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  <VOL>77</VOL>
  <NO>100</NO>
  <DATE>Wednesday, May 23, 2012</DATE>
  <UNITNAME>Contents</UNITNAME>
  <CNTNTS>
    <AGCY>
      <EAR>Agriculture</EAR>
      <PRTPAGE P="iii"/>
      <HD>Agriculture Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Rural Utilities Service</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12425</FRDOCBP>
          <PGS>30497-30498</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12426</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Air Force</EAR>
      <HD>Air Force Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Extend Public Comment Period for United States Air Force F-35a Operational Basing,</SJDOC>
          <PGS>30509</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12458</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Centers Disease</EAR>
      <HD>Centers for Disease Control and Prevention</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>30535-30536</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12479</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Civil Rights</EAR>
      <HD>Civil Rights Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Maryland Advisory Committee,</SJDOC>
          <PGS>30500</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12498</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Coast Guard</EAR>
      <HD>Coast Guard</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Security Zones:</SJ>
        <SJDENT>
          <SJDOC>Escorted Vessels on the Lower Mississippi River,</SJDOC>
          <PGS>30400-30402</PGS>
          <FRDOCBP D="2" T="23MYR1.sgm">2012-12313</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Anchorages:</SJ>
        <SJDENT>
          <SJDOC>Change to Cottonwood Island Anchorage, Columbia River, Oregon and Washington,</SJDOC>
          <PGS>30440-30443</PGS>
          <FRDOCBP D="3" T="23MYP1.sgm">2012-12456</FRDOCBP>
        </SJDENT>
        <SJ>Safety Zones:</SJ>
        <SJDENT>
          <SJDOC>A Salute to Our Heroes Fireworks, Hamlin Beach State Park, Hamlin, NY,</SJDOC>
          <PGS>30448-30451</PGS>
          <FRDOCBP D="3" T="23MYP1.sgm">2012-12464</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Alexandria Bay Chamber of Commerce, St. Lawrence River, Alexandria Bay, NY,</SJDOC>
          <PGS>30443-30445</PGS>
          <FRDOCBP D="2" T="23MYP1.sgm">2012-12455</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Atlantic Intracoastal Waterway; Wrightsville Beach, NC,</SJDOC>
          <PGS>30445-30448</PGS>
          <FRDOCBP D="3" T="23MYP1.sgm">2012-12459</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Olcott Fireworks, Lake Ontario, Olcott, NY,</SJDOC>
          <PGS>30451-30453</PGS>
          <FRDOCBP D="2" T="23MYP1.sgm">2012-12453</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Preparations for 22nd Session of Assembly of International Mobile Satellite Organization,</SJDOC>
          <PGS>30542</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12457</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Commerce</EAR>
      <HD>Commerce Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Foreign-Trade Zones Board</P>
      </SEE>
      <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>
    </AGCY>
    <AGCY>
      <EAR>Commodity Futures</EAR>
      <HD>Commodity Futures Trading Commission</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Definitions:</SJ>
        <SJDENT>
          <SJDOC>Swap Dealer, Security-Based Swap Dealer, Major Swap Participant, Major Security-Based Swap Participant and Eligible Contract Participant,</SJDOC>
          <PGS>30596-30764</PGS>
          <FRDOCBP D="168" T="23MYR2.sgm">2012-10562</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Defense Department</EAR>
      <HD>Defense Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Air Force Department</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>2013 DoD 10 Key State Issues Impacting Service Members and Their Families,</SJDOC>
          <PGS>30508-30509</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12419</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Denali</EAR>
      <HD>Denali Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Denali Commission Fiscal Year 2012 Draft Work Plan; Correction,</DOC>
          <PGS>30509-30512</PGS>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12462</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Education Department</EAR>
      <HD>Education Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Strategies for Preparing At-Risk Youth for Postsecondary Success,</SJDOC>
          <PGS>30512</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12536</FRDOCBP>
        </SJDENT>
        <SJ>Final Waivers and Extension of Project Period:</SJ>
        <SJDENT>
          <SJDOC>Native American Career and Technical Education Program,</SJDOC>
          <PGS>30512-30514</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12540</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Native Hawaiian Career and Technical Education Program,</SJDOC>
          <PGS>30514-30516</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12537</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Tribally Controlled Postsecondary Career and Technical Institutions Program,</SJDOC>
          <PGS>30516-30517</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12542</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>
        <DOCENT>
          <DOC>Electricity Subsector Cybersecurity Risk Management Process,</DOC>
          <PGS>30517-30518</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12484</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Support of Deployment of Prototype Small Modular Reactors at Savannah River Site,</DOC>
          <PGS>30518</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12486</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Environmental Protection</EAR>
      <HD>Environmental Protection Agency</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Time-Limited Pesticide Tolerances:</SJ>
        <SJDENT>
          <SJDOC>Acibenzolar-S-methyl,</SJDOC>
          <PGS>30402-30407</PGS>
          <FRDOCBP D="5" T="23MYR1.sgm">2012-12410</FRDOCBP>
        </SJDENT>
        <SJ>Tolerance Exemptions:</SJ>
        <SJDENT>
          <SJDOC>1, 2-Ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer With 2, 4-diisocyanato-1-methylbenzene,</SJDOC>
          <PGS>30407-30410</PGS>
          <FRDOCBP D="3" T="23MYR1.sgm">2012-12110</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Approval and Promulgation of Air Quality Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>Wisconsin; Milwaukee-Racine Nonattainment Area; Determination of Attainment for the 2006 24-Hour Fine Particle Standard,</SJDOC>
          <PGS>30453-30454</PGS>
          <FRDOCBP D="1" T="23MYP1.sgm">2012-12509</FRDOCBP>
        </SJDENT>
        <SJ>Approval and Promulgation of Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>Oregon; Regional Haze State Implementation Plan,</SJDOC>
          <PGS>30454-30467</PGS>
          <FRDOCBP D="13" T="23MYP1.sgm">2012-12490</FRDOCBP>
        </SJDENT>
        <SJ>Approvals and Promulgations of Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>Washington; Regional Haze State Implementation Plan,</SJDOC>
          <PGS>30467-30473</PGS>
          <FRDOCBP D="6" T="23MYP1.sgm">2012-12504</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Pesticide Petitions Filed for Residues of Pesticide Chemicals in or on Various Commodities,</DOC>
          <PGS>30481-30485</PGS>
          <FRDOCBP D="4" T="23MYP1.sgm">2012-12126</FRDOCBP>
        </DOCENT>
        <SJ>Revisions to Stormwater Regulations:</SJ>
        <SJDENT>
          <SJDOC>NPDES Permit is not Required for Stormwater Discharges from Logging Roads, etc.,</SJDOC>
          <PGS>30473-30481</PGS>
          <FRDOCBP D="8" T="23MYP1.sgm">2012-12524</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>RCRA Definition of Solid Waste,</SJDOC>
          <PGS>30523-30524</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12460</FRDOCBP>
        </SJDENT>
        <SJ>Pesticide Products:</SJ>
        <SJDENT>
          <SJDOC>Applications to Register New Uses,</SJDOC>
          <PGS>30524-30526</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12492</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Product Cancellation Orders for Certain Pesticide Registrations,</DOC>
          <PGS>30526-30528</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12488</FRDOCBP>
        </DOCENT>
        <SJ>Public Teleconferences:</SJ>
        <SJDENT>
          <SJDOC>Science Advisory Board Libby Amphibole Asbestos Review Panel,</SJDOC>
          <PGS>30528-30529</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12499</FRDOCBP>
        </SJDENT>
        <PRTPAGE P="iv"/>
        <SJ>Receipt of Report and Request for Comments:</SJ>
        <SJDENT>
          <SJDOC>Sixty-Ninth Report of TSCA Interagency Testing Committee to Administrator,</SJDOC>
          <PGS>30856-30869</PGS>
          <FRDOCBP D="13" T="23MYN2.sgm">2012-12493</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR/>
      <HD>Executive Office of the President</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Presidential Documents</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Federal Aviation</EAR>
      <HD>Federal Aviation Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Airworthiness Directives:</SJ>
        <SJDENT>
          <SJDOC>International Aero Engines AG Turbofan Engines,</SJDOC>
          <PGS>30371-30376</PGS>
          <FRDOCBP D="5" T="23MYR1.sgm">2012-12329</FRDOCBP>
        </SJDENT>
        <SJ>Amendment of Restricted Area R-2101:</SJ>
        <SJDENT>
          <SJDOC>Anniston Army Depot, AL,</SJDOC>
          <PGS>30376-30377</PGS>
          <FRDOCBP D="1" T="23MYR1.sgm">2012-12576</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Amendment of Air Traffic Service Routes:</SJ>
        <SJDENT>
          <SJDOC>Southwestern United States,</SJDOC>
          <PGS>30437-30438</PGS>
          <FRDOCBP D="1" T="23MYP1.sgm">2012-12571</FRDOCBP>
        </SJDENT>
        <SJ>Establishment of Class E Airspace:</SJ>
        <SJDENT>
          <SJDOC>Apopka, FL,</SJDOC>
          <PGS>30439-30440</PGS>
          <FRDOCBP D="1" T="23MYP1.sgm">2012-12550</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Quakertown, PA,</SJDOC>
          <PGS>30438-30439</PGS>
          <FRDOCBP D="1" T="23MYP1.sgm">2012-12545</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>RTCA Special Committee 206, Aeronautical Information and Meteorological Data Link Services,</SJDOC>
          <PGS>30584-30585</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12553</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Operating Limitations at New York LaGuardia Airport; Technical Amendment,</DOC>
          <PGS>30585-30586</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12552</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Communications</EAR>
      <HD>Federal Communications Commission</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Connect America Fund; High-Cost Universal Service Support,</DOC>
          <PGS>30411-30423</PGS>
          <FRDOCBP D="12" T="23MYR1.sgm">2012-12539</FRDOCBP>
        </DOCENT>
        <SJ>Innovation in the Broadcast Television Bands:</SJ>
        <SJDENT>
          <SJDOC>Allocations, Channel Sharing and Improvements to VHF, Report and Order,</SJDOC>
          <PGS>30423-30427</PGS>
          <FRDOCBP D="4" T="23MYR1.sgm">2012-12551</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Jurisdictional Separations and Referral to the Federal-State Joint Board,</DOC>
          <PGS>30410-30411</PGS>
          <FRDOCBP D="1" T="23MYR1.sgm">2012-12548</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Petitions for Reconsideration of Action in Rulemaking Proceeding,</DOC>
          <PGS>30485-30486</PGS>
          <FRDOCBP D="1" T="23MYP1.sgm">2012-12613</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>30529-30530</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12502</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Deposit</EAR>
      <HD>Federal Deposit Insurance Corporation</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Procedures for Monitoring Bank Secrecy Act Compliance and Fair Credit Reporting; Correction,</DOC>
          <PGS>30371</PGS>
          <FRDOCBP D="0" T="23MYR1.sgm">2012-12495</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Energy</EAR>
      <HD>Federal Energy Regulatory Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Applications:</SJ>
        <SJDENT>
          <SJDOC>Grand River Dam Authority,</SJDOC>
          <PGS>30518-30519</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12449</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Town of Springfield, VT,  Siemens Westinghouse Technical Services, Inc.; One Hundred River Street, LLC,</SJDOC>
          <PGS>30518</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12446</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Combined Filings,</DOC>
          <PGS>30519-30521</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12465</FRDOCBP>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12469</FRDOCBP>
        </DOCENT>
        <SJ>Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorization:</SJ>
        <SJDENT>
          <SJDOC>Amplified Power and Gas, LLC,</SJDOC>
          <PGS>30522</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12447</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Community Energy, Inc.,</SJDOC>
          <PGS>30521</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12467</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Pacific Wind, LLC,</SJDOC>
          <PGS>30521</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12468</FRDOCBP>
        </SJDENT>
        <SJ>Initiations of Proceedings and Refund Effective Dates:</SJ>
        <SJDENT>
          <SJDOC>Midwest Independent Transmission System Operator, Inc., et al.,</SJDOC>
          <PGS>30522</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12466</FRDOCBP>
        </SJDENT>
        <SJ>Petitions for Declaratory Orders:</SJ>
        <SJDENT>
          <SJDOC>Sunoco Pipeline LP, West Texas Gulf Pipe Line Co., Mobil Pipe Line Co.,</SJDOC>
          <PGS>30522-30523</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12448</FRDOCBP>
        </SJDENT>
        <SJ>Preliminary Permit Applications:</SJ>
        <SJDENT>
          <SJDOC>Albany Engineering Corp.,</SJDOC>
          <PGS>30523</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12450</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Highway</EAR>
      <HD>Federal Highway Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Uniform Relocation Assistance, Real Property Acquisition for Federal and Federally Assisted Programs:</SJ>
        <SJDENT>
          <SJDOC>Fixed Residential Moving Cost Schedule,</SJDOC>
          <PGS>30586-30588</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12380</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Maritime</EAR>
      <HD>Federal Maritime Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agreements Filed,</DOC>
          <PGS>30530</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12529</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Ocean Transportation  Intermediary Licenses; Applicants,</DOC>
          <PGS>30530-30531</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12532</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Ocean Transportation  Intermediary Licenses; Reissuances,</DOC>
          <PGS>30531-30532</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12530</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Ocean Transportation  Intermediary Licenses; Revocations,</DOC>
          <PGS>30532</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12533</FRDOCBP>
        </DOCENT>
      </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>30532-30535</PGS>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12473</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Formations of, Acquisitions by, and Mergers of Bank Holding Companies,</DOC>
          <PGS>30535</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12474</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Fish</EAR>
      <HD>Fish and Wildlife Service</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Endangered and Threatened Wildlife and Plants:</SJ>
        <SJDENT>
          <SJDOC>Removal of the Morelet's Crocodile from the Federal List,</SJDOC>
          <PGS>30820-30854</PGS>
          <FRDOCBP D="34" T="23MYR3.sgm">2012-12263</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Endangered Species Permit Applications,</DOC>
          <PGS>30547-30550</PGS>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12481</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Foreign Assets</EAR>
      <HD>Foreign Assets Control Office</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Foreign Narcotics Kingpin Designation Act:</SJ>
        <SJDENT>
          <SJDOC>Unblocking of Specially Designated Nationals and Blocked Persons,</SJDOC>
          <PGS>30590</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12423</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Foreign Trade</EAR>
      <HD>Foreign-Trade Zones Board</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Applications for Subzone Authority:</SJ>
        <SJDENT>
          <SJDOC>Dow Corning Corporation, etc., Foreign Trade Zones 140, and 78,</SJDOC>
          <PGS>30500</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12557</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Health and Human</EAR>
      <HD>Health and Human Services Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Centers for Disease Control and Prevention</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Health Resources and Services Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>National Institutes of Health</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Health Resources</EAR>
      <HD>Health Resources and Services Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Implementation of the Scholarships for Disadvantaged Students Program; Updates and Clarifications,</DOC>
          <PGS>30536-30540</PGS>
          <FRDOCBP D="4" T="23MYN1.sgm">2012-12568</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>Transportation Security Administration</P>
      </SEE>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Privacy Act of 1974:</SJ>
        <SJDENT>
          <SJDOC>Implementation of Exemptions; Automated Targeting System,</SJDOC>
          <PGS>30433-30435</PGS>
          <FRDOCBP D="2" T="23MYP1.sgm">2012-12395</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Housing</EAR>
      <HD>Housing and Urban Development Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>LOCCS/VRS Self-help Homeownership Opportunity Program Payment Voucher,</SJDOC>
          <PGS>30546-30547</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12546</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Indian Affairs</EAR>
      <PRTPAGE P="v"/>
      <HD>Indian Affairs Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Indian Gaming:</SJ>
        <SJDENT>
          <SJDOC>Approved Tribal-State Class III Gaming Compact,</SJDOC>
          <PGS>30550</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12510</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Industry</EAR>
      <HD>Industry and Security Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>President's Export Council Subcommittee on Export Administration,</SJDOC>
          <PGS>30500-30501</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12506</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Interior</EAR>
      <HD>Interior Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Fish and Wildlife Service</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>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Ocean Energy Management Bureau</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Internal Revenue</EAR>
      <HD>Internal Revenue Service</HD>
      <CAT>
        <HD>RULES</HD>
        <DOCENT>
          <DOC>Health Insurance Premium Tax Credit,</DOC>
          <PGS>30377-30400</PGS>
          <FRDOCBP D="23" T="23MYR1.sgm">2012-12421</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee,</SJDOC>
          <PGS>30592</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12434</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Face-to-Face Service Methods Project Committee,</SJDOC>
          <PGS>30591-30592</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12433</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Joint Committee,</SJDOC>
          <PGS>30591</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12431</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Small Business / Self-Employed Decreasing Non-Filers Project Committee,</SJDOC>
          <PGS>30591</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12430</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Tax Forms and Publications Project Committee,</SJDOC>
          <PGS>30591</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12432</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Taxpayer Burden Reduction Project Committee,</SJDOC>
          <PGS>30590</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12428</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Taxpayer Advocacy Panel Toll-Free Project Committee,</SJDOC>
          <PGS>30590-30591</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12429</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>International Trade Adm</EAR>
      <HD>International Trade Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Anticircumvention Inquiries:</SJ>
        <SJDENT>
          <SJDOC>Uncovered Innerspring Units From People's Republic of China,</SJDOC>
          <PGS>30501-30504</PGS>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12508</FRDOCBP>
        </SJDENT>
        <SJ>Antidumping Duty Administrative Reviews; Results, Extensions, Amendments, etc.:</SJ>
        <SJDENT>
          <SJDOC>Certain Orange Juice From Brazil,</SJDOC>
          <PGS>30504-30505</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12512</FRDOCBP>
        </SJDENT>
        <SJ>Applications for Duty Free Entry of Scientific Instruments:</SJ>
        <SJDENT>
          <SJDOC>Cornell University, et al.,</SJDOC>
          <PGS>30505</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12577</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Justice Department</EAR>
      <HD>Justice Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Lodgings of Consent Decrees:</SJ>
        <SJDENT>
          <SJDOC>United States et al. v. Questar Gas Management Co.,</SJDOC>
          <PGS>30555</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12476</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Labor Department</EAR>
      <HD>Labor Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Mine Safety and Health Administration</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Land</EAR>
      <HD>Land Management Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Filings of Plats:</SJ>
        <SJDENT>
          <SJDOC>Colorado,</SJDOC>
          <PGS>30550</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12454</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Western Montana Resource Advisory Council,</SJDOC>
          <PGS>30550-30551</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12461</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Mine</EAR>
      <HD>Mine Safety and Health Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Petitions for Modification of Application of Existing Mandatory Safety Standards,</DOC>
          <PGS>30555-30558</PGS>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12417</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Archives</EAR>
      <HD>National Archives and Records Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Records Schedules; Availability,</DOC>
          <PGS>30558-30559</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12424</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Highway</EAR>
      <HD>National Highway Traffic Safety Administration</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Federal Motor Vehicle Safety Standards:</SJ>
        <SJDENT>
          <SJDOC>Electronic Stability Control Systems for Heavy Vehicles,</SJDOC>
          <PGS>30766-30818</PGS>
          <FRDOCBP D="52" T="23MYP2.sgm">2012-12212</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Institute</EAR>
      <HD>National Institutes of Health</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Cognitive Testing of Instrumentation and Materials for Population Assessment of Tobacco and Health Study,</SJDOC>
          <PGS>30540</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12489</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Center for Scientific Review,</SJDOC>
          <PGS>30540-30541</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12519</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Heart, Lung, and Blood Institute,</SJDOC>
          <PGS>30541-30542</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12518</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Oceanic</EAR>
      <HD>National Oceanic and Atmospheric Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Fisheries of the Northeastern United States:</SJ>
        <SJDENT>
          <SJDOC>Recreational Management Measures for Summer Flounder, Scup, and Black Sea Bass Fisheries; Fishing Year 2012,</SJDOC>
          <PGS>30427-30432</PGS>
          <FRDOCBP D="5" T="23MYR1.sgm">2012-12422</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Confidentiality of Information; Magnuson-Stevens Fishery Conservation and Management Reauthorization Act,</DOC>
          <PGS>30486-30496</PGS>
          <FRDOCBP D="10" T="23MYP1.sgm">2012-12513</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Fisheries of Caribbean, Gulf of Mexico, South Atlantic; Comprehensive Amendment,</SJDOC>
          <PGS>30506</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12436</FRDOCBP>
        </SJDENT>
        <SJ>Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic:</SJ>
        <SJDENT>
          <SJDOC>Reef Fish Fishery of Gulf of Mexico; Exempted Fishing Permit,</SJDOC>
          <PGS>30507</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12516</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Mid-Atlantic Fishery Management Council,</SJDOC>
          <PGS>30507-30508</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12496</FRDOCBP>
        </SJDENT>
        <SJ>Permits:</SJ>
        <SJDENT>
          <SJDOC>Marine Mammals; File No. 16991,</SJDOC>
          <PGS>30508</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12514</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Science</EAR>
      <HD>National Science Foundation</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Permits:</SJ>
        <SJDENT>
          <SJDOC>Antarctic Conservation of 1978,</SJDOC>
          <PGS>30559</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12480</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Nuclear Regulatory</EAR>
      <HD>Nuclear Regulatory Commission</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>In-core Thermocouples at Different Elevations and Radial Positions in Reactor Core,</DOC>
          <PGS>30435-30437</PGS>
          <FRDOCBP D="2" T="23MYP1.sgm">2012-12475</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Establishments of Atomic Safety and Licensing Boards:</SJ>
        <SJDENT>
          <SJDOC>Entergy Nuclear Operations, Inc.,</SJDOC>
          <PGS>30559-30560</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12477</FRDOCBP>
        </SJDENT>
        <SJ>Proposed Generic Communications:</SJ>
        <SJDENT>
          <SJDOC>Generic Letter on Seismic Risk Evaluations for Operating Reactors; Withdrawal,</SJDOC>
          <PGS>30560</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12478</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Ocean Energy Management</EAR>
      <HD>Ocean Energy Management Bureau</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Proposed Grant Areas and Requests for Competitive Interest:</SJ>
        <SJDENT>
          <SJDOC>Commercial Renewable Energy Transmission on Outer Continental Shelf Offshore Rhode Island,</SJDOC>
          <PGS>30551-30555</PGS>
          <FRDOCBP D="4" T="23MYN1.sgm">2012-12485</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Postal Regulatory</EAR>
      <PRTPAGE P="vi"/>
      <HD>Postal Regulatory Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>30560-30561</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12659</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Presidential Documents</EAR>
      <HD>Presidential Documents</HD>
      <CAT>
        <HD>PROCLAMATIONS</HD>
        <SJ>Special Observances:</SJ>
        <SJDENT>
          <SJDOC>Armed Forces Day (Proc. 8823),</SJDOC>
          <PGS>30875-30876</PGS>
          <FRDOCBP D="1" T="23MYD0.sgm">2012-12748</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>ADMINISTRATIVE ORDERS</HD>
        <DOCENT>
          <DOC>Prison Rape Elimination Act; Implementation (Memorandum of May 17, 2012),</DOC>
          <PGS>30871-30874</PGS>
          <FRDOCBP D="3" T="23MYO0.sgm">2012-12743</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Rural Utilities</EAR>
      <HD>Rural Utilities Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>30498-30499</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12549</FRDOCBP>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12556</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals:,</DOC>
          <PGS>30499-30500</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12558</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Securities</EAR>
      <HD>Securities and Exchange Commission</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Definitions:</SJ>
        <SJDENT>
          <SJDOC>Swap Dealer, Security-Based Swap Dealer, Major Swap Participant, Major Security-Based Swap Participant and Eligible Contract Participant,</SJDOC>
          <PGS>30596-30764</PGS>
          <FRDOCBP D="168" T="23MYR2.sgm">2012-10562</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
        <SJDENT>
          <SJDOC>C2 Options Exchange, Inc.,</SJDOC>
          <PGS>30571-30572</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12440</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>EDGA Exchange, Inc.,</SJDOC>
          <PGS>30562-30564</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12443</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>EDGX Exchange, Inc.,</SJDOC>
          <PGS>30564-30566</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12442</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NASDAQ OMX BX, Inc.,</SJDOC>
          <PGS>30561-30562, 30566-30570, 30576-30581</PGS>
          <FRDOCBP D="4" T="23MYN1.sgm">2012-12441</FRDOCBP>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12444</FRDOCBP>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12452</FRDOCBP>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12472</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NASDAQ OMX PHLX LLC,</SJDOC>
          <PGS>30581-30584</PGS>
          <FRDOCBP D="3" T="23MYN1.sgm">2012-12451</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NYSE Amex LLC,</SJDOC>
          <PGS>30572-30574</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12439</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NYSE Arca, Inc.,</SJDOC>
          <PGS>30574-30576</PGS>
          <FRDOCBP D="2" T="23MYN1.sgm">2012-12438</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Options Clearing Corp.,</SJDOC>
          <PGS>30562</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12445</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>State Department</EAR>
      <HD>State Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Termination of United States-Bolivia Bilateral Investment Treaty,</DOC>
          <PGS>30584</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12494</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Surface Transportation</EAR>
      <HD>Surface Transportation Board</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Construction and Operation Exemption</SJ>
        <SJDENT>
          <SJDOC>R.J. Corman Railroad Co.,/Pennsylvania Lines Inc., Clearfield County, PA,</SJDOC>
          <PGS>30588-30589</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12570</FRDOCBP>
        </SJDENT>
        <SJ>Control Exemptions:</SJ>
        <SJDENT>
          <SJDOC>SteelRiver Infrastructure Partners LP, et al., Patriot Rail Corp., et al.,</SJDOC>
          <PGS>30589</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12511</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Transportation Department</EAR>
      <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>National Highway Traffic Safety Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Surface Transportation Board</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Transportation Security Administration</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Security</EAR>
      <HD>Transportation Security Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Air Cargo Screening Fees,</DOC>
          <PGS>30542-30546</PGS>
          <FRDOCBP D="4" T="23MYN1.sgm">2012-12555</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Treasury</EAR>
      <HD>Treasury Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Foreign Assets Control Office</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Internal Revenue Service</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Veteran Affairs</EAR>
      <HD>Veterans Affairs Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Applications and Appraisals for Employment for Title 38 Positions and Trainees,</SJDOC>
          <PGS>30593</PGS>
          <FRDOCBP D="0" T="23MYN1.sgm">2012-12385</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Yellow Ribbon Agreement,</SJDOC>
          <PGS>30592-30593</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12384</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Veterans Rural Health Advisory Committee,</SJDOC>
          <PGS>30593-30594</PGS>
          <FRDOCBP D="1" T="23MYN1.sgm">2012-12520</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <PTS>
      <HD SOURCE="HED">Separate Parts In This Issue</HD>
      <HD>Part II</HD>
      <DOCENT>
        <DOC>Commodity Futures Trading Commission,</DOC>
        <PGS>30596-30764</PGS>
        <FRDOCBP D="168" T="23MYR2.sgm">2012-10562</FRDOCBP>
      </DOCENT>
      <DOCENT>
        <DOC>Securities and Exchange Commission,</DOC>
        <PGS>30596-30764</PGS>
        <FRDOCBP D="168" T="23MYR2.sgm">2012-10562</FRDOCBP>
      </DOCENT>
      <HD>Part III</HD>
      <DOCENT>
        <DOC>Transportation Department, National Highway Traffic Safety Administration,</DOC>
        <PGS>30766-30818</PGS>
        <FRDOCBP D="52" T="23MYP2.sgm">2012-12212</FRDOCBP>
      </DOCENT>
      <HD>Part IV</HD>
      <DOCENT>
        <DOC>Interior Department, Fish and Wildlife Service,</DOC>
        <PGS>30820-30854</PGS>
        <FRDOCBP D="34" T="23MYR3.sgm">2012-12263</FRDOCBP>
      </DOCENT>
      <HD>Part V</HD>
      <DOCENT>
        <DOC>Environmental Protection Agency,</DOC>
        <PGS>30856-30869</PGS>
        <FRDOCBP D="13" T="23MYN2.sgm">2012-12493</FRDOCBP>
      </DOCENT>
      <HD>Part VI</HD>
      <DOCENT>
        <DOC>Presidential Documents,</DOC>
        <PGS>30871-30876</PGS>
        <FRDOCBP D="1" T="23MYD0.sgm">2012-12748</FRDOCBP>
        <FRDOCBP D="3" T="23MYO0.sgm">2012-12743</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>100</NO>
  <DATE>Wednesday, May 23, 2012</DATE>
  <UNITNAME>Rules and Regulations</UNITNAME>
  <RULES>
    <RULE>
      <PREAMB>
        <PRTPAGE P="30371"/>
        <AGENCY TYPE="F">FEDERAL DEPOSIT INSURANCE CORPORATION</AGENCY>
        <CFR>12 CFR Part 326</CFR>
        <RIN>RIN 3064-AD76</RIN>
        <SUBJECT>Procedures for Monitoring Bank Secrecy Act Compliance and Fair Credit Reporting: Technical Amendments; Correction</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Deposit Insurance Corporation (FDIC).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule; correction.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The FDIC is correcting a final rule that appeared in the<E T="04">Federal Register</E>of March 18, 2011, regarding Procedures for Monitoring Bank Secrecy Act Compliance and Fair Credit Reporting: Technical Amendments. This correction clarifies that the FDIC did not intend to remove a paragraph from its regulations.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective May 23, 2012. This correction is applicable beginning March 18, 2011.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Carl Gold, Counsel, Legal Division, (202) 898-8702, 550 17th Street NW., Washington, DC 20429.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>On March 18, 2011, the FDIC published a final rule, Procedures for Monitoring Bank Secrecy Act Compliance and Fair Credit Reporting: Technical Amendments (76 FR 10672). This final rule included revisions to 12 CFR 326.8(a) and (b). No revisions were being made to § 326.8(c) so it was not included in the March 18, 2011, final rule, but owing to an error in punctuation in that rule, 12 CFR 326.8(c) was removed from the Code of Federal Regulations.</P>
        <P>For the reasons set out in the preamble, the FDIC hereby amends 12 CFR part 326 with the following correcting amendment:</P>
        <REGTEXT PART="326" TITLE="12">
          <PART>
            <HD SOURCE="HED">PART 326—MINIMUM SECURITY DEVICES AND PROCEDURES AND BANK SECRECY ACT COMPLIANCE</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 326 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>12 U.S.C. 1813, 1815, 1817, 1818, 1819 (Tenth), 1881-1883; 31 U.S.C. 5311-5314 and 5316-5332.2.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="326" TITLE="12">
          <AMDPAR>2. In § 326.8, paragraphs (a) and (b) are republished and paragraph (c) is added to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 326.8</SECTNO>
            <SUBJECT>Bank Security Act compliance.</SUBJECT>
            <P>(a)<E T="03">Purpose.</E>This subpart is issued to assure that all insured nonmember banks as defined in 12 CFR 326.1 establish and maintain procedures reasonably designed to assure and monitor their compliance with the requirements of subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations promulgated thereunder by the Department of Treasury at 31 CFR Chapter X.</P>
            <P>(b)<E T="03">Compliance procedures</E>—(1)<E T="03">Program requirement.</E>Each bank shall develop and provide for the continued administration of a program reasonably designed to assure and monitor compliance with recordkeeping and reporting requirements set forth in subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations issued by the Department of Treasury at 31 CFR Chapter X. The compliance program shall be written, approved by the bank's board of directors, and noted in the minutes.</P>
            <P>(2)<E T="03">Customer identification program.</E>Each bank is subject to the requirements of 31 U.S.C. 5318(l) and the implementing regulation jointly promulgated by the FDIC and the Department of the Treasury at 31 CFR 1020.220.</P>
            <P>(c)<E T="03">Contents of compliance program.</E>The compliance program shall, at a minimum:</P>
            <P>(1) Provide for a system of internal controls to assure ongoing compliance;</P>
            <P>(2) Provide for independent testing for compliance to be conducted by bank personnel or by an outside party;</P>
            <P>(3) Designate an individual or individuals responsible for coordinating and monitoring day-to-day compliance; and</P>
            <P>(4) Provide training for appropriate personnel.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: May 18, 2012.</DATED>
          
          <FP>Federal Deposit Insurance Corporation.</FP>
          <NAME>Valerie J. Best,</NAME>
          <TITLE>Assistant Executive Secretary.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12495 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6741-01-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-2009-1100; Directorate Identifier 2009-NE-37-AD; Amendment 39-17044; AD 2012-09-09]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; International Aero Engines AG 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 International Aero Engines AG (IAE) V2500-A1, V2525-D5 and V2528-D5 turbofan engines, and certain serial numbers (S/Ns) of IAE V2522-A5, V2524-A5, V2527-A5, V2527E-A5, V2527M-A5, V2530-A5, and V2533-A5 turbofan engines. That AD currently requires initial and repetitive ultrasonic inspections (USIs) of certain high-pressure compressor (HPC) stage 3 to 8 drums, and replacement of drum attachment nuts. This new AD expands the affected population for initial and repetitive inspections of the HPC stage 3 to 8 drum, introduces an eddy current inspection (ECI) procedure, and requires additional cleaning and repetitive USI of some HPC stage 3 to 8 drums. We are issuing this AD to prevent uncontained failure of the HPC stage 3 to 8 drum, which could result in damage to the airplane.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This AD is effective June 27, 2012.</P>
          <P>The Director of the Federal Register approved the incorporation by reference (IBR) of certain publications listed in the AD as of June 27, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>For service information identified in this AD, contact International Aero Engines AG, 628 Hebron Avenue, Suite 400, Glastonbury, CT 06033; phone: 860-368-3700; fax: 860-368-4600; email:<PRTPAGE P="30372"/>
            <E T="03">iaeinfo@iaev2500.com;</E>Web site:<E T="03">https://www.iaeworld.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 01803. 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>Carlos Fernandes, Aerospace Engineer, Engine Certification Office, FAA, Engine &amp; Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7189; fax: 781-238-7199; email:<E T="03">carlos.fernandes@faa.gov</E>.</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 supersede AD 2010-20-07, Amendment 39-16441 (75 FR 59067, September 27, 2010). That AD applies to the specified products. The NPRM published in the<E T="04">Federal Register</E>on December 30, 2011 (76 FR 82202). That NPRM proposed to continue to require initial and repetitive USIs of certain HPC stage 3 to 8 drums, and replacement of drum attachment nuts. That NPRM also proposed to expand the affected population for initial and repetitive inspections of the HPC stage 3 to 8 drum, introduce an ECI procedure, and require additional cleaning and repetitive USI of some HPC stage 3 to 8 drums.</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 proposal and the FAA's response to each comment.</P>
        <HD SOURCE="HD1">Request To Include Entire V2500 Fleet of Engines, and Modify the Optional Terminating Action</HD>
        <P>Airbus and IAE requested that we change the applicability to include the entire V2500 fleet of engines, and to modify the optional terminating action to include partially silver plated nuts, part number (P/N) AS64367. The commenters stated that one new HPC stage 3 to 8 drum was discovered installed with partially silver plated nuts, P/N AS64367, that had some corrosion pitting.</P>
        <P>We partially agree. We agree with making a change to the optional terminating action, because the corrosion pitting found was on the optional terminating action configuration. We changed the AD, deleting the optional terminating action from the AD. We do not agree with including the entire V2500 fleet of engines, because we do not yet have enough information to determine what actions are needed if the nuts are only partially silver plated. We did not change the AD to affect the entire V2500 engine population.</P>
        <HD SOURCE="HD1">Request To Correct Paragraph Reference Errors</HD>
        <P>Seven commenters requested that in paragraph (i), Optional Terminating Action, we correct the paragraph references of (h)(1) and (h)(2) to (i)(1) and (i)(2).</P>
        <P>We agree. However, we have deleted the Optional Terminating Action paragraph from the AD, as described previously, and redesignated the subsequent paragraphs accordingly. We did not change the AD based on this comment.</P>
        <HD SOURCE="HD1">Request To Add a Section to Previous Credit</HD>
        <P>Air New Zealand requested that we add a section to paragraph (k), Previous Credit, for prior installation of a zero-time HPC stage 3 to 8 drum that has never operated with fully silver plated nuts.</P>
        <P>We do not agree. We already state in Compliance paragraph (e) that actions are required unless the actions have already been done. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Reference the AD Being Superseded</HD>
        <P>Onur Air requested that we reference the AD being superseded, as it is not mentioned in the proposed AD.</P>
        <P>We do not agree. We already reference the superseded AD in the Discussion and in paragraph (b). We did not change the AD.</P>
        <HD SOURCE="HD1">Exclude Certain HPC Stage 3 to 8 Drums</HD>
        <P>Onur Air stated that drums which were cleaned, fluorescent penetrant inspected (FPI), and installed with non-fully silver plated nuts into the engine in a previous shop visit are not addressed, and should be excluded in the mandatory terminating action of the proposed AD.</P>
        <P>We do not agree. These drums are subject to the repetitive inspections specified in the AD. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Rewrite Paragraphs (f) and (h)</HD>
        <P>Christchurch Engine Centre and United Airlines requested that we rewrite paragraph (f) and (h) because they believe those paragraphs imply that the grace period of FPI or ECI apply to the repetitive USI frequency.</P>
        <P>We do not agree. The grace period affects the USI start, based on the type of previous inspection and not the USI re-inspection interval. As specified in paragraph (h) of the proposed AD, USI inspections are to be done every 750 cycles-since-last USI. If an FPI is done, then the USI is required within 2,500 cycles from the FPI, and then done every 750 cycles-since-last USI. The process for the ECI is the same. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Use the Engine Manual (EM) Instead of the Service Bulletin (SB) for Cleaning</HD>
        <P>Christchurch Engine Centre and IAE requested that cleaning be done using the EM instead of the SB.</P>
        <P>We partially agree. The EM or the SB may be used as the cleaning procedure. We changed the AD to include the EM and SB as guidance for the cleaning procedure.</P>
        <HD SOURCE="HD1">Request To Correct a Service Bulletin No.</HD>
        <P>Christchurch Engine Centre requested that we correct an error in the SB No. in paragraph (k)(4) of the proposed AD from “V2500-ENG-72-615” to “V2500-ENG-72-0615”.</P>
        <P>We agree. We changed the AD to use the correct SB No. V2500-ENG-72-0615.</P>
        <HD SOURCE="HD1">Request To Incorporate by Reference (IBR) SBs</HD>
        <P>Christchurch Engine Centre requested that we IBR the SBs into the AD, and stated that the proposed AD is missing the Material Incorporated by Reference section.</P>

        <P>We agree. In the NPRM, we identified SBs needed for compliance. But in NPRMs, we do not set them in a separate IBR paragraph. In our final rules we do, as required by the Office of the Federal Register. In this final rule, we IBR'd SBs necessary for compliance in the AD.<PRTPAGE P="30373"/>
        </P>
        <HD SOURCE="HD1">Request To Reconsider the Cost of Compliance</HD>
        <P>Japan Airlines requested that we reconsider the Cost of Compliance. Based on their experience, they believe it requires at least 11 hours to perform the required work.</P>
        <P>We do not agree. The hours are based on average times provided by the type certificate holder. Actual times may vary depending on engine configuration and number of engines inspected. We did not change the Cost of Compliance.</P>
        <HD SOURCE="HD1">Request To Mandate Only Relevant Sections of the USI Procedures</HD>
        <P>Japan Airlines and United Airlines requested that the AD mandate only the relevant sections of the USI procedures in IAE Non-Modification SB (NMSB) No. V2500-ENG-72-0608, Revision 3, dated September 20, 2011, and NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011.</P>
        <P>We agree. We changed the AD to clarify the initial inspection requirements of the AD.</P>
        <HD SOURCE="HD1">Request for Previous Credit</HD>
        <P>Japan Airlines and United Airlines requested that we give previous credit for operators using earlier revisions of the USI SBs listed in the proposed AD, as some operators have already inspected using the earlier revisions.</P>
        <P>We agree. We changed AD to give credit for commpliance to the earlier SBs listed in the AD.</P>
        <HD SOURCE="HD1">Request To Allow Special Flight Permits</HD>
        <P>United Airlines and TAM Airlines requested that we allow Special Flight Permits so that the airplane can be flown to a location where the work required by the AD can be performed.</P>
        <P>We do not agree. The AD already allows flights to a repair facility. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Include All HPC Stage 3 to 8 Drum P/N Possibilities</HD>
        <P>United Airlines requested that we include all HPC stage 3 to 8 drum P/N possibilities in the SB. The commenter believes that drum P/N 6B1404, which is manufactured from the same titanium material as drum P/N 6A8316, should be included.</P>
        <P>We do not agree. The AD currently applies to all engines with HPC stage 3 to 8 drums that operated with fully silver plated nuts. Drum P/N 6B1404 was introduced into production with engine S/N higher than V13191 and “Select One” engines S/N higher than V15575, and are outside of the applicability of this AD. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Clarify Piece-Part Exposure Definition</HD>
        <P>United Airlines and MTU Maintenance Hanover GmbH requested that we clarify the definition of piece-part exposure.</P>
        <P>We agree. We changed the definition to: “For the purpose of this AD, piece-part exposure is removal of the HPC stage 3 to 8 drum from the engine, removal of all blades from the drum, and separation of the HPC stage 3 to 8 drum from the stage 9 to 12 drum.”</P>
        <HD SOURCE="HD1">Request To Remove Redundant SB Listing</HD>
        <P>IAE requested that we remove the redundant listing of NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, under Relevant Service Information in the preamble of the proposed AD.</P>
        <P>We agree. However, we do not repeat the Relevant Service Information in the final rule. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Clarify Compliance Timeframe and Establish a Calendar End-Date</HD>
        <P>IAE requested that we clarify why a compliance timeframe is required to remove all fully silver plated nuts and also establish a calendar end-date of 2021.</P>
        <P>We do not agree. The unsafe condition results from a corrosive operating environment. The amount of corrosion varies with time and location, and we have no data to support a calendar end-date of 2021. We did not change the AD.</P>
        <HD SOURCE="HD1">Request To Delay USI Start Time and Repeat Inspection Time</HD>
        <P>TAM Airlines requested that we delay the USI start time to 13,500 cycles-since-new, and increase the repeat inspection time to 1,500 cycles-since-the-last USI.</P>
        <P>We do not agree. The initial and repetitive inspection intervals were established based on field experience, and extensive analysis and testing. We have no data that supports an increase in the compliance times. We did not change the AD.</P>
        <HD SOURCE="HD1">Request for Special Increase Limit</HD>
        <P>PT GMF Aeroasia requested that we allow them a special increase limit for one of their engines that is above 13,700 cycles to allow time to receive the special tooling required for the inspections.</P>
        <P>We do not agree. The analysis and testing does not support continued safe flight above 13,700 cycles. We did not change the AD.</P>
        <HD SOURCE="HD1">Request for Changes To Make It Easier for Operators to Comply With the AD</HD>
        <P>United Airlines requested that we add specific accept/reject criteria of missing liner material in the USI inspection area. The commenter also requested that we remove the requirement for borescoping the HPC stage 7 to 8 drum ceramic liner for staining or axial cracking, or, that we specify accept/reject criteria for staining and cracking of the ceramic liner. They also requested that we delay blending limit measurements of the HPC case port and add details for material removal to allow access for the probe manipulators. These changes would make it easier for operators to comply with the AD and avoid unnecessary delays.</P>
        <P>We partially agree. We agree with specifying accept/reject criteria for missing liner material in the USI inspection area. The borescope requirement of the HPC stage 7 to 8 drum ceramic liner for staining or axial cracking improves the probability of detection, however we agree to remove it due to lack of clear accept/reject criteria. We do not agree with including in the AD when to perform blending limits measurements and adding details for material removal to allow access for the probe manipulators because they are part of preparation. We added to the AD that any liner loss which results in lifting of the USI probe from the liner will need to be repaired to perform an acceptable inspection. Liner loss found under the intended path of the USI probe must be smaller than the head of the probe.</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 with the changes described previously. We also determined that these changes will not increase the economic burden on any operator or increase the scope of the AD.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>

        <P>We estimate that this AD will affect about 906 IAE V2500-A1, V2522-A5, V2524-A5, V2525-D5, V2527-A5, V2527E-A5, V2527M-A5, V2528-D5, V2530-A5, and V2533-A5 turbofan engines installed on airplanes of U.S. registry. We estimate that it will take about 3 work-hours per engine to perform the USI, and about 2 work-hours per engine to perform the FPI of the HPC stage 3 to 8 drum. The average labor rate is $85 per work-hour. We also estimate that removal of silver residue from the engine will cost about $2,600<PRTPAGE P="30374"/>per engine, and required parts about $795 per engine. We also estimate the cost of replacing a drum if found cracked will be $189,000. We have no way of determining the number of aircraft that might need this replacement. Based on these figures, we estimate the total cost of the AD to U.S. operators to be $4,385,040.</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 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) 2010-20-07, Amendment 39-16441 (75 FR 59067, September 27, 2010), and adding the following new AD:</AMDPAR>
          
          <EXTRACT>
            <FP SOURCE="FP-2">
              <E T="04">2012-09-09International Aero Engines AG:</E>Amendment 39-17044; Docket No. FAA-2009-1100, Directorate Identifier 2009-NE-37-AD.</FP>
            <HD SOURCE="HD1">(a) Effective Date</HD>
            <P>This airworthiness directive (AD) is effective June 27, 2012.</P>
            <HD SOURCE="HD1">(b) Affected ADs</HD>
            <P>This AD supersedes AD 2010-20-07, Amendment 39-16441 (75 FR 59067, September 27, 2010).</P>
            <HD SOURCE="HD1">(c) Applicability</HD>
            <P>This AD applies to:</P>
            <P>(1) All International Aero Engines AG (IAE) V2500-A1 turbofan engines; and</P>
            <P>(2) All IAE V2525-D5 and V2528-D5 turbofan engines; and</P>
            <P>(3) IAE V2522-A5, V2524-A5, V2527-A5, V2527E-A5, V2527M-A5, V2530-A5, and V2533-A5 turbofan engines with serial numbers (S/Ns) up to and including V13181, and with S/Ns from V15000 up to and including V15245.</P>
            <HD SOURCE="HD1">(d) Unsafe Condition</HD>
            <P>This AD results from reports of 50 additional high-pressure compressor (HPC) stage 3 to 8 drums found cracked since AD 2010-20-07 was issued. We are issuing this AD to prevent failure of the HPC stage 3 to 8 drum, uncontained engine failure, and damage to the airplane.</P>
            <HD SOURCE="HD1">(e) 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">(f) Initial Ultrasonic Inspections (USIs) of the HPC Stage 3 to 8 Drum—“Group A”</HD>
            <P>For IAE V2500-A1, V2522-A5, V2524-A5, V2527-A5, V2527E-A5, V2527M-A5, V2530-A5, and V2533-A5 turbofan engines with S/Ns in “Group A” in paragraph 1.A. in IAE Non-Modification Service Bulletin (NMSB) No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, perform an initial USI of the HPC stage 3 to 8 drum before accumulating 5,000 cycles-since-new (CSN) or within 500 cycles from the effective date of this AD, whichever occurs later, as follows:</P>
            <P>(1) For IAE V2500-A1 turbofan engines:</P>
            <P>(i) For on-wing inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections E, G(1) through G(5), I, and J.</P>
            <P>(ii) For on-wing inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections L, N(1) through N(5), P(1), and Q.</P>
            <P>(iii) For shop inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections AU, AW(1) through AW(5), AY, and AZ.</P>
            <P>(iv) For shop inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections BB, BD(1) through BD(5), BF(1), and BG.</P>
            <P>(v) Any liner loss which results in lifting of the USI probe from the liner will need to be repaired in order to perform an acceptable inspection. Liner loss found under the intended path of the USI probe must be smaller than the head of the probe.</P>
            <P>(2) For V2522-A5, V2524-A5, V2527-A5, V2527E-A5, V2527M-A5, V2530-A5, and V2533-A5 turbofan engines:</P>
            <P>(i) For on-wing inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections Z, AB(1) through AB(5), AD, and AE.</P>
            <P>(ii) For on-wing inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections AG, AI(1) through AI(5), AK(1), and AL.</P>
            <P>(iii) For shop inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections BO, BQ(1) through BQ(5), BS, and BT.</P>
            <P>(iv) For shop inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections BV, BX(1) through BX(5), BZ(1), and CA.</P>
            <P>(v) Any liner loss which results in lifting of the USI probe from the liner will need to be repaired in order to perform an acceptable inspection. Liner loss found under the intended path of the USI probe must be smaller than the head of the probe.</P>
            <HD SOURCE="HD1">(g) Initial USIs of the HPC Stage 3 to 8 Drum—“Group B”</HD>
            <P>For IAE V2500-A1, V2522-A5, V2524-A5, V2527-A5, V2527E-A5, V2527M-A5, V2530-A5, and V2533-A5 Turbofan Engines with S/Ns in “Group B” in Paragraph 1.A. in IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, perform an initial USI of the HPC stage 3 to 8 drum before accumulating 12,500 CSN or within 500 cycles from the effective date of this AD, whichever occurs later, not to exceed 13,700 CSN, as follows:</P>
            <P>(1) For IAE V2500-A1 turbofan engines:<PRTPAGE P="30375"/>
            </P>
            <P>(i) For on-wing inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections E, G(1) through G(5), I, and J.</P>
            <P>(ii) For on-wing inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections L, N(1) through N(5), P(1), and Q.</P>
            <P>(iii) For shop inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections AU, AW(1) through AW(5), AY, and AZ.</P>
            <P>(iv) For shop inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections BB, BD(1) through BD(5), BF(1), and BG.</P>
            <P>(v) Any liner loss which results in lifting of the USI probe from the liner will need to be repaired in order to perform an acceptable inspection. Liner loss found under the intended path of the USI probe must be smaller than the head of the probe.</P>
            <P>(2) For V2522-A5, V2524-A5, V2527-A5, V2527E-A5, V2527M-A5, V2530-A5, and V2533-A5 turbofan engines:</P>
            <P>(i) For on-wing inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections Z, AB(1) through AB(5), AD, and AE.</P>
            <P>(ii) For on-wing inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections AG, AI(1) through AI(5), AK(1), and AL.</P>
            <P>(iii) For shop inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections BO, BQ(1) through BQ(5), BS, and BT.</P>
            <P>(iv) For shop inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections BV, BX(1) through BX(5), BZ(1), and CA.</P>
            <P>(v) Any liner loss which results in lifting of the USI probe from the liner will need to be repaired in order to perform an acceptable inspection. Liner loss found under the intended path of the USI probe must be smaller than the head of the probe.</P>
            <HD SOURCE="HD1">(h) Initial USIs for All IAE V2525-D5 and V2528-D5 Turbofan Engines</HD>
            <P>(1) For all IAE V2525-D5 and V2528-D5 turbofan engines, perform an initial USI of the HPC stage 3 to 8 drum before accumulating 12,500 CSN or within 500 cycles from the effective date of this AD, whichever occurs later, not to exceed 13,700 CSN.</P>
            <P>(i) For on-wing inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0608, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections E, G(1) through G(5), I, and J.</P>
            <P>(ii) For on-wing inspections of the inner diameter, perform an initial USI using IAENMSB No. V2500-ENG-72-0608, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections L, N(1) through N(5), P(1), and Q.</P>
            <P>(iii) For shop inspections of the outer diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0608, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections Z, AB(1) through AB(5), AD, and AE.</P>
            <P>(iv) For shop inspections of the inner diameter, perform an initial USI using IAE NMSB No. V2500-ENG-72-0608, Revision 3, dated September 20, 2011, Accomplishment Instructions, paragraph 3, sections AG, AI(1) through AI(5), AK(1), and AL.</P>
            <P>(v) Any liner loss which results in lifting of the USI probe from the liner will need to be repaired in order to perform an acceptable inspection. Liner loss found under the intended path of the USI probe must be smaller than the head of the probe.</P>
            <HD SOURCE="HD1">(i) Removal of All Fully Silver Plated Nuts</HD>
            <P>(1) At the next piece part exposure of the HPC stage 3 to 8 drum after the effective date of this AD, but no later than 8 years from the effective date of this AD, do the following before returning any HPC stage 3 to 8 drum to service:</P>
            <P>(i) Remove from service all fully silver plated nuts, part number AS44862 or equivalent that attach the HPC stage 3 to 8 drum to the HPC stage 9 to 12 drum.</P>
            <P>(ii) Remove the silver residue from the HPC stage 3 to 8 drum. You can find guidance to remove the silver residue of the HPC stage 3 to 8 drum in IAE NMSB No. V2500-ENG-72-0601, Revision 2, dated April 12, 2010, or in IAE engine manual task 72-41-11-110-001.</P>
            <P>(2) Perform an inspection using one of the following methods:</P>
            <P>(i) Fluorescent penetrant inspect (FPI) the HPC stage 3 to 8 drum for cracks, and remove from service any drum found cracked. You can find guidance on performing an FPI of the HPC stage 3 to 8 drum in IAE engine manual task 72-41-11-200-001.</P>
            <P>(ii) Eddy current inspect (ECI) the HPC stage 3 to 8 drum for cracks, using IAE NMSB No. V2500-ENG-72-0625, dated September 20, 2011, and remove from service any drum found cracked.</P>
            <P>(3) If cracks or crack indications are identified, remove the drum from service before further flight.</P>
            <P>(4) Accomplishing paragraphs (i)(1) and (i)(2) of this AD before the inspection criteria requirements of paragraphs (f), (g) or (h) of this AD, may be substituted for the initial USI requirement of paragraphs (f), (g) or (h) of this AD.</P>
            <HD SOURCE="HD1">(j) Repetitive USIs of the HPC Stage 3 to 8 Drum</HD>
            <P>Perform repetitive USIs of the HPC stage 3 to 8 drum for cracks in accordance with paragraphs (f)(1), (f)(2), (g)(1), (g)(2), or (h)(1) of this AD as applicable, as follows:</P>
            <P>(1) Within every 750 cycles-since-last USI; or</P>
            <P>(2) Within 2,500 cycles-since-last FPI; or</P>
            <P>(3) Within 13,000 cycles-since-last ECI, whichever occurs latest.</P>
            <HD SOURCE="HD1">(k) Definition</HD>
            <P>For the purpose of this AD, piece-part exposure is removal of the HPC stage 3 to 8 drum from the engine, removal of all blades from the drum, and separation of the HPC stage 3 to 8 drum from the stage 9 to 12 drum.</P>
            <HD SOURCE="HD1">(l) Credit for Previous Actions</HD>
            <P>(1) If you performed a USI before the effective date of this AD using the following IAE NMSB's, you met the requirements of this AD:</P>
            <P>(i) IAE NMSB No. V2500-ENG-72-0594, Revision 3, dated August 7, 2009, or Revision 4, dated October 13, 2009; or Revision 5, dated November 23, 2009; or Revision 6, dated April 12, 2010.</P>
            <P>(ii) IAE NMSB No. V2500-ENG-72-0603, Initial Issue, dated November 24 2009; or Revision 1, dated December 18, 2009; or Revision 2, dated March 17, 2010.</P>
            <P>(iii) IAE NMSB No. V2500-ENG-72-0608, Initial Issue, dated May 5, 2010; Revision 1, dated August 6, 2010; or Revision 2, dated January 4, 2011.</P>
            <P>(iv) IAE NMSB No. V2500-ENG-72-0615, Initial Issue, dated July 19, 2010; Revision 1, dated August 2, 2010; or Revision 2, dated November 24, 2010.</P>
            <HD SOURCE="HD1">(m) Alternative Methods of Compliance (AMOCs)</HD>
            <P>The Manager, Engine Certification Office, may approve AMOCs for this AD. Use the procedures found in 14 CFR 39.19 to make your request.</P>
            <HD SOURCE="HD1">(n) Related Information</HD>

            <P>(1) For more information about this AD, contact Carlos Fernandes, Aerospace Engineer, Engine Certification Office, FAA, Engine &amp; Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781-238-7189; fax: 781-238-7199; email:<E T="03">carlos.fernandes@faa.gov</E>.</P>
            <P>(2) Guidance on removing the silver residue of the HPC stage 3 to 8 drum may be found in International Aero Engines Service Bulletin No. V2500-ENG-72-0601, Revision 2, dated April 12, 2010, and in IAE engine manual task 72-41-11-110-001.</P>
            <HD SOURCE="HD1">(o) Material Incorporated by Reference</HD>
            <P>(1) The Director of the Federal Register approved the incorporation by reference (IBR) of the following service information under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
            <P>(2) You must use the following service information to do the actions required by this AD, unless the AD specifies otherwise.</P>
            <P>(i) International Aero Engines Non-Modification Service Bulletin No. V2500-ENG-72-0608, Revision 3, dated September 20, 2011.</P>
            <P>(ii) International Aero Engines Non-Modification Service Bulletin No. V2500-ENG-72-0615, Revision 3, dated September 20, 2011.</P>

            <P>(iii) International Aero Engines Non-Modification Service Bulletin No. V2500-ENG-72-0625, dated September 20, 2011.<PRTPAGE P="30376"/>
            </P>

            <P>(3) For service information identified in this AD, contact International Aero Engines AG, 628 Hebron Avenue, Suite 400, Glastonbury, CT 06033; phone: 860-368-3700; fax: 860-368-4600; email:<E T="03">iaeinfo@iaev2500.com;</E>Web site:<E T="03">https://www.iaeworld.com.</E>
            </P>
            <P>(4) You may review copies of the 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>

            <P>(5) You may also review copies of the service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to:<E T="03">http://www.archives.gov/federal-register/cfr/ibr_locations.html.</E>
            </P>
          </EXTRACT>
        </REGTEXT>
        <SIG>
          <DATED>Issued in Burlington, Massachusetts, on May 2, 2012.</DATED>
          <NAME>Peter A. White,</NAME>
          <TITLE>Manager, Engine &amp; Propeller Directorate, Aircraft Certification Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12329 Filed 5-22-12; 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 73</CFR>
        <DEPDOC>[Docket No. FAA-2012-0510; Airspace Docket No. 12-ASO-17]</DEPDOC>
        <RIN>RIN 2120-AA66</RIN>
        <SUBJECT>Amendment of Restricted Area R-2101; Anniston Army Depot, AL</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>This action amends the description of restricted area R-2101, Anniston Army Depot, AL, by removing the abbreviation “CST” from the time of designation, and by including a controlling agency for the restricted area. This amendment does not change the dimensions of, or activities conducted within, R-2101.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective date 0901 UTC, July 26, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Paul Gallant, Airspace, Regulations and ATC Procedures Group, Office of Airspace Services, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-8783.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Background</HD>
        <P>The time of designation for R-2101 currently reads “0700 to 1800 CST, Monday-Friday.” Since the restricted area lies completely within the central time zone, it is unnecessary to specify “CST” in the description. The use of “CST” has led to confusion about the time of designation during that part of the year when daylight saving time is in effect. The intended time of designation for the restricted areas is 0700-1800 local time, Monday-Friday, during both standard time and daylight saving time periods.</P>
        <P>Currently, R-2101 does not have a designated controlling agency. A controlling agency is the air traffic control facility that exercises control of the airspace when it is not in use by the using agency for its designated purpose. Since the using agency releases R-2101 during periods when it is not scheduled for use, the FAA is designating a controlling agency to enable joint use of the airspace during such periods.</P>
        <HD SOURCE="HD1">The Rule</HD>
        <P>This action amends Title 14, Code of Federal Regulations (14 CFR) part 73 by removing “CST” from the time of designation for restricted area R-2101, Anniston Army Depot, AL, and inserting the words “local time” in its place. The time of designation is amended to read “0700 to 1800 local time, Monday-Friday.” In addition, the FAA, Atlanta Air Route Traffic Control Center (ARTCC) is designated as the controlling agency for the restricted area. A controlling agency enables joint use of the airspace during periods when it is not required by the military using agency. These changes do not alter the current dimensions or usage of the restricted area.</P>
        <P>Because this action is a minor editorial change that does not alter the physical location or utilization of the restricted areas, I find that notice and public procedures under 5 U.S.C. 553(b) are unnecessary.</P>
        <P>Section 73.21 of Title 14 CFR part 73 was republished in FAA Order 7400.8T, effective February 16, 2011.</P>
        <P>The FAA has determined that this regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. Therefore, this regulation: (1) Is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under Department of Transportation (DOT) Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. 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>This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of the airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it amends airspace descriptions to keep them current.</P>
        <HD SOURCE="HD1">Environmental Review</HD>
        <P>The FAA has determined that this action qualifies for categorical exclusion under the National Environmental Policy Act in accordance with FAA Order 1050.1E, Environmental Impacts: Policies and Procedures, paragraph 311d. This action updates the technical description of special use airspace that does not alter the dimensions, altitudes, or use of the airspace. It is not expected to cause any potentially significant environmental impacts, and no extraordinary circumstances exist that warrant preparation of an environmental assessment.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 73</HD>
          <P>Airspace, Prohibited areas, Restricted areas.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Adoption of Amendment</HD>
        <P>In consideration of the foregoing, the Federal Aviation Administration amends 14 CFR part 73 as follows:</P>
        <REGTEXT PART="73" TITLE="14">
          <PART>
            <HD SOURCE="HED">PART 73—SPECIAL USE AIRSPACE</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 73 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="73" TITLE="14">
          <AMDPAR>2. § 73.21 is amended as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 73.21</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <STARS/>
            <HD SOURCE="HD1">R-2101Anniston Army Depot, AL [Amended]</HD>
            <P>By replacing the current time of designation and adding a controlling agency as follows:</P>
            

            <FP SOURCE="FP-1">Time of designation. 0700 to 1800 local time, Monday-Friday.<PRTPAGE P="30377"/>
            </FP>
            <FP SOURCE="FP-1">Controlling agency. FAA, Atlanta ARTCC.</FP>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Issued in Washington, DC, on May 17, 2012.</DATED>
          <NAME>Ellen Crum,</NAME>
          <TITLE>Acting Manager, Airspace, Regulations and ATC Procedures Group.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12576 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
        <SUBAGY>Internal Revenue Service</SUBAGY>
        <CFR>26 CFR Parts 1 and 602</CFR>
        <DEPDOC>[TD 9590]</DEPDOC>
        <RIN>RIN 1545-BJ82</RIN>
        <SUBJECT>Health Insurance Premium Tax Credit</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 health insurance premium tax credit enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended by the Medicare and Medicaid Extenders Act of 2010, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, the Department of Defense and Full-Year Continuing Appropriations Act, 2011, and the 3% Withholding Repeal and Job Creation Act. These final regulations provide guidance to individuals who enroll in qualified health plans through Affordable Insurance Exchanges (Exchanges) and claim the premium tax credit, and to Exchanges that make qualified health plans available to individuals and employers.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>These regulations are effective on May 23, 2012.</P>
          <P>
            <E T="03">Comment date: Comments will be accepted until</E>August 21, 2012.</P>
          <P>
            <E T="03">Applicability Date:</E>For date of applicability, see § 1.36B-1(o).</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (REG-131491-10), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically to<E T="03">www.regulations.gov</E>(IRS REG-131491-10). Alternatively, comments may be hand delivered between the hours of 8 a.m. and 4 p.m. Monday to Friday to CC:PA:LPD:PR (REG-131491-10), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC. All comments will be available for public inspection and copying.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Shareen S. Pflanz, (202) 622-4920, or Andrew S. Braden, (202) 622-4960 (not toll-free numbers).</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Paperwork Reduction Act</HD>
        <P>The collection of information contained in these regulations has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork and Reduction Act (44 U.S.C. 3507(d)) under control number 1545-2232.</P>
        <P>The collection of information in these final regulations is in § 1.36B-5. The information will help the IRS properly reconcile the amount of the premium tax credit with advance credit payments made under section 1412 of the Patient Protection and Affordable Care Act (42 U.S.C. 18082). The collection of information is required to comply with the provisions of section 36B(f)(3) of the Internal Revenue Code (Code). An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number assigned by the Office of Management and Budget.</P>
        <P>The estimated total annual reporting burden is 250,000 hours. The estimated annual burden per respondent is 5,000 hours. The estimated number of respondents is 50.</P>
        <P>Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be sent to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, Washington, DC 20224, and to the Office of Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503.</P>
        <P>Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and return information are confidential, as required by 26 U.S.C. 6103.</P>
        <HD SOURCE="HD1">Background</HD>

        <P>This document contains final regulations that amend the Income Tax Regulations (26 CFR part 1) under section 36B relating to the premium tax credit. Section 36B was enacted by the Patient Protection and Affordable Care Act, Public Law 111-148 (124 Stat. 119 (2010)), and the Health Care and Education Reconciliation Act of 2010, Public Law 111-152 (124 Stat. 1029 (2010)) (collectively, the Affordable Care Act). On August 17, 2011, a notice of proposed rulemaking (REG-131491-10) was published in the<E T="04">Federal Register</E>(76 FR 50931). Written comments responding to the notice of proposed rulemaking were received. The comments are available for public inspection at<E T="03">www.regulations.gov</E>or on request. A public hearing was held on November 17, 2011. After consideration of all the comments, the proposed regulations are adopted as amended by this Treasury decision. The comments and revisions are discussed in the preamble.</P>
        <HD SOURCE="HD1">Explanation of Provisions and Summary of Comments</HD>
        <HD SOURCE="HD2">1. Premium Tax Credit Definitions</HD>
        <HD SOURCE="HD3">a. Family Size</HD>
        <P>The proposed regulations define a taxpayer's family as the individuals for whom a taxpayer claims a deduction for a personal exemption under section 151 for the taxable year, which may include the taxpayer, the taxpayer's spouse, and dependents. The proposed regulations also clarify that the family includes individuals who are not applicable individuals under section 5000A(d) and thus are not subject to the penalty for failing to maintain minimum essential coverage.</P>
        <P>Commentators recommended clarifying that the family also includes individuals who are exempt under section 5000A(e) from the requirement to maintain minimum essential coverage. Accordingly, the final regulations clarify that a family may include all individuals not subject to the section 5000A penalty.</P>
        <P>Some commentators disagreed with the rule in the proposed regulations that a taxpayer's family includes a child only if the taxpayer is allowed a dependency exemption deduction for the child. Commentators suggested that taxpayers should be able to compute a premium tax credit based on premiums for a child for whom the person is not allowed a dependency exemption deduction. Section 36B(d)(1) defines the family as the individuals for whom the taxpayer is allowed a personal exemption deduction under section 151. Accordingly, the final regulations do not adopt these comments. We note however, that the non-dependent child may be able to claim a premium tax credit if otherwise eligible. See § 1.36B-3(h).</P>
        <HD SOURCE="HD3">b. Requirement To File a Return for Purposes of Household Income</HD>

        <P>Under section 36B, household income includes the modified adjusted gross income of a dependent who is required to file a return of tax imposed by section<PRTPAGE P="30378"/>1. The final regulations conform to this statutory language, thus clarifying that household income does not include the modified adjusted gross income of a family member who is required to file a tax return solely to report tax imposed under Code sections other than section 1 (for example, the early distribution penalty imposed under section 72(q) or self-employment tax under section 1401).</P>
        <HD SOURCE="HD3">c. Modified Adjusted Gross Income</HD>
        <P>Under the proposed regulations, modified adjusted gross income is adjusted gross income increased by amounts excluded from gross income under section 911 and tax-exempt interest a taxpayer receives or accrues during the taxable year. The 3% Withholding Repeal and Job Creation Act, Public Law 112-56 (125 Stat. 711 (2011)), which was enacted after the proposed regulations were published, amended the definition of modified adjusted gross income to include Social Security benefits (as defined in section 86(d)) not included in gross income under section 86. The final regulations reflect this amendment.</P>
        <HD SOURCE="HD3">d. Lawfully Present</HD>

        <P>Under section 36B(c)(1)(B) and the proposed regulations, a taxpayer who is an individual lawfully present in the United States may be treated as an applicable taxpayer if the taxpayer's household income is under 100 percent of the Federal poverty line (FPL) and the taxpayer is not eligible for Medicaid. Under section 1321(f)(3) of the Affordable Care Act, an individual who is not lawfully present in the United States may not enroll in a qualified health plan through an Exchange. The proposed regulations define<E T="03">lawfully present</E>by referencing 45 CFR 152.2, which also is referenced in defining<E T="03">lawfully present</E>in proposed regulations on Exchanges under 45 CFR 155.20 issued by the Department of Health and Human Services (HHS).</P>
        <P>Commentators requested that the final regulations expand the definition of lawfully present to include the categories of immigrants described in the Children's Health Insurance Program Reauthorization Act. One commentator stated that the final regulations should allow States to use existing administrative mechanisms to determine eligibility if those mechanisms are not more restrictive than Federal law.</P>

        <P>To maintain consistency with the HHS Exchange final regulations, the final regulations define<E T="03">lawfully present</E>by referencing 45 CFR 155.20, the definition in the HHS Exchange final regulations.</P>
        <HD SOURCE="HD3">e. Federal Poverty Line</HD>
        <P>The proposed regulations define<E T="03">federal poverty line</E>by reference to the Federal poverty guidelines published annually by HHS. The Federal poverty guidelines for Alaska and Hawaii differ from the guidelines for the 48 contiguous states and the District of Columbia. The final regulations clarify that, if married taxpayers reside in separate States with different Federal poverty guidelines, or if a taxpayer resides in States with different Federal poverty guidelines during the year, the Federal poverty line that applies for purposes of section 36B and the associated regulations is the higher Federal poverty line (resulting in a lower percentage of the Federal poverty line for the taxpayers' household income and family size).</P>
        <HD SOURCE="HD3">f. Federally-Facilitated Exchange</HD>
        <P>Under the proposed regulations, the term<E T="03">Exchange</E>has the same meaning as in 45 CFR 155.20, which provides that the term<E T="03">Exchange</E>refers to a State Exchange, regional Exchange, subsidiary Exchange, and Federally-facilitated Exchange.</P>
        <P>Commentators disagreed on whether the language in section 36B(b)(2)(A) limits the availability of the premium tax credit only to taxpayers who enroll in qualified health plans on State Exchanges.</P>
        <P>The statutory language of section 36B and other provisions of the Affordable Care Act support the interpretation that credits are available to taxpayers who obtain coverage through a State Exchange, regional Exchange, subsidiary Exchange, and the Federally-facilitated Exchange. Moreover, the relevant legislative history does not demonstrate that Congress intended to limit the premium tax credit to State Exchanges. Accordingly, the final regulations maintain the rule in the proposed regulations because it is consistent with the language, purpose, and structure of section 36B and the Affordable Care Act as a whole.</P>
        <HD SOURCE="HD3">g. Rating Area</HD>
        <P>The proposed regulations define<E T="03">rating area</E>as an Exchange service area, as described in 45 CFR 155.20. Commentators suggested that an Exchange service area is different than a rating area as that term is used in section 36B(b)(3) for determining the applicable benchmark plan. The final regulations reserve the definition of rating area.</P>
        <HD SOURCE="HD2">2. Eligibility for the Premium Tax Credit</HD>
        <HD SOURCE="HD3">a. Applicable Taxpayer</HD>
        <P>Under section 36B(c)(1) and the proposed regulations, in general a taxpayer is an applicable taxpayer for a taxable year only if the taxpayer's household income for the taxable year is at least 100 percent but not more than 400 percent of the FPL for the taxpayer's family size. Commentators requested that the final regulations treat a taxpayer whose household income exceeds 400 percent of the FPL for the taxpayer's family size as an applicable taxpayer if, at enrollment, the Exchange estimates that the taxpayer's household income will be between 100 and 400 percent of the FPL for the taxpayer's family size and approves advance credit payments. Other commentators advocated allowing taxpayers with household income above 400 percent of the FPL for their family size to be treated as eligible for a premium tax credit for the months before a change in circumstances affecting household income occurs or for the months for which the taxpayer receives advance payments.</P>
        <P>The final regulations do not adopt these comments because they are contrary to the language of section 36B limiting the premium tax credit to taxpayers with household income for the taxable year at or below 400 percent of the FPL for the taxpayer's family size.</P>
        <P>Commentators requested that the final regulations clarify that a taxpayer who has household income between 100 percent and 133 percent of the FPL but is not eligible for Medicaid qualifies for the premium tax credit. Under section 36B(c)(1)(A) and the proposed regulations, an applicable taxpayer who may claim the premium tax credit is a taxpayer with household income between 100 and 400 percent of the FPL for the family size. Thus, it is clear that a taxpayer with household income between 100 percent and 133 percent of the FPL for the taxpayer's family size may be an applicable taxpayer.</P>

        <P>Commentators requested that the final regulations allow an individual who may be claimed as a dependent by another taxpayer to qualify as an applicable taxpayer for a taxable year if, for the taxable year, another taxpayer does not claim the individual as a dependent. The final regulations do not adopt this comment because it is inconsistent with section 36B(c)(1)(D), which provides that a premium tax credit is not allowed to any individual for whom a deduction under section 151 is “allowable to another taxpayer” for the taxable year.<PRTPAGE P="30379"/>
        </P>
        <HD SOURCE="HD3">b. Incarceration</HD>
        <P>Under section 1312(f) of the Affordable Care Act, individuals who are incarcerated (other than pending disposition of charges) may not enroll in a qualified health plan through an Exchange. The proposed regulations provide, however, that an individual who is incarcerated may be allowed a premium tax credit if a family member is enrolled in a qualified health plan.</P>
        <P>A commentator suggested that the rules relating to incarcerated individuals should apply to individuals incarcerated pending disposition of charges, as is the case under the Medicaid program. The comment addresses an issue beyond the scope of the premium tax credit regulations. Standards for enrollment in a qualified health plan fall under rules within the jurisdiction of HHS.</P>
        <HD SOURCE="HD3">c. Minimum Essential Coverage</HD>
        <HD SOURCE="HD3">i. Government-Sponsored Coverage</HD>
        <HD SOURCE="HD3">A. Time of Eligibility</HD>
        <P>The proposed regulations provide that an individual generally is treated as eligible for a government-sponsored program on the first day of the first full month in which the individual may receive benefits under the program. The proposed regulations further provide that an individual who fails to complete the requirements necessary to receive benefits available under a government-sponsored program (other than a veteran's health care program) reasonably promptly is treated as eligible for the coverage on the first day of the second calendar month following the event that establishes eligibility.</P>
        <P>Commentators asked that the final regulations allow individuals a certain amount of time to complete the requirements (such as submitting an application) necessary to obtain government-sponsored minimum essential coverage. Some commentators suggested that the final regulations could provide this period by defining “reasonably promptly” as 90 days after the event that establishes eligibility. Commentators requested that the final regulations allow exemptions from the 90-day period, however, when additional delay in receiving benefits occurs despite the good faith efforts of the taxpayer, for example as a result of inaction of a government agency or official.</P>
        <P>To provide greater clarity, the final regulations delete the language “reasonably promptly” and extend this time period. Under the final regulations, an individual who fails to complete the requirements necessary to receive benefits available under a government-sponsored program by the last day of the third full calendar month following the event that establishes eligibility is treated as eligible for the coverage on the first day of the fourth calendar month. Because an individual who timely completes the necessary requirements is treated as eligible for government-sponsored minimum essential coverage no earlier than the first month that the individual may receive benefits, this 3-month time period does not include the time needed for a government agency to process an application.</P>
        <P>The proposed regulations request comments on whether rules should provide flexibility if operational challenges prevent timely transition from coverage under a qualified health plan to coverage under a government-sponsored program. Commentators stated that the final regulations should provide that an individual transitioning from a qualified health plan to coverage under a government-sponsored program should not be treated as eligible for government-sponsored minimum essential coverage until the individual is able to effectively terminate his or her qualified health plan coverage. They expressed concern that an individual may be unable to discontinue advance credit payments by the beginning of a month for which the individual is eligible for government-sponsored coverage and could be responsible for an excess advance payment for that month.</P>
        <P>The concerns expressed in these comments are addressed in the HHS final regulations on Exchanges. Under 45 CFR 155.430, an Exchange must permit an enrollee to terminate coverage in a qualified health plan no later than 14 days after the enrollee requests termination. For an enrollee who is newly eligible for Medicaid or the Children's Health Insurance Program (CHIP), 45 CFR 155.430(d)(2)(iv) provides that qualified health plan coverage terminates on the last day before Medicaid or CHIP coverage begins. These termination rules enable individuals transitioning to coverage under a government-sponsored program to effectively terminate qualified health plan coverage (and liability for advance credit payments) before they are eligible for government-sponsored minimum essential coverage.</P>
        <HD SOURCE="HD3">B. Definition of “Eligible”</HD>
        <P>The proposed regulations provide that an individual is eligible for government-sponsored minimum essential coverage when an individual meets the requirements for coverage under the program. For administrative convenience, however, because the standards for eligibility in veterans' programs do not allow Exchanges to identify everyone who may be eligible for veterans' coverage at the time he or she is seeking an eligibility determination for advance payments of the premium tax credit, the proposed regulations provide that an individual is eligible for minimum essential coverage under the veteran's health care program authorized under chapter 17 or 18 of Title 38, U.S.C. only if the individual is enrolled in a veteran's health care program identified as minimum essential coverage in regulations issued under section 5000A.</P>
        <P>The final regulations conform the rules to amendments to section 5000A that delete the word “veteran's” in describing health care programs under chapter 17 or 18 of Title 38. Thus, the special rule for veterans' coverage may apply to individuals who are not veterans but are eligible for the Civilian Health and Medical Program of the Department of Veterans Affairs (VA) or the VA's spina bifida program.</P>
        <P>Commentators requested that the final regulations define eligibility for government-sponsored programs as actual enrollment for individuals suffering from end stage renal disease who become eligible for Medicare as a result of their diagnosis. Other commentators requested this treatment for any individual suffering from an acute illness who becomes eligible for a government-sponsored program. The commentators asserted that these seriously-ill individuals should be able to choose to remain enrolled in a qualified health plan with the benefit of a premium tax credit to maintain continuity of medical care, which may be disrupted if the individual loses eligibility for the premium tax credit and is required to move to a government-sponsored program in which the individual's medical provider does not participate.</P>

        <P>Section 36B(c)(2)(B) establishes a clear structure under which eligibility for government-sponsored minimum essential coverage in a given month precludes including an individual in a taxpayer's coverage family for purposes of computing the premium assistance amount for that month. In keeping with the statutory scheme, the final regulations do not adopt these comments. However, the IRS and the Treasury Department expect to publish additional guidance, see § 601.601(d)(2), clarifying when or if an individual becomes “eligible for government-sponsored minimum essential coverage” when the eligibility for that coverage is a result of a particular illness or<PRTPAGE P="30380"/>condition. For example, as the preamble to the proposed regulations notes, the additional guidance would clarify the rules in the case of eligibility for Medicaid on the basis of blindness or disability.</P>
        <HD SOURCE="HD3">C. Eligibility for Limited Benefits</HD>
        <P>Commentators requested that the final regulations address whether eligibility for benefits with a limited scope under government programs (for example, eligibility only for family planning services under Medicaid) constitutes eligibility for minimum essential coverage. The final regulations do not address these comments because minimum essential coverage is defined in section 5000A(f). It is anticipated that regulations under section 5000A will provide that government-sponsored health benefit programs that offer only very limited benefits are not minimum essential coverage.</P>
        <HD SOURCE="HD3">D. Medicare Eligibility</HD>
        <P>A commentator noted that the dates in some of the examples in the proposed regulations concerning eligibility for Medicare inaccurately describe when an individual's Medicare coverage begins. The commentator also asked that the final regulations create a safe harbor for taxpayers whose Medicare coverage is delayed because they enroll during the later months of their Medicare initial enrollment period.</P>
        <P>The final regulations revise the examples in response to this comment. The final regulations do not include the suggested Medicare safe harbor because the commentator's concerns are addressed by the general rule that an individual is eligible for minimum essential coverage on the first day of the first full month the individual may receive benefits. Additionally, as discussed earlier in this preamble, the final regulations revise the rule that an individual who fails to complete the requirements to obtain coverage is treated as eligible on the first day of the fourth month after the event establishing eligibility. Thus, individuals enrolling during the later months of their initial Medicare enrollment period will not be deemed eligible for Medicare before the expiration of the enrollment period.</P>
        <HD SOURCE="HD3">E. Indian Health Service</HD>
        <P>Commentators requested that the final regulations provide that individuals eligible to receive health care from the Indian Health Service (IHS) are not eligible for government-sponsored minimum essential coverage. Section 5000A(f) defines minimum essential coverage. It does not designate the IHS as providing minimum essential coverage. Section 5000A(f)(1)(E) authorizes HHS to designate other coverage as minimum essential coverage. HHS has advised the IRS and the Treasury Department that it does not intend to designate access to the IHS as minimum essential coverage. Thus, individuals who are eligible to receive health care from the IHS will not be barred by IHS access alone from eligibility for the premium tax credit or from access to the special cost-sharing reduction for tribal members under section 1402(d) of the Affordable Care Act.</P>
        <HD SOURCE="HD3">ii. Employer-Sponsored Coverage</HD>
        <HD SOURCE="HD3">A. Affordability</HD>
        <P>The proposed regulations provide that an eligible employer-sponsored plan is affordable for an employee and related individuals if the portion of the annual premium the employee must pay for self-only coverage does not exceed the required contribution percentage (9.5 percent for taxable years beginning before January 1, 2015) of the taxpayer's household income. Commentators suggested that the affordability of coverage for related individuals should be based on the portion of the annual premium the employee must pay for family coverage.</P>
        <P>Under section 36B(c)(2)(C), an individual who may enroll in an eligible employer-sponsored plan may nonetheless be eligible for a premium tax credit if the employer-sponsored coverage either is unaffordable or fails to provide minimum value. Future regulations concerning employer-sponsored coverage will provide final rules on determining affordability for related individuals and proposed rules on determining minimum value.</P>
        <P>Some commentators asked that the final rules clarify how employer contributions to health savings accounts (HSAs), and amounts made available under health reimbursement arrangements (HRAs) are treated in determining affordability. Employer contributions to an HSA would not affect the affordability of employer-sponsored coverage because HSA contributions may not be used to pay for premiums for health insurance coverage (except in limited circumstances not applicable in the context of employer-sponsored coverage). Amounts available under an HRA that may be used only to reimburse medical expenses other than the employee's required share of the cost of employer-sponsored coverage also would not affect the affordability of employer-sponsored coverage. These final regulations do not address how other HRAs are treated for purposes of determining the affordability of an employer-sponsored plan, which may be addressed further in additional published guidance, see § 601.601(d)(2).</P>
        <P>Some commentators also asked for clarification on how wellness incentive programs affect the premium affordability determination. The final regulations authorize the Commissioner to publish additional guidance, see § 601.601(d)(2), to address the effect on affordability of wellness incentives that increase or decrease an employee's share of premiums. Comments are requested on types of wellness incentives, how these programs affect the affordability of eligible employer-sponsored coverage for employees and related individuals, and how incentives are earned and applied. The administrability of any rule on wellness incentives must consider the extent to which employees can be certain they will qualify for the incentives at the time they otherwise would be evaluated for eligibility for advance credit payments.</P>
        <HD SOURCE="HD3">B. Affordability Safe Harbor</HD>

        <P>Under the proposed regulations, an employer-sponsored plan is not affordable for an employee or family member for a plan year if, when the employee or family member enrolls in a qualified health plan, an Exchange determines that the eligible employer-sponsored plan is not affordable. Individuals applying for advance credit payments are required to provide the Exchange with information on whether employer-sponsored coverage is available to them. Because an Exchange will make an affordability determination only when an individual represents that employer-sponsored coverage is available, the affordability safe harbor will not be available to a taxpayer who misrepresents to an Exchange the availability of employer-sponsored coverage. The final regulations provide that the affordability safe harbor does not apply if a taxpayer, with reckless disregard for the facts, provides incorrect information to an Exchange concerning an employee's portion of the annual premium for employer coverage. The final regulations clarify that the affordability safe harbor applies only until such time as the availability of employer-sponsored coverage changes. If new or different employer-sponsored coverage becomes available after an individual enrolls in a qualified health plan, the individual must notify the Exchange and get a new affordability determination to extend the safe harbor. As the preamble to the proposed regulation notes, regulations under<PRTPAGE P="30381"/>section 4980H are expected to provide that an employer is not subject to a penalty merely because an employee receives a premium tax credit under this affordability safe harbor if the employer offers to its full-time employees affordable coverage that provides minimum value.</P>
        <P>Under 45 CFR 155.335, Exchanges generally will conduct an annual redetermination process that will allow individuals who enroll in a qualified health plan to maintain their eligibility and enrollment for subsequent years with limited burden. This process involves notifying the individual of the information the Exchange intends to use to make a new determination of eligibility for advance credit payments and soliciting the individual to report changes. The final regulations clarify that the affordability safe harbor does not carry over to later plan years automatically as part of the redetermination process. The affordability safe harbor applies only to a plan year for which a taxpayer responds to the notification and affirmatively provides information relating to the affordability in the upcoming year of available employer-sponsored coverage, allowing an Exchange to determine that employer-sponsored coverage available to the taxpayer for that plan year is unaffordable.</P>
        <HD SOURCE="HD3">C. Eligibility During a Waiting Period</HD>
        <P>Under section 2708 of the Public Health Service Act, employers are permitted to apply a waiting period of up to 90 days beginning when the employee is otherwise eligible for coverage under a group health plan. See Notice 2012-17 (2012-9 IRB 430). The final regulations clarify that an employee or related individual is treated as not eligible for coverage under the employer's plan during a waiting period.</P>
        <HD SOURCE="HD3">D. Minimum Value</HD>
        <P>The proposed regulations provide that an eligible employer-sponsored plan provides minimum value only if the plan's share of the total allowed costs of benefits provided under the plan is at least 60 percent. Commentators provided various recommendations for determining minimum value. Some commentators requested transition relief. Notice 2012-31 (2012-20 IRB 906) solicits additional comments on potential approaches for determining minimum value. All comments will be considered in separate guidance on determining minimum value.</P>
        <HD SOURCE="HD3">E. Individuals Enrolled in Coverage</HD>
        <P>Section 36B(c)(2)(C)(iii) and the proposed regulations provide that an individual who enrolls in an eligible employer-sponsored plan is not eligible for the premium tax credit even if the plan is unaffordable or fails to offer minimum value. Commentators asked whether an individual who enrolls in an eligible employer-sponsored plan and then terminates coverage during the plan year is treated as eligible for minimum essential coverage under the plan for the entire plan year under this rule, even though the coverage is unaffordable or does not provide minimum value. Commentators similarly asked if individuals who enroll in continuation coverage and then disenroll from it later during the year are treated as eligible for minimum essential coverage for the entire year. In response to these comments, the final regulations clarify that an individual is treated as eligible for minimum essential coverage under an eligible employer-sponsored plan by reason of enrolling in the plan or in continuation coverage only for months the individual is enrolled in the coverage.</P>
        <P>Commentators expressed concern that an employee may be enrolled automatically in employer-sponsored coverage and would be treated as eligible for minimum essential coverage under an employer-sponsored plan by reason of the automatic enrollment even though the plan is not affordable or does not provide minimum value. The commentators were specifically concerned about the automatic enrollment provision in section 18A of the Fair Labor Standards Act (added by section 1511 of the Affordable Care Act), which is applicable to employers with more than 200 full-time employees. (The Department of Labor, which has jurisdiction over the automatic enrollment provisions under section 18A of the Fair Labor Standards Act, does not intend to require employers to comply with the automatic enrollment provisions until after it publishes regulations and those regulations become applicable, and has indicated that the regulations will not take effect by 2014. See Notice 2012-17, Q&amp;A-1.)</P>
        <P>Commentators also raised concerns about the automatic enrollment of an employee in an employer-sponsored plan for other reasons, which could include automatic enrollment that a plan might provide for without regard to the automatic enrollment requirements of the Affordable Care Act, automatic enrollment that might occur because of administrative error, or automatic re-enrollment in the plan in a subsequent year. The commentators recommended allowing an employee to opt out of the employer-sponsored coverage following automatic enrollment.</P>
        <P>In response to these comments, the final regulations provide that an employee or related individual is treated as not enrolled in an eligible employer-sponsored plan for a month in a plan year or other period if (1) the employee or related individual is automatically enrolled in the plan for that plan year or other period, and (2) terminates the coverage before the later of the first day of the second full calendar month of the plan year or other period or the last day of any permissible opt-out period provided by the employer-sponsored plan or in regulations to be issued by the Department of Labor. Thus, an individual who is automatically enrolled for a plan year or other period in coverage that is unaffordable or that does not provide minimum value and who terminates that coverage by the date specified in the preceding sentence will not be treated as eligible for minimum essential coverage under the employer-sponsored plan for the months in which the individual was automatically enrolled in the plan that are within that plan year or period. Accordingly, the individual will not be precluded by the automatic enrollment from inclusion in the taxpayer's coverage family for computing the amount of the premium tax credit for those months.</P>
        <HD SOURCE="HD3">iii. Nondependent Eligibility for Minimum Essential Coverage</HD>

        <P>Commentators asked whether individuals who may enroll in an eligible employer-sponsored plan based on their relationship to an employee but who are not tax dependents (for example, a 25-year old child or a domestic partner of the employee) are treated as eligible for minimum essential coverage under the plan. In response to these comments, the final regulations provide that an individual who may enroll in minimum essential coverage because of a relationship to another person eligible for the coverage, but for whom the other eligible person does not claim a personal exemption deduction under section 151, is treated as eligible for minimum essential coverage under the coverage only for months that the related individual is enrolled in the coverage. This change reflects the fact that the related individual is a member of a different family with different household income for purposes of the premium tax credit. Furthermore, a person who may not claim a related individual as a<PRTPAGE P="30382"/>dependent is not responsible for the section 5000A penalty for the related individual who does not receive coverage. Thus, the final regulations ensure that coverage available through another person does not create an obstacle to a related individual claiming a premium tax credit.</P>
        <HD SOURCE="HD2">3. Computing the Premium Tax Credit</HD>
        <HD SOURCE="HD3">a. Definition of Coverage Month</HD>
        <P>Section 36B(c)(2)(A)(ii) and the proposed regulations provide that a month is a coverage month for an individual only if the individual is enrolled in a qualified health plan and is not eligible for other minimum essential coverage on the first day of the month, and the premiums are paid by the taxpayer or through advance credit payments.</P>
        <P>Consistent with the proposed regulations, the final regulations provide that an individual must be enrolled in a qualified health plan as of the first day of the month for a month to be a coverage month. However, instead of testing whether the individual is eligible for other minimum essential coverage as of the first day of the month, the final regulations provide that an individual may have a coverage month as long as there is at least one day of the month when the individual is not eligible for other minimum essential coverage. The final regulations also clarify that a month is not a coverage month for a taxpayer if the taxpayer's share of premiums is not paid in full by the unextended due date for filing the taxpayer's income tax return for the taxable year.</P>
        <HD SOURCE="HD3">b. Third-Party Payments</HD>
        <P>Under the proposed regulations, premiums another person pays for coverage of the taxpayer or a member of the taxpayer's family for a month are treated as paid by the taxpayer solely for purposes of the month qualifying as a coverage month. Commentators asked for confirmation that an Indian tribe may pay premiums on behalf of a tribal member. The final regulations add an example illustrating that premiums paid for a taxpayer by an Indian tribe are treated as paid by the taxpayer under the coverage month rule.</P>
        <HD SOURCE="HD3">c. Adjusted Monthly Premium</HD>
        <P>Under section 36B(b)(3)(C), the adjusted monthly premium is the premium an issuer would charge to cover all members of a taxpayer's coverage family, adjusted only for age. A commentator noted that the definition of adjusted monthly premium in the proposed regulations does not include the statutory qualification that, in the case of a State participating in the wellness discount demonstration project under section 2705(d) of the Public Health Service Act, the adjusted monthly premium is determined without regard to any premium discount or rebate under the project. The final regulations revise the definition of adjusted monthly premium in accordance with this comment and clarify that the premium may not be adjusted for tobacco use, see section 36B(b)(3)(C).</P>
        <HD SOURCE="HD3">d. Applicable Benchmark Plan</HD>
        <HD SOURCE="HD3">i. In General</HD>
        <P>Under section 36B(b)(3)(B), a taxpayer's premium tax credit is computed based on the premium for the applicable second lowest cost silver plan in the rating area where the taxpayer resides and offered by the Exchange where the taxpayer enrolls in a qualified health plan. For simplicity, the proposed regulations refer to this plan as the applicable benchmark plan.</P>
        <P>Section 36B(b)(3)(B)(ii) describes the “applicable” benchmark plan as providing self-only or family coverage. The proposed regulations define family coverage as insurance that covers more than one individual. The proposed regulations further provide that a taxpayer's “applicable” benchmark plan is the benchmark plan that “applies” to the members of the taxpayer's coverage family. The proposed regulations define the coverage family, in general, as the members of the taxpayer's family (the individuals for whom the taxpayer properly claims a personal exemption deduction under section 151) who are not eligible for other minimum essential coverage. The final regulations clarify that the coverage family includes only those individuals in the taxpayer's family who are not eligible for other minimum essential coverage and enroll in a qualified health plan.</P>
        <P>For purposes of determining the benchmark plan that “applies” to a coverage family, the proposed regulations provide that if an Exchange offers categories of family coverage (such as coverage for two adults or coverage for one adult plus children), the applicable benchmark plan for family coverage is the coverage category that applies to the members of the taxpayer's coverage family who enroll in a qualified health plan. The final regulations delete the reference to coverage categories. The final Exchange rules promulgated by HHS removed references to rating categories, which are a parallel concept to coverage categories. The final regulations provide that the applicable benchmark plan for family coverage is the plan that applies to the members of the taxpayer's coverage family.</P>
        <P>Commentators requested clarification on how the applicable benchmark plan would be determined for a qualified health plan that covers children only. The final regulations provide an example in response to this comment.</P>
        <HD SOURCE="HD3">ii. Families Not Covered by One Applicable Benchmark Plan</HD>
        <P>The proposed regulations provide that the premium for the applicable benchmark plan is the sum of the premiums for the applicable benchmark plans that cover components of the taxpayer's coverage family if a single benchmark plan would not cover the family, for example because members live in different rating areas. The final regulations provide that, if there is at least one silver level plan offered on an Exchange that does not cover all members of a taxpayer's coverage family under one policy and premium, for example because of nontraditional relationships within the family, the premium for the applicable benchmark plan is the single premium or the combination of premiums that is the second lowest cost silver option for covering the entire family. The final regulations reserve rules for determining the applicable benchmark plan for families with members residing in different locations.</P>
        <P>Commentators stated that the final regulations should allow domestic partners and other two-adult groups to use a family benchmark plan to compute their premium tax credit if the Exchange allows both adults to be covered by the same qualified health plan. The final regulations do not adopt this suggestion. If the adults constitute two separate households for Federal tax purposes, section 36B requires a separate credit computation for each household that includes only those individuals for whom each taxpayer claims a personal exemption deduction under section 151.</P>
        <HD SOURCE="HD3">iii. Plans Closed to Enrollment</HD>

