <P>1. The authority citation for part 39 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The FAA amends § 39.13 by removing airworthiness directive (AD) 2003-18-10, Amendment 39-13301 (68 FR 53503, September 11, 2003), and adding the following new AD:</P>
            
            <EXTRACT>
              <FP SOURCE="FP-2">
                <E T="04">The Boeing Company:</E>Docket No. FAA-2012-0145; Directorate Identifier 2011-NM-066-AD.</FP>
              <HD SOURCE="HD1">(a) Comments Due Date</HD>
              <P>The FAA must receive comments on this AD action by April 9, 2012.</P>
              <HD SOURCE="HD1">(b) Affected ADs</HD>
              <P>This AD supersedes AD 2003-18-10, Amendment 39-13301 (68 FR 53503, September 11, 2003).</P>
              <HD SOURCE="HD1">(c) Applicability</HD>
              <P>This AD applies to The Boeing Company Model 767-200, -300, -300F, and -400ER series airplanes; certificated in any category; line numbers 1 through 997 inclusive.</P>
              <NOTE>
                <HD SOURCE="HED">Note 1:</HD>
                <P>This AD requires revisions to certain operator maintenance documents to include new inspections. Compliance with these inspections is required by 14 CFR 91.403(c). For airplanes that have been previously modified, altered, or repaired in the areas addressed by these inspections, the operator may not be able to accomplish the inspections described in the revisions. In this situation, to comply with 14 CFR 91.403(c), the operator must request approval for an alternative method of compliance according to paragraph (k) of this AD. The request should include a description of changes to the required inspections that will ensure the continued damage tolerance of the affected structure. The FAA has provided guidance for this determination in Advisory Circular (AC) 25.1529-1A.</P>
              </NOTE>
              <HD SOURCE="HD1">(d) Subject</HD>
              <P>Joint Aircraft System Component (JASC)/Air Transport Association (ATA) of America Code 51, Standard Practices/Structures; 52, Doors; 53, Fuselage structure; 54, Nacelle/Pylons; 55, Stabilizers; 56, Windows; and 57, Wings.</P>
              <HD SOURCE="HD1">(e) Unsafe Condition</HD>
              <P>This AD was prompted by a re-evaluation of certain doors and flaps based on their fatigue-critical nature. We are issuing this AD to detect and correct fatigue cracking of the principal structural elements (PSEs), which could adversely affect the structural integrity of the airplane.</P>
              <HD SOURCE="HD1">(f) Compliance</HD>
              <P>Comply with this AD within the compliance times specified, unless already done.</P>
              <HD SOURCE="HD1">Restatement of Requirements AD 2003-18-10, Amendment 39-13301 (68 FR 53503, September 11, 2003), With New Service Information</HD>
              <HD SOURCE="HD1">(g) Revise Section 9 of the Boeing 767 Maintenance Planning Data (MPD) Document</HD>
              <P>For Model 767-200, -300, -300F, and -400ER series airplanes having line numbers 1 through 895 inclusive: Within 18 months after October 16, 2003 (the effective date AD 2003-18-10, (68 FR 53503, September 11, 2003)), revise Subsection B, Section 9, of Boeing 767 MPD Document D622T001-9, entitled “Airworthiness Limitations and Certification Maintenance Requirements,” to incorporate Revision October 2002; and Appendix B of Boeing 767 MPD Document D622T001, Revision December 2002; or Subsection B, Airworthiness Limitations—Structural Limitations, of Section 9, Airworthiness Limitations (AWLs) and Certification Maintenance Requirements (CMRs), D622T001-9, Revision July 2011, of the Boeing 767 MPD Document.</P>
              <HD SOURCE="HD1">(h) Alternative Inspections and Inspection Intervals</HD>
              <P>Except as provided by paragraphs (i) and (k) of this AD: After the actions required by paragraph (g) of this AD have been accomplished, no alternative inspections or inspection intervals shall be approved for the structural significant items (SSIs) contained in Section 9 of Boeing 767 MPD Document D622T001-9, Revision October 2002.</P>
              <HD SOURCE="HD1">New Requirements of This AD</HD>
              <HD SOURCE="HD1">(i) Maintenance Program Revision</HD>
              <P>Within 18 months after the effective date of this AD, revise the maintenance program to incorporate the limitations section in Subsection B, Airworthiness Limitations—Structural Inspections, of Section 9, Airworthiness Limitations (AWLs) and Certification Maintenance Requirements (CMRs), D622T001-9, Revision July 2011, of the Boeing 767 MPD Document. Doing this revision terminates the requirements of paragraph (g) of this AD.</P>
              <NOTE>
                <HD SOURCE="HED">Note 2:</HD>
                <P>For the purposes of this AD, the terms principal structural elements (PSEs) as used in this AD, and SSIs as used in Subsection B, Airworthiness Limitations—Structural Inspections, of Section 9, Airworthiness Limitations (AWLs) and Certification Maintenance Requirements (CMRs), D622T001-9, Revision July 2011, of the Boeing 767 MPD Document, are considered to be interchangeable.</P>
              </NOTE>
              <HD SOURCE="HD1">(j) Alternative Inspections and Inspection Intervals</HD>
              <P>Except as provided by paragraph (k) of this AD: After the actions required by paragraph (i) of this AD have been accomplished, no alternative inspections or inspection intervals shall be approved for the SSIs contained in Subsection B, Airworthiness Limitations—Structural Inspections, of Section 9, Airworthiness Limitations (AWLs) and Certification Maintenance Requirements (CMRs), D622T001-9, Revision July 2011, of the Boeing 767 MPD Document.</P>
              <HD SOURCE="HD1">(k) Alternative Methods of Compliance (AMOCs)</HD>

              <P>(1) The Manager, Seattle Aircraft Certification Office (ACO), ANM-120S, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information<PRTPAGE P="10406"/>directly to the manager of the ACO, send it to the attention of the person identified in the Related Information section of this AD. Information may be emailed to:<E T="03">9-ANM-Seattle-ACO-AMOC-Requests@faa.gov</E>.</P>
              <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
              <P>(3) An AMOC that provides an acceptable level of safety may be used for any repair required by this AD if it is approved by the Boeing Commercial Airplanes Organization Designation Authorization (ODA) that has been authorized by the Manager, Seattle Aircraft Certification Office (ACO) to make those findings. For a repair method to be approved, the repair must meet the certification basis of the airplane and 14 CFR 25.571, Amendment 45, and the approval must specifically refer to this AD.</P>
              <HD SOURCE="HD1">(l) Related Information</HD>

              <P>(1) For more information about this AD, contact Berhane Alazar, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-917-6577; fax: 425-917-6590; email:<E T="03">berhane.alazar@faa.gov</E>.</P>

              <P>(2) For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data &amp; Services Management, P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-544-5000, extension 1; fax 206-766-5680; email<E T="03">me.boecom@boeing.com;</E>Internet<E T="03">https://www.myboeingfleet.com.</E>You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in Renton, Washington, on February 9, 2012.</DATED>
            <NAME>Ali Bahrami,</NAME>
            <TITLE>Manager, Transport Airplane Directorate, Aircraft Certification Service.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4161 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2012-0147; Directorate Identifier 2011-NM-067-AD]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; The Boeing Company Airplanes</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking (NPRM).</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We propose to supersede an existing airworthiness directive (AD) that applies to certain The Boeing Company Model 767-200 and -300 series airplanes. The existing AD requires replacement of the existing deactivation pin, aft cascade pin bushing, and pin insert on each thrust reverser half with new, improved components. Since we issued that AD, we received reports that certain airplanes require installation of a new bushing and deactivation pin with increased load carrying capability and all airplanes powered by Pratt &amp; Whitney JT9D series engines require installation of a new bracket for stowing the deactivation pin. This proposed AD would add a dye penetrant inspection for cracking of the rivet holes of the bushing plate and repair or replacement, if necessary. For certain airplanes, this proposed AD would require replacing the existing bushing with a new bushing and deactivation pin; and installing a new or serviceable stowage bracket for the deactivation pins on all airplanes powered by Pratt &amp; Whitney JT9D series engines. We are proposing this AD to prevent failure of the thrust reverser deactivation pins, which could fail to prevent a deployment of a deactivated thrust reverser in flight and consequent reduced controllability of the airplane.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>We must receive comments on this proposed AD by April 9, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov</E>. Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>202-493-2251.</P>
          <P>•<E T="03">Mail:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
          <P>•<E T="03">Hand Delivery:</E>Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>

          <P>For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data &amp; Services Management, P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-544-5000, extension 1; fax 206-766-5680; email<E T="03">me.boecom@boeing.com</E>; Internet<E T="03">https://www.myboeingfleet.com.</E>You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (phone: 800-647-5527) is in the<E T="02">ADDRESSES</E>section. Comments will be available in the AD docket shortly after receipt.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Rebel Nichols, Aerospace Engineer, Propulsion Branch, ANM-140S, FAA, Seattle Aircraft Certification Office (ACO), 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-917-6509; fax: 425-917-6590; email:<E T="03">rebel.nichols@faa.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Comments Invited</HD>

        <P>We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the<E T="02">ADDRESSES</E>section. Include “Docket No. FAA-2012-0147; Directorate Identifier 2011-NM-067-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments.</P>
        <P>We will post all comments we receive, without change, to<E T="03">http://www.regulations.gov</E>, including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD.</P>
        <HD SOURCE="HD1">Discussion</HD>

        <P>On September 19, 2002, we issued AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), for certain Model 767-200 and -300 series airplanes powered by Pratt &amp; Whitney JT9D series engines. The existing AD requires replacement of the existing deactivation pin, aft cascade pin bushing, and pin insert on each thrust reverser half, with new, improved components. The existing AD resulted from reports that the pin insert for the deactivation pin was not able to withstand the load of a powered deployment and could fail on some airplanes. We issued that AD to prevent failure of the thrust reverser deactivation pins, which could fail to<PRTPAGE P="10407"/>prevent a deployment of a deactivated thrust reverser in flight and consequent reduced controllability of the airplane.</P>
        <HD SOURCE="HD1">Actions Since Existing AD Was Issued</HD>
        <P>Since we issued AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), we received reports indicating that certain airplanes require installation of a new bushing and pin with increased load carrying capability, and all airplanes powered by Pratt &amp; Whitney JT9D series engines require installation of a new bracket for stowing the deactivation pin. Specifically, we have been advised that the part number (P/N) 315T3222-3 bushing could not be replaced by the P/N 315T3222-10 bushing due to inadequate edge margin on the early thrust reverser configuration.</P>
        <HD SOURCE="HD1">Relevant Service Information</HD>
        <P>AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), refers to Boeing Alert Service Bulletin 767-78A0089, Revision 1, dated May 30, 2002, as the appropriate source of service information for the required actions. Boeing has since revised this service information. We reviewed Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009, which identifies additional work that needs to be performed on specifically configured Group 2 airplanes for doing a dye penetrant inspection for cracking of the rivet holes of the bushing plate; repair or replacement of the bushing plate with a new or serviceable bushing plate if necessary; and replacing any existing P/N 315T3222-3 or P/N 315T3222-10 bushing and deactivation pin with a new P/N 315T3221-1 bushing and new P/N 315T1604-6 deactivation pin to provide adequate edge margin. Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009, also identifies additional work for installing a new or serviceable stowage bracket for the deactivation pins on all airplanes powered by Pratt &amp; Whitney JT9D series engines.</P>
        <HD SOURCE="HD1">FAA's Determination</HD>
        <P>We are proposing this AD because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of these same type designs.</P>
        <HD SOURCE="HD1">Proposed AD Requirements</HD>
        <P>This proposed AD would retain all requirements of AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002). This proposed AD would also require accomplishing the actions specified in the service information described previously.</P>
        <HD SOURCE="HD1">Change to Existing AD</HD>
        <P>Since AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), was issued, the AD format has been revised, and certain paragraphs have been rearranged. As a result, paragraphs (a) and (b) of AD 2002-19-11 Amendment 39-12891 (67 FR 61478, October 1, 2002), have been re-identified as paragraphs (g) and (h) in this proposed AD.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>We estimate that this proposed AD affects 23 airplanes of U.S. registry. We estimate the following costs to comply with this proposed AD:</P>
        <GPOTABLE CDEF="s100,r50,13,13,13,13" COLS="6" OPTS="L2,i1">
          <TTITLE>Estimated Costs</TTITLE>
          <BOXHD>
            <CHED H="1">Action</CHED>
            <CHED H="1">Labor cost</CHED>
            <CHED H="1">Parts cost</CHED>
            <CHED H="1">Cost per<LI>product</LI>
            </CHED>
            <CHED H="1">Number of U.S. registered<LI>airplanes</LI>
            </CHED>
            <CHED H="1">Cost on U.S. operators</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Replace deactivation pin, pin bushing, and pin insert (retained actions from existing AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002)</ENT>
            <ENT>12 work-hours × $85 per hour = $1,020 per inspection cycle</ENT>
            <ENT>$12,108</ENT>
            <ENT>$13,128</ENT>
            <ENT>23</ENT>
            <ENT>$301,944</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Group 1: Install stowage bracket for deactivation pin (new proposed action)</ENT>
            <ENT>17 work-hours × $85 per hour = $1,445</ENT>
            <ENT>14,644</ENT>
            <ENT>16,089</ENT>
            <ENT>16</ENT>
            <ENT>257,424</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Group 2: Replace bushing and deactivation pin and install stowage bracket for thrust reverser deactivation pin (new proposed action)</ENT>
            <ENT>17 work-hours × $85 per hour = $1,445</ENT>
            <ENT>19,972</ENT>
            <ENT>21,417</ENT>
            <ENT>7</ENT>
            <ENT>149,919</ENT>
          </ROW>
        </GPOTABLE>
        <P>We have received no definitive data that would enable us to provide cost estimates for the on-condition actions (repair or replacement of bushing plate) specified in this proposed AD.</P>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We have determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify that the proposed regulation:</P>
        <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
        <P>(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),</P>
        <P>(3) Will not affect intrastate aviation in Alaska, and</P>
        <P>(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <PRTPAGE P="10408"/>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          <P>1. The authority citation for part 39 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The FAA amends § 39.13 by removing airworthiness directive (AD) 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), and adding the following new AD:</P>
            
            <EXTRACT>
              <FP SOURCE="FP-2">
                <E T="04">The Boeing Company:</E>Docket No. FAA-2012-0147; Directorate Identifier 2011-NM-067-AD.</FP>
              <HD SOURCE="HD1">(a) Comments Due Date</HD>
              <P>The FAA must receive comments on this AD action by April 9, 2012.</P>
              <HD SOURCE="HD1">(b) Affected ADs</HD>
              <P>This AD supersedes AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002).</P>
              <HD SOURCE="HD1">(c) Applicability</HD>
              <P>This AD applies to The Boeing Company Model 767-200 and -300 series airplanes, certificated in any category; as identified in Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009.</P>
              <HD SOURCE="HD1">(d) Subject</HD>
              <P>Joint Aircraft System Component (JASC)/Air Transport Association (ATA) of America Code 7830, Thrust Reverser.</P>
              <HD SOURCE="HD1">(e) Unsafe Condition</HD>
              <P>This AD was prompted by reports that certain airplanes require installation of a new bushing and deactivation pin with increased load carrying capability and all airplanes powered by Pratt &amp; Whitney JT9D series engines require installation of a new bracket for stowing the deactivation pin. We are issuing this AD to prevent failure of the thrust reverser deactivation pins, which could fail to prevent a deployment of a deactivated thrust reverser in flight and consequent reduced controllability of the airplane.</P>
              <HD SOURCE="HD1">(f) Compliance</HD>
              <P>Comply with this AD within the compliance times specified, unless already done.</P>
              <HD SOURCE="HD1">Restatement of Requirements of AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), With Revised Service Information</HD>
              <HD SOURCE="HD1">(g) Replacement of Deactivation Pin, Pin Bushing, and Pin Insert</HD>
              <P>Within 24 months after November 5, 2002 (the effective date of AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002)), replace the existing deactivation pin, pin bushing in the aft cascade mounting ring, and pin insert on each thrust reverser half, with new, improved components, in accordance with Boeing Alert Service Bulletin 767-78A0089, Revision 1, dated May 30, 2002; or Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009. After the effective date of this AD, only Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009, may be used.</P>
              <NOTE>
                <HD SOURCE="HED">Note to paragraph (g):</HD>
                <P>The new, improved insert flange and pin bushing does not physically preclude use of a deactivation pin having P/N 315T1604-2 or -5. However, use of deactivation pins having P/N 315T1604-2 or -5 may not prevent the thrust reversers from deploying in the event of a full powered deployment. Therefore, thrust reversers modified per AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), are required to be installed with the new, longer deactivation pins having P/N 315T1604-6, as specified in Boeing Alert Service Bulletin 767-78A0089, Revision 1, dated May 30, 2002, or Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009. After the effective date of this AD, only Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009, may be used.</P>
              </NOTE>
              <HD SOURCE="HD1">New Requirements of This AD</HD>
              <HD SOURCE="HD1">(h) Inspection, Bushing and Pin Replacement, and Installation of Stowage Bracket</HD>
              <P>Within 24 months after the effective date of this AD, do the applicable actions specified in paragraphs (h)(1) and (h)(2) of this AD.</P>
              <P>(1) For Group 2 airplanes as identified in Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009, do a dye penetrant inspection for cracking of the rivet holes and replace any P/N 315T3222-3 or P/N 315T3222-10 bushing and deactivation pin with a new or serviceable P/N 315T3221-1 bushing and new P/N 315T1604-6 deactivation pin, in accordance with the Accomplishment Instructions of Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009. If any crack is found in the rivet holes of the bushing plate, before further flight, repair or replace the bushing plate with a new or serviceable bushing plate, as applicable, using a method approved in accordance with the procedures specified in paragraph (j) of this AD.</P>
              <P>(2) For both Group 1 and Group 2 airplanes, as identified in Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009, install a new or serviceable stowage bracket assembly (P/N 015T0196-4 for the right thrust reverser, P/N 015T0196-5 for the left thrust reverser), in accordance with the Accomplishment Instructions of Boeing Alert Service Bulletin 767-78A0089, Revision 5, dated June 9, 2009.</P>
              <HD SOURCE="HD1">(i) Credit for Actions Accomplished in Accordance With Previous Service Information</HD>
              <P>Actions accomplished before the effective date of this AD in accordance with Boeing Alert Service Bulletin 767-78A0089, Revision 2, dated March 13, 2003; Boeing Alert Service Bulletin 767-78A0089, Revision 3, dated December 18, 2003; or Boeing Alert Service Bulletin 767-78A0089, Revision 4, dated March 6, 2008; are considered acceptable for compliance with the corresponding requirements of paragraph (g) of this AD.</P>
              <HD SOURCE="HD1">(j) Alternative Methods of Compliance (AMOCs)</HD>

              <P>(1) The Manager, Seattle Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the ACO, send it to the attention of the person identified in the Related Information section of this AD. Information may be emailed to:<E T="03">9-ANM-Seattle-ACO-AMOC-Requests@faa.gov.</E>
              </P>
              <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
              <P>(3) AMOCs approved for AD 2002-19-11, Amendment 39-12891 (67 FR 61478, October 1, 2002), are approved as AMOCs for the corresponding provisions of paragraph (g) of this AD.</P>
              <HD SOURCE="HD1">(k) Related Information</HD>

              <P>(1) For more information about this AD, contact Rebel Nichols, Aerospace Engineer, Propulsion Branch, ANM-140S, FAA, Seattle Aircraft Certification Office (ACO), 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-917-6509; fax: 425-917-6590; email:<E T="03">rebel.nichols@faa.gov.</E>
              </P>

              <P>(2) For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data &amp; Services Management, P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-544-5000, extension 1; fax 206-766-5680; email<E T="03">me.boecom@boeing.com;</E>Internet<E T="03">https://www.myboeingfleet.com.</E>You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in Renton, Washington, on February 10, 2012.</DATED>
            <NAME>Ali Bahrami,</NAME>
            <TITLE>Manager, Transport Airplane Directorate, Aircraft Certification Service.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4162 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <PRTPAGE P="10409"/>
        <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2012-0144; Directorate Identifier 2011-NM-152-AD]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; Airbus Airplanes</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking (NPRM).</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We propose to adopt a new airworthiness directive (AD) for all Airbus Model A300 series airplanes; Model A310 series airplanes; Model A300 B4-600, B4-600R, and F4-600R series airplanes, and Model C4-605R Variant F airplanes (collectively called Model A300-600 series airplanes). This proposed AD was prompted by reports of cracked fuel pump canister hoods located in fuel tanks. This proposed AD would require replacing any hood halves of fuel pump canisters that are cracked. We are proposing this AD to prevent any detached canister hood fragments/debris from being ingested into the fuel feed system, and the metallic debris inside the fuel tank resulting in a potential source of ignition and consequent fire or explosion.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We must receive comments on this proposed AD by April 9, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may send comments by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov.</E>Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>(202) 493-2251.</P>
          <P>•<E T="03">Mail:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
          <P>•<E T="03">Hand Delivery:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>

          <P>For service information identified in this proposed AD, contact Airbus SAS-EAW (Airworthiness Office), 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 44 51; email:<E T="03">account.airworth-eas@airbus.com;</E>Internet<E T="03">http://www.airbus.com.</E>You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone (800) 647-5527) is in the<E T="02">ADDRESSES</E>section. Comments will be available in the AD docket shortly after receipt.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Dan Rodina, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, Washington 98057-3356; telephone (425) 227-2125; fax (425) 227-1149.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Comments Invited</HD>

        <P>We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the<E T="02">ADDRESSES</E>section. Include “Docket No. FAA-2012-0144; Directorate Identifier 2011-NM-152-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD based on those comments.</P>
        <P>We will post all comments we receive, without change, to<E T="03">http://www.regulations.gov,</E>including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD.</P>
        <HD SOURCE="HD1">Discussion</HD>
        <P>The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Community, has issued EASA Airworthiness Directive 2011-0124, dated June 30, 2011 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states:</P>
        
        <EXTRACT>
          <P>This [EASA] AD results from findings of cracked fuel pump canister hoods located in fuel tanks.</P>
          <P>From the analyses, laboratory testing and examinations made so far, it is presently thought that vibration-induced fatigue can be identified as the root cause for the cracks found on in-service aeroplanes. However, current data does not yet permit to exclude some other potential contributing factors.</P>
          <P>This condition, if not detected and corrected, could lead to detached canister hood fragments/debris to be ingested into the fuel feed system. Also, the metallic debris inside the fuel tank could result in a potential source of ignition and consequent fire or explosion.</P>
          <P>For the reasons described above, this [EASA] AD requires repetitive [detailed] inspections of all fuel pump canister hood halves and their replacement if any [cracking] damage is found. This [EASA] AD also requires the inspection results to be reported.</P>
          <P>This [EASA] AD is considered to be an interim action. The reports that are required by this [EASA] AD will enable the manufacturer to obtain better insight into the nature, cause, and extent of the fuel pump canister hood cracking, and eventually to develop final action to address the unsafe condition. Once final action has been identified, further AD actions could be considered.</P>
        </EXTRACT>
        
        <FP>You may obtain further information by examining the MCAI in the AD docket.</FP>
        <HD SOURCE="HD1">Relevant Service Information</HD>
        <P>Airbus has issued Mandatory Service Bulletins A300-28-0089, A300-28-6106, and A310-28-2173, all including Inspection Findings—Reporting Sheet, all Revision 01, all dated April 15, 2011. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI.</P>
        <HD SOURCE="HD1">FAA's Determination and Requirements of This Proposed AD</HD>
        <P>This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of the same type design.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>

        <P>Based on the service information, we estimate that this proposed AD would affect about 221 products of U.S. registry. We also estimate that it would take up to 12 work-hours per product to comply with the basic requirements of this proposed AD. The average labor rate is $85 per work-hour. Based on these figures, we estimate the cost of the proposed AD on U.S. operators to be $225,420, or $1,020 per product.<PRTPAGE P="10410"/>
        </P>
        <P>In addition, we estimate that any necessary follow-on actions would take about 1 work-hour. We have no way of determining the number of products that may need these actions.</P>
        <P>We have received no definitive data that would enable us to provide cost estimates for certain parts required for the on-condition actions (replacing fuel pump canister hood halves) specified in this proposed AD.</P>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify this proposed regulation:</P>
        <P>1. Is not a “significant regulatory action” under Executive Order 12866;</P>
        <P>2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and</P>
        <P>3. Will not affect intrastate aviation in Alaska; and</P>
        <P>4. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          <P>1. The authority citation for part 39 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The FAA amends § 39.13 by adding the following new AD:</P>
            
            <EXTRACT>
              <FP SOURCE="FP-2">
                <E T="04">Airbus:</E>Docket No. FAA-2012-0144; Directorate Identifier 2011-NM-152-AD.</FP>
              <HD SOURCE="HD1">(a) Comments Due Date</HD>
              <P>We must receive comments by April 9, 2012.</P>
              <HD SOURCE="HD1">(b) Affected ADs</HD>
              <P>None.</P>
              <HD SOURCE="HD1">(c) Applicability</HD>
              <P>This AD applies to the airplanes identified in paragraphs (c)(1), (c)(2), and (c)(3) of this AD; certificated in any category; all certificated models; all serial numbers.</P>
              <P>(1) Airbus Model A300 B2-1C, B2K-3C, B2-203, B4-2C, B4-103, and B4-203 airplanes.</P>
              <P>(2) Airbus Model A310-203, -204, -221, -222, -304, -322, -324, and -325 airplanes.</P>
              <P>(3) Airbus Model A300 B4-603, B4-620, and B4-622 airplanes, Model A300 B4-605R and B4-622R airplanes, Model A300 F4-605R and F4-622R airplanes, and Model A300 C4-605R Variant F airplanes.</P>
              <HD SOURCE="HD1">(d) Subject</HD>
              <P>Air Transport Association (ATA) of America Code 28: Fuel.</P>
              <HD SOURCE="HD1">(e) Reason</HD>
              <P>This AD was prompted by reports of cracked fuel pump canister hoods located in fuel tanks. We are issuing this AD to prevent any detached canister hood fragments/debris from being ingested into the fuel feed system, and the metallic debris inside the fuel tank resulting in a potential source of ignition and consequent fire or explosion.</P>
              <HD SOURCE="HD1">(f) Compliance</HD>
              <P>You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done.</P>
              <HD SOURCE="HD1">(g) Initial Inspection and Replacement</HD>
              <P>Within 30 months after the effective date of this AD, do a detailed inspection for cracking of the fuel pump canister hood halves installed on all fuel pump canisters having part numbers (P/N) 2052C11, 2052C12, and C93R51-601, in accordance with the Accomplishment Instructions of the service bulletin specified in paragraphs (g)(1), (g)(2), and (g)(3) of this AD, as applicable. If any crack is found on any fuel pump canister hood half during any inspection, before further flight, replace the fuel pump canister hood half, in accordance with the Accomplishment Instructions of the service bulletin specified in paragraph (g)(1), (g)(2), or (g)(3) of this AD, as applicable.</P>
              <P>(1) For Model A300 airplanes: Airbus Mandatory Service Bulletin A300-28-0089, including Inspection Findings—Reporting Sheet, Revision 01, dated April 15, 2011.</P>
              <P>(2) For Model A300-600 airplanes: Airbus Mandatory Service Bulletin A300-28-6106, including Inspection Findings—Reporting Sheet, Revision 01, dated April 15, 2011.</P>
              <P>(3) For Model A310 airplanes: Airbus Mandatory Service Bulletin A310-28-2173, including Inspection Findings—Reporting Sheet, Revision 01, dated April 15, 2011.</P>
              <HD SOURCE="HD1">(h) Repetitive Inspections</HD>
              <P>Within 30 months after accomplishing the actions specified in paragraph (g) of this AD, and thereafter at intervals not to exceed 30 months, repeat the detailed inspection specified in paragraph (g) of this AD.</P>
              <HD SOURCE="HD1">(i) Credit for Actions Accomplished in Accordance With Previous Service Information</HD>
              <P>Actions accomplished before the effective date of this AD in accordance with Airbus Mandatory Service Bulletins A300-28-0089, A300-28-6106, and A310-28-2173, all dated January 13, 2011, as applicable, are considered acceptable for compliance with the corresponding action specified in this AD.</P>
              <HD SOURCE="HD1">(j) Reporting to Airbus</HD>
              <P>Submit reports of the findings (both positive and negative) of the inspections required by paragraphs (g) and (h) of this AD to Airbus at the applicable time specified in paragraph (j)(1) or (j)(2) of this AD, using the form “Inspection Findings—Reporting Sheet” provided in the service bulletin identified in paragraphs (g)(1), (g)(2), and (g)(3) of this AD, as applicable.</P>
              <P>(1) If the inspection was done on or after the effective date of this AD: Submit the report within 30 days after the inspection.</P>
              <P>(2) If the inspection was done before the effective date of this AD: Submit the report within 30 days after the effective date of this AD.</P>
              <HD SOURCE="HD1">(k) Other FAA AD Provisions</HD>
              <P>The following provisions also apply to this AD:</P>
              <P>(1)<E T="03">Alternative Methods of Compliance (AMOCs):</E>The Manager, International Branch, ANM-116, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the International Branch, send it to ATTN: Dan Rodina, Aerospace Engineer, International Branch, ANM-116, Transport Airplane Directorate, FAA, 1601 Lind<PRTPAGE P="10411"/>Avenue SW., Renton, Washington 98057-3356; telephone (425) 227-2125; fax (425) 227-1149. Information may be emailed to:<E T="03">9-ANM-116-AMOC-REQUESTS@faa.gov.</E>Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office. The AMOC approval letter must specifically reference this AD.</P>
              <P>(2)<E T="03">Airworthy Product:</E>For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.</P>
              <P>(3)<E T="03">Reporting Requirements:</E>A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB Control Number. The OMB Control Number for this information collection is 2120-0056. Public reporting for this collection of information is estimated to be approximately 5 minutes per response, including the time for reviewing instructions, completing and reviewing the collection of information. All responses to this collection of information are mandatory. Comments concerning the accuracy of this burden and suggestions for reducing the burden should be directed to the FAA at: 800 Independence Ave. SW., Washington, DC 20591, Attn: Information Collection Clearance Officer, AES-200.</P>
              <HD SOURCE="HD1">(l) Related Information</HD>
              <P>Refer to MCAI European Aviation Safety Agency (EASA) Airworthiness Directive 2011-0124, dated June 30, 2011; and the Airbus mandatory service bulletins identified in paragraphs (g)(1), (g)(2), and (g)(3) of this AD; for related information.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in Renton, Washington, on February 7, 2012.</DATED>
            <NAME>Ali Bahrami,</NAME>
            <TITLE>Manager, Transport Airplane Directorate, Aircraft Certification Service.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4163 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2012-0149; Directorate Identifier 2011-NM-255-AD]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; The Boeing Company Airplanes</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking (NPRM).</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We propose to adopt a new airworthiness directive (AD) for certain The Boeing Company Model 777-200 and -300 series airplanes. This proposed AD was prompted by reports of fatigue cracks in the lap joints, which initiated at scribe lines that were made during production when maskant was removed from the affected skin panels. This proposed AD would require repetitive external phased-array ultrasonic inspections to detect cracks of the affected fuselage skin lap splices in Sections 41, 43, and 44, as applicable, and repair if necessary. We are proposing this AD to detect and correct such fatigue cracking, which, if not detected and corrected, could grow large and cause sudden decompression and the inability to sustain limit flight and pressure loads.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We must receive comments on this proposed AD by April 9, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov.</E>Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>202-493-2251.</P>
          <P>•<E T="03">Mail:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
          <P>•<E T="03">Hand Delivery:</E>Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>

          <P>For service information identified in this proposed AD, contact Boeing Commercial Airplanes, Attention: Data &amp; Services Management, P.O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-544-5000, extension 1; fax 206-766-5680; email<E T="03">me.boecom@boeing.com;</E>Internet<E T="03">https://www.myboeingfleet.com.</E>You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (phone: 800-647-5527) is in the<E T="02">ADDRESSES</E>section. Comments will be available in the AD docket shortly after receipt.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>James Sutherland, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-917-6533; fax: 425-917-6590; email:<E T="03">James.Sutherland@faa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Comments Invited</HD>

        <P>We invite you to send any written relevant data, views, or arguments about this proposal. Send your comments to an address listed under the<E T="02">ADDRESSES</E>section. Include “Docket No. FAA-2012-0149; Directorate Identifier 2011-NM-255-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments.</P>
        <P>We will post all comments we receive, without change, to<E T="03">http://www.regulations.gov,</E>including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD.</P>
        <HD SOURCE="HD1">Discussion</HD>
        <P>We received a report indicating that, on the affected airplanes, scribe lines may have been inadvertently made in the overlapped skin in lap joints if a sharp tool was used to remove the maskant from the aluminum skin panels during assembly of the affected lap joints. During fatigue testing of Model 777 airplanes, lap joint cracks were found, and analysis indicated that those cracks initiated at scribe lines that were made during production when maskant was removed from the affected skin panels. Such fatigue cracking, if not detected and corrected, could grow large and cause sudden decompression and the inability to sustain limit flight and pressure loads.</P>
        <HD SOURCE="HD1">Relevant Service Information</HD>

        <P>We reviewed Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011. For information on the procedures and compliance times, see this service information at<E T="03">http://www.regulations.gov</E>by searching for Docket No. FAA-2012-0149.<PRTPAGE P="10412"/>
        </P>
        <HD SOURCE="HD1">FAA's Determination</HD>
        <P>We are proposing this AD because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design.</P>
        <HD SOURCE="HD1">Proposed AD Requirements</HD>
        <P>This proposed AD would require repetitive external phased-array ultrasonic inspections to detect cracks of the affected fuselage skin lap splices in Sections 41, 43, and 44, as applicable, and repair if necessary.</P>
        <HD SOURCE="HD1">Difference Between the Proposed AD and the Service Information</HD>
        <P>Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011, specifies that one way to install a repair is to use “other approved methods.” However, this proposed AD requires that the repair be done using a method approved in accordance with the procedures specified in paragraph (i) of this proposed AD.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>We estimate that this proposed AD affects 46 airplanes of U.S. registry.</P>
        <P>We estimate the following costs to comply with this proposed AD:</P>
        <GPOTABLE CDEF="s50,r50,10,r50,xs100" COLS="5" OPTS="L2,i1">
          <TTITLE>Estimated Costs</TTITLE>
          <BOXHD>
            <CHED H="1">Action</CHED>
            <CHED H="1">Labor cost</CHED>
            <CHED H="1">Parts cost</CHED>
            <CHED H="1">Cost per product</CHED>
            <CHED H="1">Cost on U.S. operators</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Inspections for Group 1 airplanes (25 airplanes)</ENT>
            <ENT>126 work-hours × $85 per hour = $10,710 per inspection cycle</ENT>
            <ENT>$0</ENT>
            <ENT>$10,710 per inspection cycle</ENT>
            <ENT>$267,750 per inspection cycle.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Inspections for Group 2 airplanes (21 airplanes)</ENT>
            <ENT>50 work-hours × $85 per hour = $4,250 per inspection cycle</ENT>
            <ENT>0</ENT>
            <ENT>$4,250 per inspection cycle</ENT>
            <ENT>$89,250 per inspection cycle.</ENT>
          </ROW>
        </GPOTABLE>
        <P>We have received no definitive data that would enable us to provide cost estimates for the on-condition repair.</P>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs, describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify this proposed regulation:</P>
        <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
        <P>(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),</P>
        <P>(3) Will not affect intrastate aviation in Alaska, and</P>
        <P>(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          <P>1. The authority citation for part 39 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The FAA amends § 39.13 by adding the following new airworthiness directive (AD):</P>
            
            <EXTRACT>
              <FP SOURCE="FP-2">
                <E T="04">The Boeing Company:</E>Docket No. FAA-2012-0149; Directorate Identifier 2011-NM-255-AD.</FP>
              <HD SOURCE="HD1">(a) Comments Due Date</HD>
              <P>We must receive comments by April 9, 2012.</P>
              <HD SOURCE="HD1">(b) Affected ADs</HD>
              <P>None.</P>
              <HD SOURCE="HD1">(c) Applicability</HD>
              <P>This AD applies to The Boeing Company Model 777-200 and -300 series airplanes, certificated in any category, as identified in Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011.</P>
              <HD SOURCE="HD1">(d) Subject</HD>
              <P>Joint Aircraft System Component (JASC)/Air Transport Association (ATA) of America Code 53, Fuselage.</P>
              <HD SOURCE="HD1">(e) Unsafe Condition</HD>
              <P>This AD was prompted by reports of fatigue cracks in the lap joints, which initiated at scribe lines that were made during production when maskant was removed from the affected skin panels. We are issuing this AD to detect and correct such fatigue cracking, which, if not detected and corrected, could grow large and cause sudden decompression and the inability to sustain limit flight and pressure loads.</P>
              <HD SOURCE="HD1">(f) Compliance</HD>
              <P>Comply with this AD within the compliance times specified, unless already done.</P>
              <HD SOURCE="HD1">(g) Inspections and Repair</HD>

              <P>Except as provided by paragraph (h)(1) of this AD, at the applicable time identified in paragraph 1.E., “Compliance,” of Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011: Do external phased-array ultrasonic inspections to detect cracks of the affected fuselage skin lap splices in Sections 41, 43, and 44, as applicable, in accordance with the Accomplishment Instructions of Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011. If any crack is found, before further flight, repair in accordance with Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011; except as required by paragraph (h)(2) of this AD. Repeat the inspections of unrepaired areas thereafter at intervals not to exceed 4,200 flight cycles.<PRTPAGE P="10413"/>
              </P>
              <HD SOURCE="HD1">(h) Exception to Service Information</HD>
              <P>(1) Where Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011, specifies a compliance time “after the original issue date on this service bulletin,” this AD requires compliance within the specified compliance time after the effective date of this AD.</P>
              <P>(2) Where Boeing Alert Service Bulletin 777-53A0043, dated November 9, 2011, specifies that “other approved methods” can be used to install a repair, this AD requires that the repair be done using a method approved in accordance with the procedures specified in paragraph (i) of this AD.</P>
              <HD SOURCE="HD1">(i) Alternative Methods of Compliance (AMOCs)</HD>

              <P>(1) The Manager, Seattle Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the ACO, send it to the attention of the person identified in the Related Information section of this AD. Information may be emailed to:<E T="03">9-ANM-Seattle-ACO-AMOC-Requests@faa.gov</E>.</P>
              <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
              <P>(3) An AMOC that provides an acceptable level of safety may be used for any repair required by this AD if it is approved by the Boeing Commercial Airplanes Organization Designation Authorization (ODA) that has been authorized by the Manager, Seattle ACO, to make those findings. For a repair method to be approved, the repair must meet the certification basis of the airplane, and the approval must specifically refer to this AD.</P>
              <HD SOURCE="HD1">(j) Related Information</HD>

              <P>(1) For more information about this AD, contact James Sutherland, Aerospace Engineer, Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue SW., Renton, Washington 98057-3356; phone: 425-917-6533; fax: 425-917-6590; email:<E T="03">James.Sutherland@faa.gov</E>.</P>

              <P>(2) For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data &amp; Services Management, P. O. Box 3707, MC 2H-65, Seattle, Washington 98124-2207; telephone 206-544-5000, extension 1; fax 206-766-5680; email<E T="03">me.boecom@boeing.com;</E>Internet<E T="03">https://www.myboeingfleet.com</E>. You may also review the referenced service information in the docket at<E T="03">www.regulations.gov</E>(refer to Docket No. FAA-2012-0149). You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in Renton, Washington, on February 10, 2012.</DATED>
            <NAME>Ali Bahrami,</NAME>
            <TITLE>Manager, Transport Airplane Directorate, Aircraft Certification Service.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4002 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2012-0146; Directorate Identifier 2011-NM-115-AD]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; Bombardier, Inc. Airplanes</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking (NPRM).</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We propose to adopt a new airworthiness directive (AD) for certain Bombardier, Inc. Model CL-600-2B16 (CL-601-3A, CL-601-3R, and CL-604 Variants) airplanes. This proposed AD was prompted by reports of deformation at the neck of the pressure regulator body on the oxygen cylinder and regulator assemblies (CRAs), and an electrical wiring harness in the area of the oxygen cylinder had no protective conduit sleeving. This proposed AD would require inspecting to determine if certain oxygen pressure regulators are installed and replacing oxygen CRAs containing pressure regulators that do not meet the required material properties. This proposed AD would also require inspecting for damaged wiring and repairing or replacing wiring if necessary. We are proposing this AD to prevent rupture of the oxygen cylinder, which in the case of cabin depressurization, oxygen would not be available when required; and to detect and correct unprotected wiring that could chafe against the oxygen system components or surrounding structure in the area, which could lead to electrical arcing and an oxygen-fed fire.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>We must receive comments on this proposed AD by April 9, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may send comments by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov</E>. Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>(202) 493-2251.</P>
          <P>•<E T="03">Mail:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
          <P>•<E T="03">Hand Delivery:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>

          <P>For service information identified in this proposed AD, contact Bombardier, Inc., 400 Côte-Vertu Road West, Dorval, Québec H4S 1Y9, Canada; telephone 514-855-5000; fax 514-855-7401; email<E T="03">thd.crj@aero.bombardier.com</E>; Internet<E T="03">http://www.bombardier.com</E>. You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425-227-1221.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone (800) 647-5527) is in the<E T="02">ADDRESSES</E>section. Comments will be available in the AD docket shortly after receipt.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Cesar Gomez, Aerospace Engineer, Airframe and Mechanical Systems Branch, ANE-171, FAA, New York Aircraft Certification Office (ACO), 1600 Stewart Avenue, Suite 410, Westbury, New York 11590; telephone (516) 228-7318; fax (516) 794-5531.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Comments Invited</HD>

        <P>We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the<E T="02">ADDRESSES</E>section. Include “Docket No. FAA-2012-0146; Directorate Identifier 2011-NM-115-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD based on those comments.</P>
        <P>We will post all comments we receive, without change, to<E T="03">http://www.regulations.gov,</E>including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD.<PRTPAGE P="10414"/>
        </P>
        <HD SOURCE="HD1">Discussion</HD>
        <P>Transport Canada Civil Aviation (TCCA), has issued Canadian Airworthiness Directive CF-2011-11, dated May 25, 2011 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states:</P>
        
        <EXTRACT>
          <P>During a routine inspection, deformation was found at the neck of the pressure regulator body on the oxygen Cylinder and Regulator Assemblies (CRA) of a BD-700-1A11 aeroplane.</P>
          <P>An investigation by the vendor, Avox Systems Inc., revealed that the deformation was attributed to two (2) batches of raw material that did not meet the required tensile strength. This may cause elongation of the pressure regulator neck, which could result in rupture of the oxygen cylinder, and in the case of cabin depressurization, oxygen would not be available when required.</P>
          <P>Although there have been no reported failures to date on any CL-600-2B16 aeroplanes, oxygen pressure regulators, Part Numbers (P/N) 806370-12, could be part of the affected batches.</P>
          <P>It has also been found that the electrical wiring harness in the area of the oxygen cylinder has been installed without protection. Unprotected wiring could chafe against the oxygen system components or surrounding structure in the area, which could lead to electrical arcing and an oxygen fed fire.</P>
          <P>This [TCCA] directive mandates [an inspection to determine if a certain oxygen CRA is installed and] the replacement of oxygen CRAs containing pressure regulators that do not meet the required material properties and to [do a general visual inspection of] and protect the affected wiring.</P>
        </EXTRACT>
        
        <FP>Corrective actions include repairing or replacing any damaged wiring. You may obtain further information by examining the MCAI in the AD docket.</FP>
        <HD SOURCE="HD1">Relevant Service Information</HD>
        <P>Bombardier, Inc. has issued Service Bulletin 605-24-005, dated January 31, 2011; and Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI.</P>
        <HD SOURCE="HD1">FAA's Determination and Requirements of This Proposed AD</HD>
        <P>This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with the State of Design Authority, we have been notified of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all pertinent information and determined an unsafe condition exists and is likely to exist or develop on other products of the same type design.</P>
        <HD SOURCE="HD1">Differences Between This Proposed AD and the MCAI or Service Information</HD>
        <P>This proposed AD differs from the MCAI and/or service information as follows: The MCAI and service information do not specify corrective actions if damaged wiring is found; this proposed AD requires repairing or replacing any damaged wiring. This proposed AD also includes serial numbers (S/N) 5824 and subsequent in the applicability. Those airplanes are included in paragraph (j) of the proposed AD, which prohibits the installation of certain regulators.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>Based on the service information, we estimate that this proposed AD would affect about 72 products of U.S. registry. We also estimate that it would take about 1 work-hour per product to comply with the basic requirements of this proposed AD. The average labor rate is $85 per work-hour. Based on these figures, we estimate the cost of the proposed AD on U.S. operators to be $6,120, or $85 per product.</P>
        <P>In addition, we estimate that certain follow-on actions (wiring protection) would take about 2 work-hours and require parts costing $0, for a cost of $170 per product. We have no way of determining the number of products that may need these actions.</P>
        <P>We have received no definitive data that would enable us to provide cost estimates for certain other on-condition actions (repairing or replacing damaged wiring) specified in this proposed AD.</P>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify this proposed regulation:</P>
        <P>1. Is not a “significant regulatory action” under Executive Order 12866;</P>
        <P>2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and</P>
        <P>3. Will not affect intrastate aviation in Alaska; and</P>
        <P>4. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <P>We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          <P>1. The authority citation for part 39 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The FAA amends § 39.13 by adding the following new AD:</P>
            
            <EXTRACT>
              <FP SOURCE="FP-2">
                <E T="04">Bombardier, Inc.:</E>Docket No. FAA-2012-0146; Directorate Identifier 2011-NM-115-AD.</FP>
              <HD SOURCE="HD1">(a) Comments Due Date</HD>
              <P>We must receive comments by April 9, 2012.</P>
              <HD SOURCE="HD1">(b) Affected ADs</HD>
              <P>None.</P>
              <HD SOURCE="HD1">(c) Applicability</HD>

              <P>This AD applies to Bombardier, Inc. Model CL-600-2B16 (CL-601-3A, CL-601-3R, &amp; CL-604 Variants) airplanes; certificated in any category; serial numbers 5701 through 5802 inclusive, 5804 through 5808 inclusive, 5810 through 5816 inclusive, 5819, 5822, 5823 and subsequent.<PRTPAGE P="10415"/>
              </P>
              <HD SOURCE="HD1">(d) Subject</HD>
              <P>Air Transport Association (ATA) of America Codes 24: Electrical power; and 35: Oxygen.</P>
              <HD SOURCE="HD1">(e) Reason</HD>
              <P>This AD was prompted by reports of deformation at the neck of the pressure regulator body on the oxygen cylinder and regulator assemblies (CRAs), and an electrical wiring harness in the area of the oxygen cylinder had no protective conduit sleeving. We are issuing this AD to prevent rupture of the oxygen cylinder, which in the case of cabin depressurization, oxygen would not be available when required; and to detect and correct unprotected wiring that could chafe against the oxygen system components or surrounding structure in the area, which could lead to electrical arcing and an oxygen-fed fire.</P>
              <HD SOURCE="HD1">(f) Compliance</HD>
              <P>You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done.</P>
              <HD SOURCE="HD1">(g) Inspect and Replace the Oxygen CRA</HD>
              <P>For airplanes with serial numbers 5701 through 5802 inclusive, 5804 through 5808 inclusive, 5810 through 5816 inclusive, 5819, 5822, and 5823: Within 750 flight hours after the effective date of this AD, but no later than 6 months after the effective date of this AD, inspect the serial number of oxygen pressure regulators having part number (P/N) 806370-12, in accordance with the Accomplishment Instructions, Section 2.B.(3), of Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011. A review of airplane maintenance records is acceptable in lieu of this inspection if the part number of the oxygen pressure regulator can be conclusively determined from that review.</P>
              <P>(1) If any serial number is found that is listed in table 2 of Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011, before further flight, replace the affected oxygen CRA in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011.</P>
              <P>(2) If any serial number is found that is not listed in table 2 of Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011, no further action is required by this paragraph.</P>
              <HD SOURCE="HD1">(h) Inspection and Corrective Action of the Oxygen CRA Wiring Harness</HD>
              <P>For airplanes with serial numbers 5701 through 5778 inclusive, 5780 through 5796 inclusive, 5798, 5800 through 5802 inclusive, 5804, 5805, 5808, 5811, and 5813: At the compliance times specified in paragraphs (h)(1) and (h)(2) of this AD, do a detailed inspection for damaged wiring (i.e., signs of damaged insulation, abrasion, or chafing) of the electrical wiring harness for the oxygen CRA, and protect the electrical wiring harness, in accordance with the Accomplishment Instructions of Bombardier Service Bulletin 605-24-005, dated January 31, 2011. If any damaged wiring is found, before further flight, repair or replace any damaged wiring in accordance with a method approved by the Manager, New York Aircraft Certification Office (ACO), FAA; or Transport Canada Civil Aviation (TCCA) (or its delegated agent).</P>
              <P>(1) For airplanes on which the oxygen CRA must be replaced as required by paragraph (g)(1) of this AD: At the time the oxygen CRA is replaced.</P>
              <P>(2) For airplanes other than those identified in paragraph (h)(1) of this AD: Within 800 flight hours after the effective date of this AD.</P>
              <HD SOURCE="HD1">(i) Credit for Actions Accomplished in Accordance With Previous Service Information</HD>
              <P>Actions accomplished before the effective date of this AD accordance with Bombardier Service Bulletin 605-35-001, dated January 31, 2011, are considered acceptable for compliance with the corresponding actions specified in this AD.</P>
              <HD SOURCE="HD1">(j) Parts Installation</HD>
              <P>For all airplanes: As of the effective date of this AD, no person may install an oxygen pressure regulator (P/N 806370-12) having any serial number listed in table 2 of Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011, on any airplane, unless a suffix “-A” is beside the serial number.</P>
              <HD SOURCE="HD1">(k) Other FAA AD Provisions</HD>
              <P>The following provisions also apply to this AD:</P>
              <P>(1)<E T="03">Alternative Methods of Compliance (AMOCs):</E>The Manager, New York Aircraft Certification Office, ANE-170, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the ACO, send it to ATTN: Program Manager, Continuing Operational Safety, FAA, New York ACO, 1600 Stewart Avenue, Suite 410, Westbury, New York 11590; telephone 516-228-7300; fax: 516-794-5531. Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office. The AMOC approval letter must specifically reference this AD.</P>
              <P>(2)<E T="03">Airworthy Product:</E>For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.</P>
              <HD SOURCE="HD1">(l) Related Information</HD>
              <P>Refer to MCAI Canadian Airworthiness Directive CF-2011-11, dated May 25, 2011, and the service bulletins identified in paragraphs (l)(1) and (l)(2) of this AD, for related information.</P>
              <P>(1) Bombardier Service Bulletin 605-24-005, dated January 31, 2011.</P>
              <P>(2) Bombardier Service Bulletin 605-35-001, Revision 01, dated February 28, 2011.</P>
            </EXTRACT>
            
          </SECTION>
          <SIG>
            <DATED>Issued in Renton, Washington, on February 7, 2012.</DATED>
            <NAME>Ali Bahrami,</NAME>
            <TITLE>Manager, Transport Airplane Directorate, Aircraft Certification Service.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4160 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
        <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
        <CFR>18 CFR Part 284</CFR>
        <DEPDOC>[Docket No. RM96-1-037]</DEPDOC>
        <SUBJECT>Standards for Business Practices for Interstate Natural Gas Pipelines</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Energy Regulatory Commission, DOE.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Federal Energy Regulatory Commission (Commission) is proposing to amend its regulations at 18 CFR 284.12 to incorporate by reference the latest version (Version 2.0) of business practice standards adopted by the Wholesale Gas Quadrant of the North American Energy Standards Board (NAESB) applicable to natural gas pipelines.<SU>1</SU>

            <FTREF/>The Commission also proposes to provide guidance on the standards the Commission applies to requests for waivers or extensions of time to comply with NAESB Standards. These standards can be obtained from NAESB at 1301 Fannin, Suite 2350, Houston, TX 77002, telephone: (713) 356-0060,<E T="03">http://www.naesb.org,</E>and are available for viewing in the Commission's Public Reference Room.</P>
          <FTNT>
            <P>
              <SU>1</SU>The Commission's proposal includes incorporation of the minor corrections and errata to the Version 2.0 Standards made by NAESB and reported to the Commission on June 28, 2011, October 11, 2011 and December 22, 2011.</P>
          </FTNT>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments are due March 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Comments, identified by docket number, may be filed in the following ways:</P>
          <P>•<E T="03">Electronic Filing through http://www.ferc.gov.</E>Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format.</P>
          <P>•<E T="03">Mail/Hand Delivery:</E>Those unable to file electronically may mail or hand-deliver comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street NE., Washington, DC 20426.</P>
        </ADD>
        <FURINF>
          <PRTPAGE P="10416"/>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P/>
          
          <FP SOURCE="FP-1">Adam Bednarczyk (technical issues), Office of Energy Market Regulation, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-6444.</FP>
          <FP SOURCE="FP-1">Tony Dobbins (technical issues), Office of Energy Policy and Innovation, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-6630.</FP>
          <FP SOURCE="FP-1">Gary D. Cohen (legal issues), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-8321.</FP>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">138 FERC ¶ 61,124</HD>
        <DATE>February 16, 2012.</DATE>
        
        <P>1. The Federal Energy Regulatory Commission (Commission) proposes to amend its regulations at 18 CFR 284.12 to incorporate by reference the latest version (Version 2.0) of business practice standards adopted by the Wholesale Gas Quadrant (WGQ) of the North American Energy Standards Board (NAESB) applicable to natural gas pipelines. The Commission also proposes to provide guidance on the standards the Commission applies to requests for waivers or extensions of time to comply with NAESB Standards. The Commission's proposal includes incorporation of the minor corrections and errata made by NAESB and reported to the Commission on June 28, 2011, October 11, 2011, and December 22, 2011.</P>
        <HD SOURCE="HD1">I. Background</HD>
        <P>2. Since 1996, the Commission has adopted regulations to standardize the business practices and communication methodologies of interstate natural gas pipelines to create a more integrated and efficient pipeline grid. These regulations have been promulgated in the Order No. 587 series of orders,<SU>2</SU>
          <FTREF/>wherein the Commission has incorporated by reference standards for interstate natural gas pipeline business practices and electronic communications that were developed and adopted by NAESB's WGQ. Upon incorporation by reference, this version of these standards will become part of the Commission's regulations and compliance by interstate natural gas pipelines will become mandatory.</P>
        <FTNT>
          <P>

