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  <VOL>77</VOL>
  <NO>164</NO>
  <DATE>Thursday, August 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>Animal and Plant Health Inspection Service</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Food and Nutrition Service</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Forest Service</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Requests for Nominations:</SJ>
        <SJDENT>
          <SJDOC>Northwest Forest Plan Provincial Advisory Committees,</SJDOC>
          <PGS>50979-50980</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20702</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Animal</EAR>
      <HD>Animal and Plant Health Inspection Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Tuberculosis,</SJDOC>
          <PGS>50980-50981</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20737</FRDOCBP>
        </SJDENT>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals; Request for Extension:</SJ>
        <SJDENT>
          <SJDOC>Foreign Quarantine Notices,</SJDOC>
          <PGS>50982-50983</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20738</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Importation of Swine Hides, Bird Trophies, and Deer Hides,</SJDOC>
          <PGS>50981-50982</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20739</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Antitrust Division</EAR>
      <HD>Antitrust Division</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Proposed Final Judgements and Competitive Impact Statements:</SJ>
        <SJDENT>
          <SJDOC>United States et al. v. Verizon Communications Inc. et al.,</SJDOC>
          <PGS>51048-51064</PGS>
          <FRDOCBP D="16" T="23AUN1.sgm">2012-20740</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR/>
      <HD>Antitrust</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Antitrust Division</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Consumer Financial Protection</EAR>
      <HD>Bureau of Consumer Financial Protection</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z),</DOC>
          <PGS>51116-51457</PGS>
          <FRDOCBP D="341" T="23AUP2.sgm">2012-17663</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51020-51021</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20700</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Children</EAR>
      <HD>Children and Families Administration</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Refugee Resettlement Office</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Coast Guard</EAR>
      <HD>Coast Guard</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Anchorages:</SJ>
        <SJDENT>
          <SJDOC>Cottonwood Island Anchorage, Columbia River, OR and WA,</SJDOC>
          <PGS>50914-50916</PGS>
          <FRDOCBP D="2" T="23AUR1.sgm">2012-20345</FRDOCBP>
        </SJDENT>
        <SJ>Safety Zones:</SJ>
        <SJDENT>
          <SJDOC>Bay Bridge Load Transfer Safety Zone, San Francisco Bay, San Francisco, CA,</SJDOC>
          <PGS>50921-50923</PGS>
          <FRDOCBP D="2" T="23AUR1.sgm">2012-20337</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Boston Harbor's Rock Removal Project, Boston Inner Harbor, Boston, MA,</SJDOC>
          <PGS>50916-50919</PGS>
          <FRDOCBP D="3" T="23AUR1.sgm">2012-20828</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Jet Express Triathlon, Sandusky Bay, Lake Erie, Lakeside, OH,</SJDOC>
          <PGS>50923-50926</PGS>
          <FRDOCBP D="3" T="23AUR1.sgm">2012-20190</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Wedding Reception Fireworks at Pier 24, San Francisco, CA,</SJDOC>
          <PGS>50919-50921</PGS>
          <FRDOCBP D="2" T="23AUR1.sgm">2012-20338</FRDOCBP>
        </SJDENT>
        <SJ>Security Zones:</SJ>
        <SJDENT>
          <SJDOC>2012 RNC Bridge Security Zones, Captain of the Port St. Petersburg Zone, Tampa, FL,</SJDOC>
          <PGS>50929-50932</PGS>
          <FRDOCBP D="3" T="23AUR1.sgm">2012-20699</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Certain Dangerous Cargo Vessels, Tampa, FL,</SJDOC>
          <PGS>50926-50929</PGS>
          <FRDOCBP D="3" T="23AUR1.sgm">2012-20706</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Merchant Mariner Medical Advisory Committee,</SJDOC>
          <PGS>51039-51040</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20705</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Commerce</EAR>
      <HD>Commerce Department</HD>
      <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>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>50986-50987</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20715</FRDOCBP>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20716</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Commodity Futures</EAR>
      <HD>Commodity Futures Trading Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Proposal to Exempt Certain Transactions Involving Not-for-Profit Electric Utilities,</DOC>
          <PGS>50998-51020</PGS>
          <FRDOCBP D="22" T="23AUN1.sgm">2012-20589</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Copyright Office</EAR>
      <HD>Copyright Office, Library of Congress</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Remedies for Small Copyright Claims:  Additional Comments,</DOC>
          <PGS>51068-51071</PGS>
          <FRDOCBP D="3" T="23AUN1.sgm">2012-20802</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Defense Department</EAR>
      <HD>Defense Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Federal Acquisition Regulations; Government Property,</SJDOC>
          <PGS>51026-51027</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20741</FRDOCBP>
        </SJDENT>
      </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>Federal Student Aid; Student Assistance General Provisions, Student Right to Know,</SJDOC>
          <PGS>51021</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20775</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Employment and Training</EAR>
      <HD>Employment and Training Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Affirmative Determinations Regarding Applications for Reconsideration:</SJ>
        <SJDENT>
          <SJDOC>Dana Holding Corp., Power Technologies Group Division, et al., Milwaukee, WI,</SJDOC>
          <PGS>51064</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20767</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Huntington Foam LLC, Fort Smith, AR,</SJDOC>
          <PGS>51064</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20766</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Determinations Regarding Eligibility to Apply for Worker Adjustment Assistance,</DOC>
          <PGS>51064-51067</PGS>
          <FRDOCBP D="3" T="23AUN1.sgm">2012-20764</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Investigations Regarding Eligibility to Apply for Worker Adjustment Assistance,</DOC>
          <PGS>51067-51068</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20765</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Energy Department</EAR>
      <HD>Energy Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Energy Regulatory Commission</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Research and Development Program 2012 Annual Plan:</SJ>
        <SJDENT>
          <SJDOC>Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources,</SJDOC>
          <PGS>51021-51022</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20788</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Environmental Protection</EAR>
      <HD>Environmental Protection Agency</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Approvals and Promulgations of Air Quality Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>Nevada; Regional Haze State and Federal Implementation Plans; BART Determination for Reid Gardner Generating Station,</SJDOC>
          <PGS>50936-50952</PGS>
          <FRDOCBP D="16" T="23AUR1.sgm">2012-20503</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <PRTPAGE P="iv"/>
        <HD>PROPOSED RULES</HD>
        <SJ>Approval and Promulgation of Air Quality Implementation Plans:</SJ>
        <SJDENT>
          <SJDOC>District of Columbia; The 2002 Base Year Inventory,</SJDOC>
          <PGS>50964-50965</PGS>
          <FRDOCBP D="1" T="23AUP1.sgm">2012-20779</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Maryland; Attainment Demonstration for 1997 8-Hour Ozone National Ambient Air Quality Standard,</SJDOC>
          <PGS>50966-50969</PGS>
          <FRDOCBP D="3" T="23AUP1.sgm">2012-20780</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Maryland; Low Emission Vehicle Program,</SJDOC>
          <PGS>50969-50973</PGS>
          <FRDOCBP D="4" T="23AUP1.sgm">2012-20787</FRDOCBP>
        </SJDENT>
        <SJ>Revision to the South Coast Portion of the California State Implementation Plan:</SJ>
        <SJDENT>
          <SJDOC>CPV Sentinel Energy Project AB 1318 Tracking System,</SJDOC>
          <PGS>50973-50978</PGS>
          <FRDOCBP D="5" T="23AUP1.sgm">2012-20777</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Export Import</EAR>
      <HD>Export-Import Bank</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Application for Final Commitment for a Long-term Loan or Financial Guarantee in Excess of $100 Million,</DOC>
          <PGS>51023-51024</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20728</FRDOCBP>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20731</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Aviation</EAR>
      <HD>Federal Aviation Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Airspace Designations:</SJ>
        <SJDENT>
          <SJDOC>Incorporation By Reference,</SJDOC>
          <PGS>50907-50909</PGS>
          <FRDOCBP D="2" T="23AUR1.sgm">2012-20660</FRDOCBP>
        </SJDENT>
        <SJ>IFR Altitudes:</SJ>
        <SJDENT>
          <SJDOC>Miscellaneous Amendments,</SJDOC>
          <PGS>50909-50914</PGS>
          <FRDOCBP D="5" T="23AUR1.sgm">2012-20812</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <SJ>Airworthiness Directives:</SJ>
        <SJDENT>
          <SJDOC>Cessna Aircraft Co.,</SJDOC>
          <PGS>50954-50956</PGS>
          <FRDOCBP D="2" T="23AUP1.sgm">2012-20734</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Exclusion of Tethered Launches From Licensing Requirements,</DOC>
          <PGS>50956-50963</PGS>
          <FRDOCBP D="7" T="23AUP1.sgm">2012-20686</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Communications</EAR>
      <HD>Federal Communications Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51024-51025</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20710</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Deposit</EAR>
      <HD>Federal Deposit Insurance Corporation</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51025</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20778</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Energy</EAR>
      <HD>Federal Energy Regulatory Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Applications:</SJ>
        <SJDENT>
          <SJDOC>Clark Canyon Hydro, LLC,</SJDOC>
          <PGS>51022-51023</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20744</FRDOCBP>
        </SJDENT>
        <SJ>Complaints:</SJ>
        <SJDENT>
          <SJDOC>R. Gordon Gooch v. Colonial Pipeline Co.,</SJDOC>
          <PGS>51023</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20745</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Highway</EAR>
      <HD>Federal Highway Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51103-51104</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20679</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Motor</EAR>
      <HD>Federal Motor Carrier Safety Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Applications for Exemptions:</SJ>
        <SJDENT>
          <SJDOC>Transecurity LLC; Parts and Accessories Necessary for Safe Operation,</SJDOC>
          <PGS>51104-51105</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20752</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Retirement</EAR>
      <HD>Federal Retirement Thrift Investment Board</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>51026</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20868</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Federal Transit</EAR>
      <HD>Federal Transit Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Redlands Passenger Rail Project; San Bernardino and Redlands, CA,</SJDOC>
          <PGS>51105-51106</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20774</FRDOCBP>
        </SJDENT>
        <DOCENT>
          <DOC>Limitation on Claims against Proposed Public Transportation Projects,</DOC>
          <PGS>51106</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20771</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Fish</EAR>
      <HD>Fish and Wildlife Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Endangered Species Recovery Permit Applications,</DOC>
          <PGS>51042-51044</PGS>
          <FRDOCBP D="2" T="23AUN1.sgm">2012-20727</FRDOCBP>
        </DOCENT>
        <SJ>Environmental Assessments and Comprehensive Conservation Plans; Availability:</SJ>
        <SJDENT>
          <SJDOC>Cabo Rojo National Wildlife Refuge, PR,</SJDOC>
          <PGS>51044-51045</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20724</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Laguna Cartagena National Wildlife Refuge, PR,</SJDOC>
          <PGS>51044</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20723</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Food and Drug</EAR>
      <HD>Food and Drug Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Communicating Composite Scores in Direct-to-Consumer Advertising,</SJDOC>
          <PGS>51027-51030</PGS>
          <FRDOCBP D="3" T="23AUN1.sgm">2012-20783</FRDOCBP>
        </SJDENT>
        <SJ>Debarment Orders:</SJ>
        <SJDENT>
          <SJDOC>Kelly Dean Shrum,</SJDOC>
          <PGS>51030-51031</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20784</FRDOCBP>
        </SJDENT>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Science Board,</SJDOC>
          <PGS>51031-51032</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20782</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Food and Nutrition</EAR>
      <HD>Food and Nutrition Service</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Food Distribution Program on Indian Reservations:</SJ>
        <SJDENT>
          <SJDOC>Administrative Funding Allocations,</SJDOC>
          <PGS>50903-50907</PGS>
          <FRDOCBP D="4" T="23AUR1.sgm">2012-20377</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Forest</EAR>
      <HD>Forest Service</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>GMUG Resource Advisory Committee,</SJDOC>
          <PGS>50984-50985</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20730</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Gogebic Resource Advisory Committee,</SJDOC>
          <PGS>50985-50986</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20726</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Advisory Committee for Implementation of the National Forest System Land Management Planning Rule,</SJDOC>
          <PGS>50985</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20701</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Ontonagon Resource Advisory Committee,</SJDOC>
          <PGS>50984</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20725</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Ozark-Ouachita Rescource Advisory Committee,</SJDOC>
          <PGS>50983-50984</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20796</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Southern Arizona Resource Advisory Committee,</SJDOC>
          <PGS>50983</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20733</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>General Services</EAR>
      <HD>General Services Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Federal Acquisition Regulations; Government Property,</SJDOC>
          <PGS>51026-51027</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20741</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Health and Human</EAR>
      <HD>Health and Human Services Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Food and Drug Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>National Institutes of Health</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Refugee Resettlement Office</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Substance Abuse and Mental Health Services Administration</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Homeland</EAR>
      <HD>Homeland Security Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Coast Guard</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>U.S. Customs and Border Protection</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Interior</EAR>
      <HD>Interior Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Fish and Wildlife Service</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Requests for Nominations:</SJ>
        <SJDENT>
          <SJDOC>U.S. Extractive Industries Transparency Initiative Advisory Committee; Extension,</SJDOC>
          <PGS>51041-51042</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20793</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>International Trade Adm</EAR>
      <PRTPAGE P="v"/>
      <HD>International Trade Administration</HD>
      <CAT>
        <HD>PROPOSED RULES</HD>
        <DOCENT>
          <DOC>Definition of Factual Information and Time Limits for Submission of Factual Information,</DOC>
          <PGS>50963</PGS>
          <FRDOCBP D="0" T="23AUP1.sgm">2012-20785</FRDOCBP>
        </DOCENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Request for Nominations</SJ>
        <SJDENT>
          <SJDOC>Environmental Technologies Trade Advisory Committee,</SJDOC>
          <PGS>50987-50988</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20773</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>International Trade Com</EAR>
      <HD>International Trade Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Complaints:</SJ>
        <SJDENT>
          <SJDOC>Certain Sintered Rare Earth Magnets, Methods of  Making Same and  Products Containing Same,</SJDOC>
          <PGS>51046-51047</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20709</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Certain Two-Way Global Satellite Communication Devices, System and  Components Thereof,</SJDOC>
          <PGS>51045-51046</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20708</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Justice Department</EAR>
      <HD>Justice Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Antitrust Division</P>
      </SEE>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Lodging of Consent Decrees Under CLERCA,</DOC>
          <PGS>51047-51048</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20707</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Lodgings of Amendment to Consent Decrees under the Clean Water Act,</DOC>
          <PGS>51048</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20781</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Labor Department</EAR>
      <HD>Labor Department</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Employment and Training Administration</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Library</EAR>
      <HD>Library of Congress</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Copyright Office, Library of Congress</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>NASA</EAR>
      <HD>National Aeronautics and Space Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Federal Acquisition Regulations; Government Property,</SJDOC>
          <PGS>51026-51027</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20741</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Highway</EAR>
      <HD>National Highway Traffic Safety Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51106-51107</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20750</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Institute</EAR>
      <HD>National Institutes of Health</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>Center for Scientific Review,</SJDOC>
          <PGS>51032-51033</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20692</FRDOCBP>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20693</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Cancer Institute,</SJDOC>
          <PGS>51032</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20690</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>National Oceanic</EAR>
      <HD>National Oceanic and Atmospheric Administration</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Fisheries Off West Coast States:</SJ>
        <SJDENT>
          <SJDOC>Coastal Pelagic Species Fisheries; Closure,</SJDOC>
          <PGS>50952-50953</PGS>
          <FRDOCBP D="1" T="23AUR1.sgm">2012-20670</FRDOCBP>
        </SJDENT>
      </CAT>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Meetings:</SJ>
        <SJDENT>
          <SJDOC>South Atlantic Fishery Management Council,</SJDOC>
          <PGS>50988-50990</PGS>
          <FRDOCBP D="2" T="23AUN1.sgm">2012-20792</FRDOCBP>
        </SJDENT>
        <SJ>Takes of Marine Mammals Incidental to Specified Activities:</SJ>
        <SJDENT>
          <SJDOC>Rocky Intertidal Monitoring Surveys, South Farallon Islands, CA,</SJDOC>
          <PGS>50990-50998</PGS>
          <FRDOCBP D="8" T="23AUN1.sgm">2012-20790</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Nuclear Regulatory</EAR>
      <HD>Nuclear Regulatory Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Environmental Assessments; Availability, etc.:</SJ>
        <SJDENT>
          <SJDOC>Indiana Michigan Power Co., Donald C. Cook Nuclear Plant, Unit 2,</SJDOC>
          <PGS>51071-51072</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20743</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Postal Service</EAR>
      <HD>Postal Service</HD>
      <CAT>
        <HD>RULES</HD>
        <SJ>Electronic Transmission of Customs Data:</SJ>
        <SJDENT>
          <SJDOC>Outbound International Letter-Post Items,</SJDOC>
          <PGS>50932-50936</PGS>
          <FRDOCBP D="4" T="23AUR1.sgm">2012-20583</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Refugee</EAR>
      <HD>Refugee Resettlement Office</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Refugee Social Services and Targeted Assistance Formula Grant Allocations; Notification Change,</DOC>
          <PGS>51033</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20798</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Securities</EAR>
      <HD>Securities and Exchange Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals; Correction,</DOC>
          <PGS>51072-51073</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20758</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Meetings; Sunshine Act,</DOC>
          <PGS>51073</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20900</FRDOCBP>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20901</FRDOCBP>
        </DOCENT>
        <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
        <SJDENT>
          <SJDOC>NASDAQ OMX PHLX LLC,</SJDOC>
          <PGS>51073-51076, 51088-51097</PGS>
          <FRDOCBP D="3" T="23AUN1.sgm">2012-20711</FRDOCBP>
          <FRDOCBP D="9" T="23AUN1.sgm">2012-20714</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>National Stock Exchange, Inc.,</SJDOC>
          <PGS>51076-51081</PGS>
          <FRDOCBP D="5" T="23AUN1.sgm">2012-20712</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>NYSE Arca, Inc.,</SJDOC>
          <PGS>51081-51088</PGS>
          <FRDOCBP D="7" T="23AUN1.sgm">2012-20713</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR/>
      <HD>Sentencing Commission, United States</HD>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>United States Sentencing Commission</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Small Business</EAR>
      <HD>Small Business Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Action Subject to Intergovernmental Review,</DOC>
          <PGS>51097-51098</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20749</FRDOCBP>
        </DOCENT>
        <DOCENT>
          <DOC>Action Subject to Intergovernmental Review Under Executive Order,</DOC>
          <PGS>51098-51099</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20760</FRDOCBP>
        </DOCENT>
        <SJ>Disaster Declarations:</SJ>
        <SJDENT>
          <SJDOC>Georgia,</SJDOC>
          <PGS>51099-51100</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20753</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Indiana,</SJDOC>
          <PGS>51101</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20759</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Minnesota,</SJDOC>
          <PGS>51101</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20757</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Tennessee,</SJDOC>
          <PGS>51100</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20755</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Virginia,</SJDOC>
          <PGS>51100</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20751</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>State Department</EAR>
      <HD>State Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
        <SJDENT>
          <SJDOC>Application for Consular Report of Birth Abroad of a Citizen of the United States of America,</SJDOC>
          <PGS>51101-51102</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20799</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Application Under the Hague Convention on the Civil Aspects of International Child Abduction,</SJDOC>
          <PGS>51102-51103</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20797</FRDOCBP>
        </SJDENT>
        <SJ>Culturally Significant Objects Imported for Exhibition:</SJ>
        <SJDENT>
          <SJDOC>Ferdinand Hodler; View to Infinity,</SJDOC>
          <PGS>51103</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20794</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Substance</EAR>
      <HD>Substance Abuse and Mental Health Services Administration</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51033-51039</PGS>
          <FRDOCBP D="2" T="23AUN1.sgm">2012-20718</FRDOCBP>
          <FRDOCBP D="2" T="23AUN1.sgm">2012-20719</FRDOCBP>
          <FRDOCBP D="2" T="23AUN1.sgm">2012-20720</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Surface Transportation</EAR>
      <HD>Surface Transportation Board</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Abandonment Exemptions:</SJ>
        <SJDENT>
          <SJDOC>Union Pacific Railroad Co., Pocahontas County, IA,</SJDOC>
          <PGS>51107</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20729</FRDOCBP>
        </SJDENT>
        <SJ>Acquisitions and Operation Exemptions:</SJ>
        <SJDENT>
          <SJDOC>Mineral Range, Inc., from Rail Line of Lake Superior and Ishpeming Railroad Co.,</SJDOC>
          <PGS>51107-51108</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20754</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>Federal Motor Carrier Safety Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>Federal Transit Administration</P>
      </SEE>
      <SEE>
        <HD SOURCE="HED">See</HD>
        <P>National Highway Traffic Safety Administration</P>
      </SEE>
      <SEE>
        <PRTPAGE P="vi"/>
        <HD SOURCE="HED">See</HD>
        <P>Surface Transportation Board</P>
      </SEE>
    </AGCY>
    <AGCY>
      <EAR>Treasury</EAR>
      <HD>Treasury Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals,</DOC>
          <PGS>51108-51109</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20722</FRDOCBP>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20746</FRDOCBP>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20747</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Customs</EAR>
      <HD>U.S. Customs and Border Protection</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Accreditations and Approvals as Commercial Gaugers and Laboratories:</SJ>
        <SJDENT>
          <SJDOC>Inspectorate America Corp.,</SJDOC>
          <PGS>51040</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20770</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Columbia Inspection, Inc.,</SJDOC>
          <PGS>51040</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20762</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>Inspectorate America Corp.,</SJDOC>
          <PGS>51040-51041</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20769</FRDOCBP>
        </SJDENT>
        <SJ>Approvals as Commercial Gaugers:</SJ>
        <SJDENT>
          <SJDOC>Inspectorate America Corp.,</SJDOC>
          <PGS>51041</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20768</FRDOCBP>
        </SJDENT>
        <SJDENT>
          <SJDOC>The Strawn Group,</SJDOC>
          <PGS>51041</PGS>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20772</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>U.S. Sentencing</EAR>
      <HD>United States Sentencing Commission</HD>
      <CAT>
        <HD>NOTICES</HD>
        <DOCENT>
          <DOC>Sentencing Guidelines for United States Courts,</DOC>
          <PGS>51110-51113</PGS>
          <FRDOCBP D="3" T="23AUN1.sgm">2012-20786</FRDOCBP>
          <FRDOCBP D="0" T="23AUN1.sgm">2012-20791</FRDOCBP>
        </DOCENT>
      </CAT>
    </AGCY>
    <AGCY>
      <EAR>Veteran Affairs</EAR>
      <HD>Veterans Affairs Department</HD>
      <CAT>
        <HD>NOTICES</HD>
        <SJ>Supportive Services for Veteran Families Program:</SJ>
        <SJDENT>
          <SJDOC>Letter of Intent to Apply for Funding,</SJDOC>
          <PGS>51113-51114</PGS>
          <FRDOCBP D="1" T="23AUN1.sgm">2012-20761</FRDOCBP>
        </SJDENT>
      </CAT>
    </AGCY>
    <PTS>
      <HD SOURCE="HED">Separate Parts In This Issue</HD>
      <HD>Part II</HD>
      <DOCENT>
        <DOC>Bureau of Consumer Financial Protection,</DOC>
        <PGS>51116-51457</PGS>
        <FRDOCBP D="341" T="23AUP2.sgm">2012-17663</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>164</NO>
  <DATE>Thursday, August 23, 2012</DATE>
  <UNITNAME>Rules and Regulations</UNITNAME>
  <RULES>
    <RULE>
      <PREAMB>
        <PRTPAGE P="50903"/>
        <AGENCY TYPE="F">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Food and Nutrition Service</SUBAGY>
        <CFR>7 CFR Part 253</CFR>
        <DEPDOC>[FNS-2010-0020]</DEPDOC>
        <RIN>RIN 0584-AD85</RIN>
        <SUBJECT>Food Distribution Program on Indian Reservations: Administrative Funding Allocations</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Food and Nutrition Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>This rulemaking establishes the requirements regarding the allocation of administrative funds for the Food Distribution Program on Indian Reservations and the Food Distribution Program for Indian Households in Oklahoma, both of which are referred to as “FDPIR” in this rulemaking. The rulemaking amends FDPIR regulations to ensure that administrative funding is allocated in a fair and equitable manner. The final rule also revises FDPIR regulations to clarify current program requirements relative to the distribution of administrative funds to Indian Tribal Organizations (ITOs) and State agencies.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>This rule is effective September 24, 2012.</P>
        </DATES>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Dana Rasmussen, Chief, Policy Branch, Food Distribution Division, Food and Nutrition Service, 3101 Park Center Drive, Room 506, Alexandria, Virginia 22302, or by telephone (703) 305-2662.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">A. Executive Order 12866, “Regulatory Planning and Review”</HD>
        <P>This final rule has been determined to be not significant for purposes of Executive Order 12866. Therefore it was not reviewed by the Office of Management and Budget (OMB).</P>
        <HD SOURCE="HD1">B. Title 5, United States Code 601-612, “Regulatory Flexibility Act”</HD>
        <P>This final rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). The administrator of the Food and Nutrition Service certified that this action will not have a significant impact on a substantial number of small entities. While ITOs and State agencies that administer FDPIR will be affected by this rulemaking, the economic effect will not be significant.</P>
        <HD SOURCE="HD1">C. Public Law 104-4, “Unfunded Mandates Reform Act of 1995” (UMRA)</HD>
        <P>Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and Tribal governments and the private sector. Under Section 202 of the UMRA, the Food and Nutrition Service (FNS) generally must prepare a written statement, including a cost-benefit analysis, for proposed and final rules with Federal mandates that may result in expenditures to State, local, or Tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year. When such a statement is needed for a rule, Section 205 of the UMRA generally requires FNS to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective or least burdensome alternative that achieves the objectives of the rule.</P>
        <P>This rule contains no Federal mandates (under the regulatory provisions of Title II of the UMRA) for State, local, and Tribal governments or the private sector of $100 million or more in any one year. This rule is, therefore, not subject to the requirements of Sections 202 and 205 of the UMRA.</P>
        <HD SOURCE="HD1">D. Executive Order 12372, “Intergovernmental Review of Federal Programs”</HD>
        <P>The program addressed in this action is listed in the Catalog of Federal Domestic Assistance under No. 10.567. For the reasons set forth in the final rule in 7 CFR part 3015, Subpart V and related Notice published at 48 FR 29115 on June 24, 1983, the donation of foods in such programs is included in the scope of Executive Order 12372, which requires intergovernmental consultation with State and local officials.</P>
        <HD SOURCE="HD1">E. Executive Order 13132, “Federalism”</HD>
        <P>Executive Order 13132 requires Federal agencies to consider the impact of their regulatory actions on State and local governments. Where such actions have federalism implications, agencies are directed to provide a statement for inclusion in the preamble to the regulations describing the agency's considerations in terms of the three categories called for under Section (6)(b)(2)(B) of Executive Order 13132.</P>
        <HD SOURCE="HD2">1. Prior Consultation With State and Local Officials</HD>

        <P>This rulemaking makes regulatory changes regarding the allocation of FDPIR administrative funds to the FNS Regional Offices for further allocation to the ITOs and State agencies that administer FDPIR. The programs that receive FDPIR administrative funding from FNS' Regional Offices are all Tribal or State-administered, federally-funded programs. On an ongoing basis, the FNS National and Regional Offices have formal and informal discussions related to FDPIR with Tribal and State officials. FNS meets regularly with the Board and the membership of the National Association of Food Distribution Programs on Indian Reservations (NAFDPIR), an association of Tribal and State-appointed FDPIR Program Directors, to discuss issues relating to the program. Section F,<E T="03">Tribal Impact Statement,</E>below, provides additional information on FNS' efforts to work directly with ITOs and State agencies in the development of the funding methodology specified in this rule.</P>
        <HD SOURCE="HD2">2. Nature of Concerns and the Need To Issue This Rule</HD>

        <P>For many years, the FNS National Office used fixed percentages to allocate FDPIR administrative funds to each of the FNS Regional Offices, which in turn allocated the available funding to FDPIR ITOs and State agencies. However, this funding methodology did not account for any administrative cost drivers, such as the number of ITOs and State agencies within each Region or the number of individuals served by each ITO/State agency. ITOs and State agencies expressed concern that the methodology did not allocate funds equitably to the FNS Regional Offices, which negatively impacted the capacity<PRTPAGE P="50904"/>of certain agencies to adequately administer the program.</P>
        <HD SOURCE="HD2">3. Extent to Which we Address Those Concerns</HD>
        <P>FNS has considered the impact of the final rule on FDPIR ITOs and State agencies. FNS does not expect the provisions of this rule to conflict with any State or local laws, regulations, or policies. The intent of this rule is to respond to the concerns of ITOs and State agencies by ensuring that funds are allocated to the FNS Regional Offices as fairly as possible; and to ensure that related program requirements with regard to the allocation of administrative funds to ITOs and State agencies, as well as ITO and State agency matching requirements, are clear and easy to understand.</P>
        <HD SOURCE="HD1">F. Executive Order 13175, “Tribal Impact Statement”</HD>
        <P>This rulemaking makes regulatory changes regarding the allocation of FDPIR administrative funds to the FNS Regional Offices, which further allocate the funds to the ITOs and State agencies that administer FDPIR. The changes are intended to ensure that FDPIR administrative funding is allocated to the FNS Regional Offices in a fair and equitable manner. The final rule also revises FDPIR regulations to clarify current program requirements relative to the allocation of administrative funds to ITOs and State agencies.</P>
        <P>During the course of developing the proposed and final rules, FNS took numerous actions to ensure meaningful and timely input by elected Tribal leaders. In 2005, FNS convened a work group comprised of FNS staff and Tribal and State-appointed FDPIR Program Directors representing NAFDPIR and its membership. The work group was asked to develop a proposal(s) for a new funding methodology for the allocation of FDPIR federal administrative funds. The work group conducted its deliberations via 33 conference calls and six face-to-face meetings from May 2005 through October 2007. Discussions were also held at the annual meetings of the membership of NAFDPIR, in which some elected Tribal leaders took part. The work group and FNS solicited written comments from elected Tribal leaders and State officials at various stages of the development of the funding methodology. In addition to the requests for written comments, FNS hosted public meetings that were held in January 2007 at four locations throughout the country. Elected Tribal leaders and State officials were invited to discuss the proposal to develop a funding methodology at those public meetings. Discussion from the public meetings and written comments submitted to the work group were considered in presenting recommendations for a funding methodology to the FNS Administrator.</P>
        <P>In fiscal year 2008, FNS implemented the funding methodology on a trial basis. FNS solicited comments from elected Tribal leaders and State officials on the impact of the funding methodology in fiscal year 2008 for consideration in determining the funding methodology to be used in fiscal year 2009, pending the development of proposed rulemaking.</P>

        <P>A rule which proposed to formalize the funding methodology and clarify other related program requirements was published in the<E T="04">Federal Register</E>(75 FR 54530) on September 8, 2010. The proposed rule referenced the written comments received on the pilot after implementation, and solicited further comments from elected Tribal leaders, State officials, and other interested members of the public. A summary of public comments received on the September 8, 2010 proposed rule and the agency's responses to comments received are discussed in section II of the preamble.</P>
        <HD SOURCE="HD1">G. Executive Order 12988, “Civil Justice Reform”</HD>
        <P>This final rule has been reviewed under Executive Order 12988, Civil Justice Reform. Although the provisions of this rule are not expected to conflict with any State or local laws, regulations, or policies, the rule is intended to have preemptive effect with respect to any State or local laws, regulations, or policies that conflict with its provisions or that would otherwise impede its full implementation. This rule is not intended to have retroactive effect. Prior to any judicial challenge to the provisions of this rule or the application of its provisions, all applicable administrative procedures must be exhausted.</P>
        <HD SOURCE="HD1">H. Department Regulation 4300-4, “Civil Rights Impact Analysis”</HD>
        <P>FNS has reviewed this rule in accordance with the Department Regulation 4300-4, “Civil Rights Impact Analysis,” to identify and address any major civil rights impacts the rule might have on minorities, women, and persons with disabilities. After a careful review of the rule's intent and provisions, FNS has determined that this rule will not in any way limit or reduce the ability of participants to receive the benefits of donated foods on the basis of an individual's or group's race, color, national origin, sex, age, political beliefs, religious creed, or disability. FNS found no factors that would negatively and disproportionately affect any group of individuals.</P>
        <HD SOURCE="HD1">I. Title 44, United States Code, Chapter 35, “Paperwork Reduction Act”</HD>
        <P>The Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35; see 5 CFR part 1320) requires that OMB approve all collections of information by a Federal agency from the public before they can be implemented. Respondents are not required to respond to any collection of information unless it displays a current valid OMB control number. This final rule does not contain any new information collection requirements subject to review and approval by OMB under the Paperwork Reduction Act of 1995. However, previous burdens for 7 CFR part 253 information collections associated with this rule have been approved under OMB control number 0584-0293.</P>
        <HD SOURCE="HD1">J. Public Law 107-347, “E-Government Act Compliance”</HD>
        <P>FNS is committed to complying with the E-Government Act of 2002 to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes.</P>
        <HD SOURCE="HD1">Background and Discussion of the Final Rule</HD>
        <HD SOURCE="HD2">A. Prior Administrative Funding Allocation Methodology</HD>

        <P>Prior to this final rulemaking, FDPIR regulations at 7 CFR part 253 did not specify a methodology for the allocation of administrative funds. Under the traditional practice, the FNS National Office allocated funds to the FNS Regional Offices using fixed percentages. These funding percentages varied from one Region to the next, did not change for many years prior to fiscal year 2008, and did not reflect cost drivers such as each Region's share of national program participation and current number of ITOs and State agencies. Regional Offices then allocated to each ITO or State agency its share of administrative funds based on negotiations with such entity. Because FNS Regional Offices received funding without regard to the effect of cost drivers, similar ITOs and State agencies in different Regions could have received significantly different funding levels. Consequently, this method of allocating funds had the potential to negatively impact program operations and result in<PRTPAGE P="50905"/>inconsistent or uneven service to participants.</P>
        <HD SOURCE="HD2">B. FDPIR Funding Methodology Work Group and Pilot</HD>
        <P>To address concerns raised by FDPIR ITOs and State agencies over potential FDPIR administrative funding inequities, a funding methodology work group was convened by FNS in 2005. The work group, which was comprised of FDPIR program representatives, including NAFDPIR officers, and FNS staff, was charged with developing a new methodology for the distribution of FDPIR administrative funds that would be fair, objective, and easy to understand.</P>
        <P>Based on the work group's proposals, FNS developed an administrative funding allocation methodology which was initially implemented on a pilot basis in fiscal year 2008, and has continued as a pilot up to the present time. This funding methodology allocates funds to the Regional Offices based on two weighted components: Each Region's share of the total number of participants nationally, and each Region's share of the total current number of ITOs and State agencies administering the program nationally. Proportionally more weight was given to the first element, program participation, since FNS believes this to be the major cost driver in the administration of FDPIR. By using these two factors, FNS intended to design a funding methodology that would provide each FNS Regional Office with adequate funding to support the operational costs of all of its programs, including both larger programs with high participation and smaller programs with certain basic administrative costs.</P>
        <P>FNS sought comments regarding the impact of the piloted methodology on the program. The comments received were considered in the development of the proposed rule. Further details on the proceedings of the work group in developing proposals for a funding methodology and the implementation of the pilot may be found in the preamble of the proposed rule.</P>
        <HD SOURCE="HD2">C. Proposed Rule and Analysis of Comments Received</HD>
        <P>In a proposed rule published in the<E T="04">Federal Register</E>on September 8, 2010 (75 FR 54530), FNS proposed to include in 7 CFR part 253 the administrative funding methodology that was implemented on a pilot basis, and that was based on the work group proposal. In accordance with that methodology, sixty-five percent of all administrative funds available nationally are allocated to FNS Regional Offices in proportion to their share of the number of participants nationally, averaged over the three previous fiscal years. FNS believes program participation to be the major cost driver. However, in order to recognize the fixed costs common to programs of all participation levels, the remaining 35 percent of all administrative funds available nationally are allocated to each FNS Regional Office in proportion to its share of the total current number of ITOs and State agencies administering the program nationally. By using these two factors, FNS intended to design a funding methodology that would provide each FNS Regional Office with the funding to support the operational costs of all of its programs, both large and small.</P>

        <P>Comments were solicited through December 7, 2010, on the provisions of the proposed rulemaking. These comments are discussed below and are available for review at<E T="03">www.regulations.gov.</E>To view the comments received, select “Public Submissions” from the dropdown menu entitled “Select Document Type,” and enter “FNS-2010-0020” in the box under “Enter Keyword or ID.” Then click on “Search.”</P>
        <P>FNS received written comments from two elected Tribal leaders, five FDPIR program administrators, one Tribal nutrition services administrator, and one private citizen regarding the proposed funding methodology. Six commenters supported the funding allocation methodology, while three commenters opposed it. Of the six commenters supporting the methodology, five specifically cited support for the funding allocation factors proposed, i.e., each Region's proportionate share of national program participation and number of programs. Four of the six commenters cited equity or fairness as another factor in their support of the methodology. Four of the six commenters also specified that the funding methodology is simple, straightforward, and easy to understand. Three supporting commenters cited the fact that the piloted and proposed provisions, in conjunction with increased funding from Congress, provided the resources needed for their programs. Finally three commenters expressed support for the consultation process prior to pilot implementation.</P>
        <P>One commenter stated three key objections to the proposed funding methodology: (1) FNS did not consult with the Tribes and State agencies; (2) the funding methodology represents a “one-size fits all” approach that does not recognize each Tribe as a government with unique needs; and (3) the funding methodology is more beneficial to Tribes with greater participation rates, and minimizes services to Tribes with lower participation rates. Regarding the third objection, the commenter further stated that small Tribes should be considered for supplemental funding.</P>
        <P>FNS consulted with elected Tribal leaders and State officials on multiple occasions prior to piloting the funding allocation methodology, as outlined in the proposed rule. The decision to pilot the methodology was made in response to the Congressional expectation that FNS address funding inequities with the additional funds provided in fiscal year 2008. In addition to meeting the intent of Congress, the pilot permitted FNS to continue consultations with elected Tribal leaders and State officials. While we acknowledge that there are varying perspectives regarding what constitutes consultation, we believe that there was adequate consultation.</P>
        <P>Regarding the commenter's objections in reference to the funding methodology's “one-size-fits-all” approach, and its failure to meet the needs of smaller programs, each FNS Regional Office continues to negotiate budgets directly with each FDPIR ITO and State agency, once the funds are allocated to the Regions. This permits each FNS Regional Office the flexibility to meet the special needs of each ITO and State agency within its share of the total administrative funds available, including smaller ITOs.</P>
        <P>In reference to the commenter's objection that the funding methodology is more beneficial to Tribes with greater participation rates, FNS believes that program participation is the major cost driver. However, FNS also recognizes that there are fixed costs common to programs of all participation levels. For that reason, the funding methodology provides 35 percent of all administrative funds available nationally to each FNS Regional Office in proportion to its share of the total current number of State agencies administering the program nationally. The establishment of this second factor in allocation offers a proper balance by providing each FNS Regional Office with funding to support the operational costs of all programs, regardless of participation levels.</P>

        <P>Another commenter objected to the use of program participation as a factor in the funding methodology, stating that the factor is flawed because increased Supplemental Nutrition Assistance Program (SNAP) benefits led to a decline in FDPIR participation. However, while FDPIR did experience a decline in participation, the decline did not have a disproportionate negative<PRTPAGE P="50906"/>impact in a specific Region, nor did it affect the total administrative funding available to the program. On the contrary, such funding increased after fiscal year 2008.</P>

        <P>One commenter stated that the proposed funding methodology will not work without: (1) Increasing the FDPIR income limit and changing the standard earned income deduction, (2) increasing the resource limits for the program, (3) providing more food, including fresh produce, in FDPIR, and (4) making all Social Security recipients categorically eligible for FDPIR. However, these changes would, for the most part, impact program eligibility and benefits, and would not affect the methodology of allocating administrative funds, which is the subject of this rule. In a proposed rule published in the<E T="04">Federal Register</E>on January 11, 2012 (77 FR 1642), FNS proposed to eliminate the requirement that household resources be considered in determining program eligibility, and proposed to include additional income deductions. These changes, if implemented, would simplify program administration, and make it easier for applicants to qualify for program benefits.</P>
        <P>Another commenter stated that the higher incidence of Native American health conditions (e.g., diabetes, obesity, heart conditions) should be the impetus that drives funding in FDPIR. FNS recognizes the need to contribute positively to the health of participants in all of its nutrition assistance programs, including FDPIR. Since 2008, FNS has made $1 million available on an annual basis for FDPIR nutrition education, with the goal of enhancing the nutrition knowledge of FDPIR participants and fostering positive lifestyle changes. These funds are allocated separately from program administrative funds.</P>
        <HD SOURCE="HD2">D. Regulatory Revisions, 7 CFR 253.11</HD>
        <P>For the purposes of this rule, FDPIR State agencies include both ITOs and agencies of state government. In 7 CFR 253.11 of the proposed rule, we proposed to remove paragraph (a) and redesignate paragraphs (b) through (h), and to include, in new paragraphs (a), (b), and (c):</P>
        <P>(1) The methodology for allocating administrative funds to FNS Regional Offices, as described above, which has been implemented on a pilot basis;</P>
        <P>(2) Clarification of the requirement for State agencies to submit budgets to FNS Regional Offices, and subsequent allocation to State agencies of funds required to meet 75 percent of approved administrative costs; and</P>
        <P>(3) Clarification of the requirement for State agencies to match administrative funds allocated to them by covering 25 percent of approved administrative costs, unless a waiver is submitted and approved to reduce the matching requirement.</P>
        <HD SOURCE="HD3">1. Funding Methodology</HD>
        <P>In 7 CFR 253.11(a) of the proposed rule, we proposed to allocate administrative funds to the FNS Regional Offices, to the extent practicable, in the following manner: Sixty-five percent of all administrative funds available nationally would be allocated to each FNS Regional Office in proportion to its share of the total number of participants nationally, averaged over the three previous fiscal years; and thirty-five percent of all administrative funds available nationally would be allocated to each FNS Regional Office in proportion to its share of the total current number of State agencies administering the program nationally.</P>
        <P>As an outcome of the pilot implementation, FNS identified the need to include regulatory language to ensure that funding is available to support participation of new State agencies for which prior participation data is not available, and that would permit FNS some limited flexibility to meet individual State agency administrative funding needs not reflected under the two weighted factors. Consequently, we proposed to allocate funds to FNS Regional Offices, in accordance with the funding methodology described above, “to the extent practicable * * *.” Based on the comments discussed above, most of which were in support of the proposals, the proposed funding methodology is included without change in 7 CFR 253.11(a) of this final rule.</P>
        <HD SOURCE="HD3">2. State Agency Budget Submissions and Allocations</HD>
        <P>In 7 CFR 253.11(b) of the proposed rule, we proposed to include the requirement, in current 7 CFR 253.11(b), that State agencies submit annual budgets to FNS for approval, and that only administrative costs that are allowable under 7 CFR part 277 may be included. We proposed to clarify that the budget request must be sent to the FNS Regional Office for approval, which is consistent with directives in FNS Instruction 700-1, Rev. 2. Finally, we proposed to include the provision in current 7 CFR 253.11(a) which specifies that, within funding limitations, FNS provides State agencies with administrative funds necessary to meet 75 percent of approved administrative costs, with the clarification that FNS Regional Offices provide the administrative funds to State agencies. No comments were received on these proposed provisions. Thus, the proposed changes are retained in 7 CFR 253.11(b) of this final rule.</P>
        <HD SOURCE="HD3">3. State Agency Matching Requirement</HD>
        <P>In 7 CFR 253.11(c) of the proposed rule, we proposed to set forth the State agency matching requirements. In 7 CFR 253.11(c)(1), we proposed to indicate that the State agency must contribute 25 percent of approved administrative costs, and that both cash and non-cash contributions may be used to meet the matching requirement. This is currently required via FNS Instruction 716-4, Rev. 1. For the sake of clarity, we proposed to include in paragraph (c)(1) the criteria for allowable cash and non-cash contributions, similar to what is currently provided in 7 CFR part 277. No comments were received on these proposed provisions. Thus, the proposed changes are retained in 7 CFR 253.11(c)(1) of this final rule. We have also added the provision, in current 7 CFR 253.11(b), that the value of services rendered by volunteers may be used to meet the matching requirement.</P>
        <P>In 7 CFR 253.11(c)(2), we proposed to permit the State agency to request a waiver to reduce the matching requirement to less than 25 percent of approved administrative costs. In essence, this clarifies the provision, in current 7 CFR 253.11(a), regarding requests for payment of Federal funds in excess of 75 percent of administrative costs. We proposed to retain the requirement that the State agency provide compelling justification for meeting less than the 25 percent match and receiving additional administrative funds. Furthermore, we proposed to add a provision which gives the FNS Regional Office the discretion to provide additional administrative funds beyond 75 percent. This is consistent with current program practice. No comments were received on these proposed provisions. Thus, the proposed changes are retained in 7 CFR 253.11(c) of this final rule.</P>
        <HD SOURCE="HD3">4. Allowable Costs</HD>

        <P>In this final rule, we are redesignating current 7 CFR 253.11(c) through (h) as 7 CFR 253.11(e) through (j), in order to include a new paragraph (d) to clarify requirements in current 7 CFR 253.11(b) regarding allowable costs in the use of administrative funds. Such costs must be used only for costs that are allowable under 7 CFR part 277, and that are incurred in operating FDPIR, and may not be used to pay costs that are, or may<PRTPAGE P="50907"/>be, paid with funds providedfrom other Federal sources.</P>
        <P>We also proposed to revise the heading of 7 CFR 253.11 to “Administrative funds” to more clearly describe the provisions in the section, as proposed. As we did not receive any comments relating to this proposal, this final rule revises the section heading as proposed.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 7 CFR Part 253</HD>
          <P>Administrative practice and procedure, Food assistance programs, Grant programs, Social programs, Indians, Reporting and recordkeeping requirements, Surplus agricultural commodities.</P>
        </LSTSUB>
        
        <P>Accordingly, 7 CFR part 253 is amended as follows:</P>
        <REGTEXT PART="253" TITLE="7">
          <PART>
            <HD SOURCE="HED">PART 253—ADMINISTRATION OF THE FOOD DISTRIBUTION PROGRAM FOR HOUSEHOLDS ON INDIAN RESERVATIONS</HD>
          </PART>
          <AMDPAR>1. The authority citation for 7 CFR part 253 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>91 Stat. 958 (7 U.S.C. 2011-2036).</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="253" TITLE="7">
          <AMDPAR>2. In § 253.11:</AMDPAR>
          <AMDPAR>a. Revise the section heading;</AMDPAR>
          <AMDPAR>b. Remove paragraphs (a) and (b);</AMDPAR>
          <AMDPAR>c. Redesignate paragraphs (c) through (h) as paragraphs (e) through (j); and</AMDPAR>
          <AMDPAR>d. Add new paragraphs (a) through (d).</AMDPAR>
          <P>The revisions and additions read as follows:</P>
          <SECTION>
            <SECTNO>§ 253.11</SECTNO>
            <SUBJECT>Administrative funds.</SUBJECT>
            <P>(a)<E T="03">Allocation of administrative funds to FNS Regional Offices.</E>Each fiscal year, after enactment of a program appropriation for the full fiscal year and apportionment of funds by the Office of Management and Budget, administrative funds will be allocated to each FNS Regional Office for further allocation to State agencies. To the extent practicable, administrative funds will be allocated to FNS Regional Offices in the following manner:</P>
            <P>(1) 65 percent of all administrative funds available nationally will be allocated to each FNS Regional Office in proportion to its share of the total number of participants nationally, averaged over the three previous fiscal years; and</P>
            <P>(2) 35 percent of all administrative funds available nationally will be allocated to each FNS Regional Office in proportion to its share of the total current number of State agencies administering the program nationally.</P>
            <P>(b)<E T="03">Allocation of administrative funds to State agencies.</E>Prior to receiving administrative funds, State agencies must submit a proposed budget reflecting planned administrative costs to the appropriate FNS Regional Office for approval. Planned administrative costs must be allowable under part 277 of this chapter. To the extent that funding levels permit, the FNS Regional Office allocates to each State agency administrative funds necessary to cover 75 percent of approved administrative costs.</P>
            <P>(c)<E T="03">State agency matching requirement.</E>State agencies must match administrative funds allocated to them as follows:</P>
            <P>(1) Unless Federal administrative funding is approved at a rate higher than 75 percent of approved administrative costs, in accordance with paragraph (c)(2) of this section, each State agency must contribute 25 percent of its total approved administrative costs. Cash or non-cash contributions, including third party in-kind contributions, and the value of services rendered by volunteers, may be used to meet the State agency matching requirement. In accordance with part 277 of this chapter, such contributions must:</P>
            <P>(i) Be verifiable;</P>
            <P>(ii) Not be contributed for another federally-assisted program, unless authorized by Federal legislation;</P>
            <P>(iii) Be necessary and reasonable to accomplish program objectives;</P>
            <P>(iv) Be allowable under Part 277 of this chapter;</P>
            <P>(v) Not be paid by the Federal Government under another assistance agreement unless authorized under the other agreement and its subject laws and regulations; and</P>
            <P>(vi) Be included in the approved budget.</P>
            <P>(2) The State agency may request a waiver to reduce its matching requirement below 25 percent of approved administrative costs. In its proposed budget, the State agency must submit compelling justification to the appropriate FNS Regional Office that it is unable to meet the 25 percent matching requirement and that additional administrative funds are necessary for the effective operation of the program. The FNS Regional Office may, at its discretion, approve a reduction of the matching requirement and provide additional administrative funds to cover more than 75 percent of approved administrative costs to a State agency that provides compelling justification. In its compelling justification submission, the State agency must include a summary statement and recent financial documents, in accordance with FNS instructions. Compelling justification may include but is not limited to:</P>
            <P>(i) The need for additional administrative funding for startup costs during the first year of program operation; or</P>
            <P>(ii) The need to prevent a reduction in the level of necessary and reasonable program services provided.</P>
            <P>(d)<E T="03">Use of funds by State agencies.</E>Any funds received under this section shall be used only for costs that are allowable under part 277 of this chapter, and that are incurred in operating the food distribution program. Such funds may not be used to pay costs that are, or may be, paid with funds provided from other Federal sources.</P>
            <STARS/>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: August 13, 2012.</DATED>
          <NAME>Audrey Rowe,</NAME>
          <TITLE>Administrator, Food and Nutrition Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20377 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-30-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 71</CFR>
        <DEPDOC>Docket No. FAA-2012-0842; Amendment No. 71-44</DEPDOC>
        <RIN>RIN 2120-AA66</RIN>
        <SUBJECT>Airspace Designations; Incorporation by Reference</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 Title 14 Code of Federal Regulations (14 CFR) part 71 relating to airspace designations to reflect the approval by the Director of the Federal Register of the incorporation by reference of FAA Order 7400.9W, Airspace Designations and Reporting Points. This action also explains the procedures the FAA will use to amend the listings of Class A, B, C, D, and E airspace areas; air traffic service routes; and reporting points incorporated by reference.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>These regulations are effective September 15, 2012, through September 15, 2013. The incorporation by reference of FAA Order 7400.9W is approved by the Director of the Federal Register as of September 15, 2012, through September 15, 2013.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Sarah A. Combs, Airspace, Regulations and ATC Procedures Group, Office of Airspace Services, Federal Aviation Administration, 800 Independence<PRTPAGE P="50908"/>Avenue  SW., Washington, DC 20591; telephone: (202) 267-8783.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">History</HD>

        <P>FAA Order 7400.9V, Airspace Designations and Reporting Points, effective September 15, 2011, listed Class A, B, C, D and E airspace areas; air traffic service routes; and reporting points. Due to the length of these descriptions, the FAA requested approval from the Office of the Federal Register to incorporate the material by reference in the Federal Aviation Regulations section 71.1, effective September 15, 2011, through September 15, 2012. During the incorporation by reference period, the FAA processed all proposed changes of the airspace listings in FAA Order 7400.9V in full text as proposed rule documents in the Federal Register. Likewise, all amendments of these listings were published in full text as final rules in the<E T="04">Federal Register</E>. This rule reflects the periodic integration of these final rule amendments into a revised edition of Order 7400.9W, Airspace Designations and Reporting Points. The Director of the Federal Register has approved the incorporation by reference of FAA Order 7400.9W in section 71.1, as of September 15, 2012, through September 15, 2013. This rule also explains the procedures the FAA will use to amend the airspace designations incorporated by reference in part 71. Sections 71.5, 71.15, 71.31, 71.33, 71.41, 71.51, 71.61, 71.71, and 71.901 are also updated to reflect the incorporation by reference of FAA Order 7400.9W.</P>
        <HD SOURCE="HD1">The Rule</HD>

        <P>This action amends Title 14 Code of Federal Regulations (14 CFR) part 71 to reflect the approval by the Director of the Federal Register of the incorporation by reference of FAA Order 7400.9W, effective September 15, 2012, through September 15, 2013. During the incorporation by reference period, the FAA will continue to process all proposed changes of the airspace listings in FAA Order 7400.9W in full text as proposed rule documents in the<E T="04">Federal Register</E>. Likewise, all amendments of these listings will be published in full text as final rules in the<E T="04">Federal Register</E>. The FAA will periodically integrate all final rule amendments into a revised edition of the Order, and submit the revised edition to the Director of the Federal Register for approval for incorporation by reference in section 71.1.</P>
        <P>The FAA has determined that this action: (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. This action neither places any new restrictions or requirements on the public, nor changes the dimensions or operation requirements of the airspace listings incorporated by reference in part 71.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 71</HD>
          <P>Airspace, Incorporation by reference, Navigation (air).</P>
        </LSTSUB>
        <HD SOURCE="HD1">Adoption of the Amendment</HD>
        <P>In consideration of the foregoing, the Federal Aviation Administration amends 14 CFR part 71 as follows:</P>
        <REGTEXT PART="71" TITLE="14">
          <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>
          </PART>
          <AMDPAR>1. The authority citation for part 71 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="71" TITLE="14">
          <AMDPAR>2. Section 71.1 is revised to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 71.1</SECTNO>
            <SUBJECT>Applicability.</SUBJECT>