        <P>The proposed regulations provide that, in general, an applicable benchmark plan is the second lowest cost silver plan offered through the Exchange at the time a taxpayer or family member enrolls. However, a plan does not cease to be a taxpayer's applicable benchmark plan for that enrollment period because the plan or a lower cost plan closes to enrollment during the taxable year. Thus, a plan may continue to be an applicable benchmark plan if it closes to<PRTPAGE P="30383"/>enrollment after a taxpayer enrolls in a qualified health plan, but it is disregarded in determining the applicable benchmark plan if it is closed to enrollment at the time the taxpayer enrolls.</P>
        <P>A commentator requested that the final regulations exclude certain qualified health plans open to enrollment only to certain individuals when determining which plan constitutes a taxpayer's applicable benchmark plan. The final regulations clarify that a plan is taken into account in determining the taxpayer's applicable benchmark plan only if it is open to enrollment to one or more members of a taxpayer's coverage family.</P>
        <HD SOURCE="HD3">iv. Changes Affecting Applicable Benchmark Plan</HD>
        <P>Commentators asked whether a taxpayer's applicable benchmark plan is locked in at enrollment and whether the benchmark plan could change during the year if a plan is decertified or if members of the taxpayer's family leave the plan. The proposed regulations provide that a taxpayer's applicable benchmark plan may change from month to month if changes in the taxpayer's coverage family occur (for example, if a family member becomes eligible or ineligible for minimum essential coverage during the taxable year). The proposed regulations also provide that a taxpayer's applicable benchmark plan does not cease to be the applicable benchmark plan solely because the plan, or a lower cost plan, terminates or closes to enrollment during the year. The final regulations adopt the proposed regulations without change.</P>
        <HD SOURCE="HD3">e. Combining Qualified Health Plan Premiums With Premiums for Other Coverage</HD>
        <P>Section 36B(b) and the proposed regulations provide that the premium tax credit is the lesser of (1) the premiums for the qualified health plan or plans in which a taxpayer or family member enrolls, or (2) the difference between the premium for a benchmark qualified health plan and the amount of the premium that the taxpayer would be required to pay if the taxpayer purchased the benchmark plan (the taxpayer's contribution amount). Commentators suggested that the final regulations allow taxpayers to determine the premium tax credit by combining the premiums for one or more qualified health plans with premiums a taxpayer pays for other minimum essential coverage (particularly premiums for coverage under CHIP). Under the rule suggested by the commentators, the taxpayer's contribution amount would be reduced by the amount of the family's other premiums to ensure that a family could afford the combined premiums for qualified health plan coverage and CHIP or other coverage.</P>
        <P>Under section 36B(b)(2), the premium tax credit is computed by taking into account only the premiums for qualified health plans. Thus, the credit may not be increased for premiums for other minimum essential coverage.</P>
        <HD SOURCE="HD3">f. Pediatric Dental Coverage</HD>
        <P>Under section 36B(b)(3)(E), if an individual enrolls in both a qualified health plan and a dental plan, the portion of the premium for the dental plan properly allocable to pediatric dental benefits that are essential health benefits is treated as premiums payable for a qualified health plan for purposes of determining the monthly premium. The proposed regulations requested comments on methods for determining the amount of the premium properly allocable to pediatric dental benefits.</P>
        <P>Commentators requested that the final regulations use a methodology that reflects the true costs of medical and dental care for children. Other commentators recommended that the Federal government split the value of the premium tax credit on a basis proportionate to the premium for the pediatric service in the dental plan and the qualified health plan premium. Some commentators requested a simple formula for allocating a taxpayer's dental benefits premium to pediatric dental care. A commentator requested a safe harbor permitting dental insurance carriers to use a reasonable method based on sound actuarial practice.</P>
        <P>The final regulations provide that the portion of the premium for a stand-alone dental plan properly allocable to pediatric dental benefits is determined under guidance issued by HHS. Under the final HHS Exchange regulations at 45 CFR 156.210, a qualified health plan issuer that offers a standalone dental plan is required to provide information on the plan's rates to the Exchange each year. It is anticipated that future HHS guidance will address how this required reporting on rates will include reporting on the portion of the premium allocable to pediatric dental coverage.</P>
        <HD SOURCE="HD3">g. Families With Individuals Not Lawfully Present</HD>
        <P>Section 36B(e)(1)(B) describes a method for determining the FPL percentage for families that include an individual not lawfully present (the statutory method) and allows a comparable method that reaches the same results to be prescribed by regulations. Commentators suggested that the final regulations provide a comparable method based on the Medicaid rules for income and family size determinations.</P>
        <P>The commentators' suggested method may not reach the same result as the statutory method. Thus, the final regulations do not adopt this suggestion. The final regulations provide that the Commissioner may provide a comparable method in additional published guidance, see § 601.601(d)(2).</P>
        <HD SOURCE="HD2">4. Reconciling the Credit and Advance Credit Payments</HD>
        <HD SOURCE="HD3">a. Months for Which an Issuer Does Not Provide Coverage</HD>
        <P>Section 1412(c)(2)(B) of the Affordable Care Act provides that an issuer receiving an advance credit payment must reduce the premiums charged to the insured for the period covered by the advance payment but may terminate coverage if the insured fails to pay premiums for a 3-month period. The final HHS Exchange regulations describe the operation of this grace period in more detail. Under the retroactive termination rule, if a taxpayer does not pay premiums in full for 3 months, the issuer must terminate coverage retroactive to the end of the first of those months and will be required to return any advance payments received for any terminated coverage months. These final regulations clarify that a taxpayer does not have an advance credit payment for a month in which the issuer of the qualified health plan does not provide coverage and will not be required to reconcile payments for those months. The taxpayer will, however, have to reconcile the payment for the first month of the grace period. If the taxpayer has not paid the taxpayer's share of the premium for that month by the unextended due date for filing the return, the first month is not a coverage month, and the taxpayer is not eligible for the premium tax credit for that month.</P>
        <HD SOURCE="HD3">b. Changes in Circumstances</HD>

        <P>Section 36B(f) provides that a taxpayer must reconcile on the taxpayer's income tax return for the taxable year the premium tax credit allowed under section 36B with the advance payments paid during the course of the taxable year and must pay the amount of any excess advance payments as additional tax. For taxpayers with household income below 400 percent of the FPL, the amount of<PRTPAGE P="30384"/>additional tax liability the taxpayer must repay is capped.</P>
        <P>Commentators requested that the final regulations include rules to mitigate the effects of the requirement to repay excess advance payments. Commentators suggested that the final regulations adopt a safe harbor for individuals and families who can demonstrate that they accurately reported any changes in income or family size to the Exchange and that their advance payments were properly computed based on the information available at the time the payments were made. Commentators suggested that taxpayers who experience changes in circumstances during the year, including taxpayers whose household income for the taxable year exceeds 400 percent of the FPL, should be allowed to prorate the repayment limitations based on the portion of the year the taxpayer receives advance payments. Other commentators asked that taxpayers who would experience a hardship as a result of repaying excess advance payments be exempt from the repayment requirement or that the IRS should disregard changes that cause income to slightly exceed 400 percent of the FPL. Commentators also suggested that taxpayers be allowed to compute their premium tax credit using the largest family size of the household during the year rather than the family size reported on the tax return.</P>
        <P>The statute sets forth clear rules for reconciling advance credit payments, which are not consistent with the suggestions made by the commentators. Accordingly, the final regulations do not adopt these comments.</P>
        <P>Commentators suggested that the IRS should offer automatic payment plans for taxpayers who have an additional tax liability and should not impose interest or penalties on this additional tax liability repaid through the payment plan. Although these comments are beyond the scope of these final regulations, the IRS will consider possible avenues of administrative relief in appropriate cases for taxpayers who have additional tax liability as a result of excess advance payments.</P>
        <HD SOURCE="HD3">c. Changes in Filing Status</HD>
        <HD SOURCE="HD3">i. Taxpayers Who Marry During the Taxable Year</HD>
        <P>The proposed regulations provide that, like other taxpayers, newly-married taxpayers compute their premium tax credit using family size and household income as reported on their tax return and the appropriate applicable benchmark plan for each coverage month regardless of whether the taxpayers were married or single during the month. The proposed regulations request comments on alternative credit computations for taxpayers who receive advance payments, marry during the year, and owe additional tax, even if the Exchange accurately projects each spouse's separate income.</P>
        <P>Some commentators suggested an alternative computation that computes the credit for the single months separately for each spouse as if each taxpayer's annual income was one-half of the actual household income for the year. For the married months, the credit would be computed using actual household income for the year. The premium tax credit would be the sum of the credits computed for the single months and the married months. This computation generally results in a smaller amount of excess advance payments compared to the amount computed under the proposed regulations.</P>
        <P>The final regulations adopt the alternative credit computation suggested by the commentators as an option for taxpayers who marry during the taxable year. Under this alternative method, the credit for the single months is computed separately for each spouse as if each taxpayer's annual income was one-half of the actual household income for the year, the credit for the married months is computed using actual household income for the year, and the premium tax credit is the sum of the credits computed for the single months and the married months. However, to avoid allowing taxpayers an increased amount of additional premium tax credit resulting from marriage, the final regulations cap any additional premium tax credit allowed to a taxpayer under this alternative computation method at the amount of additional credit that results from computing the credit under the general rule.</P>
        <P>Commentators requested that the final regulations allow a year-of-marriage waiver on repaying excess advance payments. The final regulations do not adopt these comments as these rules would create unwarranted benefits, for example in cases of taxpayers who marry during the year and owe additional tax because their income is significantly higher than what the Exchange projected.</P>
        <HD SOURCE="HD3">ii. Taxpayers Whose Marital Status Changes From Married to Single During the Taxable Year</HD>
        <P>The proposed regulations provide that taxpayers who are married to each other at the beginning but not at the end of the taxable year must allocate the premium for the applicable benchmark plan, the premium for the plan in which the taxpayers enroll, and the advance credit payments for the period the taxpayers are married. The proposed regulations permit the allocation to be made in any proportion, but if the taxpayers cannot agree on a proportion, these items are allocated 50 percent to each taxpayer.</P>
        <P>Commentators opined that the final regulations should provide for allocating these items to each taxpayer in proportion to each taxpayer's household income. The final regulations do not adopt this suggestion as it would require divorced taxpayers to exchange income information or require the IRS to associate each taxpayer's return with the other. Divorced taxpayers may allocate the premium for the applicable benchmark plan, the premium for the plan in which the taxpayers enroll, and the advance credit payments in proportion to household income under the final regulations if they choose.</P>
        <HD SOURCE="HD3">iii. Married Taxpayers Filing Separately</HD>
        <P>Section 36B(c)(1)(C) provides that married taxpayers who do not file a joint return are not applicable taxpayers and are not allowed a premium tax credit. Accordingly, married taxpayers who receive advance credit payments but do not file a joint return must repay the advance credit payments. The advance credit payments must be allocated equally to each taxpayer for purposes of determining the amount of excess advance payments. The final regulations clarify that this equal allocation also applies if one spouse is treated as unmarried under section 7703(b) (and may, for example, properly claim the premium tax credit on a return filed as head of household).</P>
        <P>The proposed regulations requested comments on special rules for taxpayers who receive advance payments but face challenges in meeting the joint return requirement, for example because of the incarceration of a spouse, domestic abuse, or a pending divorce.</P>
        <P>Numerous commentators stated that the final regulations should provide special rules allowing these spouses to file separate returns and claim the premium tax credit. Commentators suggested that abandoned spouses also warrant an exception. Other commentators noted that other married taxpayers may face challenges in filing a joint return and asked for a hardship exemption from the joint filing requirement.</P>

        <P>Commentators suggested that taxpayers should be able to certify on the premium tax credit form that they meet the criteria for an exemption from the joint filing requirement. One<PRTPAGE P="30385"/>commentator suggested granting an exception in case of domestic violence for a taxpayer who has or during the taxable year had an order of protection.</P>
        <P>Some commentators, noting that many of these situations are not resolved in a single taxable year, requested a three-year exception to the joint filing requirement.</P>
        <P>The final regulations do not provide special rules allowing married taxpayers to claim the premium tax credit on separate returns. However, the IRS and the Treasury Department intend to propose additional regulations regarding eligibility for the premium tax credit to address circumstances in which domestic abuse, abandonment, or similar circumstances create obstacles to the ability of taxpayers to file joint returns. Comments are requested on the documentation that a taxpayer could provide to establish that he or she cannot file a joint return because of the domestic abuse, abandonment, or other similar circumstances, on what treatment should be accorded the other spouse if he or she does not file with documentation supporting an exception, and the need for anti-abuse rules.</P>
        <HD SOURCE="HD2">5. Information Reporting</HD>
        <P>Commentators requested that the final regulations require an Exchange, in reporting information under section 36B(f)(3), to strictly define and limit the use and disclosure of immigration status information for any purpose other than ensuring efficient operation of the Exchange and prohibit the transfer of immigration status information from the Exchange to the IRS. The final regulations do not include a rule responding to these comments because the IRS does not require information on immigration status of any individual in order to administer the premium tax credit and will not obtain this information. The Exchange will verify that an individual is a citizen or lawfully present and eligible to enroll in coverage through the Exchange.</P>
        <P>The proposed regulations provide that the IRS will provide rules on the time and manner of information reporting by Exchanges in additional published guidance, see § 601.601(d)(2). Commentators requested that the final regulations provide information on the time and manner of information reporting by Exchanges. A commentator suggested that the information returns should be provided to taxpayers by December 31. Another commentator suggested that the annual information return should report the cost of the applicable benchmark plan on the first day of each month. The final regulations defer rules on the time for information reporting by Exchanges to additional regulations, which are expected to provide for monthly reporting by Exchanges to the IRS and an annual report to the IRS and the taxpayer due by January 31.</P>
        <HD SOURCE="HD2">6. American Indians/Alaska Natives</HD>
        <P>Commentators asked that the final regulations provide special provisions for American Indians and Alaska Natives, for example that they be treated as eligible for employer-sponsored minimum essential coverage only if they are enrolled in the coverage, that they should not be required to pay any premiums for a qualified health plan, and that they be exempted from reconciliation. The IRS and HHS have conducted several tribal consultations on these and other issues under the proposed regulations. The final regulations do not adopt these suggestions, as they are inconsistent with the statute.</P>
        <HD SOURCE="HD2">7. Effective/Applicability Date</HD>
        <P>These final regulations apply to taxable years ending after December 31, 2013.</P>
        <HD SOURCE="HD1">Special Analyses</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. 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 requirement on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking that preceded these final regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business, and no comments were received.</P>
        <HD SOURCE="HD1">Comments</HD>
        <P>Written (including electronic) comments must be received by<E T="03">August 21, 2012.</E>Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (REG-131491-10), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically to<E T="03">www.regulations.gov</E>(IRS REG-131491-10). Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (REG-131491-10), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC All comments will be available for public inspection and copying.</P>
        <HD SOURCE="HD1">Drafting Information</HD>
        <P>The principal authors of these final regulations are Shareen S. Pflanz, Frank W. Dunham III, Andrew S. Braden, and Stephen J. Toomey of the Office of Associate Chief Counsel (Income Tax and Accounting). However, other personnel from the IRS and the Treasury Department participated in their development.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects</HD>
          <CFR>26 CFR Part 1</CFR>
          <P>Income taxes, Reporting and recordkeeping requirements.</P>
          <CFR>26 CFR Part 602</CFR>
          <P>Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <HD SOURCE="HD1">Adoption of Amendments to the Regulations</HD>
        <REGTEXT PART="1" TITLE="26">
          <P>Accordingly, 26 CFR parts 1 and 602 are amended as follows:</P>
          <PART>
            <HD SOURCE="HED">PART 1—INCOME TAXES</HD>
          </PART>
          <AMDPAR>
            <E T="04">Paragraph 1.</E>The authority citation for part 1 is amended by adding an entry in numerical order to read in part as follows:</AMDPAR>
          <EXTRACT>
            <AUTH>
              <HD SOURCE="HED">Authority:</HD>
              <P>26 U.S.C. 7805 * * *</P>
            </AUTH>
            
            <P>Section 1.36B-4 also issued under 26 U.S.C. 36B(g).</P>
            <STARS/>
          </EXTRACT>
        </REGTEXT>
        <REGTEXT PART="1" TITLE="26">
          <AMDPAR>
            <E T="04">Par. 2.</E>Sections 1.36B-0, 1.36B-1, 1.36B-2, 1.36B-3, 1.36B-4, and 1.36B-5 are added to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 1.36B-0</SECTNO>
            <SUBJECT>Table of contents.</SUBJECT>
            <P>This section lists the captions contained in §§ 1.36B-1 through 1.36B-5.</P>
            
            <EXTRACT>
              <HD SOURCE="HD2">§ 1.36B-1Premium tax credit definitions.</HD>
              <FP SOURCE="FP-1">(a) In general.</FP>
              <FP SOURCE="FP-1">(b) Affordable Care Act.</FP>
              <FP SOURCE="FP-1">(c) Qualified health plan.</FP>
              <FP SOURCE="FP-1">(d) Family and family size.</FP>
              <FP SOURCE="FP-1">(e) Household income.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Modified adjusted gross income.</FP>
              <FP SOURCE="FP-1">(f) Dependent.</FP>
              <FP SOURCE="FP-1">(g) Lawfully present.</FP>
              <FP SOURCE="FP-1">(h) Federal poverty line.</FP>
              <FP SOURCE="FP-1">(i) Reserved.</FP>
              <FP SOURCE="FP-1">(j) Advance credit payment.</FP>
              <FP SOURCE="FP-1">(k) Exchange.</FP>
              <FP SOURCE="FP-1">(l) Self-only coverage.</FP>
              <FP SOURCE="FP-1">(m) Family coverage.</FP>
              <FP SOURCE="FP-1">(n) Rating area.</FP>
              <FP SOURCE="FP-1">(o) Effective/applicability date.</FP>
              <HD SOURCE="HD2">§ 1.36B-2Eligibility for premium tax credit.</HD>
              <FP SOURCE="FP-1">(a) In general.<PRTPAGE P="30386"/>
              </FP>
              <FP SOURCE="FP-1">(b) Applicable taxpayer.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Married taxpayers must file joint return.</FP>
              <FP SOURCE="FP-1">(3) Dependents.</FP>
              <FP SOURCE="FP-1">(4) Individuals not lawfully present or incarcerated.</FP>
              <FP SOURCE="FP-1">(5) Individuals lawfully present.</FP>
              <FP SOURCE="FP-1">(6) Special rule for taxpayers with household income below 100 percent of the Federalpoverty line for the taxable year.</FP>
              <FP SOURCE="FP-1">(7) Computation of premium assistance amounts for taxpayers with household income below 100 percent of the Federal poverty line.</FP>
              <FP SOURCE="FP-1">(c) Minimum essential coverage.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Government-sponsored minimum essential coverage.</FP>
              <FP SOURCE="FP-1">(i) In general.</FP>
              <FP SOURCE="FP-1">(ii) Obligation to complete administrative requirements to obtain coverage.</FP>
              <FP SOURCE="FP-1">(iii) Special rule for coverage for veterans and other individuals under chapter 17 or 18 of Title 38, U.S.C.</FP>
              <FP SOURCE="FP-1">(iv) Retroactive effect of eligibility determination.</FP>
              <FP SOURCE="FP-1">(v) Determination of Medicaid or Children's Health Insurance Program (CHIP) ineligibility.</FP>
              <FP SOURCE="FP-1">(vi) Examples.</FP>
              <FP SOURCE="FP-1">(3) Employer-sponsored minimum essential coverage.</FP>
              <FP SOURCE="FP-1">(i) In general.</FP>
              <FP SOURCE="FP-1">(ii) Plan year.</FP>
              <FP SOURCE="FP-1">(iii) Eligibility for months during a plan year.</FP>
              <FP SOURCE="FP-1">(A) Failure to enroll in plan.</FP>
              <FP SOURCE="FP-1">(B) Waiting periods.</FP>
              <FP SOURCE="FP-1">(C) Example.</FP>
              <FP SOURCE="FP-1">(iv) Continuation coverage.</FP>
              <FP SOURCE="FP-1">(v) Affordable coverage.</FP>
              <FP SOURCE="FP-1">(A) In general.</FP>
              <FP SOURCE="FP-1">(<E T="03">1</E>) Affordability for employee.</FP>
              <FP SOURCE="FP-1">(<E T="03">2</E>) Affordability for related individual.</FP>
              <FP SOURCE="FP-1">(<E T="03">3</E>) Employee safe harbor.</FP>
              <FP SOURCE="FP-1">(<E T="03">4</E>) Wellness incentives and employer contributions to health reimbursement arrangements.</FP>
              <FP SOURCE="FP-1">(B) Affordability for part-year period.</FP>
              <FP SOURCE="FP-1">(C) Required contribution percentage.</FP>
              <FP SOURCE="FP-1">(D) Examples.</FP>
              <FP SOURCE="FP-1">(vi) Minimum value.</FP>
              <FP SOURCE="FP-1">(vii) Enrollment in eligible employer-sponsored plan.</FP>
              <FP SOURCE="FP-1">(A) In general.</FP>
              <FP SOURCE="FP-1">(B) Automatic enrollment.</FP>
              <FP SOURCE="FP-1">(C) Examples.</FP>
              <FP SOURCE="FP-1">(4) Related individual not claimed as a personal exemption deduction.</FP>
              <HD SOURCE="HD2">§ 1.36B-3Computing the premium assistance credit amount.</HD>
              <FP SOURCE="FP-1">(a) In general.</FP>
              <FP SOURCE="FP-1">(b) Definitions.</FP>
              <FP SOURCE="FP-1">(c) Coverage month.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Premiums paid for a taxpayer.</FP>
              <FP SOURCE="FP-1">(3) Examples.</FP>
              <FP SOURCE="FP-1">(d) Premium assistance amount.</FP>
              <FP SOURCE="FP-1">(e) Adjusted monthly premium.</FP>
              <FP SOURCE="FP-1">(f) Applicable benchmark plan.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Family coverage.</FP>
              <FP SOURCE="FP-1">(3) Silver level plan not covering a taxpayer's family.</FP>
              <FP SOURCE="FP-1">(4) Family members residing at different locations.</FP>
              <FP SOURCE="FP-1">(5) Plan closed to enrollment.</FP>
              <FP SOURCE="FP-1">(6) Benchmark plan terminates or closes to enrollment during the year.</FP>
              <FP SOURCE="FP-1">(7) Examples.</FP>
              <FP SOURCE="FP-1">(g) Applicable percentage.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Applicable percentage table.</FP>
              <FP SOURCE="FP-1">(3) Examples.</FP>
              <FP SOURCE="FP-1">(h) Plan covering more than one family.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Example.</FP>
              <FP SOURCE="FP-1">(i) Reserved.</FP>
              <FP SOURCE="FP-1">(j) Additional benefits.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Method of allocation.</FP>
              <FP SOURCE="FP-1">(3) Examples.</FP>
              <FP SOURCE="FP-1">(k) Pediatric dental coverage.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Method of allocation.</FP>
              <FP SOURCE="FP-1">(3) Example.</FP>
              <FP SOURCE="FP-1">(l) Families including individuals not lawfully present.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Revised household income computation.</FP>
              <FP SOURCE="FP-1">(i) Statutory method.</FP>
              <FP SOURCE="FP-1">(ii) Comparable method.</FP>
              <HD SOURCE="HD2">§ 1.36B-4Reconciling the premium tax credit with advance credit payments.</HD>
              <FP SOURCE="FP-1">(a) Reconciliation.</FP>
              <FP SOURCE="FP-1">(1) Coordination of premium tax credit with advance credit payments.</FP>
              <FP SOURCE="FP-1">(i) In general.</FP>
              <FP SOURCE="FP-1">(ii) Responsibility for advance credit payments.</FP>
              <FP SOURCE="FP-1">(iii) Advance credit payment for a month in which an issuer does not provide coverage.</FP>
              <FP SOURCE="FP-1">(2) Credit computation.</FP>
              <FP SOURCE="FP-1">(3) Limitation on additional tax.</FP>
              <FP SOURCE="FP-1">(i) In general.</FP>
              <FP SOURCE="FP-1">(ii) Additional tax limitation table.</FP>
              <FP SOURCE="FP-1">(4) Examples.</FP>
              <FP SOURCE="FP-1">(b) Changes in filing status.</FP>
              <FP SOURCE="FP-1">(1) In general.</FP>
              <FP SOURCE="FP-1">(2) Taxpayers who marry during the taxable year.</FP>
              <FP SOURCE="FP-1">(i) In general.</FP>
              <FP SOURCE="FP-1">(ii) Alternative computation of additional tax liability.</FP>
              <FP SOURCE="FP-1">(A) In general.</FP>
              <FP SOURCE="FP-1">(B) Alternative premium assistance amounts for pre-marriage months.</FP>
              <FP SOURCE="FP-1">(C) Premium assistance amounts for marriage months.</FP>
              <FP SOURCE="FP-1">(3) Taxpayers not married to each other at the end of the taxable year.</FP>
              <FP SOURCE="FP-1">(4) Married taxpayers filing separate returns.</FP>
              <FP SOURCE="FP-1">(5) Taxpayers filing returns as head of household and married filing separately.</FP>
              <FP SOURCE="FP-1">(6) Examples.</FP>
              <HD SOURCE="HD2">§ 1.36B-5Information reporting by Exchanges.</HD>
              <FP SOURCE="FP-1">(a) Information required to be reported.</FP>
              <FP SOURCE="FP-1">(b) Time of reporting.</FP>
              <FP SOURCE="FP-1">(c) Manner of reporting.</FP>
            </EXTRACT>
            <HD SOURCE="HD1">§ 1.36B-1Premium tax credit definitions.</HD>
            <P>(a)<E T="03">In general.</E>Section 36B allows a refundable premium tax credit for taxable years ending after December 31, 2013. The definitions in this section apply to this section and §§ 1.36B-2 through 1.36B-5.</P>
            <P>(b)<E T="03">Affordable Care Act.</E>The term<E T="03">Affordable Care Act</E>refers to the Patient Protection and Affordable Care Act, Public Law 111-148 (124 Stat. 119 (2010)), and the Health Care and Education Reconciliation Act of 2010, Public Law 111-152 (124 Stat. 1029 (2010)), as amended by the Medicare and Medicaid Extenders Act of 2010, Public Law 111-309 (124 Stat. 3285 (2010)), the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, Public Law 112-9 (125 Stat. 36 (2011)), the Department of Defense and Full-Year Continuing Appropriations Act, 2011, Public Law 112-10 (125 Stat. 38 (2011)), and the 3% Withholding Repeal and Job Creation Act, Public Law 112-56 (125 Stat. 711 (2011)).</P>
            <P>(c)<E T="03">Qualified health plan.</E>The term<E T="03">qualified health plan</E>has the same meaning as in section 1301(a) of the Affordable Care Act (42 U.S.C. 18021(a)) but does not include a catastrophic plan described in section 1302(e) of the Affordable Care Act (42 U.S.C. 18022(e)).</P>
            <P>(d)<E T="03">Family and family size.</E>A taxpayer's family means the individuals for whom a taxpayer properly claims a deduction for a personal exemption under section 151 for the taxable year. Family size means the number of individuals in the family. Family and family size may include individuals who are not subject to or are exempt from the penalty under section 5000A for failing to maintain minimum essential coverage.</P>
            <P>(e)<E T="03">Household income</E>—(1)<E T="03">In general.</E>Household income means the sum of—</P>
            <P>(i) A taxpayer's modified adjusted gross income; plus</P>
            <P>(ii) The aggregate modified adjusted gross income of all other individuals who—</P>
            <P>(A) Are included in the taxpayer's family under paragraph (d) of this section; and</P>
            <P>(B) Are required to file a return of tax imposed by section 1 for the taxable year (determined without regard to the exception under section (1)(g)(7) to the requirement to file a return).</P>
            <P>(2)<E T="03">Modified adjusted gross income.</E>Modified adjusted gross income means adjusted gross income (within the meaning of section 62) increased by—</P>
            <P>(i) Amounts excluded from gross income under section 911;</P>
            <P>(ii) Tax-exempt interest the taxpayer receives or accrues during the taxable year; and</P>

            <P>(iii) Social security benefits (within the meaning of section 86(d)) not included in gross income under section 86.<PRTPAGE P="30387"/>
            </P>
            <P>(f)<E T="03">Dependent.</E>Dependent has the same meaning as in section 152.</P>
            <P>(g)<E T="03">Lawfully present.</E>Lawfully present has the same meaning as in 45 CFR 155.20.</P>
            <P>(h)<E T="03">Federal poverty line.</E>The Federal poverty line means the most recently published poverty guidelines (updated periodically in the<E T="04">Federal Register</E>by the Secretary of Health and Human Services under the authority of 42 U.S.C. 9902(2)) as of the first day of the regular enrollment period for coverage by a qualified health plan offered through an Exchange for a calendar year. Thus, the Federal poverty line for computing the premium tax credit for a taxable year is the Federal poverty line in effect on the first day of the initial or annual open enrollment period preceding that taxable year. See 45 CFR 155.410. If a taxpayer's primary residence changes during a taxable year from one state to a state with different Federal poverty guidelines or married taxpayers reside in separate states with different Federal poverty guidelines (for example, Alaska or Hawaii and another state), the Federal poverty line that applies for purposes of section 36B and the associated regulations is the higher Federal poverty guideline (resulting in a lower percentage of the Federal poverty line for the taxpayers' household income and family size).</P>
            <P>(i) [Reserved]</P>
            <P>(j)<E T="03">Advance credit payment.</E>Advance credit payment means an advance payment of the premium tax credit as provided in section 1412 of the Affordable Care Act (42 U.S.C. 18082).</P>
            <P>(k)<E T="03">Exchange.</E>Exchange has the same meaning as in 45 CFR 155.20.</P>
            <P>(l)<E T="03">Self-only coverage.</E>Self-only coverage means health insurance that covers one individual.</P>
            <P>(m)<E T="03">Family coverage.</E>Family coverage means health insurance that covers more than one individual.</P>
            <P>(n)<E T="03">Rating area.</E>[Reserved]</P>
            <P>(o)<E T="03">Effective/applicability date.</E>This section and §§ 1.36B-2 through 1.36B-5 apply for taxable years ending after December 31, 2013.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 1.36B-2</SECTNO>
            <SUBJECT>Eligibility for premium tax credit.</SUBJECT>
            <P>(a)<E T="03">In general.</E>An applicable taxpayer (within the meaning of paragraph (b) of this section) is allowed a premium assistance amount only for any month that one or more members of the applicable taxpayer's family (the applicable taxpayer or the applicable taxpayer's spouse or dependent)—</P>
            <P>(1) Is enrolled in one or more qualified health plans through an Exchange; and</P>
            <P>(2) Is not eligible for minimum essential coverage (within the meaning of paragraph (c) of this section) other than coverage described in section 5000A(f)(1)(C) (relating to coverage in the individual market).</P>
            <P>(b)<E T="03">Applicable taxpayer</E>—(1)<E T="03">In general.</E>Except as otherwise provided in this paragraph (b), an applicable taxpayer is a taxpayer whose household income is at least 100 percent but not more than 400 percent of the Federal poverty line for the taxpayer's family size for the taxable year.</P>
            <P>(2)<E T="03">Married taxpayers must file joint return.</E>A taxpayer who is married (within the meaning of section 7703) at the close of the taxable year is an applicable taxpayer only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year.</P>
            <P>(3)<E T="03">Dependents.</E>An individual is not an applicable taxpayer if another taxpayer may claim a deduction under section 151 for the individual for a taxable year beginning in the calendar year in which the individual's taxable year begins.</P>
            <P>(4)<E T="03">Individuals not lawfully present or incarcerated.</E>An individual who is not lawfully present in the United States or is incarcerated (other than incarceration pending disposition of charges) is not eligible to enroll in a qualified health plan through an Exchange. However, the individual may be an applicable taxpayer if a family member is eligible to enroll in a qualified health plan. See sections 1312(f)(1)(B) and 1312(f)(3) of the Affordable Care Act (42 U.S.C. 18032(f)(1)(B) and (f)(3)) and § 1.36B-3(b)(2).</P>
            <P>(5)<E T="03">Individuals lawfully present.</E>If a taxpayer's household income is less than 100 percent of the Federal poverty line for the taxpayer's family size and the taxpayer or a member of the taxpayer's family is an alien lawfully present in the United States, the taxpayer is treated as an applicable taxpayer if—</P>
            <P>(i) The lawfully present taxpayer or family member is not eligible for the Medicaid program; and</P>
            <P>(ii) The taxpayer would be an applicable taxpayer if the taxpayer's household income for the taxable year was between 100 and 400 percent of the Federal poverty line for the taxpayer's family size.</P>
            <P>(6)<E T="03">Special rule for taxpayers with household income below 100 percent of the Federal poverty line for the taxable year.</E>A taxpayer (other than a taxpayer described in paragraph (b)(5) of this section) whose household income for a taxable year is less than 100 percent of the Federal poverty line for the taxpayer's family size is treated as an applicable taxpayer if—</P>
            <P>(i) The taxpayer or a family member enrolls in a qualified health plan through an Exchange;</P>
            <P>(ii) An Exchange estimates at the time of enrollment that the taxpayer's household income will be between 100 and 400 percent of the Federal poverty line for the taxable year;</P>
            <P>(iii) Advance credit payments are authorized and paid for one or more months during the taxable year; and</P>
            <P>(iv) The taxpayer would be an applicable taxpayer if the taxpayer's household income for the taxable year was between 100 and 400 percent of the Federal poverty line for the taxpayer's family size.</P>
            <P>(7)<E T="03">Computation of premium assistance amounts for taxpayers with household income below 100 percent of the Federal poverty line.</E>If a taxpayer is treated as an applicable taxpayer under paragraph (b)(5) or (b)(6) of this section, the taxpayer's actual household income for the taxable year is used to compute the premium assistance amounts under § 1.36B-3(d).</P>
            <P>(c)<E T="03">Minimum essential coverage</E>—(1)<E T="03">In general.</E>Minimum essential coverage is defined in section 5000A(f) and regulations issued under that section. As described in section 5000A(f), government-sponsored programs, eligible employer-sponsored plans, grandfathered health plans, and certain other health benefits coverage are minimum essential coverage.</P>
            <P>(2)<E T="03">Government-sponsored minimum essential coverage</E>—(i)<E T="03">In general.</E>An individual is eligible for government-sponsored minimum essential coverage if the individual meets the criteria for coverage under a government-sponsored program described in section 5000A(f)(1)(A) as of the first day of the first full month the individual may receive benefits under the program, subject to the limitation in paragraph (c)(2)(ii) of this section. The Commissioner may define eligibility for specific government-sponsored programs further in additional published guidance, see § 601.601(d)(2) of this chapter.</P>
            <P>(ii)<E T="03">Obligation to complete administrative requirements to obtain coverage.</E>An individual who meets the criteria for eligibility for government-sponsored minimum essential coverage must complete the requirements necessary to receive benefits. An individual who fails by the last day of the third full calendar month following the event that establishes eligibility under paragraph (c)(2)(i) of this section to complete the requirements to obtain government-sponsored minimum essential coverage (other than a veteran's health care program) is treated<PRTPAGE P="30388"/>as eligible for government-sponsored minimum essential coverage as of the first day of the fourth calendar month following the event that establishes eligibility.</P>
            <P>(iii)<E T="03">Special rule for coverage for veterans and other individuals under chapter 17 or 18 of Title 38, U.S.C.</E>An individual is eligible for minimum essential coverage under a health care program under chapter 17 or 18 of Title 38, U.S.C. only if the individual is enrolled in a health care program under chapter 17 or 18 of Title 38, U.S.C. identified as minimum essential coverage in regulations issued under section 5000A.</P>
            <P>(iv)<E T="03">Retroactive effect of eligibility determination.</E>If an individual receiving advance credit payments is determined to be eligible for government-sponsored minimum essential coverage that is effective retroactively (such as Medicaid), the individual is treated as eligible for minimum essential coverage under that program no earlier than the first day of the first calendar month beginning after the approval.</P>
            <P>(v)<E T="03">Determination of Medicaid or Children's Health Insurance Program (CHIP) ineligibility.</E>An individual is treated as not eligible for Medicaid, CHIP, or a similar program for a period of coverage under a qualified health plan if, when the individual enrolls in the qualified health plan, an Exchange determines or considers (within the meaning of 45 CFR 155.302(b)) the individual to be not eligible for Medicaid or CHIP.</P>
            <P>(vi)<E T="03">Examples.</E>The following examples illustrate the provisions of this paragraph (c)(2):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>
                <E T="03">Delay in coverage effectiveness.</E>On April 10, 2015, Taxpayer D applies for coverage under a government-sponsored health care program. D's application is approved on July 12, 2015, but her coverage is not effective until September 1, 2015. Under paragraph (c)(2)(i) of this section, D is eligible for government-sponsored minimum essential coverage on September 1, 2015.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>
                <E T="03">Time of eligibility.</E>Taxpayer E turns 65 on June 3, 2015, and becomes eligible for Medicare. Under section 5000A(f)(1)(A)(i), Medicare is minimum essential coverage. However, E must enroll in Medicare to receive benefits. E enrolls in Medicare in September, which is the last month of E's initial enrollment period. Thus, E may receive Medicare benefits on December 1, 2015. Because E completed the requirements necessary to receive Medicare benefits by the last day of the third full calendar month after the event that establishes E's eligibility (E turning 65), under paragraph (c)(2)(i) and (c)(2)(ii) of this section E is eligible for government-sponsored minimum essential coverage on December 1, 2015, the first day of the first full month that E may receive benefits under the program.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>
                <E T="03">Time of eligibility, individual fails to complete necessary requirements.</E>The facts are the same as in<E T="03">Example 2,</E>except that E fails to enroll in the Medicare coverage during E's initial enrollment period. E is treated as eligible for government-sponsored minimum essential coverage under paragraph (c)(2)(ii) of this section as of October 1, 2015, the first day of the fourth month following the event that establishes E's eligibility (E turning 65).</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 4.</HD>
              <P>
                <E T="03">Retroactive effect of eligibility.</E>In November 2014, Taxpayer F enrolls in a qualified health plan for 2015 and receives advance credit payments. F loses her part-time employment and on April 10, 2015 applies for coverage under the Medicaid program. F's application is approved on May 15, 2015, and her Medicaid coverage is effective as of April 1, 2015. Under paragraph (c)(2)(iv) of this section, F is eligible for government-sponsored minimum essential coverage on June 1, 2015, the first day of the first calendar month after approval.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 5.</HD>
              <P>
                <E T="03">Determination of Medicaid ineligibility.</E>In November 2014, Taxpayer G applies through the Exchange to enroll in health coverage for 2015. The Exchange determines that G is not eligible for Medicaid and estimates that G's household income will be 140 percent of the Federal poverty line for G's family size for purposes of determining advance credit payments. G enrolls in a qualified health plan and begins receiving advance credit payments. G experiences a reduction in household income during the year and his household income for 2015 is 130 percent of the Federal poverty line (within the Medicaid income threshold). However, under paragraph (c)(2)(v) of this section, G is treated as not eligible for Medicaid for 2015.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 6.</HD>
              <P>
                <E T="03">Mid-year Medicaid eligibility redetermination.</E>The facts are the same as in<E T="03">Example 5,</E>except that G returns to the Exchange in July 2015 and the Exchange determines that G is eligible for Medicaid. Medicaid approves G for coverage and the Exchange discontinues G's advance credit payments effective August 1. Under paragraphs (c)(2)(iv) and (c)(2)(v) of this section, G is treated as not eligible for Medicaid for the months when G is covered by a qualified health plan. G is eligible for government-sponsored minimum essential coverage for the months after G is approved for Medicaid and can receive benefits, August through December 2015.</P>
            </EXAMPLE>
            
            <P>(3)<E T="03">Employer-sponsored minimum essential coverage</E>—(i)<E T="03">In general.</E>For purposes of section 36B, an employee who may enroll in an eligible employer-sponsored plan (as defined in section 5000A(f)(2)) and an individual who may enroll in the plan because of a relationship to the employee (a related individual) are eligible for minimum essential coverage under the plan for any month only if the plan is affordable and provides minimum value. Government-sponsored programs described in section 5000A(f)(1)(A) are not eligible employer-sponsored plans.</P>
            <P>(ii)<E T="03">Plan year.</E>For purposes of this paragraph (c)(3), a plan year is an eligible employer-sponsored plan's regular 12-month coverage period (or the remainder of a 12-month coverage period for a new employee or an individual who enrolls during a special enrollment period).</P>
            <P>(iii)<E T="03">Eligibility for months during a plan year</E>—(A)<E T="03">Failure to enroll in plan.</E>An employee or related individual may be eligible for minimum essential coverage under an eligible employer-sponsored plan for a month during a plan year if the employee or related individual could have enrolled in the plan for that month during an open or special enrollment period.</P>
            <P>(B)<E T="03">Waiting periods.</E>An employee or related individual is not eligible for minimum essential coverage under an eligible employer-sponsored plan during a required waiting period before the coverage becomes effective.</P>
            <P>(C)<E T="03">Example.</E>The following example illustrates the provisions of this paragraph (c)(3)(iii):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example.</HD>
              <P>(i) Taxpayer B is an employee of Employer X. X offers its employees a health insurance plan that has a plan year (within the meaning of paragraph (c)(3)(ii) of this section) from October 1 through September 30. Employees may enroll during an open season from August 1 to September 15. B does not enroll in X's plan for the plan year October 1, 2014, to September 30, 2015. In November 2014, B enrolls in a qualified health plan through an Exchange for calendar year 2015.</P>
              <P>(ii) B could have enrolled in X's plan during the August 1 to September 15 enrollment period. Therefore, unless X's plan is not affordable for B or does not provide minimum value, B is eligible for minimum essential coverage under X's plan for the months that B is enrolled in the qualified health plan during X's plan year (January through September 2015).</P>
            </EXAMPLE>
            
            <P>(iv)<E T="03">Continuation coverage.</E>An individual who may enroll in continuation coverage required under Federal law or a State law that provides comparable continuation coverage is eligible for minimum essential coverage only for months that the individual is enrolled in the coverage.</P>
            <P>(v)<E T="03">Affordable coverage</E>—(A)<E T="03">In general</E>—(<E T="03">1</E>)<E T="03">Affordability for employee.</E>Except as provided in paragraph (c)(3)(v)(A)(<E T="03">3</E>) of this section, an eligible employer-sponsored plan is affordable for an employee if the portion of the annual premium the employee must pay, whether by salary reduction or otherwise (required contribution), for self-only coverage does not exceed the required contribution percentage (as defined in paragraph (c)(3)(v)(C) of this section) of the applicable taxpayer's household income for the taxable year.<PRTPAGE P="30389"/>
            </P>
            <P>(<E T="03">2</E>)<E T="03">Affordability for related individual.</E>[Reserved]</P>
            <P>(<E T="03">3</E>)<E T="03">Employee safe harbor.</E>An employer-sponsored plan is not affordable for an employee or a related individual for a plan year if, when the employee or a related individual enrolls in a qualified health plan for a period coinciding with the plan year (in whole or in part), an Exchange determines that the eligible employer-sponsored plan is not affordable for that plan year. This paragraph (c)(3)(v)(A)(<E T="03">3</E>) does not apply to a determination made as part of the redetermination process described in 45 CFR 155.335 unless the individual receiving an Exchange redetermination notification affirmatively responds and provides current information on affordability. This paragraph (c)(3)(v)(A)(<E T="03">3</E>) does not apply for an individual who, with reckless disregard for the facts, provides incorrect information to an Exchange concerning the portion of the annual premium for coverage for the employee or related individual under the plan.</P>
            <P>(<E T="03">4</E>)<E T="03">Wellness incentives and employer contributions to health reimbursement arrangements.</E>The Commissioner may provide rules in published guidance, see § 601.601(d)(2) of this chapter, for determining how wellness incentives and amounts made available under a health reimbursement arrangement are treated in determining the affordability of eligible employer-sponsored coverage under this paragraph (c)(3)(v).</P>
            <P>(B)<E T="03">Affordability for part-year period.</E>Affordability under paragraph (c)(3)(v)(A) of this section is determined separately for each employment period that is less than a full calendar year or for the portions of an employer's plan year that fall in different taxable years of an applicable taxpayer (a part-year period). An eligible employer-sponsored plan is affordable for a part-year period if the employee's annualized required contribution for self-only coverage under the plan for the part-year period does not exceed the required contribution percentage of the applicable taxpayer's household income for the taxable year. The employee's annualized required contribution is the employee's required contribution for the part-year period times a fraction, the numerator of which is 12 and the denominator of which is the number of months in the part-year period during the applicable taxpayer's taxable year. Only full calendar months are included in the computation under this paragraph (c)(3)(v)(B).</P>
            <P>(C)<E T="03">Required contribution percentage.</E>The required contribution percentage is 9.5 percent. The percentage may be adjusted in published guidance, see § 601.601(d)(2) of this chapter, for taxable years beginning after December 31, 2014, to reflect rates of premium growth relative to growth in income and, for taxable years beginning after December 31, 2018, to reflect rates of premium growth relative to growth in the consumer price index.</P>
            <P>(D)<E T="03">Examples.</E>The following examples illustrate the provisions of this paragraph (c)(3)(v). Unless stated otherwise, in each example the taxpayer is single and has no dependents, the employer's plan is an eligible employer-sponsored plan and provides minimum value, the employee is not eligible for other minimum essential coverage, and the taxpayer, related individual, and employer-sponsored plan have a calendar taxable year:</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>
                <E T="03">Basic determination of affordability.</E>In 2014 Taxpayer C has household income of $47,000. C is an employee of Employer X, which offers its employees a health insurance plan that requires C to contribute $3,450 for self-only coverage for 2014 (7.3 percent of C's household income). Because C's required contribution for self-only coverage does not exceed 9.5 percent of household income, under paragraph (c)(3)(v)(A)(<E T="03">1</E>) of this section, X's plan is affordable for C, and C is eligible for minimum essential coverage for all months in 2014.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>
                <E T="03">Basic determination of affordability for a related individual.</E>[Reserved]</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>
                <E T="03">Determination of unaffordability at enrollment.</E>(i) Taxpayer D is an employee of Employer X. In November 2013 the Exchange for D's rating area projects that D's 2014 household income will be $37,000. It also verifies that D's required contribution for self-only coverage under X's health insurance plan will be $3,700 (10 percent of household income). Consequently, the Exchange determines that X's plan is unaffordable. D enrolls in a qualified health plan and not in X's plan. In December 2014, X pays D a $2,500 bonus. Thus, D's actual 2014 household income is $39,500 and D's required contribution for coverage under X's plan is 9.4 percent of D's household income.</P>

              <P>(ii) Based on D's actual 2014 household income, D's required contribution does not exceed 9.5 percent of household income and X's health plan is affordable for D. However, when D enrolled in a qualified health plan for 2014, the Exchange determined that X's plan was not affordable for D for 2014. Consequently, under paragraph (c)(3)(v)(A)(<E T="03">3</E>) of this section, X's plan is not affordable for D and D is not eligible for minimum essential coverage under X's plan for 2014.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 4.</HD>
              <P>
                <E T="03">Determination of unaffordability for plan year.</E>The facts are the same as in<E T="03">Example 3,</E>except that X's employee health insurance plan year is September 1 to August 31. The Exchange for D's rating area determines in August 2014 that X's plan is unaffordable for D based on D's projected household income for 2014. D enrolls in a qualified health plan as of September 1, 2014. Under paragraph (c)(3)(v)(A)(<E T="03">3</E>) of this section, X's plan is not affordable for D and D is not eligible for minimum essential coverage under X's plan for the coverage months September to December 2014 and January through August 2015.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 5.</HD>
              <P>
                <E T="03">No affordability information affirmatively provided for annual redetermination.</E>(i) The facts are the same as in<E T="03">Example 3,</E>except the Exchange redetermines D's eligibility for advance credit payments for 2015. D does not affirmatively provide the Exchange with current information regarding affordability and the Exchange determines that D's coverage is not affordable for 2015 and approves advance credit payments based on information from the previous enrollment period. In 2015, D's required contribution for coverage under X's plan is 9.4 percent of D's household income.</P>

              <P>(ii) Because D does not respond to the Exchange notification and the Exchange makes an affordability determination based on information from an earlier year, the employee safe harbor in paragraph (c)(3)(v)(A)(<E T="03">3</E>) of this section does not apply. D's required contribution for 2015 does not exceed 9.5 percent of D's household income. Thus, X's plan is affordable for D for 2015 and D is eligible for minimum essential coverage for all months in 2015.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 6.</HD>
              <P>
                <E T="03">Determination of unaffordability for part of plan year (part-year period).</E>(i) Taxpayer E is an employee of Employer X beginning in May 2015. X's employee health insurance plan year is September 1 to August 31. E's required contribution for self-only coverage for May through August is $150 per month ($1,800 for the full plan year). The Exchange for E's rating area projects E's household income for purposes of eligibility for advance credit payments as $18,000. E's actual household income for the 2015 taxable year is $20,000.</P>

              <P>(ii) Under paragraph (c)(3)(v)(B) of this section, whether coverage under X's plan is affordable for E is determined for the remainder of X's plan year (May through August). E's required contribution for a full plan year ($1,800) exceeds 9.5 percent of E's household income (1,800/18,000 = 10 percent). Therefore, the Exchange determines that X's coverage is unaffordable for May through August. Although E's actual household income for 2015 is $20,000 (and E's required contribution of $1,800 does not exceed 9.5 percent of E's household income), under paragraph (c)(3)(v)(A)(<E T="03">3</E>) of this section, X's plan is unaffordable for E for the part of the plan year May through August 2015. Consequently, E is not eligible for minimum essential coverage under X's plan for the period May through August 2015.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 7.</HD>
              <P>
                <E T="03">Affordability determined for part of a taxable year (part-year period).</E>(i) Taxpayer F is an employee of Employer X. X's employee health insurance plan year is September 1 to August 31. F's required contribution for self-only coverage for the period September 2014 through August 2015 is $150 per month or $1,800 for the plan year. F does not enroll in X's plan during X's open season but enrolls in a qualified health plan for September through December 2014. F does not request advance credit payments and does not ask the Exchange for his rating<PRTPAGE P="30390"/>area to determine whether X's coverage is affordable for F. F's household income in 2014 is $18,000.</P>
              <P>(ii) Because F is a calendar year taxpayer and Employer X's plan is not a calendar year plan, F must determine the affordability of X's coverage for the part-year period in 2014 (September-December) under paragraph (c)(3)(v)(B) of this section. F determines the affordability of X's plan for the September through December 2014 period by comparing the annual premiums ($1,800) to F's 2014 household income. F's required contribution of $1,800 is 10 percent of F's 2014 household income. Because F's required contribution exceeds 9.5 percent of F's 2014 household income, X's plan is not affordable for F for the part-year period September through December 2014 and F is not eligible for minimum essential coverage under X's plan for that period.</P>
              <P>(iii) F enrolls in Exchange coverage for 2015 and does not ask the Exchange to approve advance credit payments or determine whether X's coverage is affordable. F's 2015 household income is $20,000.</P>
              <P>(iv) F must determine if X's plan is affordable for the part-year period January 2015 through August 2015. F's annual required contribution ($1,800) is 9 percent of F's 2015 household income. Because F's required contribution does not exceed 9.5 percent of F's 2015 household income, X's plan is affordable for F for the part-year period January through August 2015 and F is eligible for minimum essential coverage for that period.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 8</HD>
              <P>
                <E T="03">Coverage unaffordable at year end.</E>Taxpayer G is employed by Employer X. In November 2014, the Exchange for G's rating area determines that G is eligible for affordable employer-sponsored coverage for 2015. G nonetheless enrolls in a qualified health plan for 2015 but does not receive advance credit payments. G's 2015 household income is less than expected and G's required contribution for employer-sponsored coverage for 2015 exceeds 9.5 percent of G's actual 2015 household income. Under paragraph (c)(3)(v)(A)(<E T="03">1</E>) of this section, G is not eligible for minimum essential coverage under X's plan for 2015.</P>
            </EXAMPLE>
            
            <P>(vi)<E T="03">Minimum value.</E>An eligible employer-sponsored plan provides minimum value only if the plan's share of the total allowed costs of benefits provided to the employee under the plan (as determined under guidance issued by the Secretary of Health and Human Services under section 1302(d)(2) of the Affordable Care Act (42 U.S.C. 18022(d)(2))) is at least 60 percent.</P>
            <P>(vii)<E T="03">Enrollment in eligible employer-sponsored plan</E>—(A)<E T="03">In general.</E>Except as provided in paragraph (c)(3)(vii)(B) of this section, the requirements of affordability and minimum value do not apply for months that an individual is enrolled in an eligible employer-sponsored plan.</P>
            <P>(B)<E T="03">Automatic enrollment.</E>An employee or related individual is treated as not enrolled in an eligible employer-sponsored plan for a month in a plan year or other period for which the employee or related individual is automatically enrolled if the employee or related individual terminates the coverage before the later of the first day of the second full calendar month of that plan year or other period or the last day of any permissible opt-out period provided by the employer-sponsored plan or in regulations to be issued by the Department of Labor, for that plan year or other period.</P>
            <P>(C)<E T="03">Examples.</E>The following examples illustrate the provisions of this paragraph (c)(3)(vii):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>Taxpayer H is employed by Employer X in 2014. H's required contribution for self-only employer coverage exceeds 9.5 percent of H's 2014 household income. H enrolls in X's calendar year plan for 2014. Under paragraph (c)(3)(vii)(A) of this section, H is eligible for minimum essential coverage for 2014 because H is enrolled in an eligible employer-sponsored plan for 2014.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>The facts are the same as in<E T="03">Example 1,</E>except that H terminates plan coverage on June 30, 2014. Under paragraph (c)(3)(vii)(A) of this section, H is eligible for minimum essential coverage under X's plan for January through June 2014 but is not eligible for minimum essential coverage under X's plan for July through December 2014.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>The facts are the same as in<E T="03">Example 1,</E>except that Employer X automatically enrolls H in the plan for calendar year 2015. H terminates the coverage on January 20, 2015. Under paragraph (c)(3)(vii)(B) of this section, H is not eligible for minimum essential coverage under X's plan for January 2015.</P>
            </EXAMPLE>
            
            <P>(4)<E T="03">Related individual not claimed as a personal exemption deduction.</E>An individual who may enroll in minimum essential coverage because of a relationship to another person eligible for the coverage, but for whom the other eligible person does not claim a personal exemption deduction under section 151, is treated as eligible for minimum essential coverage under the coverage only for months that the related individual is enrolled in the coverage.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 1.36B-3</SECTNO>
            <SUBJECT>Computing the premium assistance credit amount.</SUBJECT>
            <P>(a)<E T="03">In general.</E>A taxpayer's premium assistance credit amount for a taxable year is the sum of the premium assistance amounts determined under paragraph (d) of this section for all coverage months for individuals in the taxpayer's family.</P>
            <P>(b)<E T="03">Definitions.</E>For purposes of this section—</P>
            <P>(1) The cost of a qualified health plan is the premium the plan charges; and</P>
            <P>(2) The term<E T="03">coverage family</E>refers to members of the taxpayer's family who enroll in a qualified health plan and are not eligible for minimum essential coverage (other than coverage in the individual market).</P>
            <P>(c)<E T="03">Coverage month</E>—(1)<E T="03">In general.</E>A month is a coverage month for an individual if—</P>
            <P>(i) As of the first day of the month, the individual is enrolled in a qualified health plan through an Exchange;</P>
            <P>(ii) The taxpayer pays the taxpayer's share of the premium for the individual's coverage under the plan for the month by the unextended due date for filing the taxpayer's income tax return for that taxable year, or the full premium for the month is paid by advance credit payments; and</P>
            <P>(iii) The individual is not eligible for the full calendar month for minimum essential coverage (within the meaning of § 1.36B-2(c)) other than coverage described in section 5000A(f)(1)(C) (relating to coverage in the individual market).</P>
            <P>(2)<E T="03">Premiums paid for a taxpayer.</E>Premiums another person pays for coverage of the taxpayer, taxpayer's spouse, or dependent are treated as paid by the taxpayer.</P>
            <P>(3)<E T="03">Examples.</E>The following examples illustrate the provisions of this paragraph (c):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>(i) Taxpayer M is single with no dependents. In December 2013, M enrolls in a qualified health plan for 2014 and the Exchange approves advance credit payments. M pays M's share of the premiums. On May 15, 2014, M enlists in the U.S. Army and is eligible immediately for government-sponsored minimum essential coverage.</P>
              <P>(ii) Under paragraph (c)(1) of this section, January through May 2014 are coverage months for M. June through December 2014 are not coverage months because M is eligible for minimum essential coverage for those months. Thus, under paragraph (a) of this section, M's premium assistance credit amount for 2014 is the sum of the premium assistance amounts for the months January through May.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>(i) Taxpayer N has one dependent, S. S is eligible for government-sponsored minimum essential coverage. N is not eligible for minimum essential coverage. N enrolls in a qualified health plan for 2014 and the Exchange approves advance credit payments. On August 1, 2014, S loses eligibility for minimum essential coverage. N terminates enrollment in the qualified health plan that covers only N and enrolls in a qualified health plan that covers N and S for August through December 2014. N pays all premiums not covered by advance credit payments.</P>

              <P>(ii) Under paragraph (c)(1) of this section, January through December of 2014 are coverage months for N and August through December are coverage months for N and S. N's premium assistance credit amount for<PRTPAGE P="30391"/>2014 is the sum of the premium assistance amounts for these coverage months.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>(i) O and P are the divorced parents of T. Under the divorce agreement between O and P, T resides with P and P claims T as a dependent. However, O must pay premiums for health insurance for T. P enrolls T in a qualified health plan for 2014. O pays the portion of T's qualified health plan premiums not covered by advance credit payments.</P>
              <P>(ii) Because P claims T as a dependent, P (and not O) may claim a premium tax credit for coverage for T. See § 1.36B-2(a). Under paragraph (c)(2) of this section, the premiums that O pays for coverage for T are treated as paid by P. Thus, the months when T is covered by a qualified health plan and not eligible for other minimum essential coverage are coverage months under paragraph (c)(1) of this section in computing P's premium tax credit under paragraph (a) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 4.</HD>
              <P>Q, an American Indian, enrolls in a qualified health plan for 2014. Q's tribe pays the portion of Q's qualified health plan premiums not covered by advance credit payments. Under paragraph (c)(2) of this section, the premiums that Q's tribe pays for Q are treated as paid by Q. Thus, the months when Q is covered by a qualified health plan and not eligible for other minimum essential coverage are coverage months under paragraph (c)(1) of this section in computing Q's premium tax credit under paragraph (a) of this section.</P>
            </EXAMPLE>
            
            <P>(d)<E T="03">Premium assistance amount.</E>The premium assistance amount for a coverage month is the lesser of—</P>
            <P>(1) The premiums for the month for one or more qualified health plans in which a taxpayer or a member of the taxpayer's family enrolls; or</P>
            <P>(2) The excess of the adjusted monthly premium for the applicable benchmark plan over 1/12 of the product of a taxpayer's household income and the applicable percentage for the taxable year.</P>
            <P>(e)<E T="03">Adjusted monthly premium.</E>The adjusted monthly premium is the premium an issuer would charge for the applicable benchmark plan to cover all members of the taxpayer's coverage family, adjusted only for the age of each member of the coverage family as allowed under section 2701 of the Public Health Service Act (42 U.S.C. 300gg). The adjusted monthly premium is determined without regard to any premium discount or rebate under the wellness discount demonstration project under section 2705(d) of the Public Health Service Act (42 U.S.C. 300gg-4(d)) and may not include any adjustments for tobacco use.</P>
            <P>(f)<E T="03">Applicable benchmark plan</E>—(1)<E T="03">In general.</E>Except as otherwise provided in this paragraph (f), the applicable benchmark plan for each coverage month is the second lowest cost silver plan (as described in section 1302(d)(1)(B) of the Affordable Care Act (42 U.S.C. 18022(d)(1)(B))) offered through the Exchange for the rating area where the taxpayer resides for—</P>
            <P>(i) Self-only coverage for a taxpayer—</P>
            <P>(A) Who computes tax under section 1(c) (unmarried individuals other than surviving spouses and heads of household) and is not allowed a deduction under section 151 for a dependent for the taxable year;</P>
            <P>(B) Who purchases only self-only coverage for one individual; or</P>
            <P>(C) Whose coverage family includes only one individual; and</P>
            <P>(ii) Family coverage for all other taxpayers.</P>
            <P>(2)<E T="03">Family coverage.</E>The applicable benchmark plan for family coverage is the second lowest cost silver plan that applies to the members of the taxpayer's coverage family (such as a plan covering two adults if the members of a taxpayer's coverage family are two adults).</P>
            <P>(3)<E T="03">Silver level plan not covering a taxpayer's family.</E>If one or more silver level plans for family coverage offered through an Exchange do not cover all members of a taxpayer's coverage family under one policy (for example, because of the relationships within the family), the premium for the applicable benchmark plan determined under paragraphs (f)(1) and (f)(2) of this section may be the premium for a single policy or for more than one policy, whichever is the second lowest cost silver option.</P>
            <P>(4)<E T="03">Family members residing at different locations.</E>[Reserved]</P>
            <P>(5)<E T="03">Plan closed to enrollment.</E>A qualified health plan that is not open to enrollment by a taxpayer or family member at the time the taxpayer or family member enrolls in a qualified health plan is disregarded in determining the applicable benchmark plan.</P>
            <P>(6)<E T="03">Benchmark plan terminates or closes to enrollment during the year.</E>A qualified health plan that is the applicable benchmark plan under this paragraph (f) for a taxpayer does not cease to be the applicable benchmark plan solely because the plan or a lower cost plan terminates or closes to enrollment during the taxable year.</P>
            <P>(7)<E T="03">Examples.</E>The following examples illustrate the rules of this paragraph (f). Unless otherwise stated, in each example the plans are open to enrollment to a taxpayer or family member at the time of enrollment and are offered through the Exchange for the rating area where the taxpayer resides:</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>
                <E T="03">Single taxpayer enrolls.</E>Taxpayer M is single, has no dependents and enrolls in a qualified health plan. Under paragraph (f)(1)(i) of this section, M's applicable benchmark plan is the second lowest cost silver plan providing self-only coverage for M.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>
                <E T="03">Family enrolls.</E>The facts are the same as in<E T="03">Example 1,</E>except that M, her spouse N, and their dependent enroll in a qualified health plan. Under paragraphs (f)(1)(ii) and (f)(2) of this section, M's and N's applicable benchmark plan is the second lowest cost silver plan covering M, N, and their dependent.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>
                <E T="03">Single taxpayer enrolls with nondependent.</E>Taxpayer O is single and resides with his daughter, K, but may not claim K as a dependent. O purchases family coverage for himself and K. Under paragraphs (f)(1)(i)(A) and (f)(1)(i)(C) of this section, O's applicable benchmark plan is the second lowest cost silver plan providing self-only coverage for O. However, K may qualify for a premium tax credit if K is otherwise eligible. See paragraph (h) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 4.</HD>
              <P>
                <E T="03">Single taxpayer enrolls with dependent and nondependent.</E>The facts are the same as in<E T="03">Example 3,</E>except that O also resides with his teenage son, L, and claims L as a dependent. O purchases family coverage for himself, K, and L. Under paragraphs (f)(1)(ii) and (f)(2) of this section, O's applicable benchmark plan is the second lowest cost silver plan covering O and L.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 5.</HD>
              <P>
                <E T="03">Children only enroll.</E>The facts are the same as in<E T="03">Example 4,</E>except that O enrolls only K and L in the coverage. Under paragraph (f)(1)(i)(C) of this section, O's applicable benchmark plan is the second lowest cost silver plan providing self-only coverage for L.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 6.</HD>
              <P>
                <E T="03">Applicable benchmark plan unrelated to coverage purchased.</E>Taxpayers P and Q, who are married, reside with Q's two teenage daughters, M and N, whom they claim as dependents. P and Q purchase self-only coverage for P and family coverage for Q, M, and N. Under paragraphs (f)(1)(ii) and (f)(2) of this section, P's and Q's applicable benchmark plan is the second lowest cost silver plan covering P, Q, M, and N.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 7.</HD>
              <P>
                <E T="03">Change in coverage family.</E>Taxpayer R is single and has no dependents when she enrolls in a qualified health plan for 2014. On August 1, 2014, R has a child, O, whom she claims as a dependent for 2014. R enrolls in a qualified health plan covering R and O effective August 1. Under paragraph (f)(1)(i) of this section, R's applicable benchmark plan for January through July is the second lowest cost silver plan providing self-only coverage for R. Under paragraphs (f)(1)(ii) and (f)(2) of this section, R's applicable benchmark plan for the months August through December is the second lowest cost silver plan covering R and O</P>
            </EXAMPLE>.<EXAMPLE>
              <HD SOURCE="HED">Example 8.</HD>
              <P>
                <E T="03">Minimum essential coverage for some coverage months.</E>Taxpayer S claims his daughter, P, as a dependent. S and P enroll in a qualified health plan for 2014. S, but not P, is eligible for government-sponsored minimum essential coverage for September to December 2014. Thus, under paragraph (c)(1)(iii) of this section, January through December are coverage months for P and January through August are coverage months for S. Because, under paragraphs (d) and (f)(1) of this section, the premium assistance amount for a coverage month is<PRTPAGE P="30392"/>computed based on the applicable benchmark plan for that coverage month, S's applicable benchmark plan for January through August is the second lowest cost silver plan under paragraphs (f)(1)(ii) and (f)(2) of this section covering S and P. Under paragraph (f)(1)(i)(C) of this section, S's applicable benchmark plan for September through December is the second lowest cost silver plan providing self-only coverage for P.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 9.</HD>
              <P>
                <E T="03">Family member eligible for minimum essential coverage for the taxable year.</E>The facts are the same as in<E T="03">Example 8,</E>except that S is not eligible for government-sponsored minimum essential coverage for any months and P is eligible for government-sponsored minimum essential coverage for the entire year. Under paragraph (f)(1)(i)(C) of this section, S's applicable benchmark plan is the second lowest cost silver plan providing self-only coverage for S.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 10.</HD>
              <P>
                <E T="03">Qualified health plans not covering certain families.</E>(i) Taxpayers V and W are married and live with W's mother, K, whom they claim as a dependent. The Exchange for their rating area offers self-only and family coverage at the silver level through Issuers A, B, and C, who each offer only one silver level plan. Issuers A and B respectively charge V and W a monthly premium of $900 and $700 for family coverage, but do not allow individuals to enroll a parent in family coverage. Issuers A and B respectively charge $600 and $400 for self-only coverage for K. Issuer C offers a qualified health plan that provides family coverage for V, W, and K under one policy for a $1,200 monthly premium. Thus, the Exchange offers the following silver level options for covering V's and W's coverage family:</P>
              <P>Issuer A: $1,500 for premiums for two policies ($900 for V and W, $600 for K)</P>
              <P>Issuer B: $1,100 for premiums for two policies ($700 for V and W, $400 for K)</P>
              <P>Issuer C: $1,200 for premiums for one policy ($1,200 for V, W, and K)</P>
              <P>(ii) Because some silver level qualified health plans for family coverage offered on the Exchange do not cover all members of their coverage family under one policy, under paragraph (f)(3) of this section, the premium for V's and W's applicable benchmark plan may be the premium for a single policy or for more than one policy. The coverage offered by Issuer C is the second lowest cost silver level option for covering V's and W's family. The premium for their applicable benchmark plan is the premium for the Issuer C coverage.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 11.</HD>
              <P>(i) The facts are the same as in<E T="03">Example 10,</E>except that Issuer B covers V, W, and K under one policy for a premium of $1,100, and Issuer C does not allow individuals to enroll parents in family coverage. Issuer C charges a monthly premium of $700 for family coverage for V and W and a monthly premium of $500 for self-only coverage for K. Thus, the Exchange offers the following silver level options for covering V's and W's coverage family:</P>
              <P>Issuer A: $1,500 for premiums for two policies ($900 for V and W, $600 for K)</P>
              <P>Issuer B: $1,100 for premiums for one policy ($1,100 for V, W, and K)</P>
              <P>Issuer C: $1,200 for premiums for two policies ($700 for V and W, $500 for K)</P>
              <P>(ii) The coverage offered by Issuer C is the second lowest cost silver level option for covering V's and W's family. The premium for their applicable benchmark plan is the premiums for the two policies available through Issuer C.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 12.</HD>
              <P>
                <E T="03">Family members residing in different locations.</E>[Reserved]</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 13.</HD>
              <P>
                <E T="03">Qualified health plan closed to enrollment.</E>Taxpayer Y has two dependents, R and S. Y, R, and S enroll in a qualified health plan. The Exchange for the rating area where the family resides offers silver level plans J, K, L, and M, which are the first, second, third, and fourth lowest cost silver plans covering Y's family. When Y's family enrolls, Plan J is closed to enrollment. Under paragraph (f)(5) of this section, Plan J is disregarded in determining Y's applicable benchmark plan, and Plan L is Y's applicable benchmark plan.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 14.</HD>
              <P>
                <E T="03">Benchmark plan closes to new enrollees during the year.</E>(i) Taxpayers X, Y, and Z each have coverage families consisting of two adults. In the rating area where X, Y, and Z reside, Plan 2 is the second lowest cost silver plan and Plan 3 is the third lowest cost silver plan covering the two adults in each coverage family offered through the Exchange. The X and Y families each enroll in a qualified health plan that is not the applicable benchmark plan (Plan 4) in November during the annual open enrollment period. Plan 2 closes to new enrollees the following June. Thus, on July 1, Plan 3 is the second lowest cost silver plan available to new enrollees through the Exchange. The Z family enrolls in a qualified health plan in July.</P>
              <P>(ii) Under paragraphs (f)(1), (f)(2), and (f)(6) of this section, the applicable benchmark plan is Plan 2 for X and Y for all coverage months during the year. The applicable benchmark plan for Z is Plan 3, because Plan 2 is not open to enrollment through the Exchange when the Z family enrolls.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 15.</HD>
              <P>
                <E T="03">Benchmark plan terminates for all enrollees during the year.</E>The facts are the same as in<E T="03">Example 14,</E>except that Plan 2 terminates for all enrollees on June 30. Under paragraphs (f)(1), (f)(2), and (f)(6) of this section, Plan 2 is the applicable benchmark plan for X and Y for all coverage months during the year, and Plan 3 is the applicable benchmark plan for Z.</P>
            </EXAMPLE>
            
            <P>(g)<E T="03">Applicable percentage</E>—(1)<E T="03">In general.</E>The applicable percentage multiplied by a taxpayer's household income determines the taxpayer's required share of premiums for the benchmark plan. This required share is subtracted from the adjusted monthly premium for the applicable benchmark plan when computing the premium assistance amount. The applicable percentage is computed by first determining the percentage that the taxpayer's household income bears to the Federal poverty line for the taxpayer's family size. The resulting Federal poverty line percentage is then compared to the income categories described in the table in paragraph (g)(2) of this section (or successor tables). An applicable percentage within an income category increases on a sliding scale in a linear manner and is rounded to the nearest one-hundredth of one percent. The applicable percentages in the table may be adjusted in published guidance, see § 601.601(d)(2) of this chapter, for taxable years beginning after December 31, 2014, to reflect rates of premium growth relative to growth in income and, for taxable years beginning after December 31, 2018, to reflect rates of premium growth relative to growth in the consumer price index.</P>
            <P>(2)<E T="03">Applicable percentage table.</E>
            </P>
            <GPOTABLE CDEF="s100,10.2,10.2" COLS="3" OPTS="L2,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Household income percentage of Federal poverty line</CHED>
                <CHED H="1">Initial<LI>percentage</LI>
                </CHED>
                <CHED H="1">Final<LI>percentage</LI>
                </CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">Less than 133%</ENT>
                <ENT>2.0</ENT>
                <ENT>2.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 133% but less than 150%</ENT>
                <ENT>3.0</ENT>
                <ENT>4.0</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 150% but less than 200%</ENT>
                <ENT>4.0</ENT>
                <ENT>6.3</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 200% but less than 250%</ENT>
                <ENT>6.3</ENT>
                <ENT>8.05</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 250% but less than 300%</ENT>
                <ENT>8.05</ENT>
                <ENT>9.5</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 300% but less than 400%</ENT>
                <ENT>9.5</ENT>
                <ENT>9.5</ENT>
              </ROW>
            </GPOTABLE>
            <P>(3)<E T="03">Examples.</E>The following examples illustrate the rules of this paragraph (g):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>

              <P>A's household income is 275 percent of the federal poverty line for A's family size for that taxable year. In the table in paragraph (g)(2) of this section, the initial percentage for a taxpayer with household income of 250 to 300 percent of the Federal poverty line is 8.05 and the final percentage is 9.5. A's Federal poverty line percentage of<PRTPAGE P="30393"/>275 percent is halfway between 250 percent and 300 percent. Thus, rounded to the nearest one-hundredth of one percent, A's applicable percentage is 8.78, which is halfway between the initial percentage of 8.05 and the final percentage of 9.5.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>(i) B's household income is 210 percent of the Federal poverty line for B's family size. In the table in paragraph (g)(2) of this section, the initial percentage for a taxpayer with household income of 200 to 250 percent of the Federal poverty line is 6.3 and the final percentage is 8.05. B's applicable percentage is 6.65, computed as follows.</P>
              <P>(ii) Determine the excess of B's Federal poverty line percentage (210) over the initial household income percentage in B's range (200), which is 10. Determine the difference between the initial household income percentage in the taxpayer's range (200) and the ending household income percentage in the taxpayer's range (250), which is 50. Divide the first amount by the second amount:</P>
              <FP SOURCE="FP-2">210−200 = 10</FP>
              <FP SOURCE="FP-2">250−200 = 50</FP>
              <FP SOURCE="FP-2">10/50 = .20.</FP>
            </EXAMPLE>
            
            <EXTRACT>
              <P>(iii) Compute the difference between the initial premium percentage (6.3) and the second premium percentage (8.05) in the taxpayer's range; 8.05−6.3 = 1.75.</P>
              <P>(iv) Multiply the amount in the first calculation (.20) by the amount in the second calculation (1.75) and add the product (.35) to the initial premium percentage in B's range (6.3), resulting in B's applicable percentage of 6.65:</P>
              
              <FP SOURCE="FP-2">.20 × 1.75 = .35</FP>
              <FP SOURCE="FP-2">6.3 + .35 = 6.65.</FP>
            </EXTRACT>
            
            <P>(h)<E T="03">Plan covering more than one family</E>—(1)<E T="03">In general.</E>If a qualified health plan covers more than one family under a single policy, each applicable taxpayer covered by the plan may claim a premium tax credit, if otherwise allowable. Each taxpayer computes the credit using that taxpayer's applicable percentage, household income, and the benchmark plan that applies to the taxpayer under paragraph (f) of this section. In determining whether the amount computed under paragraph (d)(1) of this section (the premiums for the qualified health plan in which the taxpayer enrolls) is less than the amount computed under paragraph (d)(2) of this section (the benchmark plan premium minus the product of household income and the applicable percentage), the premiums paid are allocated to each taxpayer in proportion to the premiums for each taxpayer's applicable benchmark plan.</P>
            <P>(2)<E T="03">Example.</E>The following example illustrates the rules of this paragraph (h):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example.</HD>
              <P>(i) Taxpayers A and B enroll in a single policy under a qualified health plan. B is A's 25-year old child who is not A's dependent. B has no dependents. The plan covers A, B, and A's two additional children who are A's dependents. The premium for the plan in which A and B enroll is $15,000. The premium for the second lowest cost silver family plan covering only A and A's dependents is $12,000 and the premium for the second lowest cost silver plan providing self-only coverage to B is $6,000. A and B are applicable taxpayers and otherwise eligible to claim the premium tax credit.</P>
              <P>(ii) Under paragraph (h)(1) of this section, both A and B may claim premium tax credits. A computes her credit using her household income, a family size of three, and a benchmark plan premium of $12,000. B computes his credit using his household income, a family size of one, and a benchmark plan premium of $6,000.</P>
              <P>(iii) In determining whether the amount in paragraph (d)(1) of this section (the premiums for the qualified health plan A and B purchase) is less than the amount in paragraph (d)(2) of this section (the benchmark plan premium minus the product of household income and the applicable percentage), the $15,000 premiums paid are allocated to A and B in proportion to the premiums for their applicable benchmark plans. Thus, the portion of the premium allocated to A is $10,000 ($15,000 × $12,000/$18,000) and the portion allocated to B is $5,000 ($15,000 × $6,000/$18,000).</P>
            </EXAMPLE>
            
            <P>(i) [Reserved]</P>
            <P>(j)<E T="03">Additional benefits</E>—(1)<E T="03">In general.</E>If a qualified health plan offers benefits in addition to the essential health benefits a qualified health plan must provide under section 1302 of the Affordable Care Act (42 U.S.C. 18022), or a State requires a qualified health plan to cover benefits in addition to these essential health benefits, the portion of the premium for the plan properly allocable to the additional benefits is excluded from the monthly premiums under paragraph (d)(1) or (d)(2) of this section.</P>
            <P>(2)<E T="03">Method of allocation.</E>The portion of the premium properly allocable to additional benefits is determined under guidance issued by the Secretary of Health and Human Services. See section 36B(b)(3)(D).</P>
            <P>(3)<E T="03">Examples.</E>The following examples illustrate the rules of this paragraph (j):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>(i) Taxpayer B enrolls in a qualified health plan that provides benefits in addition to the essential health benefits the plan must provide (additional benefits). The monthly premium for the plan in which B enrolls is $385 (Amount 1), of which $35 is allocable to the additional benefits. The premium for B's applicable benchmark plan is $440, of which $40 is allocable to the additional benefits. The excess of the premium for B's applicable benchmark plan over B's $60 contribution amount (which is the product of B's household income and the applicable percentage) is $380 per month (Amount 2).</P>
              <P>(ii) Under this paragraph (j), the premium for the qualified health plan in which B enrolls and the applicable benchmark premium each is reduced by the portion of the premium that is allocable to the additional benefits provided under that plan. Therefore, Amount 1 is reduced to $350 ($385−$35), the premium for B's applicable benchmark plan is reduced to $400 ($440−$40), and Amount 2 is reduced to $340 ($400 less $60). B's premium assistance amount for a coverage month is $340, the lesser of Amount 1 and Amount 2.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>(i) The facts are the same as in<E T="03">Example 1,</E>except that B's applicable benchmark plan provides no benefits in addition to the essential health benefits required to be provided by the plan. Thus, under paragraph (j) of this section, only the amount of the monthly premium for the plan in which B enrolls is reduced by the portion of the premium that is allocable to the additional benefits provided under that plan, and Amount 1 is $350 ($385−$35). The premium for B's applicable benchmark plan is not reduced under this paragraph (j), and Amount 2 is $380 ($440−$60). B's premium assistance amount for a coverage month is $350, the lesser of these two amounts.</P>
            </EXAMPLE>
            
            <P>(k)<E T="03">Pediatric dental coverage</E>—(1)<E T="03">In general.</E>For purposes of determining the amount of the monthly premium a taxpayer pays for coverage under paragraph (d)(1) of this section, if an individual enrolls in both a qualified health plan and a plan described in section 1311(d)(2)(B)(ii) of the Affordable Care Act (42 U.S.C. 13031(d)(2)(B)(ii)) (a stand-alone dental plan), the portion of the premium for the stand-alone dental plan that is properly allocable to pediatric dental benefits that are essential benefits required to be provided by a qualified health plan is treated as a premium payable for the individual's qualified health plan.</P>
            <P>(2)<E T="03">Method of allocation.</E>The portion of the premium for a stand-alone dental plan properly allocable to pediatric dental benefits is determined under guidance issued by the Secretary of Health and Human Services.</P>
            <P>(3)<E T="03">Example.</E>The following example illustrates the rules of this paragraph (k):</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example.</HD>
              <P>(i) Taxpayer C and C's dependent, R, enroll in a qualified health plan. The premium for the plan in which C and R enroll is $7,200 ($600/month) (Amount 1). The plan does not provide dental coverage. C also enrolls in a stand-alone dental plan covering C and R. The portion of the premium for the dental plan allocable to pediatric dental benefits that are essential health benefits is $240 ($20 per month). The excess of the premium for C's applicable benchmark plan over C's contribution amount (the product of C's household income and the applicable percentage) is $7,260 ($605/month) (Amount 2).</P>

              <P>(ii) Under this paragraph (k), the amount C pays for premiums (Amount 1) for purposes of computing the premium assistance amount is increased by the portion of the premium for the stand-alone dental plan allocable to pediatric dental benefits that are essential<PRTPAGE P="30394"/>health benefits. Thus, the amount of the premiums for the plan in which C enrolls is treated as $620 for purposes of computing the amount of the premium tax credit. C's premium assistance amount for each coverage month is $605 (Amount 2), the lesser of Amount 1 (increased by the premiums allocable to pediatric dental benefits) and Amount 2.</P>
            </EXAMPLE>
            
            <P>(l)<E T="03">Families including individuals not lawfully present</E>—(1)<E T="03">In general.</E>If one or more individuals for whom a taxpayer is allowed a deduction under section 151 are not lawfully present (within the meaning of § 1.36B-1(g)), the percentage a taxpayer's household income bears to the Federal poverty line for the taxpayer's family size for purposes of determining the applicable percentage under paragraph (g) of this section is determined by excluding individuals who are not lawfully present from family size and by determining household income in accordance with paragraph (l)(2) of this section.</P>
            <P>(2)<E T="03">Revised household income computation</E>—(i)<E T="03">Statutory method.</E>For purposes of paragraph (l)(1) of this section, household income is equal to the product of the taxpayer's household income (determined without regard to this paragraph (l)(2)) and a fraction—</P>
            <P>(A) The numerator of which is the Federal poverty line for the taxpayer's family size determined by excluding individuals who are not lawfully present; and</P>
            <P>(B) The denominator of which is the Federal poverty line for the taxpayer's family size determined by including individuals who are not lawfully present.</P>
            <P>(ii)<E T="03">Comparable method.</E>The Commissioner may describe a comparable method in additional published guidance, see § 601.601(d)(2) of this chapter.</P>
          </SECTION>
          <SECTION>
            <SECTNO>§ 1.36B-4</SECTNO>
            <SUBJECT>Reconciling the premium tax credit with advance credit payments.</SUBJECT>
            <P>(a)<E T="03">Reconciliation</E>—(1)<E T="03">Coordination of premium tax credit with advance credit payments</E>—(i)<E T="03">In general.</E>A taxpayer must reconcile the amount of credit allowed under section 36B with advance credit payments on the taxpayer's income tax return for a taxable year. A taxpayer whose premium tax credit for the taxable year exceeds the taxpayer's advance credit payments may receive the excess as an income tax refund. A taxpayer whose advance credit payments for the taxable year exceed the taxpayer's premium tax credit owes the excess as an additional income tax liability.</P>
            <P>(ii)<E T="03">Responsibility for advance credit payments.</E>A taxpayer must reconcile all advance credit payments for coverage of any member of the taxpayer's family. If advance credit payments are made for coverage of an individual for whom no taxpayer claims a personal exemption deduction, the taxpayer who attests to the Exchange to the intention to claim a personal exemption deduction for the individual as part of the determination that the taxpayer is eligible for advance credit payments for coverage of the individual must reconcile the advance credit payments.</P>
            <P>(iii)<E T="03">Advance credit payment for a month in which an issuer does not provide coverage.</E>For purposes of reconciliation, a taxpayer does not have an advance credit payment for a month if the issuer of the qualified health plan in which the taxpayer or a family member is enrolled does not provide coverage for that month.</P>
            <P>(2)<E T="03">Credit computation.</E>The premium assistance credit amount is computed on the taxpayer's return using the taxpayer's household income and family size for the taxable year. Thus, the taxpayer's contribution amount (household income for the taxable year times the applicable percentage) is determined using the taxpayer's household income and family size at the end of the taxable year. The applicable benchmark plan for each coverage month is determined under § 1.36B-3(f).</P>
            <P>(3)<E T="03">Limitation on additional tax</E>—(i)<E T="03">In general.</E>The additional tax imposed under paragraph (a)(1) of this section on a taxpayer whose household income is less than 400 percent of the Federal poverty line is limited to the amounts provided in the table in paragraph (a)(3)(ii) of this section (or successor tables). For taxable years beginning after December 31, 2014, the limitation amounts may be adjusted in published guidance, see § 601.601(d)(2) of this chapter, to reflect changes in the consumer price index.</P>
            <P>(ii)<E T="03">Additional tax limitation table.</E>
            </P>
            <GPOTABLE CDEF="s100,20,20" COLS="3" OPTS="L2,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Household income percentage of Federal poverty line</CHED>
                <CHED H="1">Limitation amount for taxpayers whose tax is determined under<LI>section 1(c)</LI>
                </CHED>
                <CHED H="1">Limitation amount for all other taxpayers</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">Less than 200%</ENT>
                <ENT>$300</ENT>
                <ENT>$600</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 200% but less than 300%</ENT>
                <ENT>750</ENT>
                <ENT>1,500</ENT>
              </ROW>
              <ROW>
                <ENT I="01">At least 300% but less than 400%</ENT>
                <ENT>1,250</ENT>
                <ENT>2,500</ENT>
              </ROW>
            </GPOTABLE>
            <P>(4)<E T="03">Examples.</E>The following examples illustrate the rules of this paragraph (a). In each example the taxpayer enrolls in a higher cost qualified health plan than the applicable benchmark plan:</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>
                <E T="03">Household income increases.</E>(i) Taxpayer A is single and has no dependents. The Exchange for A's rating area projects A's 2014 household income to be $27,925 (250 percent of the Federal poverty line for a family of one, applicable percentage 8.05). A enrolls in a qualified health plan. The annual premium for the applicable benchmark plan is $5,200. A's advance credit payments are $2,952, computed as follows: benchmark plan premium of $5,200 less contribution amount of $2,248 (projected household income of $27,925 × .0805) = $2,952.</P>
              <P>(ii) A's household income for 2014 is $33,622, which is 301 percent of the Federal poverty line for a family of one (applicable percentage 9.5). Consequently, A's premium tax credit for 2014 is $2,006 (benchmark plan premium of $5,200 less contribution amount of $3,194 (household income of $33,622 × .095)). Because A's advance credit payments for 2014 are $2,952 and A's 2014 credit is $2,006, A has excess advance payments of $946. Under paragraph (a)(1) of this section, A's tax liability for 2014 is increased by $946. Because A's household income is between 300 percent and 400 percent of the Federal poverty line, if A's excess advance payments exceeded $1,250, under the limitation of paragraph (a)(3) of this section, A's additional tax liability would be limited to that amount.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>
                <E T="03">Household income increases, repayment limitation applies.</E>The facts are the same as in<E T="03">Example 1,</E>except that A's household income for 2014 is $43,560 (390 percent of the Federal poverty line for a family of one, applicable percentage 9.5). Consequently, A's premium tax credit for 2014 is $1,062 ($5,200 benchmark plan premium less contribution amount of $4,138 (household income of $43,560 × .095)). A's advance credit payments for 2014 are $2,952; therefore, A has excess advance payments of $1,890. Because A's household income is between 300 percent and 400 percent of the Federal poverty line, A's additional tax liability for the taxable year is $1,250 under the repayment limitation of paragraph (a)(3) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>
                <E T="03">Household income decreases.</E>The facts are the same as in<E T="03">Example 1,</E>except that A's actual household income for 2014 is $22,340 (200 percent of the Federal poverty line for a family of one, applicable<PRTPAGE P="30395"/>percentage 6.3). Consequently, A's premium tax credit for 2014 is $3,793 ($5,200 benchmark plan premium less contribution amount of $1,407 (household income of $22,340 × .063)). Because A's advance credit payments for 2014 are $2,952, A is allowed an additional credit of $841 ($3,793 less $2,952).</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 4.</HD>
              <P>
                <E T="03">Family size decreases.</E>(i) Taxpayers B and C are married and have two children, K and L (ages 17 and 20), whom they claim as their dependents in 2013. The Exchange for their rating area projects their 2014 household income to be $63,388 (275 percent of the Federal poverty line for a family of four, applicable percentage 8.78). B and C enroll in a qualified health plan for 2014 that covers the four family members. The annual premium for the applicable benchmark plan is $14,100. B's and C's advance credit payments for 2014 are $8,535, computed as follows: benchmark plan premium of $14,100 less contribution amount of $5,565 (projected household income of $63,388 × .0878) = $8,535.</P>
              <P>(ii) In 2014, B and C do not claim L as their dependent. Consequently, B's and C's family size for 2014 is three, their household income of $63,388 is 332 percent of the Federal poverty line for a family of three (applicable percentage 9.5), and the annual premium for their applicable benchmark plan is $12,000. Their premium tax credit for 2014 is $5,978 ($12,000 benchmark plan premium less $6,022 contribution amount (household income of $63,388 × .095)). Because B's and C's advance credit payments for 2014 are $8,535 and their 2014 credit is $5,978, B and C have excess advance payments of $2,557. B's and C's additional tax liability for 2014 under paragraph (a)(1) of this section, however, is limited to $2,500 under paragraph (a)(3) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 5.</HD>
              <P>
                <E T="03">Repayment limitation does not apply.</E>(i) Taxpayer D is single and has no dependents. The Exchange for D's rating area approves advance credit payments for D based on 2014 household income of $39,095 (350 percent of the Federal poverty line for a family of one, applicable percentage 9.5). D enrolls in a qualified health plan. The annual premium for the applicable benchmark plan is $5,200. D's advance credit payments are $1,486, computed as follows: benchmark plan premium of $5,200 less contribution amount of $3,714 (projected household income of $39,095 × .095) = $1,486.</P>
              <P>(ii) D's actual household income for 2014 is $44,903, which is 402 percent of the Federal poverty line for a family of one. D is not an applicable taxpayer and may not claim a premium tax credit. Additionally, the repayment limitation of paragraph (a)(3) of this section does not apply. Consequently, D has excess advance payments of $1,486 (the total amount of the advance credit payments in 2014). Under paragraph (a)(1) of this section, D's tax liability for 2014 is increased by $1,486.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 6.</HD>
              <P>
                <E T="03">Coverage for less than a full taxable year.</E>(i) Taxpayer F is single and has no dependents. In November 2013, the Exchange for F's rating area projects F's 2014 household income to be $27,925 (250 percent of the Federal poverty line for a family of one, applicable percentage 8.05). F enrolls in a qualified health plan. The annual premium for the applicable benchmark plan is $5,200. F's monthly advance credit payment is $246, computed as follows: benchmark plan premium of $5,200 less contribution amount of $2,248 (projected household income of $27,925 × .0805) = $2,952; $2,952/12 = $246.</P>
              <P>(ii) F begins a new job in August 2014 and is eligible for employer-sponsored minimum essential coverage for the period September through December 2014. F discontinues her Exchange coverage effective November 1, 2014. F's household income for 2014 is $28,707 (257 percent of the Federal poverty line for a family size of one, applicable percentage 8.25).</P>
              <P>(iii) Under § 1.36B-3(a), F's premium assistance credit amount is the sum of the premium assistance amounts for the coverage months. Under § 1.36B-3(c)(1)(iii), a month in which an individual is eligible for minimum essential coverage other than coverage in the individual market is not a coverage month. Because F is eligible for employer-sponsored minimum essential coverage as of September 1, only the months January through August of 2014 are coverage months.</P>
              <P>(iv) If F had 12 coverage months in 2014, F's premium tax credit would be $2,832 (benchmark plan premium of $5,200 less contribution amount of $2,368 (household income of $28,707 × .0825)). Because F has only eight coverage months in 2014, F's credit is $1,888 ($2,832/12 × 8). Because F does not discontinue her Exchange coverage until November 1, 2014, F's advance credit payments for 2014 are $2,460 ($246 × 10). Consequently, F has excess advance payments of $572 ($2,460 less $1,888) and F's tax liability for 2014 is increased by $572 under paragraph (a)(1) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 7.</HD>
              <P>
                <E T="03">Changes in coverage months and applicable benchmark plan.</E>(i) Taxpayer E claims one dependent, F. E is eligible for government-sponsored minimum essential coverage. E enrolls F in a qualified health plan for 2014. The Exchange for E's rating area projects E's 2014 household income to be $30,260 (200 percent of the Federal poverty line for a family of two, applicable percentage 6.3). The annual premium for E's applicable benchmark plan is $5,200. E's monthly advance credit payment is $275, computed as follows: benchmark plan premium of $5,200 less contribution amount of $1,906 (projected household income of $30,260 × .063) = $3,294; $3,294/12 = $275.</P>
              <P>(ii) On August 1, 2014, E loses her eligibility for government-sponsored minimum essential coverage. E enrolls in the qualified health plan that covers F for August through December 2014. The annual premium for the applicable benchmark plan is $10,000. The Exchange computes E's monthly advance credit payments for the period September through December to be $675 as follows: benchmark plan premium of $10,000 less contribution amount of $1,906 (projected household income of $30,260 × .063) = $8,094; $8,094/12 = $675. E's household income for 2014 is $28,747 (190 percent of the Federal poverty line, applicable percentage 5.84).</P>
              <P>(iii) Under § 1.36B-3(c)(1), January through July of 2014 are coverage months for F and August through December are coverage months for E and F. Under paragraph (a)(2) of this section, E must compute her premium tax credit using the premium for the applicable benchmark plan for each coverage month. E's premium assistance credit amount for 2014 is the sum of the premium assistance amounts for all coverage months. E reconciles her premium tax credit with advance credit payments as follows:</P>
              <GPOTABLE CDEF="s50,12,xs100" COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1"/>
                  <CHED H="1"/>
                </BOXHD>
                <ROW>
                  <ENT I="01">Advance credit payments (Jan. to July)</ENT>
                  <ENT>$1,925</ENT>
                  <ENT>($275 × 7)</ENT>
                </ROW>
                <ROW RUL="n,s,n">
                  <ENT I="01">Advance credit payments (Aug. to Dec.)</ENT>
                  <ENT>3,375</ENT>
                  <ENT>($675 × 5)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total advance credit payments</ENT>
                  <ENT>5,300</ENT>
                </ROW>
                