            <SU>2</SU>This series of orders began with the Commission's issuance of<E T="03">Standards for Business Practices of Interstate Natural Gas Pipelines,</E>Order No. 587, FERC Stats. &amp; Regs. ¶ 31,038 (1996).</P>
        </FTNT>
        <P>3. On March 4, 2011, NAESB filed a report informing the Commission that it had adopted and ratified Version 2.0 of its business practice standards applicable to natural gas pipelines. The Version 2.0 Standards revised the Version 1.9 Standards to include: (1) Standards to support gas-electric interdependency; (2) standards created for Capacity Release redesign due to the elimination of Electronic Data Interchange (EDI) for Capacity Release Upload information; (3) standards to support the Electronic Delivery Mechanism (EDM); (4) standards to support the Customer Security Administration (CSA) Process; (5) standards for pipeline postings of information regarding waste heat; and (6) minor technical maintenance revisions designed to more efficiently process wholesale natural gas transactions.</P>
        <P>4. On June 28, 2011, NAESB filed a report informing the Commission that it had made modifications to the NAESB WGQ Version 1.9 and 2.0 Standards to correct various minor errors. The errata corrections make minor revisions to the NAESB WGQ Standards and Data Elements including revisions to the: (1) Datasets for Additional Standards; (2) Nomination Related Datasets; (3) Flowing Gas Related Standards; (4) Invoicing Related Datasets; (5) EDM Related Standards; and (6) Capacity Release Related Standards and Datasets.</P>
        <P>5. Further, on October 11, 2011, NAESB filed a report informing the Commission that it had made additional modifications to the NAESB WGQ Version 2.0 Standards to correct various minor errors in the Nominations Related and Capacity Release Related Datasets.</P>
        <P>6. Finally, on December 22, 2011, NAESB filed a report informing the Commission that it had made additional modifications to the NAESB WGQ Version 1.9 and 2.0 Standards to correct various minor errors. The errata corrections make minor revisions to the NAESB WGQ Standards and Datasets including revisions to the: (1) Nominations Related Datasets; (2) Capacity Release Related Datasets; and (3) Quadrant Electronic Delivery Mechanism Related Standards.</P>
        <HD SOURCE="HD1">II. Significant Changes and Additions Contained in the Version 2.0 Standards</HD>
        <HD SOURCE="HD2">A. Gas-Electric Communications</HD>
        <P>7. In Order Nos. 698 and 698-A,<SU>3</SU>
          <FTREF/>the Commission incorporated by reference the NAESB Wholesale Electric Quadrant (WEQ) and WGQ Gas/Electric Coordination Standards. These standards were adopted to ensure that pipelines have relevant planning information to assist in maintaining the operational integrity and reliability of pipeline service, as well as to provide gas-fired power plant operators with information as to whether hourly flow deviations can be honored. The standards also required electric transmission operators and power plant operators to sign up to receive operational flow order notices from connecting pipelines as well as other critical notices. These standards ensured that operators of the electric grid could stay abreast of developments involving natural gas pipelines that can affect the reliability of electric service. The standards required that, upon request, a gas-fired power plant operator must provide to the appropriate independent electric balancing authority or electric reliability coordinator pertinent information regarding its service levels for gas transportation (firm or interruptible) and for gas supply (firm, fixed or variable quantity, or interruptible).<SU>4</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>3</SU>
            <E T="03">Standards for Business Practices for Interstate Natural Gas Pipelines; Standards for Business Practices for Public Utilities,</E>Order No. 698, FERC Stats. &amp; Regs. ¶ 31,251,<E T="03">order on clarification and reh'g,</E>Order No. 698-A, 121 FERC ¶ 61,264 (2007).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>4</SU>Order No. 698, FERC Stats. &amp; Regs. ¶ 31,251 at P 12-13.</P>
        </FTNT>
        <P>8. In the NAESB WGQ Version 2.0 Standards, NAESB modified and developed additional standards to further enhance that coordination. NAESB made modifications to its WGQ Standards 4.3.28, 4.3.29, and 5.3.38 and developed new Standards 5.3.70 and 5.3.71 to enhance the clarity of the content and format of critical, non-critical, and planned service outage notices issued by pipelines. These modifications were made to allow Transportation Service Providers the flexibility to communicate additional clarity beyond the currently defined notice types through the addition of 15 new notice types. The expansion from the current 12 notice types to 27 notice types increases the ability of pipelines to detail the subject matter of the notices.<SU>5</SU>

          <FTREF/>The expansion also allows the notices to be easily identified and sorted, thereby promoting easier prioritization and organization of these<PRTPAGE P="10417"/>communications. Some of the notices that may be of particular relevance to coordination between the gas and electric industries are: Operational alerts; over-under performance; pipeline conditions; planned service outages; storage and weather alerts.</P>
        <FTNT>
          <P>
            <SU>5</SU>The new Version 2.0 Notice Types subjects are: Computer System Status; Customer Services Update; Gas Quality; Imbalance Trading; Location Change; Operational Alert; Over-Under Performance; Pipeline Conditions; Planned Service Outages; Storage; Weather Alert; Capacity Release; Cash Out (cash liquidation of transportation imbalances); PTR (Plant Thermal Reduction) Percentage (this is the amount a nomination is to be reduced due to natural gas processing); and Scheduling Alert (information regarding scheduled gas quantities and potential revisions and/or adjustments).</P>
        </FTNT>
        <P>9. NAESB modified the existing gas-electric coordination WGQ Standards 0.2.1 through 0.2.3, 0.3.11 through 0.3.15; and created a new Standard 0.2.4 to further define the roles and responsibilities of each participant under the Gas/Electric Operational Communication Standards promulgated in Order No. 698. Specifically, NAESB modified the WGQ Standards in order to define the terms Reliability Coordinator and Power Plant Gas Coordinator to replace existing terminology of Regional Transmission Organizations, Independent System Operators, any other appropriate independent transmission operators, and Power Plant Operators respectively. NAESB modified WGQ Standard 0.3.14 to change the parties to whom pipelines are required to provide notification of operational flow orders and other critical notices. Pipelines are now required to provide Balancing Authorities and/or Reliability Coordinators, and Power Plant Gas Coordinators such information.</P>
        <HD SOURCE="HD2">B. Capacity Release Upload Transactions</HD>
        <P>10. In the NAESB WGQ Version 2.0 Standards, NAESB sought to modify electronic capacity release transaction standards to reflect NAESB's elimination of the largely unused EDI requirements for Capacity Release Upload information. NAESB added two standards related to notices provided by Transmission Service Providers and one standard related to error messages. The NAESB WGQ Version 2.0 Standards also add four new capacity release standard datasets to replace fourteen Version 1.9 Datasets that NAESB deleted in an effort to restructure and simplify capacity release transactional information.</P>
        <HD SOURCE="HD2">C. Electronic Delivery Mechanism (EDM)</HD>
        <P>11. In the NAESB WGQ Version 2.0 Standards, NAESB adopted several standards to ensure the consistency of Transportation Service Provider Web site data labels as well as the ability to provide Informational Postings report downloads in a comma-separated-value (CSV) file format. These changes were undertaken to ensure that NAESB's technical standards remain consistent with current technical practices.</P>
        <HD SOURCE="HD2">D. Customer Security Administration</HD>
        <P>12. In the NAESB WGQ Version 2.0 Standards, NAESB adopted Standard 4.3.100 to support the CSA processes. This new standard establishes a timeline for a Transportation Service Provider to respond to a request from a service requester for information, such as user name and security privileges, regarding those parties permitted to access the Transportation Service Provider's “Customer Activities” Web site on the service requester's behalf. The new standard also establishes the number of representatives a service requester can authorize to receive such information and details the related user management responsibilities of the service requester.</P>
        <HD SOURCE="HD2">E. Waste Heat Recovery Feasibility</HD>
        <P>13. NAESB sought to facilitate the Commission's FY 2009-2014 Strategic Plan<SU>6</SU>
          <FTREF/>objective of evaluating the feasibility of installing waste heat recovery systems as a way to promote the efficient design and operation of jurisdictional natural gas facilities. NAESB WGQ Version 2.0 Standard 4.3.23 specifies the location where information regarding the feasibility of waste heat recovery is to be posted on the Informational Postings sections of pipelines' Web sites.</P>
        <FTNT>
          <P>

            <SU>6</SU>Federal Energy Regulatory Commission, Strategic Plan, FY 2009-2014 at 25.<E T="03">http://www.ferc.gov/about/strat-docs/FY-09-14-strat-plan-print.pdf.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD2">F. Operationally Available and Unsubscribed Capacity</HD>
        <P>14. In the NAESB WGQ Version 2.0 Standards, NAESB added several new Standards, 0.3.18 through 0.3.22, and replaced an existing Dataset 5.4.13 with new Datasets 0.4.2 and 0.4.3, to further specify the information on operationally available and unsubscribed capacity that pipelines disseminate. NAESB indicates that these standards are intended to specify the Business Practice Standards and Dataset requirements for reporting operationally available and unsubscribed capacity. NAESB included these new Business Practice Standards in a new section entitled “Operating Capacity and Unsubscribed” in its Business Practice Standards for Additional Standards.</P>
        <HD SOURCE="HD2">G. Clean Up and Miscellaneous Revisions</HD>
        <P>15. In the NAESB WGQ Version 2.0 Standards, NAESB also continued the process of making minor clarifications and corrections to existing standards including: (1) Revising the formatting, appearance, or descriptions; (2) clarifying or correcting code values to tables; and (3) making minor non-substantive changes.</P>
        <HD SOURCE="HD1">III. Discussion</HD>
        <HD SOURCE="HD2">A. Proposed Action</HD>
        <P>16. In this NOPR, the Commission proposes to incorporate by reference in its regulations Version 2.0 of the NAESB WGQ's consensus business practice standards,<SU>7</SU>
          <FTREF/>with certain exceptions.<SU>8</SU>
          <FTREF/>Adoption of the Version 2.0 Standards will continue the process of updating and improving NAESB's business practice standards for the benefit of the wholesale gas market.</P>
        <FTNT>
          <P>
            <SU>7</SU>In its Version 2.0 Standards, the WGQ made the following changes to its Version 1.9 Standards:</P>
          <P>a. It revised Principle 4.1.32; Definitions 0.2.1, 0.2.2, 0.2.3, 5.2.1, 5.2.4, and 5.2.5; Standards 0.3.11 through 0.3.15, 2.3.34, 4.3.16, 4.3.23, 4.3.28, 4.3.29, 4.3.54, 5.3.1 through 5.3.14, 5.3.16, 5.3.19 through 5.3.21, 5.3.24 through 5.3.27, 5.3.31 through 5.3.33, 5.3.38, 5.3.42, 5.3.48, 5.3.50, 5.3.51, 5.3.60, 5.3.62, 5.3.62a, and 5.3.63 through 5.3.69; and Datasets 1.4.1 through 1.4.6, 2.4.1, 2.4.3, 2.4.4, 2.4.6, 2.4.7, 3.4.1, 3.4.4, 5.4.14 through 5.4.17, and 5.4.20 through 5.4.22.</P>
          <P>b. It added Definition 0.2.4; Standards 0.3.18 through 0.3.22, 4.3.100 through 4.3.102, 5.3.70 through 5.3.72; and Datasets 0.4.2, 0.4.3, and 5.4.24 through 5.4.27.</P>
          <P>c. It deleted Standards 5.3.17, 5.3.30, 5.3.43, and 5.3.61; and Datasets 5.4.1 through 5.4.13, 5.4.18, and 5.4.19.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>8</SU>We discuss in sub-section A.1 below, those NAESB WGQ Version 2.0 Standards that we propose not to incorporate by reference.</P>
        </FTNT>
        <P>17. As the Commission found in Order No. 587, adoption of consensus standards is appropriate because the consensus process helps ensure the reasonableness of the standards by requiring that the standards draw support from a broad spectrum of industry participants representing all segments of the industry.<SU>9</SU>
          <FTREF/>Moreover, because the industry has to conduct business under these standards, the Commission's regulations should reflect those standards that have the widest possible support. In section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTT&amp;AA), Congress affirmatively requires Federal agencies to use technical standards developed by voluntary consensus standards organizations, like NAESB, as a means to carry out policy objectives or activities.<SU>10</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>9</SU>The NAESB process first requires a super-majority vote of 17 out of 25 members of the WGQ's Executive Committee with support from at least two members from each of the five industry segments—Distributors, End Users, Pipelines, Producers, and Services (including marketers and computer service providers). For final approval, 67 percent of the WGQ's general membership voting must ratify the standards.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>10</SU>Pub. L. 104-113, section 12(d), 110 Stat. 775 (1996), 15 U.S.C. 272, note (1997).</P>
        </FTNT>
        <PRTPAGE P="10418"/>
        <HD SOURCE="HD3">1. Proposal Not To Adopt Certain Standards</HD>
        <HD SOURCE="HD3">a. Standards Not Adopted in Previous Rulemakings</HD>
        <P>18. The Commission is continuing its past practice and is not proposing to incorporate by reference Standards 4.3.4 and 10.3.2, because they are inconsistent with the Commission's record retention requirement in 18 CFR 284.12(b)(3)(v).<SU>11</SU>
          <FTREF/>Also, consistent with past practice, we are not incorporating NAESB's interpretation of its standards into the Commission's regulations because, while interpretations may provide useful guidance, they are not determinative and we will not require pipelines to comply with NAESB's interpretations.<SU>12</SU>
          <FTREF/>Likewise, consistent with prior practice we will not incorporate optional contracts into our regulations because the Commission does not require the use of these contracts.<SU>13</SU>
          <FTREF/>In addition, the Commission is not proposing to incorporate by reference the WEQ/WGQ eTariff Related Standards because the Commission has already adopted standards and protocols for electronic tariff filings based on the NAESB Standards.<SU>14</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>11</SU>
            <E T="03">See, e.g., Standards for Business Practices for Interstate Natural Gas Pipelines,</E>Final Rule, Order No. 587-T, FERC Stats. &amp; Regs. ¶ 31,289, at P 5 &amp; n. 9 (2009).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>12</SU>
            <E T="03">Standards for Business Practices and Communication Protocols for Public Utilities,</E>Order No. 676-E, FERC Stats. &amp; Regs. ¶ 31,299, at n. 16 (2009).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>13</SU>
            <E T="03">Id.</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>14</SU>
            <E T="03">See Electronic Tariff Filings,</E>FERC Stats. &amp; Regs. ¶ 31,276 (2008).</P>
        </FTNT>
        <HD SOURCE="HD3">b. Standards 0.3.19 and 0.3.21</HD>
        <P>19. NAESB adopted new Standards<SU>15</SU>
          <FTREF/>and Datasets<SU>16</SU>
          <FTREF/>in Version 2.0 designed to specify the business practices for the dissemination of operationally available and unsubscribed capacity information as required under section 284.13 of the Commission's regulations. The new NAESB WGQ Standards are intended to provide industry-wide standardization of certain data elements required to be provided as part of the Commission's reporting requirements for interstate pipelines. However, two of the proposed standards, WGQ Standards 0.3.19 and 0.3.21, appear to be inconsistent with the Commission's posting regulations.</P>
        <FTNT>
          <P>
            <SU>15</SU>NAESB WGQ Version 2.0 Standards 0.3.18 through 0.3.22.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>16</SU>NAESB WGQ Version 2.0 Datasets 0.4.2 and 0.4.3 were created to replace deleted NAESB WGQ Version 1.9 Dataset 5.4.13 (Operationally Available and Unsubscribed Capacity).</P>
        </FTNT>
        <P>20. NAESB WGQ Standard 0.3.19 states:</P>
        
        <EXTRACT>
          <P>Operationally Available Capacity (OAC), Operating Capacity (OPC) and Total Scheduled Quantity (TSQ) are associated information and should be reported at the same level. Transportation Service Providers should report OAC, OPC and TSQ at, at least one of, point, segment or zone level.</P>
        </EXTRACT>
        
        <P>21. While this standard allows the pipeline to choose whether to post Operationally Available Capacity, Operating Capacity, and Total Scheduled Quantity at either a point, segment or zone level, section 284.13(d)<SU>17</SU>
          <FTREF/>of our regulations does not permit the pipeline to limit the posting to a point, segment, or zone, but requires posting at all receipt and delivery points and on the mainline. Section 284.13(d) states that the pipeline must post “information relevant to the availability of all transportation services whenever capacity is scheduled, including, but not limited to, the availability of capacity at receipt points, on the mainline, at delivery points, and in storage fields.” Because the NAESB standards are intended to implement Commission posting requirements, we are concerned about inconsistencies between those standards and the regulations. We therefore are proposing not to incorporate by reference Standard 0.3.19 and pipelines are expected to continue to post information in accordance with § 284.13 of the Commission's regulations.</P>
        <FTNT>
          <P>
            <SU>17</SU>18 CFR 284.13(d). Section 284.13(d) states in relevant part:</P>
          <P>(d) Capacity and flow information. (1) An interstate pipeline must provide on its Internet web site and in downloadable file formats, in conformity with § 284.12 of this part, equal and timely access to information relevant to the availability of all transportation services whenever capacity is scheduled, including, but not limited to, the availability of capacity at receipt points, on the mainline, at delivery points, and in storage fields, whether the capacity is available directly from the pipeline or through capacity release, the total design capacity of each point or segment on the system, the amount scheduled at each point or segment whenever capacity is scheduled, and all planned and actual service outages or reductions in service capacity.</P>
        </FTNT>
        <P>22. NAESB WGQ Standard 0.3.21 states:</P>
        
        <EXTRACT>
          <P>The Total Scheduled Quantity and the Operationally Available Capacity information should be updated by the Transportation Service Provider to reflect scheduling changes and be reported promptly following the scheduling deadline associated with the timely and evening nominations cycles.</P>
        </EXTRACT>
        
        <P>While this standard requires the posting of information only at the timely and evening nominations cycles, section 284.13(d) does not limit the posting to only two cycles but requires the posting of capacity availability and scheduled capacity “whenever capacity is scheduled.” This would include postings for the two intra-day cycles during the gas day.<SU>18</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>18</SU>NAESB Standard 1.3.2 established four nomination cycles (Timely, Evening, Intra-day 1, and Intra-Day 2).</P>
        </FTNT>
        <P>23. We therefore are proposing not to incorporate by reference Standard 0.3.21. While NAESB is considering a revision to Standard 0.3.21, pipelines are expected to continue to adhere to the regulations and post available capacity at the four intra-day nomination opportunities. In addition, we note that some pipelines are providing additional nomination opportunities (such as hourly nominations) under certain rate schedules. The regulation requires posting “whenever capacity is scheduled,” which would include posting for these additional nomination opportunities as well as posting for the standard four nomination periods.</P>
        <HD SOURCE="HD2">B. Proposed Implementation Procedures</HD>
        <P>24. The Commission proposes that natural gas pipelines be required to implement the NAESB WGQ Version 2.0 Standards in accordance with the following schedule. We propose to require compliance with the NAESB WGQ Version 2.0 Standards beginning on the first day of the month after the fourth full month following issuance of the final rule. So if the final rule were issued on February 17, 2012, compliance would be required beginning on July 1, 2012. Based on past practice, we are proposing this implementation schedule to give the natural gas pipelines subject to these standards adequate time to implement these changes. In addition, the Commission proposes that pipelines be required to file tariff records to reflect the changed standards at least two months before the implementation date.</P>
        <P>25. The Commission also proposes to revise the compliance filing requirements to increase the transparency of the pipelines' incorporation by reference of the NAESB WGQ Standards so that shippers and the Commission will know which tariff provisions implements each standard as well as the status of each standard.</P>
        <P>(1) The pipelines should designate a single tariff section under which every NAESB standard is listed.<SU>19</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>19</SU>This section should be a separate tariff record under the Commission's electronic tariff filing requirement and be filed electronically using the eTariff portal using the Type of Filing Code 580.</P>
        </FTNT>
        <P>(2) For each standard, the pipeline would indicate in the tariff section listing all the NAESB standards:</P>

        <P>(a) Whether the standard is incorporated by reference;<PRTPAGE P="10419"/>
        </P>
        <P>(b) For those standards not incorporated by reference, the tariff provision that complies with the standard;<SU>20</SU>
          <FTREF/>and</P>
        <FTNT>
          <P>

            <SU>20</SU>For example, pipelines are required to include the full text of the NAESB nomination timeline standards (WGQ Standards 1.3.2(i-v) and 5.3.2) in their tariffs.<E T="03">Standards for Business Practices for Interstate Natural Gas Pipelines,</E>Final Rule, Order No. 587-U, FERC Stats. &amp; Regs. ¶ 31,307, at P 39 &amp; n. 42 (2010). The pipeline would indicate which tariff provision complies with each of these standards.</P>
        </FTNT>
        <P>(c) An indication as to whether the pipeline has been granted a waiver, extension of time, or other variance with respect to compliance with the standard.<SU>21</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>21</SU>Shippers can use the Commission's electronic tariff system to locate the tariff record containing the NAESB standards, which will indicate the docket in which any waiver or extension of time was granted.</P>
        </FTNT>
        <P>(3) If the pipeline is requesting a continuation of an existing waiver or extension of time, it must include a table in its transmittal letter that indicates the standard for which a waiver or extension of time was granted, and the docket number or order citation to the proceeding in which the waiver or extension was granted.</P>
        <P>This approach would give Commission staff and all shippers a common location that identifies the way the pipeline is incorporating all the NAESB WGQ Standards and the standards with which it is required to comply. The Commission will post on its eLibrary Web site (under Docket No. RM96-1-037) a sample tariff format, to provide filers an illustrative example to aid them in preparing their compliance filings.<SU>22</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>22</SU>
            <E T="03">http://www.ferc.gov/docs-filing/elibrary.asp.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD2">C. Waivers and Extensions of Time</HD>
        <P>26. In previous compliance proceedings, there has been a marked increase in the number of requests for waivers or for extensions of time to comply with standards. The Commission's orders on these requests have developed a set of general principles which the Commission intends to follow in reviewing such requests in the future.<SU>23</SU>
          <FTREF/>The following will help to clarify Commission policy regarding requests for waivers and extensions of time as well as the information that must be included with all such requests.</P>
        <FTNT>
          <P>
            <SU>23</SU>
            <E T="03">See Standards for Business Practices for Interstate Natural Gas Pipelines, compliance order,</E>133 FERC ¶ 61,096, at P 4 (October 28 Order),<E T="03">further compliance order,</E>133 FERC ¶ 61,185, at P 4 (2010) (November 30 Order);<E T="03">B-R Pipeline Co.,</E>128 FERC ¶ 61,126 (2009) (<E T="03">B-R Pipeline</E>).</P>
        </FTNT>
        <P>(1) All waivers and extensions of time are limited to the individual set of NAESB standards being adopted (in this case NAESB WGQ's Version 2.0 Standards). Pipelines will need to seek renewal of any such waivers or extensions for each version of the standards the Commission adopts.<SU>24</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>24</SU>In<E T="03">B-R Pipeline,</E>128 FERC ¶ 61,126 at P 6, the Commission stated that “each time the Commission adopts new versions of [the] standards * * * pipelines must request waiver [or extension of time] of the new standards.”</P>
        </FTNT>
        <P>(2) Waivers or extensions of time will not be granted for standards that merely describe the process by which a pipeline must perform a business function, if it performs that function, where the standard does not require the pipeline to perform the business function.<SU>25</SU>
          <FTREF/>In such a case, as long as the pipeline does not perform the business function, it is not required to follow the standard and hence requires no waiver or extension of time. If, however, the pipeline revises its tariff to perform the business function, the standard(s) will already be in the tariff and the pipeline will be required to comply with the standard(s).<SU>26</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>25</SU>October 28 Order, 133 FERC ¶ 61,096 at P 9; November 30 Order, 133 FERC ¶ 61,185 at P 7.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>26</SU>As an example, Standard 4.3.96 requires pipelines to provide hourly gas quality information “to the extent that the TSP is required to do so in its tariff or general terms and conditions, a settlement agreement, or by order of an applicable regulatory authority.” A pipeline that does not provide hourly gas quality information, therefore, does not require a waiver or extension of time for compliance with this standard, because the standard imposes no obligation on the pipeline to comply with the standard until it provides hourly gas quality information.<E T="03">See</E>October 28 Order, 133 FERC ¶ 61,096 at P 9.</P>
        </FTNT>
        <P>(3) If a pipeline is seeking a renewal of a waiver or extension of time request, it must provide a current justification for the request and must include a citation to an order or the docket number of the proceeding in which the initial waiver or extension of time was granted.<SU>27</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>27</SU>
            <E T="03">See</E>Order No. 587-U, FERC Stats. &amp; Regs. ¶ 31,307 at P 38-39.</P>
        </FTNT>
        <P>(4) In cases in which pipelines maintain they should not be required to incur the costs of implementing standards shippers are not interested in utilizing, waivers ordinarily will not be granted. Instead, the approach to these requests will be to grant the pipeline an extension of time for compliance until 60 days after the pipeline receives a request to comply with the standard.<SU>28</SU>
          <FTREF/>Waivers are justified only when the pipeline can demonstrate that there is good cause not to require the implementation of a standard even though shippers want to use the standard.</P>
        <FTNT>
          <P>
            <SU>28</SU>
            <E T="03">See T.W. Phillips Pipeline Corp.,</E>137 FERC ¶ 61,104, at P 11 (2011).</P>
        </FTNT>
        <P>(5) The Commission generally will not entertain waiver or extension of time requests for NAESB WGQ Definitions (x.2.z Standards). The NAESB WGQ Definitions specify and elucidate specific terms of generally applicable business practices and do not require a pipeline to perform any action or incur expense to comply which such Definitions.</P>
        <P>27. To provide guidance to pipelines in filing requests for waivers or extensions of time, the Commission also will explain its general policy regarding waivers of the four general categories of NAESB standards: (1) Business practice standards; (2) requirements to conduct business electronically using the Internet (Internet Business Standards); (3) Commission Internet posting requirements (Internet Posting Standards); and (4) requirements to conduct computer-to-computer transactions using EDI. It is important for pipelines to identify clearly in their filings the specific standards from which they are seeking waivers or extensions of time. In particular, pipelines need to be clear as to whether they are requesting waivers of the Internet Requirements or the EDI requirements.</P>
        <P>(1)<E T="03">Waivers or Extensions of Time to Comply with Business Practice Standards.</E>Waivers or extensions of time to comply with business practice standards will generally be denied because these standards establish the basic principles on which business is required to be conducted. Nonetheless, if a pipeline believes such a waiver or extension of time to comply is justified, it must detail specific reasons why it seeks the waiver or extension of time to comply with the standard and address alternative methods by which it could comply with the principle of the standard.<SU>29</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>29</SU>
            <E T="03">See Carolina Gas Transmission Corp.,</E>131 FERC ¶ 61,211, at P 4 (2010);<E T="03">MoGas Pipeline LLC,</E>131 FERC ¶ 61,251, at P 7 (2010);<E T="03">Granite State Gas Transmission, Inc.,</E>132 FERC ¶ 61,262, at P 8 (2010) (requiring small pipelines to use manual methods of implementing index-based capacity releases).</P>
        </FTNT>
        <P>(2)<E T="03">Waivers or Extensions of Time to Comply with the Internet Business Standards.</E>Waivers or extensions of time to comply with the requirement to conduct business over the Internet generally will be granted based on a pipeline's individual circumstances, such as the size of the pipeline, the number of shippers, its ability to provide electronic services, the demand for such services, and alternative means by which the pipeline conducts the business practice. For smaller pipelines, the Commission has granted waivers of the Internet Business Standards when such pipelines have shown that complying with such standards would<PRTPAGE P="10420"/>prove unduly burdensome.<SU>30</SU>
          <FTREF/>For larger pipelines, the Commission has rarely granted waivers or extensions of time to comply with the Internet Business Standards.<SU>31</SU>
          <FTREF/>However, if a pipeline can demonstrate that shippers are not utilizing a standard, then the Commission will grant an extension of time to comply. Such an extension of time ensures that pipelines do not needlessly have to spend money revamping computer services that shippers do not use while, at the same time, ensuring that shippers have access to such services if they need them.</P>
        <FTNT>
          <P>
            <SU>30</SU>October 28 Order, 133 FERC ¶ 61,096 at P 17-18; November 30 Order, 133 FERC ¶ 61,185 at P 9.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>31</SU>October 28 Order, 133 FERC ¶ 61,096 at P 17-18.</P>
        </FTNT>
        <P>(3)<E T="03">Waivers or Extensions of Time to Comply with Internet Posting Standards.</E>The Commission rarely grants waivers or extensions of time to comply with the posting requirements because posting of this information is required by the Commission's regulations. The cost of maintaining and posting information on an Internet Web site is not great even for smaller pipelines.</P>
        <P>(4)<E T="03">Waivers or Extensions of Time to Comply with EDI standards.</E>The Commission generally will grant waivers or extensions of time to comply with the EDI requirements based on a pipeline's individual circumstances, such as the size of the pipeline, the number of shippers, its ability to provide electronic services, the demand for such services, and alternative means by which the pipeline conducts the business practice. For smaller pipelines, the Commission generally grants waivers of the EDI Standards when such pipelines have shown that complying with such standards would prove unduly burdensome.<SU>32</SU>
          <FTREF/>For larger pipelines on which shippers are not utilizing a standard, in lieu of an outright waiver, the Commission generally will grant an extension of time until such time as a request is made to use EDI.<SU>33</SU>
          <FTREF/>As with the EDI requirements relating to capacity releases,<SU>34</SU>
          <FTREF/>NAESB also can review whether certain business transactions still need to be available through EDI, given the lack of usage, and pipelines can also seek such revisions from NAESB for EDI standards whose upkeep no longer appears to be cost justified.</P>
        <FTNT>
          <P>
            <SU>32</SU>
            <E T="03">See supra</E>n. 29.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>33</SU>
            <E T="03">See supra</E>n. 30;<E T="03">Texas Eastern Transmission LP.,</E>100 FERC ¶ 61,364 (2002) (granting an extension of time for unused EDI datasets, but requiring compliance with datasets for publicly available capacity release information).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>34</SU>
            <E T="03">See supra</E>P 10.</P>
        </FTNT>
        <HD SOURCE="HD1">IV. Notice of Use of Voluntary Consensus Standards</HD>
        <P>28. Office of Management and Budget Circular A-119 (section 11) (February 10, 1998) provides that federal agencies should publish a request for comment in a NOPR when the agency is seeking to issue or revise a regulation proposing to adopt a voluntary consensus standard or a government-unique standard. In this NOPR, the Commission is proposing to incorporate by reference voluntary consensus standards developed by the WGQ.</P>
        <HD SOURCE="HD1">V. Information Collection Statement</HD>
        <P>29. The following collections of information contained in this proposed rule are being submitted to the Office of Management and Budget (OMB) for review under section 3507(d) of the Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits comments on the Commission's need for this information, whether the information will have practical utility, the accuracy of the provided burden estimates, ways to enhance the quality, utility, and clarity of the information to be collected, and any suggested methods for minimizing respondents' burden, including the use of automated information techniques. The following burden estimates include the costs to implement the WGQ's definitions and business practice standards for interstate natural gas pipelines and electronic communication protocols. The burden estimates are primarily related to start-up to implement these standards and regulations and will not result in ongoing costs.</P>
        <GPOTABLE CDEF="s50,14,14,14,14" COLS="5" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Data collection</CHED>
            <CHED H="1">Number of<LI>respondents</LI>
            </CHED>
            <CHED H="1">Number of<LI>responses per</LI>
              <LI>respondent</LI>
            </CHED>
            <CHED H="1">Hours per<LI>response</LI>
            </CHED>
            <CHED H="1">Total number of hours</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">FERC-545<SU>35</SU>
            </ENT>
            <ENT>161</ENT>
            <ENT>1</ENT>
            <ENT>10</ENT>
            <ENT>1,610</ENT>
          </ROW>
          <ROW RUL="n,s">
            <ENT I="01">FERC-549C<SU>36</SU>
            </ENT>
            <ENT>161</ENT>
            <ENT>1</ENT>
            <ENT>22</ENT>
            <ENT>3,542</ENT>
          </ROW>
          <ROW>
            <ENT I="03">Totals</ENT>
            <ENT/>
            <ENT/>
            <ENT/>
            <ENT>5,152</ENT>
          </ROW>
        </GPOTABLE>
        <P>
          <E T="03">Total<FTREF/>Annual<FTREF/>Hours for Collections</E>
          <E T="03">(Reporting and Recordkeeping, if appropriate</E>) = 5,152.</P>
        <FTNT>
          <P>
            <SU>35</SU>Data collection FERC-545 covers rate change filings made by natural gas pipelines, including tariff changes (OMB Control No. 1902-0154).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>36</SU>Data collection FERC-549C covers Standards for Business Practices of Interstate Natural Gas Pipelines (OMB Control No. 1902-0174).</P>
        </FTNT>
        <P>
          <E T="03">Information Collection Costs:</E>The Commission seeks comments on the costs to comply with these requirements. It has projected the average annualized cost for all respondents to be the following:<SU>37</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>37</SU>The total annualized cost for the two information collections is $303,968. This number is reached by multiplying the total hours to prepare a response (hours) by an hourly wage estimate of $59 (a composite estimate that includes legal, technical and support staff wages and benefits obtained from the Bureau of Labor Statistic data at<E T="03">http://bls.gov/oes/current/naics3_221000.htm</E>and<E T="03">http://www.bls.gov/news.release/ecec.nr0.htm</E>rates). $303,968 = $59 × 5,152.</P>
        </FTNT>
        <GPOTABLE CDEF="s50,14,14" COLS="3" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1"/>
            <CHED H="1">FERC-545</CHED>
            <CHED H="1">FERC-549C</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Annualized Capital/Startup Costs</ENT>
            <ENT>$94,990</ENT>
            <ENT>$208,987</ENT>
          </ROW>
          <ROW RUL="n,s">
            <ENT I="01">Annualized Costs (Operations &amp; Maintenance)</ENT>
            <ENT>N/A</ENT>
            <ENT>N/A</ENT>
          </ROW>
          <ROW>
            <ENT I="03">Total Annualized Costs</ENT>
            <ENT>94,990</ENT>
            <ENT>208,987</ENT>
          </ROW>
        </GPOTABLE>
        <P>
          <E T="03">Total Cost for all Respondents</E>= $303,968.</P>
        <P>30. OMB regulations<SU>38</SU>
          <FTREF/>require OMB to approve certain information collection requirements imposed by agency rule. The Commission is submitting notification of this proposed rule to OMB. These information collections are mandatory requirements.</P>
        <FTNT>
          <P>
            <SU>38</SU>5 CFR 1320.11.</P>
        </FTNT>
        <P>
          <E T="03">Title:</E>FERC-545, Gas Pipeline Rates: Rates Change (Non-Formal); FERC-<PRTPAGE P="10421"/>549C, Standards for Business Practices of Interstate Natural Gas Pipelines.</P>
        <P>
          <E T="03">Action:</E>Proposed collections.</P>
        <P>
          <E T="03">OMB Control Nos.:</E>1902-0154, 1902-0174.</P>
        <P>
          <E T="03">Respondents:</E>Business or other for profit, (i.e., Natural Gas Pipelines, applicable to only a few small businesses.) Although the intraday reporting requirements will affect electric plant operators, the Commission is not imposing the reporting burden of adopting these standards on those entities.</P>
        <P>
          <E T="03">Frequency of Responses:</E>One-time implementation (business procedures, capital/start-up).</P>
        <P>
          <E T="03">Necessity of Information:</E>The proposals in this NOPR would, if implemented, upgrade the Commission's current business practices and communication standards by specifically: (1) Adding and revising standards allowing the elimination of EDI requirements for Capacity Release Upload information; (2) creating and modifying existing information posting requirements for Web sites and browsers; (3) requiring pipelines to provide security information; (4) requiring the posting of information on waste heat recovery feasibility on the Internet; (5) modifying pipeline notice content and creating new pipeline notice types; and (6) creating standards to ensure NAESB data format is consistent with other data reporting via the Internet by using CSV.</P>
        <P>The implementation of these data requirements will provide additional transparency to informational posting Web sites and will improve communication standards, including gas-electric communications. The implementation of these standards and regulations will promote the additional efficiency and reliability of the gas industries' operations thereby helping the Commission to carry out its responsibilities under the Natural Gas Act of promoting the efficiency and reliability of the gas industries' operations. In addition, the Commission's Office of Enforcement will use the data for general industry oversight.</P>
        <P>
          <E T="03">Internal Review:</E>The Commission has reviewed the requirements pertaining to business practices of natural gas pipelines and made a preliminary determination that the proposed revisions are necessary to establish more efficient coordination between the gas and electric industries. Requiring such information ensures both a common means of communication and common business practices to limit miscommunication for participants engaged in the sale of electric energy at wholesale and the transportation of natural gas. These requirements conform to the Commission's plan for efficient information collection, communication, and management within the natural gas pipeline industries. The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden estimates associated with the information requirements.</P>

        <P>31. Interested persons may obtain information on the reporting requirements by contacting the following: Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director, email:<E T="03">DataClearance@ferc.gov,</E>phone: (202) 502-8663, fax: (202) 273-0873].</P>
        <P>32. Comments concerning the collection of information(s) and the associated burden estimate(s), should be sent to the contact listed above and to the Office of Management and Budget, Office of Information and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer for the Federal Energy Regulatory Commission, telephone: (202) 395-4638, fax: (202) 395-4718].</P>
        <HD SOURCE="HD1">VI. Environmental Analysis</HD>
        <P>33. The Commission is required to prepare an Environmental Assessment or an Environmental Impact Statement for any action that may have a significant adverse effect on the human environment.<SU>39</SU>
          <FTREF/>The Commission has categorically excluded certain actions from these requirements as not having a significant effect on the human environment.<SU>40</SU>
          <FTREF/>The actions proposed here fall within categorical exclusions in the Commission's regulations for rules that are clarifying, corrective, or procedural, for information gathering, analysis, and dissemination, and for sales, exchange, and transportation of natural gas that requires no construction of facilities.<SU>41</SU>
          <FTREF/>Therefore, an environmental assessment is unnecessary and has not been prepared as part of this NOPR.</P>
        <FTNT>
          <P>
            <SU>39</SU>Order No. 486,<E T="03">Regulations Implementing the National Environmental Policy Act of 1969,</E>FERC Stats. &amp; Regs. ¶ 30,783 (1987).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>40</SU>18 CFR 380.4.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>41</SU>
            <E T="03">See</E>18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).</P>
        </FTNT>
        <HD SOURCE="HD1">VII. Regulatory Flexibility Act Certification</HD>
        <P>34. The Regulatory Flexibility Act of 1980 (RFA)<SU>42</SU>
          <FTREF/>generally requires a description and analysis of final rules that will have significant economic impact on a substantial number of small entities. The RFA mandates consideration of regulatory alternatives that accomplish the stated objectives of a proposed rule and that minimize any significant economic impact on a substantial number of small entities. The Small Business Administration's (SBA) Office of Size Standards develops the numerical definition of a small business.<SU>43</SU>
          <FTREF/>The SBA has established a size standard for pipelines transporting natural gas, stating that a firm is small if its annual receipts are less than $7 million.<SU>44</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>42</SU>5 U.S.C. 601-612.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>43</SU>13 CFR 121.101.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>44</SU>13 CFR 121.201, subsection 486.</P>
        </FTNT>
        <P>35. The regulations proposed here impose requirements only on interstate pipelines, the majority of which are not small businesses. Most companies regulated by the Commission do not fall within the RFA's definition of a small entity. Approximately 161 entities would be potential respondents subject to data collection FERC-545 reporting requirements and also be subject to data collection FERC 549-C reporting requirements. Nearly all of these entities are large entities. For the year 2010 (the most recent year for which information is available), only seven companies not affiliated with larger companies had annual revenues of less than $7 million, which is about three percent of the total universe of potential respondents. Moreover, these requirements are designed to benefit all customers, including small businesses. The Commission estimates that the one-time implementation cost of these standards is $303,968, or $1,888 per company.<SU>45</SU>
          <FTREF/>The Commission does not consider the estimated $1,888 impact per entity to be significant. As noted above, adoption of consensus standards helps ensure the reasonableness of the standards by requiring that the standards draw support from a broad spectrum of industry participants representing all segments of the industry. Because of that representation and the fact that industry conducts business under these standards, the Commission's regulations should reflect those standards that have the widest possible support.</P>
        <FTNT>
          <P>
            <SU>45</SU>This number is derived by dividing the total cost figure by the number of respondents. $303,968/161 = $1,888.</P>
        </FTNT>
        <P>36. Accordingly, pursuant to § 605(b) of the RFA, the regulations proposed herein should not have a significant economic impact on a substantial number of small entities.</P>
        <HD SOURCE="HD1">VIII. Comment Procedures</HD>

        <P>37. The Commission invites interested persons to submit written comments on the NAESB business practice standards<PRTPAGE P="10422"/>proposed for incorporation by reference in this NOPR, as well as any related matters or alternative proposals that commenters may wish to discuss. Comments are due March 23, 2012. Comments must refer to Docket No. RM96-1-037, and must include the commenter's name, the organization they represent, if applicable, and their address. Comments may be filed either in electronic or paper format.</P>

        <P>38. The Commission encourages comments to be filed electronically via the eFiling link on the Commission's Web site at<E T="03">http://www.ferc.gov.</E>The Commission accepts most standard word processing formats. Documents created electronically using word processing software should be filed in native applications or print-to-PDF format and not in a scanned format. Commenters filing electronically do not need to make a paper filing.</P>
        <P>39. Commenters that are not able to file comments electronically must send an original of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street NE., Washington, DC 20426.</P>
        <P>40. All comments will be placed in the Commission's public files and may be viewed, printed, or downloaded remotely as described in the Document Availability section below. Commenters on this proposal are not required to serve copies of their comments on other commenters.</P>
        <HD SOURCE="HD1">IX. Document Availability</HD>

        <P>41. In addition to publishing the full text of this document in the<E T="04">Federal Register</E>, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through the Commission's Home Page (<E T="03">http://www.ferc.gov</E>) and in the Commission's Public Reference Room during normal business hours (8:30 a.m. to 5 p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC 20426.</P>
        <P>42. From the Commission's Home Page on the Internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field.</P>

        <P>43. User assistance is available for eLibrary and the Commission's Web site during normal business hours from the Commission's Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at<E T="03">ferconlinesupport@ferc.gov,</E>or the Public Reference Room at (202) 502-8371, TTY (202) 502-8659. Email the Public Reference Room at<E T="03">public.referenceroom@ferc.gov.</E>
        </P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 18 CFR Part 284</HD>
          <P>Incorporation by reference, Natural gas, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <P>By the Commission.</P>
          <NAME>Nathaniel J. Davis, Sr.,</NAME>
          <TITLE>Deputy Secretary.</TITLE>
        </SIG>
        

        <P>In consideration of the foregoing, the Commission proposes to amend 18 CFR part 284, Chapter I, Title 18,<E T="03">Code of Federal Regulations,</E>as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 284—CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED AUTHORITIES</HD>
          <P>1. The authority citation for part 284 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352; 43 U.S.C. 1331-1356.</P>
          </AUTH>
          
          <P>2. Section 284.12 is amended by revising paragraph (a)(1) to read as follows:</P>
          <SECTION>
            <SECTNO>§ 284.12</SECTNO>
            <SUBJECT>Standards for pipeline business operations and communications.</SUBJECT>
            <P>(a) * * *</P>
            <P>(1) * * *</P>
            <P>(i) Additional Standards (General Standards, Creditworthiness Standards, Gas/Electric Operational Communications Standards and Operating Capacity and Unsubscribed Standards) (Version 2.0, November 30, 2010) with the exception of Standards 0.3.19 and 0.3.21;</P>
            <P>(ii) Nominations Related Standards (Version 2.0, November 30, 2010, Minor Corrections Applied Through December 2, 2011);</P>
            <P>(iii) Flowing Gas Related Standards (Version 2.0, November 30, 2010, Minor Corrections Applied through June 3, 2011);</P>
            <P>(iv) Invoicing Related Standards (Version 2.0, November 30, 2010, Minor Corrections Applied Through June 3, 2011);</P>
            <P>(v) Quadrant Electronic Delivery Mechanism Related Standards (Version 2.0, November 30, 2010, Minor Corrections Applied Through December 2, 2011) with the exception of Standard 4.3.4;</P>
            <P>(vi) Capacity Release Related Standards (Version 2.0, November 30, 2010, Minor Corrections Applied Through January 5, 2012); and</P>
            <P>(vii) Internet Electronic Transport Related Standards (Version 2.0, November 30, 2010, Minor Corrections Applied January 2, 2011) with the exception of Standard 10.3.2.</P>
            <STARS/>
          </SECTION>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4041 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6717-01-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
        <SUBAGY>Internal Revenue Service</SUBAGY>
        <CFR>26 CFR Part 1</CFR>
        <DEPDOC>[REG-130302-10]</DEPDOC>
        <RIN>RIN 1545-BJ69</RIN>
        <SUBJECT>Reporting of Specified Foreign Financial Assets; Correction</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Internal Revenue Service (IRS).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Correction notice.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>This document contains corrections to a notice of proposed rulemaking (REG-130302-10), which was published in the<E T="04">Federal Register</E>on Monday, December 19, 2011 (76 FR 78594), relating to the reporting of specified foreign financial assets.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>December 19, 2011.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Joseph S. Henderson (202) 622-3880 (not a toll-free number).</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>
        <P>The notice of proposed rulemaking that is the subject of these corrections are under section 6038 of the Internal Revenue Code.</P>
        <HD SOURCE="HD1">Need for Correction</HD>
        <P>As published, the notice of proposed rulemaking (REG-130302-10), contains errors which may prove to be misleading and are in need of clarification.</P>
        <HD SOURCE="HD1">Correction of Publication</HD>
        <P>Accordingly, the publication of the notice of proposed rulemaking  (REG-130302-10), which was the subject of FR Doc. 2011-32254, is corrected as follows:</P>

        <P>1. On page 78594, column 2 in the preamble, under the caption<E T="02">FOR FURTHER INFORMATION CONTACT</E>, the language “Concerning the proposed regulations, Joseph S. Henderson, (202) 622-3880; concerning submission of comments and/or requests for a hearing,<E T="03">Richard.A.Hurst@irscounsel.treas.gov</E>, (202) 622-7180 (not a toll-free numbers).” Is corrected to read  “Concerning the proposed regulations, Joseph S. Henderson, (202) 622-3880; concerning submission of comments<PRTPAGE P="10423"/>and/or requests for a hearing, Oluwafunmilayo (Funmi) Taylor, at (202) 622-7180 (not toll-free numbers).”.</P>
        <P>2. On page 78596, column 1, in the preamble, under the caption “Explanation of Provisions”, paragraph B. 2., line three, the language “or executor is a bank, financial” is corrected to read “is a bank, financial”.</P>
        <P>3. On page 78596, column 1, in the preamble, under the caption “Explanation of Provisions”, paragraph B.2., the fourth line from the bottom of the first full paragraph, the language “under sections 671 through 679 and the” is corrected to read “under sections 671 through 678 and the”.</P>
        <SIG>
          <NAME>Guy R. Traynor,</NAME>
          <TITLE>Federal Register Liaison, Legal Processing Division,Publications and Regulations Br. (Procedure and Administration)</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3904 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4830-01-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R03-OAR-2011-0958; FRL- 9634-7]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Air Quality Implementation Plans; West Virginia; Amendments to West Virginia's Ambient Air Quality Standards</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>EPA is proposing to approve a State Implementation Plan (SIP) revision submitted by the State of West Virginia (West Virginia). This revision pertains to amendments of West Virginia's Legislative Rule regarding ambient air quality standards (45CSR8- Ambient Air Quality Standards). These amendments incorporate by reference the National Ambient Air Quality Standards (NAAQS) for sulfur dioxide, particulate matter, carbon monoxide, ozone, nitrogen dioxide, and lead. This action is being taken under the Clean Air Act (CAA).</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received on or before March 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID Number EPA-R03-OAR-2011-0958 by one of the following methods:</P>
          <P>A.<E T="03">www.regulations.gov.</E>Follow the on-line instructions for submitting comments.</P>
          <P>B.<E T="03">Email: fernandez.cristina@epa.gov.</E>
          </P>
          <P>C.<E T="03">Mail:</E>EPA-R03-OAR-2011-0958, Cristina Fernandez, Associate Director, Office of Air Program Planning, Mailcode 3AP30, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.</P>
          <P>D.<E T="03">Hand Delivery:</E>At the previously-listed EPA Region III address. Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-R03-OAR-2011-0958. EPA's policy is that all comments received will be included in the public docket without change, and may be made available online at<E T="03">www.regulations.gov,</E>including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through<E T="03">www.regulations.gov</E>or email. The<E T="03">www.regulations.gov</E>Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through<E T="03">www.regulations.gov,</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses.</P>
          <P>
            <E T="03">Docket:</E>All documents in the electronic docket are listed in the<E T="03">www.regulations.gov</E>index. Although listed in the index, some information is not publicly available, i.e., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in<E T="03">www.regulations.gov</E>or in hard copy during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal are available at the West Virginia Department of Environmental Protection, Division of Air Quality, 601 57th Street SE., Charleston, West Virginia 25304.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Asrah Khadr, (215) 814-2071, or by email at<E T="03">khadr.asrah@epa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document, whenever “we,” “us,” or “our” is used, we mean EPA.</P>
        <HD SOURCE="HD1">I. Background</HD>

        <P>On July 8, 2011, the West Virginia Department of Environmental Protection submitted a SIP revision pertaining to amendments of Legislative Rule 45CSR8—<E T="03">Ambient Air Quality Standards.</E>EPA had approved a previous revision of Legislative Rule 45CSR8 on February 10, 2009 (74 FR 6552).</P>
        <HD SOURCE="HD1">II. Summary of SIP Revision</HD>
        <P>Amendments to 45CSR8 consist of revisions to section 45-8-1—General, subpart 1.6—Former Rules, in which the effective and filed dates were revised to represent the most recent changes to the NAAQS and the addition of subpart 1.5—Incorporation by Reference to section 45-8-1 to incorporate by reference 40 CFR part 50—National Primary and Secondary Ambient Air Quality Standards and 40 CFR part 53—Ambient Air Monitoring Reference and Equivalent Methods, effective June 1, 2010. The previous version of 45CSR8 merely stated EPA standards for the NAAQS and the revised version incorporates by reference the NAAQS and monitoring reference and equivalency methods. Also, other amendments to 45CSR8 include the addition of section 45-8-3—Adoption of Standards and the removal of section 45-8-2—Anti-Degradation Policy, section 45-8-4—Ambient Air Quality Standards, section 45-8-5—Methods of Measurement, and section 45-8-6—Reference Conditions.</P>
        <HD SOURCE="HD1">III. Proposed Action</HD>

        <P>EPA is proposing to approve the West Virginia SIP revision regarding the incorporation by reference of the NAAQS for sulfur dioxide, particulate matter, carbon monoxide, ozone, nitrogen dioxide, and lead into 45CSR8—Ambient Air Quality Standards, which was submitted onJuly 12, 2011. EPA is soliciting public comments on the issues discussed in this document. These comments will be considered before taking final action.<PRTPAGE P="10424"/>
        </P>
        <HD SOURCE="HD1">IV. Statutory and Executive Order Reviews</HD>
        <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

        <P>• Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501<E T="03">et seq.</E>);</P>

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
        <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and</P>
        <P>• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).</P>
        <P>In addition, the proposed approval of the West Virginia SIP revision regarding the incorporation by reference of the NAAQS for sulfur dioxide, particulate matter, carbon monoxide, ozone, nitrogen dioxide, and lead into 45CSR8-Ambient Air Quality Standards, does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Carbon monoxide, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides.</P>
        </LSTSUB>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>42 U.S.C. 7401<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: February 6, 2012.</DATED>
          <NAME>W. C. Early,</NAME>
          <TITLE>Acting Regional Administrator,Region III.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3918 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R05-OAR-2009-0695; FRL-9635-3]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Implementation Plans; Wisconsin; Volatile Organic Compound Emission Control Measures for Milwaukee and Sheboygan Ozone Nonattainment Areas</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>On September 1, 2009, November 16, 2011, and January 26, 2012, the Wisconsin Department of Natural Resources (WDNR) submitted several volatile organic compound (VOC) rules for approval into its State Implementation Plan (SIP). The purpose of these rules is to satisfy the Clean Air Act's (the Act) requirement that states revise their SIPs to include reasonably available control technology (RACT) for sources of VOC emissions in moderate ozone nonattainment areas. Wisconsin's VOC rules provide RACT requirements for the Milwaukee-Racine and Sheboygan 8-hour ozone nonattainment areas. These rules are approvable because they are consistent with the Control Technique Guideline (CTG) documents issued by EPA in 2006 and 2007 and satisfy the RACT requirements of the Act.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before March 23, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID No. EPA-R05-OAR-2009-0695, by one of the following methods:</P>
          <P>•<E T="03">www.regulations.gov:</E>Follow the on-line instructions for submitting comments.</P>
          <P>•<E T="03">Email: aburano.douglas@epa.gov.</E>
          </P>
          <P>•<E T="03">Fax:</E>(312) 408-2279.</P>
          <P>•<E T="03">Mail:</E>Douglas Aburano, Chief, Attainment Planning and Maintenance Section (AR-18J), U.S. Environmental Protection Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604.</P>
          <P>•<E T="03">Hand Delivery:</E>Douglas Aburano, Chief, Attainment Planning and Maintenance Section (AR-18J), U.S. Environmental Protection Agency, 77 West Jackson Boulevard, 18th floor, Chicago, Illinois 60604. Such deliveries are only accepted during the Regional Office's normal hours of operation, and special arrangements should be made for deliveries of boxed information. The Regional Office official hours of business are Monday through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal holidays.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-R05-OAR-2009-0695. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at<E T="03">www.regulations.gov,</E>including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through<E T="03">www.regulations.gov</E>or email. The<E T="03">www.regulations.gov</E>Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through<E T="03">www.regulations.gov</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional instructions on submitting comments, go to Section I of the<E T="02">SUPPLEMENTARY INFORMATION</E>section of this document.</P>
          <P>
            <E T="03">Docket:</E>All documents in the docket are listed in the<E T="03">www.regulations.gov</E>
            <PRTPAGE P="10425"/>index. Although listed in the index, some information is not publicly available,<E T="03">e.g.,</E>CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in<E T="03">www.regulations.gov</E>or in hard copy at the Environmental Protection Agency, Region 5, Air and Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 AM to 4:30 PM, Monday through Friday, excluding federal holidays. We recommend that you telephone Steven Rosenthal at (312) 886-6052 before visiting the Region 5 office.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Steven Rosenthal, Environmental Engineer, Attainment Planning &amp; Maintenance Section, Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6052,<E T="03">rosenthal.steven@epa.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA. This<E T="02">SUPPLEMENTARY INFORMATION</E>section is arranged as follows:</P>
        
        <EXTRACT>
          <FP SOURCE="FP-2">I. What should I consider as I prepare my comments for EPA?</FP>
          <FP SOURCE="FP-2">II. What action is EPA taking today?</FP>
          <FP SOURCE="FP-2">III. What is the purpose of this action?</FP>
          <FP SOURCE="FP-2">IV. What is EPA's analysis of Wisconsin's submitted VOC rules?</FP>
          <FP SOURCE="FP-2">V. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. What should I consider as I prepare my comments for EPA?</HD>
        <P>When submitting comments, remember to:</P>