            <P>A listing for Class A, B, C, D, and E airspace areas; air traffic service routes; and reporting points can be found in FAA Order 7400.9W, Airspace Designations and Reporting Points, dated August 8, 2012. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552 (a) and 1 CFR part 51. The approval to incorporate by reference FAA Order 7400.9W is effective September 15, 2012, through September 15, 2013. During the incorporation by reference period, proposed changes to the listings of Class A, B, C, D, and E airspace areas; air traffic service routes; and reporting points will be published in full text as proposed rule documents in the<E T="04">Federal Register</E>. Amendments to the listings of Class A, B, C, D, and E airspace areas; air traffic service routes; and reporting points will be published in full text as final rules in the<E T="04">Federal Register</E>. Periodically, the final rule amendments will be integrated into a revised edition of the Order and submitted to the Director of the Federal Register for approval for incorporation by reference  in this section. Copies of FAA Order 7400.9W may be obtained from Airspace, Regulations and ATC Procedures Group, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591, (202) 267-8783. An electronic version of the Order is available on the FAA Web site at<E T="03">http://www.faa.gov/air_traffic/publications.</E>Copies of FAA Order 7400.9W may be inspected in Docket No. FAA-2012-0842; Amendment No. 71-44 on<E T="03">http://www.regulations.gov.</E>A copy of AFF Order 7400.9W may be inspected 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>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.5</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>3. Section 71.5 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.15</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>4. Section 71.15 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.31</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>5. Section 71.31 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.33</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>6. Paragraph (c) of section 71.33 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.41</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>7. Section 71.41 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.51</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>8. Section 71.51 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.61</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>9. Section 71.61 is amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.71</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>
          <AMDPAR>10. Paragraphs (b), (c), (d), (e), and (f) of section 71.71 are amended by removing the words “FAA Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <REGTEXT PART="71" TITLE="14">
          <SECTION>
            <SECTNO>§ 71.901</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
          </SECTION>

          <AMDPAR>11. Paragraph (a) of section 71.901 is amended by removing the words “FAA<PRTPAGE P="50909"/>Order 7400.9V” and adding, in their place, the words “FAA Order 7400.9W.”</AMDPAR>
        </REGTEXT>
        <SIG>
          <DATED>Issued in Washington, DC, on August 15, 2012.</DATED>
          <NAME>Alan Wilkes,</NAME>
          <TITLE>Acting Manager, Airspace Policy and ATC Procedures Group.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20660 Filed 8-22-12; 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 95</CFR>
        <DEPDOC>[Docket No. 30859; Amdt. No. 502]</DEPDOC>
        <SUBJECT>IFR Altitudes; Miscellaneous Amendments</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 amendment adopts miscellaneous amendments to the required IFR (instrument flight rules) altitudes and changeover points for certain Federal airways, jet routes, or direct routes for which a minimum or maximum en route authorized IFR altitude is prescribed. This regulatory action is needed because of changes occurring in the National Airspace System. These changes are designed to provide for the safe and efficient use of the navigable airspace under instrument conditions in the affected areas.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>0901 UTC, September 20, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Rick Dunham, Flight Procedure Standards Branch (AMCAFS-420), Flight Technologies and Programs Division, Flight Standards Service, Federal Aviation Administration, Mike Monroney Aeronautical Center, 6500 South MacArthur Blvd., Oklahoma City, OK 73169 (Mail Address: P.O. Box 25082, Oklahoma City, OK 73125), telephone: (405) 954-4164.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>This amendment to part 95 of the Federal Aviation Regulations (14 CFR part 95) amends, suspends, or revokes IFR altitudes governing the operation of all aircraft in flight over a specified route or any portion of that route, as well as the changeover points (COPs) for Federal airways, jet routes, or direct routes as prescribed in part 95.</P>
        <HD SOURCE="HD1">The Rule</HD>
        <P>The specified IFR altitudes, when used in conjunction with the prescribed changeover points for those routes, ensure navigation aid coverage that is adequate for safe flight operations and free of frequency interference. The reasons and circumstances that create the need for this amendment involve matters of flight safety and operational efficiency in the National Airspace System, are related to published aeronautical charts that are essential to the user, and provide for the safe and efficient use of the navigable airspace. In addition, those various reasons or circumstances require making this amendment effective before the next scheduled charting and publication date of the flight information to assure its timely availability to the user. The effective date of this amendment reflects those considerations. In view of the close and immediate relationship between these regulatory changes and safety in air commerce, I find that notice and public procedure before adopting this amendment are impracticable and contrary to the public interest and that good cause exists for making the amendment effective in less than 30 days.</P>
        <HD SOURCE="HD1">Conclusion</HD>
        <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. 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. For the same reason, the FAA certifies that this amendment will not have a significant economic impact 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 95</HD>
          <P>Airspace, Navigation (air).</P>
        </LSTSUB>
        <SIG>
          <DATED>Issued in Washington, DC, on August 17, 2012.</DATED>
          <NAME>John M. Allen,</NAME>
          <TITLE>Deputy Director, Flight Standards Service.</TITLE>
        </SIG>
        <HD SOURCE="HD1">Adoption of the Amendment</HD>
        <P>Accordingly, pursuant to the authority delegated to me by the Administrator, part 95 of the Federal Aviation Regulations (14 CFR part 95) is amended as follows effective at 0901 UTC, July 26, 2012.</P>
        <REGTEXT PART="95" TITLE="14">
          <AMDPAR>1. The authority citation for part 95 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40103, 40106, 40113, 40114, 40120, 44502, 44514, 44719, 44721.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="95" TITLE="14">
          <AMDPAR>2. Part 95 is amended to read as follows:</AMDPAR>
          <GPOTABLE CDEF="s100,r100,12,12" COLS="4" OPTS="L2,i1">
            <TTITLE>Revisions to IFR Altitudes &amp; Changeover Points</TTITLE>
            <TDESC>[Amendment 502 effective date September 20, 2012]</TDESC>
            <BOXHD>
              <CHED H="1">From</CHED>
              <CHED H="1">To</CHED>
              <CHED H="1">MEA</CHED>
              <CHED H="1">MAA</CHED>
            </BOXHD>
            <ROW EXPSTB="03">
              <ENT I="21">
                <E T="02">§ 95.3000Low Altitude RNAV Routes</E>
              </ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="21">
                <E T="02">§ 95.3310RNAV Route T310 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Tucson, AZ VORTAC</ENT>
              <ENT>**Sulli, AZ FIX</ENT>
              <ENT>*8000</ENT>
              <ENT>17500</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">**9200—MCA Sulli, AZ FIX, E BND</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*7200—MOCA</ENT>
            </ROW>
          </GPOTABLE>
          <GPOTABLE CDEF="s100,r100,12" COLS="3" OPTS="L2(0,,),ns,tp0,i1">
            <TTITLE/>
            <BOXHD>
              <CHED H="1">From</CHED>
              <CHED H="1">To</CHED>
              <CHED H="1">MEA</CHED>
            </BOXHD>
            <ROW EXPSTB="02">
              <ENT I="21">
                <E T="02">§ 95.6001Victor Routes-U.S.</E>
              </ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6001VOR Federal Airway V1 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Hartford, CT VOR/DME</ENT>
              <ENT>Dvany, CT FIX</ENT>
              <ENT>3000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Dvany, CT FIX</ENT>
              <ENT>Graym, MA FIX</ENT>
              <ENT>*4000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2500—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <PRTPAGE P="50910"/>
              <ENT I="21">
                <E T="02">§ 95.6003VOR Federal Airway V3 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Palm Beach, FL VORTAC</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>*3000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2100—MOCA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>Melbourne, FL VOR/DME</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6004VOR Federal Airway V4 Is Amended to Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Louisville, KY VORTAC</ENT>
              <ENT>Lexington, KY VORTAC</ENT>
              <ENT>2800</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6010VOR Federal Airway V10 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Emporia, KS VORTAC</ENT>
              <ENT>Wetzl, KS FIX</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2600—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*3000—GNSS MEA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Wetzl, KS FIX</ENT>
              <ENT>Napoleon, MO VORTAC</ENT>
              <ENT>3100</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6012VOR Federal Airway V12 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Emporia, KS VORTAC</ENT>
              <ENT>Wetzl, KS FIX</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2600—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*3000—GNSS MEA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Wetzl, KS FIX</ENT>
              <ENT>Napoleon, MO VORTAC</ENT>
              <ENT>3100</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6026VOR Federal Airway V26 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Cherokee, WY VOR/DME</ENT>
              <ENT>Alcos, WY FIX</ENT>
              <ENT>11700</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Alcos, WY FIX</ENT>
              <ENT>Muddy Mountain, WY VOR/DME</ENT>
              <ENT>*10000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*9400—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6027VOR Federal Airway V27 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Fortuna, CA VORTAC</ENT>
              <ENT>Crescent City, CA VORTAC</ENT>
              <ENT>3000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6035VOR Federal Airway V35 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Holston Mountain, TN VORTAC</ENT>
              <ENT>Glade Spring, VA VOR/DME</ENT>
              <ENT>6700</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6037VOR Federal Airway V37 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Clarksburg, WV VOR/DME</ENT>
              <ENT>Tedds, WV FIX</ENT>
              <ENT>*4000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*3400—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Tedds, WV FIX</ENT>
              <ENT>Cetpu, PA FIX</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*3400—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*4000—GNSS MEA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Cetpu, PA FIX</ENT>
              <ENT>Ellwood City, PA VORTAC</ENT>
              <ENT>*4000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*3200—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6051VOR Federal Airway V51 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">*Sheds, FL FIX</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>**2000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*3000—MRA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">**1400—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>Ovido, FL FIX</ENT>
              <ENT>*4000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2800—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6053VOR Federal Airway V53 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Lexington, KY VORTAC</ENT>
              <ENT>Louisville, KY VORTAC</ENT>
              <ENT>2800</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6054VOR Federal Airway V54 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Fayetteville, NC VOR/DME</ENT>
              <ENT>Kinston, NC VORTAC</ENT>
              <ENT>*2000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*1900—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6066VOR Federal Airway V66 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Anima, NM FIX</ENT>
              <ENT>Darce, NM FIX</ENT>
              <ENT>9000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6068VOR Federal Airway V68 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Chisum, NM VORTAC</ENT>
              <ENT>Hager, NM FIX</ENT>
              <ENT>6000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6070VOR Federal Airway V70 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Wilmington, NC VORTAC</ENT>
              <ENT>Beula, NC FIX</ENT>
              <ENT>*8000</ENT>
            </ROW>
            <ROW>
              <PRTPAGE P="50911"/>
              <ENT I="03" O="xl">*1600—MOCA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2000—GNSS MEA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6094VOR Federal Airway V94 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Blythe, CA VORTAC</ENT>
              <ENT>*Vicko, AZ FIX</ENT>
              <ENT>6000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*9000—MRA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6114VOR Federal Airway V114 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Gregg County, TX VORTAC</ENT>
              <ENT>Carth, TX FIX</ENT>
              <ENT>*2300</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1900—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Covex, LA FIX</ENT>
              <ENT>Nuboy, LA FIX</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1900—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Nuboy, LA FIX</ENT>
              <ENT O="xl">Alexandria, LA VORTAC</ENT>
            </ROW>
            <ROW>
              <ENT I="22"/>
              <ENT>W BND</ENT>
              <ENT>5000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="22"/>
              <ENT>E BND</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6121VOR Federal Airway V121 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Roseburg, OR VOR/DME</ENT>
              <ENT>North Bend, OR VORTAC</ENT>
              <ENT>5300</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6133VOR Federal Airway V133 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">*Traverse City, MI VORTAC</ENT>
              <ENT>Escanaba, MI VOR/DME</ENT>
              <ENT>5000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">*Traverse City R-301—R-002</ENT>
              <ENT>Unusable BYD 10 NM BLO</ENT>
              <ENT>5000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6144VOR Federal Airway V144 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Fort Wayne, IN VORTAC</ENT>
              <ENT>Buzzi, OH FIX</ENT>
              <ENT>*6000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*3000—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6152VOR Federal Airway V152 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Kizer, FL FIX</ENT>
              <ENT O="xl">Ormond Beach, FL VORTAC</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2800—MOCA</ENT>
              <ENT>NE BND</ENT>
              <ENT>*3600</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="22"/>
              <ENT>SW BND</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6157VOR Federal Airway V157 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Fayetteville, NC VOR/DME</ENT>
              <ENT>Kinston, NC VORTAC</ENT>
              <ENT>*2000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*1900—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6159VOR Federal Airway V159 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Jupem, FL FIX</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>2600</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>*Presk, FL FIX</ENT>
              <ENT>3000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2500—MRA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Walnut Ridge, AR VORTAC</ENT>
              <ENT>Dogwood, MO VORTAC</ENT>
              <ENT>*3400</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*3000—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6184VOR Federal Airway V184 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Atlantic City, NJ VORTAC</ENT>
              <ENT>Panze, NJ FIX</ENT>
              <ENT>2100</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6190VOR Federal Airway V190 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Marion, IL VOR/DME</ENT>
              <ENT>Pocket City, IN VORTAC</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2000—MOCA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2300—GNSS MEA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6193VOR Federal Airway V193 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">White Cloud, MI VOR/DME</ENT>
              <ENT>Traverse City, MI VORTAC</ENT>
              <ENT>*4000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">*Traverse City R-188—R-207</ENT>
              <ENT>Unusable BYD 10 NM BLO</ENT>
              <ENT>4000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6203VOR Federal Airway V203 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Dinny, NY FIX</ENT>
              <ENT>Saranac Lake, NY VOR/DME</ENT>
              <ENT>7000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">**Saranac Lake, NY VOR/DME</ENT>
              <ENT>**Massena, NY VORTAC</ENT>
              <ENT>*10000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*5100—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*6000—GNSS MEA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">**Massena R-159 Unusable, Use Saranac Lake R-339</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <PRTPAGE P="50912"/>
              <ENT I="21">
                <E T="02">§ 95.6213VOR Federal Airway V213 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Wilmington, NC VORTAC</ENT>
              <ENT>Wallo, NC FIX</ENT>
              <ENT>*8000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1600—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*5000—GNSS MEA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Wallo, NC FIX</ENT>
              <ENT O="xl">Josch, NC FIX</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1700—MOCA</ENT>
              <ENT>S BND</ENT>
              <ENT>*8000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2000—GNSS MEA</ENT>
              <ENT>N BND</ENT>
              <ENT>*6000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Josch, NC FIX</ENT>
              <ENT O="xl">Ester, NC FIX</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1700—MOCA</ENT>
              <ENT>S BND</ENT>
              <ENT>*6000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2000—GNSS MEA</ENT>
              <ENT>N BND</ENT>
              <ENT>*3000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6225VOR Federal Airway V225 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Diddy, FL FIX</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6229VOR Federal Airway V229 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Atlantic City, NJ VORTAC</ENT>
              <ENT>Panze, NJ FIX</ENT>
              <ENT>2100</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Hartford, CT VOR/DME</ENT>
              <ENT>Gardner, MA VOR/DME</ENT>
              <ENT>3000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6232VOR Federal Airway V232 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Keating, PA VORTAC</ENT>
              <ENT>Watso, PA FIX</ENT>
              <ENT>4700</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Watso, PA FIX</ENT>
              <ENT>Milton, PA VORTAC</ENT>
              <ENT>*4000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2900—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Milton, PA VORTAC</ENT>
              <ENT>Solberg, NJ VOR/DME</ENT>
              <ENT>4000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Solberg, NJ VOR/DME</ENT>
              <ENT>Tykes, NJ FIX</ENT>
              <ENT>2300</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Tykes, NJ FIX</ENT>
              <ENT>Colts Neck, NJ VOR/DME</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6265VOR Federal Airway V265 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Jamestown, NY VOR/DME</ENT>
              <ENT>*Dunkirk, NY VORTAC</ENT>
              <ENT>4000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*3400—MCA Dunkirk, NY VORTAC, S BND</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Dunkirk, NY VORTAC</ENT>
              <ENT>U.S. Canadian Border</ENT>
              <ENT>*3400</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2000—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6285VOR Federal Airway V285 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Manistee, MI VOR/DME</ENT>
              <ENT>*Traverse City, MI VORTAC</ENT>
              <ENT>*2800</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">*Traverse City R-228—R260</ENT>
              <ENT>Unusable BYD 10 NM BLO</ENT>
              <ENT>4000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6295VOR Federal Airway V295 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Stoop, FL FIX</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>Orlando, FL VORTAC</ENT>
              <ENT>*2600</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*1600—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6320VOR Federal Airway V320 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">*Traverse City, MI VORTAC</ENT>
              <ENT>Mount Pleasant, MI VOR/DME</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">*Traverse City R-077—R-187</ENT>
              <ENT>Unusable BYD 10 NM BLO</ENT>
              <ENT>5000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6370VOR Federal Airway V370 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Bands, CA FIX</ENT>
              <ENT>*Palm Springs, CA VORTAC</ENT>
              <ENT>13000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*11800—MCA Palm Springs, CA VORTAC, W BND</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*6200—MCA Palm Springs, CA VORTAC, N BND</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6402VOR Federal Airway V402 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Tucumcari, NM VORTAC</ENT>
              <ENT>Moser, TX FIX</ENT>
              <ENT>6300</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Moser, TX FIX</ENT>
              <ENT>Panhandle, TX VORTAC</ENT>
              <ENT>*6000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*5500—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6418VOR Federal Airway V418 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Salem, MI VORTAC</ENT>
              <ENT>Bewel, OH FIX</ENT>
              <ENT>#*4000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2700—MOCA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">#For That Airspace Over U.S. Territory.</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6420VOR Federal Airway V420 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Green Bay, WI VORTAC</ENT>
              <ENT>*Traverse City, MI VORTAC</ENT>
              <ENT>3500</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">*Traverse City R-261—R-300</ENT>
              <ENT>Unusable BYD 10 NM BLO</ENT>
              <ENT>3500</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <PRTPAGE P="50913"/>
              <ENT I="21">
                <E T="02">§ 95.6429VOR Federal Airway V429 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Marion, IL VOR/DME</ENT>
              <ENT>Bible Grove, IL VORTAC</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2100—MOCA</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2300—GNSS MEA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6437VOR Federal Airway V437 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Melbourne, FL VOR/DME</ENT>
              <ENT>Awiny, FL FIX</ENT>
              <ENT>*3000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1600—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Awiny, FL FIX</ENT>
              <ENT O="xl">Ovido, FL FIX</ENT>
            </ROW>
            <ROW>
              <ENT I="22"/>
              <ENT>NW BND</ENT>
              <ENT>5000</ENT>
            </ROW>
            <ROW>
              <ENT I="22"/>
              <ENT>SE BND</ENT>
              <ENT>3000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Ovido, FL FIX</ENT>
              <ENT>Kizer, FL FIX</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*2800—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Kizer, FL FIX</ENT>
              <ENT O="xl">Ormond Beach, FL VORTAC</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2800—MOCA</ENT>
              <ENT>SW BND</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="22"/>
              <ENT>NE BND</ENT>
              <ENT>*3600</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6508VOR Federal Airway V508 Is Amended To Delete</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Rugbb, KS FIX</ENT>
              <ENT>Johnson County, KS VOR/DME</ENT>
              <ENT>2600</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6537VOR Federal Airway V537 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Stoop, FL FIX</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>*Presk, FL FIX</ENT>
              <ENT>3000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*2500—MRA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6566VOR Federal Airway V566 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Knelt, LA FIX</ENT>
              <ENT>Covex, LA FIX</ENT>
              <ENT>*3500</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1800—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Covex, LA FIX</ENT>
              <ENT>Nuboy, LA FIX</ENT>
              <ENT>*5000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*1900—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Nuboy, LA FIX</ENT>
              <ENT O="xl">Alexandria, LA VORTAC</ENT>
            </ROW>
            <ROW>
              <ENT I="22"/>
              <ENT>W BND</ENT>
              <ENT>5000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="22"/>
              <ENT>E BND</ENT>
              <ENT>2000</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6589VOR Federal Airway V589 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Medicine Bow, WY VOR/DME</ENT>
              <ENT>Alcos, WY FIX</ENT>
              <ENT>10100</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Alcos, WY FIX</ENT>
              <ENT>Muddy Mountain, WY VOR/DME</ENT>
              <ENT>*10000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="03" O="xl">*9400—MOCA</ENT>
            </ROW>
            <ROW EXPSTB="02" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.6438Alaska VOR Federal Airway V438 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Big Lake, AK VORTAC</ENT>
              <ENT>*Sures, AK FIX</ENT>
              <ENT>7500</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*10000—MRA</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Sures, AK FIX</ENT>
              <ENT>Liber, AK FIX</ENT>
              <ENT>#**10000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">**8900—MOCA</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">#MEA is established with a gap in navigation signal coverage.</ENT>
            </ROW>
          </GPOTABLE>
          <GPOTABLE CDEF="s100,r100,12,12" COLS="4" OPTS="L2(0,,),ns,tp0,i1">
            <TTITLE/>
            <BOXHD>
              <CHED H="1">From</CHED>
              <CHED H="1">To</CHED>
              <CHED H="1">MEA</CHED>
              <CHED H="1">MAA</CHED>
            </BOXHD>
            <ROW EXPSTB="03">
              <ENT I="21">
                <E T="02">§ 95.7001Jet Routes</E>
              </ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="21">
                <E T="02">§ 95.7045Jet Route J45 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Virginia Key, FL VOR/DME</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>18000</ENT>
              <ENT>45000</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>Ormond Beach, FL VORTAC</ENT>
              <ENT>18000</ENT>
              <ENT>45000</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.7075Jet Route J75 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">*Carmel, NY VOR/DME</ENT>
              <ENT>*Nelie, CT FIX</ENT>
              <ENT>18000</ENT>
              <ENT>45000</ENT>
            </ROW>
            <ROW>
              <ENT I="03" O="xl">*Radar required between Carmel and Nelie</ENT>
            </ROW>
            <ROW RUL="s">
              <ENT I="01">Nelie, CT FIX</ENT>
              <ENT>Boston, MA VOR/DME</ENT>
              <ENT>18000</ENT>
              <ENT>45000</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">§ 95.7079Jet Route J79 Is Amended To Read in Part</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Palm Beach, FL VORTAC</ENT>
              <ENT>Treasure, FL VORTAC</ENT>
              <ENT>18000</ENT>
              <ENT>45000</ENT>
            </ROW>
            <ROW>
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>Ormond Beach, FL VORTAC</ENT>
              <ENT>18000</ENT>
              <ENT>45000</ENT>
            </ROW>
          </GPOTABLE>
          <PRTPAGE P="50914"/>
          <GPOTABLE CDEF="s100,r100,12,12" COLS="4" OPTS="L2(0,,),ns,tp0,i1">
            <TTITLE/>
            <BOXHD>
              <CHED H="1">Airway Segment</CHED>
              <CHED H="2">From</CHED>
              <CHED H="2">To</CHED>
              <CHED H="1">Changeover Points</CHED>
              <CHED H="2">Distance</CHED>
              <CHED H="2">From</CHED>
            </BOXHD>
            <ROW EXPSTB="03">
              <ENT I="21">
                <E T="02">§ 95.8003VOR Federal Airway Changeover Points</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V10 Is Amended To Delete Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Emporia, KS VORTAC</ENT>
              <ENT>Johnson County, KS VOR/DME</ENT>
              <ENT>49</ENT>
              <ENT>Emporia</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V12 Is Amended To Delete Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Emporia, KS VORTAC</ENT>
              <ENT>Johnson County, KS VOR/DME</ENT>
              <ENT>49</ENT>
              <ENT>Emporia</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V159 Is Amended To Delete Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Treasure, FL VORTAC</ENT>
              <ENT>Orlando, FL VORTAC</ENT>
              <ENT>32</ENT>
              <ENT>Treasure</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V203 Is Amended To Delete Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Saranac Lake, NY VOR/DME</ENT>
              <ENT>Massena, NY VORTAC</ENT>
              <ENT>11</ENT>
              <ENT>Saranac Lake</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V26 Is Amended To Add Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Montrose, CO VOR/DME</ENT>
              <ENT>Grand Junction, CO VOR/DME</ENT>
              <ENT>23</ENT>
              <ENT>Montrose</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V27 Is Amended To Delete Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00" RUL="s">
              <ENT I="01">Fortuna, CA VORTAC</ENT>
              <ENT>Crescent City, CA VORTAC</ENT>
              <ENT>30</ENT>
              <ENT>Fortuna</ENT>
            </ROW>
            <ROW EXPSTB="03" RUL="s">
              <ENT I="21">
                <E T="02">V285 Is Amended To Add Changeover Point</E>
              </ENT>
            </ROW>
            <ROW EXPSTB="00">
              <ENT I="01">Manistee, MI VOR/DME</ENT>
              <ENT>Traverse City, MI VORTAC</ENT>
              <ENT>29</ENT>
              <ENT>Manistee</ENT>
            </ROW>
          </GPOTABLE>
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20812 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </RULE>
    <RULE>
      <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>Final rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Coast Guard is revising the existing Cottonwood Island anchorage and establishing a new designated anchorage. The change is necessary to ensure that there are sufficient anchorage grounds on the Columbia River.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective September 24, 2012.</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-2011-0348 and are available online by going to<E T="03">http://www.regulations.gov,</E>type the docket number in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email ENS Ian McPhillips, Waterways Management Division, Coast Guard MSU Portland; telephone 503-240-9319, email<E T="03">msupdxwwm@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">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Regulatory History and Information</HD>
        <P>On June 13, 2011, the Coast Guard published an NPRM proposing to increase the size of the Cottonwood Island Anchorage on the Columbia River (76 FR 34197). On May 23, 2012, the Coast Guard published a Supplemental NPRM revising that proposal in response to public comments (77 FR 30440). During the 30-day comment period on the Supplemental NPRM, the Coast Guard received eight comments on the proposed action. Seven of the comments were from various maritime stakeholders in the Lower Columbia River Basin and one of the comments was from the Mayor of the City of Prescott.</P>
        <HD SOURCE="HD1">B. Basis and Purpose</HD>
        <P>The Secretary of Homeland Security has delegated to the Coast Guard the authority to establish and regulate anchorage grounds in accordance with 33 U.S.C. 471, 1221 through 1236, 2030, 2035, 2071; 33 CFR 1.05-1; and Department of Homeland Security Delegation No. 0170.1. As currently established, the Coast Guard Captain of the Port Columbia River believes the size of the Cottonwood Island Anchorage is insufficient 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 increases the size of the current Cottonwood Island Anchorage and creates a new anchorage on the Columbia River.</P>
        <HD SOURCE="HD1">C. Discussion of Comments, Changes, and the Final Rule</HD>

        <P>The Coast Guard received eight comments during the 30-day comment period on the Supplemental NPRM.<PRTPAGE P="50915"/>Seven of the comments received were from maritime industry stakeholders in support of the action. The eighth comment, submitted on behalf of the City of Prescott, stated that the city was satisfied with the regulatory action. That comment also referenced emergency anchoring situations in areas outside the anchorages established by this rule. This rule does not affect waters not designated as anchorages and, consequently, the ability of vessels to anchor in these areas outside the channel remains as it was before this rulemaking. Likewise, the Captain of the Port continues to possess the same authority to direct vessels to anchor under 33 CFR 160.111(c). However, the Coast Guard believes that the City's concerns over noise, vessel exhaust, and visual impact in emergency anchoring situations will be addressed by anchoring standards of care being developed in the Lower Columbia River Region Harbor Safety Plan and applied by the Columbia River Pilots under 33 CFR 110.228(b)(3).</P>
        <P>After considering all comments submitted, the Coast Guard made no changes to the rule proposed in the Supplemental NPRM.</P>
        <HD SOURCE="HD1">D. Regulatory Analyses</HD>
        <P>The Coast Guard developed this rule after considering numerous statutes and executive orders related to rulemaking. Below, we summarize our analyses based on these statutes or executive orders.</P>
        <HD SOURCE="HD2">1. 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, 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 that Order. Modifying the existing anchorage and establishing a new anchorage area will not have any significant costs or impacts on maritime activities.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>
        <P>The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612, as amended) requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. 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. The Coast Guard received no comments from the Small Business Administration on this rule. 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. This rule may affect the following entities, some of which might be small entities: The owners or operators of vessels operating in and around the anchorage areas established by this rule and the City of Prescott. This rule will not have a significant economic impact on vessel owners and operators because the anchorage area is outside the channel and will not, therefore, affect vessel traffic patterns. This rule will not have a significant economic impact on the City of Prescott because the anchorages established by the rule are upriver and downriver of the city limits and because vessels anchoring at the anchorage will have little or no economic activity with the City of Prescott or its residents.</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 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="HD2">4. 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="HD2">5. 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="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<E T="02">FOR FURTHER INFORMATION CONTACT</E>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 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="HD2">8. Taking of Private Property</HD>
        <P>This rule will 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 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</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.</P>
        <HD SOURCE="HD2">11. 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="HD2">12. Energy Effects</HD>

        <P>We have analyzed this rule under Executive Order 13211, Actions<PRTPAGE P="50916"/>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">13. 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="HD2">14. 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)(f), of the Instruction. This rule involves the extension of one anchorage and the establishment of another. An environmental analysis checklist and a categorical exclusion determination are available in the docket where indicated under<E T="02">ADDRESSES</E>.</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 amends 33 CFR part 110 as follows:</P>
        <REGTEXT PART="110" TITLE="33">
          <PART>
            <HD SOURCE="HED">PART 110—ANCHORAGE REGULATIONS</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 110 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>33 U.S.C. 471, 1221 through 1236, 2030, 2035, 2071; 33 CFR 1.05-1; Department of Homeland Security Delegation No. 0170.1.</P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="110" TITLE="33">
          <AMDPAR>2. Amend § 110.228 by revising paragraph (a)(10) and adding paragraph (a)(11) to read as follows:</AMDPAR>
          <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="L2,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Latitude</CHED>
                <CHED H="1">Longitude</CHED>
              </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>
                <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="L2,tp0,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Latitude</CHED>
                <CHED H="1">Longitude</CHED>
              </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: August 1, 2012.</DATED>
            <NAME>K.A. Taylor,</NAME>
            <TITLE>Admiral, U.S. Coast Guard, Commander, Thirteenth Coast Guard District.</TITLE>
          </SIG>
        </REGTEXT>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20345 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0767]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone; Boston Harbor's Rock Removal Project, Boston Inner Harbor, Boston, MA</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 Coast Guard is establishing a temporary safety zone within Sector Boston's Captain of the Port (COTP) Zone for the drilling, blasting, and dredging operation on the navigable waters of Boston Inner Harbor, in the main ship channel near Castle Island. This temporary safety zone is necessary to enhance navigation, vessel safety, marine environmental protection, and provide for the safety of life on the navigable waters during the drilling, blasting and dredging operations in support of the U.S. Army Corps of Engineers rock removal project. Entering into, transiting through, mooring or anchoring within this safety zone is prohibited unless authorized by the COTP or the designated on-scene representative.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective in the CFR on August 23, 2012, until September 30, 2012, and will be enforced daily from 5 a.m. to 8 p.m. This rule is effective with actual notice for purposes of enforcement beginning on August 13, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble are part of docket USCG-2012-0767. To view 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 in the “SEARCH” Box and click “SEARCH.” Click on Open Docket Folder on the line associated with the 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this temporary final rule, call or email Mr. Mark Cutter, Coast Guard Sector Boston Waterways Management Division, telephone 617-223-4000, email<E T="03">Mark.E.Cutter@uscg.mil.</E>If you have<PRTPAGE P="50917"/>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">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
          <FP SOURCE="FP-1">COTPCaptain of the Port</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Regulatory History and 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.”</P>
        <P>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 because critical information regarding the scope of the event was not received from the U.S. Army Corps of Engineers until July 15, 2012, providing insufficient time for the Coast Guard to solicit public comments before the start date of the project. The U.S. Army Corps of Engineers also discussed the rock removal project at the Boston's Port Operators Group monthly meeting on July 15, 2012. The Coast Guard hosted a meeting on August 2, 2012 inviting stakeholders from the maritime industry in Boston Harbor to discuss and mitigate any impacts this project will have on maritime community. The feedback from the meeting was that this safety zone will have minimum impact on local mariners based on the location and the fact that the majority of boating traffic will be able to transit around the safety zone and that the vessels involved in the rock removal operations will move as needed for deep draft vessels. A delay or cancellation of the project in order to accommodate a notice and comment period would be contrary to the public interest because immediate action is necessary to ensure the safety of the personnel involved in the rock removal project and any public vessels in the vicinity of the drilling, dredging and blasting operations being conducted. For the safety concerns noted, it is in the public interest to have these regulations in effect during the rock removal project.</P>

        <P>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>. Any delay in the effective date of this rule would expose personnel involved in the rock removal project and any public vessels in the vicinity to hazards associated with the drilling, dredging and blasting operations.</P>
        <HD SOURCE="HD1">B. Basis and Purpose</HD>
        <P>The legal basis for the temporary rule is 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; and Department of Homeland Security Delegation No. 0170.1, which collectively authorize the Coast Guard to define safety zones.</P>
        <P>The safety zone is being issued to provide for the safety of life on the navigable waters during the drilling, blasting and dredging operations in support of the U.S. Army Corps of Engineers rock removal project.</P>
        <HD SOURCE="HD1">C. Discussion of Final Rule</HD>
        <P>Starting August 13, 2012, daily from 5 a.m. to 8 p.m. until September 30, 2012, the contractor Burnham Associates Inc. will be conducting drilling, blasting and dredging operations in support of the U.S. Army Corps of Engineers Boston Harbors main ship channel rock removal project.</P>
        <P>The COTP Boston has determined that hazards associated with the drilling, dredging and blasting operations pose a significant risk to safety of life on navigable waters. Establishing a safety zone around the vessel conducting the drilling, blasting, and dredging will help ensure the safety of the personnel involved in the rock removal project and any public vessels in the vicinity, and help minimize the associated risks with this project. This safety zone will establish a 100-yard radius around the vessel conducting the drilling, blasting and dredging operations in various locations in Boston Harbor's main ship channel near Castle Island. To ensure public safety, the safety zone will be enforced only while the vessel is on scene conducting operations involved in the rock removal project in Boston Harbor's main ship near Castle Island.</P>
        <HD SOURCE="HD1">D. 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="HD2">1. 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, 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) Executive Order 12866 or under section 1 of Executive Order 13563. The Office of Management and Budget has not reviewed it under that Order.</P>
        <P>The Coast Guard has determined that this rule is not a significant regulatory action for the following reasons: The Coast Guard expects minimal adverse impact to mariners from the activation of the zone; vessels have sufficient room to transit around the safety zone; the vessel conducting the operations will move out of the channel for deep draft vessels that need to pass through that area and vessels may enter or pass through the affected waterway with the permission of the Captain of the Port (COTP) or the COTP's designated on-scene representative; and notification of the safety zone will be made to mariners through the local Notice to Mariners, Broadcast Notice to Mariners in advance of the event.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>
        <P>The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as amended requires federal agencies to consider the potential impact of regulations on small entitles during rulemaking. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule would not have a significant economic impact on a substantial number of small entities for the following reasons: vessels have sufficient room to transit around the safety zone; the vessel conducting the operations will move out of the channel for deep draft vessels that need to pass through that area and vessels may enter or pass through the affected waterway with the permission of the Captain of the Port (COTP) or the COTP's designated on-scene representative; notification of the safety zone will be made to mariners through the Local Notice to Mariners, Broadcast Notice to Mariners well in advance of the event.</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 rule. If the 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.<PRTPAGE P="50918"/>
        </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="HD2">4. 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="HD2">5. Federalism</HD>
        <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on 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 rule under that Order and determined that it 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<E T="02">FOR FURTHER INFORMATION CONTACT</E>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 rule will not result in such 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 rule will 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 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</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.</P>
        <HD SOURCE="HD2">11. 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="HD2">12. Energy Effects</HD>
        <P>This action is not a “Significant energy action” under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use.</P>
        <HD SOURCE="HD2">13. Technical Standards</HD>
        <P>This 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 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 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 rule involves the establishment of a safety zone. This rule is categorically excluded from further review under, paragraph 34(g) of figure 2-1 of the Commandant Instruction. An environmental analysis checklist 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 rule.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 33 CFR Part 165</HD>
          <P>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(g), 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>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Add § 165.T01-0767 to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 165.T01-0767</SECTNO>
            <SUBJECT>Safety Zone; Boston Harbor's Rock Removal Project, Boston Inner Harbor, Boston, MA.</SUBJECT>
            <P>(a)<E T="03">General.</E>A temporary safety zone is established for the Boston Harbor's Rock Removal Project as follows:</P>
            <P>(1)<E T="03">Location.</E>All navigable waters from surface to bottom, within a 100-yard radius around the vessel or vessels conducting drilling, blasting, dredging, and other related operations related to rock removal in Boston's Inner Harbor near Castle Island.</P>
            <P>(2)<E T="03">Definitions.</E>For the purposes of this section, “Designated on-scene representative” is any Coast Guard commissioned, warrant, or petty officer who has been designated by the Captain of the Port Boston (COTP) to act on the COTP's behalf. The designated representative may be on an Official Patrol Vessel. An “Official Patrol Vessel” may consist of any Coast Guard, Coast Guard Auxiliary, state, or local law enforcement vessels assigned or approved by the COTP or the designated on-scene representative may be on shore and will communicate with vessels via VHF-FM radio or loudhailer. In addition, members of the Coast Guard Auxiliary may be present to inform vessel operators of this regulation.</P>
            <P>(3)<E T="03">Enforcement period.</E>This rule will be effective from August 13, 2012 until September 30, 2012 and will be enforced daily from 5 a.m. to 8 p.m.</P>
            <P>(b)<E T="03">Regulations.</E>(1) The general regulations contained in 33 CFR 165.23, as well as the following regulations, apply.</P>

            <P>(2) No vessels, except for participating or public vessels, will be allowed to enter into, transit through, or anchor within the safety zone without the<PRTPAGE P="50919"/>permission of the COTP or the designated on-scene representative.</P>
            <P>(3) All persons and vessels shall comply with the instructions of the COTP or the designated on-scene representative. Upon being hailed by a U.S. Coast Guard vessel by siren, radio, flashing light, or other means, the operator of a vessel shall proceed as directed.</P>
            <P>(4) Vessel operators desiring to enter or operate within the regulated area shall contact the COTP or the designated on-scene representative via VHF channel 16 or 617-223-3201 (Sector Boston command Center) to obtain permission.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: August 13, 2012.</DATED>
          <NAME>J.C. O'Connor, III,</NAME>
          <TITLE>Captain, U.S. Coast Guard,</TITLE>
          <P>Captain of the Port Boston.</P>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20828 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0661]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone: Wedding Reception Fireworks at Pier 24, San Francisco, CA</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 Coast Guard is establishing a temporary safety zone in the navigable waters of the San Francisco Bay near Pier 14 in San Francisco, CA in support of the Wedding Reception Fireworks at Pier 24 on August 24, 2012. This safety zone is established to ensure the safety of mariners and spectators from the dangers associated with the pyrotechnics. Unauthorized persons or vessels are prohibited from entering into, transiting through, or remaining in the safety zone without permission of the Captain of the Port or their designated representative.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective from 9 a.m. through 9:30 p.m. on August 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble are part of docket USCG-2012-0661. To view 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 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this temporary rule, call or email Ensign William Hawn, U.S. Coast Guard Sector San Francisco; telephone (415) 399-7442 or email at<E T="03">D11-PF-MarineEvents@uscg.mil.</E>If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone (202) 366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Regulatory History and Information</HD>
        <P>The Coast Guard is issuing this 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.”</P>
        <P>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 because publishing an NPRM would be impracticable. The Coast Guard received notification of the event on June 29, 2012 and the event would occur before an NPRM and response to public comment could be completed. Because of the dangers posed by the pyrotechnics used in this fireworks display, the safety zone is necessary to provide for the safety of event participants, spectators, spectator craft, and other vessels transiting the event area.</P>

        <P>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>. For the reasons stated above, delaying the effective date would be impracticable.</P>
        <HD SOURCE="HD1">B. Basis and Purpose</HD>

        <P>The legal basis for the temporary rule is the Ports and Waterways Safety Act which authorizes the Coast Guard to establish safety zones (33 U.S.C sections 1221<E T="03">et seq.</E>).</P>
        <P>Stanlee R. Gatti Designs will sponsor the Wedding Reception Fireworks at Pier 24 on August 24, 2012, in the navigable waters of the San Francisco Bay midway between Pier 14 and the Bay Bridge in San Francisco, CA. From 9 a.m. until 2 p.m. on August 24, 2012 the fireworks barge will be loaded off of Pier 50 in San Francisco, CA at position 37°46′28″ N, 122°23′06″ W (NAD 83). From 8 p.m. to 8:20 p.m. on August 24, 2012 the loaded barge will transit from Pier 50 to the launch site midway between Pier 14 and the Bay Bridge at position 37°47′35″ N, 122°23′13″ W (NAD 83). The Coast Guard has granted the event sponsor a marine event permit for the fireworks display. The fireworks display is meant for entertainment purposes and a safety zone is necessary to establish a temporary restricted area on the waters surrounding the fireworks display. A restricted area around the launch site is necessary to protect spectators, vessels, and other property from the hazards associated with the pyrotechnics.</P>
        <HD SOURCE="HD1">C. Discussion of the Final Rule</HD>
        <P>The Coast Guard will enforce a safety zone in navigable waters around and under the fireworks barge within a radius of 100 feet during the loading, transit, and arrival of the fireworks barge to the display location and until the start of the fireworks display. Upon the commencement of the 8 minute fireworks display, scheduled to take place from 9:15 p.m. to 9:23 p.m. on August 24, 2012, the safety zone will encompass the navigable waters around and under the fireworks launch site within a radius 560 feet at position 37°47′35″ N, 122°23′13″ W (NAD 83) for the Wedding Reception Fireworks at Pier 24 in San Francisco, CA. At the conclusion of the fireworks display the safety zone shall terminate.</P>
        <P>The effect of the temporary safety zone will be to restrict navigation in the vicinity of the fireworks launch site during the fireworks display. Except for persons or vessels authorized by the Coast Guard Patrol Commander, no person or vessel may enter or remain in the restricted area. These regulations are needed to keep spectators and vessels away from the immediate vicinity of the fireworks barge to ensure the safety of participants, spectators, and transiting vessels.</P>
        <HD SOURCE="HD1">D. Regulatory Analyses</HD>

        <P>We developed this rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses<PRTPAGE P="50920"/>based on 13 of these statutes and executive orders.</P>
        <HD SOURCE="HD2">1. 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, 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 that Executive Order 12866 or under section 1 of Executive Order 13563. The Office of Management and Budget has not reviewed it under those Orders.</P>
        <P>We expect the economic impact of this rule does not rise to the level of necessitating a full Regulatory Evaluation. The safety zone is limited in duration, and is limited to a narrowly tailored geographic area. In addition, although this rule restricts access to the waters encompassed by the safety zone, the effect of this rule will not be significant because the local waterway users will be notified via public Broadcast Notice to Mariners to ensure the safety zone will result in minimum impact. The entities most likely to be affected are waterfront facilities, commercial vessels, and pleasure craft engaged in recreational activities.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>
        <P>The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as amended, requires federal agencies to consider the potential impact of regulations on small entities during rulemaking.</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. This rule may affect the following entities, some of which may be small entities: Owners and operators of waterfront facilities, commercial vessels, and pleasure craft engaged in recreational activities and sightseeing, if these facilities or vessels are in the vicinity of the safety zone at times when this zone is being enforced. This rule will not have a significant economic impact on a substantial number of small entities for the following reasons: (i) This rule will encompass only a small portion of the waterway for a limited period of time, and (ii) the maritime public will be advised in advance of this safety zone via Broadcast Notice to Mariners.</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 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.</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="HD2">4. 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="HD2">5. 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="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<E T="02">FOR FURTHER INFORMATION CONTACT</E>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 rule will 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 rule will 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 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</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.</P>
        <HD SOURCE="HD2">11. 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="HD2">12. Energy Effects</HD>
        <P>This action is not a “significant energy action” under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use.</P>
        <HD SOURCE="HD2">13. Technical Standards</HD>
        <P>This 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 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 that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone of limited size and duration. This<PRTPAGE P="50921"/>rule is categorically excluded from further review under paragraph 34(g) and 35(b) of Figure 2-1 of the Commandant Instruction. An 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 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, and 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. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 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>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Add § 165.T11-511 to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 165.T11-511</SECTNO>
            <SUBJECT>Safety zone; Wedding Reception Fireworks at Pier 24, San Francisco, CA</SUBJECT>
            <P>(a)<E T="03">Location.</E>This temporary safety zone is established for the navigable waters of the San Francisco Bay in San Francisco, California as depicted in National Oceanic and Atmospheric Administration (NOAA) Chart 18650. The temporary safety zone applies to the navigable waters around the fireworks barge within a radius of 100 feet during the loading, transit, and arrival of the pyrotechnics from Pier 50 to the launch site located midway between Pier 14 and the Bay Bridge in position 37°47′35″ N, 122°23′13″ W (NAD 83). From 9:15 p.m. until 9:23 p.m. on August 24, 2012, the temporary safety zone will increase in size to encompass the navigable waters around and under the fireworks barge within a radius of 560 feet.</P>
            <P>(b)<E T="03">Enforcement Period.</E>The zone described in paragraph (a) of this section will be in effect from 9 a.m. until 9:30 p.m. on August 24, 2012. As described above, this zone will be enforced during pyrotechnics loading, barge transit, and the fireworks show. The Captain of the Port San Francisco (COTP) will notify the maritime community of periods during which this zone will be enforced via Broadcast Notice to Mariners in accordance with 33 CFR 165.7.</P>
            <P>(c)<E T="03">Definitions.</E>As used in this section, “<E T="03">designated representative”</E>means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer on a Coast Guard vessel or a Federal, State, or local officer designated by or assisting the COTP in the enforcement of the safety zone.</P>
            <P>(d)<E T="03">Regulations.</E>(1) Under the general regulations in33 CFR Part 165, Subpart C, entry into, transiting or anchoring within this safety zone is prohibited unless authorized by the COTP or a designated representative.</P>
            <P>(2) The safety zone is closed to all vessel traffic, except as may be permitted by the COTP or a designated representative.</P>
            <P>(3) Vessel operators desiring to enter or operate within the safety zone must contact the COTP or a designated representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the COTP or a designated representative. Persons and vessels may request permission to enter the safety zone on VHF-23A or through the 24-hour Command Center at telephone (415) 399-3547.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: July 30, 2012.</DATED>
          <NAME>Cynthia L. Stowe,</NAME>
          <TITLE>Captain, U.S. Coast Guard, Captain of the Port San Francisco.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20338 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0706]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone: Bay Bridge Load Transfer Safety Zone, San Francisco Bay, San Francisco, CA</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 Coast Guard is establishing a temporary safety zone in the navigable waters of the San Francisco Bay near Yerba Buena Island, CA in support of the Bay Bridge Load Transfer Safety Zone from August 1, 2012 through October 31, 2012. This safety zone is established to protect mariners transiting the area from the dangers associated with the load transfer operations. Unauthorized persons or vessels are prohibited from entering into, transiting through, or remaining in the safety zone without permission of the Captain of the Port or their designated representative.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective with actual notice from August 1, 2012 through August 23, 2012. This rule is effective in the Code of Federal Regulations from August 23, 2012 until October 31, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble are part of docket USCG-2012-0706. To view 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 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this temporary rule, call or email Ensign William Hawn, U.S. Coast Guard Sector San Francisco; telephone (415) 399-7442 or email at<E T="03">D11-PF-MarineEvents@uscg.mil.</E>If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone (202) 366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Regulatory History and Information</HD>
        <P>The Coast Guard is issuing this 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.”</P>

        <P>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 because publishing an NPRM would be impracticable and contrary to the public interest. The Coast Guard received notification of the load transfer operations on July 17, 2012 and it<PRTPAGE P="50922"/>would be impracticable to publish an NPRM and receive public comment before the commencement of the event. Because of the dangers posed by transferring the load of the Bay Bridge from the temporary suspension arrangement to the permanent suspension arrangement, the safety zone is necessary to provide for the safety of mariners transiting the area.</P>

        <P>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>. For the reasons stated above, delaying the effective date would be impracticable and contrary to the public interest.</P>
        <HD SOURCE="HD1">B. Basis and Purpose</HD>

        <P>The legal basis for the proposed temporary rule is the Ports and Waterways Safety Act which authorizes the Coast Guard to establish safety zones (33 U.S.C. 1221<E T="03">et seq.</E>).</P>
        <P>CALTRANS will sponsor the Bay Bridge Load Transfer Safety Zone on August 1, 2012 through October 31, 2012, in the navigable waters of the San Francisco Bay near Yerba Buena Island, CA. Load Transfer operations are scheduled to take place from 12 a.m. on August 1, 2012 until 11:59 p.m. on October 31, 2012. The load transfer is necessary to facilitate the completion of the Bay Bride construction project. The Bay Bridge is constructed using a temporary suspension system that must be transitioned to a permanent load-bearing system. The safety zone is needed to establish a temporary limited access area on the waters surrounding the load transfer operation. The safety zone is necessary to protect mariners transiting the area from the dangers associated with the load transfer of the Bay Bridge.</P>
        <HD SOURCE="HD1">C. Discussion of the Final Rule</HD>
        <P>The Coast Guard is establishing a safety zone in navigable waters around and under the Bay Bridge within a box connected by the following points: 37°49′06″ N, 122°21′17″ W; 37°49′01″ N, 122°21′12″ W; 37°48′48″ N, 122°21′35″ W; 37°48′53″ N, 122°21′40″ W (NAD 83) during the load transfer. Load transfer operations are scheduled to take place from 12 a.m. on August 1, 2012 until 11:59 p.m. on October 31, 2012.</P>
        <P>The effect of the temporary safety zone will be to restrict navigation in the vicinity of the load transfer operation. Except for persons or vessels authorized by the Coast Guard Patrol Commander, no person or vessel may enter or remain in the restricted area.</P>
        <HD SOURCE="HD1">D. 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 and executive orders.</P>
        <HD SOURCE="HD2">1. 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, 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 that Executive Order 12866 or under section 1 of Executive Order 13563. The Office of Management and Budget has not reviewed it under those Orders.</P>
        <P>We expect the economic impact of this rule does not rise to the level of necessitating a full Regulatory Evaluation. The safety zone is limited in duration, and is limited to a narrowly tailored geographic area. In addition, although this rule restricts access to the waters encompassed by the safety zone, the effect of this rule will not be significant because the local waterway users will be notified via public Broadcast Notice to Mariners to ensure the safety zone will result in minimum impact. The entities most likely to be affected are waterfront facilities, commercial vessels, and pleasure craft engaged in recreational activities.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>
        <P>The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as amended, requires federal agencies to consider the potential impact of regulations on small entities during rulemaking. 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. 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. This rule may affect the following entities, some of which may be small entities: owners and operators of waterfront facilities, commercial vessels, and pleasure craft engaged in recreational activities and sightseeing, if these facilities or vessels are in the vicinity of the safety zone at times when this zone is being enforced. This rule will not have a significant economic impact on a substantial number of small entities for the following reasons: (i) this rule will encompass only a small portion of the waterway for a limited period of time, and (ii) the maritime public will be advised in advance of this safety zone via Broadcast Notice to Mariners.</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 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.</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="HD2">4. 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="HD2">5. 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="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<E T="02">FOR FURTHER INFORMATION CONTACT</E>section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.<PRTPAGE P="50923"/>
        </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 rule will 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 rule will 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 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</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.</P>
        <HD SOURCE="HD2">11. 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="HD2">12. Energy Effects</HD>
        <P>This action is not a “significant energy action” under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use.</P>
        <HD SOURCE="HD2">13. Technical Standards</HD>
        <P>This 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 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 determined 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 rule involves a safety zone of limited size and duration. This rule is categorically excluded from further review under paragraph 34(g) of Figure 2-1 of the Commandant Instruction. An 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 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, and 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. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1(g), 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>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Add § 165.T11-513 to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 165.T11-513</SECTNO>
            <SUBJECT>Safety zone; Bay Bridge Load Transfer Safety Zone, San Francisco Bay, San Francisco, CA.</SUBJECT>
            <P>(a)<E T="03">Location.</E>This temporary safety zone is established in the navigable waters of the San Francisco Bay near Yerba Buena Island, California as depicted in National Oceanic and Atmospheric Administration (NOAA) Chart 18650. The safety zone will encompass the navigable waters of the San Francisco Bay within a box connected by the following points: 37°49′06″ N, 122°21′17″ W; 37°49′01″ N, 122°21′12″ W; 37°48′48″ N, 122°21′35″ W; 37°48′53″ N, 122°21′40″ W (NAD 83).</P>
            <P>(b)<E T="03">Enforcement Period.</E>The zone described in paragraph (a) of this section will be in effect from 12 a.m. on August 1, 2012 until 11:59 p.m. on October 31, 2012. The Captain of the Port San Francisco (COTP) will notify the maritime community of periods during which this zone will be enforced via Broadcast Notice to Mariners in accordance with 33 CFR 165.7.</P>
            <P>(c)<E T="03">Definitions.</E>As used in this section, “designated representative” means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer on a Coast Guard vessel or a Federal, State, or local officer designated by or assisting the COTP in the enforcement of the safety zone.</P>
            <P>(d)<E T="03">Regulations.</E>(1) Under the general regulations in 33 CFR Part 165, Subpart C, entry into, transiting or anchoring within this safety zone is prohibited unless authorized by the COTP or a designated representative.</P>
            <P>(2) The safety zone is closed to all vessel traffic, except as may be permitted by the COTP or a designated representative.</P>
            <P>(3) Vessel operators desiring to enter or operate within the safety zone must contact the COTP or a designated representative to obtain permission to do so. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the COTP or a designated representative. Persons and vessels may request permission to enter the safety zone on VHF-23A or through the 24-hour Command Center at telephone (415) 399-3547.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: July 30, 2012.</DATED>
          <NAME>Cynthia L. Stowe,</NAME>
          <TITLE>Captain, U.S. Coast Guard, Captain of the Port San Francisco.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20337 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0072]</DEPDOC>
        <RIN>RIN 1625-AA00</RIN>
        <SUBJECT>Safety Zone; Jet Express Triathlon, Sandusky Bay, Lake Erie, Lakeside, OH</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 Coast Guard is establishing a temporary safety zone on the waters of Lake Erie in the vicinity of East Harbor State Park, OH, from 8:00 a.m. until 10:00 a.m. on September 9, 2012. This safety zone is intended to restrict vessels from portions of Lake Erie during the Jet Express Triathlon.<PRTPAGE P="50924"/>This safety zone is necessary to protect participants, spectators and vessels from the hazards associated with triathlon event.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This final rule is effective from 8:00 a.m. until 10:00 a.m. on September 9, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble are part of docket USCG-2012-0072. To view documents mentioned in this preamble as being available in the docket, go<E T="03">http://www.regulations.gov,</E>type the docket number 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email LTJG Benjamin Nessia, Response Department, Marine Safety Unit Toledo, Coast Guard; telephone (419) 418-6040, email<E T="03">Benjamin.B.Nessia@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>
        <P/>
        <HD SOURCE="HD1">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Regulatory History and Information</HD>

        <P>On April 26, 2012, we published a notice of proposed rulemaking (NPRM) entitled Safety Zones: Jet Express Triathlon, Sandusky Bay, Lake Erie, Lakeside, OH in the<E T="04">Federal Register</E>(77 FR 24880). We did not receive any comments in response to the proposed rule. No public meeting was requested and none was held.</P>