                <ROW>
                  <ENT I="01">Benchmark plan premium (Jan. to July)</ENT>
                  <ENT>3,033</ENT>
                  <ENT>(($5,200/12) × 7)</ENT>
                </ROW>
                <ROW RUL="n,s,n">
                  <ENT I="01">Benchmark plan premium (Aug. to Dec.)</ENT>
                  <ENT>4,167</ENT>
                  <ENT>(($10,000/12) × 5)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total benchmark plan premium</ENT>
                  <ENT>7,200</ENT>
                </ROW>
                <ROW RUL="n,s,n">
                  <ENT I="01">Contribution amount (taxable year household income × applicable percentage)</ENT>
                  <ENT>1,679</ENT>
                  <ENT>($28,747 × .0584)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Credit (total benchmark plan premium less contribution amount)</ENT>
                  <ENT>5,521</ENT>
                </ROW>
              </GPOTABLE>
              <P>(iv) E's advance credit payments for 2014 are $5,300. E's premium tax credit is $5,521. Thus, E is allowed an additional credit of $221.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 8.</HD>
              <P>
                <E T="03">Part-year coverage and changes in coverage months and applicable benchmark plan.</E>(i) The facts are the same as in<E T="03">Example 7,</E>except that F is eligible for government-sponsored minimum essential coverage for January and February 2014, and E enrolls F in a qualified health plan beginning in March 2014. Thus, March through July are coverage months for F and August through December are coverage months for E and F.</P>

              <P>(ii) E reconciles her premium tax credit with advance credit payments as follows:<PRTPAGE P="30396"/>
              </P>
              <GPOTABLE CDEF="s50,12,xs100" COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1"/>
                </BOXHD>
                <ROW>
                  <ENT I="01">Advance credit payments (March to July)</ENT>
                  <ENT>$1,375</ENT>
                  <ENT>($275 × 5)</ENT>
                </ROW>
                <ROW RUL="n,s,n">
                  <ENT I="01">Advance credit payments (Aug. to Dec.)</ENT>
                  <ENT>3,375</ENT>
                  <ENT>($675 × 5)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total advance credit payments</ENT>
                  <ENT>4,750</ENT>
                </ROW>
                
                <ROW>
                  <ENT I="01">Benchmark plan premium (March to July)</ENT>
                  <ENT>2,167</ENT>
                  <ENT>(($5,200/12) × 5)</ENT>
                </ROW>
                <ROW RUL="n,s,n">
                  <ENT I="01">Benchmark plan premium (Aug. to Dec.)</ENT>
                  <ENT>4,167</ENT>
                  <ENT>(($10,000/12) × 5)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total benchmark plan premium</ENT>
                  <ENT>6,334</ENT>
                </ROW>
                <ROW RUL="n,s,n">
                  <ENT I="01">Contribution amount for 10 coverage months (taxable year household income × applicable percentage × 10/12)</ENT>
                  <ENT>1,399</ENT>
                  <ENT>($28,747 × .0584 × 10/12)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Credit (total benchmark plan premium less contribution amount)</ENT>
                  <ENT>4,935</ENT>
                </ROW>
              </GPOTABLE>
              <P>(iii) E's advance credit payments for 2014 are $4,750. E's premium tax credit is $4,935. Thus, E is allowed an additional credit of $185.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 9.</HD>
              <P>
                <E T="03">Advance credit payments for months an issuer does not provide coverage.</E>(i) Taxpayer F enrolls in a qualified health plan for 2014 and the Exchange approves advance credit payments. F pays the portion of the premium not covered by advance credit payments for January through April of 2014 but fails to make payments in May, June, and July. As a result, the issuer of the qualified health plan initiates the 3-month grace period under section 1412(c)(2)(B)(iv)(II) of the Affordable Care Act and 45 CFR 156.270(d). During the grace period the issuer continues to receive advance credit payments on behalf of F. On July 1 the issuer rescinds F's coverage retroactive to the end of the first month of the grace period, May 31.</P>
              <P>(ii) Under paragraph (a)(1)(iii) of this section, F does not take into account advance credit payments for June or July of 2014 when reconciling the premium tax credit with advance credit payments under paragraph (a)(1) of this section.</P>
            </EXAMPLE>
            
            <P>(b)<E T="03">Changes in filing status</E>—(1)<E T="03">In general.</E>Except as provided in paragraph (b)(2) or (b)(3) of this section, a taxpayer whose marital status changes during the taxable year computes the premium tax credit by using the applicable benchmark plan or plans for the taxpayer's marital status as of the first day of each coverage month. The taxpayer's contribution amount (household income for the taxable year times the applicable percentage) is determined using the taxpayer's household income and family size at the end of the taxable year.</P>
            <P>(2)<E T="03">Taxpayers who marry during the taxable year</E>—(i)<E T="03">In general.</E>Taxpayers who marry during and file a joint return for the taxable year may compute the additional tax imposed under paragraph (a)(1) of this section under paragraph (b)(2)(ii) of this section. Only taxpayers who are unmarried at the beginning of the taxable year and are married (within the meaning of section 7703) at the end of the taxable year, at least one of whom receives advance credit payments, may use this alternative computation.</P>
            <P>(ii)<E T="03">Alternative computation of additional tax liability</E>—(A)<E T="03">In general.</E>The additional tax liability determined under this paragraph (b)(2)(ii) is equal to the excess of the taxpayers' advance credit payments for the taxable year over the amount of the alternative marriage-year credit. The alternative marriage-year credit is the sum of both taxpayers' alternative premium assistance amounts for the pre-marriage months and the premium assistance amounts for the marriage months. This paragraph (b)(2)(ii) may not be used to increase the additional premium tax credit computed under paragraph (a)(1)(i) of this section.</P>
            <P>(B)<E T="03">Alternative premium assistance amounts for pre-marriage months.</E>Taxpayers compute the alternative premium assistance amounts for each taxpayer for each full or partial month the taxpayers are unmarried as described in paragraph (a)(2) of this section, except that each taxpayer treats the amount of household income as one-half of the actual household income for the taxable year and treats family size as the number of individuals in the taxpayer's family prior to the marriage. The taxpayers may include a dependent of the taxpayers for the taxable year in either taxpayer's family size for the pre-marriage months.</P>
            <P>(C)<E T="03">Premium assistance amounts for marriage months.</E>Taxpayers compute the premium assistance amounts for each full month the taxpayers are married as described in paragraph (a)(2) of this section.</P>
            <P>(3)<E T="03">Taxpayers not married to each other at the end of the taxable year.</E>Taxpayers who are married (within the meaning of section 7703) to each other during a taxable year but are not married to each other on the last day of the taxable year, and who are enrolled in the same qualified health plan at any time during the taxable year, must allocate the premium for the applicable benchmark plan, the premium for the plan in which the taxpayers enroll, and the advance credit payments for the period the taxpayers are married during the taxable year. The taxpayers may allocate these items to each former spouse in any proportion but must allocate all items in the same proportion. If the taxpayers cannot agree on an allocation, 50 percent of the premium for the applicable benchmark plan, the premiums for the plan in which the taxpayers enroll, and the advance credit payments for the married period are allocated to each taxpayer. If a plan covers only one of these taxpayers for any period during a taxable year, the amounts for that period are allocated entirely to that taxpayer.</P>
            <P>(4)<E T="03">Married taxpayers filing separate returns.</E>The premium tax credit is allowed to married (within the meaning of section 7703) taxpayers only if they file joint returns. See § 1.36B-2(b)(2). A married taxpayer who receives advance credit payments and files an income tax return as married filing separately has received excess advance payments. Taxpayers who receive advance credit payments as married taxpayers and do not file a joint return must allocate the advance credit payments equally to each taxpayer. The repayment limitation described in paragraph (a)(3) of this section applies to each taxpayer based on the household income and family size reported on that taxpayer's return.</P>
            <P>(5)<E T="03">Taxpayers filing returns as head of household and married filing separately.</E>If taxpayers enroll in one qualified health plan and receive advance credit payments based on a filing status of married filing a joint tax return, and one taxpayer properly files a tax return as head of household and the other taxpayer files a tax return as married filing separately for that taxable year, advance credit payments are allocated to each taxpayer equally for any period the taxpayers are enrolled in the same qualified health plan.</P>
            <P>(6)<E T="03">Examples.</E>The following examples illustrate the provisions of this paragraph (b). In each example the taxpayer enrolls in a higher cost qualified health plan than the applicable benchmark plan:</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 1.</HD>
              <P>
                <E T="03">Taxpayers marry during the taxable year, general rule for computing additional tax.</E>(i) P is a single taxpayer with no dependents. In 2013 the Exchange for the rating area where P resides determines that P's 2014 household income will be $40,000 (358 percent of the Federal poverty line,<PRTPAGE P="30397"/>applicable percentage 9.5). P enrolls in a qualified health plan. The premium for the applicable benchmark plan is $5,200. P's monthly advance credit payment is $117, computed as follows: $5,200 benchmark plan premium minus contribution amount of $3,800 ($40,000 × .095) equals $1,400 (total advance credit payment); $1,400/12 = $117.</P>
              <P>(ii) Q is a single taxpayer with two dependents. In 2013 the Exchange for the rating area where Q resides determines that Q's 2014 household income will be $35,000 (183 percent of the Federal poverty line, applicable percentage 5.52). Q enrolls in a qualified health plan. The premium for the applicable benchmark plan is $10,000. Q's monthly advance credit payment is $672, computed as follows: $10,000 benchmark plan premium minus contribution amount of $1,932 ($35,000 × .0552) equals $8,068 (total advance credit); $8,068/12 = $672.</P>
              <P>(iii) P and Q marry on July 17, 2014 and enroll in a single policy for a qualified health plan covering four family members, effective August 1, 2014. The premium for the applicable benchmark plan is $14,000. Based on household income of $75,000 and a family size of four (325 percent of the Federal poverty line, applicable percentage 9.5), the Exchange approves advance credit payments of $573 per month, computed as follows: $14,000 benchmark plan premium minus contribution amount of $7,125 ($75,000 × .095) equals $6,875 (total advance credit); $6,875/12 = $573.</P>
              <P>(iv) P and Q file a joint return for 2014 and report $75,000 in household income and a family size of four. P and Q compute their credit at reconciliation under paragraph (b)(1) of this section. They use the premiums for the applicable benchmark plans that apply for the months married and the months not married, and their contribution amount is based on their Federal poverty line percentage at the end of the taxable year. P and Q reconcile their premium tax credit with advance credit payments as follows:</P>
              <GPOTABLE CDEF="s200,12" COLS="2" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1"/>
                </BOXHD>
                <ROW>
                  <ENT I="01">Advance payments for P (Jan. to July)</ENT>
                  <ENT>$819</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Advance payments for Q (Jan. to July)</ENT>
                  <ENT>4,704</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Advance payments for P and Q (Aug. to Dec.)</ENT>
                  <ENT>2,865</ENT>
                </ROW>
                <ROW RUL="n,d">
                  <ENT I="03">Total advance payments</ENT>
                  <ENT>8,388</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Benchmark plan premium for P (Jan. to July)</ENT>
                  <ENT>3,033</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Benchmark plan premium for Q (Jan. to July)</ENT>
                  <ENT>5,833</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Benchmark plan premium for P and Q (Aug. to Dec.)</ENT>
                  <ENT>5,833</ENT>
                </ROW>
                <ROW RUL="n,d">
                  <ENT I="03">Total benchmark plan premium</ENT>
                  <ENT>14,699</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Contribution amount (taxable year household income × applicable percentage)</ENT>
                  <ENT>7,125</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Credit (total benchmark plan premium less contribution amount)</ENT>
                  <ENT>7,574</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Additional tax</ENT>
                  <ENT>814</ENT>
                </ROW>
              </GPOTABLE>
              <P>(v) P's and Q's tax liability for 2014 is increased by $814 under paragraph (a)(1) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 2.</HD>
              <P>
                <E T="03">Taxpayers marry during the taxable year, alternative computation of additional tax.</E>(i) The facts are the same as in<E T="03">Example 1,</E>except that P and Q compute their additional tax liability under paragraph (b)(2)(ii) of this section. P's and Q's additional tax is the excess of their advance credit payments for the taxable year ($8,388) over their alternative marriage-year credit, which is the sum of the alternative premium assistance amounts for the pre-marriage months and the premium assistance amounts for the marriage months.</P>
            </EXAMPLE>
            
            <P>(ii) P and Q compute the alternative marriage-year credit as follows:</P>
            <GPOTABLE CDEF="s50,12,xs100" COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1"/>
                <CHED H="1"/>
              </BOXHD>
              <ROW>
                <ENT I="22">
                  <E T="03">Alternative premium assistance amounts for pre-marriage months:</E>
                </ENT>
              </ROW>
              <ROW>
                <ENT I="03">Benchmark plan premium for P (Jan. to July)</ENT>
                <ENT>$3,033</ENT>
                <ENT>(($5,200/12) × 7)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Contribution amount (<FR>1/2</FR>taxable year household income × applicable percentage) × 7/12)</ENT>
                <ENT>2,078</ENT>
                <ENT>($37,500 × .095 × 7/12)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Alternative premium assistance amount for P's pre-marriage months</ENT>
                <ENT>955</ENT>
                <ENT>($3,033−$2,078)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Benchmark plan premium for Q (Jan. to July)</ENT>
                <ENT>5,833</ENT>
                <ENT>(($10,000/12) × 7)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Contribution amount (<FR>1/2</FR>taxable year household income × applicable percentage × 7/12)</ENT>
                <ENT>1,339</ENT>
                <ENT>($37,500 × .0612 × 7/12)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Alternative premium assistance amount for Q's pre-marriage months</ENT>
                <ENT>4,494</ENT>
                <ENT>($5,833−$1,339)</ENT>
              </ROW>
              <ROW>
                <ENT I="22">
                  <E T="03">Premium assistance amount for marriage months:</E>
                </ENT>
              </ROW>
              <ROW>
                <ENT I="03">Benchmark plan premium for P and Q (Aug. to Dec.)</ENT>
                <ENT>5,833</ENT>
                <ENT>(($14,000/12 × 5)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Contribution amount (taxable year household income × applicable percentage × 5/12)</ENT>
                <ENT>2,969</ENT>
                <ENT>($75,000 × .095 × 5/12)</ENT>
              </ROW>
              <ROW>
                <ENT I="03">Premium assistance amount for marriage months</ENT>
                <ENT>2,864</ENT>
                <ENT>($5,833−$2,969)</ENT>
              </ROW>
            </GPOTABLE>
            <P>Alternative marriage-year credit (sum of premium assistance amounts for pre-marriage months and marriage months): $955 + $4,494 + $2,864 = $8,313.</P>
            <P>(iii) P and Q reconcile their premium tax credit with advance credit payments by determining the excess of their advance credit payments ($8,388) over their alternative marriage-year credit ($8,313). P and Q must increase their tax liability by $75 under paragraph (a)(1) of this section.</P>
            
            <EXAMPLE>
              <HD SOURCE="HED">Example 3.</HD>
              <P>
                <E T="03">Taxpayers marry during the taxable year, alternative computation of additional tax, alternative marriage-year tax credit exceeds advance credit payments.</E>The facts are the same as in<E T="03">Example 2,</E>except that the amount of P's and Q's advance credit payments is $8,301. Thus, their alternative marriage-year credit ($8,313) exceeds the amount of their advance credit payments ($8,301). Under paragraph (b)(2)(ii)(A) of this section, the amount of additional tax liability and additional tax credit that P and Q report on their tax return is $0.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 4.</HD>
              <P>
                <E T="03">Taxpayers marry during the taxable year, alternative computation of additional tax.</E>(i) Taxpayer R is single and has no dependents. In 2013, the Exchange for the rating area where R resides determines that R's 2014 household income will be $40,000 (358 percent of the Federal poverty line, applicable percentage 9.5). R enrolls in a qualified health plan. The premium for the applicable benchmark plan is $5,200. R's monthly advance credit payment is $117, computed as follows: $5,200 benchmark plan premium minus contribution amount of $3,800 ($40,000 × .095) = $1,400 (total advance credit); $1,400/12 = $117.</P>
              <P>(ii) Taxpayer S is single with no dependents. In 2013, the Exchange for the rating area where S resides determines that S's 2014 household income will be $20,000 (179 percent of the Federal poverty line, applicable percentage 5.33). S enrolls in a qualified health plan. The premium for the applicable benchmark plan is $5,200. S's monthly advance credit payment is $345, computed as follows: $5,200 benchmark plan premium minus contribution amount of $1,066 ($20,000 × .0533) = $4,134 (total advance credit); $4,134/12 = $345.</P>

              <P>(iii) R and S marry in September 2014 and enroll in a single policy for a qualified health plan covering them both, beginning October 1, 2014. The premium for the applicable benchmark plan is $10,000. Based on<PRTPAGE P="30398"/>household income of $60,000 and a family size of two (397 percent of the Federal poverty line, applicable percentage 9.5), R's and S's monthly advance credit payment is $358, computed as follows: $10,000 benchmark plan premium minus contribution amount of $5,700 ($60,000 × .095) = $4,300; $4,300/12 = $358. R's and S's advance credit payments for 2014 are $5,232, computed as follows:</P>
              <GPOTABLE CDEF="s100,12,xs100" COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1"/>
                  <CHED H="1"/>
                </BOXHD>
                <ROW>
                  <ENT I="01">Advance payments for R (Jan. to Sept.)</ENT>
                  <ENT>$1,053</ENT>
                  <ENT>($117 × 9)</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Advance payments for S (Jan. to Sept.)</ENT>
                  <ENT>3,105</ENT>
                  <ENT>($345 × 9)</ENT>
                </ROW>
                <ROW RUL="n,s,n,s">
                  <ENT I="01">Advance payments for R and S (Oct. to Dec.)</ENT>
                  <ENT>1,074</ENT>
                  <ENT>($358 × 3)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total advance payments</ENT>
                  <ENT>5,232</ENT>
                </ROW>
              </GPOTABLE>
              <P>(iv) R and S file a joint return for 2014 and report $62,000 in household income and a family size of two (410 percent of the FPL for a family of 2). Thus, under § 1.36B-2(b)(2), R and S are not applicable taxpayers for 2014 and may not claim a premium tax credit for 2014. However, they compute their additional tax liability under paragraph (b)(2)(ii) of this section. R's and S's additional tax is the excess of their advance credit payments for the taxable year ($5,232) over their alternative marriage-year credit, which is the sum of the alternative premium assistance amounts for the pre-marriage months and the premium assistance amounts for the marriage months. In this case, R and S have no premium assistance amounts for the married months because their household income is over 400 percent of the Federal poverty line for a family of 2.</P>
              <P>(v) R and S compute their alternative marriage-year credit as follows:</P>
              <GPOTABLE CDEF="s50,12,xs100" COLS="3" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1"/>
                  <CHED H="1"/>
                </BOXHD>
                <ROW>
                  <ENT I="22">
                    <E T="03">Premium assistance amount for pre-marriage months:</E>
                  </ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Benchmark plan premium for R (Jan. to Sept.)</ENT>
                  <ENT>$3,900</ENT>
                  <ENT>(($5,200/12) × 9)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Contribution amount ((<FR>1/2</FR>taxable year household income × applicable percentage) × 9/12)</ENT>
                  <ENT>2,053</ENT>
                  <ENT>($31,000 × .0883 × 9/12)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Premium assistance amount for R's pre-marriage months</ENT>
                  <ENT>1,847</ENT>
                  <ENT>($3,900 − $2,053)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Benchmark plan premium for S (Jan. to Sept.)</ENT>
                  <ENT>3,900</ENT>
                  <ENT>(($5,200/12) × 9)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Contribution amount ((<FR>1/2</FR>taxable year household income × applicable percentage) × 9/12)</ENT>
                  <ENT>2,053</ENT>
                  <ENT>($31,000 × .0883 × 9/12)</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Premium assistance amount for S's pre-marriage months</ENT>
                  <ENT>1,847</ENT>
                  <ENT>($3,900−$2,053)</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">
                    <E T="03">Premium assistance amount for marriage months</E>
                  </ENT>
                  <ENT>0</ENT>
                </ROW>
              </GPOTABLE>
              <P>Alternative marriage-year credit (sum of premium assistance amounts for pre-marriage months and marriage months): $1,847 + 1,847 + 0 = $3,694.</P>
              <P>(vi) R and S reconcile their premium tax credit with advance credit payments by determining the excess of their advance credit payments ($5,232) over their alternative marriage-year credit ($3,694). R and S must increase their tax liability by $1,538 under paragraph (a)(1) of this section.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 5.</HD>
              <P>(i)<E T="03">Taxpayers marry during the taxable year, no additional tax liability.</E>The facts are the same as in<E T="03">Example 4,</E>except that S has no income and is enrolled in Medicaid for January through September 2014 and R's and S's household income for 2014 is $37,000 (245 percent of the Federal poverty line, applicable percentage 7.88). Their advance credit payments for 2014 are $2,707 ($1,053 for R for January to September and $1,654 for R and S for October to December). Their premium tax credit for 2014 is $3,484 (total benchmark premium of $6,400 less contribution amount of $2,916).</P>
              <P>(ii) Because R's and S's premium tax credit of $3,484 exceeds their advance credit payments of $2,707, R and S are allowed an additional credit of $707. Although R and S marry in 2014, paragraph (b)(2) of this section (the alternative computation of additional tax for taxpayers who marry during the taxable year) does not apply because they do not owe additional tax for 2014.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 6.</HD>
              <P>
                <E T="03">Taxpayers divorce during the taxable year, 50 percent allocation.</E>(i) Taxpayers V and W are married and have two dependents. In 2013, the Exchange for the rating area where the family resides determines that their 2014 household income will be $76,000 (330 percent of the Federal poverty line for a family of 4, applicable percentage 9.5). V and W enroll in a qualified health plan for 2014. The premium for the applicable benchmark plan is $14,100. The Exchange approves advance credit payments of $573 per month, computed as follows: $14,100 benchmark plan premium minus V and W's contribution amount of $7,220 ($76,000 × .095) equals $6,880 (total advance credit); $6,880/12 = $573.</P>
              <P>(ii) V and W divorce on June 17, 2014, and obtain separate qualified health plans beginning July 1, 2014. V enrolls based on household income of $60,000 and a family size of three (314 percent of the Federal poverty line, applicable percentage 9.5). The premium for the applicable benchmark plan is $10,000. The Exchange approves advance credit payments of $358 per month, computed as follows: $10,000 benchmark plan premium minus V's contribution amount of $5,700 ($60,000 × .095) equals $4,300 (total advance credit); $4,300/12 = $358.</P>
              <P>(iii) W enrolls based on household income of $16,420 and a family size of one (147 percent of the Federal poverty line, applicable percentage 3.82). The premium for the applicable benchmark plan is $5,200. The Exchange approves advance credit payments of $381 per month, computed as follows: $5,200 benchmark plan premium minus W's contribution amount of $627 ($16,420 × .0382) equals $4,573 (total advance credit); $4,573/12 = $381. V and W do not agree on an allocation of the premium for the applicable benchmark plan, the premiums for the plan in which they enroll, and the advance credit payments for the period they were married in the taxable year.</P>
              <P>(iv) V and W each compute their credit at reconciliation under paragraph (b)(1) of this section, using the premiums for the applicable benchmark plans that apply to them for the months married and the months not married, and the contribution amount based on their Federal poverty line percentages at the end of the taxable year. Under paragraph (b)(3) of this section, because V and W do not agree on an allocation, V and W must equally allocate the benchmark plan premium ($7,050) and the advance credit payments ($3,438) for the six-month period January through June 2014 when they are married and enrolled in the same qualified health plan. Thus, V and W each are allocated $3,525 of the benchmark plan premium ($7,050/2) and $1,719 of the advance credit payments ($3,438/2) for January through June.</P>
              <P>(v) V reports on his 2014 tax return $60,000 in household income and family size of three. W reports on her 2014 tax return $16,420 in household income and family size of one. V and W reconcile their premium tax credit with advance credit payments as follows:</P>
              <GPOTABLE CDEF="s100,10,10" COLS="3" OPTS="L2,tp0,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1">V</CHED>
                  <CHED H="1">W</CHED>
                </BOXHD>
                <ROW>
                  <ENT I="01">Allocated advance payments (Jan. to June)</ENT>
                  <ENT>$1,719</ENT>
                  <ENT>$1,719</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Actual advance payments (July to Dec.)</ENT>
                  <ENT>2,148</ENT>
                  <ENT>2,286</ENT>
                </ROW>
                <ROW>
                  <PRTPAGE P="30399"/>
                  <ENT I="03">Total advance payments</ENT>
                  <ENT>3,867</ENT>
                  <ENT>4,005</ENT>
                </ROW>
                
                <ROW>
                  <ENT I="01">Allocated benchmark plan premium (Jan. to June)</ENT>
                  <ENT>3,525</ENT>
                  <ENT>3,525</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Actual benchmark plan premium (July to Dec.)</ENT>
                  <ENT>5,000</ENT>
                  <ENT>2,600</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total benchmark plan premium</ENT>
                  <ENT>8,525</ENT>
                  <ENT>6,125</ENT>
                </ROW>
                
                <ROW RUL="n,s">
                  <ENT I="01">Contribution amount (taxable year household income × applicable percentage)</ENT>
                  <ENT>5,700</ENT>
                  <ENT>627</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Credit (total benchmark plan premium less contribution amount)</ENT>
                  <ENT>2,825</ENT>
                  <ENT>5,498</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Additional credit</ENT>
                  <ENT/>
                  <ENT>1,493</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Additional tax</ENT>
                  <ENT>1,042</ENT>
                  <ENT/>
                </ROW>
              </GPOTABLE>
              <P>(vi) Under paragraph (a)(1) of this section, on their tax returns V's tax liability is increased by $1,042 and W is allowed $1,493 as additional credit.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 7.</HD>
              <P>
                <E T="03">Taxpayers divorce during the taxable year, allocation in proportion to household income.</E>(i) The facts are the same as in<E T="03">Example 6,</E>except that V and W decide to allocate the benchmark plan premium ($7,050) and the advance credit payments ($3,438) for January through June 2014 in proportion to their household incomes (79 percent and 21 percent). Thus, V is allocated $5,570 of the benchmark plan premiums ($7,050 × .79) and $2,716 of the advance credit payments ($3,438 × .79), and W is allocated $1,481 of the benchmark plan premiums ($7,050 × .21) and $722 of the advance credit payments ($3,438 × .21). V and W reconcile their premium tax credit with advance credit payments as follows:</P>
              <GPOTABLE CDEF="s100,10,10" COLS="3" OPTS="L2,tp0,i1">
                <TTITLE/>
                <BOXHD>
                  <CHED H="1"/>
                  <CHED H="1">V</CHED>
                  <CHED H="1">W</CHED>
                </BOXHD>
                <ROW>
                  <ENT I="01">Allocated advance payments (Jan. to June)</ENT>
                  <ENT>$2,716</ENT>
                  <ENT>$722</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Actual advance payments (July to Dec.)</ENT>
                  <ENT>2,148</ENT>
                  <ENT>2,286</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total advance payments</ENT>
                  <ENT>4,864</ENT>
                  <ENT>3,008</ENT>
                </ROW>
                
                <ROW>
                  <ENT I="01">Allocated benchmark plan premium (Jan. to June)</ENT>
                  <ENT>5,570</ENT>
                  <ENT>1,481</ENT>
                </ROW>
                <ROW RUL="n,s">
                  <ENT I="01">Actual benchmark plan premium (July to Dec.)</ENT>
                  <ENT>5,000</ENT>
                  <ENT>2,600</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Total benchmark plan premium</ENT>
                  <ENT>10,570</ENT>
                  <ENT>4,081</ENT>
                </ROW>
                
                <ROW RUL="n,s">
                  <ENT I="01">Contribution amount (taxable year household income × applicable percentage)</ENT>
                  <ENT>5,700</ENT>
                  <ENT>627</ENT>
                </ROW>
                <ROW>
                  <ENT I="03">Credit (total benchmark plan premium less contribution amount)</ENT>
                  <ENT>4,870</ENT>
                  <ENT>3,454</ENT>
                </ROW>
                <ROW>
                  <ENT I="01">Additional credit</ENT>
                  <ENT>6</ENT>
                  <ENT>446</ENT>
                </ROW>
              </GPOTABLE>
              <P>(ii) Under paragraph (a)(1) of this section, on their tax returns V is allowed an additional credit of $6 and W is allowed an additional credit of $446.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 8.</HD>
              <P>
                <E T="03">Married taxpayers filing separate tax returns.</E>(i) Taxpayers X and Y are married and have two dependents. In 2013, the Exchange for the rating area where the family resides determines that their 2014 household income will be $76,000 (330 percent of the Federal poverty line for a family of 4, applicable percentage 9.5). W and Y enroll in a qualified health plan for 2014. The premium for the applicable benchmark plan is $14,100. X's and Y's monthly advance credit payment is $573, computed as follows: $14,100 benchmark plan premium minus X's and Y's contribution amount of $7,220 ($76,000 × .095) equals $6,880 (total advance credit); $6,880/12 = $573.</P>
              <P>(ii) X and Y file income tax returns for 2014 using a married filing separately filing status. X reports household income of $60,000 and a family size of three (314 percent of the Federal poverty line). Y reports household income of $16,420 and a family size of one (147 percent of the Federal poverty line).</P>
              <P>(iii) Because X and Y are married but do not file a joint return for 2014, X and Y are not applicable taxpayers and are not allowed a premium tax credit for 2014. See § 1.36B-2(b)(2). Under paragraph (b)(4) of this section, half of the advance credit payments ($6,880/2 = $3,440) is allocated to X and half is allocated to Y for purposes of determining their excess advance payments. The repayment limitation described in paragraph (a)(3) of this section applies to X and Y based on the household income and family size reported on each return. Consequently, X's tax liability for 2014 is increased by $2,500 and Y's tax liability for 2014 is increased by $600.</P>
            </EXAMPLE>
            <EXAMPLE>
              <HD SOURCE="HED">Example 9.</HD>
              <P>(i) The facts are the same as in<E T="03">Example 8,</E>except that X and Y live apart for over 6 months of the year and X properly files an income tax return as head of household. Under section 7703(b), X is treated as unmarried and therefore is not required to file a joint return. If X otherwise qualifies as an applicable taxpayer, X may claim the premium tax credit based on the household income and family size X reports on the return. Y is not an applicable taxpayer and is not eligible to claim the premium tax credit.</P>
              <P>(ii) X must reconcile the amount of credit with advance credit payments under paragraph (a) of this section. The premium for the applicable benchmark plan covering X and his two dependents is $9,800. X's premium tax credit is computed as follows: $9,800 benchmark plan premium minus X's contribution amount of $5,700 ($60,000 − .095) equals $4,100.</P>
              <P>(iii) Under paragraph (b)(5) of this section, half of the advance payments ($6,880/2 = $3,440) is allocated to X and half is allocated to Y. Thus, X is entitled to $660 additional premium tax credit ($4,100 − $3,440). Y has $3,440 excess advance payments, which is limited to $600 under paragraph (a)(3) of this section.</P>
            </EXAMPLE>
          </SECTION>
          <SECTION>
            <SECTNO>§ 1.36B-5</SECTNO>
            <SUBJECT>Information reporting by Exchanges.</SUBJECT>
            <P>(a)<E T="03">Information required to be reported.</E>An Exchange must report to the Internal Revenue Service and each taxpayer the following information for the qualified health plan or plans in which the taxpayer or a member of the taxpayer's family enrolls through the Exchange—</P>
            <P>(1) The premium for the applicable benchmark plans used to compute advance credit payments and the period coverage was in effect;</P>
            <P>(2) The total premium for the coverage in which the taxpayer or family member enrolls without reduction for advance credit payments;</P>
            <P>(3) The aggregate amount of any advance credit payments;</P>
            <P>(4) The name, address and Social Security number (SSN) of the primary insured and the name and SSN or adoption taxpayer identification number of each other individual covered under the policy;</P>

            <P>(5) All information provided to the Exchange at enrollment or during the taxable year, including any change in<PRTPAGE P="30400"/>circumstances, necessary to determine eligibility for and the amount of the premium tax credit;</P>
            <P>(6) Any other information required in published guidance, see § 601.601(d)(2) of this chapter, necessary to determine whether a taxpayer has received excess advance payments.</P>
            <P>(b)<E T="03">Time of reporting.</E>[Reserved]</P>
            <P>(c)<E T="03">Manner of reporting.</E>The Commissioner may provide rules in published guidance, see § 601.601(d)(2) of this chapter, for the manner of reporting under this section.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="1" TITLE="26">
          <AMDPAR>
            <E T="04">Par. 3.</E>Section 1.6011-8 is added to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 1.6011-8</SECTNO>
            <SUBJECT>Requirement of income tax return for taxpayers who claim the premium tax credit under section 36B.</SUBJECT>
            <P>(a)<E T="03">Requirement of return.</E>A taxpayer who receives advance payments of the premium tax credit under section 36B must file an income tax return for that taxable year on or before the fifteenth day of the fourth month following the close of the taxable year.</P>
            <P>(b)<E T="03">Effective/applicability date.</E>This section applies for taxable years ending after December 31, 2013.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="1" TITLE="26">
          <AMDPAR>
            <E T="04">Par. 4.</E>In § 1.6012-1, paragraph (a)(2)(viii) is added to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 1.6012-1</SECTNO>
            <SUBJECT>Individuals required to make returns of income.</SUBJECT>
            <P>(a) * * *</P>
            <P>(2) * * *</P>
            <P>(viii) For rules relating to returns required of taxpayers who receive advance payments of the premium tax credit under section 36B, see § 1.6011-8(a).</P>
            <STARS/>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="602" TITLE="26">
          <PART>
            <HD SOURCE="HED">PART 602—OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT</HD>
          </PART>
          <AMDPAR>
            <E T="04">Par. 5.</E>The authority citation for part 602 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>26 U.S.C. 7805.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="602" TITLE="26">
          <AMDPAR>
            <E T="04">Par. 6.</E>In § 602.101, paragraph (b) is amended by adding an entry in numerical order to the table to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 602.101</SECTNO>
            <SUBJECT>OMB Control numbers.</SUBJECT>
            <STARS/>
            <P>(b) * * *</P>
            <GPOTABLE CDEF="s25,12" COLS="2" OPTS="L1,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">CFR part or section where identified and described</CHED>
                <CHED H="1">Current OMB Control No.</CHED>
              </BOXHD>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*****</ENT>
              </ROW>
              <ROW>
                <ENT I="01">1.36B-5</ENT>
                <ENT>1545-2232</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*****</ENT>
              </ROW>
            </GPOTABLE>
          </SECTION>
        </REGTEXT>
        <SIG>
          <NAME>Steven T. Miller,</NAME>
          <TITLE>Deputy Commissioner for Services and Enforcement.</TITLE>
          <DATED>Approved: May 16, 2012.</DATED>
          <NAME>Emily S. McMahon,</NAME>
          <TITLE>Acting Assistant Secretary of the Treasury (Tax Policy).</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12421 Filed 5-18-12; 11:15 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 165</CFR>
        <DEPDOC>[Docket No. USCG-2011-1063]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Moving Security Zone Around Escorted Vessels on the Lower Mississippi River</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Temporary final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Captain of the Port of New Orleans (COTP New Orleans) is re-establishing and extending the effective period for the moving security zone on the Mississippi river, mile marker 90 through mile marker 110, extending 300 yards on all sides of vessels being escorted by one or more Coast Guard assets.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Section 165.T08-040, temporarily added at 77 FR 6013, effective from January 1, 2012, through March 31, 2012, is re-established and effective from May 23, 2012 through August 15, 2012. Beginning April 1, 2012 this rule continues to be enforced through actual notice.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents indicated in this preamble as being available in the docket are part of docket USCG-2011-1063 and are available online by going to<E T="03">http://www.regulations.gov</E>, inserting USCG-2011-1063 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 temporary rule, call or email Lieutenant Commander (LCDR) Kenneth Blair, Sector New Orleans, Coast Guard; telephone 504-365-2392, email<E T="03">Kenneth.E.Blair@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>
        <HD SOURCE="HD1">Regulatory Information</HD>
        <P>The Coast Guard is issuing this temporary final rule without prior notice and opportunity to comment pursuant to authority under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule. Based on risk evaluations completed, and information gathered, from November 26, 2011 to March 12, 2012 and after evaluating the security needs for escorted vessels, the Coast Guard determined that the existing moving security zones should be extended from April 1, 2012 through August 15, 2012. This moving security zone is needed to protect escorted vessels and personnel from destruction, loss, or injury from sabotage or other subversive acts, accidents, or other causes of a similar nature. Providing a public notice and comment period for this temporary final rule is contrary to national security and the public interest.</P>

        <P>Additionally, the City of New Orleans will be hosting several high visibility events beginning in April, 2012, including the French Quarter Festival and War of 1812 Commemoration that will bring thousands of people into the New Orleans Central Business District. A thirty day notice period would unnecessarily delay the effective dates and would be contrary to the public interest by delaying or foregoing the necessary protections required for these escorted vessels and personnel. For these reasons, under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the<E T="04">Federal Register</E>.</P>
        <HD SOURCE="HD1">Basis and Purpose</HD>

        <P>Certain vessels, including high capacity passenger vessels, vessels carrying certain dangerous cargoes as defined in 33 CFR part 160, tank vessels constructed to carry oil or hazardous materials in bulk, and vessels carrying liquefied hazardous gas as defined in 33 CFR part 127 have been deemed by the COTP New Orleans to require escort protection during transit between mile marker 90.0 to mile marker 110.0 of the<PRTPAGE P="30401"/>Lower Mississippi River. A moving security zone has been established for the escorted vessels, between mile marker 90.0 to mile marker 110.0, extending 300 yards in all directions of the escorted vessels. Vessels will not be allowed to transit through the moving security zone without the permission of the Captain of the Port, New Orleans or the on-scene Coast Guard asset. This security zone is necessary to protect the escorted vessels and personnel from destruction, loss or injury from sabotage or other subversive acts, accidents or other causes of a similar nature.</P>
        <HD SOURCE="HD1">Discussion of Rule</HD>
        <P>Under the authority of the Magnuson Act, 50 U.S.C. 191-195 and 33 CFR part 6, the Coast Guard has established a moving security zone regulation to protect the escorted vessels and personnel. While this temporary rule remains in effect, vessels are prohibited from transiting in the vicinity of the escorted vessel, specifically within an area extending 300 yards in all directions from each escorted vessel. Deviations from this rule may be requested from the Captain of the Port New Orleans through the on-scene Coast Guard assest, via VHF Ch. 67 or the Coast Guard Vessel Traffic Center at (504) 365-2230. Notice of the moving security zones will be made through broadcast notices to mariners.</P>
        <P>A vessel may request permission of the COTP New Orleans or the on-scene Coast Guard asset to enter the security zone. If permitted to enter the security zone, a vessel must proceed at the minimum safe speed and must comply with the order of the COTP New Orleans or the on-scene asset. No vessel may enter the inner 50-yard portion of the security zone closest to the vessel being escorted. The COTP New Orleans will inform the public of the existence or status of the security zones around escorted vessels in the regulated area by Marine Safety Information Bulletins or Broadcast Notice to Mariners. Coast Guard assets will be clearly identified by lights, vessel markings, or with agency insignia. This moving security zone is necessary to protect vessels deemed to be in need of escort protection by the COTP New Orleans for security reasons.</P>
        <HD SOURCE="HD1">Regulatory Analyses</HD>
        <P>We developed this rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on 13 of these statutes or executive orders.</P>
        <HD SOURCE="HD1">Regulatory Planning and Review</HD>
        <P>This rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order.</P>
        <P>It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). Due to its duration and location the impacts on routine navigation are expected to be minimal.</P>
        <HD SOURCE="HD1">Small Entities</HD>
        <P>Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000.</P>
        <P>The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.</P>

        <P>This rule will affect the following entities, some of which may be small entities: the owners or operators of vessels, intending to transit in the vicinity of mile marker 90.0 through mile marker 110.0 of the Lower Mississippi River, extending 300 yards in all directions of an escorted vessel. This security zone will not have significant impact on a substantial number of small entities because of its location and duration. If you are a small business entity and are significantly affected by this regulation please contact Lieutenant Commander (LCDR) Kenneth Blair, Sector New Orleans, at 504-365-2392, or email<E T="03">Kenneth.E.Blair@uscg.mil</E>.</P>
        <HD SOURCE="HD1">Assistance for Small Entities</HD>
        <P>Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process.</P>
        <P>Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.</P>
        <HD SOURCE="HD1">Collection of Information</HD>
        <P>This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
        <HD SOURCE="HD1">Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism.</P>
        <HD SOURCE="HD1">Unfunded Mandates Reform Act</HD>
        <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
        <HD SOURCE="HD1">Taking of Private Property</HD>
        <P>This rule will not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.</P>
        <HD SOURCE="HD1">Civil Justice Reform</HD>
        <P>This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.</P>
        <HD SOURCE="HD1">Protection of Children</HD>

        <P>We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not create an environmental risk to health or risk to safety that may disproportionately affect children.<PRTPAGE P="30402"/>
        </P>
        <HD SOURCE="HD1">Indian Tribal Governments</HD>
        <P>This rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
        <HD SOURCE="HD1">Energy Effects</HD>
        <P>We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211.</P>
        <HD SOURCE="HD1">Technical Standards</HD>
        <P>The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies.</P>
        <P>This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards.</P>
        <HD SOURCE="HD1">Environment</HD>
        <P>We have analyzed this rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have concluded this action is one of a category of actions which do not individually or cumulatively have a significant effect on the human environment. This rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction. This rule fits the category selected from paragraph (34)(g), as it establishes a temporary security zone for a limited period of time.</P>

        <P>An environmental analysis checklist and a categorical exclusion determination are available and accessible in the docket as indicated in the<E T="02">ADDRESSES</E>section.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
          <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
        </LSTSUB>
        
        <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:</P>
        <REGTEXT PART="165" TITLE="33">
          <PART>
            <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 165 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 1231; 46 U.S.C. Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.06-1, 6.05-6 and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Section 165.T08-040 is added to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 165.T08-040</SECTNO>
            <SUBJECT>Moving Security Zone, Escorted Vessels.</SUBJECT>
            <P>(a)<E T="03">Location.</E>The following areas are security zones: Navigable waters of the Lower Mississippi River, from milemarker 90.0 to mile marker 110.0, extending 300 yards in all directions of escorted vessels. Escorted vessels willbe escorted by one or more Coast Guard assets or other federal, state, or local law enforcement agency assets clearly identifiable by lights, vessel markings,or with agency insignia.</P>
            <P>(b)<E T="03">Effective period.</E>This rule is effective May 23, 2012 through August 15, 2012. Beginning April 1, 2012 this rule is enforced through actual notice.</P>
            <P>(c)<E T="03">Regulation.</E>(1) Under the general regulations in § 165.33 of this part, vessels are prohibited from entering or transiting the security zones described in paragraph (a) of this temporary section, § 165.T08-040.</P>
            <P>(2) If granted permission to enter a security zone, a vessel must operate at the minimum speed necessary tomaintain a safe course, unless required to maintain speed by the Navigation Rules, and shall proceed as directed bythe Coast Guard. When within the security zone, no vessel or person is allowed within 50 yards of the escortedvessel unless authorized by the Coast Guard.</P>
            <P>(3) Persons or vessels requiring deviations from this rule must request permission from the Captain of the PortNew Orleans through the on-scene Coast Guard or other agency asset, via VHF Ch. 67 or the Coast Guard Vessel Traffic Center at (504) 365-2230.</P>
            <P>(4) All persons and vessels granted permission to enter a security zone must comply with the instructions of theCaptain of the Port New Orleans and designated personnel. Designated personnel include commissioned, warrant and petty officers of the U.S. Coast Guard, and local, state, and federal law enforcement officers on clearly identified law enforcement agency vessels.</P>
            <P>(d)<E T="03">Informational broadcasts.</E>The Captain of the Port or a designated representative will inform the public through marine safety information bulletins or broadcast notices tomariners of this regulation.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: April 1, 2012.</DATED>
          <NAME>John J. Arenstam,</NAME>
          <TITLE>Captain, U.S. Coast Guard,Acting, Captain of the Port New Orleans.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12313 Filed 5-22-12; 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 180</CFR>
        <DEPDOC>[EPA-HQ-OPP-2011-0674; FRL-9349-3]</DEPDOC>
        <SUBJECT>Acibenzolar- S -methyl; Time-Limited 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 time-limited tolerances for residues of acibenzolar-S-methyl in or on grapefruit, apples and pears. Syngenta Crop Protection LLC. 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 May 23, 2012. Objections and requests for hearings must be received on or before July 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>The docket for this action, identified by docket identification (ID) number EPA-HQ-OPP-2011-0674, is available either electronically through<E T="03">http://www.regulations.gov</E>or in hard copy at the OPP Docket in the Environmental Protection Agency Docket Center (EPA/DC), located in EPA<PRTPAGE P="30403"/>West, Rm. 3334, 1301 Constitution Ave. NW., Washington, DC 20460-0001. The Public Reading Room 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 OPP Docket is (703) 305-5805. Please review the visitor instructions and additional information about the docket available at<E T="03">http://www.epa.gov/dockets.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Rose Kearns, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: (703) 305-5611; email address:<E T="03">kearns.rosemary@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>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-2011-0674 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 July 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 part178, 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-2011-0674, 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. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute.</P>
        <P>•<E T="03">Mail:</E>OPP Docket, Environmental Protection Agency Docket Center (EPA/DC), Mail Code: 28221T, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001.</P>
        <P>•<E T="03">Hand Delivery:</E>To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at<E T="03">http://www.epa.gov/dockets/contacts.htm.</E>
        </P>

        <P>Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at<E T="03">http://www.epa.gov/dockets.</E>
        </P>
        <HD SOURCE="HD1">II. Summary of Petitioned-For Tolerance</HD>
        <P>In the<E T="04">Federal Register</E>of September 7, 2011 (76 FR 55331)  (FRL-8886-7), 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 1G7889 by Syngenta Crop Protection, LLC, P.O. Box 18300, Greensboro, NC 27419-8300. The petition requested that 40 CFR 180.561 be amended by establishing temporary tolerances for residues of the fungicide, acibenzolar-S-methyl, in or on apples, grapefruit and pears 0.05 parts per million (ppm) in conjunction with approval of an experimental use permit. That notice referenced a summary of the petition prepared by Syngenta Crop Protection, LLC, 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 acibenzolar-S-methyl including exposure resulting from the tolerances established by this action. EPA's assessment of exposures and risks associated with acibenzolar-S-methyl 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>General information on the toxicity of acibenzolar-S-methyl can be found in a recent tolerance rulemaking for this pesticide in the<E T="04">Federal Register</E>of April 11, 2012 (77 FR 21670) (FRL-<PRTPAGE P="30404"/>9343-3). Specific information on the studies received and the nature of the adverse effects caused by acibenzolar-S-methyl 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 document “Acibenzolar-S-methyl Human Health Risk Assessment,” on page 15 in docket ID number EPA-HQ-OPP-2011-0674.</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 Acibenzolar-S-Methyl used for human risk assessment is shown in the recent tolerance rulemaking document for acibenzolar-S-methyl in the<E T="04">Federal Register</E>of April 11, 2012 (77 FR 21670).</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 acibenzolar-S-methyl, EPA considered exposure under the petitioned-for tolerances as well as all existing acibenzolar-S-methyl tolerances in 40 CFR 180.561. EPA assessed dietary exposures from acibenzolar-S-methyl 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.</P>
        <P>Such effects were identified for acibenzolar-S-methyl. In estimating acute dietary exposure, EPA used food consumption information from the U.S. 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 a distribution of residues based on field trial data and tolerance level residues for apple, grapefruit and pear. Empirical and Dietary Exposure Evaluation Model (DEEM) default processing factors were used to modify the field trial data. Maximum screening-level percent crop treated (PCT) estimates were used for commodities for which data were available. If no PCT data were available, 100 PCT was assumed.</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 used a conservative chronic dietary exposure analysis for the general U.S. population and various population subgroups. Tolerance level residues and 100 crop treated assumptions were used. DEEM default and empirical processing factors were used to modify the tolerance values.</P>
        <P>iii.<E T="03">Cancer.</E>Based on the data summarized in Unit III.A., EPA has concluded that acibenzolar-S-methyl 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 PCT information.</E>Section 408(b)(2)(E) of FFDCA authorizes EPA to use available data and information on the anticipated residue levels of pesticide residues in food and the actual levels of pesticide residues that have been measured in food. If EPA relies on such information, EPA must require pursuant to FFDCA section 408(f)(1) that data be provided 5 years after the tolerance is established, modified, or left in effect, demonstrating that the levels in food are not above the levels anticipated. For the present action, EPA will issue such data call-ins as are required by FFDCA section 408(b)(2)(E) and authorized under FFDCA section 408(f)(1). Data will be required to be submitted no later than 5 years from the date of issuance of these tolerances.</P>
        <P>Section 408(b)(2)(F) of FFDCA states that the Agency may use data on the actual percent of food treated for assessing chronic dietary risk only if certain conditions are met. PCT data was not used for conducting the chronic dietary risk assessment.</P>
        <P>2.<E T="03">Dietary exposure from drinking water.</E>The residues of concern for drinking water are acibenzolar-S-methyl benzo(1,2,3) thiadiazole-7-carbothioic acid (-S-methyl ester, convertible to benzo(1,2,3)thiadiazole-7-carboxylic acid (CGA-210007) in drinking water. These simulation model take into account data on the physical, chemical, and fate/transport characteristics of acibenzolar-S-methyl. 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 acibenzolar-S-methyl for acute exposures are estimated to be 45 parts per billion (ppb) for surface water and 0.08 ppb for ground water, for chronic exposures for non-cancer assessments are estimated to be 19.1 ppb for surface water and 0.08 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 45 ppb was used to assess the contribution to drinking water.</P>
        <P>For chronic dietary risk assessment, the water concentration of value 19.1 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).  Acibenzolar-S-methyl is currently registered for the following uses that could result in residential exposures: Turfgrass use on sodfarms, golf courses, collegiate athletic fields, and lawns around commercial and industrial buildings. Residential exposure was assessed for adult handlers and for adult and child post-application activities. Exposure for adult and child golfers were used to aggregate adult post-application dermal exposure with dietary and drinking water exposure. The aggregate exposure assessment for children combines dermal and<PRTPAGE P="30405"/>incidental oral post-application exposure with food and water exposure.</P>

        <P>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 acibenzolar-S-methyl to share a common mechanism of toxicity with any other substances, and acibenzolar-S-methyl does not appear to produce a toxic metabolite produced by other substances. For the purposes of this tolerance action, therefore, EPA has assumed that acibenzolar-S-methyl 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 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 Food Quality Protection Act Safety Factor (FQPA SF). 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>The toxicology database for acibenzolar-S-methyl is complete and adequate for assessing increased susceptibility under FQPA. The pre- and postnatal toxicity database for acibenzolar-S-methyl includes developmental toxicity studies in rats and rabbits, a DNT study in rats, and a 2-generation reproduction toxicity study in rats. Based on the developmental toxicity in rats and the developmental neurotoxicity studies in rats, there is concern for increased qualitative and/or quantitative susceptibility following in utero exposure to acibenzolar-S-methyl. However, the degree of concern for the increased susceptibility seen in these studies is low as there are no residual uncertainties with regard to pre- and/or postnatal toxicity since NOAELs and LOAELs have been identified for all effects of concern, a clear dose response has been well defined, and the PODs selected for risk assessment are protective of the fetal/offspring effects. Additionally, the dietary and residential risk assessments are conservative and will not underestimate dietary exposure and there are no residual uncertainties in the exposure database.</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 SF were reduced to 1X. That decision is based on the following findings:</P>
        <P>i. The toxicity database for acibenzolar-S-methyl is complete.</P>
        <P>ii. There are no residual uncertainties identified in the exposure databases. The dietary risk assessment is conservative and will not underestimate dietary and/or non-dietary residential exposure to acibenzolar-S-methyl. The acute analysis assumed a distribution of residues based on field trial data, tolerance level residues for the Experimental Use Permit (EUP) uses and maximum PCT estimates were used for commodities for which data were available. The chronic dietary food exposure assessment was performed based on 100 PCT and tolerance-level residues. EPA made conservative (protective) assumptions in the ground water and surface water modeling used to assess exposure to acibenzolar-S-methyl in drinking water. EPA used similarly conservative assumptions to assess post-application exposure of children as well as incidental oral exposure of toddlers. These assessments will not underestimate the exposure and risks posed by acibenzolar-S-methyl.</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>An acute aggregate risk assessment takes into account acute exposure estimates from dietary consumption of food and drinking water. Using the exposure assumptions discussed in this unit for acute exposure, the acute dietary exposure from food and water to acibenzolar-S-methyl will occupy 37% of the aPAD for children 3-5 years old, the population group receiving the greatest exposure.</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 acibenzolar-S-methyl from food and water will utilize 12% of the cPAD for children 1-2 years old, the population group receiving the greatest exposure. There are no residential uses for acibenzolar-S-methyl. Based on the explanation in Unit III.C.3., regarding residential use patterns, chronic residential exposure to residues of acibenzolar-S-methyl 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).</P>
        <P>Acibenzolar-S-methyl 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 acibenzolar-S-methyl.</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 MOEs of 700 for females 13-49 years from handler activities, and, 1,600 for females 13-49 years old, and 800-1,000 for children 1-2 and 6-12 years old, respectively, from post-application exposure. Because EPA's level of concern for acibenzolar-S-methyl is a MOE of 100 or below, these short-term-aggregate MOEs are not of concern.</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).</P>

        <P>An intermediate-term adverse effect was identified; however, acibenzolar-S-methyl is not registered for any use pattern that would result in intermediate-term residential exposure. Intermediate-term risk is assessed based on intermediate-term residential exposure plus chronic dietary exposure.<PRTPAGE P="30406"/>Because there is no intermediate-term residential exposure and chronic dietary exposure has already been assessed under the appropriately protective cPAD (which at least one protective as the POD used to assess intermediate-term risk), no further assessment of intermediate-term risk is necessary, and EPA relies on the chronic dietary risk assessment for evaluating intermediate-term risk for acibenzolar-S-methyl.</P>
        <P>Because no intermediate-term adverse effect was identified, acibenzolar-S-methyl is not expected to pose an intermediate-term risk.</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, acibenzolar-S-methyl 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 acibenzolar-S-methyl residues.</P>
        <HD SOURCE="HD1">IV. Other Considerations</HD>
        <HD SOURCE="HD2">A. Analytical Enforcement Methodology</HD>

        <P>Adequate enforcement methodology high performance liquid chromatography using ultra-violet detection ((HPLC/UV) Method AG-617A) 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>There are no established Codex, Mexican, or Canadian maximum residue limits for acibenzolar-S-methyl in/on any commodity. Therefore, international harmonization is not an issue for acibenzolar-S-methyl.</P>
        <HD SOURCE="HD1">V. Conclusion</HD>
        <P>Therefore, time-limited tolerances are established for residues of acibenzolar-S-methyl, in or on apple, grapefruit and pear at 0.05 ppm. A time limitation been imposed because these tolerances are being established in conjunction with approval of an EUP to use acibenzolar-S-methyl on apple, pear and grapefruit. The EUP approval period and time-limited tolerances will expire 12/31/2015 which provides ample time for all treated crops to be harvested, stored, and out of channels of trade.</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: May 14, 2012.</DATED>
          <NAME>Lois Rossi,</NAME>
          <TITLE>Director, Registration Division, 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 180.561 is amended as follows:<PRTPAGE P="30407"/>
          </AMDPAR>
          <AMDPAR>a. Redesignate paragraph (a) as (a)(1); and</AMDPAR>
          <AMDPAR>b. Add paragraph (a)(2).</AMDPAR>
          <P>The amendments read as follows:</P>
          <SECTION>
            <SECTNO>§ 180.561</SECTNO>
            <SUBJECT>Acibenzolar-<E T="03">S</E>-methyl; tolerances for residues.</SUBJECT>
            <P>(a)<E T="03">General.</E>
            </P>
            <P>(1) * * *</P>

            <P>(2) Tolerances are established for residues of acibenzolar-<E T="03">S</E>-methyl, benzo(1,2,3)thiadiazole-7-carbothioic acid-<E T="03">S</E>-methyl ester, including its metabolites and degradates, in or on the commodities in the table below. Compliance with the tolerance levels specified below is to be determined by measuring only those acibenzolar-<E T="03">S</E>-methyl residues convertible to benzo(1,2,3)thiadiazole-7-carboxylic acid (CGA-210007), expressed as the Stoichiometric equivalent of acibenzolar-<E T="03">S</E>-methyl, in or on the following raw agricultural commodities.</P>
            <GPOTABLE CDEF="s25,10,10" COLS="3" OPTS="L2,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Commodity</CHED>
                <CHED H="1">Parts per million</CHED>
                <CHED H="1">Expiration/revocation date</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">Apple</ENT>
                <ENT>0.05</ENT>
                <ENT>12/31/2015</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Grapefruit</ENT>
                <ENT>0.05</ENT>
                <ENT>12/31/2015</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Pear</ENT>
                <ENT>0.05</ENT>
                <ENT>12/31/2015</ENT>
              </ROW>
            </GPOTABLE>
            <STARS/>
          </SECTION>
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12410 Filed 5-22-12; 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-2012-0014; FRL-9349-1]</DEPDOC>
        <SUBJECT>1,2-Ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2, 4-diisocyanato-1-methylbenzene; Tolerance Exemption</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 an exemption from the requirement of a tolerance for residues of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene, when used as an inert ingredient in a pesticide chemical formulation. ICR, Inc., on behalf of Triton Systems, Inc., submitted a petition to EPA under the Federal Food, Drug, and Cosmetic Act (FFDCA), requesting an exemption from the requirement of a tolerance. This regulation eliminates the need to establish a maximum permissible level for residues of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene on food or feed commodities.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>

          <P>This regulation is effective May 23, 2012. Objections and requests for hearings must be received on or before July 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>The docket for this action, identified by docket identification (ID) number EPA-HQ-OPP-2012-0014, is available either electronically through<E T="03">http://www.regulations.gov</E>or in hard copy at the OPP Docket in the Environmental Protection Agency Docket Center (EPA/DC), located in EPA West, Rm. 3334, 1301 Constitution Ave. NW., Washington, DC 20460-0001. The Public Reading Room 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 OPP Docket is (703) 305-5805. Please review the visitor instructions and additional information about the docket available at<E T="03">http://www.epa.gov/dockets.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Anthony Britten, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; telephone number: (703) 308-8179; email address:<E T="03">britten.anthony@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:</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 provides 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 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. 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-2012-0014 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 July 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-2012-0014, 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. Background and Statutory Findings</HD>
        <P>In the<E T="04">Federal Register</E>of April 4, 2012 (77 FR 20334) (FRL-9340-4), EPA<PRTPAGE P="30408"/>issued a notice pursuant to section 408 of FFDCA, 21 U.S.C. 346a, announcing the receipt of a pesticide petition (PP 1E7912) filed by ICR, Inc., 1330 Dillon Heights Avenue, Baltimore, MD 21228-1199 on behalf of Triton Systems, Inc., 200 Turnpike Road, Chelmsford, MA 01824. The petition requested that 40 CFR 180.960 be amended by establishing an exemption from the requirement of a tolerance for residues of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene (CAS Reg. No. 35297-61-1). That notice included a summary of the petition prepared by the petitioner and solicited comments on the petitioner's request. The Agency did not receive any comments in response to this notice.</P>
        <P>Section 408(c)(2)(A)(i) of FFDCA allows EPA to establish an exemption from the requirement for a tolerance (the legal limit for a pesticide chemical residue in or on a food) only if EPA determines that the exemption is “safe.” Section 408(c)(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 use 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 an exemption from the requirement of 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. * * *” and specifies factors EPA is to consider in establishing an exemption.</P>
        <HD SOURCE="HD1">III. Risk Assessment and Statutory Findings</HD>
        <P>EPA establishes exemptions from the requirement of a tolerance only in those cases where it can be shown that the risks from aggregate exposure to pesticide chemical residues under reasonably foreseeable circumstances will pose no appreciable risks to human health. In order to determine the risks from aggregate exposure to pesticide inert ingredients, the Agency considers the toxicity of the inert in conjunction with possible exposure to residues of the inert ingredient through food, drinking water, and through other exposures that occur as a result of pesticide use in residential settings. If EPA is able to determine that a finite tolerance is not necessary to ensure that there is a reasonable certainty that no harm will result from aggregate exposure to the inert ingredient, an exemption from the requirement of a tolerance may be established.</P>

        <P>Consistent with FFDCA section 408(b)(2)(D), EPA has reviewed the available scientific data and other relevant information in support of this action and considered its validity, completeness and reliability and the relationship of this information 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. In the case of certain chemical substances that are defined as polymers, the Agency has established a set of criteria to identify categories of polymers expected to present minimal or no risk. The definition of a polymer is given in 40 CFR 723.250(b) and the exclusion criteria for identifying these low-risk polymers are described in 40 CFR 723.250(d). 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene conforms to the definition of a polymer given in 40 CFR 723.250(b) and meets the following criteria that are used to identify low-risk polymers.</P>
        <P>1. The polymer is not a cationic polymer nor is it reasonably anticipated to become a cationic polymer in a natural aquatic environment.</P>
        <P>2. The polymer does contain as an integral part of its composition the atomic elements carbon, hydrogen, and oxygen.</P>
        <P>3. The polymer does not contain as an integral part of its composition, except as impurities, any element other than those listed in 40 CFR 723.250(d)(2)(ii).</P>
        <P>4. The polymer is neither designed nor can it be reasonably anticipated to substantially degrade, decompose, or depolymerize.</P>
        <P>5. The polymer is manufactured or imported from monomers and/or reactants that are already included on the Toxic Substance Control Act (TSCA) Chemical Substance Inventory or manufactured under an applicable TSCA section 5 exemption.</P>
        <P>6. The polymer is not a water absorbing polymer with a number average molecular weight (MW) greater than or equal to 10,000 daltons.</P>
        <P>Additionally, the polymer also meets as required the following exemption criteria specified in 40 CFR 723.250(e).</P>
        <P>7. The polymer's number average MW is greater than 10,000 daltons. The polymer contains less than 2% oligomeric material below MW 500 and (less than 5% oligomeric material below MW 1,000.</P>
        <P>Thus, 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene meets the criteria for a polymer to be considered low risk under 40 CFR 723.250. Based on its conformance to the criteria in this unit, no mammalian toxicity is anticipated from dietary, inhalation, or dermal exposure to 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene.</P>
        <HD SOURCE="HD1">IV. Aggregate Exposures</HD>

        <P>For the purposes of assessing potential exposure under this exemption, EPA considered that 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene could be present in all raw and processed agricultural commodities and drinking water, and that non-occupational non-dietary exposure was possible. The number average MW of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene is greater than 1 million daltons Generally, a polymer of this size would be poorly absorbed through the intact gastrointestinal tract or through intact human skin. Since 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene conforms to the criteria that identify a low-risk polymer, there are no concerns for risks associated with any potential exposure scenarios that are reasonably foreseeable. The Agency has determined that a tolerance is not necessary to protect the public health.</P>
        <HD SOURCE="HD1">V. Cumulative Effects From Substances With a Common Mechanism of Toxicity</HD>
        <P>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 1, 2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene to share a common mechanism of toxicity with any other substances, and 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene does not appear to produce a toxic metabolite produced by other substances. For the purposes of this tolerance action, therefore, EPA has assumed that 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-<PRTPAGE P="30409"/>methylbenzene 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="HD1">VI. Additional Safety Factor for the Protection of Infants and Children</HD>

        <P>Section 408(b)(2)(C) of FFDCA provides that EPA shall apply an additional tenfold margin of safety for infants and children in the case of threshold effects to account for prenatal and postnatal toxicity and the completeness of the data base unless EPA concludes that a different margin of safety will be safe for infants and children. Due to the expected low toxicity of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-polymer with 2,4-diisocyanato-1-methylbenzene. EPA has not used a safety factor analysis to assess the risk. For the same reasons the additional tenfold safety factor is unnecessary.</P>
        <HD SOURCE="HD1">VII. Determination of Safety</HD>

        <P>Based on the conformance to the criteria used to identify a low-risk polymer, EPA concludes that there is a reasonable certainty of no harm to the U.S. population, including infants and children, from aggregate exposure to residues of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene.</P>
        <HD SOURCE="HD1">VIII. Other Considerations</HD>
        <HD SOURCE="HD2">A. Analytical Enforcement Methodology</HD>
        <P>An analytical method is not required for enforcement purposes since the Agency is establishing an exemption from the requirement of a tolerance without any numerical limitation.</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 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene.</P>
        <HD SOURCE="HD1">IX. Conclusion</HD>

        <P>Accordingly, EPA finds that exempting residues of 1,2-ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene from the requirement of a tolerance will be safe.</P>
        <HD SOURCE="HD1">X. Statutory and Executive Order Reviews</HD>

        <P>This final rule establishes a tolerance 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 rules from review under Executive Order 12866, entitled Regulatory Planning and Review (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 Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use (66 FR 28355, May 22, 2001) or Executive Order 13045, entitled Protection of Children from Environmental Health Risks and Safety Risks (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 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>

        <P>Since tolerances and exemptions that are established on the basis of a petition under section 408(d) of FFDCA, such as the exemption 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, or otherwise have any unique impacts on local governments. 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 Consultation and Coordination with Indian Tribal Governments (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>Although this action does not require any special considerations under Executive Order 12898, entitled Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations (59 FR 7629, February 16, 1994), EPA seeks to achieve environmental justice, the fair treatment and meaningful involvement of any group, including minority and/or low-income populations, in the development, implementation, and enforcement of environmental laws, regulations, and policies. As such, to the extent that information is publicly available or was submitted in comments to EPA, the Agency considered whether groups or segments of the population, as a result of their location, cultural practices, or other factors, may have atypical or disproportionately high and adverse human health impacts or environmental effects from exposure to the pesticide discussed in this document, compared to the general population.</P>
        <HD SOURCE="HD1">XI. 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 rule in the<E T="04">Federal Register</E>. This 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<PRTPAGE P="30410"/>and pests, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: May 11, 2012.</DATED>
          <NAME>Lois Rossi,</NAME>
          <TITLE>Director, Registration Division, 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. In § 180.960, the table is amended by alphabetically adding the following entry immediately above the existing entry which reads in part “1, 2-Ethanediamine, polymer * * *.”</AMDPAR>
          <SECTION>
            <SECTNO>§  180.960</SECTNO>
            <SUBJECT>Polymers; exemptions from the requirement of a tolerance.</SUBJECT>
            <STARS/>
            <GPOTABLE CDEF="s100,16" COLS="2" OPTS="L1,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Polymer</CHED>
                <CHED H="1">CAS No.</CHED>
              </BOXHD>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
              <ROW>
                <ENT I="01">1,2-Ethanediamine,<E T="03">N</E>1-(2-aminoethyl)-, polymer with 2,4-diisocyanato-1-methylbenzene, minimum number average molecular weight (in amu), one million</ENT>
                <ENT>35297-61-1</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
            </GPOTABLE>
          </SECTION>
        </REGTEXT>
        
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12110 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
        <CFR>47 CFR Part 36</CFR>
        <DEPDOC>[CC Docket No. 80-286; FCC 12-49]</DEPDOC>
        <SUBJECT>Jurisdictional Separations and Referral to the Federal-State Joint Board</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Communications Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Interim rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>Jurisdictional separations is the process by which incumbent local exchange carriers (incumbent LECs) apportion regulated costs between the intrastate and interstate jurisdictions. In this document, the Commission extends the current freeze of part 36 category relationships and jurisdictional cost allocation factors used in jurisdictional separations until June 30, 2014. Extending the freeze will allow the Commission to provide stability for carriers that must comply with the Commission's separations rules while the Federal-State Joint Board completes its analysis of, and recommendations for, interim and comprehensive reform of the jurisdictional separations process.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective June 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Daniel Ball, Attorney Advisor, at 202-418-1577, Pricing Policy Division, Wireline Competition Bureau.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>This is a summary of the Commission's Report and Order (R&amp;O) in CC Docket No. 80-286, FCC 12-49, released on May 8, 2012. The full text of this document is available for public inspection during regular business hours in the FCC Reference Center, Room CY-A257, 445 12th Street SW., Washington, DC 20554.</P>
        <P>1. Jurisdictional separations is the process by which incumbent LECs apportion regulated costs between the intrastate and interstate jurisdictions.</P>
        <P>2. The 2001 Separations Freeze Order, 66 FR 33202, June 21, 2001, froze all part 36 category relationships and allocation factors for price cap carriers and all allocation factors for rate-of-return carriers. Rate-of-return carriers had the option to freeze their category relationships at the outset of the freeze. The freeze was originally established July 1, 2001 for a period of five years, or until the Commission completed separations reform, whichever occurred first. The 2006 Separations Freeze Extension Order, 71 FR 29843, May 24, 2006, extended the freeze for three years or until the Commission completed separations reform, whichever occurred first. The 2009 Separations Freeze Extension Order, 74 FR 23955, May 22, 2009, extended the freeze until June 30, 2010. The 2010 Separations Freeze Extension Order, 75 FR 30301, June 1, 2010, extended the freeze until June 30, 2011. The 2011 Separations Freeze Extension Order, 76 FR 30840, May 27, 2011, extended the freeze until June 30, 2012.</P>
        <P>3. The NPRM proposed extending the current freeze of part 36 category relationships and jurisdictional cost allocation factors used in jurisdictional separations, which freeze would otherwise expire on June 30, 2012, until June 30, 2014. The R&amp;O adopts that proposal. The extension will allow the Commission to continue to work with the Federal-State Joint Board on Separations to achieve comprehensive separations reform. Pending comprehensive reform, the Commission concludes that the existing freeze should be extended on an interim basis to avoid the imposition of undue administrative burdens on incumbent LECs. The overwhelming majority of parties filing comments in response to the NPRM supported extension of the freeze.</P>
        <P>4. The extended freeze will be implemented as described in the 2001 Separations Freeze Order. Specifically, price-cap carriers would use the same relationships between categories of investment and expenses within part 32 accounts and the same jurisdictional allocation factors that have been in place since the inception of the current freeze on July 1, 2001. Rate-of-return carriers would use the same frozen jurisdictional allocation factors, and would use the same frozen category relationships if they had opted previously to freeze those as well.</P>
        <P>5. As required by the Regulatory Flexibility Act, the Commission certifies that these regulatory amendments will not have a significant impact on small business entities.</P>
        <HD SOURCE="HD1">Paperwork Reduction Act (PRA)</HD>
        <P>6. The R&amp;O does not propose any new or modified information collections subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does not contain any new, modified, or proposed “information collection burden for small business concerns with fewer than 25 employees,” pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, 44 U.S.C. 3506(c)(4).</P>
        <P>7. The Commission will send a copy of the R&amp;O in a report to be sent to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).</P>
        <HD SOURCE="HD1">Ordering Clauses</HD>

        <P>8. Pursuant to sections 1, 4(i) and (j), 214(e), 254, and 410 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 214(e), 254, and 410, the R&amp;O is<PRTPAGE P="30411"/>adopted. The report and order shall be effective June 22, 2012.</P>
        <P>9. The Commission's Consumer and Governmental Affairs Bureau, Reference Information Center, shall send a copy of the R&amp;O, including the Final Regulatory Flexibility Certification, to the Chief Counsel for Advocacy of the Small Business Administration.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 47 CFR Part 36</HD>
          <P>Communications common carriers, Reporting and recordkeeping requirements, Telephone, and Uniform System of Accounts.</P>
        </LSTSUB>
        <SIG>
          <FP>Federal Communications Commission.</FP>
          <NAME>Marlene H. Dortch,</NAME>
          <TITLE>Secretary.</TITLE>
        </SIG>
        
        <P>For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 36 as follows:</P>
        <REGTEXT PART="36" TITLE="47">
          <PART>
            <HD SOURCE="HED">PART 36—JURISDICTIONAL SEPARATIONS PROCEDURES; STANDARD PROCEDURES FOR SEPARATING TELECOMMUNICATIONS PROPERTY COSTS, REVENUES, EXPENSES, TAXES AND RESERVES FOR TELECOMMUNICATIONS COMPANIES</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 36 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>47 U.S.C. 151, 154(i) and (j), 205, 221(c), 254, 403, and 410.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="36" TITLE="47">
          <AMDPAR>2. In 47 CFR part 36 remove the words “June 30, 2012” and add, in their place, the words “June 30, 2014” in the following sections:</AMDPAR>
          <AMDPAR>a. Section 36.3(a) through (e);</AMDPAR>
          <AMDPAR>b. Section 36.123(a)(5) and (a)(6);</AMDPAR>
          <AMDPAR>c. Section 36.124(c) and (d);</AMDPAR>
          <AMDPAR>d. Section 36.125(h) and (i);</AMDPAR>
          <AMDPAR>e. Section 36.126(b)(6), (c)(4), (e)(4), and (f)(2);</AMDPAR>
          <AMDPAR>f. Section 36.141(c);</AMDPAR>
          <AMDPAR>g. Section 36.142(c);</AMDPAR>
          <AMDPAR>h. Section 36.152(d);</AMDPAR>
          <AMDPAR>i. Section 36.154(g);</AMDPAR>
          <AMDPAR>j. Section 36.155(b);</AMDPAR>
          <AMDPAR>k. Section 36.156(c);</AMDPAR>
          <AMDPAR>l. Section 36.157(b);</AMDPAR>
          <AMDPAR>m. Section 36.191(d);</AMDPAR>
          <AMDPAR>n. Section 36.212(c);</AMDPAR>
          <AMDPAR>o. Section 36.214(a);</AMDPAR>
          <AMDPAR>p. Section 36.372;</AMDPAR>
          <AMDPAR>q. Section 36.374(b) and (d);</AMDPAR>
          <AMDPAR>r. Section 36.375(b)(4) and (b)(5);</AMDPAR>
          <AMDPAR>s. Section 36.377(a), (a)(1)(ix), (a)(2)(vii), (a)(3)(vii), (a)(4)(vii), (a)(5)(vii), and (a)(6)(vii);</AMDPAR>
          <AMDPAR>t. Section 36.378(b)(1);</AMDPAR>
          <AMDPAR>u. Section 36.379(b)(1) and (b)(2);</AMDPAR>
          <AMDPAR>v. Section 36.380(d) and (e);</AMDPAR>
          <AMDPAR>w. Section 36.381(c) and (d); and</AMDPAR>
          <AMDPAR>x. Section 36.382(a).</AMDPAR>
          
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12548 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6712-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
        <CFR>47 CFR Parts 36 and 54</CFR>
        <DEPDOC>[WC Docket Nos. 10-90, 05-337; DA 12-646]</DEPDOC>
        <SUBJECT>Connect America Fund; High-Cost Universal Service Support</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Communications Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>In this order, the Wireline Competition Bureau (Bureau) adopts the methodology for establishing reasonable limits on recovery of capital costs and operating expenses or “benchmarks” for high cost loop support (HCLS). The methodology the Bureau adopts, builds on the analysis proposed in the<E T="03">USF/ICC Transformation FNPRM,</E>but also includes several changes in response to the comments from two peer reviewers and interested parties and based on further analysis by the Bureau. These changes significantly improve the methodology while redistributing funding to a greater number of carriers to support continued broadband investment. The methodology the Bureau adopts today is described in detail in a technical appendix to the order.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective June 22, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Amy Bender, Wireline Competition Bureau, (202) 418-1469, Katie King, Wireline Competition Bureau, (202) 418-7491 or TTY: (202) 418-0484.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>This is a summary of the Commission's Order in WC Docket Nos. 10-90, 05-337; DA 12-646, released on April 25, 2012. The full text of this document is available for public inspection during regular business hours in the FCC Reference Center, Room CY-A257, 445 12th Street SW., Washington, DC 20554. Or at the following Internet address:<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0425/DA-12-646A1.pdf</E>.</P>
        <HD SOURCE="HD1">I. Introduction</HD>
        <P>1. In the<E T="03">USF/ICC Transformation Order,</E>76 FR 73830, November 29, 2011, the Commission comprehensively reformed universal service funding for high-cost, rural areas, adopting fiscally responsible, accountable, incentive-based policies to preserve and advance voice and broadband service while ensuring fairness for consumers who pay into the universal service fund (Fund). As a component of those reforms, the Commission adopted a benchmarking rule intended to moderate the expenses of those rate-of-return carriers with very high costs compared to their similarly situated peers, while further encouraging other rate-of-return carriers to advance broadband deployment. The Commission sought comment on a specific methodology to limit reimbursable capital and operating costs within HCLS and directed the Bureau to finalize a methodology after receiving public input in response to the proposal.</P>

        <P>2. The methodology the Bureau adopts today, which is described in more detail in the technical appendix, summarized below and available in its entirety at Appendix A,<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0425/DA-12-646A1.pdf,</E>builds on the analysis proposed in the<E T="03">USF/ICC Transformation FNPRM,</E>76 FR 78384, December 16, 2011, but also includes several changes in response to the comments from two peer reviewers and interested parties and based on further analysis by the Bureau. These changes significantly improve the methodology while redistributing funding to a greater number of carriers to support continued broadband investment. The Bureau now estimates that support to approximately 100 study areas with very high costs relative to similarly situated peers will be limited, while approximately 500 study areas will receive additional, redistributed support to fund new broadband investment.</P>

        <P>3. In view of the Commission's intent to “phase in reform with measured but certain transitions,” the Bureau will phase in the application of these limits. As directed by the Commission, the Bureau is providing public notice in Appendix B (<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0425/DA-12-646A1.pdf</E>) regarding the updated company-specific capped values that will be used in the HCLS formula. These capped values (also referred to as limits or benchmarks) will be used from July 1, 2012 through December 31, 2012, in place of an individual company's actual cost data for those rate-of-return cost companies whose costs exceed the caps. While the HCLS benchmarks will be implemented beginning July 1, 2012, support amounts will not be reduced immediately by the full amount as calculated using the benchmarks. Instead, support will be reduced commencing in July 2012 by twenty-five percent of the difference between the support calculated using the study area's reported cost per loop and the support as limited by the benchmarks, unless that reduction<PRTPAGE P="30412"/>would exceed ten percent of the study area's support as otherwise would be calculated based on NECA cost data, absent implementation of this rule. Beginning January 1, 2013, support will be reduced by fifty percent of the difference between the support calculated using the study area's reported cost per loop and the support as limited by the benchmarks in effect for 2013. Beginning January 1, 2014, when the Bureau expects to have updated wire center boundaries, as discussed below, the Bureau will update the regressions (the coefficients), and support will be limited, in full, by the benchmarks in effect for 2014. When fully implemented, the Bureau estimates that the roughly 100 study areas that are capped would see approximately $65 million in support reductions, while the roughly 500 study areas that are not capped would receive approximately $55 million in additional support for broadband investment.</P>
        <HD SOURCE="HD1">II. Discussion</HD>
        <P>4. In this order, the Bureau implements the Commission's rule to use benchmarks to impose reasonable limits on reimbursable capital and operating costs for rate-of-return carriers for purposes of determining HCLS and adopt the methodology that the Bureau will use to determine carrier-specific benchmarks for rate-of-return cost companies. Consistent with parameters set forth by the Commission, the Bureau compares companies' costs to those of similarly situated companies using statistical techniques to determine which companies shall be deemed similarly situated. As described in more detail in the technical appendix, summarized below, the Bureau uses NECA cost data and quantile regression analyses to generate a capital expense (capex) limit and an operating expense (opex) limit for each rate-of-return cost company study area. The regression-derived limits are set at the 90th percentile of costs for capex and opex compared to similarly situated companies. The capped values will be used in NECA's loop cost algorithm in place of an individual company's actual cost data for those rate-of-return cost companies whose costs exceed the caps, which will result in reduced support amounts for these carriers. As directed by the Commission, NECA will modify the HCLS formula for average schedule companies to reflect the caps derived from the cost company data. Specifically, the Bureau directs NECA to file proposed modifications to the average schedule formula within 30 days of the release of this order. After application of the benchmark methodology, HCLS will be recalculated to account for the additional support available under the overall cap on total HCLS. Additional support will be redistributed to carriers whose loop cost is not limited by the benchmark methodology, and those carriers are required to use the additional support to preserve and advance the availability of modern networks capable of delivering broadband and voice telephony service. Beginning January 1, 2014, carriers unaffected by the benchmark limits will receive additional redistributed support as calculated using a lower adjusted national average cost per loop (NACPL). The lower NACPL will be the NACPL that would be used if total reduced support, as a result of the application of the benchmark methodology, is redistributed to all carriers. Support to carriers affected by the benchmark will be calculated using the NACPL established pursuant to § 36.622 of the Commission's rules. During the transition periods July 1, 2012 to December 31, 2012 and January 1, 2013 to December 31, 2013, the total amount of HCLS available to study areas not affected by the benchmark methodology will be the capped HCLS, as calculated pursuant to § 36.603(a) of the Commission's rules, less the total amount to be paid to study areas affected by the benchmark methodology during the transition periods. HCLS paid to the study areas not affected by the benchmark methodology will be calculated using an adjusted NACPL to produce the capped support pursuant to § 36.603(a) of the Commission's rules. The Bureau directs NECA to provide to the Bureau a recalculated NACPL for redistribution and a schedule of HCLS for all carriers for the six-month period of July 1, 2012 to December 31, 2012 within 30 days of the release of this order. Consistent with current practice, the filing NECA makes each October with the Commission shall include NACPL information and the schedule of HCLS for all carriers for the next year.</P>

        <P>5. The methodology that the Bureau adopts builds on the proposed methodology in Appendix H of the<E T="03">USF/ICC Transformation Order and FNPRM,</E>but includes some significant improvements based on the many useful comments and ex parte presentations in this proceeding, the comments of two peer reviewers, and further analysis by the Bureau. As in the proposed methodology, the Bureau uses quantile regression analysis and NECA cost data to generate a set of limits for each rate-of-return cost company study area and uses the regression-derived limits in NECA's formula for calculating loop cost. The Bureau modifies the proposal, however, by reducing the overall number of regressions from eleven to two: one for capital expenditures and one for operating expenditures. In addition, Commission staff examined and tested additional independent variables that were available from publicly available data sources, placed additional data sources in the record, and updated the methodology to reflect this further analysis. Below, the Bureau explains these changes to the proposed methodology and responds to other significant issues raised in the record.</P>
        <HD SOURCE="HD2">A. Number of Regressions</HD>

        <P>6. The most significant change in methodology is that this analysis generates two caps for each company—a capex limit and an opex limit. The methodology proposed in the<E T="03">FNPRM</E>generated eleven different caps for each company that would have limited the values in eleven of the twenty-six steps in NECA's loop cost algorithm. Based on a review of the record and further analysis, the Bureau concludes that a better approach is to divide a company's total cost in step twenty-five of the algorithm into its capex and opex components and use two regressions instead of using eleven independent regressions.</P>

        <P>7. Commenters took differing views on the appropriate number of regressions. Commenters supporting more aggregation argue that limiting total cost, or separately limiting capital and operating expenses, is a better approach and suggest the Bureau use a single regression equation, or at most two equations. One peer reviewer also recommended this approach. Conversely, some commenters argued that the proposed eleven limits would not have allowed the algorithm to calculate support as it was intended, and proposed that costs be further disaggregated to the underlying cost elements,<E T="03">i.e.,</E>“data lines,” that make up each algorithm step.</P>

        <P>8. The choice of how many cost limits to adopt reflects a balancing of considerations. Using a greater number of regressions makes it possible to identify outliers at a granular level, but fails to account for the interrelationships within the cost categories that feed into the twenty-six step algorithm as identified in the record and in the peer review. In contrast, using fewer regressions limits the Commission's ability to identify outliers, but enables carriers to account for the needs of individual networks and recognizes the fact that carriers may have higher costs in one category that may be offset by lower costs in others.<PRTPAGE P="30413"/>
        </P>
        <P>9. Balancing these considerations, the Bureau concludes that it is appropriate to reduce the number of separate cost caps set from the proposed approach in Appendix H, but to retain separate limits for capex and opex. The Bureau is persuaded that limiting eleven separate cost categories could have the effect of overly limiting carriers' ability to optimize among spending tradeoffs. At the same time, an approach that only limited total cost would provide fewer safeguards against overspending. Capital and operating expenditures reflect fundamentally different measures of business performance. Using two regressions instead of one provides carriers flexibility to manage their operations, while still enabling the Commission to identify more instances where carriers spend markedly more in either category than their similarly-situated peers.</P>
        <P>10. The approach the Bureau adopts is also supported by other considerations. In particular, the methodology the Bureau adopts simplifies the process of fitting the benchmark computation within the structure of NECA's loop cost algorithm. Instead of potentially limiting values in eleven of the twenty-six steps, only the value for companies that exceed the caps in step twenty-five, total unseparated costs is changed. Although the components of step twenty-five are divided into capex and opex components for purposes of running two regressions and separate capex and opex limits are created, the two components are added together for purposes of calculating total costs, study area cost per loop, and ultimately HCLS.</P>
        <HD SOURCE="HD2">B. Defining Capex and Opex</HD>
        <P>11. As discussed below and in more detail in the technical appendix, the Bureau defines capex as the plant-related costs in step twenty-five, which include return on capital and depreciation, and defines opex as the remaining components that are added in step twenty-five to calculate total costs. These revised definitions of capex and opex differ from those used in the proposed methodology in several important ways.</P>
        <P>12. The most important revision to the capex definition is the treatment of depreciation in relationship to capital costs. To determine capex limits, the proposed methodology created separate caps for two categories of gross plant (cable and wire facilities, and central office equipment), and for the depreciation and amortization associated with those plant categories. In the revised methodology, the Bureau defines capex as the return on net plant and depreciation. Many commenters pointed out that the proposed methodology did not properly account for accumulated depreciation and depreciation expense, and the Bureau agrees. The Bureau does not agree, however, with those who argue that depreciation expense should not be included in the regression analysis. Although depreciation is termed an “expense” for regulatory accounting purposes, as the Rural Associations and several other commenters point out, depreciation expense is properly considered as a component of capital costs because it is directly related and calculated as a result of capital investment. The proposed methodology would have limited gross plant, but did not adjust the accumulated depreciation or depreciation expense as would have been necessary when gross plant was limited by the benchmark. The method the Bureau now adopts includes net plant rather than gross plant, so the methodology appropriately accounts for accumulated depreciation.</P>

        <P>13. The revised opex definition includes the remaining components that are summed in step 25 in the NECA algorithm to determine total unseparated costs. The proposed methodology excluded three of these—corporate operations expense, operating taxes, and rents—which are now included in determining opex. In the<E T="03">USF/ICC Transformation Order,</E>the Commission revised the formula for limiting recovery of corporate operations expenses for HCLS in § 36.621(a)(4) of the Commission's rules. Because of this separate limitation, the proposed methodology did not create an additional limit for corporate operations expense. Now that the Bureau is analyzing all operating costs as a whole, it is appropriate to include corporate operations expense, as well as the other operating expenses, taxes and rents. For purposes of this analysis, the methodology will use either a carrier's actual corporate operations expense or the amount allowable under § 36.621(a)(4), whichever is less. Using the allowable amount, avoids restricting carriers affected by § 36.621(a)(4) twice for their corporate operations expenses above that limitation.</P>
        <HD SOURCE="HD2">C. Selection of Independent Variables</HD>

        <P>14. The revised methodology also includes additional independent variables that were suggested by commenters and one of the peer reviewers, and eliminates some that had been included in the methodology proposed in the<E T="03">USF/ICC Transformation FNPRM,</E>because the Bureau found the new variables to be better estimators of cost. In the<E T="03">USF/ICC Transformation FNPRM,</E>the Commission noted that NRIC's Capital Expenditure Study included variables for frost index, wetlands percentage, soils texture, and road intersections frequency, and invited commenters advocating the inclusion of additional independent variables to identify the data source, completeness, and cost of the additional data, if not publicly available. The Commission specifically sought comment on sources of soil data other than the Soil Survey Geographic Database (SSURGO) used in the NRIC study and how to deal with areas where the SSURGO data are missing or incomplete. Many commenters suggest additional variables, and Bureau staff examined those for which data were available. The technical appendix describes in more detail the independent variables included in the methodology, those examined but excluded, and those that commenters suggested but that could not be included because the data were either unavailable to the Commission, nonpublic, or could not be generated at the study area level. The variables included in the revised methodology are briefly discussed below.</P>

        <P>15. The methodology uses cost-driving variables directly where available and proxies that are sufficiently correlated with cost drivers where necessary. For example, the number of loops is a direct measure of a study area's scale, and the number of road miles is a proxy for total loop length. Because most cable follows roads, it is reasonable to believe that the number of road miles in a study area is a good proxy for the cabling required to serve that area. Some commenters suggest that the age of plant is an important variable, and the Bureau agrees. Many carriers have recently replaced aging plant with modern communications networks capable of providing voice and broadband service, and those carriers are not similarly situated to carriers with plant that is more fully depreciated. Accordingly, while data on the average age of plant are not readily available, the revised methodology now includes a variable for the percentage of plant that has not yet been depreciated, which is highly correlated with plant age. The revised methodology also includes variables that account for customer dispersion: density (housing units divided by square miles); number of exchanges, which roughly accounts for the population centers in a study area; and portion of households in urbanized clusters or urbanized areas.<PRTPAGE P="30414"/>
        </P>
        <P>16. In addition, the revised methodology includes several geographic independent variables that Bureau staff developed from various data sources. First, the Bureau agrees with the many commenters who argue that the proposed methodology should include soils data. Bureau staff used the U.S. General Soil Map (STATSGO2) soils database to construct two soil-based variables that are included in the revised methodology: depth of bedrock, and soils difficulty. Although the SSURGO database contains a richer set of soil variables and data at a more granular level than STATSGO2, it does not provide data for the entire country. Some commenters argue that the SSURGO data should be used where available and STATSGO2 for the remaining study areas, but the Bureau declines to use an approach that treats study areas differently depending on the availability of the data. In addition, NRIC's Capital Expenditure Study includes a frost index developed from the SSURGO data, but this information is not available for all areas in the STATSGO2 database. Several commenters discuss the need for such a frost index. As a proxy for this information, Bureau staff developed a climate variable based on the average annual minimum temperature from the U.S. Department of Agriculture's hardiness index.</P>