        <P>1. Identify the rulemaking by docket number and other identifying information (subject heading,<E T="04">Federal Register</E>date, and page number).</P>
        <P>2. Follow directions—The EPA may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations (CFR) part or section number.</P>
        <P>3. Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes.</P>
        <P>4. Describe any assumptions and provide any technical information and/or data that you used.</P>
        <P>5. If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced.</P>
        <P>6. Provide specific examples to illustrate your concerns, and suggest alternatives.</P>
        <P>7. Explain your views as clearly as possible, avoiding the use of profanity or personal threats.</P>
        <P>8. Make sure to submit your comments by the comment period deadline identified.</P>
        <HD SOURCE="HD1">II. What action is EPA taking today?</HD>
        <P>EPA is proposing to approve into the Wisconsin SIP several new and revised VOC rules which set out RACT requirements for categories of VOC sources in two ozone nonattainment areas. These rules correspond to and are consistent with the source categories and control recommendations in the CTGs issued by EPA in 2006 and 2007, as well as EPA RACT guidance for earlier CTGs and source categories not covered by a CTG. Wisconsin adopted new or revised rules for industrial cleaning solvents, flat wood paneling coatings, flexible packaging printing materials, lithographic printing materials, letterpress printing materials, paper, film and foil coatings, metal furniture coatings, large appliance coatings, industrial wastewater collection and treatment operations, and reactor processes and distillation operations in the synthetic organic chemical manufacturing industry (SOCMI).</P>
        <HD SOURCE="HD1">III. What is the purpose of this action?</HD>

        <P>The primary purpose of these rules is to satisfy the requirement in section 182(b) of the Act that VOC RACT rules be adopted in nonattainment areas for the source categories covered by the CTG documents issued by EPA in 2006 and 2007. These rule revisions also include previously required SOCMI air oxidation, distillation and reactor regulations as well as an industrial wastewater rule that is required because industrial wastewater is a major non-CTG category for which RACT rules are required. The Milwaukee-Racine and Sheboygan 8-hour ozone nonattainment areas are classified as moderate nonattainment for the 8-hour ozone national ambient air quality standard.<E T="03">See</E>40 CFR 81.31 and 81.314. According to EPA policy, Wisconsin does not need to adopt rules for the source categories covered by the CTGs issued on September 30, 2008, because it submitted a complete 8-hour ozone redesignation request (on September 11, 2009) before September 30, 2009, the date upon which rules consistent with these CTGs were required (according to section 182(b)) to be adopted and submitted as SIP revisions.</P>
        <P>Section 182(b)(2) of the Act requires that, for areas classified as moderate or above for ozone nonattainment, states must revise their SIPs to adopt RACT requirements for VOC sources that are covered by CTGs. RACT is defined as the lowest emissions limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility (44 FR 53762; September 17, 1979). CTGs are documents issued by EPA to provide states with the EPA's recommendation on how to control the emissions of VOC from a specific type of product or source category in an ozone nonattainment area. A CTG provides information on determining RACT for a source category, including recommendations on control options and enforcement provisions for the category.</P>
        <HD SOURCE="HD1">IV. What is EPA's analysis of Wisconsin's submitted VOC rules?</HD>

        <P>EPA has reviewed Wisconsin's new and revised VOC rules for the source categories covered by the 2006 and 2007 CTGs, as well as corrections to rules that were required to be submitted to EPA on September 15, 2006, and proposes to find that these rules are consistent with the control measures, definitions, recordkeeping and test methods in these CTGs and applicable EPA RACT guidance at<E T="03">www.epa.gov/ttn/naaqs/ozone/ozonetech/#ref</E>. Therefore EPA is proposing to approve these rules as meeting the RACT requirements in the Act. A brief discussion of these rules follows.</P>
        <HD SOURCE="HD2">NR 400.02 (54m)—Definitions</HD>
        <P>A reference to digital printing has been added to Wisconsin's printing regulations. This definition of “digital printing” is approvable because it is a necessary update to the definition and accurately describes digital printing.</P>
        <HD SOURCE="HD2">NR 419.045—Industrial Wastewater Operations</HD>
        <P>This new rule applies to sources that have potential VOC emissions greater than or equal to 100 tons per year from industrial wastewater operations and any other non-CTG source category without a final CTG, such as batch operations. The VOC emissions from industrial wastewater collection and treatment processes evaporate from the waste stream when exposed to the ambient air. Consequently, the VOC RACT requirements consist of implementing technologies and work practice standards that combine to substantially suppress the exposure of the VOC-laden waste stream to the ambient air. More specifically, the requirements include:</P>

        <P>(1) Oil-water separators must be provided with either a floating cover<PRTPAGE P="10426"/>equipped with seals or a fixed cover, equipped with a closed vent system vented to a pollution control device;</P>
        <P>(2) Each surface impoundment must: (1) Be equipped with a cover or closed vent system which routs the VOCs to a control device or (2) be equipped with a floating flexible membrane cover;</P>
        <P>(3) All process drains must be equipped with (1) a water seal or a tightly fitting cap or plug or (2) a cover, and if the cover is vented, the vapors must be routed to a process or through a closed vent system to a control device; and</P>
        <P>(4) All junction boxes must be equipped with a tightly fitting solid cover or vented to a process or to a control device.</P>
        <P>Also, several definitions have been added to NR 419.02 to clarify the requirements in NR 419.045. These definitions are approvable because they are necessary for implementation of the wastewater rule and they accurately describe the terms that are being defined.</P>
        <P>This rule is based on and is consistent with EPA's 1992 draft CTG “Control of VOC Emissions from Industrial Wastewater” and EPA's 1994 “Industrial Wastewater Act.”</P>
        <P>
          <E T="03">NR 420.02 (31)</E>—The definition of “Reid vapor pressure” was amended to refer to the appropriate ASTM method.</P>
        <HD SOURCE="HD2">NR 421—Control of Organic Emissions From Chemical, Coatings, and Rubber Products Manufacturing</HD>
        <P>As discussed previously, Wisconsin is required to develop industrial cleaning solvent regulations consistent with EPA's 2006 Industrial Cleaning Solvent CTG. Some of these cleaning solvent requirements are contained within source category specific rules and some are contained within a general cleaning solvent regulation (NR 423.037).</P>
        <P>Wisconsin has adopted similar cleaning solvent requirements for synthetic resin manufacturing (NR 421.05) and coatings manufacturing (NR 421.06). These requirements are based on the (California) Bay Area Air Quality Management District's rules, which are referenced in EPA's CTG. These requirements apply to cleaning mixing vats, high dispersion mills, grinding mills, tote tanks and roller mills and consist of four options: (1) The solvent or solvent solution used must either contain less than 1.67 pounds VOC per gallon or have a VOC composite partial vapor pressure of less than or equal to 8 millimeters (mm) of mercury (Hg) and the solvent or solvent solution must be collected and stored in closed containers, or (2) several work practices must be implemented, including storing all VOC-containing cleaning materials in closed containers, or (3) the emissions from equipment cleaning must be collected and vented to an emission control system with an overall control efficiency of 80 percent or more on a mass basis, or (4) no more than 60 gallons of virgin solvent per month may be used. In addition, the owner or operator of a facility engaged in wipe cleaning may not use open containers for the storage of solvent or solvent solution used for cleaning or for the storage or disposal of any material impregnated with solvent or solvent solution used for cleaning. Records of the volume of virgin solvent used per month, VOC content in pounds of VOC per gallon or VOC composite pressure are required, if applicable to the option chosen for achieving compliance.</P>
        <P>In addition, accurate definitions of “tote tank” and “wipe cleaning” have been added to properly implement these rules.</P>
        <P>These cleaning solvent requirements are therefore approvable because they are consistent with EPA guidance and require adequate recordkeeping.</P>
        <P>Wisconsin has also adopted SOCMI air oxidation, distillation and reactor regulations in NR 421.07. NR 421.07(1)(a)(intro) specifies that these SOCMI requirements apply to any facility that is located in the Milwaukee-Racine and Sheboygan areas that operates a SOCMI air oxidation unit, distillation operation, or reactor process, as those activities are defined in NR 440.675(2)(c), 440.686(2)(e) and 440.705(2)(o), respectively, to produce any chemical as a product, coproduct, byproduct or intermediate that is listed in the CTGs for these categories.</P>
        <P>Affected facilities must comply with subsections (a), (b), or (c), from NR 440.675(3), NR 440.686(3), and NR 440.705(3) for each vent stream.</P>
        <P>(a) Reduce emissions of total organic compounds (TOC) (minus methane and ethane) by 98 weight-percent or to a TOC (minus methane and ethane) concentration of 20 parts per million by volume (ppmv) on a dry basis corrected to 3% oxygen, whichever is less stringent. If a boiler or process heater is used to comply with this paragraph, then the vent stream shall be introduced into the flame zone of the boiler or process heater; or</P>
        <P>(b) Combust the emissions in a flare that complies with the flare requirements in EPA's new source performance standards; or</P>
        <P>(c) Maintain a total resource effectiveness (TRE) index value greater than 1.0 without use of VOC emission control devices. TRE is a measure of the supplemental total resource requirement (or cost-effectiveness) per unit reduction of TOC associated with an individual vent stream, based on vent stream flow rate, emission rate of TOC, net heating value and corrosion properties, whether or not the vent stream is halogenated.</P>
        <P>Wisconsin's SOCMI applicability criteria and control requirements are consistent with EPA's CTGs and are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422—Control of Organic Compound Emissions From Surface Coating, Printing and Asphalt Surfacing Operations</HD>
        <P>
          <E T="03">NR 422.02—Definitions</E>—Wisconsin has added several definitions that are needed to properly implement its coating and printing rules. These definitions are necessary and accurate and are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422.05—Can Coating</HD>
        <P>Wisconsin has amended its can coating rules to incorporate the industrial solvent cleaning requirements from the industrial solvent cleaning CTG. These requirements apply to any can coating facility with VOC emissions from all industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>With the exception of cleaning of heptane-containing end sealant application equipment lines (at 5.8 pounds VOC/gallon) and cleaning of metal can identification ink application equipment (at 7.4 pounds VOC/gallon), cleaning solvent must not exceed a VOC content limit of 0.42 pounds VOC/gallon, as specified in the CTG. Based upon information submitted by the Can Manufacturers Institute, EPA agrees that the higher limits represent RACT. In lieu of complying with these VOC content limits, an alternative limit of 8 mm Hg (and 10 mm Hg for heptane-containing end sealant application equipment lines) is consistent with the CTG.</P>

        <P>The CTG also references the solvent cleaning requirements in the South Coast Air Quality Management District's (SCAQMD)—in the Los Angeles area—solvent cleaning rules. These rules are therefore considered to satisfy RACT. Wisconsin has included several cleaning device and method requirements as well as storage, disposal and transport requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's can coating rule are therefore approvable.<PRTPAGE P="10427"/>
        </P>
        <HD SOURCE="HD2">NR 422.06—Coil Coating</HD>
        <P>Wisconsin has amended its coil coating rules to incorporate the industrial solvent cleaning requirements from the industrial solvent cleaning CTG. These requirements apply to any coil coating facility with VOC emissions from all industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>As specified in the CTG, cleaning solvent must not exceed a VOC content limit of 0.42 pounds VOC/gallon. In lieu of complying with this VOC content limit, an alternative limit of 8 mm Hg is also consistent with the CTG.</P>
        <P>The CTG also references the solvent cleaning requirements in the SCAQMD solvent cleaning rules. Wisconsin has included several cleaning device and method requirements as well as storage, disposal and transport requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's coil coating rule are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422.075—Paper Coating—Part 2</HD>
        <P>This section has been added to be consistent with EPA's 2007 CTG for Paper, Film, and Foil Coatings. Wisconsin's VOC content limits are 0.20 pounds VOC/pound of solids applied for pressure sensitive tape and label surface coatings, and 0.40 pounds VOC/pound solids applied for all other paper coatings, which are consistent with the CTG. When compliance is achieved by the use of add-on control, the required overall control efficiency of 90 percent is also consistent with the CTG. Wisconsin's paper coating rule also contains work practices to minimize VOC emissions from mixing operations, storage tanks, and other containers, and handling operations for coatings, thinners, cleaning materials and waste materials. The requirements in this section are approvable because they are consistent with the subject CTG.</P>
        <HD SOURCE="HD2">NR 422.08—Fabric and Vinyl Coating</HD>
        <P>Wisconsin has amended its fabric and vinyl coating rules to incorporate the industrial solvent cleaning requirements from the industrial solvent cleaning CTG. These requirements apply to any fabric and vinyl coating facility with VOC emissions from all industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>As specified in the CTG, cleaning solvent must not exceed a VOC content limit of 0.42 pounds VOC/gallon. In lieu of complying with this VOC content limit, an alternative limit of 8 mm Hg is also consistent with the CTG.</P>
        <P>The CTG also references the solvent cleaning requirements in the SCAQMD solvent cleaning rules. Wisconsin has included several cleaning device and method requirements as well as storage, disposal and transport requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's fabric and vinyl coating rule are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422.083—Plastic Parts Coating</HD>
        <P>This section has been amended to include the cleaning material work practices in EPA's 2008 CTG for Miscellaneous Metals and Plastic Parts Coating. These work practices include storing all VOC-containing cleaning materials and shop towels used for cleaning in closed containers and minimizing emissions of VOC during cleaning of coating application, storage, mixing, and conveying equipment by ensuring that cleaning is performed without atomizing any VOC-containing cleaning material and that the used material is captured and contained. These work practices satisfy Wisconsin's requirement to have acceptable cleaning solvent requirements for plastic parts coating operations and are approvable.</P>
        <HD SOURCE="HD2">NR 422.09—Automobile and Light-Duty Truck Manufacturing</HD>
        <P>This section has been amended to include the cleaning material work practices in EPA's 2008 CTG for Automobile and Light-Duty Truck Assembly Coatings. A subject facility must develop and implement a work practice plan to minimize VOC emissions from cleaning and purging of equipment associated with all coating operations. This plan must specify practices and procedures for vehicle body wiping, coating line purging, flushing of coating systems, cleaning of spray booth grates, walls and equipment as well as external spray booth areas. These work practices satisfy Wisconsin's requirement to have acceptable cleaning solvent requirements for automobile and light-duty truck assembly coatings operations and are approvable.</P>
        <HD SOURCE="HD2">NR 422.095—Automobile Refinishing Operations</HD>
        <P>Wisconsin has amended its automobile refinishing operations rules to incorporate the industrial solvent cleaning requirements from the industrial solvent cleaning CTG. These requirements apply to any automobile refinishing facility with VOC emissions from all industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>As specified in the CTG, cleaning solvent must not exceed a VOC content limit of 0.42 pounds VOC/gallon. In lieu of complying with this VOC content limit, an alternative limit of 8 mm Hg is also consistent with the CTG.</P>
        <P>The CTG also references the solvent cleaning requirements in the SCAQMD solvent cleaning rules. Wisconsin has included several cleaning device and method requirements as well as storage, disposal and transport requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's automobile refinishing rule are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422.105Furniture Metal Coatings—Part 2</HD>

        <P>This section has been added to be consistent with EPA's 2007 CTG for Metal Furniture Coatings. Wisconsin's VOC content limits,<E T="03">e.g.</E>2.3 pounds VOC/gallon for general, one component coatings, are consistent with the CTG. When compliance is achieved by the use of add-on control, the required overall control efficiency of 90 percent is also consistent with the CTG. Wisconsin's metal furniture coating rule also contains work practices to minimize VOC emissions from mixing operations, storage tanks, and other containers, and handling operations for coatings, thinners, cleaning materials and waste materials. The requirements in this section are approvable because they are consistent with the subject CTG.</P>
        <HD SOURCE="HD2">NR 422.115Surface Coating of Large Appliance—Part 2</HD>

        <P>This section has been added to be consistent with EPA's 2007 CTG for Large Appliance Coatings. Wisconsin's VOC content limits,<E T="03">e.g.</E>2.3 pounds VOC/gallon for general, one component coatings, are consistent with the CTG. When compliance is achieved by the use of add-on control, the required overall control efficiency of 90 percent is also consistent with the CTG. Wisconsin's large appliance coating rule also contains work practices to minimize VOC emissions from mixing operations, storage tanks, and other containers, and handling operations for coatings, thinners, cleaning materials and waste materials. The requirements in this section are approvable because they are consistent with the subject CTG.<PRTPAGE P="10428"/>
        </P>
        <HD SOURCE="HD2">NR 422.125Wood Furniture Coating</HD>
        <P>Wisconsin's wood furniture coating rule has been amended to include cleaning material work practices that are consistent with EPA's 1996 CTG for the Control of VOC Emissions from Wood Furniture Manufacturing Operations. The 25 tons per year potential applicability cutoff has been revised to include the emissions from any related cleaning activities. These cleaning material work practices include storing VOC containing materials in closed containers, collecting all VOC-containing cleaning material used to clean spray guns and spray gun lines in a container and keeping the container covered except when adding or removing material, controlling emissions of VOC containing material from washoff operations and using strippable spray booth materials containing no more than 0.8 pounds of VOC per pound of solids. These work practices are consistent with the wood furniture CTG and are approvable.</P>
        <HD SOURCE="HD2">NR 422.127Use of Adhesives</HD>
        <P>Wisconsin's adhesives rule has been amended to include cleaning material work practices that are consistent with EPA's 2008 CTG for Miscellaneous Industrial Adhesives. These work practices include storing all VOC-containing cleaning materials in closed containers and minimizing emissions of VOC during cleaning of coating application, storage, mixing, and conveying equipment by ensuring that cleaning is performed without atomizing any VOC containing cleaning material and that the used material is captured and contained. An applicability cutoff of three tons on a 12 consecutive month rolling basis has also been added. These work practices are consistent with the miscellaneous industrial adhesives CTG and are approvable.</P>
        <HD SOURCE="HD2">NR 422.131Flat Wood Panel Coating—Part 2</HD>
        <P>This section has been added to be consistent with EPA's 2006 CTG for Flat Wood Paneling Coatings. Wisconsin's VOC content limit is 2.1 pounds VOC/gallon, which is consistent with the CTG. When compliance is achieved by the use of add-on control, the required overall control efficiency of 90 percent is also consistent with the CTG. Wisconsin's flat wood paneling rule also contains work practices to minimize VOC emissions from mixing operations, storage tanks, and other containers, and handling operations for coatings, thinners, cleaning materials and waste materials. The requirements in this section are approvable because they are consistent with the subject CTG.</P>
        <HD SOURCE="HD2">NR 422.14Graphic Arts</HD>
        <P>Wisconsin has amended its graphic arts rule to incorporate the industrial solvent cleaning requirements from the industrial solvent cleaning CTG. These requirements apply to any (non-flexible packaging) graphic arts facility with VOC emissions from all industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>As specified in the CTG, cleaning solvent must not exceed a VOC content limit of 0.42 pounds VOC/gallon—except for a 0.83 pounds VOC/gallon limit for cleaning of publication rotogravure ink application equipment and a 5.4 pounds VOC/gallon limit for cleaning of ultraviolet ink application equipment. The latter two limits are based on the SCAQMD's Rule 1171, discussed above. In lieu of complying with these VOC content limits, an alternative limit of 8 mm Hg is also consistent with the CTG.Wisconsin has included several cleaning device and method requirements as well as storage, disposal and transport requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's graphic arts rule are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422.141—Flexible Package Printing</HD>
        <P>These regulations have been revised based on and are consistent with EPA's 2006 CTG for Flexible Packaging Printing Materials. Subject printing lines may comply by meeting limits of 0.8 pounds VOC per pound of solids applied or 0.16 pounds VOC per pound of ink and coatings applied. Alternatively, compliance can be achieved by the use of add-on control achieving an overall reduction in VOM emissions ranging from 65 percent to 80 percent, depending upon when the printing line and control device were constructed. Work practices to reduce emissions from the use of VOM containing cleaning materials are also required. These work practices require that solvents used in cleaning operations be stored in covered containers and that VOC-containing cleaning material be conveyed in closed containers or pipes. The requirements in this section are approvable because they are consistent with the subject CTG.</P>
        <HD SOURCE="HD2">NR 422.143Lithographic Printing—Part 2</HD>
        <P>These regulations are based on and are consistent with EPA's 2006 CTG for Lithographic Printing. The control requirements for cleaning materials and fountain solutions apply if the combined emissions of VOC exceed three tons on a 12 consecutive month rolling basis. The add-on control requirements for heatset web offset printing operations apply if the potential emissions of VOC from a lithographic press dryer equal or exceed 25 tons per year. The fountain solution is subject to a percent VOC limit, based upon the temperature and whether or not the fountain solution contains alcohol. The cleaning materials (blanket or roller wash) must not exceed 30 percent by weight (nor equal or exceed 70 percent by weight for ultraviolet ink application equipment) VOC or the VOC composite partial pressure must be less than or equal to 10 mm Hg. An add-on control device on a subject heatset dryer must achieve a 90 percent or 95 percent reduction of VOC emissions, depending on the installation date of the add-on control device, or alternatively can comply by not exceeding an outlet concentration of 20 ppmv, as carbon. Recordkeeping requirements are also specified to establish compliance with the applicable limits. The requirements in this section are approvable because they are consistent with the subject CTG.</P>
        <HD SOURCE="HD2">NR 422.144Letterpress Printing</HD>
        <P>These regulations are based on and are consistent with EPA's 2006 CTG for Letterpress Printing. The control requirements for cleaning materials apply if the combined emissions of VOC exceed three tons on a 12 consecutive month rolling basis. The add-on control requirements for heatset web letterpress printing operations apply if the potential emissions of VOC from a lithographic press dryer equal or exceed 25 tons per year. The cleaning materials (blanket or roller wash) must not equal or exceed 70 percent by weight VOC or the VOC composite partial pressure must be less than 10 mm Hg. An add-on control device on a subject heatset dryer must achieve a 90 percent or 95 percent reduction of VOM emissions, depending on the installation date of the add-on control device. Recordkeeping requirements are also specified to establish compliance with the applicable limits. The requirements in this section are approvable because they are consistent with the subject CTG.</P>
        <HD SOURCE="HD2">NR 422.145Screen Printing</HD>

        <P>Wisconsin has amended its screen printing rules to incorporate the industrial solvent cleaning requirements in the CTG for Industrial Cleaning Solvents. These requirements apply to any screen printing facility with VOC<PRTPAGE P="10429"/>emissions from all industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>As specified in the CTG, cleaning solvent must not exceed a VOC content limit of 0.42 pounds VOC/gallon. However, the CTG also references the solvent cleaning requirements in the SCAQMD solvent cleaning rules. As a result of SCAQMD limits that were in place at the time that EPA's CTG was issued, Wisconsin has adopted 4.2 pounds VOC/gallon limits for repair or maintenance cleaning and cleaning of ink application equipment. In lieu of complying with these VOC content limits, an alternative limit of 8 mm Hg is also consistent with the CTG.</P>
        <P>Wisconsin has included several cleaning device and method requirements as well as storage and disposal requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's screen printing rule are therefore approvable.</P>
        <HD SOURCE="HD2">NR 422.15Miscellaneous Metal Parts and Products</HD>
        <P>This section has been amended to include the cleaning material work practices in EPA's 2008 CTG for Miscellaneous Metals and Plastic Parts Coating. These work practices include storing all VOC-containing cleaning materials and shop towels used for cleaning in closed containers and minimizing emissions of VOC during cleaning of coating application, storage, mixing, and conveying equipment by ensuring that cleaning is performed without atomizing any VOC-containing cleaning material and that the used material is captured and contained. These work practices satisfy Wisconsin's requirement to have acceptable cleaning solvent requirements for miscellaneous metal parts and products coating operations and are approvable.</P>
        <HD SOURCE="HD2">NR 422.15Fire Truck and Emergency Response Vehicle Manufacturing</HD>
        <P>This section (a subset of miscellaneous metals) has been amended to include the cleaning material work practices in EPA's 2008 CTG for Miscellaneous Metals and Plastic Parts Coating. These work practices include storing all VOC-containing cleaning materials and shop towels used for cleaning in closed containers and minimizing emissions of VOC during cleaning of coating application, storage, mixing, and conveying equipment by ensuring that cleaning is performed without atomizing any VOC-containing cleaning material and that the used material is captured and contained. These work practices satisfy Wisconsin's requirement to have acceptable cleaning solvent requirements for miscellaneous metal parts and products coating operations and are approvable.</P>
        <HD SOURCE="HD2">NR 423—Control of Organic Compound Emissions From Solvent Cleaning Operations</HD>
        <HD SOURCE="HD2">NR 423.02—Definitions</HD>
        <P>Wisconsin has added definitions of “Flexible magnetic data storage disc” and “Rigid magnetic data storage disc” because these terms are used in its industrial cleaning operations rule. These terms are accurately defined and are therefore approvable.</P>
        <HD SOURCE="HD2">NR 423.037Industrial Cleaning Operations—Part 2</HD>
        <P>Wisconsin has added an industrial solvent cleaning rule to incorporate the industrial solvent cleaning requirements, from the industrial solvent cleaning CTG, for those source categories whose rules do not contain such solvent cleaning requirements. These requirements apply to any such facility having actual VOC emissions from industrial cleaning operations which equal or exceed three tons per year on a 12 consecutive month rolling basis.</P>
        <P>As specified in the CTG, cleaning solvents must not exceed a VOC content limit of 0.42 pounds VOC/gallon as well as several specialty cleaning limits based on limits in SCAQMD's Rule 1171 that were in place at the time that EPA's CTG was issued. In lieu of complying with these VOC content limits, an alternative limit of 8 mm Hg is also consistent with the CTG.</P>
        <P>Wisconsin has included several cleaning device and method requirements as well as storage, disposal and transport requirements from the SCAQMD's Rule 1171. Wisconsin's rule also has adequate recordkeeping requirements. The additions to Wisconsin's graphic arts rule are therefore approvable.</P>
        <HD SOURCE="HD2">NR 439Reporting, Recordkeeping, Testing, Inspection and Determination of Compliance Requirements</HD>
        <HD SOURCE="HD2">NR 439.04Recordkeeping</HD>
        <P>Wisconsin amended its recordkeeping requirements for exempt sources (in NR 439.04(4)) to include the VOC emissions from cleaning operations, when necessary, in addition to the VOC emissions from coating or printing lines. Wisconsin also added a requirement that the maximum theoretical emissions be determined from the dryer of each heatset web lithographic or letterpress printing press. A requirement for detailed records of solvent use in solvent cleaning activities was also added.</P>
        <P>Wisconsin added monitoring and recordkeeping requirements (in NR 439.04(6)) for when add-on control equipment is used to comply with solvent cleaning requirements.</P>
        <P>The recordkeeping requirements in NR 439.04, as amended, along with the recordkeeping requirements in the coating and printing rules in NR 422 adequately establish the applicability and compliance requirements of the rules and are therefore approvable.</P>
        <HD SOURCE="HD2">NR 484—Incorporation by Reference</HD>
        <P>Wisconsin has also updated its Incorporation by Reference Chapter, including CFR appendices, National Technical Information Service, other government organizations, the American Society for Testing and Materials and other private organizations.</P>
        <HD SOURCE="HD1">V. Statutory and Executive Order Reviews</HD>
        <P>Under the Act, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the Act. Accordingly, this action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

        <P>• Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501<E T="03">et seq.</E>);</P>

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>

        <P>• Is not an economically significant regulatory action based on health or<PRTPAGE P="10430"/>safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Act; and</P>
        <P>• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).</P>
        <P>In addition, this rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the State, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Intergovernmental relations, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 9, 2012.</DATED>
          <NAME>Susan Hedman,</NAME>
          <TITLE>Regional Administrator, Region 5.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4171 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R09-OAR-2012-0140; FRL-9634-5]</DEPDOC>
        <SUBJECT>Revision to the South Coast Air Quality Management District Portion of the California State Implementation Plan, South Coast Rule 1315</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Environmental Protection Agency (EPA) is proposing to approve a State Implementation Plan (SIP) revision for the South Coast Air Quality Management District (District) portion of the California SIP. This SIP revision proposes to incorporate Rule 1315—Federal New Source Review Tracking System—into the District's SIP approved New Source Review (NSR) program to establish the procedures for demonstrating equivalency with Federal offset requirements by specifying how the District will track debits and credits in its Offset Accounts for Federal NSR Equivalency for specific Federal nonattainment pollutants and their precursors. The District's SIP approved NSR program contained in Regulation XIII allows the District to exempt certain sources from obtaining offsetting emission reductions on the open market and for the District to provide offsets for designated sources that qualify, such as essential public services. EPA's proposal to approve this SIP revision is based on finding that Rule 1315 provides an adequate system to demonstrate on an on-going basis that an equivalent amount of offsets are being provided pursuant to this rule as would otherwise be required by the Clean Air Act (CAA) and that the emission reductions the District is crediting and debiting in its Offset Accounts meet the requirements of the CAA and can be used to provide the offsets otherwise required for Federal major sources and modifications.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments on this Notice of Proposed Rulemaking (NPR) must be submitted no later than March 23, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit comments, identified by docket number EPA-R09-OAR-2012-0140, by one of the following methods:</P>
          <P>1.<E T="03">Federal eRulemaking Portal: www.regulations.gov.</E>Follow the on-line instructions.</P>
          <P>2.<E T="03">Email: r9airpermits@epa.gov.</E>
          </P>
          <P>3.<E T="03">Mail or deliver:</E>Gerardo Rios (Air-3), U.S. Environmental Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901.</P>
          <P>
            <E T="03">Instructions:</E>All comments will be included in the public docket without change and may be made available online at<E T="03">www.regulations.gov,</E>including any personal information provided, unless the comment includes Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Information that you consider CBI or otherwise protected should be clearly identified as such and should not be submitted through<E T="03">www.regulations.gov</E>or email.<E T="03">www.regulations.gov</E>is an “anonymous access” system, and EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send email directly to EPA, your email address will be automatically captured and included as part of the public comment. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment.</P>
          <P>
            <E T="03">Docket:</E>The index to the docket for this action is available electronically at<E T="03">www.regulations.gov</E>and in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While EPA generally lists the documents in the docket in the index, some information may not be specifically listed as a line item in the index or may be publicly available only at the hard copy location (e.g., voluminous records, copyrighted material), and some may not be publicly available in either location (e.g., CBI). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section. The hard copy materials constitute the docket.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Laura Yannayon, EPA Region IX, (415) 972-3534,<E T="03">yannayon.laura@epa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document, “we”, “us”, and “our” refer to EPA.</P>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Background</FP>
          <FP SOURCE="FP-2">II. Evaluation of SIP Revision</FP>
          <FP SOURCE="FP1-2">A. What is in the SIP revision?</FP>
          <FP SOURCE="FP1-2">B. What are the Federal Clean Air Act requirements?</FP>
          <FP SOURCE="FP1-2">C. How does the SIP revision comply with the Federal integrity criteria and demonstrate equivalency?</FP>
          <FP SOURCE="FP1-2">D. Do Rule 1315's offsets comply with the EPA's base year requirements?</FP>
          <FP SOURCE="FP1-2">E. CAA Section 110(l)</FP>
          <FP SOURCE="FP1-2">F. Public Comment and Final Action</FP>
          <FP SOURCE="FP-2">III. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background</HD>

        <P>EPA allows and encourages local authorities to tailor SIP programs, including new source review permitting programs, to account for that community's particular needs provided that the SIP is not less stringent than the Act's requirements. See generally CAA Section 116, 42 U.S.C. 7416;<E T="03">Train</E>v.<E T="03">Natural Res. Defense Council,</E>421 U.S. 60, 79 (1975);<E T="03">Union Electric Co.</E>v.<E T="03">EPA,</E>427 U.S. 246, 250 (1976). The District's nonattainment permitting rules contained in District Regulation XIII went through numerous public workshops and stakeholder meetings prior to adoption in December 1995. The California Air Resources Board (CARB) submitted Regulation XIII along with supporting regulations and documents to EPA Region 9 on August 28, 1996. On December 4, 1996, EPA Region 9 published a direct final approval of Regulation XIII in the<E T="04">Federal Register</E>. 61 FR 64291 (December 4, 1996) (Codified at 40 CFR 52.220(c)(240)(i)(<E T="03">1</E>)).</P>

        <P>When EPA approved Regulation XIII, we noted that Rule 1304 exempted certain major sources from obtaining offsets and Rule 1309.1 allowed the<PRTPAGE P="10431"/>District to provide offsets for specific “priority” projects. We approved these rules because the District committed to demonstrating on an annual basis that it was providing an amount of offsets that was equivalent to the amount required to offset Federal new and modified major sources.<SU>1</SU>
          <FTREF/>EPA did not require the District to codify its internal NSR tracking system in rule language as a condition of full approval of Regulation XIII. From 1997 through 2005, the District submitted annual equivalency reports to its Board for approval and provided copies to EPA Region 9.<SU>2</SU>
          <FTREF/>The District's Board meetings at which the annual reports were approved were open to the public.</P>
        <FTNT>
          <P>
            <SU>1</SU>Environmental Protection Agency, Region IX Air &amp; Toxics Division Technical Support Document for EPA's Notice of Final Rulemaking for the California State Implementation Plan South Coast Air Quality Management District New Source Review by Gerardo C. Rios, October 24, 1996 (TSD).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>Annual Equivalency Reports approved by the South Coast AQMD Board, dated February 14, 1997, March 13, 1998, April 9, 1999, August 18, 2000, November 9, 2001, August 2, 2002, and April 2, 2004.</P>
        </FTNT>
        <P>EPA informed the District beginning in 2002 that if it was significantly expanding the sources that were allowed to obtain offsets from the internal NSR tracking system through a new offset budget rule (Rule 1309.2—Offset Budget), the tracking system's transparency should be improved. Proposed SCAQMD NSR Offset Tracking System, Oct. 14, 2005, (2005 Proposed Tracking System) at p.1. In 2004-2005, the District drafted regulatory language, now revised and adopted as Rule 1315, to establish NSR program equivalency with the Federal NSR offset requirements for major sources and demonstrate annually that the District provided sufficient offsets for Federal major sources and modifications that were (1) otherwise exempt from offset requirements under Rule 1304 or (2) allocated offsets pursuant to Rule 1309.1. Proposed Rule 1315(a), Preliminary Draft, Adopted Sept. 8, 2006.</P>
        <P>In our discussions during 2002-2003, EPA also noted that the District's use of the negative NSR balances and other pre-1990 era offsets to fund the NSR tracking system would be inconsistent with Federal requirements unless the District had sufficient records for those offsets. Staff Report: Proposed Rule 1315—Federal New Source Review Tracking System, dated January 7, 2011, at pp. 6-7 (2011 Staff Report); 2005 Proposed Tracking System at pp. 1-2. The District concluded that it did not readily have sufficient documentation for many of the offsets it had collected from the negative NSR balances and other pre-1990 era offsets. Proposed SCAMQD NSR Offset Tracking System, Oct. 14, 2005 at p. 2.</P>
        <P>The District responded to EPA's request by eliminating any offsets originating before 1990 without documentation on October 14, 2005. 2005 Proposed Tracking System, at pp. 12-13. Unlike many areas, the District requires almost all Federal minor sources to obtain a permit and offset any emission increases up to the sources' permitted emissions level. Rule 1303(b)(2).</P>

        <P>The adjustments the District made in October 2005 to the existing NSR tracking system significantly decreased the balance of available offsets for most pollutants. For example, this adjustment reduced the internal NSR tracking system balance for PM<E T="52">10</E>(particulate matter with an aerodynamic diameter less than or equal to 10 micrometers) by 92% (from 34.5 to 2.67 tons per day). 2011 Staff Report, at p. 9; 2005 Proposed Tracking System, at Table 1. The District informed EPA Region 9 that it had previously credited the offsets from minor orphan shutdowns for State purposes. The District had not needed to credit those minor orphan shutdowns for its Federal accounts because the offsets from the negative NSR balances were far greater than the amount needed to demonstrate equivalency with Federal offset requirements for Rule 1304 exempt sources and Rule 1309.1 priority reserve sources. (2005 Proposed Tracking System), at p. 3.</P>
        <P>EPA and the District had further discussions about the changes to the NSR tracking system resulting in a revised letter to EPA dated February 23, 2006. SCAQMD's Revised NSR Offset Tracking System, Feb. 23, 2006. The revisions primarily resolved issues EPA raised regarding the District's method of reporting the offset account balances and the remedy if a shortfall was projected. SCAQMD Letter from Dr. Barry Wallerstein to Deborah Jordan, Feb. 24, 2006. EPA responded by letter on April 11, 2006, indicating that the District's proposed NSR Offset Tracking System funded with emission reductions from minor and major orphan shutdowns and other sources (i.e. credits to the system) appeared to be sufficient for EPA to propose approval of Rule 1315. EPA Letter from Deborah Jordan to Dr. Barry Wallerstein, April 11, 2006. Both the October 2005 Proposed SCAQMD NSR Offset Tracking System and February 23, 2006 Revised NSR Offset Tracking System appended tables prepared by the SCAQMD called the “Federal Running Balances.” Revised NSR Offset Tracking System, Feb. 23, 2006, Attachment 1. The Federal Running Balances table contains details concerning the credits added and debits subtracted from the NSR offset tracking system.</P>
        <P>The District adopted Rule 1315's regulatory language codifying how it will account for, or “track”, the emission reductions that it adds into its Offset Accounts as credits and those which it subtracts as debits to provide offsets for the construction of certain Federal major sources or modifications exempted from offset requirements pursuant to Rule 1304 or for which the District provided offsets pursuant to Rule 1309.1. SCAQMD Governing Board Resolution for the Re-adoption of Rule 1315—Federal New Source Review Tracking System, dated Feb. 4, 2011. EPA is now proposing to approve Rule 1315 as a SIP revision.</P>
        <HD SOURCE="HD1">II. Evaluation of SIP Revision</HD>
        <HD SOURCE="HD2">A. What is in the SIP revision?</HD>
        <P>Rule 1315 which the District, through CARB, submitted to EPA consists of the regulatory text the District adopted on February 4, 2011, along with supporting documentation including a Staff Report dated January 7, 2011. EPA received the SIP submittal for Rule 1315 from CARB on March 2, 2011, and a supplemental submittal on February 7, 2012. On March 25, 2011, we found that the submittal of District Rule 1315 met the completeness criteria in 40 CFR part 51, appendix V, which must be met before formal EPA review.</P>

        <P>The Rule contains a section describing its purpose and a definitions section. Rule 1315(a) and (b). Rule 1315(c), Offset Accounts for Federal NSR Equivalency, contains provisions for quantifying, crediting and debiting the offset accounts. Rule 1315(c)(1), District Offset Accounts for Federal Nonattainment Air Contaminants, provides that all pre-1990 offsets were removed at the end of 2005 and sets forth the initial District Offset Account Balances in Table A. Rule 1315(c)(2) provides that the District shall debit its Offsets Accounts for emissions increases at Federal new and modified major sources that are not required to provide Emission Reduction Credits (ERCs) based on Rules 1304 (Exemptions) and 1309.1 (Priority Reserve). Rule 1315(c)(3)(A) contains a list of the emission reductions the District can add to its Offset Accounts and 1315(c)(3)(B) establishes how the District will quantify the actual emissions reductions for that list. Rule 1315(c)(4) specifies how the District will discount each Offset Account annually to ensure the reductions will be surplus to all CAA requirements at the time an offset is<PRTPAGE P="10432"/>used. Rule 1315(c)(5) specifies the steps the District will take to calculate annually a Preliminary Determination of Equivalence and Final Determination of Equivalence. In Rule 1315(c)(6), the District sets forth how the credits and debits meet each of the Federal requirements for offsets. The remaining provisions in Rule 1315 establish the methods for reporting the annual Preliminary and Final Equivalency demonstrations, projecting future Offset Account balances and methods to remedy any balance shortfalls. Rule 1315 provides that it will expire on January 1, 2031.</P>
        <HD SOURCE="HD2">B. What are the Federal Clean Air Act requirements?</HD>

        <P>The South Coast Air Basin is an extreme nonattainment area for ozone and a serious nonattainment area for PM<E T="52">10.</E>The Coachella Valley Air Basin is a severe nonattainment area for ozone and a serious nonattainment area for PM<E T="52">10.</E>Oxides of nitrogen (NO<E T="52">X</E>) and volatile organic compounds (VOC) are both ozone precursors and are therefore treated as ozone nonattainment pollutants. Sulfur dioxide (SO<E T="52">2</E>) emissions are PM<E T="52">10</E>precursors and are therefore also treated as a PM<E T="52">10</E>nonattainment pollutant. While the District is classified as nonattainment for PM<E T="52">2.5</E>(particulate matter with an aerodynamic diameter less than or equal to 2.5 micrometers) and portions of the District as nonattainment for lead, Rule 1315 does not apply to these pollutants. The District was redesignated to attainment for carbon monoxide (CO) on May 11, 2007 (72 FR 26718), but CO is included in the tracking system because of its past nonattainment status.</P>

        <P>As required by CAA § 110(a)(2)(C), SIPs are required to include provisions to comply with CAA Part D for nonattainment pollutants. Among the Part D requirements, § 173(a)(1)(A) requires new and modified major stationary sources to provide offsetting emission reductions. Section 173(c) requires the offsetting emission reductions to be quantifiable, surplus, permanent, and enforceable. See 40 CFR 51.165(a)(3)(ii)(c)(<E T="03">i</E>); 40 CFR part 51, appendix S. This proposal will refer to those requirements as the “federal integrity criteria”.</P>
        <P>EPA is proposing to approve Rule 1315 because the rule ensures that the emission reductions in the District's Offset Accounts meet the Federal integrity criteria. See Rule 1315(c). Rule 1315 also demonstrates that the District's offset tracking system provides an equivalent quantity of offsets for those major sources and modifications that are not required to provide such offsets pursuant to District Rules 1304 and 1309.1. EPA's analysis of how the credits and debits tracked in Rule 1315 meet the Federal integrity criteria is summarized below and set forth in more detail in the Technical Support Document (TSD).</P>
        <HD SOURCE="HD2">C. How does the SIP revision comply with the Federal integrity criteria and demonstrate equivalency?</HD>
        <HD SOURCE="HD3">1. The Offsets Credited and Debited Through Rule 1315 Are Quantifiable</HD>
        <P>EPA is proposing to approve Rule 1315 because the emission reductions that the District credits and debits to its Offset Accounts meet the requirement to be quantifiable emissions reductions. The District meets this requirement by demonstrating that the credits and debits are actual and quantifiable reductions of emissions. To quantify the reductions of emissions from orphan shutdown sources, the District determines the permitted emissions level and then applies an 80% actual emissions factor. Rule 1315(c)(3)(B)(i); Staff Report at p. 17 (“AQMD proposes to use an average discount factor to account for the difference between potential and actual emissions.”). The vast majority of emission reductions credited to the Offset Accounts are from orphan shutdowns, which occur when the owner/operator of a stationary source that has been shut down does not apply for an Emission Reduction Credit (ERC) under Rule 1309 (Emission Reduction Credits and Short Term Credits). Staff Report at p. 17. The information that is available to the District when a source is shut down and the operating permit is inactivated are the source's permitted emissions, which represent its potential to emit rather than its actual emissions. Under Rule 1315, the District makes an adjustment to the permitted (i.e. potential) emissions by applying an 80% actual emissions factor before crediting these emissions to the Offset Accounts. See Rule 1315(c)(3)(B)(i); Staff Report at p. 17.</P>

        <P>The District has justified its determination that reducing the permitted (i.e. potential) emissions by 20% and crediting the remaining 80% is an adequate representation of actual emissions based on several considerations. The District has historically implemented an 80% actual emissions factor for estimating actual emission reductions in its Regulation XIII annual reports following concurrence by the California Air Resources Board. Staff Report at 17. The District also provided a Federal Reserve Statistical Release Report examining historical industrial production and capacity utilization. While certain short term cycles may reflect greater or lower utilization, the District's justification for selecting an 80% factor over the long term is supported by this data. Id. The District's method of quantifying actual emission reductions is also supported by the inherent structure of the District's NSR program. Every stationary source that is operated in the District with permitted emissions exceeding 4 tons per year (tpy) of ozone precursors or PM<E T="52">10</E>(including precursors) is required to obtain ERCs to offset the entire amount of its permitted emissions. The cost of obtaining the ERCs to offset permitted emissions provides “a strong incentive to keep [each source's] potential emissions in line with actual emissions during times of high production”. Staff Report at 17.</P>
        <P>For exempt and priority reserve sources that obtain their offsets from the District, the District limits the amount of offsets provided by including permit conditions that limit operations to actual operating scenarios. The District has shown that fifty to eighty percent of the very small exempt sources (emitting &lt; 4 tpy of most pollutants) have permits emissions limits that are less than one-half of the exemption threshold (i.e. permitted emissions are less than 2 tpy). Table 5 of Staff Report, p 18. This information supports finding that the District is permitting sources at close to the source's actual emissions and that an 80% actual emissions factor adequately reflects actual reductions from orphan shutdown sources.</P>
        <P>For the reasons provided by the District, EPA is proposing to approve Rule 1315 as ensuring that the emission reductions it credits to its Offset Accounts pursuant to Rule 1315(c)(3)(B)(i) meet the requirement to be actual emission reductions based on crediting only 80% of permitted emission levels.</P>
        <HD SOURCE="HD3">2. The Offsets Credited and Debited Through Rule 1315 Are Surplus</HD>

        <P>Rule 1315(c)(4) ensures that any offsets debited from the District Offset Accounts are properly adjusted to be surplus at the time they are used as required by the Federal integrity criteria. Specifically, the rule requires that the balance of credits in the Offset Accounts for each pollutant be reduced annually to account for any newly adopted rules that control these pollutants, ensuring that the debits used as offsets are surplus at the time they are used. Rule 1315(c)(4) (providing that the District discount the Offset Account balances annually “based on the percentage reduction in overall<PRTPAGE P="10433"/>permitted emissions projected to be achieved as a result of implementation of control requirements that became effective during the previous calendar year for each specific nonattainment contaminant within the District.”) EPA is proposing to find that Rule 1315 ensures that the offsets the District debits from its Offset Accounts meet the Federal integrity criterion to be surplus.</P>
        <HD SOURCE="HD3">3. The Offsets Debited From the District Offset Accounts Are Permanent</HD>
        <P>The emission reductions credited to the District's Offset Accounts are all permanent reductions at the time they are credited to the accounts because the permit for the emission source has either been retired or revised to include conditions that limit the emissions to levels lower than they are otherwise required to be limited through the use of federally enforceable permit conditions. The debits are permanent because Rule 1315 requires the District to subtract those offsets from the District's Offset Account balances. Rule 1315(c)(5)(B). The District must provide its Preliminary and Final Determinations of Equivalency annually to ensure there is a positive balance in each Offset Account. Rule 1315 also contains an equivalency backstop provision if any Offset Account has a shortfall. Rule 1315(f). EPA is proposing to find that Rule 1315 assures that the emission reductions in the District's Offset Accounts meet the requirement for permanent reductions.</P>
        <HD SOURCE="HD3">4. The Offsets Credited and Debited From the District Offset Accounts Are Enforceable</HD>
        <P>The emission reductions credited to the District's Offset Accounts for orphan shutdowns or orphan reductions are all enforceable reductions at the time they are credited to the accounts because the permit for the emission source has either been retired, which means the source is no longer allowed to operate/emit those pollutants, or revised to include conditions that limit the emissions to levels lower than they are otherwise required to be limited through the use of federally enforceable permit conditions. This ensures that the emissions will be permanently retired or reduced. Rule 1315(b)(4) &amp; (5) and (c)(3)(A)(i) &amp; (ii). For each of the other types of credits listed in Rule 1315 (c)(3)(A), the credits are based on ERCs that have been generated pursuant to Rule 1309, which also requires that the emission reductions meet each of the Federal integrity criterion, including the requirement to be enforceable emission reductions. Therefore, EPA is proposing to find Rule 1315 meets the Federal integrity criterion for enforceable reductions.</P>
        <HD SOURCE="HD2">D. Do Rule 1315's offsets comply with the EPA's base year requirements?</HD>
        <P>40 CFR 51.165(a)(3)(i)(C) provides:</P>
        
        <EXTRACT>
          <P>Emissions reductions achieved by shutting down an existing emission unit or curtailing production or operating hours may be generally credited for offsets if * * *. (ii) [t]he shutdown or curtailment occurred after the last day of the base year for the SIP planning process. For purposes of this paragraph, a reviewing authority may choose to consider a prior shutdown or curtailment to have occurred after the last day of the base year if the projected emissions inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units.</P>
        </EXTRACT>
        
        <FP>See also 40 CFR part 50, appendix S, IV.</FP>
        

        <P>Rule 1315 is being submitted by the District to demonstrate equivalency with the Part D requirements for ozone and PM<E T="52">10</E>(and their precursor emissions). To evaluate Rule 1315's compliance with the base year requirement for using offsets from emissions units being shut down or curtailed, EPA has determined that the most appropriate attainment demonstrations to review are the District's approved PM<E T="52">10</E>and 8-hour ozone Plans. Approval and Promulgation of [SIPs] for Air Quality Planning Purposes; California—South Coast and Coachella, 70 FR 69081 (Nov. 14, 2005) (2003 Plan); Approval of Air Quality Implementation Plans; California; South Coast; Attainment Plan for 1997 8-hour Ozone Standards, EPA-R09-OAR-2011-0622 (Signed Dec. 15, 2011) (2007 Plan). The District's PM<E T="52">10</E>Plan was adopted in 2003 and relies on a 1997 base year emission inventory. 2003 Plans, Chapter 3 &amp; Appendix III. For ozone, the Plan was adopted in 2007 and relies on a 2002 base year emission inventory. 2007 Plan, Chapter 3 &amp; Appendix III.</P>

        <P>In accordance with the base year requirements specified in 40 CFR 51.165, the District estimated that 3.1 tons per day (tpd) of pre-2002 base year VOC emission reductions may be needed to satisfy offset demand. 2007 Plan Appendix III. For ozone precursors, the District added 27 and 2 tons per day for VOC and NO<E T="52">X</E>, respectively, as growth.<SU>3</SU>

          <FTREF/>This amount includes the 3.1 tpd of pre-2002 base year VOC emission reductions. While this is not the total amount of pre-2002 base year emission reductions available as debits pursuant to Rule 1315, the District has demonstrated that this amount represents the highest amount of pre-2002 credits that are expected to be used as offsets prior to attainment of the ozone standard. 2007 Plan Appendix III, pgs 28-34. The District used a similar approach for the 2003 Plan as it pertains to PM<E T="52">10</E>and SO<E T="52">X</E>emissions. See the TSD for additional details. This approach is consistent with EPA guidance that states must include pre-base year credits to the “extent that the State expects that such credits will be used for offsets * * *”. 57 FR 13498</P>
        <FTNT>
          <P>
            <SU>3</SU>See 2007 Plan Appendix III, pgs 28-34, Tables 2-8 and 2-12. For Table 2.8, the District provided EPA with the point and area source data used to generate the summary data. EPA used this data to determine the amount of emission due to growth at facilities subject to NSR offset requirements.</P>
        </FTNT>
        <P>Therefore, even if the District Offset Accounts rely on pre-base year emission reductions as offsets, the District's Plans have adequately added pre-base year emissions explicitly into the appropriate projected planning inventories. For these reasons, EPA is proposing to approve Rule 1315.</P>
        <HD SOURCE="HD2">E. CAA Section 110(l)</HD>

        <P>Under section 110(l) of the CAA, EPA may not approve any SIP revision that would interfere with attainment, reasonable further progress (RFP) or any other CAA requirement. EPA's incorporation of Rule 1315 into the SIP will not interfere with attainment or RFP because the rule provides a regulatory mechanism setting forth the internal offset accounting system that the District has been relying on. In addition, the District does not rely on the offsets in the District's Offset Accounts for attainment or RFP in the District's most recent attainment demonstrations for ozone or PM<E T="52">10</E>.</P>
        <P>This SIP revision also does not interfere with any other CAA requirement. Rule 1315 provides regulatory language detailing how the District will quantify and add credits and subtract debits from its Offset Accounts. Our proposal to approve Rule l315 is based on finding the rule ensures the credits and debits meet the Federal integrity criteria and that the District system overall is equivalent to the requirements of Section 173.</P>
        <HD SOURCE="HD2">F. Public Comment and Final Action</HD>
        <P>Because EPA has determined Rule 1315 fulfills all relevant requirements, we are proposing to fully approve it as described in section 110(k)(3) of the Act. We will accept comments from the public on this proposal for the next 30 days. After considering the information and views submitted to us during the comment period, we will take final action on this SIP submittal.</P>

        <P>Rule 1315 has been under development at the District and the<PRTPAGE P="10434"/>interested public has been involved in its development for the last several years, including state litigation concerning the Rule. Therefore, EPA does not anticipate extending the public comment period beyond 30 days absent extraordinary or compelling circumstances.</P>
        <HD SOURCE="HD1">III. Statutory and Executive Order Reviews</HD>
        <P>Under the Clean Air Act, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve State choices, provided that they meet the criteria of the Clean Air Act. Accordingly, this proposed action merely approves State law as meeting Federal requirements and does not impose additional requirements beyond those imposed by State law. For that reason, this proposed action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

        <P>• Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501<E T="03">et seq.</E>);</P>

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
        <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean Air Act; and</P>
        <P>• Does not provide EPA with the discretionary authority to address disproportionate human health or environmental effects with practical, appropriate, and legally permissible methods under Executive Order 12898 (59 FR 7629, February 16, 1994).</P>
        <P>In addition, this proposed rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the State, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Air pollution control, Environmental protection, Intergovernmental relations, Particulate matter, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>42 U.S.C. 7401<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: February 9, 2012.</DATED>
          <NAME>Jared Blumenfeld,</NAME>
          <TITLE>Regional Administrator, Region IX.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4172 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 98</CFR>
        <DEPDOC>[EPA-HQ-OAR-2011-0028; FRL-9633-6]</DEPDOC>
        <RIN>RIN 2060-AQ70</RIN>
        <SUBJECT>Mandatory Reporting of Greenhouse Gases Rule: Confidentiality Determinations and Best Available Monitoring Methods Provisions</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This action re-proposes confidentiality determinations for the data elements in subpart I, Electronics Manufacturing source category, of the Mandatory Reporting of Greenhouse Gases Rule. On July 7, 2010, the EPA proposed confidentiality determinations for then-proposed subpart I data elements and is now issuing this re-proposal due to significant changes to certain data elements in the final subpart I reporting requirements. In addition, the EPA is proposing amendments to subpart I regarding the calculation and reporting of emissions from facilities that use best available monitoring methods. Proposed amendments would remove the obligation to recalculate and resubmit emission estimates for the period during which the facility used best available monitoring methods after the facility has begun using all applicable monitoring methods of subpart I.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Comments.</E>Comments must be received on or before March 23, 2012 unless a public hearing is requested by February 29, 2012. If a timely hearing request is submitted, we must receive written comments on or before April 9, 2012.</P>
          <P>
            <E T="03">Public Hearing.</E>The EPA does not plan to conduct a public hearing unless requested. To request a hearing, please contact the person listed in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section by February 29, 2012. Upon such request, the EPA will hold the hearing on March 8, 2012 in the Washington, DC area starting at 9 a.m., local time. EPA will provide further information about the hearing on its Web page if a hearing is requested.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID No. EPA-HQ-OAR-2011-0028, by one of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>Follow the online instructions for submitting comments.</P>
          <P>•<E T="03">Email:</E>
            <E T="03">GHGReportingCBI@epa.gov</E>.</P>
          <P>•<E T="03">Fax:</E>(202) 566-1741.</P>
          <P>•<E T="03">Mail:</E>Environmental Protection Agency, EPA Docket Center (EPA/DC), Mailcode 6102T, Attention Docket ID No. EPA-HQ-OAR-2011-0028, 1200 Pennsylvania Avenue NW., Washington, DC 20460.</P>
          <P>•<E T="03">Hand Delivery:</E>EPA Docket Center, Public Reading Room, EPA West Building, Room 3334, 1301 Constitution Avenue NW., Washington, DC 20004. Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-HQ-OAR-2011-0028. The EPA's policy is that all comments received will be included in the public docket without change and may be made available online at<E T="03">http://www.regulations.gov,</E>including any personal information provided, unless the comment includes information claimed to be confidential business information (CBI) or other information whose disclosure is restricted by statute.</P>