        <P>Under 5 U.S.C. 553(d)(3), the Coast Guard is issuing this temporary final rule less than 30 days after its publication in the<E T="04">Federal Register</E>. Under 5 U.S.C. 553(d)(3), an agency may issue a rule less than 30 days before its effective date when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Accordingly, the Coast Guard finds that good cause exists for publishing this temporary final rule less than 30 days before its effective date because delaying the effective date of this temporary final rule would prevent its enforcement on the scheduled night of the event and thus, would preclude the Coast Guard from protecting spectators and vessels from the hazards associated with a maritime fireworks display.</P>
        <HD SOURCE="HD1">B. Basis and Purpose</HD>
        <P>The organization Endurance Sports Productions is sponsoring a triathlon: A bike, swim and run event. The swim portion of the event will take place in Lake Erie. The participants will begin by jumping off the ferry boat JET EXPRESS II at the designated position, then swim to the dedicated position on shore. This swim portion will take place on September 9, 2012 at approximately 8:00 a.m. and will last about an hour. The Captain of the Port Detroit has determined that the swim portion of the event will pose certain public hazards. Such hazards include obstructions to the waterway that may cause marine casualties and vessels colliding with swimmers that may cause death or serious bodily harm. With aforementioned hazards in mind, the Captain of the Port Detroit has determined that a temporary safety zone is necessary to ensure the safety of participants and vessels during the practice, the half triathlon, and the triathlon events.</P>
        <HD SOURCE="HD1">C. Discussion of Comments, Changes and the Final Rule</HD>
        <P>As mentioned above, no comments were received during the public comment period, and as such, no changes to the text of the rule were made.</P>
        <P>The temporary safety zone established herein will be effective and enforced from 8:00 a.m. until 10:00 a.m. on September 9, 2012. The safety zone will encompass all waters of Lake Erie within a direct line from 41°33′49″ N, 082°47′8″ W to 41°33′25″ N, 82°48′8″ W and 15 yards on either side of direct line. All geographic coordinates are North American Datum of 1983 (NAD 83).</P>
        <P>All persons and vessels shall comply with the instructions of the Coast Guard Captain of the Port or the designated on scene patrol personnel. Entry into, transiting, or anchoring within the safety zone is prohibited unless authorized by the Captain of the Port Detroit or his designated on scene representative. The Captain of the Port or his designated on scene representative may be contacted via VHF Channel 16.</P>
        <HD SOURCE="HD1">D. 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="HD2">1. 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, 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. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We conclude that this 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 rule will be relatively small and enforced for 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">2. 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. The Coast Guard received no comments from the Small Business Administration on this rule. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule would not have a significant economic impact on a substantial number of small entities.</P>

        <P>This rule would affect the following entities, some of which may be small entities: The owners or operators of vessels intending to transit or anchor in the above portion of the Sandusky Bay of Lake Erie near Lakeside, OH between<PRTPAGE P="50925"/>8:00 a.m. and 10 a.m. on September 9, 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 approximately two hours. Also, in the event that this temporary safety zone affects shipping, commercial vessels may request permission from the Captain of the Port Detroit to transit through the safety zone. Additionally, the Coast Guard will give advanced notice to the public via a local Broadcast Notice to Mariners that the regulation is in effect. Moreover, the COTP will suspend enforcement of the safety zone if the event for which the zone is established ends earlier than the expected time.</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">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 rule so that they can better evaluate its effects on them and participate in the rulemaking. If this rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact ENS Benjamin Nessia, Response Department, Marine Safety Unit Toledo, Coast Guard; telephone (419) 418-6040, email<E T="03">Benjamin.B.Nessia@uscg.mil.</E>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="HD2">4. Collection of Information</HD>
        <P>This 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">5. 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="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<E T="02">FOR FURTHER INTFORMATION CONTACT</E>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 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 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">9. 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="HD2">10. 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 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 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="HD2">12. 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="HD2">13. Technical Standards</HD>
        <P>This 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 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. A final environmental analysis checklist supporting this determination is available in the docket where indicated under<E T="02">ADDRESSES</E>. This rule involves the establishment of a safety zone and thus, paragraph (34)(g) of the Instruction applies. We seek any comments or information that may lead to the discovery of a significant environmental impact from this 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 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. 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>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Add § 165.T09-0072 as follows:</AMDPAR>
          <SECTION>
            <PRTPAGE P="50926"/>
            <SECTNO>§ 165.T09-0072</SECTNO>
            <SUBJECT>Safety Zone; Jet Express Triathlon, Sandusky Bay, Lake Erie, Lakeside, OH.</SUBJECT>
            <P>(a)<E T="03">Location.</E>The following area is a temporary safety zone: all waters of Lake Erie within a direct line from 41°33'49”N, 082°47'8”W to 41°33'25”N, 82°48'8”W and 15 yards on either side of the direct line. All geographic coordinates are North American Datum of 1983 (NAD 83).</P>
            <P>(b)<E T="03">Effective and Enforcement Period.</E>This regulation is effective and will be enforced from 8:00 a.m. until 10:00 a.m. on September 9, 2012.</P>
            <P>(c)<E T="03">Regulations.</E>
            </P>
            <P>(1) In accordance with the general regulations in § 165.23 of this part, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the Captain of the Port Detroit, 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 Detroit or his designated on-scene representative.</P>
            <P>(3) The “on-scene representative” of the Captain of the Port Detroit is any Coast Guard commissioned, warrant, or petty officer who has been designated by the Captain of the Port to act on his behalf. The on-scene representative of the Captain of the Port Detroit will be aboard either a Coast Guard or Coast Guard Auxiliary vessel. The Captain of the Port Detroit or his designated on scene representative may be contacted via VHF Channel 16.</P>
            <P>(4) Vessel operators desiring to enter or operate within the safety zone shall contact the Captain of the Port Detroit or his on-scene representative to obtain permission to do so.</P>
            <P>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 Detroit or his on-scene representative.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: August 6, 2012.</DATED>
          <NAME>J.E. Ogden,</NAME>
          <TITLE>Captain, U.S. Coast Guard, Captain of the Port Detroit.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20190 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0712]</DEPDOC>
        <RIN>RIN 1625-AA87</RIN>
        <SUBJECT>Security Zones; Certain Dangerous Cargo Vessels, Tampa, FL</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 Coast Guard is establishing temporary moving security zones around Certain Dangerous Cargo (CDC) vessels, which are vessels carrying anhydrous ammonia, liquefied propane gas (LPG), and ammonium nitrate. The security zones will start at buoys 3 and 4 in Tampa Bay “F” cut following the vessel to the pier, from pier to pier for berth shifts, and from the pier out to buoys 3 and 4 in Tampa Bay “F” cut. The security zones are to be implemented during the 2012 Republican National Convention from August 25, 2012, through August 31, 2012.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective from 12:01 p.m. on August 25, 2012, through 11:59 a.m. on August 31, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble are part of docket USCG-2012-0712. To view 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 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email Marine Science Technician First Class Nolan L. Ammons, Sector St. Petersburg Prevention Department, Coast Guard; telephone (813) 228-2191, email<E T="03">D07-SMB-Tampa-WWM@uscg.mil.</E>If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone (202) 366-9826.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">CDCCertain Dangerous Cargo</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. Regulatory History and 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 because the Coast Guard did not receive notice of the need for these security zones until July 19, 2012. As a result, the Coast Guard did not have sufficient time to publish an NPRM and to receive public comments prior to implementation of the security zones. Any delay in the effective date of this rule would be contrary to the public interest because immediate action is needed to minimize potential danger to the convention delegates, official parties, dignitaries, the public, and surrounding waterways.</P>

        <P>For the same reason discussed above, 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">B. Basis and Purpose</HD>
        <P>The legal basis for the rule is the Coast Guard's authority to establish regulated navigation areas and other limited access areas: 33 U.S.C. 1226, 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; Public Law 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
        <P>The purpose of this rule is to provide for the safety and security of convention delegates, official parties, dignitaries, and the public during the 2012 Republican National Convention.</P>
        <HD SOURCE="HD1">C. Discussion of Rule</HD>
        <P>The security zones will be effective and enforced from August 25, 2012 through August 31, 2012, during the 2012 Republican National Convention held in Tampa, Florida.</P>

        <P>The Secretary of the Department of Homeland Security has designated the 2012 Republican National Convention as a National Special Security Event. National Special Security Events are significant events, which, due to their<PRTPAGE P="50927"/>political, economic, social, or religious significance, may render them particularly attractive targets of terrorism or other criminal activity. The Federal government provides support, assistance, and resources to State and local governments to ensure public safety and security during National Special Security Events.</P>
        <P>Numerous Federal, State, and local agencies, including the U.S. Secret Service, Federal Bureau of Investigation, Customs and Border Protection, U.S. Coast Guard, and the Joint Terrorism Task Force, have developed comprehensive security plans to protect participants and the public during the Republican National Convention. As part of the comprehensive effort, the maritime security objective is to protect Convention participants, the maritime transportation system, and maritime stakeholders, including recreational boaters, from threats and security vulnerabilities. The Coast Guard and other Federal, State, and local agencies involved in security for the 2012 Republican National Convention have conducted threat, vulnerability, and risk analyses relating to the event.</P>
        <P>The convention is expected to draw widespread protests by persons dissatisfied with national policy, foreign policy, and the Republican Party agenda. This politically-oriented event has the potential to attract anarchists and others persons intent on expressing their opposition through violence and criminal activity. The convention also presents an attractive target for terrorist and extremist organizations. Current analysis indicates that some activist groups are planning maritime activities to make their political views known.</P>
        <P>Maritime security vulnerabilities during the 2012 Republican National Convention extend beyond the Convention site and include secondary venues throughout the Tampa Bay area. Considerable law enforcement presence on land may render maritime approaches a viable alternative for activist groups. The City of Tampa has critical infrastructure in its port area, which is proximate to the downtown area and the Convention's main venues. The Port of Tampa is an industrial-based port, with significant storage and shipment of hazardous materials.</P>
        <P>The security zones and accompanying security measures have been specifically developed to mitigate the threats and vulnerabilities identified in the analysis discussed above. Security measures have been limited to the minimum necessary to mitigate risks associated with the identified threats.</P>
        <P>The rule will establish moving security zones around Certain Dangerous Cargo (CDC) vessels in the Captain of the Port St. Petersburg Zone during the 2012 Republican National Convention in Tampa, Florida. A CDC vessel is one carrying anhydrous ammonia, liquefied propane gas, and ammonium nitrate. The security zones prohibit any vessel from entering within 500 yards of a CDC vessel. The security zones will start at buoys 3 and 4 in Tampa Bay “F” cut following the vessel to the pier, from pier to pier for berth shifts, and from the pier out to buoys 3 and 4 in Tampa Bay “F” cut.</P>
        <P>All persons and vessels desiring to enter or remain within the regulated areas may contact the Captain of the Port St. Petersburg by telephone at (727) 824-7524, or a designated representative via VHF radio on channel 16, to request authorization. If authorization to enter or remain within the regulated areas is granted by the Captain of the Port St. Petersburg or a designated representative, all persons and vessels receiving such authorization must comply with the instructions of the Captain of the Port St. Petersburg or a designated representative. Recreational vessels authorized to enter or remain within the regulated areas may be subject to boarding and inspection of the vessel and persons onboard.</P>
        <P>The security zones would be enforced from 12:01 p.m. on August 25, 2012, through 11:59 a.m. on August 31, 2012.</P>

        <P>A Port Community Information Bulletin (PCIB) will be distributed by Coast Guard Sector St. Petersburg. The PCIB will be available on the Coast Guard Internet Web portal at<E T="03">http://homeport.uscg.mil.</E>PCIBs are located under the Port Directory tab in the Safety and Security Alert links. The Coast Guard would provide notice of the security zones by Local Notice to Mariners, Broadcast Notice to Mariners, public outreach, and on-scene designated representatives.</P>
        <HD SOURCE="HD1">D. 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="HD2">1. 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, as supplemented by Executive Order 13563, 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 that Order.</P>
        <P>The economic impact of this rule is not significant for the following reasons: (1) The security zones will be enforced for a total of 144 hours, and only while CDC vessels are transiting within Tampa Bay; (2) vessels will be authorized to transit the security zones with the permission of the Captain of the Port or a designated representative; (3) vessels may operate in the surrounding area during the enforcement period; and (4) the Coast Guard would provide advance notification of the security zones to the local community by Local Notice to Mariners, Broadcast Notice to Mariners, and public outreach.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>
        <P>The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as amended, requires federal agencies to consider the potential impact of regulations on small entities during rulemaking. 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. This rule may affect the following entities, some of which may be small entities: The owners or operators of vessels intending to enter or remain within those portions of the security zones encompassing Certain Dangerous Cargo vessels while transiting through Tampa Bay from 12:01 p.m. on August 25, 2012 through 11:59 a.m. on August 31, 2012. For the reasons discussed in the Regulatory Planning and Review section above, this rule will not have a significant economic impact on a substantial number of small entities.</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 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>section.</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<PRTPAGE P="50928"/>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="HD2">4. Collection of Information</HD>
        <P>This 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 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<E T="02">FOR FURTHER INFORMATION CONTACT</E>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 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="HD2">8. Taking of Private Property</HD>
        <P>This rule will 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 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</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.</P>
        <HD SOURCE="HD2">11. 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="HD2">12. Energy Effects</HD>
        <P>This action is not a “significant energy action” under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use.</P>
        <HD SOURCE="HD2">13. Technical Standards</HD>
        <P>This 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 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 determined 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 rule involves a moving security zone around vessels containing certain dangerous cargo. This rule is categorically excluded from further review under paragraph (34)(g) of figure 2-1 of the Commandant Instruction. An 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 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 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. 1226, 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>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Add a temporary § 165.T07-0712 to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 165.T07-0712</SECTNO>
            <SUBJECT>Security Zones; Certain Dangerous Cargo Vessels, Captain of the Port St. Petersburg Zone, Tampa, FL.</SUBJECT>
            <P>(a)<E T="03">Regulated Areas.</E>The following regulated areas are moving security zones around vessels containing Certain Dangerous Cargo (CDC).</P>
            <P>(1) All waters within a 500 yard radius around any CDC vessel as the vessel transits into Tampa Bay, starting at Tampa Bay Cut “F” Channel at Lighted Buoys “3F” and “4F” and continuing until the CDC vessel moors at the receiving facility.</P>
            <P>(2) All waters within a 500 yard radius around any CDC vessel as the vessel departs Tampa Bay, starting when the vessel unmoors from the receiving terminal and continuing until the vessel passes Tampa Bay Cut “F” Channel at Lighted Buoys “3F” and “4F.”</P>
            <P>(b)<E T="03">Definitions.</E>
            </P>
            <P>(1) The term “<E T="03">designated representative</E>” means Coast Guard Patrol Commanders, including Coast Guard coxswains, petty officers, and other officers operating Coast Guard vessels, and Federal, state, and local officers designated by or assisting the Captain of the Port St. Petersburg in the enforcement of the regulated areas.</P>
            <P>(2) The term “<E T="03">Certain Dangerous Cargo vessel</E>” or “CDC vessel” is a vessel carrying Anhydrous Ammonia (NH3), Liquefied Petroleum Gas (LPG), or Ammonium Nitrate (NH4) and that is escorted by a U.S. Coast Guard vessel.</P>
            <P>(c)<E T="03">Regulations.</E>
            </P>
            <P>(1) All persons and vessels are prohibited from entering, transiting through, anchoring in, or remaining within moving security Zones unless authorized by the Captain of the Port St. Petersburg or a designated representative.</P>

            <P>(2) All persons and vessels desiring to enter or remain within the regulated areas may contact the Captain of the Port St. Petersburg by telephone at (727) 824-7524, or a designated representative via VHF radio on channel 16, to request authorization.<PRTPAGE P="50929"/>
            </P>
            <P>(3) Any vessel or person receiving authorization to enter the moving security zone must comply with any instructions issued by the Captain of the Port or a designated representative, including the following:</P>
            <P>(i) No vessel may enter within a 100 yard radius of the CDC vessel at any time;</P>
            <P>(ii) Vessels authorized to enter the security zone must proceed at the minimum speed necessary to maintain safe navigation; and</P>
            <P>(iii) Vessels authorized to enter the security zone are subject to boarding and inspection of the vessel and persons onboard.</P>

            <P>(4) The Coast Guard will provide notice of the regulated areas by Local Notice to Mariners, Broadcast Notice to Mariners, public outreach, and on-scene designated representatives. A Port Community Information Bulletin is available on the Coast Guard internet web portal at<E T="03">http://homeport.uscg.mil.</E>Port Community Information Bulletins are located under the Port Directory tab in the Safety and Security Alert links.</P>
            <P>(d)<E T="03">Effective Date.</E>This rule is effective from 12:01 p.m. on August 25, 2012, through 11:59 a.m. on August 31, 2012.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: August 12, 2012.</DATED>
          <NAME>S.L. Dickinson,</NAME>
          <TITLE>Captain, U.S. Coast Guard, Captain of the Port.</TITLE>
        </SIG>.</SUPLINF>
      <FRDOC>[FR Doc. 2012-20706 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
        <SUBAGY>Coast Guard</SUBAGY>
        <CFR>33 CFR Part 165</CFR>
        <DEPDOC>[Docket No. USCG-2012-0707]</DEPDOC>
        <RIN>RIN 1625-AA87</RIN>
        <SUBJECT>Security Zones; 2012 RNC Bridge Security Zones, Captain of the Port St. Petersburg Zone, Tampa, FL</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 Coast Guard is establishing fifteen temporary security zones around certain bridges on the waters of Pinellas County and Tampa Bay, Florida, during the 2012 Republican National Convention, from August 25, 2012, to August 31, 2012. The security zones are necessary to protect convention delegates, official parties, dignitaries, the public, and surrounding waterways from terrorist acts, sabotage or other subversive acts, accidents, or other causes of a similar nature, intended to harm people, damage property, or disrupt the proceedings of the 2012 Republican National Convention. All persons and vessels are prohibited from loitering, anchoring, stopping, or mooring on waters within 50 yards of the designated bridges during the times that the security zones will be enforced for each bridge. Expeditious transiting through the security zones is authorized.</P>
          <P>This rule establishes security zones around the following bridges: the Gandy Bridge; Howard Franklin Bridge; Courtney Campbell Causeway Bridge; the Clearwater Memorial Causeway (60); Sand Key Bridge (699); Belleair Causeway Bridge; Walsingham Rd Bridge (688); Park Blvd. (co Rd 694); Welch Causeway (Tom Stuart Causeway/150th Ave); Seminole Bridge (Bay Pines Blvd./19/595); Johns Pass Bridge (Gulf Blvd./699); Treasure Island Causeway (Central Ave); Corey Causeway (Pasadena Ave); Blind Pass Bridge (699); and Pinellas Bayway Structures A, B, and C.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective from 12:01 p.m. on Saturday, August 25, 2012, through 1:00 a.m. on Friday, August 31, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Documents mentioned in this preamble are part of docket USCG-2012-0707. To view 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 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>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>If you have questions on this rule, call or email Marine Science Technician First Class Nolan L. Ammons, Sector St. Petersburg Prevention Department, Coast Guard; telephone (813) 228-2191, email<E T="03">D07-SMB-Tampa-WWM@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">Table of Acronyms</HD>
        <EXTRACT>
          <FP SOURCE="FP-1">DHSDepartment of Homeland Security</FP>
          <FP SOURCE="FP-1">FR<E T="04">Federal Register</E>
          </FP>
          <FP SOURCE="FP-1">NPRMNotice of Proposed Rulemaking</FP>
        </EXTRACT>
        <HD SOURCE="HD1">A. 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 because the Coast Guard did not receive notice of the need to establish these security zones until July 18, 2012. As a result, the Coast Guard did not have sufficient time to publish an NPRM and to receive public comments prior to implementation of the security zones. Any delay in the effective date of this rule would be contrary to the public interest because immediate action is needed to minimize potential danger to the convention delegates, official parties, dignitaries, the public, and surrounding waterways.</P>

        <P>For the same reason discussed above, 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">B. Basis and Purpose</HD>
        <P>The legal basis for the rule is the Coast Guard's authority to establish regulated navigation areas and other limited access areas: 33 U.S.C. 1226, 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; Public Law 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1.</P>
        <P>The purpose of this rule is to protect convention delegates, official parties, dignitaries, the public, and surrounding waterways from terrorist acts, sabotage or other subversive acts, accidents, or other causes of a similar nature, intended to harm people, damage property, or disrupt the proceedings of the 2012 Republican National Convention.</P>
        <HD SOURCE="HD1">C. Discussion of Rule</HD>

        <P>The Secretary of the Department of Homeland Security has designated the 2012 Republican National Convention as a National Special Security Event. National Special Security Events are significant events, which, due to their political, economic, social, or religious<PRTPAGE P="50930"/>significance, may render them particularly attractive targets of terrorism or other criminal activity. The Federal government provides support, assistance, and resources to state and local governments to ensure public safety and security during National Special Security Events.</P>
        <P>Numerous Federal, State, and local agencies, including the U.S. Secret Service, Federal Bureau of Investigation, Customs and Border Protection, U.S. Coast Guard, and the Joint Terrorism Task Force, have developed comprehensive security plans to protect participants and the public during the Republican National Convention. As part of the comprehensive effort, the maritime security objective is to protect Convention participants, the maritime transportation system, and maritime stakeholders, including recreational boaters, from threats and security vulnerabilities. The Coast Guard and other Federal, State, and local agencies involved in security for the 2012 Republican National Convention have conducted threat, vulnerability, and risk analyses relating to the event.</P>
        <P>The convention is expected to draw widespread protests by persons dissatisfied with national policy, foreign policy, and the Republican Party agenda. This politically-oriented event has the potential to attract anarchists and others persons intent on expressing their opposition through violence and criminal activity. The convention also may present an attractive target for terrorist and extremist organizations. Current analysis indicates that some activist groups are planning maritime activities to make their political views known.</P>
        <P>Maritime security vulnerabilities during the 2012 Republican National Convention extend beyond the Convention site and include secondary venues throughout the Tampa Bay area. The geography of the Tampa Bay region makes these fifteen bridges a vital component of the regional transportation network. Dignitaries, delegates, and participants at the Convention will be required to travel across these bridges to reach secondary venue locations. Further, dignitaries, delegates, and participants in the Republican National Convention will be staying at numerous hotels in Clearwater, St. Petersburg, and other areas. This will require those persons to make daily transits across the bridges spanning Tampa Bay and the Inter-Coastal Waterway to attend the Convention and associated events.</P>
        <P>These fifteen security zones, developed in conjunction with comprehensive security planning and actions by other agencies, will assist in the safe and secure transportation of dignitaries and delegates to the Convention. In addition, the security zones will prevent disruption of these vital components of the region's transportation network that may be caused by violent protesters and other groups drawn to this event. In addition, the security zones will prevent persons from using the bridges and surrounding waters to stop or impede maritime traffic during the event.</P>
        <P>The security zones and accompanying security measures have been specifically developed to mitigate the threats and vulnerabilities identified in the analysis discussed above. Security measures have been limited to the minimum necessary to mitigate risks associated with the identified threats.</P>
        <P>This rule will establish temporary security zones around fifteen bridges in the Captain of the Port St. Petersburg area during the 2012 Republican National Convention in Tampa, Florida. This rule is effective from 12:01 p.m. on Saturday, August 25, 2012, through 1:00 a.m. on Friday, August 31, 2012.</P>
        <P>All persons and vessels are prohibited from loitering, anchoring, stopping, or mooring under or within 50 yards of either side of the designated bridges. Expeditious transiting through the security zones is authorized. The security zones will be enforced 24-hours a day for the Gandy Bridge, Howard Franklin Bridge, and Courtney Campbell Causeway Bridge.</P>
        <P>The remaining security zones will be established around: The Clearwater Memorial Causeway (60); Sand Key Bridge (699); Belleair Causeway Bridge; Walsingham Rd Bridge (688); Park Blvd.(co Rd 694); Welch Causeway (Tom Stuart Causeway/150th Ave); Seminole Bridge (Bay Pines Blvd./19/595); Johns Pass Bridge (Gulf Blvd./699); Treasure Island Causeway (Central Ave); Corey Causeway (Pasadena Ave); Blind Pass Bridge (699); and Pinellas Bayway Structures A, B, and C. These security zones will be enforced for other bridges as follows:</P>
        
        <FP SOURCE="FP-1">Sunday, August 26: 3:00 p.m. to 8:00 p.m.;</FP>
        <FP SOURCE="FP-1">Monday, August 27: 11:00 a.m. to 2:00 p.m. and 3:00 p.m. to 7:00 p.m.;</FP>
        <FP SOURCE="FP-1">Tuesday, August 28: 3:00 p.m. to 7:00 p.m.;</FP>
        <FP SOURCE="FP-1">Wednesday, August 29: 3:00 p.m. to 7:00 p.m.; and</FP>
        <FP SOURCE="FP-1">Thursday, August 30: 3:00 p.m. to 7:00 p.m.</FP>
        

        <P>A Port Community Information Bulletin (PCIB) will be distributed by Coast Guard Sector St. Petersburg. The PCIB will be available on the Coast Guard Internet web portal at<E T="03">http://homeport.uscg.mil</E>. PCIBs are located under the Port Directory tab in the Safety and Security Alert links. The Coast Guard will provide notice of the security zones by Local Notice to Mariners, Broadcast Notice to Mariners, public outreach, and on-scene designated representatives.</P>
        <HD SOURCE="HD1">D. 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="HD2">1. 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, as supplemented by Executive Order 13563, 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 that Order.</P>
        <P>The economic impact of this rule is not significant for the following reasons: (1) The security zone will be effective for only six days; (2) although persons and vessels are prohibited from remaining or anchoring within the security zones during the effective dates, normal navigational transits will be authorized; and (3) vessels may operate in the area outside the security zones during the effective period.</P>
        <HD SOURCE="HD2">2. Impact on Small Entities</HD>
        <P>The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as amended, requires federal agencies to consider the potential impact of regulations on small entities during rulemaking. 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. 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 would affect the following entities, some of which might be small entities: The owners or operators of vessels intending to anchor or remain in any of the fifteen security zones during the effective periods described in the rule. These security zones would not have a significant economic impact on a substantial number of small entities for the reasons discussed in the<PRTPAGE P="50931"/>Regulatory Planning and Review section above.</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 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>section.</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="HD2">4. 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="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 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<E T="02">FOR FURTHER INFORMATION CONTACT</E>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 or more in any one year. Though this rule will not result in such 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 rule will 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 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</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 might disproportionately affect children.</P>
        <HD SOURCE="HD2">11. 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="HD2">12. Energy Effects</HD>
        <P>This action is not a “significant energy action” under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use.</P>
        <HD SOURCE="HD2">13. Technical Standards</HD>
        <P>This 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 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 determined 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 rule involves the establishment of fifteen temporary security zones. This rule is categorically excluded from further review under paragraph (34)(g) of Figure 2-1 of the Commandant Instruction. An 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 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 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. 1226, 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>
        </REGTEXT>
        
        <REGTEXT PART="165" TITLE="33">
          <AMDPAR>2. Add a temporary § 165.T07-0707 to read as follows:</AMDPAR>
          <SECTION>
            <SECTNO>§ 165.T07-0707</SECTNO>
            <SUBJECT>Security Zones; 2012 Republican National Convention, Captain of the Port St. Petersburg Zone, Tampa, FL.</SUBJECT>
            <P>(a)<E T="03">Regulated Areas.</E>All waters under and within 50 yards of either side of the following bridges are established as temporary security zones:</P>
            <P>(1) The Gandy Bridge,</P>
            <P>(2) Howard Franklin Bridge,</P>
            <P>(3) Courtney Campbell Causeway Bridge,</P>
            <P>(4) The Clearwater Memorial Causeway (60),</P>
            <P>(5) Sand Key Bridge (699),</P>
            <P>(6) Belleair Causeway Bridge,</P>
            <P>(7) Walsingham Rd Bridge (688),</P>
            <P>(8) Park Blvd.(co Rd 694),</P>
            <P>(9) Welch Causeway (Tom Stuart Causeway/150th Ave),</P>
            <P>(10) Seminole Bridge (Bay Pines Blvd./19/595),</P>
            <P>(11) Johns Pass Bridge (Gulf Blvd./699),</P>
            <P>(12) Treasure Island Causeway (Central Ave),</P>
            <P>(13) Corey Causeway (Pasadena Ave),</P>
            <P>(14) Blind Pass Bridge (699),<PRTPAGE P="50932"/>
            </P>
            <P>(15) Pinellas Bayway Structure A, B, and C.</P>
            <P>(b)<E T="03">Definition.</E>The term “<E T="03">designated representative</E>” means Coast Guard Patrol Commanders, including Coast Guard boat coxswains, petty officers, and other officers operating Coast Guard vessels, and Federal, state, and local officials designated by or assisting the Captain of the Port St. Petersburg in the enforcement of the regulated areas.</P>
            <P>(c)<E T="03">Regulations.</E>
            </P>
            <P>(1) All persons and vessels are prohibited from loitering, anchoring, stopping, or mooring under or within the regulated areas, unless authorized by a designated representative. Expeditious transiting through the security zones is authorized.</P>
            <P>(2) The security zones will be enforced at all times from 12:01 p.m. on Saturday, August 25, 2012, through 1:00 a.m. on Friday, August 31, 2012, for the Gandy Bridge, Howard Franklin Bridge, and Courtney Campbell Causeway Bridge.</P>
            <P>(3) The security zones will be enforced for the Clearwater Memorial Causeway (60); Sand Key Bridge (699); Belleair Causeway Bridge; Walsingham Rd Bridge (688); Park Blvd.(co Rd 694); Welch Causeway (Tom Stuart Causeway/150th Ave); Seminole Bridge (Bay Pines Blvd./19/595); Johns Pass Bridge (Gulf Blvd./699); Treasure Island Causeway (Central Ave); Corey Causeway (Pasadena Ave); Blind Pass Bridge (699); and Pinellas Bayway Structures A, B, and C; as follows:</P>
            <P>(i) Sunday, August 26: 3:00 p.m. to 8:00 p.m.;</P>
            <P>(ii) Monday, August 27: 11:00 a.m. to 2:00 p.m. and 3:00 p.m. to 7:00 p.m.;</P>
            <P>(iii) Tuesday, August 28: 3:00 p.m. to 7:00 p.m.;</P>
            <P>(iv) Wednesday August 29: 3:00 p.m. to 7:00 p.m.; and</P>
            <P>(v) Thursday August 30: 3:00 p.m. to 7:00 p.m.</P>

            <P>(4) A Port Community Information Bulletin is available on the Coast Guard Internet Web portal at<E T="03">http://homeport.uscg.mil.</E>Port Community Information Bulletins are located under the Port Directory tab in the Safety and Security Alert links.</P>
            <P>(5) The Coast Guard will provide notice of the regulated areas by Local Notice to Mariners, Broadcast Notice to Mariners, public outreach, and on-scene designated representatives.</P>
            <P>(d)<E T="03">Effective Date.</E>This rule is effective from 12:01 p.m. on Saturday, August 25, 2012, through 1:00 a.m. on Friday, August 31, 2012.</P>
          </SECTION>
        </REGTEXT>
        <SIG>
          <DATED>Dated: August 14, 2012.</DATED>
          <NAME>S.L. Dickinson,</NAME>
          <TITLE>Captain, U.S. Coast Guard, Captain of the Port St. Petersburg.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20699 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 9110-04-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">POSTAL SERVICE</AGENCY>
        <CFR>39 CFR Part 20</CFR>
        <SUBJECT>Electronic Transmission of Customs Data—Outbound International Letter-Post Items</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Postal Service<SU>TM</SU>.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Final rule with comment period.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Postal Service is revising the<E T="03">Mailing Standards of the United States Postal Service,</E>International Mail Manual (IMM®) to require that customs data be electronically transmitted for international letter-post mailpieces bearing a customs declaration form when the items are paid with a permit imprint.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>
            <E T="03">Effective Date:</E>November 5, 2012. We must receive your comments on or before September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Mail or deliver written comments to the manager, Product Classification, U.S. Postal Service®, 475 L'Enfant Plaza SW., Room 4446, Washington, DC 20260-5015. You may inspect and photocopy all written comments at USPS® Headquarters Library, 475 L'Enfant Plaza SW., 11th Floor N., Washington, DC between 9 a.m. and 4 p.m., Monday through Friday. Email comments, containing the name and address of the commenter, may be sent to<E T="03">MailingStandards@usps.gov</E>, with a subject line of “Electronic Transmission of Customs Data.” Faxed comments are not accepted.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Rick Klutts at 813-877-0372.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>In the final rule published on December 5, 2011 (76 FR 75786-75794), the Postal Service announced that, effective January 22, 2012, mailers paying the retail price would no longer be permitted to enter Express Mail International® or Priority Mail International® items bearing a permit imprint at a business mail entry unit (BMEU) since the information contained on the customs declaration was not electronically transmitted. That final rule supported policy changes to require the electronic transmission of customs data prior to mailing in a greater range of circumstances. Electronic transmission of customs data enables the Postal Service and other federal agencies to ensure mailers' compliance with federal export requirements. Effective November 5, 2012, the same requirements will also apply to the following classes of mail when the item bears a PS Form 2976,<E T="03">Customs Declaration CN 22—Sender's Declaration:</E>
        </P>
        <P>First-Class Mail International®.</P>
        <P>Airmail M-bags<SU>TM</SU>.</P>
        <P>International Priority Airmail<SU>TM</SU>(IPA®), including IPA M-bags.</P>
        <P>International Surface Air Lift® (ISAL®), including ISAL M-bags.</P>

        <P>With this change, customs data must be electronically transmitted before a mailer can enter any mailpiece bearing a customs declaration at a BMEU. This update will assist the Postal Service and other federal agencies to monitor mailers' compliance with federal export regulations that, among other things, prohibit certain goods from being sent to persons, entities, or countries determined to be adverse to U.S. interests. Data required to be transmitted includes the sender's name and address, the addressee's name and address, details about the item's contents, and the date of mailing. In addition, for IPA and ISAL mailings prepared in direct country sacks, we will require mailers to generate a receptacle barcode that includes the shipment date and permit number. To comply with these standards, mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov.</E>
        </P>
        <P>Finally, with this change, the Postal Service is reducing the current 5-pound minimum to 3 pounds for mailers preparing IPA and ISAL direct country sacks. This change will make it easier for mailers to qualify for the lower direct country sack price—currently, when there is less than 5 pounds of mail sent to an individual country, these sacks can only qualify for the mixed country sack price, or the worldwide nonpresort price. In addition, for mailers who currently commingle items bearing customs forms with items that do not have customs forms (in direct country sacks), this lower limit will assist mailers in preparing separate sacks for items bearing a customs form, effective November 5, 2012.</P>
        <P>The Postal Service hereby adopts the following changes to<E T="03">Mailing Standards of the United States Postal Service,</E>International Mail Manual (IMM), which is incorporated by reference in<PRTPAGE P="50933"/>the Code of Federal Regulations. See 39 CFR 20.1.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 39 CFR Part 20</HD>
          <P>Foreign relations, International postal services.</P>
        </LSTSUB>
        
        <P>Accordingly, 39 CFR part 20 is amended as follows:</P>
        <REGTEXT PART="20" TITLE="39">
          <PART>
            <HD SOURCE="HED">PART 20—[AMENDED]</HD>
          </PART>
          <AMDPAR>1. The authority citation for 39 CFR part 20 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-1737; 39 U.S.C. 101, 401, 403, 404, 407, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.</P>
          </AUTH>
        </REGTEXT>
        
        <REGTEXT PART="20" TITLE="39">
          <AMDPAR>2. Revise the following sections of<E T="03">Mailing Standards of the United States Postal Service,</E>International Mail Manual (IMM), as follows:</AMDPAR>
          <HD SOURCE="HD1">Mailing Standards of the United States Postal Service, International Mail Manual (IMM)</HD>
          <STARS/>
          <HD SOURCE="HD1">2Conditions for Mailing</HD>
          <STARS/>
          <HD SOURCE="HD1">240First-Class Mail International</HD>
          <STARS/>
          <HD SOURCE="HD1">243Prices and Postage Payment Methods</HD>
          <STARS/>
          <HD SOURCE="HD1">243.3Permit Imprint—General</HD>
          <P>
            <E T="03">[Revise 243.3 to read as follows:]</E>
          </P>

          <P>Mailers may use a permit imprint for mailing identical- or nonidentical-weight First-Class Mail International items. Any of the First-Class Mail International permit imprint formats shown in<E T="03">Exhibit 152.44</E>are acceptable. Permit imprints must not denote “bulk mail”, “nonprofit”, or other domestic or special mail markings. For items requiring a customs form, mailers must also meet the following requirements:</P>
          <P>a. Pay for postage with a permit imprint through an advance deposit account.</P>
          <P>b. Nonidentical-weight items must meet the permit imprint requirements under IMM 152.4 and the manifesting requirements under DMM 604 and DMM 705.</P>

          <P>In addition, for items requiring PS Form 2976 (see Exhibit 123.61), mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov.</E>
          </P>
          <STARS/>
          <HD SOURCE="HD1">260Direct Sacks of Printed Matter to One Addressee (M-bags)</HD>
          <STARS/>
          <HD SOURCE="HD1">264Mail Preparation</HD>
          <STARS/>
          <HD SOURCE="HD1">264.3Customs Forms Required</HD>
          <P>
            <E T="03">[Revise 264.3 to read as follows:]</E>
          </P>

          <P>M-bags must be accompanied by a fully completed PS Form 2976, which is to be affixed to PS Tag 158,<E T="03">M-bag Addressee Tag.</E>The maximum allowable value is $400. When paying with a permit imprint, mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov.</E>
          </P>
          <STARS/>
          <HD SOURCE="HD1">290Commercial Services</HD>
          <STARS/>
          <HD SOURCE="HD1">292International Priority Airmail (IPA) Service</HD>
          <HD SOURCE="HD1">292.1Description</HD>
          <STARS/>
          <HD SOURCE="HD1">292.13IPA M-bags</HD>
          <P>
            <E T="03">[Delete the current text from 292.13 and insert new 292.131 and 292.132 to read as follows:]</E>
          </P>
          <HD SOURCE="HD1">292.131IPA M-bags—General</HD>

          <P>IPA M-bags (direct sacks of printed matter to one addressee) may be entered in conjunction with an IPA mailing, are subject to the provisions of 260, and may be sent to all destination countries that are referenced in Exhibit 292.452. When using this method of mail preparation, the sender must complete PS Tag 115,<E T="03">International Priority Airmail,</E>and PS Tag 158,<E T="03">M-bag Addressee Tag.</E>Tags must be securely attached to the neck of the sack.</P>
          <HD SOURCE="HD1">292.132IPA M-bags—Customs Forms</HD>

          <P>IPA M-bags always require a fully completed PS Form 2976, which is to be affixed to PS Tag 158. Mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov.</E>
          </P>
          <HD SOURCE="HD1">292.2Eligibility</HD>
          <STARS/>
          <HD SOURCE="HD1">292.23Minimum Quantity Requirements</HD>
          <STARS/>
          <HD SOURCE="HD1">292.232Presort Eligibility—Full Service</HD>
          <P>
            <E T="03">[Revise 292.232 to read as follows:]</E>
          </P>
          <P>Only a direct country sack containing a minimum of 3 pounds qualifies for the presort price. All remaining mail must be prepared and paid at the worldwide nonpresort price.</P>
          <HD SOURCE="HD1">292.233Presort Eligibility—ISC Drop Shipment</HD>
          <P>
            <E T="03">[Revise 292.233 to read as follows:]</E>
          </P>
          <P>Only a direct country sack containing a minimum of 3 pounds or a mixed country sack containing a minimum of 5 pounds qualifies for the presort price. All remaining mail must be prepared and paid at the worldwide nonpresort price.</P>
          <STARS/>
          <HD SOURCE="HD1">292.25Customs Forms Requirements</HD>
          <P>
            <E T="03">[Revise 292.25 to read as follows:]</E>
          </P>

          <P>For items requiring a PS Form 2976 (see 123.61), mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov.</E>
          </P>
          <STARS/>
          <HD SOURCE="HD1">292.4Mail Preparation</HD>
          <STARS/>
          <HD SOURCE="HD1">292.44Physical Characteristics and Requirements for All Bundles</HD>
          <STARS/>
          <P>
            <E T="03">[After item d, insert a “Note” to read as follows:]</E>
          </P>
          <NOTE>
            <HD SOURCE="HED">Note:</HD>
            <P>Parcel-size pieces do not require bundling.</P>
          </NOTE>
          <HD SOURCE="HD1">292.45Sortation</HD>
          <HD SOURCE="HD1">292.451Presort Mailings—General</HD>
          <P>
            <E T="03">[Revise 292.451 in its entirety to read as follows:]</E>
          </P>
          <P>Follow these steps when preparing IPA presort mail:</P>
          <P>a.<E T="03">Full Service.</E>
          </P>

          <P>1. Mail that is addressed to an individual country and that contains 3 pounds or more must be sorted into direct country sacks. Mail that cannot be made up into direct country sacks must be prepared and entered at the worldwide nonpresort price. Mailers must bundle letter-size and flat-size pieces as defined in 292.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack.<PRTPAGE P="50934"/>
          </P>
          <P>2. Mailers must sack separately, items bearing customs forms from items not bearing customs forms. Each type of sack must individually meet the 3-pound minimum to qualify.</P>
          <P>b.<E T="03">ISC Drop Shipment—Direct country sacks.</E>
          </P>
          <P>1. Mail that is addressed to an individual country and that contains 3 pounds or more must be sorted into direct country sacks. Mail that cannot be made up into direct country sacks must be prepared and entered at the mixed country or worldwide nonpresort price. Mailers must bundle letter-size and flat-size pieces as defined in 292.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack.</P>
          <P>2. Mailers must sack separately items bearing customs forms from items not bearing customs forms. Each type of sack must individually meet the 3-pound minimum to qualify.</P>
          <P>c.<E T="03">ISC Drop Shipment—Mixed country sacks.</E>Mixed county sacks can be prepared only after all possible direct country sacks have been prepared. Only countries in price groups 11-15 are eligible for mixed country sack pricing. Mailers must sort individual countries within a single price group that contain 5 pounds or more into mixed country sacks. Mail that ultimately cannot be made up into direct country sacks or mixed country sacks must be prepared and entered at the worldwide nonpresort price. Mailers must bundle letter-size and flat-size pieces as defined in 292.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack.</P>
          <NOTE>
            <HD SOURCE="HED">Note:</HD>

            <P>There are separate preparation requirements for mail to Canada. See<E T="03">292.47.</E>
            </P>
          </NOTE>
          <HD SOURCE="HD1">292.452Presorted Mail—Direct Country Bundle Label</HD>
          <P>
            <E T="03">[Revise the first sentence of 292.452 to read as follows:]</E>
          </P>
          <P>Only letter-size and flat-size direct country bundles prepared for mixed country sacks require a label (facing slip).* * *</P>
          <STARS/>
          <HD SOURCE="HD1">292.453Worldwide Nonpresort Mail—Bundles</HD>
          <STARS/>
          <P>
            <E T="03">[Revise 292.453 to read as follows:]</E>
          </P>
          <P>Mailers must bundle letter-size and flat-size pieces as defined in 292.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack. Labels (facing slips) are not required on any bundles.</P>
          <HD SOURCE="HD1">292.46Sacking Requirements</HD>
          <P>
            <E T="03">[Revise the title to 292.461 to read as follows:]</E>
          </P>
          <HD SOURCE="HD1">292.461Direct Country Sack (3 Pounds or More)</HD>
          <STARS/>
          <P>The following standards apply:</P>
          <P>
            <E T="03">[Revise 292.461a and b(1) to read as follows (note that we have used bold text in this article to indicate revised text, but the text in the actual revised IMM will not appear in bold):]</E>
          </P>
          <P>a.<E T="03">General.</E>
            <E T="04">Mailers must sack separately, items bearing customs forms from items not bearing customs forms.</E>When there are<E T="04">3</E>pounds or more of mail addressed to the same country, the mail must be enclosed in a direct country sack. All types of mail, including letter-size bundles, flat-size bundles, and loose items, can be commingled in the same sack for each destination and counted toward the 3-pound minimum,<E T="04">provided items bearing a customs form are sacked separately from items not bearing customs forms</E>. The maximum weight of the sack and contents must not exceed 66 pounds.</P>
          <P>b.<E T="03">Direct Country Sack Tags.</E>For each direct country sack, the mailer must do the following:</P>
          <P>1. Complete PS Tag 178,<E T="03">Airmail Bag Label LC (CN 35/AV 8) (white),</E>which is a white tag designed to route the sack to a specific country. The mailer must complete the “To” block showing the destination country and the foreign office of exchange code as listed in Exhibit 292.452.<E T="04">In addition, mailers must apply to the tag a barcode that indicates the mailer's permit number, the product code, the service type code, the receptacle type, the destination office of exchange, and the serial number of the sack. To request technical specifications for the barcode, send, an email to globalbusinesssales@usps.gov.</E>Postal Service personnel—not the mailer—must complete the blocks for date, weight, and dispatch information.</P>
          <STARS/>
          <HD SOURCE="HD1">292.47 Mail Preparation for Canada</HD>
          <P>
            <E T="03">[Revise the intro and items a and b of 292.47 to read as follows (note that we have used bold text in this article to indicate revised text, but the text in the actual revised IMM will not appear in bold):]</E>
          </P>
          <P>
            <E T="04">Mailers must sack separately, items bearing customs forms from items not bearing customs forms. Mailers must</E>prepare letter-size, flat-size, and package-size items destined to Canada in separate containers<E T="04">as defined in items a through c.</E>To qualify for the presort price, the same eligibility requirements apply as for full service (see 292.232) or ISC drop shipment (see 292.233). If the total mailing contains less than 3 pounds of mail for Canada, then the mail qualifies only for the worldwide nonpresort price but may be included with mail for other countries. Mailings that exclusively contain worldwide nonpresort mail to Canada have a 50-pound minimum, and mailers must prepare them under 292.453 and 292.463. Mailers must prepare presorted IPA mail (full-service price and ISC drop shipment price) to Canada as follows:</P>
          <P>a.<E T="03">Letter-Size and Flat-Size Mail.</E>Prepare letter-size items in letter trays, either 1-foot or 2-foot, depending on volume. Prepare flat-size items in flat trays. Face all letter-size items and flat-size items in the same direction. Ensure that all trays are full enough to keep the mail from mixing during transportation. Cover (i.e., “sleeve”) all letter-size and flat-size trays and secure them with strapping. Do not prepare the content of trays in bundles. In addition, the mailer must complete PS Tag 115,<E T="03">International Priority Airmail,</E>must write “Canada” on the front side of the tag, and must tape the tag to the tray sleeve.<E T="04">In addition, mailers must apply to the tag a barcode that indicates the mailer's permit number, the product code, the service type code, the receptacle type, the destination office of exchange, and the serial number of the tray. To request technical specifications for the barcode, send an email to globalbusinesssales@usps.gov.</E>
          </P>
          <P>b.<E T="03">Packages.</E>Prepare package-size items (i.e., items that cannot be prepared in trays because of their size or shape) loose in sacks. Affix PS Tag 178,<E T="03">Airmail Bag Label LC (CN 35/AV 8) (white),</E>to the neck of the sack and write Canada in the “To” block of the tag. In addition, affix PS Tag 115,<E T="03">International Priority Airmail,</E>to the neck of the sack and write “Canada” on the back of the tag.<E T="04">In addition, mailers must apply to the tag a barcode that indicates the mailer's permit number, the product code, the service type code, the receptacle type, the destination office of exchange, and the serial number of the sack. To request technical<PRTPAGE P="50935"/>specifications for the barcode, send an email to globalbusinesssales@usps.gov.</E>
          </P>
          <STARS/>
          <HD SOURCE="HD1">293International Surface Air Lift (ISAL) Service</HD>
          <HD SOURCE="HD1">293.1Description</HD>
          <STARS/>
          <HD SOURCE="HD1">293.13ISAL M-bags</HD>
          <P>
            <E T="03">[Delete the current text from 293.13 and insert new items 293.131 and 293.132 to read as follows:]</E>
          </P>
          <HD SOURCE="HD1">293.131ISAL M-bags—General</HD>

          <P>ISAL M-bags (direct sacks of printed matter to one addressee) may be entered in conjunction with an ISAL mailing, are subject to the provisions of 260, and may be sent to all destination countries that are referenced in Exhibit 293.452. When using this method of mail preparation, the sender must complete PS Tag 155,<E T="03">Surface Airlift Mail,</E>and PS Tag 158,<E T="03">M-bag Addressee Tag.</E>Tags must be securely attached to the neck of the sack.</P>
          <HD SOURCE="HD1">293.132ISAL M-bags—Customs Forms</HD>

          <P>ISAL M-bags always require a fully completed PS Form 2976, which is to be affixed to PS Tag 158. Mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov</E>.</P>
          <HD SOURCE="HD1">293.2Eligibility</HD>
          <STARS/>
          <HD SOURCE="HD1">293.23Minimum Quantity Requirements</HD>
          <STARS/>
          <HD SOURCE="HD1">293.232Presort Eligibility—Full Service</HD>
          <P>
            <E T="03">[Revise 293.232 to read as follows:]</E>
          </P>
          <P>Only a direct country sack containing a minimum of 3 pounds qualifies for the presort price. All remaining mail must be prepared and paid at the worldwide nonpresort price.</P>
          <HD SOURCE="HD1">293.233Presort Eligibility—ISC Drop Shipment</HD>
          <P>
            <E T="03">[Revise 293.233 to read as follows:]</E>
          </P>
          <P>Only a direct country sack containing a minimum of 3 pounds or a mixed country sack containing a minimum of 5 pounds qualifies for the presort price. All remaining mail must be prepared and paid at the worldwide nonpresort price.</P>
          <STARS/>
          <HD SOURCE="HD1">293.25Customs Forms Requirements</HD>
          <P>
            <E T="03">[Revise 293.25 to read as follows:]</E>
          </P>

          <P>For items requiring a customs form (see 123.61), mailers must electronically transmit customs data by using USPS-produced Global Shipping Software (GSS) or other USPS-approved software. To request information about either of these software solutions, send an email to<E T="03">globalbusinesssales@usps.gov</E>.</P>
          <STARS/>
          <HD SOURCE="HD1">293.4Mail Preparation</HD>
          <STARS/>
          <HD SOURCE="HD1">293.44Physical Characteristics and Requirements for All Bundles</HD>
          <P>The following standards apply:</P>
          <STARS/>
          <P>
            <E T="03">[After item d, insert a “Note” to read as follows:]</E>
          </P>
          <NOTE>
            <HD SOURCE="HED">Note:</HD>
            <P>Parcel-size pieces do not require bundling.</P>
          </NOTE>
          <HD SOURCE="HD1">293.45Sortation</HD>
          <HD SOURCE="HD1">293.451Presort Mailings—General</HD>
          <P>
            <E T="03">[Revise 293.451 in its entirety to read as follows:]</E>
          </P>
          <P>Follow these steps when preparing ISAL presort mail:</P>
          <P>a.<E T="03">Full Service.</E>
          </P>
          <P>1. Mail that is addressed to an individual country and that contains 3 pounds or more must be sorted into direct country sacks. Mail that cannot be made up into direct country sacks must be prepared and entered at the worldwide nonpresort price. Mailers must bundle letter-size and flat-size pieces as defined in 293.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack.</P>
          <P>2. Mailers must sack separately items bearing customs forms from items not bearing customs forms. Each type of sack must individually meet the 3-pound minimum to qualify.</P>
          <P>b.<E T="03">ISC Drop Shipment—Direct country sacks.</E>
          </P>
          <P>1. Mail that is addressed to an individual country and that contains 3 pounds or more must be sorted into direct country sacks. Mail that cannot be made up into direct country sacks must be prepared and entered at the mixed country or worldwide nonpresort price. Mailers must bundle letter-size and flat-size pieces as defined in 293.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack.</P>
          <P>2. Mailers must sack separately items bearing customs forms from items not bearing customs forms. Each type of sack must individually meet the 3-pound minimum to qualify.</P>
          <P>c.<E T="03">ISC Drop Shipment—Mixed country sacks.</E>Mixed county sacks can be prepared only after all possible direct country sacks have been prepared. Only countries in price groups 11-15 are eligible for mixed country sack pricing. Mailers must sort individual countries within a single price group that contain 5 pounds or more into mixed country sacks. Mail that ultimately cannot be made up into direct country sacks or mixed country sacks must be prepared and entered at the worldwide nonpresort price. Mailers must bundle letter-size and flat-size pieces as defined in 293.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack.</P>
          <HD SOURCE="HD1">293.452Presorted Mail—Direct Country Bundle Label</HD>
          <P>
            <E T="03">[Revise the first sentence of 293.452 to read as follows:]</E>
          </P>
          <P>Only letter-size and flat-size direct country bundles prepared for mixed country sacks require a label (facing slip). * * *</P>
          <STARS/>
          <HD SOURCE="HD1">293.453Worldwide Nonpresort Mail—Bundles</HD>
          <STARS/>
          <P>
            <E T="03">[Revise 293.453 to read as follows:]</E>
          </P>
          <P>Mailers must bundle letter-size and flat-size pieces as defined in 293.44. Letters and flats must be bundled separately, although nonidentical pieces may be commingled within each of these categories. Parcel-size pieces that cannot be bundled because of their physical characteristics must be placed loose in the sack. Labels (facing slips) are not required on any bundles.</P>
          <HD SOURCE="HD1">293.46Sacking Requirements</HD>
          <P>
            <E T="03">[Revise the title to 293.461 to read as follows:]</E>
          </P>
          <HD SOURCE="HD1">293.461Direct Country Sack (3 Pounds or More)</HD>
          <P>The following standards apply:</P>
          <STARS/>
          <P>
            <E T="03">[Revise items 293.461a and b(1) to read as follows (note that we have used bold text in this article to indicate revised text, but the text in the actual revised IMM will not appear in bold):]</E>
            <PRTPAGE P="50936"/>
          </P>
          <P>a.<E T="03">General.</E>
            <E T="04">Mailers must sack separately, items bearing customs forms from items not bearing customs forms</E>. When there are<E T="04">3</E>pounds or more of mail addressed to the same country, the mail must be enclosed in a direct country sack. All types of mail, including letter-size bundles, flat-size bundles, and loose items, can be commingled in the same sack for each destination and counted toward the<E T="04">3</E>-pound minimum,<E T="04">provided items bearing a customs form are sacked separately from items not bearing customs forms</E>. The maximum weight of the sack and contents must not exceed 66 pounds.</P>
          <P>b.<E T="03">Direct Country Sack Tags.</E>For each direct country sack, the mailer must do the following:</P>
          <P>1. Complete both sides of PS Tag 155,<E T="03">Surface Airlift Mail,</E>which identifies the mail to ensure it receives priority handling. On the front of the tag, the mailer must identify the destination country and the foreign office of exchange code as listed in Exhibit 293.452. On the back of the tag, the mailer must specify the price group as listed in Exhibit 293.452.<E T="04">In addition, mailers must apply to the tag a barcode that indicates the mailer's permit number, the product code, the service type code, the receptacle type, the destination office of exchange, and the serial number of the sack. To request technical specifications for the barcode, send an email to globalbusinesssales@usps.gov</E>.</P>
          <STARS/>
          <P>We will publish an amendment to 39 CFR part 20 to reflect these changes.</P>
        </REGTEXT>
        <SIG>
          <NAME>Stanley F. Mires,</NAME>
          <TITLE>Attorney, Legal Policy &amp; Legislative Advice.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20583 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 7710-12-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R09-OAR-2011-0130, FRL 9700-4]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Air Quality Implementation Plans; Nevada; Regional Haze State and Federal Implementation Plans; BART Determination for Reid Gardner Generating Station</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>EPA is approving in part and disapproving in part the remaining portion of the Nevada Regional Haze State Implementation Plan (SIP) that implements the Clean Air Act (CAA) Regional Haze Rule requiring states to prevent any future and remedy any existing man-made impairment of visibility in mandatory Class I areas through a regional haze program. EPA is approving Nevada's selection of a nitrogen oxide (NO<E T="52">X</E>) emissions limit of 0.20 lb/MMBtu as Best Available Retrofit Technology (BART) for the Reid Gardner Generating Station (RGGS) at Units 1 and 2. EPA is disapproving two provisions of Nevada's BART determination for NO<E T="52">X</E>at RGGS: The emissions limit for Unit 3 and the compliance method for all three units. EPA is promulgating a Federal Implementation Plan (FIP) which replaces the disapproved provisions by establishing a BART emissions limit for NO<E T="52">X</E>of 0.20 lb/MMBtu at Unit 3, and a 30-day averaging period for compliance on a heat input-weighted basis across all three units. We encourage the State to submit a revised SIP to replace all portions of our FIP. Moreover, we stand ready to work with the State to develop a revised plan.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>This rule is effective on September 24, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>EPA has established docket number EPA-R09-OAR-2011-0130 for this action. Generally, documents in the docket are available electronically at<E T="03">http://www.regulations.gov</E>or in hard copy at EPA Region 9, 75 Hawthorne Street, San Francisco, California. Please note that while many of the documents in the docket are listed at<E T="03">http://www.regulations.gov,</E>some information may not be specifically listed in the index to the docket and may be publicly available only at the hard copy location (e.g., copyrighted material, large maps, multi-volume reports or otherwise voluminous materials), and some may not be available at either locations (e.g., confidential business information). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed directly below.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Thomas Webb, U.S. EPA, Region 9, Planning Office, Air Division, AIR-2, 75 Hawthorne Street, San Francisco, CA 94105. Thomas Webb can be reached at telephone number (415) 947-4139 and via electronic mail at<E T="03">webb.thomas@epa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document, wherever “we,” “us,” or “our,” is used, we mean the United States Environmental Protection Agency (EPA).</P>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Background and Purpose</FP>
          <FP SOURCE="FP-2">II. EPA Responses to Public Comments</FP>
          <FP SOURCE="FP-2">III. Summary of EPA Actions</FP>
          <FP SOURCE="FP-2">IV. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background and Purpose</HD>