        <P>17. The Bureau also agrees with commenters who emphasized that carriers serving particular areas such as Alaska, Tribal lands, and national parks could face unique challenges. In particular, some commenters suggest that it is more costly to provide service on Tribal lands; the methodology now includes an additional independent variable for the percentage of each study area that is a federally-recognized Tribal land. In addition, Alaskan commenters argued that Alaska is unique because of its harsh climate and other factors; accordingly, the methodology now includes a variable indicating whether or not the study area is in Alaska. Some commenters also argued that it is more difficult to construct and maintain networks in national parks; the methodology also now includes an additional independent variable for the percentage of each study area that lies within a national park. (In the future, if sufficient data become available, the Bureau may consider including a variable that would account for all federal lands (<E T="03">i.e.,</E>that is not limited to national park lands).) NRIC's Operating Expenses Study found that operating expenses were correlated with regions, and Bureau staff tested variables for the four census-based regions: Western, Midwest, Northeast and South. The revised methodology also includes the two that were significant: the Midwest and Northeast.</P>
        <HD SOURCE="HD2">D. Use of Boundary Data</HD>
        <P>18. All geographic independent variables were rolled up to the study area using Tele Atlas wire center data, which is a widely-used commercially available comprehensive source for this information. Several commenters question the accuracy of those boundaries. For example, the Rural Associations point to a NECA study that concluded many of the Tele Atlas boundaries “differ quite significantly from actual boundaries.” In addition, some companies that argue that their boundaries, and in particular the resulting measure of square miles in their service territories, were inaccurate in the proposed methodology have asked how they could correct errors in the data.</P>
        <P>19. The only comprehensive set of wire center boundaries are those commercially available from companies such as Tele Atlas and GeoResults. There is precedent for using Tele Atlas' (or a predecessor company's) boundaries. In particular, the Commission's hybrid cost proxy model uses a customer location data set that was created using an earlier version of the Tele Atlas boundaries.</P>
        <P>20. The Bureau declines to adopt NRIC's proposal that study area boundaries be modified before implementing the regression methodology based on publicly available state maps. While many states have study area maps available on-line, the vast majority of those maps will not allow Commission staff to calculate the information required for the analysis adopted today. Variables like road miles and those related to local soil conditions require having GIS-based boundaries that can be overlaid with other GIS-based data sets (like road networks and databases of soil conditions). It is not practical to derive such information from printed maps, images on Web sites or PDF files with any accuracy. In addition, it is not clear whether state maps represent authoritative boundaries. Therefore, the Bureau does not believe that the proposal by NRIC is a practical means to derive more reliable study area boundary information quickly.</P>
        <P>21. Nevertheless, the Bureau recognizes concerns remain regarding inaccuracies in this data set, and the Bureau adopts a two-part process to address these concerns. First, in the near term, the Commission will provide a streamlined, expedited waiver process for carriers affected by the benchmarks to correct any errors in their study area boundaries. Second, to correct any remaining inaccuracies in the Tele Atlas data set, the Bureau will issue a Public Notice to initiate the process of collecting study area boundaries directly from all rate-of-return carriers. The Public Notice will seek comment on data specifications for a data request that the Bureau would issue after receiving input from the public and interested parties. The Bureau expects that it will have updated boundary data before the Bureau reruns the regression to calculate capex and opex limits that will be used for calculating support for 2014, at which time the limits will apply in full.</P>
        <P>22. In light of the protections the Bureau adopts to address errors in the Tele Atlas data, the Bureau declines to delay implementation of the benchmarks beyond the 18-month phase-in described below. The Commission anticipated that “HCLS benchmarks will be implemented for support calculations beginning July 2012.” In many cases, more accurate boundaries would not change whether or not a particular company is capped or not by the benchmark methodology. And the streamlined, expedited waiver process the Bureau adopts to correct boundaries in the near-term will address those specific instances where an inaccurate boundary could result in a company losing more support than it would otherwise. Consistent with existing practice, if such a waiver request is granted and a true-up is required, a carrier' support amounts will be trued-up back to July 1, 2012.</P>

        <P>23. Specifically, any carrier whose actual boundaries are different from the boundaries used by the Bureau in the methodology adopted today may file a petition for waiver in accordance with § 1.3 of the Commission's rules. To enable the Bureau to determine whether there are special circumstances (<E T="03">i.e.,</E>inaccurate boundaries) supporting a waiver, petitioners must provide accurate boundary information in a manner and format that Bureau staff can readily evaluate and process. In Appendix C (<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0425/DA-12-646A1.pdf</E>), the Bureau sets forth a template for filing study area maps to help potential petitioners file information efficiently, accurately, and in a manner that will permit the Bureau to evaluate and process the information expeditiously.</P>

        <P>24. While potential petitioners may choose to submit boundary information in other formats, the Bureau cautions<PRTPAGE P="30415"/>that information submitted in other formats may require additional processing, and that the processing could introduce errors and/or delay. For example, if petitioners file hard copy maps, those would need to be rectified (stretched) to have a spatial reference, and digitized by Bureau staff. Accordingly, petitioners that do not wish to use the Bureau's template may wish to consult with Bureau staff in advance of filing boundary information in alternate formats to ensure that the information submitted can be processed quickly.</P>

        <P>25. Regardless of how the boundary information is filed, an officer of the company must certify under penalty of perjury that the information provided is accurate. The Bureau also emphasizes that carriers using this waiver process solely to seek changes to their study area boundaries used in the benchmark methodology are not required to file the financial data and other information required for waivers as set forth in the<E T="03">USF/ICC Transformation Order.</E>The financial data and other information set forth in the<E T="03">USF/ICC Transformation Order</E>is relevant for petitions for waiver alleging that “reductions in current support levels would threaten [a carrier's] financial viability, imperiling service to consumers in the areas they serve.” In contrast, when considering whether there are special circumstances and the public interest is served by granting a waiver of the benchmark methodology, the Bureau will be focusing on ensuring that accurate data is used to perform the necessary computations, regardless of the extent of support reduction. In addition, carriers using this streamlined, expedited waiver process to make technical corrections to their study area boundaries need not pay the filing fee associated with requests for waiver of Part 36 separations rules. With the safeguard provided by this streamlined, expedited waiver process, the Bureau concludes it is appropriate to use the Tele Atlas boundaries on an interim basis.</P>
        <HD SOURCE="HD2">E. Use of Quantile Regression and the 90th Percentile Cost Threshold</HD>
        <P>26. As discussed in the technical appendix, the Bureau concludes that quantile regression analysis is the appropriate methodology to use to identify study areas that have capex and opex costs that are much higher than those of their similarly situated peers and to cap their cost recovery at amounts that are no higher than the vast majority of similarly situated study areas. The Bureau also concludes that it should set the regression-derived limits at the 90th percentile of costs for capex and opex compared to similarly situated companies.</P>

        <P>27. Some commenters criticized the use of the 90th percentile, arguing that it was unreasonable because approximately forty percent of study areas in the methodology proposed in the<E T="03">FNPRM</E>would have been subject to limits in one or more of the eleven cost categories used in that analysis. On further consideration, the Bureau has concluded that the proposed methodology was over-inclusive because a carrier that exceeded the cap in only one category, but had costs well below the caps in the other ten, would have received reduced support. As discussed above, however, the Bureau is adopting a revised methodology that relies on aggregated capex and opex caps. Applying the revised methodology with a 90th percentile cap limits reimbursable costs for only fifteen percent of the study areas of cost companies. The net effect is fewer study areas will see reduced support, and more companies will see additional support, due to the distribution of support among HCLS recipients.</P>
        <P>28. Accordingly, the Bureau does not agree with commenters who argue that the methodology should limit at most those carriers with costs above the 95th percentile. Indeed, the Bureau notes that using the 90th percentile with the modifications adopted today leads to approximately the same number of study areas with capped costs as would have been the case if the 95th percentile were used with the Appendix H methodology. The Bureau concludes that using the 90th percentile as part of the revised methodology appropriately balances the Commission's twin goals of providing better incentives for carriers to invest prudently and operate more efficiently, and providing additional support to further advance broadband deployment. By providing additional, redistributed HCLS to carriers that do not have the highest costs among similarly situated companies, the budget for high-cost support should enable more broadband deployment than continued funding of more of the highest cost companies at current levels.</P>

        <P>29. In view of the fact that many carriers will receive additional, redistributed HCLS, the Bureau takes this opportunity to emphasize the obligations that attach to the additional funding. Section 254(e) of the Act requires that this additional funding—like all federal universal service support—be used “only for the provision, maintenance, and upgrading of facilities and services for which the support is intended.” Consistent with the<E T="03">USF/ICC Transformation Order,</E>the overarching intent is to preserve and advance the availability of modern networks capable of delivering broadband and voice telephony service. Indeed, all rate-of-return carriers are required to provide broadband upon reasonable request beginning July 1, 2012, as a condition of receiving federal high-cost universal service support. Carriers must use their high-cost universal service support—including any additional funding—in compliance with these requirements.</P>
        <P>30. The Bureau further notes that all rate-of-return carriers will be required to file a new build-out plan, which accounts for the new broadband obligations, in 2013. Those plans must be updated annually to reflect progress on network improvements and build-out, which should reflect the impact of high-cost universal service support, including any additional funding. The Commission will be reviewing those plans and updates, as well as other information provided in the annual § 54.313 reports, to ensure that carriers are complying with their public interest obligations, including their build-out requirements. Further, the progress report on those plans will be part of the factual basis that supports the annual § 54.314 certification by the states or carriers that support is being used for the intended purposes.</P>
        <HD SOURCE="HD2">F. Other Issues</HD>
        <P>31.<E T="03">Retroactivity.</E>The Bureau disagrees with commenters who assert that applying the benchmarks to limit HCLS payments constitutes retroactive rulemaking. A rule does not operate retroactively merely because it is “applied in a case arising from conduct antedating [its] enactment” or “upsets expectations based on prior law.” Rather, a rule operates retroactively if it “takes away or impairs vested rights acquired under existing law, or creates a new obligation, imposes a new duty, or attaches a new disability in respect to transactions or considerations already past.”</P>

        <P>32. Here, it cannot fairly be said that the application of these benchmarks will take away or impair a vested right, create a new obligation, impose a new duty, or attach a new disability in respect to the carriers' previous expenditures. There is no statutory provision or Commission rule that provides companies with a vested right to continue to receive support at particular levels or through the use of a particular methodology. Although application of the benchmarks may affect the amount of support a carrier receives for expenditures made in 2010<PRTPAGE P="30416"/>(or before), it does not change the legal landscape in which those expenditures were made. Rather, as the Commission observed in the<E T="03">USF/ICC Transformation Order,</E>“section 254 directs the Commission to provide support that is sufficient to achieve universal service goals, [but] that obligation does not create any entitlement or expectation that ETCs will receive any particular level of support or even any support at all.”</P>
        <P>33. Indeed, consistent with the Commission's focus on service to consumers, the Commission declined to provide any group of companies with a blanket exception from universal service reforms for past investments, recognizing that the current rules were not efficiently serving universal service goals. Providing such exceptions would have made it impossible to reform the system over any reasonable time period. Instead, the Commission established an avenue for companies to demonstrate a need for temporary and/or partial relief from the new rules to ensure its customers do not lose service. Moreover, the decision to phase in the application of the limits over 18 months provides a greater opportunity for carriers to make any necessary adjustments.</P>
        <P>34. Critically, the revised methodology now includes an independent variable that captures age of plant, further addressing “retroactivity” concerns with respect to capex. Adding this variable raises the cost limits for carriers that have invested recently, by allowing their costs to be judged relative to a peer group of other carriers that have also invested recently. The Bureau also notes that application of the limits to operating expenses clearly presents no “retroactivity” concerns.</P>
        <P>35.<E T="03">Predictability and Sufficiency.</E>The Bureau also rejects the argument that implementing these benchmarks will undermine the predictability or sufficiency of support. At the outset, the Bureau notes that this general argument effectively seeks reconsideration of the Commission's policy judgment to adopt a rule imposing limits on capex and opex in the first instance, which is beyond the scope of this order to implement a methodology as directed by the Commission. As the Commission explained in the<E T="03">USF/ICC Transformation Order,</E>the HCLS mechanism operates in fundamentally the same way with or without the benchmarks. In both cases, a certain amount of unpredictability exists because a carrier's support depends in part on a national average that changes from year to year, and companies “can only estimate whether their expenditures will be reimbursed through HCLS.” Moreover, as the Commission has suggested, if anything, support will now be more predictable for most carriers because the new rule discourages companies from exhausting the fund by over-spending relative to their peers. The addition of several new independent variables that capture attributes that do not change over time (e.g., depth of bedrock, soils difficulty, the percentage of study area that is a federally-recognized Tribal land, the percentage of each study area that lies within a national park, whether the study area is in the Midwest, Northeast, or Alaska) also improves the predictability of support. In addition, as described below, the same regression coefficients will be used for capex and opex in 2013 as those calculated for 2012, which will provide more certainty as the application of the limits is phased in. Accordingly, commenters' concerns that support amounts will fluctuate radically from year to year are speculative and unpersuasive.</P>

        <P>36. As for sufficiency, the very purpose of the benchmarks is to ensure that carriers as a whole receive a sufficient (but not excessive) amount of HCLS, which is one component of high-cost support. As discussed above, the methodology compares carriers' costs to those of similarly situated carriers and reduces HCLS only to the extent that a carrier over-spends relative to its peers. Moreover, excess support is redistributed to carriers that otherwise may be at risk of losing HCLS altogether, and may not otherwise be well-positioned to further advance broadband deployment. Thus, the application of benchmarks is not only consistent with the Commission's interpretation of “sufficient” as requiring that the fund remain “sustainable,” which the DC Circuit found to be a reasonable interpretation in<E T="03">Rural Cellular Association</E>v.<E T="03">FCC,</E>but it also complies with the stated intent of section 254 that the Commission's universal service mechanisms should preserve<E T="03">and advance</E>universal service.</P>
        <HD SOURCE="HD2">G. Implementation</HD>
        <P>37. The limits on costs eligible for reimbursement though HCLS will be implemented beginning July 1, 2012, but support amounts will not be reduced immediately by the full amount as calculated using the benchmarks. Instead, support will be reduced beginning July 1, 2012 and until December 31, 2012 by twenty-five percent of the difference between the support calculated using the study area's cost per loop as reported by NECA and the support as limited by the benchmarks, however, the reduction shall not be greater than ten percent of the study area's HCLS support based on the cost data filed with NECA. Beginning January 1, 2013 and until December 31, 2013, support will be reduced by fifty percent of the difference between the support calculated using the study area's cost per loop as reported by NECA in October 2012 and the support as limited by the benchmarks in effect for 2013. Beginning January 1, 2014, when the Bureau expects to have updated wire center boundaries, as discussed above, the regression coefficients will be updated and the cost data submitted by NECA in October 2013 will be incorporated, and support will be limited, in full, by the benchmarks in effect for 2014.</P>
        <P>38. By delaying the full impact of the reductions until 2014, companies who would be adversely affected are provided adequate time to make adjustments and, if necessary, demonstrate that a waiver is warranted either to correct inaccurate boundary information and/or “to ensure that consumers in the area continue to receive voice service.” For many companies affected by the benchmarks, the initial twenty-five percent phase-in reduction is a small percentage of their total HCLS. For those whose reduction would be more than ten percent of their HCLS based on NECA cost data, the reduction is limited to ten percent for the remainder of 2012. Moreover, continuing to limit the impact of support reductions in 2013 provides an additional opportunity for carriers to make further adjustments. On balance, the Bureau finds that this measured transition strikes a reasonable balance between the goals of promptly making available additional support to those carriers who, under the new rule, will receive redistributed HCLS to further advance broadband deployment and providing an adequate amount of time for carriers that will experience reductions in support to make adjustments.</P>

        <P>39. The Bureau also take steps to provide more certainty regarding the operation of the limits on capex and opex. In particular, to provide carriers with more certainty regarding the impact of the fifty percent phase-in in 2013, the same regression coefficients for capex and opex will be used in 2013 as those calculated for 2012, which enables carriers to estimate their 2013 support now. That is, the regressions will not be updated, but individual study area caps will be recalculated<PRTPAGE P="30417"/>based on the 2011 cost data filed with NECA, which will be submitted to the Commission in NECA's annual filing in October 2012. This will allow higher caps for those study areas with significant network investment in 2011. By taking into account the 2011 cost data filed with NECA, study areas that may not have qualified for HCLS based on their costs in prior years may be eligible to qualify for HCLS in 2013, thereby providing those study areas with additional support for broadband investment. In addition, study areas whose costs drop below their computed benchmark for 2013 no longer will be considered capped, and therefore will receive support based on their own actual costs and will be eligible to receive redistributed support like other uncapped study areas.</P>
        <HD SOURCE="HD1">III. Procedural Matters</HD>
        <HD SOURCE="HD2">A. Paperwork Reduction Act</HD>

        <P>40. This document does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198,<E T="03">see</E>44 U.S.C. 3506(c)(4).</P>
        <HD SOURCE="HD2">B. Final Regulatory Flexibility Act Certification</HD>
        <P>41.<E T="03">Final Regulatory Flexibility Certification.</E>The Regulatory Flexibility Act of 1980, as amended (RFA) requires that a regulatory flexibility analysis be prepared for rulemaking proceedings, unless the agency certifies that “the rule will not have a significant economic impact on a substantial number of small entities.” The RFA generally defines “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act. A small business concern is one which: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the Small Business Administration (SBA).</P>

        <P>42. This Order implements, but does not otherwise modify, the rule adopted by the Commission in<E T="03">USF/ICC Transformation Order.</E>These clarifications do not create any burdens, benefits, or requirements that were not addressed by the Final Regulatory Flexibility Analysis attached to<E T="03">USF/ICC Transformation Order.</E>Therefore, the Commission certifies that the requirements of this order will not have a significant economic impact on a substantial number of small entities. The Commission will send a copy of the order including a copy of this final certification, in a report to Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of 1996,<E T="03">see</E>5 U.S.C. 801(a)(1)(A). In addition, the order and this certification will be sent to the Chief Counsel for Advocacy of the Small Business Administration, and will be published in the<E T="04">Federal Register</E>.<E T="03">See</E>5 U.S.C. 605(b).</P>
        <HD SOURCE="HD2">C. Congressional Review Act</HD>
        <P>43. The Commission will send a copy of this order to Congress and the Government Accountability Office pursuant to the Congressional Review Act.</P>
        <HD SOURCE="HD2">D. Data Quality Act</HD>
        <P>44. The Commission certifies that it has complied with the Office of Management and Budget Final Information Quality Bulletin for Peer Review, 70 FR 2664 (2005), and the Data Quality Act, Public Law 106-554 (2001), codified at 44 U.S.C. 3516 note, with regard to its reliance on influential scientific information in the Report and Order in GN Docket No. 09-191 and WC Docket No. 07-52.</P>
        <HD SOURCE="HD1">IV. Modeling Limits on Reimbursable Operating and Capital Costs</HD>
        <P>45.<E T="03">Overview.</E>This appendix describes a methodology for determining carrier-specific limits on High Cost Loop Support (HCLS) payments to rate-of-return cost carriers with very high capital expenses (capex) and operating expenses (opex) relative to their similarly situated peers. Building on the record received in response to the<E T="03">USF/ICC Transformation FNPRM,</E>and the comments of two peer reviewers, the methodology adopted today refines the HCLS calculation algorithm proposed in the<E T="03">FNPRM.</E>This appendix describes both the econometric process used to establish carrier-specific limits to HCLS payments for rate-of-return cost companies and the implementation process.</P>

        <P>46. The methodology described herein provides a detailed and implementable mechanism for examining all rural rate-of-return cost study areas and limiting HCLS payments in those study areas that have costs higher than the vast majority of their similarly-situated peers. The Bureau uses data from all the rural rate-of-return cost carriers. The Bureau uses quantile regression for parameter estimation rather than ordinary least squares for reasons set forth below. The most significant change in methodology from that described in the<E T="03">FNPRM</E>is that this analysis creates two caps, one each on capex and opex, rather than capping eleven different NECA algorithm steps. Because this methodology builds upon NECA's existing algorithm for calculating average loop costs, the revised methodology can be implemented quickly and simply.</P>
        <P>47.<E T="03">Background.</E>Today, cost companies eligible for HCLS file with NECA annual detailed cost data, pursuant to Part 36, at the study area level reporting their costs in many different cost categories. The cost categories are then fed into NECA's 26-step Cost Company Loop Cost Algorithm. The early algorithm steps calculate intermediate values (based on the reported cost categories) and feed into the later algorithm steps. Algorithm step 25, which calculates the carrier's total unseparated cost for that study area, sums several of the preceding algorithm steps and then feeds into algorithm step 26, which computes the carrier's total unseparated cost per-loop for that study area by dividing the value for algorithm step 25 by the number loops in the study area. HCLS for each study area is then calculated by the Expense Adjustment Algorithm. This algorithm ultimately determines HCLS payments based on a study area's cost per-loop compared to the nationwide average cost per-loop.</P>
        <P>48.<E T="03">Methodology for Imposing Limits.</E>Appendix H of the<E T="03">FNPRM</E>proposed to create 11 caps (four capex caps and seven opex caps). Several commenters argued that the Bureau should reduce the number of caps because efficient carriers might limit their total expenditures by spending a large amount in one cost category to avoid spending even more money in other categories. Additionally, some commenters and one of the peer reviewers suggested the use of a single cap, that is, a single dependent variable in the cost regressions, noting that the 90th percentile of total cost is not the sum of the 90th percentiles of cost components.</P>

        <P>49. For the reasons described in the HCLS Benchmarks Implementation Order, the Bureau concludes that using two caps, one for capex and one for opex, provides the appropriate balance between identifying unusually high costs and providing carriers operational flexibility.<PRTPAGE P="30418"/>
        </P>

        <P>50. To implement this revised framework, the updated methodology separates algorithm step 25 (Total Unseparated Costs) into total capex and total opex cost components. The current algorithm step 25 sums algorithm steps 13 through 24. As a result of the updated methodology, capex components are now summed into algorithm step 25A and opex components are summed into algorithm step 25B. Consistent with the methodology proposed in Appendix H, a company whose actual costs for algorithm step 25A or algorithm step 25B are above the 90th percentile for that cost, compared to similarly situated companies, would be limited to recovering amounts that correspond to the 90th percentile of capex or opex costs,<E T="03">i.e.</E>the costs that ninety percent of similarly situated companies would be estimated to have by the regression equation. Algorithm step 25C becomes the new Total Unseparated Costs by summing algorithm steps 25A and 25B. It then feeds into algorithm step 26 (Study Area Cost per Loop) and the subsequent Expense Adjustment Algorithm as before. The Bureau identifies the capex and opex components below.</P>
        <P>51.<E T="03">Use of Quantile Regression.</E>As proposed in the<E T="03">FNPRM,</E>the Bureau uses quantile regression to estimate the caps for the capex and opex cost components. The goal of the regression methodology is to identify study areas that have capex and opex costs that are much higher than their similarly-situated peers and to cap their cost recovery at amounts that are no higher than the vast majority of similarly-situated study areas. Quantile regression allows us to directly estimate the 90th percentile costs for study areas with given characteristics. The critical values become the capex and opex caps.</P>
        <P>52. The Bureau concludes that quantile regression is preferable to ordinary least squares for this application. Ordinary least squares regression cannot be used to identify the proper critical values in the tail of the cost distribution without making strong assumptions about the nature of the cost distribution, in particular, that error terms are Gaussian (normally distributed) and homoscedastic. In contrast, quantile regression requires no assumptions about the error terms. This is important because the error terms of the ordinary least squares regressions for capex and opex are both heteroscedastic and non-normal. While methods exist to estimate corrections for heteroscedasticity and non-normal error terms in ordinary least squares regression, these would require additional computational steps without improving the precision of the quantile estimate.</P>
        <P>53. Quantile regression is also more resistant to the presence of outliers than ordinary least squares, which can produce biased parameter estimates when outliers are present. Thus, quantile regression parameter estimates are more stable than ordinary least squares parameter estimates if the data include outliers. And although ordinary least squares has methods available for dealing with outliers, such as excluding them from the analysis or using dummy variables, these methods generally require an exercise of judgment to identify outliers. Quantile regression largely avoids the need to make such determinations.</P>
        <P>54. Another significant advantage of quantile regression is that it allows the independent variables to have different effects on the dependent variable in the different quantiles. Thus, for example, as the percentage of a study area that is national parkland increases (holding everything else constant), the size of the study area's cost increase could differ based on where it falls in the cost distribution of similarly-situated study areas (which quantile it is in). This is not allowed in ordinary least squares, which assumes that the marginal effect is the same on all study areas. Given that the Bureau is examining study areas with high costs relative to other study areas conditioned on the independent variables used in the design, this is a helpful property.</P>
        <P>55.<E T="03">Use of the Log-Log Specification.</E>As proposed in the<E T="03">FNPRM,</E>the Bureau uses the log-log specification, and therefore take the natural log of the variables most sensitive to scale effects. For the dependent variables, the capex regression uses the natural log of capex, and the opex regression uses the natural log of opex. The Bureau also uses the natural logs of all independent variables used in the methodology except those that are dummy variables, a pure index, or a percentage (namely, Climate, Difficulty, PctTribalLand, PctPark, Alaska, MW, and NE).</P>

        <P>56. Some commenters and a peer reviewer argued that the Commission failed to demonstrate the need for taking the natural logs for both the dependent and independent variables. Additionally, a commenter argued that doing so was appropriate when the dependent variable is known to have a multiplicative relationship, and therefore the regressions should use the variables in levels (<E T="03">i.e.,</E>that the Bureau should not take the natural log of the variables) or that the Bureau should examine cost per loop. Another commenter, as well as both peer reviewers, noted that the manner in which zeros are dealt with, even when using quantile regression, can affect the results.</P>
        <P>57. Because the Bureau's econometric specification is a reduced form, taking the logs of both the dependent and independent variables is acceptable so long as the resulting relationship is linear. The Bureau disagrees with commenters who suggested that the variables should be left in levels. Figure 1 shows that the scatter plot of (the level of) opex versus (the level of) the number of loops is not obviously linear. In contrast, Figure 2 displays the scatter plot of the natural log of opex versus the natural log of loops, and shows that the relationship is linear. Further, in a simple ordinary least squares regression of opex on the number of loops and the natural log of the number of loops, both variables are significant. This indicates that the relationship between opex and loops is nonlinear.</P>
        <P>58. Further, some commenters argued that the Bureau should predict costs per loop and that if this were taken approach, density would become an important independent variable. Figure 3 shows that opex per loop as a function of density is nonlinear. In contrast, Figure 4 shows that the relationship between the natural log of opex and density is linear. Similarly, the graph of capex versus road miles does not appear to be linear, but natural log of capex versus the natural log of road miles does. The Bureau thus concludes that the log transformation of the dependent and independent variables that are scale sensitive is the appropriate specification.</P>
        <P>59. Finally, the reduction in the number of regressions in the final methodology eliminates the problem of taking the natural log of zero in the dependent variable. Because the final methodology uses two regressions rather than eleven, the values of the dependent variables are never less than or equal to zero, as was the case for many of the values in the algorithm step 8 regression as originally proposed in the FNPRM. Further, none of the independent variables that the Bureau uses have zero values.</P>
        <P>60.<E T="03">Fit of the Regression Model.</E>Some commenters argued that the regressions in the proposed methodology suffered from low pseudo R-square values, and therefore the proposed methodology should be abandoned. Another commenter asserted that alternative models (<E T="03">i.e.,</E>those that were based on levels or on cost per loop) were superior to the proposed model because the<PRTPAGE P="30419"/>R-square values were higher when using levels or cost per loop.</P>
        <P>61. The Bureau concludes that the revised methodology offers sufficient predictive power. Although the pseudo R-square values in the proposed methodology ranged from 0.2745 to 0.5863, the pseudo R-square values in the revised methodology are .6684 for capex and 0.6234 for opex. The Bureau concludes that the final specification has sufficient predictive power to provide a reliable method for setting reasonable limits on carriers' costs. The Bureau also notes that because the dependent variables are different, and because the Bureau is performing quantile regression rather than ordinary least squares regression—the method proposed by NRIC—the Bureau cannot directly compare the pseudo R-square values from the methodology the Bureau uses to the R-square values from commenters' alternative specifications.</P>
        <P>62.<E T="03">Elimination of Independent Variables From Specification.</E>If a variable is significant in either the capex or opex regression, the variable is included it in both regressions. The Bureau is cognizant of Dr. Koenker's comments that in quantile regression (as in ordinary least squares regression), the inclusion of non-significant variables can inflate the variance of the prediction (yet leave the prediction unbiased). Nevertheless, the Bureau keeps variables that are significant in either regression in both regressions because they can have offsetting effects in the regressions. For example, a carrier facing close-to-the-surface bedrock (which would make trenching more difficult than usual) may find it efficient to use an aerial solution rather than to trench through bedrock. The presence of close-to-the-surface bedrock could then lower the carrier's capex cost but raise its opex cost because cables on poles may be more costly to maintain. Thus, bedrock could raise that carrier's opex costs but could plausibly lower that carrier's capex expenditures. If the Bureau omitted bedrock from the capex regression, the Bureau could be biasing the coefficient values in the regression and therefore biasing the predicted 90th percentile values for capex.</P>
        <P>63. Further, the Bureau notes that unlike the regressions in the proposed methodology, the vast majority of the variables in the updated methodology's regressions are significant in both regressions. The Bureau also notes that adding statistically insignificant variables to the regressions do not bias the Bureau's predictions. In light of all these considerations, the Bureau therefore believes it is better to include variables that are significant in either of the regressions in both.</P>
        <P>64. In its Updated Opex Study, NRIC suggests creating a cap that uses not just the regression coefficients, but also adds a standard deviation to each regression coefficient. The Bureau declines to do so here. Adding the estimated standard error to the parameter estimates is a non-standard way of creating a confidence interval in the context of quantile regression. In contrast, using the regression quantiles methodology gives a direct unbiased estimate of the 90th percentile predictions for capex and opex.</P>
        <P>65.<E T="03">Use of Census Block Centroids.</E>Consistent with the methodology set forth in the FNPRM, the Bureau determines which census blocks are in each study area by using the census blocks' centroids. This enables us to generate certain demographic variables for each study area, such as the number of housing units in a study area. Because study area boundaries do not always coincide with census block boundaries, some census blocks will fall into two different study areas. Where a census block's centroid falls inside the study area boundary, the Bureau associates that block with that study area, and if a census block's centroid falls outside of the study area boundary, the Bureau does not.</P>
        <P>66. Some commenters suggested that associating census blocks with study areas based on the census block's centroid can distort population and/or housing unit counts. While NRIC argues that such errors do not necessarily cancel each other out, they did not have a material impact on the cost caps in the case of Nebraska. The Bureau concludes that its approach is reasonable. The Bureau could split census blocks that cross study area boundaries into pieces and then assume that end-user locations are spread evenly within census blocks so that housing units are proportionately attributed to study areas. This would increase computational complexity but not necessarily accuracy because end-user locations are not uniformly distributed within census blocks. The Bureau further notes that the vast majority of study areas have many blocks and therefore such errors would tend to cancel each other out. Of the 726 study areas covered by the updated methodology have 1.1 million census blocks in them, so on average, each study area has about 1,567 census blocks. The smallest number of census blocks in a study area is 26, the 5th percentile is 132, and the 10th percentile is 187. Therefore, the vast majority of study areas would not be affected by this issue. Also, there is only one variable that uses the number of housing units (which is derived from the census blocks in the analysis), the natural log of density (see LnDensity below), so the effect of any error should be small.</P>
        <P>67.<E T="03">Dependent Variables.</E>As described above, the dependent variables in the regressions are the natural log of the capex components and the natural log of opex components of algorithm step 25. Below the Bureau defines capex and opex, but in short, the Bureau assigns all the constituent parts of algorithm step 25, which calculates the carrier's total unseparated cost for that study area, to either capex or opex. Because the Bureau is now aggregating capex costs into a single capex variable, and operational costs into an opex variable, variations in individual capex and opex components are smoothed. This allows us to include data on all elements of capex and opex while still achieving good regression fits.</P>
        <P>68. For the purpose of the updated methodology that adopted today, the Bureau defines capex to be the plant-related costs in the current algorithm step 25. The Bureau thus includes the return to capital components, which are algorithm step 23 and algorithm step 24. The Bureau also includes depreciation in capex (algorithm step 17 and algorithm step 18). Although accounting textbooks typically define depreciation as an operating expense, they do so because firms need to recognize a periodic charge against earnings to expense the declining value of assets over the estimated life of the assets. Because depreciation is inherently tied to the carriers' asset investment decisions, the Bureau assigns it to capex. Note that in its Opex Study, NRIC considered depreciation to be sufficiently non-operations-based that NRIC took depreciation out of opex. Although some commenters urged that depreciation be excluded from the methodology altogether, the Bureau disagrees for two reasons. First, depreciation is a valid measure of plant that goes beyond the measure of net plant that goes into algorithm steps 23 and 24. Depreciation is a function of not just the amount of gross plant, but also the useful life of the plant that is used, a meaningful measure. Second, by including depreciation, the Bureau includes all the portions of the existing algorithm step 25.</P>

        <P>69. For the purpose of the updated methodology, the Bureau defines opex to be the remaining components of the current algorithm step 25. The Bureau includes algorithm steps 13 and 14 in opex because they are maintenance<PRTPAGE P="30420"/>expenses. The Bureau also includes algorithm steps 15 and 16 in opex because they are network expenses. Algorithm step 21 in included in opex because it is corporate benefits. Discussed below in more detail are the other algorithm steps included in opex.</P>

        <P>70. Algorithm step 19 is corporate operations expense, which is limited in accordance with § 36.621(a)(4) of the Commission's recently revised rules. Although this step is already limited by the updated formula limiting recovery of corporate operations expenses, and was excluded in the methodology as proposed in the<E T="03">FNPRM,</E>the Bureau now includes it in opex because the goal of the updated methodology is to examine opex in its entirety. Algorithm step 19 uses DL535 and DL550, which are the lesser of the allowable or actual corporate operations expenses, not the unadjusted corporate operations expenses, so a study area that is affected by § 36.621(a)(4) is not being affected twice by the higher-than-allowable amount.</P>
        <P>71. The Bureau similarly includes algorithm step 20 (operating taxes) in opex in the revised methodology. Although the methodology proposed in Appendix H excluded step 20, after further consideration, the Bureau concluded that taxes are an expense that must be paid, just like other operational expenses.</P>
        <P>72. Finally, the Bureau includes algorithm step 22 (rents) in opex. This step was excluded from the proposed methodology in Appendix H because the regression fit was poor. Because rents can now be included as a part of opex as a whole as opposed to in its own separate category, the Bureau includes it in the updated methodology.</P>
        <P>73.<E T="03">Independent Variable Specification.</E>The Bureau's reduced-form regression specification uses as independent variables exogenous factors that the Bureau believes affect a study area's capex and opex. These variables fall into the following categories: scale, age of plant, customer dispersion, and geography. Additionally, the independent variables the Bureau examined and include in this updated methodology are those that are currently available to the Commission and exist for all study areas in the regression analysis.</P>
        <P>74. To the extent that the Bureau had the requisite data, staff also tested other variables that commenters suggested be included. First the variables the Bureau included in the methodology are described below, then the variables that the Bureau examined and ultimately excluded, and finally, the variables that commenters suggested but that the Bureau could not include in the methodology due to data issues. All geographic independent variables were rolled up to the study area using Tele Atlas study area boundary data. The Bureau did not include inputs to the production process (such as employees) in the regressions because carriers can choose the amount of these inputs. In other words, carriers with markedly higher costs than their similarly situated peers may be using substantially more of these inputs.</P>
        <P>75. Table 1 and Table 2 respectively show descriptive statistics for and correlations between the variables included in the updated methodology. The regression results are included in Table 3.</P>
        <P>76.<E T="03">Scale.</E>The Bureau uses several variables to measure scale: The number of loops, road miles, road crossings, and the number of study areas held under common control in the state. All the scale measures the Bureau includes in the updated methodology are significant in the opex regression and all but LnRoadMiles are significant in the capex regression.</P>
        <P>77. Because the number of loops is a direct measure for the scale of the study area, the Bureau includes the natural log of the number of loops (LnLoops) in the updated methodology. The Bureau expects that the amount of plant a carrier must install will be positively correlated with capex and opex costs because more loops require more investment and operations cost. LnLoops is statistically significant.</P>
        <P>78. The Bureau also includes the natural log of the number of road miles (LnRoadMiles), which is a proxy for total loop length. Several commenters argued that some measure of loop length was an important variable. Although some (but not all) cost carriers may report such data to the Department of Agriculture's Rural Utilities Service (RUS), such data are both incomplete and unavailable to the Bureau. The Bureau agrees with NRIC that cable generally follows roads, so the number of road miles in a study area should correlate with the cabling required to serve that area.</P>
        <P>79. In its Capital Expenditure Study, NRIC predicted that road intersections would slow fiber construction and impose other costs and found that the number of intersections was a significant predictor of predicted construction costs. The Bureau agrees that the number of such crossings is another good proxy for scale and therefore included the natural log of road crossings (LnRoadCrossings).</P>
        <P>80. The scale variables (LnRoadMiles) and road crossings (LnRoadCrossings) are significant in the opex regression, but have the opposite sign from each other. Only road crossings are significant in the capex regression.</P>

        <P>81. The last scale variable is the number of study areas in the state that are owned by the same holding company or have common control in the state (LnStateSACs). The Bureau anticipated that this variable would be a good predictor of capex and opex costs because some expenses could be shared among study areas. For capex, study areas that are part of a larger organization (<E T="03">i.e.,</E>the study area has more commonly-owned study areas in the state) may allow installation crews to be deployed more efficiently. For opex, study areas that are part of a larger organization can share various expenses, especially headquarters-related expenses, which would allow for some specialization among management employees. The Bureau found LnStateSACs to be significant for both capex and opex.</P>
        <P>82.<E T="03">Age of Plant.</E>Commenters stated that age of plant was an important variable for two reasons: First, because the cost of recent capital investments is higher due to inflation and second, because the return component of capital expenses is calculated on net plant, and recent investment will be depreciated less fully than old plant. While the Bureau cannot readily determine the average age of carriers' plant, the percentage of the plant that has not yet been depreciated (PctUndepPlant) should be highly correlated with plant age: More recently installed plant will be less depreciated. Holding all else constant, the less of a carrier's plant is depreciated (which yields a higher PctUndepPlant), the higher its capex should be. The intuition for the effect of PctUndepPlant on opex is ambiguous. The Bureau finds that this variable is a strong cost predictor for both capex and opex.</P>
        <P>83.<E T="03">Customer Dispersion.</E>The Bureau includes three variables that account for customer dispersion. Many commenters asserted that density was an important cost predictor, and that their costs are high in part because of the rural areas they serve. The Bureau therefore expects that density is negatively correlated with both capex and opex costs. Density (LnDensity) is the natural log of the following quotient: number of housing units in the study area divided by the size of the study area in square miles as reported by the Tele Atlas boundaries. The Bureau finds that it is significant in both regressions.</P>

        <P>84. The Bureau also includes the natural log of the number of exchanges in the study area as a proxy for customer<PRTPAGE P="30421"/>dispersion (LnExchanges). Although the straightforward measure of density calculates the average customer density within the study area, the number of exchanges roughly accounts for the number of population centers within the study area because most population centers will have their own exchanges. The more population centers (holding other factors constant), the higher capex and opex costs will be because more cabling will be required to connect the customers within the study area to each other, and the farther the employees will need to drive to fix any troubles. The variable LnExchanges is significant in both regressions.</P>
        <P>85. The final customer dispersion variable accounts for the portion of households in urban clusters or urbanized areas (PctUrban). To the extent that rural carriers also serve urbanized pockets, the Bureau would expect their costs to be higher, holding all other variables (including road miles) constant, because wage rates may be higher near urbanized areas. The Bureau thus expects PctUrban to be positively correlated to opex, and it is. PctUrban's effect on capex is less clear: The labor costs associated with trenching are capitalized, so to the extent that labor near urban areas is more expensive, the higher capital costs should be. But capitalized labor is only one of many costs in capex, so the effect may not be strong. PctUrban is positive but not significant in the capex regression.</P>
        <P>86.<E T="03">Geography.</E>Commenters suggested the inclusion of several geographically-based variables such as soil type. The Bureau agrees. When creating many of the indexes for geographic variables, the Bureau took into account the location of roads within the study area because cabling generally follows roads. For these variables the Bureau overlaid road data in the study area with the sources of geographic information and calculated variables that were either percentages, or where appropriate, averages.</P>
        <P>87. For example, commenters stated that soil type is an important cost predictor. The Bureau therefore constructed a soil difficulty index (Difficulty). This index is similar to the index in the NRIC capex study in which soil types were matched with construction difficulty values established for the Commission's High Cost Proxy Model (HCPM), which the Commission used to calculate high-cost support for non-rural carriers. The STATSGO2 database the Bureau uses lists more soil types than the original STATSGO database, however, so there are many soil types in the STATSGO2 database for which there are no construction difficulty values from the HCPM. NRIC tried several options, but settled on assuming the soil difficulty level to be 1 (the lowest level of difficulty) for those soil types not found in the table. The Bureau's soil difficulty index builds on the NRIC methodology. When faced with soil types that do not appear on the original HCPM list, the Bureau interpolates the difficulty rating based on similar soil types in the HCPM list. The Bureau manually associates unmatched soil types from the STATSGO2 data with similar soil texture in the original HCPM table, and used the difficulty rating of the similar soil types in the HCPM list for the new soil type in the STATSGO2 database. The new extended table associates a difficulty rating for all soil types in the STATSGO2 database. The Bureau then calculated the average soil construction value along the roads in each study area.</P>
        <P>88. The Bureau finds soil difficulty to be a statistically significant predictor in opex. Although NRIC found that soil difficulty was a significant predictor of construction costs, Difficulty is positive in capex, but not significant. Although the Bureau also expected soil difficulty to be positive in the capex regression, an alternative hypothesis is that in locations where trenching is unusually expensive, an efficient carrier may install aerial plant (use poles rather than trench). This would involve lower capital costs than trenching, but higher future operations costs. Thus, it is plausible that in the presence of difficult-to-trench soils, carriers experience no obvious change in capex or, in some circumstances possibly even reduced capex costs.</P>
        <P>89. Because NRIC suggested that the methodology account for close-to-the-surface bedrock, the Bureau calculated the percentage of road miles within each study area where bedrock was within 36 inches of the surface (PctBedrock36). The NRIC capex study found that predicted construction costs were positively associated with close-to-the-surface bedrock, so the Bureau might expect that the coefficient on PctBedrock36 should be positive in the capex regression.</P>
        <P>90. The Bureau finds that close-to-the-surface bedrock is significant in the opex regression, but that it is not significant in the capex regression. This result could occur for the same reasons as for soil construction difficulty above or because the construction difficulty of bedrock has already been captured by the soil difficulty variable.</P>
        <P>91. Pointing to the NRIC Capex study, which suggested that construction costs are higher in areas where the ground is frozen more often, several commenters argued that the regressions should include a frost index. The frost index in the NRIC capex study uses of the number of frost-free days from the SSURGO data. Unfortunately, this information is not available for all areas in the STATSGO2 database. The Bureau believes that the USDA's hardiness index is a useful proxy for this information, and the Bureau uses it to create a simple index called Climate that is based on the average annual minimum temperature. The lower the minimum temperature, the more days the ground is likely to be frozen. The higher the index, the more frost-free days the study area would have. Based on the comments in the record, the Bureau expected this variable to be negatively correlated with capex (the higher the index, the more frost-free days the area should have, so construction costs should be lower).</P>
        <P>92. The Climate variable (Climate) is positive and has low p-values in the regressions, which means that it is unlikely to be a spurious result. However, it is positively correlated with capex and opex.</P>
        <P>93. Commenters also stated that it is more difficult to construct and maintain networks on tribal lands and in national parks because of permitting and similar issues, so the Bureau includes two additional variables: (1) The percentage of each study area that is a federally-recognized Tribal land (PctTribalLand), and (2) the percentage of each study area that lies within a national park (PctParkLand).</P>
        <P>94. The coefficient for the percentage of the study area that is tribal land (PctTribalLand) is positive for both capex and opex regressions, but is significant in only the opex regression. The percentage of the study area that is national park land (PctParkLand) is positive and significant in both regressions. As can be seen in Table 1, most of the study areas do not contain either tribal or national park land, and it may be a simple lack of data that causes a lack of significance for PctTribalLand in the capex regression. Nonetheless, the Bureau agrees that both capex and opex costs could be higher in the presence of these factors, so the Bureau includes them in the model.</P>

        <P>95. Finally, based on comments in the record that certain areas of the country face unique circumstances, the Bureau tested several regional variables. Alaskan commenters suggested that Alaska was unique because of its harsh climate and other factors. The Bureau therefore added the dummy variable Alaska to the regressions, which equals<PRTPAGE P="30422"/>1 for the 17 study areas in Alaska and zero elsewhere.</P>
        <P>96. The Bureau also includes regional dummies because in its Original Opex study NRIC found that opex costs were correlated with regions. Although NRIC did not include region dummy variables in the regression, instead opting to use 2005 median home value, which it also used in its Updated Opex Study, the Bureau includes region in the updated methodology. The Bureau tested the four census-based regions: Western (West), Midwest (Midwest), Northeast (Northeast) and South (South). The Bureau found that Midwest and Northeast were each significant in at least one regression, so the updated methodology includes them.</P>
        <P>97.<E T="03">Use of Soil Database Information.</E>The Bureau's source for soil data is the U.S. General Soil Map (STATSGO2) soils database. The Bureau selected STATSGO2 as a data source because it provides data for the entire country. The Soil Survey Geographic Database (SSURGO) soils data from the Natural Resource Conservation Service (NRCS) that the Nebraska Rural Independent Companies capex study used to generate soil, frost and wetland variables is an attractive database because it contains a richer set of soil variables and contains data at a smaller granular area than the STATSGO2 database. Unfortunately, as can be seen from the graph on page 23 of the NRIC comments, not only do the SSURGO data not cover Guam or American Samoa, and much of Alaska, but there are also numerous other holes in the data in many states. Thus, there are many study areas in Alaska where there is no SSURGO data and even some conterminous United States study areas such as the West Kentucky Rural Telephone Coop (Study Area Code 260421) where there is virtually no SSURGO spatial data. The Bureau therefore could not apply the results of a SSURGO-based model to these companies because the needed data would be missing. The Bureau concludes, therefore, that it is not practical to use the SSURGO data at this time.</P>
        <P>98. Two commenters argue that the Bureau should use the SSURGO data for study areas covered by it and use STATSGO2 for the remaining study areas. The Bureau has concerns about this approach for several reasons, and ultimately declines to do so. In particular, the commenters' proposed approach would mean that those study areas for which the SSURGO data are not universally available would be treated inconsistently with those for which the SSURGO are universally available. In addition, it would be challenging to combine the two data sets for those study areas where the Bureau has only some SSURGO data. Given these problems, the Bureau concludes that the implementation and fairness benefits of a nationally uniform approach based on STATS2GO outweigh the benefits of using SSURGO data for a subset of areas. Discussed below are the elements of the STATSGO2 data the Bureau uses.</P>
        <P>99.<E T="03">Independent Variables Tested But Not Used in the Model.</E>Based on commenters' suggestions and the analysis proposed in Appendix H, the Bureau tested several additional variables that were ultimately excluded from the final model because they were not significant for either capex or opex.</P>
        <P>100. In its Capex Study, NRIC found that rain frequency increased construction cost per household. Following NRIC's model, the Bureau used the Samson weather station data, and for each study area, calculated the average number of days per year with greater than 0.5 inches of rainfall (DaysAbvPt5). The Bureau found DaysAbvPt5 was not significant in either regression.</P>

        <P>101. The Bureau also tested the average slope in study areas (slope) using data in the STATSGO2 database. The Bureau's hypothesis was that the steeper the slope, the more difficult it would be to build and maintain cabling. The coefficient on slope was insignificant (<E T="03">i.e.,</E>statistically indistinguishable from zero) in both regressions and therefore dropped from the model.</P>
        <P>102. The Bureau similarly tested the percentage of the study area that was water (PctWater), but did not include it in the updated model because it was insignificant in both regressions. This is unsurprising. The proposed model included PctWater to account for the fact that cabling may have to be run around bodies of water, but the updated model accounts for the number of road miles (as a proxy for loop length), so the additional cabling associated with routing around water has already been accounted for.</P>
        <P>103. The Bureau tested the percentage of road miles where the water table was within 36 inches of the surface (PctWaterTable36). The Bureau found the variable PctWaterTable36 to be weakly significant in opex, but it had an implausible negative sign in both the capex and opex regressions. Because of the sign issue and because inclusion of the variable does not markedly improve the fit, the Bureau excludes it from the model so as not to lower the cap for study areas with high water tables.</P>
        <P>104. Accipiter suggested adding the percentage change in loops (PctLoopChange) to account for study areas that are growing, because growing carriers “are prone to have unique cost structures.” The Bureau believes the PctUndepPlant proxies for this, but out of an abundance of caution, the Bureau tested PctLoopChange, but found that it was insignificant, suggesting that PctUndepPlant is proxying for the unique cost structures that Accipiter is concerned about.</P>
        <P>105. Based on NRIC's updated opex regression, the Bureau tested statewide median house values, but found them to be insignificant. This is unsurprising because statewide values include mostly urban houses. The Bureau's regional independent variables, however, helped capture the intended effect.</P>
        <P>106. The Bureau also tested the natural log of the number of stream crossings (LnStreamCross), which could increase construction costs in the same way that road crossings do. The Bureau found LnStreamCross to be significant and negative in opex, but insignificant in capex. Because the coefficient was an implausible sign in the opex regression without an offsetting plausible coefficient in the other regressions, the Bureau omitted LnStreamCross from both regressions.</P>
        <P>107. The proposed model also included the number of census blocks in the study area. Although the natural log of the total number of census blocks (LnBlocks) was weakly significant in the opex regression, it was not significant in the capex regression. Although the Bureau generally included variables that were significant in at least one regression in both regressions, the Bureau omitted census blocks from the updated model regressions for two reasons. First, commenters did not think that the number of blocks was a good proxy for density. Also, the Bureau is now accounting for customer dispersion and density directly through independent variables LnRoadMiles, LnRoadCrossings and LnDensity.</P>
        <P>108.<E T="03">Unavailable Independent Variables.</E>Several carriers suggested additional variables to the regression analysis, but the Bureau was unable to include them because the data were either unavailable to the Commission, nonpublic, or data could not be generated at the study area level. The Bureau recognizes that some of the unavailable variables could be significant if they could be included, but given the other enhancements made to the regressions described herein, the Bureau concludes that the methodology is adequate to identify cost outliers among similarly situated companies.<PRTPAGE P="30423"/>
        </P>
        <P>109. The NRIC capex study postulated that the presence of wetlands would increase construction costs because of need for additional “approvals and specialized techniques.” It found that wetlands were positively correlated with increased predicted construction costs. As NRIC points out, however, wetlands data are not available for Colorado, Wisconsin and Montana. Since the Bureau's objective is to develop a methodology that applies equally to all cost carriers, the Bureau could not include wetlands data in the updated methodology.</P>
        <P>110. Similarly, commenters suggested the following additional variables that, if not already proxied in the model, could not be used because they were unavailable to the Commission, nonpublic, or data could not be generated at the study area level: Age of investment; broadband speed capability; cable route miles or cable sheath miles; status as carrier of last resort; copper versus fiber networks; cost of living and labor costs; environmental; legal and regulatory costs; loop length/average loop length; right of way costs and vacant lots; and weather patterns.</P>
        <P>111. One commenter argues that the Bureau's methodology should include variables that are not universally available and that it is better to comprehensively study a representative sample of study areas and apply the results to the wider population of study areas. The commenter does not specify, however, how the Bureau could apply that knowledge to study areas for which the information is unavailable.</P>
        <P>112.<E T="03">Implementation.</E>For each study area, the regressions will be used to generate the 90th percentile predicted values for both the natural log of capex and the natural log of opex. These values will then be converted back to “levels” by using the inverse of the natural log function.</P>
        <P>113. The lower of the study area's original algorithm step 25A and the level of the predicted 90th percentile capex value will be retained in algorithm step 25A. Similarly, the lower of the study area's original algorithm step 25B and level of the predicted 90th percentile opex value will be retained in algorithm step 25B. These values will then be summed in algorithm step 25C, which will feed into algorithm step 26.</P>
        <HD SOURCE="HD1">V. Ordering Clauses</HD>
        <P>114. Accordingly,<E T="03">it is ordered,</E>that pursuant to the authority contained in sections 1, 2, 4(i), 201-206, 214, 218-220, 251, 254, and 303(r), and of the Communications Act of 1934, as amended, and section 706 of the Telecommunications Act of 1996, 47 U.S.C. 151, 152, 154(i), 201-206, 214, 218-220, 251, 254, 303(r), 1302, and pursuant to §§ 0.91, 0.131, 0.201(d), 0.291, 0.331, 1.3, and 1.427 of the Commission's rules, 47 CFR 0.91, 0.131, 0.201(d), 0.291, 0.331, 1.3, 1.427 and pursuant to the delegations of authority in paragraphs 210, 217, 226 and 1404 of<E T="03">USF/ICC Transformation Order,</E>26 FCC Rcd 17663 (2011), 76 FR 73830, November 29, 2011, that this Order<E T="03">is adopted,</E>effective June 22, 2012.</P>
        <P>115.<E T="03">It is further ordered,</E>that the Commission<E T="03">shall send</E>a copy of this Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act,<E T="03">see</E>5 U.S.C. 801(a)(1)(A).</P>
        <P>116.<E T="03">It is further ordered,</E>that the Commission's Consumer and Governmental Affairs Bureau, Reference Information Center,<E T="03">shall send</E>a copy of this Order, including the Final Regulatory Flexibility Certification, to the Chief Counsel for Advocacy of the Small Business Administration.</P>
        <SIG>
          <FP>Federal Communications Commission.</FP>
          <NAME>Sharon E. Gillett,</NAME>
          <TITLE>Chief, Wireline Competition Bureau.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12539 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6712-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
        <CFR>47 CFR Parts 73 and 76</CFR>
        <DEPDOC>[ET Docket No. 10-235; FCC 12-45]</DEPDOC>
        <SUBJECT>Innovation in the Broadcast Television Bands: Allocations, Channel Sharing and Improvements to VHF, Report and Order</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Communications Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In the<E T="03">Report and Order,</E>the Commission takes preliminary steps toward making a portion of the UHF and VHF frequency bands currently used by the broadcast television service available for new uses as required under the recently enacted<E T="03">Spectrum Act,</E>while also preserving the integrity of the television broadcast service.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective June 22, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Shaun Maher,<E T="03">Shaun.Maher@fcc.gov</E>of the Media Bureau, Video Division, (202) 418-2324.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>This is a summary of the Commission's<E T="03">Report and Order,</E>FCC 12-45, adopted on April 27, 2012, and released on April 27 2012. The full text of the<E T="03">Report and Order</E>is available for inspection and copying during regular business hours in the FCC Reference Center, 445 12th Street SW., Room CY-A257, Portals II, Washington, DC 20554, and may also be purchased from the Commission's copy contractor, BCPI, Inc., Portals II, 445 12th Street SW., Room CY-B402, Washington, DC 20554. Customers may contact BCPI, Inc. via their Web site,<E T="03">http://www.bcpi.com,</E>or call 1-800-378-3160. This document is available in alternative formats (computer diskette, large print, audio record, and Braille). Persons with disabilities who need documents in these formats may contact the FCC by email:<E T="03">FCC504@fcc.gov</E>or phone: 202-418-0530 or TTY: 202-418-0432.</P>
        <HD SOURCE="HD1">Executive Summary</HD>
        <P>In the<E T="03">Report and Order,</E>the Commission takes a preliminary step toward making a significant portion of the UHF and VHF frequency bands (U/V Bands) currently used by the broadcast television service available for new uses. This action serves to further address the nation's growing demand for wireless broadband services, promote the ongoing innovation and investment in mobile communications and ensure that the United States keeps pace with the global wireless revolution. At the same time, the approach helps preserve broadcast television as a healthy, viable medium and would be consistent with the general proposal set forth in the National Broadband Plan to repurpose spectrum from the U/V bands for new wireless broadband uses through, in part, voluntary contributions of spectrum to an incentive auction. This action is consistent with the recent enactment by Congress of new incentive auction authority for the Commission (<E T="03">Spectrum Act</E>). Specifically, this item sets out a framework by which two or more television licensees may share a single six MHz channel in connection with an incentive auction.</P>
        <HD SOURCE="HD1">Paperwork Reduction Act of 1995 Analysis</HD>
        <P>The<E T="03">Report and Order</E>contains no new or revised information collection requirements subject to the Paperwork Reduction Act of 1995 (“PRA”), Public Law 104-13 (44 U.S.C. 3501 through 3520).</P>
        <HD SOURCE="HD1">Synopsis</HD>
        <P>The<E T="03">Report and Order</E>does not act on the proposals in the Notice of Proposed Rulemaking to establish fixed and mobile allocations in the U/V bands or to improve TV service on VHF channels. The<E T="03">Report and Order</E>states that the Commission will undertake a broader rulemaking to implement the<E T="03">Spectrum<PRTPAGE P="30424"/>Act'</E>s provisions relating to an incentive auction for U/V band spectrum, and that it believes it will be more efficient to act on new allocations in the context of that rulemaking. In addition, the record created in response to the<E T="03">Notice of Proposed Rulemaking</E>does not establish a clear way forward to significantly increase the utility of the VHF bands for the operation of television services. The<E T="03">Report and Order</E>states that the Commission will revisit this matter in a future proceeding.</P>
        <P>With respect to the channel sharing provisions, the<E T="03">Report and Order</E>makes clear that channel sharing arrangements will be voluntary. Broadcasters will decide whether to enter into a channel sharing arrangement and will be given flexibility with respect to determining some of the key parameters under which they will combine their multiple television stations onto a single six MHz channel.</P>
        <P>Despite sharing a single channel and transmission facility, each station will continue to be licensed separately, have its own call sign and will separately be subject to all of the Commission's obligations, rules, and policies. Each station must comply with the technical, operational, and programming obligations (e.g., children's programming, political broadcasting, minimum operating hours, main studio, Emergency Alert System).</P>
        <P>Stations utilizing a shared channel will be required to retain at least enough capacity to operate one standard definition (“SD”) programming stream in order to meet the Commission's requirement to “transmit at least one over-the-air video broadcast signal provided at no direct charge to viewers.” However, stations will have the flexibility within this “minimum capacity” requirement to tailor their agreements. This flexible channel sharing will allow parties to meet their individual programming and economic needs.</P>
        <P>Class A television stations may participate in channel sharing in connection with an incentive auction but low power television and TV translators may not.</P>
        <P>Any full power television or Class A television permittee, as well as any applicant for an original construction permit may execute a channel sharing agreement. The party relinquishing spectrum, though, must hold a license prior to the commencement of the auction process.</P>
        <P>Commercial and noncommercial educational (NCE) stations are permitted to share a single television channel.</P>
        <P>The<E T="03">Report and Order</E>defers consideration of ownership issues that may arise as a result of channel sharing arrangements until a future proceeding.</P>
        <P>As mandated in the<E T="03">Spectrum Act,</E>the channel sharing rules will neither increase nor decrease the cable and satellite carriage rights currently afforded broadcast licensees. Specifically, regardless of the number of stations sharing a single six MHz channel, each station will be licensed separately and will therefore continue to have at least one—but only one—“primary” stream of programming entitled to carriage rights under the rules so long as the licensee continues to meet all relevant technical requirements.</P>
        <P>The<E T="03">Report and Order</E>leaves for future consideration the subject of channel sharing by stations outside the context of an incentive auction.</P>
        <HD SOURCE="HD1">Final Regulatory Flexibility Act Analysis</HD>
        <P>As required by the Regulatory Flexibility Act of 1980, as amended (“RFA”)<SU>1</SU>

          <FTREF/>an Initial Regulatory Flexibility Analysis (“IRFA”) was included in the<E T="03">Notice of Proposed Rulemaking (FNPRM</E>) in this proceeding.<SU>2</SU>
          <FTREF/>Written public comments were requested on the IRFA. This present Final Regulatory Flexibility Analysis.<SU>3</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>1</SU>
            <E T="03">See</E>5 U.S.C. 603. The RFA,<E T="03">see</E>5 U.S.C. 601<E T="03">et. seq.,</E>has been amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (“SBREFA”), Public Law 104-121, Title II, 110 Stat. 847 (1996).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>
            <E T="03">See FNPRM,</E>25 FCC Rcd 13833.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>
            <E T="03">See</E>5 U.S.C. 604.</P>
        </FTNT>
        <HD SOURCE="HD2">A. Need for, and Objectives of, the Proposed Rules</HD>
        <P>In the<E T="03">Report and Order,</E>the Commission amends its rules to establish a framework that permits two or more television licensees to share a single six megahertz TV channel. The new channel sharing rules framework will, for the first time, permit two or more television stations to share a single channel. Such sharing will allow stations to relinquish a portion of their spectrum for new uses while continuing to provide television service to viewers.</P>
        <HD SOURCE="HD2">B. Summary of Significant Issues Raised by Public Comments in Response to the IRFA</HD>
        <P>There were no comments received in response to the IRFA.</P>
        <HD SOURCE="HD2">C. Description and Estimate of the Number of Small Entities To Which the Proposed Rules Will Apply</HD>
        <P>The RFA directs agencies to provide a description of and, where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted.<SU>4</SU>
          <FTREF/>The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.”<SU>5</SU>
          <FTREF/>In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act.<SU>6</SU>
          <FTREF/>A small business concern is one which: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA.<SU>7</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>4</SU>5 U.S.C. 603(b)(3).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>5</SU>5 U.S.C. 601(6).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>6</SU>5 U.S.C. 601(3) (incorporating by reference the definition of “small business concern” in 15 U.S.C. 632). Pursuant to the RFA, the statutory definition of a small business applies “unless an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes such definition(s) in the<E T="04">Federal Register</E>.” 5 U.S.C. 601(3).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>7</SU>Small Business Act, 15 U.S.C. 632 (1996).</P>
        </FTNT>
        <P>
          <E T="03">Television Broadcasting.</E>This Economic Census category “comprises establishments primarily engaged in broadcasting images together with sound. These establishments operate television broadcasting studios and facilities for the programming and transmission of programs to the public.”<SU>8</SU>
          <FTREF/>The SBA has created the following small business size standard for Television Broadcasting firms: Those having $14 million or less in annual receipts.<SU>9</SU>
          <FTREF/>The Commission has estimated the number of licensed commercial television stations to be 1,387.<SU>10</SU>
          <FTREF/>In addition, according to Commission staff review of the BIA Publications, Inc., Master Access Television Analyzer Database (BIA) on March 30, 2007, about 986 of an estimated 1,387 commercial television stations (or approximately 72 percent) had revenues of $13 million or less.<SU>11</SU>
          <FTREF/>We therefore estimate that the majority of commercial television broadcasters are small entities.</P>
        <FTNT>
          <P>

            <SU>8</SU>U.S. Census Bureau, 2007 NAICS Definitions, “515120 Television Broadcasting” (partial definition);<E T="03">http://www.census.gov/naics/2007/def/ND515120.HTM#N515120</E>.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>9</SU>13 CFR 121.201, NAICS code 515120 (updated for inflation in 2008).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>10</SU>
            <E T="03">See FCC News Release,</E>“Broadcast Station Totals as of December 31, 2011,” dated January 11, 2012;<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf</E>
          </P>
        </FTNT>
        <FTNT>
          <P>

            <SU>11</SU>We recognize that BIA's estimate differs slightly from the FCC total given<E T="03">supra.</E>
          </P>
        </FTNT>
        <P>We note, however, that in assessing whether a business concern qualifies as small under the above definition, business (control) affiliations<SU>12</SU>
          <FTREF/>must be<PRTPAGE P="30425"/>included. Our estimate, therefore, likely overstates the number of small entities that might be affected by our action, because the revenue figure on which it is based does not include or aggregate revenues from affiliated companies. In addition, an element of the definition of “small business” is that the entity not be dominant in its field of operation. We are unable at this time to define or quantify the criteria that would establish whether a specific television station is dominant in its field of operation. Accordingly, the estimate of small businesses to which rules may apply does not exclude any television station from the definition of a small business on this basis and is therefore possibly over-inclusive to that extent.</P>
        <FTNT>
          <P>
            <SU>12</SU>“[Business concerns] are affiliates of each other when one concern controls or has the power to<PRTPAGE/>control the other or a third party or parties controls or has to power to control both.” 13 CFR 21.103(a)(1).</P>
        </FTNT>
        <P>In addition, the Commission has estimated the number of licensed noncommercial educational (NCE) television stations to be 393.<SU>13</SU>
          <FTREF/>These stations are non-profit, and therefore considered to be small entities.<SU>14</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>13</SU>
            <E T="03">See FCC News Release,</E>“Broadcast Station Totals as of December 31, 2011,” dated January 11, 2012;<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>14</SU>
            <E T="03">See generally</E>5 U.S.C. 601(4), (6).</P>
        </FTNT>
        <P>In addition, there are also 6,739 low power television stations (LPTV), TV Translators and Class A television stations.<SU>15</SU>
          <FTREF/>Given the nature of this service, we will presume that all of these licensees qualify as small entities under the above SBA small business size standard.</P>
        <FTNT>
          <P>
            <SU>15</SU>
            <E T="03">See FCC News Release,</E>“Broadcast Station Totals as of December 31, 2011,” dated January 11, 2012;<E T="03">http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0106/DOC-311837A1.pdf</E>.</P>
        </FTNT>
        <P>
          <E T="03">Cable Television Distribution Services.</E>Since 2007, these services have been defined within the broad economic census category of Wired Telecommunications Carriers; that category is defined as follows: “This industry comprises establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired telecommunications networks. Transmission facilities may be based on a single technology or a combination of technologies.”<SU>16</SU>
          <FTREF/>The SBA has developed a small business size standard for this category, which is: All such firms having 1,500 or fewer employees. To gauge small business prevalence for these cable services we must, however, use current census data that are based on the previous category of Cable and Other Program Distribution and its associated size standard; that size standard was: All such firms having $13.5 million or less in annual receipts.<SU>17</SU>
          <FTREF/>According to Census Bureau data for 2002, there were a total of 1,191 firms in this previous category that operated for the entire year.<SU>18</SU>
          <FTREF/>Of this total, 1,087 firms had annual receipts of under $10 million, and 43 firms had receipts of $10 million or more but less than $25 million.<SU>19</SU>
          <FTREF/>Thus, the majority of these firms can be considered small.</P>
        <FTNT>
          <P>

            <SU>16</SU>U.S. Census Bureau, 2007 NAICS Definitions, “517110 Wired Telecommunications Carriers” (partial definition);<E T="03">http://www.census.gov/naics/2007/def/ND517110.HTM#N517110</E>.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>17</SU>13 CFR 121.201, NAICS code 517110.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>18</SU>U.S. Census Bureau, 2002 Economic Census, Subject Series: Information, Table 4, Receipts Size of Firms for the United States: 2002, NAICS code 517510 (issued November 2005).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>19</SU>
            <E T="03">Id.</E>An additional 61 firms had annual receipts of $25 million or more.</P>
        </FTNT>
        <P>
          <E T="03">Cable Companies and Systems.</E>The Commission has also developed its own small business size standards, for the purpose of cable rate regulation. Under the Commission's rules, a “small cable company” is one serving 400,000 or fewer subscribers, nationwide.<SU>20</SU>
          <FTREF/>Industry data indicate that, of 1,076 cable operators nationwide, all but eleven are small under this size standard.<SU>21</SU>
          <FTREF/>In addition, under the Commission's rules, a “small system” is a cable system serving 15,000 or fewer subscribers.<SU>22</SU>
          <FTREF/>Industry data indicate that, of 6,635 systems nationwide, 5,802 systems have under 10,000 subscribers, and an additional 302 systems have 10,000-19,999 subscribers.<SU>23</SU>
          <FTREF/>Thus, under this second size standard, most cable systems are small.</P>
        <FTNT>
          <P>

            <SU>20</SU>47 CFR 76.901(e). The Commission determined that this size standard equates approximately to a size standard of $100 million or less in annual revenues.<E T="03">Implementation of Sections of the 1992 Cable Act: Rate Regulation,</E>Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393, 7408 (1995).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>21</SU>These data are derived from: R.R. Bowker,<E T="03">Broadcasting &amp; Cable Yearbook 2006,</E>“Top 25 Cable/Satellite Operators,” pages A-8 &amp; C-2 (data current as of June 30, 2005); Warren Communications News,<E T="03">Television &amp; Cable Factbook 2006,</E>“Ownership of Cable Systems in the United States,” pages D-1805 to D-1857.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>22</SU>47 CFR 76.901(c).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>23</SU>Warren Communications News,<E T="03">Television &amp; Cable Factbook 2008,</E>“U.S. Cable Systems by Subscriber Size,” page F-2 (data current as of Oct. 2007). The data do not include 851 systems for which classifying data were not available.</P>
        </FTNT>
        <P>
          <E T="03">Cable System Operators.</E>The Communications Act of 1934, as amended, also contains a size standard for small cable system operators, which is “a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed $250,000,000.”<SU>24</SU>
          <FTREF/>The Commission has determined that an operator serving fewer than 677,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total annual revenues of all its affiliates, do not exceed $250 million in the aggregate.<SU>25</SU>
          <FTREF/>Industry data indicate that, of 1,076 cable operators nationwide, all but ten are small under this size standard.<SU>26</SU>
          <FTREF/>We note that the Commission neither requests nor collects information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250 million,<SU>27</SU>
          <FTREF/>and therefore we are unable to estimate more accurately the number of cable system operators that would qualify as small under this size standard.</P>
        <FTNT>
          <P>
            <SU>24</SU>47 U.S.C. 543(m)(2);<E T="03">see</E>47 CFR 76.901(f) &amp; nn. 1-3.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>25</SU>47 CFR 76.901(f);<E T="03">see</E>Public Notice<E T="03">, FCC Announces New Subscriber Count for the Definition of Small Cable Operator,</E>DA 01-158 (Cable Services Bureau, Jan. 24, 2001).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>26</SU>These data are derived from: R.R. Bowker,<E T="03">Broadcasting &amp; Cable Yearbook 2006,</E>“Top 25 Cable/Satellite Operators,” pages A-8 &amp; C-2 (data current as of June 30, 2005); Warren Communications News,<E T="03">Television &amp; Cable Factbook 2006,</E>“Ownership of Cable Systems in the United States,” pages D-1805 to D-1857.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>27</SU>The Commission does receive such information on a case-by-case basis if a cable operator appeals a local franchise authority's finding that the operator does not qualify as a small cable operator pursuant to § 76.901(f) of the Commission's rules.<E T="03">See</E>47 CFR 76.909(b).</P>
        </FTNT>
        <HD SOURCE="HD2">D. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements for Small Entities</HD>
        <P>The<E T="03">Report and Order</E>contains no new or revised information collection requirements subject to the Paperwork Reduction Act of 1995.<SU>28</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>28</SU>The Paperwork Reduction Act of 1995 (“PRA”), Public Law 104-13, 109 Stat. 163 (1995) (codified in Chapter 35 of title 44 U.S.C.).</P>
        </FTNT>
        <HD SOURCE="HD2">E. Steps Taken To Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered</HD>

        <P>The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives (among others): (1) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from<PRTPAGE P="30426"/>coverage of the rule, or any part thereof, for small entities.<SU>29</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>29</SU>
            <E T="03">See</E>5 U.S.C. 603(c).</P>
        </FTNT>
        <P>The<E T="03">Report and Order</E>adopted general channel sharing rules and policies. Among these, the Commission determined that only licensees would be permitted to participate in channel sharing in conjunction with the reverse auction. The Commission found that the burden on small entities of limiting channel sharing to only licensees is outweighed by the need to clear as many television channels as possible for reallocation and use by commercial wireless entities to enhance broadband wireless offerings.</P>
        <P>The Commission permitted Class A television stations to participate in channel sharing but channel sharing by low power television stations and TV translators was not permitted. The Commission determined that the burden on small entities is outweighed by the intent of Congress to limit channel sharing in conjunction with the reverse auction to only full power television and Class A stations as well as the need to complete the successful repacking of television channels and identify channels for reallocation to broadband wireless use.</P>
        <P>The Commission determined that commercial and noncommercial educational television stations could share a single television channel. The Commission did not find that there would be a significant impact on small entities by this decision. The decision would have little impact and any impact would affect all entities equally.</P>
        <P>The Commission adopted a requirement that stations involved in channel sharing retain the right to use at least enough spectrum to operate one SD channel. The Commission did not find that there would be a significant impact on small entities by this requirement. Since channel sharing is voluntary, the requirement of retaining sufficient channel capacity to operate at least 1 SD channel would have little impact and any impact would affect all entities equally.</P>
        <HD SOURCE="HD2">F. Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rules</HD>
        <P>None.</P>
        <HD SOURCE="HD2">G. Report to Congress</HD>
        <P>The Commission will send a copy of the<E T="03">Report and Order,</E>including the FRFA, in a report to be sent to Congress pursuant to the Congressional Review Act.<SU>30</SU>
          <FTREF/>In addition, the Commission will send a copy of the<E T="03">Report and Order,</E>including FRFA, to the Chief Counsel for Advocacy of the Small Business Administration. A copy of this<E T="03">Report and Order</E>and FRFA (or summaries thereof) will be published in the<E T="04">Federal Register</E>.<SU>31</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>30</SU>
            <E T="03">See</E>5 U.S.C. 801(a)(1)(A). The Congressional Review Act is contained in Title II, section 251, of the CWAAA,<E T="03">see</E>Public Law 104-121, Title II, section 251, 110 Stat. 868.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>31</SU>
            <E T="03">See</E>5 U.S.C. 604(b).</P>
        </FTNT>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects</HD>
          <CFR>47 CFR Part 73</CFR>
          <P>Television, television broadcasting.</P>
          <CFR>47 CFR Part 76</CFR>
          <P>Cable television.</P>
        </LSTSUB>
        <SIG>
          <FP>Federal Communications Commission.</FP>
          <NAME>Marlene H. Dortch,</NAME>
          <TITLE>Secretary.</TITLE>
        </SIG>
        <HD SOURCE="HD1">Final Rule</HD>
        <P>For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR parts 73 and 76 as follows:</P>
        <REGTEXT PART="73" TITLE="47">
          <PART>
            <HD SOURCE="HED">PART 73—RADIO BROADCAST SERVICES</HD>
          </PART>
          <AMDPAR>1. The authority citation continues to read:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>47 U.S.C. 154, 303, 334, 336, and 339.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="73" TITLE="47">
          <AMDPAR>2. Add § 73.3700 to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 73.3700</SECTNO>
            <SUBJECT>Channel sharing.</SUBJECT>
            <P>(a)<E T="03">Channel sharing generally.</E>For purposes of this subsection, “reverse auction” shall mean the reverse auction set forth in section 6403(a) of the See Middle Class Tax Relief and Job Creation Act of 2012. Subject to the provisions of this section, qualified television stations may voluntarily seek Commission approval to share a single six megahertz channel in conjunction with a proposal submitted in the reverse auction. Each station sharing a single channel shall continue to be licensed and operated separately, have its own call sign and be separately subject to all of the Commission's obligations, rules, and policies.</P>
            <P>(b)<E T="03">Basic qualifications.</E>(1) Any full power television station or Class A television station permittee or licensee, as well as any applicant for an original construction permit may execute a channel sharing agreement to be considered in conjunction with the reverse auction.</P>
            <P>(2) The party relinquishing spectrum pursuant to a channel sharing agreement must hold a license prior to the commencement of the reverse auction wherein its channel sharing agreement shall be considered.</P>
            <P>(3) Channel sharing agreements shall contain a provision requiring that each channel sharing licensee shall retain spectrum usage rights adequate to ensure a sufficient amount of the shared channel capacity to allow it to provide at least one Standard Definition (SD) program stream at all times.</P>
            <P>(4) Channel sharing is permissible between commercial and noncommercial educational television stations.</P>
            <P>(5) Channel sharing is permissible between full power television stations, between Class A television stations and between full power and Class A television stations.</P>
            <P>(c)<E T="03">Preservation of carriage rights.</E>A broadcast television station that voluntarily relinquishes spectrum usage rights under this section in order to share a television channel and that possessed carriage rights under section 338, 614, or 615 of the Communications Act of 1934 (47 U.S.C. 338; 534; 535) on November 30, 2010, shall have, at its shared location, the carriage rights under such section that would apply to such station at such location if it were not sharing a channel.</P>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="76" TITLE="47">
          <PART>
            <HD SOURCE="HED">PART 76—MULTICHANNEL VIDEO AND CABLE SERVICE</HD>
          </PART>
          <AMDPAR>3. The authority citation continues to read:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303, 303a, 307, 308, 309, 312, 315, 317, 325, 339, 340, 341, 503, 521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548, 549, 552, 554, 556, 558, 560, 561, 571, 572, 573.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="76" TITLE="47">
          <AMDPAR>4. Add 76.56(g) to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 76.56</SECTNO>
            <SUBJECT>Signal carriage obligations.</SUBJECT>
            <STARS/>
            <P>(g)<E T="03">Channel sharing carriage rights.</E>A broadcast television station that voluntarily relinquishes spectrum usage rights under 73.3700 of this chapter in order to share a television channel and that possessed carriage rights under section 338, 614, or 615 of the Communications Act of 1934 (47 U.S.C. 338; 534; 535) on November 30, 2010, shall have, at its shared location, the carriage rights under such section that would apply to such station at such location if it were not sharing a channel.</P>
            
          </SECTION>
          <AMDPAR>5. Add 76.66(n) to read as follows:</AMDPAR>
        </REGTEXT>
        
        <REGTEXT PART="76" TITLE="47">
          <SECTION>
            <SECTNO>§ 76.66</SECTNO>
            <SUBJECT>Satellite broadcast signal carriage.</SUBJECT>
            <STARS/>
            <P>(n)<E T="03">Channel sharing carriage rights.</E>A broadcast television station that voluntarily relinquishes spectrum usage rights under § 73.3700 of this chapter in order to share a television channel and<PRTPAGE P="30427"/>that possessed carriage rights under section 338, 614, or 615 of the Communications Act of 1934 (47 U.S.C. 338; 534; 535) on November 30, 2010, shall have, at its shared location, the carriage rights under such section that would apply to such station at such location if it were not sharing a channel.</P>
          </SECTION>
        </REGTEXT>
        
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12551 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6712-01-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <CFR>50 CFR Part 648</CFR>
        <DEPDOC>[Docket No. 120321208-2076-02]</DEPDOC>
        <RIN>RIN 0648-BC07</RIN>
        <SUBJECT>Fisheries of the Northeastern United States; Recreational Management Measures for the Summer Flounder, Scup, and Black Sea Bass Fisheries; Fishing Year 2012</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>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>NMFS implements management measures for the 2012 summer flounder, scup, and black sea bass recreational fisheries in Federal waters. These actions are necessary to comply with regulations implementing the Summer Flounder, Scup, and Black Sea Bass Fishery Management Plan (FMP) and to ensure compliance with the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). Recreational management measures are intended to prevent overfishing the summer flounder, scup, and black sea bass resources in 2012.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective May 18, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Copies of the Supplemental Environmental Assessment (SEA) for the 2012 recreational management measures document, including the Supplemental Environmental Assessment, Regulatory Impact Review, and Initial Regulatory Flexibility Analysis (SEA/RIR/IRFA) and other supporting documents for the recreational management measures are available from Dr. Christopher M. Moore, Executive Director, Mid-Atlantic Fishery Management Council, Suite 201, 800 North State Street, Dover, DE 19901. These documents are also accessible via the Internet at<E T="03">http://www.nero.noaa.gov.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Moira Kelly, Fishery Policy Analyst, (978) 281-9218.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">General Background</HD>
        <P>The summer flounder, scup, and black sea bass fisheries are managed cooperatively by the Atlantic States Marine Fisheries Commission (Commission) and the Mid-Atlantic Fishery Management Council (Council), in consultation with the New England and South Atlantic Fishery Management Councils. The FMP and its implementing regulations, which are found at 50 CFR part 648, subparts A (general provisions), G (summer flounder), H (scup), and I (black sea bass), describe the process for specifying annual recreational management measures that apply in the Exclusive Economic Zone (EEZ). The states from North Carolina to Maine manage these fisheries within 3 nautical miles of their coasts, under the Commission's plan for summer flounder, scup, and black sea bass. The Federal regulations govern fishing activity in the EEZ, as well as vessels possessing Federal permits for summer flounder, scup, and/or black sea bass, regardless of where they fish.</P>
        <P>A proposed rule to implement the 2012 Federal recreational measures for the summer flounder, scup, and black sea bass recreational fisheries was published on April 30, 2012 (77 FR 25394). Additional background and information is provided in the preamble to the proposed rule and is not repeated here.</P>
        <HD SOURCE="HD1">2012 Recreational Management Measures</HD>
        <P>The 2012 coastwide recreational harvest limits were previously established by a final rule published on April 23, 2012 (77 FR 24151). The 2012 recreational harvest limits are as follows: Summer flounder, 8.76 million lb (3,973 mt); scup, 8.45 million lb (3,833 mt); and black sea bass, 1.32 million lb (599 mt). Recreational harvest limits are the target objectives or “quotas” established for the summer flounder, scup, and black sea bass recreational fisheries. The management measures (i.e., minimum fish size requirements, angler possession limits, and fishing seasons) established by this rule are all designed to ensure that recreational landings do not exceed the recreational harvest limits.</P>
        <P>This final rule implements management measures that apply in the Federal waters of the EEZ and to all federally permitted party/charter vessels with applicable summer flounder, scup, and/or black sea bass permits, regardless of where they fish during the 2012 fishing year. The management measures established by this rule are as follows: For summer flounder, use of state-by-state conservation equivalency measures, which is the status quo management system; for scup, a 10.5-inch (26.67-cm) minimum fish size, a 20-fish per person possession limit, and a year-round season; and, for black sea bass, a 12.5-in (31.75-cm) minimum fish size, a 25-fish per person possession limit and fishing seasons from May 19-October 14 and November 1-December 31, as well as an open season of January 1 through the end of February that would have a 12.5-in (31.75 cm) minimum fish size and a 15-fish per person possession limit. More detail on these measures is provided in the following sections:</P>
        <P>Federal permit holders are reminded that, as a condition of their Federal permit, they must abide by the Federal measures, even if fishing in state waters. In addition, in instances where the state-implemented measures are different than the Federal measures, federally permitted vessels must adhere to the more restrictive of the two measures. This will be applicable for both the 2012 scup and black sea bass recreational fisheries.</P>
        <P>All minimum fish sizes discussed below are total length measurements of the fish, i.e., the straight-line distance from the tip of the snout to the end of the tail while the fish is lying on its side. For black sea bass, total length measurement does not include the caudal fin tendril. All possession limits discussed below are per person.</P>
        <HD SOURCE="HD2">Summer Flounder Recreational Management Measures</HD>

        <P>This final rule implements conservation equivalency as the management approach for the 2012 summer flounder recreational fishery. NMFS implemented Framework Adjustment 2 to the FMP on July 29, 2001 (66 FR 36208), to permit the use of conservation equivalency to manage the recreational summer flounder fishery. Conservation equivalency allows each state to establish its own recreational management measures to achieve its state harvest limit partitioned from the coastwide recreational harvest limit by the Commission. The combined effect of all of the states' management measures achieves the same level of conservation as would Federal coastwide measures, hence the term conservation equivalency. This means that minimum fish sizes, possession limits, and fishing seasons developed and adopted by the individual states from Massachusetts to<PRTPAGE P="30428"/>North Carolina will be utilized as the Federal waters measures for 2012.</P>
        <P>The Commission notified the NMFS Northeast Regional Administrator by letter dated May 4, 2012, that the 2012 summer flounder recreational fishery management programs (i.e., minimum fish size, possession limit, and fishing seasons) implemented by the states from Massachusetts to North Carolina have been reviewed by the Commission's Technical Committee and approved by the Commission's Summer Flounder Management Board (SF Board). The correspondence indicates that the Commission-approved management programs are projected to restrict 2012 recreational summer flounder coastwide landings consistent with the state-specific requirements established by the Technical Committee and SF Board through the Commission process.</P>
        <P>Based on the recommendation of the Commission, the NMFS Northeast Regional Administrator finds that the recreational summer flounder fishing measures proposed to be implemented by the individual states for 2012 are the conservation equivalent of the season, minimum size, and possession limit prescribed in §§ 648.102, 648.103, and 648.105(a), respectively. According to § 648.107(a)(1), vessels subject to the recreational fishing measures of this part and landing summer flounder in a state with an approved conservation equivalency program shall not be subject to Federal measures, and shall instead be subject to the recreational fishing measures implemented by the state in which they land. Section 648.107(a) has been amended to recognize state-implemented measures as conservation equivalent of the coastwide recreational management measures for 2012. For clarity, the 2012 summer flounder management measures adopted by the individual states vary according to the state of landing, as specified in Table 1.</P>
        <GPOTABLE CDEF="s50,12,xs80,xs100" COLS="4" OPTS="L2,i1">
          <TTITLE>Table 1—2012 Commission Approved State-by-State Conservation Equivalent Recreational Management Measures for Summer Flounder</TTITLE>
          <BOXHD>
            <CHED H="1">State</CHED>
            <CHED H="1">Minimum size<LI>(inches)</LI>
            </CHED>
            <CHED H="1">Possession<LI>limit</LI>
            </CHED>
            <CHED H="1">Open season</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Massachusetts</ENT>
            <ENT>16.5</ENT>
            <ENT>5 fish</ENT>
            <ENT>May 22-September 30.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Rhode Island</ENT>
            <ENT>18.5</ENT>
            <ENT>8 fish</ENT>
            <ENT>May 1-December 31.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Connecticut *</ENT>
            <ENT>18</ENT>
            <ENT>5 fish</ENT>
            <ENT>May 15-October 31.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">New York</ENT>
            <ENT>19.5</ENT>
            <ENT>4 fish</ENT>
            <ENT>May 1-September 30.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">New Jersey</ENT>
            <ENT>17.5</ENT>
            <ENT>5 fish</ENT>
            <ENT>May 5-September 28.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Delaware</ENT>
            <ENT>18</ENT>
            <ENT>4 fish</ENT>
            <ENT>January 1-October 23.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Maryland</ENT>
            <ENT>17</ENT>
            <ENT>3 fish</ENT>
            <ENT>April 14-December 16.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">PRFC</ENT>
            <ENT>16.5</ENT>
            <ENT>4 fish</ENT>
            <ENT>All year.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Virginia</ENT>
            <ENT>16.5</ENT>
            <ENT>4 fish</ENT>
            <ENT>All year.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">North Carolina</ENT>
            <ENT>15</ENT>
            <ENT>6 fish</ENT>
            <ENT>All year.</ENT>
          </ROW>
          <TNOTE>
            <E T="02">Note:</E>At 44 designated shore sites in CT, anglers may keep 5 fish at 16.0 inches (40.64 cm), May 1-September 30.</TNOTE>
        </GPOTABLE>
        <HD SOURCE="HD2">Scup Recreational Management Measures</HD>
        <P>NMFS is implementing the management measures as proposed in the April 30, 2012, proposed rule. These measures are a 10.5-in (26.67-cm) minimum fish size, a 20-fish per person possession limit, and year-round open season (i.e., January 1-December 31).</P>
        <P>These measures, in conjunction with the regional approach being applied to state waters through the Commission, are expected to constrain landings to the 8.45-million-lb (3,833-mt) recreational harvest limit.</P>
        <P>NMFS acknowledges that the Commission will continue managing the recreational scup fishery through a Commission-based conservation equivalency program that has no comparable measures in the Federal FMP. Thus, recreational management measures will differ between state and Federal waters in 2012. Historically, very little of the scup recreational harvest comes from Federal waters.</P>
        <HD SOURCE="HD2">Black Sea Bass Recreational Management Measures</HD>
        <P>NMFS is implementing the following measures for Federal waters during the 2012 fishery: A 12.5-in (31.75-cm) minimum fish size and a 15-fish per person possession limit from January 1 through the end of February; and a 12.5-in (31.75-cm) minimum fish size and a 25-fish per person possession limit from May 19-October 14 and from November 1-December 31. Measures for state waters will vary by state. Because the Commission-based measures implemented by the states are different than the Federal water measures, Federal permit holders are required to adhere to the more restrictive set of measures irrespective of whether the vessel is fishing in state or Federal waters. Similarly, private anglers must adhere to the recreational measures implemented by the state in which the fish will be landed as all the state-implemented measures place restrictions on possession as opposed to landings.</P>

        <P>For additional information on state-implemented management measures, please contact the marine fisheries management agency for the state in question or the Commission (<E T="03">www.asmfc.org;</E>(703) 842-0740).</P>
        <HD SOURCE="HD1">Comments and Responses</HD>
        <P>NMFS received three comments regarding the proposed recreational management measures. All three comments discussed the proposed opening of the recreational black sea bass fishery. Two of the comments requested that NMFS not delay implementing the final rule so that the black sea bass fishery would open on May 19, 2012. One comment requested that NMFS not make the rule effective until after that date. Detailed responses are addressed below.</P>
        <P>
          <E T="03">Comment:</E>The State of Delaware Division of Fish &amp; Wildlife commented that they did not want NMFS to publish the final rule in time to make the Council's recommended May 19, 2012, start date for the recreational black sea bass fishery. Delaware's rulemaking process would not allow them to open state waters on May 19, 2012, which could put federally permitted charter/party vessels home-ported in Delaware at a disadvantage because they could not land their catch in the state until the season is opened in its waters. Delaware claims that this is a violation of National Standard 4 of the Magnuson-Stevens Act.</P>
        <P>
          <E T="03">Response:</E>NMFS disagrees that implementing the Council's recommended measure for the start of the black sea bass fishery is a violation of National Standard 4. Reopening a fishing season is not an allocation or assignment of fishing privileges<PRTPAGE P="30429"/>contemplated by National Standard 4, and does not discriminate between residents of different states. Currently, the Federal regulations prescribe that the black sea bass season starts on May 22. Delaying implementation of this action to satisfy Delaware's request would have negative economic impacts for charter and party boat owners that are home-ported in other states that open the recreational fishing season on May 19. These vessels would be prevented from fishing on their traditional fishing grounds in Federal waters on a weekend (May 19-20) during which a significant amount of recreational fishing is expected to occur. The fact that a uniform coastwide reopening of the black sea bass season in Federal waters has a differing effect among the states is a function of the varied processes these states follow to establish a fishing season. It is not a discriminatory, unfair, or inequitable result imposed by the Federal regulation opening the recreational black sea bass fishery in Federal waters.</P>
        <P>
          <E T="03">Comment:</E>The Recreational Fishing Alliance commented that it supported all of the proposed measures for summer flounder, scup, and black sea bass. The comment expressed concern regarding the opening of the black sea bass fishery and stressed the importance of the additional fishing opportunity that having the rule effective before May 19, 2012, would provide to recreational fishermen.</P>
        <P>
          <E T="03">Response:</E>NMFS agrees that the additional weekend is important for recreational fishermen to take advantage of the increased fishing opportunity recommended by the Council. NMFS has made this rule effective as soon as possible after the close of the proposed rule comment period in an effort to have the fishery open on May 19, 2012.</P>
        <P>
          <E T="03">Comment:</E>One commenter said that he hoped that there would not be a delay in opening the black sea bass fishery beyond May 19. The commenter suggested that if the opening was delayed beyond the Council's recommended start date that NMFS add additional time on to the end of the season.</P>
        <P>
          <E T="03">Response:</E>As noted above, NMFS has made this rule effective as soon as possible after the close of the proposed rule comment period in an effort to have the fishery open on May 19, 2012. If the opening is delayed, however, the Council's recommended black sea bass season, as implemented through this rule, already extends the season in October an additional weekend beyond the status quo, and it would not be appropriate from NMFS to add 3 additional days beyond that.</P>
        <HD SOURCE="HD1">Classification</HD>
        <P>The Regional Administrator, Northeast Region, NMFS, determined that this final rule implementing the 2012 summer flounder, scup, and black sea bass recreational management measures is necessary for the conservation and management of the summer flounder, scup, and black sea bass fisheries, and is consistent with the Magnuson-Stevens Act and other applicable laws.</P>
        <P>This final rule has been determined to be not significant for purposes of Executive Order 12866.</P>
        <HD SOURCE="HD1">Administrative Procedure Act</HD>
        <P>The Assistant Administrator for Fisheries, NOAA, finds good cause to waive the requirement for a 30-day delay in effectiveness under the provisions of section 553(d) of the Administrative Procedure Act because a delay in its effectiveness would not serve any legitimate purpose while unfairly prejudicing federally permitted charter/party vessels. This action will open the recreational black sea bass fishery 3 days earlier than currently scheduled, allowing charter/party vessel operators to book trips starting on Saturday, May 19. Because some states' black sea bass fisheries are already open or will open on May 19, 2012, federally permitted charter/party vessels would be prohibited from fishing, even in state waters, until the Federal regulations are effective. This would unnecessarily disadvantage the federally permitted vessels, which would be prohibited from fishing at a time when state-licensed vessels could be engaged in fishing activities.</P>
        <P>In addition, this rule increases the possession limit for scup and extends fishing opportunities for fishermen that would otherwise be constrained under the current seasons. If this final rule is delayed for 30 days, the fishery would likely forego some amount of landings and revenues during the delay period. While some of these restrictions would be alleviated after this rule becomes effective, fishermen may be not able to recoup the lost economic opportunity of foregone trips that would result from delaying the effectiveness of this action. Delaying the opening of the scup and black sea bass seasons would complicate business plans currently being developed by charter/party operations, and prohibit them from effectively advertising and booking trips for the upcoming fishing season.</P>
        <P>Finally, requiring a 30-day delay before the final rule becomes effective does not provide any benefit to the regulated parties. Unlike actions that require an adjustment period to comply with new rules, charter/party operators will not have to purchase new equipment or otherwise expend time or money to comply with these management measures. Rather, complying with this final rule simply means adhering to the published management measures for each relevant species of fish while the charter/party operators are engaged in fishing activities.</P>
        <P>For these reasons, the Assistant Administrator finds good cause to waive the 30-day delay and to implement this rule upon filing with the Office of the Federal Register.</P>
        <HD SOURCE="HD1">Final Regulatory Flexibility Analysis</HD>