          <P>Do not submit information that you consider to be CBI or otherwise protected through<E T="03">http://www.regulations.gov</E>or email. Send or deliver information identified as CBI to only the mail or hand/courier delivery address listed above, attention: Docket ID No. EPA-HQ-OAR-2011-0028. The<E T="03">http://www.regulations.gov</E>Web site is an “anonymous access” system, which means the EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email,<PRTPAGE P="10435"/>comment directly to the EPA without going through<E T="03">http://www.regulations.gov,</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, the EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If the EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, the EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses.</P>
          <P>
            <E T="03">Docket:</E>All documents in the docket are listed in the<E T="03">http://www.regulations.gov</E>index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in<E T="03">http://www.regulations.gov</E>or in hard copy at the Air Docket, EPA/DC, EPA West, Room B102, 1301 Constitution Ave. NW., Washington, DC. This Docket Facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744, and the telephone number for the Air Docket is (202) 566-1742.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Carole Cook, Climate Change Division, Office of Atmospheric Programs (MC-6207J), Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number: (202) 343-9263; fax number: (202) 343-2342; email address:<E T="03">GHGReportingRule@epa.gov.</E>For technical information, contact the Greenhouse Gas Reporting Rule Hotline at:<E T="03">http://www.epa.gov/climatechange/emissions/ghgrule_contactus.htm.</E>Alternatively, contact Carole Cook at (202) 343-9263.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>
          <E T="03">Additional information on submitting comments:</E>To expedite review of your comments by agency staff, you are encouraged to send a separate copy of your comments, in addition to the copy you submit to the official docket, to Carole Cook, U.S. EPA, Office of Atmospheric Programs, Climate Change Division, Mail Code 6207-J, Washington, DC 20460, telephone (202) 343-9263, email address:<E T="03">GHGReportingRule@epa.gov.</E>
        </P>
        <P>
          <E T="03">Worldwide Web (WWW).</E>In addition to being available in the docket, an electronic copy of this proposal, memoranda to the docket, and all other related information will also be available through the WWW on the EPA's Greenhouse Gas Reporting Rule Web site at<E T="03">http://www.epa.gov/climatechange/.</E>
        </P>
        <P>
          <E T="03">Acronyms and Abbreviations.</E>The following acronyms and abbreviations are used in this document.</P>
        
        <EXTRACT>
          <FP SOURCE="FP-1">BAMMbest available monitoring methods</FP>
          <FP SOURCE="FP-1">CAAClean Air Act</FP>
          <FP SOURCE="FP-1">CO<E T="52">2</E>carbon dioxide</FP>
          <FP SOURCE="FP-1">CBIconfidential business information</FP>
          <FP SOURCE="FP-1">CFRCode of Federal Regulations</FP>
          <FP SOURCE="FP-1">DREDestruction or Removal Efficiency</FP>
          <FP SOURCE="FP-1">EPAU.S. Environmental Protection Agency</FP>
          <FP SOURCE="FP-1">F-GHGfluorinated greenhouse gas</FP>
          <FP SOURCE="FP-1">GHGgreenhouse gas</FP>
          <FP SOURCE="FP-1">HTFheat transfer fluid</FP>
          <FP SOURCE="FP-1">mtCO<E T="52">2</E>emetric ton carbon dioxide equivalent</FP>
          <FP SOURCE="FP-1">N<E T="52">2</E>Onitrous oxide</FP>
          <FP SOURCE="FP-1">NTTAANational Technology Transfer and Advancement Act of 1995</FP>
          <FP SOURCE="FP-1">OMBOffice of Management &amp; Budget</FP>
          <FP SOURCE="FP-1">RFARegulatory Flexibility Act</FP>
          <FP SOURCE="FP-1">RSASTPRandom Sampling Abatement System Testing Program</FP>
          <FP SOURCE="FP-1">UMRAUnfunded Mandates Reform Act of 1995</FP>
          <FP SOURCE="FP-1">U.S.United States</FP>
          <FP SOURCE="FP-1">WWWWorldwide Web</FP>
        </EXTRACT>
        
        <P>
          <E T="03">Organization of This Document.</E>The following outline is provided to aid in locating information in this preamble. Section I of this preamble provides general information on the Greenhouse Gas Reporting Program and preparing comments on this action. Sections II and III discuss the CBI re-proposal, and Section IV discusses the proposed amendments to the best available monitoring provisions. Section V discusses statutes and executive orders applicable to this action.</P>
        
        <EXTRACT>
          <FP SOURCE="FP-2">I. General Information</FP>
          <FP SOURCE="FP1-2">A. What is the purpose of this action?</FP>
          <FP SOURCE="FP1-2">B. Does this action apply to me?</FP>
          <FP SOURCE="FP1-2">C. Legal Authority</FP>
          <FP SOURCE="FP1-2">D. What should I consider as I prepare my comments to the EPA?</FP>
          <FP SOURCE="FP-2">II. Background and General Rationale on CBI Re-Proposal</FP>
          <FP SOURCE="FP1-2">A. Background on CBI Re-Proposal</FP>
          <FP SOURCE="FP1-2">B. What is the rationale for re-proposing the CBI determinations for subpart I?</FP>
          <FP SOURCE="FP1-2">C. How does the Subpart I Heat Transfer Fluid Provisions final rule affect the CBI re-proposal?</FP>
          <FP SOURCE="FP-2">III. Re-Proposal of CBI Determinations for Subpart I</FP>
          <FP SOURCE="FP1-2">A. Overview</FP>
          <FP SOURCE="FP1-2">B. Request for Comments</FP>
          <FP SOURCE="FP1-2">C. Approach to Making Confidentiality Determinations</FP>
          <FP SOURCE="FP1-2">D. Proposed Confidentiality Determinations for Individual Data Elements in Two Data Categories</FP>
          <FP SOURCE="FP1-2">E. Commenting on the Proposed Confidentiality Determinations in Two Direct Emitter Categories</FP>
          <FP SOURCE="FP-2">IV. Background and Rationale for the Proposed Amendments to the Best Available Monitoring Method Provisions</FP>
          <FP SOURCE="FP-2">V. Statutory and Executive Order Reviews</FP>
          <FP SOURCE="FP1-2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review</FP>
          <FP SOURCE="FP1-2">B. Paperwork Reduction Act</FP>
          <FP SOURCE="FP1-2">C. Regulatory Flexibility Act (RFA)</FP>
          <FP SOURCE="FP1-2">D. Unfunded Mandates Reform Act (UMRA)</FP>
          <FP SOURCE="FP1-2">E. Executive Order 13132: Federalism</FP>
          <FP SOURCE="FP1-2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</FP>
          <FP SOURCE="FP1-2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</FP>
          <FP SOURCE="FP1-2">H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use</FP>
          <FP SOURCE="FP1-2">I. National Technology Transfer and Advancement Act</FP>
          <FP SOURCE="FP1-2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. General Information</HD>
        <HD SOURCE="HD2">A. What is the purpose of this action?</HD>

        <P>The EPA is re-proposing confidentiality determinations for the data elements in subpart I of 40 CFR part 98 of the Mandatory Reporting of Greenhouse Gases Rule (hereinafter referred to as “Part 98”). Subpart I of Part 98 requires monitoring and reporting of greenhouse gas (GHG) emissions from electronics manufacturing. The electronics manufacturing source category (hereinafter referred to as “subpart I”) includes facilities that have annual emissions equal to or greater than 25,000 mtCO<E T="52">2</E>e.</P>
        <P>The proposed confidentiality determinations in this notice cover all of the data elements that are currently in subpart I except for those that are in the “Inputs to Emission Equations” data category. The covered data elements and their proposed data category assignments are listed by data category in the memorandum entitled “Proposed Data Category Assignments for Subpart I” in Docket EPA-HQ-OAR-2011-0028.</P>

        <P>This action also proposes amendments to provisions in subpart I regarding the calculation and reporting of emissions from facilities that use best available monitoring methods (BAMM). Following the December 1, 2010 publication finalizing subpart I in the “Mandatory Reporting of Greenhouse Gases: Additional Sources of<PRTPAGE P="10436"/>Fluorinated GHGs” rule (75 FR 74774, hereinafter referred to as the “final subpart I rule”), industry members requested reconsideration of several provisions in the final subpart I rule. This action responds to a petition for reconsideration of the specific subpart I provisions that require facilities that have been granted extensions to use BAMM to recalculate their emissions for the time period for which BAMM was granted at a later date, after they have begun following all applicable monitoring requirements of subpart I.</P>
        <P>In today's notice, the EPA is not taking any action on other issues raised by the petitioners. Although we are not seeking comment on those issues at this time, the EPA reserves the right to further consider those issues at a later time.</P>
        <HD SOURCE="HD2">B. Does this action apply to me?</HD>
        <P>This proposal affects entities that are required to submit annual GHG reports under subpart I of Part 98. The Administrator determined that this action is subject to the provisions of Clean Air Act (CAA) section 307(d). See CAA section 307(d)(1)(V) (the provisions of CAA section 307(d) apply to “such other actions as the Administrator may determine”). Part 98 and this action affect owners and operators of electronics manufacturing facilities. Affected categories and entities include those listed in Table 1 of this preamble.</P>
        <GPOTABLE CDEF="s50,12,r100" COLS="3" OPTS="L2,i1">
          <TTITLE>Table 1—Examples of Affected Entities by Category</TTITLE>
          <BOXHD>
            <CHED H="1">Category</CHED>
            <CHED H="1">NAICS</CHED>
            <CHED H="1">Examples of affected facilities</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Electronics Manufacturing</ENT>
            <ENT>334111</ENT>
            <ENT>Microcomputers manufacturing facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>334413</ENT>
            <ENT>Semiconductor, photovoltaic (solid-state) device manufacturing facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>334419</ENT>
            <ENT>Liquid crystal display unit screens manufacturing facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>334419</ENT>
            <ENT>Micro-electro-mechanical systems manufacturing facilities.</ENT>
          </ROW>
        </GPOTABLE>

        <P>Table 1 of this preamble lists the types of entities that potentially could be affected by the reporting requirements under the subpart covered by this proposal. However, this list is not intended to be exhaustive, but rather provides a guide for readers regarding facilities likely to be affected by this action. Other types of facilities not listed in the table could also be subject to reporting requirements. To determine whether you are affected by this action, you should carefully examine the applicability criteria found in 40 CFR part 98, subpart A as well as 40 CFR part 98, subpart I. If you have questions regarding the applicability of this action to a particular facility, consult the person listed in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section of this preamble.</P>
        <HD SOURCE="HD2">C. Legal Authority</HD>
        <P>The EPA is proposing rule amendments under its existing CAA authority, specifically authorities provided in CAA section 114. As stated in the preamble to the 2009 final rule (74 FR 56260) and the Response to Comments on the Proposed Rule, Volume 9, Legal Issues, CAA section 114 provides the EPA broad authority to obtain the information in Part 98, including those in subpart I, because such data would inform and are relevant to the EPA's carrying out a wide variety of CAA provisions. As discussed in the preamble to the initial proposed Part 98 (74 FR 16448, April 10, 2009), CAA section 114(a)(1) authorizes the Administrator to require emissions sources, persons subject to the CAA, manufacturers of control or process equipment, or persons whom the Administrator believes may have necessary information to monitor and report emissions and provide such other information the Administrator requests for the purposes of carrying out any provision of the CAA.</P>
        <HD SOURCE="HD2">D. What should I consider as I prepare my comments to the EPA?</HD>
        <HD SOURCE="HD3">1. Submitting Comments That Contain CBI</HD>
        <P>Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD ROM that you mail to the EPA, mark the outside of the disk or CD ROM as CBI and then identify electronically within the disk or CD ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information marked as CBI will not be disclosed except in accordance with procedures set forth in 40 CFR part 2.</P>

        <P>Do not submit information that you consider to be CBI or otherwise protected through<E T="03">http://www.regulations.gov</E>or email. Send or deliver information identified as CBI to only the mail or hand/courier delivery address listed above, attention: Docket ID No. EPA-HQ-OAR-2011-0028.</P>

        <P>If you have any questions about CBI or the procedures for claiming CBI, please consult the person identified in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section.</P>
        <HD SOURCE="HD3">2. Tips for Preparing Your Comments</HD>
        <P>When submitting comments, remember to:</P>

        <P>Identify the rulemaking by docket number and other identifying information (e.g., subject heading,<E T="04">Federal Register</E>date and page number).</P>
        <P>Follow directions. The EPA may ask you to respond to specific questions or organize comments by referencing a CFR part or section number.</P>
        <P>Explain why you agree or disagree, and suggest alternatives and substitute language for your requested changes.</P>
        <P>Describe any assumptions and provide any technical information and/or data that you used.</P>
        <P>If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow us to reproduce your estimate.</P>
        <P>Provide specific examples to illustrate your concerns and suggest alternatives.</P>
        <P>Explain your views as clearly as possible, avoiding the use of profanity or personal threats.</P>

        <P>Make sure to submit your information and comments by the comment period deadline identified in the preceding section titled<E T="02">DATES</E>. To ensure proper receipt by the EPA, be sure to identify the docket ID number assigned to this action in the subject line on the first page of your response. You may also provide the name, date, and<E T="04">Federal Register</E>citation.</P>

        <P>To expedite review of your comments by agency staff, you are encouraged to send a separate copy of your comments, in addition to the copy you submit to the official docket, to Carole Cook, U.S. EPA, Office of Atmospheric Programs, Climate Change Division, Mail Code 6207-J, Washington, DC 20460, telephone (202) 343-9263, email<E T="03">GHGReportingCBI@epa.gov.</E>You are also encouraged to send a separate copy of your CBI information to Carole Cook<PRTPAGE P="10437"/>at the provided mailing address in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section. Please do not send CBI to the electronic docket or by email.</P>
        <HD SOURCE="HD1">II. Background and General Rationale on CBI Re-Proposal</HD>
        <HD SOURCE="HD2">A. Background on CBI Re-Proposal</HD>

        <P>On October 30, 2009, the EPA published the Mandatory GHG Reporting Rule, 40 CFR part 98, for collecting information regarding GHGs from a broad range of industry sectors (74 FR 56260). Under Part 98 and its subsequent amendments, certain facilities and suppliers above specified thresholds are required to report GHG information to the EPA annually. For facilities, this includes those that directly emit GHGs (“direct emitters”) and those that geologically sequester or otherwise inject carbon dioxide (CO<E T="52">2</E>) underground. The data to be reported consists of GHG emission and supply information as well as other data, including information necessary to characterize, quantify, and verify the reported emissions and supplied quantities. In the preamble to Part 98, we stated, “Through a notice and comment process, we will establish those data elements that are `emissions data' and therefore [under CAA section 114(c)] will not be afforded the protections of CBI. As part of that exercise, in response to requests provided in comments, we may identify classes of information that are not emissions data and are CBI (74 FR 56287, October 30, 2009).”</P>
        <P>The EPA proposed confidentiality determinations for Part 98 data elements, including data elements contained in subpart I in the July 7, 2010 proposed CBI determination proposal (75 FR 39094, hereafter referred to as the “July 7, 2010 CBI proposal”). The data reporting requirements for subpart I were finalized on December 1, 2010 (75 FR 74774) as an amendment to Part 98. As explained in more detail in Section II.C of this preamble, many data elements were added or changed following proposal of the subpart I reporting requirements. Further, in a separate action, the EPA is finalizing amendments to subpart I, which revise one data element and add two new data elements. See “Greenhouse Gas Reporting Program: Electronics Manufacturing (Subpart I): Revisions to Heat Transfer Fluid Provisions” (hereinafter referred to as the “Subpart I Heat Transfer Fluid Provisions final rule”). In light of the above, today we are re-proposing for public comment the confidentiality determinations for the data elements in subpart I to reflect the finalized new and revised data elements in this subpart.</P>
        <P>On May 26, 2011, the EPA published the final CBI determinations for the data elements in 34 Part 98 subparts, except for those data elements that were assigned to the “Inputs to Emission Equations” data category (76 FR 30782, hereinafter referred to as the “Final CBI Rule”). That final rule did not include CBI determinations for subpart I.</P>
        <P>The Final CBI Rule: (1) Created and finalized 22 data categories for Part 98 data elements; (2) assigned data elements in 34 subparts to appropriate data categories; (3) for 16 data categories, issued category-based final CBI determinations for all data elements assigned to the category; and (4) for the other five data categories (excluding the inputs to emission equations category), determined that the data elements assigned to those categories are not “emission data” but made individual final CBI determination for those data elements. The EPA also did not make categorical determinations regarding the CBI status of these five categories. The EPA did not make final confidentiality determinations for the data elements assigned to the “Inputs to Emission Equations” data category.</P>
        <P>The EPA finalized subpart I reporting requirements on December 1, 2010 (75 FR 74774). The final subpart I rule substantively revised data reporting elements and added new data reporting elements relative to the July 7, 2010 CBI proposal. In addition, in a separate action, the EPA is finalizing amendments to subpart I, which revises one data reporting element and adds two new data reporting elements. Today's re-proposal addresses the subpart I data elements as finalized, including the amendments discussed above.<SU>1</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>1</SU>Please note that the EPA also made other final revisions to subpart I in 2011 including an extension of best available monitoring methods (76 FR 36339, June 22, 2011) and changes to provide flexibility (76 FR 59542, September 27, 2011), but these actions did not change the list of reported data elements for subpart I.</P>
        </FTNT>
        <HD SOURCE="HD2">B. What is the rationale for re-proposing the CBI determinations for subpart I?</HD>
        <P>In the July 7, 2010 CBI Proposal, the EPA proposed CBI determinations for the data elements in then-proposed subpart I because the EPA initially did not anticipate any significant change to these data elements when finalizing the subpart I reporting requirements. In light of the changes described in section II.A of this preamble to the subpart I data elements since the July 7, 2010 CBI proposal, the EPA is re-proposing the confidentiality determinations for the data elements in subpart I.</P>
        <P>Because this is a re-proposal, the agency is not responding to previous comments submitted on the July 7, 2010 CBI proposal relative to the data elements in this subpart. Although we considered those comments when developing this re-proposal, we encourage you to resubmit all relevant comments to ensure full consideration by the EPA in this rulemaking. In resubmitting previous comments, please make any necessary changes to clarify that you are addressing the re-proposal and add details as requested in Section III.E of this preamble.</P>
        <HD SOURCE="HD2">C. How does the Subpart I Heat Transfer Fluid Provisions final rule affect the CBI re-proposal?</HD>
        <P>In a separate action, the EPA is finalizing technical revisions, clarifications, and other amendments to subpart I of Part 98 in the Subpart I Heat Transfer Fluid Provisions final rule.</P>
        <P>The Subpart I Heat Transfer Fluid Provisions final rule is revising one and adding two subpart I data elements that are not inputs. Accordingly, we are making data category assignments to these three new and revised elements as finalized in the Subpart I Heat Transfer Fluid Provisions final rule. The revised data element includes a wording change from “each fluorinated GHG used” to “each fluorinated heat transfer fluid used.” The two new data elements require a facility to report (1) the date on which the facility began monitoring emissions of fluorinated heat transfer fluids (HTFs) and (2) whether the emission estimate includes emissions from all applications or only from the applications specified in the definition of fluorinated heat transfer fluids. The re-proposal addresses the data elements we are finalizing in the Subpart I Heat Transfer Fluid Provisions final rule, published as a separate action.</P>
        <HD SOURCE="HD1">III. Re-Proposal of CBI Determinations for Subpart I</HD>
        <HD SOURCE="HD2">A. Overview</HD>

        <P>We propose to assign each of the data elements in subpart I, a direct emitter subpart, to one of 11 direct emitter data categories created in the Final CBI Rule. For eight of the 11 direct emitter categories, the EPA has made categorical confidentiality determinations, finalized in the Final CBI rule. For these eight categories, the EPA is proposing to apply the same categorical confidentiality determinations (made in the Final CBI rule) to the subpart I reporting elements assigned to each of these categories.<PRTPAGE P="10438"/>
        </P>
        <P>In the Final CBI Rule, for two of the 11 data categories, the EPA did not make categorical confidentiality determinations, but rather made confidentiality determinations on an element-by-element basis. We are therefore following the same approach in this action for the subpart I reporting elements assigned to these two data categories. For three data elements within these two data categories, the EPA is proposing to make no CBI determination and, instead, make a case-by-case determination for actual data reported in these elements, as described in more detail in Section III.D of this preamble.</P>

        <P>Lastly, in the Final CBI Rule, for the final data category, “Inputs to Emission Equations,” the EPA did not make a final confidentiality determination and indicated that this issue would be addressed in a future action. Please note that in the August 25, 2011 Final Deferral, the EPA has already assigned certain subpart I data elements to the inputs data category. We are not proposing to assign any additional data elements to the inputs data category in this action. Please see the following Web site for further information on this topic:<E T="03">http://www.epa.gov/climatechange/emissions/CBI.html.</E>
        </P>
        <P>Table 2 of this preamble summarizes the confidentiality determinations that were made in the Final CBI Rule for the following direct emitter data categories created in that notice excluding the “Inputs to Emission Equations” data category as final determinations for that category have not yet been made.</P>
        <GPOTABLE CDEF="s50,14C,14C,14C" COLS="4" OPTS="L2,i1">
          <TTITLE>Table 2—Summary of Final Confidentiality Determinations for Direct Emitter Data Categories</TTITLE>
          <BOXHD>
            <CHED H="1">Data category</CHED>
            <CHED H="1">Confidentiality determination for data elements in each category</CHED>
            <CHED H="2">Emission data<SU>a</SU>
            </CHED>
            <CHED H="2">Data that are not emission data and not CBI</CHED>
            <CHED H="2">Data that are not emission data but are CBI<SU>b</SU>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Facility and Unit Identifier Information</ENT>
            <ENT>X</ENT>
            <ENT/>
            <ENT/>
          </ROW>
          <ROW>
            <ENT I="01">Emissions</ENT>
            <ENT>X</ENT>
            <ENT/>
            <ENT/>
          </ROW>
          <ROW>
            <ENT I="01">Calculation Methodology and Methodological Tier</ENT>
            <ENT>X</ENT>
            <ENT/>
            <ENT/>
          </ROW>
          <ROW>
            <ENT I="01">Data Elements Reported for Periods of Missing Data that are Not Inputs to Emission Equations</ENT>
            <ENT>X</ENT>
            <ENT/>
            <ENT/>
          </ROW>
          <ROW>
            <ENT I="01">Unit/Process “Static” Characteristics that are Not Inputs to Emission Equations</ENT>
            <ENT/>
            <ENT>X<SU>c</SU>
            </ENT>
            <ENT>X<SU>c</SU>
            </ENT>
          </ROW>
          <ROW>
            <ENT I="01">Unit/Process Operating Characteristics that are Not Inputs to Emission Equations</ENT>
            <ENT/>
            <ENT>X<SU>c</SU>
            </ENT>
            <ENT>X<SU>c</SU>
            </ENT>
          </ROW>
          <ROW>
            <ENT I="01">Test and Calibration Methods</ENT>
            <ENT/>
            <ENT>X</ENT>
            <ENT/>
          </ROW>
          <ROW>
            <ENT I="01">Production/Throughput Data that are Not Inputs to Emission Equations</ENT>
            <ENT/>
            <ENT/>
            <ENT>X</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Raw Materials Consumed that are Not Inputs to Emission Equations</ENT>
            <ENT/>
            <ENT/>
            <ENT>X</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Process-Specific and Vendor Data Submitted in BAMM Extension Requests</ENT>
            <ENT/>
            <ENT/>
            <ENT>X</ENT>
          </ROW>
          <TNOTE>
            <SU>a</SU>Under CAA section 114(c), “emission data” are not entitled to confidential treatment. The term “emission data” is defined at 40 CFR 2.301(a)(2)(i).</TNOTE>
          <TNOTE>
            <SU>b</SU>Section 114(c) of the CAA affords confidential treatment to data (except emission data) that are considered CBI.</TNOTE>
          <TNOTE>
            <SU>c</SU>In the Final CBI Rule, this data category contains both data elements determined to be CBI and those determined not to be CBI.</TNOTE>
        </GPOTABLE>
        <HD SOURCE="HD2">B. Request for Comments</HD>
        <P>Today's action provides affected businesses subject to Part 98, other stakeholders, and the general public an opportunity to provide comment on several aspects of this proposal. For the CBI component of this rulemaking, we are soliciting comment on the following specific issues.</P>
        <P>First, we seek comment on the proposed data category assignment for each of these data elements. If you believe that the EPA has improperly assigned certain data elements in this subpart to one of the data categories, please provide specific comments identifying which data elements may be mis-assigned along with a detailed explanation of why you believe them to be incorrectly assigned and in which data category you believe they would best belong.</P>
        <P>Second, we seek comment on our proposal to apply the categorical confidentiality determinations (made in the Final CBI Rule for eight direct emitter data categories) to the data elements in subpart I that are assigned to those categories.</P>
        <P>Third, for those data elements assigned to the two direct emitter data categories without categorical CBI determinations, we seek comment on the individual confidentiality determinations we are proposing for these data elements. If you comment on this issue, please provide specific comment along with detailed rationale and supporting information on whether such data element does or does not qualify as CBI.</P>
        <HD SOURCE="HD2">C. Approach to Making Confidentiality Determinations</HD>
        <P>For subpart I, the EPA proposes to assign each data element to one of 10 non-inputs direct emitter data categories. Please see the memorandum entitled “Proposed Data Category Assignments for Subpart I” in the docket: EPA-HQ-OAR-2011-0028 for a list of the data elements in these subparts and their proposed category assignment. As noted previously, the EPA made categorical confidentiality determinations for eight direct emitter data categories and the EPA proposes to apply those final determinations to the data elements assigned to those categories in this rulemaking. For the data elements in the two direct emitter data categories that do not have categorical confidentiality determinations, we are proposing to make confidentiality determinations on an individual data element basis.<SU>2</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>2</SU>As mentioned above, EPA determined that data elements in these two categories are not “emission data” under CAA section 114(c) and 40 CFR 2.301(a)(2)(i) for purposes of determining the GHG emissions to be reported under Part 98. That determination would apply to data elements in subpart I assigned to those categories through this rulemaking.</P>
        </FTNT>

        <P>The following two direct emitter data categories do not have category-based CBI determinations: “Unit/Process `Static' Characteristics That are Not Inputs to Emission Equations” and “Unit/Process Operating Characteristics That are Not Inputs to Emission Equations.” In Section III.D of this preamble, the data elements in these two data categories that are part of the annual GHG report submission and part of the subpart I BAMM use extension requests are identified in a table. For all data elements in these two data categories, the EPA states in the table the reasons for proposing to determine<PRTPAGE P="10439"/>that each does or does not qualify as CBI under CAA section 114(c). These data elements are also listed individually by data category and proposed confidentiality determination in the memorandum entitled “Proposed Data Category Assignments for Subpart I” in Docket EPA-HQ-OAR-2011-0028. For three data elements, the EPA is proposing to make no CBI determination and, instead, make a case-by-case determination for actual data reported in these elements, as described in more detail in the table in Section III.D of this preamble. The EPA is specifically soliciting comments on the CBI proposals for data elements in these two data categories.</P>
        <HD SOURCE="HD2">D. Proposed Confidentiality Determinations for Individual Data Elements in Two Data Categories</HD>
        <P>As described in Section III.C of this preamble, the EPA is proposing confidentiality determinations on an element-by-element basis for those that we are proposing to assign to the “Unit/Process `Static' Characteristics That are Not Inputs to Emission Equations” and “Unit/Process Operating Characteristics That are Not Inputs to Emission Equations” data categories. In this section, the EPA presents in Table 3 and Table 4 of this preamble the data elements that we are proposing to assign to those two data categories and the reasons for proposing to determine that each does or does not qualify as CBI under CAA section 114(c), or the reason that we are not making a CBI determination.</P>

        <P>The electronics manufacturing industry uses multiple long-lived fluorinated greenhouse gases (fluorinated GHGs), as well as nitrous oxide (N<E T="52">2</E>O) during manufacturing of electronic devices, including, but not limited to, liquid crystal displays, microelectro-mechanical systems, photovoltaic cells, and semiconductors. Fluorinated GHGs are used mainly for plasma etching of silicon materials, cleaning deposition tool chambers, and wafer cleaning, but may be used in other types of electronics manufacturing processes. Besides dielectric film etching and chamber cleaning, much smaller quantities of fluorinated GHGs are used to etch polysilicon films and refractory metal films like tungsten. Additionally, some electronics manufacturing equipment may employ fluorinated GHG liquids as HTFs. Nitrous oxide may be the oxidizer of choice during deposition of silicon oxide films in manufacturing electronic devices.</P>

        <P>These electronic manufacturing steps are performed in carefully controlled process chambers containing the silicon wafers and the fluorinated GHGs or N<E T="52">2</E>O. Producing a finished wafer with multiple electronic devices (e.g., computer chips) may require depositing and etching 50 or more individual layers of material. The conditions under which the individual steps are performed, the ability of a facility to produce certain electronic features, and the ability of a facility to produce a certain number of devices with a minimum number of defects at a certain cost per unit, among other variables, affect the overall efficiency of the manufacturing process, and thus contribute to the business's profitability. These processes, therefore, are a factor in the competitive standing of a particular facility in this industry.</P>
        <HD SOURCE="HD3">The “Unit/Process `Static' Characteristics That Are Not Inputs to Emission Equations” Data Category</HD>
        <P>The EPA is proposing to assign 16 subpart I data elements to the “Unit/Process `Static' Characteristics That are Not Inputs to Emission Equations” data category because they are basic characteristics of abatement devices and tools that do not vary with time or with the operations of the process (and are not inputs to emission equations). These 16 data elements are shown in Table 3 of this preamble along with their proposed confidentiality determination and the associated justification for the determination:</P>
        <GPOTABLE CDEF="s100,r50,r100" COLS="3" OPTS="L2,i1">
          <TTITLE>Table 3—Data Elements Proposed To Be Assigned to the “Unit/Process `Static' Characteristics That Are Not Inputs to Emission Equations” Data Category</TTITLE>
          <BOXHD>
            <CHED H="1">Data element</CHED>
            <CHED H="1">Proposed to be<LI>confidential?</LI>
            </CHED>
            <CHED H="1">Justification</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">1. For all fluorinated greenhouse gases (F-GHG) or N<E T="0732">2</E>O used at your facility for which you have not calculated emissions using Equations I-6 through I-10: Report a brief description of GHG use</ENT>
            <ENT>Yes</ENT>
            <ENT>Subpart I lists five manufacturing processes in 40 CFR 98.96(a) that are common to the electronics manufacturing industry. If a facility employs an uncommon process during manufacturing, then the reporting facility must instead report a description of the uncommon process (see 40 CFR 98.96(g)). As such, this data element may cover novel production methods that may have been developed by the reporting facility, generally at great expense and time investment. Facilities develop and use such methods because they improve manufacturing efficiencies, reduce manufacturing costs, or improve product performance, quality, or production rate, thereby conferring a competitive advantage. Should competitors gain knowledge of such an exclusive method, they could undercut the facility's competitive advantage, by replicating it at less expense. Therefore, the EPA finds that releasing the report of a brief description of GHG use would likely result in substantial competitive harm.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10440"/>
            <ENT I="01">2. Identification of the quantifiable metric used in your facility-specific engineering model to apportion gas consumption (may not be reported in 2011, 2012, and 2013)</ENT>
            <ENT>No CBI determination proposed in this rulemaking</ENT>
            <ENT>The EPA was petitioned to reconsider the method and data elements related to apportioning and, as an initial response to that petition, the EPA is not requiring the reporting of these recipe-specific data elements for the 2011, 2012, and 2013 reporting years. Under the methods in subpart I at this time, those data elements are not needed to comply with subpart I during those years. Given that the EPA is still considering longer-term responses to the petition, the EPA proposes to evaluate the confidentiality status of these data elements on a case-by-case basis, in accordance with existing CBI regulations in 40 CFR part 2, subpart B.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">3. Inventory of all abatement systems through which fluorinated GHGs or N<E T="0732">2</E>O flow at your facility</ENT>
            <ENT>Yes</ENT>
            <ENT>The inventory of abatement systems at the facility may provide insight into the number of tools at the facility. Information on the type and number of tools at the facility coupled with production capacity could then enable competitors to reverse-engineer the facility's approximate manufacturing cost using the competitor's own tool operating costs. Disclosure of this type of cost information has the potential to undermine competition within the industry because it could allow competitors to ascertain the relative strength of their market position and to identify sources of competitive advantage (or disadvantage) in the industry. This could encourage weaker competitors to leave the industry prematurely or lead stronger competitors to adopt anticompetitive practices (such as predatory pricing) in an effort to force out weaker competitors.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">4. Description of all abatement systems through which fluorinated GHGs or N<E T="0732">2</E>O flow at your facility</ENT>
            <ENT>No</ENT>
            <ENT>The description of abatement systems does not provide information about the specific processes being run at the facility; only provides information about the specific abatement system's being employed at the facility. Further, it does not provide insight to competitors about the type and number of process tools used at the facility, and does not provide insight into the design or operation efficiencies of the plant, nor other information (e.g., market share, ability to increase production to meet new increases in demand, or price structures).</ENT>
          </ROW>
          <ROW>
            <ENT I="01">5. Number of abatement devices of each manufacturer through which fluorinated GHGs or N<E T="0732">2</E>O flow at your facility</ENT>
            <ENT>Yes</ENT>
            <ENT>The number of abatement systems at the facility may provide insight into the number of tools at the facility. Information on the type and number of tools at the facility coupled with production capacity could then enable competitors to reverse-engineer the facility's approximate manufacturing cost using the competitor's own tool operating costs. Disclosure of this type of cost information has the potential to undermine competition within the industry because it could allow competitors to ascertain the relative strength of their market position and to identify sources of competitive advantage (or disadvantage) in the industry. This could lead stronger competitors to adopt anticompetitive practices (such as predatory pricing) in an effort to force out weaker competitors or encourage weaker competitors to leave the industry prematurely.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">6. Model numbers of abatement devices through which fluorinated GHGs or N<E T="0732">2</E>O flow at your facility</ENT>
            <ENT>No</ENT>
            <ENT>Information on what type of abatement system is being used at the facility, including model numbers of abatement devices, does not provide insight into the type of processes being run at the facility. Further, it does not provide insight to competitors about the type and number of process tools used at the facility.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">7. Destruction or removal efficiencies, if any, claimed by manufacturers of abatement devices through which fluorinated GHGs or N<E T="0732">2</E>O flow at your facility</ENT>
            <ENT>No</ENT>
            <ENT>The destruction or removal efficiencies do not provide insight about the specific process being run at the facility; this information should be available publically via a manufacturer's Web site/press materials. It should also be provided as part of the abatement system specifications.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10441"/>
            <ENT I="01">8. Description of the tools associated with each abatement system</ENT>
            <ENT>Yes</ENT>
            <ENT>At a subpart I facility, disclosure of the type or description of manufacturing tools used for specific process steps would provide insight into how the reporting facility is configured and how it achieves its specific manufacturing performance. If information on a facility's tool types and manufacturing steps is revealed, a competitor could use this information to replicate the facility's manufacturing configuration, thereby undercutting the competitive advantage that the facility has built by achieving a higher level of manufacturing performance.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">9. Model numbers of the tools associated with each abatement system</ENT>
            <ENT>Yes</ENT>
            <ENT>At a subpart I facility, disclosure of the model numbers of manufacturing tools used for specific process steps would provide insight into the type of tool used and how the reporting facility is configured and achieves its specific manufacturing performance. If information on a facility's tool types and manufacturing steps is revealed, a competitor could use this information to replicate the facility's manufacturing configuration, thereby undercutting the competitive advantage that the facility has built by achieving a higher level of manufacturing performance.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">10. The tool recipe(s),<SU>3</SU>process sub-type, or type associated with each abatement system</ENT>
            <ENT>Yes</ENT>
            <ENT>At a subpart I facility, disclosure of the recipe(s), process sub-type, or type associated with each abatement system for specific process steps would provide insight into how the reporting facility is configured and achieves its specific manufacturing performance. If information on a facility's tool types and manufacturing steps is revealed, a competitor could use this information to replicate the facility's manufacturing configuration, thereby undercutting the competitive advantage that the facility has built by achieving a higher level of manufacturing performance.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">11. Certification that the abatement systems for which controlled emissions are being reported are specifically designed for fluorinated GHG and N<E T="0732">2</E>O abatement, including abatement system supplier documentation</ENT>
            <ENT>No</ENT>
            <ENT>The abatement system certification does not provide any insight into the design or operation efficiencies of the plant or other information, that, if made publicly available, the release of which would be likely to result in substantial competitive harm. Moreover, certification statements will consist of only the language that the EPA publicly provides in the data reporting tool and will not include any facility- or process-specific information that could be considered exclusive.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">12. A description of the abatement system class for which you are reporting controlled emissions</ENT>
            <ENT>No</ENT>
            <ENT>The abatement system class description does not provide any information about the specific processes being run at the facility; it relates to the use of the random sampling abatement system testing program (RSASTP) (40 CFR 98.94(f)(4)); where the facility elects to directly measure the destruction removal efficiency (DRE), this information ensures that they have followed the RSASTP. This description does not provide insight into the design or operation efficiencies of the plant, nor other information (e.g., market share, ability to increase production to meet new increases in demand, or price structures).</ENT>
          </ROW>
          <ROW>
            <ENT I="01">13. The manufacturer of the abatement system in the class for which you are reporting controlled emissions</ENT>
            <ENT>No</ENT>
            <ENT>The abatement system manufacturer does not provide any information about the specific processes being run at the facility; it relates to the use of the RSASTP; where the facility elects to directly measure the DRE, this information ensures that they have followed the RSASTP. This information does not provide insight into the design or operation efficiencies of the plant, nor other information (e.g., market share, ability to increase production to meet new increases in demand, or price structures).</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10442"/>
            <ENT I="01">14. The model number of the abatement system in the class for which you are reporting controlled emissions</ENT>
            <ENT>No</ENT>
            <ENT>The abatement system model number and class do not provide any information about the specific processes being run at the facility; they relate to the use of the RSASTP; where the facility elects to directly measure the DRE, this information ensures that they have followed the RSASTP. This information does not provide insight to competitors about the type and number of process tools used at the facility.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">15. For each fluorinated HTF used, whether the emission estimate includes emissions from all applications or from only the applications specified in the definition of fluorinated HTFs in 40 CFR 98.98</ENT>
            <ENT>No</ENT>
            <ENT>This information does not contain any process specific information; it is related to a flexibility provision that the EPA finalized in a separate action. The release of this information does not provide insight into the design or operation efficiencies of the plant, nor other information (e.g., market share, ability to increase production to meet new increases in demand, or price structures).</ENT>
          </ROW>
          <ROW>
            <ENT I="01">16. For reporting year 2012 only, the date on which you began monitoring emissions of fluorinated heat transfer fluids whose vapor pressure falls below 1 mm of Hg absolute at 25 degrees C</ENT>
            <ENT>No</ENT>
            <ENT>This information does not provide details about the specific processes being run at the facility; it enables the EPA to ascertain the time-period for which fluorinated HTFs are being reported. The release of this information does not provide insight into the design or operation efficiencies of the plant, nor other information (e.g., market share, ability to increase production to meet new increases in demand, or price structures).</ENT>
          </ROW>
        </GPOTABLE>
        <P>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>3</SU>“Recipe” is a term of art in electronics manufacturing and is defined in 40 CFR 98.98 as a “specific combination of gases, under specific conditions of reactor temperature, pressure, flow, radio frequency (RF) power and duration, used repeatedly to fabricate a specific feature on a specific film or substrate”.</P>
        </FTNT>
        <HD SOURCE="HD3">The “Unit/Process Operating Characteristics That Are Not Inputs to Emission Equations” Data Category</HD>
        <P>The EPA is proposing to assign 23 subpart I data elements to the “Unit/process Operating Characteristics That Are Not Inputs to Emission Equations” data category because they are characteristics of the abatement systems and other equipment, the facility conditions, and the products manufactured that vary over time with changes in operations and processes (and are not inputs to emission equations). Thirteen of these data elements are part of extension requests for the use of BAMM and generally relate to the reasons for a request and expected dates of compliance. Ten are part of the annual GHG report for 40 CFR part 98, subpart I. These 23 data elements are shown in Table 4 of this preamble along with their proposed confidentiality determination and the associated justification for the determination:</P>
        <GPOTABLE CDEF="s100,r50,r100" COLS="3" OPTS="L2,i1">
          <TTITLE>Table 4—Data Elements Proposed To Be Assigned to the “Unit/Process Operating Characteristics That Are Not Inputs to Emission Equations” Data Category</TTITLE>
          <BOXHD>
            <CHED H="1">Data element</CHED>
            <CHED H="1">Proposed to be<LI>confidential?</LI>
            </CHED>
            <CHED H="1">Justification</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">1. Annual manufacturing capacity of a facility as determined in Equation I-5</ENT>
            <ENT>No</ENT>
            <ENT>This information is already publicly available through the World Fab Forecast,<SU>4</SU>a subscription-based report containing in-depth analysis down to the detail of each fab [or facility] in the electronics industry. The Forecast is published and updated quarterly by SEMI, the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. The EPA reviewed the available capacity information and determined that, while those capacity data elements are generally publicly available, there may be facilities for which this data is not public. The EPA is proposing that the “annual manufacturing capacity of a facility as determined in Equation I-5” data element (item 1) not be treated as confidential, because it is already publicly available through the World Fab Forecast. The EPA seeks comment on this proposed determination.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10443"/>
            <ENT I="01">2. For facilities that manufacture semiconductors, the diameter of wafers manufactured at a facility</ENT>
            <ENT>No</ENT>
            <ENT>The diameter of wafers manufactured at a facility is already publicly available through the World Fab Forecast, a subscription-based report containing in-depth analysis down to the detail of each fab [or facility] in the semiconductor industry. The Forecast is published and updated quarterly by SEMI, the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">3. Film or substrate that was etched/cleaned and the feature type that was etched</ENT>
            <ENT>No CBI determination proposed in this rulemaking</ENT>
            <ENT>EPA was petitioned to reconsider the method and data elements related to the recipe-specific method and, as an initial response to that petition, the EPA is not requiring the reporting of these recipe-specific data elements for the 2011, 2012, and 2013 reporting years. Under the methods in subpart I at this time, those data elements are not needed to comply with subpart I during those years. Given that the EPA is still considering longer-term responses to the petition, the EPA proposes to evaluate the confidentiality status of these data elements on a case-by-case basis, in accordance with existing CBI regulations in 40 CFR part 2, subpart B.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">4. Certification that the recipes included in a set of similar recipes are similar</ENT>
            <ENT>No CBI determination proposed in this rulemaking</ENT>
            <ENT>The EPA was petitioned to reconsider the method and data elements related to the recipe-specific method and, as an initial response to that petition, the EPA is not requiring the reporting of these recipe-specific data elements for the 2011, 2012, and 2013 reporting years. Under the methods in subpart I at this time, those data elements are not needed to comply with subpart I during those years. Given that the EPA is still considering longer-term responses to the petition, the EPA proposes to evaluate the confidentiality status of these certifications on a case-by-case basis, in accordance with existing CBI regulations in 40 CFR part 2, subpart B.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">5. When you use factors for fluorinated GHG process utilization and by-product formation rates other than the defaults provided in Tables I-3, I-4, I-5, I-6, and I-7 and/or N<E T="0732">2</E>O utilization factors other than the defaults provided in Table I-8, certification that the conditions under which the measurements were made for facility-specific N<E T="0732">2</E>O utilization factors are representative of your facility's N<E T="0732">2</E>O emitting production processes</ENT>
            <ENT>No</ENT>
            <ENT>These certification statements are general in nature, do not reveal other information (e.g., market share, ability to increase production to meet new increases in demand, price structures), and do not provide any insight into the design or operation efficiencies of the plant that would likely result in substantial competitive harm. Moreover, the EPA certification statements consist only of the language that the EPA publicly provides in the data reporting tool and do not include any facility- or process-specific information that could be considered exclusive.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">6. Destruction and removal efficiency measurement records for abatement system through which fluorinated GHGs or N<E T="0732">2</E>O flow at your facility over its in-use life</ENT>
            <ENT>No</ENT>
            <ENT>These measurement records are limited to information about the performance of the abatement systems and do not include information about the operating conditions around the abatement system or the manufacturing tool to which it is attached. Destruction efficiency information would not likely cause substantial competitive harm if released, because it does not provide any insight into novel, exclusive production methods that may have been developed by the facility.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">7. Certification that the abatement system is installed, maintained, and operated according to manufacturer specifications</ENT>
            <ENT>No</ENT>
            <ENT>These certification statements are general in nature, do not provide any insight into the design or operation efficiencies of the plant, and do not reveal other information (e.g., market share, ability to increase production to meet new increases in demand, price structures) that would likely result in substantial competitive harm. Moreover, the EPA certification statements consist only of the language that the EPA publicly provides in the data reporting tool and do not include any facility- or process-specific information that could be considered exclusive.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10444"/>
            <ENT I="01">8. The fluorinated GHG and N<E T="0732">2</E>O in the effluent stream to the abatement system in the class for which you are reporting controlled emissions</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not include information on the quantity of gas(es) produced or the manufacturing tool that produces the gas(es). The type of fluorinated gas in the effluent stream would not likely cause substantial competitive harm if released, because all facilities use the same types of process gases that are typically found in effluent streams. The type of gas does not provide any insight into the costs of producing semiconductors at the facility or any novel production methods that may have been developed by the facility to improve manufacturing efficiencies, reduce manufacturing costs, or improve product performance.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">9. The total number of abatement systems in that abatement system class for the reporting year</ENT>
            <ENT>Yes</ENT>
            <ENT>The EPA finds that information relating to the number of abatement systems at the facility may provide insight into the number of tools at the facility. Information on the type and number of tools at the facility coupled with production capacity could then enable competitors to reverse-engineer the facility's approximate manufacturing cost using the competitor's own tool operating costs. Disclosure of this type of cost information has the potential to undermine competition within the industry because it could allow competitors to ascertain the relative strength of their market position and to identify sources of competitive advantage (or disadvantage) among competitors. This could encourage weaker competitors to leave the industry prematurely or lead stronger competitors to adopt anticompetitive practices (such as predatory pricing) in an effort to force out weaker competitors.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">10. The total number of abatement systems for which destruction or removal efficiency was measured in that abatement system class for the reporting year</ENT>
            <ENT>Yes</ENT>
            <ENT>This data element refers to the statistical sample size of abatement systems that the facility analyzed in order to determine with sufficient statistical confidence the efficiency of all like abatement systems in that class. Subpart I specifies that 20 percent of the total number of abatement systems must be analyzed every year. Therefore, a competitor could use statistical sample size data to determine the total number of abatement systems at the facility. Since the EPA proposes that the total number of abatement systems is CBI, as described above, the EPA finds that the statistical sample size of abatement systems would likely cause substantial competitive harm if revealed.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">11. Extension requests which request BAMM in 2011 for parameters other than recipe-specific utilization and by-product formation rates for the plasma etching process type: Reasons why the needed equipment could not be obtained, installed, or operated or why the needed measurement service could not be provided before July 1, 2011</ENT>
            <ENT>Yes</ENT>
            <ENT>The EPA has reviewed all BAMM use extension requests and determined that this data element contains detailed operational information, which could provide insight into configuration efficiencies that the facility has developed, generally at great expense and time investment, to minimize manufacturing cost and to maximize the manufacturing rate. If a competitor could review such information on the facility's configuration, the competitor would be able to adopt the facility's efficiency practices with less development time or expense and would gain competitive advantage at the expense of the facility's competitive advantage.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">12. Extension requests which request BAMM in 2011 for parameters other than recipe-specific utilization and by-product formation rates for the plasma etching process type: If the reason for the extension is that the equipment cannot be purchased, delivered, or installed before July 1, 2011, include supporting documentation (e.g., backorder notices or unexpected delays or descriptions of actions taken to expedite delivery or installation)</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain process diagrams, operational information, or any other information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10445"/>
            <ENT I="01">13. Extension requests which request BAMM in 2011 for parameters other than recipe-specific utilization and by-product formation rates for the plasma etching process type: If the reason for the extension is that service providers were unable to provide necessary measurement services, include supporting documentation demonstrating that these services could not be acquired before July 1, 2011. This documentation must include written correspondence to and from at least three service providers stating that they will not be available to provide the necessary services before July 1, 2011</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on regulatory requirements and administrative activities to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">14. Extension requests which request BAMM in 2011 for parameters other than recipe-specific utilization and by-product formation rates for the plasma etching process type: Specific actions the owner or operator will take to comply with monitoring requirements by January 1, 2012</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed information, such as process diagrams and operational information or any other information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">15. Extension requests which request BAMM in 2011 for recipe-specific utilization and by-product formation rates for plasma etching process type: Reasons why the needed equipment could not be obtained, installed, or operated or why the needed measurement service could not be provided before December 31, 2011</ENT>
            <ENT>Yes</ENT>
            <ENT>The EPA has reviewed all BAMM use extension requests and determined that this data element contains detailed information, such as operational information, which could provide insight into configuration efficiencies that the facility has developed, generally at great expense and time investment, to minimize manufacturing cost and to maximize the manufacturing rate. If a competitor could review such information on the facility's configuration, the competitor would be able to adopt the facility's efficiency practices with less development time or expense and would gain competitive advantage at the expense of the facility's competitive advantage.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">16. Extension requests which request BAMM in 2011 for recipe-specific utilization and by-product formation rates for plasma etching process type: If the reason for the extension is that the equipment cannot be purchased, delivered, or installed before December 31, 2011, include supporting documentation (e.g., backorder notices or unexpected delays or descriptions of actions taken to expedite delivery or installation)</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed information, such as process diagrams and operational information or any other information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">17. Extension requests which request BAMM in 2011 for recipe-specific utilization and by-product formation rates for plasma etching process type: If the reason for the extension is that service providers were unable to provide necessary measurement services, include supporting documentation demonstrating that these services could not be acquired before December 31, 2011. This documentation must include written correspondence to and from at least three service providers stating that they will not be available to provide the necessary services before December 31, 2011</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed information, such as process diagrams and operational information or any other information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">18. Extension requests which request BAMM in 2011 for recipe-specific utilization and by-product formation rates for plasma etching process type: Specific actions the owner or operator will take to comply with monitoring requirements by January 1, 2012</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed information, such as process diagrams and operational information or any other information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10446"/>
            <ENT I="01">19. Extension requests which request BAMM beyond 2011: Explanation as to why the requirements cannot be met</ENT>
            <ENT>Yes</ENT>
            <ENT>The EPA has reviewed all of BAMM use extension requests and determined that this data element may contain operational information, which could provide insight into configuration efficiencies that the facility has developed, generally at great expense and time investment, to minimize manufacturing cost and to maximize the manufacturing rate. If a competitor could review such information on the facility's configuration, the competitor would be able to adopt the facility's efficiency practices with less development time or expense and would gain competitive advantage at the expense of the facility's competitive advantage.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">20. Extension requests which request BAMM beyond 2011: Description of the unique circumstances necessitating an extension, including specific technical infeasibilities that conflict with data collection</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed operational information or any other information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">21. Extension requests which request BAMM beyond 2011: Description of the unique circumstances necessitating an extension, including specific data collection issues that do not meet safety regulations or specific laws or regulations that conflict with data collection</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain detailed information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">22. Extension requests which request BAMM beyond 2011: Explanation and supporting documentation of how the owner or operator will receive the required data and/or services to comply with the reporting requirements</ENT>
            <ENT>No</ENT>
            <ENT>This data element does not contain process diagrams or operational information that would give insight for competitors to gain an advantage over the reporter. Rather, it provides information on administrative activities and regulatory requirements to which the facility is subject that are not protected as proprietary or exclusive by the reporting facilities.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">23. Extension requests which request BAMM beyond 2011: Explanation and supporting documentation of when the owner or operator will receive the required data and/or services to comply with the reporting requirements</ENT>
            <ENT>Yes</ENT>
            <ENT>This data element could reveal information about the installation date of equipment and the date of anticipated startup. This could provide sensitive information regarding future process shutdowns or capacity increases, and likely would cause substantial competitive harm if disclosed, because competitors could use this information to anticipate and potentially benefit from future increases or decreases in product supply. For example, a competitor able to anticipate the shutdown or the increase in capacity of a reporter's facility and resulting decrease or increase in product supply could use this information to attract customers from a facility by increasing its own production or by adjusting the price of its own products.</ENT>
          </ROW>
        </GPOTABLE>
        <HD SOURCE="HD2">E. Commenting on the Proposed Confidentiality Determinations in Two Direct Emitter Categories<FTREF/>
        </HD>
        <FTNT>
          <P>
            <SU>4</SU>
            <E T="03">http://www.semi.org/en/Store/MarketInformation/fabdatabase/ctr_027238.</E>
          </P>
        </FTNT>
        <P>We seek comment on the proposed confidentiality status of data elements in two direct emitter data categories (“Unit/Process `Static' Characteristics That are Not Inputs to Emission Equations” and “Unit/Process Operating Characteristics That are Not Inputs to Emission Equations”). By proposing confidentiality determinations prior to data reporting through this proposal and rulemaking process, we provide potential reporters an opportunity to submit comments identifying data they consider sensitive and the rationales and supporting documentation, same as those they would otherwise submit for case-by-case confidentiality determinations. We will evaluate claims of confidentiality before finalizing the confidentiality determinations. Please note that this will be reporters' only opportunity to substantiate your confidentiality claim. Upon finalization of this rule, the EPA will release or withhold subpart I data in accordance with 40 CFR 2.301, which contains special provisions governing the treatment of 40 CFR part 98 data for which confidentiality determinations have been made through rulemaking.</P>
        <P>Please consider the following instructions in submitting comments on the data elements in subpart I.</P>