        <P>A detailed explanation of the requirements for regional haze SIPs and EPA's analysis of the Nevada Division of Environmental Protection's (NDEP) BART determination for NO<E T="52">X</E>at RGGS is provided in our Notice of Proposed Rule Making and is not restated here.<E T="03">See</E>77 FR 21896 (April 12, 2012).</P>

        <P>RGGS consists of four coal-fired boilers, three of which are BART-eligible units with generating capacity of 100 megawatts (MW) each. A fourth unit (250 MW) is not BART-eligible. Nevada Energy, the owner of RGGS, performed a NO<E T="52">X</E>BART analysis for the three BART-eligible units at RGGS and submitted the results of its analysis to NDEP.<SU>1</SU>

          <FTREF/>In its BART analysis, Nevada Energy considered several NO<E T="52">X</E>control technologies and evaluated the cost of compliance and visibility improvement associated with each technology. In preparing the SIP, NDEP relied on certain aspects of Nevada Energy's analysis while performing updated analyses for other aspects.</P>
        <FTNT>
          <P>
            <SU>1</SU>Nevada Energy BART Analysis Reports, Reid_Gardner_1_10-03-08.pdf, Reid_Gardner_2_10-03-08.pdf, Reid_Gardner_3_10-03-08.pdf. Available in Docket Item No. EPA-R09-OAR-2011-0130-0007.</P>
        </FTNT>

        <P>EPA proposed to fully approve Nevada's SIP on June 22, 2011 (<E T="03">see</E>76 FR 36450), but received numerous comments on our proposed approval of the BART determination for NO<E T="52">X</E>at RGGS. A detailed description of those comments is in our final rule, which approved all of the Nevada regional haze SIP, except for the BART determination for NO<E T="52">X</E>at RGGS.<E T="03">See</E>77 FR 17334 (March 26, 2012). After reviewing the public comments, EPA performed additional analyses of the cost-effectiveness and visibility improvement associated with the various NO<E T="52">X</E>control technologies considered by NDEP in determining BART for NO<E T="52">X</E>at RGGS. Based upon these additional analyses, EPA did not take final action on the chapters of the SIP containing the NO<E T="52">X</E>BART determination for RGGS, including the corresponding emission limits and schedules of compliance for NO<E T="52">X</E>at RGGS. Specifically, EPA did not take final action on sections 5.5.3, 5.6.3 and 7.2 of NDEP's SIP, addressing the NO<E T="52">X</E>BART control analyses, visibility improvement, and implementation at RGGS.<PRTPAGE P="50937"/>
        </P>

        <P>EPA published a new proposal to partially approve and partially disapprove NDEP's BART determination for NO<E T="52">X</E>at RGGS on April 12, 2012.<E T="03">See</E>77 FR 21896. Based on its additional analyses described above, EPA proposed revised control cost calculations for installation and operation of low NO<E T="52">X</E>burners (“LNB”) and overfire air (“OFA”) combined with either selective non-catalytic reduction (SNCR) or selective catalytic reduction (SCR) technology.<SU>2</SU>
          <FTREF/>EPA also performed new CALPUFF visibility modeling to evaluate the visibility improvement from installing and operating LNB with OFA and either SNCR or SCR.</P>
        <FTNT>
          <P>
            <SU>2</SU>As explained in our proposal, NDEP originally selected rotating opposed fire air (ROFA) with Rotamix<SU>TM</SU>as BART for RGGS Units 1-3, but more recently informed us that it will submit a SIP that evaluates the substitution of SNCR with LNB and OFA for ROFA with Rotamix<SU>TM</SU>. 77 FR at 21898. Therefore, we are not approving NDEP's prior selection of ROFA with Rotamix<SU>TM</SU>as the control type for BART. Rather, we are approving NDEP's BART emissions limits for Units 1 and 2 of 0.20 lb/MMBtu. According to the most recent information received from NDEP, these limits can be achieved either with ROFA with Rotamix<SU>TM</SU>or with SNCR with LNB and OFA. ROFA with Rotamix<SU>TM</SU>combines a conventional SNCR system with a proprietary air and reagent injection system.</P>
        </FTNT>

        <P>As discussed in detail in our responses to comments, EPA's independent modeling results showed a very small visibility improvement at the Grand Canyon National Park (GCNP) as a result of installing and operating SCR with an 85 percent reduction in NO<E T="52">X</E>on all three units. The modeled visibility improvement for this scenario was 0.38 dv at the GCNP. The incremental visibility improvement for installing LNB with OFA and SCR rather than LNB with OFA and SNCR was only 0.10 dv at GCNP.</P>

        <P>EPA has considered the comments we received on our proposed approval and proposed disapproval. In this final action, EPA is approving NDEP's determination that NO<E T="52">X</E>BART for RGGS for Units 1 and 2 is an emissions limit of 0.20 lb/MMBtu that can be achieved by installing and operating LNB with OFA and SNCR. EPA is disapproving NDEP's NO<E T="52">X</E>BART emissions limit of 0.28 lb/MMBtu for Unit 3. EPA is also disapproving the 12-month rolling average that NDEP adopted for all three units. Concurrently, EPA is finalizing a FIP for RGGS setting a NO<E T="52">X</E>emissions limit of 0.20 lb/MMBtu for Unit 3 and a 30 successive boiler operating day (BOD) rolling NO<E T="52">X</E>emissions limit on a heat input-weighted average across all three units.<SU>3</SU>
          <FTREF/>This represents a change to the averaging period included in our proposed action on April 12, 2012, which was based on a straight 30 calendar day average. EPA concludes that the change is a logical outgrowth of the proposal and the comments received.</P>
        <FTNT>
          <P>

            <SU>3</SU>Throughout the preamble we use the term “heat input-weighted average” in describing the 30 successive day rolling emission limit. The regulation does not actually average the data for the 3 units, but sums the total NO<E T="52">X</E>lb/hr over 30 boiler operating days and divides that total NO<E T="52">X</E>lb by the sum of the heat input over the same days. The use of the term “heat input-weighted average” is meant to be descriptive of the time period and of the fact that it combines all three units to determine compliance.</P>
        </FTNT>

        <P>EPA takes very seriously a decision to disapprove these provisions in Nevada's plan, as we believe that it is preferable that all emission control requirements needed to protect visibility be implemented through the Nevada SIP. A revised state plan need not contain exactly the same provisions that EPA has included in the FIP, but EPA must be able to find that the state plan is consistent with the requirements of the CAA. Further, EPA's oversight role requires that we assure fair implementation of CAA requirements by states across the country, even while acknowledging that individual decisions from source to source or state to state may not have identical outcomes. In this instance, we believe that NDEP's NO<E T="52">X</E>BART determination for RGGS generally meets those requirements except for the specific emissions limit for Unit 3 and the compliance averaging time. As a result, EPA believes this combined approval, disapproval, and FIP is consistent with the CAA at this time, while full approval of the SIP would be inconsistent with the CAA. We look forward to working with NDEP to replace the FIP provisions with a revised SIP.</P>
        <HD SOURCE="HD1">II. EPA Responses to Public Comments</HD>
        <P>EPA received written and oral comments before the close of the public comment period on June 4, 2012. We received major comments in writing from a consortium of environmental and conservation organizations<SU>4</SU>

          <FTREF/>(“Consortium”), the National Park Service, the Nevada Division of Environmental Protection, Nevada Energy, the Moapa Band of Paiutes, Clark County Rural Democratic Caucus, and about ten individuals. We received comments from the two public hearings held near RGGS on May 3, 2012, that were attended by about 150 people, many of whom testified. We also received over 13,000 comments from mass mailings initiated by Sierra Club, National Parks Conservation Association, and CREDO Action (Rural Nevada Democratic Caucus). The comment letters, transcripts of the public testimony, and samples of the mass mailers are available for review online in Docket EPA-R09-OAR-2011-0130 at<E T="03">http://www.regulations.gov.</E>While the written comments focus largely on the cost of compliance and degree of visibility improvement associated with SCR and SNCR, other topics are included. The oral comments provided as testimony at the public hearings focus largely on SCR and SNCR, but with an emphasis on sustaining jobs in the local community and the health issues experienced by the Moapa Band of Paiutes who live adjacent to Reid Gardner. We respond below to the full range of comments received from all sources.</P>
        <FTNT>
          <P>
            <SU>4</SU>The Consortium's comment letter was signed by representatives of Sierra Club, National Parks Conservation Association, Moapa Band of Paiutes, Citizens for Dixie's Future, Defend Our Desert, Friends of Gold Butte, Grand Canyon Trust, and Western Resource Advocates.</P>
        </FTNT>
        <HD SOURCE="HD2">A. National Consistency</HD>
        <P>
          <E T="03">Comment 1:</E>EPA's proposed BART determination for NO<E T="52">X</E>at RGGS is inconsistent with EPA's decision to require SCR on other similar facilities including the San Juan Generating Station in New Mexico.</P>
        <P>
          <E T="03">Response 1:</E>It is important to note that EPA is approving Nevada's determination that the NO<E T="52">X</E>BART for RGGS is the emissions rate achievable using modern LNB with OFA and SNCR. We are approving NDEP's decision to reject requiring SCR as NO<E T="52">X</E>BART because we believe that NDEP's conclusion, that the small improvement in visibility at GCNP did not justify the cost of LNB with OFA and SCR technology, is adequately supported by the facts in this situation.<SU>5</SU>
          <FTREF/>Congress crafted the CAA to provide for states to take the lead in developing implementation plans, but balanced that decision by requiring EPA to ensure the plans meet the requirements of the CAA. EPA's review of a SIP is not limited to a ministerial approval of a state's decisions. EPA must evaluate whether a state considered the appropriate factors and acted reasonably in doing so. In undertaking such a review, EPA does not usurp a state's authority but ensures that such authority is reasonably exercised.</P>
        <FTNT>
          <P>
            <SU>5</SU>In future discussions comparing SNCR and SCR, both technologies include use of modern LNB and OFA to meet the emission rates discussed in this rule. We will not continue to list the combustion controls separately.</P>
        </FTNT>

        <P>The CAA and EPA's regional haze regulations set forth five factors that a state should evaluate to reach a BART determination. However, the CAA and our regulations provide flexibility to the<PRTPAGE P="50938"/>state in deciding how the factors in the analysis are weighed. Moreover, for power plants that are smaller than 750 MW, our regulations allow the state to conduct a five-factor analysis that does not conform in all respects to our BART Guidelines for larger sources.<E T="03">See</E>70 FR 39131 (July 6, 2005).</P>
        <P>For San Juan Generating Station and other examples cited in the comments, EPA disapproved BART determinations submitted by the states because they did not meet the CAA requirements. Under CAA section 110(c), EPA is required to promulgate a Federal Implementation Plan following disapproval of a state implementation plan submission in whole or in part. EPA's role of making the initial BART determination in a FIP is not directly comparable to EPA's role in deciding whether the state's SIP is approvable. EPA and the states generally consider the same factors in the initial BART determination but may weigh those factors differently provided the determination in each case is reasonable. BART determinations are case by case analyses. For example, in the case of San Juan Generating Station, EPA modeled very significant visibility improvement in numerous surrounding Class I areas resulting from emissions reductions associated with SCR, and thus concluded based on its five factor analysis that SCR was BART.<SU>6</SU>
          <FTREF/>However, at RGGS, the visibility improvement from SCR compared to SNCR is very small. The units at San Juan Generating Station are also significantly larger than the units at RGGS, and the application of the BART Guidelines is mandatory when performing the five-factor analysis. This is not the case for RGGS.</P>
        <FTNT>
          <P>
            <SU>6</SU>Per 76 FR 503, Table 8, EPA Region 6 modeled visibility benefits of 3.11 deciviews (single Class I area with greatest impact), and 21.69 deciviews (cumulative, all Class I areas within 300 km).</P>
        </FTNT>

        <P>NDEP on the other hand indicated that it had determined SNCR rather than SCR was NO<E T="52">X</E>BART for RGGS based on weighing the small incremental visibility improvement of SCR against its incremental cost effectiveness. When EPA reviewed NDEP's NO<E T="52">X</E>BART determination, we found problems in the method NDEP used to calculate cost-effectiveness and in the assumptions on which the modeling was based. Accordingly, EPA independently calculated cost-effectiveness and performed new modeling. In our review, EPA considered both average and incremental cost-effectiveness and visibility improvement. The results of our own analysis of the incremental visibility improvement and cost for SCR differ from NDEP's analysis in certain respects, but support NDEP's decision to establish an emissions limit that can be achieved by installing SNCR technology.</P>
        <P>NDEP reasonably determined that NO<E T="52">X</E>emissions reductions achievable with SNCR would provide some visibility improvement at GCNP at a reasonable cost. Our decision to approve NDEP's determination that the emissions rate achievable with LNB with OFA and SNCR is NO<E T="52">X</E>BART for RGGS is consistent with other national BART SIP approvals as well as proposed FIPs and final FIPs.<E T="03">See, e.g.,</E>77 FR 24385 (April 24, 2012) (Final Maine SIP approval); 77 FR 24027 and 24034 (April 20, 2012) (Proposed Montana FIP); and 77 FR 20894 (April 6, 2012) (Final North Dakota FIP). Other SIPs have rejected more effective controls such as SCR if those controls were found to provide little visibility improvement relative to significant cost.<E T="03">See, e.g.,</E>76 FR 80754, 80758 (Dec. 27, 2011) (Final Kansas SIP approval<SU>7</SU>
          <FTREF/>); 76 FR 16168 (March 22, 2011) (Proposed Oklahoma SIP approval<SU>8</SU>
          <FTREF/>). Therefore, our approval of NDEP's BART determination is consistent with EPA's action on other regional haze SIPs as well as proposed and final EPA FIPs.</P>
        <FTNT>
          <P>
            <SU>7</SU>Jeffrey Energy Center 1 and 2, La Cygne Unit 2.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>8</SU>EPA Region 6 proposed approval of the NO<E T="52">X</E>portions of the Oklahoma RH SIP. See Muskogee Station Unit 4 and 5, Sooner Station Units 1 and 2.</P>
        </FTNT>

        <P>In summary, EPA thoroughly and independently reviewed NDEP's basis for selecting a NO<E T="52">X</E>emissions rate achievable with SNCR as BART for RGGS rather than selecting SCR. In reaching this determination, NDEP weighed the small visibility improvement against the costs of the more effective control option. EPA calculated a lower average and incremental cost-effectiveness value than NDEP. EPA's modeling relied on the regulatory version of the CALPUFF modeling system and improved meteorological inputs, and predicted much less visibility improvement at GCNP from selecting SCR as NO<E T="52">X</E>BART (average: 0.38 dv, incremental: 0.10 dv). We also evaluated the visibility improvement that would result at four other Class I areas within 300 km of RGGS. Our modeling indicated that SCR would result in only minimal improvement at these four areas. Although we found shortcomings in NDEP's cost-effectiveness and visibility improvement values, we are taking final action to approve NDEP's conclusion that the small visibility improvement does not justify the cost of requiring SCR as NO<E T="52">X</E>BART. The comment before us does not change our decision that NDEP reasonably applied the statutory and regulatory factors to determine that the NO<E T="52">X</E>BART emission rate achievable from SNCR (0.20 lb/MMBtu) is BART for RGGS.</P>

        <P>EPA acknowledges that NDEP has greater discretion in applying the BART factors because RGGS is an electric generating unit smaller than 750 MW. In evaluating SIPs, EPA exercises judgment about SIP adequacy, not just to meet and maintain the National Ambient Air Quality Standards (NAAQS), but also to meet other requirements that do not have a specific ambient standard, such as visibility at Class I areas. In this case, Congress established a requirement for BART, and EPA is charged to assure that states meet the requirement. Here, contrary to the commenter's assertion, we are exercising judgment within the parameters laid out in the CAA and consistent with other actions nationally applying our regional haze regulations. Our interpretation of our regulations and the CAA, and our technical judgments, are entitled to deference.<E T="03">See, e.g.,</E>Michigan Dep't. of Envtl. Quality v. Browner, 230 F.3d 181 (6th Cir. 2000);<E T="03">Connecticut Fund for the Env't., Inc.</E>v.<E T="03">EPA,</E>696 F.2d 169 (2nd Cir. 1982);<E T="03">Voyageurs Nat'l Park Ass'n</E>v.<E T="03">Norton,</E>381 F.3d 759 (8th Cir. 2004);<E T="03">Mont. Sulphur &amp;</E>
          <E T="03">Chem. Co.</E>v.<E T="03">United States EPA,</E>2012 U.S. App. LEXIS 1056 (9th Cir. January 19, 2012).</P>
        <P>Therefore, we are finalizing our approval of NDEP's NO<E T="52">X</E>BART emissions rate of 0.20 lb/MMBtu, achievable using modern LNB with OFA and SNCR, for RGGS with two exceptions. For Unit 3, EPA is taking final action disapproving the SIP and promulgating a FIP setting the NO<E T="52">X</E>emissions limit at 0.20 lb/MMBtu. In addition, EPA is finalizing a 30 successive boiler operating day rolling NO<E T="52">X</E>emissions FIP limit on a heat input-weighted average across all three units rather than the 12-month rolling average NDEP included in its SIP, which EPA is disapproving.</P>
        <HD SOURCE="HD2">B. BART Evaluation Process</HD>
        <P>
          <E T="03">Comment 2:</E>EPA did not correctly follow the BART process for evaluating the five factors, which should have resulted in selecting SCR and an emission limit corresponding to 90 percent control of NO<E T="52">X.</E>
        </P>
        <P>
          <E T="03">Response 2:</E>EPA was not conducting a BART analysis, but was reviewing the adequacy and reasonableness of NDEP's BART analysis. NDEP noted that RGGS is not the size of a facility for which application of the BART guidelines is mandatory when performing its five-factor analysis. In evaluating the five factors, NDEP evaluated visibility<PRTPAGE P="50939"/>impacts by relying on visibility modeling included in the BART analysis submitted to NDEP by Nevada Energy. NDEP concluded that the small improvement in visibility that could be achieved with SCR did not justify the cost of SCR. We are generally approving the State's BART determination because we find NDEP's conclusions as to the appropriate level of BART controls to be reasonable..</P>

        <P>NDEP did not consider a SCR system that would achieve 90 percent reduction. For SCR, NDEP assumed the technology would achieve control efficiencies of 78 to 82 percent.<E T="03">See</E>Table 1 in 77 FR 21900 (April 12, 2012). The significance of the control efficiency assumption is that it affects the cost-effectiveness of the control technology. Cost-effectiveness ($/ton) is calculated by dividing the total annual cost ($) by the total annual tons of the pollutant reduced (tons). Assuming that two different levels of control (<E T="03">e.g.,</E>82 percent versus 90 percent) bear the same cost, higher control efficiency assumptions (<E T="03">e.g.,</E>90 percent) will result in lower cost per ton values because the denominator in the equation is larger.</P>
        <P>In reviewing the reasonableness of NDEP's NO<E T="52">X</E>BART determination, EPA assumed a higher efficiency than NDEP. EPA determined that SCR could reduce 85 percent of the NO<E T="52">X</E>emissions from the stack exhaust. EPA continues to find that the correct assumption for the removal efficiency in this case is 85 percent rather than 90 percent. One of the factors EPA considered is that RGGS is not limited in its coal purchase by a contract. RGGS may purchase coal on the spot market, meaning that the rank<SU>9</SU>

          <FTREF/>and nitrogen content of the coal combusted may vary. Bituminous coals from Utah have a very high btu per pound, which leads to higher NO<E T="52">X</E>produced during combustion. Coals with high nitrogen content also produce more NO<E T="52">X</E>when combusted.<SU>10</SU>
          <FTREF/>Since RGGS has access by rail line to a number of different ranks of coal with varying nitrogen, these factors can affect the emission level that can be achieved with the SCR.</P>
        <FTNT>
          <P>

            <SU>9</SU>Coal rank: The classification of coals according to their degree of progressive alteration from lignite to anthracite. In the United States, the standard ranks of coal include lignite, subbituminous coal, bituminous coal, and anthracite and are based on fixed carbon, volatile matter, heating value, and agglomerating (or caking) properties.<E T="03">http://205.254.135.7/tools/glossary/index.cfm?id=C</E>.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>10</SU>
            <E T="03">Journal of the Air &amp; Waste Management Association,</E>Volume 55, September 2005, Nitrogen Oxides Emission Control Options for Coal-Fired Electric Utility Boilers.</P>
        </FTNT>
        <P>Assuming<E T="03">arguendo</E>that EPA agreed with the comment that SCR should achieve 90 percent reduction continuously, we would not necessarily change our decision to approve NDEP's BART determination. As noted above, 90 percent control efficiency assumption would lead to a lower average and incremental cost-effectiveness. Even with that, NDEP's BART determination may have been reasonable based on weighing the small incremental visibility improvement of SCR against its incremental cost effectiveness. However, that issue was not before EPA in this action since EPA determined that only 85% reduction could be assumed in this case.</P>
        <P>
          <E T="03">Comment 3:</E>The commenter states that EPA did not follow the two-step process described in 40 CFR 51.301, which involves first identifying the best control technology for reducing NO<E T="52">X</E>and then applying the five factors to determine the best emissions limit achievable by that technology. A different emission limit should be chosen only if the technology fails to meet one of the five factors. Instead, EPA provided a list of all feasible methods to remove NO<E T="52">X,</E>ranked from least effective (worst) to most effective (best) based on their NO<E T="52">X</E>control efficiency. In sorting through the ranked list of control options to pick the BART control technology, the EPA started at the bottom, with the worst control, and moved up to the best control, thus corrupting the entire process.</P>
        <P>
          <E T="03">Response 3:</E>We reiterate that EPA was not conducting a BART determination for NO<E T="52">X</E>at RGGS. Rather, we were reviewing the adequacy of NDEP's BART analysis. NDEP noted, correctly, that RGGS is not the size of a facility for which application of the BART Guidelines is mandatory.</P>

        <P>The process described in the comment is comparable to the process for determining Best Available Control Technology (BACT) established in the Prevention of Significant Deterioration regulations. The states, however, are not required to use a top-down BACT process for making a BART determination. EPA stated in its final BART rule that, “States should retain the discretion to evaluate control options in whatever order they choose, so long as the State explains its analysis of the CAA factors.”<E T="03">See</E>70 FR 39130 (July 6, 2005). NDEP's determination to eliminate SCR from consideration as BART was based on weighing the small incremental visibility improvement from SCR against its incremental cost-effectiveness. This decision is within the discretion that a state can exercise in evaluating BART because it considered the appropriate factors and came to a reasonable determination, especially in this case which was not required to meet all aspects of EPA's BART guidelines.</P>
        <P>
          <E T="03">Comment 4:</E>The proposal does not demonstrate that a NO<E T="52">X</E>limit of 0.05 lb/MMBtu on a 30-day rolling average basis using SCR has any adverse impacts when subjected to a site-specific, case-by-case, five-factor analysis.</P>
        <P>
          <E T="03">Response 4:</E>The comment does not set forth the appropriate standard for a BART analysis. The process described by the commenter is analogous to a top-down control technology review conducted when determining the BACT for new major stationary sources or major modifications at existing stationary sources. As stated in Response 3, states are not required to use a top-down BACT process for making a BART determination, and states retain discretion to evaluate control options in whatever order they choose, as long as the state explains its analysis of the CAA factors.</P>
        <P>NDEP applied the five-factor BART analysis for NO<E T="52">X</E>at RGGS. NDEP weighed the five factors and concluded that the small visibility improvement expected from installation of SCR did not justify the incremental cost of SCR. EPA independently and thoroughly evaluated NDEP's determination. EPA also considered both average and incremental cost effectiveness as well as visibility improvement. Although we disagree with NDEP's calculation of the cost effectiveness of SCR compared to SNCR, our modeling analysis has demonstrated that the visibility improvement from SCR is very small at GCNP. The visibility improvement from SCR is only 0.38 dv, and the incremental visibility improvement between SCR and SNCR is only 0.10 dv. The annualized cost of SNCR is approximately $1.02 million per unit, and the annualized cost of SCR is approximately $3.8 million per unit, making it four times as expensive as SNCR.<SU>11</SU>
          <FTREF/>NDEP's determination that NO<E T="52">X</E>BART is an emissions rate that is achievable with SNCR is reasonable based on its weighing of the small visibility improvement against the cost of SCR.</P>
        <FTNT>
          <P>
            <SU>11</SU>EPA cost estimates, as listed in Appendix B of the TSD to our April 4 proposed action [Appendix B—Control Cost Estimate Revisions (September 2011 updated estimates)].</P>
        </FTNT>
        <P>
          <E T="03">Comment 5:</E>The statute and regulations do not require EPA to compare the best technology to the next best technology, and then reject the best technology based on incremental differences.</P>
        <P>
          <E T="03">Response 5:</E>EPA was not conducting its own BART analysis but was<PRTPAGE P="50940"/>reviewing the adequacy of NDEP's BART analysis. We agree with the commenter that the CAA and regional haze regulations do not require the state to reject the best technology based on incremental differences. However, we note that the state has the discretion to compare the incremental cost-effectiveness and incremental visibility improvement that will result from various technologies.<E T="03">See</E>70 FR 39129 (July 6, 2005). The state must evaluate the differences between control technologies reasonably and provide a justification for rejecting a technology. For the RGGS NO<E T="52">X</E>BART determination, we are finalizing our approval of NDEP's elimination of SCR as BART based on the small visibility improvement that would result at the GCNP weighed against its cost-effectiveness. In addition, NDEP noted that RGGS is the size of a facility for which application of the BART Guidelines is not mandatory. Thus, EPA concluded that NDEP's NO<E T="52">X</E>BART determination was reasonable.</P>
        <P>
          <E T="03">Comment 6:</E>EPA's consideration of the incremental visibility improvement between SCR and SNCR is contrary to law because there is no incremental visibility factor.</P>
        <P>
          <E T="03">Response 6:</E>We disagree with the comment that considering incremental visibility improvement is prohibited by the CAA or our regulations. The CAA and our regional haze regulations specify that the states or EPA must consider cost and visibility in the five-factor analysis. With respect to the cost factor, in promulgating the BART Guidelines, EPA responded to a comment stating: “In addition, the guidelines continue to include both average and incremental costs. We continue to believe that both average and incremental costs provide information useful for making control determinations.”<E T="03">See</E>70 FR 39127 (July 6, 2005). The commenter did not cite any regulatory language that would preclude incremental cost effectiveness in considering the cost of compliance. With respect to using incremental visibility improvement, EPA's response to comments on promulgating the BART guidelines stated:</P>
        
        <EXTRACT>

          <P>For example, a State can use the CALPUFF model to predict visibility impacts from an EGU in examining the option to control NO<E T="52">X</E>and SO<E T="52">2</E>with SCR technology and a scrubber, respectively. A comparison of visibility impacts might then be made with a modeling scenario whereby NO<E T="52">X</E>is controlled by combustion technology. If expected visibility improvements are significantly different under one control scenario than under another, then a State may use that information, along with information on the other BART factors, to inform its BART determination.<E T="03">See</E>70 FR 39129 (July 6, 2005).</P>
        </EXTRACT>
        

        <P>EPA's regulations allow states to compare incremental cost-effectiveness and visibility improvements between different technologies. The incremental visibility benefit is one way to compare the visibility improvements from various controls. For this BART determination, NDEP weighed the small incremental visibility improvement against the incremental cost effectiveness. Based on weighing these factors, NDEP provided a reasoned justification for choosing SNCR technology as NO<E T="52">X</E>BART for RGGS. EPA's independent analysis indicates that NDEP properly exercised its discretion in its process for weighing the small visibility improvement against the cost-effectiveness to reject SCR.</P>
        <HD SOURCE="HD2">C. BART Selection Criteria</HD>
        <P>
          <E T="03">Comment 7:</E>EPA did not provide the public with the criteria for making its BART determination, which appears inconsistent with the BART Guidelines and the intent of the Regional Haze Rule.</P>
        <P>
          <E T="03">Response 7:</E>As noted previously, EPA was not conducting its own BART analysis. We were reviewing the adequacy of NDEP's BART analysis. NDEP correctly noted that RGGS is not the size of a facility for which application of the BART Guidelines is mandatory.</P>

        <P>After receiving significant comments on our initial proposed rule (76 FR 36450), EPA independently and thoroughly reviewed NDEP's NO<E T="52">X</E>BART determination and concluded that NDEP provided the public with information regarding the criteria it was applying in making its BART determination. See “Revised NDEP BART Determination Review of NV Energy's Reid Gardner Generating Station Units 1, 2 and 3” revised October 22, 2009. NDEP adequately informed the public about the basis for its NO<E T="52">X</E>BART determination for RGGS, stating: “NDEP concluded, based on a review of the economic analysis, that the $/ton of NO<E T="52">X</E>removed increased significantly for the LNB with OFA and SNCR, and ROFA with SCR technologies without correspondingly significant improvements in visibility.”<E T="03">Id.</E>page 6. We are approving NDEP's determination that NO<E T="52">X</E>BART for RGGS is an emissions rate that is achievable by installing and operating LNB with OFA and SNCR because NDEP reasonably weighed the small incremental visibility improvement that would result from installation of SCR against its higher cost. NDEP adequately disclosed the factors it considered in its BART determination.</P>
        <P>
          <E T="03">Comment 8:</E>EPA fails to explain what level of incremental cost or visibility improvement would justify SCR. EPA should disclose the dollar limit and rationale for what constitutes “cost effectiveness,” and how its method is consistently applied across other facilities and states.</P>
        <P>
          <E T="03">Response 8:</E>EPA's approval of NDEP's BART determination is based on finding that the State adequately considered the appropriate factors for BART and provided a reasonable explanation for selecting a NO<E T="52">X</E>emissions rate that can be achieved with SNCR. NDEP explained that requiring SCR technology would result in a small incremental visibility improvement over SNCR when weighed against the incremental cost-effectiveness of SCR. As stated in our proposed approval, our modeling analysis was performed “in a manner that more closely adheres with current EPA regulatory guidance on CALPUFF modeling.”<E T="03">See</E>77 FR 21903 (April 12, 2012). Our analysis found that the average and incremental visibility improvement would be significantly lower than the visibility improvement relied upon by NDEP. In addition, EPA's revised cost analysis also indicated lower cost per ton of pollutant removed for SCR. In our analysis, we evaluated the cost-effectiveness of both technologies (SCR and SNCR with LNB and OFA) based on using the Control Cost Manual (CCM) for including appropriate costs.</P>

        <P>Our modeling shows that there would be a very small improvement in visibility at the GCNP from using SCR at RGGS. Based on this analysis we have determined that we can approve NDEP's determination that RGGS is required to comply with a NO<E T="52">X</E>emissions rate that can be achieved with SNCR as BART. Although the values that EPA considered for cost-effectiveness and visibility improvement differ from NDEP's analysis, we conclude NDEP's analysis reasonably weighed the small visibility improvement against the cost to eliminate SCR.</P>

        <P>One comment faults EPA, stating: “EPA further fails to explain what level of incremental cost or visibility improvement would justify the incremental cost.”<E T="03">See</E>Consortium Letter at page 6. EPA's BART guidelines did not establish bright-line thresholds for cost-effectiveness or visibility improvement, choosing to allow the states to exercise discretion to choose such values when appropriate. EPA stated:</P>
        
        <EXTRACT>
          <PRTPAGE P="50941"/>

          <P>We agree with the suggestion that the use of a comparison threshold, as is done for determining if BART-eligible sources should be subject to a BART determination, is an appropriate way to evaluate visibility improvement. However, we believe the States have flexibility in setting absolute thresholds, target levels of improvement, or de minimis levels since the deciview improvement must be weighed among the five factors, and States are free to determine the weight and significance to be assigned to each factor. For example, a 0.3, 0.5 or even 1.0 deciview improvement may merit stronger weighting in one case versus another, so one `bright line' may not be appropriate.<E T="03">See</E>70 FR 39129 (July 6, 2005).</P>
        </EXTRACT>
        
        <P>The same rationale should apply to cost-effectiveness. A bright line for cost-effectiveness may not be appropriate for every case and is dependent on case specific factors relating to economics and technology. In this case-by-case determination, the small amount of visibility improvement did not justify the cost of SCR.</P>
        <P>
          <E T="03">Comment 9:</E>EPA should explain the amount of incremental visibility improvement from SNCR to SCR that would justify the incremental cost increase of SCR, since no threshold is established in rulemaking or guidance.</P>
        <P>
          <E T="03">Response 9:</E>EPA is not setting generally applicable thresholds for incremental cost-effectiveness or visibility improvement for the reasons discussed above. EPA's BART Guidelines established presumptive emissions limits for SO<E T="52">2</E>and NO<E T="52">X</E>at electric generating units at facilities generating more than 750 MW. But EPA did not extend those presumptive emissions limits to electric generating units at smaller facilities, such as RGGS.</P>
        <P>EPA did not establish presumptive cost-effectiveness or visibility improvement values. EPA left weighing the factors to the state providing the state considered the five factors and exercised its discretion reasonably. Here, EPA proposed to find that NDEP reasonably eliminated SCR when it weighed the cost-effectiveness against the small incremental visibility improvement associated with requiring SCR rather than SNCR.</P>
        <P>BART is a case-by-case analysis that is initially evaluated by the states. Provided the state exercises its discretion reasonably and meets the requirements of the CAA and regulations, EPA may approve it. EPA's approval is not a ministerial act. In this rulemaking, EPA has carefully reviewed the basis for NDEP's determination. There is no reason, and none is provided in the comment, to support the assertion that EPA should establish thresholds for cost-effectiveness or visibility improvement, or challenge EPA's authority to approve a BART determination without them.</P>
        <P>
          <E T="03">Comment 10:</E>EPA's use of incremental visibility improvement to find that the cost of SCR is unjustified contradicts its finding that SCR is cost-effective (77 FR 21901).</P>
        <P>
          <E T="03">Response 10:</E>The commenter mischaracterizes EPA's proposed approval. The commenter is correct that we did not find the average and incremental cost-effectiveness of SCR to be cost prohibitive. Nevertheless, our evaluation supported NDEP's determination that the small amount of visibility improvement at GCNP did not justify the cost of SCR.</P>

        <P>The comment states that EPA has invented a “sixth factor” by “concatenating incremental visibility and incremental cost.”<E T="03">See</E>Consortium Letter, page 7. EPA has not invented an additional factor in the BART analysis but has approved a reasonable conclusion reached by NDEP when it weighed these two factors. NDEP's weighing two factors in the analysis does not create a sixth factor. The comment does not explain how weighing two factors in the five-factor analysis constitutes stringing together and joining those factors into a sixth factor.</P>
        <P>National Parks Conservation Association and Sierra Club wrote to EPA on June 29, 2012, concerning several regional haze actions. We are treating this letter as a late comment on our proposed action and including it in our docket as such. This letter indicates that NPCA and Sierra Club understand that our approval is based on finding that NDEP reasonably weighed visibility improvement and cost-effectiveness rather than inventing an additional BART factor. The letter provides:</P>
        
        <EXTRACT>

          <P>In many cases, EPA has summarily concluded that the incremental costs of concededly superior controls are not warranted by the visibility benefits determinations, which are routinely at odds with the Agency's own analysis demonstrating that installing the most effective controls will yield needed visibility improvements.<E T="03">See</E>Letter dated June 29, 2012, page 1.</P>
        </EXTRACT>
        

        <P>EPA's analyses are also based on weighing the five BART factors. The relative weight of the cost-effectiveness and visibility improvement varies depending on the facility at issue. For the three 100 megawatt units at RGGS, EPA concludes that notwithstanding differing conclusions about both cost and visibility improvement, NDEP reasonably determined that a small visibility improvement at GCNP does not justify the cost of SCR. Our approval of NDEP's NO<E T="52">X</E>BART determination on this basis is consistent with our actions on other regional haze SIPs.<E T="03">See, e.g.,</E>77 FR 24385 (Apr. 24, 2012) (Final Approval of Maine SIP).</P>
        <HD SOURCE="HD2">D. Cost Analysis</HD>
        <P>
          <E T="03">Comment 11:</E>The incremental cost difference between SCR and SNCR is less than EPA estimated because the cost of SCR is overestimated and the cost of SNCR is underestimated, making SCR look relatively more expensive than is the case.</P>
        <P>
          <E T="03">Response 11:</E>The comment does not provide any basis for EPA to revise its proposed approval of NDEP's NO<E T="52">X</E>BART determination. Our proposal stated:</P>
        
        <EXTRACT>

          <P>Based on our revised cost estimates, we do not consider these [EPA's] average and incremental cost effectiveness values for SCR and LNB and OFA as cost prohibitive. Our analysis of this factor indicates that costs of compliance (average and incremental) are not sufficiently large to warrant eliminating SCR from consideration. The incremental cost effectiveness values for Units 1 and 2 are around $4,500/ton. Although EPA does not consider this incremental cost prohibitive, we note that the State has certain discretion in weighing this cost. Because RGGS is not a facility over 750 MW and therefore not subject to EPA's presumptive BART limits, the State may exercise its discretion more broadly in this particular determination.<E T="03">See</E>77 FR 21901 (April 12, 2012).</P>
        </EXTRACT>
        
        <P>Even if the average and incremental cost-effectiveness between SCR and SNCR were somewhat different, NDEP's BART determination would still be approvable based on its reasonable weighing of the cost and visibility improvement factors.</P>
        <P>
          <E T="03">Comment 12:</E>EPA incorrectly estimated the cost-effectiveness of SCR (i.e., dollars per ton of emissions removed on an annual basis) by assuming that SCR can achieve an annual average emission no lower than 0.083 to 0.098 lb/MMBtu, despite substantial evidence that SCR can achieve 0.05 lb/MMBtu or lower on an annual basis.</P>
        <P>
          <E T="03">Response 12:</E>EPA disagrees with this comment. Regarding the accuracy of the cost effectiveness calculations of SCR, the commenter is correct that we estimated cost-effectiveness of SCR based on annual average emission rates ranging from 0.083 to 0.098 lb/MMBtu. However, we indicated in our proposal that we did not find SCR to be cost prohibitive at these emission rates. As a result, although we did consider more stringent SCR emission rates, such as 0.06 lb/MMBtu, when evaluating visibility improvement, we did not also revise our cost estimates to reflect the more stringent SCR emission rates, since we had already indicated that did not<PRTPAGE P="50942"/>find SCR to be cost prohibitive at the less stringent SCR emission rates. It would not have been in any way determinative to our decision to find that SCR was “even more” cost-effective or that the incremental cost-effectiveness value between SCR and SNCR was “even more” incrementally cost-effective.</P>
        <P>Regarding the emission rate achievable by SCR, the BART Guidelines state that: “[i]n assessing the capability of the control alternative, latitude exists to consider special circumstances pertinent to the specific source under review, or regarding the prior application of the control alternative” (70 FR 39166, July 6, 2005).<SU>12</SU>
          <FTREF/>In other words, the BART emission limits are not required to represent the maximum level of control ever achieved by a given technology. Limits set as BACT under the PSD program, or emission rates achieved from the operation of individual facilities under an emission trading program (e.g., Clean Air Interstate Rule), may provide important information, but should not be construed to automatically represent the most appropriate BART limit for all facilities.</P>
        <FTNT>
          <P>
            <SU>12</SU>Although NDEP's BART analysis for RGGS need not conform to the BART guidelines because the capacity of RGGS is smaller than 750 MW, the BART guidelines do provide useful guidance in setting appropriate BART limits.</P>
        </FTNT>

        <P>The coal composition is also an important component of estimating the NO<E T="52">X</E>emissions rate that a facility can achieve. RGGS is capable of purchasing coal on the spot market so there is likely to be variability in the NO<E T="52">X</E>emissions rate that would be achievable with SCR or SNCR. As previously discussed in the response to Comment 2, RGGS receives its coal by rail line and has access to different ranked coals with varying nitrogen content, which influence the NO<E T="52">X</E>concentration in the exhaust going to either SNCR or SCR controls. EPA's policy is to set an emission limit that would reasonably accommodate the various coal sources under these circumstances.</P>

        <P>EPA disagrees with this comment, but even if we accepted the premise that RGGS is capable of continuously meeting an emission limit of 0.05 lb/MMBtu, the comment does not provide any basis for EPA to change our approval of NDEP's SIP or our FIP. Assuming the cost of achieving 0.05 lb/MMBtu was equal to the cost of achieving 0.083 to 0.098 lb/MMBtu, using a NO<E T="52">X</E>emissions rate of 0.05 lb/MMBtu for SCR would likely result in lower average and incremental cost per ton values. Thus, we would calculate SCR to be more cost-effective (i.e., lower dollars per ton) on an average and incremental basis. As stated above, EPA did not determine the average or incremental cost of SCR to be prohibitive. Rather, EPA's approval of NDEP's determination that NO<E T="52">X</E>BART for RGGS for Units 1 and 2 is an emissions limit of 0.20 lb/MMBtu that can be achieved by installing and operating LNB with OFA and SNCR is based on our determination that NDEP reasonably weighed the visibility improvement against the other factors in rejecting SCR. EPA does not believe this analysis would be significantly altered by slightly lower incremental cost numbers.</P>
        <P>
          <E T="03">Comment 13:</E>EPA did not correct all the errors in the State's cost calculations for SCR (e.g., lack of multiple unit discounts, high reagent costs, incorrect capital recovery factor), which would have further reduced the cost and improved the cost effectiveness of SCR, thereby reducing the incremental cost difference with SNCR.</P>
        <P>
          <E T="03">Response 13:</E>EPA partially agrees with this comment. EPA's revised cost-effectiveness values are consistent with EPA's regulations and the parameters set forth in the CCM. EPA explained in promulgating the BART Guidelines that “[s]tates have flexibility in how they calculate costs.”<E T="03">See</E>70 FR at 39127 (July 6, 2005). A state may deviate from the Control Cost Manual provided its analysis is reasonable. EPA independently evaluated NDEP's cost-effectiveness calculation, stating in our proposal:</P>
        
        <EXTRACT>

          <P>We received several public comments that NDEP's cost calculations were overestimated and based on methodology inconsistent with EPA's Control Cost Manual (CCM). [footnote omitted]. We agree that NDEP included inappropriate costs and our analysis excludes those costs that are not allowed by the CCM.<E T="03">See</E>77 FR 21901 (April 12, 2012).</P>
        </EXTRACT>
        
        <P>Our proposal noted that we did not revise the cost-effectiveness calculation to adjust for all of the discrepancies with the CCM because based on our initial adjustments we found that SCR was not cost-prohibitive. It would not have been in any way determinative to our decision to find that SCR was “even more” cost-effective or that the incremental cost-effectiveness value between SCR and SNCR was “even more” incrementally cost-effective.</P>

        <P>As discussed above, EPA is approving NDEP's determination that NO<E T="52">X</E>BART is an emissions limit achievable with SNCR rather than SCR. The basis for our approval is that when NDEP weighed the small visibility improvement of moving from an emissions limit achievable with SNCR to one based on SCR against the incremental cost-effectiveness of SCR, NDEP determined that NO<E T="52">X</E>BART for RGGS for Units 1 and 2 is an emissions limit of 0.20 lb/MMBtu that can be achieved by installing and operating LNB with OFA and SNCR. NDEP has discretion in determining how to weigh the factors in reaching a BART decision under the CAA and regional haze regulations. NDEP's rationale for its decision, although based on different values than EPA calculated and modeled, was reasonable. Therefore, EPA is approving NDEP's determination.</P>
        <P>The comment implies that correcting each of the costs listed as incorrect and substituting a SCR emissions limit of 0.05 lb/MMBtu rather than 0.06 lb/MMBtu for SCR would yield a very low incremental cost difference between SCR and SNCR. However, that implication is not supported by the comment. The comment does not calculate an alternative average or incremental cost-effectiveness differential between SCR and SNCR. Therefore, EPA is approving NDEP's conclusion that the incremental cost-effectiveness is not justified when weighed against the small visibility improvement.</P>
        <P>
          <E T="03">Comment 14:</E>EPA did not consider the adverse non-air quality impacts of SNCR due to ammonia injection, which would increase the cost of SNCR and reduce the incremental cost difference with SCR.</P>
        <P>
          <E T="03">Response 14:</E>As noted previously, EPA was reviewing the State's BART determination to evaluate whether NDEP reasonably applied the requirements of the CAA and the regional haze regulations. EPA anticipates that ammonia emissions will be quite low because these units are equipped with baghouses and wet scrubbers that each can be expected to remove most ammonia slip associated with SNCR or SCR. To the extent the commenter is concerned that considering costs due to ammonia injection would lower the incremental cost-effectiveness value between SCR and SNCR, EPA reiterates that our proposed approval of NDEP's RGGS NO<E T="52">X</E>BART determination is not based on agreeing with NDEP that SCR is not cost-effective. EPA's proposed approval states that SCR is cost-effective. Nonetheless, the BART determination is a multiple-factor analysis. NDEP has discretion to determine how to weigh the factors. Our independent analysis of the two critical factors demonstrated that the NDEP reasonably weighed the cost of SCR controls against the small visibility improvement to determine that SNCR is NO<E T="52">X</E>BART for RGGS.<PRTPAGE P="50943"/>
        </P>
        <P>
          <E T="03">Comment 15:</E>In determining the average and incremental cost-effectiveness, EPA should have used actual emissions for the baseline value of each unit rather than each unit's annualized maximum permitted heat input multiplied by each unit's maximum permitted NO<E T="52">X</E>limit, which is closer to the potential to emit (PTE).</P>
        <P>
          <E T="03">Response 15:</E>EPA disagrees with this comment. Again, we note that EPA was not performing its own BART analysis, but was reviewing the adequacy of NDEP's BART analysis. The commenter is correct in noting that, in our review of NDEP's evaluation of the cost of compliance, we did not modify the estimate of baseline annual emissions that NDEP used in its cost calculations. We agree that NDEP's baseline more closely represents the sources' PTE, and results in higher baseline annual emissions than the methodology proposed by the commenter, which would rely almost entirely on past actual annual emissions. Because the regional haze regulations and BART Guidelines are not prescriptive regarding the calculation of baseline emissions, stating that “the baseline emissions rate should represent a realistic depiction of anticipated annual emissions for the source”<SU>13</SU>
          <FTREF/>, the commenter's proposed methodology is a potentially acceptable way to calculate baseline annual emissions. NDEP used a methodology that resulted in a higher estimate of baseline annual emissions, and we consider the methodology used by NDEP to be within the discretion afforded to states.</P>
        <FTNT>
          <P>
            <SU>13</SU>70 FR 39167, July 6, 2005.</P>
        </FTNT>
        <HD SOURCE="HD2">E. Cost of Compliance</HD>
        <P>
          <E T="03">Comment 16:</E>Use of EPA's<E T="03">Air Pollution Control Cost Manual</E>(“CCM”) is not required since RGGS is less than a 750 megawatt facility.</P>
        <P>
          <E T="03">Response 16:</E>EPA agrees that the states are not required to use the CCM for electric generating units smaller than 750 MW but that it is generally a good guide concerning costs to include and exclude. EPA performed an independent average and incremental cost-effectiveness calculation using the CCM to evaluate whether NDEP had reasonably weighed small visibility improvements against the incremental cost-effectiveness of requiring SCR rather than SNCR. EPA's analysis resulted in different cost-effectiveness and visibility improvement values. Although the values for these factors differed from NDEP's values, our analysis supported approving NDEP's NO<E T="52">X</E>BART determination to establish an emissions limit of 0.20 lb/MMBtu achievable from installing and operating SNCR.</P>
        <P>
          <E T="03">Comment 17:</E>EPA's<E T="03">Air Pollution Control Cost Manual</E>is out of date, and thus substantially underestimates current market costs of control technologies including SCR, which misrepresents the cost-effectiveness of chosen technologies.</P>
        <P>
          <E T="03">Response 17:</E>EPA disagrees with the comment. The CCM is a valuable resource to guide the states in evaluating costs that should be included or excluded. The states have discretion to rely on specific capital and annual cost information that is updated or specific to the facility under consideration.</P>
        <HD SOURCE="HD2">F. Visibility Analysis</HD>
        <P>
          <E T="03">Comment 18:</E>EPA underestimated the visibility improvement that would result from SCR by assuming an emissions limit of 0.06 lb/MMBtu (about 84 percent efficiency) instead of 0.05 lbs/MMBtu (about 90 percent efficiency) or lower, which was achieved at 21 coal-fired EGUs in 2011, 11 of which are dry-bottom, wall-fired units like RGGS.</P>
        <P>
          <E T="03">Response 18:</E>EPA disagrees with this comment. As noted previously, the purpose of EPA's independent analyses assessing anticipated visibility improvements and cost-effectiveness of SCR were to evaluate the reasonableness of NDEP's determination based on weighing small incremental visibility improvement against the incremental cost-effectiveness of SCR. The modeling that NDEP relied on assumed that SCR would reduce NO<E T="52">X</E>between 78 percent and 82 percent. Although NDEP's assumptions for SCR performance were within the range of emission rates achieved nationwide, EPA determined that for the purposes of visibility modeling and calculating cost-effectiveness of SCR, assuming an 85 percent reduction efficiency to meet an emissions limit of 0.06 lb/MMBtu was reasonable for RGGS. As noted by the commenter, other coal-fired facilities do achieve emission rates of 0.05 lb/MMBtu or lower, and some BART determinations have established a NO<E T="52">X</E>emission limit of 0.05 lb/MMBtu for SCR. However, as noted in Response 12, emissions information reported to EPA's Clean Air Markets program show that among coal-fired boilers operating with SCR nationwide, there is significant variability in actual NO<E T="52">X</E>emission rates achieved, ranging from below 0.05 to greater than 0.10 lb/MMBtu.</P>