        <P>Included in this final rule is the FRFA prepared pursuant to 5 U.S.C. 604(a). The FRFA incorporates the economic impacts described in the IRFA, a summary of the significant issues raised by the public comments in response to the IRFA, NMFS's responses to those comments, and a summary of the analyses completed to support the action. Copies of the EA/RIR/IRFA and SEA are available from the Council and NMFS (see<E T="02">ADDRESSES</E>).</P>
        <HD SOURCE="HD2">Statement of Objective and Need</HD>
        <P>A description of the reasons why the 2012 recreational management measures for summer flounder, scup, and black sea bass are being implemented, and the objectives of and legal basis for this final rule implementing both actions are explained in the preambles to the proposed rule and this final rule, and are not repeated here.</P>
        <HD SOURCE="HD1">A Summary of the Significant Issues Raised by the Public Comments in Response to the IRFA, a Summary of the Assessment of the Agency of Such Issues, and a Statement of Any Changes Made in the Proposed Rule as a Result of Such Comments</HD>
        <P>Three comments were received on the proposed rule. However, none of the comments addressed the IRFA or economic analysis and did not result in any changes to the rule.</P>
        <HD SOURCE="HD2">Description and Estimate of Number of Small Entities to Which This Rule Will Apply</HD>

        <P>The recreational management measures could affect any of the 982 vessels possessing a Federal charter/party permit for summer flounder, scup, and/or black sea bass in 2010, the most recent year for which complete data are available. However, only 414 vessels reported active participation in the 2010 recreational summer flounder, scup, and/or black sea bass fisheries, based on<PRTPAGE P="30430"/>Vessel Trip Reports where the amount of kept summer flounder, scup, or black sea bass is greater than zero on a reported charter/party trip. 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 (part of NAICS code 487210) is $7 million in sales. Because any vessel at any time may be issued an open access charter/party summer flounder, scup, and/or black sea bass permit, it is difficult to determine how many vessels or owners will participate in this fishery in a given year. Although some firms own more than one vessel, available data make it difficult to reliably identify ownership control over more than one vessel. Thus, all of the entities (fishing vessels) affected by this action are considered small entities under the SBA size standards for charter/party fishing businesses ($7.0 million in annual gross sales). Therefore, there are no disproportionate effects on small versus large entities.</P>
        <HD SOURCE="HD2">Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements</HD>
        <P>No additional reporting, recordkeeping, or other compliance requirements are included in this final rule.</P>
        <HD SOURCE="HD2">Description of the Steps Taken To Minimize Economic Impact on Small Entities</HD>
        <P>In seeking to minimize the impact of recreational management measures (minimum fish size, possession limit, and fishing season) on small entities (i.e., Federal party/charter permit holders), NMFS is constrained to implementing measures that meet the conservation objectives of the FMP and Magnuson-Stevens Act. Management measures must provide sufficient constraints on recreational landings, such that the established recreational harvest limits have a low likelihood of being exceeded, which might lead to overfishing the stock. This rule maintains the status quo recreational management measures for summer flounder and implements less restrictive management measures for scup and black sea bass in Federal waters.</P>
        <P>
          <E T="03">Summer flounder alternatives.</E>The alternatives examined by the Council and forwarded for consideration by NMFS consisted of the non-preferred alternative of coastwide measures (an 18.5-inch (46.99-cm) minimum fish size, a 2-fish per person possession limit, and open season from May 1 through September 30), and the preferred alternative of state-by-state conservation equivalency (see Table 2 for measures) with a precautionary default backstop (status quo). These were alternatives 1 and 2, respectively, in the Council's SEA/RIR/IRFA. These two alternatives were determined by the Council to provide a high probability of constraining recreational landings to levels at or below the 2012 recreational harvest limit. Therefore, either alternative recreational management system could be considered for implementation by NMFS, as the critical metric of satisfying the regulatory and statutory requirements would likely be met by either.</P>
        <P>Next, NMFS considered the recommendation of both the Council and Commission. Both groups recommended implementation of state-by-state conservation equivalency, with a precautionary default backstop. The recommendations of both groups were not unanimous: Some Council and Commission members objected to the use of conservation equivalency, stating a preference for coastwide measures.</P>
        <P>For NMFS to disapprove the Council's recommendation for conservation equivalency and substitute coastwide management measures, NMFS must reasonably demonstrate that the recommended measures are either inconsistent with applicable law or that the conservation objectives of the FMP will not be achieved by implementing conservation equivalency. NMFS does not find the Council and Commission's recommendation to be inconsistent with the implementing regulations of the FMP at § 648.100 or the Magnuson-Stevens Act, including the 10 National Standards.</P>
        <P>The additional metric for consideration by NMFS, applicable to the FRFA, is examination of the economic impacts of the alternatives on small entities consistent with the stated objectives of applicable statutes. As previously stated, both coastwide measures (alternative 1) and conservation equivalency (alternative 2) are projected to achieve the conservation objectives for the 2012 summer flounder recreational fishery. However, the economic impacts of the two alternatives are not projected to be equal in the Council's analyses: The economic impacts on small entities under the coastwide measures management system would vary in comparison to the conservation equivalency system, dependent on the specific state wherein the small entities operate.</P>
        <P>Quantitative analyses of the economic impacts associated with conservation equivalency measures are not available. This is because the development of the individual state measures occurs concurrent to the NMFS rulemaking process to ensure timely implementation of final measures for the 2012 recreational fishery; thus, the specific measures implemented by states are not available for economic impact analyses. Instead, qualitative methods were utilized by the Council to assess the relative impact of conservation equivalency (alternative 2) to coastwide measures (alternative 1). The Council analysis concluded, and NMFS agrees, that conservation equivalency is expected to minimize impacts on small entities because individual states can develop specific summer flounder management measures that allow the fishery to operate during each state's critical fishing periods while still achieving conservation goals.</P>
        <P>NMFS is implementing the Council and Commission's recommended state-by-state conservation equivalency measures because: (1) NMFS finds no compelling reason to disapprove the Council and Commission's recommended 2012 management system, as the management measures contained in conservation equivalency are projected to provide the necessary restriction on recreational landings to prevent the recreational harvest limit from being exceeded; and (2) the net economic impact to small entities on a coastwide basis are expected to be mitigated, to the extent practicable, for a much larger percentage of small entities.</P>
        <P>
          <E T="03">Scup alternatives.</E>NMFS is implementing the Council's preferred measures as the Federal water measures for the 2012 fishing year: A 10.5-inch (26.67-cm) minimum fish size; a 20-fish per person possession limit; and year-round open season. Similar to the summer flounder discussion, this suite of scup measures (alternative 2) provides the greatest economic opportunity for small entities from the alternatives available by providing the maximum fishing opportunity in Federal waters that also meets the requirements of the Magnuson-Stevens Act, the FMP, and achieves the conservation objectives for 2012. Alternative 1 for a 10.5-inch (26.67-cm) minimum fish size, 10-fish per person possession limit, and open seasons of June 6-September 26 contained measures that had higher impacts on small entities fishing in Federal waters, as it contains more restrictive measures than would be necessary to satisfy the management objectives.</P>
        <P>
          <E T="03">Black sea bass alternatives.</E>As previously stated in the preamble,<PRTPAGE P="30431"/>individual states have developed and implemented measures for use in state waters. This rule implements the Council's preferred measures (Alternative 2 in the Council's SEA/RIR/IRFA): A 12.5-inch (31.75-cm) minimum fish size and a 25-fish possession limit for the May 19-October 14 and November 1-December 31 fishing seasons; and a 12.5-in (31.75-cm) minimum fish size and a 15-fish possession limit for January 1 through the end of February for Federal waters. This alternative provides the greatest associated economic opportunities to small entities of the measures considered for Federal waters that also meets the statutory and regulatory requirements for the 2012 fishery. Alternative 1 (a 13.0-inch (33.02-cm) minimum fish size, a 25-fish per person possession limit, and open season of May 22 through October 11 and November 1 through December 31), would result in higher impacts on small entities fishing in Federal waters, as it contains more restrictive measures than would be necessary to satisfy the management objectives.</P>
        <HD SOURCE="HD2">Small Entity Compliance Guide</HD>

        <P>Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996 states that, for each rule or group of related rules for which an agency is required to prepare a FRFA, the agency shall publish one or more guides to assist small entities in complying with the rule, and shall designate such publications as “small entity compliance guides.” The agency shall explain the actions a small entity is required to take to comply with a rule or group of rules. As part of this rulemaking process, a letter to permit holders that also serves as the small entity compliance guide was prepared and will be sent to all holders of Federal party/charter permits issued for the summer flounder, scup, and black sea bass fisheries. In addition, copies of this final rule and the small entity compliance guide are available from NMFS (see<E T="02">ADDRESSES</E>) and at the following Web site:<E T="03">http://www.nero.noaa.gov</E>.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 50 CFR Part 648</HD>
          <P>Fisheries, Fishing, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: May 17, 2012.</DATED>
          <NAME>Samuel D. Rauch III,</NAME>
          <TITLE>Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service.</TITLE>
        </SIG>
        
        <P>For the reasons set out in the preamble, 50 CFR part 648 is amended as follows:</P>
        <REGTEXT PART="648" TITLE="50">
          <PART>
            <HD SOURCE="HED">PART 648—FISHERIES OF THE NORTHEASTERN UNITED STATES</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 648 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>16 U.S.C. 1801<E T="03">et seq.</E>
            </P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="648" TITLE="50">
          <AMDPAR>2. In § 648.107, introductory paragraph (a) and paragraph (b) are revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 648.107</SECTNO>
            <SUBJECT>Conservation equivalent measures for the summer flounder party/charter and recreational fishery.</SUBJECT>
            <P>(a) The Regional Administrator has determined that the recreational fishing measures proposed to be implemented by Massachusetts through North Carolina for 2012 are the conservation equivalent of the minimum fish size, season, and possession limit prescribed in §§ 648.104(b), 648.105, and 648.106(a), respectively. This determination is based on a recommendation from the Summer Flounder Board of the Atlantic States Marine Fisheries Commission.</P>
            <STARS/>
            <P>(b) Federally permitted vessels subject to the recreational fishing measures of this part, and other recreational fishing vessels subject to the recreational fishing measures of this part and registered in states whose fishery management measures are not determined by the Regional Administrator to be the conservation equivalent of the minimum size, season, and possession limit prescribed in §§ 648.104(b), 648.105, and 648.106(a), respectively, due to the lack of, or the reversal of, a conservation equivalent recommendation from the Summer Flounder Board of the Atlantic States Marine Fisheries Commission, shall be subject to the following precautionary default measures: Season—May 1 through September 30; minimum size—20.0 inches (50.80 cm); and possession limit—two fish.</P>
          </SECTION>
          <AMDPAR>3. Section 648.127 is revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 648.127</SECTNO>
            <SUBJECT>Scup recreational fishing season.</SUBJECT>
            <P>Fishermen and vessels that are not eligible for a moratorium permit under § 648.4(a)(6) may possess scup year-round, subject to the possession limit specified in § 648.128(a). The recreational fishing season may be adjusted pursuant to the procedures in § 648.122.</P>
          </SECTION>
          <AMDPAR>4. In § 648.128, paragraph (a) is revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 648.128</SECTNO>
            <SUBJECT>Scup possession restrictions.</SUBJECT>
            <P>(a)<E T="03">Party/Charter and recreational possession limits.</E>No person shall possess more than 20 scup in, or harvested from, the EEZ unless that person is the owner or operator of a fishing vessel issued a scup moratorium permit, or is issued a scup dealer permit. Persons aboard a commercial vessel that is not eligible for a scup moratorium permit are subject to this possession limit. The owner, operator, and crew of a charter or party boat issued a scup moratorium permit are subject to the possession limit when carrying passengers for hire or when carrying more than five crew members for a party boat, or more than three crew members for a charter boat. This possession limit may be adjusted pursuant to the procedures in § 648.122.</P>
            <STARS/>
          </SECTION>
          <AMDPAR>5. In § 648.145, paragraph (a) is revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 648.145</SECTNO>
            <SUBJECT>Black sea bass possession limit.</SUBJECT>
            <P>(a) From January 1 through February 28, no person shall possess more than 15 black sea bass in, or harvested from, the EEZ unless that person is the owner or operator of a fishing vessel issued a black sea bass moratorium permit, or is issued a black sea bass dealer permit. From May 19 through October 14, and from November 1 through December 31, no person shall possess more than 25 black sea bass in, or harvested from, the EEZ unless that person is the owner or operator of a fishing vessel issued a black sea bass moratorium permit, or is issued a black sea bass dealer permit. Persons aboard a commercial vessel that is not eligible for a black sea bass moratorium permit may not retain more than 15 black sea bass from January 1 through February 29, or more than 25 black sea bass from May 19 through October 14 and from November 1 through December 31. The owner, operator, and crew of a charter or party boat issued a black sea bass moratorium permit are subject to the possession limit when carrying passengers for hire or when carrying more than five crew members for a party boat, or more than three crew members for a charter boat. This possession limit may be adjusted pursuant to the procedures in § 648.142.</P>
            <STARS/>
          </SECTION>
          <AMDPAR>6. Section 648.146 is revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 648.146</SECTNO>
            <SUBJECT>Black sea bass recreational fishing season.</SUBJECT>

            <P>Vessels that are not eligible for a moratorium permit under § 648.4(a)(7), and fishermen subject to the possession limit specified in § 648.145(a), may possess black sea bass from January 1 through February 28, May 19 through October 14, and November 1 through December 31, unless this time period is<PRTPAGE P="30432"/>adjusted pursuant to the procedures in § 648.142.</P>
          </SECTION>
        </REGTEXT>
        
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12422 Filed 5-18-12; 11:15 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </RULE>
  </RULES>
  <VOL>77</VOL>
  <NO>100</NO>
  <DATE>Wednesday, May 23, 2012</DATE>
  <UNITNAME>Proposed Rules</UNITNAME>
  <PRORULES>
    <PRORULE>
      <PREAMB>
        <PRTPAGE P="30433"/>
        <AGENCY TYPE="F">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Office of the Secretary</SUBAGY>
        <CFR>6 CFR Part 5</CFR>
        <DEPDOC>[Docket No. DHS-2012-0020]</DEPDOC>
        <SUBJECT>Privacy Act of 1974: Implementation of Exemptions; Automated Targeting System</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Privacy Office, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The Department of Homeland Security is giving concurrent notice of a updated system of records pursuant to the Privacy Act of 1974 for the “Department of Homeland Security/U.S. Customs and Border Protection—<E T="03">006—Automated Targeting System</E>(ATS) System of Records” and this proposed rulemaking. The Department is publishing this Notice of Proposed Rulemaking to ensure that the exemptions previously published are clearly and appropriately applied to all records in the updated system of records.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before June 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments, identified by docket number DHS-2012-0020, by one of the following methods:</P>
          <P>•<E T="03">Federal e-Rulemaking Portal:http://www.regulations.gov</E>. Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>703-483-2999.</P>
          <P>•<E T="03">Mail:</E>Mary Ellen Callahan, Chief Privacy Officer, Privacy Office, Department of Homeland Security, Washington, DC 20528.</P>
          <P>
            <E T="03">Instructions:</E>All submissions received must include the agency name and docket number for this notice. All comments received will be posted without change to<E T="03">http://www.regulations.gov,</E>including any personal information provided.</P>
          <P>
            <E T="03">Docket:</E>For access to the docket to read background documents or comments received, go to<E T="03">http://www.regulations.gov.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>For general questions please contact: Laurence E. Castelli (202-325-0280), CBP Privacy Officer, Office of International Trade, U.S. Customs and Border Protection, Mint Annex, 799 Ninth Street NW., Washington, DC 20229. For privacy issues please contact: Mary Ellen Callahan (703-235-0780), Chief Privacy Officer, Privacy Office, Department of Homeland Security, Washington, DC 20528.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">I. Background</HD>
        <P>In accordance with the Privacy Act of 1974, the Department of Homeland Security proposes to update and expand an existing Department of Homeland Security SORN titled, U.S. Customs and Border Protection, DHS/CBP-006—Automated Targeting System (ATS) 72 FR 43650, August 6, 2007.</P>
        <P>The SORN published elsewhere in the<E T="04">Federal Register</E>is being updated and expanded to inform the public about changes to the Automated Targeting System (ATS) categories of individuals, categories of records, routine uses, access provisions, and sources of data. DHS/CBP is updating and expanding the categories of individuals, categories of records and sources of records stored in ATS because it has certain data that it must ingest for performance purposes. The Privacy Impact Assessment (PIA), which DHS will publish on its Web site (<E T="03">http://www.dhs.gov/privacy</E>) concurrently with the publication of the SORN in the<E T="04">Federal Register</E>, provides a full discussion of the functional capabilities of ATS and its modules. DHS and CBP have previously exempted portions of ATS from the access, amendment, and public accounting provisions of the Privacy Act because it is a law enforcement system. DHS and CBP, however, will consider each request for access to records maintained in ATS to determine whether or not information may be released. DHS and CBP further note that despite the exemption taken on this system of records they are providing access and amendment to passenger name records (PNR) collected by CBP pursuant to its statutory authority, 49 U.S.C. 44909, as implemented by 19 CFR 122.49d; Importer Security Filing (10+2 documentation) information; and any records that were ingested by ATS where the source system of records already provides access and/or amendment under the Privacy Act.</P>
        <P>ATS provides the following basic functionalities to support the CBP officer in identifying individuals and cargo that need additional review across the different means or modes of travel to and from the United States:</P>
        <P>•<E T="03">Comparison:</E>ATS compares information on travelers and cargo coming into and going out of the country against law enforcement and intelligence databases to identify individuals and cargo requiring additional scrutiny. For example, ATS compares information on individuals (identified as passengers, travelers, crewmembers, or persons appearing on documents supporting the movement of cargo) trying to enter the country or trying to enter merchandise into the country against the Terrorist Screening Database (TSDB), which ATS ingests from the DHS Watchlist Service (WLS), and outstanding wants and warrants.</P>
        <P>•<E T="03">Rules:</E>ATS compares existing information on individuals and cargo entering and exiting the country with patterns identified as requiring additional scrutiny. The patterns are based on CBP officer experience, analysis of trends of suspicious activity, and raw intelligence corroborating those trends. For example, ATS might compare information on cargo entering the country against a set of scenario-based targeting rules that indicate a particular type of fish rarely is imported from a given country.</P>
        <P>•<E T="03">Federated Query:</E>ATS allows users to search data across many different databases and correlates it across the various systems to provide a person centric view of all data responsive to a query about the person's identity from the selected data bases.</P>
        <P>In order to do the above, ATS pulls data from many different source systems. In some instances ATS is the official record for the information, while in other instances ATS ingests and maintains the information in order to improve the functionality of the system or provides a pointer to the information in the underlying system. Below is a summary:</P>
        <P>•<E T="03">Official Record:</E>ATS maintains the official record for Passenger Name Records (PNR) collected by CBP pursuant to its statutory authority, 49<PRTPAGE P="30434"/>U.S.C. 44909, as implemented by 19 CFR 122.49d; for Importer Security Filing (10+2 documentation) information, which provides advanced information about cargo and related persons and entities for risk assessment and targeting purposes; for results of Cargo Enforcement Exams; for the combination of license plate, Department of Motor Vehicle (DMV) registration data and biographical data associated with a border crossing; for law enforcement and/or intelligence data, reports, and projects developed by CBP analysts that may include public source and/or classified information; and information obtained through memorandum of understanding or other arrangements because the information is relevant to the border security mission of the Department.</P>
        <P>•<E T="03">Ingestion of Data:</E>ATS maintains copies of key elements of certain CBP databases in order to minimize the processing time for searches on the operational systems and to act as a backup for certain operational systems, including, but not limited to: Automated Commercial Environment (ACE), Automated Commercial System (ACS), Automated Export System (AES), Advance Passenger Information System (APIS), Border Crossing Information (BCI), Consular Electronic Application Center (CEAC), Enforcement Integrated Database (EID) [which includes the Enforcement Case Tracking System (ENFORCE)], Electronic System for Travel Authorization (ESTA), Global Enrollment System (GES), Non-Immigrant Information System (NIIS), historical National Security Entry-Exit Registration System (NSEERS), Seized Asset and Case Tracking System (SEACATS), U.S. Immigration and Customs Enforcement (ICE) Student Exchange and Visitor Information System (SEVIS), Social Security Administration (SSA) Master Death File, TECS, Terrorist Screening Database (TSDB) through the DHS Watchlist Service (WLS), and WebIDENT. If additional data is ingested and that additional data does not require amendment of the categories of individuals or categories of records in the SORN, the PIA for ATS will be updated to reflect that information. The updated PIA can be found at<E T="03">www.dhs.gov/privacy.</E>
        </P>
        <P>•<E T="03">Pointer System:</E>ATS accesses and uses additional databases without ingesting the data, including, but not limited to: CBP Border Patrol Enforcement Tracking System (BPETS), Department of State Consular Consolidated Database (CCD), commercial data aggregators, CBP's Enterprise Geospatial Information Services (eGIS), DHS/USVISIT IDENT, National Law Enforcement Telecommunications System (Nlets), DOJ's National Crime Information Center (NCIC), the results of queries in the FBI's Interstate Identification Index (III), and the National Insurance Crime Bureau's (NICB's) private database of stolen vehicles. If additional data is ingested and that additional data does not require amendment of the categories of individuals or categories of records in the SORN, the PIA for ATS will be updated to reflect that information. The updated PIA can be found at<E T="03">www.dhs.gov/privacy</E>.</P>
        <P>DHS/CBP has reorganized the ATS routine uses to provide greater uniformity across DHS systems. Consistent with DHS's information sharing mission, information stored in ATS may be shared with other DHS components, as well as appropriate Federal, State, local, tribal, foreign, or international government agencies. This sharing will only take place after DHS determines that the recipient has a need to know the information to carry out functions consistent with the routine uses set forth in the SORN.</P>
        <P>DHS has exempted the system from the notification, access, amendment, and certain accounting provisions of the Privacy Act of 1974 because of the law enforcement nature of ATS. Despite the exemptions taken on this system of records, CBP and DHS are not exempting the following records from the access and amendment provisions of the Privacy Act: passenger name records (PNR) collected by CBP pursuant to its statutory authority, 49 U.S.C. 44909, as implemented by 19 CFR 122.49d; Importer Security Filing (10+2 documentation) information; and any records that were ingested by ATS where the source system of records already provides access and/or amendment under the Privacy Act. A traveler may obtain access to his or her PNR and request amendment as appropriate, but records concerning the targeting rules, the responses to rules, case events, law enforcement and/or intelligence data, reports, projects developed by CBP analysts that may include public source and/or classified information, information obtained through memorandum of understanding or other arrangements because the information is relevant to the border security mission of the Department, or records exempted from access by the system from which ATS ingested or accessed the information, will not be accessible to the individual.</P>
        <HD SOURCE="HD1">II. Privacy Act</HD>

        <P>The Privacy Act embodies fair information practice principles in a statutory framework governing the means by which the U.S. Government collects, maintains, uses, and disseminates personally identifiable information. The Privacy Act applies to information that is maintained in a “system of records.” A “system of records” is a group of any records under the control of an agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual. In the Privacy Act, an individual is defined to encompass U.S. citizens and lawful permanent residents. As a matter of policy (<E T="03">Privacy Policy Guidance Memorandum 2007-1,</E>most recently updated January 7, 2009), DHS extends administrative Privacy Act protections to all persons, regardless of citizenship, where systems of records maintains information on both U.S. citizens and lawful permanent residents, as well as visitors.</P>
        <P>The Privacy Act allows government agencies to exempt systems of records from certain provisions of the Act. If an agency claims an exemption, however, it must issue a Notice of Proposed Rulemaking to make clear to the public the reasons why a particular exemption is claimed.</P>
        <P>As such, DHS is continuing to claim exemptions from certain requirements of the Privacy Act for DHS/CBP-006—Automated Targeting System (ATS) System of Records. Some information in DHS/CBP-006—Automated Targeting System (ATS) System of Records relates to official DHS national security, law enforcement, immigration, and intelligence activities. These exemptions are needed to protect information relating to DHS activities from disclosure to subjects or others related to these activities. Specifically, the exemptions are required to preclude subjects of these activities from frustrating these processes; to avoid disclosure of activity techniques; to protect the identities and physical safety of confidential informants and law enforcement personnel; to ensure DHS' ability to obtain information from third parties and other sources; to protect the privacy of third parties; and to safeguard officially classified and/or controlled information. Disclosure of information to the subject of the inquiry could also permit the subject to avoid detection or apprehension.</P>

        <P>The exemptions proposed here are standard law enforcement and national security exemptions exercised by a large<PRTPAGE P="30435"/>number of federal law enforcement and intelligence agencies. In appropriate circumstances, where compliance would not appear to interfere with or adversely affect the law enforcement purposes of this system and the overall law enforcement process, the applicable exemptions may be waived.</P>

        <P>A notice of system of records for DHS/CBP-006—Automated Targeting System (ATS) System of Records is also published in this issue of the<E T="04">Federal Register</E>.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 6 CFR Part 5</HD>
          <P>Freedom of information; Privacy.</P>
        </LSTSUB>
        
        <P>For the reasons stated in the preamble, DHS proposes to amend Chapter I of Title 6, Code of Federal Regulations, as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 5—DISCLOSURE OF RECORDS AND INFORMATION</HD>
          <P>1. The authority citation for Part 5 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>6 U.S.C. 101<E T="03">et seq.;</E>Pub. L. 107-296, 116 Stat. 2135; 5 U.S.C. 301. Subpart A also issued under 5 U.S.C. 552. Subpart B also issued under 5 U.S.C. 552a.</P>
          </AUTH>
          
          <P>2. Replace paragraph 45 at the end of Appendix C to Part 5, with the following:</P>
          <HD SOURCE="HD1">Appendix C to Part 5—DHS Systems of Records Exempt From the Privacy Act</HD>
          <EXTRACT>
            <STARS/>
            <P>45. The DHS/CBP-006—Automated Targeting System (ATS) System of Records consists of electronic and paper records and will be used by DHS and its components. The DHS/CBP-006—Automated Targeting System (ATS) System of Records is a repository of information held by DHS in connection with its several and varied missions and functions, including, but not limited to the enforcement of civil and criminal laws; investigations, inquiries, and proceedings there under; national security and intelligence activities. The DHS/CBP-006—Automated Targeting System (ATS) System of Records contains information that is collected by, on behalf of, in support of, or in cooperation with DHS and its components and may contain personally identifiable information collected by other federal, state, local, tribal, foreign, or international government agencies. The Secretary of Homeland Security has exempted this system from certain provisions of the Privacy Act as follows:</P>
            <P>• Pursuant to 5 U.S.C. 552a(j)(2), the system is exempt from 5 U.S.C. 552a(c)(3) and (c)(4), (e)(1), (e)(2), (e)(3), (e)(4)(G), (e)(4)(H), (e)(4)(I), (e)(5), (e)(8), (f), and (g).</P>
            <P>• Pursuant to 5 U.S.C. 552a(j)(2), the system (except for passenger name records (PNR) collected by CBP pursuant to its statutory authority, 49 U.S.C. 44909, as implemented by 19 CFR 122.49d; Importer Security Filing (10+2 documentation) information; and any records that were ingested by ATS where the source system of records already provides access and/or amendment under the Privacy Act) is exempt from 5 U.S.C. 552a(d)(1), (d)(2), (d)(3), and (d)(4).</P>
            <P>• Pursuant to 5 U.S.C. 552a(k)(1) and (k)(2), the system is exempt from 5 U.S.C. 552a(c)(3); (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I); and (f).</P>
            <P>• Pursuant to 5 U.S.C. 552a(k)(1) and (k)(2), the system (except for passenger name records (PNR) collected by CBP pursuant to its statutory authority, 49 U.S.C. § 44909, as implemented by 19 CFR 122.49d; Importer Security Filing (10+2 documentation) information; and any records that were ingested by ATS where the source system of records already provides access and/or amendment under the Privacy Act) is exempt from (d)(1), (d)(2), (d)(3), and (d)(4).</P>
            <P>Exemptions from these particular subsections are justified, on a case-by-case basis to be determined at the time a request is made, for the following reasons:</P>
            <P>(a) From subsection (c)(3) and (4) (Accounting for Disclosures) because release of the accounting of disclosures could alert the subject of an investigation of an actual or potential criminal, civil, or regulatory violation to the existence of that investigation and reveal investigative interest on the part of DHS as well as the recipient agency. Disclosure of the accounting would therefore present a serious impediment to law enforcement efforts and/or efforts to preserve national security. Disclosure of the accounting would also permit the individual who is the subject of a record to impede the investigation, to tamper with witnesses or evidence, and to avoid detection or apprehension, which would undermine the entire investigative process.</P>
            <P>(b) From subsection (d) (Access to Records) because access to the records contained in this system of records could inform the subject of an investigation of an actual or potential criminal, civil, or regulatory violation to the existence of that investigation and reveal investigative interest on the part of DHS or another agency. Access to the records could permit the individual who is the subject of a record to impede the investigation, to tamper with witnesses or evidence, and to avoid detection or apprehension. Amendment of the records could interfere with ongoing investigations and law enforcement activities and would impose an unreasonable administrative burden by requiring investigations to be continually reinvestigated. In addition, permitting access and amendment to such information could disclose classified and security-sensitive information that could be detrimental to homeland security.</P>
            <P>(c) From subsection (e)(1) (Relevancy and Necessity of Information) because in the course of investigations into potential violations of federal law, the accuracy of information obtained or introduced occasionally may be unclear, or the information may not be strictly relevant or necessary to a specific investigation. In the interests of effective law enforcement, it is appropriate to retain all information that may aid in establishing patterns of unlawful activity.</P>
            <P>(d) From subsection (e)(2) (Collection of Information from Individuals) because requiring that information be collected from the subject of an investigation would alert the subject to the nature or existence of the investigation, thereby interfering with that investigation and related law enforcement activities.</P>
            <P>(e) From subsection (e)(3) (Notice to Individuals) because providing such detailed information could impede law enforcement by compromising the existence of a confidential investigation or reveal the identity of witnesses or confidential informants.</P>
            <P>(f) From subsections (e)(4)(G), (e)(4)(H), and (e)(4)(I) (Agency Requirements) and (f) (Agency Rules), because portions of this system are exempt from the individual access provisions of subsection (d) for the reasons noted above, and therefore DHS is not required to establish requirements, rules, or procedures with respect to such access. Providing notice to individuals with respect to existence of records pertaining to them in the system of records or otherwise setting up procedures pursuant to which individuals may access and view records pertaining to themselves in the system would undermine investigative efforts and reveal the identities of witnesses, and potential witnesses, and confidential informants.</P>
            <P>(g) From subsection (e)(5) (Collection of Information) because with the collection of information for law enforcement purposes, it is impossible to determine in advance what information is accurate, relevant, timely, and complete. Compliance with subsection (e)(5) would preclude DHS agents from using their investigative training and exercise of good judgment to both conduct and report on investigations.</P>
            <P>(h) From subsection (e)(8) (Notice on Individuals) because compliance would interfere with DHS's ability to obtain, serve, and issue subpoenas, warrants, and other law enforcement mechanisms that may be filed under seal and could result in disclosure of investigative techniques, procedures, and evidence.</P>
            <P>(i) From subsection (g)(1) (Civil Remedies) to the extent that the system is exempt from other specific subsections of the Privacy Act.</P>
          </EXTRACT>
          <SIG>
            <NAME>Mary Ellen Callahan,</NAME>
            <TITLE>Chief Privacy Officer, Department of Homeland Security.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12395 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-06-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">NUCLEAR REGULATORY COMMISSION</AGENCY>
        <CFR>10 CFR Part 50</CFR>
        <DEPDOC>[Docket No. PRM-50-105; NRC-2012-0056]</DEPDOC>
        <SUBJECT>In-core Thermocouples at Different Elevations and RadialPositions in Reactor Core</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Nuclear Regulatory Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Petition for rulemaking; receipt and request for comment.</P>
        </ACT>
        <SUM>
          <PRTPAGE P="30436"/>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The U.S. Nuclear Regulatory Commission (NRC or the Commission) is publishing for public comment a notice of receipt for a petition for rulemaking (PRM), dated February 28, 2012, which was filed with the NRC by Mr. Mark Edward Leyse (the petitioner). The petition was docketed by the NRC on March 2, 2012, and assigned Docket No. PRM-50-105. The petitioner requests that the NRC amend its regulations to “require all holders of operating licenses for nuclear power plants (“NPP”) to operate NPPs with in-core thermocouples at different elevations and radial positions throughout the reactor core.”</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Submit comments by August 6, 2012. Comments received after this date will be considered if it is practical to do so, but the NRC is able to assure consideration only for comments received on or before this date. Due to resource constraints the NRC cannot guarantee explicit response to comments received after this date.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>You may access information and comment submissions related to this petition for rulemaking, which the NRC possesses and are publicly available, by searching on<E T="03">http://www.regulations.gov</E>under Docket ID NRC-2012-0056. 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-2012-0056. 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">Email comments to: Rulemaking.Comments@nrc.gov.</E>If you do not receive an automatic email reply confirming receipt, then contact us at 301-415-1677.</P>
          <P>•<E T="03">Fax comments to:</E>Secretary, U.S. Nuclear Regulatory Commission at  301-415-1101.</P>
          <P>•<E T="03">Mail comments to:</E>Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, ATTN: Rulemakings and Adjudications Staff.</P>
          <P>•<E T="03">Hand deliver comments to:</E>11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 a.m. and 4:15 p.m. (Eastern Time) Federal workdays; telephone: 301-415-1677.</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>Cindy Bladey, Chief, Rules, Announcements, and Directives Branch, Division of Administrative Services, Office of Administration, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-492-3667, email:<E T="03">Cindy.Bladey@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-2012-0056 when contacting the NRC about the availability of information for this petition for rulemaking. You may access information related to this petition for rulemaking, 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-2012-0056.</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 “ADAMS Public Documents” 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 pdr.resource@nrc.gov. The incoming petition is in ADAMS under accession No. ML12065A215.</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-2012-0056 in the subject line of your 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 that you do not want to be publicly disclosed in your comment submission. The NRC will post all comment submissions at<E T="03">http://www.regulations.gov</E>as well as enter the comment submissions into ADAMS. The NRC does not routinely 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 that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely 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. The Petitioner</HD>
        <P>The petition states that the petitioner previously submitted an earlier PRM to the NRC on emergency core cooling systems (ADAMS Accession No. ML070871368), which the NRC assigned Docket ID PRM-50-84 (73 FR 71564; November 25, 2008). In addition, the petition states that the petitioner co-authored a paper entitled, “Considering the Thermal Resistance of Crud in LOCA Analysis” (American Nuclear Society, 2009 Winter Meeting, Washington, DC (November 15-19, 2009)).</P>
        <HD SOURCE="HD1">III. The Petition</HD>
        <P>In its petition (ADAMS Accession No. ML12065A215), the petitioner requests that the NRC amend its regulations in Title 10 of the Code of Federal Regulations (10 CFR) part 50, “Domestic Licensing of Production and Utilization Facilities,” to “require all holders of operating licenses for nuclear power plants (“NPP”) to operate NPPs with in-core thermocouples at different elevations and radial positions throughout the reactor core to enable NPP operators to accurately measure a large range of in-core temperatures in NPP steady-state and transient conditions.” The petitioner further asserts that, in the event of a severe accident, in-core thermocouples would provide NPP operators with “crucial information to help operators manage the accident.”</P>

        <P>In addition to several other reports and findings cited by the petitioner to support the petition, the petitioner cites the “Report of the President's Commission on the Accident at Three Mile Island [TMI]: The Need for Change: The Legacy of TMI,” dated October 1979. The petitioner states that “[i]n the last three decades, NRC has not made a regulation requiring that NPPs operate with in-core thermocouples at different elevations and radial positions throughout the reactor core to enable NPP operators to accurately measure a large range of in-core temperatures in NPP steady-state and transient conditions, which would help fulfill the President's Commission recommendations. If another severe accident were to occur in the United States, NPP operators would not know what the in-core temperatures were during the progression of the accident.” The petitioner continues by stating that “[i]n a severe accident, core-exit thermocouples would be the primary<PRTPAGE P="30437"/>tool that was used to detect inadequate core cooling and core uncover.” The petitioner states “[t]he problem with using a predetermined core-exit temperature measurement to signal the time for NPP operators to transition from EOPs [Emergency Operating Procedures] to implementing SAMGs [Severe Accident Management Guidelines] is that experimental data indicates that core-exit temperature (“CET”) measurements have significant limitations: (1) `[t]he use of the CET measurements has limitations in detecting inadequate core cooling and core uncovery;' (2) `[t]he CET indication displays in all cases a significant delay (up to several 100 [seconds]);' and (3) `[t]he CET reading is always significantly lower (up to several 100 [Kelvin]) than the actual maximum cladding temperature.' ”<SU>1</SU>
          <FTREF/>The petitioner continues by asserting that “despite the fact that `the nuclear industry developed SAMGs during the 1980s and 1990s in response to the [Three Mile Island] accident and followup activities,' which `included extensive research and study (including several [probabilistic risk assessments]) on severe accidents and severe accident phenomena,'<SU>2</SU>
          <FTREF/>NRC and the nuclear industry have ignored experimental data indicating that CET measurements have significant limitations. And ignored the President's Commission recommendations that NPPs have `instruments that can provide proper warning and diagnostic information; for example, the measurement of the full range of temperatures within the reactor vessel under normal and abnormal conditions.' ”<SU>3</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>1</SU>Robert Prior,<E T="03">et al.,</E>OECD Nuclear Energy Agency, Committee on the Safety of Nuclear Installations, “Core Exit Temperature (CET) Effectiveness in Accident Management of Nuclear Power Reactor,” NEA/CSNI/R(2010)9, November 26 2010, p. 128.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>2</SU>Charles Miller,<E T="03">et al.,</E>NRC, “Recommendations for Enhancing Reactor Safety in the 21st Century: The Near-Term Task Force Review of Insights from the Fukushima Dai-ichi Accident,” SECY-11-0093, July 12, 2011, available at:<E T="03">www.nrc.gov,</E>NRC Library, ADAMS Documents, Accession Number: ML 111861807, p. 47.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>John G. Kemeny,<E T="03">et al.,</E>“Report of the President's Commission on the Accident at Three Mile Island: The Need for Change: The Legacy of TMI,” p. 72.</P>
        </FTNT>

        <P>The petitioner cites the NRC's July 2011 “Recommendations for Enhancing Reactor Safety in the 21st Century: The Near-Term Task Force Review of Insights from the Fukushima Dai-ichi Accident,” by stating that “`EOPs typically cover accidents to the point of loss of core cooling and initiation of inadequate core cooling (<E T="03">e.g.,</E>core exit temperatures in PWRs greater than 649 degrees Celsius (1200 degrees Fahrenheit)).' ”<SU>4</SU>
          <FTREF/>The petitioner continues by stating “[u]nfortunately, NRC and Westinghouse do not consider that experimental data from tests conducted at four facilities indicates that CET measurements would not be an adequate indicator for when to transition from EOPs to implementing SAMGs in a severe accident.”</P>
        <FTNT>
          <P>
            <SU>4</SU>Charles Miller,<E T="03">et al.,</E>“Recommendations for Enhancing Reactor Safety in the 21st Century: The Near-Term Task Force Review of Insights from the Fukushima Dai-ichi Accident,” p. 47.</P>
        </FTNT>
        <P>The petitioner cites findings of experiments, including a LOFT LP-FP-2 experiment, and states that “[t]he results of LOFT LP-FP-2 and other experiments demonstrate the need for NPPs to operate with in-core thermocouples at different elevations and radial positions throughout the reactor core to enable NPP operators to accurately measure a large range of  in-core temperatures in NPP steady-state and transient conditions.”</P>
        <P>The petition states that the “[p]etitioner is submitting this 10 CFR 2.802 petition because if NPPs were to operate with in-core thermocouples at different elevations and radial positions throughout the reactor core to enable NPP operators to accurately measure a large range of in-core temperatures in NPP steady-state and transient conditions, it would help improve public and plant-worker safety. In the event of a severe accident, in-core thermocouples would enable NPP operators to accurately measure in-core temperatures, providing crucial information to help operators manage the accident; for example, indicating the time to transition from EOPs to implementing SAMGs.” The petitioner also asserts that “[i]f implemented, the regulation proposed in this petition for rulemaking would help improve public and plant-worker safety.”</P>
        <SIG>
          <DATED>Dated at Rockville, Maryland, this 16th day of May 2012.</DATED>
          
          <P>For the Nuclear Regulatory Commission.</P>
          <NAME>Annette L. Vietti-Cook,</NAME>
          <TITLE>Secretary of the Commission.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12475 Filed 5-22-12; 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 71</CFR>
        <DEPDOC>[Docket No. FAA-2012-0287; Airspace Docket No. 11-AWP-21]</DEPDOC>
        <RIN>RIN 2120-AA66</RIN>
        <SUBJECT>Proposed Amendment of Air Traffic Service Routes; Southwestern United States</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); correction.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This action corrects the description of VOR Federal airway V-16 to include a previous amendment to the description that was inadvertently omitted in the NPRM.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before June 7, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Paul Gallant, Airspace, Regulations and ATC Procedures Group, Office of Airspace Services, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-8783.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>On April 23, 2012, Docket No. FAA-2012-0287; Airspace Docket No. 11-AWP-21 was published in the<E T="04">Federal Register</E>proposing to amend various Air Traffic Service Routes in the Southwestern United States (77 FR 24156). The description of V-16 in the NPRM did not reflect a previous amendment of the route that was published on September 19, 2011 (76 FR 57902). The incorrect part of the V-16 description in the NPRM reads “* * * Kennedy; Dear Park, NY; Calverton, NY; Norwich, CT * * *” The correct version is “* * * Kennedy; INT Kennedy040° and Calverton, NY 261° radials; Calverton; Norwich, CT * * *” The corrected airspace description is rewritten for clarity.</P>
        <HD SOURCE="HD1">Correction to Proposed Rule</HD>

        <P>Accordingly, pursuant to the authority delegated to me, the NPRM for the proposed amendment of Air Traffic Service Routes; Southwestern United States as published in the<E T="04">Federal Register</E>of April 23, 2010 (77 FR 24156) FR Doc. 2012-9675, is corrected as follows:</P>
        <P>By removing the description of V-16 starting at line 16, column 3, on page 24157, and inserting the following:</P>
        
        <EXTRACT>
          <HD SOURCE="HD1">V-16[Amended]</HD>

          <P>From Los Angeles, CA; Paradise, CA; Palm Springs, CA; Blythe, CA; Buckeye, AZ;<PRTPAGE P="30438"/>Phoenix, AZ; INT Phoenix 155° and Stanfield, AZ,105° radials; Tucson, AZ; San Simon, AZ; INT San Simon 119°(T)/106°(M) and Columbus, NM, 277°(T)/265°(M) radials; Columbus; El Paso, TX; Salt Flat, TX; Wink, TX; INT Wink 066° and Big Spring, TX, 260° radials; Big Spring; Abilene, TX; Bowie, TX; Bonham, TX; Paris, TX; Texarkana, AR; Pine Bluff, AR; Marvell, AR; Holly Springs, MS; Jacks Creek, TN; Shelbyville, TN; Hinch Mountain, TN; Volunteer, TN; Holston Mountain, TN; Pulaski, VA; Roanoke, VA; Lynchburg, VA; Flat Rock, VA; Richmond, VA; INT Richmond 039° and Patuxent, MD, 228° radials; Patuxent; Smyrna, DE; Cedar Lake, NJ; Coyle, NJ; INT Coyle 036° and Kennedy, NY, 209° radials; Kennedy; INT Kennedy 040° and Calverton, NY 261° radials; Calverton; Norwich, CT; Boston, MA. The airspace within Mexico and the airspace below 2,000 feet MSL outside the United States is excluded. The airspace within Restricted Areas R-5002A, R-5002C, and R-5002D is excluded during their times of use. The airspace within Restricted Areas R-4005 and R-4006 is excluded.</P>
        </EXTRACT>
        
        <SIG>
          <DATED>Issued in Washington, DC, on May 16, 2012.</DATED>
          <NAME>Ellen Crum,</NAME>
          <TITLE>Acting Manager, Airspace, Regulations and ATC Procedures Group.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12571 Filed 5-22-12; 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 71</CFR>
        <DEPDOC>[Docket No. FAA-2012-0386; Airspace Docket No. 12-AEA-6]</DEPDOC>
        <SUBJECT>Proposed Establishment of Class E Airspace; Quakertown, PA</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>This action proposes to establish Class E Airspace at Quakertown, PA, to accommodate new Area Navigation (RNAV) Global Positioning System (GPS) Standard Instrument Approach Procedures at Quakertown Airport. This action would enhance the safety and airspace management of Instrument Flight Rules (IFR) operations at the airport.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before July 9, 2012. The Director of the Federal Register approves this incorporation by reference action under title 1, Code of Federal Regulations, part 51, subject to the annual revision of FAA, Order 7400.9 and publication of conforming amendments.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Send comments on this rule to: U. S. Department of Transportation, Docket Operations, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001; Telephone: 1-800-647-5527; Fax: 202-493-2251. You must identify the Docket Number FAA-2012-0386; Airspace Docket No. 12-AEA-6, at the beginning of your comments. You may also submit and review received comments through the Internet at<E T="03">http://www.regulations.gov.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>John Fornito, Operations Support Group, Eastern Service Center, Federal Aviation Administration, P.O. Box 20636, Atlanta, Georgia 30320; telephone (404) 305-6364.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Comments Invited</HD>
        <P>Interested persons are invited to comment on this rule by submitting such written data, views, or arguments, as they may desire. Comments that provide the factual basis supporting the views and suggestions presented are particularly helpful in developing reasoned regulatory decisions on the proposal. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal.</P>

        <P>Communications should identify both docket numbers (FAA Docket No. FAA-2012-0386; Airspace Docket No. 12-AEA-6) and be submitted in triplicate to the Docket Management System (see<E T="02">ADDRESSES</E>section for address and phone number). You may also submit comments through the Internet at<E T="03">http://www.regulations.gov.</E>
        </P>
        <P>Persons wishing the FAA to acknowledge receipt of their comments on this action must submit with those comments a self-addressed stamped postcard on which the following statement is made: “Comments to Docket No. FAA-2012-0386; Airspace Docket No. 12-AEA-6.” The postcard will be date/time stamped and returned to the commenter.</P>
        <P>All communications received before the specified closing date for comments will be considered before taking action on the proposed rule. The proposal contained in this notice may be changed in light of the comments received. A report summarizing each substantive public contact with FAA personnel concerned with this rulemaking will be filed in the docket.</P>
        <HD SOURCE="HD1">Availability of NPRMs</HD>

        <P>An electronic copy of this document may be downloaded from and comments submitted through<E T="03">http://www.regulations.gov</E>. Recently published rulemaking documents can also be accessed through the FAA's web page at<E T="03">http://www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_amendments/.</E>
        </P>

        <P>You may review the public docket containing the proposal, any comments received and any final disposition in person in the Dockets Office (see the<E T="02">ADDRESSES</E>section for address and phone number) between 9 a.m. and 5 p.m., Monday through Friday, except Federal Holidays. An informal docket may also be examined during normal business hours at the office of the Eastern Service Center, Federal Aviation Administration, room 350, 1701 Columbia Avenue, College Park, Georgia 30337.</P>
        <P>Persons interested in being placed on a mailing list for future NPRMs should contact the FAA's Office of Rulemaking, (202) 267-9677, to request a copy of Advisory circular No. 11-2A, Notice of Proposed Rulemaking distribution System, which describes the application procedure.</P>
        <HD SOURCE="HD1">The Proposal</HD>
        <P>The FAA is considering an amendment to Title 14, Code of Federal Regulations (14 CFR) part 71 to establish Class E airspace at Quakertown, PA, providing the controlled airspace required to support the new RNAV (GPS) standard instrument approach procedures for Quakertown Airport. Controlled airspace extending upward from 700 feet above the surface would be established for the safety and management of IFR operations at the airport.</P>
        <P>Class E airspace designations are published in Paragraph 6005 of FAA Order 7400.9V, dated August 9, 2011, and effective September 15, 2011, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designation listed in this document will be published subsequently in the Order.</P>

        <P>The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore, (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a Regulatory Evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated,<PRTPAGE P="30439"/>would not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. 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. This proposed rulemaking is promulgated under the authority described in Subtitle VII, Part, A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This proposed regulation is within the scope of that authority as it would establish Class E airspace at Quakertown Airport, Quakertown, PA.</P>
        <P>This proposal will be subject to an environmental analysis in accordance with FAA Order 1050.1E, “Environmental Impacts: Policies and Procedures” prior to any FAA final regulatory action.</P>
        <LSTSUB>
          <HD SOURCE="HED">Lists of Subjects in 14 CFR Part 71</HD>
          <P>Airspace, Incorporation by reference, Navigation (air).</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment:</HD>
        <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
          <P>1. The authority citation for part 71 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 71.1</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation Administration Order 7400.9V, Airspace Designations and Reporting Points, dated August 9, 2011, effective September 15, 2011, is amended as follows:</P>
            <EXTRACT>
              <HD SOURCE="HD2">Paragraph 6005Class E airspace areas extending upward from 700 Feet or more above the surface of the earth.</HD>
              <STARS/>
              <HD SOURCE="HD1">AEA PA E5Quakertown, PA [New]</HD>
              <FP SOURCE="FP-1">Quakertown Airport, PA</FP>
              <FP SOURCE="FP1-2">(Lat. 40°26′07″ N., long. 75°22′55″ W.)</FP>
              
              <P>That airspace extending upward from 700 feet above the surface within an 8.3-mile radius of Quakertown Airport, and within 5.4 miles each side of the 099° bearing from the airport, extending from the 8.3-mile radius to 11.1-miles east of the airport.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in College Park, Georgia, on May 16, 2012.</DATED>
            <NAME>Michael D. Wagner,</NAME>
            <TITLE>Acting Manager, Operations Support Group, Eastern Service Center, Air Traffic Organization.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12545 Filed 5-22-12; 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 71</CFR>
        <DEPDOC>[Docket No. FAA-2012-0249; Airspace Docket No. 12-ASO-16]</DEPDOC>
        <SUBJECT>Proposed Establishment of Class E Airspace; Apopka, FL</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>This action proposes to establish Class E Airspace at Apopka, FL, to accommodate the Area Navigation (RNAV) Global Positioning System (GPS) Standard Instrument Approach Procedures at Orlando Apopka Airport. This action would enhance the safety and airspace management of Instrument Flight Rules (IFR) operations at the airport.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before July 9, 2012. The Director of the Federal Register approves this incorporation by reference action under title 1, Code of Federal Regulations, part 51, subject to the annual revision of FAA, Order 7400.9 and publication of conforming amendments.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Send comments on this rule to: U. S. Department of Transportation, Docket Operations, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001; Telephone: 1-800-647-5527; Fax: 202-493-2251. You must identify the Docket Number FAA-2012-0249; Airspace Docket No. 12-ASO-16, at the beginning of your comments. You may also submit and review received comments through the Internet at<E T="03">http://www.regulations.gov.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>John Fornito, Operations Support Group, Eastern Service Center, Federal Aviation Administration, P.O. Box 20636, Atlanta, Georgia 30320; telephone (404) 305-6364.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Comments Invited</HD>
        <P>Interested persons are invited to comment on this rule by submitting such written data, views, or arguments, as they may desire. Comments that provide the factual basis supporting the views and suggestions presented are particularly helpful in developing reasoned regulatory decisions on the proposal. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal.</P>

        <P>Communications should identify both docket numbers (FAA Docket No. FAA-2012-0249; Airspace Docket No. 12-ASO-16) and be submitted in triplicate to the Docket Management System (see<E T="02">ADDRESSES</E>section for address and phone number). You may also submit comments through the Internet at<E T="03">http://www.regulations.gov.</E>
        </P>
        <P>Persons wishing the FAA to acknowledge receipt of their comments on this action must submit with those comments a self-addressed stamped postcard on which the following statement is made: “Comments to Docket No. FAA-2012-0249; Airspace Docket No. 12-ASO-16.” The postcard will be date/time stamped and returned to the commenter.</P>
        <P>All communications received before the specified closing date for comments will be considered before taking action on the proposed rule. The proposal contained in this notice may be changed in light of the comments received. A report summarizing each substantive public contact with FAA personnel concerned with this rulemaking will be filed in the docket.</P>
        <HD SOURCE="HD1">Availability of NPRMs</HD>

        <P>An electronic copy of this document may be downloaded from and comments submitted through<E T="03">http://www.regulations.gov.</E>Recently published rulemaking documents can also be accessed through the FAA's Web page at<E T="03">http://www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_amendments/.</E>
        </P>

        <P>You may review the public docket containing the proposal, any comments received and any final disposition in person in the Dockets Office (see the<E T="02">ADDRESSES</E>section for address and phone number) between 9 a.m. and 5 p.m., Monday through Friday, except Federal Holidays. An informal docket may also be examined during normal business hours at the office of the Eastern Service Center, Federal Aviation Administration, room 350, 1701 Columbia Avenue, College Park, Georgia 30337.<PRTPAGE P="30440"/>
        </P>
        <P>Persons interested in being placed on a mailing list for future NPRMs should contact the FAA's Office of Rulemaking, (202) 267-9677, to request a copy of Advisory circular No. 11-2A, Notice of Proposed Rulemaking distribution System, which describes the application procedure.</P>
        <HD SOURCE="HD1">The Proposal</HD>
        <P>The FAA is considering an amendment to Title 14, Code of Federal Regulations (14 CFR) part 71 to establish Class E airspace at Apopka, FL, providing the controlled airspace required to support the RNAV GPS standard instrument approach procedures for Orlando Apopka Airport. Controlled airspace extending upward from 700 feet above the surface would be established for the safety and management of IFR operations at the airport.</P>
        <P>Class E airspace designations are published in Paragraph 6005 of FAA Order 7400.9V, dated August 9, 2011, and effective September 15, 2011, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designation listed in this document will be published subsequently in the Order.</P>
        <P>The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore, (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a Regulatory Evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, would not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. 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. This proposed rulemaking is promulgated under the authority described in Subtitle VII, Part, A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This proposed regulation is within the scope of that authority as it would establish Class E airspace at Orlando Apopka Airport, Apopka, FL.</P>
        <P>This proposal will be subject to an environmental analysis in accordance with FAA Order 1050.1E, “Environmental Impacts: Policies and Procedures” prior to any FAA final regulatory action.</P>
        <LSTSUB>
          <HD SOURCE="HED">Lists of Subjects in 14 CFR Part 71</HD>
          <P>Airspace, Incorporation by reference, Navigation (air).</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
          <P>1. The authority citation for part 71 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 71.1</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation Administration Order 7400.9V, Airspace Designations and Reporting Points, dated August 9, 2011, effective September 15, 2011, is amended as follows:</P>
            <EXTRACT>
              <HD SOURCE="HD2">Paragraph 6005Class E airspace areas extending upward from 700 feet or more above the surface of the earth.</HD>
              <STARS/>
              <HD SOURCE="HD1">ASO FL E5Apopka, FL [New]</HD>
              <FP SOURCE="FP-2">Orlando Apopka Airport, FL</FP>
              <FP SOURCE="FP1-2">(Lat. 28°42′27″ N., long. 81°34′55″ W.)</FP>
              
              <P>That airspace extending upward from 700 feet above the surface within a 6.8-mile radius of Orlando Apopka Airport.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in College Park, Georgia, on May 16, 2012.</DATED>
            <NAME>Michael D. Wagner,</NAME>
            <TITLE>Acting Manager, Operations Support Group, Eastern Service Center, Air Traffic Organization.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12550 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 110</CFR>
        <DEPDOC>[Docket No. USCG-2011-0348]</DEPDOC>
        <RIN>RIN 1625-AA01</RIN>
        <SUBJECT>Anchorage; Change to Cottonwood Island Anchorage, Columbia River, Oregon and Washington</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Supplemental notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Coast Guard is revising its proposed rule to increase the availability of designated anchorages on the Columbia River. In response to comments on its prior proposal, the Coast Guard proposes a smaller extension of the Cottonwood Island Anchorage than that originally proposed, and the creation of a new anchorage area upriver from the center of the City of Prescott, OR.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments and related material must be received by the Coast Guard on or before June 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments identified by docket number USCG-2011-0348 using any one of the following methods:</P>
          <P>(1)<E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
          </P>
          <P>(2)<E T="03">Fax:</E>202-493-2251.</P>
          <P>(3)<E T="03">Mail:</E>Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.</P>
          <P>(4)<E T="03">Hand delivery:</E>Same as mail address above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The telephone number is 202-366-9329.</P>

          <P>To avoid duplication, please use only one of these four methods. See the “Public Participation and Request for Comments” portion of the<E T="02">SUPPLEMENTARY INFORMATION</E>section below for instructions on submitting comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this proposed rule, call or email ENS Ian McPhillips, Waterways Management Branch, Coast Guard Marine Safety Unit Portland; telephone 503-240-9319, email<E T="03">Ian.P.McPhillips@uscg.mil.</E>If you have questions on viewing or submitting material to the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <PRTPAGE P="30441"/>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Public Participation and Request for Comments</HD>

        <P>We encourage you to participate in this rulemaking by submitting comments and related materials. All comments received will be posted without change to<E T="03">http://www.regulations.gov</E>and will include any personal information you have provided.</P>
        <HD SOURCE="HD2">Submitting Comments</HD>

        <P>If you submit a comment, please include the docket number for this rulemaking (USCG-2011-0348), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online (via<E T="03">http://www.regulations.gov</E>) or by fax, mail, or hand delivery, but please use only one of these means. If you submit a comment online via<E T="03">www.regulations.gov,</E>it will be considered received by the Coast Guard when you successfully transmit the comment. If you fax, hand delivery, or mail your comment, it will be considered as having been received by the Coast Guard when it is received at the Docket Management Facility. We recommend that you include your name and a mailing address, an email address, or a telephone number in the body of your document so that we can contact you if we have questions regarding your submission.</P>
        <P>To submit your comment online, go to<E T="03">http://www.regulations.gov,</E>select the Advanced Docket Search option on the right side of the screen, insert “USCG-2011-0348” in the Docket ID box, press Enter, and then click on the balloon shape in the Actions column. If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8<FR>1/2</FR>by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the Facility, please enclose a stamped, self-addressed postcard or envelope. We will consider all comments and material received during the comment period and may change the rule based on your comments.</P>
        <HD SOURCE="HD2">Viewing Comments and Documents</HD>

        <P>To view comments, as well as documents mentioned in this preamble as being available in the docket, go to<E T="03">http://www.regulations.gov,</E>click on the “read comments” box, which will then become highlighted in blue. In the “Keyword” box insert “USCG-2011-0348” and click “Search.” Click the “Open Docket Folder” in the “Actions” column. You may also visit the Docket Management Facility in Room W12-140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. We have an agreement with the Department of Transportation to use the Docket Management Facility.</P>
        <HD SOURCE="HD2">Privacy Act</HD>

        <P>Anyone can search the electronic form of comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review a Privacy Act notice regarding our public dockets in the January 17, 2008, issue of the<E T="04">Federal Register</E>(73 FR 3316).</P>
        <HD SOURCE="HD2">Public Meeting</HD>

        <P>We do not now plan to hold a public meeting. But, you may submit a request for one using one of the four methods specified under<E T="02">ADDRESSES</E>. Please explain why you believe a public meeting would be beneficial. If we determine that one would aid this rulemaking, we will hold one at a time and place announced by a later notice in the<E T="04">Federal Register</E>.</P>
        <HD SOURCE="HD1">Basis and Purpose</HD>
        <P>The Captain of the Port Columbia River believes that the size of the Cottonwood Island Anchorage is insufficient as currently established based on both the current demand for anchorage grounds and the forecasted growth of vessel traffic on the Columbia River. Sufficient anchorage area, both in number and size, is especially important in this area because of the unpredictable hazardous conditions of the Columbia River Bar, which at times prevents vessels from safely navigating downriver. This rule would increase the size of the current Cottonwood Island Anchorage and create a new anchorage on the Columbia River.</P>
        <HD SOURCE="HD1">Discussion of Comments and Changes</HD>
        <P>In June of 2011 the Coast Guard published a Notice of Proposed Rule Making (NPRM) that proposed the expansion of the Cottonwood Island Anchorage to river mile 72-26. This NPRM received a total of eleven comments. Nine comments were made in support of the new change to the Cottonwood Island Anchorage area. Two comments, made by a consortium of local land owners, expressed concerns that vessels anchoring in the parts of the proposed anchorage near residential areas ashore could negatively impact air quality, noise levels, and property values. The distance between the shore-side boundary of the anchorage and the shore in this residential area is less than 70 feet.</P>
        <P>To address the stated issues the Coast Guard proposes a smaller extension of the Cottonwood Island Anchorage than that originally proposed and the creation of a new anchorage area upriver from the center of the City of Prescott, OR. The resulting anchorage grounds would not include the waters off of the residential areas that prompted the two comments by land owners.</P>
        <P>This revised proposed rule would extend the east side of the existing Cottonwood Island Anchorage to river mile 71-08. The newly created Prescott Anchorage would be located between the Oregon side of the Columbia River channel and the Oregon shore. It would extend approximately from river mile 72-05 to river mile 72-26.</P>
        <HD SOURCE="HD1">Regulatory Analyses</HD>
        <P>We developed this proposed rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on 13 of these statutes or executive orders.</P>
        <HD SOURCE="HD2">Regulatory Planning and Review</HD>
        <P>This proposed rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. The proposed rule is not significant because the modification of the existing anchorage and establishment of a new anchorage area should not have any significant costs or impacts on maritime activities associated with it.</P>
        <HD SOURCE="HD2">Small Entities</HD>
        <P>Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this proposed rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000.</P>

        <P>The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small<PRTPAGE P="30442"/>entities because the modification of an existing anchorage and the creation of a new anchorage does not have any significant costs or impacts on maritime activities associated with it.</P>

        <P>If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment (see<E T="02">ADDRESSES</E>) explaining why you think it qualifies and how and to what degree this rule would economically affect it.</P>
        <HD SOURCE="HD2">Assistance for Small Entities</HD>
        <P>Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this proposed rule so that they can better evaluate its effects on them and participate in the rulemaking. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the Waterways Management Branch, Coast Guard Marine Safety Unit Portland, Oregon, telephone 503-240-9319. The Coast Guard will not retaliate against small entities that question or complain about this proposed rule or any policy or action of the Coast Guard.</P>
        <HD SOURCE="HD2">Collection of Information</HD>
        <P>This proposed rule would call for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).</P>
        <HD SOURCE="HD2">Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this proposed rule under that Order and have determined that it does not have implications for federalism.</P>
        <HD SOURCE="HD2">Unfunded Mandates Reform Act</HD>
        <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this proposed rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
        <HD SOURCE="HD2">Taking of Private Property</HD>
        <P>This proposed rule would not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.</P>
        <HD SOURCE="HD2">Civil Justice Reform</HD>
        <P>This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.</P>
        <HD SOURCE="HD2">Protection of Children</HD>
        <P>We have analyzed this proposed rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children.</P>
        <HD SOURCE="HD2">Indian Tribal Governments</HD>
        <P>This proposed rule does not have Tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes.</P>
        <HD SOURCE="HD2">Energy Effects</HD>
        <P>We have analyzed this proposed rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211.</P>
        <HD SOURCE="HD2">Technical Standards</HD>
        <P>The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies.</P>
        <P>This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards.</P>
        <HD SOURCE="HD2">Environment</HD>

        <P>We have analyzed this proposed rule under Department of Homeland Security Management Directive 0023.1 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions which do not individually or cumulatively have a significant effect on the human environment. A preliminary environmental analysis checklist supporting this determination is available in the docket where indicated under<E T="02">ADDRESSES</E>. This proposed rule involves increasing the size of an anchorage and creating a new anchorage area, which is categorically excluded, under Figure 2-1, paragraph 34(f) of the Instruction. We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 33 CFR Part 110</HD>
          <P>Anchorage grounds.</P>
        </LSTSUB>
        
        <P>For the reasons discussed in the preamble, the Coast Guard proposes to amend 33 CFR part 110 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 110—ANCHORAGE REGULATIONS</HD>
          <P>1. The authority citation for part 110 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 471, 1221 through 1236, 2030, 2035, 2071; 33 CFR 1.05-1(g); Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
          
          <P>2. Revise § 110.228(a)(10) and (11) to read as follows:</P>
          <SECTION>
            <SECTNO>§ 110.228</SECTNO>
            <SUBJECT>Columbia River, Oregon and Washington.</SUBJECT>
            <P>(a) * * *</P>
            <P>(10)<E T="03">Cottonwood Island Anchorage.</E>The waters of the Columbia River bounded by a line connecting the following points:</P>
            <GPOTABLE CDEF="xl50,xl50" COLS="2" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1"/>
                <CHED H="1"/>
              </BOXHD>
              <ROW>
                <ENT I="01">46°05′56.88″ N</ENT>
                <ENT>122°56′53.19″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°05′14.06″ N</ENT>
                <ENT>122°54′45.71″ W</ENT>
              </ROW>
              <ROW>
                <PRTPAGE P="30443"/>
                <ENT I="01">46°04′57.12″ N</ENT>
                <ENT>122°54′12.41″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°04′37.55″ N</ENT>
                <ENT>122°53′45.80″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°04′13.72″ N</ENT>
                <ENT>122°53′23.66″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°03′54.94″ N</ENT>
                <ENT>122°53′11.81″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°03′34.96″ N</ENT>
                <ENT>122°53′03.17″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°03′11.61″ N</ENT>
                <ENT>122°52′56.29″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°03′10.94″ N</ENT>
                <ENT>122°53′10.55″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°03′32.06″ N</ENT>
                <ENT>122°53′19.69″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°03′50.84″ N</ENT>
                <ENT>122°53′27.81″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°04′08.10″ N</ENT>
                <ENT>122°53′38.70″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°04′29.41″ N</ENT>
                <ENT>122°53′58.17″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°04′49.89″ N</ENT>
                <ENT>122°54′21.57″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°05′06.95″ N</ENT>
                <ENT>122°54′50.65″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°05′49.77″ N</ENT>
                <ENT>122°56′58.12″ W</ENT>
              </ROW>
            </GPOTABLE>
            <P>(11)<E T="03">Prescott Anchorage.</E>The waters of the Columbia River bounded by a line connecting the following points:</P>
            <GPOTABLE CDEF="xl50,xl50" COLS="2" OPTS="L0,tp0,p0,8/9,g1,t1,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1"/>
                <CHED H="1"/>
              </BOXHD>
              <ROW>
                <ENT I="01">46°02′47.01″ N</ENT>
                <ENT>122°52′53.90″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°02′26.32″ N</ENT>
                <ENT>122°52′51.89″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°02′25.92″ N</ENT>
                <ENT>122°53′00.38″ W</ENT>
              </ROW>
              <ROW>
                <ENT I="01">46°02′46.54″ N</ENT>
                <ENT>122°53′03.87″ W</ENT>
              </ROW>
            </GPOTABLE>
            <STARS/>
          </SECTION>
          <SIG>
            <DATED>Dated: May 18, 2012.</DATED>
            <NAME>A.T. Ewalt,</NAME>
            <TITLE>Captain, U.S. Coast Guard, Acting Commander, Thirteenth Coast Guard District.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12456 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0353]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone; Alexandria Bay Chamber of Commerce, St. Lawrence River, Alexandria Bay, NY</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Coast Guard proposes to establish a temporary safety zone on the St. Lawrence River, Alexandria Bay, NY. This proposed rule is intended to restrict vessels from a portion of the St. Lawrence River during the Alexandria Bay Chamber of Commerce fireworks display. The safety zone established by this proposed rule is necessary to protect spectators and vessels from the hazards associated with a fireworks display.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments and related material must be received by the Coast Guard on or before June 7, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments identified by docket number USCG-2012-0353 using any one of the following methods:</P>
          <P>(1)<E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
          </P>
          <P>(2)<E T="03">Fax:</E>202-493-2251.</P>
          <P>(3)<E T="03">Mail:</E>Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.</P>
          <P>(4)<E T="03">Hand delivery:</E>Same as mail address above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The telephone number is 202-366-9329.</P>

          <P>To avoid duplication, please use only one of these four methods. See the “Public Participation and Request for Comments” portion of the<E T="02">SUPPLEMENTARY INFORMATION</E>section below for instructions on submitting comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this proposed rule, call or email LT Christopher Mercurio, Chief of Waterway Management, U.S. Coast Guard Sector Buffalo; telephone 716-843-9343, email<E T="03">SectorBuffaloMarineSafety@uscg.mil.</E>If you have questions on viewing or submitting material to the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Public Participation and Request for Comments</HD>

        <P>We encourage you to participate in this rulemaking by submitting comments and related materials. All comments received will be posted without change to<E T="03">http://www.regulations.gov</E>and will include any personal information you have provided.</P>
        <HD SOURCE="HD2">Submitting Comments</HD>

        <P>If you submit a comment, please include the docket number for this rulemaking (USCG-2012-0353), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online (via<E T="03">http://www.regulations.gov</E>) or by fax, mail, or hand delivery, but please use only one of these means. If you submit a comment online via www.regulations.gov, it will be considered received by the Coast Guard when you successfully transmit the comment. If you fax, hand deliver, or mail your comment, it will be considered as having been received by the Coast Guard when it is received at the Docket Management Facility. We recommend that you include your name and a mailing address, an email address, or a telephone number in the body of your document so that we can contact you if we have questions regarding your submission.</P>
        <P>To submit your comment online, go to<E T="03">http://www.regulations.gov,</E>type the docket number USCG-2012-0353 in the “SEARCH” box and click “SEARCH.” Click on “Submit a Comment” on the line associated with this rulemaking.</P>
        <P>If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8<FR>1/2</FR>by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the Facility, please enclose a stamped, self-addressed postcard or envelope. We will consider all comments and material received during the comment period and may change the proposed rule based on your comments.</P>
        <HD SOURCE="HD2">Viewing Comments and Documents</HD>

        <P>To view comments, as well as documents mentioned in this preamble as being available in the docket, go to<E T="03">http://www.regulations.gov,</E>type the docket number USCG-2012-0353 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rulemaking. You may also visit the Docket Management Facility in Room W12-140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. We have an agreement with the Department of Transportation to use the Docket Management Facility.</P>
        <HD SOURCE="HD2">Privacy Act</HD>

        <P>Anyone can search the electronic form of comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review a Privacy Act notice regarding our public dockets in the January 17, 2008, issue of the<E T="04">Federal Register</E>(73 FR 3316).</P>
        <HD SOURCE="HD2">Public Meeting</HD>

        <P>We do not now plan to hold a public meeting. But you may submit a request for one using one of the four methods specified under<E T="02">ADDRESSES</E>. Please explain why you believe a public meeting would be beneficial. If we determine that one would aid this rulemaking, we will hold one at a time and place announced by a later notice in the<E T="04">Federal Register</E>.<PRTPAGE P="30444"/>
        </P>
        <HD SOURCE="HD1">Background and Purpose</HD>
        <P>Between 9:15 p.m. and 9:35 p.m. on July 4, 2012 a fireworks display will take place on the St. Lawrence River near Alexandria Bay, NY. The Captain of the Port Buffalo has determined that fireworks launched proximate to watercraft pose a significant risk to public safety and property. Such hazards include premature detonations, dangerous detonations, dangerous projectiles, and falling or burning debris.</P>
        <HD SOURCE="HD1">Discussion of Proposed Rule</HD>
        <P>The proposed safety zone would be effective and enforced from 8:45 p.m. until 10:05 p.m. on July 4, 2012. It would encompass all waters of St. Lawrence River, Alexandria Bay, NY starting within a 1120FT radius of position 44°20′38.48″ N, and 075°55′19.07″ W. (NAD 83)</P>
        <P>Entry into, transiting, or anchoring within the proposed safety zone would be prohibited unless authorized by the Captain of the Port Buffalo or his on-scene representative. The Captain of the Port or his on-scene representative may be contacted via VHF Channel 16.</P>
        <P>This proposed temporary safety zone is necessary to ensure the safety of spectators and vessels during the Alexandria Bay Chamber of Commerce fireworks display.</P>
        <HD SOURCE="HD1">Regulatory Analyses</HD>
        <P>We developed this proposed rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on 13 of these statutes or executive orders.</P>
        <HD SOURCE="HD2">Regulatory Planning and Review</HD>
        <P>This proposed rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We conclude that this proposed rule is not a significant regulatory action because we anticipate that it will have minimal impact on the economy, will not interfere with other agencies, will not adversely alter the budget of any grant or loan recipients, and will not raise any novel legal or policy issues. The safety zone created by this proposed rule will be relatively small and enforced for relatively short time. Also, the proposed safety zone is designed to minimize its impact on navigable waters. Furthermore, the proposed safety zone has been designed to allow vessels to transit around it. Thus, restrictions on vessel movement within that particular area are expected to be minimal. Under certain conditions, moreover, vessels may still transit through the proposed safety zone when permitted by the Captain of the Port.</P>
        <HD SOURCE="HD2">Small Entities</HD>
        <P>Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this proposed rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000.</P>
        <P>The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities.</P>
        <P>This proposed temporary final rule may affect the following entities, some of which might be small entities: the owners of operators of vessels intending to transit or anchor in a portion of the St. Lawrence River near Alexandria Bay, New York between 8:45 p.m. to 10:05 p.m. on July 4, 2012.</P>

        <P>This proposed safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: This proposed rule will be in effect for only 80 minutes and the proposed safety zone will allow vessels to move freely around the proposed safety zone on the St. Lawrence River. If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this proposed rule would have a significant economic impact on it, please submit a comment (see<E T="02">ADDRESSES</E>) explaining why you think it qualifies and how and to what degree this proposed rule would economically affect it.</P>
        <HD SOURCE="HD2">Assistance for Small Entities</HD>

        <P>Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this proposed rule so that they can better evaluate its effects on them and participate in the rulemaking. If this proposed rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact LT Christopher Mercurio, Chief of Waterway Management, U.S. Coast Guard Sector Buffalo; telephone 716-843-9343, email<E T="03">SectorBuffaloMarineSafety@uscg.mil.</E>The Coast Guard will not retaliate against small entities that question or complain about this proposed rule or any policy or action of the Coast Guard.</P>
        <HD SOURCE="HD2">Collection of Information</HD>
        <P>This proposed rule would call for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).</P>
        <HD SOURCE="HD2">Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this proposed rule under that Order and have determined that it does not have implications for federalism</P>
        <HD SOURCE="HD2">Unfunded Mandates Reform Act</HD>
        <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such expenditure, we do discuss the effects of this proposed rule elsewhere in this preamble.</P>
        <HD SOURCE="HD2">Taking of Private Property</HD>
        <P>This proposed rule would not cause a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.</P>
        <HD SOURCE="HD2">Civil Justice Reform</HD>
        <P>This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.</P>
        <HD SOURCE="HD2">Protection of Children</HD>

        <P>We have analyzed this proposed rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This proposed rule is not an economically significant rule and would not create an environmental risk to<PRTPAGE P="30445"/>health or risk to safety that might disproportionately affect children.</P>
        <HD SOURCE="HD2">Indian Tribal Governments</HD>
        <P>This proposed rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
        <HD SOURCE="HD2">Energy Effects</HD>
        <P>We have analyzed this proposed rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211.</P>
        <HD SOURCE="HD2">Technical Standards</HD>
        <P>The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies.</P>
        <P>This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards.</P>
        <HD SOURCE="HD2">Environment</HD>
        <P>We have analyzed this proposed rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This proposed rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, because it involves the establishment of a safety zone.</P>

        <P>A preliminary environmental analysis checklist and a preliminary categorical exclusion determination are available in the docket where indicated under<E T="02">ADDRESSES</E>.</P>
        <P>We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
          <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
        </LSTSUB>
        
        <P>For the reasons discussed in the preamble, the Coast Guard proposes to amend 33 CFR part 165 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
          <P>1. The authority citation for part 165 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 1231; 46 U.S.C. Chapters 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
          
          <P>2. Add § 165.T09-0353 to read as follows:</P>
          <SECTION>
            <SECTNO>§ 165.T09-0353</SECTNO>
            <SUBJECT>Safety Zone; Alexandria Bay Chamber of Commerce, St. Lawrence River, Alexandria Bay, NY.</SUBJECT>
            <P>(a)<E T="03">Location.</E>The safety zone will encompass all waters of the St. Lawrence River, Alexandria Bay, NY starting within a 1120FT radius of position 44°20′38.48″ N, and 075°55′19.07″ W. (NAD 83)</P>
            <P>(b)<E T="03">Enforcement Period.</E>This regulation will be enforced on July 4, 2012 from 8:45 p.m. until 10:05 p.m.</P>
            <P>(c)<E T="03">Regulations.</E>
            </P>
            <P>(1) In accordance with the general regulations in section 165.23 of this part, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the Captain of the Port Buffalo or his designated on-scene representative.</P>
            <P>(2) This safety zone is closed to all vessel traffic, except as may be permitted by the Captain of the Port Buffalo or his designated on-scene representative.</P>
            <P>(3) The “on-scene representative” of the Captain of the Port Buffalo is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Buffalo to act on his behalf. The on-scene representative of the Captain of the Port Buffalo is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Buffalo to act on his behalf.</P>
            <P>(4) Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port Buffalo or his on-scene representative to obtain permission to do so. The Captain of the Port Buffalo or his on-scene representative may be contacted via VHF Channel 16. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the Captain of the Port Buffalo, or his on-scene representative.</P>
          </SECTION>
          <SIG>
            <DATED>Dated: May 3, 2012.</DATED>
            <NAME>S.M. Wischmann,</NAME>
            <TITLE>Captain, U.S. Coast Guard, Captain of the Port Buffalo.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12455 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket Number USCG-2012-0368]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone, Atlantic Intracoastal Waterway; Wrightsville Beach, NC</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of Proposed Rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Coast Guard proposes to establish a temporary safety zone on the waters of the Atlantic Intracoastal Waterway at Wrightsville Beach, North Carolina. The safety zone will temporarily restrict vessel movement commencing Sept 1, 2012. The safety zone is necessary to provide for the safety of mariners on navigable waters during maintenance on the U.S. 74/76 Bascule Bridge crossing the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, North Carolina.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments and related material must be received by the Coast Guard on or before June 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments identified by docket number using any one of the following methods:</P>
          <P>(1)<E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
          </P>
          <P>(2)<E T="03">Fax:</E>202-493-2251.</P>
          <P>(3)<E T="03">Mail or Delivery:</E>Docket Management Facility (M-30), U.S. Department of Transportation, West<PRTPAGE P="30446"/>Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. Deliveries accepted between 9 a.m. and 5 p.m., Monday through Friday, except federal holidays. The telephone number is 202-366-9329.</P>

          <P>See the “Public Participation and Request for Comments” portion of the<E T="02">SUPPLEMENTARY INFORMATION</E>section below for further instructions on submitting comments. To avoid duplication, please use only one of these three methods.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email CWO3 Joseph M. Edge, U.S. Coast Guard Sector North Carolina; telephone 252-247-4525, email<E T="03">Joseph.M.Edge@uscg.mil.</E>If you have questions on viewing or submitting material to the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone (202) 366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">FRFederal Register</FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Public Participation and Request for Comments</HD>

        <P>We encourage you to participate in this rulemaking by submitting comments and related materials. All comments received will be posted without change to<E T="03">http://www.regulations.gov</E>and will include any personal information you have provided.</P>
        <HD SOURCE="HD2">1. Submitting Comments</HD>

        <P>If you submit a comment, please include the docket number for this rulemaking, indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online at<E T="03">http://www.regulations.gov,</E>or by fax, mail, or hand delivery, but please use only one of these means. If you submit a comment online, it will be considered received by the Coast Guard when you successfully transmit the comment. If you fax, hand deliver, or mail your comment, it will be considered as having been received by the Coast Guard when it is received at the Docket Management Facility. We recommend that you include your name and a mailing address, an email address, or a telephone number in the body of your document so that we can contact you if we have questions regarding your submission.</P>
        <P>To submit your comment online, go to<E T="03">http://www.regulations.gov,</E>type the docket number (USCG-2012-0368) in the “SEARCH” box and click “SEARCH.” Click on “Submit a Comment” on the line associated with this rulemaking.</P>
        <P>If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8<FR>1/2</FR>by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the Facility, please enclose a stamped, self-addressed postcard or envelope. We will consider all comments and material received during the comment period and may change the rule based on your comments.</P>
        <HD SOURCE="HD2">2. Viewing Comments and Documents</HD>

        <P>To view comments, as well as documents mentioned in this preamble as being available in the docket, go to<E T="03">http://www.regulations.gov,</E>type the docket number (USCG-2012-0368) in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rulemaking. You may also visit the Docket Management Facility in Room W12-140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>
        <HD SOURCE="HD2">3. Privacy Act</HD>

        <P>Anyone can search the electronic form of comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review a Privacy Act notice regarding our public dockets in the January 17, 2008, issue of the<E T="04">Federal Register</E>(73 FR 3316).</P>
        <HD SOURCE="HD2">4. Public Meeting</HD>

        <P>We do not now plan to hold a public meeting. But you may submit a request for one, using one of the methods specified under<E T="02">ADDRESSES</E>. Please explain why you believe a public meeting would be beneficial. If we determine that one would aid this rulemaking, we will hold one at a time and place announced by a later notice in the<E T="04">Federal Register</E>.</P>
        <HD SOURCE="HD1">B. Basis and Purpose</HD>
        <P>North Carolina Department of Transportation has awarded a contract to American Bridge Company of Coraopolis, PA to perform bridge maintenance on the U.S. 74/76 Bascule Bridge crossing the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, North Carolina. The contract provides for cleaning, painting, steel repair, and grid floor replacement to commence on September 1, 2012 with a completion date of May 1, 2013. The contractor will utilize a 40 foot deck barge with a 40 foot beam as a work platform and for equipment staging. This safety zone is needed to provide a safety buffer to transiting vessels as bridge repairs present potential hazards to mariners and property due to reduction horizontal clearance.</P>
        <HD SOURCE="HD1">C. Discussion of Proposed Rule</HD>
        <P>The Coast Guard is proposing a temporary safety zone that would encompass the waters directly under the U.S. 74/76 Bascule Bridge crossing the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, North Carolina (34°13′07″ N, 077°48′46″ W). All vessels transiting the this section of the waterway requiring a horizontal clearance of greater than 50 feet will be required to make a one hour advanced notification to the U.S. 74/76 Bascule Bridge tender while the safety zone is in effect. This zone will be in effect from 8 a.m. September 1, 2012 through 8 p.m. May 1, 2013.</P>
        <HD SOURCE="HD1">D. Regulatory Analyses</HD>
        <P>We developed this proposed rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes or executive orders.</P>
        <HD SOURCE="HD2">1. Regulatory Planning and Review</HD>
        <P>This proposed rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, as supplemented by Executive Order 13563, Improving Regulation and Regulatory Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of Executive Order 12866 or under section 1 of Executive Order 13563. The Office of Management and Budget has not reviewed it under those Orders. This rule would not restrict traffic from transiting a portion of the Atlantic Intracoastal Waterway, it imposes a one hour notification to ensure the waterway is clear of impediment to allow passage to vessels requiring a horizontal clearance of greater than 50 feet.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>

        <P>Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered the impact of this proposed rule on small entities. The Coast Guard certifies<PRTPAGE P="30447"/>under 5 U.S.C. 605(b) that this proposed rule will not have a significant economic impact on a substantial number of small entities. This proposed rule would affect the following entities, some of which may be small entities: the owners or operators of commercial tug and barge companies, recreational and commercial fishing vessels intending to transit the specified portion of Atlantic Intracoastal Waterway from 8 a.m. September 1, 2012 through 8 p.m. May 1, 2013.</P>

        <P>This safety zone would not have a significant economic impact on a substantial number of small entities for the following reasons. Although the safety zone will apply to this section of the Atlantic Intracoastal Waterway, vessel traffic will be able to request passage by providing a one hour advanced notification. Before the effective period, the Coast Guard will issue maritime advisories widely available to the users of the waterway. If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment (see<E T="02">ADDRESSES</E>) explaining why you think it qualifies and how and to what degree this rule would economically affect it.</P>
        <HD SOURCE="HD2">3. Assistance for Small Entities</HD>

        <P>Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this proposed rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>, above. The Coast Guard will not retaliate against small entities that question or complain about this proposed rule or any policy or action of the Coast Guard.</P>
        <HD SOURCE="HD2">4. Collection of Information</HD>
        <P>This proposed rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).</P>
        <HD SOURCE="HD2">5. Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has 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. We have analyzed this proposed rule under that Order and determined that this rule does not have implications for federalism.</P>
        <HD SOURCE="HD2">6. Protest Activities</HD>
        <P>The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the “For Further Information Contact” section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.</P>
        <HD SOURCE="HD2">7. Unfunded Mandates Reform Act</HD>
        <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
        <HD SOURCE="HD2">8. Taking of Private Property</HD>
        <P>This proposed rule would not cause a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.</P>
        <HD SOURCE="HD2">9. Civil Justice Reform</HD>
        <P>This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.</P>
        <HD SOURCE="HD2">10. Protection of Children From Environmental Health Risks</HD>
        <P>We have analyzed this proposed rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children.</P>
        <HD SOURCE="HD2">11. Indian Tribal Governments</HD>
        <P>This proposed rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
        <HD SOURCE="HD2">12. Energy Effects</HD>
        <P>This proposed rule is not a “significant energy action” under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211.</P>
        <HD SOURCE="HD2">13. Technical Standards</HD>
        <P>This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards.</P>
        <HD SOURCE="HD2">14. Environment</HD>

        <P>We have analyzed this proposed rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This proposed rule involves the establishment of a temporary safety zone. This rule is categorically excluded from further review under paragraph 34(g) of Figure 2-1 of the Commandant Instruction. A preliminary environmental analysis checklist supporting this determination and a Categorical Exclusion Determination are available in the docket where indicated under<E T="02">ADDRESSES</E>. We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule.</P>
        <HD SOURCE="HD1">List of Subjects in 33 CFR Part 165</HD>
        <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
        <P>For the reasons discussed in the preamble, the Coast Guard proposes to amend 33 CFR part 165 as follows:</P>
        <PART>
          <PRTPAGE P="30448"/>
          <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
          <P>1. The authority citation for part 165 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 1231; 46 U.S.C. Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
          
          <P>2. Add § 165.T05-0368 to read as follows:</P>
          <SECTION>
            <SECTNO>§ 165.T05-0368</SECTNO>
            <SUBJECT>Safety Zone; Atlantic Intracoastal Waterway, Wrightsville Beach, NC.</SUBJECT>
            <P>(a) Regulated Area. The following area is a safety zone: This zone includes the waters directly under and 100 yards either side of the U.S. 74/76 Bascule Bridge crossing the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, North Carolina (34°13′07″ N 077°48′46″ W).</P>
            <P>(b) Regulations. The general safety zone regulations found in 33 CFR 165.23 apply to the safety zone created by this temporary section, § 165.T05-0368. In addition the following regulations apply:</P>
            <P>(1) All vessels and persons are prohibited from entering this zone, except as authorized by the Coast Guard Captain of the Port North Carolina.</P>
            <P>(2) All vessels requiring greater than 50 feet horizontal clearance to safely transit through the U.S. 74/76 Bascule Bridge crossing the Atlantic Intracoastal Waterway, mile 283.1, at Wrightsville Beach, North Carolina must contact the bridge tender on VHF-FM marine band radio channels 13 and 16 one hour in advance of intended transit.</P>
            <P>(3) Persons or vessels requiring entry into or passage within the zone must request authorization from the Captain of the Port North Carolina or his designated representative by telephone at (910) 343-3882 or on VHF-FM marine band radio channel 16.</P>
            <P>(4) All Coast Guard assets enforcing this safety zone can be contacted on VHF-FM marine band radio channels 13 and 16.</P>
            <P>(5) The operator of any vessel within or in the immediate vicinity of this safety zone shall: (i) Stop the vessel immediately upon being directed to do so by any commissioned, warrant or petty officer on board a vessel displaying a Coast Guard Ensign, and</P>
            <P>(ii) Proceed as directed by any commissioned, warrant or petty officer on board a vessel displaying a Coast Guard Ensign.</P>
            <P>(c) Definitions. (1) Captain of the Port North Carolina means the Commander, Coast Guard Sector North Carolina or any Coast Guard commissioned, warrant or petty officer who has been authorized by the Captain of the Port to act on his behalf.</P>
            <P>(2) Designated representative means any Coast Guard commissioned, warrant, or petty officer who has been authorized by the Captain of the Port North Carolina to assist in enforcing the safety zone described in paragraph (a) of this section.</P>
            <P>(d) Enforcement. The U.S. Coast Guard may be assisted by Federal, State and local agencies in the patrol and enforcement of the zone.</P>
            <P>(e) Enforcement period. This section will be enforced from 8 a.m. September 1, 2012 through 8 p.m. May 1, 2013 unless cancelled earlier by the Captain of the Port.</P>
          </SECTION>
          <SIG>
            <DATED>Dated: May 10, 2012.</DATED>
            <NAME>A. Popiel,</NAME>
            <TITLE>Captain, U.S. Coast Guard Captain of the Port Sector North Carolina.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12459 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0354]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone; A Salute to Our Heroes Fireworks, Hamlin Beach State Park, Hamlin, NY</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Coast Guard proposes to establish a temporary safety zone on Hamlin Beach State Park, Hamlin, NY. This proposed rule is intended to restrict vessels from a portion of water off Hamlin Beach State Park during the A Salute to Our Heroes on July 07, 2012. The safety zone established by this proposed rule is necessary to protect spectators, participants, and vessels from the hazards associated with firework display.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments and related material must be received by the Coast Guard on or before June 7, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments identified by docket number USCG-2012-0354 using any one of the following methods:</P>
          <P>(1)<E T="03">Federal eRulemaking Portal: http://www.regulations.gov</E>.</P>
          <P>(2)<E T="03">Fax:</E>202-493-2251.</P>
          <P>(3)<E T="03">Mail:</E>Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.</P>
          <P>(4)<E T="03">Hand delivery:</E>Same as mail address above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The telephone number is 202-366-9329.</P>

          <P>To avoid duplication, please use only one of these four methods. See the “Public Participation and Request for Comments” portion of the<E T="02">SUPPLEMENTARY INFORMATION</E>section below for instructions on submitting comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this proposed rule, call or email LT Christopher Mercurio, Chief of Waterway Management, U.S. Coast Guard Sector Buffalo; telephone 716-843-9343, email<E T="03">SectorBuffaloMarineSafety@uscg.mil</E>. If you have questions on viewing or submitting material to the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Public Participation and Request for Comments</HD>

        <P>We encourage you to participate in this rulemaking by submitting comments and related materials. All comments received will be posted without change to<E T="03">http://www.regulations.gov</E>and will include any personal information you have provided.</P>
        <HD SOURCE="HD1">Submitting Comments</HD>