        <P>Please identify each individual data element you do or do not consider to be CBI or emission data in your comments. Please explain specifically how the public release of that particular data element would or would not cause a competitive disadvantage to a facility. Discuss how this data element may be different from or similar to data that are already publicly available. Please submit information identifying any publicly available sources of<PRTPAGE P="10447"/>information containing the specific data elements in question, since data that are already available through other sources would not be CBI. In your comments, please identify the manner and location in which each specific data element you identify is available, including a citation. If the data are physically published, such as in a book, industry trade publication, or federal agency publication, provide the title, volume number (if applicable), author(s), publisher, publication date, and ISBN or other identifier. For data published on a Web site, provide the address of the Web site and the date you last visited the Web site and identify the Web site publisher and content author.</P>
        <P>If your concern is that competitors could use a particular input to discern sensitive information, specifically describe the pathway by which this could occur and explain how the discerned information would negatively affect your competitive position. Describe any unique process or aspect of your facility that would be revealed if the particular data element you consider sensitive were made publicly available. If the data element you identify would cause harm only when used in combination with other publicly available data, then describe the other data, identify the public source(s) of these data, and explain how the combination of data could be used to cause competitive harm. Describe the measures currently taken to keep the data confidential. Avoid conclusory and unsubstantiated statements, or general assertions regarding potential harm. Please be as specific as possible in your comments and include all information necessary for the EPA to evaluate your comments.</P>
        <HD SOURCE="HD1">IV. Background and Rationale for the Proposed Amendments to the Best Available Monitoring Method Provisions</HD>

        <P>Following the publication of the final subpart I rule in the<E T="04">Federal Register,</E>an industry association requested reconsideration of numerous provisions in the final rule. The proposed amendments in this action are in response to the request for reconsideration of the specific provision that requires facilities that have been granted extensions to use best available monitoring methods (BAMM) to recalculate their emissions for the time period for which BAMM was used at a later date using methods that are fully compliant with subpart I. The other amendments that have been made to date are also related to the reconsideration petition.</P>
        <P>As mentioned above in Section II.C of this preamble, the EPA is finalizing technical corrections and revisions regarding the definition of fluorinated HTFs and the provisions to estimate and report emissions of fluorinated HTFs in a separate action.</P>
        <P>As finalized in December 2010, subpart I allowed facilities to use BAMM without going through an application process until July 1, 2011. In 2011, the EPA published other amendments to subpart I, including several related to the BAMM provisions. On June 22, 2011, the EPA extended the period in subpart I for using the BAMM provisions without going through an application process to September 30, 2011 (76 FR 36339). Under the September 27, 2011 amendments to subpart I, this initial BAMM period was extended through December 31, 2011. Facilities were given until October 17, 2011 to apply for an extension beyond this initial period. Under subpart I, facilities could apply to use BAMM after December 31, 2011 for any parameter for which it is not reasonably feasible to acquire, install, or operate a required piece of monitoring equipment in a facility, or to procure necessary measurement services (40 CFR 94(a)(1)).</P>
        <P>Also on September 27, 2011, the EPA amended the calculation and monitoring provisions for large semiconductor manufacturing facilities that fabricate devices on wafers measuring 300 millimeters or less in diameter (76 FR 59542). The large semiconductor manufacturing facilities are those that have an annual manufacturing capacity of greater than 10,500 square meters of substrate. For reporting years 2011, 2012, and 2013, these amendments allow the large semiconductor facilities the option to calculate emissions using default emission factors already contained in subpart I, instead of using recipe-specific utilization and by-product formation rates for the plasma etching process type.</P>
        <P>The EPA is proposing to amend subpart I to remove the requirement that facilities that are granted an extension to use BAMM must recalculate and resubmit the emissions estimate for the BAMM extension period. Currently, subpart I requires facilities, after the end of the period for which they have been granted a BAMM extension, to recalculate and resubmit all emissions after they have begun following all applicable monitoring methods of subpart I. The September 27, 2011 amendments did not alter the BAMM recalculation provisions in subpart I.</P>
        <P>Under 40 CFR 98.94(a)(2) and (3), a facility granted an extension “through December 31, 2011”, per the original schedule in the rule, must include recalculated 2011 emissions in its 2012 emission report due in 2013, unless it receives an additional extension. Under 40 CFR 98.94(a)(4), a facility granted an extension beyond December 31, 2011, must include recalculated 2012 emissions in its 2013 emission report due in March 2014. Under 40 CFR 98.94(a)(2) and (a)(4), facilities are not required to verify their 2011 and 2012 BAMM engineering model for apportioning gas consumption in their recalculated report.</P>
        <P>The petitioners have noted that in the case of subpart I, the requirement for facilities to recalculate emissions in full compliance with subpart I would require them to implement data collection at a level of detail that is not currently feasible for all facilities using the BAMM provisions.</P>
        <P>Industry members that are applying for BAMM extensions have noted that, although they have systems to track data that are pertinent to processing of wafers and determining tool capacities and manufacturing efficiency, those systems are not currently designed to apportion gas usage to any particular recipe or tool, or to produce the apportioning factors required by the rule. They have also noted that they will not have the systems in place (including hardware and software upgrades) to collect the data needed to develop heel factors, and to track abatement system up-time according to subpart I.</P>
        <P>The petitioners also noted that the compliance schedule for subpart I does not provide adequate time for facilities using BAMM to implement the data collection needed to recalculate emissions at a later date. The final subpart I was published on December 1, 2010, and became effective on January 1, 2011. On January 1, 2011, a facility would have needed some method in place to track the chemicals, the flow stabilization times, reactor pressure, individual gas flow rates, and applied radio frequency power.</P>

        <P>After considering these requests, the EPA is proposing to remove the requirements to recalculate and resubmit all emission estimates for subpart I. The EPA has determined that there may be significant burden imposed by a broad recalculation requirement for subpart I. In addition, the EPA's ongoing consideration of potential further revisions to the calculation and monitoring requirements complicates the recalculation requirement. For example, while the agency may want to evaluate the feasibility of a recalculation requirement for any new methodologies,<PRTPAGE P="10448"/>we do not believe the automatic imposition of a recalculation requirement is appropriate at this time. Finally, it is important to note, the majority of the other subparts of Part 98 with specific BAMM provisions do not require facilities to recalculate or resubmit emission estimates after the BAMM period has been completed. We have, therefore, concluded that it is not necessary to require facilities that have been granted extensions to use best available monitoring methods to recalculate their emissions for the time period for which BAMM was used at a later date using calculation methods in subpart I.</P>
        <HD SOURCE="HD1">V. Statutory and Executive Order Reviews</HD>
        <HD SOURCE="HD2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review</HD>
        <P>Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action, which is proposing to (1) assign subpart I data reporting elements into data categories; (2) determine CBI status for the remaining data elements for which determinations have not yet been made; and (3) amend reporting methodologies in subpart I that would reduce the data collection and submittal burden for certain facilities, is not a “significant regulatory action” under the terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is therefore not subject to review under Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011).</P>
        <HD SOURCE="HD2">B. Paperwork Reduction Act</HD>

        <P>As previously mentioned, this action proposes confidentiality determinations and proposes amended reporting methodologies in subpart I that would reduce the data collection burden for certain facilities. This action does not increase the reporting burden. The Office of Management and Budget (OMB) has previously approved the information collection requirements contained in subpart I, under 40 CFR part 98, under the provisions of the<E T="03">Paperwork Reduction Act,</E>44 U.S.C. 3501<E T="03">et seq.</E>The Information Collection Request (ICR) documents prepared by the EPA have been assigned OMB control number 2060-0650 for subpart I. The OMB control numbers for the EPA's regulations in 40 CFR are listed at 40 CFR part 9.</P>
        <HD SOURCE="HD2">C. Regulatory Flexibility Act (RFA)</HD>
        <P>The Regulatory Flexibility Act (RFA) generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small organizations, and small governmental jurisdictions.</P>
        <P>For purposes of assessing the impacts of this re-proposal on small entities, “small entity” is defined as: (1) A small business as defined by the Small Business Administration's regulations at 13 CFR 121.201; (2) a small governmental jurisdiction that is a government of a city, county, town, school district or special district with a population of less than 50,000; or (3) a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.</P>
        <P>This action proposes confidentiality determinations and proposes amended reporting methodologies in subpart I that would reduce the data collection burden for certain facilities. After considering the economic impacts of today's proposed rule on small entities, I certify that this action will not have a significant economic impact on a substantial number of small entities. The small entities directly regulated by this proposed rule are facilities included in NAICS codes for Semiconductor and Related Device Manufacturing (334413) and Other Computer Peripheral Equipment Manufacturing (334119). As shown in Tables 5-13 and 5-14 of the Economic Impact Analysis for the Mandatory Reporting of Greenhouse Gas Emissions Final Rule (74 FR 56260, October 30, 2009) available in docket number EPA-HQ-OAR-2008-0508, the average ratio of annualized reporting program costs to receipts of establishments owned by model small enterprises was less than 1% for industries presumed likely to have small businesses covered by the reporting program.</P>
        <P>The EPA took several steps to reduce the impact of Part 98 on small entities. For example, the EPA determined appropriate thresholds that reduced the number of small businesses reporting. For some source categories, the EPA developed tiered methods that are simpler and less burdensome. In addition, the EPA conducted several meetings with industry associations to discuss regulatory options and the corresponding burden on industry, such as recordkeeping and reporting. Finally, the EPA continues to conduct significant outreach on the mandatory GHG reporting rule and maintains an “open door” policy for stakeholders to help inform the EPA's understanding of key issues for the industries.</P>
        <P>We continue to be interested in the potential impacts of this action on small entities and welcome comments on issues related to such effects.</P>
        <HD SOURCE="HD2">D. Unfunded Mandates Reform Act (UMRA)</HD>
        <P>Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1531-1538, requires federal agencies, unless otherwise prohibited by law, to assess the effects of their regulatory actions on state, local, and tribal governments and the private sector. Federal agencies must also develop a plan to provide notice to small governments that might be significantly or uniquely affected by any regulatory requirements. The plan must enable officials of affected small governments to have meaningful and timely input in the development of the EPA regulatory proposals with significant federal intergovernmental mandates and must inform, educate, and advise small governments on compliance with the regulatory requirements.</P>
        <P>This action, which is proposing confidentiality determinations and amended reporting methodologies in subpart I that would reduce the data collection burden for certain facilities, does not contain a federal mandate that may result in expenditures of $100 million or more for state, local, and tribal governments, in the aggregate, or the private sector in any one year. This action does not increase the reporting burden. Thus, this action is not subject to the requirements of sections 202 or 205 of the UMRA.</P>
        <P>In developing Part 98, the EPA consulted with small governments pursuant to a plan established under section 203 of the UMRA to address impacts of regulatory requirements in the rule that might significantly or uniquely affect small governments. For a summary of the EPA's consultations with state and/or local officials or other representatives of state and/or local governments in developing Part 98, see Section VIII.D of the preamble to the final rule (74 FR 56370, October 30, 2009).</P>
        <HD SOURCE="HD2">E. Executive Order 13132: Federalism</HD>

        <P>This action does not have federalism implications. It will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. However, for a<PRTPAGE P="10449"/>more detailed discussion about how Part 98 relates to existing state programs, please see Section II of the preamble to the final rule (74 FR 56266, October 30, 2009).</P>
        <P>This action, which is proposing confidentiality determinations and amended reporting methodologies in subpart I that would reduce the data collection burden, would only apply to certain electronics manufacturers. No state or local government facilities are known to be engaged in the activities that would be affected by the provisions in this proposed rule. This action also does not limit the power of states or localities to collect GHG data and/or regulate GHG emissions. Thus, Executive Order 13132 does not apply to this action.</P>
        <P>In the spirit of Executive Order 13132, and consistent with the EPA policy to promote communications between the EPA and state and local governments, the EPA specifically solicits comment on this proposed action from state and local officials. For a summary of the EPA's consultation with state and local organizations and representatives in developing Part 98, see Section VIII.E of the preamble to the final rule (74 FR 56371, October 30, 2009).</P>
        <HD SOURCE="HD2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</HD>
        <P>This action does not have tribal implications, as specified in Executive Order 13175 (65 FR 67249, November 9, 2000). This action, which proposes confidentiality determinations and proposes amended reporting methodologies in subpart I that would reduce the data collection burden for certain facilities, does not have tribal implications, as specified in Executive Order 13175 (65 FR 67249, November 9, 2000). No tribal facilities are known to be engaged in the activities affected by this action. Thus, Executive Order 13175 does not apply to this action. For a summary of the EPA's consultations with tribal governments and representatives, see Section VIII.F of the preamble to the final rule (74 FR 56371, October 30, 2009). The EPA specifically solicits additional comment on this proposed action from tribal officials.</P>
        <HD SOURCE="HD2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</HD>
        <P>The EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) as applying only to those regulatory actions that concern health or safety risks, such that the analysis required under section 5-501 of the Executive Order has the potential to influence the regulation. This action, which is proposing to (1) assign subpart I data reporting elements into data categories; (2) determine CBI status for the remaining data elements for which determinations have not yet been made; and (3) amend reporting methodologies in subpart I that would reduce the data collection and submittal burden for certain facilities, is not subject to Executive Order 13045 because it does not establish an environmental standard intended to mitigate health or safety risks.</P>
        <HD SOURCE="HD2">H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use</HD>
        <P>This action, which is proposing to (1) assign subpart I data reporting elements into data categories; (2) determine CBI status for the remaining data elements for which determinations have not yet been made; and (3) amend reporting methodologies in subpart I that would reduce the data collection and submittal burden for certain facilities, is not a “significant energy action” as defined in Executive Order 13211 (66 FR 28355 (May 22, 2001)). It is not likely to have a significant adverse effect on the supply, distribution, or use of energy. This action does not increase the reporting burden. The proposed rule amendments in this action do not impose any significant changes to the current reporting requirements contained in 40 CFR part 98, subpart I; rather, the proposed amendments to the reporting requirements would only affect certain electronics manufacturers. Therefore, this action is not subject to Executive Order 13211.</P>
        <HD SOURCE="HD2">I. National Technology Transfer and Advancement Act</HD>
        <P>Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113 (15 U.S.C. 272 note) directs the EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted by voluntary consensus standards bodies. The NTTAA directs the EPA to provide Congress, through OMB, explanations when the agency decides not to use available and applicable voluntary consensus standards.</P>
        <P>This action, which is proposing to (1) assign subpart I data reporting elements into data categories; (2) determine CBI status for the remaining data elements for which determinations have not yet been made; and (3) amend reporting methodologies in subpart I that would reduce the data collection and submittal burden for certain facilities, does not involve technical standards. Therefore, the EPA is not considering the use of any voluntary consensus standards.</P>
        <HD SOURCE="HD2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</HD>
        <P>Executive Order 12898 (59 FR 7629, February 16, 1994) establishes federal executive policy on environmental justice. Its main provision directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States.</P>
        <P>The EPA has determined that this action, which is proposing to (1) assign subpart I data reporting elements into data categories; (2) determine CBI status for the remaining data elements for which determinations have not yet been made; and (3) amend reporting methodologies in subpart I that would reduce the data collection and submittal burden for certain facilities, will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations because it does not affect the level of protection provided to human health or the environment. This action addresses only reporting and recordkeeping procedures.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects 40 CFR Part 98</HD>
          <P>Environmental protection, Administrative practice and procedure, Greenhouse gases, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 10, 2012.</DATED>
          <NAME>Lisa P. Jackson,</NAME>
          <TITLE>Administrator.</TITLE>
        </SIG>
        <P>For the reasons set out in the preamble, title 40, chapter I, of the Code of Federal Regulations is proposed to be amended as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 98—[AMENDED]</HD>
          <P>1. The authority citation for part 98 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>42 U.S.C. 7401-7671q.</P>
          </AUTH>
          <SUBPART>
            <PRTPAGE P="10450"/>
            <HD SOURCE="HED">Subpart I—[Amended]</HD>
          </SUBPART>
          <P>2. Section 98.94 is amended by revising paragraphs (a)(2)(iii), (a)(3)(iii), and (a)(4)(iii) to read as follows:</P>
          <SECTION>
            <SECTNO>§ 98.94</SECTNO>
            <SUBJECT>Monitoring and QA/QC requirements.</SUBJECT>
            <P>(a) * * *</P>
            <P>(2) * * *</P>
            <P>(iii)<E T="03">Approval criteria.</E>To obtain approval, the owner or operator must demonstrate to the Administrator's satisfaction that by July 1, 2011, it is not reasonably feasible to acquire, install, or operate the required piece of monitoring equipment, or procure necessary measurement services to comply with the requirements of this subpart.</P>
            <P>(3) * * *</P>
            <P>(iii)<E T="03">Approval criteria.</E>To obtain approval, the owner or operator must demonstrate to the Administrator's satisfaction that by December 31, 2011 it is not reasonably feasible to acquire, install, or operate the required piece of monitoring equipment or procure necessary measurement services to comply with the requirements of this subpart.</P>
            <P>(4) * * *</P>
            <P>(iii)<E T="03">Approval criteria.</E>To obtain approval, the owner or operator must demonstrate to the Administrator's satisfaction that by December 31, 2011 (or in the case of facilities that are required to calculate and report emissions in accordance with § 98.93(a)(2)(ii)(A), December 31, 2012), it is not reasonably feasible to acquire, install, or operate the required piece of monitoring equipment according to the requirements of this subpart.</P>
            <STARS/>
          </SECTION>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3778 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 302</CFR>
        <DEPDOC>[EPA-HQ-SFUND-2011-0965; FRL-9636-1]</DEPDOC>
        <SUBJECT>Designation of Hazardous Substances; Designation, Reportable Quantities, and Notification</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>EPA is proposing to reinstate the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations by a November 8, 2000 final rule. Also, in the “Rules and Regulations” section of this<E T="04">Federal Register</E>, EPA is reinstating the same maximum observed constituent concentrations via a direct final rule without a prior proposed rule. If we receive no adverse comment, the direct final rule will become effective, and we will not take further action on this proposed rule.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received by March 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Submit your comments, identified by Docket ID No. EPA-HQ-SFUND-2011-0965, by mail to the Environmental Protection Agency, EPA Docket Center (EPA/DC), Superfund Docket Mailcode: 28221T, 1200 Pennsylvania Ave. NW., Washington, DC 20460. Comments may also be submitted electronically or through hand delivery/courier by following the detailed instructions in the<E T="02">ADDRESSES</E>section of the direct final rule located in the “Rules and Regulations” section of this<E T="04">Federal Register</E>.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>For general information, contact the Superfund, TRI, EPCRA, RMP and Oil Information Center at (800) 424-9346 or TDD (800) 553-7672 (hearing impaired). In the Washington, DC metropolitan area, call (703) 412-9810 or TDD (703) 412-3323. For more detailed information on specific aspects of this proposed rule, contact Lynn Beasley at (202) 564-1965 (<E T="03">beasley.lynn@epa.gov</E>), Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460-0002, Mail Code 5104A.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">I. Why is EPA issuing this proposed rule?</HD>

        <P>This document proposes to reinstate the maximum observed constituent concentrations for several listed hazardous wastes that were inadvertently removed from the regulations by a November 8, 2000 final rule. The listed hazardous wastes and the respective reportable quantities are included in the regulations for Hazardous Substances and Reportable Quantities. We have published a direct final rule to reinstate the maximum observed constituent concentrations in the “Rules and Regulations” section of this<E T="04">Federal Register</E>because we view this as a noncontroversial action and anticipate no adverse comment. We have explained our reasons for this action in the preamble to the direct final rule.</P>

        <P>If we receive no adverse comment, we will not take further action on this proposed rule. If we receive adverse comment, however, we will withdraw the direct final rule and it will not take effect. We would address all public comments in any subsequent final rule based on this proposed rule. We do not intend to institute a second comment period on this action. Any parties interested in commenting must do so at this time. For further information, please see the information provided in the<E T="02">ADDRESSES</E>section of this document.</P>
        <HD SOURCE="HD1">II. Does this action apply to me?</HD>
        <GPOTABLE CDEF="s50,r150" COLS="2" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Type of entity</CHED>
            <CHED H="1">Examples of affected entities</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Federal Agencies</ENT>
            <ENT>National Response Center and any Federal agency that may release or respond to releases of hazardous substances.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">State and Local Governments</ENT>
            <ENT>State Emergency Response Commissions, and Local Emergency Planning Committees.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Responsible Parties</ENT>
            <ENT>Those entities responsible for the release of a hazardous substance from a vessel or facility. Those entities with an interest in the substances that were inadvertently removed from the table of maximum observed constituent concentrations for listed hazardous wastes K169, K170, K171, and K172 in 40 CFR 302.6(b)(1)(iii).</ENT>
          </ROW>
        </GPOTABLE>

        <P>This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. This table lists the types of entities that EPA is now aware could potentially be regulated by this action. Other types of entities not listed in the table could also be regulated. If you have questions regarding the applicability of this action to a particular entity, consult the person listed in the preceding<E T="02">FOR FURTHER INFORMATION CONTACT</E>section.</P>
        <HD SOURCE="HD1">III. What does this amendment do?</HD>

        <P>This proposed rule would reinstate the maximum observed constituent concentrations for listed hazardous wastes K169, K170, K171, and K172 to the table found in 40 CFR<PRTPAGE P="10451"/>302.6(b)(1)(iii). A November 8, 2000 final rule (Hazardous Waste Management System; Identification and Listing of Hazardous Waste; Chlorinated Aliphatics Production Wastes; Land Disposal Restriction for Newly Identified Wastes; CERCLA Hazardous Substance Designation and Reportable Quantities; Final Rule) inadvertently removed the maximum observed constituent concentrations for those listed hazardous wastes from the table in that section when it was amended to include the maximum observed constituent concentrations for listed hazardous wastes K174 and K175. (<E T="03">See</E>65 FR 67132.) The maximum observed constituent concentrations were included in the 40 CFR 302.6 regulations to allow generators, transporters, and disposal facilities handling these wastes to calculate reportable quantities (RQs) using the mixture rule<SU>1</SU>
          <FTREF/>developed in connection with the Clean Water Act section 311 regulations. The listed hazardous wastes K169, K170, K171, and K172 and their respective RQs are included in Table 302.4—List of Hazardous Substances and Reportable Quantities and Appendix A to section 302.4—Sequential CAS Registry Number List of CERCLA Hazardous Substances of Title 40 of the Code of Federal Regulations. However, the aforementioned Table 302.4 and Appendix A do not contain the maximum observed constituent concentrations. Section 302.6 is the only source of these maximum observed constituent concentrations contained in 40 CFR 302—Designation, Reportable Quantities, and Notification.</P>
        <FTNT>
          <P>
            <SU>1</SU>44 FR 50767, Aug. 29, 1979, Final Rulemaking; Water Programs; Determination of Reportable Quantities for Hazardous Substances; and 50 FR 13463, Apr. 4, 1985, Final rule; Notification Requirements; Reportable Quantity Adjustments. Discharges of mixtures and solutions are subject to these regulations only where a component hazardous substance of the mixture or solution is discharged in a quantity equal to or greater than its reportable quantity.</P>
        </FTNT>
        <HD SOURCE="HD1">IV. Statutory and Executive Order reviews</HD>

        <P>For a complete discussion of all of the administrative requirements applicable to this action, see the direct final rule in the Rules and Regulations section of this<E T="04">Federal Register</E>.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 302</HD>
          <P>Environmental protection, Air pollution control, Chemicals, Hazardous substances, Hazardous waste, Intergovernmental relations, Natural resources, Reporting and recordkeeping requirements, Superfund, Water pollution control, Water supply.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 14, 2012.</DATED>
          <NAME>Mathy Stanislaus,</NAME>
          <TITLE>Assistant Administrator, Office of Solid Waste and Emergency Response.</TITLE>
        </SIG>
        <P>For the reasons set out, title 40, chapter I of the Code of Federal Regulations is proposed to be amended as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 302—DESIGNATION, REPORTABLE QUANTITIES, AND NOTIFICATION</HD>
          <P>1. The authority citation for part 302 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>42 U.S.C. 9602, 9603, and 9604; 33 U.S.C. 1321 and 1361.</P>
          </AUTH>
          
          <P>2. In § 302.6, paragraph (b)(1)(iii), the table is amended by adding entries K169, K170, K171, and K172 in numerical order to read as follows:</P>
          <SECTION>
            <SECTNO>§ 302.6</SECTNO>
            <SUBJECT>Notification requirements.</SUBJECT>
            <STARS/>
            <P>(b) * * *</P>
            <P>(1) * * *</P>
            <P>(iii) * * *</P>
            <GPOTABLE CDEF="xs60,r100,11.1" COLS="3" OPTS="L1,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Waste</CHED>
                <CHED H="1">Constituent</CHED>
                <CHED H="1">Max ppm</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">K169</ENT>
                <ENT>Benzene</ENT>
                <ENT>220.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">K170</ENT>
                <ENT>Benzene</ENT>
                <ENT>1.2</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (a) pyrene</ENT>
                <ENT>230.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Dibenz (a,h) anthracene</ENT>
                <ENT>49.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (a) anthracene</ENT>
                <ENT>390.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (b) fluoranthene</ENT>
                <ENT>110.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Benzo (k) fluoranthese</ENT>
                <ENT>110.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>3-Methylcholanthrene</ENT>
                <ENT>27.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>7, 12-Dimethylbenz (a) anthracene</ENT>
                <ENT>1,200.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">K171</ENT>
                <ENT>Benzene</ENT>
                <ENT>500.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Arsenic</ENT>
                <ENT>1,600.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">K172</ENT>
                <ENT>Benzene</ENT>
                <ENT>100.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
                <ENT>Arsenic</ENT>
                <ENT>730.0</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
            </GPOTABLE>
            <STARS/>
          </SECTION>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4059 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Chapter I</CFR>
        <DEPDOC>[EPA-HQ-OPPT-2012-0135; FRL-9339-5]</DEPDOC>
        <SUBJECT>Fishing Tackle Containing Lead; Disposition of Petition Filed Pursuant to TSCA Section 21</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Petition, reasons for Agency response.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>On November 17, 2011, EPA received a petition from the Center for Biological Diversity, the Loon Lake Loon Association, and Project Gutpile (petitioners). The petitioners cited section 21 of the Toxic Substances Control Act (TSCA) and requested EPA to initiate a rulemaking under section 6(a) of TSCA applicable to fishing tackle containing lead (e.g., fishing weights, sinkers, lures, jigs, and/or other fishing tackle), of various sizes and uses that are ingested by wildlife, resulting in lead exposure. After careful consideration, EPA denied the petition by letter dated<PRTPAGE P="10452"/>February 14, 2012. This notice explains EPA's reasons for the denial.</P>
        </SUM>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P SOURCE="NPAR">
            <E T="03">For technical information contact:</E>Thomas Groeneveld, National Program Chemicals Division (7404T), Office of Pollution Prevention and Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: (202) 566-1188; fax number: (202) 566-0470; email address:<E T="03">groeneveld.thomas@epa.gov.</E>
          </P>
          <P>
            <E T="03">For general information contact:</E>The TSCA-Hotline, ABVI-Goodwill, 422 South Clinton Ave., Rochester, NY 14620; telephone number: (202) 554-1404; email address:<E T="03">TSCA-Hotline@epa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">I. General Information</HD>
        <HD SOURCE="HD2">A. Does this action apply to me?</HD>

        <P>This action is directed to the public in general. This action may, however, be of interest to you if you manufacture, process, import, or distribute in commerce fishing tackle containing lead. Since other entities may also be interested, the Agency has not attempted to describe all the specific entities that may be affected by this action. If you have any questions regarding the applicability of this action to a particular entity, consult the technical person listed under<E T="02">FOR FURTHER INFORMATION CONTACT</E>.</P>
        <HD SOURCE="HD2">B. How can I access information about this petition?</HD>

        <P>EPA has established a record for this petition response under docket identification (ID) number EPA-HQ-OPPT-2012-0135. All documents in the docket are listed in the docket index available at<E T="03">http://www.regulations.gov.</E>Although listed in the index, some information is not publicly available, e.g., Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available electronically at<E T="03">http://www.regulations.gov,</E>or, if only available in hard copy, at the OPPT Docket. The OPPT Docket is located in the EPA Docket Center (EPA/DC) at Rm. 3334, EPA West Bldg., 1301 Constitution Ave. NW., Washington, DC. The EPA/DC Public Reading Room hours of operation are 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number of the EPA/DC Public Reading Room is (202) 566-1744, and the telephone number for the OPPT Docket is (202) 566-0280. Docket visitors are required to show photographic identification, pass through a metal detector, and sign the EPA visitor log. All visitor bags are processed through an X-ray machine and subject to search. Visitors will be provided an EPA/DC badge that must be visible at all times in the building and returned upon departure.</P>
        <HD SOURCE="HD1">II. TSCA Section 21</HD>
        <HD SOURCE="HD2">A. What is a TSCA section 21 petition?</HD>

        <P>Under TSCA section 21 (15 U.S.C. 2620), any person can petition EPA to initiate a rulemaking proceeding for the issuance, amendment, or repeal of a rule under TSCA section 4, 6, or 8 or an order under TSCA section 5(e) or 6(b)(2). A TSCA section 21 petition must set forth the facts that are claimed to establish the necessity for the action requested. EPA is required to grant or deny the petition within 90 days of its filing. If EPA grants the petition, the Agency must promptly commence an appropriate proceeding. If EPA denies the petition, the Agency must publish its reasons for the denial in the<E T="04">Federal Register</E>. A petitioner may commence a civil action in a U.S. district court to compel initiation of the requested rulemaking proceeding within 60 days of either a denial or the expiration of the 90-day period if EPA fails to respond within 90 days.</P>
        <HD SOURCE="HD2">B. What criteria apply to a decision on a TSCA section 21 petition?</HD>
        <P>Section 21(b)(1) of TSCA requires that the petition “set forth the facts which it is claimed establish that it is necessary” to issue the rule or order requested. 15 U.S.C. 2620(b)(1). Thus, TSCA section 21 implicitly incorporates the statutory standards that apply to the requested actions. In addition, TSCA section 21 establishes standards a court must use to decide whether to order EPA to initiate rulemaking in the event of a lawsuit filed by the petitioner after denial of a TSCA section 21 petition. 15 U.S.C. 2620(b)(4)(B). Accordingly, EPA has relied on the standards in TSCA section 21 and in the provisions under which actions have been requested to evaluate this petition.</P>
        <HD SOURCE="HD1">III. Summary of the Petition</HD>
        <P>On November 17, 2011, the Center for Biological Diversity, the Loon Lake Loon Association, and Project Gutpile petitioned EPA to “evaluate the unreasonable risk of injury to the environment from fishing tackle containing lead (including fishing weights, sinkers, lures, jigs, and/or other tackle) of various sizes and uses that are ingested by wildlife resulting in lead exposure” and to “initiate a proceeding for the issuance of a rulemaking under section 6(a) of TSCA to adequately protect against such risks” (Ref. 1, p. 27). The petition expressly states that this petition “asks the EPA to initiate a rulemaking for regulations that adequately protect wildlife against the unreasonable risk of injury from lead fishing tackle * * *. This petition does not request a specific regulatory alternative. It is the obligation of the EPA to determine the least burdensome alternative that adequately addresses the unreasonable risk of injury” (Ref. 1, p. 8). As such, the petition does not actually identify a rule to be issued, amended, or repealed.</P>
        <P>This is not the first time EPA has been petitioned to take action with respect to fishing tackle containing lead. On August 3, 2010, the Center for Biological Diversity, American Bird Conservancy, Association of Avian Veterinarians, Project Gutpile, and Public Employees for Environmental Responsibility filed a petition under TSCA section 21 requesting that EPA prohibit under TSCA section 6(a) the manufacture, processing, and distribution in commerce of lead fishing gear (Ref. 2). In particular, the 2010 petitioners requested a nationwide, uniform ban on the manufacture, processing, and distribution in commerce of lead for use in all fishing gear, regardless of size, including sinkers, jigs, and other tackle. EPA denied the petition on November 4, 2010 (Ref. 2). The comments that EPA received from states and a state organization about the 2010 petition highlighted the geographic focus of state controls on lead fishing tackle (Ref. 2). Several state fish and game agencies submitted comments, all supporting denial of the petition (Ref. 2).</P>

        <P>Additionally, on October 20, 1992, the Environmental Defense Fund, Federation of Fly Fishers, Trumpeter Swan Society, and North American Loon Fund petitioned EPA under section 21 of TSCA and the Administrative Procedure Act to initiate rulemaking procedures under section 6(a) of TSCA to require that the sale of lead fishing sinkers be accompanied by an appropriate label or notice warning that such products are toxic to wildlife (Ref. 3). EPA granted the petition and, ultimately, in 1994, EPA proposed a rule under section 6(a) of TSCA to prohibit the manufacturing, processing, and distribution in commerce in the United States, of certain smaller size fishing sinkers containing lead and zinc, and mixed with other substances, including those made of brass (59 FR 11122, March 9, 1994). EPA received<PRTPAGE P="10453"/>comments from many states or state agencies in response to the 1994 proposal; the majority of these comments argued that Federal action was not warranted. That proposal has not been finalized and in 2005 EPA indicated its intent to withdraw the proposal (70 FR 27625, May 16, 2005). Given limited resources and competing priorities, EPA has not yet formally withdrawn the proposal but is currently taking steps to do so.</P>
        <HD SOURCE="HD1">IV. Disposition of Petition Filed Pursuant to TSCA Section 21</HD>
        <HD SOURCE="HD2">A. What is EPA's response?</HD>
        <P>On February 14, 2012, EPA denied the November 2011 petition. A copy of the Agency's response, which consists of a letter to the petitioners, is available in the docket for this petition. EPA's reasons for denying the petition are provided in Unit IV.B.</P>
        <HD SOURCE="HD2">B. What are EPA's reason for this denial?</HD>
        <P>In denying the petitioners' request, EPA determined that the petitioners did not demonstrate that Federal action is necessary based, in part, on the fact that the petitioners' supporting data indicate that the issue of wildlife exposure to fishing tackle containing lead has a regional or local geographic context coupled with the fact that the states where risk of injury appears to be greatest (based on documented incidences) are largely the states that have taken action to address the risks posed by lead fishing tackle. While several species of waterfowl are included, the most extensive information provided in the petition pertains to the ingestion by loons of fishing tackle containing lead and indicates that common loons are known to ingest lead objects more frequently than other species of water birds sampled across the United States. For loons, most of the documented cases of lead tackle ingestion cited in the petition are for the time period between 1987 and 2002 and are confined to northern states, all of which are located on or near the northern border of the United States. The U.S. Fish and Wildlife Service report cited in the petition also indicates that loon populations are stable or increasing in all of these northern states where lead tackle ingestion by loons has been documented, with the exception of Washington. While such examples suggest harm to wildlife, and waterfowl in particular, they do not, in and of themselves, demonstrate that Federal rulemaking under section 6(a) of TSCA is necessary.</P>
        <P>Indeed, as evidenced by the petition, since 2000, a number of states have established regulations that ban or restrict the use of lead tackle. In addition, a number of other states have created state education and/or fishing tackle exchange programs. In light of the emergence and expansion of these programs and other activities over the past decade coupled with a paucity of data on bird mortality attributable to lead tackle ingestion during this same timeframe, the petition does not suffice to establish that a Federal action under section 6(a) of TSCA as requested by the petitioners is necessary to adequately protect wildlife.</P>
        <P>Specifically, since 2000, Maine, Massachusetts, New Hampshire, New York, Vermont, and Washington have banned or limited the use of fishing sinkers. Maine, New York, and Vermont have banned the sale of lead fishing sinkers of less than one-half ounce. Two states, Massachusetts and New Hampshire, have expanded the scope of water bodies covered by use prohibitions over time. In Massachusetts, the use of all lead sinkers was initially prohibited in the Quabbin and Wachusett Reservoirs, the loons' primary habitat in the state. The Massachusetts regulations expanded the use prohibitions, effective in 2012, to include additional tackle—lead weights, and lead fishing jigs of less than one ounce—and to encompass all inland waters. In New Hampshire, initial use prohibitions for fishing sinkers and jigs were expanded from lakes and ponds to all waters of the state in 2006. In 2011, Washington State began to regulate fishing tackle containing lead by approving measures to prohibit the use of fishing tackle containing lead at lakes with nesting common loons. EPA also notes that other states (e.g., Minnesota and Wisconsin) have voluntary education or outreach programs, including efforts to discourage the use of fishing tackle containing lead, to raise awareness of lead poisoning in wildlife, and events to exchange fishing tackle containing lead for lead-free alternatives.</P>
        <P>Thus, the trend is that states are being responsive to the harms attributed to fishing tackle containing lead by implementing regulatory and voluntary programs.</P>
        <P>For example, EPA notes that among the states where the petition cites documented cases of lead tackle ingestion by loons, five of the states regulate the use or sale of fishing tackle containing lead and have been doing so since at least 2006. Further, EPA notes that two states with voluntary programs are among the same states. In other words, the states where ingestion of fishing tackle containing lead is best linked to loon mortality have responded with regulatory or voluntary programs. In some cases, these programs have expanded over time. The petition does not demonstrate that these state and local efforts are ineffective or have failed to reduce the exposure and risks presented to waterfowl in particular. In light of these state actions, EPA concludes that the petition does not demonstrate that action under TSCA section 6(a) is necessary to adequately protect wildlife.</P>
        <P>EPA also notes that when Federal actions have been taken to address the use of lead fishing tackle in federally managed lands and water bodies across the nation, they have been limited to specific, localized National Wildlife Refuges, not the entire National Wildlife Refuge System. For example, use of fishing tackle containing lead is prohibited in several wildlife refuges, including in states with breeding loon populations such as Rachel Carson National Wildlife Refuge in Maine, Seney National Wildlife Refuge in Michigan, and Red Rock Lakes National Wildlife Refuge in Montana.</P>
        <P>Moreover, EPA recognizes that state and local natural resource agencies consider geographic context in their resource assessments, and manage these resources based on evaluations of local impacts on fish and wildlife resources and habitats. EPA also is cognizant that these state and local agencies historically have made such evaluations while considering the societal benefits of traditional fishing practices. This perspective is supported by the vast majority of comments received from states and members of the general public on the petition submitted on August 3, 2010 (Ref. 2) and the section 6(a) rule proposed by EPA on March 9, 1994 (59 FR 11122).</P>

        <P>In response to the petition submitted on August 3, 2010, EPA received comments from states and a state organization that highlight the geographic focus of state controls on lead fishing tackle. According to the Association of Fish and Wildlife Agencies, “the exposure to certain migratory birds (primarily loons, and to a lesser extent, swans) and related impacts to populations of those birds is localized, and where impacts have been substantiated to be significant, state fish and wildlife agencies have acted to regulate the use of lead sinkers and jigs. In the northeast, five states have enacted restrictions (e.g., ban in certain bodies of water; ban on certain weights and sizes) on the use of lead fishing tackle where studies have identified lead toxicosis as<PRTPAGE P="10454"/>a contributing factor to declining loon populations. Some states are also offering a fishing tackle exchange program (non-lead for lead products). States have thus demonstrated a responsible exercise of their authority to regulate or restrict lead fishing tackle under circumstances of exposure where it contributes to decline in loon populations” (Ref. 2).</P>
        <P>All state agencies that commented on the 2010 petition supported the denial of the petition and provided several reasons why Federal action is unwarranted (Ref. 2). These comments assert that mortality from ingestion of lead fishing tackle is rare and is primarily limited to some areas of the country, that states are already working closely with the U.S. Fish and Wildlife Service on education and exchange programs, and that where there have been impacts on loons and trumpeter swans, states have already taken action. These states contend that, because policy development is biologically, socially, and economically complex, these impacts are best addressed by geographically targeted actions that the states are undertaking. As noted by these commenters, states in the northern part of the country, where the majority of the impacts on loons in particular have been observed, have taken action to limit or ban the use of lead sinkers or have implemented tackle exchange programs.</P>
        <P>In addition, comments received on the 2010 petition from Members of Congress, representing two different states (e.g., Arkansas and Wisconsin), also opposed Federal action on lead fishing tackle (Ref. 2). A Representative from Wisconsin opposed a prohibition on lead fishing tackle in favor of voluntary education and outreach programs (Ref 2).</P>
        <P>These comments were consistent with the comments EPA received in response to the 1994 proposal. In their comments on the 1994 proposed rule, numerous state fish and wildlife management agencies from across the U.S. commented that they did not believe that the data as a whole (e.g., exposure information, limited incidents of lead toxicity linked to tackle, number of specific species likely to be affected, geographic nature of the issue), support the need for a nationwide ban on fishing tackle containing lead. Many of these states also strongly expressed their opinion that they, as state fish and wildlife agencies, have the best knowledge of the status of bird populations in their states and are therefore best suited to identify if their wildlife resources are impacted, and to determine what the most appropriate management actions should be, if any. In total, the vast majority of these comments opposed the prohibitions in the 1994 proposed rule.</P>
        <P>These comments and the actions taken by states reinforce EPA's conclusion that petitioners have not shown that Federal action under TSCA section 6(a) is necessary to protect wildlife resources at this time.</P>
        <P>EPA also recognizes that the market for fishing tackle and equipment continues to change and that the prevalence of non-lead alternatives in the marketplace continues to increase. While fishing tackle containing lead may still constitute the largest percentage of the market, the availability of lead-free alternatives has increased in the last decade (Ref. 2). New non-lead products have entered the market, and the market share of lead sinkers has decreased (Ref. 2). With improvements in technology, changes in consumer preferences, state-level restrictions, and increased market competition, the market for lead fishing sinkers is expected to continue to decrease while the market for substitutes such as limestone, steel, and tungsten fishing sinkers is expected to continue to increase. (Ref. 2). In light of these trends, the petition does not demonstrate that rulemaking is necessary under TSCA section 6(a).</P>
        <P>In sum, EPA is not persuaded that the action requested by the petitioners is necessary given the mix of regulatory and education actions states agencies and the Federal Government already are taking to address the impact of lead fishing tackle on local environments. The risk described by the petitioners does appear to be more prevalent in some geographic areas than others, and the trend over the past decade has been for increasing state and localized Federal activity regarding lead in fishing tackle. Therefore, EPA concludes that the petition does not demonstrate that action under TSCA section 6(a) is necessary in light of these state and Federal actions.</P>
        <P>Furthermore, for the same reasons stated in this unit, while the petition does provide evidence of exposure and a risk to waterfowl in some areas of the United States, it does not provide a basis for finding that the risk presented is an unreasonable risk. “The finding of unreasonable risk is a judgment under which the decision-maker determines that the risk of health or environmental injury from the chemical substance or mixture outweighs the burden to society of potential regulations” (59 FR 11122, 11138). Again, the risk described by the petitioners appears to be more prevalent in some geographic areas than others, and the trend over the past decade has been for increasing state and localized Federal activity regarding lead in fishing tackle. Given the mix of regulatory and educational actions state agencies and the Federal Government already are taking to address the impact of lead fishing tackle on local environments, and the other considerations described in Unit IV.B., the petition does not demonstrate that exposure from lead fishing tackle presents an unreasonable risk.</P>
        <P>Finally, although EPA proposed to make a finding that lead fishing tackle presented an unreasonable risk in 1994, the Agency did not finalize that rule and indicated its intent to withdraw the proposal in 2005 (70 FR 27625). The Agency's view that the proposal should be withdrawn is buttressed by the emergence and continued expansion of state and local programs in the states that appear to be most affected. Likewise, other data and information (e.g., incidents of lead tackle ingestion and mortality in certain species of waterfowl) that supported that proposal are clearly outdated. To the extent that petitioners rely on that proposal, their reliance is unpersuasive.</P>
        <P>For these reasons, EPA denied the petitioners' request.</P>
        <HD SOURCE="HD1">V. References</HD>
        <P>The following is a list of the documents that are specifically referenced in this notice and placed in the docket that was established under docket ID number EPA-HQ-OPPT-2012-0135. For information on accessing the docket, refer to Unit I.B.</P>
        
        <EXTRACT>

          <FP SOURCE="FP-2">1. Center for Biological Diversity, Loon Lake Loon Association, Project Gutpile. Petition to the Environmental Protection Agency to Regulate Lead Fishing Tackle Under the Toxic Substances Control Act; Petition. (November 16, 2011). Available online at:<E T="03">http://www.epa.gov/oppt/chemtest/pubs/TSCA_sinker_petition.pdf</E>.</FP>

          <FP SOURCE="FP-2">2. U.S. Environmental Protection Agency. Lead Fishing Sinkers and Ammunition Components; Docket. Docket ID: EPA-HQ-OPPT-2010-0681. Available online at:<E T="03">http://www.regulations.gov/#!docketDetail;dct=FR%252BPR%252BN%252BO%252BSR;rpp=10;po=0;D=EPA-HQ-OPPT-2010-0681</E>.</FP>
          <FP SOURCE="FP-2">3. Environmental Defense Fund, Federation of Fly Fishers, the Trumpeter Swan Society, and the North American Loon Fund. Petition to EPA Administrator William K. Reilly pursuant to the Toxic Substances Control Act, and the Administrative Procedure Act; Petition (October 20, 1992).</FP>
        </EXTRACT>
        <LSTSUB>
          <PRTPAGE P="10455"/>
          <HD SOURCE="HED">List of Subjects</HD>
          <P>Environmental protection, Bird, Lead, Lead fishing sinkers, Lead fishing tackle.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 14, 2012.</DATED>
          <NAME>James Jones,</NAME>
          <TITLE>Acting Assistant Administrator, Office of Chemical Safety and Pollution Prevention.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4087 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
        <SUBAGY>National Institutes of Health</SUBAGY>
        <CFR>42 CFR Part 68</CFR>
        <DEPDOC>[Docket No. NIH-2008-0003]</DEPDOC>
        <RIN>RIN 0905-AA43</RIN>
        <SUBJECT>National Institutes of Health Loan Repayment Programs</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Institutes of Health, HHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The National Institutes of Health (NIH) proposes to rescind the current regulations governing two of its eight loan repayment programs and issue in their place a new consolidated set of regulations governing all of the NIH Loan Repayment Programs (LRPs). There are currently eight programs, including three for researchers employed by the NIH (Intramural LRPs) and five for non-NIH scientists (Extramural LRPs). The Intramural LRPs include the Loan Repayment Program for Research with Respect to Acquired Immune Deficiency Syndrome (or AIDS Research LRP); Loan Repayment Program for General Research (or General Research LRP), which includes a program for the Accreditation Council for Graduate Medical Education (ACGME) Fellows; and Loan Repayment Program for Clinical Researchers from Disadvantaged Backgrounds (or Clinical Research LRP for Individuals from Disadvantaged Backgrounds). The Extramural LRPs include the Loan Repayment Program for Contraception and Infertility Research (or Contraception and Infertility Research LRP); Loan Repayment Program for Clinical Researchers from Disadvantaged Backgrounds (or Clinical Research LRP for Individuals from Disadvantaged Backgrounds); Loan Repayment Program for Clinical Research (or Clinical Research LRP); Loan Repayment Program for Pediatric Research (or Pediatric Research LRP); and Loan Repayment Program for Health Disparities Research (or Health Disparities Research LRP). This rule compliments efforts afforded by EO 13563.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before April 23, 2012 in order to ensure that NIH will be able to consider the comments in preparing the final rule.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Persons and organizations interested in submitting comments, identified by RIN 0925-AA43 and Docket Number NIH-2008-0003, may do so by any of the following methods:</P>
          <P>
            <E T="03">Electronic Submissions:</E>You may submit electronic comments in the following way:</P>
          <P>•<E T="03">Federal eRulemaking Portal: Follow the instructions for submitting comments.</E>
          </P>
          

          <FP>To ensure timelier processing of comments, NIH is no longer accepting comments submitted to the agency by email. The NIH encourages you to continue to submit electronic comments by using the Federal eRulemaking Portal:<E T="03">http://www.regulations.gov.</E>
          </FP>
          <P>
            <E T="03">Written Submissions:</E>You may submit written comments in the following ways:</P>
          <P>•<E T="03">Fax:</E>301-402-0169.</P>
          <P>•<E T="03">Mail:</E>Attention Jerry Moore, NIH Regulations Officer, Office of Management Assessment, NIH, 6011 Executive Boulevard, Suite 601, MSC 7669, Rockville, MD 20852-7669.</P>
          <P>•<E T="03">Hand delivery/courier (for paper, disk, or CD-ROM submissions):</E>Attention: Jerry Moore, 6011 Executive Boulevard, Suite 601, Rockville, MD 20852-7669.</P>
          <P>
            <E T="03">Docket:</E>For access to the docket to read background documents or comments received, go to the eRulemaking Portal and insert the docket number provided in brackets in the heading on page one of this document into the “Search” box and follow the prompts.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Jerry Moore, NIH Regulations Officer, Office of Management Assessment, NIH, 6011 Executive Boulevard, Room 601, MSC 7669, Rockville, MD 20892; by email<E T="03">MooreJ@mail.nih.gov</E>; by fax 301-402-0169; or<E T="03">mailto:MooreJ@mail.nih.gov.mailto:(jm40z@nih.gov</E>) by telephone 301-496-4607 (not a toll-free number) for information about the rulemaking process. For program information contact: the NIH Division of Loan Repayment by email<E T="03">lrp@nih.gov</E>or telephone 866-849-4047. Information regarding the requirements, application deadline dates, and an online application for the NIH Loan Repayment Programs may be obtained from the NIH Loan Repayment Program Web site,<E T="03">www.lrp.nih.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>On November 4, 1988, Congress enacted the Health Omnibus Programs Extension of 1988, Public Law (Pub. L.) 100-607, Title VI of which amended the Public Health Service (PHS) Act by adding section 487A (42 U.S.C. 288-1) entitled Loan Repayment Program for Research with Respect to Acquired Immune Deficiency Syndrome. Subsequently, in the NIH Revitalization Act of 1993 (Pub. L. 103-43), Congress enacted the Loan Repayment Program for Research with Respect to Contraception and Infertility (section 487B; 42 U.S.C. 288-2); the Loan Repayment Program for Research Generally (section 487C; 42 U.S.C. 288-3); and the Loan Repayment Program for Clinical Researchers from Disadvantaged Backgrounds (section 487E; 42 U.S.C. 288-5). The Children's Health Act of 2000 (Pub. L. 106-310), which was enacted on October 17, 2000, added the Pediatric Research Loan Repayment Program (section 487F;<SU>1</SU>
          <FTREF/>42 U.S.C. 288-6). On November 13, 2000, the Clinical Research Enhancement Act, contained in the Public Health Improvement Act of 2000 (Pub. L. 106-505), enacted the Loan Repayment Program for Clinical Research (section 487F;<SU>2</SU>
          <FTREF/>42 U.S.C. 288-5a). On November 22, 2000, the Minority Health and Health Disparities Research and Education Act of 2000 (Pub. L. 106-525) enacted the Loan Repayment Program for Health Disparities Research (section 485G, redesignated 464z-5;<SU>3</SU>
          <FTREF/>42 U.S.C. 285t-2).</P>
        <FTNT>
          <P>
            <SU>1</SU>So in law. There are two sections 487F. Section 1002(b) of Public Law 106-310 (114 Stat. 1129), inserted section 487F above. Subsequently, section 205 of Public Law 106-505 (114 Stat. 2329), which relates to the Loan Repayment Program for Clinical Researchers, inserted a section 487F after section 487E.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>So in law. There are two sections 487F. Section 205 of Public Law 106-505 (114 Stat. 2329), inserted section 487F after section 487E. Previously, section 1002(b) of Public Law 106-310 (114 Stat. 1129), which relates to the Pediatric Research Loan Repayment Program, inserted section 487F after section 487E.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>Section 485G of the PHS Act, enacted by Public Law 106-525, was redesignated section 464z-5 by P.L. 111-148.</P>
        </FTNT>

        <P>Sections 487A, 487B, 487C, 487E, and 487F of the PHS Act authorize the Secretary of Health and Human Services, and section 464z-5 authorizes the Director, National Institute on Minority Health and Health Disparities (NIMHD), to enter into contracts with qualified health professionals under which such professionals agree to conduct research in consideration of the Federal Government agreeing to repay, for each year of such service, not more than $35,000 of the principal and<PRTPAGE P="10456"/>interest of the qualified educational loans of such professionals. In return for these loan repayments, applicants must agree to participate in qualifying research for an initial period of not less than two years (or a minimum of three years for the General Research LRP) as one of the following:</P>
        <P>(a) An NIH employee (for Intramural LRPs), or</P>
        <P>(b) A health professional engaged in qualifying research supported by a domestic nonprofit foundation, nonprofit professional association, or other nonprofit institution (e.g., university), or a U.S. or other government agency (Federal, State or local).</P>
        <P>The purpose of the LRP programs is to recruit and retain highly qualified health professionals as biomedical and behavioral researchers. LRP programs offer educational loan repayment for participants who agree, by written contract, to engage in qualifying domestic nonprofit-supported research at a qualifying non-NIH institution, or as an NIH employee, for a minimum of two years (or three years for the Intramural General Research LRP).</P>
        <P>Currently, the Clinical Research LRP for Individuals from Disadvantaged Backgrounds and the Contraception and Infertility Research LRP are governed by their own individual regulations while the other LRPs are without regulations. We propose to consolidate the regulations into a single set of regulations governing all the LRPs.</P>

        <P>More specifically, we propose to rescind the current regulations codified at 42 CFR Part 68a, entitled, National Institutes of Health Clinical Research Loan Repayment Program for Individuals from Disadvantaged Backgrounds (CR-LRP), and 42 CFR Part 68c, entitled, National Institute of Child Health and Human Development Contraception and Infertility Research Loan Repayment Program, and issue a new consolidated set of regulations at 42 CFR part 68, entitled, National Institutes of Health Loan Repayment Programs (LRPs), to govern each of the eight individual NIH Loan Repayment Programs, the three that are for researchers employed by the NIH (<E T="03">Intramural LRPs</E>) and the five that are for non-NIH scientists (<E T="03">Extramural LRPs</E>). The three<E T="03">Intramural LRPs</E>include the AIDS Research LRP, General Research LRP, and Clinical Research LRP for Individuals from Disadvantaged Backgrounds. The five<E T="03">Extramural LRPs</E>include the Contraception and Infertility Research LRP, Clinical Research LRP for Individuals from Disadvantaged Backgrounds, Clinical Research LRP, Pediatric Research LRP, and Health Disparities Research LRP.</P>
        <P>The purpose of this Notice of Proposed Rulemaking (NPRM) is to invite public comment on the proposed actions. We provide the following as public information.</P>
        <HD SOURCE="HD1">Regulatory Impact Analysis</HD>
        <P>We have examined the impacts of this rule as required by Executive Order 12866, Regulatory Planning and Review (September 30, 1993), Executive Order 13563, Improving Regulation and Regulatory Review (January 18, 2011), the Regulatory Flexibility Act (RFA) (September 19, 1980, Pub. L. 96-354), section 202 of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4), and Executive Order 13132 on Federalism (August 4, 1999).</P>
        <HD SOURCE="HD2">Executive Order 12866</HD>
        <P>Executive Order 12866, Regulatory Planning and Review, directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety and other advantages, distributive impacts, and equity). A regulatory impact analysis (RIA) must be prepared for major rules with economically significant effects ($100 million or more in any one year). Based on our analysis, we believe that the proposed rulemaking does not constitute an economically significant regulatory action.</P>
        <HD SOURCE="HD2">The Regulatory Flexibility Act</HD>
        <P>The Regulatory Flexibility Act requires agencies to analyze regulatory options that would minimize any significant impact of the rule on small entities. For the purpose of this analysis, small entities include small business concerns as defined by the Small Business Administration (SBA), usually businesses with fewer than 500 employees. Applicants who are eligible to apply for the loan repayment awards are individuals, not small entities. The Secretary certifies that this rule will not have a significant impact on a significant number of small entities.</P>
        <HD SOURCE="HD2">Section 202(a) of the Unfunded Mandates Reform Act of 1995</HD>
        <P>Section 202(a) of the Unfunded Mandates Reform Act of 1995 requires that agencies prepare a written statement that includes an assessment of anticipated costs and benefits before proposing “any rule that includes any Federal mandate that may result in the expenditure by State, local, and tribal organizations, in the aggregate, or by the private sector, of “$100,000,000 or more (adjusted annually for inflation with base year of 1995) in any one year.” The current inflation-adjusted threshold is approximately $145.5 million. The Secretary certifies that this rule does not mandate any spending by State, local or tribal government in the aggregate or by the private sector. Participation in the NIH loan repayment programs is voluntary and not mandated.</P>
        <HD SOURCE="HD2">Executive Order 13132</HD>
        <P>Executive Order 13132,<E T="03">Federalism,</E>requires that Federal agencies consult with State and local government officials in the development of regulatory policies with federalism implications. We reviewed the rule as required under the Order, and determined that it does not have “federalism implications” because it will not have substantial direct effect on the States, the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Accordingly, under E.O. 13132, no further Agency action or analysis is required.</P>
        <HD SOURCE="HD1">Paperwork Reduction Act</HD>
        <P>This proposed rule does not contain any new information collection requirements that are subject to Office of Management and Budget (OMB) approval under the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35). More specifically, § 68.6 is a reporting requirement, but the specifics of the burden are determined in the approved application forms used by the NIH Loan Repayment Programs and have been approved under OMB No. 0925-0361, Expiration Date: June 30, 2014. Additionally, § 68.3(c), § 68.3(e), § 68.11(c), § 68.14(c), § 68.14(d), and § 68.16(a) are reporting requirements and/or recordkeeping requirements, but they are also covered under OMB No. 0925-0361.</P>
        <HD SOURCE="HD1">Catalog of Federal Domestic Assistance</HD>
        <P>The Catalog of Federal Domestic Assistance numbered programs affected by the proposed regulations are:</P>
        