        <P>EPA's assumption that RGGS could meet an emission limit of 0.06 lb/MMBtu is reasonable and within the expected performance range of SCR. The commenter does not provide a basis,<E T="03">e.g.,</E>modeling that compares visibility benefits expected from a NO<E T="52">X</E>limit of 0.05 versus 0.06 lb/MMBtu, to change our approval of NDEP's determination that NO<E T="52">X</E>BART for RGGS is an emissions limit of 0.20 lb/MMBtu that can be achieved by installing and operating LNB with OFA and SNCR for the three units at RGGS. EPA anticipates that even if we modeled SCR to achieve 0.05 lb/MMBtu instead of 0.06 lb/MMBtu, the visibility benefits of SCR would still be smaller than the benefits modeled by NDEP. For example, if the post-SCR impact at GCNP is scaled by 0.05/0.06, it decreases from 0.20 dv to 0.17 dv. Relative to the 0.59 dv base case impact, the benefit of SCR would correspondingly increase from 0.38 dv to 0.42 dv, roughly 10 percent higher. However, as discussed in the Technical Support Document (“TSD”) for our proposed rule, EPA's estimates of visibility impacts are more than 50 percent lower than those relied on by NDEP due to differences in modeling procedures. The net effect of using 0.05 lb/MMBtu as the NO<E T="52">X</E>emissions factor would not change the fact that EPA's estimate of SCR's benefit would remain substantially smaller than that estimated by NDEP. As noted in previous responses, NDEP determined that the visibility benefits of SCR based on its modeling do not justify the cost. Thus, additional modeling of SCR at a lower emission rate is not likely to change NDEP's consideration of the visibility factor, or our determination that NDEP's process for weighing the factors is reasonable.</P>
        <P>
          <E T="03">Comment 19:</E>The small visibility improvement from SCR is the result of underestimating the base case emissions and the amount of NO<E T="52">X</E>that could be removed by SCR. The commenter provided an alternative, larger estimate of SCR benefits by scaling the EPA modeling results.</P>
        <P>
          <E T="03">Response 19:</E>EPA disagrees with this comment. EPA performed an independent modeling analysis to ensure NDEP's NO<E T="52">X</E>BART determination was reasonable. Although estimates of the visibility improvement would be larger if EPA had used higher base case emissions, the scaling method used by the commenter does not accurately reflect the effect of a different base case, which would require new modeling. Even if the commenter's scaling method results were accurate, the estimated visibility improvement remains small. The scaled benefits of SCR provided by the commenter are 0.7 dv at GCNP, and 1.9 dv cumulatively over the five Class I areas; the comparable scaled figures for SNCR would be 0.4 dv and 1.1 dv<PRTPAGE P="50944"/>cumulatively. Thus, using the commenter's method, the incremental visibility improvement of SCR over SNCR would be 0.3 and 0.8 cumulatively. This is only slightly larger than the EPA-estimated benefit increase of 0.2 dv at GCNP, and is the same as the EPA-estimated benefit increase of 0.8 dv cumulatively. EPA's decision to approve NDEP's BART determination would be unchanged. See also the response to comment 20.</P>
        <P>
          <E T="03">Comment 20:</E>A commenter states that EPA used NDEP's NO<E T="52">X</E>baseline emission rates and control scenario emission rates to determine modeled visibility impacts. Because NDEP's emission rates are based on an annual average instead of a maximum 24-hr average, the commenter alleges that EPA underestimated visibility impacts, and provides its own estimate of 24-hr average baseline and control scenario emission rates.</P>
        <P>
          <E T="03">Response 20:</E>We acknowledge that we used NDEP's baseline and control scenario emission rates, based on annual average emission factors, in the visibility modeling supporting our proposed approval. As noted in our proposal, NDEP modified the baseline emission rates and control scenario emission rates that Nevada Energy included in the BART analysis.<SU>14</SU>
          <FTREF/>NDEP did not, however, perform updated modeling to determine the visibility improvement associated with the revised baseline emission rates and revised control scenario emission rates. The absence of modeling results complicated our ability to evaluate the adequacy of NDEP's analysis. To evaluate the adequacy of NDEP's analysis, we performed our visibility modeling using NDEP's revised baseline and revised control scenario emission rates. Again, the purpose of our modeling was to evaluate the adequacy of NDEP's analysis which is not directly comparable to any modeling decisions we might make in our own BART determination as part of a FIP, such as at San Juan Generating Station.</P>
        <FTNT>
          <P>
            <SU>14</SU>77 FR 21903.</P>
        </FTNT>
        <P>Regarding the use of control scenario emission rates based upon annual average emission factors (in lb/MMBtu) instead of 24-hour average emission factors (lb/MMBtu), we disagree with the commenter that these emission rates do not provide acceptable estimates of visibility benefits. The methodology for calculating control scenario model emission rates described by the commenter involves applying the estimated control efficiencies of a particular technology to the baseline (pre-control) model emission rate. While this methodology has been used by EPA, it does not preclude the use of other methodologies for calculating control scenario emissions. In the case of control technology performance, engineering estimates of a particular technology's post-control level of performance will often be expressed in terms of lb/MMBtu, either on a 30-day or annual average basis. To the extent that the engineering estimate represents a more accurate depiction of future anticipated emissions at a particular facility, it may be appropriate to rely on the specified post-control level of performance rather than on a control efficiency applied to a pre-control emission rate. In fact, using model emission rates based on an annual average, instead of a 24-hour average, results in more stringent emission rates. As an example, the RGGS Unit 1 model emission rate calculated by the commenter for SCR and LNB with OFA is 99 lb/hr.<SU>15</SU>
          <FTREF/>By comparison, the RGGS Unit 1 model emission rate used by EPA for this same technology is 73 lb/hr.<SU>16</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>15</SU>See Table 13, National Park Service comment letter dated June 4, 2012, from Susan Johnson (NPS) to Thomas Webb (EPA).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>16</SU>As used in Model Scenario c16 that is based on the more stringent level of SCR+LNB+OFA performance of 0.06 lb/MMBtu. See Technical Support Document, Appendix C, Docket Item No. EPA-R09-2010-0130-0077-11 and -15.</P>
        </FTNT>

        <P>Regarding the use of baseline emission rates based upon the annual average maximum instead of the 24-hour average maximum, we agree with the commenter that the BART guidelines state: “Use the 24-hour average actual emission rate from the highest emitting day of the meteorological period modeled (for the pre-control scenario).”<E T="03">See</E>70 FR 39170 (July 6, 2005). We note, however, that because the capacity of RGGS is less than 750 MW, NDEP is not required to adhere to the BART guidelines, and is therefore afforded some flexibility when evaluating the five statutory factors in its analysis of RGGS. We disagree that the maximum 24-hour average baseline emissions the commenter provided are representative of RGGS' historical performance.<SU>17</SU>

          <FTREF/>The baseline emissions provided by the commenter include a period of malfunction extending from January 8, 2003 to March 27, 2003. The result is maximum 24-hour average values that overstate RGGS' emission rate, and would therefore also overstate its visibility impact. If examining baseline emissions on a 24-hour average basis, we consider the WRAP NO<E T="52">X</E>emission rates indicated by the commenter to be more representative of maximum 24-hr average emissions,<SU>18</SU>
          <FTREF/>and note that these emission rates were included in our modeling analysis as Scenario c02.</P>
        <FTNT>
          <P>
            <SU>17</SU>Column 2 in Tables 11, 13, 15, National Park Service comment letter dated June 4, 2012, from Susan Johnson (NPS) to Thomas Webb (EPA).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>18</SU>Column 6, Table 11,<E T="03">ibid</E>.</P>
        </FTNT>
        <P>The commenter also provides scaled estimates of visibility benefit based upon its estimates of 24-hour average baseline and control scenario emission rates. Notwithstanding our disagreements with the commenter noted above, if we use the WRAP's maximum 24-hour average emission rate as the baseline instead of the NDEP baseline, and scale our control scenario visibility benefits accordingly, we estimate the following visibility improvement at Grand Canyon National Park:<SU>19</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>19</SU>Based on Visibility Method 8, best 20 percent days background, as summarized in Appendix E of the TSD from our April 4, 2012 proposed action. [Appendix E—RGGS_TSD_CALPUFF_tables.xls]</P>
        </FTNT>
        <GPOTABLE CDEF="s100,12,12,12,12,12,12" COLS="7" OPTS="L2,tp0,i1">
          <TTITLE/>
          <BOXHD>
            <CHED H="1">Scenario</CHED>
            <CHED H="1">Original</CHED>
            <CHED H="2">Visibility<LI>impact</LI>
            </CHED>
            <CHED H="2">Visibility improvement</CHED>
            <CHED H="3">Total (from baseline)</CHED>
            <CHED H="3">Incremental (from prev)</CHED>
            <CHED H="1">Scaled</CHED>
            <CHED H="2">Visability<LI>impact</LI>
            </CHED>
            <CHED H="2">Visibility improvement</CHED>
            <CHED H="3">Total (from baseline)</CHED>
            <CHED H="3">Incremental (from prev)</CHED>
          </BOXHD>
          <ROW RUL="s">
            <ENT I="22"/>
            <ENT O="oi0">dv</ENT>
            <ENT A="01">dv</ENT>
            <ENT O="oi0">dv</ENT>
            <ENT A="01">dv</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Baseline NO<E T="52">X</E>LNB+OFA</ENT>
            <ENT>0.59</ENT>
            <ENT/>
            <ENT/>
            <ENT>0.74</ENT>
            <ENT/>
            <ENT/>
          </ROW>
          <ROW>
            <ENT I="01">Enh. LNB+OFA</ENT>
            <ENT>0.51</ENT>
            <ENT>−0.08</ENT>
            <ENT>
              <E T="03">−0.08</E>
            </ENT>
            <ENT>0.64</ENT>
            <ENT>−0.10</ENT>
            <ENT>−0.10</ENT>
          </ROW>
          <ROW>
            <ENT I="01">SNCR+LNB+OFA</ENT>
            <ENT>0.37</ENT>
            <ENT>−0.21</ENT>
            <ENT>
              <E T="03">−0.13</E>
            </ENT>
            <ENT>0.47</ENT>
            <ENT>−0.27</ENT>
            <ENT>−0.17</ENT>
          </ROW>
          <ROW>
            <ENT I="01">ROFA+Rotamix</ENT>
            <ENT>0.31</ENT>
            <ENT>−0.28</ENT>
            <ENT>
              <E T="03">−0.06</E>
            </ENT>
            <ENT>0.39</ENT>
            <ENT>−0.35</ENT>
            <ENT>−0.08</ENT>
          </ROW>
          <ROW>
            <ENT I="01">SCR+LNB+OFA</ENT>
            <ENT>0.22</ENT>
            <ENT>−0.36</ENT>
            <ENT>
              <E T="03">−0.09</E>
            </ENT>
            <ENT>0.28</ENT>
            <ENT>−0.46</ENT>
            <ENT>−0.11</ENT>
          </ROW>
          <ROW>
            <PRTPAGE P="50945"/>
            <ENT I="01">SCR+LNB+OFA (0.06 lb/MMBtu)</ENT>
            <ENT>0.20</ENT>
            <ENT>−0.38</ENT>
            <ENT>
              <E T="03">−0.10</E>
            </ENT>
            <ENT>0.26</ENT>
            <ENT>−0.48</ENT>
            <ENT>−0.13</ENT>
          </ROW>
        </GPOTABLE>
        <P>As seen above, the scaled incremental visibility benefit of SCR (at 0.06 lb/MMBtu) compared to the next most stringent technology, ROFA w/Rotamix, is 0.13 deciviews, whereas the original EPA-estimated incremental visibility benefit is 0.10. This magnitude of incremental visibility benefit is still sufficiently small to justify approval of NDEP's analysis.</P>
        <HD SOURCE="HD2">G. Cumulative Visibility Benefit Analysis</HD>
        <P>We are providing a consolidated response to the following comments.</P>
        <P>
          <E T="03">Comment 21:</E>EPA based its BART determination on the visibility benefits of SCR at a single Class I area that has the maximum visibility impact, but should have considered cumulative impacts.</P>
        <P>
          <E T="03">Comment 22:</E>EPA did not consider the cumulative visibility benefits of SCR at all five Class I areas within 300 kilometers that are impacted by NO<E T="52">X</E>emissions from RGGS, in contrast to performing a cumulative visibility benefit analysis for Four Corners Power Plant and Navajo Generating Station.</P>
        <P>
          <E T="03">Comment 23:</E>EPA modeled the cumulative benefits of various BART controls across all five Class I areas as indicated in Appendix E, but did not include its cumulative modeling results in its proposed rule or TSD.</P>
        <P>
          <E T="03">Comment 24:</E>EPA's modeling results for SCR at all five parks in Appendix E showed a cumulative visibility benefit of 1.07 dv to 1.15 dv, which is significantly greater than the 0.38 dv benefits at GCNP alone.</P>
        <P>
          <E T="03">Comment 25:</E>NPS calculates that the cumulative visibility benefits at five class I areas is about 2.0 dv for SCR on all three units.</P>
        <P>
          <E T="03">Response 21-25:</E>Although EPA did not provide the cumulative sum of visibility impacts over the five nearby Class I areas in the Notice of Proposed Rulemaking, EPA did in fact take into account the impacts at all those areas, considering both the number of areas affected and the impacts and benefits occurring there. EPA provided the modeled visibility impacts and benefits at all five Class I areas in Appendix E of the Technical Support Document. We did not rely on the specific metric advocated by the commenters, i.e. the sum of benefits over the areas, but we did consider the estimated visibility impacts across all five Class I areas in evaluating the reasonableness of Nevada's BART determination. Given the magnitude of the impacts at these areas, however, we focused largely on the benefits at GCNP in our proposed action and placed little weight on the benefits at the remaining four Class I areas. The commenters note that the sum of the visibility benefits across all five impacted Class I areas from requiring SCR is just over 1 dv of improvement. However, as that improvement is spread out over five Class I areas, we do not consider this sufficient reason to reject the State's BART determination, especially in light of the incremental benefits of SCR. On a Class I by Class I basis, there would be little improvement in visibility from requiring SCR.</P>
        <P>The comment is correct that EPA provided information about the cumulative visibility improvement modeled for different BART scenarios in our Advanced Notice of Proposed Rulemaking for the Four Corners Power Plant and the Navajo Generating Station. EPA also provided information about the cumulative visibility improvement in our proposed and supplemental BART actions for Four Corners Power Plant. As we stated in those notices, EPA primarily relied on the benefits at the area with the greatest visibility improvement from controls, but we also considered impacts and benefits at nearby areas, including cumulative visibility benefits. EPA agrees that cumulative visibility benefits summed over multiple Class I areas may be a useful metric that can further inform a BART determination. Such an approach can be useful, for example, in simplifying a complex array of visibility impacts, especially where a source has significant impacts on multiple Class I areas. This approach, however, is not the only means of assessing visibility benefits over multiple Class I areas.</P>
        <P>In this action we are evaluating whether NDEP's BART determination for RGGS resulted in the appropriate level of control for that facility. EPA's independent analysis of the modeled visibility improvements at GCNP and all other impacted areas corroborated the results of the NDEP analysis.</P>
        <P>
          <E T="03">Comment 26:</E>Using the WRAP baseline (scenario 00) and EPA's emissions limit of 0.06 lb/MMBtu (scenario 16) for SCR produces a cumulative visibility benefit of 1.82 dv.</P>
        <P>
          <E T="03">Response 26:</E>We disagree with the commenter's use of the WRAP scenario 00 as the baseline against which to measure visibility improvement. Although Scenario 00 models the WRAP NO<E T="52">X</E>emission rate, it also models the WRAP PM<E T="52">10</E>and SO<E T="52">2</E>emission rates, which correspond to emission rates prior to installation of fabric filters (NDEP's PM<E T="52">10</E>BART determination) and wet flue gas desulfurization upgrades (NDEP's SO<E T="52">2</E>BART determination). Scenario 16 models PM<E T="52">10</E>and SO<E T="52">2</E>emission rates that account for the emission reductions associated with these control technologies. As a result, a comparison of Scenario 00 and 16 overestimates the benefit from SCR, because it also includes the visibility improvement associated with PM<E T="52">10</E>and SO<E T="52">2</E>emission reductions.</P>
        <HD SOURCE="HD2">H. CALPUFF Model</HD>
        <P>
          <E T="03">Comment 27:</E>EPA's accepted version of the CALPUFF model, introduced in 2007, is out of date given that new versions were updated in 2008, 2010, and 2011.</P>
        <P>
          <E T="03">Response 27:</E>EPA disagrees with the commenters that any new CALPUFF version should be used for the BART determination. EPA relied on version 5.8 of CALPUFF because it is the EPA-approved version in accordance with the Guideline on Air Quality Models (“GAQM”, 40 CFR 51, Appendix W, section 6.2.1.e); EPA updated the specific version to be used for regulatory purposes on June 29, 2007, including minor revisions as of that date; the approved CALPUFF modeling system includes CALPUFF version 5.8, level 070623, and CALMET version 5.8 level 070623. CALPUFF version 5.8 has been thoroughly tested and evaluated, and has been shown to perform consistently with the initial 2003 version in the analytical situations for which CALPUFF has been approved. Any other version would be considered an “alternative model”, subject to the provisions of GAQM section 3.2.2(b), requiring full model documentation, peer-review, and performance<PRTPAGE P="50946"/>evaluation. No such information for the later CALPUFF versions that meet the requirements of section 3.2.2(b) has been submitted to or approved by EPA. Experience has shown that when the full evaluation procedure is not followed, errors that are not immediately apparent can be introduced along with new model features. For example, changes introduced to CALMET to improve simulation of over-water convective mixing heights caused their periodic collapse to zero, even over land, so that CALPUFF concentration estimates were no longer reliable.<SU>20</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>20</SU>“CALPUFF Regulatory Update” Roger W. Brode, Presentation at Regional/State/LocalModelers Workshop, June 10-12, 2008, available at<E T="03">http://www.cleanairinfo.com/regionalstatelocalmodelingworkshop/archive/2008/agenda.htm.</E>
          </P>
        </FTNT>
        <P>In addition, the latest version of CALPUFF, 6.4, incorporates a detailed treatment of chemistry. EPA's promulgation of CALPUFF (68 FR 18440, April 15, 2003) as a “preferred” model approved it for use in analyses of Prevention of Significant Deterioration increment consumption and for complex wind situations, neither of which involve chemical transformations. For visibility impact analyses, which do involve chemical transformations, CALPUFF is considered a “screening” model, rather than a “preferred” model; this “screening” status is also described in the preamble to the BART Guidelines (70 FR 39123, July 6, 2005). The change to CALPUFF 6.4 is not a simple model update to address bug fixes, but a significant change in the model science that requires its own rulemaking with public notice and comment.</P>
        <P>Furthermore, it should be noted that the U.S. Forest Service and EPA review<SU>21</SU>
          <FTREF/>of CALPUFF version 6.4 results for a limited set of BART applications showed that differences in its results from those of version 5.8 are driven by two input assumptions and not associated with the chemistry changes in 6.4. Use of the so-called “full” ammonia limiting method and finer horizontal grid resolution are the primary drivers in the predicted differences in modeled visibility impacts between the model versions. These input assumptions have been previously reviewed by EPA and the FLMs and have been rejected based on lack of documentation, inadequate peer review, and lack of technical justification and validation.</P>
        <FTNT>
          <P>

            <SU>21</SU>“CALPUFF Status and Update” Tyler J. Fox, Presentation at Regional/State/LocalModelers Workshop, April 30-May 4, 2012, available at<E T="03">http://www.cleanairinfo.com/regionalstatelocalmodelingworkshop/archive/2012/agenda.htm.</E>
          </P>
        </FTNT>
        <P>EPA intends to conduct a comprehensive evaluation of the latest CALPUFF version along with other “chemistry” air quality models in consultation with the Federal Land Managers, including a full statistical performance evaluation, verification of its scientific basis, determination of whether the underlying science has been incorporated into the modeling system correctly, and evaluation of the effect on the regulatory framework for its use, including in New Source Review permitting. CALPUFF version 5.8 has already gone through this comprehensive evaluation process and remains the EPA-approved version, and is thus the appropriate version for EPA's corroboration of NDEP's BART determination.</P>
        <HD SOURCE="HD2">I. Nitrate Contribution to GCNP</HD>
        <P>We are providing a consolidated response to the following comments.</P>
        <P>
          <E T="03">Comment 28:</E>The WRAP's modeling supports the fact that NO<E T="52">X</E>is only a small contributor to visibility impairment at GCNP.</P>
        <P>
          <E T="03">Comment 29:</E>NO<E T="52">X</E>is mostly from cars and is not a major contributor to haze compared to other pollutants.</P>
        <P>
          <E T="03">Comment 30:</E>The contribution of nitrates from RGGS to haze at GCNP is so insignificant (0.01 percent) that any additional visibility benefit associated with SCR controls would yield an imperceptible improvement at GCNP for a significantly greater cost.</P>
        <P>
          <E T="03">Comment 31:</E>EPA's modeling did not take into account the fact that nearly 25,000 tons per year of NO<E T="52">X</E>has been eliminated from the emissions inventory due to closure or cancellation of three generating stations (Mohave, White Pine, and Toquop).</P>
        <P>
          <E T="03">Response 28-31:</E>Section 169A of the Clean Air Act requires BART determinations on BART-eligible EGUs regardless of trends or ambient visibility conditions. Application of BART is one means by which we can ensure that downward emission and visibility impairment trends continue. EPA modeling of NO<E T="52">X</E>from RGGS showed visibility impacts of up to 0.6 deciviews. This is not a negligible contribution to visibility impairment. EPA concluded in this case only that the incremental cost of SCR was not justified in relation to the visibility impact, not that the visibility impact was deminimis. Even if an individual pollutant or source category appears small to some commenters, the many segments of the emissions inventory together do cause visibility impairment, and each must be addressed in order to make progress towards the national goal of remedying visibility impairment from manmade pollution. EPA identifies stationary sources as an important category to evaluate in any BART analysis. In this case EPA approved the state's conclusion that SNCR was the appropriate BART control.</P>
        <HD SOURCE="HD2">J. Emissions Limits</HD>
        <P>
          <E T="03">Comment 32:</E>The proposed BART NO<E T="52">X</E>emissions limit (0.20 lb/MMBtu) appears to result in a very small reduction in actual emissions when compared to the performance of the three units over the past two years.</P>
        <P>
          <E T="03">Response 32:</E>EPA evaluated the potential NO<E T="52">X</E>emissions reduction based on RGGS's permitted emission limits. Actual emissions in tons per year can vary substantially for external reasons such as a downturn in economic conditions generally or unusual weather conditions. Until the permitted emissions limits for RGGS are lowered, RGGS may emit pollutants in those amounts at any time. Therefore, for RGGS the permitted emissions limit is the only enforceable and certain amount to use in calculating potential emission reductions. RGGS is no longer subject to a long-term coal contract and may purchase coal on the spot market. Different coals may also lead to a change in NO<E T="52">X</E>emissions. RGGS historically burned a very high BTU Utah bituminous coal that when combusted is expected to result in substantially higher NO<E T="52">X</E>emissions than sub-bituminous coals or lower BTU bituminous coals from Colorado. RGGS has recently added these two coals to the fuel mix at RGGS and the NO<E T="52">X</E>levels have decreased. EPA determined that the BART emission limit should be achieved when burning any of these coals. Setting a more stringent limit for BART achievable with LNB with OFA and SNCR could prevent RGGS from using only their historical Utah bituminous coal.</P>
        <P>
          <E T="03">Comment 33:</E>Given the sensitivity of boiler operation, size, and configuration, SNCR may not be able to achieve the prescribed level of performance (0.20 lb/MMBtu) on a consistent basis.</P>
        <P>
          <E T="03">Response 33:</E>NDEP will revise the enforceable permit limits to incorporate the NO<E T="52">X</E>BART emissions limit of 0.20 lb/MMBtu when SNCR is installed and operating at RGGS. EPA expects that Nevada Energy, as the operator of RGGS, will ensure the LNB with OFA and SNCR system is designed to achieve a lower emissions rate than 0.20 lb/MMBtu to insure the BART limit is achieved in practice. RGGS will also be required to continue to operate its continuous emissions monitoring<PRTPAGE P="50947"/>system for NO<E T="52">X</E>and report any excess emissions. If RGGS exceeds its emissions limit for NO<E T="52">X</E>, NDEP, EPA or a citizen may bring an enforcement action that can result in penalties and injunctive relief. EPA has determined based on the record provided by the state that NDEP should be able to consistently operate at an emissions limit below 0.20 lb/MMBtu and the comment does not provide a basis for us to revise the final SIP approval or FIP.</P>
        <HD SOURCE="HD2">K. Compliance Period</HD>
        <P>
          <E T="03">Comment 34:</E>Allowing five years from promulgation to install SNCR is excessive since SNCR can be installed in less than one year.</P>
        <P>
          <E T="03">Response 34:</E>We have reconsidered the compliance date in our proposal in response to this comment. The Nevada BART regulation requires that BART control measures at RGGS must be installed and operating “[o]n or before January 1, 2015; or (2) [n]ot later than 5 years after approval of Nevada's state implementation plan for regional haze by the United States Environmental Protection Agency Region 9,<E T="03">whichever occurs first.</E>” NAC 445B.22096(2)(a) (emphasis added). We approved this requirement into the SIP on March 26, 2012 (effective April 25, 2012). 77 FR 17340. Therefore, the SIP-approved BART implementation deadline at RGGS for all pollutants, including NO<E T="52">X</E>, is January 1, 2015. Consistent with this requirement, we are revising the compliance date in our FIP to January 1, 2015.</P>
        <HD SOURCE="HD2">L. Compliance Method</HD>
        <P>
          <E T="03">Comment 35:</E>Commenters state that the proposed method of demonstrating compliance with the NO<E T="52">X</E>emissions rate is more stringent than the rule requires; does not allow the facility to take credit for the times a unit is not in operation; does not provide a way for a unit that is out of compliance for a period of time to get back into compliance without a continued period of non-compliance; and is in contrast to the BART modeling protocol that directs the use of a pounds per hour limit as opposed to an emissions rate limit for all BART eligible units over a 24-hour basis. Commenters propose an alternate compliance demonstration methodology that consists of a unit-wide 30-calendar day rolling cap (in total lbs of NO<E T="52">X</E>). The cap is calculated based upon each unit operating continuously (24 hours/day for 30 days) at its permitted maximum hourly heat rate (MMBtu/hr), and at its BART NO<E T="52">X</E>emission limit (0.20 lb/MMBtu, which was determined based upon the operation of an ammonia injection system in conjunction with LNB). Compliance would then be demonstrated by calculating the unit-wide NO<E T="52">X</E>emission rate (in total lbs of NO<E T="52">X</E>) for the current calendar day, and adding it to the previous 29 calendar days' unit-wide NO<E T="52">X</E>emission rate (in total lbs of NO<E T="52">X</E>), and comparing this 30-calendar day total to the value of the unit-wide 30-calendar day rolling cap.</P>
        <P>
          <E T="03">Response 35:</E>We disagree with the commenters, and further do not consider the commenters' proposed compliance demonstration methodology to meet BART requirements. The Regional Haze Rule defines BART as “the best system of<E T="03">continuous</E>emission reduction for each pollutant”, and requires that “each source subject to BART maintain the control equipment required by the subpart and establish procedures to ensure such equipment is properly operated [* * *].”<SU>22</SU>
          <FTREF/>EPA's BART determinations for coal fired EGUs have set concentration limits, expressed as lb/MMBtu for the various visibility impairing pollutants averaged over a 30-day period. The proposed and finalized limit is more flexible than typical EPA BART determinations in that it allows the 3 units subject to BART to be averaged together to determine compliance (as requested by NDEP). BART limits are designed to be met at all times, not to provide for a facility to easily come back into compliance from a violation. We disagree that the facility requires additional flexibility to come back into compliance following an exceedance event, and consider a 30-day rolling average to provide a sufficient length of time to allow a facility to address and correct for perturbations that are reasonably expected to occur over the course of normal operations, and that cause short-term extra emissions.</P>
        <FTNT>
          <P>
            <SU>22</SU>40 CFR 51.301 and 40 CFR 51.308(e)(1)(v).</P>
        </FTNT>

        <P>Allowing a facility to take credit for times it is not operating, or for when it is not operating at maximum capacity, would allow RGGS to operate without the BART-required SNCR. SNCR can be expected to remove approximately 30 percent of the potential NO<E T="52">X</E>emissions. If the overall capacity (as evaluated against the maximum potential MW output) fell below 70 percent in any 30-day period, under the commenter's proposal RGGS would not have to operate the SNCR ammonia injection at all to meet its limit. Therefore, this would not meet the BART definition application of the best system of continuous emission reduction.</P>
        <P>EPA recognizes that there are differences between BART emission limits and the emissions modeled to determine visibility improvements. This is the result of the models requiring short-term emission projections and the need for BART limits to have practical averaging times. Short averaging periods such as 1-hour averages would better correlate to the modeled emissions, but EPA has determined that such a short averaging period is not practical for facilities subject to BART. EPA has, therefore, directed that averaging times should be no longer than 30-day rolling averages and should include all periods of startup, shutdown, and malfunction. As discussed above, an emission limit that allows a facility to take credit for non-operation could lead to substantially higher 24-hour emissions of visibility impairing pollutants because the facility could turn off its SNCR.</P>

        <P>Specifically, the proposed emission cap, in the form as described by the commenters, does not by itself ensure that the control equipment determined as BART is continuously operated. We acknowledge that the regional haze regulations provide flexibility in establishing requirements and procedures to ensure that control equipment is properly and continuously maintained, and that a mass emission cap could be an acceptable BART emission limitation. In its current form, however, the emission cap proposed by the commenters allows a potential scenario in which, for a given unit-wide 30-calendar day period, one unit could operate at a NO<E T="52">X</E>emission level of 0.40 lb/MMBtu in exchange for non-operation of another unit (essentially, operating that unit at 0.00 lb/MMBtu). An emission level of 0.40 lb/MMBtu corresponds to operation of LNB only, and does not reflect the operation of SNCR.</P>

        <P>In order to allow for better management of the elevated levels of emissions associated with startup events, we have revised our proposed determination method to be based on a boiler operating day average, rather than on a calendar day average. If based on a calendar day basis, the unit-wide 30-day rolling average could include as little as one hour of operation if the units were all offline for an outage that lasted longer than thirty days, because the first hour of operation would be the only data recorded in the last thirty calendar days. If based on a boiler operating day basis, the startup emissions “spike” would be averaged with emission data from before outage, which would reflect nonzero emissions values, rather than with data from during the outage, which would reflect zero emissions.<PRTPAGE P="50948"/>
        </P>
        <HD SOURCE="HD2">M. Environmental Compliance at RGGS</HD>
        <P>
          <E T="03">Comment 36:</E>Environmental controls, monitoring and practices have improved over recent years at the plant, which meets or exceeds all emissions limits, has reduced emissions, and has some of the lowest emissions of any plant in the country.</P>
        <P>
          <E T="03">Response 36:</E>EPA agrees in part with the comment. Nevada Energy has installed controls that substantially reduced the PM emissions from RGGS and installed ROFA on unit 4 to reduce NO<E T="52">X</E>emissions. Since monitoring began under the Acid Rain rules, RGGS has been among the coal fired electric generating units that emits the least SO<E T="52">2.</E>The same is not true for NO<E T="52">X</E>emissions from units 1, 2, and 3. By finalizing this action, EPA will ensure that there are also significant reductions in NO<E T="52">X</E>emissions from RGGS, as required by the Regional Haze rule and Section 169A of the CAA. Each of the 3 units at RGGS will reduce NO<E T="52">X</E>emissions from 0.46 lb/MMBtu to 0.20 lb/MMBtu.</P>
        <HD SOURCE="HD2">N. Health Effects</HD>
        <P>
          <E T="03">Comment 37:</E>Pollution from RGGS is causing a variety of health problems (e.g., allergies, respiratory illnesses, heart ailments, skin lesions, thyroid disorders, sinus infections) for the Moapa Band of Paiutes who reside directly adjacent to RGGS.</P>
        <P>
          <E T="03">Response 37:</E>In addition to regional haze, EPA assesses air quality regularly under the CAA with respect to setting and ensuring that areas in the country attain the NAAQS. The NAAQS are the health based standards that are set by EPA for the entire country. RGGS is located in an area that is designated as attainment for most of the NAAQS.<SU>23</SU>
          <FTREF/>This means that the air quality in the area surrounding RGGS is meeting most of the national health-based standards set by EPA.</P>
        <FTNT>
          <P>
            <SU>23</SU>Please see<E T="03">http://www.epa.gov/region09/air/maps/maps_top.html</E>for EPA Region IX air quality designations.</P>
        </FTNT>
        <P>Breathing air containing ozone can reduce lung function and increase respiratory symptoms, thereby aggravating asthma or other respiratory conditions. The area surrounding RGGS was designated nonattainment for the 1997 8-hour ozone NAAQS. The Clark County APCD and NDEP together are responsible for adopting and implementing programs for both stationary and mobile sources to bring the area into attainment for the 8-hour ozone NAAQS. On March 29, 2011, EPA published a direct final rule determining that the Clark County nonattainment area has attained the 1997 8-hour ozone NAAQS (76 FR 17343). Although the area has not been redesignated to attainment, the Clark County area continues to meet the 1997 8-hour ozone NAAQS. On April 30, 2012, EPA issued final designations for the 2008 8-hour ozone NAAQS. Clark County was designated attainment for this more stringent ozone standard.<SU>24</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>24</SU>
            <E T="03">http://www.epa.gov/ozonedesignations/2008standards/final/region9f.htm.</E>
          </P>
        </FTNT>
        <P>The Moapa Band of Paiutes resides on land adjacent to RGGS. The stacks at RGGS release the exhaust at a high elevation for the purpose of preventing excessive concentration of pollutants in the immediate vicinity of the plant.<SU>25</SU>

          <FTREF/>Because the area surrounding RGGS is meeting the health-based 1997 and 2008 ozone NAAQS, EPA expects that air quality in the area is protective of human health. Because today's actions require additional reductions in NO<E T="52">X</E>emissions, air quality will continue to improve. However, regardless of the attainment status of the surrounding area, EPA has been and will remain involved in efforts to ensure that the operation of RGGS meets all environmental requirements. Consequently, EPA believes it has implemented the executive order with respect to the Moapa Tribe in these actions implementing BART at RGGS.</P>
        <FTNT>
          <P>
            <SU>25</SU>EPA Good Engineering Practice (GEP)<E T="03">http://www.epa.gov/scram001/guidance/guide/gep.pdf.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD2">O. Environmental Justice</HD>
        <P>
          <E T="03">Comment 38:</E>EPA should implement Executive Order 13175 since pollution from RGGS is having a substantial direct effect on the tribe.</P>
        <P>
          <E T="03">Response 38:</E>Ground-level ozone has the ability to impact human health, and is a secondary pollutant formed from precursor gases, primarily volatile organic compounds (VOCs) and NO<E T="52">X</E>. However, monitored ozone concentrations throughout Clark County, including monitors nearest RGGS, meet the 2008 ozone standard. EPA considers the air quality in the vicinity of the plant to be protective of public health. However, regardless of the attainment status of the surrounding area, EPA has been and will remain involved in efforts to ensure that the operation of RGGS meets all environmental requirements.</P>
        <HD SOURCE="HD2">P. Economic Impacts</HD>
        <P>
          <E T="03">Comment 39:</E>The high cost of SCR could cause RGGS to close, which would harm the local economy through the loss of jobs, the loss of contracts, and the loss of customers for local businesses.</P>
        <P>
          <E T="03">Response 39:</E>EPA has determined that it is cost effective for RGGS to install and operate SNCR at Units 1, 2 and 3. Because EPA is not disapproving NDEP's determination to require SNCR rather than SCR, EPA does not expect the facility to close and thus the comment does not require additional response.</P>
        <HD SOURCE="HD1">III. Summary of EPA Actions</HD>

        <P>EPA is approving in part and disapproving in part the remaining portion of the Nevada Regional Haze SIP that implements the Regional Haze Rule that requires states to prevent any future and remedy any existing man-made impairment of visibility in mandatory Class I areas. EPA is approving Nevada's selection of a NO<E T="52">X</E>emissions limit of 0.20 lb/MMBtu as BART for Units 1 and 2 at RGGS. EPA is disapproving two provisions of Nevada's BART determination for NO<E T="52">X</E>at RGGS: the emissions limit for Unit 3 and the compliance method for all three units. EPA is promulgating a FIP to replace the disapproved provisions by establishing a BART emissions limit for NO<E T="52">X</E>of 0.20 lb/MMBtu at Unit 3, and a 30-day averaging period for compliance based on a heat input-weighted basis across all three units.</P>

        <P>EPA estimates the total, facility-wide capital costs of complying with this final BART determination for NO<E T="52">X</E>to be $26.5 million, and total annual costs (annualized capital costs plus additional operating costs) to be $4.3 million per year. The FIP requirements on Unit 3, which will require that unit to operate at 0.20 lb/MMBtu instead of 0.28 lb/MMBtu, will result in an additional operating cost of approximately $75,000 per year and will achieve a NO<E T="52">X</E>reduction of 393 tons per year. This final BART determination is expected to reduce emissions of NO<E T="52">X</E>by 58 percent, from 6,980 tons per year to 2,968 tons per year, resulting in a facility-wide average cost-effectiveness of about $1,078 per ton of NO<E T="52">X</E>removed. EPA anticipates that this investment will reduce visibility impairment caused by RGGS by an average of 48 percent at 5 Class I areas within 300 km of the facility. A detailed summary of the cost and visibility benefits were provided in the Technical Support Document for the proposed rulemaking.</P>
        <HD SOURCE="HD1">IV. Statutory and Executive Order Reviews</HD>
        <HD SOURCE="HD2">A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review</HD>

        <P>This action finalizes a SIP approval and a source-specific FIP for a single stationary source, the Reid Gardner<PRTPAGE P="50949"/>Generating Station in Nevada. This type of action is exempt from review under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993) and is therefore not subject to review under Executive Order 13563 (76 FR 3821, January 21, 2011).</P>
        <HD SOURCE="HD2">B. Paperwork Reduction Act</HD>

        <P>This action 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>Under the Paperwork Reduction Act, a “collection of information” is defined as a requirement for “answers to * * * identical reporting or recordkeeping requirements imposed on ten or more persons * * *.” 44 U.S.C. 3502(3)(A). Because the FIP portion of this rulemaking applies to a single facility, Reid Gardner Generating Station, the Paperwork Reduction Act does not apply.<E T="03">See</E>5 CFR 1320(c).</P>
        <P>Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information.</P>
        <P>An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9.</P>
        <HD SOURCE="HD2">C. Regulatory Flexibility Act</HD>
        <P>The Regulatory Flexibility Act (RFA) generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small organizations, and small governmental jurisdictions.</P>
        <P>For purposes of assessing the impacts of today's rule on small entities, small entity is defined as: (1) A small business as defined by the Small Business Administration's (SBA) regulations at 13 CFR 121.201; (2) a small governmental jurisdiction that is a government of a city, county, town, school district or special district with a population of less than 50,000; and (3) a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.</P>

        <P>After considering the economic impacts of this action on small entities, I certify that this final action will not have a significant economic impact on a substantial number of small entities. As the Reid Gardner Generating Station is not a small entity, the FIP for Reid Gardner Generating Station being finalized today does not impose any new requirements on small entities.<E T="03">See Mid-Tex Electric Cooperative, Inc.</E>v.<E T="03">FERC,</E>773 F.2d 327 (D.C. Cir. 1985).</P>
        <HD SOURCE="HD2">D. Unfunded Mandates Reform Act (UMRA)</HD>

        <P>This rule will impose an enforceable duty on the private sector owners of Reid Gardner Generating Station. However, this rule does not contain a Federal mandate that may result in expenditures of $100 million (in 1996 dollars) or more for State, local, and tribal governments, in the aggregate, or the private sector in any one year. EPA's estimate for the total annual cost for Reid Gardner Generating Station to lower its NO<E T="52">X</E>emissions limit at Unit 3 to 0.20 lb/MMBtu and for Units 1-3 to meet that NO<E T="52">X</E>emissions limit on a 30 successive boiler operating day rolling average does not exceed $100 million (in 1996 dollars) in any one year. Thus, this rule is not subject to the requirements of sections 202 or 205 of UMRA. This action is also not subject to the requirements of section 203 of UMRA because it contains no regulatory requirements that might significantly or uniquely affect small governments. This rule will not impose direct compliance costs on Nevada, and will not preempt Nevada law. This final action will reduce the emissions of one pollutant from a single source, Reid Gardner Generating Station.</P>
        <HD SOURCE="HD2">E. Executive Order 13132: Federalism</HD>

        <P>This action does not have federalism implications. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or in the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. This final action requires emission reductions of NO<E T="52">X</E>at a specific private stationary source located in Nevada. Thus, Executive Order 13132 does not apply to this action.</P>
        <HD SOURCE="HD2">F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments</HD>
        <P>Subject to the Executive Order 13175 (65 FR 67249, November 9, 2000) EPA may not issue a regulation that has tribal implications, that imposes substantial direct compliance costs, and that is not required by statute, unless the Federal government provides the funds necessary to pay the direct compliance costs incurred by tribal governments, or EPA consults with tribal officials early in the process of developing the proposed regulation and develops a tribal summary impact statement.</P>

        <P>EPA has concluded that this action may have tribal implications because the Reid Gardner Generating Station is located adjacent to the Moapa Band of Paiutes reservation and the Tribe has expressed its concerns directly to EPA on several occasions. However, this final action will neither impose substantial direct compliance costs on tribal governments, nor preempt Tribal law. This final rule requires Reid Gardner Generating Station, a major stationary source located in Nevada, to reduce emissions of NO<E T="52">X</E>under the BART requirement of the Regional Haze Rule. This will benefit air quality and the Moapa Band of Paiutes.</P>
        <P>EPA consulted with tribal officials early in the process of developing this regulation to permit them to have meaningful and timely input into its development. EPA met with President Anderson on August 11, 2011, and again on April 17, 2012, to hear the Tribe's concerns directly. In addition, EPA held one public hearing on the Moapa Reservation on May 3, 2011, to ensure that tribal members had the opportunity to provide oral testimony.</P>

        <P>The Moapa Band of Paiutes joined a consortium of environmental groups to submit comments on our proposed rule. The main concern expressed by the consortium was that EPA was not requiring Reid Gardner Generating Station to install and operate the top NO<E T="52">X</E>control option, selective catalytic reduction, as BART. The comments also raised potential health impacts and environmental justice concerns relative to the Moapa Band of Paiutes from not requiring the most stringent NO<E T="52">X</E>control option.</P>

        <P>EPA summarized and responded to comments from the environmental consortium and Moapa Band of Paiutes. Our responsibilities under the Executive Order must be exercised in the context of our role under the CAA, which is to<PRTPAGE P="50950"/>review NDEP's plan and determine if it meets the CAA requirements. We have done a thorough review and have determined that NDEP has adopted an emission limit that meets BART for RGGS. That emission limit can be met with SNCR instead of SCR, but RGGS will still have to install additional pollution control equipment that will reduce NO<E T="52">X</E>emissions. These emission reductions will not only improve visibility but will provide additional health benefits for the Moapa Band of Paiutes and other residents of Clark County. EPA has been and will remain involved in efforts to ensure that the operation of RGGS meets all environmental requirements.</P>
        <HD SOURCE="HD2">G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks</HD>
        <P>Executive Order 13045:<E T="03">Protection of Children From Environmental Health Risks and Safety Risks</E>(62 FR 19885, April 23, 1997), applies to any rule that: (1) Is determined to be economically significant as defined under Executive Order 12866, and (2) concerns an environmental health or safety risk that EPA has reason to believe may have a disproportionate effect on children. If the regulatory action meets both criteria, the Agency must evaluate the environmental health or safety effects of the planned rule on children, and explain why the planned regulation is preferable to other potentially effective and reasonably feasible alternatives considered by the Agency.</P>

        <P>This rule is not subject to Executive Order 13045 because it requires emissions reductions of NO<E T="52">X</E>from a single stationary source. Because this action only applies to a single source and is not a rule of general applicability, it is not economically significant as defined under Executive Order 12866, and the rule also does not have a disproportionate effect on children. However, to the extent that the rule will reduce emissions of NO<E T="52">X</E>, which contributes to ozone formation, the rule will have a beneficial effect on children's health by reducing air pollution that causes or exacerbates childhood asthma and other respiratory issues.</P>
        <HD SOURCE="HD2">H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use</HD>
        <P>This action is not subject to Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not a significant regulatory action under Executive Order 12866.</P>
        <HD SOURCE="HD2">I. National Technology Transfer and Advancement Act</HD>
        <P>Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113, 12 (10) (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards (VCS) in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. VCS are technical standards (e.g., materials specifications, test methods, sampling procedures and business practices) that are developed or adopted by the VCS bodies. The NTTAA directs EPA to provide Congress, through annual reports to OMB, with explanations when the Agency decides not to use available and applicable VCS.</P>
        <P>Consistent with the NTTAA, the Agency conducted a search to identify potentially applicable VCS. For the measurements listed below, there are a number of VCS that appear to have possible use in lieu of the EPA test methods and performance specifications (40 CFR part 60, Appendices A and B) noted next to the measurement requirements. It would not be practical to specify these standards in the current rulemaking due to a lack of sufficient data on equivalency and validation and because some are still under development. However, EPA's Office of Air Quality Planning and Standards is in the process of reviewing all available VCS for incorporation by reference into the test methods and performance specifications of 40 CFR Part 60, Appendices A and B. Any VCS so incorporated in a specified test method or performance specification would then be available for use in determining the emissions from this facility. This will be an ongoing process designed to incorporate suitable VCS as they become available.</P>
        
        <FP SOURCE="FP-1">Particulate Matter Emissions—EPA Methods 1 through 5</FP>
        <FP SOURCE="FP-1">Opacity—EPA Method 9 and Performance Specification Test 1 for Opacity Monitoring</FP>
        <FP SOURCE="FP-1">NO<E T="52">X</E>Emissions—Continuous Emissions Monitors</FP>
        <HD SOURCE="HD2">J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations</HD>
        <P>Executive Order 12898 (59 FR 7629, February 16, 1994), establishes federal executive policy on environmental justice. Its main provision directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States.</P>
        <P>EPA has determined that this final rule will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations because it increases the level of environmental protection for all affected populations without having any disproportionately high and adverse human health or environmental effects on any population, including any minority or low-income population. This rule requires emissions reductions of one pollutant from a single stationary source, Reid Gardner Generating Station.</P>
        <HD SOURCE="HD2">K. Congressional Review Act</HD>
        <P>The Congressional Review Act, 5 U.S.C. 801<E T="03">et seq.,</E>as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. Section 804 exempts from section 801 the following types of rules (1) rules of particular applicability; (2) rules relating to agency management or personnel; and (3) rules of agency organization, procedure, or practice that do not substantially affect the rights or obligations of non-agency parties. 5 U.S.C. 804(3). EPA is not required to submit a rule report regarding today's action under section 801 because this is a rule of particular applicability and only applies to one facility, the Reid Gardner Generating Station.</P>
        <HD SOURCE="HD2">L. Petitions for Judicial Review</HD>

        <P>Under section 307(b)(1) of the Clean Air Act, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by October 22, 2012. Filing a petition for reconsideration by the administrator of this final rule does not affect the finality of this rule for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (<E T="03">See</E>CAA section 307(b)(2)).</P>
        <LSTSUB>
          <PRTPAGE P="50951"/>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Nitrogen oxides, Particulate matter, Reporting and recordkeeping requirements, Sulfur dioxide, Visibility, Volatile organic compounds.</P>
        </LSTSUB>
        <SIG>
          <DATED>Dated: August 13, 2012.</DATED>
          <NAME>Lisa P. Jackson,</NAME>
          <TITLE>Administrator.</TITLE>
        </SIG>
        <P>Part 52, chapter I, title 40 of the Code of Federal Regulations is amended as follows:</P>
        <REGTEXT PART="52" TITLE="40">
          <PART>
            <HD SOURCE="HED">PART 52—[AMENDED]</HD>
          </PART>
          <AMDPAR>1. The authority citation for part 52 continues to read as follows:</AMDPAR>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>42 U.S.C. 7401<E T="03">et seq.</E>
            </P>
          </AUTH>
        </REGTEXT>
        <REGTEXT PART="52" TITLE="40">
          <SUBPART>
            <HD SOURCE="HED">Subpart DD—Nevada</HD>
          </SUBPART>
          <AMDPAR>2. Section 52.1470 is amended by:</AMDPAR>
          <AMDPAR>a. In paragraph (c), Table 1 revising the entry for “445B.22096.”</AMDPAR>
          <AMDPAR>b. In the table in paragraph (e), revising the entry for “Nevada Regional Haze State Implementation Plan (October 2009)”.</AMDPAR>
          <P>The revised text reads as follows:</P>
          <SECTION>
            <SECTNO>§ 52.1470</SECTNO>
            <SUBJECT>Identification of plan.</SUBJECT>
            <STARS/>
            <P>(c) * * *</P>
            <GPOTABLE CDEF="s100,r50,xs40,r50,r100" COLS="5" OPTS="L1,i1">
              <TTITLE>Table 1—EPA-Approved Nevada Regulations and Statutes</TTITLE>
              <BOXHD>
                <CHED H="1">State citation</CHED>
                <CHED H="1">Title/subject</CHED>
                <CHED H="1">State<LI>effective date</LI>
                </CHED>
                <CHED H="1">EPA approval date</CHED>
                <CHED H="1">Additional explanation</CHED>
              </BOXHD>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
              <ROW>
                <ENT I="01">445B.22096, excluding the NO<E T="52">X</E>averaging time and control type for units 1, 2 and 3 and the NO<E T="52">X</E>emission limit for unit 3 in sub-paragraph (1)(c), all of which EPA has disapproved</ENT>
                <ENT>Control measures constituting BART; limitations on emissions</ENT>
                <ENT>1/28/10</ENT>
                <ENT>[Insert page number where the document begins 8/23/12]</ENT>

                <ENT>Included in supplemental SIP revision submitted on September 20, 2011, and approved as part of approval of Nevada Regional Haze SIP. Excluding the NO<E T="52">X</E>averaging time and control type for units 1, 2 and 3 and the NO<E T="52">X</E>emission limit for unit 3 of NV Energy's Reid Gardner Generating Station, all of which EPA has disapproved.</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
            </GPOTABLE>
            <STARS/>
            <P>(e) * * *</P>
            <GPOTABLE CDEF="s100,r50,xs40,r50,r100" COLS="5" OPTS="L1,i1">
              <TTITLE/>
              <BOXHD>
                <CHED H="1">Name of SIP provision</CHED>
                <CHED H="1">Applicable geographic or nonattainment area</CHED>
                <CHED H="1">State<LI>submittal date</LI>
                </CHED>
                <CHED H="1">EPA approval date</CHED>
                <CHED H="1">Explanation</CHED>
              </BOXHD>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
              <ROW>
                <ENT I="01">Nevada Regional Haze State Implementation Plan (October 2009), excluding the BART determination for NO<E T="52">X</E>at Reid Gardner Generating Station in sections 5.5.3, 5.6.3 and 7.2, which EPA has disapproved</ENT>
                <ENT>State-wide</ENT>
                <ENT>11/18/09</ENT>
                <ENT>[Insert page number where the document begins 8/23/12]</ENT>
                <ENT>Excluding Appendix A (“Nevada BART Regulation”). The Nevada BART regulation, including NAC 445B.029, 445B.22095, and 445B.22096, is listed above in 40 CFR 52.1470(c).</ENT>
              </ROW>
              <ROW>
                <ENT I="22"/>
              </ROW>
              <ROW>
                <ENT I="28">*******</ENT>
              </ROW>
            </GPOTABLE>
          </SECTION>
        </REGTEXT>
        <REGTEXT PART="52" TITLE="40">
          <AMDPAR>3. Section 52.1488 is amended by:</AMDPAR>
          <AMDPAR>a. Revising paragraph (e).</AMDPAR>
          <AMDPAR>b. Adding paragraph (f).</AMDPAR>
          <P>The revision and addition read as follows:</P>
          <SECTION>
            <SECTNO>§ 52.1488</SECTNO>
            <SUBJECT>Visibility protection.</SUBJECT>
            <STARS/>
            <P>(e)<E T="03">Approval.</E>On November 18, 2009, the Nevada Division of Environmental Protection submitted the “Nevada Regional Haze State Implementation Plan.” With the exception of the BART determination for NO<E T="52">X</E>at Reid Gardner Generating Station in sections 5.5.3, 5.6.3 and 7.2; the NO<E T="52">X</E>averaging time and control type for units 1, 2 and 3 in sub-paragraph (1)(c) of Nevada Administrative Code section 445B.22096; and the NO<E T="52">X</E>emission limit for unit 3 in sub-paragraph (1)(c) of Nevada Administrative Code section 445B.22096; the Nevada Regional Haze State Implementation Plan, as supplemented and amended on February 18, 2010 and September 20, 2011, meets the applicable requirements of Clean Air Act sections 169A and 169B and the Regional Haze Rule in 40 CFR 51.308.</P>
            <P>(f)<E T="03">Source-specific federal implementation plan for regional haze at Reid Gardner Generating Station Units 1, 2 and 3.</E>This paragraph (f) applies to each owner and operator of the coal-fired electricity generating units (EGUs) designated as Units 1, 2, and 3 at the Reid Gardner Generating Station in Clark County, Nevada.</P>
            <P>(1)<E T="03">Definitions.</E>Terms not defined below shall have the meaning given to them in the Clean Air Act or EPA's regulations implementing the Clean Air Act. For purposes of this paragraph (f):</P>
            <P>
              <E T="03">Ammonia injection</E>shall include any of the following: anhydrous ammonia, aqueous ammonia or urea injection.<PRTPAGE P="50952"/>
            </P>
            <P>
              <E T="03">Boiler operating day</E>means any 24-hour period between 12:00 midnight and the following midnight during which any fuel is combusted at any of the units identified in paragraph (f) of this section.</P>
            <P>
              <E T="03">Combustion controls</E>shall mean new low NO<E T="52">X</E>burners, new overfire air, and/or rotating overfire air.</P>
            <P>
              <E T="03">Continuous emission monitoring system</E>or<E T="03">CEMS</E>means the equipment required by 40 CFR Part 75 to determine compliance with this paragraph (f).</P>
            <P>
              <E T="03">NO</E>
              <E T="52">X</E>means nitrogen oxides expressed as nitrogen dioxide (NO<E T="52">2</E>).</P>
            <P>
              <E T="03">Owner/operator</E>means any person who owns or who operates, controls, or supervises an EGU identified in paragraph (f) of this section.</P>
            <P>
              <E T="03">Unit</E>means any of the EGUs identified in paragraph (f) of this section.</P>
            <P>
              <E T="03">Unit-wide</E>means all of the EGUs identified in paragraph (f) of this section.</P>
            <P>
              <E T="03">Valid data</E>means data recorded when the CEMS is not out-of-control as defined by part 75 and which meets the relative accuracy requirements of this paragraph.</P>
            <P>(2)<E T="03">Emission limitations—</E>the total discharge of NOx from Units 1, 2, and 3, expressed as NO<E T="52">2,</E>shall not exceed 0.20 lb/MMBtu determined over a 30 successive boiler operating day period. For each boiler operating day, hourly emissions of NO<E T="52">2</E>, in pounds of NO<E T="52">2</E>, for units 1, 2 and 3 for that day shall be summed together. For each boiler operating day, heat input, in millions of BTU, for units 1, 2 and 3 for that day shall be summed together. Each day the 30 successive boiler operating day NO<E T="52">2</E>emission rate, in lb/MMBtu, shall be determined by adding together that day and the preceding 29 boiler operating days' pounds of NO<E T="52">2</E>and dividing that total pounds of NO<E T="52">2</E>by the sum of the heat input during the same 30-day period.</P>
            <P>(3)<E T="03">Compliance date.</E>The owners and operators subject to this section shall comply with the emissions limitations and other requirements of this section by January 1, 2015 and thereafter.</P>
            <P>(4)<E T="03">Testing and monitoring.</E>(i) At all times after the compliance date specified in paragraph (f)(3) of this section, the owner/operator of each unit shall maintain, calibrate, and operate a CEMS, in full compliance with the requirements found at 40 CFR part 75, to accurately measure NO<E T="52">X,</E>diluent, and stack gas volumetric flow rate from each unit. In addition to these requirements, relative accuracy test audits shall be performed for both the NO<E T="52">2</E>pounds per hour measurement and the hourly heat input measurement. Each such relative accuracy test audit shall have a relative accuracy, as defined in 40 CFR part 60, appendix F, section 2.6, of less than 20 percent. This testing shall be evaluated each time the 40 CFR part 75 monitors undergo relative accuracy testing. Compliance with the emission limit for NO<E T="52">2</E>shall be determined by using valid data that is quality assured in accordance with the requirements of this paragraph.  (ii) If a valid NO<E T="52">X</E>pounds per hour or heat input is not available for any hour for a unit, that heat input and NO<E T="52">X</E>pounds per hour shall not be used in the calculation of the unit-wide rolling 30 successive boiler operating day average. Each unit shall obtain at least 90 percent hours of data over each calendar quarter. 40 CFR part 60 Appendix A Reference Methods may be used to supplement the part 75 monitoring.</P>
            <P>(iii) Upon the effective date of the unit-wide NO<E T="52">X</E>limit, the owner or operator shall have installed CEMS software that meets with the requirements of this section for measuring NO<E T="52">2</E>pounds per hour and calculating the unit-wide 30 successive boiler operating day average as required in paragraph (f)(2) of this section.</P>
            <P>(iv) Upon the completion of installation of ammonia injection on any of the three units, the owner or operator shall install, and thereafter maintain and operate, instrumentation to continuously monitor and record levels of ammonia consumption for that unit.</P>
            <P>(5)<E T="03">Notifications.</E>(i) The owner or operator shall notify EPA within two weeks after completion of installation of combustion controls or ammonia injection on any of the units subject to this section.</P>
            <P>(ii) The owner or operator shall also notify EPA of initial start-up of any equipment for which notification was given in paragraph (f)(5)(i) of this section.</P>
            <P>(6)<E T="03">Equipment Operations.</E>After completion of installation of ammonia injection on any of the three units, the owner or operator shall inject sufficient ammonia to minimize the NO<E T="52">X</E>emissions from that unit while preventing excessive ammonia emissions.</P>
            <P>(7)<E T="03">Recordkeeping.</E>The owner or operator shall maintain the following records for at least five years:  (i) For each unit, CEMS data measuring NO<E T="52">X</E>in lb/hr, heat input rate per hour, the daily calculation of the unit-wide 30 successive boiler operating day rolling lb NO<E T="52">2</E>/MMbtu emission rate as required in paragraph (f)(2) of this section. (ii) Records of the relative accuracy test for NO<E T="52">X</E>lb/hr measurement and hourly heat input</P>
            <P>(iii) Records of ammonia consumption for each unit, as recorded by the instrumentation required in paragraph (f)(4)(iv) of this section.</P>
            <P>(8)<E T="03">Reporting.</E>Reports and notifications shall be submitted to the Director of Enforcement Division, U.S. EPA Region IX, at 75 Hawthorne Street, San Francisco, CA 94105. Within 30 days of the end of each calendar quarter after the effective date of this section, the owner or operator shall submit a report that lists the unit-wide 30 successive boiler operating day rolling lb NO<E T="52">2</E>/MMBtu emission rate for each day. Included in this report shall be the results of any relative accuracy test audit performed during the calendar quarter.</P>
            <P>(9)<E T="03">Enforcement.</E>Notwithstanding any other provision in this implementation plan, any credible evidence or information relevant as to whether the unit would have been in compliance with applicable requirements if the appropriate performance or compliance test had been performed, can be used to establish whether or not the owner or operator has violated or is in violation of any standard or applicable emission limit in the plan.</P>
          </SECTION>
        </REGTEXT>
        