        <P>If you submit a comment, please include the docket number for this rulemaking (USCG-2012-0354), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online (via<E T="03">http://www.regulations.gov</E>) or by fax, mail, or hand delivery, but please use only one of these means. If you submit a comment online via<E T="03">www.regulations.gov</E>, it will be considered received by the Coast Guard when you successfully transmit the comment. If you fax, hand deliver, or mail your comment, it will be considered as having been received by the Coast Guard when it is received at the Docket Management Facility. We recommend that you include your name and a mailing address, an email address, or a telephone number in the body of your document so that we can contact you if we have questions regarding your submission.<PRTPAGE P="30449"/>
        </P>
        <P>To submit your comment online, go to<E T="03">http://www.regulations.gov</E>, type the docket number “USCG-2012-0354” into the “search” box and click “search.” Click on “Submit a Comment” on the line associated with this rulemaking. If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8<FR>1/2</FR>by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the Facility, please enclose a stamped, self-addressed postcard or envelope. We will consider all comments and material received during the comment period and may change the proposed rule based on your comments.</P>
        <HD SOURCE="HD1">Viewing Comments and Documents</HD>

        <P>To view comments, as well as documents mentioned in this preamble as being available in the docket, go to<E T="03">http://www.regulations.gov</E>, type the docket number USCG-2012-0354 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rulemaking. You may also visit the Docket Management Facility in Room W12-140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. We have an agreement with the Department of Transportation to use the Docket Management Facility.</P>
        <HD SOURCE="HD1">Privacy Act</HD>

        <P>Anyone can search the electronic form of comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review a Privacy Act notice regarding our public dockets in the January 17, 2008, issue of the<E T="04">Federal Register</E>(73 FR 3316).</P>
        <HD SOURCE="HD1">Public Meeting</HD>

        <P>We do not now plan to hold a public meeting. But you may submit a request for one using one of the four methods specified under<E T="02">ADDRESSES</E>. Please explain why you believe a public meeting would be beneficial. If we determine that one would aid this rulemaking, we will hold one at a time and place announced by a later notice in the<E T="04">Federal Register</E>.</P>
        <HD SOURCE="HD1">Background and Purpose</HD>
        <P>Between 10:15 p.m. and 11 p.m. on July 7, 2012 a fireworks display will be held on the waters of Hamlin Beach State Park near Hamlin, NY. The Captain of the Port Buffalo has determined that fireworks launched proximate to watercraft pose a significant risk to public safety and property. Such hazards include premature detonations, dangerous detonations, dangerous projectiles, and falling or burning debris.</P>
        <HD SOURCE="HD1">Discussion of Proposed Rule</HD>
        <P>The proposed safety zone would be effective and enforced from 9:45 p.m. until 11:30 p.m. on July 7, 2012.The proposed safety zone would encompass all waters of Hamlin Beach State Park, Hamlin, NY within a 700 FT radius of position 43°21′51.9″ N and 77°56′59.6″ W (NAD 83).</P>
        <P>Entry into, transiting, or anchoring within the proposed safety zone would be prohibited unless authorized by the Captain of the Port Buffalo or his on-scene representative. The Captain of the Port or his on-scene representative may be contacted via VHF Channel 16.</P>
        <P>This proposed temporary safety zone is necessary to ensure the safety of spectators and vessels during the “A Salute to Our Heroes” fireworks display.</P>
        <HD SOURCE="HD1">Regulatory Analyses</HD>
        <P>We developed this proposed rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on 13 of these statutes or executive orders.</P>
        <HD SOURCE="HD1">Regulatory Planning and Review</HD>
        <P>This proposed rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We conclude that this proposed rule is not a significant regulatory action because we anticipate that it will have minimal impact on the economy, will not interfere with other agencies, will not adversely alter the budget of any grant or loan recipients, and will not raise any novel legal or policy issues. The safety zone created by this proposed rule will be relatively small and enforced for a relatively short time. Also, the proposed safety zone is designed to minimize its impact on navigable waters. Furthermore, the proposed safety zone has been designed to allow vessels to transit around it. Thus, restrictions on vessel movement within that particular area are expected to be minimal. Under certain conditions, moreover, vessels may still transit through the proposed safety zone when permitted by the Captain of the Port.</P>
        <HD SOURCE="HD1">Small Entities</HD>
        <P>Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this proposed rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000.</P>
        <P>The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities.</P>
        <P>This proposed temporary final rule may affect the following entities, some of which might be small entities: the owners of operators of vessels intending to transit or anchor in a portion of Lake Erie near Hamlin, NY on July 07, 2011 from 9:45 p.m. until 11:30 p.m.</P>
        <P>This proposed safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: this proposed rule will only be enforced for 105 minutes in a low vessel traffic area. Vessel traffic can pass safely around the zone. Before the effective period, maritime advisories will be issued, which include a Broadcast Notice to Mariners.</P>

        <P>If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this proposed rule would have a significant economic impact on it, please submit a comment (see<E T="02">ADDRESSES</E>) explaining why you think it qualifies and how and to what degree this proposed rule would economically affect it.</P>
        <HD SOURCE="HD1">Assistance for Small Entities</HD>

        <P>Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this proposed rule so that they can better evaluate its effects on them and participate in the rulemaking. If this proposed rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact LT Christopher Mercurio, Chief of Waterway Management, U.S. Coast Guard Sector Buffalo; telephone 716-843-9343, email<PRTPAGE P="30450"/>
          <E T="03">SectorBuffaloMarineSafety@uscg.mil</E>. The Coast Guard will not retaliate against small entities that question or complain about this proposed rule or any policy or action of the Coast Guard.</P>
        <HD SOURCE="HD1">Collection of Information</HD>
        <P>This proposed rule would call for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
        <HD SOURCE="HD1">Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this proposed rule under that Order and have determined that it does not have implications for federalism.</P>
        <HD SOURCE="HD1">Unfunded Mandates Reform Act</HD>
        <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such expenditure, we do discuss the effects of this proposed rule elsewhere in this preamble.</P>
        <HD SOURCE="HD1">Taking of Private Property</HD>
        <P>This proposed rule would not cause a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.</P>
        <HD SOURCE="HD1">Civil Justice Reform</HD>
        <P>This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.</P>
        <HD SOURCE="HD1">Protection of Children</HD>
        <P>We have analyzed this proposed rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This proposed rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children.</P>
        <HD SOURCE="HD1">Indian Tribal Governments</HD>
        <P>This proposed rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
        <HD SOURCE="HD1">Energy Effects</HD>
        <P>We have analyzed this proposed rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211.</P>
        <HD SOURCE="HD1">Technical Standards</HD>
        <P>The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies.</P>
        <P>This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards.</P>
        <HD SOURCE="HD1">Environment</HD>
        <P>We have analyzed this proposed rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This proposed rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, because it involves the establishment of a safety zone.</P>

        <P>A preliminary environmental analysis checklist and a preliminary categorical exclusion determination are available in the docket where indicated under<E T="02">ADDRESSES</E>.</P>
        <P>We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
          <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
        </LSTSUB>
        
        <P>For the reasons discussed in the preamble, the Coast Guard proposes to amend 33 CFR part 165 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
          <P>1. The authority citation for part 165 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 1231; 46 U.S.C. Chapters 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
          
          <P>2. Add § 165.T09-0354 to read as follows:</P>
          <SECTION>
            <SECTNO>§ 165.T09-0354</SECTNO>
            <SUBJECT>Safety Zone; A Salute to Our Heroes Fireworks, Hamlin Beach State Park, Hamlin, NY.</SUBJECT>
            <P>(a)<E T="03">Location.</E>The safety zone will encompass all waters of the Hamlin Beach State Park, Hamlin, NY within a 700 FT radius of position 43°21′51.9″ N and 77°56′59.6″ W (NAD 83).</P>
            <P>(b)<E T="03">Enforcement Period.</E>This regulation will be enforced on July 7, 2012 from 9:45 p.m. until 11:30 p.m.</P>
            <P>(c)<E T="03">Regulations.</E>
            </P>
            <P>(1) In accordance with the general regulations in section 165.23 of this part, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the Captain of the Port Buffalo or his designated on-scene representative.</P>
            <P>(2) This safety zone is closed to all vessel traffic, except as may be permitted by the Captain of the Port Buffalo or his designated on-scene representative.</P>

            <P>(3) The “on-scene representative” of the Captain of the Port Buffalo is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Buffalo to act on his behalf. The on-scene representative of the Captain of the Port Buffalo is any Coast Guard<PRTPAGE P="30451"/>commissioned, warrant or petty officer who has been designated by the Captain of the Port Buffalo to act on his behalf.</P>
            <P>(4) Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port Buffalo or his on-scene representative to obtain permission to do so. The Captain of the Port Buffalo or his on-scene representative may be contacted via VHF Channel 16. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the Captain of the Port Buffalo, or his on-scene representative.</P>
          </SECTION>
          <SIG>
            <DATED>Dated: May 3, 2012.</DATED>
            <NAME>S.M. Wischmann,</NAME>
            <TITLE>Captain, U.S. Coast Guard,Captain of the Port Buffalo.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12464 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0351]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone; Olcott Fireworks, Lake Ontario, Olcott, NY</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Coast Guard, DHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of proposed rulemaking.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Coast Guard proposes to establish a temporary safety zone on Lake Ontario, Olcott, NY. This proposed rule is intended to restrict vessels from a portion of Lake Ontario during the Olcott fireworks display. The safety zone established by this proposed rule is necessary to protect spectators, participants, and vessels from the hazards associated with firework display.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments and related material must be received by the Coast Guard on or before June 7, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments identified by docket number USCG-2012-0351 using any one of the following methods:</P>
          <P>(1)<E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
          </P>
          <P>(2)<E T="03">Fax:</E>202-493-2251.</P>
          <P>(3)<E T="03">Mail:</E>Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.</P>
          <P>(4)<E T="03">Hand delivery:</E>Same as mail address above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The telephone number is 202-366-9329.</P>

          <P>To avoid duplication, please use only one of these four methods. See the “Public Participation and Request for Comments” portion of the<E T="02">SUPPLEMENTARY INFORMATION</E>section below for instructions on submitting comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this proposed rule, call or email LT Christopher Mercurio, Chief of Waterway Management, U.S. Coast Guard Sector Buffalo; telephone 716-843-9343, email<E T="03">SectorBuffaloMarineSafety@uscg.mil.</E>If you have questions on viewing or submitting material to the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Public Participation and Request for Comments</HD>

        <P>We encourage you to participate in this rulemaking by submitting comments and related materials. All comments received will be posted without change to<E T="03">http://www.regulations.gov</E>and will include any personal information you have provided.</P>
        <HD SOURCE="HD1">Submitting Comments</HD>

        <P>If you submit a comment, please include the docket number for this rulemaking (USCG-2012-0351), indicate the specific section of this document to which each comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online (via<E T="03">http://www.regulations.gov</E>) or by fax, mail, or hand delivery, but please use only one of these means. If you submit a comment online via<E T="03">www.regulations.gov,</E>it will be considered received by the Coast Guard when you successfully transmit the comment. If you fax, hand deliver, or mail your comment, it will be considered as having been received by the Coast Guard when it is received at the Docket Management Facility. We recommend that you include your name and a mailing address, an email address, or a telephone number in the body of your document so that we can contact you if we have questions regarding your submission.</P>
        <P>To submit your comment online, go to<E T="03">http://www.regulations.gov,</E>type the docket number USCG-2012-0351 in the “SEARCH” box and click “SEARCH.” Click on “Submit a Comment” on the line associated with this rulemaking. If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8<FR>1/2</FR>by 11 inches, suitable for copying and electronic filing. If you submit comments by mail and would like to know that they reached the Facility, please enclose a stamped, self-addressed postcard or envelope. We will consider all comments and material received during the comment period and may change the rule based on your comments.</P>
        <HD SOURCE="HD1">Viewing Comments and Documents</HD>

        <P>To view comments, as well as documents mentioned in this preamble as being available in the docket, go to<E T="03">http://www.regulations.gov,</E>type the docket number USCG-2012-0351 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rulemaking. You may also visit the Docket Management Facility in Room W12-140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. We have an agreement with the Department of Transportation to use the Docket Management Facility.</P>
        <HD SOURCE="HD1">Privacy Act</HD>

        <P>Anyone can search the electronic form of comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review a Privacy Act notice regarding our public dockets in the January 17, 2008, issue of the<E T="04">Federal Register</E>(73 FR 3316).</P>
        <HD SOURCE="HD1">Public Meeting</HD>

        <P>We do not now plan to hold a public meeting. But you may submit a request for one using one of the four methods specified under<E T="02">ADDRESSES</E>. Please explain why you believe a public meeting would be beneficial. If we determine that one would aid this rulemaking, we will hold one at a time and place announced by a later notice in the<E T="04">Federal Register</E>.</P>
        <HD SOURCE="HD1">Background and Purpose</HD>

        <P>Between 10 p.m. and 10:30 p.m. on July 3, 2012 a fireworks display will take place on Lake Ontario near Olcott, NY. The Captain of the Port Buffalo has determined that fireworks launched proximate to watercraft presents significant hazards to public spectators and participants. Such hazards include premature detonations, dangerous<PRTPAGE P="30452"/>detonations, dangerous projectiles, and falling or burning debris.</P>
        <HD SOURCE="HD1">Discussion of Proposed Rule</HD>
        <P>The proposed safety zone will be effective and enforced from 9:30 p.m. until 11 p.m. on July 3, 2012. The proposed safety zone will encompass all waters of Lake Ontario, Olcott, NY within a 1120 FT radius of position 43°20′23.57″ N and 78°43′09.50″ W (NAD 83).</P>
        <P>Entry into, transiting, or anchoring within the proposed safety zone is prohibited unless authorized by the Captain of the Port Buffalo or his on-scene representative. The Captain of the Port or his on-scene representative may be contacted via VHF Channel 16.</P>
        <P>This proposed temporary safety zone is necessary to ensure the safety of spectators and vessels during the Olcott Fireworks.</P>
        <HD SOURCE="HD1">Regulatory Analyses</HD>
        <P>We developed this proposed rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on 13 of these statutes or executive orders.</P>
        <HD SOURCE="HD2">Regulatory Planning and Review</HD>
        <P>This proposed rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We conclude that this proposed rule is not a significant regulatory action because we anticipate that it will have minimal impact on the economy, will not interfere with other agencies, will not adversely alter the budget of any grant or loan recipients, and will not raise any novel legal or policy issues. The safety zone created by this proposed rule will be relatively small and enforced for a relatively short time. Also, the safety zone is designed to minimize its impact on navigable waters. Furthermore, the safety zone has been designed to allow vessels to transit around it. Thus, restrictions on vessel movement within that particular area are expected to be minimal. Under certain conditions, moreover, vessels may still transit through the safety zone when permitted by the Captain of the Port.</P>
        <HD SOURCE="HD2">Small Entities</HD>
        <P>Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this proposed rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000.</P>
        <P>The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities.</P>
        <P>This proposed temporary final rule may affect the following entities, some of which might be small entities: the owners or operators of vessels intending to transit or anchor in a portion of Lake Ontario near Olcott, New York between 9:30 p.m. to 11 p.m. on July 3, 2012.</P>

        <P>This safety zone will not have a significant economic impact on a substantial number of small entities for the following reasons: this rule will be in effect for only 90 minutes and the safety zone will allow vessels to move freely around the safety zone on Lake Ontario. If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment (see<E T="02">ADDRESSES</E>) explaining why you think it qualifies and how and to what degree this rule would economically affect it.</P>
        <HD SOURCE="HD2">Assistance for Small Entities</HD>

        <P>Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this proposed rule so that they can better evaluate its effects on them and participate in the rulemaking. If this proposed rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact LT Christopher Mercurio, Chief of Waterway Management, U.S. Coast Guard Sector Buffalo; telephone 716-843-9343, email<E T="03">SectorBuffaloMarineSafety@uscg.mil.</E>The Coast Guard will not retaliate against small entities that question or complain about this proposed rule or any policy or action of the Coast Guard.</P>
        <HD SOURCE="HD2">Collection of Information</HD>
        <P>This proposed rule would call for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).</P>
        <HD SOURCE="HD2">Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this proposed rule under that Order and have determined that it does not have implications for federalism</P>
        <HD SOURCE="HD2">Unfunded Mandates Reform Act</HD>
        <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this proposed rule would not result in such an expenditure, we do discuss the effects of this proposed rule elsewhere in this preamble.</P>
        <HD SOURCE="HD2">Taking of Private Property</HD>
        <P>This proposed rule would not cause a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights.</P>
        <HD SOURCE="HD2">Civil Justice Reform</HD>
        <P>This proposed rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.</P>
        <HD SOURCE="HD2">Protection of Children</HD>
        <P>We have analyzed this proposed rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This proposed rule is not an economically significant rule and would not create an environmental risk to health or risk to safety that might disproportionately affect children.</P>
        <HD SOURCE="HD2">Indian Tribal Governments</HD>

        <P>This proposed rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it would not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of<PRTPAGE P="30453"/>power and responsibilities between the Federal Government and Indian tribes.</P>
        <HD SOURCE="HD2">Energy Effects</HD>
        <P>We have analyzed this proposed rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211.</P>
        <HD SOURCE="HD2">Technical Standards</HD>

        <P>The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (<E T="03">e.g.,</E>specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies.</P>
        <P>This proposed rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards.</P>
        <HD SOURCE="HD2">Environment</HD>
        <P>We have analyzed this proposed rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have made a preliminary determination that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This proposed rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, because it involves the establishment of a safety zone.</P>

        <P>A preliminary environmental analysis checklist and a preliminary categorical exclusion determination are available in the docket where indicated under<E T="02">ADDRESSES</E>.</P>
        <P>We seek any comments or information that may lead to the discovery of a significant environmental impact from this proposed rule.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
          <P>Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.</P>
        </LSTSUB>
        
        <P>For the reasons discussed in the preamble, the Coast Guard proposes to amend 33 CFR part 165 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS</HD>
          <P>1. The authority citation for part 165 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 1231; 46 U.S.C. Chapters 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
          
          <P>2. Add § 165.T09-0351 to read as follows:</P>
          <SECTION>
            <SECTNO>§ 165.T09-0351</SECTNO>
            <SUBJECT>Safety Zone; Olcott Fireworks, Lake Ontario, Olcott, NY.</SUBJECT>
            <P>(a)<E T="03">Location.</E>The safety zone will encompass all waters of Lake Ontario, Olcott, NY within a 1120 FT radius of position 43°20′23.57″ N and 78°43′09.50″ W (NAD 83).</P>
            <P>(b)<E T="03">Effective and Enforcement Period.</E>This regulation is effective and will be enforced on July 3, 2012 from 9:30 p.m. until 11 p.m.</P>
            <P>(c)<E T="03">Regulations.</E>
            </P>
            <P>(1) In accordance with the general regulations in section 165.23 of this part, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the Captain of the Port Buffalo or his designated on-scene representative.</P>
            <P>(2) This safety zone is closed to all vessel traffic, except as may be permitted by the Captain of the Port Buffalo or his designated on-scene representative.</P>
            <P>(3) The “on-scene representative” of the Captain of the Port Buffalo is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Buffalo to act on his behalf. The on-scene representative of the Captain of the Port Buffalo is any Coast Guard commissioned, warrant or petty officer who has been designated by the Captain of the Port Buffalo to act on his behalf.</P>
            <P>(4) Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port Buffalo or his on-scene representative to obtain permission to do so. The Captain of the Port Buffalo or his on-scene representative may be contacted via VHF Channel 16. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the Captain of the Port Buffalo, or his on-scene representative.</P>
          </SECTION>
          <SIG>
            <DATED>Dated: May 3, 2012.</DATED>
            <NAME>S.M. Wischmann,</NAME>
            <TITLE>Captain, U.S. Coast Guard Captain of the Port Buffalo.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12453 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R05-OAR-2011-0347; FRL-9677-2]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Air Quality Implementation Plans; Wisconsin; Milwaukee-Racine Nonattainment Area; Determination of Attainment for the 2006 24-Hour Fine Particle Standard</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule; extension of public comment period.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>EPA is extending the comment period for a proposed rule published April 24, 2012 (77 FR 24436). On April 24, 2012, EPA proposed to approve a determination of attainment for the Milwaukee-Racine, Wisconsin area for the 2006 24-hour fine particle National Ambient Air Quality Standard submitted by the State of Wisconsin on March 7, 2011. In response to a May 1, 2012, request from David C. Bender, EPA is extending the comment period for 30 days.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>The comment period for the proposed rule published April 24, 2012 (77 FR 24436) is being extended for 30 days to June 25, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Submit comments, identified by Docket ID No. EPA-R05-OAR-2011-0347, to: Douglas Aburano, Chief, Attainment Planning and Maintenance Section, Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604,<E T="03">aburano.douglas@epa.gov.</E>Additional instructions to comment can be found in the notice of proposed rulemaking published April 24, 2012 (77 FR 24436).</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Gilberto Alvarez, Environmental Scientist, Attainment Planning and Maintenance Section, Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, Region 5, 77 West<PRTPAGE P="30454"/>Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6143,<E T="03">alvarez.gilberto@epa.gov.</E>
          </P>
          <SIG>
            <DATED>Dated: May 11, 2012.</DATED>
            <NAME>Susan Hedman,</NAME>
            <TITLE>Regional Administrator, Region 5.</TITLE>
          </SIG>
        </FURINF>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-12509 Filed 5-22-12; 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-R10-OAR-2012-0344, FRL-9676-1]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Implementation Plans; State of Oregon; Regional Haze State Implementation Plan</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 portions of a State Implementation Plan (SIP) revision submitted by the State of Oregon on December 10, 2010 and supplemented on February 1, 2011, as meeting the requirements of Clean Air Act (CAA or the Act) section 169A and B and Federal Regulations in 40 CFR 51.308. In a previous action on July 5, 2011, EPA approved portions of the December 10, 2010, SIP submittal as meeting the requirements for interstate transport for visibility of CAA section 110(a)(2)(D)(II) and certain requirements of the regional haze program including the requirements for best available retrofit technology (BART). 76 FR 38997. The action in this<E T="04">Federal Register</E>notice addresses the remaining requirements of the CAA and EPA's rules that require states to prevent any future and remedy any existing anthropogenic impairment of visibility in mandatory Class I areas caused by emissions of air pollutants from numerous sources located over a wide geographic area (also referred to as the “regional haze program”). In this action, EPA proposes to approve the remaining regional haze SIP elements for which EPA previously took no action in the July 5, 2011 notice.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received at the address below on or before June 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID No. EPA-R10-OAR-2012-0344 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:</E>
            <E T="03">R10-Public_Comments@epa.gov.</E>
          </P>
          <P>•<E T="03">Mail:</E>Keith Rose, EPA Region 10, Suite 900, Office of Air, Waste and Toxics, 1200 Sixth Avenue, Seattle, WA 98101.</P>
          <P>•<E T="03">Hand Delivery:</E>EPA Region 10, 1200 Sixth Avenue, Suite 900, Seattle, WA 98101. Attention: Keith Rose, Office of Air, Waste and Toxics, AWT-107. Such deliveries are only accepted during 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-R10-OAR-2012-0344. 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 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 form. Publicly available docket materials are available either electronically at<E T="03">www.regulations.gov</E>or in hard copy at the Office of Air, Waste and Toxics, EPA Region 10, 1200 Sixth Avenue, Seattle, WA 98101. EPA requests that if at all possible, you contact the individual listed below to view a hard copy of the docket.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Keith Rose at telephone number (206) 553-1949,<E T="03">rose.keith@epa.gov</E>, or the above EPA, Region 10 address.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document whenever “we,” “us,” or “our” is used, we mean the EPA. Information is organized as follows:</P>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Background for EPA's Proposed Action</FP>
          <FP SOURCE="FP1-2">A. Definition of Regional Haze</FP>
          <FP SOURCE="FP1-2">B. Regional Haze Rules and Regulations</FP>
          <FP SOURCE="FP1-2">C. Roles of Agencies in Addressing Regional Haze</FP>
          <FP SOURCE="FP-2">II. Requirements for the Regional Haze SIPs</FP>
          <FP SOURCE="FP1-2">A. The CAA and the Regional Haze Rule</FP>
          <FP SOURCE="FP1-2">B. Determination of Baseline, Natural, and Current Visibility Conditions</FP>
          <FP SOURCE="FP1-2">C. Consultation With States and Federal Land Managers</FP>
          <FP SOURCE="FP1-2">D. Best Available Retrofit Technology</FP>
          <FP SOURCE="FP1-2">E. Determination of Reasonable Progress Goals</FP>
          <FP SOURCE="FP1-2">F. Long Term Strategy</FP>
          <FP SOURCE="FP1-2">G. Coordinating Regional Haze and Reasonably Attributable Visibility Impairment</FP>
          <FP SOURCE="FP1-2">H. Monitoring Strategy and Other Implementation Plan Requirements</FP>
          <FP SOURCE="FP-2">III. EPA's Analysis of the Oregon Regional Haze SIP</FP>
          <FP SOURCE="FP1-2">A. Affected Class I Areas</FP>
          <FP SOURCE="FP1-2">B. Baseline and Natural Conditions</FP>
          <FP SOURCE="FP1-2">C. Oregon Emissions Inventory</FP>
          <FP SOURCE="FP1-2">D. Sources of Visibility Impairment in Oregon Class I Areas</FP>
          <FP SOURCE="FP1-2">E. Best Available Retrofit Technology</FP>
          <FP SOURCE="FP1-2">F. Reasonable Progress Goals</FP>
          <FP SOURCE="FP1-2">1. Determination of Reasonable Progress Goals</FP>
          <FP SOURCE="FP1-2">2. Demonstration of Reasonable Progress</FP>
          <FP SOURCE="FP1-2">3. EPA's Determination Whether the SIP Meets 40 CFR 51.308(d)(1)</FP>
          <FP SOURCE="FP1-2">G. Long Term Strategy</FP>
          <FP SOURCE="FP1-2">1. Ongoing Air Pollution Control Programs</FP>
          <FP SOURCE="FP1-2">a. Prevention of Significant Deterioration/New Source Review Rules</FP>
          <FP SOURCE="FP1-2">b. Reasonably Attributable Visibility Impairment BART</FP>
          <FP SOURCE="FP1-2">c. Oregon's Phase I Visibility Protection Program</FP>
          <FP SOURCE="FP1-2">d. Implementation of State and Federal Mobile Source Regulations</FP>
          <FP SOURCE="FP1-2">e. On-Going Implementation of Programs to meet PM<E T="52">10</E>NAAQS</FP>
          <FP SOURCE="FP1-2">2. Measures to Mitigate the Impacts of Construction Activities</FP>
          <FP SOURCE="FP1-2">3. Emission Limitations and Schedules of Compliance</FP>
          <FP SOURCE="FP1-2">4. Source Retirement and Replacement Schedules</FP>
          <FP SOURCE="FP1-2">5. Smoke Management Techniques for Agricultural and Forestry Burning</FP>
          <FP SOURCE="FP1-2">6. Enforceability of Emission Limitations and Control Measures</FP>
          <FP SOURCE="FP1-2">H. Monitoring Strategy and Other Implementation Plan Requirements</FP>

          <FP SOURCE="FP1-2">I. Consultation With States and Federal Land Managers<PRTPAGE P="30455"/>
          </FP>
          <FP SOURCE="FP1-2">J. Periodic SIP Revisions and Five-Year Progress Reports</FP>
          <FP SOURCE="FP-2">IV. What action is EPA proposing?</FP>
          <FP SOURCE="FP-2">V. Oregon Notice Provision</FP>
          <FP SOURCE="FP-2">VI. Scope of Action</FP>
          <FP SOURCE="FP-2">VII. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background for EPA's Proposed Action</HD>
        <P>In the CAA Amendments of 1977, Congress established a program to protect and improve visibility in the national parks and wilderness areas. See CAA section 169A. Congress amended the visibility provisions in the CAA in 1990 to focus attention on the problem of regional haze. See CAA section 169B. EPA promulgated regulations in 1999 to implement sections 169A and 169B of the Act. These regulations require states to develop and implement plans to ensure reasonable progress toward improving visibility in mandatory Class I Federal areas<SU>1</SU>
          <FTREF/>(Class I areas). 64 FR 35714 (July 1, 1999); see also 70 FR 39104 (July 6, 2005) and 71 FR 60612 (October 13, 2006).</P>
        <FTNT>
          <P>
            <SU>1</SU>Areas designated as mandatory Class I Federal areas consist of national parks exceeding 6,000 acres, wilderness areas and national memorial parks exceeding 5,000 acres, and all international parks that were in existence on August 7, 1977. 42 U.S.C. 7472(a). In accordance with section 169A of the CAA, EPA, in consultation with the Department of Interior, promulgated a list of 156 areas where visibility is identified as an important value. 44 FR 69122 (November 30, 1979). The extent of a mandatory Class I area includes subsequent changes in boundaries, such as park expansions. 42 U.S.C. 7472(a). Although states and tribes may designate as Class I additional areas which they consider to have visibility as an important value, the requirements of the visibility program set forth in section 169A of the CAA apply only to “mandatory Class I Federal areas.” Each mandatory Class I Federal area is the responsibility of a “Federal Land Manager.” 42 U.S.C. 7602(i). When we use the term “Class I area” in this action, we mean a “mandatory Class I Federal area.”</P>
        </FTNT>

        <P>On behalf of the State of Oregon, the Oregon Department of Environmental Quality (ODEQ) submitted its Regional Haze State Implementation Plan (Regional Haze SIP submission or SIP submittal) to EPA on December 10, 2010 and supplemented on February 1, 2011. In a previous action EPA approved certain provisions in Oregon's Regional Haze SIP submission. 76 FR 38997. This previous action approved the provisions BART (40 CFR 51.308(e), calculation of baseline and natural conditions (40 CFR 51.308(d)(2)), and state wide emission inventory of pollutants that are reasonably anticipated to cause or contribute to visibility impairment in any mandatory Class I area. EPA also approved Oregon Administrative Rules OAR 340-223-0010 through 340-223-0080 (Regional Haze Rules). In that same action, EPA also approved portions of the SIP submittal as meeting the requirements of CAA section 110(a)(2)(D)(i)(II) with respect to the visibility prong for the 1997 8-hour ozone and 1997 PM<E T="52">2.5</E>National Ambient Air Quality Standards (NAAQS).</P>
        <P>In this action, EPA is proposing to approve the remaining provisions of Oregon's Regional Haze SIP submission including the portions that address the regional haze requirements for establishing Reasonable Progress Goals (RPGs) and the Long Term Strategy (LTS).</P>
        <HD SOURCE="HD2">A. Definition of Regional Haze</HD>

        <P>Regional haze is impairment of visual range or colorization caused by emission of air pollution produced by numerous sources and activities, located across a broad regional area. The sources include but are not limited to, major and minor stationary sources, mobile sources, and area sources including non-anthropogenic sources. These sources and activities may emit fine particles (PM<E T="52">2.5</E>) (e.g., sulfates, nitrates, organic carbon, elemental carbon, and soil dust), and their precursors (e.g., sulfur dioxide (SO<E T="52">2</E>), nitrogen oxides (NO<E T="52">X</E>), and in some cases, ammonia (NH<E T="52">3</E>) and volatile organic compounds (VOC)). Atmospheric fine particulate reduces clarity, color, and visual range of visual scenes. Visibility reducing fine particulate is primarily composed of sulfate, nitrate, organic carbon compounds, elemental carbon, and soil dust, and impairs visibility by scattering and absorbing light. Fine particulate can also cause serious health effects and mortality in humans, and contributes to environmental effects such as acid deposition and eutrophication. See 64 FR at 35715.</P>
        <P>Data from the existing visibility monitoring network, the “Interagency Monitoring of Protected Visual Environments” (IMPROVE) monitoring network, show that visibility impairment caused by air pollution occurs virtually all the time at most national parks and wilderness areas. The average visual range in many Class I areas in the Western United States is 100-150 kilometers, or about one-half to two-thirds the visual range that would exist without manmade air pollution. Id. Visibility impairment also varies day-to-day and by season depending on variation in meteorology and emission rates.</P>
        <HD SOURCE="HD2">B. Regional Haze Rules and Regulations</HD>
        <P>In section 169A of the 1977 CAA Amendments, Congress created a program for protecting visibility in the nation's national parks and wilderness areas. This section of the CAA establishes as a national goal the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from manmade air pollution.” CAA section 169A(a)(1). On December 2, 1980, EPA promulgated regulations to address visibility impairment in Class I areas that is “reasonably attributable” to a single source or small group of sources, i.e., “reasonably attributable visibility impairment” (RAVI). 45 FR 80084. These regulations represented the first phase in addressing visibility impairment. EPA deferred action on regional haze that emanates from a variety of sources until monitoring, modeling and scientific knowledge about the relationships between pollutants and visibility impairment were improved.</P>
        <P>Congress added section 169B to the CAA in 1990 to address regional haze issues. EPA promulgated a rule to address regional haze on July 1, 1999 (64 FR 35713) (the regional haze rule or RHR). The RHR revised the existing visibility regulations to integrate into the regulation, provisions addressing regional haze impairment and established a comprehensive visibility protection program for Class I areas. The requirements for regional haze, found at 40 CFR 51.308 and 51.309, are included in EPA's visibility protection regulations at 40 CFR 51.300-309. Some of the main elements of the regional haze requirements are summarized in section III of this rulemaking. The requirement to submit a regional haze SIP applies to all 50 states, the District of Columbia and the Virgin Islands.<SU>2</SU>
          <FTREF/>40 CFR 51.308(b) requires states to submit the first implementation plan addressing regional haze visibility impairment no later than December 17, 2007.</P>
        <FTNT>
          <P>
            <SU>2</SU>Albuquerque/Bernalillo County in New Mexico must also submit a regional haze SIP to completely satisfy the requirements of section 110(a)(2)(D) of the CAA for the entire State of New Mexico under the New Mexico Air Quality Control Act (section 74-2-4).</P>
        </FTNT>
        <HD SOURCE="HD2">C. Roles of Agencies in Addressing Regional Haze</HD>

        <P>Successful implementation of the regional haze program will require long-term regional coordination among states, tribal governments and various Federal agencies. As noted above, pollution affecting the air quality in Class I areas can be transported over long distances, even hundreds of kilometers. Therefore, to effectively address the problem of visibility impairment in Class I areas, states need to develop strategies in coordination with one another, taking into account<PRTPAGE P="30456"/>the effect of emissions from one jurisdiction on the air quality in another.</P>
        <P>Because the pollutants that lead to regional haze impairment can originate from across state lines, even across international boundaries, EPA has encouraged the States and Tribes to address visibility impairment from a regional perspective. Five regional planning organizations<SU>3</SU>
          <FTREF/>(RPOs) were created nationally to address regional haze and related issues. One of the main objectives of the RPOs is to develop and analyze data and conduct pollutant transport modeling to assist the States or Tribes in developing their regional haze plans.</P>
        <FTNT>
          <P>
            <SU>3</SU>See<E T="03">http://www.epa.gov/air/visibility/regional.html</E>for description of the regional planning organizations.</P>
        </FTNT>
        <P>The Western Regional Air Partnership (WRAP),<SU>4</SU>
          <FTREF/>one of the five RPOs nationally, is a voluntary partnership of State, Tribal, Federal, and local air agencies dealing with air quality in the West. WRAP member States include: Alaska, Arizona, California, Colorado, Oregon, Montana, New Mexico, North Dakota, Idaho, South Dakota, Utah, Washington, and Wyoming. WRAP Tribal members include Campo Band of Kumeyaay Indians, Confederated Salish and Kootenai Tribes, Cortina Indian Rancheria, Hopi Tribe, Hualapai Nation of the Grand Canyon, Native Village of Shungnak, Nez Perce Tribe, Northern Cheyenne Tribe, Pueblo of Acoma, Pueblo of San Felipe, and Shoshone-Bannock Tribes of Fort Hall.</P>
        <FTNT>
          <P>
            <SU>4</SU>The WRAP Web site can be found at<E T="03">http://www.wrapair.org</E>.</P>
        </FTNT>
        <P>As a result of the regional planning efforts in the West, all states in the WRAP region contributed information to a Technical Support System (TSS) which provides an analysis of the causes of haze, and the levels of contribution from all sources within each state to the visibility degradation of each Class I area. The WRAP States consulted in the development of reasonable progress goals, using the products of this technical consultation process to co-develop their reasonable progress goals for the Western Class I areas. The modeling done by the WRAP relied on assumptions regarding emissions over the relevant planning period and embedded in these assumptions were anticipated emissions reductions in each of the States in the WRAP, including reductions from BART and other measures to be adopted as part of the State's long term strategy for addressing regional haze. The reasonable progress goals in the draft and final regional haze SIPs that have now been prepared by States in the West accordingly are based, in part, on the emissions reductions from nearby States that were agreed on through the WRAP process.</P>
        <HD SOURCE="HD1">II. Requirements for Regional Haze SIPs</HD>
        <HD SOURCE="HD2">A. The CAA and the Regional Haze Rule</HD>
        <P>Regional haze SIPs must assure reasonable progress towards the national goal of achieving natural visibility conditions in Class I areas. Section 169A of the CAA and EPA's implementing regulations require states to establish long-term strategies for making reasonable progress toward meeting this goal. Implementation plans must also give specific attention to certain stationary sources that were in existence on August 7, 1977, but were not in operation before August 7, 1962, and require these sources, where appropriate, to install BART controls for the purpose of eliminating or reducing visibility impairment. The specific regional haze SIP requirements are discussed in further detail below.</P>
        <HD SOURCE="HD2">B. Determination of Baseline, Natural, and Current Visibility Conditions</HD>
        <P>The RHR establishes the deciview (dv) as the principal metric for measuring visibility. This visibility metric expresses uniform changes in haziness in terms of common increments across the entire range of visibility conditions, from pristine to extremely hazy conditions. Visibility is determined by measuring the visual range (or deciview), which is the greatest distance, in kilometers or miles, at which a dark object can be viewed against the sky. The deciview is a useful measure for tracking progress in improving visibility, because each deciview change is an equal incremental change in visibility perceived by the human eye. Most people can detect a change in visibility at one deciview.<SU>5</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>5</SU>The preamble to the RHR provides additional details about the deciview. 64 FR 35714, 35725 (July 1, 1999).</P>
        </FTNT>
        <P>The deciview is used in expressing reasonable progress goals (which are interim visibility goals towards meeting the national visibility goal), defining baseline, current, and natural conditions, and tracking changes in visibility. The regional haze SIPs must contain measures that ensure “reasonable progress” toward the national goal of preventing and remedying visibility impairment in Class I areas caused by manmade air pollution by reducing anthropogenic emissions that cause regional haze. The national goal is a return to natural conditions, i.e., manmade sources of air pollution would no longer impair visibility in Class I areas.</P>

        <P>To track changes in visibility over time at each of the 156 Class I areas covered by the visibility program (40 CFR 81.401-437), and as part of the process for determining reasonable progress, states must calculate the degree of existing visibility impairment at each Class I area at the time of each regional haze SIP submittal and periodically review progress every five years midway through each 10-year implementation period. To do this, the RHR requires states to determine the degree of impairment (in deciviews) for the average of the 20% least impaired (“best”) and 20% most impaired (“worst”) visibility days over a specified time period at each of their Class I areas. In addition, states must also develop an estimate of natural visibility conditions for the purpose of comparing progress toward the national goal. Natural visibility is determined by estimating the natural concentrations of pollutants that cause visibility impairment and then calculating total light extinction based on those estimates. EPA has provided guidance to states regarding how to calculate baseline, natural and current visibility conditions in documents titled, EPA's<E T="03">Guidance for Estimating Natural Visibility Conditions Under the Regional Haze Rule,</E>September 2003, (EPA-454/B-03-005 located at<E T="03">http://www.epa.gov/ttncaaa1/t1/memoranda/rh_envcurhr_gd.pdf</E>), (hereinafter referred to as “EPA's 2003 Natural Visibility Guidance”), and<E T="03">Guidance for Tracking Progress Under the Regional Haze Rule</E>(EPA-454/B-03-004 September 2003 located at<E T="03">http://www.epa.gov/ttncaaa1/t1/memoranda/rh_tpurhr_gd.pdf</E>), (hereinafter referred to as “EPA's 2003 Tracking Progress Guidance”).</P>

        <P>For the first regional haze SIPs that were due by December 17, 2007, “baseline visibility conditions” were the starting points for assessing “current” visibility impairment. Baseline visibility conditions represent the degree of visibility impairment for the 20% least impaired days and 20% most impaired days for each calendar year from 2000 to 2004. Using monitoring data for 2000 through 2004, states are required to calculate the average degree of visibility impairment for each Class I area, based on the average of annual values over the five-year period. The comparison of initial baseline visibility conditions to natural visibility conditions indicates the amount of improvement necessary to attain natural visibility, while the future comparison of baseline conditions to the then current<PRTPAGE P="30457"/>conditions will indicate the amount of progress made. In general, the 2000-2004 baseline time period is considered the time from which improvement in visibility is measured.</P>
        <HD SOURCE="HD2">C. Consultation With States and Federal Land Managers</HD>
        <P>The RHR requires that states consult with Federal Land Managers (FLMs) before adopting and submitting their SIPs. 40 CFR 51.308(i). States must provide FLMs an opportunity for consultation, in person and at least 60 days prior to holding any public hearing on the SIP. This consultation must include the opportunity for the FLMs to discuss their assessment of visibility impairment in any Class I area and to offer recommendations on the development of the reasonable progress goals and on the development and implementation of strategies to address visibility impairment. Further, a state must include in its SIP a description of how it addressed any comments provided by the FLMs. Finally, a SIP must provide procedures for continuing consultation between the state and FLMs regarding the state's visibility protection program, including development and review of SIP revisions, five-year progress reports, and the implementation of other programs having the potential to contribute to impairment of visibility in Class I areas.</P>
        <HD SOURCE="HD2">D. Best Available Retrofit Technology</HD>
        <P>Section 169A of the CAA directs states to evaluate the use of retrofit controls at certain larger, often uncontrolled, older stationary sources in order to address visibility impacts from these sources. Specifically, section 169A(b)(2)(A) of the CAA requires States to revise their SIPs to contain such measures as may be necessary to make reasonable progress towards the natural visibility goal, including a requirement that certain categories of existing major stationary sources<SU>6</SU>
          <FTREF/>built between 1962 and 1977, to procure, install, and operate the “Best Available Retrofit Technology” (BART) as determined by the state. States are directed to conduct BART determinations for such sources that may be anticipated to cause or contribute to any visibility impairment in a Class I area. The regional haze SIP must include source-specific BART emission limits and compliance schedules for each source subject to BART. Once a State has made its BART determination, the BART controls must be installed and in operation as expeditiously as practicable, but no later than five years after the date EPA approves the regional haze SIP. See CAA section 169A(g)(4); 40 CFR 51.308(e)(1)(iv).</P>
        <FTNT>
          <P>
            <SU>6</SU>The set of “major stationary sources” potentially subject to BART is listed in CAA section 169A(g)(7).</P>
        </FTNT>
        <P>EPA previously approved Oregon's BART determination for the sources subject to BART in its jurisdiction. See 76 FR 38997. Please refer to that action for details of the BART requirements and EPA's rationale for approval of the BART provisions in the Oregon Regional Haze SIP submission.</P>
        <HD SOURCE="HD2">E. Determination of Reasonable Progress Goals</HD>
        <P>The vehicle for ensuring continuing progress towards achieving the natural visibility goal is the submission of a series of regional haze SIPs from the states that establish two reasonable progress goals (RPGs) (i.e., two distinct goals, one for the “best” and one for the “worst” days) for every Class I area for each (approximately) 10-year implementation period. The RHR does not mandate specific milestones or rates of progress, but instead calls for states to establish goals that provide for “reasonable progress” toward achieving natural (i.e., “background”) visibility conditions. In setting RPGs, states must provide for an improvement in visibility for the most impaired days over the (approximately) 10-year period of the SIP, and ensure no degradation in visibility for the least impaired days over the same period.</P>

        <P>States have significant discretion in establishing RPGs, but are required to consider the following factors established in section 169A of the CAA and in EPA's RHR at 40 CFR 51.308(d)(1)(i)(A): (1) The costs of compliance; (2) the time necessary for compliance; (3) the energy and non-air quality environmental impacts of compliance; and (4) the remaining useful life of any potentially affected sources. States must demonstrate in their SIPs how these factors are considered when selecting the RPGs for the best and worst days for each applicable Class I area. States have considerable flexibility in how they take these factors into consideration, as noted in EPA's<E T="03">Guidance for Setting Reasonable Progress Goals under the Regional Haze Program,</E>July 1, 2007, Memorandum from William L. Wehrum, Acting Assistant Administrator for Air and Radiation, to EPA Regional Administrators, EPA Regions 1-10 (pp.4-2, 5-1) (“EPA's Reasonable Progress Guidance”). In setting the RPGs, states must also consider the rate of progress needed to reach natural visibility conditions by 2064 (referred to as the “uniform rate of progress” (URP) or the “glidepath”) and the emission reduction measures needed to achieve that rate of progress over the 10-year period of the SIP. Uniform progress towards achievement of natural conditions by the year 2064 represents a rate of progress which states are to use for analytical comparison to the amount of progress they expect to achieve. In setting RPGs, each state with one or more Class I areas (“Class I state”) must also consult with potentially “contributing states,” i.e., other nearby states with emission sources that may be affecting visibility impairment at the state's Class I areas. See 40 CFR 51.308(d)(1)(iv).</P>
        <HD SOURCE="HD2">F. Long Term Strategy</HD>
        <P>Consistent with the requirement in section 169A(b) of the CAA that states include in their regional haze SIP a 10 to 15 year strategy for making reasonable progress, 40 CFR 51.308(d)(3) of the RHR requires that states include an LTS in their regional haze SIPs. The LTS is the compilation of all control measures a state will use during the implementation period of the specific SIP submittal to meet applicable RPGs. The LTS must include “enforceable emissions limitations, compliance schedules, and other measures as necessary to achieve the reasonable progress goals” for all Class I areas within, or affected by emissions from, the state. See 40 CFR 51.308(d)(3).</P>
        <P>When a state's emissions are reasonably anticipated to cause or contribute to visibility impairment in a Class I area located in another state, the RHR requires the impacted state to coordinate with the contributing states in order to develop coordinated emissions management strategies. See 40 CFR 51.308(d)(3)(i). In such cases, the contributing state must demonstrate that it has included, in its SIP, all measures necessary to obtain its share of the emissions reductions needed to meet the RPGs for the Class I area. The RPOs have provided forums for significant interstate consultation, but additional consultations between states may be required to sufficiently address interstate visibility issues. This is especially true where two states belong to different RPOs.</P>

        <P>States should consider all types of anthropogenic sources of visibility impairment in developing their LTS, including stationary, minor, mobile, and area sources. At a minimum, states must describe how each of the following seven factors listed below are taken into account in developing their LTS: (1) Emissions reductions due to ongoing air pollution control programs, including measures to address RAVI; (2) measures<PRTPAGE P="30458"/>to mitigate the impacts of construction activities; (3) emissions limitations and schedules for compliance to achieve the RPG; (4) source retirement and replacement schedules; (5) smoke management techniques for agricultural and forestry management purposes including plans as currently exist within the state for these purposes; (6) enforceability of emissions limitations and control measures; and (7) the anticipated net effect on visibility due to projected changes in point, area, and mobile source emissions over the period addressed by the LTS. See 40 CFR 51.308(d)(3)(v).</P>
        <HD SOURCE="HD2">G. Coordinating Regional Haze and Reasonably Attributable Visibility Impairment</HD>
        <P>As part of the RHR, EPA revised 40 CFR 51.306(c) regarding the LTS for RAVI to require that the RAVI plan must provide for a periodic review and SIP revision not less frequently than every three years until the date of submission of the state's first plan addressing regional haze visibility impairment, which was due December 17, 2007, in accordance with 40 CFR 51.308(b) and (c). On or before this date, the state must revise its plan to provide for review and revision of a coordinated LTS for addressing RAVI and regional haze, and the state must submit the first such coordinated LTS with its first regional haze SIP. Future coordinated LTS's, and periodic progress reports evaluating progress towards RPGs, must be submitted consistent with the schedule for SIP submissions and periodic progress reports set forth in 40 CFR 51.308(f) and 51.308(g), respectively. The periodic review of a state's LTS must report on both regional haze and RAVI impairment and must be submitted to EPA as a SIP revision.</P>
        <HD SOURCE="HD2">H. Monitoring Strategy and Other Implementation Plan Requirements</HD>
        <P>Section 51.308(d)(4) of the RHR includes the requirement for a monitoring strategy for measuring, characterizing, and reporting of regional haze visibility impairment that is representative of all mandatory Class I Federal areas within the state. The strategy must be coordinated with the monitoring strategy required in section 51.305 for RAVI. Compliance with this requirement may be met through “participation” in the IMPROVE network, i.e., review and use of monitoring data from the network. The monitoring strategy is due with the first regional haze SIP, and it must be reviewed every five years. The monitoring strategy must also provide for additional monitoring sites if the IMPROVE network is not sufficient to determine whether RPGs will be met.</P>
        <P>The SIP must also provide for the following:</P>
        <P>• Procedures for using monitoring data and other information in a state with mandatory Class I areas to determine the contribution of emissions from within the state to regional haze visibility impairment at Class I areas both within and outside the state;</P>
        <P>• Procedures for using monitoring data and other information in a state with no mandatory Class I areas to determine the contribution of emissions from within the state to regional haze visibility impairment at Class I areas in other states;</P>
        <P>• Reporting of all visibility monitoring data to the Administrator at least annually for each Class I area in the state, and where possible, in electronic format;</P>
        <P>• Developing a statewide inventory of emissions of pollutants that are reasonably anticipated to cause or contribute to visibility impairment in any Class I area. The inventory must include emissions for a baseline year, emissions for the most recent year for which data are available, and estimates of future projected emissions. A state must also make a commitment to update the inventory periodically; and</P>
        <P>• Other elements, including reporting, recordkeeping, and other measures necessary to assess and report on visibility.</P>
        <P>The RHR requires control strategies to cover an initial implementation period extending to the year 2018, with a comprehensive reassessment and revision of those strategies, as appropriate, every 10 years thereafter. Periodic SIP revisions must meet the core requirements of section 51.308(d) with the exception of BART. The requirement to evaluate sources for BART applies only to the first regional haze SIP. Facilities subject to BART must continue to comply with the BART provisions of section 51.308(e), as noted above. Periodic SIP revisions will assure that the statutory requirement of reasonable progress will continue to be met. Each state also is required to submit a report to EPA every five years that evaluates progress toward achieving the RPG for each Class I area within the state and outside the state if affected by emissions from within the state. 40 CFR 51.308(g). The first progress report is due five years from submittal of the initial regional haze SIP revision. At the same time a 5-year progress report is submitted, a state must determine the adequacy of its existing SIP to achieve the established goals for visibility improvement. See 40 CFR 51.308(h).</P>
        <HD SOURCE="HD1">III. EPA's Analysis of Oregon Regional Haze SIP</HD>
        <HD SOURCE="HD2">A. Affected Class I Areas</HD>
        <P>There are twelve mandatory Class I areas, or portions of such areas, within Oregon: Mt. Hood Wilderness, Mt. Jefferson Wilderness, Mt. Washington Wilderness, Three Sisters Wilderness, Diamond Peak Wilderness, Crater Lake National Park, Mountain Lakes Wilderness, Gearhart Mountain Wilderness, Kalmiopsis Wilderness, Strawberry Mountain Wilderness, and Eagle Cap Wilderness, are all within Oregon State borders. Hells Canyon Wilderness Area is a shared Class I area with Idaho. See 40 CFR 81.410. Oregon is responsible for developing reasonable progress goals for the Class I areas in Oregon and, through agreement with Idaho, is also responsible for developing the reasonable progress goals for the Hells Canyon Class I area. Oregon reviewed interstate transport of haze pollutants with neighboring states, focusing on source apportionment information to identify visibility impacts in Oregon and neighboring state Class I areas. Oregon consulted with Washington, Idaho, California and Nevada. See the Oregon Regional Haze SIP submittal, chapter 13, section 13.2; see, also the WRAP Technical Support Document, February 28, 2011<SU>7</SU>
          <FTREF/>(WRAP TSD) supporting this action and 76 FR 38997.</P>
        <FTNT>
          <P>
            <SU>7</SU>EPA evaluated the technical work products of the WRAP used by Oregon in support of this Regional Haze SIP submittal. The results of that evaluation are included in the document “WRAP Technical Support Document” or WRAP TSD.</P>
        </FTNT>
        <P>The Oregon SIP submittal addresses the eleven Class I areas that are completely within the State border, the Class I area with shared jurisdiction with Oregon and Idaho, and the visibility impacts of Oregon sources on Class I areas in neighboring states.</P>
        <HD SOURCE="HD2">B. Baseline and Natural Conditions</HD>

        <P>EPA previously evaluated and approved Oregon's determination of baseline and natural conditions for all eleven Class I areas in Oregon. See 76 FR 12651 (March 8, 2011) and 76 FR 38997 (July 5, 2011) (proposed and final rule respectively). The discussion of baseline and natural conditions in those<E T="04">Federal Register</E>notices is relevant when evaluating the State's Reasonable Progress Goals which we are proposing to approve today. Thus, the discussion below summarizes EPA's previous explanation of the baseline and natural conditions in Oregon's Class I areas.</P>

        <P>Oregon established baseline and natural visibility conditions as well as the URP to achieve natural visibility<PRTPAGE P="30459"/>conditions in 2064 for all eleven of the Class I areas wholly within its borders. The SIP submittal also included these conditions for Hells Canyon Wilderness Area, as determined by WRAP and established by Oregon and Idaho.</P>

        <P>Baseline visibility was calculated from monitoring data collected by IMPROVE monitors for the most-impaired (20% worst) days and the least-impaired (20% best) days. Oregon used the WRAP derived natural visibility conditions. In general, WRAP based their natural condition estimates on EPA guidance;<E T="03">Guidance for Estimating Natural Visibility Conditions Under the Regional Haze Program (EPA-45/B-03-0005 September 2003)</E>but incorporated refinements which EPA believes provides results more appropriate for western states than the general EPA default approach. See WRAP TSD section 2.E.</P>
        <P>Because individual monitors are used to represent visibility conditions for groups of Class I areas in Oregon, not every Class I area in Oregon has an IMPROVE monitor. Specifically, the Oregon Class I areas are segregated into six groups. These groups, and Class I areas they contain, are:</P>
        <P>• North Cascades: Mt. Hood Wilderness Area.</P>
        <P>• Central Cascades: Mt. Jefferson, Mt. Washington, and Three Sisters Wilderness Areas.</P>
        <P>• Southern Cascades: Crater Lake National Park, Diamond Peak, Mountain Lakes, and Gearhart Wilderness Areas.</P>
        <P>• Coast Range: Kalmiopsis Wilderness Area.</P>
        <P>• Eastern Oregon: Strawberry Mountain and Eagle Cap Wilderness Areas.</P>
        <P>• Eastern Oregon/Western Idaho: Hells Canyon Wilderness Area.</P>
        <P>Visibility conditions on the 20% worst days during the 2000-04 baseline period for each group of Class I areas were determined to be:</P>
        <P>• North Cascades—14.9 dv.</P>
        <P>• Central Cascades—15.3 dv.</P>
        <P>• Southern Cascades—13.7 dv.</P>
        <P>• Coast Range—15.5 dv.</P>
        <P>• Eastern Oregon—18.6 dv.</P>
        <P>• Eastern Oregon/Western Idaho—18.6 dv.</P>
        <P>Visibility conditions on the 20% best days during the 2000-04 baseline period for each group of Class I areas were determined to be:</P>
        <P>• North Cascades—2.2 dv.</P>
        <P>• Central Cascades—3.0 dv.</P>
        <P>• Southern Cascades—1.7 dv.</P>
        <P>• Coast Range—6.3 dv.</P>
        <P>• Eastern Oregon—4.5 dv.</P>
        <P>• Eastern Oregon/Western Idaho—5.5 dv.</P>
        <P>Natural visibility conditions on the 20% worst days for each group of Class I areas were determined to be:</P>
        <P>• Northern Cascades—8.4 dv.</P>
        <P>• Central Cascades—8.8 dv.</P>
        <P>• Southern Cascades—7.6 dv.</P>
        <P>• Coast Range—9.4 dv.</P>
        <P>• Eastern Oregon—8.9 dv.</P>
        <P>• Eastern Oregon/Western Idaho—8.3 dv.</P>
        <HD SOURCE="HD2">C. Oregon Emission Inventory</HD>

        <P>EPA previously evaluated and approved Oregon's emissions inventory of pollutants that impact the twelve Class I areas in Oregon, as well as the impacts of emissions from Oregon BART-eligible sources on nearby Class I in other states. See 76 FR 12651 and 76 FR 38997. Below is a summary of emission inventories of the most significant visibility impairing pollutants in Oregon, which are SO<E T="52">2</E>, NO<E T="52">X</E>, and organic carbon. These pollutants, and their visibility impacts, were explained in more detail in the notices for the previous rulemaking.</P>

        <P>Point sources in Oregon account for 39% of total state-wide SO<E T="52">2</E>emissions. The most significant point sources are coal-fired electrical generation units. Area sources (such as Pacific offshore shipping, wood combustion, and natural gas combustion) contribute about 21% to Oregon statewide SO<E T="52">2</E>emissions. On-road mobile and off-road mobile sources contribute a combined total of 21% of the Oregon SO<E T="52">2</E>emissions. On-road mobile sources account for 43% of the total NO<E T="52">X</E>statewide emissions in Oregon, and off-road mobile sources account for 21% of the NO<E T="52">X</E>. Natural fire accounts for 11% of the NO<E T="52">X</E>, and point sources account for 10% of the NO<E T="52">X</E>emissions. Most of the organic carbon emissions in Oregon are from natural fire, which fluctuate greatly from year to year. For 2002, about 68% of statewide organic carbon emissions in Oregon were due to natural fire. Anthropogenic fire (prescribed fire, agricultural field burning, and outdoor residential burning) accounts for 9% of the statewide organic carbon emissions.</P>
        <HD SOURCE="HD2">D. Sources of Visibility Impairment in Oregon Class I Areas</HD>
        <P>Oregon used a two step process to identify the contribution of each source or source category to existing visibility impairment. First, ambient pollutant concentrations by species (sulfate, nitrate, organic carbon, fine particulate, etc) were determined from the IMPROVE sampler representing each Class I area. These concentrations were then used to determine the extinction coefficient for each pollutant species according to the updated IMPROVE algorithm. Extinction was then converted to deciview values, the required visibility metric identified in the RHR. Second, appropriate modeling tools were used to determine which source categories contributed to the ambient concentrations of each pollutant species in each Class I area. Thus, impairment was distributed by source category.</P>

        <P>The WRAP and Western States selected the Comprehensive Air Quality Model with Extensions (CAMx) in conjunction with PM Source Apportionment Technology (PSAT) first to determine source contribution to ambient sulfate and nitrate concentrations and then to decide which geographic source regions contribute to haze at specific Class I areas. The second modeling tool used by WRAP was the Weighted Emissions Potential (WEP) model, which was used primarily as a screening tool to determine the contribution of ambient organic carbon, elemental carbon, PM<E T="52">2.5</E>, and coarse PM concentrations to visibility impairment in Oregon Class I areas. Description of these tools, their use and evaluation of them are described in more detail in section 6 of the WRAP TSD. Below is a summary of the source categories that contribute to the SO<E T="52">2</E>, NO<E T="52">X</E>, and organic carbon, which cause the most significant visibility impairment in Class I areas in Oregon.</P>

        <P>The results of the PSAT and WEP modeling show that sources of visibility impairment in the Oregon Class I area vary significantly by location. The PSAT results show that the 20% worst days during 2000-2004 in the North and Central Cascades Class I areas are mostly impacted by sulfate from a combination of SO<E T="52">2</E>point, area, and mobile sources in Washington and Oregon, and marine shipping in the Pacific offshore region. Most of the sulfate impacting the Southern Cascade Class I areas is from point sources in Oregon, Washington, California, and Canada. Pacific offshore shipping is also a substantial contributor of sulfate to this area. The most significant sources of sulfate to the only coastal Oregon Class I area (Kalmiopsis Wilderness Area) are natural fires in Oregon, and marine shipping in the Pacific Ocean. For the 20% worst days in Eastern Oregon Class I areas, the contribution of sulfates from each geographical area is relatively low, with the largest contribution being from point sources from Canada, Washington, and Oregon. See Oregon Regional Haze SIP submittal Figures 9.2.1-1 through Figures 9.2.1-6.</P>

        <P>The PSAT results for nitrate show that a majority of the nitrate impacting the<PRTPAGE P="30460"/>North and Central Cascades Class I areas is from mobile sources in Oregon and Washington. For the 20% worst days in Southern Cascades, the most significant sources of nitrate are mobile sources in California, Oregon and Washington. A majority of the nitrate impacting the Kalmiopsis Wilderness Area is from mobile sources in Oregon and from marine shipping in the Pacific Ocean. The visibility on the 20% worst days in the Eastern Oregon Class I areas is significantly impacted by a combination of point, area, and mobile NO<E T="52">X</E>sources in Idaho, Oregon and Washington. See Oregon Regional Haze SIP submittal Figures 9.2.2-1 through Figures 9.2.2-6.</P>
        <P>Based on the WEP model results, the organic carbon in the North Cascades area on the 20% worst visibility days comes mostly from area sources and natural fires in Oregon, with a small contribution from areas sources in Washington. For the 20% worst visibility days in the Central Cascades areas, most of the organic carbon comes from a combination of area source emissions and natural and anthropogenic fire in Oregon. For the 20% worst visibility days in the Southern Cascades area, approximately 90% of the organic carbon contribution came from natural fires in 2002. For the 20% worst visibility days in the Kalmiopsis Wilderness area, almost all of the organic carbon for the 2002 base year came from natural fire. For the 20% worst visibility days in the Eastern Oregon Class I areas, most of the organic carbon contribution came from a combination of natural fires and anthropogenic fires in Idaho and Oregon.</P>
        <P>In its previous final rulemaking EPA found that Oregon had appropriately identified the primary pollutants impacting its Class I areas, and that the SIP contains an appropriate analysis of the impact these pollutants have on visibility in the Class I areas in Oregon. See 76 FR 38997.</P>
        <HD SOURCE="HD2">E. Best Available Retrofit Technology</HD>

        <P>EPA previously reviewed and approved Oregon's BART determinations for all sources subject to BART in Oregon. See 76 FR 38997. As explained in the<E T="04">Federal Register</E>notice approving the State's determinations, BART was determined for one source, the PGE Boardman Electric Generating Unit (EGU), and Federally Enforceable Permit Limits (FEPLs) were established for four BART-eligible sources to reduce visibility impacts at any Class I area below the 0.5 dv subject to BART-subject threshold. These four sources are:</P>
        <P>• PGE Beaver EGU</P>
        <P>• Georgia Pacific Wauna Mill</P>
        <P>• International Paper, Springfield</P>
        <P>• Amalgamated Sugar Plant, Nyssa</P>
        <P>In summary, the emission limits established through FEPLs for the above four sources were achieved through the following methods.</P>
        <P>1. PGE Beaver EGU: To achieve the emission limits established in the Title V permit, the facility is using ultra-low sulfur diesel fuel (with no more than 0.0015% sulfur) in its oil-fired BART eligible units. The source must also use only “pipe line quality” natural gas in the gas-fueled PWEU1 unit.</P>

        <P>2. Georgia Pacific Wauna Mill: To achieve the emission limits established in the Title V permit, the mill has reduced its SO<E T="52">2</E>emissions by (1) permanently reducing use of fuel oil in the Power Boiler, (2) discontinuing the use of fuel oil in the Lime Kiln until the Non-Condensable Gas Incinerator (NCGI) unit is shut down, and (3) limiting pulp production rate to 1,030 tons per day until the NCGI unit is shut down, at which time production rate will be limited to 1,350 tons per day.</P>

        <P>3. International Paper, Springfield: To achieve the emission limits established in its Title V permit, the plant has reduced its emissions of SO<E T="52">2</E>, NO<E T="52">X</E>, and PM by accepting limits on fuel usage and operation, and meeting a combined SO<E T="52">2</E>and NO<E T="52">X</E>daily emission limit based on a plant fuel use specific formula. The permit requires this facility to include the package boiler (EU-150B) emissions when demonstrating compliance with condition 210 of the permit until the source submits a notice of completion of No. 4 recovery boiler mud and steam drum replacement.</P>
        <P>4. Amalgamated Sugar Plant, Nyssa: This plant is currently shutdown and has no identified date to resume operations. In the event this source resumes operation in the future, ODEQ will require that this facility be subject to a FEPL in its Title V permit, or conduct a BART analysis and install BART prior to resuming operation.</P>

        <P>The PGE EGU near Boardman, Oregon is a coal-fired power plant capable of producing about 617 MW of electricity constructed between 1962 and 1977, and based on 2005 actual emissions data, emitted about 12,000 tons of SO<E T="52">2</E>, 8,300 tons of NO<E T="52">X</E>, and 880 tons of particulate matter (PM) that year. ODEQ determined BART for this source to be 0.23 lbs/mmBtu for NO<E T="52">X</E>based on a new low-NO<E T="52">X</E>burner/modified overfire air system, 0.40 lbs/mmBtu for SO<E T="52">2</E>based on initial operational efficiency of a new Direct Sorbent Injection System, and 0.40 lb/mmBtu for PM, based on the current PM emission limit for the existing electrostatic precipitation system. The BART rule for this facility requires that the Foster Wheeler boiler at the facility permanently cease burning coal by no later than December 31, 2020. OAR 340-223-0030(1)(e).</P>
        <HD SOURCE="HD2">F. Reasonable Progress Goals</HD>
        <HD SOURCE="HD3">1. Determination of Reasonable Progress Goals</HD>
        <P>The RHR requires States to show “reasonable progress” toward natural visibility conditions over the time period of the SIP, with 2018 as the first milestone year. The RHR at 40 CFR 51.308(d)(1) also requires that the State establish a goal, expressed in deciviews (dv), for each Class I area within the State that provides for reasonable progress towards achieving natural visibility conditions by 2064. As such the State must establish an RPG for each Class I area that provides for visibility improvement for the most-impaired (20% worst) days and ensures no degradation in visibility for the least-impaired (20% best) days in 2018.</P>
        <P>RPGs are estimates of the progress to be achieved by 2018 through implementation of the LTS which includes anticipated emission reductions from all State and Federal regulatory requirements implemented between the baseline and 2018, including, but not limited to, BART and any additional controls for non-BART sources or emission activities including any Federal requirements that reduce visibility impairing pollutants. As explained above, the rate needed to achieve natural conditions by 2064 is referred to as the uniform rate of progress or URP.</P>
        <P>If the State establishes a reasonable progress goal that provides for a slower rate of improvement than the rate that would be needed to attain natural conditions by 2064, the State must demonstrate based on the factors in 51.308(d)(1)(i)(A), that the rate of progress for the implementation plan to attain natural conditions by 2064 is not reasonable; and the progress goal adopted by the State is reasonable. The State must provide an assessment of the number of years it would take to attain natural conditions if visibility continues at the rate of progress selected by the State. 40 CFR 51.308(d)(B)(ii).</P>

        <P>The primary tool relied upon by Oregon for determining regional haze improvements by 2018 and for establishing the RPGs, was the CMAQ modeling conducted by WRAP. The CMAQ model was used to estimate 2018 visibility conditions in Oregon, based on application of the regional haze strategies included in this plan. WRAP developed CMAQ modeling inputs,<PRTPAGE P="30461"/>including annual meteorology and emissions inventories for: (1) A 2002 actual emissions base case, (2) a planning case to represent the 2000-04 regional haze baseline period using averages for key emissions categories, and (3) a projected 2018 case to determine improvements achievable by 2018. EPA approves the use of the CMAQ model to determine future visibility conditions in Oregon Class I areas. A more detailed description of the CMAQ modeling performed by WRAP can be found in the WRAP TSD for this action.</P>
        <P>To determine the 2018 RPGs for its Class I areas, ODEQ followed the eleven steps described below:</P>
        <P>1. Compare baseline conditions to natural conditions. For each Class I area, ODEQ identified baseline (2000-2004) visibility and natural conditions in 2064, for the 20% worst and best days.</P>
        <P>2. Identify the Uniform Rate of Progress for achieving natural conditions on the 20% worst days. For each Class I area, ODEQ calculated the URP glide path from baseline to 2064, including the 2018 planning milestone, for the 20% worst days.</P>
        <P>3. Identify contributing pollutant species. For each Class I area, ODEQ identified the pollutant species that are contributing to visibility impairment on during the 2000-2004 baseline 20% worst and 20% best days.</P>
        <P>4. Identify major emission sources within the State. Using the WRAP Emission Inventory for 2002 and 2018, ODEQ identified statewide emissions by source category and pollutant, and identified projected emission trends from current (2002) to the 2018 planning milestone.</P>
        <P>5. Identify the larger emission sources contributing to visibility impairment. For each Class I area, ODEQ identified the relative contribution of anthropogenic and non-anthropogenic sources in Oregon and neighboring states to the 20% worst and best days, using monitoring data, and source apportionment and modeling results.</P>
        <P>6. Document the emission reductions from BART. ODEQ described the results of the BART process, and identified the emission reductions that will be achieved from BART and from FEPLs taken by sources so that they are no longer subject to BART.</P>
        <P>7. Identify projected visibility change in 2018 from “on-the-books” controls and BART. For each Class I area, ODEQ determined the visibility improvement expected in 2018 from on-the-books controls and BART, using the WRAP CMAQ modeling results, for the 20% worst and best days.</P>
        <P>8. Identify sources or source categories that are major contributors and apply the four- factor analysis. As a result of the analysis under step 5 above, for each Class I area, ODEQ determined key pollutant species and source categories that could have the greatest impact on visibility in Oregon Class I areas, and analyzed these sources using the four-factor analysis.</P>
        <P>9. Describe the results of the four-factor analysis. ODEQ conducted a four-factor analysis on the major Oregon source emission categories using the following factors: Cost of compliance, time necessary for compliance, energy and non-air quality environmental impacts of compliance, and remaining useful life of any potentially affected sources.</P>
        <P>10. Set the RPGs based on the above steps. ODEQ set the RPGs for each Class I area in deciviews, based on expected improvements by 2018 for the 20% worst and 20% best days, due to on-the-books controls, BART, and the results of the four-factor analysis on major source categories.</P>
        <P>11. Compare RPG to the 2018 URP milestone and provide an affirmative demonstration that reasonable progress is being made. For each Class I area, ODEQ compared the RPG developed in step 10 to the 2018 URP milestone and provided an affirmative demonstration that reasonable progress is being made.</P>
        <P>After considering each of the factors described above, Oregon established RPGs for each of its mandatory Class I areas. The visibility projections were based on estimates of emissions reductions from all existing and known controls resulting from Federal and state CAA programs as of December 2010. Oregon's RPGs for its 12 Class I areas are shown in Table 1 below.</P>
        <GPOTABLE CDEF="s25,r50,12,12,12,12,12,12" COLS="8" OPTS="L2,p7,7/8,i1">
          <TTITLE>Table 1—2018 RPGs for Class I Areas in Oregon</TTITLE>
          <BOXHD>
            <CHED H="1">Region</CHED>
            <CHED H="1">Oregon class I area</CHED>
            <CHED H="1">20% Worst days</CHED>
            <CHED H="2">Baseline<LI>condition</LI>
              <LI>(dv)</LI>
            </CHED>
            <CHED H="2">2018 Uniform<LI>rate of</LI>
              <LI>progress (dv)</LI>
            </CHED>
            <CHED H="2">2018<LI>Reasonable</LI>
              <LI>progress</LI>
              <LI>goal (dv)</LI>
            </CHED>
            <CHED H="1">Years from<LI>baseline to</LI>
              <LI>attain</LI>
              <LI>natural</LI>
              <LI>conditions at</LI>
              <LI>reasonable</LI>
              <LI>progress</LI>
            </CHED>
            <CHED H="1">20% Best days</CHED>
            <CHED H="2">Baseline<LI>condition (dv)</LI>
            </CHED>
            <CHED H="2">2018<LI>reasonable</LI>
              <LI>progress</LI>
              <LI>goal (dv)</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Northern Cascades</ENT>
            <ENT>Mt. Hood Wilderness Area</ENT>
            <ENT>14.9</ENT>
            <ENT>13.4</ENT>
            <ENT>13.8</ENT>
            <ENT>87</ENT>
            <ENT>2.2</ENT>
            <ENT>2.0</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Central Cascades</ENT>
            <ENT>Mt. Jefferson, Mt. Washington, and Three Sisters Wilderness Areas</ENT>
            <ENT>15.3</ENT>
            <ENT>13.8</ENT>
            <ENT>14.3</ENT>
            <ENT>93</ENT>
            <ENT>3.0</ENT>
            <ENT>2.9</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Southern Cascades</ENT>
            <ENT>Diamond Peak, Mountain Lakes, and Gearhart Mountain Wilderness  Areas and Crater Lake National Park</ENT>
            <ENT>13.7</ENT>
            <ENT>12.3</ENT>
            <ENT>13.4</ENT>
            <ENT>287</ENT>
            <ENT>1.8</ENT>
            <ENT>1.5</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Coast Range</ENT>
            <ENT>Kalmiopsis Wilderness Area</ENT>
            <ENT>15.5</ENT>
            <ENT>14.1</ENT>
            <ENT>15.1</ENT>
            <ENT>216</ENT>
            <ENT>6.3</ENT>
            <ENT>6.1</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Eastern Oregon</ENT>
            <ENT>Strawberry Mountain and Eagle Cap Wilderness Areas</ENT>
            <ENT>18.6</ENT>
            <ENT>16.3</ENT>
            <ENT>17.5</ENT>
            <ENT>125</ENT>
            <ENT>4.5</ENT>
            <ENT>4.1</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Eastern Oregon/Western Idaho</ENT>
            <ENT>Hells Canyon Wilderness Area</ENT>
            <ENT>18.6</ENT>
            <ENT>16.2</ENT>
            <ENT>16.6</ENT>
            <ENT>74</ENT>
            <ENT>5.5</ENT>
            <ENT>4.7</ENT>
          </ROW>
          <TNOTE>SIP submission Table 11.4.2-2 as supplemented by May 7, 2012 letter from ODEQ.</TNOTE>
        </GPOTABLE>
        <HD SOURCE="HD3">2. Demonstration of Reasonable Progress</HD>

        <P>Oregon recognized that based on the results of the CMAQ modeling, none of the Class I areas in Oregon are expected to achieve the URP for 2018. Nevertheless, Oregon concludes that the goals it established for each of the Class I areas for the first planning cycle are reasonable, and no additional controls are reasonable at this time. Oregon believes that these RPGs are justified and “reasonable” based on the following considerations: (1) Findings of the four-factor analysis which evaluated controls on major source categories that impact visibility in Class I areas in Oregon, (2) substantial future emission reductions from the PGE Boardman EGU, initially due to BART emission limits in place by 2014, and then further reductions in emissions from this facility when it ceases to burn coal by the end of 2020, (3) evidence that emissions from natural sources (primarily wildfires) significantly impact visibility in the Class I areas and adversely affect Oregon's ability to reach the 2018 URP goal, (4) evidence that offshore marine shipping emissions<PRTPAGE P="30462"/>significantly impact visibility in the Class I areas and adversely affect Oregon's ability to meet the 2018 URP goal in these Class I areas, and (5) ODEQ's demonstration that it will achieve significant reductions of SO<E T="52">2</E>and NO<E T="52">X</E>emissions from anthropogenic sources in Oregon, primarily due to major reductions in mobile source emissions of SO<E T="52">2</E>and NO<E T="52">X</E>by 2018. See Oregon Regional Haze SIP submission section 11.4.1 for additional detail. These five factors, and how they were considered, are summarized in the following paragraphs.</P>
        <P>
          <E T="03">Findings of the Four-Factor Analysis:</E>ODEQ based its analysis on the WRAP four-factor analysis for Oregon, and focused on the largest anthropogenic point and areas sources that have the greatest projected amounts of SO<E T="52">X</E>and NO<E T="52">X</E>emissions in each source category in 2018. Based on the emissions inventory, ODEQ identified the following source categories as being the largest SO<E T="52">X</E>and NO<E T="52">X</E>emitters: External Combustion Boilers; Stationary Source Fuel Combustion; Industrial Processes; Internal Combustion Engines; Agricultural Orchard Heaters; and Waste Disposal, Treatment, and Recovery. The annual SO<E T="52">2</E>and NO<E T="52">X</E>emissions from each of these categories are shown in Table 2.</P>
        <GPOTABLE CDEF="s40,r40,r70,xs70" COLS="4" OPTS="L2,i1">
          <TTITLE>Table 2—Oregon's Largest Source Categories</TTITLE>
          <BOXHD>
            <CHED H="1">Pollutant</CHED>
            <CHED H="1">Type</CHED>
            <CHED H="1">Source category</CHED>
            <CHED H="1">Extent of<LI>contribution</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">SO<E T="52">2</E>
            </ENT>
            <ENT>Point</ENT>
            <ENT>External Combustion Boilers</ENT>
            <ENT>858 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Point</ENT>
            <ENT>Industrial Processes</ENT>
            <ENT>377 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Area</ENT>
            <ENT>Stationary Source Fuel Combustion</ENT>
            <ENT>5,699 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Area</ENT>
            <ENT>Misc. (Agriculture Orchard Heaters)</ENT>
            <ENT>2,243 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="01">NO<E T="52">X</E>
            </ENT>
            <ENT>Point</ENT>
            <ENT>External Combustion Boilers</ENT>
            <ENT>4,995 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Point</ENT>
            <ENT>Industrial Processes</ENT>
            <ENT>3,639 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Point</ENT>
            <ENT>Internal Combustion Engines</ENT>
            <ENT>3,688 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Area</ENT>
            <ENT>Stationary Source Fuel Combustion</ENT>
            <ENT>13,454 tons/year.</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>Area</ENT>
            <ENT>Waste Disposal, Treatment, and Recovery</ENT>
            <ENT>2,881 tons/year.</ENT>
          </ROW>
        </GPOTABLE>
        <P>ODEQ's four-factor analysis for each source category is summarized below:</P>

        <P>a. External Boilers: This source category consists of point sources with emissions totaling 858 tons per year (tpy) of SO<E T="52">2</E>and 4,995 of NO<E T="52">X</E>. Technically feasible NO<E T="52">X</E>emission control technologies for external boilers included Overfire Air, Selective Non-Catalytic Reduction and Selective Catalytic Reduction. See section 11.3.3.1 of the SIP submittal for additional detail regarding the State's analysis of this source category.</P>

        <P>b. Industrial Processes: This source category consists of SO<E T="52">2</E>and NO<E T="52">X</E>point sources, with emissions totaling 377 tpy of SO<E T="52">2</E>and 3,639 tpy of NO<E T="52">X</E>In this category, ODEQ focused on cement manufacturing, which is the only sizable subcategory in this category, with about 57% of the NO<E T="52">X</E>in the Industrial Processes category. See section 11.3.3.1, Industrial Processes table and section 11.3.3.3 of the SIP submittal for additional detail regarding the State's analysis of this source category.</P>

        <P>c. Stationary Source Fuel Combustion: This source category consists of area sources, with emissions totaling 5,699 tpy of SO<E T="52">2</E>and 13,354 tpy of NO<E T="52">X</E>The largest subcategory in this category is residential wood and natural gas combustion (6,642 tpy of NO<E T="52">X</E>, combined). These represent the woodstoves and home heating devices found throughout Oregon. ODEQ's residential wood heating rules in OAR 340, Division 262, require that only certified woodstoves can be sold in the state. As a result of these current federally enforceable state requirements and programs for residential wood heating, ODEQ did not conduct a four-factor analysis for this subcategory. ODEQ also found that the low emissions generated by natural gas home heating devices did not warrant further analysis. The remaining sizeable subcategories were industrial and commercial/institutional combustion, involving mostly natural gas and distillate oil. ODEQ believes that emissions from these subcategories come from smaller generators and engines. The control options available for stationary sources burning natural gas are very limited, since this fuel already produces very low emissions, and there are no cost-effective post-combustion controls for this category of sources. As a result of its review of this source category, ODEQ did not believe a detailed four-factor analysis was appropriate, and that such a review would not identify any cost effective controls. See section 11.3.3.2 of the SIP submittal for additional detail regarding the State's analysis of this source category.</P>

        <P>d. Waste Disposal, Treatment, and Recovery: This source category consists of NO<E T="52">X</E>area sources with emissions totaling 2,881 tpy. ODEQ found that the largest source within this category is residential open burning, which like agricultural and forestry burning is not suitable for applying the four-factor analysis because there are no feasible emission control technologies for these types of sources. However, as discussed below, ODEQ intends to conduct an evaluation of residential open burning to determine the extent of the contribution to visibility impairment, and the need for emission reductions, as part of the LTS of this plan (See chapter 12, section 12.6.3 of the SIP submittal).</P>

        <P>e. Agricultural Orchard Heaters: This source category consists of SO<E T="52">2</E>area sources with emissions totaling 2,243 tpy. ODEQ found that a four-factor analysis was not appropriate for this category of sources for the following reasons: (1) ODEQ's confidence in the emissions estimates from orchard heaters is very low, (2) these heaters are used only intermittently, to prevent frost damage for selected crops in diverse regions of the state, and the probability that the intermittent use and spatial distribution of this source is a sizeable contributor to Class I area impairment is extremely low, and (3) few cost effective control options are available for this type of source. See section 11.3.3.5 of the SIP submittal for additional detail regarding the State's analysis of this source category.</P>

        <P>f. Internal Combustion Engines: This source category consists of NO<E T="52">X</E>point sources with emissions totaling 3,688 tpy. This source category consists of two types of engines: (1) Natural gas fired reciprocating internal combustion engines, and (2) natural gas fired turbines that are compressors, combustors, or power turbines. Emissions from internal combustion engines vary from engine to engine, model to model, and mode of operation. ODEQ found that there was no currently available information on this source<PRTPAGE P="30463"/>category that would allow a four-factor analysis. Given the relatively low emissions represented by this source category, and the unknown level of contribution to visibility impairment, ODEQ decided not to conduct any further analysis on this source category. See section 11.3.3.6 of the SIP submittal for additional detail regarding the State's analysis of this source category.</P>

        <P>As the purpose of the reasonable progress analysis is to evaluate the potential of controlling certain sources or source categories to address visibility from manmade sources, the four-factor analysis conducted by Oregon addressed only anthropogenic sources on the assumption that the focus should be on sources that could be controlled. Thus, in its evaluation of potential sources or source categories for reasonable progress, the state primarily evaluated controls on point sources. Oregon determined that the key pollutants contributing to visibility impairment from sources in Oregon are SO<E T="52">2</E>, NO<E T="52">X</E>, and organic carbon. The State determined that the major source of organic carbon was natural fire, and after reviewing the WRAP modeling results, Oregon found that PM emissions from point sources only contribute a minimal amount to the visibility impairment in the Oregon Class I areas. Therefore, for this initial planning period, Oregon focused on SO<E T="52">2</E>and NO<E T="52">X</E>controls for point source emissions. Based on its evaluation, Oregon concluded that little gain would be achieved from further reduction in SO<E T="52">2</E>and NO<E T="52">X</E>from point sources in Oregon, and therefore concluded it is not reasonable to require controls for these source categories at this time. See Chapter 11.3 of the Oregon SIP submittal.</P>
        <P>
          <E T="03">Substantial emission reductions From the PGE Boardman EGU:</E>ODEQ projects that there will be a total SO<E T="52">2</E>and NO<E T="52">X</E>emission reduction of 9,944 tpy from the PGE Boardman facility when BART emission controls are fully implemented by July 2014. These reductions will result in an additional visibility improvement of 2.4 dv in the Mt. Hood Class I area, and an additional cumulative visibility improvement of 16.2 dv in all 14 Class I areas impacted by this source. By 2018, there will be an additional reduction of 2,400 tpy of SO<E T="52">2</E>when the reasonable progress controls (Direct Sorbent Injection-phase 2) are implemented, resulting in an additional 2.3 dv of cumulative improvement. By the end of 2020, when Boardman permanently ceases to burn coal, there will be an additional combined SO<E T="52">2</E>and NO<E T="52">X</E>reduction of 12,877 tpy, resulting in an additional 13.0 dv cumulative improvement in all 14 Class I areas. See appendix D-7 of the Oregon Regional Haze SIP submittal.</P>
        <P>
          <E T="03">Significant contribution to visibility impairment from natural sources:</E>The emission data in Chapter 8 of the SIP submittal demonstrate that there are major contributions of Organic Carbon (OC), Elemental Carbon (EC), PM<E T="52">2.5</E>, and coarse particulate matter (coarse PM) from wildfires and windblown dust to the total state inventory for these species. In 2002, OC from wildfires constituted 69% of the total state's OC emission inventory, and EC from wildfires constituted 61% of the state's EC emission inventory. Also in 2002, windblown dust constituted 26% of the Oregon's total PM<E T="52">2.5</E>inventory, and constituted 61% of the coarse PM inventory. Based on CMAQ modeling results shown in Chapter 9 of the SIP submittal, OC and PM<E T="52">2.5</E>from wildfires, and PM<E T="52">2.5</E>and coarse PM from windblown dust, had significant to substantial impacts on visibility in Oregon Class I areas on the 20% worst days in 2002. The contribution of natural fires to visibility impairment from OC in Oregon Class I areas ranges from about 15% at the Mt. Hood Class I area to about 95% at the Kalmiopsis Class I area. Windblown dust and wildfires combined contribute from about 10% to 90% of the PM<E T="52">2.5</E>measured ambient air concentrations in the Oregon Class I areas, and windblown dust and wildfires combined contribute from about 30% to 95% of the coarse PM measured in Oregon Class I areas. Since the emissions from these natural sources are uncontrollable, and are projected to remain at 2002 baseline levels through 2018, emissions from these sources will continue to have major visibility impacts on Oregon Class I areas, prevent visibility improvement from achieving the URP, and increase the percent contribution to visibility impairment from uncontrolled sources as concentrations of pollutants from controlled sources decrease.</P>
        <P>
          <E T="03">Evidence that offshore marine shipping emissions affect ability to meet the 2018 URP goal:</E>ODEQ found that marine vessel emissions (primarily SO<E T="52">2</E>and NO<E T="52">X</E>) are a significant contributor to haze in Oregon Class I areas, and significantly affect Oregon's ability to meet its 2018 URP milestones. The PSAT and WEP results in the Oregon SIP submittal Chapter 9 show that offshore marine emissions are a significant contributor to visibility impairment in the Kalmiopsis Class I area and the seven Oregon Class I areas in the Cascade Mountains. Marine vessel emissions are included in the “Pacific offshore” portion of the pie charts shown in Figures 9.2.1-1 through 9.2.1-5 of the SIP submittal. According to the emission inventory in Chapter 8 of the Oregon SIP submittal, marine vessel emissions constitute 56% of the total SO<E T="52">2</E>and 31% of the total NO<E T="52">X</E>inventory for the State of Oregon for 2002. As discussed further in the long term strategy portion of the submittal, Oregon has only limited ability to regulate offshore marine emissions and the Pacific offshore marine vessel emissions are currently beyond Oregon's regulatory authority.</P>
        <P>
          <E T="03">ODEQ's determination that it will achieve significant reductions of</E>SO<E T="52">2</E>and NO<E T="52">X</E>emissions by 2018: Oregon explained that it will achieve significant reduction of SO<E T="52">2</E>and NO<E T="52">X</E>emissions from anthropogenic sources in Oregon by 2018, primarily due to existing Federal rules that control SO<E T="52">2</E>and NO<E T="52">X</E>emissions from mobile sources. See section 11.4.3 of the SIP submittal. Based on the WEP analyses of SO<E T="52">2</E>and NO<E T="52">X</E>emissions in 2018, SO<E T="52">2</E>emissions from sources upwind of the Class I areas in Oregon are projected to decrease by 33% to 46%, and upwind emissions of NO<E T="52">X</E>are projected to decrease by 28% to 48% on the 20% worst days compared to the 2002 baseline. These results are shown in Tables 11.4.2-2 and 11.4.2-3 of the SIP submittal. As a result of this reduction in SO<E T="52">2</E>and NO<E T="52">X</E>emissions, the CMAQ regional visibility modeling results project a 4% to 18% improvement in visibility in Oregon Class I areas due to reductions in SO<E T="52">2</E>emissions, and projects a 27% to 58% improvement in visibility in the Oregon Class I areas from reductions in NO<E T="52">2</E>emissions. See section 11.4.2 of the SIP submittal.</P>
        <HD SOURCE="HD3">3. EPA's Determination Whether the SIP Meets 40 CFR 51.308(d)(1)</HD>
        <P>In a previous action, EPA approved Oregon's determination of baseline and natural visibility conditions in each Class I area in Oregon. See 76 FR 38997. The linear progress from baseline visibility to natural visibility in 2064 defines the URP. The `2018 URP' is the rate of progress to be achieved by 2018 in order to stay on track to achieve natural conditions by 2064. In reviewing the Oregon SIP submittal, EPA independently evaluated whether there are reasonable control measures available for sources located within Oregon's regulatory jurisdiction that would achieve further progress toward achieving the 2018 URP.</P>

        <P>We began this evaluation using a screening methodology called “Q/d” to determine which stationary (point) sources would be candidates for<PRTPAGE P="30464"/>controls under reasonable progress. The value Q/d is the ratio of the mathematical sum of actual SO<E T="52">2</E>, NO<E T="52">X</E>and PM emissions in tpy, denoted as “Q”, divided by the distance (in kilometers, denoted as “d”) of the point source to the nearest Class I area. A high Q/d would indicate the likelihood of the source causing or contributing to impairment in that Class I area.</P>
        <P>To determine the Q/d value that would provide assurance that a source would, or would not, cause or contribute to impairment in any Class I area, we considered the modeled visibility impacts from the CALPUFF modeling used to determine the BART-eligible sources subject to BART in EPA Region 10 and the distance of the source to the nearest Class I area. There were 19 BART-eligible sources used in this analysis. See memorandum to the files from Keith Rose, EPA Region 10, dated March 21, 2012, for this analysis. All sources with a Q/d ratio of less than 26.1 had visibility impacts of less than 0.5 dv. The resultant average of the range is about 0.3 dv, which is more conservative than the 0.5 dv that was used in determining which sources would be subject-to-BART under the federal BART regulations. Since the threshold is more conservative than the subject-to-BART threshold, we believe that a Q/d value of 20 is reasonable for determining which point sources the State should consider for the reasonable progress analysis.</P>
        <P>Next, EPA determined the Q/d ratio at all non-BART point sources in Oregon based on information in the EPA National Emission Inventory database for emissions for point sources in 2005. Based on the 2005 EPA National Emission Inventory Database, six of the largest non-BART point sources and their Q/d values are: Roseburg Forest Products (16.9 Q/d), Co-Gen Co. LLC (15.5 Q/d), Gas Transmission Northwest Corporation (14.0 Q/d), Weyerhaeuser Company, Albany (13.1 Q/d), Boise Cascade Corporation, La Grande (12.7 Q/d), and Boise Cascade Corporation, Elgin (11.5 Q/d). Since all of these sources have Q/d values below 20, EPA believes that their impacts on nearby Class I areas are expected to be less than 0.5 dv. Thus, EPA agrees with Oregon's conclusion that additional controls of non-BART point sources for reasonable progress purposes are not reasonable in the first planning period, because even though there are cost effective controls identified, visibility improvement is anticipated to be relatively small.</P>
        <P>EPA also considered control measures for anthropogenic fire (prescribed forest fire and agricultural fire). Oregon already operates a robust enhanced smoke management program for prescribed forest fire and agricultural burning (see description of Oregon's smoke management and agricultural burning programs in section G.5 below). There are no other source categories of smoke that appear to emit visibility impairing pollutants sufficient to warrant consideration for additional control at this time.</P>