        <FP SOURCE="FP-2">93.209—Contraception and Infertility Research Loan Repayment Program</FP>
        <FP SOURCE="FP-2">93.220—Clinical Research Loan Repayment Program for Individuals from Disadvantaged Backgrounds</FP>
        <FP SOURCE="FP-2">93.232—Loan Repayment Program for General Research</FP>
        <FP SOURCE="FP-2">93.280—NIH Loan Repayment Program for Clinical Researchers</FP>

        <FP SOURCE="FP-2">93.285—NIH Pediatric Research Loan Repayment Program<PRTPAGE P="10457"/>
        </FP>
        <FP SOURCE="FP-2">93.307—Minority Health and Health Disparities Research</FP>
        <FP SOURCE="FP-2">93.308—Extramural Loan Repayment for Individuals From Disadvantaged Backgrounds Conducting Clinical Research</FP>
        <FP SOURCE="FP-2">93.936—NIH Acquired Immunodeficiency Syndrome Research Loan Repayment Program</FP>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 42 CFR Part 68</HD>
          <P>Health professions, Loan repayment programs—health, Medical research.</P>
        </LSTSUB>
        
        <P>For reasons presented in the preamble, it is proposed to amend title 42 of the Code of Federal Regulations by rescinding the current regulations at parts 68a and 68c, and adding Part 68 that encompasses all NIH Loan Repayment Programs, as set forth below.</P>
        <PART>
          <HD SOURCE="HED">PART 68—NATIONAL INSTITUTES OF HEALTH (NIH) LOAN REPAYMENT PROGRAMS (LRPs)</HD>
          <FP>Sec.</FP>
          <CONTENTS>
            <SECTNO>68.1</SECTNO>
            <SUBJECT>What is the scope and purpose of the NIH LRPs?</SUBJECT>
            <SECTNO>68.2</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <SECTNO>68.3</SECTNO>
            <SUBJECT>Who is eligible to apply?</SUBJECT>
            <SECTNO>68.4</SECTNO>
            <SUBJECT>Who is eligible to participate?</SUBJECT>
            <SECTNO>68.5</SECTNO>
            <SUBJECT>Who is ineligible to participate?</SUBJECT>
            <SECTNO>68.6</SECTNO>
            <SUBJECT>How do individuals apply to participate in the NIH LRPs?</SUBJECT>
            <SECTNO>68.7</SECTNO>
            <SUBJECT>How are applicants selected to participate in the NIH LRPs?</SUBJECT>
            <SECTNO>68.8</SECTNO>
            <SUBJECT>What do the NIH LRPs provide to participants?</SUBJECT>
            <SECTNO>68.9</SECTNO>
            <SUBJECT>What loans qualify for repayment?</SUBJECT>
            <SECTNO>68.10</SECTNO>
            <SUBJECT>What loans are ineligible for repayment?</SUBJECT>
            <SECTNO>68.11</SECTNO>
            <SUBJECT>What does an individual have to do in return for loan repayments received under the NIH LRPs?</SUBJECT>
            <SECTNO>68.12</SECTNO>
            <SUBJECT>How does an individual receive loan repayments beyond the initial applicable contract period?</SUBJECT>
            <SECTNO>68.13</SECTNO>
            <SUBJECT>What will happen if an individual does not comply with the terms and conditions of participation in the NIH LRPs?</SUBJECT>
            <SECTNO>68.14</SECTNO>
            <SUBJECT>Under what circumstances can the service or payment obligation be canceled, waived, or suspended?</SUBJECT>
            <SECTNO>68.15</SECTNO>
            <SUBJECT>When can an NIH LRP payment obligation be discharged in bankruptcy?</SUBJECT>
            <SECTNO>68.16</SECTNO>
            <SUBJECT>Additional conditions.</SUBJECT>
            <SECTNO>68.17</SECTNO>
            <SUBJECT>What other regulations and statutes apply?</SUBJECT>
          </CONTENTS>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>42 U.S.C. 254o, 42 U.S.C. 288-1, 42 U.S.C. 288-2, 42 U.S.C. 288-3, 42 U.S.C. 288-5, 42 U.S.C. 288-5a, 42 U.S.C. 288-6, 42 U.S.C. 285t-2.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 68.1</SECTNO>
            <SUBJECT>What are the scope and purpose of the NIH LRPs?</SUBJECT>
            <P>The regulations of this part apply to the award of educational loan payments authorized by sections 487A, 487B, 487C, 487E, 487F,<SU>1</SU>

              <FTREF/>and 464z-5 of the Public Health Service Act (42 U.S.C. 288-1, 42 U.S.C. 288-2, 42 U.S.C. 288-3, 42 U.S.C. 288-5, 42 U.S.C. 288-5a, 42 U.S.C. 288-6, 42 U.S.C. 285t-2). The purpose of these programs is to address the need for biomedical and behavioral researchers by providing an economic incentive to appropriately qualified health professionals who are engaged in qualifying research supported by domestic nonprofit funding, or as employees of NIH. The NIH Loan Repayment Programs include eight separate programs, three that are<E T="03">Intramural</E>(for NIH researchers) and five that are<E T="03">Extramural</E>(for non-NIH researchers).</P>
            <FTNT>
              <P>
                <SU>1</SU>There are two sections 487F. Section 1002(b) of Public Law 106-310 added section 487F, 42 U.S.C. 288-6, the Pediatric Research Loan Repayment Program. Subsequently, section 205 of Public Law 106-505 also added section 487F, 42 U.S.C. 288-5a, enacting the Loan Repayment Program for Clinical Researchers.</P>
            </FTNT>
            <P>(a) The<E T="03">Intramural LRPs</E>include:</P>
            <P>(1) Loan Repayment Program for Research With Respect to Acquired Immune Deficiency Syndrome (or AIDS Research LRP);</P>
            <P>(2) Loan Repayment Program for General Research (or General Research LRP), including a program for Accreditation Council for Graduate Medical Education (ACGME) Fellows; and</P>
            <P>(3) Loan Repayment Program for Clinical Researchers from Disadvantaged Backgrounds (or Clinical Research LRP for Individuals From Disadvantaged Backgrounds). [This program is also included as a separate program under the Extramural LRPs.]</P>
            <P>(b) The<E T="03">Extramural LRPs</E>include:</P>
            <P>(1) Loan Repayment Program for Contraception and Infertility Research (or Contraception and Infertility Research LRP);</P>
            <P>(2) Loan Repayment Program for Clinical Researchers From Disadvantaged Backgrounds (or Clinical Research LRP for Individuals From Disadvantaged Backgrounds);</P>
            <P>(3) Loan Repayment Program for Clinical Researchers (or Clinical Research LRP);</P>
            <P>(4) Loan Repayment Program for Pediatric Research (or Pediatric Research LRP); and</P>
            <P>(5) Loan Repayment Program for Health Disparities Research (or Health Disparities Research LRP).</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.2</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <P>As used in this part:</P>
            <P>
              <E T="03">Act:</E>Means the Public Health Service Act, as amended (42 U.S.C. 201<E T="03">et seq.</E>).</P>
            <P>
              <E T="03">AIDS Research:</E>Means research activities related to the Acquired Immunodeficiency Syndrome that qualify for inclusion in the AIDS Research LRP.</P>
            <P>
              <E T="03">Applicant:</E>Means an individual who applies to and meets the eligibility criteria for the NIH LRPs.</P>
            <P>
              <E T="03">Breach of Contract:</E>Results when a participant fails to complete the research service or other obligation(s) required under the contract and may be subject to assessment of monetary damages and penalties as defined by statute.</P>
            <P>
              <E T="03">Clinical Research:</E>Is patient-oriented clinical research conducted with human subjects, or research on the causes and consequences of disease in human populations involving material of human origin (such as tissue specimens and cognitive phenomena) for which an investigator or colleague directly interacts with human subjects in an outpatient or inpatient setting to clarify a problem in human physiology, pathophysiology or disease, or epidemiologic or behavioral studies, outcomes research or health services research, or developing new technologies, therapeutic interventions, or clinical trials.</P>
            <P>
              <E T="03">Commercial Loans:</E>Means loans made for educational purposes by banks, credit unions, savings and loan associations, not-for-profit organizations, insurance companies, schools, and other financial or credit institutions that are subject to examination and supervision in their capacity as lending institutions by an agency of the United States or of the State in which the lender has its principal place of business.</P>
            <P>
              <E T="03">Contraception Research:</E>Is defined as research with the ultimate goal of providing new or improved methods of preventing pregnancy.</P>
            <P>
              <E T="03">Current Payment Status:</E>Means that a qualified educational loan is not past due in its payment schedule, as determined by the lending institution.</P>
            <P>
              <E T="03">Debt Threshold:</E>Means the minimum amount of qualified educational debt an individual must have, on their program eligibility date, in order to be eligible for LRP benefits, as established by the Secretary.</P>
            <P>
              <E T="03">Director:</E>Means the Director of the National Institute on Minority Health and Health Disparities (NIMHD) or designee.</P>
            <P>
              <E T="03">Educational Expenses:</E>Means the cost of the health professional's undergraduate, graduate, and health professional school's education, including the tuition expenses and other educational expenses such as living expenses, fees, books, supplies, educational equipment and materials, and laboratory expenses.</P>
            <P>
              <E T="03">Extramural LRPs:</E>Refers to those programs for which health professionals, who are not NIH<PRTPAGE P="10458"/>employees and have program-specified degrees and domestic nonprofit support, are eligible to apply. The Extramural LRPs include the (1) Contraception and Infertility Research LRP, (2) Clinical Research LRP for Individuals from Disadvantaged Backgrounds, (3) Clinical Research LRP, (4) Pediatric Research LRP, and (5) Health Disparities Research LRP.</P>
            <P>
              <E T="03">General Research:</E>Pertains to research that falls within the basic science or clinical research parameters and is not targeted toward a specific area (e.g., AIDS) or type of research (e.g., clinical research). The focus is on biomedical and behavioral research studies and investigations across a variety of scientific disciplines within the mission of NIH.</P>
            <P>
              <E T="03">Government Loans:</E>Means educational loans made by U.S. Federal, State, county, or city agencies that are authorized by law to make such loans.</P>
            <P>
              <E T="03">Health Disparities Population:</E>A population is a health disparity population if, as determined by the Director after consultation with the Director of the Agency for Healthcare Research and Quality, there is a significant disparity in the overall rate of disease incidence, prevalence, morbidity, mortality, or survival rates in the population as compared to the health status of the general population.</P>
            <P>
              <E T="03">Individual From Disadvantaged Background:</E>
            </P>
            <P>(1) Comes from an environment that inhibited the individual from obtaining the knowledge, skill and ability required to enroll in and graduate from a health professions school; or</P>

            <P>(2) Comes from a family with an annual income below a level based on low-income thresholds according to family size published by the U.S. Bureau of the Census, adjusted annually for changes in the Consumer Price Index, and adjusted by the Secretary for use in HHS programs. The Secretary periodically publishes these income levels in the<E T="04">Federal Register</E>.</P>
            <P>
              <E T="03">Infertility Research:</E>Is defined as research with the long-range objective of evaluating, treating or ameliorating conditions that result in the failure of couples to either conceive or bear young.</P>
            <P>
              <E T="03">Institute or Center (IC):</E>Means an Institute or Center of the National Institutes of Health (NIH).</P>
            <P>
              <E T="03">Intramural LRPs:</E>Refers to those programs for which applicants must be employed by NIH. The intramural LRPs include the (1) AIDS Research LRP, (2) General Research LRP, and (3) Clinical Research LRP for Individuals from Disadvantaged Backgrounds.</P>
            <P>
              <E T="03">Institutional Base Salary or Salary:</E>Is the annual income or compensation that the organization pays for the applicant's appointment, whether the time is spent on research, teaching, patient care, or other activities.</P>
            <P>
              <E T="03">Living Expenses:</E>Means the reasonable cost of room and board, transportation and commuting costs, and other reasonable costs incurred during an individual's attendance at an educational institution and is part of the educational loan.</P>
            <P>
              <E T="03">Loan Repayment Programs (LRPs):</E>Refers to the NIH Loan Repayment Programs including those authorized by sections 487A, 487B, 487C, 487E, 487F, and 464z-5 of the Act, as amended.</P>
            <P>
              <E T="03">Loan Repayment Program Contract:</E>Refers to the agreement signed by an applicant and the Secretary or Director (for the following extramural LRPs: Health Disparities Research LRP and Clinical Research LRP for Individuals from Disadvantaged Backgrounds only). Under such an agreement, an Intramural LRP applicant agrees to conduct qualified research as an NIH employee, and an Extramural LRP applicant agrees to conduct qualified research supported by domestic nonprofit funding, in exchange for repayment of the applicant's qualified educational loan(s) for a prescribed period.</P>
            <P>
              <E T="03">NIH:</E>Refers to the National Institutes of Health.</P>
            <P>
              <E T="03">Nonprofit Funding/Support:</E>Applicants must conduct qualifying research supported by a domestic nonprofit foundation, nonprofit professional association, or other nonprofit institution (e.g., university), or a U.S. or other government agency (Federal, State or local). A domestic foundation, professional association, or institution is considered to be nonprofit if exempt from Federal tax under the provisions of Section 501 of the Internal Revenue Code (26 U.S.C. 501).</P>
            <P>
              <E T="03">Participant:</E>Means an individual whose application to any of the NIH LRPs has been approved and whose Program contract has been executed by the Secretary or the Director.</P>
            <P>
              <E T="03">Pediatric Research:</E>Is defined as research directly related to diseases, disorders, and other conditions in children, including pediatric pharmacology.</P>
            <P>
              <E T="03">Program:</E>Refers to the NIH Loan Repayment Program, or LRP.</P>
            <P>
              <E T="03">Program eligibility date:</E>Means the date on which an individual's LRP contract is executed by the Secretary or the Director.</P>
            <P>
              <E T="03">Qualified Educational Loans and Interest/Debt:</E>(See Educational Expenses) as established by the Secretary, include Government and commercial educational loans and interest for (1) undergraduate, graduate, and health professional school tuition expenses; (2) other reasonable educational expenses required by the school(s) attended, including fees, books, supplies, educational equipment and materials, and laboratory expenses; and (3) reasonable living expenses, including the cost of room and board, transportation and commuting costs, and other reasonable living expenses incurred.</P>
            <P>
              <E T="03">Reasonable Educational and Living Expenses:</E>Means those educational and living expenses that are equal to or less than the sum of the school's estimated standard student budget for educational and living expenses for the degree program and for the year(s) during which the participant was enrolled in school. If there is no standard budget available from the school, or if the participant requests repayment for educational and living expenses that exceed the standard student budget, reasonableness of educational and living expenses incurred must be substantiated by additional contemporaneous documentation, as determined by the Secretary.</P>
            <P>
              <E T="03">Repayable debt:</E>Means the proportion, as established by the Secretary, of an individual's total qualified educational debt that can be paid by an NIH LRP.</P>
            <P>
              <E T="03">Salary:</E>Has the same meaning as “institutional base salary.”</P>
            <P>
              <E T="03">School:</E>Means undergraduate, graduate, and health professions schools that are accredited by a body or bodies recognized for accreditation purposes by the U.S. Secretary of Education.</P>
            <P>
              <E T="03">Secretary:</E>Means the Secretary of Health and Human Services or designee.</P>
            <P>
              <E T="03">Service:</E>Means the Public Health Service.</P>
            <P>
              <E T="03">State:</E>Means one of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the U.S. Virgin Islands, Guam, American Samoa, and the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.</P>
            <P>
              <E T="03">Waiver:</E>Means a waiver of the service obligation granted by the Secretary when compliance by the participant is impossible or would involve extreme hardship, or where enforcement with respect to the individual would be unconscionable. (See “<E T="03">Breach of Contract.”</E>)</P>
            <P>
              <E T="03">Withdrawal:</E>Means a request by a participant, prior to the Program making payments on his or her behalf, for withdrawal from Program participation. A withdrawal is without penalty to the<PRTPAGE P="10459"/>participant and without obligation to the Program.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.3</SECTNO>
            <SUBJECT>Who is eligible to apply?</SUBJECT>
            <P>To be eligible for consideration for the NIH LRPs, applicants must meet the following criteria:</P>
            <P>(a) Be citizens, nationals, or permanent residents of the United States;</P>
            <P>(b) Have the necessary degree from an accredited institution as determined by the NIH to be consistent with the needs of the LRP;</P>
            <P>(c)(1)<E T="03">For Intramural LRPs only:</E>Applicants must be employed by the NIH and engage in qualified full-time research as specified by the LRP and be recommended by the employing IC or have a firm commitment of employment from an authorized official of the NIH;</P>
            <P>(2)<E T="03">For Extramural LRPs only:</E>Applicants must be conducting qualified research for an average of at least 20 hours per week that is supported by a domestic nonprofit foundation, nonprofit professional association, or other nonprofit institution (e.g., university), or a U.S. or other government agency (Federal, State or local);</P>
            <P>(d) Have total qualifying educational loan debt as determined on the program eligibility date;</P>
            <P>(e) The NIH or the employing institution must provide an assurance that the applicant will be employed/appointed and provided research support for the applicable term of the LRP contract; and</P>

            <P>(f) Recipients of LRP awards must conduct their research in accordance with applicable Federal, State, and local law (<E T="03">e.g.,</E>applicable human subject protection regulations).</P>
            <P>(g)<E T="03">For Clinical Research for Individuals from Disadvantaged Background only:</E>Individual must be from a disadvantaged background. (See § 68.2, Definitions, Individual from Disadvantaged Background.)</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.4</SECTNO>
            <SUBJECT>Who is eligible to participate?</SUBJECT>
            <P>To be eligible to participate in the NIH LRPs, individuals must:</P>
            <P>(a) Meet the eligibility requirements specified in § 68.3;</P>
            <P>(b) Not be ineligible for participation as specified in § 68.5;</P>
            <P>(c) Engage in qualified research for the contractual period;</P>
            <P>(d) Engage in such research for the percentage of time specified for the particular LRP; and</P>
            <P>(e) Comply with all other terms and conditions of the applicable Loan Repayment Program.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.5</SECTNO>
            <SUBJECT>Who is ineligible to participate?</SUBJECT>
            <P>The following individuals are ineligible for NIH LRP participation:</P>
            <P>(a) Persons who do not meet the eligibility requirements as specified under  § 68.3;</P>
            <P>(b) Any individual who has or had a Federal judgment lien against his/her property arising from Federal debt;</P>
            <P>(c) Persons who owe an obligation of health professional service to the Federal Government, a State, or other entity, unless deferrals or extensions are granted for the length of the service of their LRP contract. The following are examples of programs that have a service obligation:</P>
            <P>(1) Armed Forces (Army, Navy, or Air Force) Professions Scholarship Program,</P>
            <P>(2) Exceptional Financial Need (EFN) Scholarship Program,</P>
            <P>(3) Financial Assistance for Disadvantaged Health Professions Students (FADHPS),</P>
            <P>(4) Indian Health Service (IHS) Scholarship Program,</P>
            <P>(5) National Health Service Corps (NHSC) Scholarship Program,</P>
            <P>(6) National Research Service Award (NRSA) Program,</P>
            <P>(7) NIH Undergraduate Scholarship Program (UGSP),</P>
            <P>(8) Physicians Shortage Area Scholarship Program,</P>
            <P>(9) Primary Care Loan (PCL) Program, and</P>
            <P>(10) Public Health Service Scholarship (PHS) Program;</P>
            <P>
              <E T="03">(d) For extramural LRPs only:</E>Individuals who receive any research funding support or salary from a for-profit institution or organization, or Federal Government employees working more than 20 hours per week;</P>
            <P>(e) Current recipients of NIH intramural training awards, e.g., NIH Intramural Research Training Awards (IRTA) or Cancer Research Training Awards (CRTA);</P>
            <P>(f) Individuals conducting research for which funding is precluded by Federal law, regulation, or HHS/NIH policy or that does not comply with applicable Federal, State, and local law regarding the conduct of the research (e.g., applicable human subject protection regulations);</P>
            <P>(g) Individuals with only ineligible loans or loans that are not educational; and</P>
            <P>(h) Individuals who do not have sufficient qualifying educational debt to meet the debt threshold.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.6</SECTNO>
            <SUBJECT>How do individuals apply to participate in the NIH LRPs?</SUBJECT>
            <P>An application for participation in an NIH LRP shall be submitted to the NIH, which is responsible for the Program's administration, in such form and manner as the Secretary prescribes.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.7</SECTNO>
            <SUBJECT>How are applicants selected to participate in the NIH LRPs?</SUBJECT>
            <P>The NIH LRP awards are competitive. To be selected for participation in an NIH LRP, applicants must satisfy the following requirements:</P>
            <P>(a) Applicants must meet the eligibility requirements specified in § 68.3 and § 68.4.</P>
            <P>(b) Applicants must not be ineligible for participation as specified in § 68.5.</P>
            <P>(c) Upon receipt, applications for any of the NIH LRPs will be reviewed for eligibility and completeness by the NIH Division of Loan Repayment. Incomplete or ineligible applications will not be processed or reviewed further.</P>
            <P>(d)(1)<E T="03">Applications for the Intramural LRPs</E>that are deemed eligible and complete are submitted to the Loan Repayment Committee (LRC), which reviews, ranks, and approves/disapproves LRP awards. The LRC is composed of senior intramural scientists, including basic (bench) and clinical researchers and science policy administrators. Since LRP participation in the Intramural programs is contingent upon NIH employment, applicants must be recommended by the employing IC of the NIH to be considered by the LRC.</P>
            <P>(2)<E T="03">Applications for the Extramural LRPs</E>that are deemed eligible and complete will be referred by the NIH Center for Scientific Review (CSR) to an appropriate NIH IC for peer review. In evaluating the application, reviewers are directed to consider the following components and how they relate to the likelihood that the applicant will continue in a research career:</P>
            <P>(i) Applicant's potential to pursue a career in research as defined by the appropriate LRP:</P>
            <P>(A) Appropriateness of the applicant's previous training and experience to prepare for a research career.</P>
            <P>(B) Appropriateness of the proposed research activities during the LRP contract to foster a career in research.</P>
            <P>(C) Commitment to a research career, as reflected by the personal statement of long-term career goals and plan to achieve those goals.</P>
            <P>(D) Strength of the letters of recommendations attesting to the applicant's potential for a successful career in research.</P>
            <P>(ii) Quality of the overall environment to prepare the applicant for a research career:</P>

            <P>(A) Quality and availability of appropriate scientific mentors and colleagues to help achieve or enhance the applicant's research independence,<PRTPAGE P="10460"/>including the mentors' record in mentoring researchers, funding history, and research productivity.</P>
            <P>(B) Quality and appropriateness of institutional resources and facilities.</P>
            <P>(iii) For the Health Disparities Research LRP, at least 50 percent of the contracts are required by statute to be for appropriately qualified health professionals who are members of a health disparity population.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.8</SECTNO>
            <SUBJECT>What do the NIH LRPs provide to participants?</SUBJECT>
            <P>(a) Loan Repayments: For each year of the applicable service period the individual agrees to serve, the NIH may pay up to $35,000 per year of a participant's repayable debt.</P>
            <P>(b) Payments are made directly to a participant's lender(s). If there is more than one outstanding qualified educational loan, the NIH will repay the loans in the following order, unless the NIH determines significant savings would result from paying loans in a different order of priority:</P>
            <P>(1) Loans guaranteed by the U.S. Department of Health and Human Services;</P>
            <P>(2) Loans guaranteed by the U.S. Department of Education;</P>
            <P>(3) Loans made or guaranteed by a State;</P>
            <P>(4) Loans made by a school; and</P>
            <P>(5) Loans made by other entities.</P>
            <P>(c) Tax Liability Payments: In addition to the loan repayments, the NIH shall make tax payments in an amount equal to 39 percent of the total annual loan repayment to the Internal Revenue Service on the participant's behalf. The NIH may make additional payments to those participants who show increased Federal, State, and/or local taxes as a result of loan repayments.</P>
            <P>(d) Under § 68.8(a), (b), and (c), the NIH will make loan and tax liability payments to the extent appropriated funds are available for these purposes.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.9</SECTNO>
            <SUBJECT>What loans qualify for repayment?</SUBJECT>
            <P>The NIH LRPs will repay participants' lenders the principal, interest, and related expenses of qualified U.S. Government and commercial educational loans obtained by participants for the following:</P>
            <P>(a) Undergraduate, graduate, and health professional school tuition expenses;</P>
            <P>(b) Other reasonable educational expenses required by the school(s) attended, including fees, books, supplies, educational equipment and materials, and laboratory expenses; and</P>
            <P>(c) Reasonable living expenses, including the cost of room and board, transportation and commuting costs, and other living expenses, as determined by the NIH.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.10</SECTNO>
            <SUBJECT>What loans are ineligible for repayment?</SUBJECT>
            <P>The following loans are ineligible for repayment under the NIH LRPs:</P>
            <P>(a) Loans not obtained from a bank, credit union, savings and loan association, not-for-profit organization, insurance company, school, and other financial or credit institution that is subject to examination and supervision in its capacity as a lending institution by an agency of the United States or of the State in which the lender has its principal place of business;</P>
            <P>(b) Loans for which supporting documentation is not available;</P>
            <P>(c) Loans that have been consolidated with loans of other individuals, such as spouses or children;</P>
            <P>(d) Loans or portions of loans obtained for educational or living expenses that exceed the standard of reasonableness as determined by the participant's standard school budget for the year in which the loan was made and are not determined by the NIH to be reasonable based on additional documentation provided by the individual;</P>
            <P>(e) Loans, financial debts, or service obligations incurred under the following programs, or similar programs, which provide loans, scholarships, loan repayments, or other awards in exchange for a future service obligation:</P>
            <P>(1) Armed Forces (Army, Navy, or Air Force) Professions Scholarship Program,</P>
            <P>(2) Exceptional Financial Need (EFN) Scholarship Program,</P>
            <P>(3) Financial Assistance for Disadvantaged Health Professions Students (FADHPS),</P>
            <P>(4) Indian Health Service Scholarship Program,</P>
            <P>(5) National Health Service Corps Scholarship Program,</P>
            <P>(6) National Institutes of Health Undergraduate Scholarship Program (UGSP),</P>
            <P>(7) National Research Service Award (NRSA) Program,</P>
            <P>(8) Physicians Shortage Area Scholarship Program,</P>
            <P>(9) Primary Care Loans (PCL), and</P>
            <P>(10) Public Health Service Scholarship Program;</P>
            <P>(f) Any loan in default, delinquent, or not in a current payment status;</P>
            <P>(g) Any Federal educational loan debt—including debt arising from the conversion of a service obligation to a loan—that has been in default or written off as uncollectible is ineligible for repayment under the Program, even if currently considered to be in good standing;</P>
            <P>(h) Loan amounts that participants were due to have been paid prior to the LRP contract start date;</P>
            <P>(i) Parents PLUS loans (except the Graduate PLUS loans for students);</P>
            <P>(j) Loans for which promissory notes have been signed after the LRP contract start date (with the exception of qualifying student loan consolidations); and</P>
            <P>(k) Home equity loans or other noneducational loans.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.11</SECTNO>
            <SUBJECT>What does an individual have to do in return for loan repayments received under the NIH LRPs?</SUBJECT>
            <P>Individuals must agree to:</P>
            <P>(a) Engage in qualified research for the applicable contract service period;</P>
            <P>(b)(1)<E T="03">For Intramural LRPs:</E>Engage in such research full-time as employees of NIH, or; (2)<E T="03">For Extramural LRPs:</E>Engage in such research for an average of 20 hours per week supported by a domestic nonprofit foundation, nonprofit professional association, or other nonprofit institution (e.g., university), or a U.S. or other government agency (Federal, State or local);</P>
            <P>(c) Keep all loan accounts in good standing, provide timely documentation as needed, including payment verification, service verification, change of research, change of institution, etc. Failure to provide such documentation may result in early termination, and the individual may be subject to statutory financial penalties; and</P>
            <P>(d) Satisfy all of the other terms and conditions of the LRP and the LRP Contract (e.g., Obligations of the Participant). Failure to adhere to the terms and conditions of the LRP contract may result in early termination, and the individual may be subject to statutory financial penalties.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.12</SECTNO>
            <SUBJECT>How does an individual receive loan repayments beyond the initial applicable contract period?</SUBJECT>
            <P>An individual may apply for a competitive extension contract for at least a one-year period if the individual is engaged in qualifying research and satisfies the eligibility requirements specified under § 68.3 and § 68.4 for the extension period and has remaining repayable debt as established by the Secretary.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.13</SECTNO>
            <SUBJECT>What will happen if an individual does not comply with the terms and conditions of participation in the NIH LRPs?</SUBJECT>

            <P>Program participants who breach their Loan Repayment Program Contracts will be subject to the applicable monetary payment provisions set forth at section 338E of the Act (42 U.S.C. 254o). Payment of any amount owed under<PRTPAGE P="10461"/>section 338E of the Act shall be made within one year of the date the participant breached his or her Loan Repayment Program Contract, unless the NIH specifically authorizes a longer period. Terminations will not be considered a breach of contract in cases where such terminations are beyond the control of the participant as follows:</P>
            <P>(a) Terminations for convenience of the Government will not be considered a breach of contract and monetary damages will not be assessed.</P>
            <P>(b) Occasionally, a participant's research assignment or funding may evolve and change to the extent that the individual is no longer engaged in approved research. Similarly, the research needs and priorities of the IC and/or the NIH may change to the extent that a determination is made that a health professional's skills may be better utilized in a nonresearch assignment. Normally, job changes of this nature will not be considered a breach of contract on the part of either the NIH or the participant. Under these circumstances, the following will apply:</P>
            <P>(1) Program participation will cease as of the date an individual is no longer engaged in approved research;</P>
            <P>(2) Based on the approval of the NIH, the participant will be released from the remainder of his or her service obligation without assessment of damages or monetary penalties. The participant in this case will be permitted to retain all Program benefits made or owed by the NIH on his/her behalf up to the date the individual is no longer engaged in research, less the pro rata portion of any benefits advanced beyond the period of completed service.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.14</SECTNO>
            <SUBJECT>Under what circumstances can the service or payment obligation be canceled, waived, or suspended?</SUBJECT>
            <P>(a) Any obligation of a participant for service or payment will be canceled upon the death of the participant.</P>
            <P>(b) The NIH may waive or suspend any service or payment obligation incurred by the participant upon request whenever compliance by the participant: (1) Is impossible, (2) would involve extreme hardship to the participant, or (3) if enforcement of the service or payment obligation would be unconscionable. The NIH may approve a request for a suspension of the service or payment obligations for a period of up to one (1) year.</P>
            <P>(c) Compliance by a participant with a service or payment obligation will be considered impossible if the NIH determines, on the basis of information and documentation as may be required, that the participant suffers from a permanent physical or mental disability resulting in the inability of the participant to perform the service or other activities that would be necessary to comply with the obligation.</P>
            <P>(d) In determining whether to waive or suspend any or all of the service or payment obligations of a participant as imposing an undue hardship and being against good conscience, the NIH, on the basis of such information and documentation as may be required, will consider: (1) The participant's present financial resources and obligations; (2) the participant's estimated future financial resources and obligations; and (3) the extent to which the participant has problems of a personal nature, such as a physical or mental disability or terminal illness in the immediate family, which so intrude on the participant's present and future ability to perform as to raise a presumption that the individual will be unable to perform the obligation incurred.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.15</SECTNO>
            <SUBJECT>When can an NIH LRP payment obligation be discharged in bankruptcy?</SUBJECT>
            <P>Any payment obligation incurred under § 68.13 may be discharged in bankruptcy under Title 11 of the United States Code only if such discharge is granted after the expiration of the seven-year period beginning on the first date that payment is required and only if the bankruptcy court finds that a nondischarge of the obligation would be unconscionable.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.16</SECTNO>
            <SUBJECT>Additional conditions.</SUBJECT>
            <P>(a) When a shortage of funds exists, participants may be funded only partially, as determined by the NIH. However, once an NIH LRP contract has been signed by both parties, the NIH will obligate such funds as necessary to ensure that sufficient funds will be available to pay benefits for the duration of the period of obligated service unless, by mutual written agreement, the parties specify otherwise.</P>
            <P>(b) Additional conditions may be imposed as deemed necessary.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 68.17</SECTNO>
            <SUBJECT>What other regulations and statutes apply?</SUBJECT>
            <P>Several other regulations and statutes apply to this part. These include, but are not necessarily limited to:</P>
            <P>Debt Collection Act of 1982 (31 U.S.C. 3701 note);</P>
            <P>Fair Credit Reporting Act (15 U.S.C. 1681<E T="03">et seq.</E>);</P>
            <P>Federal Debt Collection Procedures Act of 1990 (28 U.S.C. 176); and Privacy Act of 1974 (5 U.S.C. 552a).</P>
          </SECTION>
          <SIG>
            <DATED>Dated: September 28, 2011.</DATED>
            <NAME>Francis S. Collins,</NAME>
            <TITLE>Director, NIH, National Institutes of Health.</TITLE>
            <DATED>Approved: February 7, 2012.</DATED>
            <NAME>Kathleen Sebelius,</NAME>
            <TITLE>Secretary.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3900 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4140-01-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
        <AGENCY TYPE="O">GENERAL SERVICES ADMINISTRATION</AGENCY>
        <AGENCY TYPE="O">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
        <CFR>48 CFR Parts 31 and 52</CFR>
        <DEPDOC>[FAR Case 2011-011; Docket 2011-0011; Sequence 1]</DEPDOC>
        <RIN>RIN 9000-AM13</RIN>
        <SUBJECT>Federal Acquisition Regulation; Unallowability of Costs Associated With Foreign Contractor Excise Tax</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCIES:</HD>
          <P>Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement the requirements of the James Zadroga 9/11 Health and Compensation Act of 2010 regarding the imposition of a 2 percent tax on certain foreign procurements.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Interested parties should submit written comments to the Regulatory Secretariat at one of the addressees shown below on or before April 23, 2012 to be considered in the formation of the final rule.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit comments in response to FAR case 2011-011 by any of the following methods:</P>
          <P>•<E T="03">Regulations.gov: http://www.regulations.gov.</E>Submit comments via the Federal eRulemaking portal by inputting “FAR Case 2011-011” under the heading “Enter Keyword or ID” and selecting “Search.” Select the link “Submit a Comment” that corresponds with “FAR Case 2011-011.” Follow the instructions provided at the “Submit a Comment” screen. Please include your name, company name (if any), and “FAR Case 2011-011” on your attached document.</P>
          <P>•<E T="03">Fax:</E>(202) 501-4067.</P>
          <P>•<E T="03">Mail:</E>General Services Administration, Regulatory Secretariat (MVCB), Attn: Hada Flowers, 1275 First<PRTPAGE P="10462"/>Street NE., 7th Floor, Washington, DC 20417.</P>
          <P>
            <E T="03">Instructions:</E>Please submit comments only and cite FAR Case 2011-011, in all correspondence related to this case. All comments received will be posted without change to<E T="03">http://www.regulations.gov,</E>including any personal and/or business confidential information provided.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Mr. Edward N. Chambers, Procurement Analyst, at (202) 501-3221 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755. Please cite FAR Case 2011-011.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. Background</HD>
        <P>DoD, GSA, and NASA are proposing to revise the FAR to implement a policy that imposes on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of such specified Federal procurement payment. Additionally, the law stipulates that no funds are to be disbursed to any foreign contractor in order to reimburse the tax imposed (26 U.S.C. 5000C Note).</P>
        <P>The James Zadroga 9/11 Health and Compensation Act of 2010 (Pub. L. 111-347) was signed into law and effective on January 2, 2011. Section 301 of the law amends the Internal Revenue Code of 1986 by adding a new Section 5000C, Imposition of tax on certain foreign procurements (26 U.S.C. 5000C). This new section imposes on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of such specified Federal procurement payment. Additionally, the law stipulates that no funds are to be disbursed to any foreign contractor in order to reimburse the tax imposed (26 U.S.C. 5000C Note).</P>
        <HD SOURCE="HD1">II. Discussion and Analysis</HD>
        <P>To comply with the law, the FAR Council is proposing to amend FAR 31.205-41 to inform the Government and contractors that the costs of the 2 percent tax are not allowable, and at FAR 52.229-3, 52.229-4, 52.229-6 and 52.229-7, to provide that the costs for the 2 percent tax are not included in foreign fixed-price contracts and foreign fixed-price contracts with foreign governments. The law states that it “shall be applied in a manner consistent with international agreements.” The law states that the 2 percent excise tax is applied to foreign persons that receive Federal procurement payments pursuant to a contract with the Government of the United States for the provision of goods, if such goods are manufactured or produced in a covered country, or for the provision of services if those services are provided in a covered country. “Covered country” means a country that is not a country that is party to an international procurement agreement with the United States. “Foreign person” means any person (including any individual, partnership, corporation, or other form of association) other than a United States person. The law applies to contracts entered into on or after January 2, 2011. The procedures for withholding this 2 percent tax are being handled in a separate FAR case.</P>
        <HD SOURCE="HD1">III. Executive Orders 12866 and 13563</HD>
        <P>Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.</P>
        <HD SOURCE="HD1">IV. Regulatory Flexibility Act</HD>

        <P>The change may have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act 5 U.S.C. 601,<E T="03">et seq.</E>The Initial Regulatory Flexibility Analysis (IRFA) is summarized as follows:</P>
        
        <EXTRACT>
          <P>At this time an estimate of the number of small entities to which this rule will apply is not available. The 2 percent excise tax is only applied to foreign persons that receive Federal procurement payments pursuant to a contract with the Government of the United States for the provision of goods, if such goods are manufactured or produced in a covered country, or for the provision of services if those services are provided in a covered country. “Foreign person” means any person (including any individual, partnership, corporation, or other form of association) other than a United States person. “Covered country” means a country that is not a country that is party to an international procurement agreement with the United States.</P>
        </EXTRACT>
        
        <P>The Regulatory Secretariat has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.</P>
        <P>DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2011-011) in correspondence.</P>
        <HD SOURCE="HD1">V. Paperwork Reduction Act</HD>
        <P>The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 48 CFR Parts 31 and 52</HD>
          <P>Government procurement.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 14, 2012.</DATED>
          <NAME>Laura Auletta,</NAME>
          <TITLE>Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.</TITLE>
        </SIG>
        
        <P>Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 31 and 52 as set forth below:</P>
        <P>1. The authority citation for 48 CFR parts 31 and 52 continues to read as follows:</P>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).</P>
        </AUTH>
        <PART>
          <HD SOURCE="HED">PART 31—CONTRACT COST PRINCIPLES AND PROCEDURE</HD>
          <P>2. Amend section 31.205-41 by adding paragraph (b)(8) to read as follows:</P>
          <SECTION>
            <SECTNO>31.205-41</SECTNO>
            <SUBJECT>Taxes.</SUBJECT>
            <STARS/>
            <P>(b) * * *</P>
            <P>(8) Any tax imposed under 26 U.S.C. 5000C.</P>
            <STARS/>
          </SECTION>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES</HD>
          <P>3. Amend section 52.229-3 by revising the date of the clause and paragraph (b) to read as follows:</P>
          <SECTION>
            <SECTNO>52.229-3</SECTNO>
            <SUBJECT>Federal, State, and Local Taxes.</SUBJECT>
            <STARS/>
            <HD SOURCE="HD1">Federal, State, and Local Taxes (date)</HD>
            <STARS/>

            <P>(b)(1) The contract price includes all applicable Federal, State, and local<PRTPAGE P="10463"/>taxes and duties, except as provided in subparagraph (b)(2)(i) of this clause.</P>
            <P>(2) Taxes imposed under 26 U.S.C. 5000C may not be—</P>
            <P>(i) Included in the contract price; nor</P>
            <P>(ii) Reimbursed.</P>
            <STARS/>
            <P>4. Amend section 52.229-4 by revising the date of the clause and paragraph (b) to read as follows:</P>
          </SECTION>
          <SECTION>
            <SECTNO>52.229-4</SECTNO>
            <SUBJECT>Federal, State, and Local Taxes (State and Local Adjustments).</SUBJECT>
            <STARS/>
            <HD SOURCE="HD1">Federal, State, and Local Taxes (state and local adjustments) (Date)</HD>
            <STARS/>
            <P>(b)(1) Unless otherwise provided in this contract, the contract price includes all applicable Federal, State, and local taxes and duties, except as provided in subparagraph(b)(2)(i) of this clause.</P>
            <P>(2) Taxes imposed under 26 U.S.C. 5000C may not be—</P>
            <P>(i) Included in the contract price; nor</P>
            <P>(ii) Reimbursed.</P>
            <STARS/>
            <P>5. Amend section 52.229-6 by:</P>
            <P>(a) Revising the date of the clause;</P>
            <P>(b) Redesignating paragraph (c) as (c)(1); removing from the newly designated paragraph (c)(1) “States.” and adding “States, except as provided in subparagraph (c)(2) of this clause.” in its place;</P>
            <P>(c) Adding a new paragraph (c)(2);</P>
            <P>(d) Redesignating paragraph (d) as (d)(1); removing from the newly designated paragraph (d)(1) “The contract price shall” and adding “Except as provided in subparagraph (d)(2) of this clause, the contract price shall” in its place; and</P>
            <P>(e) Adding a new paragraph (d)(2).</P>
            <P>The revised and newly added text reads as follows:</P>
          </SECTION>
          <SECTION>
            <SECTNO>52.229-6</SECTNO>
            <SUBJECT>Taxes-Foreign Fixed—Price Contracts.</SUBJECT>
            <STARS/>
            <HD SOURCE="HD1">Taxes-Foreign Fixed-Price Contracts (Date)</HD>
            <STARS/>
            <P>(c)(1) * * *</P>
            <P>(2) Taxes imposed under 26 U.S.C. 5000C may not be—</P>
            <P>(i) Included in the contract price; nor</P>
            <P>(ii) Reimbursed.</P>
            <P>(d)(1) * * *</P>
            <P>(2) The contract price may not be increased to offset taxes imposed under 26 U.S.C. 5000c.</P>
            <STARS/>
            <P>6. Amend section 52.229-7 by:</P>
            <P>a. Revising the date of the clause;</P>
            <P>b. Redesignating paragraph (b) as (b)(1); and</P>
            <P>c. Adding a new paragraph (b)(2).</P>
            <P>The revised and newly added text reads as follows:</P>
          </SECTION>
          <SECTION>
            <SECTNO>52.229-7</SECTNO>
            <SUBJECT>Taxes-Foreign Fixed-Price Contract With Foreign Governments.</SUBJECT>
            <STARS/>
            <HD SOURCE="HD1">Taxes-Foreign Fixed-Price Contracts With Foreign Governments (Date)</HD>
            <STARS/>
            <P>(b) * * *</P>
            <P>(2) Taxes imposed under 26 U.S.C. 5000c may not be included in the contract price.</P>
            <STARS/>
          </SECTION>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3905 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6820-EP-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <CFR>50 CFR Part 648</CFR>
        <DEPDOC>[Docket No. 120208116-2115-01]</DEPDOC>
        <RIN>RIN 0648-BB83</RIN>
        <SUBJECT>Fisheries of the Northeastern United States; Proposed 2012-2013 Northeast Skate Complex Fishery Specifications</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule; request for comments.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This rule proposes catch limits and associated measures for the Northeast Skate Complex Fishery for the 2012-2013 fishing years. The proposed action was developed by the New England Fishery Management Council pursuant to the provisions of the Northeast Skate Complex Fishery Management Plan. The proposed catch limits are supported by the best available scientific information and reflect recent increases in skate biomass.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Public comments must be received no later than 5 p.m., eastern standard time, on March 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>An environmental assessment (EA) was prepared that describes the proposed action and other considered alternatives, and provides a thorough analysis of the impacts of the proposed measures and alternatives. Copies of the EA and the Initial Regulatory Flexibility Analysis (IRFA), are available on request from Paul J. Howard, Executive Director, New England Fishery Management Council, 50 Water Street, Newburyport, MA 01950. These documents are also available online at<E T="03">http://www.nefmc.org.</E>
          </P>
          <P>You may submit comments, identified by NOAA-NMFS-2012-0015, by any one of the following methods:</P>
          <P>•<E T="03">Electronic Submissions:</E>Submit all electronic public comments via the Federal e-Rulemaking Portal<E T="03">www.regulations.gov</E>. To submit comments via the e-Rulemaking Portal, first click the “Submit a Comment” icon, and then enter “NOAA-NMFS-2012-0015” in the keyword search. Locate the document you wish to comment on from the resulting list, and click on the “Submit a Comment” icon on the right of that line.</P>
          <P>•<E T="03">Fax:</E>(978) 281-9135, Attn: Tobey Curtis.</P>
          <P>•<E T="03">Mail:</E>Daniel Morris, Acting Regional Administrator, NMFS, Northeast Regional Office, 55 Great Republic Drive, Gloucester, MA 01930. Mark the outside of the envelope, “Comments on Skate Specifications.”</P>
          <P>
            <E T="03">Instructions:</E>Comments must be submitted by one of the above methods to ensure that the comments are received, documented, and considered by NMFS. Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered. All comments received are a part of the public record and will generally be posted for public viewing on<E T="03">www.regulations.gov</E>. All personal identifying information (e.g., name, address, etc.) submitted voluntarily by the sender will be publicly accessible. Do not submit confidential business information, or otherwise sensitive or protected information. NMFS will accept anonymous comments (enter “N/A” in the required fields if you wish to remain anonymous). Attachments to electronic comments will be accepted in Microsoft Word or Excel, WordPerfect, or Adobe PDF file formats only.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Tobey Curtis, Fishery Policy Analyst, (978) 281-9273; fax: (978) 281-9135.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>

        <P>The New England Fishery Management Council (Council) is responsible for developing management measures for skate fisheries in the northeastern U.S. through the Northeast Skate Complex Fishery Management Plan (Skate FMP). Seven skate species are managed under the Skate FMP: Winter, little, thorny, barndoor, smooth, clearnose, and rosette. The Council's Scientific and Statistical Committee (SSC) reviews the best available information on the status of skate<PRTPAGE P="10464"/>populations and makes recommendations on acceptable biological catch (ABC) for the skate complex (all seven species). This recommendation is then used as the basis for catch limits and other management measures for the skate fisheries.</P>
        <P>Amendment 3 to the Skate FMP was implemented in July 2010 (75 FR 34049, June 16, 2010). It instituted an annual catch limit (ACL) and accountability measures (AMs) for the skate fishery, created an annual review and specifications process, and set fishery specifications for the 2010-2011 fishing years (through April 30, 2012). The ACL was set equal to the ABC recommendation of the SSC (41,080 metric tons (mt)). Amendment 3 also implemented an annual catch target (ACT), which is 75 percent of the ACL, and annual total allowable landings (TALs) for the skate wing and bait fisheries (TAL = ACT—dead discards and state landings), three seasonal quotas for the bait fishery, and possession limits in each fishery. Skate wing possession limits were subsequently modified by Framework Adjustment 1 (76 FR 28328, May 17, 2011).</P>

        <P>In June 2011, the SSC gave the Council a new recommendation for skate ABC to be used for the 2012-2013 fishing years (50,435 mt). The proposed specifications reflect the best available scientific information on skates. The ABC is calculated by multiplying the median catch/biomass ratio by the most recent 3-year average skate biomass from the NMFS bottom trawl survey. A calibration workshop was conducted in early 2011 to determine the best method to calibrate skate survey biomass between the new survey vessel,<E T="03">Henry B.</E>
          <E T="03">Bigelow,</E>and the retired vessel,<E T="03">Albatross IV.</E>The workshop resulted in minor updates to skate overfishing definitions (described below). Significant increases in the survey biomass of little and winter skates through autumn 2010 supported increases in the ABC recommendation. Additionally, new research on the discard mortality of winter and little skates in trawl gear indicates that the assumed discard mortality rate of 50 percent is too high, and that the dead discard portion of the catch has been overestimated in the past. Updates to estimates on state waters and transfer at sea landings were also incorporated.</P>
        <P>In light of the significant increase in ABC, the Council requested that NMFS implement the revised catch limits through a Secretarial emergency action for the remainder of the 2011 fishing year. NMFS reviewed the Council's request and published a final rule on November 28, 2011, implementing increases in ABC, ACL, ACT, and TALs (76 FR 66856, October 28, 2011). The emergency action provided an otherwise unavailable economic opportunity by allowing the fishery to harvest more skates and have a longer fishing season during the 2011 fishing year. This also helped avoid the detrimental economic impacts that would have been associated with possibly closing the skate fisheries in the absence of the emergency action. These proposed specifications are intended to replace the measures implemented by the 2011 emergency action (which expire April 30, 2012), but are similar to the emergency action measures in most cases.</P>
        <HD SOURCE="HD1">Proposed Measures</HD>
        <P>Based on the June 2011ABC recommendation from the SSC, the Council proposed the following specifications for the skate fishery for the 2012-2013 fishing years:</P>
        <P>1. That the skate ABC and ACL be specified at 50,435 mt;</P>
        <P>2. That the ACT be specified at 37,826 mt;</P>
        <P>3. That the TAL be specified at 23,365 mt (the skate wing fishery would be allocated 66.5 percent of the TAL (15,538 mt) and the skate bait fishery would be allocated 33.5 percent of the TAL (7,827 mt));</P>
        <P>4. That the skate bait possession limit be increased from 20,000 lb (9,072 kg) to 25,000 lb (11,340 kg) whole weight per trip for vessels carrying a valid Skate Bait Letter of Authorization; and,</P>
        <P>5. That the skate wing possession limits be reduced from 2,600 lb (1,179 kg) to 2,200 lb (998 kg) wing weight per trip for Season I (May 1 through August 31), and decreased from 4,100 lb (1,860 kg) to 3,600 lb (1,633 kg) wing weight per trip for Season II (September 1 through April 30).</P>
        <P>As described in the 2011 emergency action, the Council-recommended TAL uses an inappropriately low estimate of state water landings that must be deducted from the ACT (3 percent of total landings). More recent analyses using a more accurate definition of state water landings indicate that the 2007-2009 average state water landings were approximately 6.7 percent of total landings. Therefore, this action proposes to use the same TAL specified in the emergency action (21,561 mt), rather than the slightly higher TAL proposed by the Council and described above. This would effectively keep the skate TALs and associated quotas at status quo levels through the 2013 fishing year (Table 1). This TAL is 56 percent greater than the 2010 and initial 2011 TAL (no action alternative), continuing higher allowable harvest levels for skates.</P>
        <P>This rule proposes minor reductions to the skate wing possession limits in an effort to avoid implementation of the incidental skate wing possession limit (i.e., closure of the directed skate wing fishery) before the end of the fishing year. The possession limit analysis used by the Council was based on skate landing rates in 2010 and early 2011 when landing rates were particularly high. However, landing rates have slowed during 2011, and the wing fishery is not currently projected to harvest 100 percent of its 2011 TAL. Therefore, there may not be justification to reduce the skate wing possession limits for the 2012-2013 fishing years. This rule proposes to increase the skate bait possession limit because the bait fishery consistently under-harvested its quotas in 2010 and 2011. NMFS is requesting comment on whether or not these proposed possession limit changes should be implemented.</P>

        <P>Based upon the results of the trawl survey vessel calibration, this rule proposes to update stock status determination criteria for skates. These updates include refinement of the survey strata used for determining the stock status of each skate species, as described in the EA for this action (see the<E T="02">ADDRESSES</E>section of this proposed rule for how to obtain copies of the EA). The updates of stock status determination criteria also adjust the overfishing definition for clearnose skate. Overfishing would be deemed to be occurring if the 3-year moving average biomass of clearnose skate declines by 40 percent or more (compared to the current threshold of 30 percent), reflecting the higher coefficients of variation (i.e., variability in catch between individual survey tows) for this species with the new trawl survey vessel.</P>

        <P>The specifications in this proposed rule also apply previously unaccounted for skate bait transfers at sea against the skate bait fishery quotas. Analysis indicates that bait transfers at sea, on average, represent approximately 18 percent of total skate landings, and need to be considered when monitoring catch. Finally, in order to be consistent with the requirements of Amendment 3, this rule also proposes to remove a reference to Northeast multispecies sectors in the skate wing possession limit regulations found at § 648.322 (b). The skate wing possession limits were not intended to apply to sector vessels, and this reference should have been removed from the Amendment 3 final<PRTPAGE P="10465"/>rule. This rule does not propose changes to any other regulations implemented by Amendment 3 or Framework Adjustment 1 (including inseason TAL triggers or incidental possession limits).</P>
        <GPOTABLE CDEF="s100,12,12,12" COLS="4" OPTS="L2,i1">
          <TTITLE>Table 1—No Action and Proposed 2012-2013 Skate ABC and Associated Catch Limits (mt)</TTITLE>
          <BOXHD>
            <CHED H="1"/>
            <CHED H="1">No action</CHED>
            <CHED H="1">Preferred</CHED>
            <CHED H="1">Percent<LI>difference</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">ABC</ENT>
            <ENT>41,080</ENT>
            <ENT>50,435</ENT>
            <ENT>+23</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ACL</ENT>
            <ENT>41,080</ENT>
            <ENT>50,435</ENT>
            <ENT>+23</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ACT</ENT>
            <ENT>30,810</ENT>
            <ENT>37,826</ENT>
            <ENT>+23</ENT>
          </ROW>
          <ROW>
            <ENT I="01">TAL</ENT>
            <ENT>13,848</ENT>
            <ENT>21,561</ENT>
            <ENT>+56</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Wing TAL</ENT>
            <ENT>9,209</ENT>
            <ENT>14,338</ENT>
            <ENT>+56</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Bait TAL</ENT>
            <ENT>4,639</ENT>
            <ENT>7,223</ENT>
            <ENT>+56</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Assumed Discard Rate</ENT>
            <ENT>52.0%</ENT>
            <ENT>36.3%</ENT>
            <ENT>−30</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Assumed State Landings</ENT>
            <ENT>3.0%</ENT>
            <ENT>6.7%</ENT>
            <ENT>+123</ENT>
          </ROW>
        </GPOTABLE>
        <P>The proposed specifications are expected to maintain positive economic impacts for the fishery, such as the increases in skate revenues that resulted from implementation of the emergency rule, while also maintaining the conservation objectives of the Skate FMP. Although the landings of skate wings are expected to remain high under the proposed specifications, overall catch of skates will not likely be significantly affected due to the nature of the skate wing fishery, which is primarily an incidental fishery within the groundfish and monkfish fisheries. Under the no action alternative with lower quotas, once the possession limit trigger is reached, skates that are caught in these primary fisheries above the incidental possession limit of 500 lb (227 kg) would be discarded. This proposed rule would enable fishermen to continue to retain and land for sale those skates that would otherwise have to be discarded.</P>
        <HD SOURCE="HD1">Classification</HD>
        <P>Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the NMFS Assistant Administrator has made a preliminary determination that this proposed rule is consistent with the Skate FMP, other provisions of the Magnuson-Stevens Act, and other applicable law, subject to further consideration after public comment.</P>
        <P>The Office of Management and Budget has determined that this proposed rule is not significant for the purposes of Executive Order 12866.</P>