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20503 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </RULE>
    <RULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <CFR>50 CFR Part 660</CFR>
        <DEPDOC>[Docket No. 120312182-2239-02]</DEPDOC>
        <RIN>RIN 0648-XC166</RIN>
        <SUBJECT>Fisheries Off West Coast States; Coastal Pelagic Species Fisheries; Closure</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Temporary rule; closure.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>NMFS is prohibiting directed fishing for Pacific sardine off the coasts of Washington, Oregon and California. This action is necessary because the directed harvest allocation total for the second seasonal period (July 1-September 14) is projected to be reached by the effective date of this rule. From the effective date of this rule until September 15, 2012, Pacific sardine may be harvested only as part of the live bait fishery or incidental to other fisheries; the incidental harvest of Pacific sardine is limited to 30-percent by weight of all<PRTPAGE P="50953"/>fish per trip. Fishing vessels must be at shore and in the process of offloading at 12:01 a.m. Pacific Daylight Time, August 23, 2012.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Effective 12:01 a.m. Pacific Daylight Time (PDT) August 23, 2012, through 11:59 p.m., September 14, 2012.</P>
        </EFFDATE>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Joshua Lindsay, Southwest Region, NMFS, (562) 980-4034.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>This document announces that based on the best available information recently obtained from the fishery and information on past effort, the directed fishing harvest allocation for the second allocation period (July 1-September 14) will be reached and therefore directed fishing for Pacific sardine is being closed until September 15, 2012. Fishing vessels must be at shore and in the process of offloading at the time of closure. From 12:01 a.m., August 23, through September 14, 2012, Pacific sardine may be harvested only as part of the live bait fishery or incidental to other fisheries, with the incidental harvest of Pacific sardine limited to 30-percent by weight of all fish caught during a trip.</P>

        <P>NMFS manages the Pacific sardine fishery in the U.S. exclusive economic zone (EEZ) off the Pacific coast (California, Oregon, and Washington) in accordance with the Coastal Pelagic Species (CPS) Fishery Management Plan (FMP). Annual specifications published in the<E T="04">Federal Register</E>establish the harvest guideline (HG) and allowable harvest levels for each Pacific sardine fishing season (January 1-December 31). If during any of the seasonal allocation periods the applicable adjusted directed harvest allocation is projected to be taken only incidental harvest is allowed, and for the remainder of the period, any incidental Pacific sardine landings will be counted against that period's incidental set aside. In the event that an incidental set-aside is projected to be attained, all fisheries will be closed to the retention of Pacific sardine for the remainder of the period via appropriate rulemaking.</P>

        <P>Under 50 CFR 660.509, if the total HG or these apportionment levels for Pacific sardine are reached at any time, NMFS is required to close the Pacific sardine fishery via appropriate rulemaking and it is to remain closed until it re-opens either per the allocation scheme or the beginning of the next fishing season. In accordance with § 660.509 the Regional Administrator shall publish a notice in the<E T="04">Federal Register</E>announcing the date of the closure of the directed fishery for Pacific sardine.</P>
        <P>The above in-season harvest restrictions are not intended to affect the prosecution of the live bait portion of the Pacific sardine fishery.</P>
        <HD SOURCE="HD1">Classification</HD>
        <P>This action is required by 50 CFR 660.509 and is exempt from Office of Management and Budget review under Executive Order 12866.</P>
        <P>NMFS finds good cause to waive the requirement to provide prior notice and opportunity for public comment pursuant to the authority set forth at 5 U.S.C. 553(b)(B) for the closure of the directed harvest of Pacific sardine. For the reasons set forth below, notice and comment procedures are impracticable and contrary to the public interest. For the same reasons, NMFS also finds good cause under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness for this action. This measure responds to the best available information and is necessary for the conservation and management of the Pacific sardine resource. A delay in effectiveness would cause the fishery to exceed the in-season harvest level. These seasonal harvest levels are important mechanisms in preventing overfishing and managing the fishery at optimum yield. The established directed and incidental harvest allocations are designed to allow fair and equitable opportunity to the resource by all sectors of the Pacific sardine fishery and to allow access to other profitable CPS fisheries, such as squid and Pacific mackerel.</P>
        <P>Many of the same fishermen who harvest Pacific sardine rely on these other fisheries for a significant portion of their income.</P>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>16 U.S.C. 1801<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Lindsay Fullenkamp,</NAME>
          <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20670 Filed 8-17-12; 4:15 pm]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </RULE>
  </RULES>
  <VOL>77</VOL>
  <NO>164</NO>
  <DATE>Thursday, August 23, 2012</DATE>
  <UNITNAME>Proposed Rules</UNITNAME>
  <PRORULES>
    <PRORULE>
      <PREAMB>
        <PRTPAGE P="50954"/>
        <AGENCY TYPE="F">DEPARTMENT OF TRANSPORTATION</AGENCY>
        <SUBAGY>Federal Aviation Administration</SUBAGY>
        <CFR>14 CFR Part 39</CFR>
        <DEPDOC>[Docket No. FAA-2010-1084; Directorate Identifier 2010-CE-056-AD]</DEPDOC>
        <RIN>RIN 2120-AA64</RIN>
        <SUBJECT>Airworthiness Directives; Cessna Aircraft Company</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Aviation Administration (FAA), DOT.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Supplemental notice of proposed rulemaking (NPRM); reopening of comment period.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>We are revising an earlier proposed airworthiness directive (AD) for all Cessna Aircraft Company (Cessna) Model 402C airplanes modified by Supplemental Type Certificate (STC) SA927NW and Model 414A airplanes modified by STC SA892NW. That NPRM proposed a complete inspection of the flap system and modification of the flap control system. That NPRM was prompted by a report of a Cessna Model 414A airplane modified by STC SA892NW that experienced an asymmetrical flap condition causing an uncommanded roll when the pilot set the flaps to the approach position. This action revises that NPRM by incorporating additional service information that addresses proper rigging procedures and corrective actions following additional inspection procedures. We are proposing this supplemental NPRM to correct the unsafe condition on these products. Since these actions impose an additional burden over that proposed in the NPRM, we are reopening the comment period to allow the public the chance to comment on these proposed changes.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>We must receive comments on this supplemental NPRM by October 9, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov.</E>Follow the instructions for submitting comments.</P>
          <P>•<E T="03">Fax:</E>202-493-2251.</P>
          <P>•<E T="03">Mail:</E>U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.</P>
          <P>•<E T="03">Hand Delivery:</E>U.S. Department of Transportation, Docket Operations, M-30, 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>

          <P>For service information identified in this proposed AD, contact Sierra Industries, Ltd, 122 Howard Langford Drive, Uvalde, Texas 78801; telephone: 888-835-9377; email:<E T="03">info@sijet.com;</E>Internet:<E T="03">http://www.sijet.com.</E>You may review copies of the referenced service information at the FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call 816-329-4148.</P>
        </ADD>
        <HD SOURCE="HD1">Examining the AD Docket</HD>
        <P>You may examine the AD docket on the Internet at<E T="03">http://www.regulations.gov;</E>or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (phone: 800-647-5527) is in the<E T="02">ADDRESSES</E>section. Comments will be available in the AD docket shortly after receipt.</P>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Michael A. Heusser, Program Manager, Fort Worth Airplane Certification Office, FAA, 2601 Meacham Blvd., Fort Worth, Texas 76137; phone: (817) 222-5038; fax: (817) 222-5160; email:<E T="03">michael.a.heusser@faa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Comments Invited</HD>

        <P>We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the<E T="02">ADDRESSES</E>section. Include “Docket No. FAA-2010-1084; Directorate Identifier 2010-CE-056-AD at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments.</P>
        <P>We will post all comments we receive, without change, to<E T="03">http://www.regulations.gov,</E>including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD.</P>
        <HD SOURCE="HD1">Discussion</HD>

        <P>We issued an NPRM to amend 14 CFR part 39 to include an AD that would apply to all Cessna Aircraft Company (Cessna) Model 402C airplanes modified by Sierra Industries, Ltd. Supplemental Type Certificate (STC) SA927NW and Model 414A airplanes modified by STC SA892NW (both STCs formerly held by Robertson Aircraft Corporation). That NPRM published in the<E T="04">Federal Register</E>on October 29, 2010 (75 FR 66700).</P>
        <P>That NPRM (75 FR 66700, October 29, 2010) was prompted by a report that a Cessna Model 414A airplane, which was modified by STC SA892NW, had an asymmetrical flap condition that caused an uncommanded roll when the pilot set the flaps to the approach position.</P>
        <P>The flap preselect cable connects to the arm assembly and provides the flap position to the flap selector to close the position loop for the flap position. Micro switches are located on the arm assembly and provide the electrical signal for the arm position.</P>

        <P>STC SA927NW and STC SA892NW use the original production preselect cable. However, the STCs added an extension to the arm assembly that requires increased travel of the preselect cable to obtain the same rotation as previously obtained with the shorter arm assembly. To obtain the same arm assembly rotation, the preselect cable must travel approximately an additional .75 inch. However, the original cable has internal mechanical stops that prevent it from traveling the additional distance. The cable's internal stops are contacted by a smaller rotation displacement of the arm assembly. Since more linear displacement of the cable is required to obtain the same switch action, the internal mechanical<PRTPAGE P="50955"/>stops of the cable are reached before the switches designed to stop the motion of the flaps activate.</P>
        <P>As a result, when the internal stops in the cable are contacted, the rotation of the arm assembly carrying the micro switches stops and the switch to stop the drive motor is not activated. Because the switch is not activated, the motor continues to run until either the motor drive shear pin fails, a cable breaks, the structural bracket breaks, or the secondary switches stop the motor before something breaks. The sequence was verified on the reported airplane by the rigging, installation, and operation of an STC production configuration.</P>
        <P>That NPRM (75 FR 66700, October 29, 2010) proposed to require a complete inspection of the flap system and modification of the flap control system.</P>
        <P>This condition, if not corrected, could result in an asymmetrical flap condition with consequent loss of control.</P>
        <HD SOURCE="HD1">Actions Since Previous NPRM Was Issued</HD>
        <P>During a subsequent flight after issuance of that NPRM (75 FR 66700, October 29, 2010), additional issues on the flap control system were discovered. The service information called out in the initial NPRM did not address these additional issues. Further investigation determined that the lack of a proper rigging procedure was a contributing factor in the flap issues.</P>
        <P>Sierra Industries, Ltd. has issued Instructions for Continued Airworthiness, 82-1, Issue 1, dated June 12, 2012, which incorporates proper rigging procedures and corrective actions following additional inspection procedures.</P>
        <HD SOURCE="HD1">Comments</HD>
        <P>We gave the public the opportunity to comment on the original NPRM (75 FR 66700, October 29, 2010). We received no comments on that NPRM or on the determination of the cost to the public.</P>
        <HD SOURCE="HD1">FAA's Determination</HD>
        <P>We are proposing this supplemental NPRM because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of these same type designs. Certain changes described above expand the scope of the original NPRM (75 FR 66700, October 29, 2010). As a result, we have determined that it is necessary to reopen the comment period to provide additional opportunity for the public to comment on this supplemental NPRM.</P>
        <HD SOURCE="HD1">Proposed Requirements of the Supplemental NPRM</HD>
        <P>This supplemental NPRM would require accomplishing the actions specified in the service information proposed in the original NPRM, and require incorporation of Sierra Industries, Ltd. Instructions for Continued Airworthiness, 82-1, Issue 1, dated June 12, 2012, into the FAA-approved maintenance program.</P>
        <P>The accomplishment and incorporation of these documents should adequately mitigate the unsafe condition.</P>
        <HD SOURCE="HD1">Costs of Compliance</HD>
        <P>We estimate that this proposed AD affects 150 airplanes of U.S. registry.</P>
        <P>We estimate the following costs to comply with this AD:</P>
        <GPOTABLE CDEF="s50,r50,12C,12C,12C" COLS="5" OPTS="L2,i1">
          <TTITLE>Estimated Costs</TTITLE>
          <BOXHD>
            <CHED H="1">Action</CHED>
            <CHED H="1">Labor cost</CHED>
            <CHED H="1">Parts cost</CHED>
            <CHED H="1">Cost per<LI>product</LI>
            </CHED>
            <CHED H="1">Cost on U.S. operators</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Inspect the flap system and modify/replace the flap preselect control cable</ENT>
            <ENT>25 work-hours × $85 per hour = $2,125</ENT>
            <ENT>$1,000</ENT>
            <ENT>$3,125</ENT>
            <ENT>$468,750</ENT>
          </ROW>
        </GPOTABLE>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs” describes in more detail the scope of the Agency's authority.</P>
        <P>We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
        <HD SOURCE="HD1">Regulatory Findings</HD>
        <P>We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
        <P>For the reasons discussed above, I certify this proposed regulation:</P>
        <P>(1) Is not a “significant regulatory action” under Executive Order 12866,</P>
        <P>(2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),</P>
        <P>(3) Will not affect intrastate aviation in Alaska, and</P>
        <P>(4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
          <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 14 CFR part 39 as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
          <P>1. The authority citation for part 39 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>49 U.S.C. 106(g), 40113, 44701.</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 39.13</SECTNO>
            <SUBJECT>[Amended]</SUBJECT>
            <P>2. The FAA amends § 39.13 by adding the following new airworthiness directive (AD):</P>
            
            <EXTRACT>
              <FP SOURCE="FP-2">
                <E T="04">Cessna Aircraft Company:</E>Docket No. FAA-2010-1084; Directorate Identifier 2010-CE-056-AD.</FP>
              <HD SOURCE="HD1">(a) Comments Due Date</HD>
              <P>We must receive comments by October 9, 2012.</P>
              <HD SOURCE="HD1">(b) Affected ADs</HD>
              <P>None.</P>
              <HD SOURCE="HD1">(c) Applicability</HD>

              <P>This AD applies to Cessna Aircraft Company (Cessna) Model 402C airplanes<PRTPAGE P="50956"/>modified by Supplemental Type Certificate (STC) SA927NW and Model 414A airplanes modified by STC SA892NW, all serial numbers, that are certificated in any category.</P>
              <HD SOURCE="HD1">(d) Subject</HD>
              <P>Joint Aircraft System Component (JASC)/Air Transport Association (ATA) of America Code 57, Wings.</P>
              <HD SOURCE="HD1">(e) Unsafe Condition</HD>
              <P>This AD was prompted by a report of a Cessna Model 414A airplane modified by STC SA892NW that experienced an asymmetrical flap condition causing an uncommanded roll when the pilot set the flaps to the approach position. We are issuing this AD to prevent failure of the flap system, which could result in an asymmetrical flap condition. This condition could result in loss of control.</P>
              <HD SOURCE="HD1">(f) Compliance</HD>
              <P>Comply with this AD within the compliance times specified, unless already done.</P>
              <HD SOURCE="HD1">(g) Inspection of the Flap Control System</HD>
              <P>Within 60 days after the effective date of this AD, do a complete inspection of the flap control system following the Inspection Instructions section of Sierra Industries, Ltd. Service Bulletin SI09-82 Series-1, Rev. A, dated June 12, 2012.</P>
              <HD SOURCE="HD1">(h) Modification of the Flap Control System</HD>
              <P>(1) If any damage to the flap bellcrank or bellcrank mounting structure is found in the inspection required in paragraph (g) of this AD, before further flight, repair the damage and modify the flap control system following the Accomplishment Instructions of Sierra Industries, Ltd. Service Bulletin SI09-82 Series-1, Rev. A, dated June 12, 2012.</P>
              <P>(2) If no damage to the flap bellcrank or bellcrank mounting structure is found in the inspection required in paragraph (g) of this AD, within 180 days after the effective date of this AD, modify the flap control system following the Accomplishment Instructions of Sierra Industries, Ltd. Service Bulletin SI09-82 Series-1, Rev. A, dated June 12, 2012.</P>
              <HD SOURCE="HD1">(i) Instructions for Continued Airworthiness</HD>
              <P>Within 7 months after the effective date of this AD, or during your next annual inspection, whichever occurs earlier, incorporate Sierra Industries, Ltd. Instructions for Continued Airworthiness, 82-1, Issue 1, dated June 12, 2012, into your FAA-approved maintenance program.</P>
              <HD SOURCE="HD1">(j) Alternative Methods of Compliance (AMOCs)</HD>
              <P>(1) The Manager, Fort Worth Airplane Certification Office , FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the ACO, send it to the attention of the person identified in the Related Information section of this AD.</P>
              <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
              <HD SOURCE="HD1">(k) Related Information</HD>

              <P>(1) For more information about this AD, contact Michael A. Heusser, Program Manager, Fort Worth ACO, FAA, 2601 Meacham Blvd., Fort Worth, Texas 76137; phone: (817) 222-5038; fax: (817) 222-5160; email:<E T="03">michael.a.heusser@faa.gov</E>.</P>

              <P>(2) For service information identified in this AD, contact Sierra Industries, Ltd, 122 Howard Langford Drive, Uvalde, Texas 78801; telephone: 888-835-9377; email:<E T="03">info@sijet.com;</E>Internet:<E T="03">http://www.sijet.com</E>. You may review copies of the service information at the FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call 816-329-4148.</P>
            </EXTRACT>
          </SECTION>
          <SIG>
            <DATED>Issued in Kansas City, Missouri, on August 16, 2012.</DATED>
            <NAME>Earl Lawrence,</NAME>
            <TITLE>Manager, Small Airplane Directorate, Aircraft Certification Service.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20734 Filed 8-22-12; 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 Parts 400 and 401</CFR>
        <DEPDOC>[Docket No.: FAA-2012-0045; Notice No. 12-05]</DEPDOC>
        <RIN>RIN 2120-AJ90</RIN>
        <SUBJECT>Exclusion of Tethered Launches From Licensing Requirements</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>The FAA proposes to exclude tethered launches as defined in this proposal from the existing licensing requirements. This proposed rule would maintain public safety for these launches by providing launch vehicle operators with clear and simple criteria for a safe tethered launch. The FAA would not require a license, permit or waiver for tethered launches that satisfy the design and operational criteria proposed here.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Send comments on or before October 22, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Send comments identified by docket number FAA-2012-0045, using any of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov</E>and follow the online instructions for sending your comments electronically.</P>
          <P>•<E T="03">Mail:</E>Send comments to Docket Operations, M-30; U.S. Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.</P>
          <P>•<E T="03">Hand Delivery or Courier:</E>Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.</P>
          <P>•<E T="03">Fax:</E>Fax comments to Docket Operations at (202) 493-2251.</P>
          <P>
            <E T="03">Privacy:</E>The FAA will post all comments it receives, without change, to<E T="03">http://www.regulations.gov,</E>including any personal information the commenter provides. Using the search function of the docket Web site, anyone can find and read the electronic form of all comments received into any FAA dockets, including the name of the individual sending the comment (or signing the comment for an association, business, labor union, etc.). DOT's complete Privacy Act Statement can be found in the<E T="04">Federal Register</E>published on April 11, 2000 (65 FR 19477-19478), as well as at<E T="03">http://DocketsInfo.dot.gov</E>.</P>
          <P>
            <E T="03">Docket:</E>Background documents or comments received may be read at<E T="03">http://www.regulations.gov</E>at any time. Follow the online instructions for accessing the docket or Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, DC, 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>For technical questions concerning this proposed rule, contact Shirley McBride, Commercial Space Transportation, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone (202) 267-7470; email<E T="03">Shirley.McBride@faa.gov</E>.</P>

          <P>For legal questions concerning this proposed rule, contact Sabrina Jawed, AGC-240, Office of the Chief Counsel, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone (202) 267-8839; email<E T="03">Sabrina.Jawed@faa.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>See the “Additional Information” section for information on how to comment on this proposal and how the FAA will handle comments received. The “Additional Information” section also contains related information about the docket, privacy, and the handling of proprietary or confidential business information. In addition, there is information on obtaining copies of related rulemaking documents.<PRTPAGE P="50957"/>
        </P>
        <HD SOURCE="HD1">Authority for This Rulemaking</HD>
        <P>The Commercial Space Launch Act of 1984, as amended and re-codified at 51 U.S.C. 50901-50923 (the Act), authorizes the Department of Transportation and thus the FAA, through delegations, to oversee, license, and regulate commercial launch and reentry activities, and the operation of launch and reentry sites as carried out by U.S. citizens or within the United States. 51 U.S.C. 50904, 50905. The Act directs the FAA to exercise this responsibility consistent with public health and safety, safety of property, and the national security and foreign policy interests of the United States. 51 U.S.C. 50905. Title 51 U.S.C. 50901(a)(7) directs the FAA to regulate only to the extent necessary, in relevant part, to protect the public health and safety and safety of property. The FAA is also responsible for encouraging, facilitating, and promoting commercial space launches by the private sector. 51 U.S.C. 50903.</P>
        <HD SOURCE="HD1">I. Background</HD>
        <P>The FAA's licensing and permitting requirements for commercial space launches are contained in 14 CFR chapter III. Section 400.2 specifies the requirements in chapter III apply to commercial space transportation activities conducted in the United States or by a U.S. citizen, but do not apply to amateur rocket activities or to space activities carried out by the United States Government on behalf of the United States Government.</P>
        <P>The FAA began hearing of tethered launches around 2002, when launch operators tested relatively small vehicles tethered to the ground with engines that burned for short periods of time. Operators later tested larger, more developed and costly vehicles by attaching them to a tether and attaching the tether to a crane or forklift to prevent the vehicle from hitting the ground. Some of these tethered launches met the FAA's amateur rocket activity criteria,<SU>1</SU>
          <FTREF/>and thus were excluded from chapter III requirements. Those that did not meet the amateur rocket criteria should have been required to comply with chapter III. However, because these launches had a tether system that restrained the vehicle within a certain range, the FAA initially deemed them low risk and did not require operators to conduct tethered launches under chapter III. In 2008, the FAA reassessed this determination and found that launches that meet the applicability criteria of § 400.2, regardless of whether the launch vehicle is restrained by a tether, must be conducted under chapter III. That is, operators must apply for a license, permit or waiver. That year, the FAA reviewed and granted five chapter III waiver requests to conduct tethered launches. The agency now seeks an approach to tethered launches that would maintain public safety and be less burdensome on launch operators and the FAA. That approach is the subject of this proposed rule.</P>
        <FTNT>
          <P>

            <SU>1</SU>Prior to 2008, “amateur rocket activities” was defined in 14 CFR § 401.5 as “launch activities conducted at private sites involving rockets powered by a motor or motors having a total impulse of 200,000 pound-seconds or less and a total burning or operating time of less than 15 seconds, and a rocket having a ballistic coefficient—i.e., gross weight in pounds divided by frontal area of rocket vehicle—less than 12 pounds per square inch.” In 2008, the FAA moved the definition to 14 CFR part 1, chapter I and revised it as follows: “Amateur Rocket means an unmanned rocket that is propelled by a motor or motors having a combined total impulse of 889,600 Newton-seconds (200,000 pound-seconds) or less; and cannot reach an altitude greater than 150 kilometers (93.2 statute miles) above the earth's surface.” 14 CFR 1.1;<E T="03">Requirements for Amateur Rocket Activities, Final Rule,</E>73 FR 73781 (Dec. 4, 2008).</P>
        </FTNT>
        <HD SOURCE="HD1">II. Overview of Proposed Rule</HD>
        <P>Title 51 U.S.C. 50901(a)(7) directs the FAA to regulate only to the extent necessary, in relevant part, to protect the public health and safety and safety of property. Therefore, the FAA proposes to reduce the scope of chapter III by excluding tethered launches that meet the requirements of this proposed rule. This proposal would maintain public safety by creating threshold criteria to determine whether chapter III needs to apply. FAA oversight would no longer be required for these launches because of the comprehensive protection the proposed launch vehicle, tether system, and operational criteria would provide.</P>
        <P>This rulemaking would not affect amateur rocket activities, regardless of whether they include a tether system, because chapter III regulations do not apply to the launch of amateur rockets. Those operators that conduct launches covered under chapter III and are not eligible for the exclusion proposed here, must continue to follow current requirements by applying for a license, permit or waiver.</P>
        <P>The FAA is proposing a number of changes consistent with the goals of Executive Order 13610, Identifying and Reducing Regulatory Burdens, 77 FR 28469 (May 14, 2012). This proposal, if adopted, would require that the launch vehicle be unmanned, be powered by a liquid or hybrid engine, and carry no more than 5,000 pounds of propellant. It would also require that the tether system, including the points of attachment within the tether system, meet specified structural criteria, and that the tethered operations be carried out within specified separation distances from the public. The structural criteria would mitigate the hazards that can compromise the structural integrity of the tether system. The vehicle requirements and operational criteria would provide additional protection to the public by mitigating potential hazards posed by a tether system failure.</P>
        <P>The proposed rule would alleviate burdens on both the vehicle operator and the FAA. The operator would no longer incur the costs associated with submitting a launch license application, permit application or petition for waiver under chapter III. In addition, the operator would not incur the costs associated with any delay in processing applications or waivers. Finally, the FAA would not have to evaluate applications, conduct independent analyses, or issue licenses, permits or waivers.</P>
        <HD SOURCE="HD1">III. Discussion of the Proposal</HD>
        <P>This proposal would amend two sections of part 400. It would revise § 401.5 (Definitions) to add a definition for a tether system. It would also revise § 400.2 (Scope) to add requirements for the launch vehicle and tether system, as well as separation distances from the public for the tethered launch operations.</P>
        <HD SOURCE="HD2">A. Proposed Definition (§ 401.5)</HD>
        <P>The FAA proposes to define<E T="03">tether system</E>as a device that would contain launch vehicle hazards by physically constraining a launch vehicle in flight to a specified range from its launch point. A tether system includes all components, from the point of attachment to the vehicle to a solid base, that experience load during a tethered launch.</P>

        <P>A tether system should prevent a vehicle from departing the launch site because the vehicle could pose a hazard to the public. Typically, a tether system is composed of at least three parts: one vehicle connection; one fixed connection; and at least one tether that has one end fastened to the vehicle connection and the other end fastened to a fixed connection to a solid base so as to limit the vehicle's range of movement. A vehicle connection consists of all mechanical components that attach a tether to a launch vehicle. These include, for example, metal frames, bolts that attach the vehicle and metal frame together, and shackles. A fixed connection attaches a tether to a solid base, such as a crane, a forklift or<PRTPAGE P="50958"/>the ground, and it consists of all mechanical components that accomplish the attachment. Examples of these mechanical components include the component that attaches any crane to the rest of the system, such as shackles or a bolt that attaches a solid base and shackle together.</P>
        <P>The FAA's proposed definition is broad enough to encompass all possible tether system configurations. This proposed definition would require operators, when determining if chapter III applies, to account for the effect of a tethered launch on every component from the point of attachment to the vehicle to a solid base, that experience load during a tethered launch. Accounting for a whole system would reduce the likelihood of a system failure caused by an overlooked component that was unable to withstand the maximum load exerted on it.</P>
        <P>In devising a tether system, the operator should take into account the vehicle's structural integrity because if the tether were able to withstand the forces exerted on it, but the vehicle could not, then the vehicle could break free. If this were to happen and the vehicle exceeded the proposed flight limit of 75 feet above ground level (AGL), the operator would have failed to comply with the proposed requirement in § 400.2(c)(2)(iii).</P>
        <P>The FAA's proposed definition accounts for only one tether, regardless of any other tethers within the system. A tether system containing multiple tethers or multiple attachment points is not necessarily more reinforced or safer: all of the applied forces may not be evenly distributed among the tethers. For instance, for a tether system with four tethers, if an operator assumes that the maximum load is evenly distributed among all four tethers of the system and designs each tether to withstand one-fourth of the maximum load, the entire tether system could fail if the vehicle's position shifted and more than one-fourth of the maximum load was placed on a single tether. In other words, if one tether can fail, then all tethers within the system can fail. Accordingly, in order to reduce the likelihood of a tether system failure, the system must contain at least one tether capable of bearing the maximum force exerted on the tether system, regardless of the number of additional tethers within the system. Increasing the number of tethers within the system does not guarantee an increase in strength for the overall system.</P>
        <HD SOURCE="HD2">B. Proposed Launch Vehicle (§ 400.2 (c)(1))</HD>
        <P>In order to avoid the applicability of chapter III, the FAA proposes that a launch vehicle would have to be unmanned and meet the requirements proposed below.</P>
        <HD SOURCE="HD3">1. Engine Type</HD>
        <P>The FAA would require a launch vehicle excluded by tether from chapter III to have a liquid or hybrid motor; a solid rocket motor would not be permitted. Liquid or hybrid motors are composed of systems that require mixing of the propellants to combust, whereas solid motors consist of relatively simple systems where the propellants are already formulated with oxidizer dispersed in fuel. If a tethered vehicle were to lose control, the operator would rely on the tether system to constrain the vehicle and bring it to the ground. The fragile nature of liquid or hybrid motors ensures that ground impact would render them inoperable.</P>
        <HD SOURCE="HD3">2. Propellant Cap</HD>
        <P>The FAA would not permit a launch vehicle to carry more than 5,000 pounds of propellant. The FAA's records indicate that, historically, the most propellant that has been on board a launch vehicle for a tethered launch is approximately 1,000 pounds. Greater propellant amounts result in both a heavier launch vehicle and greater explosive energy.</P>
        <P>To determine this proposed cap, the FAA assessed the weight capacity of cranes and forklifts from a random sampling and from data used during past tethered launches. The data from the past launches indicate that the average weight capacity of these crane or forklift tether systems was 6,000 pounds; however, there were gaps in the data because this information was voluntary and not all operators provided it. To fill in the gaps, the FAA randomly selected eleven crane and forklift models from several manufacturers.<SU>2</SU>
          <FTREF/>The data obtained from the random samples indicate that the average weight capacity of a crane or forklift is also approximately 6,000 pounds. For a tethered vehicle, the vehicle's dry weight uses a maximum of approximately 15 percent of the crane or forklift weight capacity.<SU>3</SU>
          <FTREF/>This leaves approximately 85 percent of the weight capacity available for the propellant. To compute the maximum propellant amount that a tethered vehicle can carry, the FAA took the 6,000-pound crane or forklift weight capacity and multiplied it by 85 percent. This computation resulted in a maximum propellant weight of 5,100 pounds. To provide a margin for the weight capacity of the crane or forklift, the FAA rounded this value down to 5,000 pounds.</P>
        <FTNT>
          <P>
            <SU>2</SU>Models from the random sampling consisted of the Broderson IC20, Broderson IC35, Case 586G, JCB 930, John Deere 486E, Genie GTH5519, Genie GTH636, Genie GTH644, Gradall G6-42Z, Gradall G6-42P, Lull 644E-42.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>Some operators provided voluntary information on their tether systems. The FAA looked at the different vehicles' dry weights relative to the crane or forklift weight capacity.</P>
        </FTNT>
        <HD SOURCE="HD2">C. Proposed Tether System (§ 400.2(c)(2))</HD>
        <P>The FAA proposes conservative technical and design criteria for an effective tether system. The FAA developed these criteria by determining what would prevent a tether from breaking and exposing the public to launch vehicle hazards. The FAA proposes five criteria as necessary to reduce the risk of a tether system failure: (1) Established strength properties, (2) minimum factor of safety, (3) launch vehicle constraint, (4) no damage displayed before launch, and (5) protection from launch vehicle exhaust plume.</P>
        <HD SOURCE="HD3">1. Established Strength Properties</HD>
        <P>The FAA would require that an eligible tether system have established strength properties that would not yield or fail under the maximum dynamic load on the system or under a load equivalent to two times the maximum potential engine thrust.</P>
        <P>Because some operators may not readily know the maximum dynamic load for their tether systems, the FAA proposes an alternate means of determining whether the tether is of sufficient strength. If an operator does not know the maximum dynamic load, the operator may calculate the maximum load as follows: determine the maximum potential engine thrust of the tethered vehicle and then multiply the maximum engine thrust by a factor of two. Using the maximum potential engine thrust of two is an industry standard for estimating the dynamic load of any structural system.<SU>4</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>4</SU>
            <E T="03">See</E>A.E.H. Love, A Treatise on the Mathematical Theory of Elasticity, 179-180, Cambridge University Press (2d ed. 1906).</P>
        </FTNT>
        <HD SOURCE="HD3">2. Minimum Factor of Safety</HD>
        <P>The FAA would require operators to multiply the maximum load by a minimum factor of safety<SU>5</SU>
          <FTREF/>of 3.0 for<PRTPAGE P="50959"/>yield stress and 5.0 for ultimate stress. All components would have to have established strength properties that could withstand the maximum load multiplied by the factors of safety. The FAA chose the proposed factors of safety based on their successful history in a similar context.</P>
        <FTNT>
          <P>
            <SU>5</SU>A factor of safety of 1.0 implies that the design meets minimum requirements, but is on the point of failure with design uncertainties and no margin for variation or error. A factor of safety less than 1.0 means the design does not meet the minimum requirements and is in a failed state. A factor of safety greater than 1.0 means the design exceeds the<PRTPAGE/>requirements by a multiple of that factor of safety and is in a safety state.</P>
        </FTNT>
        <P>The U.S. Air Force has used these same factors for similar operations. The U.S. Air Force conducts rocket operations at the Eastern and Western Ranges, including of tethered and ground-based systems. It recommends a minimum factor of safety of 3.0 for yield stress,<SU>6</SU>
          <FTREF/>and a factor of safety of 5.0 for ultimate stress,<SU>7</SU>
          <FTREF/>for the design of ground-based systems. This includes the tether and its attachments to launch facilities or ground equipment.<SU>8</SU>
          <FTREF/>This means that for a tether system, the components within the system would be able to endure three times the force required to permanently deform the components, and five times the force required to break the components. The U.S. Air Force has not experienced any tether failures, even for a Minuteman launch, using these factors.</P>
        <FTNT>
          <P>
            <SU>6</SU>Yield stress is the elastic limit.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>7</SU>Ultimate stress is when breakage occurs.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>8</SU>Nicholas E. Martino,<E T="03">Design and Analysis Guidelines for Launch Vehicle Tether Systems,</E>Aerospace Report No. ATR-2008 (5377)-1, The Aerospace Corporation (Sept. 30, 2007). This report is available in the docket for this rulemaking (Docket No. FAA-2012-0045).</P>
        </FTNT>
        <HD SOURCE="HD3">3. Launch Vehicle Constraint</HD>
        <P>The FAA proposes that the launch vehicle be constrained so that its flight cannot exceed 75 feet AGL. This altitude limit is based on the FAA's assessment of historical data on tether lengths and on the height of cranes and forklifts to determine a safe maximum altitude for tether systems. Based on this assessment, the FAA calculated an average crane or forklift height and an average tether length. The FAA then added these two values together to determine the launch vehicle's potential altitude.</P>
        <P>Crane and forklift data from previous tethered launches and sampling indicate that the average height of the crane or forklift in a tether system is 43 feet. There were gaps in the data because the information was voluntary, and not all operators provided it. To fill the gaps, the FAA examined random samples of different crane and forklift heights, which indicated that operators typically use mid-sized cranes and forklifts to conduct their tethered operations. The FAA then took samples of mid-sized cranes and forklifts and averaged their heights and weight capacities to determine their physical limitations. The FAA obtained the samples from online brochures of manufacturers of cranes and forklifts.<SU>9</SU>
          <FTREF/>The sample information also indicates that the average crane or forklift height is approximately 43 feet.</P>
        <FTNT>
          <P>
            <SU>9</SU>These included Broderson Manufacturing Corp.; JCB; Genie; and Gradall Industries, Inc.</P>
        </FTNT>
        <P>A launch vehicle's potential altitude is a crucial element in determining how far debris can travel in the event of a crash or an explosion. Large tether lengths allow for high altitude flights, while short tether lengths limit the vehicle to low altitudes. This means that a tether system failure during flight can result in large vehicle ranges for long tethers and short vehicle ranges for short tethers, because altitude and range are proportional. In order to reduce the risk to the public during tethered launches, the tether length must not be too long. An appropriate length is also necessary to prevent hazardous events, such as the entanglement of the tether with launch support structures or other facilities. Moreover, an appropriate tether length would prevent a controlled airspace incursion.</P>
        <P>The FAA assumed that the maximum tether length for the average crane or forklift tether system would not be greater than the crane or forklift height because such a tether length could allow a launch vehicle to hit the ground and possibly explode. The FAA also assumed that the tether must be given room to stretch, because a 43-foot tether attached to a 43-foot high crane could allow the launch vehicle to hit the ground when the length of the vehicle and the elasticity of the tether are taken into account. Based on these assumptions, the FAA concluded that the tether length should be less than 43 feet.</P>
        <P>The FAA examined past tether waiver applications to determine the appropriate tether length. The tether waiver data showed that the maximum tether length operators typically use is approximately 32 feet. The FAA would use a tether length of 32 feet, which provides a margin of 11 feet to account for the tether's elasticity and the length of the vehicle, to calculate maximum altitude. This length is appropriate and reasonable for tethered flights because past tethered flights have demonstrated that the length allows the vehicle sufficient lateral movement for operators to conduct tethered activities, while limiting the vehicle to low altitudes and thereby reducing the risk to the public.</P>
        <P>When the average crane or forklift height of 43 feet is added to an appropriate tether length of 32 feet, the result is a maximum potential altitude of approximately 75 feet for the tethered vehicle. Accordingly, the FAA proposes to require that the tether system physically constrain the launch vehicle within an altitude of 75 feet AGL. This altitude does not require operators to use 43-foot high cranes or 32-foot long tethers; those measurements were only used to calculate an appropriate maximum altitude for a tethered launch that would not require FAA oversight. The proposed maximum altitude would protect the public by limiting the launch vehicle's range.</P>
        <HD SOURCE="HD3">4. No Damage Displayed Before Launch (§ 400.2(c)(3))</HD>
        <P>The FAA would require that the tether system show no visual component damage before each launch. This requirement would reduce the risk of a tether system failure due to pre-existing damage. A visual check of the tether system before each launch could prevent failure by identifying signs of damage such as component fatigue, fracture, wear, creep, corrosion, yielding, or thermal shock. While the initial stages of some of these forms of damage may not be visible to the naked eye, they may eventually become visible. The FAA offers the following definitions of these terms as guidance in conducting the visual check:</P>
        <P>
          <E T="03">Fatigue</E>is the progressive and localized structural damage that occurs when a material is subjected to cyclic loading. Fatigue occurs when a material is stressed repeatedly.</P>
        <P>
          <E T="03">Fracture</E>is the local separation of an object or material into two or more pieces under the action of stress.</P>
        <P>
          <E T="03">Wear</E>is the erosion of material from a solid surface by the action of another surface. Wear is related to surface interactions and more specifically to the removal of material from a surface as a result of mechanical action.</P>
        <P>
          <E T="03">Creep</E>is the tendency of a solid material to move slowly or deform permanently under the influence of stresses.</P>
        <P>
          <E T="03">Corrosion</E>is the disintegration of an engineered material into its constituent atoms due to chemical reactions with its surroundings.</P>
        <P>
          <E T="03">Yielding</E>is when a material begins to deform plastically; when the yield point is passed, some fraction of the deformation will be permanent and non-reversible.</P>
        <P>
          <E T="03">Thermal shock</E>is cracking as a result of rapid temperature change.<PRTPAGE P="50960"/>
        </P>
        <HD SOURCE="HD3">5. Protection From Launch Vehicle Exhaust Plume</HD>
        <P>The FAA would require an operator to insulate or locate the tether system such that it will not experience thermal damage due to a launch vehicle's exhaust. This requirement would mitigate the risk of a tether system failure due to thermal damage. Components exposed to the heat emitted from a launch vehicle's exhaust plume may be damaged or severely weakened. Metallic components, for example, that are exposed to a vehicle's exhaust plume may not visually show damage; however, all structural materials suffer significant strength degradation at elevated temperatures.</P>
        <HD SOURCE="HD2">D. Proposed Separation Distances (§ 400.2(c)(3))</HD>
        <P>The FAA proposes that tethered launches be conducted at a sufficient distance from the public and from property belonging to members of the public to mitigate the effects when a launch vehicle unintentionally separates from the tether system. A launch vehicle may transfer unanticipated loads into the tether system, resulting in tether system failure and vehicle separation. Although a properly designed and constructed tether system should not fail, adding distance between the launch point and members of the public is a prudent and relatively simple and inexpensive safety measure to implement.</P>
        <P>The FAA computed its proposed separation distances by first calculating a conservative maximum range of a vehicle that broke free of the tether system, and then calculating the hazardous fragment distance from the point of impact based on the type and amount of propellants onboard. Table A—Separation Distances for Tethered Launches in proposed § 400.2 would contain the separation distances required for a tethered launch that was excluded from chapter III. Each distance calculation in Table A is discussed below.</P>
        <HD SOURCE="HD3">1. The Maximum Range of the Vehicle Released From the Tether</HD>
        <P>To determine a launch vehicle's maximum range, the FAA used Newton's equations of motion to estimate the maximum possible distance a vehicle that broke free of a tether could travel. The FAA simulated the scenarios where a tether system failed, and the vehicle followed a ballistic trajectory to the ground. The analysis consisted of the following assumptions: (1) The vehicle would be non-propulsive upon release; (2) the initial release velocity of the vehicle was maximized; (3) the tether's pull would not reduce the vehicle's velocity; (4) the tether would fully extend upon release; (5) the release angle of the vehicle would be the angle that provided the maximum range; and (6) the vehicle would fly through a vacuum. Except for the non-propulsive nature of the vehicle, all assumptions are conservative from a public safety perspective. The non-propulsive assumption is reasonable because a vehicle that broke free of a tether would most likely be unstable and not able to sustain flight in any particular direction.</P>
        <P>The FAA also conducted a computer simulation of the same scenarios, using a trajectory analysis tool to verify the validity of the FAA's maximum range calculations. The numerical results from the computer simulation were consistent with the results from the FAA's computational analysis.</P>
        <HD SOURCE="HD3">2. The Hazardous Fragment Distance Based on the Propellant Onboard</HD>
        <P>Upon impact at its maximum range, a launch vehicle with liquid propellants has the potential to explode, creating both overpressure and debris hazards. Explosive hazards associated with propellant quantities up to 5,000 pounds are driven by fragment hazards. The FAA used the formulas provided in Table 1 below to determine the hazardous fragment distance given a launch vehicle impact. This distance is a function of the net explosive weight (NEW), or the explosive equivalent of the propellants used on the launch vehicle.<SU>10</SU>
          <FTREF/>Depending on the type of propellant, the explosive equivalent may vary from 10 to 20 percent, in accordance with Table E-2 of part 420.<SU>11</SU>
          <FTREF/>For purposes of this rulemaking, the FAA applied a maximum NEW value of 20 percent for all propellant types. Using this conservative assumption simplifies the proposed rule.</P>
        <FTNT>
          <P>
            <SU>10</SU>The definitions of NEW and explosive equivalent weight are provided in 14 CFR 420.5.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>11</SU>
            <E T="03">Explosive Siting Requirements,</E>
            <E T="03">Notice of Proposed Rulemaking,</E>76 FR 8923 (Feb. 16, 2011).</P>
        </FTNT>
        <GPOTABLE CDEF="s50,r50" COLS="02" OPTS="L2,i1">
          <TTITLE>Table 1—Hazardous Fragment Distance<SU>12</SU>
          </TTITLE>
          <BOXHD>
            <CHED H="1">Net Explosive Weight (NEW)</CHED>
            <CHED H="1">Hazardous fragment distance (d), feet</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">≤0.5 pounds</ENT>
            <ENT>d = 236</ENT>
          </ROW>
          <ROW>
            <ENT I="01">0.5 pounds&lt;NEW &lt;100 pounds</ENT>
            <ENT>d = 291.3 + [79.2 *ln(NEW)]</ENT>
          </ROW>
          <ROW>
            <ENT I="01">100 pounds ≤ NEW ≤1000 pounds</ENT>
            <ENT>d = −1133.9 + [389 *ln(NEW)]</ENT>
          </ROW>
          <TNOTE>NEW is in pounds; d is in feet; ln is natural logarithm.</TNOTE>
        </GPOTABLE>
        <P>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>12</SU>
            <E T="03">See</E>DOD Ammunition and Explosive Safety standards, DoD 6055.9-STD, October 5, 2004, Table C9.T2.</P>
        </FTNT>
        <P>The hazardous fragment distance and NEW relationship of Table 1 is based on data obtained from Department of Defense Explosive Safety Board Technical Paper 16.<SU>13</SU>
          <FTREF/>Table 1 provides the formulas for NEW of less than 100 pounds and for quantities between 100 and 1,000 pounds.<SU>14</SU>
          <FTREF/>The Department of Defense Explosive Safety Board conducted tests that accounted for hazardous debris fragments based on a fragment that would cause a fatality, namely, one with a kinetic energy at impact of 58 foot-pounds. The hazardous fragment distance is the distance that a person approximately 6 feet tall and 1 foot wide would have a 1 percent probability of being struck by a fragment with a kinetic energy of 58 foot-pounds or greater, given an explosive event at a given NEW.<SU>15</SU>
          <FTREF/>Because the Department of Defense, NASA, and the FAA have consistently applied the same standard, the hazardous fragment distance formulas provided in Table 1 provide an accepted level of safety to the general public.</P>
        <FTNT>
          <P>

            <SU>13</SU>Department of Defense Explosive Safety Board Technical Paper 16, rev. 2,<E T="03">Methodologies for Calculating Primary Fragment Characteristics</E>(2005).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>14</SU>For NEW of 0.5 pounds or less, the Department of Defense has chosen to use a distance of 236 feet. Because this rule proposes a cap of 5,000 pounds of propellant, the table accounts for up to the resulting maximum NEW of 1,000 pounds.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>15</SU>
            <E T="03">Explosive Siting Requirements,</E>
            <E T="03">Notice of Proposed Rulemaking,</E>76 FR 8923 (Feb. 16, 2011).</P>
        </FTNT>
        <HD SOURCE="HD3">3. Table A—Separation Distances for Tethered Launches</HD>
        <P>The FAA added the maximum impact range and the hazardous fragment distance results to calculate the total separation distance in proposed Table A. Proposed Table A would represent the distance from the launch point at which people and property belonging to the public would be safe from a launch vehicle mishap. This separation distance would be proportional to the amount of propellant on board the launch vehicle. That is, the greater the propellant on board, the greater the required separation distance. Distances would start at a value corresponding to a propellant load between 1 and 500 pounds and increase in increments of 500 pounds up to a maximum of 4,501 to 5,000 pounds. Note that the FAA's proposed separation distances would only be effective if the launch vehicle—</P>
        <P>Was operated within an altitude of 75 feet AGL;<PRTPAGE P="50961"/>
        </P>
        <P>Carried no more than 5,000 pounds of propellant; and</P>
        <P>Had a liquid or hybrid engine.</P>
        <HD SOURCE="HD1">IV. Regulatory Notices and Analyses</HD>
        <HD SOURCE="HD2">A. Regulatory Evaluation</HD>
        <P>Changes to Federal regulations must undergo several economic analyses. First, Executive Order 12866 and Executive Order 13563 direct that each Federal agency shall propose or adopt a regulation only upon a reasoned determination that the benefits of the intended regulation justify its costs. Second, the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) requires agencies to analyze the economic impact of regulatory changes on small entities. Third, the Trade Agreements Act (Pub. L. 96-39) prohibits agencies from setting standards that create unnecessary obstacles to the foreign commerce of the United States. In developing U.S. standards, the Trade Act requires agencies to consider international standards and, where appropriate, that they be the basis of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies to prepare a written assessment of the costs, benefits, and other effects of proposed or final rules that include a Federal mandate likely to result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more annually (adjusted for inflation with base year of 1995). This portion of the preamble summarizes the FAA's analysis of the economic impacts of this proposed rule.</P>
        <P>Department of Transportation Order DOT 2100.5 prescribes policies and procedures for simplification, analysis, and review of regulations. If the expected cost impact is so minimal that a proposed rule does not warrant a full evaluation, this order permits a statement to that effect and the basis for it to be included in the preamble if a full regulatory evaluation of the cost and benefits is not prepared. Such a determination has been made for this proposed rule. The reasoning for this determination follows:</P>
        <P>Currently, the FAA has licensing authority over tethered launches, which are considered launches under chapter III unless they meet the definition of an amateur rocket launch.<SU>16</SU>
          <FTREF/>To conduct such tethered non-amateur rocket launches, operators must obtain a launch license, permit or apply for a waiver from chapter III. Applying for waivers, licenses and permits impose a financial burden on vehicle operators and the FAA because of time and resources required to create and analyze these applications.</P>
        <FTNT>
          <P>

            <SU>16</SU>Launches of amateur rockets are excluded from the requirements of chapter III.<E T="03">See</E>14 CFR 400.2 (2011).</P>
        </FTNT>
        <P>The proposed rule establishes clear and simple criteria for an effective tether system. In addition, it proposes vehicle and operational criteria as added measures to protect the public in the event of a tether system failure. Operators would not have to apply for a launch license, permit or waiver from chapter III to conduct tethered launches of non-amateur rockets<SU>17</SU>
          <FTREF/>that meet the proposed criteria for an effective tether system and the vehicle and operational criteria. Operators who meet the proposed criteria would not have to incur the costs of applying for a launch license, permit or waiver and would not have to sustain the costs associated with delay in the processing of these applications. The FAA would not have to conduct case-by-case analyses of tethered launches that meet the proposed criteria to verify public safety from a launch vehicle explosion or confirm that the tether system would not fail. Furthermore, launch operators that conduct tethered launches would not be compelled to follow the criteria in this proposal as they would still have the option of applying for a launch license, permit or waiver under chapter III. Therefore, the proposed rule imposes no additional requirements on operators, but provides an alternative to conducting a tethered launch under chapter III. If the operator deemed it more cost effective to apply for a license, permit or waiver than to follow the criteria proposed here, the operator would have that option.</P>
        <FTNT>
          <P>
            <SU>17</SU>Operators launching amateur rockets on a tether would still be subject to part 101 and would continue to be excluded from chapter III.</P>
        </FTNT>
        <P>For the reasons discussed, the rule would be cost relieving to both operators and the FAA. The FAA requests comments with supporting justification about the agency's determination of minimal impact.</P>
        <P>The FAA has determined that this proposed rule is not a “significant regulatory action” as defined in section 3(f) of Executive Order 12866, and is not “significant” as defined in DOT's Regulatory Policies and Procedures.</P>
        <HD SOURCE="HD2">B. Regulatory Flexibility Determination</HD>
        <P>The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) establishes “as a principle of regulatory issuance that agencies shall endeavor, consistent with the objectives of the rule and of applicable statutes, to fit regulatory and informational requirements to the scale of the businesses, organizations, and governmental jurisdictions subject to regulation. To achieve this principle, agencies are required to solicit and consider flexible regulatory proposals and to explain the rationale for their actions to assure that such proposals are given serious consideration.” The RFA covers a wide-range of small entities, including small businesses, not-for-profit organizations, and small governmental jurisdictions.</P>
        <P>Agencies must perform a review to determine whether a rule will have a significant economic impact on a substantial number of small entities. If the agency determines that it will, the agency must prepare a regulatory flexibility analysis as described in the RFA.</P>
        <P>However, if an agency determines that a rule is not expected to have a significant economic impact on a substantial number of small entities, section 605(b) of the RFA provides that the head of the agency may so certify and a regulatory flexibility analysis is not required. The certification must include a statement providing the factual basis for this determination, and the reasoning should be clear.</P>
        <P>This proposed rule is expected to provide an alternative to conducting tethered launches under chapter III and therefore could alleviate the financial burden on operators who conduct tethered launches of applying for a launch license, permit or waiver to chapter III if they follow the requirements established in the proposal. The expected outcome would therefore have either a cost saving impact or no impact on small entities affected by the proposed rule.</P>
        <P>Therefore, the FAA certifies this proposed rule, if promulgated, would not have a significant economic impact on a substantial number of small entities. The FAA solicits comments regarding this determination. Specifically, the FAA requests comments on whether the proposed rule creates any compliance costs unique to small entities. Please provide detailed supporting information.</P>
        <HD SOURCE="HD2">C. International Trade Impact Assessment</HD>