        <P>In regard to the impact of offshore marine shipping emissions, ODEQ did not consider potential improvements in visibility its Class I areas due to amendments adopted by the International Maritime Organization (IMO) in October 2008. See<E T="03">http://www.imo.org/blast/mainframe.asp?topic_id=233.</E>These amendments, known as the Annex VI amendments specify: (1) New fuel quality requirements for commercial marine vessels beginning from July 2010, (2) Tier II and III NO<E T="52">X</E>emission standards for new commercial marine engines, and (3) Tier I NO<E T="52">X</E>requirements for existing pre-2000 commercial marine engines. The Annex VI amendments designate waters within 200 miles of the North American coast as an emission control area, including waters offshore of Oregon. Even though the effects of IMO Annex VI amendments were not evaluated in the Oregon SIP submittal, EPA believes that visibility impacts from marine vessel emissions will decrease by 2018 when the requirements of the Annex VI amendments are fully implemented. Because these reductions were not included in the CMAQ or WEP analyses conducted by WRAP for Oregon, the specific visibility improvements cannot be quantified at this time, but they will likely result in further visibility improvements in the Oregon Class I areas located near the coast and in the Cascade Mountains.</P>
        <P>As explained in the EPA's RGP Guidance, the 2018 URP estimate is not a presumptive target and the State's RPGs may be lesser, greater or equivalent to the glide path. The glide path to 2064 represents a rate of progress which states must use for analytical comparison to the amount of progress they expect to achieve. EPA believes the RPGs established by Oregon for the Class I areas in Oregon, although not achieving the URP, are reasonable when considering that significant visibility improvement is expected from BART controls for Boardman and other point sources, additional controls on other point sources and other source categories would not result in significant visibility improvement, and the significant visibility impacts due to uncontrollable natural fire and significant impacts from off shore marine emissions. Consequently, we propose to find that the State has demonstrated that its 2018 RPGs are reasonable and consistent with 40 CFR 51.308(d)(1) and 51.308(d)(1)(ii).</P>
        <HD SOURCE="HD2">G. Long Term Strategy</HD>
        <P>The Long Term Strategy (LTS) required by 40 CFR 51.308(d)(3) is a compilation of all existing and anticipated new air pollution control measures. The LTS must include “enforceable emission limitations, compliance schedules, and other measures as necessary to achieve the reasonable progress goals” for all Class I areas within or affected by emissions from the State. 40 CFR 51.308(d)(3). In developing its LTS, Oregon considered all the factors required for developing a LTS identified in the RHR. These factors included: (1) Ongoing Air Pollution Control Programs, (2) Measures to Mitigate Impacts of Construction Activities, (3) Emission Limitations and Schedules for Compliance, (4) Source Retirement and Replacement Schedules, (5) Smoke Management Techniques for Agricultural and Forestry Burning, and (6) Enforceability of Emission Limitations and Control Measures. A summary of how Oregon is addressing each of these factors in its LTS is provided below.</P>
        <HD SOURCE="HD3">1. Ongoing Air Pollution Control Programs</HD>
        <HD SOURCE="HD3">a. Prevention of Significant Deterioration/New Source Review Rules</HD>

        <P>In Oregon, a primary regulatory tool for addressing visibility impairment from industrial sources is the Prevention of Significant Deterioration (PSD) New Source Review rules. The SIP approved Oregon PSD rules protect visibility in Class I areas from new industrial sources, and major changes to existing sources, by requiring a visibility impact assessment (OAR 340, Division 225). Specifically, OAR 340-225-0070 describes the process for conducting a visibility impact assessment and review by ODEQ, as well as the process for conducting modeling to determine visibility impacts, which is used to determine if a source causes a significant impairment in any Class I area. Any new major source or major modifications within a distance of 300 km of a Class I area that are found through modeling to cause significant visibility impairment will not be issued an air quality permit by Oregon unless the impact is mitigated. The level of significance is defined as an increase in<PRTPAGE P="30465"/>visibility impairment above natural background of 5%.</P>
        <HD SOURCE="HD3">b. Reasonably Attributable Visibility Impairment BART</HD>
        <P>Oregon has adopted the RAVI BART requirements as part of the Oregon Visibility Protection Plan. RAVI specifies that if the Federal Land Manager certifies that visibility impairment exists in a federal Class I area, Oregon would be required to analyze BART controls and identify BART for any contributing source.</P>
        <HD SOURCE="HD3">c. Oregon's Phase I Visibility Protection Program</HD>
        <P>In 1986, Oregon adopted EPA's Phase I Visibility rule into Oregon Visibility Protection Plan (OAR 340-200-0040). This rule addresses visibility impairment that is “reasonably attributable” to one or small group of sources, in relatively close proximity to a Class I area. The Oregon Visibility Protection Plan contains short and long-term strategies to address reasonably attributable impairment, including PSD new source review rules along with seasonal protection of visibility during the summer months from prescribed forestry burning and agricultural field burning. Air quality monitoring showed that during the summer months in the northern and central Cascades, visibility was frequently impaired by smoke or “plume blight” from Willamette Valley agricultural open field burning and forest prescribed burning. Monitoring also demonstrated that there was summer visibility impairment in the Eagle Cap Wilderness area caused by Union County agricultural open field burning, and that field burning in Jefferson County was contributing to summer visibility impairment in the central Oregon Cascade Class I areas. As a result, ODEQ adopted specific visibility control strategies for these areas into the original plan. These included smoke management requirements to avoid Class I visibility impacts from Willamette Valley, Jefferson County and Union County open field burning, and from forest prescribed burning in parts of Western Oregon. The Jefferson and Union County smoke management programs adopted provisions to avoid any burning upwind of nearby Class I areas. The Oregon Department of Forestry Smoke Management Program was revised to shift prescribed burning in Western Oregon from the summer to the spring and fall, as part of an effort to eliminate burning during the summer. Oregon also explained that it made additional revisions and improvements to the Visibility Protection Plan in 2002 as part of the Oregon Visibility Protection Plan Reasonable Progress Report, March 5, 2002. See SIP Submittal section 12.5.5.1 for additional discussion of the Oregon Phase I Visibility Protection Program.</P>
        <HD SOURCE="HD3">d. Implementation of State and Federal Mobile Source regulations</HD>
        <P>Mobile source annual emissions show a major decrease in NO<E T="52">X</E>and SO<E T="52">2</E>in Oregon from 2002 to 2018, due to numerous “on the books” federal mobile source regulations for on-road mobile sources as well as non-road mobile sources and equipment. These rules are expected to reduce SO<E T="52">2</E>emissions as well as NO<E T="52">X</E>and PM emissions. In 2005, Oregon adopted California's emissions standards for light and medium duty vehicles as the Oregon Low Emission Vehicle Program. This program took effect beginning with 2009 model year vehicles. Although the primary purpose was to reduce greenhouse gas emissions, these rules will also decrease NO<E T="52">X</E>and PM emissions from light and medium duty vehicles. In 2007, the Oregon Legislature authorized a clean diesel program that included funding for a grant/loan program to retrofit existing diesel engines with exhaust controls, repowering non-road diesel engines with biodiesel, and scrapping older engines. ODEQ projects that with normal turnover bringing new, cleaner engines into the fleet, there will be a 60% reduction in diesel PM<E T="52">2.5</E>emissions by 2018.</P>
        <HD SOURCE="HD3">e. On-Going Implementation of Programs To Meet PM<E T="52">10</E>NAAQS</HD>
        <P>In Oregon there are six communities that are PM<E T="52">10</E>maintenance areas and two communities that are nonattainment areas under the PM<E T="52">10</E>NAAQS. All of these communities are located within 20 to 50 miles of one or more Class I area, and have the potential to impact visibility in these Class I areas. As a result of being designated as PM<E T="52">10</E>nonattainment areas, these communities have made significant reductions in PM<E T="52">10</E>emissions in the last 10 years by adopting control strategies to reduce PM<E T="52">10</E>emissions from sources such as residential woodstoves and outdoor burning. For example, ODEQ's federally enforceable wood-heating rules (OAR 340, Division 262) require woodstove curtailment programs in each of these communities, and specify that only certified woodstoves be sold in the state. Oregon's wood-heating rules have been very effective in reducing PM<E T="52">10</E>levels during the heating months in these communities.</P>
        <HD SOURCE="HD3">2. Measures To Mitigate the Impacts of Construction Activities</HD>
        <P>Oregon's rules addressing impacts from construction activities are primarily found in the OAR 340, Division 208. OAR 340-208-0210 addresses “fugitive emissions” from a variety of sources, and would be the most applicable regulation to construction activities. This regulation requires “reasonable precautions” be taken to prevent particulate matter from becoming airborne from activities such as construction projects. Actions that can be taken to control particulate emissions include the use of water or chemicals to control dust from demolition, construction operations, unpaved roads at construction sites, and material stockpiles, and containment of sandblasting operations.</P>
        <HD SOURCE="HD3">3. Emission Limitations and Schedules of Compliance</HD>
        <P>Emission limits and compliance schedules for stationary sources are specified under Oregon and federal regulations in accordance with the CAA. Additionally as discussed above, the emission limits and schedules of compliance for those sources with BART limits, and sources taking FEPLs, are described in Chapter 10 of the SIP submittal and in our previous action approving these limits and schedules.</P>
        <HD SOURCE="HD3">4. Source Retirement and Replacement Schedules</HD>
        <P>Oregon's LTS contains an evaluation of non-BART sources, as described below. This evaluation will include a review of all existing industrial sources to identify scheduled shutdowns, retirements in upcoming years, or replacement schedules, such as planned installation of new control equipment to meet other regulations or routine equipment replacement or modernization.</P>
        <HD SOURCE="HD3">5. Smoke Management Techniques for Agricultural and Forestry Burning</HD>

        <P>Smoke from agricultural and forestry burning are major contributors to visibility impairment in Oregon Class I areas. Organic and elemental carbon particulates are the dominant pollutant species contributing to haze in Oregon Class I areas on the 20% worst days. Much of these particulates are from wildfires, which fluctuates significantly from year to year, but there is also a significant contribution from controlled agricultural and forestry burning. Of the controlled burning, prescribed forestry burning represents the largest source, at approximately 58% of the total burning in the state, and agricultural burning<PRTPAGE P="30466"/>(including open field burning) is approximately 11%.</P>
        <P>In Oregon, prescribed forest burning and agricultural burning is regulated under the Oregon Smoke Management Plan. On November 2, 2007, the Oregon Department of Forestry (ODF) adopted revisions to this plan which included new visibility protection provisions that incorporated references to the Oregon Regional Haze Plan and the Enhanced Smoke Management Program (ESMP) criteria in the RHR section 309. Oregon's current smoke management programs, operated by Oregon Department of Agriculture (ODA) and ODF, includes the following ESMP elements: (1) Taking actions to minimize smoke emissions, (2) burning only during appropriate weather conditions in order to avoid smoke impacts in urban areas, (3) encourages using alternatives to fire, and includes a comprehensive reference manual of alternatives to prescribed fire, (4) a requirement that burning permits must be obtained prior to burning, and (5) a burn authorization process that involves the issuance of smoke management forecasts and burning instructions. Agricultural burning in the Willamette Valley is further controlled under a smoke management program operated by ODA. Field burning in Jefferson and Union counties is controlled through smoke management programs established by county ordinance and operated at that level. These county programs have requirements to avoid burning upwind of nearby Class I areas when smoke would impair visibility.</P>
        <HD SOURCE="HD3">6. Enforceability of Emission Limitations and Control Measures</HD>
        <P>Oregon has ensured that all emission limitations and control measures used to meet reasonable progress goals are enforceable, and pursuant to OAR 340-200-0040, are included in the State of Oregon Clean Air Act Implementation Plan. ODEQ has adopted the Oregon Regional Haze Plan, including the Oregon BART rules, into the SIP submittal, which ensures that all elements in the plan are enforceable.</P>
        <P>In addition to six factors discussed above, Oregon indicated a number of additional measures it intends to take in the future as part of its long term strategy. As described in additional detail in the SIP submittal section 12.6, the State intends to: (1) Further evaluate controls for Non-BART Sources, (2) evaluate prescribed burning contribution to haze and possible controls, (3) evaluate the contribution from general outdoor open burning, and (4) evaluate the contribution from rangeland burning. EPA acknowledges these additional measures and analysis that Oregon is planning to conduct, but is not necessary to take these specific activities into account at this time in evaluating whether the enforceable measures contained in the State's LTS satisfy the RHR requirement.</P>
        <P>EPA is proposing to find that Oregon adequately addressed the RHR requirements in developing its LTS. The LTS provides sufficient documentation to ensure that Oregon will meet its emission reduction obligations for all Class I areas it affects in the first planning period. Oregon relied on monitoring, emission inventories and modeling information from the WRAP as the technical basis for its LTS. Coordination and consultation occurred with other states through the WRAP, in which all western states participated in developing the technical analysis upon which their SIPs are based. Oregon's analysis included all anthropogenic sources of visibility impairment including major and minor stationary sources, mobile sources, and area sources. The anticipated net effect on visibility over the first planning period due to changes in point, area, and mobile source emissions is an improvement in visibility in all Class I areas in Oregon on the worst 20% days, and no degradation of visibility on the 20% best days.</P>
        <HD SOURCE="HD2">H. Monitoring Strategy and Other Implementation Plan Requirements</HD>
        <P>The primary monitoring network for regional haze in Oregon is the IMPROVE network. There are currently IMPROVE sites in the Mt. Hood Wilderness area, Three Sister Wilderness area, Crater Lake National Park, Kalmiopsis Wilderness area, Strawberry Mountain Wilderness area, and Hells Canyon Wilderness area. IMPROVE monitoring data from 2000-2004 serves as the baseline for the regional haze program, and is relied upon in the Oregon Regional Haze submittal. Oregon commits to rely on the IMPROVE network for complying with the regional haze monitoring requirement in EPA's RHR for the current and future regional haze implementation periods. See section 4.4 of the SIP submittal. Data produced by the IMPROVE monitoring network will be used for preparing the five-year progress reports and the 10-year SIP revisions, each of which relies on analysis of the preceding five years of data.</P>
        <HD SOURCE="HD2">I. Consultation With States and Federal Land Managers</HD>
        <P>Through the WRAP, member states and Tribes worked extensively with the FLMs from the U.S. Departments of the Interior and Agriculture to develop technical analyses that support the regional haze SIPs for the WRAP states. The proposed Regional Haze plan for Oregon was provided to the FLM for comment on November 11, 2008, the start of a 60-day comment period. See section 13.1 of the SIP submittal. Oregon also consulted with the States of Washington, Idaho, Nevada, and California.</P>
        <P>Oregon commits to continued consultation with the FLMs and the other states as part of the continued implementation of the plan and for future progress reports and revisions. This continuing consultation process will provide the opportunity for on-going opportunities to address a host of items including, for example, the implementation of emission control programs, changes to the monitoring strategy or monitoring locations, status of state actions to meet commitments for future assessments or rulemaking, and work on the five-year reviews and ten-year revisions. Additionally, Oregon consulted with the tribes during development of their plan through the WRAP activities and direct outreach to the tribes.</P>
        <HD SOURCE="HD2">J. Periodic SIP Revisions and Five-Year Progress Reports</HD>
        <P>Section 51.308(f) of the RHR requires that the regional haze plans be revised and submitted to EPA by July 31, 2018 and every 10 years thereafter. 40 CFR 51.308(g) requires the state to submit a progress report to EPA every five years evaluating progress towards the reasonable progress goals for each Class I area in the State and each Class I area located outside the State which may be affected by emissions from within the State. Oregon has committed to evaluate and reassess its Regional Haze plan and to provide a Regional Haze SIP revision by July 31, 2018 for the next 10 year planning cycle. See section 13.5 of the SIP submittal. Oregon has also committed to submitting the five-year review and report on the Regional Haze plan. See section 13.1 of the SIP submittal.</P>
        <HD SOURCE="HD1">IV. What action is EPA proposing?</HD>

        <P>On June 21, 2011, EPA approved portions of the Oregon Regional Haze Plan submitted December 10, 2010, as supplemented on February 1, 2011, including the Oregon's emission inventory, determination of baseline and natural conditions and the BART controls and emission limits. Today, for the reasons explained above, EPA is proposing to approve the remaining parts of the Oregon Regional Haze submittal as meeting the requirements<PRTPAGE P="30467"/>set forth in section 169A and 169B of the Act and in 40 CFR 51.300-308 regarding regional haze.</P>
        <HD SOURCE="HD1">V. Oregon Notice Provision</HD>
        <P>Oregon Revised Statute 468.126, prohibits ODEQ from imposing a penalty for violation of an air, water, or solid waste permit unless the source has been provided five days' advanced written notice of the violation and has not come into compliance or submitted a compliance schedule within that five-day period. By its terms, the statute does not apply to Oregon's Title V program or to any program if application of the notice provision would disqualify the program from Federal delegation. Oregon has previously confirmed that, because application of the notice provision would preclude EPA approval of the Oregon SIP, no advance notice is required for violation of SIP requirements.</P>
        <HD SOURCE="HD1">VI. Scope of Action</HD>
        <P>Oregon has not demonstrated authority to implement and enforce the Oregon Administrative rules within “Indian Country” as defined in 18 U.S.C. 1151. “Indian country” is defined under 18 U.S.C. 1151 as: (1) All land within the limits of any Indian reservation under the jurisdiction of the United States Government, notwithstanding the issuance of any patent, and including rights-of-way running through the reservation, (2) all dependent Indian communities within the borders of the United States, whether within the original or subsequently acquired territory thereof, and whether within or without the limits of a State, and (3) all Indian allotments, the Indian titles to which have not been extinguished, including rights-of-way running through the same. Under this definition, EPA treats as reservations trust lands validly set aside for the use of a Tribe even if the trust lands have not been formally designated as a reservation. Therefore, this SIP approval does not extend to “Indian Country” in Oregon. See CAA sections 110(a)(2)(A) (SIP shall include enforceable emission limits), 110(a)(2)(E)(i) (State must have adequate authority under State law to carry out SIP), and 172(c)(6) (nonattainment SIPs shall include enforceable emission limits).</P>
        <HD SOURCE="HD1">VII. 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, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994). In addition, this rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the rule neither imposes substantial direct compliance costs on tribal governments, nor preempts tribal law. Therefore, the requirements of sections 5(b) and 5(c) of the Executive Order do not apply to this rule. Consistent with EPA policy, EPA nonetheless provided a consultation opportunity to Tribes in Idaho, Oregon and Washington in letters dated January 14, 2011. EPA received one request for consultation, and we have followed-up with that Tribe.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Air pollution control, Environmental protection, Intergovernmental relations, Nitrogen dioxide, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Visibility, and Volatile organic compounds.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: May 14, 2012.</DATED>
          <NAME>Michelle L. Pirzadeh,</NAME>
          <TITLE>Acting Regional Administrator, Region 10.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12490 Filed 5-22-12; 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-R10-OAR-2012-0078, FRL-9675-5]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Implementation Plans; State of Washington; Regional Haze State Implementation Plan</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 the Best Available Retrofit Technology (BART) determination for the TransAlta Centralia Generation LLC coal-fired power plant in Centralia, Washington (TransAlta). The Washington State Department of Ecology (Ecology) submitted its Regional Haze State Implementation Plan (SIP) on December 22, 2010 to meet the requirements of 40 CFR 50.308. On December 29, 2011 Ecology submitted an update to the SIP submittal containing a revised and updated BART determination for TransAlta. EPA plans to act on the remaining Regional Haze SIP elements for Washington in the near future.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received at the address below on or before June 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID No. EPA-R10-OAR-2012-0078 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: R10-Public_Comments@epa.gov.</E>
          </P>
          <P>•<E T="03">Mail:</E>Steve Body, EPA Region 10, Suite 900, Office of Air, Waste and Toxics, 1200 Sixth Avenue, Seattle, WA 98101.</P>
          <P>•<E T="03">Hand Delivery:</E>EPA Region 10, 1200 Sixth Avenue, Suite 900, Seattle, WA 98101. Attention: Steve Body,<PRTPAGE P="30468"/>Office of Air, Waste and Toxics, AWT-107. Such deliveries are only accepted during 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-R10-OAR-2012-0078. 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 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 form. Publicly available docket materials are available either electronically at<E T="03">www.regulations.gov</E>or in hard copy at the Office of Air, Waste and Toxics, EPA Region 10, 1200 Sixth Avenue, Seattle, WA 98101. EPA requests that if at all possible, you contact the individual listed below to view a hard copy of the docket.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Steve Body at telephone number (206) 553-0782,<E T="03">body.steve@epa.gov</E>, or the above EPA, Region 10 address.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document whenever “we,” “us,” or “our” is used, we mean the EPA. Information is organized as follows:</P>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Background for EPA's Proposed Action</FP>
          <FP SOURCE="FP1-2">A. Definition of Regional Haze</FP>
          <FP SOURCE="FP1-2">B. Regional Haze Rules and Regulations</FP>
          <FP SOURCE="FP-2">II. Requirements for Regional Haze SIPs</FP>
          <FP SOURCE="FP1-2">A. The CAA and the Regional Haze Rule</FP>
          <FP SOURCE="FP1-2">B. Best Available Retrofit Technology</FP>
          <FP SOURCE="FP-2">III. BART Determination for TransAlta</FP>
          <FP SOURCE="FP1-2">A. Washington's BART Determination for TransAlta</FP>
          <FP SOURCE="FP1-2">1. TransAlta is Subject to BART</FP>
          <FP SOURCE="FP1-2">2. BART Evaluation and Determination</FP>
          <FP SOURCE="FP1-2">B. EPA's Assessment of the State's BART Determination</FP>
          <FP SOURCE="FP-2">IV. What action is EPA proposing?</FP>
          <FP SOURCE="FP-2">V. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background for EPA's Proposed Action</HD>
        <P>In the Clean Air Act (CAA) Amendments of 1977, Congress established a program to protect and improve visibility in the national parks and wilderness areas. See CAA section 169A. Congress amended the visibility provisions in the CAA in 1990 to focus attention on the problem of regional haze. See CAA section 169B. EPA promulgated regulations in 1999 to implement sections 169A and 169B of the Act. These regulations require states to develop and implement plans to ensure reasonable progress toward improving visibility in mandatory Class I Federal areas<SU>1</SU>
          <FTREF/>(Class I areas). 64 FR 35714 (July 1, 1999); see also 70 FR 39104 (July 6, 2005) and 71 FR 60612 (October 13, 2006).</P>
        <FTNT>
          <P>
            <SU>1</SU>Areas designated as mandatory Class I Federal areas consist of national parks exceeding 6,000 acres, wilderness areas and national memorial parks exceeding 5,000 acres, and all international parks that were in existence on August 7, 1977. 42 U.S.C. 7472(a). In accordance with section 169A of the CAA, EPA, in consultation with the Department of Interior, promulgated a list of 156 areas where visibility is identified as an important value. 44 FR 69122 (November 30, 1979). The extent of a mandatory Class I area includes subsequent changes in boundaries, such as park expansions. 42 U.S.C. 7472(a). Although states and tribes may designate as Class I additional areas which they consider to have visibility as an important value, the requirements of the visibility program set forth in section 169A of the CAA apply only to “mandatory Class I Federal areas.” Each mandatory Class I Federal area is the responsibility of a “Federal Land Manager.” 42 U.S.C. 7602(i). When we use the term “Class I area” in this action, we mean a “mandatory Class I Federal area.”</P>
        </FTNT>

        <P>Today EPA is proposing action on the portion of the Regional Haze SIP submission relating to the TransAlta facility by proposing to approve the BART determination for oxides of nitrogen (NO<E T="52">X</E>) emissions from TransAlta. Ecology submitted its Regional Haze SIP on December 22, 2010, to meet the requirements of 40 CFR 50.308. (Regional Haze SIP Submittal) On December 29, 2011, Ecology submitted an update to the SIP submittal containing a revised BART determination for TransAlta. (SIP Supplement) Because the BART determination includes a requirement to begin injection of ammonia or urea by January 1, 2013 and a date of January 31, 2013 for TransAlta to comply with emission limits based on installation and operation of selective non-catalytic reduction (SNCR), EPA has determined that early action on this separate portion of the SIP submittal is appropriate at this time. EPA is still reviewing the remaining portions of the SIP submittal and will take action on the remaining elements in the near future.</P>
        <HD SOURCE="HD2">A. Definition of Regional Haze</HD>

        <P>Regional haze is impairment of visual range or colorization caused by emission of air pollution produced by numerous sources and activities, located across a broad regional area. The sources include, but are not limited to, major and minor stationary sources, mobile sources, and area sources including non-anthropogenic sources. Visibility impairment is primarily caused by fine particulate matter (PM<E T="52">2.5</E>) or secondary aerosol formed in the atmosphere from precursor gasses (e.g., sulfur dioxide (SO<E T="52">2</E>), nitrogen oxides (NO<E T="52">X</E>), and in some cases, ammonia and volatile organic compounds). Atmospheric fine particulate reduces clarity, color, and visual range of visual scenes. Visibility reducing fine particulate is primarily composed of sulfate, nitrate, organic carbon compounds, elemental carbon, and soil dust, and impairs visibility by scattering and absorbing light. Fine particulate can also cause serious health effects and mortality in humans, and contributes to environmental effects such as acid deposition and eutrophication.<SU>2</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>2</SU>See 64 FR at 35715.</P>
        </FTNT>
        <P>Data from the existing visibility monitoring network, the “Interagency Monitoring of Protected Visual Environments” (IMPROVE) monitoring network, show that visibility impairment caused by air pollution occurs virtually all the time at most national parks and wilderness areas. Average visual range in many Class I areas in the Western United States is 100-150 kilometers, or about one-half to two-thirds the visual range that would exist without manmade air pollution.<SU>3</SU>

          <FTREF/>Visibility impairment also varies day-to-day and season-to-season depending on<PRTPAGE P="30469"/>variation in meteorology and emission rates.</P>
        <FTNT>
          <P>
            <SU>3</SU>
            <E T="03">Id.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD2">B. Regional Haze Rules and Regulations</HD>
        <P>In section 169A of the 1977 CAA Amendments, Congress created a program for protecting visibility in the nation's national parks and wilderness areas. This section of the CAA establishes as a national goal the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from manmade air pollution.” CAA section 169A(a)(1). On December 2, 1980, EPA promulgated regulations to address visibility impairment in Class I areas that is “reasonably attributable” to a single source or small group of sources, i.e., “reasonably attributable visibility impairment”. 45 FR 80084. These regulations represented the first phase in addressing visibility impairment. EPA deferred action on regional haze that emanates from a variety of sources until monitoring, modeling and scientific knowledge about the relationships between pollutants and visibility impairment were improved.</P>
        <P>Congress added section 169B to the CAA in 1990 to address regional haze issues. EPA promulgated a rule to address regional haze on July 1, 1999 (64 FR 35713) (the Regional Haze Rule or RHR). The RHR revised the existing visibility regulations to integrate into the regulation provisions addressing regional haze impairment and to establish a comprehensive visibility protection program for Class I areas. The requirements for regional haze, found at 40 CFR 51.308 and 51.309, are included in EPA's visibility protection regulations at 40 CFR 51.300-309. Some of the main elements of the regional haze requirements are summarized in section III of this rulemaking. The requirement to submit a regional haze SIP applies to all 50 states, the District of Columbia and the Virgin Islands.<SU>4</SU>
          <FTREF/>40 CFR 51.308(b) requires states to submit the first implementation plan addressing regional haze visibility impairment no later than December 17, 2007.</P>
        <FTNT>
          <P>
            <SU>4</SU>Albuquerque/Bernalillo County in New Mexico must also submit a regional haze SIP to completely satisfy the requirements of section 110(a)(2)(D) of the CAA for the entire State of New Mexico under the New Mexico Air Quality Control Act (section 74-2-4).</P>
        </FTNT>
        <HD SOURCE="HD1">II. Requirements for Regional Haze SIPs</HD>
        <HD SOURCE="HD2">A. The CAA and the Regional Haze Rule</HD>
        <P>Regional haze SIPs must assure reasonable progress towards the national goal of achieving natural visibility conditions in Class I areas. Section 169A of the CAA and EPA's implementing regulations require states to establish long-term strategies for making reasonable progress toward meeting this goal. Implementation plans must also give specific attention to certain stationary sources that were in existence on August 7, 1977, but were not in operation before August 7, 1962, and require these sources, where appropriate, to install BART controls for the purpose of eliminating or reducing visibility impairment.</P>
        <HD SOURCE="HD2">B. Best Available Retrofit Technology</HD>
        <P>Section 169A of the CAA directs states to evaluate the use of retrofit controls at certain larger, often uncontrolled, older stationary sources in order to address visibility impacts from these sources. Specifically, section 169A(b)(2)(A) of the CAA requires States to revise their SIPs to contain such measures as may be necessary to make reasonable progress towards the natural visibility goal, including a requirement that certain categories of existing major stationary sources<SU>5</SU>
          <FTREF/>built between 1962 and 1977 procure, install, and operate the “Best Available Retrofit Technology” as determined by the state. States are directed to conduct BART determinations for such sources that may be anticipated to cause or contribute to any visibility impairment in a Class I area. Rather than requiring source-specific BART controls, states also have the flexibility to adopt an emissions trading program or other alternative program as long as the alternative provides greater reasonable progress towards improving visibility than BART.</P>
        <FTNT>
          <P>
            <SU>5</SU>The set of “major stationary sources” potentially subject to BART is listed in CAA section 169A(g)(7).</P>
        </FTNT>
        <P>On July 6, 2005, EPA published the<E T="03">Guidelines for BART Determinations Under the Regional Haze Rule</E>at appendix Y to 40 CFR Part 51 (hereinafter referred to as the “BART Guidelines”) to assist states in determining which of their sources should be subject to the BART requirements and in determining appropriate emission limits for each applicable source. 70 FR 39104. In making a BART applicability determination for a fossil fuel-fired electric generating plant with a total generating capacity in excess of 750 megawatts, a state must use the approach set forth in the BART Guidelines. A State is encouraged, but not required, to follow the BART Guidelines in making BART determinations for other types of sources. Regardless of source size or type however, a state must meet the CAA and regulatory requirements for selection of BART, and the state's BART and analysis and determination must be reasonable in light of the overarching purpose of the regional haze program.</P>
        <P>States must address all visibility-impairing pollutants emitted by a source in the BART determination process. The most significant visibility-impairing pollutants are sulfur dioxide, nitrogen oxides, and fine particulate matter. EPA has indicated that states should use their best judgment in determining whether volatile organic compounds or ammonia compounds impair visibility in Class I areas.</P>
        <P>Under the BART Guidelines, States may select and document an exemption threshold value to determine those BART-eligible sources not subject to BART. A BART-eligible source with an impact below the threshold would not be expected to cause or contribute to visibility impairment in any Class I area. Any source with emissions that model above the threshold value would be subject to a BART determination review. The BART Guidelines acknowledge varying circumstances affecting different Class I areas. States should consider the number of emission sources affecting the Class I areas at issue and the magnitude of the individual sources' impacts. Generally, an exemption threshold set by the State should not be higher than 0.5 deciview (dv).</P>
        <P>In their SIPs, States must identify BART-eligible sources that have a visibility impact in any Class I area above the `BART subject' exemption threshold established by the State and thus, subject to BART. States must document their BART control analysis and determination for all sources subject to BART.</P>
        <P>The term “BART-eligible source” used in the BART Guidelines means the collection of individual emission units at a facility that together comprises the BART-eligible source. In making a BART determination, section 169A(g)(2) of the CAA requires that States consider the following factors: (1) The costs of compliance, (2) the energy and non-air quality environmental impacts of compliance, (3) any existing pollution control technology in use at the source, (4) the remaining useful life of the source, and (5) the degree of improvement in visibility which may reasonably be anticipated to result from the use of such technology. See also 40 CFR 51.308(e)(1)(ii)(A).</P>

        <P>The regional haze SIP must include source-specific BART emission limits and compliance schedules for each<PRTPAGE P="30470"/>source subject to BART. Once a State has made its BART determination, the BART controls must be installed and in operation as expeditiously as practicable, but no later than five years after the date EPA approves the regional haze SIP. CAA section 169(g)(4) and 40 CFR 51.308(e)(1)(iv). In addition to what is required by the RHR, general SIP requirements mandate that the SIP must also include all regulatory requirements related to monitoring, recordkeeping, and reporting for the BART controls on the source. States have the flexibility to choose the type of control measures they will use to meet the requirements of BART.</P>
        <HD SOURCE="HD1">III. BART Determination for TransAlta</HD>
        <HD SOURCE="HD2">A. Washington's BART Determination for TransAlta</HD>
        <HD SOURCE="HD3">1. TransAlta is Subject to BART</HD>

        <P>The TransAlta Centralia Generation LLC power plant, located in Centralia, Washington, is a two unit coal-fired power plant rated at 702.5 MW each, when burning coal from the Centralia coalfield as originally designed. The units now burn coal from the Wyoming Powder River Basin and are rated at 670 MW each. The units were commissioned in 1971 and 1972, are one of the 26 BART source categories specified in 40 CFR 51.301 and emit over 250 tons per year (t/y) of an air pollutant. Modeling to determine whether TransAlta would be subject to BART under the RHR demonstrated TransAlta had a maximum impact of 5.5 dv at Mt. Rainier National Park from both SO<E T="52">2</E>and NO<E T="52">X</E>emissions. This impact is above the threshold used by Washington for determining those BART eligible sources subject to BART. These units are BART-eligible and subject to BART as described in the SIP submittal, Supplement Appendix L.</P>

        <P>On June 11, 2003, EPA approved a revision to the Washington SIP for visibility (Visibility SIP) which included controls for NO<E T="52">X</E>, SO<E T="52">2</E>, and particulate matter for TransAlta. 68 FR 34821. In the action approving these provisions, EPA determined the required controls to be BART for SO<E T="52">2</E>and PM. Alstrom concentric low NO<E T="52">X</E>burners with overfire air was required to control NO<E T="52">X</E>emissions with emission limits of 0.302 lb/mmBtu for Unit #1 and 0.306 lb/mmBtu for Unit #2. EPA found these controls did not represent BART for NO<E T="52">X</E>in 2003 and the<E T="04">Federal Register</E>notice accompanying that action stated that a BART determination for NO<E T="52">X</E>was not being made at that time. Specifically we explained “* * * while the NO<E T="52">X</E>emission limitation may have represented BART when the emission limits in the [reasonably available control technology] RACT Order were negotiated, recent technology advancements have been made. EPA cannot now say that the emission limitations in the SWAPCA RACT Order for NO<E T="52">X</E>represent BART. However EPA is approving the emission limits for NO<E T="52">X</E>as a strengthening of the SIP for visibility purposes.” Thus, to date there is not a SIP approved BART determination for NO<E T="52">X</E>emissions at TransAlta. 68 FR 34824.</P>
        <HD SOURCE="HD3">2. BART Evaluation and Determination</HD>
        <P>The TransAlta NO<E T="52">X</E>BART determination to comply with 40 CFR 51.308(e) was submitted to EPA in two separate submittals. The first submittal was included in the December 22, 2010 Regional Haze SIP submittal. Washington subsequently reevaluated its determination for TransAlta and on December 29, 2011, submitted an update to the Regional Haze SIP (referred to in this notice as the SIP Supplement). This update included a revised NO<E T="52">X</E>BART determination, the First Revision Order No. 6426 (hereafter referred to as the Revised BART Compliance Order) and technical analysis document for the TransAlta power plant and the related parts of the Regional Haze SIP. The revised BART determination and Revised BART Compliance Order establish a NO<E T="52">X</E>emission limit of 0.21 lb/mmbtu, and among other things, requires selective noncatalytic reduction (SNCR) to be installed by January 1, 2013. The Revised BART compliance order also provides that one coal unit must cease burning coal by December 31, 2020, and the other coal unit cease burning coal by December 31, 2025, unless Ecology determines that State or Federal law requires SCR to be installed on either unit.</P>

        <P>Additionally, by way of background, on May 21, 2009, the Governor issued Executive Order 09-05 which contained provisions for TransAlta regarding compliance with Washington State's greenhouse gas (GHG) emission performance standards. Subsequently, the Executive Order was superseded by Washington State Senate Bill 5769 (also known as E2SSB 5769), which was signed by the Governor on April 29, 2011 and became effective August 22, 2011, and provided that the plant owners must bring the two coal-fired units into compliance with the GHG performance standards by specified dates. See SIP Supplement L-45-46 and Revised Code of Washington (RCW) Chapter 80-80. The law requires that one of the TransAlta units comply with the GHG performance standards by December 31, 2020 and the other by December 31, 2025. See RCW 80.80.040. As documented in public testimony by the plant owners, State Legislature, environmental organizations and the Governor's Office, the coal-fired units at the TransAlta plant must be decommissioned in order to comply with these new GHG standards. Accordingly, one unit will be decommissioned no later than December 31, 2020 and the second unit will be decommissioned by December 31, 2025. TransAlta is also required to install SNCR by January 1, 2013, to control NO<E T="52">X</E>emissions. RCW 80.80.100. Additionally, the law states that the requirement to meet the GHG performance standard does not apply if Ecology determines that State or Federal law requires selective catalytic reduction (SCR) to be installed on either coal-fired unit. See Section 106 of Chapter 180, Laws of 2011 and SIP Supplement L-46, see also RCW 80.80.040.</P>
        <P>In conducting its BART evaluation for TransAlta, Ecology followed the steps outlined in EPA BART Guidelines at 40 CFR 51, Appendix Y. Briefly this evaluation included the: (1) Identification of all available retrofit technology, (2) elimination of technically infeasible technology, (3) identification of control efficiencies of feasible technology, (4) evaluation of impacts and document results, and (5) evaluation of visibility impacts.</P>

        <P>The Visibility SIP submittal for our June 11, 2003 approval identified a long list of available NO<E T="52">X</E>control technologies which were evaluated for technical feasibility at the TransAlta plant. That list was narrowed to the technically feasible controls which Ecology used as a starting point for the current BART determination. See SIP Supplement L-79 (Table B-1 Nitrogen Oxide Controls evaluated in the 1997 Reasonable Achievable Control Technology Process). Ecology evaluated, or reevaluated, a number of the NO<E T="52">X</E>control technologies for TransAlta including: low NO<E T="52">X</E>burners with close coupled and over-fired air (LNC3); Flex Fuel<SU>6</SU>

          <FTREF/>; SCR; SNCR; Rotating over-fire air (ROFA)/Rota mix; neutral net technology; and natural gas re-burning. The State found ROFA is infeasible because it has never been tested nor demonstrated in a large tangentially<PRTPAGE P="30471"/>fired boiler of this size. The State also determined that “Neutral Net” technology likewise has not been guaranteed to perform and reduce emissions and there are other comparable proven technologies available. The State also found that natural gas re-burning is not listed in the EPA RBLC for use in any coal fired boilers and that it would be less efficient at controlling NO<E T="52">X</E>emissions than the Flex-Fuel plus SNCR as required by Washington's Legislature.</P>
        <FTNT>
          <P>
            <SU>6</SU>Flex Fuel refers to the switch from Centralia, Washington coal to coal from the Power River Basin in Wyoming. Powder River Basin coal has a higher heat content requiring less fuel for the same heat extraction, as well as a lower nitrogen and sulfur content than coal from Centralia. Flex Fuel also required changes to boiler design to accommodate Powder River Basin coal.)</P>
        </FTNT>

        <P>Washington evaluated the cost effectiveness of the technically feasible control options for TransAlta. It found that Flex Fuel alone will reduce NO<E T="52">X</E>emissions by 3,139 t/y and will also reduce SO<E T="52">2</E>emissions by 1,287 t/y. See SIP Supplement L-67. Based on evaluation of installations at other large tangentially fired power plants, the State determined that SNCR plus Flex Fuel is expected to achieve a 20 to 25% reduction in NO<E T="52">X</E>emissions. The State estimated capital costs for SNCR plus Flex Fuel at TransAlta to be $135 million and annual operating costs of $17.3 million based on an emission limit of 0.21 lb/mmbtu. The retrofit costs for TransAlta will be higher than other similarly sized power plants due to boiler design. The State also calculated the SNCR plus Flex Fuel cost effectiveness to be $2,162/t based on a 25% control efficiency and a 8,022 t/y reduction in NO<E T="52">X</E>emissions. See SIP Supplement L-71.</P>

        <P>Among the other technologies considered, Washington also evaluated SCR which would provide a 95% NO<E T="52">X</E>control efficiency. The State considered two scenarios; one including SCR on only one unit and another scenario with SCR on both units. Using a presumptive BART emission limit of 0.15 lb NO<E T="52">X</E>/mmbtu, they estimated the emission reductions for SCR on one unit to be 4,364 t/y and 7,855 t/y for SCR on both units. The capital cost for one unit was estimated at $290.12 million and about double that for SCR on both units. Washington estimated it would take 4 years to design and install SCR with a compliance date of late 2016. The cost effectiveness for SCR on only one unit was calculated at $ 8,205/t. See SIP Supplement L-58. If SCR was to be installed on both units, the State calculated cost effectiveness for SCR on Unit #1 to be $14,800/t and Unit #2 to be $8,400/t. See SIP Supplement L-69. Washington determined SCR is not cost effective under either scenario and that it is not reasonable to require SCR for this facility.</P>
        <P>Washington considered the modeled visibility impairment in the baseline years and the visibility improvement potentially achievable from the various control technologies and control scenarios. The modeling indicated that TransAlta has the greatest impact at Mt. Rainier National Park with a current 5.5 dv impact (3 year 98th percentile value). See Table below and SIP Supplement Appendix L Table 3-1. This impact is reduced to 3.5 dv with emission limits based on Flex Fuel plus SNCR, for a 2.0 dv improvement. Significant improvement in visibility is also expected in 11 other Class I areas. With the expected decommissioning of both emission units by December 31, 2025, there will be a 5.5 dv improvement in visibility at Mt. Rainier National Park and significant improvement in the 11 other Class I areas. The estimated visibility impact from baseline emissions and the improvement associated with each control technology is shown below. See SIP Supplement Table 3-1.</P>
        <GPOTABLE CDEF="s50,r50,10,10,10,10,10" COLS="7" OPTS="L2,i1">
          <TTITLE>Three-Year Delta Deciview Ranking Summary</TTITLE>
          <TDESC>[The 8th day in any year or the 22nd day over the 3-year period, are the 98th percentile days]</TDESC>
          <BOXHD>
            <CHED H="1">Class I area</CHED>
            <CHED H="1">Visibility criterion</CHED>
            <CHED H="1">Baseline<LI>emissions</LI>
            </CHED>
            <CHED H="1">Control<LI>scenario</LI>
              <LI>1SNCR</LI>
            </CHED>
            <CHED H="1">Control<LI>scenario</LI>
              <LI>2Flex fuel</LI>
            </CHED>
            <CHED H="1">Control<LI>scenario</LI>
              <LI>3Flex fuel</LI>
            </CHED>
            <CHED H="1">Control<LI>scenario</LI>
              <LI>4SCR</LI>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Alpine Lakes Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>4.871</ENT>
            <ENT>4.393</ENT>
            <ENT>3.564</ENT>
            <ENT>2.949</ENT>
            <ENT>3.057</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>4.346</ENT>
            <ENT>3.844</ENT>
            <ENT>2.994</ENT>
            <ENT>3.057</ENT>
            <ENT>2.531</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Glacier Peak Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>3.615</ENT>
            <ENT>3.209</ENT>
            <ENT>2.403</ENT>
            <ENT>2.049</ENT>
            <ENT>2.036</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>2.622</ENT>
            <ENT>2.294</ENT>
            <ENT>1.905</ENT>
            <ENT>1.532</ENT>
            <ENT>1.562</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Goat Rocks Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>4.993</ENT>
            <ENT>4.398</ENT>
            <ENT>3.676</ENT>
            <ENT>3.069</ENT>
            <ENT>3.137</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>4.286</ENT>
            <ENT>3.708</ENT>
            <ENT>3.108</ENT>
            <ENT>2.637</ENT>
            <ENT>2.385</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Mt. Adams Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>3.628</ENT>
            <ENT>3.118</ENT>
            <ENT>2.646</ENT>
            <ENT>2.194</ENT>
            <ENT>1.984</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>3.628</ENT>
            <ENT>3.152</ENT>
            <ENT>2.591</ENT>
            <ENT>2.147</ENT>
            <ENT>1.934</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Mt. Hood Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>3.471</ENT>
            <ENT>3.051</ENT>
            <ENT>2.345</ENT>
            <ENT>1.978</ENT>
            <ENT>2.082</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>2.830</ENT>
            <ENT>2.388</ENT>
            <ENT>1.997</ENT>
            <ENT>1.665</ENT>
            <ENT>1.543</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Mt. Jefferson Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>2.079</ENT>
            <ENT>1.784</ENT>
            <ENT>1.399</ENT>
            <ENT>1.150</ENT>
            <ENT>1.159</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>1.888</ENT>
            <ENT>1.596</ENT>
            <ENT>1.267</ENT>
            <ENT>1.053</ENT>
            <ENT>1.061</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Mt. Rainier National Park</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>5.447</ENT>
            <ENT>4.774</ENT>
            <ENT>4.318</ENT>
            <ENT>3.606</ENT>
            <ENT>3.359</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>5.489</ENT>
            <ENT>4.743</ENT>
            <ENT>4.225</ENT>
            <ENT>3.501</ENT>
            <ENT>3.275</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Mt. Washington Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>2.027</ENT>
            <ENT>1.756</ENT>
            <ENT>1.323</ENT>
            <ENT>1.106</ENT>
            <ENT>1.170</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>1.414</ENT>
            <ENT>1.248</ENT>
            <ENT>1.323</ENT>
            <ENT>0.737</ENT>
            <ENT>0.855</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="30472"/>
            <ENT I="01">North Cascades National Park</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>2.821</ENT>
            <ENT>2.496</ENT>
            <ENT>1.852</ENT>
            <ENT>1.570</ENT>
            <ENT>1.658</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>2.212</ENT>
            <ENT>1.887</ENT>
            <ENT>1.486</ENT>
            <ENT>1.570</ENT>
            <ENT>1.183</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Olympic National Park</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>4.645</ENT>
            <ENT>4.040</ENT>
            <ENT>3.192</ENT>
            <ENT>2.695</ENT>
            <ENT>2.506</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>4.024</ENT>
            <ENT>3.456</ENT>
            <ENT>2.991</ENT>
            <ENT>2.486</ENT>
            <ENT>2.339</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Pasayten Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>1.954</ENT>
            <ENT>1.701</ENT>
            <ENT>1.287</ENT>
            <ENT>1.075</ENT>
            <ENT>1.160</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>1.482</ENT>
            <ENT>1.318</ENT>
            <ENT>0.999</ENT>
            <ENT>0.822</ENT>
            <ENT>0.864</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Three Sisters Wilderness</ENT>
            <ENT>Max 98% value (8th high) in any year</ENT>
            <ENT>2.172</ENT>
            <ENT>1.910</ENT>
            <ENT>1.333</ENT>
            <ENT>1.139</ENT>
            <ENT>1.172</ENT>
          </ROW>
          <ROW>
            <ENT I="22"/>
            <ENT>3-yrs Combined 98% value (22nd high)</ENT>
            <ENT>1.538</ENT>
            <ENT>1.328</ENT>
            <ENT>0.993</ENT>
            <ENT>0.819</ENT>
            <ENT>0.902</ENT>
          </ROW>
        </GPOTABLE>
        <P>Ecology also evaluated the energy and non-air environmental impacts associated with the technically feasible control options. Upon review, Ecology found there would be insignificant energy and non-air environmental impacts from installation of the technically feasible control options. The State did recognize that ammonia slip from SNCR could cause an increase in secondary aerosol due to the increase in ammonia in the atmosphere, but found that this will be limited by an optimization study during the first year of operation of SNCR.</P>

        <P>Based on its full consideration of the BART factors as described above, Washington determined BART for NO<E T="52">X</E>for the TransAlta plant is 0.21 lb/mmbtu based on installation and operation of SNCR plus Flex Fuel. The State's BART determination also requires the use of sub-bituminous coal from the Powder River Basin, or other coal that will achieve similar emission rates, and a requirement to optimize SNCR for the lowest NO<E T="52">X</E>emissions while minimizing ammonia slip. The BART determination allows for the NO<E T="52">X</E>limit to be revised reflecting the optimization to a level no higher than 0.21 lb/mmbtu. See SIP Supplement, Table 4-1 at L-75 and Revised BART Compliance Order Section 5.5.3. The Revised BART Compliance Order also requires one coal fired unit to permanently cease burning coal no later than December 31, 2020 and the second coal fired unit to permanently cease burning coal no later than December 31, 2025 unless Ecology determines that state or federal law requires that SCR must be installed on either unit. Revised BART Compliance Order Section 4. The BART determination results in approximately a 30% NO<E T="52">X</E>reduction from the existing NO<E T="52">X</E>emission limit of 0.302 and 0.306 lb/mmBtu.</P>
        <HD SOURCE="HD2">B. EPA's Assessment of the State's BART Determination</HD>

        <P>EPA reviewed Washington's SIP submittal, including the December 22, 2010 Regional Haze Submittal and the December 29, 2011 SIP Supplement. Washington followed 40 CFR 308(e) and EPA BART Guidelines of Appendix Y in determining BART for TransAlta. Washington evaluated NO<E T="52">X</E>controls taking into consideration the 5 factors for making a BART determination.</P>
        <P>Ecology evaluated 37 different NO<E T="52">X</E>control technologies during its RACT review process for TransAlta in 1997. That analysis was supplemented and updated as part of their 2011 BART determination for the facility. EPA believes that Washington appropriately determined the costs of compliance, including the cost effectiveness of alternative controls. The initial cost estimates were determined by TransAlta's contractor CH2MHill and reviewed by Washington. Where Washington determined that the CH2MHill analysis was lacking detail, Washington requested and received additional information. The costs were generally based on EPA's Cost Control Manual, but deviations were used where appropriate based on the physical constraints at the TransAlta facility. For example, the plant currently employs wet limestone forced oxidation to control SO<E T="52">2</E>emissions, electrostatic precipitators followed by wet scrubbing systems to control particulate matter, and low NO<E T="52">X</E>burners with close coupled overfire air to control NO<E T="52">X</E>emissions. These existing controls occupy space in the exhaust ducting minimizing space for additional controls for NO<E T="52">X</E>. Therefore, additional control equipment would require the redesign and installation of additional support structures, as well as the potential relocation of existing control equipment, thus increasing the cost of additional NO<E T="52">X</E>control. For example, SNCR would need to be located in an area where the exhaust temperature is around 2100 °F, and existing SCR requires cooler temperatures, both of which would require a redesign of support structures.</P>

        <P>As previously explained, Washington determined that there are insignificant energy and non-air environmental impacts from either SNCR plus flex fuel or SCR. We acknowledge that either SNCR or SCR will require an insignificant amount of additional energy. As the State recognized, ammonia slip, or excess ammonia in the exhaust gasses from SNCR, can cause fouling of the air heater requiring excessive maintenance as well as increased particulate formation in the atmosphere through secondary aerosol formation to ammonium sulfate and ammonium nitrate. However, this potential impact is minimized by the ammonia limit of 0.5 parts per million and the required optimization protocol. As discussed above, Ecology recognized that the facility previously installed BART for SO<E T="52">2</E>and particulate matter and improved NO<E T="52">X</E>control and EPA believes that these controls were appropriately considered in evaluating the emission reductions and NO<E T="52">X</E>control costs in making the BART determination.</P>

        <P>As described above, Ecology evaluated the degree of visibility<PRTPAGE P="30473"/>improvement anticipated from the use of possible NO<E T="52">X</E>control technologies. Washington appropriately determined that the NO<E T="52">X</E>BART determination will result in visibility improvement in Mt Rainier National Park by 2.0 dv on the 20% most impaired days and improve visibility in 11 other Class I areas.</P>

        <P>The specific BART emission limits and compliance dates, along with the requirements for the optimization study, monitoring, recordkeeping and reporting requirements, are included in the Revised BART Compliance Order. Upon EPA approval of this portion of the Regional Haze SIP Submittal, the Order becomes federally enforceable for purposes of the Washington Regional Haze SIP. Finally, pursuant to Washington's visibility protection program, WAC 173-400-151, the controls required by the State's BART determination must be installed as expeditiously as possible but in no event later than five years from when the State's Regional Haze SIP amendment is approved by EPA. More specifically, the Revised BART Compliance Order, which was included in the update to the Regional Haze SIP submission, provides that “[b]eginning on the 31st operating day after December 31, 2012 the NO<E T="52">X</E>emissions limitation for the two coal fired utility steam generating units is 0.21 lb/mmbtu, 30 operating day average, both units averaged together including all emissions during start-up and shut-down.” SIP Supplement L-30 (Revised BART Compliance Order section 1.1) Therefore, this satisfies the requirement in 40 CFR 51.308(e)(1)(iv) that “each source subject to BART install and operate BART as expeditiously as possible, but in no event later than 5 years after approval of the implementation plan approval.”</P>

        <P>For the above reasons, EPA agrees with Ecology's analysis and its the selection of BART for NO<E T="52">X</E>at the TransAlta plant because the analyses were conducted in a manner that is consistent with EPA's BART Guidelines. Additionally, the conclusions reflect a reasonable application of EPA's guidance to this particular source. Therefore, EPA proposes to approve the NO<E T="52">X</E>BART determination for TransAlta as meeting the requirements of 40 CFR 51.308(e).</P>
        <HD SOURCE="HD1">IV. What action is EPA proposing?</HD>

        <P>For the reasons explained above, and in recognition of the State legislation and the Revised BART Compliance Order which result in the decommissioning of the coal-fired units by 2020 and 2025, EPA is proposing to approve the BART determination for TransAlta, including the Revised BART Compliance Order. The BART determination requires SNCR plus Flex Fuel as BART for the TransAlta coal-fired power plant with an emission limit of 0.21 lb/mmBtu with a 30 day rolling average beginning January 31, 2013, including fuel quality requirements and the allowance for a revised NO<E T="52">X</E>emission limit not to exceed 0.21 lb/mmbtu.</P>
        <HD SOURCE="HD1">V. 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, 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 rule neither imposes substantial direct compliance costs on tribal governments, nor preempts tribal law. Therefore, the requirements of section 5(b) and 5(c) of the Executive Order do not apply to this rule. Consistent with EPA policy, EPA nonetheless provided a consultation opportunity to Tribes in Idaho, Oregon and Washington in letters dated January 14, 2011. EPA received one request for consultation, and we have followed-up with that Tribe.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Air pollution control, Environmental protection, Intergovernmental relations, Nitrogen dioxide, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Visibility, and Volatile organic compounds.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: May 14, 2012.</DATED>
          <NAME>Michelle L. Pirzadeh,</NAME>
          <TITLE>Acting Regional Administrator, Region 10.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12504 Filed 5-22-12; 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 122</CFR>
        <DEPDOC>[FRL-9671-5; EPA-HQ-OW-2012-0195]</DEPDOC>
        <SUBJECT>Notice of Intent To Revise Stormwater Regulations To Specify That an NPDES Permit Is Not Required for Stormwater Discharges From Logging Roads and To Seek Comment on Approaches for Addressing Water Quality Impacts From Forest Road Discharges</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of Intent.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The EPA intends to expeditiously propose revisions to its Phase I stormwater regulations to specify that stormwater discharges from logging roads<SU>1</SU>

            <FTREF/>are not stormwater discharges “associated with industrial activity.” This notice of intent is in<PRTPAGE P="30474"/>response to the Ninth Circuit Court of Appeals which found in<E T="03">Northwest Environmental Defense Center</E>v.<E T="03">Brown</E>that certain logging roads are stormwater point sources “associated with industrial activity.” Additionally, EPA is seeking comment on approaches for addressing water quality impacts associated with discharges of stormwater from forest roads. Where appropriate best management practices (BMPs) are used, receiving waters can be protected and impacts can be minimized. If not properly managed, however, stormwater discharges from some forest roads can cause preventable impairments to water quality. EPA believes that stormwater discharges from forest roads should be evaluated under section 402(p)(6) of the Clean Water Act because the section allows for a broad range of flexible approaches that are well-suited to address the complexity of forest road ownership, management, and use. Section 402(p) of the Clean Water Act allows EPA to consider a range of regulatory and non-regulatory approaches and determine which forest road discharges (if any) should be regulated under 402(p)(6). The EPA intends to study the water quality impacts of forest roads and existing federal, state, tribal, and voluntary programs designed to address them to determine if additional Agency action is necessary. The EPA will seek input again prior to taking additional action.</P>
          <FTNT>
            <P>
              <SU>1</SU>EPA notes that the 9th Circuit decision in<E T="03">NEDC</E>v.<E T="03">Brown</E>addressed only certain logging roads, not forest roads more generally. EPA interprets the decision as not affecting the status of silvicutural activities other than logging roads. EPA's regulations at 40 CFR 122.26(b)(14) and 122.27 exclude most silviculture activities from the requirement to obtain an NPDES stormwater permit, with certain exceptions.</P>
          </FTNT>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before June 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments, identified by docket number EPA-HQ-OW-2012-0195, 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>Water Docket, Environmental Protection Agency, Mailcode: 2822T, 1200 Pennsylvania Avenue NW., Washington DC, 20460, Attention Docket ID No. EPA-HQ-OW-2012-0195.</P>
          <P>•<E T="03">Hand Delivery/Courier:</E>EPA Docket Center, (EPA/DC) EPA West, Room 3334, 1301 Constitution Avenue NW., Washington, DC 20460. 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-OW-2012-0195. 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. Do not submit information that you consider to be CBI or otherwise protected through<E T="03">http://www.regulations.gov</E>or email. 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 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. For additional information about the 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">http://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 statue. 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 Water Docket, EPA Docket Center, EPA/DC, EPA West, Room B102, 1301 Constitution Ave. NW., Washington, DC. The Public Reading Room 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 Water Docket is (202) 566-2426.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>For further information on this notice, you may contact Jeremy Bauer, EPA Headquarters, Office of Water, Office of Wastewater Management via email at<E T="03">bauer.jeremy@epa.gov</E>or telephone at 202-564-2775.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. General Information</HD>
        <HD SOURCE="HD2">A. Applicability</HD>

        <P>This notice does not impose requirements on any entity. If you have questions regarding the applicability of this notice, consult the person listed in the preceding<E T="02">FOR FURTHER INFORMATION CONTACT</E>section.</P>
        <HD SOURCE="HD2">B. Copies of This Document and Other Information</HD>
        <P>This document is available for download at<E T="03">http://www.epa.gov/npdes/stormwater/forestroads</E>or under docket EPA-HQ-OW-2012-0195.</P>
        <HD SOURCE="HD1">II. Background</HD>
        <HD SOURCE="HD2">A. Purpose</HD>

        <P>This notice describes the administrative steps the Agency intends to take to address the unpermitted stormwater discharges identified under<E T="03">Northwest Environmental Defense Center</E>v.<E T="03">Brown,</E>1063 F.3d 1176 (9th Cir. 2011) and related discharges subject to the partial remand under<E T="03">Environmental Defense Center, Inc.</E>v.<E T="03">EPA,</E>344 F.3d. 832, 863 (9th Cir. 2003). Specifically, the Agency is announcing its plan to propose revisions to its Phase I stormwater regulations (40 CFR 122.26) to specify that stormwater discharges from logging roads are not included in the definition of “storm water discharge associated with industrial activity.” The effect of this revision would be to remove any obligation for an owner or operator of a logging road that has discharges of stormwater to waters of the United States to seek coverage of the discharge under the Stormwater Multisector General Permit and to comply with that General Permit or to have an individual permit under section 402 of the Clean Water Act for such a discharge. EPA is aware that a Congressional moratorium on NPDES permitting of some logging roads is set to expire on September 30, 2012, and intends to move expeditiously to complete this revision.</P>

        <P>At the same time, the Agency intends to evaluate stormwater discharges from forest roads to determine what additional measures, if any, are necessary to address such discharges. The EPA is publishing this notice to request comment on some potential approaches that the Agency should consider for addressing stormwater discharges from forest roads. As indicated earlier in this notice, the Agency will seek input again prior to taking additional action.<PRTPAGE P="30475"/>
        </P>
        <HD SOURCE="HD2">B. Overview of Forests and Forest Roads</HD>
        <P>A vast and diverse network of forest roads provides access into and through the nation's forested lands. These roads traverse federal public land, state and local public land, county land, tribal land, private land, and they can span any combinations of these. The network includes active and inactive roads that vary in age and condition. Some roads on public lands are unauthorized and may not be included in existing inventories. Forest roads provide important access for a wide range of activities, including timber operations, recreation, fire protection, transportation, and often serve multiple purposes by multiple users at the same time.</P>
        <P>There are about 751 million acres of forested land in the United States. Private forests make up over half (56 percent) or approximately 423 million acres (USDA Forest Service 2008), and account for over 90 percent of all timber harvested in the United States in recent years (Adams et al., 2006). Of the private forest land, 62 percent is owned by families and individuals and is commonly referred to as “family forests.” Most of the family forest owners (around 61 percent) own fewer than 10 acres of forest land. Owners of the remaining private forest land include corporations, Real Estate Investment Trusts (REITs), conservation organizations, clubs, and Native American tribes (USDA Forest Service 2008). Over 300 Native American reservations are significantly forested, and Native American tribal lands include 17.9 million acres of forest land, including 7.7 million acres of productive timberland (ITC 2007). Private forest land owners invest considerable resources in forest road construction and maintenance, as they are critical assets that enhance property values, maintain economic viability, and facilitate sustainable forestry management.</P>

        <P>Forty-four percent of forest land is publicly-owned, or approximately 328 million acres. The Federal government administers an estimated 76 percent of the public forest land. State forestry, park, and wildlife agencies account for most of the 21 percent of state-owned public forest land. The remaining 3 percent of public forest land is owned by local governments, such as counties and towns (USDA Forest Service 2008). Within the United States, the distribution of public versus private forests differs greatly among the various regions of the country. For example, forest-ownership in the Northwest is dominated by public (primarily the USFS and BLM) ownership, while private ownership is more prevalent in the Southeast and Northeast (<E T="03">Ibid.</E>).</P>
        <P>While some forest road inventory information on federal lands is available, meaningful interpretation and comparison of that information requires an understanding of differences in inventory methods used (e.g., minimum road length included in road length counts), differences in the classes of forest roads (e.g., road surfacing, sediment production and delivery, and hydrologic connectivity), and differences in road densities. Nevertheless, the networks of forest roads on federal land are vast by any measure, with total lengths on the order of tens of thousands to hundreds of thousands of miles. The networks in other publicly-owned forests, tribal forests, and private forests have not been fully catalogued, and the density and condition of forest roads on these lands, as with the federal lands, varies widely.</P>
        <P>Forest road networks differ greatly in development through time and layout over terrain, and they carry this history into their present performance and environmental impacts (Gucinski et al, 2001). In many parts of the 193 million acres of the National Forest System (NFS), the major roads were built in the 1950s and 1960s, with secondary and tertiary feeder roads following as the road networks expanded into watersheds. In other areas, logging roads developed from previous road systems used for mining in the Rocky Mountain and southwestern states or agriculture in the southern Appalachians, Ozarks, and New England. Thus, changes in forest road standards through time (for example, width, construction methods, position in the landscape) have affected different parts of road networks. Consequently, each forest road network commonly contains a collection of older and newer roads, designed to different standards, for various purposes, and crossing terrain of differing sensitivities. This mosaic of road segments has implications for how the forest road network will interact with the forest watershed, streams, and other downstream aquatic resources (Gucinski et al., 2001), as well as for what is practicable, or even feasible, to address stormwater discharges from these roads.</P>
        <P>Regional differences are also evident in where the forest roads were located. For example, in southeastern Alaska, main roads were built on the broad, valley floors, where timber growing on the lower hillslopes was yarded downhill to them. In California, west of the Sierra Nevada, major roads were built along broad ridges, with secondary roads leading down into headwater areas. The main roads into western Oregon forests entered watersheds along narrow stream bottoms and then climbed the adjacent steep, unstable hill slopes to access timber extending from ridge to valley floor (Gucinski et al., 2001).</P>
        <P>Federal forest roads on both BLM and Forest Service lands generally support traffic from multiple uses such as recreational, administrative, fire protection, and mineral and silvicultural activities. Of those, only a portion may be used for accessing timber resources. The federal land management agencies may grant easements, reservations, and permits for the purpose of construction, operation, and maintenance or use of roads crossing their lands.</P>
        <P>The majority of BLM industrial logging operations occur on Oregon and California (O&amp;C) lands<SU>2</SU>
          <FTREF/>which have approximately 14,455 miles of road. BLM O&amp;C lands are interspersed in a checkerboard pattern with many landowners. The roads often cross multiple jurisdictions, including tribal, state, county and private land as well as BLM lands. As a result, a complex system of road right-of-way agreements exists on the BLM O&amp;C lands, as discussed later in this notice.</P>
        <FTNT>
          <P>
            <SU>2</SU>Oregon and California (O&amp;C) Lands Act of 1937. 43 U.S.C. 1181a. The O&amp;C Lands Act placed management jurisdiction of the lands under the United States Department of the Interior.</P>
        </FTNT>
        <P>The paragraphs above discuss the range of property types into which forest roads provide access. The same road may pass through multiple owners and multiple properties. Moreover, the ownership of the road does not necessarily correspond to the ownership of the forest land. For example, a BLM owned road may pass through private property, and a privately owned road may pass through BLM property.</P>
        <P>In general, only a subset of forest roads are active or open in any given year or at any given time of year. When active or open, forest roads may be serving multiple purposes by a number of different users. For example, those roads that are open and used for logging may cross multiple ownerships with overlapping responsibilities for the road and be used by multiple logging operators during the same time frame. This creates a highly complex mosaic of overlapping responsibilities. The EPA does not have information on all forest roads but notes that usage for some roads, including forest roads on private property, may only occur during harvesting once every 20 years or so.</P>

        <P>Some forest roads are inactive and have been closed and “storm-proofed”<PRTPAGE P="30476"/>(i.e., they have appropriate BMPs for road drainage and erosion control and for reducing the vulnerability of the roads to natural disasters). Others may have been closed or abandoned. Among both active and inactive forest roads are older forest roads that were built or located without the benefit of newer standards.</P>
        <P>The wide range of regulatory and non-regulatory approaches authorized under section 402(p) of the CWA are well-suited to address stormwater discharges originating from the complex and diverse forest road universe because such approaches provide for flexibility and prioritization and allow EPA to focus on the subset of forest roads with stormwater discharges that cause or contribute to water quality impacts. Under 402(p) EPA could build on or defer to other federal, state, tribal, local, and voluntary programs.</P>
        <HD SOURCE="HD2">C. Overview of Water Quality Impacts From Stormwater Discharges From Forest Roads</HD>

        <P>The goal of the Clean Water Act is to restore and maintain the chemical, physical, and biological integrity of the nation's waters. 33 U.S.C. 1251(a). High quality water supplies from forests are widely recognized as valuable resources. Forests cover about one-third of the continental United States. Most major rivers and streams originate in forested catchments (NCASI, 1994), and 80 percent of the nation's freshwater sources originates in these forests (USFS 2000). In 2000, the US Forest Service (USFS) calculated the marginal value of water from all National Forest System (NFS) lands to be at least $3.7 billion per year (<E T="03">Ibid.</E>). Between 50 and 75 percent of the population of the United States relies on forest lands for good quality water (Neary et al. 2009), and approximately 60 million people rely on NFS lands as the primary source of their drinking water (Dissmeyer 2000).</P>
        <P>Stormwater discharges from logging roads, especially improperly constructed or maintained roads, may introduce significant amounts of sediment and other pollutants into surface waters and, consequently, cause a variety of water quality impacts. Results of nationwide waterbody assessments from the EPA's Assessment and Total Maximum Daily Loads (TMDL) Tracking and Implementation System (ATTAINS), which contains the most currently available data reported by states to the EPA under Sections 305(b) and 303(d) of the CWA, found silviculture (forestry) and related activities, including forest and logging roads, to be among the top twelve probable sources of impairment for rivers, streams, and coastal shorelines (USEPA 2012).</P>
        <P>The ATTAINS database indicates that silviculture sources contributed to impairment of 19,444 miles of rivers and streams (3.8 percent of the total of 514,795 miles impaired) and 242,583 acres of lakes, reservoirs and ponds (1.9 percent of the total of 13,038,033 acres of impaired). States cited “Logging roads (construction and use)” as the “specific source” of impairment in the case of 1,334 miles of rivers and streams (.003 percent of total impaired) and 6,150 acres of lakes, reservoirs and ponds (.0005 percent of total impaired).</P>
        <P>The contribution of silviculture to water quality impairments can vary by region, and the contribution of discharges from forest roads to water quality impairments in the ATTAINS database may not be representative due to reporting differences among states. Some states may have categorized the source of impairment as “hydromodifcation” or “habitat alteration”; many states consistently report in the “unknown” source category for impairments—the third leading probable source category of impairment nationwide. Additionally, much of the nation's waters still remain unassessed (72 percent of rivers and streams; 54 percent of lakes, reservoirs, and ponds; 62 percent of bays and estuaries; and 96 percent of coastal shorelines). The EPA considered the differential contribution from forest road stormwater discharges on water quality as the Agency developed the potential approaches for addressing these sources. For example, the EPA recognizes that not all forest roads cause water quality impacts and that the majority of the water quality impacts caused by discharges from forest roads may be attributed to a relatively small subset of forest roads and often a small portion of those roads (Nelson et al., 2010; Fly et al., 2010; Luce and Black, 2001; Luce and Black, 1999). Thus, any approach to address stormwater discharges from forest roads would likely focus on the subset of forest roads that were not properly constructed or are not properly maintained.</P>
        <P>Stormwater discharges from improperly constructed or maintained forest roads can lead to excess sedimentation in nearby waters and subsequently lead to physical, biological and ecological impacts to water quality. These forest roads can degrade aquatic ecosystems by increasing levels of fine sediment input to streams and by altering natural streamflow patterns. Forest road runoff from improperly designed or maintained forest roads can detrimentally affect stream health and aquatic habitat by increasing sediment delivery and stream turbidity. This can adversely affect the survival of dozens of sensitive aquatic biota (salmon, trout, other native fishes, amphibians and macroinvertebrates) where these species are located. Increased fine sediment deposition in streams and altered streamflows and channel morphology can result in increased adult and juvenile salmonid mortality where present (e.g., in the Northwest and parts of the East), a decrease in aquatic amphibian and invertebrate abundance or diversity, and decreased habitat complexity.</P>
        <P>The physical impacts of forest roads on streams, rivers, downstream water bodies and watershed integrity have been well documented but vary depending on site-specific factors. Improperly designed or maintained forest roads can affect watershed integrity through three primary mechanisms: they can intercept, concentrate, and divert water (Williams, 1999). Forest roads can intercept water falling as rainfall directly on road surfaces and cutbanks as well as subsurface water moving underground down the hillslope. They can concentrate flow on the road surface and in adjacent ditches and channels. Forest roads, if not properly designed, can divert both surface and subsurface water from flow paths that otherwise would be taken in the absence of a road. The hydrologic and geomorphic consequences resulting from these three processes will vary based on the forest road and underlying material. In some cases, impacts may be negligible, while they may be significant in others. Potential effects of forest roads that were not properly constructed or are not properly maintained on water quality can include increased loading of sediment due to erosion and mass wasting, increased suspended solids and turbidity, increased sediment deposition and bed load, alteration of stream morphology and channel simplification, altered streamflow, pollution from other chemicals associated with forest roads, increased turbidity and sedimentation in water treatment and supply systems, siltation of streambed substrates, impairments of spawning and rearing habitat, and degradation of habitat for salmonids, other fish, invertebrates, and other aquatic organisms.</P>

        <P>Section VII, References, at the end of this notice provides a preliminary list of articles and publications that have examined various potential effects of stormwater discharges from forest roads, as well as management practices to address them. The EPA will further<PRTPAGE P="30477"/>review this literature as part of its detailed study of these sources. The Agency also welcomes suggestions for additional references that it should consider in its review.</P>
        <HD SOURCE="HD2">D. Description and Effectiveness of BMPs and Current Practices</HD>
        <P>Forest roads are vital components of the human use of forested systems (Gucinski et al., 2001). They provide access for recreation, resource extraction, fire suppression activities, and many other forest management activities. While improperly built and maintained forest roads can have detrimental effects on the water quality, the application of appropriate BMPs can minimize these effects.</P>
        <P>Owners and operators of many forest lands may already be employing a variety of effective approaches to manage, operate, and maintain forest roads to control stormwater discharges. These approaches are implemented by the forest road owners themselves or by operators or users of the roads. Depending on the jurisdiction, owners or operators use BMPs as a result of state program requirements, federal requirements, or because they may follow voluntary programs, including forest stewardship and sustainability initiatives. Under these required or voluntary programs, owners and operators of forest roads use BMPs to minimize or prevent discharges of pollutants into surface waters. They include design approaches, treatment techniques, operating procedures, and practices to control runoff, spillage, and leaks.</P>
        <HD SOURCE="HD3">1. State Programs</HD>
        <P>Most states have forest land management laws regulating multiple aspects of forest and timber resources and management and the products derived from these resources. Many states have a complex legal framework of forestry regulations that shape the state's forest road BMP programs. This framework and the resulting BMP programs vary considerably from one state to another. States also differ in how they distribute responsibility and authority for the forest road BMP programs among the state water quality, forestry, and fish and wildlife agencies. This notice describes three existing state programs to illustrate some of the variety among the states. Descriptions of the remaining state programs may be available through state Web pages.</P>
        <P>In Washington State, the forest practices act and rules (Forests and Fish Rules) apply to all private and state forest roads. Forest Practices Rules require that forest landowners construct and maintain roads to avoid potential or actual damage to public resources, such as water quality and fish habitat. The Washington program addresses both new forest roads as well as existing roads. The program requires larger forest landowners to complete an inventory of existing roads, identify where roads are impacting state resources (including fish and water quality), and allows for prioritization of repairing, relocating, or abandoning existing roads to correct problems. All large forest landowners must develop and submit for approval by the Washington Department of Natural Resources (DNR) a Road Maintenance and Abandonment Plan (RMAP) in which they inventory their forest roads and outline a schedule for any needed road work, including a timeline to bring old roads up to current standards or to decommission or “abandon” substandard roads. Small forest landowners are required to submit a “checklist RMAP,” which is a form landowners fill out to indicate they have assessed their roads included in a harvest and identified any potential road maintenance problems. While the program is enforceable, the state focuses first on technical assistance and then, to correct problems, uses progressive enforcement mechanisms and generally reserves civil penalties for more serious infractions. If a problem is identified, WA DNR describes the outcome expected, and the landowner describes what BMPs will be used to correct it.</P>
        <P>Forest roads that no longer need to be used or cannot meet the performance standards are encouraged to be abandoned. Abandonment strategies may involve the removal of stream crossing structures and unstable road fill, installing water bars, re-vegetating exposed soils, and employing other similar techniques. WA DNR must approve the roadwork before the road can be considered abandoned.</P>
        <P>Florida relies primarily on voluntary compliance with state approved forest road BMPs. However, BMPs can be enforced where noncompliance leads to a significant risk to water quality. When a significant risk has been identified, professionally-trained BMP foresters advise the landowners on how to implement corrective measures. Afterward, a follow-up site evaluation is made to reassess compliance. Landowner non-compliance with recommendations made by the BMP Forester could result in a referral to the appropriate regulatory agency for enforcement action.</P>
        <P>California's Forest Practice Rules establish a comprehensive framework that includes state-developed and approved BMPs for silvicultural activities on private lands, including road-building practices, and other related silvicultural activities. California allows coverage under one approach that includes requirements that closely resemble those of an individual permit, known as “Waste Discharge Requirements,” as well as another approach allowing the use of a “waiver” whose requirements are closer to those of a general or regional permit. Having a “waiver” obviates the procedural need for coverage under the “Waste Discharge Requirements” program, but the substantive requirements of that program remain enforceable.</P>
        <P>The California program is based on input from state water quality and natural resource agencies and incorporates a formal, annual adaptive management process reflecting incremental analysis of BMPs, which regularly results in updated BMP requirements. The waste discharge requirements apply similarly and equally to both public and private lands. Enforceability of the Forest Practice Rules is overseen by multiple agencies: California Department of Forestry, the California Department of Fish and Game, and the state water Quality Control Board and Regional Water Quality Control Boards (California's water quality agency).</P>
        <P>Many states have been monitoring forestry BMP implementation for the past 20 years or more. During that time, state forestry agencies have approached implementation monitoring in different ways with varying degrees of detail, precision, and statistical strength. In general, BMP implementation has been reported to be highest on public land, followed in descending order by forest industry land, corporate non-industrial land, and private non-industrial land (Prud'homme and Greis, 2002).</P>
        <P>EPA recognizes that one-size-fits-all approaches may not be appropriate for addressing the multiplicity of issues and situations within and across states. EPA welcomes diversity in state programs and will be carefully studying the full range of such programs as it considers whether any additional measures to address stormwater discharges from forest roads are needed.</P>
        <HD SOURCE="HD3">2. USDA Forest Service Programs</HD>
        <HD SOURCE="HD3">a. Forest Service National BMP Program</HD>

        <P>The goal of the USDA Forest Service (USFS) National BMP Program is to improve agency performance and accountability in managing water quality in a manner consistent with the CWA and state water quality programs. Current USFS policy directs compliance with any required CWA permits and<PRTPAGE P="30478"/>state rules and regulations, and requires the use of approved BMPs to control pollution. The National BMP Program was developed over the past decade and is currently in the initial stages of implementation. It is intended to provide consistency among USFS administrative units to efficiently administer BMPs and demonstrate performance and accountability at multiple scales in an adaptive management context. The program is intended to meet or exceed state BMP objectives as well as to simplify and standardize water quality protection measures and monitoring on NFS land. (USDA Forest Service 2012)</P>

        <P>The National Core BMPs integrate existing state and USFS regional BMPs under one umbrella to facilitate an agency-wide BMP implementation and effectiveness monitoring program. The National Core BMPs provide a general, non-prescriptive framework of BMPs for the broad range of activities that occur on NFS lands. (<E T="03">Ibid.</E>)</P>
        <HD SOURCE="HD3">b. Forest Service Watershed Condition Framework</HD>
        <P>The USFS's Watershed Condition Framework (WCF) is a comprehensive approach for classifying watershed condition, implementing integrated restoration in priority watersheds on national forests and grasslands, and tracking and monitoring outcome-based program accomplishments for performance accountability (USDA Forest Service 2011). The policy goal of the USFS WCF is “to protect National Forest System watersheds by implementing practices designed to maintain or improve watershed condition, which is the foundation for sustaining ecosystems and the production of renewable natural resources, values, and benefits.” The WCF provides a consistent way to evaluate watershed condition at both the national and forest levels. The WCF consists of reconnaissance-level assessments by individual national forests, implementation of integrated improvement activities—including those related to roads—within priority watersheds, validation and monitoring of watershed condition class changes, and aggregation of program performance data for national reporting.</P>
        <HD SOURCE="HD3">c. Forest Service Legacy Roads Project</HD>
        <P>The USFS has been engaged in an extensive program of road improvement efforts called the Legacy Roads Project since 2008. The goals of this effort are to reduce the hydrologic and geomorphic impacts of the existing USFS road network on critical watersheds and aquatic resources by decommissioning or upgrading forest roads. The Legacy Roads Monitoring Project is a regional effort to examine the effectiveness of the road decommissioning, storm damage risk reduction (aka “storm-proofing”) and road storage projects.</P>
        <HD SOURCE="HD3">3. United States Department of the Interior Bureau of Land Management Programs</HD>
        <P>The Bureau of Land Management (BLM) manages 58 million acres of forest and woodlands in eleven western states and Alaska, including 2.4 million acres within the Oregon and California (O&amp;C) grant lands in western Oregon. BLM O&amp;C regulations regarding third party road uses provide that “The intent and expectation of both parties to agreements is that roads are left in `at least as good condition as existed prior to commencement of use'” (43 CFR 2812.6-2(b)(2)). The Federal Land Policy Management Act (FLPMA) requires public lands to be managed on the basis of multiple use and sustained yield without permanent impairment of the land and quality of the environment. Under Sec 502 of FLPMA, the Interior Secretary is authorized to provide for the maintenance of roads within and near the public lands and perform that work, in part, by cooperative financing with other public agencies and with private agencies and persons in proportion to their use. Forest roads may be constructed and maintained by logging operators, private landowners, the BLM, the USFS, or state or county governments. BLM roads, culverts, and bridges are designed, constructed, and maintained in accordance with policies and standards found in BLM 9100 Manual Series (Engineering) for road BMPs. In Oregon and Washington, the BLM has recently (2011) updated BMPs and, as a result, current road construction and maintenance standards are substantially improved over the standards in existence when the CWA was enacted in 1972. BLM timber sale contracts contain extensive specifications related to methods and timing of road construction and maintenance. In addition, the BLM often includes operational restrictions in their timber sale contracts to reflect appropriate protections for fish species listed under the Endangered Species Act (ESA).</P>
        <P>Under rights-of-way agreements, examples exist of private companies owning roads constructed on BLM lands, and BLM owning roads built on private lands. There are dozens of rights-of-way agreements in place on O&amp;C lands. These agreements are subject to frequent amendment as landowners consolidate or sell lands or split off separate corporate entities for business purposes, creating a complex access program.</P>
        <HD SOURCE="HD3">4. Tribal Programs</HD>
        <P>Tribal governments in partnership with the US government dedicate substantial resources to improving Indian forest management (ITC 1993). Much of the responsibility for managing Indian forests across the country is carried out by the Bureau of Indian Affairs (BIA) with the involvement of tribal governments. The National Indian Forest Resources Management Act (NIFRMA), Title III, Public Law 101-630, directs the Secretary of the Interior, in consultation with the affected Indian tribes, to obtain an independent assessment of the status of Indian forest resources and their management. Similar to the National Forest Management Act, the NIFRMA requires the development of forestry management plans under which the forests are managed in accordance with BMPs, as approved thorough an interdisciplinary team. The Tribal Forest Protection Act (Pub. L. 108-278) authorizes the Secretary of Agriculture and the Secretary of the Interior to enter into an agreement or contract with Indian tribes to carry out projects to protect Indian forest land. Protection of such land is particularly important for tribes because they pass their land on from generation to generation. This helps to ensure future availability of natural resources, including healthy forests and clean water.</P>
        <P>Many tribes have taken on significant roles in sustainable forest management. For example, the Menominee Indian Tribe of Wisconsin manages 95 percent of the forested portions of the reservation for long-term sustainability through the Menominee Tribal Enterprises which has received certifications for sustainable management from two groups, Scientific Certification Systems (The Forest Conservation Program) and the Rainforest Alliance (SmartWood), and is accredited by the Forest Stewardship Council. As another example, the Northern Cheyenne Tribe requires that all new roads be obliterated and seeded after forest harvesting activities. Similarly, the Blackfeet Nation has a no net new road miles policy, in that new forest roads associated with forest harvest must be closed, or other roads must be closed in their place.</P>
        <HD SOURCE="HD3">5. Voluntary Certification Programs</HD>

        <P>On private forestlands, significant BMP implementation can be attributed to growing involvement of forest owners<PRTPAGE P="30479"/>in sustainable forestry certification programs. Several certification programs exist. Under one program, the Sustainable Forestry Initiative (SFI) of the American Forest and Paper Association, member companies must meet or exceed state BMPs on company-owned forest land (Prud'homme and Greis, 2002). Because SFI is linked to state BMPs, the forest road BMPs applied under SFI vary by state. Some forest products companies impose sanctions on timber producers who fail to implement BMPs when logging on other ownerships.</P>
        <P>Under another, the Forest Stewardship Council (FSC) certification program, certified forest owners and operators follow a set of principles and criteria that support responsible forest management (FSC 2012). Principles and criteria include conservation of biological diversity, water resources, soils, and unique and fragile ecosystems and landscapes. Under FSC certification, additional requirements tailored by region guidelines must also be met in addition to state BMPs.</P>
        <P>Under a third program, the American Tree Farm System, a written certification is issued by an independent third-party that attests to the sustainable management of a working forest (ATFS 2012). In addition to requirements that they be in compliance with state BMPs, certified forest managers must also attest compliance with eight standards of sustainability, including the maintenance or enhancement of the environment and ecosystems.</P>
        <P>Certification programs can both help ensure implementation of state BMPs and in some instances require additional BMPs. Forestry operations that utilize experienced and informed land managers generally have higher rates of BMP implementation. Thus, many states recommend that landowners utilize forestry professionals (e.g., private consultants, certified Master Loggers) when planning any forest management operations. Many certification programs require involvement of forestry professionals.</P>
        <HD SOURCE="HD2">E. Successes and Remaining Challenges</HD>
        <P>As described above, successful federal, state, tribal, and local programs for controlling stormwater discharges from logging and forest roads currently exist in many parts of the country and many forest owners are implementing BMP programs to address these discharges. Some studies have observed trends of decreasing sediment input as forest roads are closed and storm-proofed or newly built or brought up to standards (e.g., Dubé et al. 2010).</P>
        <P>However, this does not mean that all of the existing programs have been successful at effectively addressing stormwater discharges from forest roads, and some discharges continue to cause or contribute to impairments for the Nation's waters.</P>
        <P>At the same time, not all forest roads are alike, and the severity of the remaining challenges varies. There is evidence that a majority of the water quality impacts caused by discharges from forest roads can be attributed to a relatively small subset of forest roads and often a small portion of those roads (Nelson et al., 2010; Fly et al., 2010; Luce and Black, 2001; Luce and Black, 1999). Thus, EPA believes that further study of forest roads and their impacts is needed in order to determine what additional measures may be needed to address remaining water quality impacts. EPA will consider a full range of potential approaches to address water quality impacts associated with discharges of stormwater from forest roads.</P>
        <HD SOURCE="HD1">III. Approaches for Managing Stormwater Discharges From Forest Roads</HD>
        <P>The Agency is considering several options for addressing significant water quality impacts caused by stormwater discharges from forest roads. EPA is considering designating a subset of stormwater discharges from forest roads for appropriate action under section 402(p)(6) of the Act. Section 402(p)(6) allows the EPA flexibility in issuing regulations to address designated stormwater discharges and does not require the use of NPDES permits. 33 U.S.C. 1342(p)(6). Section 402(p) allows for a broad range of regulatory and non-regulatory approaches and provides flexibility as to which stormwater discharges, if any, should be designated under Section 402(p)(6). For example, in lieu of regulation, EPA could support or defer to other federal, state, tribal, local, and voluntary programs. If EPA does determine that regulation under Section 402(p)(6) is appropriate for a subset of stormwater discharges from forest roads, such a regulation might address discharges only from roads used for logging or might address discharges based on contribution of the discharge to a water quality problem. Section 402(p)(6), in turn, provides considerable flexibility to EPA if it does designate any discharges for regulation in how it regulates those discharges.</P>
        <P>EPA intends to further study the impacts of stormwater discharges from forest roads, available management practices and approaches, and the effectiveness of existing Federal, State, Tribal, local and private programs in managing these discharges, as it considers appropriate next steps.</P>
        <HD SOURCE="HD1">IV. Outreach and Stakeholder Involvement</HD>
        <P>The EPA is in the process of reviewing available information on both the water quality impacts of stormwater discharges from forest roads as well as existing practices for their control. Consistent with past Agency actions, the EPA invites interested stakeholders and the public to share in the exchange of information and to engage as the Agency considers alternative approaches for addressing stormwater discharges from forest roads.</P>
        <P>The Agency participated in the recent technical symposium hosted by the Society of American Foresters during which EPA scientists and engineers had the opportunity to hear perspectives on forest roads and the Clean Water Act from state and industry representatives directly. In addition, the EPA has begun communicating with states, tribes, and other federal agencies to understand their current forest road stormwater management programs. The Agency worked closely in particular with USDA (the USFS) and the Department of the Interior (the BLM). The EPA also welcomes information from other interested parties and plans to work closely with other stakeholders moving forward.</P>
        <P>The EPA encourages stakeholders and the public to provide input into its consideration of appropriate measures to address stormwater discharges from forest roads and is already planning to host public meetings and webcasts to provide a forum for them to do so.</P>
        <HD SOURCE="HD1">V. Next Steps</HD>

        <P>The Agency will move expeditiously to propose a revision to its Phase I stormwater regulations (40 CFR 122.26) to specify that stormwater discharges from logging roads are not included in the definition of “storm water discharge associated with industrial activity.” EPA is aware that a Congressional moratorium on NPDES permitting of some logging roads is set to expire on September 30, 2012, and intends to move expeditiously to complete this revision. EPA will also study the water quality impacts of forest roads and existing federal, state, tribal, and voluntary programs designed to address them to determine if additional Agency action is necessary. EPA also plans to hold listening sessions to obtain stakeholder input this summer on its consideration of how best to address stormwater discharges from forest roads.<PRTPAGE P="30480"/>
        </P>
        <HD SOURCE="HD1">VI. Request for Comment</HD>
        <P>The EPA requests comment on potential approaches for addressing stormwater discharges from forest roads. The Agency also seeks input on examples of successful existing BMP-based state programs, tribal programs, and voluntary certification programs for managing stormwater discharges from forest roads; how these programs are implemented; how program accountability is assured; the costs of implementing those programs, including costs incurred by owners or operators of forest roads as well as the costs incurred by the organizations responsible for implementation and enforcement; the demonstrable successes of these programs; and the lessons learned in implementing such programs.</P>
        <P>The EPA will again seek input on any additional measures to address such discharges before taking additional action.</P>
        <HD SOURCE="HD1">VII. References</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">Adams, Darius M.; Haynes, Richard W.; Daigneault, Adam J. 2006. Estimated Timber Harvest by U.S. Region and Ownership, 1950-2002. Gen. Tech. Rep. PNW-GTR-659. Portland, OR: USDA Forest Service, Pacific Northwest Research Station. p. 64.</FP>
          <FP SOURCE="FP-2">Aitken, W.W. 1936. The Relation of Soil Erosion to Stream Improvement and Fish Life. Journal of Forestry. 34:1059-1061.</FP>
          <FP SOURCE="FP-2">Anderson, H.W.; Hoover, M.D. and K.G. Reinhart. 1976. Forest and Water: Effects of Forest Management on Floods, Sedimentation, and Water Supply. USDA Forest Service, General Technical Report PSW-18. San Francisco, CA.</FP>
          <FP SOURCE="FP-2">American Tree Farm System (ATFS). 2012.<E T="03">http://www.treefarmsystem.org.</E>(visited April 2012).</FP>