        <P>The Council prepared an IRFA, as required by section 603 of the Regulatory Flexibility Act (RFA). The IRFA describes the economic impact this proposed rule, if adopted, would have on small entities. A description of this action, why it is being considered, and the legal basis for this action are contained at the beginning of this section of the preamble and in the<E T="02">SUMMARY</E>of this proposed rule. A summary of the IRFA follows. A copy of the complete IRFA analysis is available from the Council (see<E T="02">ADDRESSES</E>).</P>
        <P>The Small Business Administration (SBA) considers commercial fishing entities (NAICS code 114111) to be small entities if they have no more than $4 million in annual sales, while the size standard for charter/party operators (NAICS code 487210) is $7 million in sales. All of the entities (fishing vessels) affected by this action are considered small entities under the SBA size standards for small fishing businesses. Although multiple vessels may be owned by a single owner, available tracking of ownership is not readily available to reliably ascertain affiliated entities. Therefore, for the purposes of this analysis, each permitted vessel is treated as a single small entity and is determined to be a small entity under the RFA. Accordingly, there are no differential impacts between large and small entities under this rule. Information on costs in the fishery is not readily available, and individual vessel profitability cannot be determined directly; therefore, expected changes in gross revenues were used as a proxy for profitability.</P>
        <P>This action does not introduce any new reporting, recordkeeping, or other compliance requirements. This proposed rule does not duplicate, overlap, or conflict with other Federal rules.</P>
        <HD SOURCE="HD2">Description and Estimate of Number of Small Entities to Which the Rule Would Apply</HD>
        <P>The proposed increase in the skate ACL and TALs would impact vessels that hold Federal open access commercial skate permits that participate in the skate fishery. According to the Framework 1 final rule and Final Regulatory Flexibility Analysis (76 FR 28328, May 17, 2011), as of December 31, 2010, the maximum number of small fishing entities (as defined by the SBA) that may be affected by this action is 2,607 entities (number of skate permit holders). However, during fishing year 2010, only 601 vessels landed any amount of skate.</P>
        <HD SOURCE="HD2">Economic Impacts of the Proposed Action Compared to Significant Non-Selected Alternatives</HD>
        <P>The purpose of annual fishery specifications is to ensure that management measures accurately reflect the best available scientific information. The proposed action represents the maximum catch limits that could be implemented under the approved Skate FMP and regulations. Alternatives with higher catch limits, that might provide increased fishing opportunities, were not considered because such alternatives would be inconsistent with the Magnuson-Stevens Act and the Skate FMP. Any other alternatives would provide fewer fishing opportunities than the proposed action; therefore, the IRFA analyzes only the proposed action and the no action alternative.</P>

        <P>The purpose of the proposed action is to maintain the increased skate catch and landing limits of the emergency rule, thereby providing economic benefits to the fishery by continuing to extend the duration of the fishing season. This contrasts with the negative economic impacts that would be associated with the lower catch limits and potential fishery closures that would occur under the no action alternative. The proposed action is expected to maximize the short-term profitability for the skate fishery by continuing higher levels of landings for fishing years 2012 and 2013. It is also expected to minimize potential long-term economic impacts by implementing catch levels that are sustainable and that contribute to stock rebuilding. Therefore, the economic impacts resulting from the proposed<PRTPAGE P="10466"/>action as compared to the no action alternative are positive.</P>
        <P>The proposed action is almost certain to result in greater revenue from skate landings. Based on recent landing information, the skate fishery is able to land close to the full amount of skates allowable under the quotas. The estimated potential revenue from the sale of skates under the proposed catch limits is approximately $9.8 million per year, compared to $5.8 million if this action were not implemented. However, vessels that participate in the skate fishery derive most (an average of 96 percent) of their revenues from other fisheries (e.g., groundfish, monkfish). In fishing year 2010, the average total revenue (from all species combined) for the 601 vessels that landed skates was $234,389, of which an average of $17,042 was derived from skates. Therefore alterations to catch limits of other species would be expected to result in greater impacts on total fishing revenues than would alterations in skate catch limits. The proportion of revenue derived from skates may change over time, as skate prices have begun increasing in recent years, and more vessels have been deriving a greater proportion of their income from skates.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Alan D. Risenhoover,</NAME>
          <TITLE>Acting Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service.</TITLE>
        </SIG>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 50 CFR Part 648</HD>
          <P>Fisheries, Fishing, Reporting and recordkeeping.</P>
        </LSTSUB>
        
        <P>For the reasons set out in the preamble, 50 CFR part 648 is proposed to be amended as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 648—FISHERIES OF THE NORTHEASTERN UNITED STATES</HD>
          <P>1. The authority citation for part 648 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>16 U.S.C. 1801<E T="03">et seq.</E>
            </P>
          </AUTH>
          
          <P>2. In § 648.322, revise paragraph (b) introductory text, (b)(1) and (c)(4) to read as follows:</P>
          <SECTION>
            <SECTNO>§ 648.322</SECTNO>
            <SUBJECT>Skate allocation, possession, and landing provisions.</SUBJECT>
            <STARS/>
            <P>(b)<E T="03">Skate wing possession and landing limits.</E>A vessel or operator of a vessel that has been issued a valid Federal skate permit under this part, and fishes under an Atlantic sea scallop, NE multispecies, or monkfish DAS as specified at §§ 648.53, 648.82, and 648.92, respectively, unless otherwise exempted under § 648.80 or paragraph (c) of this section, may fish for, possess, and/or land up to the allowable trip limits specified as follows:</P>
            <P>(1) Up to 2,200 lb (998 kg) of skate wings (4,994 lb (2,265 kg) whole weight) per trip from May 1 through August 31, and 3,600 lb (1,633 kg) of skate wings (8,172 lb (3,707 kg) whole weight) per trip from September 1 through April 30, except for a vessel fishing on a declared NE multispecies Category B DAS described under § 648.85(b), which is limited to no more than 220 lb (100 kg) of skate wings (500 lb (227 kg) whole weight) per trip (or any prorated combination of skate wings and whole skates based on the conversion factor for wing weight to whole weight of 2.27—for example, 100 lb (45.4 kg) of skate wings X 2.27 = 227 lb (103.1 kg) of whole skates).</P>
            <STARS/>
            <P>(c) * *  *</P>
            <P>(4) The vessel owner or operator possesses or lands no more than 25,000 lb (11,340 kg) of only whole skates less than 23 inches (58.42 cm) total length, and does not possess or land any skate wings or whole skates greater than 23 inches (58.42 cm) total length.</P>
            <STARS/>
          </SECTION>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4111 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <CFR>50 CFR Part 660</CFR>
        <DEPDOC>[Docket No. 120207106-2105-01]</DEPDOC>
        <RIN>RIN 0648-BB85</RIN>
        <SUBJECT>Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; 2012 Tribal Fishery for Pacific Whiting</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule; request for comments.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>NMFS issues this proposed rule for the 2012 Pacific whiting fishery under the authority of the Pacific Coast Groundfish Fishery Management Plan (FMP), the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), and the Pacific Whiting Act of 2006. This proposed rule would establish a tribal allocation of 17.5 percent of the U.S. total allowable catch (TAC) for 2012.</P>
          <P>The regulations proposed by this action would also establish a process for reapportionment of unused tribal allocation of Pacific whiting to the non-tribal fisheries.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments on this proposed rule must be received no later than 5 p.m., local time on March 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments, identified by RIN 0648-BB85 by any of the following methods:</P>
          <P>•<E T="03">Electronic Submissions:</E>Submit all electronic public comments via the Federal eRulemaking Portal, at<E T="03">http://www.regulations.gov.</E>To submit comments via the e-Rulemaking Portal, first click the “submit a comment” icon, then enter (RIN Number) in the keyword search. Locate the document you wish to comment on from the resulting list and click on the “Submit a Comment” icon on the right of that line.</P>
          <P>•<E T="03">Fax:</E>206-526-6736, Attn: Kevin C. Duffy.</P>
          <P>•<E T="03">Mail:</E>William W. Stelle, Jr., Regional Administrator, Northwest Region, NMFS, 7600 Sand Point Way NE., Seattle, WA 98115-0070, Attn: Kevin C. Duffy.</P>
          <P>
            <E T="03">Instructions:</E>All comments received are a part of the public record and will generally be posted to<E T="03">http://www.regulations.gov</E>without change. All Personal Identifying Information (for example, name, address, etc.) voluntarily submitted by the commenter may be publicly accessible. Do not submit Confidential Business Information or otherwise sensitive or protected information.</P>
          <P>NMFS will accept anonymous comments (if submitting comments via the Federal Rulemaking portal, enter “N/A” in the relevant required fields if you wish to remain anonymous). Attachments to electronic comments will be accepted in Microsoft Word, Excel, WordPerfect, or Adobe PDF file formats only.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Kevin C. Duffy (Northwest Region, NMFS), phone: 206-526-4743, fax: 206-526-6736 and email:<E T="03">kevin.duffy@noaa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Electronic Access</HD>

        <P>This proposed rule is accessible via the Internet at the Office of the Federal Register's Web site at<E T="03">http://www.gpo.gov/fdsys/search/home.action.</E>Background information and documents are available at the Pacific Fishery Management Council's Web site at<E T="03">http://www.pcouncil.org/.</E>
        </P>
        <HD SOURCE="HD1">Background</HD>

        <P>The regulations at 50 CFR 660.50(d) establish the process by which the tribes with treaty fishing rights in the area<PRTPAGE P="10467"/>covered by the Pacific Coast Groundfish Fishery Management Plan (FMP) request new allocations or regulations specific to the tribes, in writing, during the biennial harvest specifications and management measures process. The regulations state that “the Secretary will develop tribal allocations and regulations under this paragraph in consultation with the affected tribe(s) and, insofar as possible, with tribal consensus.” These procedures employed by NOAA in implementing tribal treaty rights under the FMP, in place since May 31, 1996, were designed to provide a framework process by which NOAA Fisheries can accommodate tribal treaty rights by setting aside appropriate amounts of fish in conjunction with the Pacific Fishery Management Council (Council) process for determining harvest specifications and management measures. The Council's groundfish fisheries require a high degree of coordination among the tribal, state, and federal co-managers in order to rebuild overfished species and prevent overfishing, while allowing fishermen opportunities to sustainably harvest over 90 species of groundfish managed under the FMP.</P>
        <P>Since 1996, NMFS has been allocating a portion of the U.S. TAC (called Optimum Yield (OY) or Annual Catch Limit (ACL) prior to 2012) of Pacific whiting to the tribal fishery following the process established in 50 CFR 660.50(d). The tribal allocation is subtracted from the U.S. Pacific whiting TAC before allocation to the non-tribal sectors.</P>
        <P>To date, only the Makah Tribe has prosecuted a tribal fishery for Pacific whiting. The Makah Tribe has annually harvested a whiting allocation every year since 1996 using midwater trawl gear. Since 1999, the tribal allocation has been made in consideration of their participation in the fishery. In 2008 the Quileute Tribe and Quinault Indian Nation expressed an interest in commencing participation in the whiting fishery. Tribal allocations for 2009-2011 were based on discussions with all three tribes regarding their intent for those fishing years. The table below provides a history of U.S. OYs/ACLs and the annual tribal allocation in metric tons (mt).</P>
        <GPOTABLE CDEF="s30,12,12" COLS="3" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Year</CHED>
            <CHED H="1">U.S. OY<LI>(mt)</LI>
            </CHED>
            <CHED H="1">Tribal<LI>allocation</LI>
              <LI>(mt)</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">2000</ENT>
            <ENT>232,000</ENT>
            <ENT>32,500</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2001</ENT>
            <ENT>190,400</ENT>
            <ENT>27,500</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2002</ENT>
            <ENT>129,600</ENT>
            <ENT>22,680</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2003</ENT>
            <ENT>148,200</ENT>
            <ENT>25,000</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2004</ENT>
            <ENT>250,000</ENT>
            <ENT>32,500</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2005</ENT>
            <ENT>269,069</ENT>
            <ENT>35,000</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2006</ENT>
            <ENT>269,069</ENT>
            <ENT>32,500</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2007</ENT>
            <ENT>242,591</ENT>
            <ENT>35,000</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2008</ENT>
            <ENT>269,545</ENT>
            <ENT>35,000</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2009</ENT>
            <ENT>135,939</ENT>
            <ENT>50,000</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2010</ENT>
            <ENT>193,935</ENT>
            <ENT>49,939</ENT>
          </ROW>
          <ROW>
            <ENT I="01">2011</ENT>
            <ENT>290,903</ENT>
            <ENT>66,908</ENT>
          </ROW>
        </GPOTABLE>
        <P>Prior to publication of the regulations for the 2011-2012 harvest specification biennial cycle, all three tribes mentioned above indicated their intent to participate at some point during this biennium. The Quinault Nation indicated that they were interested in entering the fishery in 2011, and both the Quileute and Makah Tribes indicated they intended to fish in both 2011 and 2012. Only the Makah tribe participated in the fishery in 2011. Based on exchanges with the tribes during November 2011, and again in January 2012, it appears that only the Makah tribe will participate in the Pacific whiting fishery in 2012.</P>
        <P>Since 2008, NMFS and the co-managers, including the States of Washington and Oregon, as well as the Treaty tribes, have been involved in a process designed to determine the long-term tribal allocation for Pacific whiting. At the September 2008 Council meeting, NOAA, the states and the Quinault, Quileute, and Makah tribes met and agreed on a process in which NOAA would provide to the tribes and states of Washington and Oregon a summary of the current scientific information regarding whiting, receive comment on the information and possible analyses that might be undertaken, and then prepare analyses of the information to be used by the co-managers (affected tribes, affected states, and NMFS) in developing a tribal allocation for use in 2010 and beyond. The goal was agreement among the co-managers on a long-term tribal allocation for incorporation into the Council's planning process for the 2010 season. An additional purpose was to provide the tribes the time and information to develop an inter-tribal allocation or other necessary management agreement. In 2009, NMFS shared a preliminary report summarizing scientific information available on the migration and distribution of Pacific whiting on the west coast. The co-managers met in 2009 and discussed this preliminary information.</P>
        <P>In 2010, NMFS finalized the report summarizing scientific information available on the migration and distribution of Pacific whiting on the west coast. In addition, NMFS responded in writing to requests from the tribes for clarifications on the paper and requests for additional information. NMFS also met with each of the tribes in the fall of 2010 to discuss the report and to discuss a process for negotiation of the long-term tribal allocation of Pacific whiting.</P>
        <P>In 2011, NMFS again met individually with the Makah, Quileute, and Quinault tribes to discuss these matters. Due to the detailed nature of the evaluation of the scientific information, and the need to negotiate a long-term tribal allocation following completion of the evaluation, the process is continuing and will not be completed prior to the 2012 Pacific whiting fishery; thus the tribal allocation of whiting for 2012 will not reflect a negotiated long-term tribal allocation. Instead, it is an interim allocation not intended to set precedent for future allocations.</P>
        <HD SOURCE="HD1">Tribal Allocation for 2012</HD>

        <P>It is necessary to propose a range for the tribal allocation, rather than a specific allocation amount, because the specific allocation depends on the amount of the coastwide TAC (United States plus Canada) and corresponding U.S. TAC for 2012 (73.88% of the coastwide TAC). The Joint Management Committee (JMC), which is established pursuant to the _ Agreement between the Government of the United States of America and the Government of Canada on Pacific Hake/Whiting _ (the Agreement)<E T="03">,</E>is anticipated to recommend the coastwide and corresponding U.S./Canada TACs no later than March 25, 2012.</P>
        <P>In the final Environmental Impact Statement (FEIS) addressing the groundfish fishery for the 2011 and 2012 harvest specifications and management measures, a range of 50 to 150 percent of the 2010 coastwide harvest level was analyzed.</P>
        <P>The Council adopted a coastwide Overfishing Limit (OFL) of 973,700 mt for 2011 fisheries using the model-averaged results as recommended by the Council's Scientific and Statistical Committee (SSC). The Council recommended a coastwide harvest level of 393,751 mt for 2011 fisheries. Consistent with the terms of the Agreement, the U.S. allocation of the coastwide harvest level is 73.88 percent, which equated to 290,903 mt for 2011.</P>

        <P>In order for the public to have an understanding of the potential tribal whiting allocation in 2012, NMFS is using the range of potential TACs analyzed in the 2011 FEIS to project a range of potential tribal allocations for 2012. Application of this range for 2011<PRTPAGE P="10468"/>resulted in a potential U.S. TAC of between 96,969 mt and 290,903 mt.</P>
        <P>As described above, based on exchanges with the tribes during November 2011, and more recently in January, 2012, it appears that only the Makah tribe will participate in the Pacific whiting fishery in 2012, and they have requested 17.5% of the U.S. TAC. Application of this percentage to the range of U.S. TACs results in a tribal allocation of between 16,970 and 50,908 mt for 2012. NMFS believes that the current scientific information regarding the distribution and abundance of the coastal Pacific whiting stock suggests that 17.5 percent of the U.S. TAC is within the range of the tribal treaty right to Pacific whiting.</P>
        <P>As described earlier, NOAA Fisheries proposes this rule as an interim allocation for the 2012 tribal Pacific whiting fishery. As with past allocations, this proposed rule is not intended to establish any precedent for future whiting seasons or for the long-term tribal allocation of whiting.</P>

        <P>The proposed rule would be implemented under authority of Section 305(d) of the Magnuson-Stevens Act, which gives the Secretary responsibility to “carry out any fishery management plan or amendment approved or prepared by him, in accordance with the provisions of this Act.” With this proposed rule, NMFS, acting on behalf of the Secretary, would ensure that the FMP is implemented in a manner consistent with treaty rights of four Northwest tribes to fish in their “usual and accustomed grounds and stations” in common with non-tribal citizens.<E T="03">United States</E>v<E T="03">. Washington,</E>384 F. Supp. 313 (W.D. 1974).</P>
        <HD SOURCE="HD1">Reapportionment of Pacific Whiting</HD>
        <P>NMFS proposes to reinstate its regulatory authority to reapportion whiting from the tribal allocation to the non-tribal fishery when the tribes participating in the fishery will not take the entire tribal allocation during the fishing year. From 1997 through 2010, 50 CFR 660.323(c) provided authority to NMFS to undertake such reapportionment. For 2011, the regulatory provisions regarding reapportionment of tribal whiting allocation to the non-tribal fishery were eliminated when regulations implementing Amendment 21 were adopted in support of the trawl rationalization program. Revisions to the groundfish regulations at § 660.55 defined how “off the top” set-asides for all species, including the tribal allocation of Pacific whiting, would be dealt with. The new provisions did not allow flexibility to return the “off the top” set asides, including those for Pacific whiting, to other sectors of the fishery. Following implementation of the catch share program, the Council had additional discussions about reapportionment of the tribal allocation of Pacific whiting. The Council recommended that NMFS reinstate reapportionment provisions in order to promote full utilization of the Pacific whiting resource. NMFS is taking action at this time to reinstate similar reapportionment provisions, recognizing that modifications are needed to fit within the new regulatory structure implemented for the IFQ fishery.</P>
        <P>By September 15 of the fishing year, the Regional Administrator will consider, based on discussions with tribal representatives, the tribal harvests to date and catch projections for the remainder of the year relative to the tribal allocation as specified at § 660.50 of Pacific whiting. That portion of the tribal allocation the Regional Administrator determines will not be used by the end of the fishing year may be made available for harvest by the other sectors of the trawl fishery, on September 15 or as soon as practicable thereafter. Based on the same factors described above, the Regional Administrator may reapportion whiting again at a later date to ensure full utilization of the resource. Any reapportionment of Pacific whiting from the tribal to the non-tribal sectors will be distributed in a manner consistent with the initial allocation of Pacific whiting among the non-tribal sectors, with 34 percent to the catcher-processor sector, 24 percent to the mothership sector, and 42 percent to the shorebased sector.</P>
        <P>Current regulations at 50 CFR 660.140(d)(3)(ii)(B)(3) require that all Quota Pounds (QP) or Individual Bycatch Quota (IBQ) pounds from a Quota Share (QS) account must be transferred to one or more vessel accounts by September 1 of each year. This effectively closes QS accounts for the year.</P>
        <P>If the Regional Administrator makes a decision to reapportion Pacific whiting from the tribal to the non-tribal fishery after September 1 in any year, the following actions will be taken.</P>
        <P>NMFS will credit QS accounts with additional Pacific whiting quota pounds proportionally, based on the whiting QS percent for a particular QS permit owner and the amount of the sector reapportionment. The QS account transfer function will be reactivated by NMFS for a period of 30 days to allow permit holders to transfer only Pacific whiting QP to vessel accounts. After 30 days, the transfer function in QS accounts will again be deactivated. If an additional reapportionment of Pacific whiting occurs, the same procedures will be followed.</P>
        <HD SOURCE="HD1">Classification</HD>
        <P>NMFS has preliminarily determined that the management measures for the 2012 Pacific whiting tribal fishery are consistent with the national standards of the Magnuson-Stevens Act and other applicable laws. NMFS, in making the final determination, will take into account the data, views, and comments received during the comment period.</P>
        <P>The Office of Management and Budget has determined that this proposed rule is not significant for purposes of Executive Order 12866.</P>

        <P>An IRFA was prepared, as required by section 603 of the Regulatory Flexibility Act (RFA). The IRFA describes the economic impact this proposed rule, if adopted, would have on small entities. A summary of the analysis follows. A copy of this analysis is available from NMFS (see<E T="02">ADDRESSES</E>).</P>

        <P>Under the RFA, the term “small entities” includes small businesses, small organizations, and small governmental jurisdictions. The SBA has established size criteria for all different industry sectors in the US, including fish harvesting and fish processing businesses. A business involved in fish harvesting is a small business if it is independently owned and operated and not dominant in its field of operation (including its affiliates) and if it has combined annual receipts less than $4.0 million for all its affiliated operations worldwide. A seafood processor is a small business if it is independently owned and operated, not dominant in its field of operation, and employs 500 or fewer persons at all its affiliated operations worldwide. A business involved in both the harvesting and processing of seafood products is a small business if it meets the $4.0 million criterion for fish harvesting operations. A wholesale business servicing the fishing industry is a small business if it employs 100 or fewer persons at all its affiliated operations worldwide. For marinas and charter/party boats, a small business is a business with annual receipts less than $7.0 million. For nonprofit organizations, the RFA defines a small organization as any nonprofit enterprise that is independently owned and operated and is not dominant in its field. The RFA defines small governmental jurisdictions as governments of cities, counties, towns, townships, villages, school districts, or<PRTPAGE P="10469"/>special districts with populations of less than 50,000.</P>
        <P>Over the past five years (2007 to 2011), the total whiting fishery (tribal and non-tribal) has averaged landings of 197,000 mt annually, worth $36 million in terms of ex-vessel revenues. As the U.S. OY/ACL has been highly variable during this time, so have landings. During this period, landings have ranged from 121,000 mt (2009) to 248,000 mt (2008). Landings for 2011 are estimated to be about 197,000 mt. Ex-vessel revenues have also varied. Annual ex-vessel revenues have ranged from $14 million (2009) to $58 million (2008). Ex-vessel revenues in 2011 were about $46 million. As landings have varied, so have prices. These prices are largely determined by the world market for groundfish as most of the whiting harvested is exported. Ex-vessel prices have ranged from $116 per mt (2009) to $236 per mt (2008). Average ex-vessel price for whiting in 2011 was $232 per mt. Note that the use of ex-vessel values does not take into account the wholesale or export value of the fishery or the costs of harvesting and processing whiting into a finished product. NMFS does not have sufficient information to make a complete assessment of these values.</P>
        <P>The Pacific whiting fishery harvests almost exclusively Pacific whiting. While bycatch of other species occurs, the fishery is constrained by bycatch limits on key overfished species. This is a high-volume fishery with low ex-vessel prices per pound. This fishery has seasonal aspects based on the distribution of whiting off the west coast. The whiting fishery has four components. The shorebased fishery delivers their catch to processing facilities on land. Most of these vessels also deliver other groundfish species to shorebased plants. This fishery is managed under an individual fishing quota system. In the mothership sector, catcher vessels deliver to floating processors called motherships. This fishery is managed under a single mothership co-op—the Whiting Mothership Cooperative. The catcher-processor fleet consists of vessels that both catch the fish and process it aboard. This fishery is also managed under a co-op—the Pacific Whiting Conservation Cooperative.</P>
        <P>The fourth component of the fishery is the tribal fishery. Since 1996, there has been a tribal allocation of the U.S. whiting TAC. There are three tribes associated with the whiting fishery: Makah, Quileute, and Quinault.</P>
        <P>There are two key features of this rule making: establishing the 2012 interim tribal allocation and reinstatement of regulatory authority to reapportion whiting from the tribal to the non-tribal fishery. The alternatives are “No-Action” vs. the “Proposed Action”. The proposed allocation, based on discussions with the tribes is for NMFS to allocate 17.5 percent of the U.S. total allowable catch for 2012. NMFS did not consider a broader range of alternatives to the proposed allocation. The tribal allocation is based primarily on the requests of the tribes. These requests reflect the level of participation in the fishery that will allow them to exercise their treaty right to fish for whiting. Consideration of amounts lower than the tribal requests is not appropriate in this instance. As a matter of policy, NMFS has historically supported the harvest levels requested by the tribes. Based on the information available to NMFS, the tribal request is within their tribal treaty rights, and the participating tribe has historically shown an ability to harvest the amount of whiting requested. A higher allocation would be, arguably, within the scope of the treaty right. However, a higher allocation would unnecessarily limit the non-tribal fishery. A no action alternative was considered, but the regulatory framework provides for a tribal allocation on an annual basis only. Therefore, no action would result in no allocation of Pacific whiting to the tribal sector in 2012, which would be inconsistent with NMFS' responsibility to manage the fishery consistent with the tribes' treaty rights. Given that there is a tribal request for allocation in 2012, this alternative received no further consideration.</P>
        <P>There are two alternatives associated with reinstating the authority to reapportion unused Pacific whiting from the tribal fishery to the non-tribal fishery. The “No-Action” alternative is the authority not reinstated. The “Proposed” Alternative would be to reinstate the authority.</P>
        <P>NMFS has reviewed analyses of fish ticket data and limited entry permit data, available employment data provided by processors, information on Tribal fleets, and industry responses to a 2010 survey on ownership and has developed the following estimates for the whiting fishery. There are four affected components of this fishery-Shorebased whiting, mothership whiting, catcher-processor, and tribal. In the shorebased whiting fishery, quota shares of whiting were allocated to 138 entities including ten shoreside processing companies. These entities can fish the quota pounds associated with their quota shares, transfer their quota pounds to other to fish, or choose not to fish their quota pounds. Whiting is landed as bycatch in other fisheries or as a target catch in the whiting fishery. To analyze the number of participants primarily affected by this rule making, targeted whiting trips are defined as landings that contained 5,000 pounds or more of whiting. During 2011, 62 vessels landed a total of about 200 million pounds of whiting. Of these vessels, only 26 vessels had landings greater than 5,000 pounds. Thirteen of these 26 vessels are “small” entities. These 26 vessels delivered their catch to 10 processing companies. These 10 processing companies, either through ownership or affiliation, can be organized into to 6 entities. Four of these 6 entities are “small” entities. There are 37 limited entry permits that have mothership whiting catch history assignments. During 2011, these 37 permits pooled their whiting catch history assignments into a single mothership fishery co-op. Approximately half of these vessels are “small” entities. Vessels in the mothership co-op deliver their catch to mothership processors. There are 6 mothership processing companies; three or which are “small” entities. The catcher-processor fleet has ten limited entry permits and 10 vessels, owned by three companies. These three companies are considered “large” companies mainly because of their operations off Alaska. The tribal fleet is comprised of 5 vessels considered to be “small” entities, while the 3 tribal governments, based on population sizes, are considered “small” entities.</P>

        <P>The expected effect of the “Proposed” alternative relative to the “No Action” alternative is to allow unharvested tribal allocations of whiting to be fished by the non-tribal fleets, benefitting both large and small entities. With the implementation of Amendments 20 and 21, the ability to reapportion whiting from tribal to the non-tribal fishery was eliminated for 2011. Pending markets, available bycatch, and the ability of tribal fleets to develop the capacity to harvest the tribal allocation there may be uncaught whiting in the tribal fishery because there is no regulatory mechanism to transfer uncaught whiting to the non-tribal fishery. For 2010, the tribes were initially allocated 49,939 mt. As tribal harvests were projected to be about 16,000 mt, in September 2010 and October 2010, NMFS reapportioned a total of 16,000 mt of whiting from the tribal allocation to the non-tribal shorebased, mothership, and catcher processor sectors. Unlike 2010, for 2011, NMFS was not authorized to reapportion unharvested tribal whiting to the non-tribal sectors. Tribal harvests<PRTPAGE P="10470"/>as of October 7, 2011 were about 19 percent of the 66,908 mt allocation indicating that about 54,000 tons of the tribal allocation would go unfished. This rulemaking would reinstate the regulatory authority to reapportion whiting from the tribal to the non-tribal fishery. If NMFS was authorized in 2011 to reapportion half or more of the 54,000 mt unfished tribal allocation, the ex-vessel revenues could have increased by as much as $6.0 million.</P>
        <P>This proposed rule would directly regulate which entities can harvest whiting. This rule would allocate fish between tribal harvesters (harvest vessels are small entities, tribes are small jurisdictions) to non-tribal harvesters (a mixture of small and large businesses). Tribal fisheries are a mixture of activities that are similar to the activities that non-tribal fisheries undertake. Tribal harvests are delivered to both shoreside plants and motherships for processing. These processing facilities also process fish harvested by non-tribal fisheries.</P>
        <P>NMFS believes this proposed rule would not adversely affect small entities and is likely to be beneficial to both small and large entities as it allows unharvested tribal fish to be harvested by non-tribal harvesters. Nonetheless, NMFS has prepared this IRFA and is requesting comments on this conclusion.</P>
        <P>There are no reporting, recordkeeping or other compliance requirements in the proposed rule.</P>
        <P>No Federal rules have been identified that duplicate, overlap, or conflict with this action.</P>
        <P>NMFS issued Biological Opinions under the ESA on August 10, 1990, November 26, 1991, August 28, 1992, September 27, 1993, May 14, 1996, and December 15, 1999 pertaining to the effects of the Pacific Coast groundfish FMP fisheries on Chinook salmon (Puget Sound, Snake River spring/summer, Snake River fall, upper Columbia River spring, lower Columbia River, upper Willamette River, Sacramento River winter, Central Valley spring, California coastal), coho salmon (Central California coastal, southern Oregon/northern California coastal), chum salmon (Hood Canal summer, Columbia River), sockeye salmon (Snake River, Ozette Lake), and steelhead (upper, middle and lower Columbia River, Snake River Basin, upper Willamette River, central California coast, California Central Valley, south/central California, northern California, southern California). These biological opinions have concluded that implementation of the FMP for the Pacific Coast groundfish fishery was not expected to jeopardize the continued existence of any endangered or threatened species under the jurisdiction of NMFS, or result in the destruction or adverse modification of critical habitat.</P>
        <P>NMFS issued a Supplemental Biological Opinion on March 11, 2006 concluding that neither the higher observed bycatch of Chinook in the 2005 whiting fishery nor new data regarding salmon bycatch in the groundfish bottom trawl fishery required a reconsideration of its prior “no jeopardy” conclusion. NMFS also reaffirmed its prior determination that implementation of the Groundfish PCGFMP is not likely to jeopardize the continued existence of any of the affected ESUs. Lower Columbia River coho (70 FR 37160, June 28, 2005) and Oregon Coastal coho (73 FR 7816, February 11, 2008) were recently relisted as threatened under the ESA. The 1999 biological opinion concluded that the bycatch of salmonids in the Pacific whiting fishery were almost entirely Chinook salmon, with little or no bycatch of coho, chum, sockeye, and steelhead.</P>
        <P>NMFS has reinitiated consultation on the fishery to address newly listed species including Pacific eulachon and green sturgeon, and other non-salmonid listed species (marine mammals, sea birds, and turtles). NMFS will be completing a consultation on listed marine species for the 2012 groundfish fishery by the end of January 2012, and expects that consultation on seabirds will be completed prior to late summer of 2012. Further, NMFS has concluded that take of any marine species that will be covered by the opinion to be issued in early 2012 is very unlikely to occur prior to completion of that opinion, and that take of listed seabirds is unlikely to occur in 2012. Marine Mammal Protection Act (MMPA)</P>
        <P>Impacts resulting from fishing activities proposed in this rule are discussed in the FEIS for the 2011-12 groundfish fishery specifications and management measures. As discussed above, NMFS does not anticipate incidental take of ESA-listed marine mammals prior to the completion of the 2012 ESA consultation covering these species. NMFS expects to complete the process leading to any necessary authorization of incidental taking under MMPA section 101(a)(5)(E) concurrent with the 2012 biological opinion.</P>
        <P>Pursuant to Executive Order 13175, this proposed rule was developed after meaningful consultation and collaboration with tribal officials from the area covered by the FMP. Consistent with the Magnuson-Stevens Act at 16 U.S.C. 1852(b)(5), one of the voting members of the Pacific Council is a representative of an Indian tribe with federally recognized fishing rights from the area of the Council's jurisdiction. In addition, NMFS has coordinated specifically with the tribes interested in the whiting fishery regarding the issues addressed by this rule.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 50 CFR Part 660</HD>
          <P>Fisheries, Fishing, Indian fisheries.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: February 16, 2012.</DATED>
          <NAME>Alan D. Risenhoover,</NAME>
          <TITLE>Acting Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service.</TITLE>
        </SIG>
        
        <P>For the reasons set out in the preamble, 50 CFR part 660 is proposed to be amended as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 660—FISHERIES OFF WEST COAST STATES</HD>
          <P>1. The authority citation for part 660 is amended to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>16 U.S.C. 1801<E T="03">et seq.</E>and 16 U.S.C. 773<E T="03">et seq.</E>
            </P>
          </AUTH>
          
          <P>2. In § 660.50, paragraph (f)(4) is revised to read as follows:</P>
          <SECTION>
            <SECTNO>§ 660.50</SECTNO>
            <SUBJECT>Pacific Coast treaty Indian fisheries.</SUBJECT>
            <STARS/>
            <P>(f) * * *</P>
            <P>(4)<E T="03">Pacific whiting.</E>The tribal allocation for 2012 will be 17.5 percent of the U.S. TAC.</P>
            <STARS/>
            <P>3. In § 660.60 paragraphs (d)(1)(iv),and (v) are revised and paragraphs(d)(1)(vi) and(d)(2) are added to read as follows:</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 660.60</SECTNO>
            <SUBJECT>Specifications and management measures.</SUBJECT>
            <STARS/>
            <P>(d) * * *</P>
            <P>(1) * * *</P>
            <P>(iv) Reapportionment of the unused portion of the tribal allocation of Pacific whiting to the IFQ, mothership and catcher processor Pacific whiting fisheries.</P>
            <P>(v) Implement the Ocean Salmon Conservation Zone, described at § 660.131(c)(3), when NMFS projects the Pacific whiting fishery may take in excess of 11,000 Chinook within a calendar year.</P>
            <P>(vi) Implement Pacific Whiting Bycatch Reduction Areas, described at § 660.131(c)(4) Subpart D, when NMFS projects a sector-specific bycatch limit will be reached before the sector's whiting allocation.</P>

            <P>(2) Automatic actions are effective when actual notice is sent by NMFS. Actual notice to fishers and processors<PRTPAGE P="10471"/>will be by email, Internet (<E T="03">www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Fishery-Management/Whiting-Management/index.cfm</E>), phone, fax, letter, or press release. Allocation reapportionments will be followed by publication in the<E T="04">Federal Register</E>, in which public comment will be sought for a reasonable period of time thereafter.</P>
            <P>4. In § 660.131 a new paragraph (h) is added to read as follows:</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 660.131</SECTNO>
            <SUBJECT>Pacific whiting fishery management measures.</SUBJECT>
            <STARS/>
            <P>(h) Reapportionment of Pacific Whiting.(1) By September 15 of the fishing year, the Regional Administrator will, based on discussions with representatives of the tribes participating in the Pacific whiting fishery for that fishing year, consider the tribal harvests to date and catch projections for the remainder of the year relative to the tribal allocation as specified at § 660.50 of Pacific whiting. That portion of the tribal allocation that the Regional Administrator determines will not be used by the end of the fishing year may be reapportioned to the other sectors of the trawl fishery in proportion to their initial allocations, on September 15 or as soon as practicable thereafter. Subsequent reapportionments may be made based on subsequent determinations by the Regional Administrator based on the factors described above in order to ensure full utilization of the resource.</P>
            <P>(2) The reapportionment of surplus whiting will be made effective immediately by actual notice under the automatic action authority provided at 660.60 (d)(1).</P>
            <P>(3) Estimates of the portion of the tribal allocation that will not be used by the end of the fishing year will be based on the best information available to the Regional Administrator.</P>
            <P>5. In § 660.140 paragraph (d)(1)(ii) and (d)(3)(ii)(B)(<E T="03">3</E>) are revised to read as follows:</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 660.140</SECTNO>
            <SUBJECT>Shorebased IFQ program.</SUBJECT>
            <STARS/>
            <P>(d) * * *</P>
            <P>(1) * * *</P>

            <P>(ii) Annual QP and IBQ pound allocations. QP and IBQ pounds will be deposited into QS accounts annually. QS permit owners will be notified of QP deposits via the IFQ Web site and their QS account. QP and IBQ pounds will be issued to the nearest whole pound using standard rounding rules (<E T="03">i.e.</E>, decimal amounts less than 0.5 round down and 0.5 and greater round up), except that in the first year of the Shorebased IFQ Program, issuance of QP for overfished species greater than zero but less than one pound will be rounded up to one pound. Rounding rules may affect distribution of the entire shorebased trawl allocation. NMFS will distribute such allocations to the maximum extent practicable, not to exceed the total allocation. QS permit owners must transfer their QP and IBQ pounds from their QS account to a vessel account in order for those QP and IBQ pounds to be fished. QP and IBQ pounds must be transferred in whole pounds (<E T="03">i.e.</E>, no fraction of a QP or IBQ pound can be transferred). All QP and IBQ pounds in a QS account must be transferred to a vessel account by September 1 of each year in order to be fished, unless there is a reapportionment of Pacific whiting consistent with §§ 660.131(h) and 660.140(d)(3).</P>
            <STARS/>
            <P>(3) * * *</P>
            <P>(ii) * * *</P>
            <P>(B) * * *</P>
            <P>(<E T="03">3</E>)<E T="03">Transfer of QP or IBQ pounds from a QS account to a vessel account.</E>QP or IBQ pounds must be transferred in whole pounds (<E T="03">i.e.</E>no fraction of a QP can be transferred). QP or IBQ pounds must be transferred to a vessel account in order to be used. Transfers of QP or IBQ pounds from a QS account to a vessel account are subject to vessel accumulation limits and NMFS' approval. Once QP or IBQ pounds are transferred from a QS account to a vessel account (accepted by the transferee/vessel owner), they cannot be transferred back to a QS account and may only be transferred to another vessel account. QP or IBQ pounds may not be transferred from one QS account to another QS account. All QP or IBQ pounds from a QS account must be transferred to one or more vessel accounts by September 1 each year. If the Regional Administrator makes a decision to reapportion Pacific whiting from the tribal to the non-tribal fishery after September 1 in any year, the following actions will be taken.</P>
            <P>(<E T="03">i</E>) NMFS will credit QS accounts with additional Pacific whiting QP proportionally, based on the whiting QS percent for a particular QS permit owner and the amount of the sector reapportionment of whiting.</P>
            <P>(<E T="03">ii</E>) The QS account transfer function will be reactivated by NMFS for a period of 30 days from the date that QS accounts are credited with additional Pacific whiting QP to allow permit holders to transfer only Pacific whiting QP to vessel accounts.</P>
            <P>(<E T="03">iii</E>) After 30 days, the transfer function in QS accounts will again be inactivated.</P>
            <STARS/>
          </SECTION>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4113 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </PRORULE>
  </PRORULES>
  <VOL>77</VOL>
  <NO>35</NO>
  <DATE>Wednesday, February 22, 2012</DATE>
  <UNITNAME>Notices</UNITNAME>
  <NOTICES>
    <NOTICE>
      <PREAMB>
        <PRTPAGE P="10472"/>
        <AGENCY TYPE="F">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Animal and Plant Health Inspection Service</SUBAGY>
        <DEPDOC>[Docket No. APHIS-2010-0103]</DEPDOC>
        <SUBJECT>Dow AgroScience LLC; Availability of Petition, Plant Pest Risk Assessment, and Environmental Assessment for Determination of Nonregulated Status of Corn Genetically Engineered for Herbicide Tolerance</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Animal and Plant Health Inspection Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice; extension of comment period.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We are extending the comment period for a petition received from Dow AgroScience LLC seeking a determination of nonregulated status of corn designated as DAS-40278-9, which has been genetically engineered for increased resistance to broadleaf herbicides in the phenoxy auxin group (such as the herbicide 2,4-D) and resistance to grass herbicides in the aryloxyphenoxypropionate acetyl coenzyme A carboxylase inhibitor group (such as quizalofop herbicides). This action will allow interested persons additional time to prepare and submit comments on the petition, our plant pest risk assessment, and our draft environmental assessment for the proposed determination of nonregulated status.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We will consider all comments that we receive on or before April 27, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments by either of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov/#!documentDetail;D=APHIS-2010-0103-0001.</E>
          </P>
          <P>•<E T="03">Postal Mail/Commercial Delivery:</E>Send your comment to Docket No. APHIS-2010-0103, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238.</P>

          <P>Supporting documents and any comments we receive on this docket may be viewed at<E T="03">http://www.regulations.gov/#!docketDetail;D=APHIS-2010-0103</E>or in our reading room, which is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 690-2817 before coming.</P>

          <P>The petition, draft environmental assessment, and plant pest risk assessment are also available on the APHIS Web site at<E T="03">http://www.aphis.usda.gov/brs/aphisdocs/09_23301p.pdf, http://www.aphis.usda.gov/brs/aphisdocs/09_23301p_dea.pdf,</E>and<E T="03">http://www.aphis.usda.gov/brs/aphisdocs/09_23301p_dpra.pdf.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Mr. Evan Chestnut, Policy Analyst, Biotechnology Regulatory Services, APHIS, 4700 River Road Unit 147, Riverdale, MD 20737-1236; (301) 851-3910, email:<E T="03">evan.a.chestnut@aphis.usda.gov.</E>To obtain copies of the petition, draft environmental assessment, or plant pest risk assessment, contact Ms. Cindy Eck at (301) 851-3892, email:<E T="03">cynthia.a.eck@aphis.usda.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>On December 27, 2011, we published in the<E T="04">Federal Register</E>(76 FR 80872-80873, Docket No. APHIS-2010-0103) a notice<SU>1</SU>

          <FTREF/>advising the public that the Animal and Plant Health Inspection Service (APHIS) has received a petition from Dow AgroScience LLC seeking a determination of nonregulated status of corn (<E T="03">Zea mays</E>) designated as event DAS-40278-9, which has been genetically engineered for increased resistance to broadleaf herbicides in the phenoxy auxin group (such as the herbicide 2,4-D) and resistance to grass herbicides in the aryloxyphenoxypropionate acetyl coenzyme A carboxylase inhibitor group (such as quizalofop herbicides).</P>
        <FTNT>
          <P>

            <SU>1</SU>To view the notice, supporting documents, and any comments we have received, go to<E T="03">http://www.regulations.gov/#!docketDetail;D=APHIS-2010-0103.</E>
          </P>
        </FTNT>
        <P>Comments on the Dow petition, our plant pest risk assessment, and our draft environmental assessment for the proposed determination of nonregulated status were required to be received on or before February 27, 2012. We are extending the comment period on Docket No. APHIS-2010-0103 for an additional 60 days, ending April 27, 2012. This action will allow interested persons additional time to prepare and submit comments on the Dow petition, our plant pest risk assessment, and our draft environmental assessment for the proposed determination of nonregulated status.</P>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>7 U.S.C. 7701-7772 and 7781-7786; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.3.</P>
        </AUTH>
        <SIG>
          <DATED>Done in Washington, DC, this 15th day of February 2012.</DATED>
          <NAME>Kevin Shea,</NAME>
          <TITLE>Acting Administrator, Animal and Plant Health Inspection Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4081 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-34-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>San Bernardino National Forest, Mountaintop Ranger District, California, Mitsubishi South Quarry Expansion Project</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of intent to prepare an environmental impact statement.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>Mitsubishi Cement Corporation is submitting to the San Bernardino National Forest and San Bernardino County, for permitting, a Plan of Operations and Reclamation Plan for the South Quarry. The South Quarry will total approximately 153.6 acres consisting of a 128-acre quarry, a 2.7 acre landscape berm, a 22.2-acre haul road 1.8 miles in length, and a temporary construction road of 0.7 acres. The South Quarry and haul road will be located almost entirely (147.0 acres) on 440 acres of unpatented claims owned by Mitsubishi Cement Corporation on the San Bernardino National Forest with approximately 6.6 acres of the haul road located on Mitsubishi Cement Corporation fee land where it enters the existing East Pit.<PRTPAGE P="10473"/>Current estimates project the South Quarry could feed the cement plant for approximately 120 years. No change to the throughput or operation of the Cushenbury Cement Plant is proposed as part of this project. Based on drilling conducted during the winter of 2009 and 2010, the South Quarry site has estimated proven and inferred reserves of over 200 million tons of mostly high to medium grade limestone. This higher grade limestone would be blended with lower grade limestone excavated from the West and East Pits at a ratio of approximately 50/50 in order to meet the limestone specifications to feed the adjacent Mitsubishi Cement Corporation Cushenbury Cement Plant. Concurrent reclamation would be conducted throughout the life of the quarry and, at the conclusion of excavations, 5 years of active reclamation and revegetation would be implemented followed by revegetation monitoring and remediation until revegetation goals are achieved.</P>
          <P>Comments are being requested to help identify significant issues or concerns related to the proposed action, to determine the scope of the issues (including alternatives) that need to be analyzed and to eliminate from detailed study those issues that are not significant. Supporting documentation should be included with comments recommending that the joint Environmental Impact Statement (EIS) and Environmental Impact Report (EIR) (EIS/EIR), to be prepared by the San Bernardino National Forest and County of San Bernardino, as the lead state agency under the California Environmental Quality Act (CEQA), address specific environmental issues.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments concerning the scope of the analysis must be received by March 23, 2012. The draft EIS/EIR is expected fall 2012 and the final EIS/EIR is expected spring 2013.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Send written comments to San Bernardino National Forest, Mitsubishi South Quarry Expansion Project, do Anne Surdzial, ECORP Consulting, Inc. 215 N. 5th Street, Redlands, CA 92374. Comments may also be sent via email to<E T="03">asurdzial@ecorpconsulting.com</E>(please put “Mitsubishi Cement Company South Quarry Expansion” in the subject line), or via facsimile to (909) 307-0056. It is important that reviewers provide their comments at such times and in such a way that they are useful to the Agency's preparation of the EIS/EIR. Therefore, comments should be provided prior to the close of the comment period and should clearly articulate the reviewer's concerns and contentions with the proposed action.</P>
          <P>Comments received in response to this solicitation, including names and addresses of those who comment, will be part of the public record for this proposed action. However, comments submitted anonymously will be accepted and considered.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Thomas Hall, Environmental Coordinator, San Bernardino National Forest at (909) 382-2905 or<E T="03">thall@fs.fed.us.</E>Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern Time, Monday through Friday.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Mitsubishi Cement Corporation submitted the Plan of Operations and Reclamation Plan for the proposed South Quarry to the Mountaintop District Ranger, San Bernardino National Forest, on October 22, 2010. The South Quarry is within portions of Sections 14, 15, 22, and 23 Township 3 North, Range 1 East. Elevations at the South Quarry site currently range from 5,555 to 6,675 feet.</P>
        <P>The South Quarry would be mined at an average production rate of 1.3 million tons per year of ore and 150,000 tons per year of waste rock for up to 120 years. At this time, Mitsubishi Cement Corporation is requesting a 120-year operations plan excavating approximately 156 million tons of ore. Mitsubishi Cement Corporation's Cushenbury Cement Plant requires a limestone feed of up approximately 2.6 million tons per year, and this would not change as a result of the South Quarry Project. East and West Pits would be reduced to an average of 1.3 million tons per year of ore and 150,000 tons per year of waste rock. Therefore the overall limestone production of 2.6 million tons per year and 300,000 tons per year of waste rock at the mining complex would not change.</P>
        <HD SOURCE="HD1">Purpose and Need for Action</HD>
        <P>Mitsubishi Cement Corporation submitted to San Bernardino National Forest and San Bernardino County a Plan of Operations and Reclamation Plan for the proposed South Quarry. The Forest Service is analyzing the surface use of National Forest System lands in connection with operations authorized by the United States mining laws (30 U.S.C. 21-54), which confer a statutory right to enter upon the public lands to search for minerals, shall be conducted so as to minimize adverse environmental impacts on National Forest System surface resources. The responsibility for managing mineral resources is in the Secretary of the Interior.</P>
        <P>Mitsubishi Cement Corporation's Cushenbury Cement Plant requires a limestone feed of approximately 2.6 million tons per year of a specific blend of limestone in order to manufacture cement. In 2004, as the existing East Pit neared its exhaustion of cement grade limestone, the West Pit expansion was approved by the County of San Bernardino on 191 acres to the west of the existing East Pit with approximately 217 million tons of limestone reserves. The amount of high grade limestone to blend with the lower grades of limestone to meet the feed requirement for the cement plant would not be adequate for the life of the mine. The proposed South Quarry site would be able to meet the requirements for blending with its estimated, proven and inferred reserves of over 200 million tons of high to medium grade limestone rock.</P>
        <HD SOURCE="HD1">Proposed Action</HD>

        <P>The development of the South Quarry would consist of construction of the 1.8 mile long haul road, four phases of excavations, concurrent reclamation, and then final reclamation followed by revegetation monitoring. During the first two years, the 1.8-mile long haul road would be constructed. The planned haul road would access the South Quarry at 5,950 feet amsl and traverse down the north slope to an elevation of 5,050 feet amsl at the southwest corner of the existing East Pit. The road's surface width would be 50 to 60 feet with a grade not to exceed 10% and it would have a surface of crushed limestone. The excavation plan for the South Quarry is divided into four phases based on operational, engineering, and environmental concerns with the development of the main quarry to a maximum depth of 5,365 feet above mean sea level or 1,215 feet below the quarry rim on the south. Phase 1A would be initiated after construction of the haul road and compliance with preconstruction conditions and has ore reserves of approximately 3.5 years. Phase 1B would excavate the southeast 31 acres of the quarry. Reserves are estimated at about 29 million tons of ore. At an ore production rate of 1.3 million tons per year, Phase 1B would have a life of approximately 22 years. Phase 2 would excavate the central 85 acres of the quarry. Reserves are estimated at 19 million tons of ore. At an ore production rate 1.3 million tons per year, Phase 1B would have a life of approximately 14.5 years for a cumulative total of 40 years from the<PRTPAGE P="10474"/>commencement of mining. Phase 3 would be an approximately 40-year excavation phase on approximately 75 acres within the central part of the quarry within the footprint of Phase 2. Mining would excavate to floor elevation of approximately 5,905 feet, a depth of approximately 315 feet below the Phase 2 floor elevation of 6,130 feet. Reserves are estimated at over 52 million tons of ore. Phase 4 would be the final excavation phase on approximately 65 acres within the central part of the proposed South Quarry configuration, again within the footprint of Phase 2, to complete the 120-year lifespan. Mining would excavate to floor elevation of approximately 5,365 feet, a maximum depth of approximately 550 feet below the Phase 3 floor elevation of 5,905 feet. Reserves are estimated at 52 million tons of ore.</P>
        <P>Minimal amounts of overburden are expected as the limestone is generally exposed across the quarry site. Any topsoil onsite would be in the form of smaller eroded limestone gravel that may contain organic material and seeds. This surface material would be salvaged and stored in separately marked stockpiles for future reclamation efforts along and above the top benches and used for the construction of the landscape berm along the southern rim. Instead of removing the waste rock and depositing it in a separate waste stockpile(s) outside the rim of the quarry, this plan proposes to backfill the waste rock within Phases 1B and 4 as mining progresses with depth.</P>
        <P>Mitsubishi Cement Corporation proposes to reclaim the quarry site to meet both Forest Service Minerals Regulations (36 CFR 228, Subpart A) under the jurisdiction of the San Bernardino National Forest and the California Surface Mining and Reclamation Act implemented by San Bernardino County that will minimize impacts to the surrounding environment. Due to planned extraction, the permanent perimeter quarry slopes would be reclaimed from the rim downward as completed per phase to meet designed slopes dependent on the findings of the ongoing slope stability assessments. Reclamation would consist of sloping excavated cuts and benches as necessary to meet the designed 0.55H: 1V overall slope and to round the rims of the final benches. Each bench would be sloped inward toward the vertical wall to capture any precipitation or runoff. The individual benches would be approximately 45 feet vertical and 25 feet wide unless required to be flatter in specific areas, as determined by geological mapping during ongoing quarry operations or where the waste rock stockpiles would be located. Surface material salvaged for revegetation would be limited due to the surficial rock conditions onsite. Available material containing the native seed bank would be placed on the benches and would be augmented with additional growth media and mulch in “islands” to provide future sources of seeds. The revegetation methods include seeding with native perennial species, plantings grown in a nursery whether started from seed, cuttings or whole plant salvage from seeds collected at or near the site, and planting plants salvaged from new mining areas. The Biological Monitoring Plan would be an ongoing effort to assess the results of revegetation on the disturbed areas of the site. The monitoring plan would be followed annually to monitor and assess completed revegetated areas and areas where revegetation is being planned or just beginning.</P>
        <P>The Plan of Operations includes avoidance/minimization and environmental protection measures, including:</P>