        <P>The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal agencies from establishing standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. Pursuant to these Acts, establishing standards is not considered an unnecessary obstacle to the foreign commerce of the United States, so long<PRTPAGE P="50962"/>as the standard has a legitimate domestic objective, such as the protection of safety, and does not operate in a manner that excludes imports that meet this objective. The statute also requires consideration of international standards and, where appropriate, that they be the basis for U.S. standards. The FAA has assessed the potential effect of this proposed rule and determined that it would have only a domestic impact and therefore no effect on international trade.</P>
        <HD SOURCE="HD2">D. Unfunded Mandates Assessment</HD>
        <P>Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires each Federal agency to prepare a written statement assessing the effects of any Federal mandate in a proposed or final agency rule that may result in an expenditure of $100 million or more (in 1995 dollars) in any one year by State, local, and tribal governments, in the aggregate, or by the private sector; such a mandate is deemed to be a “significant regulatory action.” The FAA currently uses an inflation-adjusted value of $143.1 million in lieu of $100 million. This proposed rule does not contain such a mandate; therefore, the requirements of Title II of the Act do not apply.</P>
        <HD SOURCE="HD2">E. Paperwork Reduction Act</HD>
        <P>The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires that the FAA consider the impact of paperwork and other information collection burdens imposed on the public. The FAA has determined that there would be no new requirement for information collection associated with this proposed rule.</P>
        <HD SOURCE="HD2">F. International Compatibility</HD>
        <P>In keeping with U.S. obligations under the Convention on International Civil Aviation, it is FAA policy to conform to International Civil Aviation Organization (ICAO) Standards and Recommended Practices to the maximum extent practicable. The FAA has determined that there are no ICAO Standards and Recommended Practices that correspond to these proposed regulations.</P>
        <HD SOURCE="HD2">G. Environmental Analysis</HD>
        <P>FAA Order 1050.1E identifies FAA actions that are categorically excluded from preparation of an environmental assessment or environmental impact statement under the National Environmental Policy Act in the absence of extraordinary circumstances. The FAA has determined this rulemaking action qualifies for the categorical exclusion identified in paragraph 312f and involves no extraordinary circumstances.</P>
        <HD SOURCE="HD1">V. Executive Order Determinations</HD>
        <HD SOURCE="HD2">A. Executive Order 12866</HD>
        <P>See the “Regulatory Evaluation” discussion in the “Regulatory Notices and Analyses” section elsewhere in this preamble.</P>
        <HD SOURCE="HD2">B. Executive Order 13132, Federalism</HD>
        <P>The FAA has analyzed this proposed rule under the principles and criteria of Executive Order 13132, Federalism. The agency has determined that this action would not have a substantial direct effect on the States, or the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government, and, therefore, would not have Federalism implications.</P>
        <HD SOURCE="HD2">C. Executive Order 13211, Regulations That Significantly Affect Energy Supply, Distribution, or Use</HD>
        <P>The FAA analyzed this proposed rule under Executive Order 13211, Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use (May 18, 2001). The agency has determined that it would not be a “significant energy action” under the executive order and would not be likely to have a significant adverse effect on the supply, distribution, or use of energy.</P>
        <HD SOURCE="HD1">VI. Additional Information</HD>
        <HD SOURCE="HD2">A. Comments Invited</HD>
        <P>The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. The agency also invites comments relating to the economic, environmental, energy, or federalism impacts that might result from adopting the proposals in this document. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should send only one copy of written comments, or if comments are filed electronically, commenters should submit only one time.</P>
        <P>The FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. The agency may change this proposal in light of the comments it receives.</P>
        <HD SOURCE="HD2">B. Availability of Rulemaking Documents</HD>
        <P>An electronic copy of rulemaking documents may be obtained from the Internet by—</P>
        <P>1. Searching the Federal eRulemaking Portal (<E T="03">http://www.regulations.gov</E>);</P>
        <P>2. Visiting the FAA's Regulations and Policies web page at<E T="03">http://www.faa.gov/regulations_policies</E>or</P>
        <P>3. Accessing the Government Printing Office's web page at<E T="03">http://www.fdsys.gov.</E>Copies may also be obtained by sending a request to the Federal Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Commenters must identify the docket or notice number of this rulemaking.</P>
        <P>All documents the FAA considered in developing this proposed rule, including economic analyses and technical reports, may be accessed from the Internet through the Federal eRulemaking Portal referenced in item (1) above.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects</HD>
          <CFR>14 CFR Part 400</CFR>
          <P>Space transportation and exploration; licensing.</P>
          <CFR>14 CFR Part 401</CFR>
          <P>Space transportation and exploration.</P>
        </LSTSUB>
        <HD SOURCE="HD1">The Proposed Amendment</HD>
        <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend Chapter III of Title 14 Code of Federal Regulations as follows:</P>
        <PART>
          <HD SOURCE="HED">PART 400—BASIS AND SCOPE</HD>
          <P>1. The authority citation for part 400 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>51 U.S.C. 50901-50923.</P>
            <P>2. Revise § 400.2 to read as follows:</P>
          </AUTH>
          <SECTION>
            <SECTNO>§ 400.2</SECTNO>
            <SUBJECT>Scope.</SUBJECT>
            <P>These regulations set forth the procedures and requirements applicable to the authorization and supervision under 51 U.S.C. subtitle V, chapter 509, of commercial space transportation activities conducted in the United States or by a U.S. citizen. The regulations in this chapter do not apply to—</P>

            <P>(a) Space activities carried out by the United States Government on behalf of the United States government;<PRTPAGE P="50963"/>
            </P>
            <P>(b) The launch of an amateur rocket as defined in § 1.1 of chapter I; or</P>
            <P>(c) A launch that meets the following criteria:</P>
            <P>(1)<E T="03">Launch vehicle.</E>The launch vehicle must—</P>
            <P>(i) Be unmanned;</P>
            <P>(ii) Be powered by a liquid or hybrid rocket motor; and</P>
            <P>(iii) Carry no more than 5,000 pounds of propellant.</P>
            <P>(2)<E T="03">Tether system.</E>The tether system must—</P>
            <P>(i) Have established strength properties that will not yield or fail under—</P>
            <P>(A) The maximum dynamic load on the system; or</P>
            <P>(B) A load equivalent to two times the maximum potential engine thrust.</P>
            <P>(ii) Have a minimum safety factor of 3.0 for yield stress and 5.0 for ultimate stress.</P>
            <P>(iii) Constrain the launch vehicle within 75 feet above ground level.</P>
            <P>(iv) Display no damage prior to the launch.</P>
            <P>(v) Be insulated or located such that it will not experience thermal damage due to the launch vehicle's exhaust.</P>
            <P>(3)<E T="03">Separation distances.</E>The launch operator must separate its launch from the public and the property of the public by a distance no less than that provided for each quantity of propellant listed in Table A of this section.</P>
            <GPOTABLE CDEF="s50,12" COLS="2" OPTS="L2,i1">
              <TTITLE>Table A—Separation Distances for Tethered Launches</TTITLE>
              <BOXHD>
                <CHED H="1">Propellant carried (lbs)</CHED>
                <CHED H="1">Distance (ft) from the launch point</CHED>
              </BOXHD>
              <ROW>
                <ENT I="01">1-500</ENT>
                <ENT>900</ENT>
              </ROW>
              <ROW>
                <ENT I="01">501-1,000</ENT>
                <ENT>1,200</ENT>
              </ROW>
              <ROW>
                <ENT I="01">1,001-1,500</ENT>
                <ENT>1,350</ENT>
              </ROW>
              <ROW>
                <ENT I="01">1,501-2,000</ENT>
                <ENT>1,450</ENT>
              </ROW>
              <ROW>
                <ENT I="01">2,001-2,500</ENT>
                <ENT>1,550</ENT>
              </ROW>
              <ROW>
                <ENT I="01">2,501-3,000</ENT>
                <ENT>1,600</ENT>
              </ROW>
              <ROW>
                <ENT I="01">3,001-3,500</ENT>
                <ENT>1,650</ENT>
              </ROW>
              <ROW>
                <ENT I="01">3,501-4,000</ENT>
                <ENT>1,700</ENT>
              </ROW>
              <ROW>
                <ENT I="01">4,001-4,500</ENT>
                <ENT>1,750</ENT>
              </ROW>
              <ROW>
                <ENT I="01">4,501-5,000</ENT>
                <ENT>1,800</ENT>
              </ROW>
            </GPOTABLE>
          </SECTION>
        </PART>
        <PART>
          <HD SOURCE="HED">PART 401—ORGANIZATION AND DEFINITIONS</HD>
          <P>3. The authority citation for part 401 continues to read as follows:</P>
          <AUTH>
            <HD SOURCE="HED">Authority:</HD>
            <P>51 U.S.C. 50101-50923.</P>
          </AUTH>
          
          <P>4. Amend § 401.5 by adding the definition of<E T="03">tether system</E>in alphabetical order to read as follows:</P>
          <SECTION>
            <SECTNO>§ 401.5</SECTNO>
            <SUBJECT>Definitions.</SUBJECT>
            <STARS/>
            <P>Tether system means a device that contains launch vehicle hazards by physically constraining a launch vehicle in flight to a specified range from its launch point. A tether system includes all components, from the point of attachment to the vehicle to a solid base, that experience load during a tethered launch.</P>
            <STARS/>
          </SECTION>
          <SIG>
            <DATED>Issued in Washington, DC, on August 16, 2012.</DATED>
            <NAME>George C. Nield,</NAME>
            <TITLE>Associate Administrator, Commercial Space Transportation.</TITLE>
          </SIG>
        </PART>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20686 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4910-13-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <CFR>19 CFR Part 351</CFR>
        <RIN>RIN 0625-AA91</RIN>
        <SUBJECT>Modification of Regulations Regarding the Definition of Factual Information and Time Limits for Submission of Factual Information</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Import Administration, International Trade Administration, Department of Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Proposed rule; extension of comment period.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>On July 10, 2012, the Department of Commerce (the Department) published a proposed rule in the<E T="04">Federal Register</E>requesting comments regarding a proposed modification to the definition of factual information and to the time limits for the submission of factual information in antidumping (AD) and countervailing duty (CVD) proceedings. The Department has decided to extend the comment period, making the new deadline for the submission of public comment September 24, 2012.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>To be assured of consideration, comments must be received no later than September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>All comments must be submitted through the Federal eRulemaking Portal at<E T="03">http://www.regulations.gov</E>, Docket No. ITA-2012-0004, unless the commenter does not have access to the internet. Commenters who do not have access to the internet may submit the original and two copies of each set of comments by mail or hand delivery/courier. All comments should be addressed to Paul Piquado, Assistant Secretary for Import Administration, Room 1870, Department of Commerce, 14th Street and Constitution Ave. NW., Washington, DC 20230. The comments should also be identified by Regulation Identifier Number (RIN) 0625-AA91.</P>

          <P>The Department will consider all comments received before the close of the comment period. The Department will not accept comments accompanied by a request that part or all of the material be treated confidentially because of its business proprietary nature or for any other reason. All comments responding to this notice will be a matter of public record and will be available for inspection at Import Administration's Central Records Unit (Room 7046 of the Herbert C. Hoover Building) and online at<E T="03">http://www.regulations.gov</E>and on the Department's Web site at<E T="03">http://www.trade.gov/ia/</E>.</P>

          <P>Any questions concerning file formatting, document conversion, access on the internet, or other electronic filing issues should be addressed to Andrew Lee Beller, Import Administration Webmaster, at (202) 482-0866, email address:<E T="03">webmaster-support@ita.doc.gov</E>.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Joanna Theiss at (202) 482-5052 or Charles Vannatta at (202) 482-4036.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>On July 10, 2012, the Department published a proposed rule in the<E T="04">Federal Register</E>requesting comments regarding a proposed modification to the definition of factual information and to the time limits for the submission of factual information in AD and CVD proceedings.<E T="03">See Modification of Regulations Regarding the Definition of Factual Information and Time Limits for Submission of Factual Information,</E>77 FR 40534 (July 10, 2012). That notice indicated that public comments are due on August 24, 2012. On August 14, 2012, the Committee to Support U.S. Trade Laws requested that the Department extend this deadline. In response to this request, and to ensure parties have the opportunity to prepare thorough and comprehensive comments, the Department is extending the deadline for submitting comments by thirty days, until September 24, 2012. Comments received after the end of the comment period will be considered, if possible, but their consideration cannot be assured.</P>
        <SIG>
          <DATED>Dated: August 16, 2012.</DATED>
          <NAME>Ronald K. Lorentzen,</NAME>
          <TITLE>Acting Assistant Secretary for Import Administration.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20785 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <PRTPAGE P="50964"/>
        <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R03-OAR-2010-0152; FRL-9718-6]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Air Quality Implementation Plans; District of Columbia; the 2002 Base Year Inventory</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 fine particulate matter (PM<E T="52">2.5</E>) 2002 base year emissions inventory portion of the District of Columbia State Implementation Plan (SIP) revision submitted by the District of Columbia, through the District Department of the Environment (DDOE), on April 2, 2008. The emissions inventory is part of the District of Columbia's April 2, 2008 SIP revision that was submitted to meet nonattainment requirements related to the District of Columbia's portion of the Washington DC-MD-VA nonattainment area (hereafter referred to as DC Area or Area) for the 1997 PM<E T="52">2.5</E>National Ambient Air Quality Standard (NAAQS) SIP. EPA is proposing to approve the 2002 base year PM<E T="52">2.5</E>emissions inventory submitted by DDOE in accordance with the requirements of the Clean Air Act (CAA).</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received on or before September 24, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID Number EPA-R03-OAR-2010-0152 by one of the following methods:</P>
          <P>A.<E T="03">www.regulations.gov.</E>Follow the on-line instructions for submitting comments.</P>
          <P>B.<E T="03">Email: mastro.donna@epa.gov</E>.</P>
          <P>C.<E T="03">Mail:</E>EPA-R03-OAR-2010-0152, Donna Mastro, Acting Associate Director, Office of Air Program Planning, Mailcode 3AP30, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.</P>
          <P>D.<E T="03">Hand Delivery:</E>At the previously-listed EPA Region III address. Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-R03-OAR-2010-0152. EPA's policy is that all comments received will be included in the public docket without change, and may be made available online at<E T="03">www.regulations.gov,</E>including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through<E T="03">www.regulations.gov</E>or email. The<E T="03">www.regulations.gov</E>Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through<E T="03">www.regulations.gov,</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses.</P>
          <P>
            <E T="03">Docket:</E>All documents in the electronic docket are listed in the<E T="03">www.regulations.gov</E>index. Although listed in the index, some information is not publicly available, i.e., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in<E T="03">www.regulations.gov</E>or in hard copy during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal are available at the District of Columbia Department of the Environment, Air Quality Division, 1200 1st Street NE., 5th floor, Washington, DC 20002.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Asrah Khadr, (215) 814-2071, or by email at khadr.asrah@epa.gov.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <EXTRACT>
          
          <FP SOURCE="FP-2">I. Background</FP>
          <FP SOURCE="FP-2">II. Summary of SIP Revision</FP>
          <FP SOURCE="FP-2">III. Proposed Action</FP>
          <FP SOURCE="FP-2">IV. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background</HD>

        <P>Throughout this document, whenever “we,” “us,” or “our” is used, we mean EPA. On July 18, 1997 (62 FR 38652), EPA published the 1997 PM<E T="52">2.5</E>NAAQS, including an annual standard of 15.0 µg/m<SU>3</SU>based on a 3-year average of annual mean PM<E T="52">2.5</E>concentrations, and a 24-hour (or daily) standard of 65 µg/m<SU>3</SU>based on a 3-year average of the 98th percentile of 24-hour concentrations. EPA established the standards based on significant evidence and numerous health studies demonstrating that serious health effects are associated with exposures to PM<E T="52">2.5</E>.</P>

        <P>Following promulgation of a new or revised NAAQS, EPA is required by the CAA to designate areas throughout the United States as attaining or not attaining the NAAQS; this designation process is described in section 107(d)(1) of the CAA. In 1999, EPA and state air-quality agencies initiated the monitoring process for the 1997 PM<E T="52">2.5</E>NAAQS and, by January 2001, established a complete set of air-quality monitors. On January 5, 2005, EPA published initial air-quality designations for the 1997 PM<E T="52">2.5</E>NAAQS (70 FR 944), which became effective on April 5, 2005, based on air-quality monitoring data for calendar years 2001-03.</P>

        <P>On April 14, 2005, EPA promulgated a supplemental rule amending the agency's initial designations (70 FR 19844), with the same effective date (April 5, 2005) as that which was promulgated at 70 FR 944. As a result of this supplemental rule, PM<E T="52">2.5</E>nonattainment designations are in effect for 39 areas, comprising 208 counties within 20 states (and the District of Columbia) nationwide, with a combined population of approximately 88 million. The DC Area which is the subject of this rulemaking was included in the list of areas not attaining the 1997 PM<E T="52">2.5</E>NAAQS.</P>

        <P>On January 12, 2009 (74 FR 1146), EPA determined that the District of Columbia had attained the 1997 PM<E T="52">2.5</E>NAAQS in the DC Area. That determination was based upon quality assured, quality controlled and certified ambient air monitoring data that showed the Area had monitored attainment of the 1997 PM<E T="52">2.5</E>NAAQS for the 2004-2006 monitoring period and that continued to show attainment of the 1997 PM<E T="52">2.5</E>NAAQS based on the 2005-2007 data. The January 12, 2009 determination suspended the requirements for the District of Columbia to submit an attainment demonstration, associated reasonably available control measures, a reasonable further progress plan, contingency measures, and other planning SIP revisions related to attainment of the standard for so long as the nonattainment area continues to meet the 1997 PM<E T="52">2.5</E>NAAQS. On February 6,<PRTPAGE P="50965"/>2012, DDOE submitted a request for withdrawal of the District of Columbia 1997 PM<E T="52">2.5</E>SIP revisions including the withdrawal of the attainment plan, analysis of reasonably available control measures, attainment demonstration, contingency plans and mobile source budgets. To meet the requirements of CAA section 172(c)(3), DDOE did not request the withdrawal of the 2002 base year emission inventory portion of the 1997 PM<E T="52">2.5</E>SIP revisions. Section 172(c)(3) of the CAA requires submission and approval of a comprehensive, accurate, and current inventory of actual emissions.</P>
        <HD SOURCE="HD1">II. Summary of SIP Revision</HD>

        <P>The 2002 base year emission inventory submitted by DDOE on April 2, 2008 includes emissions estimates that cover the general source categories of point sources, non-road mobile sources, area sources, on-road mobile sources, and biogenic sources. The pollutants that comprise the inventory are nitrogen oxides (NO<E T="52">X</E>), volatile organic compounds (VOCs), PM<E T="52">2.5</E>, coarse particles (PM<E T="52">10</E>), ammonia (NH<E T="52">3</E>), and sulfur dioxide (SO<E T="52">2</E>). EPA has reviewed the results, procedures and methodologies for the base year emissions inventory submitted by DDOE. The year 2002 was selected by DDOE as the base year for the emissions inventory per 40 CFR 51.1008(b). A discussion of the emissions inventory development as well as the emissions inventory can be found in Appendix B of the April 3, 2008 SIP submittal.</P>

        <P>Table 1 provides a summary of the annual 2002 emissions of NO<E T="52">X</E>, VOCs, PM<E T="52">2.5</E>, PM<E T="52">10</E>, NH<E T="52">3</E>, and SO<E T="52">2</E>which were included in the District of Columbia submittal.</P>
        <GPOTABLE CDEF="s25,12C,12C,12C,12C,12C,12C" COLS="7" OPTS="L2,i1">
          <TTITLE>Table 1—Emissions of Pollutants in Tons per Year (TPY)</TTITLE>
          <BOXHD>
            <CHED H="1">Pollutant</CHED>
            <CHED H="1">NO<E T="52">X</E>
            </CHED>
            <CHED H="1">VOCs</CHED>
            <CHED H="1">PM<E T="52">2.5</E>
            </CHED>
            <CHED H="1">PM<E T="52">10</E>
            </CHED>
            <CHED H="1">NH<E T="52">3</E>
            </CHED>
            <CHED H="1">SO<E T="52">2</E>
            </CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Emissions (TPY)</ENT>
            <ENT>15,401.08</ENT>
            <ENT>15,877.34</ENT>
            <ENT>1,076.58</ENT>
            <ENT>3,395.81</ENT>
            <ENT>407.08</ENT>
            <ENT>3,597.33</ENT>
          </ROW>
        </GPOTABLE>
        <P>The CAA section 172(c)(3) emissions inventory is developed by the incorporation of data from multiple sources. States were required to develop and submit to EPA a triennial emissions inventory according to the Consolidated Emissions Reporting Rule (CERR) for all source categories (i.e., point, area, nonroad mobile and on-road mobile). The 2002 emissions inventory was based on data developed by DDOE and the Metropolitan Washington Council of Government (MWCOG). The data were developed according to current EPA emissions inventory guidance, “Emissions Inventory Guidance for Implementation of Ozone and Particulate Matter NAAQS and Regional Haze Regulations,” August 2005. EPA agrees that the process used to develop this emissions inventory is adequate to meet the requirements of CAA section 172(c)(3), the implementing regulations, and EPA guidance for emission inventories. More information regarding the review of the base year inventory can be found in the technical support document (TSD) titled “2002 SIP Base Year Inventory” that is located in this docket.</P>
        <HD SOURCE="HD1">IV. Proposed Action</HD>
        <P>EPA is proposing to approve the 2002 base year emissions inventory portion of the SIP revision submitted by the District of Columbia through DDOE on April 2, 2008. We have made the determination that this action is consistent with section 110 of the CAA. EPA is soliciting public comments on the issues discussed in this document. These comments will be considered before taking final action.</P>
        <HD SOURCE="HD1">V. Statutory and Executive Order Reviews</HD>
        <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

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

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
        <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and</P>
        <P>• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).</P>
        <P>In addition, this proposed rule, pertaining to the PM<E T="52">2.5</E>2002 base year emissions inventory portion of the District of Columbia SIP, does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Nitrogen dioxide, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds.</P>
        </LSTSUB>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>42 U.S.C. 7401<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: August 8, 2012.</DATED>
          <NAME>W.C. Early,</NAME>
          <TITLE>Acting Regional Administrator, Region III.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20779 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
    <PRORULE>
      <PREAMB>
        <PRTPAGE P="50966"/>
        <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
        <CFR>40 CFR Part 52</CFR>
        <DEPDOC>[EPA-R03-OAR-2008-0929; FRL-9718-7]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Air Quality Implementation Plans; Maryland; Attainment Demonstration for the 1997 8-Hour Ozone National Ambient Air Quality Standard for the Philadelphia-Wilmington-Atlantic City Moderate Nonattainment Area</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 attainment demonstration portion of the attainment plan submitted by the State of Maryland through the Maryland Department of the Environment (MDE) as a State Implementation Plan (SIP) revision that demonstrates attainment of the 1997 8-hour ozone national ambient air quality standard (NAAQS) for the Philadelphia-Wilmington-Atlantic City, PA-NJ-MD-DE, moderate nonattainment area (Philadelphia Area) by the applicable attainment date of June 2011. EPA has determined that Maryland's SIP revision meets the applicable requirements of the Clean Air Act (CAA). This action is being taken in accordance with the CAA.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received on or before September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID Number EPA-R03-OAR-2008-0929 by one of the following methods:</P>
          <P>A.<E T="03">www.regulations.gov.</E>Follow the on-line instructions for submitting comments.</P>
          <P>B.<E T="03">Email: mastro.donna@epa.gov.</E>
          </P>
          <P>C.<E T="03">Mail:</E>EPA-R03-OAR-2008-0929, Donna Mastro, Acting Associate Director, Office of Air Planning Program, Mailcode 3AP30, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.</P>
          <P>D.<E T="03">Hand Delivery:</E>At the previously-listed EPA Region III address. Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-R03-OAR-2008-0929. EPA's policy is that all comments received will be included in the public docket without change, and may be made available online at<E T="03">www.regulations.gov,</E>including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through<E T="03">www.regulations.gov</E>or email. The<E T="03">www.regulations.gov</E>Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through<E T="03">www.regulations.gov,</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses.</P>
          <P>
            <E T="03">Docket:</E>All documents in the electronic docket are listed in the<E T="03">www.regulations.gov</E>index. Although listed in the index, some information is not publicly available, i.e., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in<E T="03">www.regulations.gov</E>or in hard copy during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal are available at the Maryland Department of the Environment, 1800 Washington Boulevard, Suite 705, Baltimore, Maryland 21230.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Rose Quinto, (215) 814-2182, or by email at<E T="03">quinto.rose@epa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document, whenever “we,” “us,” or “our” is used, we mean EPA.</P>
        <P>The following is provided to aid in locating information in this preamble.</P>
        
        <EXTRACT>
          <FP SOURCE="FP-2">I. What action is EPA proposing to take?</FP>
          <FP SOURCE="FP-2">II. What is the background for EPA's proposed action?</FP>
          <FP SOURCE="FP-2">III. What are the CAA requirements for a moderate 8-hour ozone nonattainment area?</FP>
          <FP SOURCE="FP-2">IV. What is included in Maryland's SIP submittal?</FP>
          <FP SOURCE="FP-2">V. What is EPA's review of Maryland's modeled attainment demonstration and weight of evidence analysis for the Philadelphia area?</FP>
          <FP SOURCE="FP-2">VI. Proposed Action</FP>
          <FP SOURCE="FP-2">VII. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. What action is EPA proposing to take?</HD>
        <P>EPA is proposing to approve the attainment demonstration element of a SIP revision submitted by MDE to EPA on June 4, 2007. The June 4, 2007 SIP revision consisted of Maryland's attainment plan for the 1997 8-hour ozone NAAQS for the Philadelphia Area. The ozone attainment plan submitted on June 4, 2007 included the attainment demonstration for the Philadelphia Area and its associated motor vehicle emission budgets (MVEBs) used for transportation conformity purposes in Cecil County, Maryland. The Maryland attainment plan also included a 2002 base year emissions inventory, an analysis of the reasonably available control measures/reasonably available control technology (RACM/RACT), the 2008 rate of progress (ROP) plan and its associated MVEBs, and contingency measures. The ROP plan and its MVEBs, 2002 base year emissions inventory, RACM/RACT analysis, and contingency measures (elements of the June 4, 2007 attainment plan) were approved on June 11, 2010 (75 FR 33172). Therefore, in this action, EPA is only proposing to approve Maryland's attainment demonstration for the 1997 8-hour ozone NAAQS for the Philadelphia Area.</P>

        <P>In a separate and concurrent process, EPA is conducting a process to find the MVEBs for Cecil County associated with the Maryland attainment demonstration for the Philadelphia Area adequate. Concurrently with EPA's proposal to approve the SIP, a notice will be posted on EPA's Web site at<E T="03">http://www.epa.gov/otaq/stateresources/transconf/currsips.htm</E>for the purpose of opening a 30-day public comment period on the adequacy of the MVEBs for Cecil County in the June 4, 2007 SIP revision's attainment demonstration for the Philadelphia Area. That notice will inform the public of the availability of the Maryland SIP revision on MDE's Web site. Interested members of the public could access Maryland's June 4, 2007 SIP revision on line at<E T="03">www.regulations.gov,</E>Docket No. EPA-R03-OAR-2008-0929. Following EPA's public comment period, responses to<PRTPAGE P="50967"/>any comments received will be addressed.</P>
        <P>EPA has determined that Maryland's attainment demonstration meets the applicable requirements of the CAA because it demonstrates attainment by the applicable date of June 15, 2011.<SU>1</SU>

          <FTREF/>EPA's analysis and findings are discussed in this proposed rulemaking. In addition, a technical support document (TSD) for this proposal entitled “Technical Support Document for the Modeling and Weight of Evidence Portions of the Cecil County, Maryland 8-Hour Ozone State Implementation Plan,” dated June 22, 2012 (referred to herein as the Attainment TSD) is available on line at<E T="03">www.regulations.gov</E>, Docket No. EPA-R03-OAR-2008-0929. The Attainment TSD provides additional explanation on EPA's analysis supporting this proposed approval of the attainment demonstration.</P>
        <FTNT>
          <P>
            <SU>1</SU>As explained in detail in Section II, EPA approved on January 21, 2011 a one-year extension of the Philadelphia Area's attainment date from June 2010 to June 2011. 76 FR 3840.</P>
        </FTNT>
        <HD SOURCE="HD1">II. What is the background for EPA's proposed action?</HD>
        <P>On June 4, 2007, MDE submitted a comprehensive SIP revision to meet the requirements for an attainment plan for the 1997 8-hour ozone NAAQS for the Philadelphia Area. On May 8, 2009 (74 FR 21599), EPA proposed to disapprove the ozone attainment demonstration element of the June 4, 2007 attainment plan of the comprehensive SIP revision. EPA proposed to disapprove the attainment demonstration of the 1997 8-hour NAAQS for the Philadelphia Area because EPA determined that the photochemical modeling did not demonstrate attainment, and the weight of evidence analysis used to support the attainment demonstration did not provide sufficient evidence that the Philadelphia Area would attain the 1997 8-hour ozone NAAQS by the June 2010 deadline for the ozone nonattainment areas classified as moderate. On December 9, 2011 (76 FR 76929), EPA withdrew the May 8, 2009 proposed disapproval of the attainment demonstration for the Philadelphia Area based on ambient air quality monitoring data demonstrating attainment.</P>
        <P>Moderate areas are required to attain the 1997 8-hour ozone NAAQS by no later than six years after designation. Therefore, the Philadelphia Area was to attain by June 15, 2010. See 40 CFR 51.903 and 69 FR 23951 (April 30, 2004). However, the Philadelphia Area qualified for a one year extension of its attainment date, based on the complete, certified ambient air quality data for the 2009 ozone season. See 40 CFR 51.907. On January 21, 2011 (76 FR 3840), EPA approved a one year extension of the Philadelphia Area's attainment date from June 15, 2010 to June 15, 2011, based in part on air quality data recorded during the 2009 ozone season.</P>
        <P>On March 26, 2012 (77 FR 17341), EPA published two determinations regarding the 1997 8-hour ozone NAAQS for the Philadelphia Area. First, EPA made a clean data determination that the Philadelphia Area had attained the 1997 8-hour ozone NAAQS. This determination was based upon complete, quality assured, and certified ambient air monitoring data that showed the Philadelphia Area had monitored attainment of the 1997 8-hour ozone NAAQS for the 2008-2010 monitoring period. Ambient air monitoring data for the 2009-2011 monitoring period is consistent with continued attainment. Second, pursuant to section 181(b)(2)(A) of the CAA, EPA made a determination of attainment that the Philadelphia Area had attained the 1997 8-hour ozone NAAQS by its attainment date of June 15, 2011.</P>
        <HD SOURCE="HD1">III. What are the CAA requirements for a moderate 8-hour ozone nonattainment area?</HD>
        <P>In 1997, EPA revised the health-based NAAQS for ozone, setting it at 0.08 parts per million (ppm) averaged over an 8-hour time frame. EPA set the 1997 8-hour ozone standard based on scientific evidence demonstrating that ozone causes adverse health effects at lower ozone concentrations and over longer periods of time than was understood when the pre-existing 1-hour ozone standard was set. EPA determined that the 1997 8-hour standard would be more protective of human health, especially for children and adults who are active outdoors, and individuals with a pre-existing respiratory disease, such as asthma.</P>
        <P>On April 30, 2004 (69 FR 23951), EPA finalized its attainment/nonattainment designations for areas across the country with respect to the 1997 8-hour ozone standard. These actions became effective on June 15, 2004. In addition, on April 30, 2004 (69 FR 23951), EPA promulgated its Phase 1 Implementation Rule which provided how areas designated nonattainment for the 1997 8-hour ozone standard would be classified. Among those nonattainment areas is the Philadelphia Area. The Philadelphia Area includes all three counties in Delaware, five counties in eastern Pennsylvania, one county in Maryland, and eight counties in southern New Jersey. Therefore, the Philadelphia Area includes Cecil County in Maryland. EPA's Phase 2 Implementation Rule published on November 29, 2005 (70 FR 71612) specifies that states must submit attainment demonstrations for their nonattainment areas to EPA by no later than three years from the effective date of designation, that is, by June 15, 2007. See 40 CFR 51.908(a).</P>
        <P>Pursuant to the Phase 1 Implementation Rule, an area was classified under subpart 2 of Title I of the CAA based on its 8-hour design value if it had a 1-hour design value at or above 0.12 ppm. Based on this criterion, the Philadelphia Area was classified under subpart 2 as a moderate nonattainment area. The Phase 2 Implementation Rule addressed the control obligations that apply to areas classified under subpart 2. Among other things, the Phase 1 and 2 Implementation Rules outline the required SIP elements and deadlines for those various requirements in areas designated as moderate nonattainment.</P>
        <HD SOURCE="HD1">IV. What is included in Maryland's SIP submittal?</HD>
        <P>On June 4, 2007, Maryland submitted a comprehensive attainment plan as a SIP revision for the 1997 8-hour ozone NAAQS. The SIP revision included an attainment demonstration with MVEBs, the ROP plan with MVEBs, a RACM/RACT analysis, the 2002 base year emissions inventory, and contingency measures. The attainment demonstration of the June 4, 2007 SIP submittal is the only subject of this proposed rulemaking. In a separate and concurrent process, EPA is proposing an adequacy determination for the 2009 MVEBs associated with the ozone attainment demonstration for Cecil County in Maryland. The other elements of the June 4, 2007 SIP submittal were approved by EPA on June 11, 2010 (75 FR 33172).</P>
        <HD SOURCE="HD1">V. What is EPA's review of Maryland's modeled attainment demonstration and weight of evidence analysis for the Philadelphia area?</HD>

        <P>Section 110(a)(2)(K) of the CAA requires states to prepare air quality modeling to show how they will meet ambient air quality standards. EPA determined that areas classified as moderate or above must use photochemical grid modeling or any other analytical method determined by the Administrator to be at least as effective to demonstrate attainment of the ozone health-based standard by the required attainment date (November 29, 2005, 70 FR 71612, and 40 CFR 51.908). On April 30, 2004 (69 FR 23951 and 40<PRTPAGE P="50968"/>CFR 51.903), EPA specified how areas would be classified with regard to the 8-hour ozone standard set by EPA in 1997. On April 30, 2004 (69 FR 23858), EPA followed these procedures and classified the Philadelphia Area as moderate, and the nonattainment area was required to attain the 1997 8-hour ozone standard by June 2010. Because the attainment date was June 2010 for moderate areas, states had to achieve emission reductions by the ozone season of 2009 in order for ozone concentrations to be reduced and show attainment during the last complete ozone season before the 2010 deadline.</P>
        <HD SOURCE="HD2">A. EPA Guidance for Using Models To Determine Attainment</HD>
        <P>EPA's photochemical modeling guidance is found at<E T="03">Guidance on the Use of Models and Other Analyses for Demonstrating Attainment of Air Quality Goals for Ozone, PM</E>
          <E T="54">2.5</E>,<E T="03">and Regional Haze</E>, EPA-454/B-07-002, April 2007. The photochemical modeling guidance is divided into two parts. One part describes how to use a photochemical grid model for ozone to assess whether an area will come into attainment of the air quality standard. A second part describes how the user should perform supplemental analyses, using various analytical methods, to determine if the model over predicts, under predicts, or accurately predicts the air quality improvement projected to occur by the attainment date. The guidance indicates that states should review these supplemental analyses, in combination with the modeling analysis, in a “weight of evidence” assessment to determine whether each area is likely to achieve timely attainment.</P>

        <P>A description of how the attainment demonstration from the June 4, 2007 SIP revision addresses this EPA modeling guidance for a modeled attainment demonstration can be found in the Attainment TSD, available on line at<E T="03">www.regulations.gov</E>, Docket number EPA-R03-OAR-2008-0929.</P>
        <P>In the June 4, 2007 SIP revision, the photochemical grid model used projected emissions for 2009, including emission changes due to regulations Maryland and its neighboring states were planning to implement and expected growth by the 2009 ozone season. Meteorological conditions from 2002, the same as the base year modeling, were used in the projection modeling for 2009. Using the base case meteorology allows the effect of changes in states' emissions to be determined without being influenced by yearly fluctuations in meteorology and is consistent with EPA guidance.</P>
        <P>The attainment test used in the Philadelphia Area modeling demonstration involved the application of model-based relative response factors (RRFs) to base year design values at each monitor to produce projected future year design values (2009). The projected 2009 design values represent design values that should result from emission controls Maryland and other states planned to have in place in 2009. As discussed in the Attainment TSD, the 2009 design values should be less than or equal to 84 parts per billion (ppb) at all monitoring stations to meet the attainment test. The SIP modeling predicts that in 2009, the Philadelphia Area will not pass the attainment test since design values are projected to be over the 84 ppb standard.</P>
        <P>In summary, the basic photochemical grid modeling presented in the Maryland SIP revision meets EPA's guidelines and when used with the methods recommended in EPA's modeling guidance, is acceptable to EPA. However, when EPA's attainment test is applied to the modeling results, the 2009 ozone design value is predicted to be 91 ppb in the Philadelphia Area. Thus, based on EPA's modeled attainment test, the Philadelphia Area has not demonstrated that it will reach attainment of the 1997 8-hour ozone standard in the attainment year with the modeled emission reduction strategies committed to by Maryland and the neighboring states in the Ozone Transport Region (OTR). Therefore, a weight of evidence (WOE) analysis was used by Maryland and reviewed by EPA to demonstrate attainment of the 1997 8-hour ozone standard in the Philadelphia Area.</P>
        <HD SOURCE="HD2">B. Weight of Evidence Demonstration</HD>
        <P>EPA's modeling guidance describes how to use a photochemical grid model and additional analytical methods to complete a WOE analysis to estimate if emissions control strategies will lead to attainment of the 1997 8-hour ozone NAAQS. A WOE analysis is a supporting analysis that helps to determine if the results of the photochemical modeling system are correctly (or not correctly) predicting future air quality.</P>
        <P>The WOE analysis presented in the Maryland SIP revision describes the analyses performed, databases used, key assumptions and outcomes of each analysis, and why the evidence, viewed as a whole, supports a conclusion that the Philadelphia Area will attain the NAAQS despite the model prediction that some monitors' future design values exceed the 1997 8-hour ozone NAAQS.</P>
        <P>EPA's review of the WOE analysis in the Attainment TSD included the following: (1) A comparison of model-predicted 2009 ozone design values to monitored design values for 2006-2011; (2) an analysis of recent ozone trends in the Philadelphia Area; and (3) alternative methods for calculating the 2009 ozone design value. As discussed in detail in the Attainment TSD, the 2009 model over predicted ozone design values for 2006-2011 for most cases. Further, in the Attainment TSD, EPA's analysis concurs with Maryland's analysis of significant declining trends in the Philadelphia Area ozone design values. The Attainment TSD concluded that additional emissions reductions have continued to occur due mostly to local controls in each nonattainment area and to a few reductions in major sources due to initiatives in the OTR. The Attainment TSD noted that monitored ozone design values for each of the Philadelphia Area monitors continued to decline and to show attainment in 2010 and 2011.</P>
        <P>As discussed in detail in the Attainment TSD, Maryland's attainment demonstration also asserted an alternative baseline concentration could be used to demonstrate attainment. However, EPA determined in the Attainment TSD that the modeling would still show nonattainment even with this alternative baseline value. Likewise, EPA determined in the Attainment TSD that Maryland's recalculation of 2009 modeled ozone design values with a relative response factor in Maryland's June 4, 2007 SIP revision reduced the modeled 2009 ozone design values slightly but the model still over predicts the actual monitored 2009 design values. In conclusion, in the Attainment TSD, EPA determined with the benefit of 2009 monitored design values that the model in Maryland's June 4, 2007 SIP revision overpredicts actual concentrations even when model adjustments are made as discussed herein to attempt to account for model over prediction.</P>

        <P>EPA has determined that the Maryland photochemical grid modeling results predict a 2009 projected design value well above the 1997 8-hour ozone NAAQS for the Philadelphia Area. However, after taking into account WOE arguments regarding model over prediction of the 2009 monitored design values and recent ozone design value trends, which show attainment of the standard by 2010, EPA determined that the Maryland SIP has demonstrated attainment of the ozone standard by the extended attainment date of June 2011 as discussed in detail in the Attainment TSD.<PRTPAGE P="50969"/>
        </P>
        <HD SOURCE="HD1">V. Proposed Action</HD>
        <P>EPA is proposing to approve the 1997 8-hour ozone NAAQS attainment demonstration, included in Maryland's June 4, 2007 attainment plan SIP revision, as demonstrating attainment for the Philadelphia Area by the applicable attainment date of June 15, 2011. EPA is soliciting public comments on the issues discussed in this document. These comments will be considered before taking final action.</P>
        <HD SOURCE="HD1">VI. Statutory and Executive Order Reviews</HD>
        <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

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

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
        <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and</P>
        <P>• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).</P>
        
        <FP>In addition, this proposed rule, pertaining to the 1997 8-hour ozone attainment demonstration for the Philadelphia Area submitted by Maryland on June 4, 2007, does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</FP>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Nitrogen dioxide, Reporting and recordkeeping requirements, Volatile organic compounds.</P>
        </LSTSUB>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>42 U.S.C. 7401<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: August 8, 2012.</DATED>
          <NAME>W.C. Early,</NAME>
          <TITLE>Acting Regional Administrator,Region III.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20780 Filed 8-22-12; 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-R03-OAR-2012-0511; FRL-9718-8]</DEPDOC>
        <SUBJECT>Approval and Promulgation of Air Quality Implementation Plans;Maryland; Low Emission Vehicle Program</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 several State Implementation Plan (SIP) revisions submitted by the State of Maryland. These revisions pertain to adoption by Maryland of the California Low Emission Vehicle Program (LEV), or California Clean Car Program. The underlying Maryland regulations require all new 2011 and subsequent model year passenger cars, light trucks, and medium-duty vehicles having a gross vehicle weight rating (GVWR) of 14,000 pounds or less that are sold in Maryland to meet California emission standards.</P>

          <P>The Clean Air Act (CAA) contains authority by which other states may adopt new motor vehicle emissions standards that are identical to California's standards. Specifically, Maryland has adopted California's light and medium-duty new vehicle standards by reference, and then submitted these rules as part of the State's SIP revision to EPA. The Maryland Clean Car program has two objectives. The first is to reduce emissions of nitrogen oxides (NO<E T="52">X</E>) and volatile organic compounds (VOCs), both of which are precursors to the formation of ground level ozone pollution, from new motor vehicles sold in Maryland. The second objective of the program is to reduce greenhouse gas emissions from new motor vehicles weighing under 10,000 pounds GVWR. Maryland submitted supplemental SIP revisions to modify its own program to match updates by California to its program and to harmonize with recently established Federal (and California) greenhouse gas and fuel economy standards promulgated by EPA applicable to 2012-2016 model year vehicles of the same vehicle types covered by Maryland's rules. This action is being taken under the CAA.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments must be received on or before September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit your comments, identified by Docket ID Number EPA-R03-OAR-2012-0511 by one of the following methods:</P>
          <P>A.<E T="03">www.regulations.gov.</E>Follow the on-line instructions for submitting comments.</P>
          <P>B.<E T="03">Email: mastro.donna@epa.gov</E>.</P>
          <P>C.<E T="03">Mail:</E>EPA-R03-OAR-2011-0511, Donna Mastro, Acting Associate Director, Office of Air Program Planning, Mailcode 3AP30, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.</P>
          <P>D.<E T="03">Hand Delivery:</E>At the previously listed EPA Region III address. Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information.</P>
          <P>
            <E T="03">Instructions:</E>Direct your comments to Docket ID No. EPA-R03-OAR-2012-0511. 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<PRTPAGE P="50970"/>identity or contact information unless you provide it in the body of your comment. If you send an email comment directly to EPA without going through<E T="03">www.regulations.gov,</E>your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses.</P>
          <P>
            <E T="03">Docket:</E>All documents in the electronic docket are listed in the<E T="03">www.regulations.gov</E>index. Although listed in the index, some information is not publicly available, i.e., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in<E T="03">www.regulations.gov</E>or in hard copy during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal are available at the Maryland Department of the Environment, 1800 Washington Boulevard, Suite 705, Baltimore, Maryland 21230.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Brian Rehn, (215) 814-2176, or by email at<E T="03">rehn.brian@epa.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document, whenever “we,” “us,” or “our” is used, we mean EPA. On December 20, 2007, the Maryland Department of the Environment submitted a revision (#07-16) to its SIP for its Low Emission Vehicle Program, also referred to in this notice as the Maryland Clean Car Program. On November 12, 2010, Maryland submitted a revision to the 2007 SIP submittal (#10-08) to amend its Clean Car Program rules to reflect changes made by California to its LEV regulations since the time they were originally adopted by Maryland. On June 22, 2011, Maryland submitted another SIP revision (#11-05) consisting of another update to its Clean Car regulations to adopt additional changes made by California to the California LEV rules since Maryland last updated its rules and submitted them to EPA as part of the November 2010 SIP submittal.</P>
        
        <EXTRACT>
          <FP SOURCE="FP-2">I. Description of the SIP Revisions</FP>
          <FP SOURCE="FP1-2">A. Background</FP>
          <FP SOURCE="FP1-2">1. Maryland's Air Quality With Respect to the Ozone NAAQS</FP>
          <FP SOURCE="FP1-2">2. What are the relevant statutory and regulatory requirements for Federal and California vehicle emission standards?</FP>
          <FP SOURCE="FP1-2">3. California's LEV Program</FP>
          <FP SOURCE="FP1-2">4. California Greenhouse Gas Standards</FP>
          <FP SOURCE="FP1-2">5. Federal Greenhouse Gas Vehicle Standards</FP>
          <FP SOURCE="FP1-2">B. Maryland's Clean Car Program</FP>
          <FP SOURCE="FP1-2">1. Overview—Maryland's Clean Car Program Rules</FP>
          <FP SOURCE="FP1-2">2. Maryland's Clean Car Program SIP Revisions</FP>
          <FP SOURCE="FP1-2">a. Maryland's December 2007 SIP Revision</FP>
          <FP SOURCE="FP1-2">b. Maryland's November 2010 SIP Revision</FP>
          <FP SOURCE="FP1-2">c. Maryland's June 2011 SIP Revision</FP>
          <FP SOURCE="FP-2">II. Proposed EPA Action</FP>
          <FP SOURCE="FP-2">III. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Description of the SIP Revision</HD>
        <HD SOURCE="HD2">A. Background</HD>
        <HD SOURCE="HD3">1. Maryland's Air Quality With Respect to the Ozone NAAQS</HD>

        <P>Under the 1990 CAA, eleven counties (and the City of Baltimore) in Maryland were classified as nonattainment under the 1-hour ozone NAAQS. These counties were distributed across three nonattainment areas: the Baltimore severe nonattainment area (Anne Arundel, Baltimore, Carroll, Harford, and Howard Counties, and the City of Baltimore); the Maryland portion of the Washington, DC-MD-VA serious nonattainment area (Calvert, Charles, Frederick, Montgomery, and Prince George's Counties), which was later reclassified to severe; and the Maryland portion of the Philadelphia-Wilmington-Trenton, PA-NJ-MD-DE severe nonattainment area (Cecil County). EPA revoked the 1-hour ozone NAAQS, effective June 15, 2005 (see EPA's final rule entitled “Identification of Ozone Areas for Which the 1-Hour Standard Has Been Revoked” published in the August 3, 2005<E T="04">Federal Register</E>, 70 FR 4470). At the time EPA revoked the 1-hour ozone NAAQS, none of these Maryland counties had been redesignated to attainment.</P>
        <P>Effective June 15, 2004, these same eleven Maryland counties (and the City of Baltimore) were designated by EPA as nonattainment with respect to the 1997 8-hour ozone NAAQS. Under the 1997 8-hour ozone NAAQS, these Maryland counties were again part of three separate nonattainment areas (distributed in the same means as the former 1-hour ozone standard) albeit with slightly different area names and classifications: The Baltimore, MD moderate nonattainment area; the Washington, DC-MD-VA moderate nonattainment area; and Philadelphia-Wilmington-Atlantic City, PA-NJ-MD-DE moderate nonattainment area.</P>
        <P>Upon designation, each of these three nonattainment areas had attainment dates no later than June 2010. On February 28, 2012, EPA determined that the Washington area attained the 1997 8-hour ozone NAAQS by its June 15, 2010 attainment date (77 FR 11739).</P>

        <P>EPA issued a 1-year attainment date extension (i.e., from June 2010 to June 2011) for the Philadelphia-Wilmington-Atlantic City 1997 8-hour ozone nonattainment area, via a final rule published in the January 21, 2011<E T="04">Federal Register</E>(76 FR 3840). On March 26, 2012, EPA determined that the Philadelphia-Wilmington-Atlantic City area attained the 1997 8-hour ozone NAAQS by its June 15, 2011 attainment date (77 FR 17341).</P>

        <P>EPA issued a 1-year attainment date extension (i.e., from June 2010 to June 2011) for the Baltimore 1997 8-hour ozone nonattainment area, via a final rule published in the March 11, 2011<E T="04">Federal Register</E>(76 FR 13289). On February 1, 2012, EPA made a determination that (based on certified ambient air quality monitoring data from 2008-2010) the Baltimore area did not attain the 1997 8-hour ozone NAAQS by its June 15, 2011 attainment date. As a result, the Baltimore area was reclassified from moderate to serious 8-hour ozone nonattainment for the 1997 8-hour ozone NAAQS. Consequently, Maryland must submit SIP revisions for the Baltimore area to meet CAA serious ozone nonattainment requirements by September 2012.</P>
        <P>On May 21, 2012, EPA designated the same eleven Maryland counties (and the City of Baltimore) as nonattainment for the 2008 8-hour ozone NAAQS (77 FR 30088). The Washington area and Maryland portion of the Philadelphia-Wilmington-Atlantic City area were classified as marginal and the Baltimore area was classified as moderate nonattainment under the 2008 8-hour ozone NAAQS.</P>
        <HD SOURCE="HD3">2. What are the relevant statutory and regulatory requirements for Federal and California vehicle emission standards?</HD>

        <P>Vehicles sold in the United States are required by the CAA to be certified to meet U.S. Federal emission standards or to meet California's emission standards. States are forbidden from adopting their own standards, but may adopt California's emission standards for which EPA has granted a waiver of preemption.<PRTPAGE P="50971"/>
        </P>
        <P>Section 209 of the CAA prohibits states from adopting or enforcing standards relating to the control of emissions from new motor vehicles or new motor vehicle engines. However, EPA may waive that prohibition to any state that adopted its own vehicle emission standards prior to March 30, 1966. As California was the only state to do so, California has authority under the CAA to adopt its own motor vehicle emissions standards. California must demonstrate to EPA that its newly adopted standards will be “* * * in the aggregate, at least as protective of public health and welfare as applicable Federal standards.” EPA then must grant a waiver of preemption for California's standards, unless the demonstration fails to meet specific requirements set forth in section 209 of the CAA applicable to such a waiver demonstration.</P>
        <P>Section 177 of the CAA authorizes other states to adopt California's standards in lieu of Federal vehicle standards, provided the state adopting California's standards does so at least two years prior to the model year in which they become effective and that EPA has issued a waiver of preemption to California for such standards.</P>

        <P>In February 2000, EPA adopted the second tier of Federal motor vehicle standards enacted under the 1990 CAA, via a final rule published in the<E T="04">Federal Register</E>on February 10, 2000 (65 FR 6698). These standards, referred to as the Tier 2 Federal emission standards (or Tier 2 standards) were phased in beginning with the 2004 model years, except in states that had formally adopted California's emission standards in lieu of the Federal standards.</P>
        <HD SOURCE="HD3">3. California's LEV Program</HD>
        <P>In 1990, California's Air Resources Board (CARB) adopted its first generation of LEV standards applicable to light and medium duty vehicles. California's vehicle emission standards program is referred to as the California Low Emissions Vehicle Program (CA LEV), or simply as the LEV program. These LEV standards were phased-in beginning in model year 1994 through model year 2003. California adopted a second generation of CA LEV standards, known as LEV II, in 1999. LEV II was phased-in beginning with model year 2004 through model year 2010. EPA granted a Federal preemption waiver for California's LEV II program on April 22, 2003 (68 FR 19811).</P>

        <P>In December 2000, CARB modified the LEV II program to take advantage of some elements of the Federal Tier 2 regulations to ensure that only the cleanest vehicle models would continue to be sold in California. In 2006, CARB adopted technical amendments to its LEV II program that amended the evaporative emission test procedures, onboard refueling vapor recovery and spitback test procedures, exhaust emission test procedures, and vehicle emission control label requirements. These technical amendments align each of California's test procedures and label requirements with its Federal counterpart, in an effort to streamline and harmonize the California and Federal programs and to reduce manufacturer testing burdens and increase in-use compliance. On July 30, 2010, EPA published a notice in the<E T="04">Federal Register</E>confirming that CARB's 2006 technical amendments are within-the-scope of existing waivers of preemption for CARB's LEV II program (75 FR 44948).</P>
        <P>Under California's LEV II program, each vehicle manufacturer must show that their overall fleet for a given model year meets the specified phase-in requirements according to the fleet average non-methane hydrocarbon requirement for that year. The fleet average non-methane hydrocarbon emission limits become progressively lower each model year. The LEV II program requires auto manufacturers to include a “smog index” label on each vehicle sold, which is intended to inform consumers about the amount of pollution coming from that vehicle relative to other vehicles.</P>
        <P>In addition to the LEV II requirements, California requires that minimum percentages of passenger cars and the lightest light-duty trucks marketed in California by a large or intermediate volume manufacturer meet Zero Emission Vehicle (ZEV) standards, hereafter referred to as a ZEV program or ZEV mandate.</P>
        <HD SOURCE="HD3">4. California Greenhouse Gas Vehicle Standards</HD>
        <P>California adopted Assembly Bill 1493 (A.B. 1493), into law in July 2002, which required CARB to develop and adopt greenhouse gas (GHG) emissions standards for light-duty vehicles. A.B. 1493 directed CARB to consider cost-effectiveness, technological capability, economic impacts, and flexibility for manufacturers in meeting the standard.</P>