          <FP SOURCE="FP-2">Berry, W.; Rubinstein, N.; Melzian, B. and B. Hill. 2003. The Biological Effects of Suspended and Bedded Sediment (SABS) in Aquatic Systems: A Review. USEPA, Office of Research and Development, National Health and Environmental Effects Laboratory, Narragansett, RI and National Health and Environmental Effects Laboratory, Midcontinent Ecology Division, Duluth, MN. August 20, 2003.<E T="03">http://www.epa.gov/waterscience/criteria/sediment/appendix1.pdf</E>(visited April 2012).</FP>
          <FP SOURCE="FP-2">Beschta, R.L. 1981. Management Implications of Sediment Routing Research. Chapter in: Measuring and Assessing the Effectiveness of Alternative Forest Management Practices on Water Quality. NCASI Technical Bulletin 353. National Council for Air and Stream Improvement. New York, NY. August 1981.</FP>
          <FP SOURCE="FP-2">Beschta, R.L.; Bilby, R.E.; Brown, G.W. 1987. Stream Temperature and Aquatic Habitat: Fisheries and Forestry Interactions. In: Salo, E.; Cundy, T., eds. Streamside Management: Forestry and Fishery Interactions. Contrib. 57. Seattle: University of Washington, College of Forest Resources: 191-232.</FP>
          <FP SOURCE="FP-2">Binkley, D. and T.C. Brown. 1993. Forest Practices as Nonpoint Sources of Pollution in North America. Water Resources Bulletin 29(5): 729-740.</FP>
          <FP SOURCE="FP-2">Burroughs, E.R., Jr.; Chalfant, G.R.; Townsend, M.A. 1976. Slope Stability in Road Construction: a Guide to the Construction of Stable Roads in Western Oregon and Northern California. Portland, OR: US Department of the Interior, Bureau of Land Management.</FP>
          <FP SOURCE="FP-2">Clayton, J.L. 1983. Evaluating Slope Stability Prior to Road Construction. Res. Pap. INT-307. Ogden, UT: USDA Forest Service, Intermountain Forest and Range Experiment Station.</FP>
          <FP SOURCE="FP-2">Dissmeyer, George E.; [Editor] 2000. Drinking Water from Forests and Grasslands: a Synthesis of the Scientific Literature. Gen. Tech. Rep. SRS-39. Asheville, NC: USDA Forest Service, Southern Research Station. p. 3.</FP>
          <FP SOURCE="FP-2">Dubé, Kathy, A. Shelly, J. Black, K. Kuzis. 2010. Washington Road Sub-Basin Scale Effectiveness Monitoring First Sampling Event (2006-2008) Report. CMER 08-801. Olympia, WA. Washington State Department of Natural Resources.</FP>
          <FP SOURCE="FP-2">Dunne, T.; Leopold, L.B. 1978. Water in Environmental Planning. San Francisco, CA. W.H. Freeman.</FP>
          <FP SOURCE="FP-2">Eaglin, G. S. and W. A. Hubert. 1993. Effects of Logging and Roads on Substrate and Trout in Streams of the Medicine Bow National Forest, WY. North American Journal of Fisheries Management 13: 844-846.</FP>
          <FP SOURCE="FP-2">Elliot, W. 2000. Roads and Other Corridors (Ch. 9). Pages 85-101. In G. Dissmeyer, ed. Drinking Water from Forests and Grasslands: A Synthesis of the Scientific Literature. USDA Forest Service, Southern Research Station, Asheville, NC.</FP>
          <FP SOURCE="FP-2">Elliot, W.J. and Hall, D.E. 1997. Water Erosion Prediction Project (WEPP) Forest Applications. General Technical Report INT-GTR-365. Moscow, ID: Intermountain Research Station.</FP>
          <FP SOURCE="FP-2">Fly, C., Grover-Wier, K., Thornton, J., Black, T., Luce, C. 2010 Bear Valley Road Inventory (GRAIP) Report In Support of the Bear Valley Category 4b Demonstration. US Department of Agriculture, Forest Service, Boise National Forest. 54 pp.</FP>
          <FP SOURCE="FP-2">FPAC. 2001. Section B—Forest Roads Issue Paper. Report of the Forest Practice Advisory Committee on Salmon and Watersheds. Oregon Forest Practices Advisory Committee on Salmon and Watersheds. Oregon Department of Forestry. Salem, Oregon.</FP>
          <FP SOURCE="FP-2">Forest Stewardship Council (FSC). 2012.<E T="03">http://www.fsc.org.</E>(Visited April 2012)</FP>
          <FP SOURCE="FP-2">Furniss, M.J.; Roelofs, T.D.; Yee, C.S. 1991. Road Construction and Maintenance. In: Meehan, W.R., ed. Influences of Forest and Rangeland Management on Salmonid Fishes and their Habitats. Spec. Publ. 19. Bethesda, MD. American Fisheries Society. 297-323.</FP>
          <FP SOURCE="FP-2">Gibbons, D.R.; Salo, E.O. 1973. An Annotated Bibliography of the Effects of Logging on Fish of the Western United States and Canada. Gen. Tech. Rep. PNW-10. Portland, OR: USDA Forest Service, Pacific Northwest Forest and Range Experiment Station.</FP>
          <FP SOURCE="FP-2">Grace, J.M. III and B.D. Clinton. 2006. Forest Road Management to Protect Soil and Water. ASABE Paper No. 068010. St. Joseph, MI.</FP>
          <FP SOURCE="FP-2">Gucinski, H., M. Furniss, R. Ziemer, and M. Brookes. 2001. Forest roads: A Synthesis of Scientific Information. USDA Forest Service, Pacific Northwest Research Station, Portland, OR.</FP>
          <FP SOURCE="FP-2">Hammond, C.J.; Miller, S.M.; Prellwitz, R.W. 1988. Landslide Hazard Assessment using Monte Carlo simulation. In: Proceedings of the 24th symposium on engineering geology and soils engineering; 1988 February 29; Coeur d'Alene, ID. Logan: Utah State University, Department of Civil and Environmental Engineering: 319-331.</FP>
          <FP SOURCE="FP-2">Harr, R. D., W. C. Harper and J. T. Krygier. 1975. Changes in Storm Hydrographs After Road Building and Clear-Cutting in the Oregon Coast Range. Water Resources Research 11: 436-444.</FP>
          <FP SOURCE="FP-2">Heede, B.H. 1980. Stream Dynamics: an Overview for Land Managers. Gen. Tech. Rep. RM-72. Fort Collins, CO: USDA Forest Service, Rocky Mountain Forest and Range Experiment Station.</FP>
          <FP SOURCE="FP-2">Henjum, M.G.; Karr, J.R.; Bottom, D.L. [and others]. 1994. Interim Protection for Late-Successional Forests, Fisheries, and Watersheds: National Forests East of the Cascade Crest, Oregon and Washington. Bethesda, MD: Wildlife Society.</FP>
          <FP SOURCE="FP-2">Hicks, B. J., J. D. Hall, P. A. Bisson and J. R. Sedell. 1991. Responses of Salmonids to Habitat Changes. Ch. 14 of Influences of Forest and Rangeland Management on Salmonid Fishes and Their Habitats. American Fisheries Society Special Publication 19: 483-518.</FP>

          <FP SOURCE="FP-2">Intertribal Timber Council (ITC), 2007. National Overview of Tribal Forestry. Proceedings in Trust and Transition: Perspectives on Native American Forestry. April 30, 2007. University of Washington. Available for viewing at<E T="03">http://www.youtube.com/watch?v=WwVwbdg24Hk</E>(viewed March 2012).</FP>
          <FP SOURCE="FP-2">Jackson, W.L. and Beschta, R.L. 1984. Influences of Increased Sand Delivery on the Morphology of Sand and Gravel Channels. Water Resources Bulletin. 20(4): 527-533.</FP>
          <FP SOURCE="FP-2">King, J.G.; Tennyson, L.C. 1984. Alteration of Streamflow Characteristics Following Road Construction in North Central Idaho. Water Resources Research. 20(8): 1159-1163.</FP>

          <FP SOURCE="FP-2">Lee, D.C.; Sedell, J.R.; Rieman, B.E. 1997. Broadscale Assessment of Aquatic Species and Habitats. In: Quigley, T.M.; Arbelbide, S.J., tech. eds. An Assessment of Ecosystem Components in the Interior Columbia Basin and Portions of the Klamath and Great Basins: volume III. Gen. Tech. Rep. PNW-GTR-405. Portland, OR: USDA Forest Service,<PRTPAGE P="30481"/>Pacific Northwest Research Station: 1057-1496. Chapter 4. (Quigley, T.M., tech. ed.; Interior Columbia Basin Ecosystem Management Project: scientific assessment).</FP>
          <FP SOURCE="FP-2">Lewis, J. 1998. Evaluating the Impacts of Logging Activities on Erosion and Suspended Sediment Transport in the Caspar Creek Watersheds. In: Ziemer, Robert R., technical coordinator. Proceedings of the Conference on Coastal Watersheds: the Caspar Creek story, 6 May 1998; Ukiah, California. General Tech. Rep. PSW GTR-168. Albany, CA. USDA Forest Service, Pacific Southwest Research Station, Forest Service. 55-69.</FP>
          <FP SOURCE="FP-2">Lisle, T.E. 1982. Effects of Aggradation and Degradation on Riffle-Pool Morphology in Natural Gravel Channels, Northwestern California. Water Resources Research. 18(6): 1643-1651.</FP>
          <FP SOURCE="FP-2">Luce, C.H. and T.A. Black. 1999. Sediment Production from Forest Roads in Western Oregon. Water Resources Research, Vo. 35, No. 8 p. 2561-2570.</FP>
          <FP SOURCE="FP-2">Luce, C.H. and T.A. Black. 2001. Effects of Traffic and Ditch Maintenance on Forest Road Sediment Production. V64-V74, Proceedings of the Seventh Federal Interagency Sedimentation Conference, 25-29 March 2001, Reno, NV.</FP>
          <FP SOURCE="FP-2">MacDonald, L.H.; Smart, A.W.; Wissmar, R.C. 1991. Monitoring Guidelines to Evaluate Effects of Forestry Activities on Streams in the Pacific Northwest and Alaska. USEPA 910/9-91-001. Seattle, WA, USEPA, Region 10.</FP>
          <FP SOURCE="FP-2">Madej, M. A. 1982. Sediment Transport and Channel Changes in an Aggrading Stream in the Puget Lowland, Washington. In Sediment Budgets and Routing in Forested Drainage Basins. Swanson, et al. Editors. USDA. Pacific Northwest Forest and Range Experiment Station. General Technical Report PNW-141.</FP>
          <FP SOURCE="FP-2">Megahan, W. F. 1972. Subsurface Flow Interception by a Logging Road in Mountains of Central Idaho. pp. 350-356 in Watersheds in Transition. Proceedings of a symposium Watersheds in Transition. Fort Collins, Colorado, June 19-22, 1972. AWRA. Urbana, IL.</FP>
          <FP SOURCE="FP-2">Megahan, W.F. and W.J. Kidd. 1972. Effect of Logging Roads on Sediment Production Rates in the Idaho Batholith. Res. Pap. INT-123. Ogden, UT: USDA Forest Service, Intermountain Forest and Range Experiment Station.</FP>
          <FP SOURCE="FP-2">Megahan, W.F., J.P. Potyondy, and K.A. Seyedbagheri. 1992 . Best Management Practices and Cumulative Effects from Sedimentation in the South Fork Salmon River: an Idaho Case Study. Pages 401-414 in R.J. Naiman, ed., Watershed Management: Balancing Sustainability and Environmental Change. New York, NY, Springer-Verlag.</FP>
          <FP SOURCE="FP-2">Mills, K., L. Dent and J. Robben., 2003. Oregon Department of Forestry Wet Season Road Use Monitoring Project Final Report. Oregon Department of Forestry Forest Practices Monitoring Program Technical Report # 17. June, 2003.</FP>
          <FP SOURCE="FP-2">Montgomery, D.R. 1994. Road Surface Drainage, Channel Initiation, and Slope Instability. Water Resources Research. 30(6): 1925-1932.</FP>
          <FP SOURCE="FP-2">NCASI. 2001. Forest Roads and Aquatic Ecosystems: A Review of Causes, Effects and Management Practices. Pages 70. National Committee for Air and Stream Improvement, Corvallis, Oregon.</FP>
          <FP SOURCE="FP-2">Neary, D.G., G.G. Ice, C.R. Jackson. 2009. Linkages Between Forest Soils and Water Quality and Quantity. Forest Ecology and Management. 258(10):2269-2281.</FP>
          <FP SOURCE="FP-2">Nelson, N., Cissel, R., Black, T., Luce, C. 2011. Monitoring Road Decommissioning in the Mann Creek Watershed: Post-storm Report Payette National Forest. US Department of Agriculture, Forest Service, Rocky Mountain Research Station. 33 pp.</FP>
          <FP SOURCE="FP-2">Norris, L.A.; Lorz, H.W.; Gregory, S.V. 1991. Forest Chemicals. In: Meehan, W.R., ed. Influences of Forest and Rangeland Management on Salmonid Fishes and their Habitats. Spec. Publ. 19. Bethesda, MD: American Fisheries Society: 207-296.</FP>
          <FP SOURCE="FP-2">Patric, J.H. 1976. Soil Erosion in the Eastern Forest. Journal of Forestry. 74(10): 671-677.</FP>
          <FP SOURCE="FP-2">Rehder, K.J. and J.D. Stednick, 2007. Effectiveness of Erosion and Sediment Control Practices for Forest Roads. Report to San Dimas Development and Technology Laboratory, USDA Forest Service, San Dimas, CA.</FP>
          <FP SOURCE="FP-2">Reid, L. M. and T. Dunne. 1984. Sediment Production from Forest Road Surfaces. Water Resources Research 20: 1753-1761.</FP>
          <FP SOURCE="FP-2">Rhodes, J.J.; McCullough, D.A.; Espinosa, F.A., Jr. 1994. A Coarse Screening Process for Evaluation of the Effects of Land Management Activities on Salmon Spawning and Rearing Habitat in ESA Consultations. Tech. Rep. 94-4. Portland, OR: Columbia River Intertribal Fish Commission.</FP>
          <FP SOURCE="FP-2">Rothwell, R.L. 1983. Erosion and Sediment Control at Road-Stream Crossings. Forestry Chronicle 23: 62-66.</FP>
          <FP SOURCE="FP-2">Trautman, M.B. 1933. The General Effects of Pollution on Ohio Fish Life. Transactions of the American Fisheries Society. 63:69-72.</FP>
          <FP SOURCE="FP-2">USDA Forest Service. 2000. Water &amp; the Forest Service. USDA Forest Service, Washington, DC. FS-660. January 2000.</FP>
          <FP SOURCE="FP-2">USDA Forest Service. 2008. Who Owns America's Forests? NRS-INF-06-08, May 2008. p. 2.</FP>

          <FP SOURCE="FP-2">USDA Forest Service. 2011. Watershed Condition Framework. FS-977, May 2011.<E T="03">http://www.fs.fed.us/publications/watershed/</E>(visited April 2012).</FP>

          <FP SOURCE="FP-2">USDA Forest Service. 2008. The US Forest Service—An Overview.<E T="03">http://www.fs.fed.us/documents/USFS_An_Overview_0106MJS.pdf</E>(visited April 2012).</FP>

          <FP SOURCE="FP-2">USDA Forest Service. 2012. National Best Management Practices for Water Quality Management on National Forest System Lands, Volume 1: National Core BMP Technical Guide, FS-990a. Washington, DC: USDA Forest Service. April 2012.<E T="03">http://www.fs.fed.us/biology/resources/pubs/watershed/index.html</E>(visited April 2012).</FP>
          <FP SOURCE="FP-2">USEPA. 2005. National Management Measures to Control Nonpoint Pollution from Forestry. EPA-841-B-05-001. Washington, DC: USEPA Office of Water. April 2005.</FP>

          <FP SOURCE="FP-2">USEPA. 2012. The Assessment, TMDL, Tracking And ImplementatioN System (ATTAINS).<E T="03">http://iaspub.epa.gov/waters10/attains_nation_cy.control</E>(visited April 2012).</FP>
          <FP SOURCE="FP-2">Van Lear, D.H.; Taylor, G.B.; Hansen, W.F. 1995. Sedimentation in the Chattooga River Watershed. Tech. Pap. 19. Clemson, SC. Clemson University, Department of Forest Resources.</FP>
          <FP SOURCE="FP-2">Wemple, B.C.; Jones, J.A.; Grant, G.E. 1996. Channel Network Extension by Logging Roads in Two Basins, Western Cascades, Oregon. Water Resources Bulletin. 32(6): 1195-1207.</FP>
          <FP SOURCE="FP-2">Williams, C.D. 1999. Current Status of Roads on National Forest System Lands. Pacific Rivers Council. January, 1999.</FP>
          <FP SOURCE="FP-2">Williams, T.M.; Hook, D.D.; Limpscomb, D.J. 1999. Effectiveness of Best Management Practices to Protect Water Quality in the South Carolina Piedmont. In: Haywood, James D., ed. Proceedings of the Tenth Biennial Southern Silvicultural Research Conference. Gen. Tech. Rep. SRS-30. Asheville, NC: USDA Forest Service, Southern Research Station: 271-276.</FP>
        </EXTRACT>
        <SIG>
          <DATED>Dated: May 18, 2012.</DATED>
          <NAME>Nancy K. Stoner,</NAME>
          <TITLE>Acting Assistant Administrator.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12524 Filed 5-21-12; 11:15 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 180</CFR>
        <DEPDOC>[EPA-HQ-OPP-2012-0001; FRL-9347-8]</DEPDOC>
        <SUBJECT>Receipt of Several Pesticide Petitions Filed for Residues of Pesticide Chemicals in or on Various Commodities</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of filing of petitions and request for comment.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This document announces the Agency's receipt of several initial filings of pesticide petitions requesting the establishment or modification of regulations for residues of pesticide chemicals in or on various commodities.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before June 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by docket identification (ID) number and the pesticide petition number (PP) of interest as shown in the body of this document, by one of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>
            <E T="03">http://www.regulations.gov</E>. Follow the online<PRTPAGE P="30482"/>instructions for submitting comments. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute.</P>
          <P>•<E T="03">Mail:</E>OPP Docket, Environmental Protection Agency Docket Center (EPA/DC), Mail Code: 28221T, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001.</P>
          <P>•<E T="03">Hand Delivery:</E>To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at<E T="03">http://www.epa.gov/dockets/contacts.htm.</E>
          </P>

          <P>Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at<E T="03">http://www.epa.gov/dockets.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>A contact person, with telephone number and email address, is listed at the end of each pesticide petition summary. You may also reach each contact person by mail at Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001.</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:</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 provides 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 at the end of the pesticide petition summary of interest.</P>
        <HD SOURCE="HD2">B. What should I consider as I prepare my comments for EPA?</HD>
        <P>1.<E T="03">Submitting CBI.</E>Do not submit this information to EPA through regulations.gov 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 procedures set forth in 40 CFR part 2.</P>
        <P>2.<E T="03">Tips for preparing your comments.</E>When submitting comments, remember to:</P>

        <P>i. Identify the document by docket ID number and other identifying information (subject heading,<E T="04">Federal Register</E>date and page number).</P>
        <P>ii. 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>iii. Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes.</P>
        <P>iv. Describe any assumptions and provide any technical information and/or data that you used.</P>
        <P>v. 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>vi. Provide specific examples to illustrate your concerns and suggest alternatives.</P>
        <P>vii. Explain your views as clearly as possible, avoiding the use of profanity or personal threats.</P>
        <P>viii. Make sure to submit your comments by the comment period deadline identified.</P>
        <P>3.<E T="03">Environmental justice.</E>EPA seeks to achieve environmental justice, the fair treatment and meaningful involvement of any group, including minority and/or low-income populations, in the development, implementation, and enforcement of environmental laws, regulations, and policies. To help address potential environmental justice issues, the Agency seeks information on any groups or segments of the population who, as a result of their location, cultural practices, or other factors, may have atypical or disproportionately high and adverse human health impacts or environmental effects from exposure to the pesticides discussed in this document, compared to the general population.</P>
        <HD SOURCE="HD1">II. What action is the agency taking?</HD>
        <P>EPA is announcing its receipt of several pesticide petitions filed under section 408 of the Federal Food, Drug, and Cosmetic Act (FFDCA), 21 U.S.C. 346a, requesting the establishment or modification of regulations in 40 CFR part 174 or part 180 for residues of pesticide chemicals in or on various food commodities. The Agency is taking public comment on the requests before responding to the petitioners. EPA is not proposing any particular action at this time. EPA has determined that the pesticide petitions described in this document contain the data or information prescribed in FFDCA section 408(d)(2); however, EPA has not fully evaluated the sufficiency of the submitted data at this time or whether the data support granting of the pesticide petitions. After considering the public comments, EPA intends to evaluate whether and what action may be warranted. Additional data may be needed before EPA can make a final determination on these pesticide petitions.</P>

        <P>Pursuant to 40 CFR 180.7(f), a summary of each of the petitions that are the subject of this document, prepared by the petitioner, is included in a docket EPA has created for each rulemaking. The docket for each of the petitions is available online at<E T="03">http://www.regulations.gov</E>.</P>
        <P>As specified in FFDCA section 408(d)(3), (21 U.S.C. 346a(d)(3)), EPA is publishing notice of the petition so that the public has an opportunity to comment on this request for the establishment or modification of regulations for residues of pesticides in or on food commodities. Further information on the petition may be obtained through the petition summary referenced in this unit.</P>
        <HD SOURCE="HD2">New Tolerances</HD>
        <P>1.<E T="03">PP 2E7988.</E>(EPA-HQ-OPP-2012-0204). Interregional Research Project Number 4 (IR-4), 500 College Road East, Suite 201 W, Princeton, NJ 08540, requests to establish tolerances in 40 CFR part 180 for residues of the insecticide imidacloprid (1-[6-chloro-3-pyridinyl) methyl]-<E T="03">N</E>-nitro-2-imidazolidinimine) and its metabolites containing the 6-chloropyridinyl moiety, in or on fish at 0.05 parts per million (ppm) and fish-shellfish, mollusk at 0.05 ppm. Adequate enforcement methodologies, Bayer gas chromatography/mass spectrometry (GC/MS) method 00200 and Bayer GC/MS method 00191, is available to enforce the tolerance expression. Contact: Sidney Jackson, (703) 305-<PRTPAGE P="30483"/>7610, email address:<E T="03">jackson.sidney@epa.gov.</E>
        </P>
        <P>2.<E T="03">PP 0F7690.</E>(EPA-HQ-OPP-2012-0234). BASF Corporation, 26 Davis Drive, P.O. Box 13528, Research Triangle Park, NC 27709, requests to establish tolerances in 40 CFR part 180 for the insecticide for the combined residues of alpha-cypermethrin and cypermethrin including zeta-cypermethrin (<E T="03">S</E>)-α-cyano-3-phenoxy-benzyl (1<E T="03">R,</E>3<E T="03">R</E>)-3-(2,2-dichlorovinyl)-2,2-dimethylcyclopropane-carboxylate and (<E T="03">R</E>)-α-cyano-3-phenoxybenzyl (1<E T="03">S,</E>3S)-3-(2,2-dichlorovinyl)-2,2-dimethylcyclopropane-carboxylate, in or on tree nuts (group 14); dried shelled pea and bean, except soybean (subgroup 6C); corn, grain; corn, corn, sweet; soybeans; and sugar beet roots at 0.05 ppm; succulent shelled pea and bean (subgroup 6B); and root and tuber vegetables (group 1) at 0.1 ppm; cucurbit vegetables (group 9); fruiting vegetables (group 8); sugar beet, tops; and wheat, grain at 0.2 ppm; citrus fruit (group 10) at 0.35 ppm; cottonseed, legume, edible podded vegetable (subgroup 6A); and sorghum, grain at 0.5 ppm; rice, grain at 1.5 ppm; citrus, dried pulp at 1.8 ppm;<E T="03">Brassica,</E>head and stem (subgroup 5A) at 2.0 ppm; citrus, oil at 4.0 ppm; leafy vegetable, except<E T="03">Brassica</E>(group 4) at 10 ppm; and alfalfa, hay at 15 ppm. Cypermethrin is a pyrethroid insecticide consisting of three asymmetric carbon atoms, and therefore, 8 stereo-isomeric mixtures. Cypermethrin is also characterized as consisting of cis- and trans-configured diastereo-isomeric components based on orientation around its cyclopropane ring. Zeta-cypermethrin and alpha-cypermethrin are optimized stereo-isomeric mixtures of cypermethrin, each consisting of 4 major components. These zeta-cypermethrin and alpha-cypermethrin components are the enriched trans- (alpha-<E T="03">S</E>) and cis (cis2-<E T="03">R</E>) isomeric orientations of cypermethrin, respectively. There is a practical analytical method for detecting and measuring levels of cypermethrin in or on food with a limit of detection (LOD) that allows monitoring of food with residues at or above the levels set in these tolerances GC with electron capture detection (GC/ECD) and liquid chromatography with tandem mass spectrometry (LC/MS/MS) methods are available. Contact: Bewanda Alexander, (703) 305-7460, email address:<E T="03">alexander.bewanda@epa.gov.</E>
        </P>
        <P>3.<E T="03">PP 1F7894.</E>(EPA-HQ-OPP-2011-0668). E.I. du Pont de Nemours &amp; Company (“DuPont”), 1007 Market Street, Wilmington, DE 19898, requests to establish tolerances in 40 CFR part 180 for residues of the insecticide cyantraniliprole, 3-bromo-1-(3-chloro-2-pyridinyl)-<E T="03">N</E>-[4-cyano-2-methyl-6-[(methylamino)carbonyl]phenyl]-1<E T="03">H</E>-pyrazole-5-carboxamide, including its metabolites and degradates, in or on almond hulls at 30 ppm; berries and small fruits, bushberries (crop subgroup 13-07B) at 4 ppm;<E T="03">Brassica</E>(cole) leafy vegetables, head and stem<E T="03">Brassica</E>(crop subgroup 5A) at 2 ppm;<E T="03">Brassica</E>(cole) leafy vegetables, leafy<E T="03">Brassica</E>greens (crop subgroup 5B) at 30 ppm; bulb vegetables, onion, bulb (crop subgroup 3-07A) at 0.04 ppm; bulb vegetables, onion, green (crop subgroup 3-07B) at 8 ppm; cattle, fat at 0.01 ppm; cattle, liver at 0.04 ppm; cattle, meat at 0.01 ppm; cattle, meat byproducts, except liver at 0.01 ppm; cherries at 6 ppm; citrus fruits (crop group 10-10) at 0.7 ppm; cotton gin byproduct at 10 ppm; cucurbit vegetables (crop group 9) at 0.3 ppm; fruiting vegetables (crop group 8-10) at 2 ppm; goat, fat at 0.01 ppm; goat, liver at 0.04 ppm; goat, meat at 0.01 ppm; goat, meat byproducts, except liver at 0.01 ppm; hog, fat at 0.01 ppm; hog, liver at 0.04 ppm; hog, meat at 0.01 ppm; hog, meat byproducts, except liver at 0.01 ppm; horse, fat at 0.01 ppm; horse, liver at 0.04 ppm; horse, meat at 0.01 ppm; horse, meat byproducts, except liver at 0.01 ppm; leafy vegetables (except<E T="03">Brassica</E>vegetables) (crop group 4) at 15 ppm; milk at 0.01 ppm; milk, fat at 0.04 ppm; oilseeds, except cotton gin byproduct (crop group 20) at 1 ppm; pome fruits (crop group 11-10) at 0.8 ppm; root and tuber vegetables, tuberous and corm vegetables (crop subgroup 1C) at 0.15 ppm; sheep, fat at 0.01 ppm; sheep, liver at 0.04 ppm; sheep, meat at 0.01 ppm; sheep, meat byproducts, except liver at 0.01 ppm; stone fruits, except cherries (crop group 12) at 1.5 ppm; tree nuts, except almond hulls (crop group 14) at 0.06 ppm; citrus, oil at 6 ppm; citrus, raw peel at 2 ppm; and potato, wet peel at 0.3 ppm. In addition, DuPont is proposing pursuant to section 408 (d) of the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 346a (d), to amend 40 CFR part 180 to establish indirect or inadvertent tolerances for residues of cyantraniliprole, 3-bromo-1-(3-chloro-2-pyridinyl)-<E T="03">N</E>-[4-cyano-2-methyl-6-[(methylamino)carbonyl]phenyl]-1<E T="03">H</E>-pyrazole-5-carboxamide, including its metabolites and degradates, in or on the following commodities: Foliage of legume vegetables (crop group 7), forage at 0.15 ppm, hay at 0.6 ppm; forage, fodder and straw of cereal grains (crop group 16), forage at 0.06 ppm, hay and straw at 0.15 ppm; grass forage, fodder, and hay (crop group 17), forage at 0.06 ppm, hay at 0.15 ppm; leaves of root and tuber vegetables (human food or animal feed) (crop group 2) at 0.04 ppm; nongrass animal feeds (forage, fodder, straw, and hay) (crop group 18), forage at 0.06 ppm, hay at 0.15 ppm; peanut hay at 0.03 ppm; and root and tuber vegetables, root vegetables (crop subgroup 1A) at 0.03 ppm. Adequate analytical methodology, high-pressure liquid chromatography with (HPLC) electrospray tandem mass spectrometry (ESI-MS/MS) detection, is available for enforcement purposes. Contact: Thomas Harris, (703) 308-9423, email address:<E T="03">harris.thomas@epa.gov.</E>
        </P>
        <P>4.<E T="03">PP 1F7953.</E>(EPA-HQ-OPP-2012-0060). Mitsui Chemicals Agro, Inc., c/o Landis International, Inc., P.O. Box 5126, Valdosta, GA 31603, requests to establish a tolerance in 40 CFR part 180 for residues of the insecticide dinotefuran, (<E T="03">RS</E>)-1-methyl-2-nitro-3-(tetrahydro-3-furylmethyl)guanidine and its major metabolites DN, 1-methyl-3-(tetrahydro-3-furylmethyl)guanidine, and UF, 1-methyl-3-(tetrahydro-3-furylmethyl)-urea, in or on rice, grain at 10 ppm. Practical analytical methodology for detecting and measuring levels of dinotefuran and its metabolites, UF and DN, in or on raw agricultural commodities has been conducted. Dinotefuran and its metabolites in the plant matrix extracts were analyzed by HPLC and thin layer chromatography (TLC) to determine the number of metabolites and their relative distribution in the samples. The HPLC method was validated for determination of dinotefuran, DN and UF in or on tomatoes and peppers, cucurbits,<E T="03">Brassica,</E>grapes, potatoes, mustard greens, rice, and lettuce for raw agricultural commodity matrices and in or on tomato paste and puree, grape juice and raisins and potato chips, granules, and wet peel, rice grain, hulls, and bran for processed commodity matrices. After extraction with a water/acetonitrile mixture and clean up with hexane and extraction columns, concentrations of dinotefuran and its metabolites were quantified after HPLC separation by MS/MS detection. Contact: Rita Kumar, (703) 308-8291, email address:<E T="03">kumar.rita@epa.gov.</E>
        </P>
        <P>5.<E T="03">PP 1F7956.</E>(EPA-HQ-OPP-2012-0177). Syngenta Crop Protection, LLC., P.O. Box 18300, Greensboro, NC 27419-8300, requests to establish tolerances in 40 CFR part 180 for residues of the fungicide cyproconazole, in or on peanut, nutmeat at 0.03 ppm; peanut, hay at 6 ppm; peanut, meal at 0.03 ppm; peanut, butter at 0.03 ppm; and peanut, refined oil at 0.03 ppm. An adequate analytical method for cyproconazole, AM-0842-0790-0, is available for<PRTPAGE P="30484"/>enforcement purposes. Determination and quantitation for cyproconazole are conducted using GC employing mass selective detection (MSD). A method for analysis of triazole metabolites is available using Morse Labs Analytical Method No. Meth-160, Revision #2. Residues are quantified by GC equipped with a nitrogen-phosphorous detector (NPD). The limit of quantitation (LOQ) is 0.01 ppm for cyproconazole parent. The analytical method, AM-0842-0790-0, is available in the Pesticide Analytical Manual, Vol. II (PAM II). Contact: Shaunta Hill, (703) 347-8961, email address:<E T="03">hill.shaunta@epa.gov.</E>
        </P>
        <P>6.<E T="03">PP 1F7967.</E>(EPA-HQ-OPP-2012-0092). BASF Corporation, c/o Landis International, Inc., P.O. Box 5126, 3185 Madison Highway, Valdosta, GA 31603, requests to establish a tolerance in 40 CFR part 180 for residues of the insecticide dinotefuran, (<E T="03">RS</E>)-1-methyl-2-nitro-3-(tetrahydro-3-furylmethyl)guanidine, in or on all food/feed items (other than those already covered by a higher tolerance as a result of use on growing crops) in food/feed handling establishments where food products are held, processed or prepared at 0.01 ppm. Practical analytical methodology for detecting the magnitude of residues that accumulate in/on perishable food matrices (butter, processed meat, lettuce, bread, milk, peaches and pie), on non-perishable food matrices ((candy M&amp;Ms), rice, crackers, potatoes and flour) and on bare surfaces (dinner plates, aluminum foil and table knives) following a spot and crack and crevice treatment of dinotefuran in a simulated food handling establishment has been conducted. The analytical method included sample extraction with acetonitrile or acetonitrile/water in conjunction with a solid-phase extraction/clean-up of extracts prior to analysis. Quantitation of dinotefuran in extracts was performed using LC/MS/MS. Contact: Rita Kumar, (703) 308-8291, email address:<E T="03">kumar.rita@epa.gov.</E>
        </P>
        <P>7.<E T="03">PP 2F7973.</E>(EPA-HQ-OPP-2012-0269). BASF Corporation, P.O. Box 13528, Research Triangle Park, NC 27709, requests to establish tolerances in 40 CFR part 180 for residues of the insecticide cyflumetofen, in or on almond, hulls at 4.0 ppm; fruit, citrus, group 10 at 0.3 ppm; citrus, oil at 16 ppm; grape at 0.6 ppm; grape, raisin at 0.9 ppm; fruit, pome, group 11 at 0.3 ppm; strawberry at 0.6 ppm; tomato at 0.2 ppm; and nut, tree, group 14 at 0.01 ppm. The analytical method D1003, “Method for Determination of Residues of Cyflumetofen (BAS 9210 I) and its Metabolites in Plant Matrices using LC-MS/MS” was validated successfully for the analysis of cyflumetofen and its metabolites (B-1, AB-6, and AB-7) in tomato (high water), soybean seed (high oil), rice grain (high starch), dry bean (high protein), orange (high acid), raisins (process fraction), orange oil (process fraction), orange juice (process fraction), and rice straw (feed). Contact: Driss Benmhend, (703) 308-9525, email address:<E T="03">benmhend.driss@epa.gov.</E>
        </P>
        <P>8.<E T="03">PP 2F7976.</E>(EPA-HQ-OPP-2012-0282). Syngenta Crop Protection, LLC., P.O. Box 18300, Greensboro, NC 27419, requests to establish tolerances in 40 CFR part 180 for residues of the fungicide azoxystrobin (methyl (<E T="03">E</E>)-2-(2-[6-(2-cyanophenoxy)pyrimidin-4-yloxy]phenyl)-3-methoxyacrylate) and the<E T="03">Z</E>isomer of azoxystrobin, (methyl (<E T="03">Z</E>)-2-(2-[6-(2-cyanophenoxy)pyrimidin-4-yloxy] phenyl)-3-methoxyacrylate), in or on oat, forage at 4 ppm; oat, hay at 7 ppm; oat, straw at 3 ppm; oat, grain at 1 ppm; rye, forage at 4 ppm; rye, straw at 0.8 ppm and rye, grain at 0.07 ppm and in or on the animal commodities poultry, meat at 0.01 ppm; poultry, fat at 0.01 ppm; poultry, liver at 0.2 ppm; egg at 0.1 ppm; cattle, liver at 0.5 ppm; cattle, kidney at 0.1 ppm; hog, liver at 0.2 ppm and hog, kidney at 0.03 ppm. An adequate analytical method, GC-NPD or in mobile phase by HPLC with ultra-violet (UV) detection (HPLC-UV), is available for enforcement purposes with a LOD that allows monitoring of food with residues at or above the levels set in these tolerances. The Analytical Chemistry section of the EPA concluded that the method(s) are adequate for enforcement. Analytical methods are also available for analyzing meat, milk, poultry and eggs which also underwent successful independent laboratory validations. Contact: Erin Malone, (703) 347-0253, email address:<E T="03">malone.erin@epa.gov.</E>
        </P>
        <P>9.<E T="03">PP 2F7984.</E>(EPA-HQ-OPP-2012-0283). Syngenta Crop Protection, LLC., P.O. Box 18300, Greensboro, NC 27419, requests to establish a tolerance in 40 CFR part 180 for residues of the fungicide azoxystrobin (methyl (<E T="03">E</E>)-2-(2-[6-(2-cyanophenoxy) pyrimidin-4-yloxy]phenyl)-3-methoxyacrylate) and the<E T="03">Z</E>isomer of azoxystrobin, (methyl (<E T="03">Z</E>)-2-(-[6-(2-cyanophenoxy)pyrimidin-4-yloxy] phenyl)-3-methoxyacrylate), in or on the animal commodities poultry, meat at 0.01 ppm; poultry, fat at 0.01 ppm; poultry, liver at 0.2 ppm; egg at 0.1 ppm; cattle, liver at 0.5 ppm; cattle, kidney at 0.1 ppm; hog, liver at 0.2 ppm and hog, kidney at 0.03 ppm. An adequate analytical method, GC-NPD or in mobile phase by HPLC with ultra-violet (UV) detection (HPLC-UV), is available for enforcement purposes with a LOD that allows monitoring of food with residues at or above the levels set in these tolerances. The Analytical Chemistry section of the EPA concluded that the method(s) are adequate for enforcement. Analytical methods are also available for analyzing meat, milk, poultry and eggs which also underwent successful independent laboratory validations. Contact: Erin Malone, (703) 347-0253, email address:<E T="03">malone.erin@epa.gov.</E>
        </P>
        <P>10.<E T="03">PP 2F7997.</E>(EPA-HQ-OPP-2012-0262). BASF Corporation, P.O. Box 13528, Research Triangle Park, NC 27709, requests to establish a tolerance in 40 CFR part 180 for residues of the herbicide topramezone, 3-(4,5-dihydro-3-isoxazolyl)-2-methyl-4-(methylsulfonyl)phenyl](5-hydroxy-1-methyl-1<E T="03">H</E>-pyrazol-4-yl)methanone, in or on fish at 0.05 ppm and shellfish at 0.05 ppm. Suitable independently validated analytical methods (for animal matrices), LC/MS/MS, are submitted for detecting and measuring topramezone levels in or on food with an application LOD that is satisfactory for enforcing the requested tolerances. Contact: Bethany Benbow, (703) 347-8072, email address:<E T="03">benbow.bethany@epa.gov.</E>
        </P>
        <P>11.<E T="03">PP 2F8005.</E>(EPA-HQ-OPP-2012-0308). K-I Chemical U.S.A., Inc., c/o Landis International, Inc., 3185 Madison Highway, P.O. Box 5126,Valdosta, GA 31603-5126, requests to establish tolerances in 40 CFR part 180 for residues of the herbicide pyroxasulfone (3-[(5-(difluoromethoxy)-1-methyl-3-(trifluoromethyl) pyrazole-4-ylmethylsulfonyl]-4,5-dihydro-5,5-dimethyl-1,2-oxazole) and its metabolites M-3 (5-difluoromethoxy-1-methyl-3-trifluoromethyl-1<E T="03">H</E>-pyrazol-4-carboxylic acid), M-25 (5-difluoromethoxy-3-trifluoromethyl-1<E T="03">H</E>-pyrazol-4-yl)methanesulfonic acid and M-28 (3-[1-carboxy-2-(5,5-dimethyl-4,5-dihydroisoxazol-3-ylthio)ethylamino]-3-oxopropanoic acid) calculated as the stoichiometric equivalent of pyroxasulfone, in or on soybean, seed at 0.07 ppm; and pyroxasulfone (3-[(5-(difluoromethoxy)-1-methyl-3-(trifluoromethyl) pyrazole-4-ylmethylsulfonyl]-4,5-dihydro-5,5-dimethyl-1,2-oxazole) and its metabolites M-1 (5-difluoromethoxy-1-methyl-3-trifluoromethyl-1<E T="03">H</E>-pyrazol-4-ylmethanesulfonic acid), M-3 (5-difluoromethoxy-1-methyl-3-trifluoromethyl-1<E T="03">H</E>-pyrazol-4-carboxylic acid), and M-25 (5-difluoromethoxy-3-trifluoromethyl-1<E T="03">H</E>-pyrazol-4-yl)methanesulfonic acid) calculated as the stoichiometric equivalent of pyroxasulfone in or on soybean, forage at 1.5 ppm and soybean, hay at 2.0 ppm. EPA has approved an analytical<PRTPAGE P="30485"/>enforcement methodology including LC/MS/MS to enforce the tolerance expression for pyroxasulfone. Contact: Michael Walsh, (703) 308-2972, email address:<E T="03">walsh.michael@epa.gov.</E>
        </P>
        <HD SOURCE="HD2">Amended Tolerances</HD>
        <P>1.<E T="03">PP 2E7993.</E>(EPA-HQ-OPP-2012-0241). Interregional Research Project Number 4 (IR-4), 500 College Road East, Suite 201 W, Princeton, NJ 08540, requests to amend the tolerance in 40 CFR 180.300 by increasing the tolerance for residues of the plant regulator ethephon, in or on tomato from 2.0 ppm to 3.5 ppm. The increased tolerance is required to accommodate tomatoes of less than one inch in diameter grown in the greenhouse. Adequate methods for purposes of enforcement of ethephon tolerances in plant commodities, ruminant tissues and milk are available. The FDA (PAM Vol. I Appendix, 8/93) indicates that ethephon is not recovered through any of the Multiresidue Protocols. Contact: Andrew Ertman, (703) 308-9367, email address:<E T="03">ertman.andrew@epa.gov.</E>
        </P>
        <P>2.<E T="03">PP 2F7975.</E>(EPA-HQ-OPP-2012-0246). Syngenta Crop Protection, LLC, P.O. Box 18300, Greensboro, NC 27419, requests to amend the tolerances in 40 CFR 180.434 for residues of the fungicide propiconazole, 1<E T="03">H</E>-1,2,4-Triazole, 1-([2-(4-dichlorophenyl)-4-propyl-1,3-dioxolan-2-yl]methyl)-, and its metabolites determined as 2,4-dichlorobenzoic acid and expressed as parent compound, in or on barley, hay from 1.4 ppm to 30 ppm; barley, straw from 10 ppm to 20 ppm; barley, grain from 0.3 ppm to 3 ppm; oat, forage from 1.7 ppm to 4 ppm; oat, hay from 1.4 ppm to 15 ppm; oat, grain from 0.3 ppm to 3 ppm; rye, forage from 1.7 ppm to 9 ppm; rye, straw from 10 ppm to 9 ppm; wheat, forage from 1.7 ppm to 15 ppm; wheat, hay from 1.4 ppm to 30 ppm; wheat, straw from 10 ppm to 20 ppm; and grain, aspirated fraction from 30 ppm to 108 ppm. Analytical methods adequate to determine parent propiconazole, total propiconazole as 2,4-dichlorobenzoic acid, and the triazole metabolites (1,2,4-Triazole, Triazole Alanine, and Triazole Acetic Acid) are available for enforcement purposes with LOD that allow monitoring of food with residues at or above the levels set in this tolerance. Contact: Heather Garvie, (703) 308-0034, email address:<E T="03">garvie.heather@epa.gov.</E>
        </P>
        <P>3.<E T="03">PP 2F7976.</E>(EPA-HQ-OPP-2012-0282). Syngenta Crop Protection, LLC., P.O. Box 18300, Greensboro, NC 27419, requests to amend the tolerances in 40 CFR 180.507 for residues of the fungicide azoxystrobin (methyl (<E T="03">E</E>)-2-(2-[6-(2-cyanophenoxy) pyrimidin-4-yloxy]phenyl)-3-methoxyacrylate) and the<E T="03">Z</E>isomer of azoxystrobin, (methyl (<E T="03">Z</E>)-2-(2-[6-(2-cyanophenoxy)pyrimidin-4-yloxy] phenyl)-3-methoxyacrylate), in or on animal commodities cattle, fat from 0.03 ppm to 0.3 ppm; hog, fat from 0.010 ppm to 0.1 ppm and hog, meat from 0.01 to 0.02 ppm. An adequate analytical method, GC-NPD or in mobile phase by HPLC with ultra-violet (UV) detection (HPLC-UV), is available for enforcement purposes with a LOD that allows monitoring of food with residues at or above the levels set in these tolerances. The Analytical Chemistry section of the EPA concluded that the method(s) are adequate for enforcement. Analytical methods are also available for analyzing meat, milk, poultry and eggs which also underwent successful independent laboratory validations. Contact: Erin Malone, (703) 347-0253, email address:<E T="03">malone.erin@epa.gov.</E>
        </P>
        <P>4.<E T="03">PP 2F7981.</E>(EPA-HQ-OPP-2007-0099). Nichino America, Inc., 4550 New Linden Hill Road, Suite 501, Wilmington, DE 19808, has requested that the established tolerances listed in 40 CFR 180.639 for residues of the insecticide flubendiamide<E T="03">per se,</E>(<E T="03">N</E>
          <SU>2</SU>-[1,1-dimethyl-2-(methylsulfonyl)ethyl]-3-iodo-<E T="03">N</E>

          <SU>1</SU>-[2-methyl-4-[1,2,2,2-tetrafluoro-1-(trifluoromethyl) ethyl]phenyl]-1,2-benzenedicarboxamide), in or on apple, wet pomace be increased from 2.0 ppm to 5.0 ppm; and fruit, pome, group 11 be increased from 0.70 ppm to 1.5 ppm. Adequate enforcement methodology, LC/MS/MS detection (Methods 00816/M002 and 00912), is available to enforce the tolerance expression. Contact: Carmen Rodia, (703) 306-0327, email address:<E T="03">rodia.carmen@epa.gov.</E>
        </P>
        <P>5.<E T="03">PP 2F7984.</E>(EPA-HQ-OPP-2012-0283). Syngenta Crop Protection, LLC., P.O. Box 18300, Greensboro, NC 27419, requests to amend the tolerances in 40 CFR 180.507 for residues of the fungicide azoxystrobin (methyl (<E T="03">E</E>)-2-(2-[6-(2-cyanophenoxy) pyrimidin-4-yloxy]phenyl)-3-methoxyacrylate) and the<E T="03">Z</E>isomer of azoxystrobin, (methyl (<E T="03">Z)</E>-2-(2-[6-(2-cyanophenoxy)pyrimidin-4-yloxy] phenyl)-3-methoxyacrylate), in or on barley, hay from 15 ppm to 7 ppm; barley, straw from 7 ppm to 8 ppm; barley, grain from 3 ppm to 2 ppm; wheat, forage from 25 ppm to 10 ppm; wheat, hay from 15 ppm to 20 ppm; wheat, straw from 4 ppm to 6 ppm and grain, aspirated fraction from 420 ppm to 460 ppm and in or on the animal commodities cattle, fat from 0.03 ppm to 0.3 ppm; hog, fat from 0.010 ppm to 0.1 ppm and hog, meat from 0.01 to 0.02 ppm. An adequate analytical method, GC-NPD or in mobile phase by HPLC with ultra-violet (UV) detection (HPLC-UV), is available for enforcement purposes with a LOD that allows monitoring of food with residues at or above the levels set in these tolerances. The Analytical Chemistry section of the EPA concluded that the method(s) are adequate for enforcement. Analytical methods are also available for analyzing meat, milk, poultry and eggs which also underwent successful independent laboratory validations. Contact: Erin Malone, (703) 347-0253, email address:<E T="03">malone.erin@epa.gov.</E>
        </P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 180</HD>
          <P>Environmental protection, Agricultural commodities, Feed additives, Food additives, Pesticides and pests, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: May 9, 2012.</DATED>
          <NAME>Lois Rossi,</NAME>
          <TITLE>Director, Registration Division, Office of Pesticide Programs.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12126 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
        <CFR>47 CFR Part 79</CFR>
        <DEPDOC>[MB Docket No. 11-154; Report No. 2951]</DEPDOC>
        <SUBJECT>Petitions for Reconsideration of Action in Rulemaking Proceeding</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Communications Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Petition for reconsideration.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>In this document, Petitions for Reconsideration (Petitions) have been filed in the Commission's Rulemaking proceeding by the Consumer Electronics Association, Telecommunications for the Deaf and Hard of Hearing, Inc.,<E T="03">et al.,</E>and TVGuardian, LLC.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Oppositions to the Petition must be filed by June 7, 2012. Replies to an opposition must be filed June 18, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Federal Communications Commission, 445 12th Street SW., Washington, DC 20554.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Diana Sokolow,<E T="03">Diana.Sokolow@fcc.gov mailto: Diana.Sokolow@fcc.gov,</E>Media Bureau, Policy Division, 202-418-2120.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>This is a summary of Commission's document, Report No. 2951, released May 17, 2012. The full text of this document is available for viewing and copying in Room CY-B402, 445 12th Street SW.,<PRTPAGE P="30486"/>Washington, DC or may be purchased from the Commission's copy contractor, Best Copy and Printing, Inc. (BCPI) (1-800-378-3160). The Commission will not send a copy of this<E T="03">Notice</E>pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A), because this<E T="03">Notice</E>does not have an impact on any rules of particular applicability.</P>
        <P>
          <E T="03">Subject:</E>Closed Captioning of Internet Protocol-Delivered Video Programming: Implementation of the Twenty-First Century Communications and Video Accessibility Act of 2010, published at 77 FR 19480, March 30, 2012, and published pursuant to 47 CFR 1.429(e).<E T="03">See</E>1.4(b)(1) of the Commission's rules (47 CFR 1.4(b)(1)).</P>
        <P>
          <E T="03">Number of Petitions Filed:</E>3.</P>
        <SIG>
          <FP>Federal Communications Commission.</FP>
          <NAME>Marlene H. Dortch,</NAME>
          <TITLE>Secretary, Office of the Secretary, Office of Managing Director.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-12613 Filed 5-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6712-01-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <CFR>50 CFR Part 600</CFR>
        <DEPDOC>[Docket No. 070719377-2189-01]</DEPDOC>
        <RIN>RIN 0648-AV81</RIN>
        <SUBJECT>Confidentiality of Information; Magnuson-Stevens Fishery Conservation and Management Reauthorization Act</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.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The National Marine Fisheries Service (NMFS) proposes revisions to existing regulations governing the confidentiality of information submitted in compliance with any requirement or regulation under the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act or MSA). The purposes of these revisions are to make both substantive and non-substantive changes necessary to comply with the MSA as amended by the 2006 Magnuson-Stevens Fishery Conservation and Management Reauthorization Act (MSRA) and the 1996 Sustainable Fisheries Act (SFA). In addition, revisions are necessary to address some significant issues that concern NMFS' application of the MSA confidentiality provision to requests for information.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments on the proposed rule must be received on or before June 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments on this document, identified by FDMS Docket Number NOAA-NMFS-2012-0030, by any of the following methods:</P>
          <P>•<E T="03">Electronic Submission:</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, then enter NOAA-NMFS-2012-0030 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">Mail:</E>Submit written comments to Karl Moline, NMFS, Fisheries Statistics Division F/ST1, Room 12441, 1315 East West Highway, Silver Spring, MD 20910.</P>
          <P>•<E T="03">Fax:</E>(301) 713-1875; Attn: Karl Moline.</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>without change. 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>Karl Moline at 301-427-8225.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">I. Background</HD>
        <P>The Magnuson-Stevens Act authorizes the Secretary of Commerce (Secretary) to regulate domestic fisheries within the 200-mile U.S. Exclusive Economic Zone (EEZ). 16 U.S.C. 1811. Conservation and management of fish stocks is accomplished through Fishery Management Plans (FMPs). Eight regional fishery management councils (Councils) prepare FMPs and amendments to those plans for fisheries within their jurisdiction. Id. 1853. The Secretary has exclusive authority to prepare and amend FMPs for highly migratory species in the Atlantic Ocean. Id. 1852(a)(3), 1854(g).</P>
        <P>Information collection is an important part of the fishery management process. Conservation and management measures in FMPs and in their implementing regulations must be based on the best scientific information available (see National Standard 2, 16 U.S.C. 1851(a)(2)). Under section 303(a)(5) of the Magnuson-Stevens Act, any Fishery Management Plan a Council or the Secretary prepares must specify the pertinent information to be submitted to the Secretary with respect to commercial, recreational, or charter fishing, and fish processing in the fishery. Id. 1853(a)(5). In addition, section 303(b)(8) provides that an FMP may require that one or more observers be carried onboard a vessel for the purpose of collecting data necessary for the conservation and management of the fishery. Id. 1853(b)(8).</P>
        <P>The Magnuson-Stevens Act sets forth information confidentiality requirements at section 402(b), 16 U.S.C. 1881a(b). Under the Act as amended, the Secretary must maintain the confidentiality of any information that is submitted in compliance with the Act and any observer information. The MSA includes exceptions to these confidentiality requirements. Some exceptions allow for the sharing of confidential information with specified entities provided that these parties treat the information as confidential, while others allow for the release of information without restrictions. In addition, the MSA authorizes the Secretary to disclose information that is subject to the Act's confidentiality requirements in “any aggregate or summary form which does not directly or indirectly disclose the identity or business of any person who submits such information.” Id. 1881a(b)(3).</P>

        <P>Section 402(b)(3) of the Act provides that the “Secretary shall, by regulation, prescribe such procedures as may be necessary to preserve the confidentiality of information submitted in compliance with any requirement or regulation under this Act * * *”. Id. 1881a(b)(3). Accordingly, NMFS has promulgated confidentiality regulations, which are set forth at 50 CFR part 600, subpart E. Certain terms used in these regulations are defined under 50 CFR part 600, subpart A. NMFS last revised the regulations under subpart E in February 1998 (63 FR 7075). The revisions were non-substantive.<PRTPAGE P="30487"/>
        </P>
        <P>NMFS now proposes substantive and non-substantive revisions to its regulations at 50 CFR part 600 subpart A, subpart B, and subpart E in order to implement confidentiality requirements amendments, which were included in the 1996 SFA and the 2006 MSRA. NMFS proposes additional revisions to address some significant issues that have arisen in the day-to-day application of the MSA confidentiality provisions to information requests. These proposed revisions seek to balance the mandate to protect confidential information with exceptions that authorize disclosure of information to advance fishery conservation and management, scientific research, enforcement, and transparency in fishery management actions.</P>
        <P>The proposed rule is informed by other statutes that NMFS administers, including the Marine Mammal Protection Act (MMPA), the Endangered Species Act (ESA), and the Freedom of Information Act (FOIA). Development of this proposed rule required NMFS to interpret several statutory provisions, including provisions for release of information in aggregate or summary form, a limited access program exception, and provisions regarding observer information. Accordingly, NMFS highlights these elements of the proposed rule in the discussion below and seeks public comment on options and alternatives for these and other aspects of the proposed rule.</P>
        <P>Below, NMFS provides information on three types of proposed changes. NMFS begins with proposed changes that concern the expanded scope of the confidentiality requirements. Next, NMFS presents changes that concern exceptions allowing for the disclosure of confidential information. Lastly, NMFS presents changes necessary to improve the clarity of the regulations.</P>
        <HD SOURCE="HD1">II. Proposed Changes Addressing the Expanded Scope of the MSA Confidentiality Requirements</HD>
        <P>Because statutory amendments have broadened the scope of the MSA's confidentiality requirements, NMFS proposes corresponding regulatory changes. At the MSA's enactment, its confidentiality requirements applied to “[a]ny statistics submitted to the Secretary” in compliance with an FMP. Public Law 94-265, Title III, 303(d) (1976). Congress broadened the confidentiality requirements through the 1996 SFA, Public Law 104-297 (1996), in two respects. First, the 1996 SFA substituted the word “information” for “statistics.” Id. 203. As a result, the statute's confidentiality requirements protected “any information submitted to the Secretary” in compliance with an FMP. The 1996 SFA also expanded the confidentiality requirements to apply not just to information submitted in compliance with an FMP, but to information submitted in compliance with “any requirement or regulation” under the Act. Id. Accordingly, NMFS' proposed rule would update the confidentiality regulations under 50 CFR part 600 to reflect the changes to the law made in 1996.</P>
        <P>In addition, this proposed rule would implement further broadening of the confidentiality requirements made by the 2006 MSRA, Public Law 109-479 (2007). Prior to the 2006 MSRA, the confidentiality requirements applied only to information submitted to the Secretary in compliance with any requirement or regulation under the Magnuson-Stevens Act. The 2006 MSRA amended the confidentiality requirements at section 402(b) of the Magnuson-Stevens Act, 16 U.S.C. 1881a(b), to include information submitted to a State fishery management agency or a Marine Fisheries Commission in compliance with a requirement or regulation under the Act. Public Law 109-479, Title II 203. The 2006 MSRA also amended the confidentiality requirements to apply to any observer information, which is now defined under section 3(32) of the Magnuson-Stevens Act. 16 U.S.C. 1802(3)(32).</P>
        <P>Specifically, NMFS proposes making the following changes to its regulations in order to implement these amendments to the scope of the MSA confidentiality requirement:</P>
        <P>1. Replacing the term “statistics” with “information” in 50 CFR 600.130 and in all regulations under 50 CFR subpart E;</P>
        <P>2. Outlining procedures to preserve the confidentiality of all information submitted to the Secretary, a State fishery management agency, or a Marine Fisheries Commission by any person in compliance with the requirements of the Magnuson-Stevens Act. (§ 600.410(b));</P>
        <P>3. Deleting the definition of “confidential statistics” and adding a definition for “confidential information” (§ 600.10); and</P>
        <P>4. Adding a definition for observer employer/observer provider (§ 600.10). Fisheries observer programs are predominantly contractors hired through private observer employer/observer provider companies. These companies provide qualified persons to perform observer duties on vessels engaged in fishing for species managed under the MSA. NMFS proposes the definition to ensure that observer employer/observer provider companies properly handle information that is required to be maintained as confidential under the MSA.</P>
        <HD SOURCE="HD1">III. Proposed Changes Concerning Exceptions to the Confidentiality Requirement</HD>
        <P>The MSA's confidentiality requirements are also subject to a number of exceptions that apply if certain conditions are satisfied. Some exceptions allow NMFS to share confidential information with other entities provided that the recipients will maintain it as confidential, while other exceptions allow for the disclosure of confidential information even if the confidentiality will not be maintained by the recipients. In addition, a provision of the MSA authorizes the Secretary to aggregate or summarize information that is subject to the Act's confidentiality requirements into a non-confidential form “which does not directly or indirectly disclose the identity or business of any person who submits such information.” 16 U.S.C. 1881a(b)(3). Non-confidential aggregate or summary form information may be released to the public.</P>
        <P>NMFS proposes regulatory changes to address significant issues that concern application of exceptions to the confidentiality requirements and the aggregation and summarization provision. NMFS presents these changes in the following order: First, substantive changes addressing disclosure of confidential information without requiring the recipient to keep it confidential; next, substantive changes addressing disclosure of aggregated or summarized confidential information; and finally, non-substantive changes regarding the sharing of confidential information with other entities provided that it remains confidential.</P>
        <HD SOURCE="HD2">A. Proposed Changes Concerning Exceptions to Confidentiality Requirements, Where Disclosed Information May Not Remain Confidential</HD>
        <P>The following changes would implement exceptions that authorize the disclosure of confidential information without further restrictions on its disclosure. Public comments on these provisions, numbered 1-4 below, are especially important, because they propose disclosures where NMFS does not require the recipients to maintain confidentiality.</P>

        <P>1. Exception for release of information required to be submitted for a determination under a limited access program: While MSA section 402(b) generally provides for confidentiality of information, section 402(b)(1)(G)<PRTPAGE P="30488"/>provides an exception for information that is “required to be submitted to the Secretary for any determination under a limited access program.” Id. 1881a(b)(1)(G). The scope of this exception depends on how the terms “limited access program” and “determination” are defined, and because the statute offers no definitions, NMFS now proposes definitions for these terms. NMFS' interpretation of this exception is important for fisheries managed under limited access programs, because disclosure of information could advance the transparency of the decision-making process and provide those seeking privileges, and privilege holders, with information that may be necessary for an appeal of a determination under a limited access program. However, because MSA section 402(b) generally requires confidentiality, NMFS must consider carefully the breadth of its interpretation of the exception under 402(b)(1)(G). NMFS seeks public comment on the below proposed approaches to “limited access program,” “determination,” and the information to be covered under the exception, and alternative approaches that NMFS might consider.</P>
        <HD SOURCE="HD3">Proposed Definition for “Limited Access Program”</HD>

        <P>As explained above, the MSA does not define “limited access program” as that term appears in section 402(b), and the interpretations of the term could range across a wide spectrum. At one end of the spectrum, NMFS could broadly interpret “limited access program” under section 402(b) as meaning “limited access system,” which is defined at MSA section 3(27). If NMFS takes this approach, the definition would allow very broad disclosure, applicable to any fishery in which participation is limited to “those satisfying certain eligibility criteria or requirements contained in a fishery management plan or associated regulation.”<E T="03">See</E>16 U.S.C. 1802(27) (defining limited access system);<E T="03">see also id.</E>1853(b)(6) (setting forth requirements for establishing limited access system). At the other end of the spectrum, NMFS could more narrowly interpret “limited access program” as only MSA section 303A limited access privilege programs (LAPPs). 16 U.S.C. 1853a.<E T="03">See also id.</E>1802(26) (defining “limited access privilege”).</P>
        <P>While NMFS encourages comments on the full range of interpretations available for the term, at this time NMFS does not propose to interpret “limited access program” as meaning either a “limited access system” or a “limited access privilege program.” Taking into account these terms, different potential interpretations of section 402(b)(1)(G), and prior and ongoing work in developing LAPP and LAPP-like programs, NMFS proposes a moderately broad interpretation, defining the term “limited access program” to mean a program that allocates privileges, such as a portion of the total allowable catch (TAC), an amount of fishing effort, or a specific fishing area to a person as defined by the MSA. Information required to be submitted for a determination for such programs could be disclosed.</P>
        <P>This interpretation of limited access program would include specific types of programs defined under the MSA, such as section 303A LAPPs and Individual Fishing Quotas (MSA 3(23)). It would also include other management programs not specifically mentioned in the Act, such as programs that allocate a TAC, or a portion of a TAC, to a sector or a cooperative, and programs that grant an exclusive privilege to fish in a geographically designated fishing ground. The Act does not preclude the development of other management programs that are similar to LAPPs but fall outside the section 303A requirements and provisions; the definition of “limited access program” could apply to them as well, allowing disclosure of information submitted for determinations under such programs.</P>
        <HD SOURCE="HD3">Proposed Definition for “Determination”</HD>
        <P>It is also possible to interpret “determination” under MSA 402(b)(1)(G) in many different ways. On the one hand, “determination” could mean any decision that NMFS makes for a fishery managed under a limited access program. Alternatively, it could mean those determinations that are more specific to limited access programs, like NMFS' allocation and monitoring of fishing privileges. Privileges allocated and monitored under limited access programs include limited access privileges, individual fishing quotas, a sector's annual catch entitlement, and other exclusive allocative measures such as a grant of an exclusive privilege to fish in a geographically designated fishing ground.</P>
        <P>NMFS proposes the latter approach: defining “determination” to mean a grant, denial, or revocation of privileges; approval or denial of a transfer of privileges; or other similar NMFS regulatory determination applicable to a person. “Person” is already defined under MSA section 3(36), and a determination that generally concerns a fishery, such as a stock assessment, would not be considered a “determination under a limited access program.” This approach seeks to enhance the transparency of NMFS' administration of limited access programs and enable parties to have information necessary for appealing determinations.</P>
        <P>It is important to note that the statutory exception in MSA 402(b)(1)(G) applies regardless of whether NMFS actually has made a determination. Therefore, NMFS' proposed rule would allow for release of information required to be submitted for a determination, even if NMFS has not made one. Information could be disclosed under the exception if there are sufficient facts suggesting that NMFS will use the information to make a determination, such as where participants in a limited access program submit information to NMFS for it to determine whether the participants have fished within their allocated privileges. The information would be immediately releasable even if NMFS has not made its determination.</P>

        <P>Similarly, prior landing information would be releasable if a Council had submitted an FMP or plan amendment for a limited access program for Secretarial approval and NMFS issued a notice in the<E T="04">Federal Register</E>stating that it will use prior landings data for initial allocation determinations under a proposed limited access program. However, the exception would not be applicable where a Council is merely considering developing a limited access program. In that case, there would be insufficient facts to support a conclusion that information was submitted to NMFS for it to make a determination under a limited access program.</P>
        <P>NMFS believes that the proposed rule approach will enhance accuracy in limited access program implementation. For example, by making catch histories available before making initial allocation determinations, fishermen can verify the accuracy of the information.</P>
        <HD SOURCE="HD3">Additional Issues Regarding the Scope of Information Releasable Under the Limited Access Program Exception to the Confidentiality Requirements</HD>

        <P>NMFS has considered several issues related to the scope of information to be covered under the limited access program exception to the confidentiality requirements. Specifically, NMFS has considered tailoring information releases to the relevant determination, maintaining medical and other information as confidential, releasing limited access program information<PRTPAGE P="30489"/>submitted prior to the MSRA, and releasing information that was initially submitted for non-limited access program reasons. NMFS solicits public comment on its proposed approaches to these four issues, as described below, and also on other potential approaches for addressing the scope of information to be covered under the exception.</P>
        <P>NMFS proposes that information releases be tailored for release at the level of the relevant limited access program determination. Thus, information submitted by a specific vessel for a determination about that vessel would be released at the vessel level. However, information submitted by a sector for a determination related to all vessels that operate in the respective sector would be released at the sector level. For example, the Georges Bank Cod Hook Sector is required to submit information on the vessel catch or effort history, and NMFS uses this information to determine whether the Sector is complying with its approved Sector Operations Plan. In this instance, information would be released at the sector level. There may, however, be instances where NMFS uses a sector's data to make determinations about each vessel within the sector. In such cases, information would be released at the vessel level.</P>
        <P>NMFS has considered that medical and other personal information may be used for certain determinations under limited access programs and therefore would be within the scope of the confidentiality exception contemplated by subparagraph 402(b)(1)(G). For example, shareholders under the North Pacific Sablefish and Halibut Individual Transferable Quota (ITQ) program must submit such information to support an application for a medical transfer under the regulations. In such cases, NMFS would consider whether Exemption Six of the Freedom of Information Act applies to the information. 5 U.S.C. 552(b)(6). Exemption Six authorizes the withholding of information about individuals in “personnel and medical files and similar files” when the disclosure of such information “would constitute a clearly unwarranted invasion of personal privacy.” Id. There may be other instances where NMFS applies applicable FOIA Exemptions to information that is otherwise releasable under subparagraph 402(b)(1)(G).</P>
        <P>NMFS is considering the treatment of information previously maintained as confidential. Prior to the enactment of the MSRA, a number of fisheries were managed under limited access programs. NMFS required information to be submitted for determinations under these programs. Accordingly, development of these confidentiality regulations requires consideration of whether the confidentiality exception in MSA section 402(b)(1)(G) applies to information submitted prior to the passage of the MSRA.</P>
        <P>Congress did not expressly say whether MSA 402(b)(1)(G) applies to information submitted prior to enactment of the 2006 MSRA. NMFS believes there are two approaches to this issue. NMFS could apply the exception to all limited access program information submitted to NMFS, regardless of when the information was submitted. Under this approach, NMFS could release information pursuant to this exception even if the information had been submitted prior to enactment of the MSRA. This approach reflects an application of current law, in that the limited access program exception would be applied to NMFS' post-MSRA handling of information. Alternatively, NMFS could apply the exception only to information which has been required to be submitted at a point after enactment of the MSRA. This approach recognizes that when people submitted information pre-MSRA, they may have had a different understanding of what information NMFS could release than that which the current law permits.</P>
        <P>NMFS is inclined to apply the exception for limited access program information without regard to when a person submitted information to the agency. Applying the current law in a manner favoring disclosure would enhance transparency as to the historical distribution of resources under limited access programs and allow prospective purchasers of fishing permits to have greater access to permit catch histories. Although NMFS is disinclined to adopt an approach that would apply the exception for limited access information based on the timing of the submission of the information, the agency is interested in public comment on this approach and other potential approaches. NMFS also specifically seeks comment on how the preferred approach or others would affect business or other interests, including comments on expectations of, or reliance on, confidentiality protections.</P>
        <P>In addition, NMFS notes that non-limited access program fisheries may, through appropriate Council or Secretarial action, transition to limited access programs. In these situations, information submitted under a non-limited access program fishery may later be relevant for determinations regarding privileges under a newly established limited access program. For the same reasons discussed above, and to promote efficiency and reduce reporting requirements on the regulated industry, NMFS proposes that information previously submitted under non-limited access program fisheries that it uses or intends to use for determinations under newly established limited access programs be treated as within the scope of the confidentiality exception under subparagraph 402(b)(1)(G). NMFS seeks public comment on this proposed approach and other approaches to this issue.</P>
        <P>2. Exception for release of information required under court order: Magnuson-Stevens Act section 402(b)(1)(D) provides an exception for the release of confidential information when required by court order. 16 U.S.C. 1881a(b)(1)(D). Information disclosed under this exception may become part of a public record. To clarify when this section applies, NMFS proposes definitions for “court” and “order” which make clear that the exception applies only to orders issued by a federal court (§ 600.425(d)). In developing these definitions, NMFS considered whether an order from a state court was within the scope of MSA section 402(b)(1)(D). Unless expressly waived by Congress, sovereign immunity precludes state court jurisdiction over a federal agency. In NMFS' view, Congress has not waived sovereign immunity through MSA section 402(b)(1)(D). Therefore, under this proposed rule, NMFS would not honor state court orders as a basis for disclosure of confidential information. State court orders would be handled under 15 CFR part 15, subpart A, which sets forth the policies and procedures of the Department of Commerce regarding the production or disclosure of information contained in Department of Commerce documents for use in legal proceedings pursuant to a request, order, or subpoena.</P>
        <P>3. Exception for release of information to aid law enforcement activity: This proposed rule would add text to address sections 402(b)(1)(A) and (C) of the Magnuson-Stevens Act, which provide that confidential information may be released to federal and state enforcement personnel responsible for fishery management plan enforcement. (§ 600.425(e)). The proposed rule would allow enforcement personnel to release confidential information during the enforcement of marine natural resources laws. In such cases, previously confidential information may become part of a public record.</P>

        <P>4. Exception for release of information pursuant to written authorization: Section 402(b)(1)(F) of the Magnuson-Stevens Act allows for the release of confidential information “when the<PRTPAGE P="30490"/>Secretary has obtained written authorization from the person submitting such information to release such information to persons for reasons not otherwise provided for in this subsection, and such release does not violate other requirements of this Act.” 16 U.S.C. 1881a(b)(1)(F). Through this rulemaking, NMFS proposes procedures to ensure that the written authorization exception is utilized only by the person who submitted the information. To that end, NMFS proposes that a person who requests disclosure of information under this exception prove their identity by a statement consistent with 28 U.S.C. 1746, which permits statements to be made under the penalty of perjury as a substitute for notarization.</P>
        <P>Generally, the holder of the permit for a vessel, or the permit holder's designee, will be considered the person who submitted information in compliance with the requirements of the MSA. In cases where requirements to provide information are not tied to a permit, the person who is required to submit the information and is identified in the information as the submitter may execute the written authorization for that information. In most cases, the identity of the submitter of information will be the person who signed the document provided to NMFS. For example, the regulation that implements the MSA financial interest disclosure provision requires that persons nominated for appointment to a regional fishery management council file a signed financial interest form. 16 U.S.C. 1852(j). As the person who is required to submit and sign the financial interest form, a Secretarial nominee would be considered the submitter of the form and, as such, would be able to authorize its disclosure. NMFS intends to develop and make available a model “authorization to release confidential information” form.</P>
        <P>In the context of the observer information provisions of MSA section 402(b), the written authorization exception is subject to different interpretations. The exception applies when the “person submitting” information requests release of such information. MSA section 402(b)(2) provides for disclosure of observer information under the written authorization exception but does not identify who the “person submitting” that information is. Accordingly, to apply the written authorization exception to observer information, the submitter of observer information must be identified.</P>
        <P>A further complication is that observer programs collect and create different types of observer information for fishery conservation and management. The primary category of observer information is information that is used for scientific and management purposes. Among other things, the Magnuson-Stevens Act requires that fishery management plans specify pertinent data on fishing and fish processing to be submitted to the Secretary, including but not limited to the type and quantity of fishing gear used, catch in numbers of fish or weight thereof, areas in which fishing was engaged in, and economic information. 16 U.S.C. 1853(a)(5). The Act also requires establishment of standardized bycatch reporting methodology. Id. 1853(a)(11). To obtain this and other information, FMPs may require that vessels subject to the plan carry one or more observers. Id. 1853(b)(8).</P>
        <P>In addition, NMFS' regional observer programs have established administrative procedures through which observers create information for program operation and management. Information created through these administrative procedures is used to review observer performance, evaluate the observer's data and collection methodology, and to assess any reports of non-compliance with fishery regulations. More generally, observer programs use this information to evaluate the overall effectiveness of the observer program. Program administrative procedures generally require observers to maintain an official logbook (also referred to as field notes, a journal or diary) that includes technical information related to collection and sampling methodologies and notes that concern their work while deployed on a vessel. Following completion of a fishing trip, observers use their logbooks and their general recollection of the fishing trip to answer post-trip debriefing questions during a debriefing process. Debriefings are generally conducted by NMFS personnel at NMFS facilities, although some observer programs may have debriefings conducted at observer provider offices by observer provider supervisory personnel. NMFS, or the observer provider as appropriate, compiles the observer's responses into a post-trip debriefing report. Observer providers that are tasked with administration of observer debriefings are required to provide debriefing reports to NMFS.</P>
        <P>NMFS is interested in public comment on different options for applying the written authorization exception to observer information. As discussed above, it is unclear what observer information is submitted and who acts as the “person submitting” observer information. One approach would be to treat the permit holder as the person who submits both types of observer information. That is, the permit holder would be the person who submits observer information collected for scientific and management purposes and observer information created for administration of the observer program. A second option would be to treat the observer, or the observer's employer, as the person who submits both types of observer information. A third option would be to treat the permit holder as the submitter of observer information collected for scientific and management purposes but not as the submitter of observer information that is created for program administration (e.g, field notes, journals, or diaries). Under this option, there would be no submitter of observer information that is created for program administration. Rather, this information would be treated as internal program information and not subject to the written authorization exception.</P>
        <P>In light of the ambiguity in the statute, and recognizing the different purposes for the two types of observer information, NMFS is proposing to apply the third approach and is disinclined to adopt the other two options. However, NMFS will consider the other two options following public comment.</P>
        <P>Under NMFS' proposed approach, permit holders would be considered the submitters of information collected for scientific and management purposes and would therefore be allowed to authorize release of that information. On the other hand, there would be no “submitter” of observer information created for administration of the observer program and it would be treated as internal program information. As such, this information would not be subject to disclosure to the permit holder under the written authorization exception or under FOIA. In withholding debriefing reports, NMFS would apply FOIA Exemption Three, which, as explained above, authorizes the withholding of information that is prohibited from disclosure under another Federal statute. Here, MSA section 402(b)(2) requires the withholding of observer information.</P>

        <P>NMFS believes that this approach is consistent with the definition of “submit.” Observers submit information collected for scientific and management purposes to the respective observer programs but do so on behalf of the permit holder that is required to carry an observer. Observer information compiled for administration of the observer program, including information set forth in observer<PRTPAGE P="30491"/>logbooks, journals, or diaries and the information in observer debriefing reports, is not “submitted” information. Rather, this information is created through program administrative procedures and should be treated as internal program information.</P>
        <P>In addition, NMFS believes that the third approach is consistent with the purpose of the written authorization exception, which is to provide permit holders and other submitters of information with access to information that concerns their business and that was obtained by NMFS through a person's compliance with a requirement or regulation under the Magnuson-Stevens Act.</P>
        <HD SOURCE="HD2">B. Proposed Changes Requiring the Protection of Business Information in Releases Allowed by Aggregation and Summarization Exception</HD>
        <P>NMFS proposes regulatory definitions to ensure protection for business information. The MSA at section 402(b)(3) provides that “the Secretary may release or make public any information submitted in compliance with any requirement or regulation under the Magnuson-Stevens Act in any aggregate or summary form which does not directly or indirectly disclose the identity or business of any person who submits such information.” 16 U.S.C. 1881a(b)(3). Under this provision, the Secretary, acting through NMFS, may aggregate and summarize information that is subject to the Act's confidentiality requirements into a non-confidential form. The application of the provision's language directly corresponds to the level of protection afforded to information that is subject to the MSA confidentiality requirements. Current agency regulations include a definition of “aggregate or summary form” that allows for the public release of information subject to the confidentiality requirements if the information is “structured in such a way that the identity of the submitter cannot be determined either from the present release of the data or in combination with other releases.” § 600.10. The regulations also state that the Assistant Administrator for Fisheries will not release information “that would identify the submitter, except as required by law.” Id. § 600.425(a). As a result, information may be disclosed in any aggregate or summary form that does not disclose the identity of a submitter. These regulations focus on protection of submitters' identity, but this approach does not provide any specific protection for submitters' “business” information.</P>
        <HD SOURCE="HD3">Application of Protection Beyond Identity to Financial and Operational Information</HD>
        <P>NMFS reviewed the legal and policy basis for this approach as part of its development of revised regulations for implementation of the 2006 MSRA and the 1996 SFA. It appears that NMFS has historically interpreted the two different elements of MSA 402(b)(3)—“identity of any person” and “business of any person”—to mean submitters' identifying information, including that which would identify them personally and that which would identify their businesses. NMFS has reassessed the application of MSA section 402(b)(3) and, based on this reassessment, believes that Congress intended the MSA confidentiality provision to protect a broader scope of information than that which would identify submitters. Therefore, NMFS proposes to revise the regulatory definition of “aggregate or summary form” to protect against the disclosure of the “business of any person” and proposes to add a specific definition for “business of any person” that would provide broader protection for information submitted in compliance with the MSA and any observer information.</P>
        <P>The statutory language “business of any person” is ambiguous, and NMFS acknowledges that it could be subject to different interpretations. As explained above, NMFS has historically interpreted this language to mean only the identity or name of a person's business such as “ABC Fishing Company.” NMFS believes that a broader interpretation is more consistent with congressional intent and legal rules for interpretation of statutes. Therefore, NMFS proposes to clarify “business of any person” by defining it at § 600.10 as meaning financial and operational information. Financial information would include information in cash flow documents and income statements, and information that contributes to the preparation of balance sheets. Operational information would include fishing locations, time of fishing, type and quantity of gear used, catch by species in numbers or weight thereof, number of hauls, number of employees, estimated processing capacity of, and the actual processing capacity utilized, by U.S. fish processors. By providing these definitions, NMFS limits releases to an aggregate or summary form which does not disclose the specified financial and operational information of a person.</P>
        <P>When responding to FOIA requests for MSA confidential information, NMFS takes into consideration FOIA Exemption Three, 5 U.S.C. 552(b)(3), and other relevant FOIA exemptions. FOIA Exemption Three applies to information that is exempted from disclosure by another statute. NMFS interprets MSA section 402(b) to exempt from disclosure information that would directly or indirectly disclose the identity or business of any person. As explained above, this proposed rule would require NMFS to consider both factors—not just identity—when applying the aggregate or summary form provisions of the regulations. While this could result in more information being withheld, NMFS believes that detailed and useful information will continue to be disclosed under the aggregate or summary form provisions. NMFS intends to develop, and make available for public comment, aggregation guidelines based on the definition for aggregate or summary form and other elements of the final MSA confidentiality rule. NMFS' preferred option is to adopt an approach that requires protection of submitters' business information. Accordingly, the agency is disinclined to continue to allow for the disclosure of aggregated or summarized information that protects only submitters' identifying information. However, NMFS seeks specific public comment on the proposed definitional changes and other potential options to aggregation and summarization of information subject to the confidentiality requirements.</P>
        <HD SOURCE="HD3">Exclusion of Observer Information From Definition of Protected Business Information</HD>
        <P>In developing this proposed rule, NMFS considered whether its definition for “business of any person” should include observer information that concerns interactions with protected species. As discussed above, NMFS may release MSA confidential information in “aggregate or summary form,” which would “not directly or indirectly disclose the identity or business of any person.” By excluding observer information that concerns interactions with protected species from the definition of “business of any person,” observer information could be released publicly in aggregate or summary form as long as it would not directly or indirectly result in disclosure of the identity of the vessel involved in the interaction. Thus, in most cases, NMFS would be able to disclose specific details of interactions with protected species.</P>

        <P>Release of observer information that concerns interactions with protected species would advance implementation of statutory mandates under the MMPA<PRTPAGE P="30492"/>and the ESA. For example, this information is critical for deliberations by Take Reduction Teams (TRT) that are convened under section 118(f)(6)(A) of the MMPA. 16 U.S.C. 1387(f)(6)(A)(i). TRTs established under the MMPA must meet in public and develop plans to reduce incidental mortality and serious injury of marine mammals in the course of commercial fishing operations. See Id. at 1387(f)(6)(D) (public meetings) and 1387(f) (development of take reduction plans). Specific details about interactions with marine mammals that occurred during commercial fishing operations are critical to developing a plan. Id. 1387(f). This information is often available only through observer records. Without detailed observer information on interactions with protected species, TRTs may be unable to develop targeted plans to reduce bycatch of protected species.</P>
        <P>Detailed information on interactions with protected species may also facilitate implementation of the ESA. NMFS may need to present detailed information about commercial fisheries interactions with species listed under the ESA in a biological opinion. See§ 402.14(g)(8) (requirements for biological opinions). Furthermore, both the MMPA and the ESA require that NMFS use the best available scientific information when making determinations. 16 U.S.C. 1386(a) (MMPA stock assessments) and 16 U.S.C. 1536(c)(1) (ESA biological assessments).</P>
        <P>For these reasons, NMFS proposes that the definition of “business of any person” exclude the following observer information on protected species interactions: species of each marine mammal or ESA-listed species incidentally killed or injured; the date, time, and geographic location of the take; and information regarding gear used in the take that would not constitute a trade secret under FOIA, 5 U.S.C. 552(b)(4). While excluding observer information that concerns interactions with protected species from the definition of “business of any person” would advance MSA, ESA, and MMPA mandates, NMFS recognizes that it would also result in the public disclosure of specific information collected by observers during fishing operations. For example, the location of an interaction with a protected species would, in some cases, identify where a vessel fished.</P>
        <P>Because observer information that concerns interactions with protected species could also be viewed as a vessel's operational information, NMFS seeks public comments on this proposed approach and other potential approaches to this issue. Although NMFS is disinclined to define “business of any person” to include observer information that concerns interactions with protected species, the agency will consider viable approaches other than its proposed interpretation.</P>
        <HD SOURCE="HD2">C. Proposed Changes Allowing Disclosure of Confidential Information Where Limitations Apply To Further Disclosure</HD>
        <P>NMFS proposes the following changes concerning confidentiality requirement exceptions that allow for information to be shared with other entities, provided that specified precautions protect the information.</P>
        <P>1. Adding procedures that authorize the sharing of observer information between observer employer/observer providers for observer training or to validate the accuracy of the observer information collected. (§ 600.410(c)(4)).</P>
        <P>2. Adding procedures that authorize the disclosure of confidential information in support of homeland and national security activities. (§ 600.415(c)(3)).</P>
        <P>3. Adding procedures that authorize the disclosure of confidential information to State employees responsible for fisheries management. (§ 600.415(d)).</P>
        <P>4. Adding procedures that authorize the disclosure of confidential information to State employees responsible for FMP enforcement pursuant to a Joint Enforcement Agreement with the Secretary. (§ 600.415(e)).</P>
        <P>5. Adding procedures that authorize the disclosure of confidential information to Marine Fisheries Commission employees. (§ 600.415(f)).</P>
        <P>6. Revising procedures under which confidential information can be disclosed to Council members for use by the Council for conservation and management purposes. (§ 600.415(g)(2)). Under MSA section 402(b)(3), the Secretary may approve a Council's use of confidential information for conservation and management purposes. 16 U.S.C. 1881a(b)(3). NMFS' current confidentiality regulations implement this authority under § 600.415(d)(2). That regulation authorizes the Assistant Administrator, NOAA Fisheries (AA), to grant a Council access to confidential information upon written request by the Council Executive Director. In determining whether to grant access, the AA must consider, among other things, the “possibility that the suppliers of the data would be placed at a competitive disadvantage by public disclosure of the data at Council meetings or hearings.” Id. During development of this proposed action, a question was raised regarding whether this text allows public disclosure of information that was released to a Council under this procedure. As MSA section 402(b)(3) provides for disclosure of information for use by a Council, NMFS proposes to clarify and revise § 600.415(d)(2)(ii) by removing the “public disclosure” text.</P>
        <P>7. Adding procedures to authorize release of confidential information to a Council's scientific and statistical committee (SSC). (§ 600.415(g)(3)). Under the Magnuson-Stevens Act as amended by the 2006 MSRA, Councils must establish, maintain, and appoint the members of an SSC. 16 U.S.C. 1852(g)(1)(A). Members appointed by Councils to SSCs shall be Federal or State employees, academicians, or independent experts. Id. 1852(g)(1)(C). The role of the SSC is, among other things, to assist the Council in the development, collection, evaluation and peer review of statistical, biological, economic, social, and other scientific information as is relevant to the Council's development and amendment of any FMP. Id. 1852(g)(1)(A). Furthermore, the SSC is required to provide its Council ongoing scientific advice for fishery management decisions, including, among other things, recommendations for acceptable biological catch and preventing overfishing and reports on stock status and health, bycatch, and social and economic impacts of management measures. Id. 1852(g)(1)(B). To carry out these responsibilities, SSC members may need to evaluate confidential information. NMFS may release confidential information to Federal and State employees appointed to a Council's SSC as provided under Magnuson-Stevens Act section 402(b)(1)(A) and (B). However, the existing confidentiality regulations do not address release of confidential information to academicians or independent experts appointed to an SSC. Because all members of a Council's SSC may need to evaluate confidential information, NMFS proposes to add procedures through which a Council can request, through its Executive Director, that members of the Council's SSC that are not Federal or State employees be granted access to confidential information.</P>

        <P>NMFS proposes to add this procedure pursuant to Magnuson-Stevens Act section 402(b)(3), which authorizes the Secretary to approve the release and use of confidential information by a Council for fishery conservation and management. Given the statutory role that a Council's SSC has in development<PRTPAGE P="30493"/>and amendment of any FMP, NMFS believes that establishing a process for releasing confidential information to an SSC is consistent with the statutory authorization that allows a Council to use confidential information for fishery conservation and management. NMFS recognizes the concern that members of a SSC, who are not Federal or State employees, may gain personal or competitive advantage through access to confidential information. To address this concern, the proposed procedures would require the AA to approve any request from a Council Executive Director that confidential information be released to the Council for use by SSC members who are not Federal or State employees. In making a decision regarding such a request, the AA must consider whether those SSC members might gain personal or competitive advantage from access to the information.</P>
        <P>8. Adding procedures that authorize the release of observer information when the information is necessary for proceedings to adjudicate observer certifications. (§ 600.425(b)).</P>
        <HD SOURCE="HD1">IV. Proposed Changes Clarifying NMFS' Confidentiality Regulations</HD>
        <P>NMFS proposes the following non-substantive changes intended to improve the clarity and accuracy of the regulations.</P>
        <P>1. Removing the existing language at § 600.410(a)(2) that states “After receipt, the Assistant Administrator will remove all identifying particulars from the statistics if doing so is consistent with the needs of NMFS and good scientific practice.”</P>
        <P>Through experience, NMFS has found that maintaining identifying information is necessary for programmatic needs, including FMP monitoring, quota share allocations, capacity modeling, and limited access program development. Accordingly, NMFS would no longer require the removal of identifiers from confidential information when NMFS uses the information to complete programmatic actions. However, NMFS would preserve the confidentiality of identifying information unless an exception allows for release.</P>
        <P>2. The authorization to disclose information under section 402(b)(1)(B), as amended by the MSRA and codified in the United States Code, appears to have a typographical error. Prior to the MSRA, section 402(b)(1)(B) authorized the release of confidential information to “State or Marine Fisheries Commission employees pursuant to an agreement with the Secretary that prevents the public disclosure of the identity or business of any person.” Section 402(b)(1)(B) as amended by the MSRA provides that confidential information may be disclosed “to State or Marine Fisheries Commission employees as necessary to further the Department's mission, subject to a confidentiality agreement that prohibits public disclosure of the identity of business of any person.” NMFS believes that this was a typographical error, and that Congress intended the text to say “identity or business,” consistent with how that phrase appears in section 402(b)(3). As such, this proposed rule uses the phrase “identity or business” with regard to the section 402(b)(1)(B) text.</P>
        <HD SOURCE="HD1">V. Classification</HD>
        <P>The NOAA Fisheries Assistant Administrator has determined that this proposed rule is consistent with the Magnuson-Stevens Act and other applicable law, subject to further consideration after public comment.</P>
        <P>This proposed rule has been determined to be not significant for purposes of Executive Order 12866.</P>
        <P>This action does not contain a collection-of-information requirement for purposes of the Paperwork Reduction Act.</P>
        <P>The Chief Counsel for Regulation of the Department of Commerce certified to the Chief Counsel for Advocacy of the Small Business Administration that this proposed rule, if adopted, would not have a significant economic impact on a substantial number of small entities, as follows:</P>
        <P>Under section 402(b)(3) of the MSA, the Secretary of Commerce is required to prescribe by regulation procedures necessary to maintain the confidentiality of information submitted in compliance with the Act. These regulations are set forth at 50 CFR part 600, subparts B and E. Certain terms used in these regulations are defined under 50 CFR part 600, subpart A. This proposed action would revise 50 CFR part 600, subparts, A, B and E to conform with requirements of the Magnuson-Stevens Act as amended by the 2006 Magnuson-Stevens Fishery Conservation and Management Reauthorization Act and the 1996 Sustainable Fisheries Act. Specifically, this proposed action requires the confidentiality of information collected by NMFS observers, revises exceptions that authorize the disclosure of confidential information, and adds three new disclosure exceptions. In addition, this action includes proposed revisions to implement the 1996 Sustainable Fisheries Act and to update the regulations to reflect NMFS' policy on the release of MSA confidential information in an aggregate or summary form.</P>
        <P>This proposed action applies only to agency policies and procedures for the handling of information required to be maintained as confidential under MSA section 402(b). Adoption of the proposed revisions would not have a significant economic impact on a substantial number of small entities. The proposed revisions would apply to private companies that provide observer staffing support to NMFS and to industry sponsored observer programs. Nine private companies currently provide observers on a seasonal or ongoing basis to support the collection of information in 42 fisheries. The proposed regulations require observer providers to take steps to maintain the confidentiality of information. To satisfy this requirement, observer providers must have a secure area for the storage of confidential information. Compliance costs would include purchase of a lockable filing cabinet and enhanced managerial supervision. These costs would be minimal and all observer providers that currently contract with NMFS already have appropriate measures in place. Accordingly, no initial regulatory flexibility analysis is required and none has been prepared.</P>
        <LSTSUB>
          <HD SOURCE="HED">Lists of Subjects in 50 CFR Part 600</HD>
          <P>Confidential business information, Fisheries, Information.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: May 17, 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 600 is proposed to be amended as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 600—[AMENDED]</HD>
          <P>1. The authority citation for part 600 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 561 and 16 U.S.C. 1801<E T="03">et seq.</E>
            </P>
          </AUTH>
          
          <P>2. In § 600.10,</P>
          <P>a. Remove definitions of “Confidential statistics” and “Data, statistics, and information”;</P>
          <P>b. Revise the definition of “Aggregate or summary form” and;</P>
          <P>c. Add new definitions for “Business of any person”, “Confidential information”, and “Observer employer/observer provider” in alphabetical order, to read as follows:</P>
          <SECTION>
            <SECTNO>§ 600.10</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <STARS/>
            <P>
              <E T="03">Aggregate or summary form</E>means information structured in such a way<PRTPAGE P="30494"/>that the identity or business of any person that submitted the information cannot be directly or indirectly determined either from the present release of the information or in combination with other releases.</P>
            <STARS/>
            <P>
              <E T="03">Business of any person</E>means:</P>
            <P>(1) Financial information such as cash flow documents, income statements, or information that contributes to the preparation of balance sheets; or</P>
            <P>(2) Operational information such as fishing locations, time of fishing, type and quantity of gear used, catch by species in numbers or weight thereof, number of hauls, number of employees, estimated processing capacity of, and the actual processing capacity utilized, by U.S. fish processors.</P>
            <P>(3) Business of any person does not include the following observer  information related to interactions with species protected under the  Marine Mammal Protection Act and the Endangered Species Act: the date,  time, and location of interactions, the type of species, and the gear involved provided that information regarding gear would not constitute a trade secret under the Freedom of Information Act, 5 U.S.C. 552(b)(4).</P>
            <STARS/>
            <P>
              <E T="03">Confidential information</E>includes any observer information as defined under 16 U.S.C. 1802(32) or any information submitted to the Secretary, a State fishery management agency, or a Marine Fisheries Commission by any person in compliance with any requirement or regulation under the Magnuson-Stevens Act.</P>
            <STARS/>
            <P>
              <E T="03">Observer employer/observer provider</E>means any person that provides observers to fishing vessels, shoreside processors, or stationary floating processors under a requirement of the Magnuson-Stevens Act.</P>
            <STARS/>
          </SECTION>
          <SECTION>
            <SECTNO>§ 600.130</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>3. In § 600.130 the word “statistics” is removed and the word “information” is added in place, wherever it occurs.</P>
            <P>4. Subpart E to part 600 is revised to read as follows:</P>
            <CONTENTS>
              <SUBPART>
                <HD SOURCE="HED">Subpart E—Confidentiality of Information</HD>
                <SECHD>Sec.</SECHD>
                <SECTNO>600.405</SECTNO>
                <SUBJECT>Types of information covered.</SUBJECT>
                <SECTNO>600.410</SECTNO>
                <SUBJECT>Collection and maintenance of information.</SUBJECT>
                <SECTNO>600.415</SECTNO>
                <SUBJECT>Access to information.</SUBJECT>
                <SECTNO>600.420</SECTNO>
                <SUBJECT>Control system.</SUBJECT>
                <SECTNO>600.425</SECTNO>
                <SUBJECT>Release of confidential information.</SUBJECT>
                <SECTNO>600.430</SECTNO>
                <SUBJECT>Release of information in aggregate or summary form.</SUBJECT>
              </SUBPART>
            </CONTENTS>
          </SECTION>
          <SUBPART>
            <HD SOURCE="HED">Subpart E—Confidentiality of Information</HD>
            <SECTION>
              <SECTNO>§ 600.405</SECTNO>
              <SUBJECT>Types of information covered.</SUBJECT>
              <P>NOAA is authorized under the Magnuson-Stevens Act and other statutes to collect and maintain information. This part applies to confidential information as defined at § 600.10.</P>
            </SECTION>
            <SECTION>
              <SECTNO>§ 600.410</SECTNO>
              <SUBJECT>Collection and maintenance of information.</SUBJECT>
              <P>(a)<E T="03">General.</E>(1) Any information required to be submitted to the Secretary, a State fishery management agency, or a Marine Fisheries Commission in compliance with any requirement or regulation under the Magnuson-Stevens Act shall be provided to the Assistant Administrator.</P>
              <P>(2) Appropriate safeguards set forth in NOAA Administrative Order 216-100 and other NOAA/NMFS internal procedures apply to the collection, maintenance, and disclosure of any confidential information.</P>
              <P>(b)<E T="03">Collection agreements with States or Marine Fisheries Commissions.</E>(1) The Assistant Administrator may enter into an agreement with a State or a Marine Fisheries Commission authorizing the State or a Marine Fisheries Commission to collect confidential information on behalf of the