        <P>1. Mitsubishi Cement Corporation will, upon withdrawal, quit-claim specified unpatented mining claims held within San Bernardino National Forest, and convey specified patented lands, which have been verified by the Forest Service to contain occupied endangered species habitat on a 3 to 1 ratio (acres and conservation value) as mitigation for impacts of the expansion on Cushenbury buckwheat (<E T="03">Eriogonum ovalifolium</E>var. vineum), Cushenbury oxytheca (<E T="03">Oxytheca parishii</E>var. goodmaniana), and Parish's daisy (<E T="03">Erigeron parishii</E>).</P>
        <P>2. Control of surface drainage, erosion, and sedimentation of the proposed haul road and quarry operations will involve the following primary components currently being implemented for existing operations:</P>
        <P>a. Limiting surface disturbance to the minimum area required for active operations.</P>
        <P>b. Diverting runoff, where operationally feasible, such that runoff from undisturbed areas does not enter the area of active operations.</P>
        <P>c. Using ditches, sediment basins, and localized control and maintenance measures to intercept and control runoff along the haul road.</P>
        <P>d. Stabilizing disturbance areas through regrading, revegetation, and other restoration practices.</P>
        <P>3. To avoid incidental killing of birds protected under the Migratory Bird Treaty Act, two measures will be implemented: (1) Complete all vegetation removal or initial grading outside the breeding season (i.e., do not remove potential nesting habitat from February 1 through August 31), or (2) confirm prior to beginning vegetation removal but after survey flagging is in place showing the limits of grading, that no birds are nesting in areas to be disturbed.</P>
        <P>4. The occurrence of weeds on-site shall be monitored by visual inspection. The goal is to prevent weeds from becoming established and depositing seeds in areas to be revegetated at a later date. No areas will be allowed to have more than 20 percent of the ground cover provided by nonnative plant species. If inspections reveal that weeds are becoming an issue or have established on-site, then removal will be initiated. Inspections shall be made in conjunction with revegetation monitoring.</P>
        <HD SOURCE="HD1">Lead and Cooperating Agencies</HD>
        <P>The San Bernardino National Forest and County of San Bernardino, as the lead state agency under the California Environmental Quality Act (CEQA), will be preparing a joint Environmental Impact Statement (EIS) and Environmental Impact Report (EIR). This EIS/EIR will analyze and disclose the potential effects of the proposed limestone quarry. Each joint lead agency retains its decisionmaking authority over the part of the proposed action over which it has authority and does not acquire any influence over the other's decisionmaking.</P>
        <P>The Mojave Desert Air Quality Management District has agreed to participate as a cooperating agency and to provide expertise regarding the proposed actions' relationship to the relevant objectives of regional, State and local land use plans, policies and controls.</P>
        <HD SOURCE="HD1">Responsible Official</HD>
        <P>The Responsible Official for the Mitsubishi South Quarry Expansion project is the San Bernardino National Forest Supervisor, Jody Noiron.</P>
        <HD SOURCE="HD1">Nature of Decision To Be Made</HD>

        <P>The Responsible Official will decide whether to approve the Plan of Operation following the environmental analysis. The Forest Service does not have the authority to remove the proponent's ability to mine its claims on National Forest System lands. San Bernardino County will decide whether to approve the Reclamation Plan under SMARA following the analysis under CEQA.<PRTPAGE P="10475"/>
        </P>
        <HD SOURCE="HD1">Scoping Process</HD>

        <P>This notice of intent initiates the scoping process, which guides the development of the EIS/EIR. The complete Plan of Operation and Reclamation Plan is available on the San Bernardino National Forest Web site at:<E T="03">http://data.ecosystem-management.org/nepaweb/nepa_project_exp.php?project=32613.</E>Public Scoping meetings will be held on Tuesday, March 13, 2012 at the Lucerne Valley Community Center, 33187 Old Woman Springs Road, Lucerne Valley, California 92356 beginning at 7 pm PST, and Tuesday, March 20, 2012 at the Big Bear Discovery Center, 40971 North Shore Drive (Highway 38), Fawnskin, California 92333 beginning at 7 pm PST.</P>
        <P>It is important that reviewers provide their comments at such times and in such manner that they are useful to the agency's preparation of the EIS/EIR. Therefore, comments should be provided prior to the close of the comment period and should clearly articulate the reviewer's concerns and contentions.</P>
        <SIG>
          <DATED>Dated: February 13, 2012.</DATED>
          <NAME>Jody Noiron,</NAME>
          <TITLE>Forest Supervisor, San Bernardino National Forest.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3938 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-M</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Rural Utilities Service</SUBAGY>
        <SUBJECT>Tri-State Generation and Transmission Association, Inc., Notice of Intent To Hold Public Scoping Meetings and Prepare an Environmental Assessment</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Rural Utilities Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of Intent To Hold Public Scoping Meetings and Prepare an Environmental Assessment.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Rural Utilities Service (RUS), an agency of the United States Department of Agriculture, intends to hold public scoping meetings and prepare an Environmental Assessment (EA) to meet its responsibilities under the National Environmental Policy Act (NEPA) and RUS's Environmental Policies and Procedures (7 CFR part 1794) in connection with potential impacts related to a proposed project in Colorado by Tri-State Generation and Transmission Association, Inc. (Tri-State). The proposed Burlington-Wray 230-kilovolt (kV) Transmission Project (Proposal) consists of the following: a proposed new single-circuit 230-kV electric transmission line between the existing Burlington Substation in Kit Carson County and the existing Wray Substation in Yuma County. Tri-State is requesting that RUS provide financial assistance for the Proposal.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>RUS will conduct public scoping meetings in an open house format to provide information and solicit comments for the preparation of the EA. The scoping meetings will be held on the following dates: Tuesday, March 6, 2012, from 5-8 p.m. at the Burlington Community Center, 340 South 14th Street, Burlington, Colorado 80807; Wednesday, March 8, 2012, 5-8 p.m. at the Wray Roundhouse, 245 West 4th Street, Wray, Colorado 80758. All written questions and comments must be received on or before March 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>An Alternative Evaluation Study (AES) and Macro Corridor Study (MCS) have been prepared for the proposed project. All documents are available for review prior to and at the public scoping meetings. The reports are available at the RUS address provided in this notice and on the agency's Web site:<E T="03">http://www.rurdev.usda.gov/UWP-ea.htm.</E>The documents are also available for review at the offices of Tri-State and its member cooperatives K.C. Electric Association and Y-W Electric Association. In addition, the following repositories will have the AES and MCS available for public review:</P>
          <P>Tri-State Generation and Transmission Association, Inc., 1100 West 116th Avenue, Westminster, Colorado 80234-2814.</P>
          <P>K.C. Electric Association, 281 Main Street, Stratton, Colorado 80836.</P>
          <P>Y-W Electric Association, 1016 Grants Way, Wray, Colorado 80758-1915.</P>
          <P>Wray Public Library, 301 W. 7th Street, Wray, Colorado 80758.</P>
          <P>Burlington Public Library, 321 14th Street, Burlington, CO 80807.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>To obtain copies of the EA, to comment on the EA, or for further information, contact Dennis Rankin, Environmental Protection Specialist, USDA Rural Utilities Service, 1400 Independence Avenue SW., Stop 1571, Washington, DC 20250-1571, Telephone: (202) 720-1953, Facsimile: (202) 690-0649, or email<E T="03">dennis.rankin@wdc.usda.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>The primary purpose for the Proposal is to alleviate transmission system limitations in eastern Colorado, improve Tri-State's ability to dispatch existing generation resources in eastern Colorado, and improve Tri-State's ability to deliver energy to native load customers. The proposed action also would provide a transmission outlet for renewable energy generation in eastern Colorado.</P>

        <P>Tri-State is seeking funding from RUS for the Proposal. Prior to making a financial decision about whether to provide financial assistance for a proposed project, RUS is required to conduct an environmental review under the NEPA in accordance with the RUS Environmental Policies and Procedures codified in 7 CFR part 1794. Government agencies, private organizations, and the public are invited to participate in the planning and analysis of the proposed action. Representatives from the RUS and Tri-State will be available at the scoping meetings to discuss the environmental review process, describe the Proposal, discuss the scope of environmental issues to be considered, answer questions, and accept comments. RUS and Tri-state will use comments and input provided by all interested parties in the preparation of an Environmental Assessment Tri-State will submit the EA to RUS for review. RUS will use the environmental document to determine the significance of the impacts of the Proposal and may adopt the environmental document as its EA for the proposal. RUS's EA will be available for review and comment for 30 days. Announcement of the availability of the EA will be published in the<E T="04">Federal Register</E>and in newspapers with circulation in the project area.</P>

        <P>Should RUS determine that the preparation of an Environmental Impact Statement is not necessary, it will prepare a Finding of No Significant Impact (FONSI). Announcement of the availability of a FONSI will be published in the<E T="04">Federal Register</E>and in newspapers with circulation in the project area. Any final action by RUS related to the Proposal will be subject to, and contingent upon, compliance with all relevant Federal, State and local environmental laws and regulations and completion of the environmental review procedures as prescribed by RUS's Environmental Policies and Procedures (7 CFR part 1794).</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Mark S. Plank,</NAME>
          <TITLE>Director, Engineering and Environmental Staff, USDA, Rural Utilities Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4082 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <PRTPAGE P="10476"/>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <DEPDOC>[A-570-912]</DEPDOC>
        <SUBJECT>Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Notice of Second Extension of Time Limit for the Final Results of the 2009-2010 Administrative Review of the Antidumping Duty Order</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Import Administration, International Trade Administration, Department of Commerce.</P>
        </AGY>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>February 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Raquel Silva, AD/CVD Operations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230, telephone: (202) 482-6475.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>

        <P>On October 28, 2010, the Department of Commerce (“Department”) initiated the administrative review of the antidumping duty order on certain new pneumatic off-the-road tires (“off-the-road tires”) from the People's Republic of China (“PRC”) for the period, September 1, 2009, through August 31, 2010.<E T="03">See Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>75 FR 66349 (October 28, 2010). On October 7, 2011, the Department published its preliminary results of the administrative review of the antidumping order on off-the-road tires from the PRC.<E T="03">See Certain New Pneumatic Off-the-Road Tires from the People's Republic of China: Preliminary Results of the 2009—2010 Antidumping Duty Administrative Review and Intent to Rescind, in Part,</E>76 FR 62356 (October 7, 2011). On February 8, 2012, the Department extended the time limit for the final results by 14 days to February 18, 2012.<E T="03">See Certain New Pneumatic Off-the-Road Tires from the People's Republic of China: Notice of Extension of Time Limit for the Final Results of the 2009-2010 Administrative Review of the Antidumping Duty Order,</E>77 FR 6536 (February 8, 2012).</P>
        <HD SOURCE="HD1">Extension of Time Limit for Final Results</HD>
        <P>Section 751(a)(3)(A) of the Tariff Act of 1930, as amended (“the Act”), requires the Department to issue the final results in an administrative review within 120 days after the date on which the preliminary results are published. However, if it is not practicable to complete the review within this time period, section 751(a)(3)(A) of the Act allows the Department to extend the time period to a maximum of 180 days.</P>

        <P>We determine that it is not practicable to complete the final results of this review within the current deadline because the Department continues to require additional time to analyze issues raised in recent surrogate value submissions, case briefs, and rebuttals. Therefore, in accordance with section 751(a)(3)(A) of the Act, we are extending the time limit for completion of the final results of this administrative review by 14 additional days, until March 3, 2012. However, because March 3, 2012, falls on a weekend, the final results are now due no later than March 5, 2012.<E T="03">See Notice of Clarification: Application of “Next Business Day” Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended,</E>70 FR 24533 (May 10, 2005).</P>
        <P>This notice is published pursuant to sections 751(a) and 777(i) of the Act.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Christian Marsh,</NAME>
          <TITLE>Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4125 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <DEPDOC>[A-201-838]</DEPDOC>
        <SUBJECT>Seamless Refined Copper Pipe and Tube From Mexico: Notice of Partial Rescission of Antidumping Duty Administrative Review</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Import Administration, International Trade Administration, Department of Commerce.</P>
        </AGY>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>February 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Dennis McClure or Joy Zhang AD/CVD Operations, Office 3, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-5973 or (202) 482-1168, respectively.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>
        <P>On November 1, 2011, the Department of Commerce (the “Department”) published a notice of opportunity to request an administrative review of the antidumping duty order on seamless refined copper pipe and tube from Mexico.<SU>1</SU>
          <FTREF/>Pursuant to requests from interested parties,<SU>2</SU>
          <FTREF/>the Department published in the<E T="04">Federal Register</E>the notice of initiation of this antidumping duty administrative review with respect to the following companies for the period November 22, 2010, through October 31, 2011: GD Affiliates S. de R.L. de C.V. (“GD Affiliates”), Hong Kong GD Trading Co., Ltd., Nacional de Cobre, S.A. de C.V. (“Nacobre”), and IUSA, S.A. de C.V. (“IUSA”).<SU>3</SU>
          <FTREF/>On February 6, 2012, the Department received a letter from Petitioners withdrawing their November 28, 2011, request for a review of Nacobre, IUSA, and Hong Kong GD Trading Co., Ltd.</P>
        <FTNT>
          <P>
            <SU>1</SU>
            <E T="03">See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review,</E>76 FR 67413 (November 1, 2011).<E T="03"/>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>Cerro Flow Products, LLC, Wieland Copper Products, LLC, Muller Copper Tube Products, Inc., and Mueller Copper Tube Company, Inc. (collectively, “Petitioners”); GD Affiliates S. de R.L. de C.V., GD Affiliates Servicios S. de C.V., GD Copper Cooperatief UA, Golden Dragon Precise Copper Tube Group, Inc., Hong Kong GD Trading Co., Ltd., Golden Dragon Holding (Hong Kong) International, Ltd., and DC Copper (U.S.A.); and Nacional de Cobre, S.A. de C.V.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>
            <E T="03">See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for Revocation in part,</E>76 FR 82268 (December 30, 2011) (“<E T="03">Initiation Notice”</E>).</P>
        </FTNT>
        <HD SOURCE="HD1">Partial Rescission of the First Administrative Review</HD>

        <P>Pursuant to 19 CFR 351.213(d)(1), the Secretary will rescind an administrative review, in whole or in part, if the parties that requested a review withdraw the request within 90 days of the date of publication of the notice of initiation of the requested review. This review was initiated on December 30, 2011.<E T="03">See Initiation Notice.</E>Petitioners withdrew their request for a review of Nacobre, IUSA and Hong Kong GD Trading Co., Ltd. on February 6, 2012, which is within the 90-day deadline. While no other party requested an administrative review of IUSA, we received other requests for review of Nacobre and Hong Kong GD Trading Co., Ltd. Therefore, in accordance with 19 CFR 351.213(d)(1), and consistent with our practice, we are rescinding this review only with respect to IUSA.<SU>4</SU>
          <FTREF/>The review will continue with respect to Nacobre, GD Affiliates, and Hong Kong GD Trading Co., Ltd.</P>
        <FTNT>
          <P>
            <SU>4</SU>
            <E T="03">See, e.g., Certain Lined Paper Products From India: Notice of Partial Rescission of Antidumping Duty Administrative Review and Extension of Time Limit for the Preliminary Results of Antidumping Duty Administrative Review,</E>74 FR 21781 (May 11, 2009);<E T="03">see also Carbon Steel Butt-Weld Pipe Fittings from Thailand: Rescission of Antidumping Duty Administrative Review,</E>74 FR 7218 (February 13, 2009).</P>
        </FTNT>
        <PRTPAGE P="10477"/>
        <HD SOURCE="HD1">Assessment</HD>
        <P>The Department will instruct CBP to assess antidumping duties on all appropriate entries. For IUSA, antidumping duties shall be assessed at rates equal to the cash deposit of estimated antidumping duties required at the time of entry, or withdrawal from warehouse, for consumption, during the period November 22, 2010, through October 31, 2011, in accordance with 19 CFR 351.212(c)(1)(i). The Department intends to issue appropriate assessment instructions directly to CBP 15 days after publication of this notice.</P>
        <HD SOURCE="HD1">Notification to Importers</HD>
        <P>This notice serves as a reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary's presumption that reimbursement of antidumping duties occurred and the subsequent increase in the amount of antidumping duties assessed.</P>
        <HD SOURCE="HD1">Notification Regarding Administrative Protective Order</HD>
        <P>This notice serves as a final reminder to parties subject to administrative protective orders (“APOs”) of their responsibility concerning the disposition of proprietary information disclosed under an APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.</P>
        <P>This notice is issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Tariff Act of 1930, as amended, and 19 CFR 351.213(d)(4).</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Christian Marsh,</NAME>
          <TITLE>Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4123 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <DEPDOC>[A-570-806]</DEPDOC>
        <SUBJECT>Silicon Metal From the People's Republic of China: Final Results of the Expedited Third Sunset Review of the Antidumping Duty Order</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Import Administration, International Trade Administration, Department of Commerce.</P>
        </AGY>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>On November 1, 2011, the Department of Commerce (“the Department”) initiated the third sunset review of the antidumping duty order on silicon metal from the People's Republic of China (“PRC”) pursuant to section 751(c) of the Tariff Act of 1930, as amended (“the Act”). Based on the notice of intent to participate and adequate substantive response filed by the domestic interested party, and the lack of response from any respondent interested party, the Department conducted an expedited (120-day) sunset review of the antidumping duty order on silicon metal from the PRC, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2). As a result of this sunset review, the Department finds that revocation of the antidumping duty order would be likely to lead to continuation or recurrence of dumping, at the levels indicated in the “Final Results of Sunset Review” section of this notice,<E T="03">infra.</E>
          </P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>February 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Patrick O'Connor or Howard Smith, AD/CVD Operations, Office 4, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-0989 or (202) 482-5193, respectively.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>On June 10, 1991, the Department published the antidumping duty order on silicon metal from the PRC.<SU>1</SU>
          <FTREF/>On November 1, 2011, the Department published the notice of initiation of the third sunset review of the antidumping duty order on silicon metal from the PRC, pursuant to section 751(c) of the Act.<SU>2</SU>
          <FTREF/>On November 16, 2011, pursuant to 19 CFR 351.218(d)(1), the Department received a timely and complete notice of intent to participate in the sunset review from Globe Metallurgical, Inc., a domestic producer of silicon metal (“Globe”). On December 1, 2011, pursuant to 19 CFR 351.218(d)(3), Globe filed a timely and adequate substantive response. The Department did not receive substantive responses from any respondent interested party. As a result, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), the Department conducted an expedited (120-day) sunset review of the antidumping duty order on silicon metal from the PRC.</P>
        <FTNT>
          <P>
            <SU>1</SU>
            <E T="03">See Antidumping Duty Order: Silicon Metal From the People's Republic of China,</E>56 FR 26649 (June 10, 1991).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>
            <E T="03">See Initiation of Five-Year (“Sunset”) Review,</E>76 FR 67412 (November 1, 2011).</P>
        </FTNT>
        <HD SOURCE="HD1">Scope of the Order</HD>
        <P>Imports covered by this review are shipments of silicon metal containing at least 96.00 but less than 99.99 percent of silicon by weight. Also covered by this review is silicon metal from the PRC containing between 89.00 and 96.00 percent silicon by weight but which contains a higher aluminum content than the silicon metal containing at least 96.00 percent but less than 99.99 percent silicon by weight. Silicon metal is currently provided for under subheadings 2804.69.10 and 2804.69.50 of the Harmonized Tariff Schedule (“HTS”) as a chemical product, but is commonly referred to as a metal. Semiconductor-grade silicon (silicon metal containing by weight not less than 99.99 percent of silicon and provided for in subheading 2804.61.00 of the HTS) is not subject to this review. Although the HTS subheadings are provided for convenience and customs purposes, the written description of the merchandise is dispositive.</P>
        <HD SOURCE="HD1">Analysis of Comments Received</HD>

        <P>A complete discussion of all issues raised in this sunset review is provided in the accompanying Issues and Decision Memorandum, which is hereby adopted by this notice.<E T="03">See</E>“Issues and Decision Memorandum for the Expedited Third Sunset Review of the Antidumping Duty Order on Silicon Metal from the People's Republic of China,” from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Import Administration, dated concurrently with this notice (“I&amp;D Memorandum”). The issues discussed in the I&amp;D Memorandum include the likelihood of continuation or recurrence of dumping and the magnitude of the margins likely to prevail if the order is revoked. The I&amp;D Memorandum is a public document and is on file electronically via Import Administration's Antidumping and Countervailing Duty Centralized Electronic Service System (“IA ACCESS”). Access to IA ACCESS is<PRTPAGE P="10478"/>available in the Central Records Unit (“CRU”), room 7046 of the main Department of Commerce building. In addition, a complete version of the I&amp;D Memorandum can be accessed directly on the internet at<E T="03">http://www.trade.gov/ia/.</E>The signed I&amp;D Memorandum and the electronic versions of the I&amp;D Memorandum are identical in content.</P>
        <HD SOURCE="HD1">Final Results of Sunset Review</HD>
        <P>The Department determines that revocation of the antidumping duty order on silicon metal from the PRC would be likely to lead to continuation or recurrence of dumping at the following weighted-average margins:</P>
        <GPOTABLE CDEF="s50,10C" COLS="2" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Exporters</CHED>
            <CHED H="1">Weighted-<LI>Average margin</LI>
              <LI>(percent)</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">PRC-Wide Rate</ENT>
            <ENT>139.49</ENT>
          </ROW>
        </GPOTABLE>
        <HD SOURCE="HD1">Notification Regarding Administrative Protective Order</HD>
        <P>This notice also serves as the only reminder to parties subject to administrative protective order (“APO”) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of the return or destruction of APO materials or conversion to judicial protective orders is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.</P>
        <P>We are issuing and publishing the results and notice in accordance with sections 751(c), 752(c), and 777(i)(1) of the Act.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Paul Piquado,</NAME>
          <TITLE>Assistant Secretary for Import Administration.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4127 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <DEPDOC>[C-570-980]</DEPDOC>
        <SUBJECT>Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Import Administration, International Trade Administration, Commerce.</P>
        </AGY>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Gene Calvert, Jun Jack Zhao, or Emily Halle, AD/CVD Operations, Office 6, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-3586, (202) 482-1396 or (202) 482-0176, respectively.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>
        <P>On December 21, 2011, based on a timely request from the petitioner, SolarWorld Industries America, Inc. (Petitioner), the Department of Commerce (the Department) extended the due date for the preliminary determination in the countervailing duty investigation of crystalline silicon photovoltaic cells, whether or not assembled into modules, from the People's Republic of China, to no later than February 13, 2012.<SU>1</SU>
          <FTREF/>Petitioner made a second timely request on January 19, 2012, to further postpone the preliminary countervailing duty determination by 18 days, to March 2, 2012, which the Department granted.<SU>2</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>1</SU>
            <E T="03">See Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation,</E>76 FR 81914 (December 29, 2011).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>
            <E T="03">See Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China: Second Postponement of Preliminary Determination in the Countervailing Duty Investigation,</E>77 FR 4764 (January 31, 2012).</P>
        </FTNT>
        <HD SOURCE="HD1">Postponement of Due Date for the Preliminary Determination</HD>
        <P>Section 703(b)(1) of the Tariff Act of 1930, as amended (the Act), requires the Department to issue the preliminary determination in a countervailing duty investigation within 65 days after the date on which the Department initiated the investigation. However, if the Department concludes that the parties concerned in the investigation are cooperating and determines that the investigation is extraordinarily complicated, section 703(c)(1)(B) of the Act allows the Department to postpone making the preliminary determination until no later than 130 days after the date on which the administering authority initiated the investigation.</P>
        <P>The Department has determined that the parties involved in this proceeding are cooperating, and that the investigation is extraordinarily complicated.<SU>3</SU>
          <FTREF/>The mandatory respondents recently filed extensive questionnaire responses and also identified and included responses to the questionnaire for multiple cross-owned affiliated companies, which now are included in the investigation.<SU>4</SU>

          <FTREF/>Specifically, the Department is investigating 27 alleged subsidy programs including, but not limited to, loans, grants, income tax incentives, and the provision of goods and services for less than adequate remuneration. Due to the number of companies and the complexity of the alleged countervailable subsidy practices being investigated, we determine that this investigation is extraordinarily complicated. Therefore, in accordance with section 703(c)(1)(B) of the Act, we are fully extending the due date for the preliminary determination to no later than 130 days after the day on which the investigation was initiated. However, as that date falls on a Saturday (<E T="03">i.e.,</E>March 17, 2012), the deadline for completion of the preliminary determination is now Monday, March 19, 2012, the next business day.<SU>5</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>3</SU>
            <E T="03">See</E>section 703(c)(1)(B) of the Act.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>4</SU>
            <E T="03">See</E>letter from Changzhou Trina Solar Energy Co., Ltd., regarding, “Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules, from the People's Republic of China; CVD Questionnaire Response of Changzhou Trina Solar Energy Co., Ltd.,” dated January 31, 2012.<E T="03">See also</E>letter from Wuxi Suntech Power Co. Ltd., regarding, “Crystalline Silicon Photovoltaic (“CSPV”) Cells from the People's Republic of China: Countervailing Duty Questionnaire Response of Wuxi Suntech Power Co., Ltd.,” dated January 31, 2012.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>5</SU>
            <E T="03">See Notice of Clarification: Application of “Next Business Day” Rule for Administrative Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended,</E>70 FR 24533 (May 10, 2005).</P>
        </FTNT>
        <P>This notice is issued and published pursuant to section 703(c)(2) of the Act and 19 CFR 351.205(f)(1).</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Paul Piquado,</NAME>
          <TITLE>Assistant Secretary for Import Administration.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4119 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <SUBJECT>Quarterly Update to Annual Listing of Foreign Government Subsidies on Articles of Cheese Subject to an In-Quota Rate of Duty</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Import Administration, International Trade Administration, Department of Commerce.</P>
        </AGY>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>February 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Gayle Longest, AD/CVD Operations, Office 3, Import Administration, International Trade Administration,<PRTPAGE P="10479"/>U.S. Department of Commerce, 14th Street and Constitution Ave. NW., Washington, DC 20230, telephone: (202) 482-3338.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Section 702 of the Trade Agreements Act of 1979 (as amended) (“the Act”) requires the Department of Commerce (“the Department”) to determine, in consultation with the Secretary of Agriculture, whether any foreign government is providing a subsidy with respect to any article of cheese subject to an in-quota rate of duty, as defined in section 702(h) of the Act, and to publish an annual list and quarterly updates to the type and amount of those subsidies. We hereby provide the Department's quarterly update of subsidies on articles of cheese that were imported during the period October 1, 2011, through December 31, 2011.</P>
        <P>The Department has developed, in consultation with the Secretary of Agriculture, information on subsidies (as defined in section 702(h) of the Act) being provided either directly or indirectly by foreign governments on articles of cheese subject to an in-quota rate of duty. The appendix to this notice lists the country, the subsidy program or programs, and the gross and net amounts of each subsidy for which information is currently available. The Department will incorporate additional programs which are found to constitute subsidies, and additional information on the subsidy programs listed, as the information is developed.</P>
        <P>The Department encourages any person having information on foreign government subsidy programs which benefit articles of cheese subject to an in-quota rate of duty to submit such information in writing to the Assistant Secretary for Import Administration, U.S. Department of Commerce, 14th Street and Constitution Ave., NW., Washington, DC 20230.</P>
        <P>This determination and notice are in accordance with section 702(a) of the Act.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Paul Piquado,</NAME>
          <TITLE>Assistant Secretary for Import Administration.</TITLE>
        </SIG>
        <HD SOURCE="HD1">APPENDIX</HD>
        <GPOTABLE CDEF="s50,r50,14,14" COLS="04" OPTS="L2,i1">
          <TTITLE>Subsidy Programs on Cheese Subject to an In-Quota Rate of Duty</TTITLE>
          <BOXHD>
            <CHED H="1">Country</CHED>
            <CHED H="1">Program(s)</CHED>
            <CHED H="1">Gross<E T="51">1</E>Subsidy<LI>($/lb)</LI>
            </CHED>
            <CHED H="1">Net<E T="51">2</E>Subsidy<LI>($/lb)</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">27 European Union Member States<SU>3</SU>
            </ENT>
            <ENT>European Union Restitution Payments</ENT>
            <ENT>$0.00</ENT>
            <ENT>$0.00</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Canada</ENT>
            <ENT>Export Assistance on Certain Types of Cheese</ENT>
            <ENT>0.34</ENT>
            <ENT>0.34</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Norway</ENT>
            <ENT>Indirect (Milk) Subsidy</ENT>
            <ENT>0.00</ENT>
            <ENT>0.00</ENT>
          </ROW>
          <ROW RUL="n,s">
            <ENT I="22"/>
            <ENT>Consumer Subsidy</ENT>
            <ENT>0.00</ENT>
            <ENT>0.00</ENT>
          </ROW>
          <ROW RUL="n,s">
            <ENT I="22"/>
            <ENT>Total</ENT>
            <ENT>0.00</ENT>
            <ENT>0.00</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Switzerland</ENT>
            <ENT>Deficiency Payments</ENT>
            <ENT>$ 0.00</ENT>
            <ENT>$ 0.00</ENT>
          </ROW>
          <TNOTE>
            <SU>1</SU>Defined in 19 U.S.C. 1677(5).</TNOTE>
          <TNOTE>
            <SU>2</SU>Defined in 19 U.S.C. 1677(6).</TNOTE>
          <TNOTE>
            <SU>3</SU>The 27 member states of the European Union are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.</TNOTE>
        </GPOTABLE>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4122 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <SUBJECT>North American Free Trade Agreement, Article 1904; NAFTA Panel Reviews; First Request for Panel Review</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>NAFTA Secretariat, United States Section, International Trade Administration, Department of Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>On February 10, 2012, Maquilacero S.A. de C.V. filed a First Request for Panel Review with the United States Section of the NAFTA Secretariat pursuant to Article 1904 of the North American Free Trade Agreement. Panel Review was requested of the U.S. Department of Commerce's final determination regarding Light-Walled Rectangular Pipe and Tube from Mexico, Final Results of 2009-2010 Antidumping Duty Administrative Review. This determination was published in the<E T="04">Federal Register</E>(77 FR 1915), on January 12, 2012. The NAFTA Secretariat has assigned Case Number USA-MEX-2012-1904-01 to this request.</P>
        </SUM>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Ellen Bohon, United States Secretary, NAFTA Secretariat, Suite 2061, 14th and Constitution Avenue NW., Washington, DC 20230, (202) 482-5438.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Chapter 19 of the North American Free Trade Agreement (“Agreement”) established a mechanism to replace domestic judicial review of final determinations in antidumping and countervailing duty cases involving imports from a NAFTA country with review by independent binational panels. When a Request for Panel Review is filed, a panel is established to act in place of national courts to review expeditiously the final determination to determine whether it conforms with the antidumping or countervailing duty law of the country that made the determination.</P>

        <P>Under Article 1904 of the Agreement, which came into force on January 1, 1994, the Government of the United States, the Government of Canada, and the Government of Mexico established<E T="03">Rules of Procedure for Article 1904 Binational Panel Reviews</E>(“Rules”). These Rules were published in the<E T="04">Federal Register</E>on February 23, 1994 (59 FR 8686).</P>
        <P>A first Request for Panel Review was filed with the United States Section of the NAFTA Secretariat, pursuant to Article 1904 of the Agreement, on March 18, 2011, requesting a panel review of the determination and order described above.</P>
        <P>The Rules provide that:</P>
        <P>(a) A Party or interested person may challenge the final determination in whole or in part by filing a Complaint in accordance with Rule 39 within 30 days after the filing of the first Request for Panel Review (the deadline for filing a Complaint is March 12, 2012);</P>

        <P>(b) A Party, investigating authority or interested person that does not file a Complaint but that intends to appear in support of any reviewable portion of the final determination may participate in the panel review by filing a Notice of Appearance in accordance with Rule 40 within 45 days after the filing of the first<PRTPAGE P="10480"/>Request for Panel Review (the deadline for filing a Notice of Appearance is March 26, 2012); and</P>
        <P>(c) the panel review shall be limited to the allegations of error of fact or law, including the jurisdiction of the investigating authority, that are set out in the Complaints filed in panel review and the procedural and substantive defenses raised in the panel review.</P>
        <SIG>
          <DATED>Dated: February 14, 2012.</DATED>
          <NAME>Ellen Bohon,</NAME>
          <TITLE>United States Secretary,NAFTA Secretariat</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3854 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-GT-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <SUBJECT>Proposed Information Collection; Comment Request; Survey of Hawaii Resident Resource Users' Knowledge, Attitudes and Perceptions of Coral Reefs in Two Hawaii Priority Sites</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Oceanic and Atmospheric Administration (NOAA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be submitted on or before April 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, Room 6616, 14th and Constitution Avenue NW., Washington, DC 20230 (or via the Internet at<E T="03">JJessup@doc.gov).</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Requests for additional information or copies of the information collection instrument and instructions should be directed to Risa Oram, (808) 944-2124 or<E T="03">Risa.Oram@noaa.gov</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. Abstract</HD>

        <P>The United States (U.S.) Coral Reef Task Force (USCRTF) was established in 1998 by<E T="03">Executive Order 13089</E>to lead and coordinate U.S. efforts to address the threats facing coral reefs. The Hawaii Coral Reef Working Group (CRWG), composed of key state and federal partners involved in coral reef management, was established through a local charter to provide guidance to the State of Hawaii's coral program and to prioritize sites to implement specific ridge-to-reef management activities. Priority sites are areas where coral reef ecosystems of high biological value are threatened but have strong potential for improvement with management intervention. The current two priority sites in Hawaii are South Kohala on the Big Island (Pelekane Bay-Puako-Anaeho`omalu Bay, Hawai`i) and West Maui (Ka`anapali-Kahekili, Maui). At both sites, multiple partners are collaborating to produce conservation action plans to conserve resources and human uses.</P>
        <P>The Human Dimensions Research Program at NOAA Fisheries Pacific Islands Fisheries Science Center is initiating a survey to support development of these conservation action plans, including management actions in watersheds and in the coral reef ecosystems in the two priority sites. The purpose of this survey is to identify resident users' knowledge, attitudes, and perceptions regarding coral reef and watershed conditions and alternative management strategies to protect resources at the two priority sites.</P>
        <P>Information from this survey is needed to inform the conservation action planning process initiated by the State of Hawaii Department of Land and Natural Resources (DLNR), Division of Aquatic Resources (HDAR) and The Nature Conservancy (TNC) at the South Kohala site and to inform conservation and watershed planning being implemented by HDAR, The U.S. Army Corps of Engineers, and other partners at the West Maui site. Managers have indicated a more immediate need for information at the South Kohala site; therefore, we will conduct the survey there first and the survey at West Maui afterwards. The information gained from the survey will provide priority site managers with essential information about the population of resident users who can both threaten reef health and play a key role in stewardship of reef resources. Conservation planners will gain information about the threats and status of coral reefs from the resident users who interact most with those systems, and help managers identify topics for public outreach and education. A representative study of resident users' knowledge, attitudes, and perceptions will supplement broader public input into the conservation planning processes at the sites.</P>
        <HD SOURCE="HD1">II. Method of Collection</HD>
        <P>Data will be collected through an intercept survey of adult residents visiting the coastal area included within the boundary of the two priority sites. Sampling will be stratified by season (wet/dry); day of the week (weekend-holiday/weekday) and time of day (morning/afternoon/evening) to account for the expected variation in use levels by residents. The target sample size is 200 respondents at each site. The only wording that would change on the surveys would be interviewer introductions to the survey and specifics about the priority site boundaries.</P>
        <HD SOURCE="HD1">III. Data</HD>
        <P>
          <E T="03">OMB Control Number:</E>None.</P>
        <P>
          <E T="03">Form Number:</E>None.</P>
        <P>
          <E T="03">Type of Review:</E>Regular submission.</P>
        <P>
          <E T="03">Affected Public:</E>Individuals or households.</P>
        <P>
          <E T="03">Estimated Number of Respondents:</E>400.</P>
        <P>
          <E T="03">Estimated Time per Response:</E>20 minutes.</P>
        <P>
          <E T="03">Estimated Total Annual Burden Hours:</E>133.</P>
        <P>
          <E T="03">Estimated Total Annual Cost to Public:</E>$0.</P>
        <HD SOURCE="HD1">IV. Request for Comments</HD>
        <P>Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.</P>
        <P>Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of this information collection; they also will become a matter of public record.</P>
        <SIG>
          <DATED>Dated: February 15, 2012.</DATED>
          <NAME>Gwellnar Banks,</NAME>
          <TITLE>Management Analyst, Office of the Chief Information Officer.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-3992 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <PRTPAGE P="10481"/>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <RIN>RIN 0648-XA985</RIN>
        <SUBJECT>Incidental Taking of Marine Mammals; Taking of Marine Mammals Incidental to the Explosive Removal of Offshore Structures in the Gulf of Mexico</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice; issuance of letters of authorization.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In accordance with the Marine Mammal Protection Act (MMPA) and implementing regulations, notification is hereby given that NMFS has issued one-year Letters of Authorization (LOA) to take marine mammals incidental to the explosive removal of offshore oil and gas structures (EROS) in the Gulf of Mexico.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>These authorizations are effective from February 27, 2012 through February 26, 2013.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The application and LOAs are available for review by writing to P. Michael Payne, Chief, Permits and Conservation Division, Office of Protected Resources, National Marine Fisheries Service, 1315 East-West Highway, Silver Spring, MD 20910-3235 or by telephoning the contact listed here (see<E T="02">FOR FURTHER INFORMATION CONTACT</E>), or online at:<E T="03">http://www.nmfs.noaa.gov/pr/permits/incidental.htm.</E>Documents cited in this notice may be viewed, by appointment, during regular business hours, at the aforementioned address.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Howard Goldstein or Jolie Harrison, Office of Protected Resources, NMFS, 301-427-8401.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Section 101(a)(5)(A) of the MMPA (16 U.S.C. 1361<E T="03">et seq.</E>) directs the Secretary of Commerce (who has delegated the authority to NMFS) to allow, upon request, the incidental, but not intentional, taking of small numbers of marine mammals by United States citizens who engage in a specified activity (other than commercial fishing) within a specified geographical region, if certain findings are made and regulations are issued. Under the MMPA, the term “take” means to harass, hunt, capture, or kill or to attempt to harass, hunt, capture, or kill any marine mammal.</P>
        <P>Authorization for incidental taking, in the form of annual LOAs, may be granted by NMFS for periods up to five years if NMFS finds, after notice and opportunity for public comment, that the taking will have a negligible impact on the species or stock(s) of marine mammals, and will not have an unmitigable adverse impact on the availability of the species or stock(s) for subsistence uses (where relevant). In addition, NMFS must prescribe regulations that include permissible methods of taking and other means of effecting the least practicable adverse impact on the species and its habitat (i.e., mitigation), and on the availability of the species for subsistence uses, paying particular attention to rookeries, mating rounds, and areas of similar significance. The regulations also must include requirements pertaining to the monitoring and reporting of such taking.</P>

        <P>Regulations governing the taking of marine mammals incidental to EROS were published on June 19, 2008 (73 FR 34875), and remain in effect through July 19, 2013. For detailed information on this action, please refer to that<E T="04">Federal Register</E>notice. The species that applicants may take in small numbers during EROS activities are bottlenose dolphins (<E T="03">Tursiops truncatus</E>), Atlantic spotted dolphins (<E T="03">Stenella frontalis</E>), pantropical spotted dolphins (<E T="03">Stenella attenuata</E>), Clymene dolphins (<E T="03">Stenella clymene</E>), striped dolphins (<E T="03">Stenella coeruleoalba</E>), spinner dolphins (<E T="03">Stenella longirostris</E>), rough-toothed dolphins (<E T="03">Steno bredanensis</E>), Risso's dolphins (<E T="03">Grampus griseus</E>), melon-headed whales (<E T="03">Peponocephala electra</E>), short-finned pilot whales (<E T="03">Globicephala macrorhynchus</E>), and sperm whales (<E T="03">Physeter macrocephalus</E>). NMFS received requests for LOAs from Energy Resource Technology GOM, Inc. (ERT) and Demex International, Inc. (Demex) for activities covered by EROS regulations.</P>
        <HD SOURCE="HD1">Reporting</HD>
        <P>NMFS Galveston Laboratory's Platform Removal Observer Program (PROP) has provided reports for ERT removal of offshore structures during 2011. Demex has not used their LOA for any operations to date. NMFS PROP observers and non-NMFS observers reported the following during ERT's EROS operations in 2011:</P>
        <GPOTABLE CDEF="xs36,r50,r50,r50,xs44" COLS="5" OPTS="L2,tp0,i1">
          <BOXHD>
            <CHED H="1">Company</CHED>
            <CHED H="1">Structure</CHED>
            <CHED H="1">Dates</CHED>
            <CHED H="1">Marine mammals sighted<LI>(individuals)</LI>
            </CHED>
            <CHED H="1">Biological impacts observed to marine mammals</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Vermillion Area, Block 100, Platform C</ENT>
            <ENT>April 10 to 20, 2011</ENT>
            <ENT>Spotted dolphins (14)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Matagorda Island Area, Block 604, Platforms #1 and #14</ENT>
            <ENT>May 3 to 7, 2011</ENT>
            <ENT>Bottlenose dolphins (15), Spotted dolphins (23), and Unidentified dolphins (1)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Matagorda Island Area, Block 604, Well #3</ENT>
            <ENT>May 4 to 7, 2011</ENT>
            <ENT>Bottlenose dolphins (25)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Brazos Area, Block 436, Platform B</ENT>
            <ENT>May 16 to 31, 2011</ENT>
            <ENT>Bottlenose dolphins (97) and Spotted dolphins (5)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Vermilion Area, Block 83, Platform A</ENT>
            <ENT>May 30 to June 2, 2011</ENT>
            <ENT>None</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>West Cameron Area, Block 398, Platform B</ENT>
            <ENT>May 31 to June 10, 2011</ENT>
            <ENT>Bottlenose dolphins (25) and Spotted dolphins (12)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Vermillion Area, Block 61, Platform B</ENT>
            <ENT>June 3 to 7, 2011</ENT>
            <ENT>None</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>West Cameron Area, Block 417, Caisson A</ENT>
            <ENT>June 8 to 9, 2011</ENT>
            <ENT>None</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Brazos Area, Block 453, Platform A</ENT>
            <ENT>June 14 to 20 and June 27 to July 3, 2011</ENT>
            <ENT>Bottlenose dolphins (87)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ERT</ENT>
            <ENT>Matagorda Island Area, Block 604, Platform A</ENT>
            <ENT>July 4 to 8 and July 10 to 12, 2011</ENT>
            <ENT>Bottlenose dolphins (36)</ENT>
            <ENT>None.</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="10482"/>
            <ENT I="01">ERT</ENT>
            <ENT>South Marsh Island Area, Block 107, Platform B</ENT>
            <ENT>July 23 and August 4 to 8, 2011</ENT>
            <ENT>None</ENT>
            <ENT>None.</ENT>
          </ROW>
        </GPOTABLE>
        <P>Pursuant to these regulations, NMFS has issued an LOA to ERT and Demex. Issuance of the LOAs is based on a finding made in the preamble to the final rule that the total taking by these activities (with monitoring, mitigation, and reporting measures) will result in no more than a negligible impact on the affected species or stock(s) of marine mammals and will not have an unmitigable adverse impact on subsistence uses. NMFS will review reports to ensure that the applicants are in compliance with meeting the requirements contained in the implementing regulations and LOA, including monitoring, mitigation, and reporting requirements.</P>
        <SIG>
          <DATED>Dated: February 16, 2012.</DATED>
          <NAME>James H. Lecky,</NAME>
          <TITLE>Director, Office of Protected Resources, National Marine Fisheries Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4117 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>Patent and Trademark Office</SUBAGY>
        <SUBJECT>Trademark Petitions</SUBJECT>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed collection; comment request.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The United States Patent and Trademark Office (USPTO), as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on the continuing information collection, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)).</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be submitted on or before April 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments by any of the following methods:</P>
          <P>•<E T="03">Email:</E>
            <E T="03">InformationCollection@uspto.gov</E>. Include “0651-0061 comment” in the subject line of the message.</P>
          <P>•<E T="03">Mail:</E>Susan K. Fawcett, Records Officer, Office of the Chief Information Officer, United States Patent and Trademark Office, P.O. Box 1450, Alexandria, VA 22313-1450.</P>
          <P>•<E T="03">Federal Rulemaking Portal: http://www.regulations.gov</E>.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Requests for additional information should be directed to the attention of Catherine Cain, Attorney Advisor, Office of the Commissioner for Trademarks, United States Patent and Trademark Office, P.O. Box 1451, Alexandria, VA 22313-1451, by telephone at 571-272-8946, or by email to<E T="03">catherine.cain@uspto.gov,</E>with “Paperwork” in the subject line. Additional information about this collection is also available at<E T="03">http://www.reginfo.gov</E>under “Information Collection Review.”</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. Abstract</HD>

        <P>The United States Patent and Trademark Office (USPTO) administers the Trademark Act, 15 U.S.C. 1051<E T="03">et seq.,</E>which provides for the Federal registration of trademarks, service marks, collective trademarks and service marks, collective membership marks, and certification marks. Individuals and businesses that use or intend to use such marks in commerce may file an application to register their marks with the USPTO. Individuals and businesses may also submit various communications to the USPTO, including letters of protest, requests to make special, responses to petition inquiry letters, petitions to make special, requests to restore a filing date, and requests for reinstatement.</P>
        <P>A letter of protest is an informal procedure whereby third parties who object to the registration of a mark in a pending application may bring to the attention of the USPTO evidence bearing on the registrability of a mark. A letter of protest must identify the application being protested and the proposed grounds for refusing registration and include relevant evidence to support the protest.</P>
        <P>A request to make special may be submitted where an applicant's prior registration was cancelled due to the inadvertent failure to file a post registration maintenance document and should include an explanation of why special action is appropriate.</P>
        <P>A response to a petition inquiry letter is submitted by a petitioner who is responding to a notice of deficiency that the USPTO issued after receiving an incomplete Petition to the Director. A petition may be considered incomplete if, for example, it does not include the fee required by 37 CFR 2.6 or if it includes an unverified assertion that is not supported by evidence.</P>
        <P>The USPTO generally examines applications in the order in which they are received. A petition to make special is a request by the applicant to advance the initial examination of an application out of its regular order.</P>
        <P>A request to restore a filing date is submitted by an applicant who previously filed an application that was denied a filing date. The request must include evidence showing that the applicant is entitled to the earlier filing date.</P>
        <P>If an applicant has proof that an application was inadvertently abandoned due to a USPTO error, an applicant may file a request to reinstate the application instead of a formal petition to revive. To support such a request, the applicant must include clear evidence of the USPTO error.</P>
        <P>The information in this collection can be submitted in paper format or electronically through the Trademark Electronic Application System (TEAS). The USPTO has developed a TEAS Global Form format that permits the agency to collect information electronically for which a TEAS form with dedicated data fields is not yet available. With the introduction of the TEAS Global Forms, the information in this collection can be collected in paper format or electronically using the TEAS Global Forms.</P>
        <P>As part of this renewal the USPTO proposes to add four TEAS Global Forms—for responses to petition inquiry letter, petitions to make special, requests to restore filing date, and requests for reinstatement—into the collection. The paper equivalents for the response to petition inquiry letter, petition to make special, request to restore filing date, and request for reinstatement will be added as well.</P>

        <P>Although this collection does have electronic forms, there are no official<PRTPAGE P="10483"/>paper forms for these filings. Individuals and businesses can submit their own paper forms following the USPTO's rules and guidelines to ensure that all of the necessary information is provided.</P>
        <HD SOURCE="HD1">II. Method of Collection</HD>
        <P>Electronically, if applicants submit the information using the new TEAS Global Forms. By mail, facsimile, or hand delivery if applicants choose to submit the information in paper form.</P>
        <HD SOURCE="HD1">III. Data</HD>
        <P>
          <E T="03">OMB Number:</E>0651-0061.</P>
        <P>
          <E T="03">Form Number(s):</E>None.</P>
        <P>
          <E T="03">Type of Review:</E>Revision of a currently approved collection.</P>
        <P>
          <E T="03">Affected Public:</E>Primarily businesses or other for-profit organizations.</P>
        <P>
          <E T="03">Estimated Number of Respondents:</E>2,135 responses per year.</P>
        <P>
          <E T="03">Estimated Time per Response:</E>The USPTO estimates that it will take the public approximately 30 minutes (0.50 hours) to one hour to gather the necessary information, create the document, and submit the completed request, depending upon whether the information is submitted electronically or on paper.</P>
        <P>
          <E T="03">Estimated Total Annual Respondent Burden Hours:</E>1,689 hours.</P>
        <P>
          <E T="03">Estimated Total Annual Respondent Cost Burden:</E>$574,260. The USPTO expects that the information in this collection will be prepared by attorneys at an estimated rate of $340 per hour. Therefore, the USPTO estimates that the respondent cost burden for this collection will be approximately $574,260 per year.</P>
        <GPOTABLE CDEF="s100,xs50,12,12" COLS="4" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Item</CHED>
            <CHED H="1">Estimated time for<LI>response</LI>
            </CHED>
            <CHED H="1">Estimated annual<LI>responses</LI>
            </CHED>
            <CHED H="1">Estimated<LI>annual burden hours</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Letter of Protest (TEAS Global)</ENT>
            <ENT>50 minutes</ENT>
            <ENT>187</ENT>
            <ENT>155</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Letter of Protest (Paper)</ENT>
            <ENT>1 hour</ENT>
            <ENT>1,063</ENT>
            <ENT>1,063</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Request to Make Special (TEAS Global)</ENT>
            <ENT>30 minutes</ENT>
            <ENT>90</ENT>
            <ENT>45</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Request to Make Special (Paper)</ENT>
            <ENT>40 minutes</ENT>
            <ENT>10</ENT>
            <ENT>7</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Response to Petition to Director Inquiry Letter (TEAS Global)</ENT>
            <ENT>30 minutes</ENT>
            <ENT>19</ENT>
            <ENT>10</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Response to Petition to Director Inquiry Letter (Paper)</ENT>
            <ENT>40 minutes</ENT>
            <ENT>5</ENT>
            <ENT>3</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Petition to Make Special (TEAS Global)</ENT>
            <ENT>30 minutes</ENT>
            <ENT>135</ENT>
            <ENT>68</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Petition to Make Special (Paper)</ENT>
            <ENT>40 minutes</ENT>
            <ENT>15</ENT>
            <ENT>10</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Request to Restore Filing Date (TEAS Global)</ENT>
            <ENT>30 minutes</ENT>
            <ENT>1</ENT>
            <ENT>1</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Request to Restore Filing Date (Paper)</ENT>
            <ENT>40 minutes</ENT>
            <ENT>10</ENT>
            <ENT>7</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Request for Reinstatement (TEAS Global)</ENT>
            <ENT>30 minutes</ENT>
            <ENT>480</ENT>
            <ENT>240</ENT>
          </ROW>
          <ROW RUL="n,s">
            <ENT I="01">Request for Reinstatement (Paper)</ENT>
            <ENT>40 minutes</ENT>
            <ENT>120</ENT>
            <ENT>80</ENT>
          </ROW>
          <ROW>
            <ENT I="03">Totals</ENT>
            <ENT/>
            <ENT>2,135</ENT>
            <ENT>1,689</ENT>
          </ROW>
        </GPOTABLE>
        <P>
          <E T="03">Estimated Total Annual (Non-hour) Respondent Cost Burden:</E>$15,550. This collection has annual (non-hour) costs in the form of postage costs and filing fees.</P>
        <P>The public may submit the non-electronic information in this collection to the USPTO by mail through the United States Postal Service. The USPTO estimates that the majority of submissions for these paper forms are made via first-class mail at a cost of 45 cents per submission. The total estimated postage cost for this collection is $550 (1,223 paper submissions × $0.45).</P>
        <P>The only item in this information collection with a filing fee is the Petition to Make Special, with a filing fee of $100. The total estimated filing fee cost for this collection is $15,000.</P>
        <GPOTABLE CDEF="s100,12,12,12" COLS="4" OPTS="L2(,0,),tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Item</CHED>
            <CHED H="1">Responses</CHED>
            <CHED H="1">Filing fee<LI>($)</LI>
            </CHED>
            <CHED H="1">Total non-hour<LI>cost burden</LI>
              <LI>(a) × (b)</LI>
            </CHED>
          </BOXHD>
          <ROW RUL="s">
            <ENT I="25"/>
            <ENT>(a)</ENT>
            <ENT>(b)</ENT>
            <ENT>(c)</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Petition to Make Special (TEAS Global)</ENT>
            <ENT>135</ENT>
            <ENT>$100.00</ENT>
            <ENT>$13,500.00</ENT>
          </ROW>
          <ROW RUL="n,s">
            <ENT I="01">Petition to Make Special (Paper)</ENT>
            <ENT>15</ENT>
            <ENT>100.00</ENT>
            <ENT>1,500.00</ENT>
          </ROW>
          <ROW>
            <ENT I="03">Total</ENT>
            <ENT>150</ENT>
            <ENT/>
            <ENT>15,000.00</ENT>
          </ROW>
        </GPOTABLE>
        <P>Therefore, the total estimated (non-hour) respondent cost burden in postage costs and filing fees for this information collection is $15,550.</P>
        <HD SOURCE="HD1">IV. Request for Comments</HD>
        <P>
          <E T="03">Comments are invited on:</E>(a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden (including hours and cost) of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, e.g., the use of automated collection techniques or other forms of information technology.</P>
        <P>Comments submitted in response to this notice will be summarized or included in the request for OMB approval of this information collection; they also will become a matter of public record.</P>
        <SIG>
          <DATED>Dated: February 16, 2012.</DATED>
          <NAME>Susan K. Fawcett,</NAME>
          <TITLE>Records Officer, USPTO, Office of the Chief Information Officer.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-4085 Filed 2-21-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-16-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <PRTPAGE P="10484"/>
        <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
        <SUBAGY>Office of the Secretary</SUBAGY>
        <DEPDOC>[Docket ID DOD-2012-OS-0022]</DEPDOC>
        <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Office of the Under Secretary of Defense (Personnel and Readiness), Department of Defense (DoD).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In compliance with Section 3506(c)(2)(A) of the<E T="03">Paperwork Reduction Act of 1995,</E>the Office of the Under Secretary of Defense (Personnel and Readiness) announces the following proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility; (b) the accuracy of the agency's estimate of burden of the proposed information collection; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Consideration will be given to all comments received by April 23, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>
            <E T="03">http://www.regulations.gov</E>. Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Mail:</E>Federal Docket Management System Office, 4800 Mark Center Drive, East Tower, 2nd floor, Suite 02G09, Alexandria, VA 22350-3100.</P>
          
          <FP>
            <E T="03">Instructions:</E>All submissions received must include the agency name, docket number and title for this<E T="04">Federal Register</E>docum