        <P>In August 2004, CARB approved GHG emissions standards for light-duty vehicles. CARB's standards regulated GHG emissions associated with vehicle operation, air conditioning operation and maintenance, and production of vehicle fuel. The standards apply to noncommercial light-duty passenger vehicles manufactured for model years 2009 and beyond. The standards, specified in terms of carbon dioxide (CO<E T="52">2</E>) equivalent emissions, apply to vehicles in two size classes: passenger cars and small light-duty trucks with a loaded vehicle weight rating of 3,750 pounds or less and to heavy light-duty trucks with a loaded vehicle weight rating greater than 3,750 pounds and a GVWR less than 8,500 pounds. The CO<E T="52">2</E>equivalent emission standard for heavy light trucks includes noncommercial passenger trucks between 8,500 pounds and 10,000 pounds GVWR. The September 2005 CARB regulations set near-term standards (to be phased in between 2009 and 2012) and mid-term standards (to be phased in between 2013 and 2016). After 2016, the CARB GHG emissions standards are fixed.</P>

        <P>Since CARB's adoption of GHG standards, at least thirteen other states (including Maryland) have also elected to adopt CARB's GHG standards (in conjunction with CA LEV standards) under the authority of section 177 of the CAA. In June 2009, EPA granted California's request for a waiver of preemption for its GHG standards, which was published in the July 8, 2009<E T="04">Federal Register</E>(74 FR 32744). Upon issuance of this waiver, California and other states that adopted California's standards were permitted to proceed to implement California's standards.</P>
        <P>In January 2012, CARB approved a new emissions-control program for model years 2017 through 2025. The program combines the control of smog, soot and global warming gases and requirements for greater numbers of ZEV vehicles into a single package of standards called LEV III, or Advanced Clean Cars. EPA has not yet granted a waiver for California's standards for model year 2017 and beyond.</P>
        <HD SOURCE="HD3">5. Federal Greenhouse Gas Vehicle Standards</HD>

        <P>EPA and the National Highway Traffic Safety Administration (NHTSA) established a national program to improve fuel economy of and to reduce GHG from light-duty motor vehicles, via a final rule published in the May 7, 2010<E T="04">Federal Register</E>(88 FR 25324). This rule affects new passenger cars, light-duty trucks, and medium duty passenger vehicles sold in model years 2012 through 2016. Under this national program, adopted in coordination with California, automobile manufacturers face a single set of national emissions standards that will meet both Federal and California emissions requirements. California enacted several actions to allow manufacturers to meet a single set of standards under the national GHG rules, allowing for compliance with California requirements through<PRTPAGE P="50972"/>compliance with federal standards—resulting in a harmonized approach to emissions control.</P>

        <P>EPA and NHTSA issued a joint proposal in the December 1, 2011<E T="04">Federal Register</E>(76 FR 74854) to further reduce greenhouse gas emissions and to improve fuel economy of new light- and medium-duty vehicles sold beyond the 2016 model year. This proposed rule would extend the National Program beyond 2016 by tightening GHG and CAFE standards between model years 2017 and 2025.</P>
        <HD SOURCE="HD2">B. Maryland's Clean Car Program</HD>
        <HD SOURCE="HD3">1. Overview—Maryland's Clean Car Program Rules</HD>
        <P>In order to address ambient air quality in the state, Maryland's legislature adopted and the Governor signed the Maryland Clean Cars Act of 2007, purpose of which was to implement the California's LEV program. This statute compelled the adoption by the Maryland Department of Environment of a final rule in November 2007 to implement California's LEV standards. This rule established a new Maryland regulatory chapter COMAR 26.11.34, entitled “Low Emission Vehicle Program.”</P>
        <P>The regulation requires all 2011 and newer model year passenger cars, light-duty trucks, and medium-duty vehicles having a GVWR of 14,000 pounds or less that are sold as new cars or are transferred in Maryland to meet the applicable California emissions standards. For purposes of the Maryland Clean Car Program, transfer means to sell, import, deliver, purchase, lease, rent, acquire, or receive a motor vehicle for titling or registration in Maryland. The purpose of the program is to achieve two air quality objectives. The first is to reduce emissions of NOx and VOCs, which are ground-level ozone precursor pollutants. The LEV program reduces emissions in a similar manner to the Federal Tier 2 program by use of declining fleet average non-methane organic gas (NMOG) emission standards, applicable to each vehicle manufacturer each year. Separate fleet average standards are not established for NOx, carbon monoxide (CO), particulate matter (PM), or formaldehyde as these emissions are controlled as a co-benefit of the NMOG fleet average (fleet average values for these pollutants are set by the certification standards for each set of California prescribed certification standards.) These allowable sets of standards range from LEV (the least stringent standard set) to ZEVs (the most stringent standard set). In between these fall: Ultra-Low Emission Vehicles (ULEV), Super-Ultra Low Emission Vehicles (SULEV), Partial Zero Emission Vehicles (PZEV), and Advanced Technology-Partial Zero Emission Vehicles (AT-PZEV). Each manufacturer may comply by selling a mix of vehicles meeting any of these standards, as long as their sales-weighted, overall average of the various standard sets meets the overall fleet average and ZEV requirements.</P>
        <P>The second objective of the program is to reduce GHG emissions. To further both objectives, Maryland adopted California's ZEV program requirements, which serve as a means to promote advanced technology vehicles that are cleaner than traditional gasoline- and diesel-powered vehicles. The GHG standards were to phase-in between model year 2009 and 2016; however, recently passed Federal GHG standards began to be phased-in beginning with model year 2012. The GHG program also uses a fleet average compliance method, similar in methodology to that of the NMOG fleet average for the LEV program. Overall compliance is demonstrated by showing that the entire fleet of vehicles produced by each manufacturer (as distributed within the allowable standard sets) meets the specified fleet average NMOG and GHG standards.</P>
        <P>California has reached an agreement with EPA to allow compliance with the Federal GHG standards as a compliance option for California's standards, between 2012 and 2016. Both the LEV and GHG standards for model year 2012-2016 light and medium duty vehicles are already in effect in Maryland.</P>
        <HD SOURCE="HD3">2. Maryland's Clean Car Program SIP Revisions</HD>
        <HD SOURCE="HD3">a. Maryland's December 2007 SIP Revision</HD>
        <P>Maryland proposed adoption of its new regulations .01 to .14 under a new chapter, COMAR 26.11.34, entitled “Low Emission Vehicle Program” in the Maryland Register on August 31, 2007. The regulations were adopted on November 19, 2007, and became state effective on December 17, 2007. Maryland formally submitted a SIP revision for the Maryland Clean Car Program to EPA on December 20, 2007. This SIP revision contained Maryland's incorporation of California's LEV program regulations, which results in a declining fleet average standard (for each vehicle manufacturer) for both NMHC and GHGs, applicable to new model year 2011 and newer light-duty vehicles and trucks and medium-duty vehicles. Maryland's regulations established initial NMOG credit balances for manufacturer credit account balances to reconcile the schedule of the Maryland program to that of the earlier California program and to provide parity for manufacturers between Maryland and California at the onset of the Maryland program. Maryland's regulations in the 2007 SIP revision submittal also included ZEV program requirements for Maryland and established ZEV credit account balances to provide parity between California and Maryland with respect to the timing of Maryland's ZEV program. Finally, the 2007 SIP submittal contains general regulatory compliance provisions that extend California-defined rights to compliance with California's standards in Maryland.</P>
        <HD SOURCE="HD3">b. Maryland's November 2010 SIP Revision</HD>
        <P>Subsequently, Maryland submitted a SIP revision on November 12, 2010 to submit updates made by the State to its LEV Program rule. Specifically, this SIP submittal includes changes made by Maryland to regulation .02 Incorporation by Reference under COMAR 26.11.34. This regulatory revision was adopted by Maryland on October 16, 2009 and became effective in Maryland on November 16, 2009. The purpose of the SIP revision including this rule revision was to update Maryland's incorporation by reference to be consistent with changes made by California to its LEV rules. Since the time that Maryland initially adopted California's rules in 2007, California had updated its rules to streamline its evaporative emissions requirements, to amend its on-board diagnostics and emissions warranty provisions, to amend its in-use vehicle recall provisions, to amend its smog label requirements, and to revise its ZEV methodology and credit accounting system. Although the changes made by California (and the resulting changes made by Maryland to its incorporation of California's rules by reference) are minimal, they are important for purposes of making sure Maryland's rules are consistent with those of California, in compliance with the requirements for adoption of California standards by other states, pursuant to section 177 of the CAA. These changes serve primarily to achieve consistency between Maryland's and California's rules, for purposes of maintaining parity of Maryland's rules with those of California.</P>
        <HD SOURCE="HD3">c. Maryland's June 2011 SIP Revision</HD>

        <P>Maryland again submitted a SIP revision submittal on June 22, 2011 to<PRTPAGE P="50973"/>submit updates made by the state to its LEV Program rule. Specifically, this SIP revision includes changes made by Maryland to regulation .02 Incorporation by Reference under COMAR 26.11.34. This regulatory revision was adopted by Maryland on April 14, 2011 and became effective in Maryland on May 16, 2011. The purpose of the SIP revision including this rule revision was to update Maryland's incorporation by reference to be consistent with changes made by California to its LEV rules. Since the time that Maryland initially adopted California's rules in 2007, California had updated its rules to: improve on-board diagnostic and emission standards for testing vehicles; adopt standards for testing plug-in hybrid electric vehicle conversions; and to adopt the national GHG emissions standards framework agreement between the EPA, NHTSA, and CARB. Although the changes made by California (and the resulting changes made by Maryland to its incorporation of California's rules by reference) are minimal, they are important for purposes of making sure Maryland's rules are consistent with those of California, in compliance with the requirements for adoption of California standards by other states, per section 177 of the CAA. These changes serve primarily to achieve consistency between Maryland's and California's rules, for purposes of maintaining parity of Maryland's rules with those of California.</P>
        <HD SOURCE="HD1">II. Proposed Action</HD>
        <P>EPA is proposing to approve three Maryland SIP revisions submitted to EPA adopting the Maryland Clean Car Program. Maryland adopted California's LEV and ZEV programs, in addition to California's GHG emissions standards for light-duty passenger vehicles and trucks and medium-duty vehicles. Maryland initially submitted the first of these three SIP revisions on December 20, 2007. Maryland subsequently submitted the second of these three SIP revisions to EPA on November 12, 2010, to amend its 2007 SIP revision. Maryland then submitted a SIP revision on June 22, 2011, to amend its earlier SIP revisions. EPA is soliciting public comments on the issues discussed in this document. These comments will be considered before taking final action.</P>
        <HD SOURCE="HD1">III. Statutory and Executive Order Reviews</HD>
        <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

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

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
        <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and</P>
        <P>• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).</P>
        <P>In addition, this proposed rule to approve Maryland's Clean Car Program does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Carbon monoxide, Intergovernmental relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds.</P>
        </LSTSUB>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>42 U.S.C. 7401<E T="03">et seq.</E>
          </P>
        </AUTH>
        <SIG>
          <DATED>Dated: August 08, 2012.</DATED>
          <NAME>W.C. Early,</NAME>
          <TITLE>Acting Administrator, Region III.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20787 Filed 8-22-12; 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-R09-OAR-2010-1078; FRL-9717-7]</DEPDOC>
        <SUBJECT>Revision to the South Coast Portion of the California State Implementation Plan, CPV Sentinel Energy Project AB 1318 Tracking System</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Environmental Protection Agency (EPA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Supplemental Proposed Rule.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Environmental Protection Agency (EPA) is supplementing our prior proposal to approve a source-specific State Implementation Plan (SIP) revision and requesting public comment on additional information we are adding to our docket to revise the South Coast Air Quality Management District (District or SCAQMD) portion of the California SIP. This source-specific SIP revision is known as the CPV Sentinel Energy Project AB 1318 Tracking System (“AB 1318 Tracking System”). We are supplementing our proposed approval of this SIP revision to provide additional information and request comment on three issues: (1) the District's quantification of the offsets it transferred to the AB 1318 Tracking System; (2) the District's surplus adjustment of the offsets in the AB 1318 Tracking System; and (3) which District Air Quality Management Plan (AQMP) is appropriate for determining the base year to evaluate the availability of offsets from shutdown sources.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments on this Supplemental Notice of Proposed Rulemaking (NPRM) must be submitted no later than September 24, 2012.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit comments, identified by docket number EPA-R09-OAR-2010-1078, by one of the following methods:</P>
          <P>1.<E T="03">Federal eRulemaking Portal:</E>
            <E T="03">www.regulations.gov.</E>Follow the on-line instructions.</P>
          <P>2.<E T="03">Email:</E>
            <E T="03">r9airpermits@epa.gov.</E>
          </P>
          <P>3.<E T="03">Mail or deliver:</E>Gerardo Rios (Air-3), U.S. Environmental Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901.<PRTPAGE P="50974"/>
          </P>
          <P>
            <E T="03">Instructions:</E>All comments that EPA receives within the public comment period will be included in the public docket without change and may be made available online at<E T="03">www.regulations.gov</E>, including any personal information provided, unless the comment includes Confidential Business Information (CBI) or other information where disclosure of the information is restricted by statute. Information that you consider CBI or otherwise protected should be clearly identified as such and should not be submitted through<E T="03">www.regulations.gov</E>or email.<E T="03">www.regulations.gov</E>is an “anonymous access” system, and EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send email directly to EPA, your email address will be automatically captured and included as part of the public comment. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment.</P>
          <P>
            <E T="03">Docket:</E>The index to the docket for this action is available electronically at<E T="03">www.regulations.gov</E>and in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While documents in the docket are listed in the index, some information may be publicly available only at the hard copy location (e.g., copyrighted material or voluminous background documents), and some may not be publicly available in either location (e.g., CBI). To inspect the docket, please schedule an appointment during normal business hours with the contact listed in the<E T="02">FOR FURTHER INFORMATION CONTACT</E>section.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Laura Yannayon, EPA Region IX, (415) 972-3524,<E T="03">yannayon.laura@epa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Throughout this document, “we”, “us”, and “our” refer to EPA.</P>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Background</FP>
          <FP SOURCE="FP1-2">A. Facility Description and Background</FP>
          <FP SOURCE="FP1-2">B. Procedural History of Source Specific SIP Revision</FP>
          <FP SOURCE="FP1-2">C. Offsets in this Source-Specific SIP Revision</FP>
          <FP SOURCE="FP1-2">D. Appropriate AQMP for Determining the Base-Year</FP>
          <FP SOURCE="FP-2">II. Evaluation of Source Specific SIP Revision</FP>
          <FP SOURCE="FP1-2">A. What is in the SIP revision?</FP>
          <FP SOURCE="FP1-2">B. What are the Federal Clean Air Act requirements?</FP>
          <FP SOURCE="FP1-2">C. What actions has EPA taken previously?</FP>
          <FP SOURCE="FP1-2">D. How is EPA supplementing its prior proposal now?</FP>
          <FP SOURCE="FP1-2">E. Section 110(l) Evaluation</FP>
          <FP SOURCE="FP1-2">F. Public Comment and Final Action</FP>
          <FP SOURCE="FP-2">III. Statutory and Executive Order Reviews</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Background</HD>
        <HD SOURCE="HD2">A. Facility Description and Background</HD>

        <P>For a detailed discussion of this topic, please refer to our proposed rule at 76 FR 2294 (Jan. 13, 2011). In summary, the Sentinel Energy Project is designed to be a nominally rated 850 Megawatt electrical generating facility covering approximately 37 acres within Riverside County, adjacent to Desert Hot Springs, California in the Palm Springs area. The District determined that the Sentinel Energy Project requires 118,120 pounds (“lbs”) of PM<E T="52">10</E>offsets and 13,928 lbs of SO<E T="52">X</E>offsets for the District to issue a permit for construction and operation.</P>
        <HD SOURCE="HD2">B. Procedural History of Source Specific SIP Revision</HD>
        <P>The District adopted the AB 1318 Tracking System on July 9, 2010. The California Air Resources Board (CARB) submitted the AB 1318 Tracking System to EPA as a source specific SIP revision on September 10, 2010. EPA issued a completeness letter on October 27, 2010, finding that the submittal met the completeness criteria in 40 CFR part 51 Appendix V. EPA proposed approval of the source specific SIP revision on January 13, 2011. 76 FR at 2294. On April 20, 2011, EPA responded to comments and finalized approval of the source specific SIP revision. 76 FR 22038.</P>
        <P>California Communities Against Toxics (CCAT) and Communities for a Better Environment (CBE) filed a petition for review with the United States Court of Appeals for the Ninth Circuit. On July 26, 2011, CCAT and CBE filed their Opening Brief. In the Brief, CCAT and CBE alleged that EPA committed a procedural error by failing to post all of the back-up documentation for the offset transactions on EPA's eDocket Web site. EPA was not and is not obligated to post all of these voluminous documents to the eDocket Web site. Copies of those documents were available for inspection in EPA's offices. In addition, those documents had been provided directly to the Petitioners several months earlier. Id.</P>
        <P>CCAT and CBE's Opening Brief set forth some detailed assertions regarding the quantification and surplus adjustments of the offset transactions in the AB 1318 Tracking System. The detailed arguments that CCAT and CBE included in their Ninth Circuit Opening Brief were not included in their comments on our proposed rulemaking.</P>
        <P>On September 13, 2011, EPA requested that the Court remand the rulemaking to EPA to supplement the record and provide additional justification for our action. The Ninth Circuit summarily denied this motion. Several months later after briefing and oral argument, the Court remanded the rulemaking to EPA for additional justification. The Court did not vacate the rule upon remand.</P>
        <P>This Supplemental proposal on remand is seeking comment on three specific issues: (1) The District's quantification of some of the offsets in the AB 1318 Tracking System; (2) the District's surplus adjustment of certain offsets; and (3) which District Air Quality Management Plan is appropriate for determining the base year to evaluate the availability of offsets from sources that shutdown. These three issues are discussed in more detail below.</P>
        <HD SOURCE="HD2">C. Offsets in This Source-Specific SIP Revision</HD>

        <P>When equipment or an entire facility is shutdown, it no longer emits air pollutants. The CAA allows the emission reductions from shutdown equipment or facilities to be used to offset the operation of new or modified stationary sources provided the offsets meet the requirements of CAA Section 173. See 40 U.S.C. 7503(a)(1)(A). Section 173 requires offsets to be permanent, enforceable, quantifiable, and surplus. Id. 7503(c). This Supplemental proposal provides additional information regarding EPA's prior determination that at least 118,120 lbs of PM<E T="52">10</E>and 13,928 lbs of SO<E T="52">X</E>offsets meet the requirements of Section 173 as transferred by the District into the AB 1318 Tracking System. Because the briefs that CCAT and CBE filed with the Ninth Circuit pointed to potential deficiencies with a small number of offsets in the AB 1318 Tracking System, EPA is providing additional information in this Supplemental proposal to identify the specific offsets that we are determining meet all federal requirements.</P>

        <P>Attachment A to the Technical Support Document (TSD) for this Supplemental proposal includes two spreadsheets, one for PM<E T="52">10</E>emissions and one for SO<E T="52">X</E>emissions. These spreadsheets list each source that has shut down and is no longer operating resulting in offsets that the District transferred into the AB 1318 Tracking System.</P>

        <P>The offsets listed in Attachment A meet CAA Section 173's requirements to be permanent and enforceable because the owner or operator surrendered the permits to the District. It is illegal under SCAQMD Rule 203 for any source to emit any amount of an air pollutant without a valid permit, unless the source is specifically exempted from this requirement under District Rule 219<PRTPAGE P="50975"/>(Equipment Not Requiring a Written Permit Pursuant to Regulation II). The Federal government or local air agency may bring an enforcement action against a source operating without a permit. Citizens may also bring such actions because Rule 203 is included in the SIP. For these reasons, when a source shuts down and surrenders its permit to the District, its emissions reductions are permanent and enforceable. The source would be required to apply for a new permit, and provide new offsets, in order to operate again.</P>
        <P>The offsets listed in Attachment A are also quantifiable as required by Section 173. Each spreadsheet contains two sections, Section I and II, each with two parts (Parts A and B). For all of the sources listed in Section I, two years of actual emission data was used to calculate an annual average. Section I.A. lists those sources where District Annual Emissions Report (AER) data were used, and Section I.B. lists sources where AER, Acid Rain or Emission Reduction Credit (ERC) application data were used. Section II lists the sources where only one year of AER data was reported. Section II.A. lists those sources where only Year 2 data was reported and Section II.B. lists those sources where only Year 1 data was reported. Quantification of the offsets for which only one year of data is available is discussed in more detail below in Section II.D.1.</P>
        <P>The offsets listed in Attachment A are surplus in addition to being quantifiable, permanent and enforceable. Our detailed discussion in Section II.D.2. below provides our justification for finding that each pound of offsets listed in Attachment A is surplus to the requirements of the CAA.</P>

        <P>In summary, the Sentinel Energy Project needed 118,120 lbs of PM<E T="52">10</E>offsets and 13,928 lbs of SO<E T="52">X</E>offsets. The District transferred more than these amounts into the AB 1318 Tracking System for the exclusive use of Sentinel Energy Project. EPA has determined that each of the offsets listed in Attachment A meets all of the creditability requirements of Section 173 of the CAA. The sum of the offsets in Attachment A is 124,797 lbs of PM<E T="52">10</E>and 25,178 lbs of SO<E T="52">X</E>, which exceeds the amount needed by Sentinel. For any offset transactions the District included in the AB 1318 Tracking System that are not specifically listed in Attachment A, EPA is not taking a position at this time on whether those offsets meet the federal creditability requirements. Those offsets are not necessary for the Sentinel Energy Project to comply with Section 173(a)(1) even though the District transferred them to the AB 1318 Tracking System.</P>
        <HD SOURCE="HD2">D. Appropriate AQMP for Determining the Base-Year</HD>

        <P>CCAT and CBE raised a third objection to our approval of the source-specific SIP revision. CCAT and CBE claim the District is prohibited from using any emission reductions from facilities that shutdown equipment prior to the last day of 2002. 2002 is the base-year in the 2007 Air Quality Management Plan (AQMP) that the District adopted to demonstrate attainment with the federal PM<E T="52">2.5</E>and 8-hour Ozone National Ambient Air Quality Standards (NAAQS).</P>
        <P>40 CFR 51.165(a)(3)(ii)(C)(<E T="03">1</E>)(<E T="03">ii</E>) provides that emissions reductions from shutting down equipment may be used as offsets if “[t]he shutdown or curtailment occurred after the last day of the base year for the SIP planning process.” The regulation also allows pre-base year emissions reductions from shutdown equipment to be used “if the projected emission inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units.” Id. Based on this regulation, CCAT and CBE contend the District may not include emission reductions from facilities shutting down equipment prior to the last day of 2002 in the AB 1318 Tracking System. In our prior rulemaking, EPA responded to this comment by stating that the District had added the offsets into the attainment demonstration in the 2007 AQMP for the PM<E T="52">2.5</E>and 8-hour Ozone NAAQS.</P>

        <P>This Supplemental proposal changes our reasoning on this issue. EPA has evaluated this issue further and determined that the District's 2003 AQMPs for PM<E T="52">10</E>for the South Coast and the Coachella Valley Basins establish the correct base year. The base year in these AQMPs is 1997. All of the emission reductions in the AB 1318 Tracking System occurred after 1997, and therefore comply with 40 CFR 51.165(a)(3)(ii)(C)(<E T="03">1</E>)(<E T="03">ii</E>). This issue is discussed in more detail in Section II.D.3. below.</P>
        <HD SOURCE="HD1">II. Evaluation of Source Specific SIP Revision</HD>
        <HD SOURCE="HD2">A. What is in the SIP revision?</HD>
        <P>For a detailed discussion of the SIP revision package, please see our proposed approval from January 13, 2011. 76 FR 2294.</P>
        <P>The text of the proposed source-specific SIP revision, in relevant part, is:</P>
        
        <EXTRACT>
          <P>The Executive Officer of the South Coast Air Quality Management District shall transfer sulfur oxides and particulate emission credits from the CPV Sentinel Energy Project AB 1318 Tracking System, attached hereto and incorporated by reference herein, to eligible electrical generating facilities pursuant to Health and Safety Code section 40440.14, as in effect January 1, 2010, (i.e. the Sentinel Energy Project to be located in Desert Hot Springs, CA) in the full amounts needed to issue permits to construct and to meet requirements for sulfur oxides and particulate matter emissions. Notwithstanding District Rule 1303, this SIP revision provides a federally enforceable mechanism for transferring offsets from the AQMD's internal accounts to the Sentinel Energy Project.</P>
        </EXTRACT>
        

        <P>This SIP revision is intended to provide a federally approved and enforceable mechanism for the District to transfer PM<E T="52">10</E>and SO<E T="52">X</E>offsets from the District's internal bank to the Sentinel Energy Project and to account for the transferred offsets through the AB 1318 Tracking System.</P>

        <P>The District's SIP revision incorporates by reference each of the offsets from the facilities that shutdown equipment. Based on EPA's analysis, however, EPA is only proposing to approve that the PM<E T="52">10</E>and SO<E T="52">X</E>offsets listed in Attachment A of our TSD meet the federal criteria for purposes of this source-specific SIP revision. This proposal is not taking any action on offsets that are not listed in Attachment A.</P>
        <HD SOURCE="HD2">B. What are the Federal Clean Air Act requirements?</HD>
        <P>For a detailed discussion of these requirements, please refer to our proposed approval. 76 FR 2294.</P>

        <P>This Supplemental proposal focuses on three requirements. First, the offsets that the District transferred to the AB 1318 Tracking System must be quantifiable. Second, the offsets must be surplus. As discussed in more detail in Section II.D. the offsets in Attachment A meet those requirements. Third, offsets resulting from shutting down emissions units must occur after the base year for the applicable SIP attainment demonstration or otherwise be explicitly included in the SIP's attainment demonstration. The offsets transferred into the AB 1318 Tracking System meet this requirement with respect to the 2003 AQMPs for PM<E T="52">10</E>and precursors for the South Coast and Coachella Air Basins.</P>
        <HD SOURCE="HD2">C. What actions has EPA taken previously?</HD>

        <P>Prior to our January 13, 2011 proposal to approve this SIP revision, EPA reviewed the District's Offset Verification Forms and attachments<PRTPAGE P="50976"/>provided for each source's offsets that the District had transferred to the AB 1318 Tracking System. Our review determined that a sufficient amount of the offsets met the requirements to offset the PM<E T="52">10</E>and SO<E T="52">X</E>emissions increases from the operation of the Sentinel Energy Project. Specifically, the Project required 118,120 lbs of PM<E T="52">10</E>and 13,928 lb of SO<E T="52">X</E>offsets. The District had transferred a total of 137,799 lbs of PM<E T="52">10</E>and 25,346 lbs of SO<E T="52">X</E>offsets into the AB 1318 Tracking System.</P>

        <P>EPA has re-evaluated the creditability of some of the offsets in AB 1318 Tracking System. We are now listing the offsets we have determined are creditable in Attachment A. For each source of offsets listed in Attachment A, the District provided documentation demonstrating those offsets meet the Section 173 requirements. Attachment A contains a total of 124,797 lbs of PM<E T="52">10</E>and 25,178 lbs of SO<E T="52">X</E>, thereby exceeding the amount required for the Project.</P>
        <P>Our prior rulemaking did not specifically identify the offsets that we found met the Section 173 requirements. This Supplemental proposal now specifically identifies the offsets that we have determined meet the requirements of Section 173 and lists those offsets in Attachment A. EPA is not taking any action on, and has not reached any conclusion regarding the creditability of, any offsets the District transferred into the AB 1318 Tracking System that are not listed in Attachment A.</P>
        <HD SOURCE="HD2">D. How is EPA supplementing its prior proposal now?</HD>

        <P>This Supplemental proposal provides additional details concerning EPA's determination that at least 118,120 lbs of PM<E T="52">10</E>and 13,928 lbs of SO<E T="52">X</E>offsets transferred into the AB 1318 Tracking System meet the offset integrity requirements of Section 173. See Attachment A to the TSD.</P>

        <HD SOURCE="HD3">1. The District Has Demonstrated That at Least 118,120 lbs of PM<E T="52">10</E>and 13,928 lbs of SO<E T="52">X</E>Offsets Are Properly Quantified</HD>
        <P>To determine if the offsets listed in Attachment A were properly quantified, we reviewed the District's Offset Verification Forms and additional documents. From these documents, we have listed the following information in Attachment A: The type of equipment shutdown, the year the equipment was shutdown, the year 1 (i.e. the year immediately preceding the shutdown) and year 2 (i.e. the second year prior to shutdown) data of pre-shutdown actual emissions, the annual average of both years of pre-shutdown actual emissions (if available), the amount of emissions reductions calculated by the District, the amount calculated for this Supplemental proposal and the source of the emissions data.</P>
        <P>The offsets listed in Section I.A. of Attachment A rely on two years of emissions data reported by the source in its AER. The offsets listed in Section I.B. rely on two years of emissions data reported to EPA's Acid Rain database (either solely or in addition to an AER), or in one case, in an application for an ERC.<SU>1</SU>
          <FTREF/>These sources of emissions data are reliable and inherently discourage inaccurate reporting. The permittee must pay substantial fees to the District based on the quantity of emissions reported in the AER, thereby discouraging over-reporting. The Acid Rain database collects data directly from Continuous Emission Monitors or throughput combined with a well established emissions factor. Finally, the emission data used to evaluate the Emission Reduction Credit application was based on actual operating data and reported emissions.</P>
        <FTNT>
          <P>
            <SU>1</SU>For one project, Seagull Sanitation, the source shutdown and applied for ERCs. The District subtracted the amount of offsets required to comply with Best Available Retrofit Technology at the time of shutdown. Then the District subtracted the amount of offsets that the source “owed” the District.</P>
        </FTNT>
        <P>The offsets from sources listed in Section II rely upon one year of emissions data. Section 173 of the CAA does not define how to calculate actual emissions for purposes of providing offsets. EPA's regulations setting forth SIP requirements for offsets are also silent on this issue. See 40 CFR 51.165(a)(3)(i)(C). EPA's Emissions Offset Interpretative Ruling at 40 CFR Part 51, Appendix S, however, provides guidance for calculating the “baseline for determining credit for emission and air quality offsets”. Appendix S provides:</P>
        
        <EXTRACT>

          <P>When offsets are calculated on a tons per year basis, the baseline emissions for existing sources providing the offsets should be calculated using the actual annual operating hours for the previous<E T="03">one or two year period</E>(or other appropriate period if warranted by cyclical business conditions).</P>
        </EXTRACT>
        
        <FP>Id. at IV.C. (emphasis added). Therefore, Appendix S contemplates situations in which one year of emissions data is sufficient.</FP>
        <P>CCAT and CBE have asserted that the District must use two years of actual emissions to calculate the actual emissions for offsets. This assertion relies on the definition of “actual emissions” in 40 CFR 51.165(a)(1)(xii). This definition of “actual emissions” is not provided for determining offset credit.</P>
        <P>We do not need to resolve whether CCAT has relied on the incorrect definition or whether 2 years of emissions data is required for purposes of this proposal. For this proposal, the District either used 2 years of data or appropriately adjusted the single year data. Section II.A. lists sources where we had only Year 2 data (i.e. data for the second year prior to shutdown) and Section II.B. lists sources where only Year 1 data (i.e. data for the year immediately preceding shutdown) was available. For the offsets in Section II.A where the source only reported AER data for Year 2, the District assumed that Year 1 emissions data (the year immediately prior to shutdown) was zero, and the Year 2 data was divided by two to calculate an annual average. Therefore, the District's approach for the sources in II.A is very conservative in calculating the lowest possible amount of offsets.</P>
        <P>For the sources listed in Section II.B. where the source only reported AER data for Year 1, then the District assumed that Year 2 data was not reported and the Year 1 data determined the quantity of offsets. For this small fraction of the facilities, the baseline emissions were calculated based on the emissions data from the year immediately preceding the shutdown date. For these facilities, because the data from the twelve month period immediately preceding the shutdown was available, there was no possibility that the year one emissions over estimated the actual emissions for the facility prior to shutdown. There was also no information to indicate that the emissions from the year immediately preceding shutdown were not representative. Therefore, the one year of emissions are representative and not over estimated.</P>
        <P>Based on the requirement in 40 CFR part 51, Appendix S and 51.165, EPA is proposing to determine that the District appropriately quantified the offsets for those sources with only one year of emissions data and that these emission reductions meet the requirement of CAA section 173 and 40 CFR part 51 Appendix S and 51.165(a)(1)(C) to be quantifiable.</P>
        <HD SOURCE="HD3">2. Offsets From Aggregate Facilities and Cement Operations Are Surplus</HD>

        <P>When EPA proposed approval of the SIP revision in January 2011, we received a comment from CBE and CCAT that contended generally that not all of the offsets from aggregate facilities, spray booths and other industrial sources were surplus. In our<PRTPAGE P="50977"/>response to comments, we stated that all of the emissions reductions were surplus because “[t]he District has not promulgated any new rules or standards that would apply to these types of sources, and thus no adjustments to the credits were required.” 76 FR at 22038. After we issued our response to comments and final rule, CBE and CCAT petitioned for judicial review. In briefing to the Court, CBE and CCAT stated for the first time that the District had adopted Rules 1156 and 1157 that require reductions of emissions at cement plants and aggregate plants. In this Supplemental proposal, EPA is adding information on the surplus adjustment made for the offsets in the AB 1318 Tracking System subject to Rule 1157 (PM<E T="52">10</E>Emission Reductions From Aggregate and Related Operations).</P>
        <P>It is important to note that the surplus adjustment of the offsets was not required to be performed until the time the authority to construct permit was issued because EPA requires the surplus adjustment “at the time of use”. The permit was not issued until after the final approval of our prior SIP action and was not included in the docket. However, now that the permit has been issued, we have re-evaluated the need to surplus adjust the offsets.<SU>2</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>2</SU>We considered the surplus adjustment at the time of our prior approval, however, the District made some final surplus adjustments before issuing the permit. This later adjustment does not change our prior determination that the available offsets in the AB 1318 Tracking System were more than required for the Sentinel Energy Project.</P>
        </FTNT>
        <P>Rule 1156 does not apply to any of the offsets included in the AB 1318 Tracking System. Rule 1156 (Further Reduction of Particulate Emissions from Cement Manufacturing Facilities) only applies to cement manufacturers, not users of cement products.<SU>3</SU>
          <FTREF/>Two facilities in the AB 1318 Tracking System, Elsinore Ready-Mix Co., Inc. and Oldcastle Westile, Inc., use cement products but do not manufacture cement. Therefore, Rule 1156 does not apply to those facilities and Rule 1156 does not require any surplus adjustment to the offsets from these facilities or any others in the AB 1318 Tracking System.</P>
        <FTNT>
          <P>
            <SU>3</SU>As stated in the District's Staff Report for Rule 1156, the two facilities affected by Rule 1156 are TXI Riverside Cement and Cal Portland Cement.</P>
        </FTNT>

        <P>Rule 1157, which applies to aggregate facilities, was also adopted after the earliest date equipment was shutdown for any offsets included in the AB 1318 Tracking System (i.e. 1999). Six aggregate facilities are included in the AB 1318 Tracking System. Matthews International Corp. is not subject to Rule 1157 because the rule only applies to aggregate operations which are defined as “operations that<E T="03">produce</E>sand, gravel, crushed stone, and/or quarried rocks.” Since Matthews is a foundry operation that uses, but does not produce sand, the facility is not subject to Rule 1157.</P>

        <P>Rule 1157 applies to the six aggregate facilities in the AB 1318 Tracking System. If any of these facilities were already operating in compliance with the new standards in Rule 1157, then no surplus adjustment was required to ensure the emission reductions were surplus (i.e. went beyond the reductions required by the rule). In other words, the emissions from these facilities were already equal to or less than the emissions allowed by Rule 1157. The rule requires various techniques to be used throughout the facility to minimize PM<E T="52">10</E>emissions. These techniques include housekeeping provisions such as cleaning spills on paved roads; control techniques such as the application of water or dust suppressants, enclosures and baghouses; and equipment and work standards to minimize track out of materials. The District establishes emission factors based on the use of these techniques as part of the rulemaking process for adopting Rule 1157. If the facility's total emissions are below the material throughput multiplied by the applicable emissions factors, the facility is in compliance with Rule 1157. In this case, no further surplus adjustment is required unless the rule is amended to further reduce the allowable emissions before the offsets are used. While Rule 1157 has not been amended, the District has adopted revised emission factors for the various operations subject to this rule,<SU>4</SU>
          <FTREF/>and therefore, further adjustments were made to the offsets from these six aggregate facilities. These further adjustments are discussed in more detail in the TSD and shown in Attachment A.</P>
        <FTNT>
          <P>

            <SU>4</SU>See letter from Barry R. Wallerstein to Malcolm C. Weiss, Subject: Rule 1157—PM<E T="52">10</E>Emission Reductions from Aggregate and Related Operations, dated December 15, 2006.</P>
        </FTNT>
        <HD SOURCE="HD3">3. The District Properly Transferred Offsetting Emission Reductions From Sources that Shutdown in 1999-2002</HD>
        <P>The final issue for comment in this Supplemental proposal concerns the appropriate SIP AQMP for the District and EPA to use to evaluate whether the emissions reductions from shutdown units have been included in the SIP's base year.</P>
        
        <EXTRACT>
          <P>40 CFR part 51, Appendix S,<SU>5</SU>

            <FTREF/>at IV.3, provides:Emissions reductions achieved by shutting down an existing source or curtailing production or operating hours may be generally credited for offsets if they meet the requirements in paragraphs IV.C.3.i.<E T="03">1</E>through<E T="03">2</E>of this section.</P>
        </EXTRACT>
        <FTNT>
          <P>
            <SU>5</SU>Appendix S has the same language that is used in 40 CFR 51.165.</P>
        </FTNT>
        
        <FP>Section IV.C.3.i.<E T="03">1</E>requires the emissions reductions to be surplus, permanent, quantifiable and federally enforceable. Section IV.C.3.i.<E T="03">2</E>allows emission reductions from shutdown equipment or curtailed operations to be used provided:</FP>
        
        <EXTRACT>
          <P>The shutdown or curtailment occurred after the last day of the base year for the SIP planning process. For purposes of this paragraph, a reviewing authority may choose to consider a prior shutdown or curtailment to have occurred after the last day of the base year if the projected emissions inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emissions units.</P>
        </EXTRACT>
        

        <P>In our final rulemaking, EPA responded to comments on this issue by indicating our understanding that the District properly added pre-base year credits into its 2007 PM<E T="52">2.5</E>AQMP which we concluded met the requirements of the second sentence of the IV.3.C.i.<E T="03">2.</E>
        </P>

        <P>EPA has now determined that it would be more appropriate to rely on the District's 2003 PM<E T="52">10</E>AQMPs, rather than their 2007 PM<E T="52">2.5</E>AQMP for two reasons. The reason for relying on the 2003 AQMPs is that the offsets the District transferred to the AB 1318 Tracking System are for PM<E T="52">10</E>, not PM<E T="52">2.5</E>. The District has approved PM<E T="52">10</E>AQMPs for both the South Coast Air Basin and the Coachella Valley that were adopted in 2003. Therefore, the appropriate AQMP for EPA to reference when evaluating PM<E T="52">10</E>offsets (and precursors including SO<E T="52">X</E>) for the AB 1318 Tracking System is the approved 2003 PM<E T="52">10</E>AQMPs. The inventories in the 2003 PM<E T="52">10</E>AQMPs have a base year of 1997 for both the South Coast Air Basin and the Coachella Valley.<SU>6</SU>

          <FTREF/>None of the offsets transferred by the District were derived from shutdowns occurring before the last day of 1997. Therefore all of the offsets in the AB 1318 Tracking System resulting from shutdown equipment were included in the base year for the 2003 PM<E T="52">10</E>AQMPs, including SO<E T="52">X</E>as a precursor.<SU>7</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>6</SU>EPA also notes that we had not approved the 2007 PM<E T="52">2.5</E>AQMPs at the time the District transferred the offsets to the AB 1318 Tracking System. EPA proposed approval of the 2007 PM<E T="52">2.5</E>AQMP in July 2011 and finalized approval on November 9, 2011.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>7</SU>Although we are now relying on the 2003 PM<E T="52">10</E>AQMPs, EPA has not changed our determination that the District explicitly added offsets into the inventories for the 2007 AQMP as discussed in EPA's and the District's briefing to the Ninth Circuit.</P>
        </FTNT>
        <PRTPAGE P="50978"/>

        <P>EPA is now proposing to approve the AB 1318 Tracking System because all of the offsets for PM<E T="52">10</E>and the precursor SO<E T="52">X</E>occurred after the base year of 1997 in the PM<E T="52">10</E>AQMPs.</P>
        <HD SOURCE="HD2">E. Section 110(l) Evaluation</HD>
        <P>Under section 110(l) of the CAA, EPA may not approve any SIP revision that would interfere with attainment, reasonable further progress (RFP) or any other CAA requirement.</P>
        <P>We have determined that this SIP revision will not interfere with attainment or RFP because the offsets in the AB 1318 Tracking System are not relied on for attainment or RFP in the District's attainment demonstrations. We are also not aware of this revision interfering with any other CAA requirement. For example, this source-specific SIP revision provides a new but equivalent mechanism to provisions in Regulation XIII for satisfying the offset requirements of CAA Section 173 because the offsets the District is transferring from its internal bank to the AB 1318 Tracking System meet all federal requirements. In addition, the District supplied a copy of its air quality analysis for the Sentinel Energy Project that shows that operation of the facility will not interfere with the ability of the District to reach attainment.</P>
        <HD SOURCE="HD2">F. Public Comment and Final Action</HD>
        <P>Because EPA believes the submittal fulfills all relevant requirements, we are proposing to fully approve it as described in section 110(k)(3) of the Act. We will accept comments from the public on this proposal for the next 30 days. Unless we receive convincing new information during the comment period, we intend to publish a final approval action, addressing all public comments, which will incorporate this submittal into the federally enforceable SIP.</P>
        <HD SOURCE="HD1">III. Statutory and Executive Order Reviews</HD>
        <P>Under the Clean Air Act, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the Clean Air Act. Accordingly, this action merely proposes to approve state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:</P>
        <P>• Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>

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

        <P>• Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601<E T="03">et seq.</E>);</P>
        <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
        <P>• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
        <P>• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);</P>
        <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);</P>
        <P>• Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the 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 proposed rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.</P>
        <LSTSUB>
          <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
          <P>Environmental protection, Air pollution control, Intergovernmental relations, Particulate matter, Reporting and recordkeeping requirements.</P>
        </LSTSUB>
        <AUTH>
          <HD SOURCE="HED">Authority:</HD>
          <P>42 U.S.C. 7401 et seq.</P>
        </AUTH>
        <SIG>
          <DATED>Dated: August 9, 2012.</DATED>
          <NAME>Jared Blumenfeld,</NAME>
          <TITLE>Regional Administrator, Region IX.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20777 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6560-50-P</BILCOD>
    </PRORULE>
  </PRORULES>
  <VOL>77</VOL>
  <NO>164</NO>
  <DATE>Thursday, August 23, 2012</DATE>
  <UNITNAME>Notices</UNITNAME>
  <NOTICES>
    <NOTICE>
      <PREAMB>
        <PRTPAGE P="50979"/>
        <AGENCY TYPE="F">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Office of the Secretary</SUBAGY>
        <SUBJECT>Northwest Forest Plan Provincial Advisory Committees</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice; Solicitation of nominees to the Northwest Forest Plan Provincial Advisory Committees.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In accordance with the Federal Advisory Committee Act, 5 U.S.C. app., the United States Department of Agriculture (USDA) announces solicitation for nominations to fill vacancies on the Northwest Forest Plan Provincial Advisory Committees (the Eastern Washington Cascades and the Deschutes PACs).</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Nominations must be received on or before September 24, 2012. Nominations must contain a completed application packet that includes the nominee's name, resume, and completed Form AD-755, Advisory Committee or Research and Promotion Background Information. The package must be sent to the addresses below.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Forest Contacts for Northwest Forest Plan Provincial Advisory Committees (PACs):</P>
          <P>
            <E T="03">Eastern Washington Provincial Advisory Committee:</E>Robin DeMario, Okanogan-Wenatchee National Forest Headquarters Office, 215 Melody Lane, Wenatchee, WA 98801. Telephone Number: (509) 664-9292.</P>
          <P>
            <E T="03">Deschutes Provincial Advisory Committee:</E>Mollie Chaudet, Deschutes National Forest Headquarters Office, 63095 Deschutes Market Road, Bend, OR 97701. Telephone Number:  (541) 383-5517.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Shandra Terry, Public Affairs Specialist: USDA Forest Service, Office of Public and Legislative Affairs, Telephone: (503) 808-2242, Email:<E T="03">sterry@fs.fed.us.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Background</HD>
        <P>The Secretary of Agriculture established the Pacific Northwest Provincial Advisory Committees (PACs) to the Provincial Interagency Executive Committees (PIECs) for 12 provinces, which are areas set up under the Northwest Forest Plan. The PIECs facilitate the successful implementation of the Record of Decision (ROD) of April 13, 1994, for Amendments to the Forest Service and Bureau of Land Management Planning Documents within the Range of the Northern Spotted Owl. The purpose of the PACs is to advise the PIECs on coordinating the implementation of the ROD. Each PAC provides advice regarding implementation of a comprehensive ecosystem management strategy for Federal land within a province. The PACs provide advice and recommendations to promote better integration of forest management activities between Federal and non-Federal entities to ensure that such activities are complementary.</P>
        <HD SOURCE="HD1">Provincial Advisory Committee Membership</HD>
        <P>The Committee will be comprised of no more than 29 members approved by the Secretary of Agriculture. Committee membership will be fairly balanced in terms of the points of view represented and functions to be performed. The PAC members will serve staggered terms up to 3 years.</P>
        <HD SOURCE="HD1">The Committee Shall Include Representation in the Following Areas</HD>
        <P>1. One or more representatives of the Environmental Protection Agency;</P>
        <P>2. One or more representatives of the U. S. Fish and Wildlife Service;</P>
        <P>3. One or more representatives of the Forest Service;</P>
        <P>4. One or more representatives of the BLM in each province where lands administered by BLM occur in the province;</P>
        <P>5. One or more representatives of the National Park Service in each province where a national park occurs in the province;</P>
        <P>6. One or more representatives of the National Marine Fisheries Service;</P>
        <P>7. One or more representatives of the Bureau of Indian Affairs;</P>
        <P>8. Up to a maximum of three representatives of the government of each State within whose boundaries all or a portion of the province is located (the State agencies/departments to be represented will be determined by the Federal officials described in Paragraphs 3a(1)  through 3a(7));</P>
        <P>9. One or more representatives of each county government within whose boundaries all or a portion of the province is located, up to a maximum of three county representatives;</P>
        <P>10. One or more representatives of each Tribal government whose reservation, ceded land, or usual and accustomed areas are within all or a portion of the province, up to a maximum of three Tribal representatives;</P>
        <P>11. Up to a maximum of two representatives of environmental interests;</P>
        <P>12. Up to a maximum of two representatives of different sectors of the forest products industry;</P>
        <P>13. Up to a maximum of two representatives of the recreation and tourism sectors;</P>
        <P>14. Three to five representatives of the following interests when those interests are determined by the Federal officials described in Paragraphs 3a(1) through 3a(7) to be needed on the respective provincial committee: Fish, wildlife, or forestry conservation organizations; special forest products interests, mining interests, grazing interests, and commercial fishing or charter fishing boat industry interests; and other interests that help achieve the purpose of this charter;</P>
        <P>15. Up to a total of three representatives from the following Federal agencies when the jurisdiction or authority of those agencies are determined by the Federal officials described in Paragraphs 3a(1)(a) through 3a(1)(g) to be needed on the respective provincial committee: Bureau of Reclamation, Forest Service Research, U. S. Army Corps of Engineers, U. S. Geological Survey National Biological Division, Bonneville Power Administration, Department of Defense, and Natural Resources Conservation Service; and</P>
        <P>16. Up to a maximum of three representatives representing the public at large affected by the ROD for the Northwest Forest Plan and concerned with the management of the national forests in the community.</P>

        <P>The PACs may invite a representative of the State Community Economic<PRTPAGE P="50980"/>Revitalization Team, or its equivalent, to participate as an ex-officio member. In the event a member is unable to attend a meeting of a PAC or a meeting of one of its subcommittees/working groups, that member may send a designee, or alternate, to represent him or her at the meeting. The Chairperson of each PAC will alternate annually between the Forest Service representative and the BLM representative in provinces where both agencies administer lands. When the BLM is not represented on the PIEC, the Forest Service representative will serve as Chairperson.</P>
        <HD SOURCE="HD1">Nominations and Application Information for the PACs</HD>
        <P>The appointment of members to the PACs will be made by the Secretary of Agriculture. Any individual or organization may nominate one or more qualified persons to represent the vacancies listed above. To be considered for membership, nominees must—</P>
        <P>1. Identify what vacancy they would represent and how they are qualified to represent that vacancy;</P>
        <P>2. State why they want to serve on the committee and what they can contribute;</P>
        <P>3. Show their past experience in working successfully as part of a working group on forest management activities;</P>

        <P>4. Complete Form AD-755, you may contact the persons identified above or obtain from the following Web site:<E T="03">http://www.usda.gov/documents/OCIO_AD_755_Master_2012.pdf.</E>All nominations will be vetted, by the Agency.</P>
        <P>Equal opportunity practices, in line with USDA policies, will be followed in all appointments to the PACs. To ensure that the recommendations of the PACs have taken into account the needs of the diverse groups served by the Departments, membership should include, to the extent practicable, individuals with demonstrated ability to represent minorities, women, and persons with disabilities.</P>
        <SIG>
          <DATED>Dated: August 10, 2012.</DATED>
          <NAME>Thomas L. Tidwell,</NAME>
          <TITLE>Chief, Forest Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20702 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Animal and Plant Health Inspection Service</SUBAGY>
        <DEPDOC>[Docket No. APHIS-2012-0066]</DEPDOC>
        <SUBJECT>Notice of Request for a Revision to and Extension of Approval of an Information Collection; Tuberculosis</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Animal and Plant Health Inspection Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Revision to and extension of approval of an information collection; comment request.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In accordance with the Paperwork Reduction Act of 1995, this notice announces the Animal and Plant Health Inspection Service's intention to request an extension of approval of an information collection associated with the bovine tuberculosis regulations.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We will consider all comments that we receive on or before October 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments by either of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov/#!documentDetail;D=APHIS-2012-0066-0001.</E>
          </P>
          <P>•<E T="03">Postal Mail/Commercial Delivery:</E>Send your comment to Docket No. APHIS-2012-0066, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238.</P>

          <P>Supporting documents and any comments we receive on this docket may be viewed at<E T="03">http://www.regulations.gov/#!docketDetail;D=APHIS-2012-0066</E>or in our reading room, which is located in Room 1141 of the USDA South Building, 14th Street and Independence Avenue SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 799-7039 before coming.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>For information on the domestic tuberculosis program, contact Dr. Charles W. Hench, Senior Staff Veterinarian, Tuberculosis Eradication Program, APHIS, 2150 Centre Avenue, Fort Collins, CO 80526; (970) 494-7378. For copies of more detailed information on the information collection, contact Mrs. Celeste Sickles, APHIS' Information Collection Coordinator, at (301) 851-2908.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        
        <P SOURCE="NPAR">
          <E T="03">Title:</E>Tuberculosis.</P>
        <P>
          <E T="03">OMB Number:</E>0579-0146.</P>
        <P>
          <E T="03">Type of Request:</E>Revision to and extension of approval of an information collection.</P>
        <P>
          <E T="03">Abstract:</E>Under the Animal Health Protection Act (7 U.S.C. 8301<E T="03">et seq.</E>), the Animal and Plant Health Inspection Service (APHIS) of the U.S. Department of Agriculture (USDA) is authorized, among other things, to prohibit or restrict the interstate movement of animals and animal products to prevent the dissemination within the United States of animal diseases and pests and for conducting programs to detect, control, and eradicate pests and diseases of livestock. In connection with this mission, APHIS participates in the Cooperative State-Federal Bovine Tuberculosis Eradication Program, which is a national program to eliminate bovine tuberculosis from the United States. This program is conducted under various States' authorities supplemented by Federal authorities regulating interstate movement of affected animals.</P>
        <P>The tuberculosis regulations contained in 9 CFR part 77 provide several levels of tuberculosis risk classifications to be applied to States and zones within States, and classify States and zones according to their tuberculosis risk. The regulations restrict the interstate movement of cattle, bison, and captive cervids from the various classes of States or zones to prevent the spread of tuberculosis.</P>
        <P>These regulations contain information collection activities, including requirements for epidemiological reviews, certificates for animals moved interstate, tuberculosis management plans, submission by States of requests to APHIS for State or zone status, and submission by States of an annual report to APHIS for renewal of State or zone status.</P>
        <P>The total burden hours increased due to program changes and adjustments. For example, the certificate of tuberculosis test was separated into two separate burden items and their combined burden was, therefore, increased. The States are also providing more detailed information with the memorandum of understanding resulting in an increased burden. In addition, nine new forms have been added to the collection, including recordkeeping for approved feedlots.</P>
        <P>We are asking the Office of Management and Budget (OMB) to approve our use of these information collection activities for an additional 3 years.</P>

        <P>The purpose of this notice is to solicit comments from the public (as well as affected agencies) concerning our<PRTPAGE P="50981"/>information collection. These comments will help us:</P>
        <P>(1) Evaluate whether the collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility;</P>
        <P>(2) Evaluate the accuracy of our estimate of the burden of the collection of information, including the validity of the methodology and assumptions used;</P>
        <P>(3) Enhance the quality, utility, and clarity of the information to be collected; and</P>
        <P>(4) Minimize the burden of the collection of information on those who are to respond, through use, as appropriate, of automated, electronic, mechanical, and other collection technologies; e.g., permitting electronic submission of responses.</P>
        <P>
          <E T="03">Estimate of burden:</E>The public reporting burden for this collection of information is estimated to average 0.4654 hours per response.</P>
        <P>
          <E T="03">Respondents:</E>State animal health officials, producers and owners (including animal and feedlot owners), and accredited veterinarians.</P>
        <P>
          <E T="03">Estimated annual number of respondents:</E>5,000.</P>
        <P>
          <E T="03">Estimated annual number of responses per respondent:</E>11.9532.</P>
        <P>
          <E T="03">Estimated annual number of responses:</E>59,766.</P>
        <P>
          <E T="03">Estimated total annual burden on respondents:</E>27,818 hours. (Due to averaging, the total annual burden hours may not equal the product of the annual number of responses multiplied by the reporting burden per response.)</P>
        <P>All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.</P>
        <SIG>
          <DATED>Done in Washington, DC, this 17th day of August 2012.</DATED>
          <NAME>Kevin Shea,</NAME>
          <TITLE>Acting Administrator, Animal and Plant Health Inspection Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20737 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-34-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Animal and Plant Health Inspection Service</SUBAGY>
        <DEPDOC>[Docket No. APHIS-2012-0056]</DEPDOC>
        <SUBJECT>Notice of Request for Extension of Approval of an Information Collection; Importation of Swine Hides, Bird Trophies, and Deer Hides</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Animal and Plant Health Inspection Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Extension of approval of an information collection; comment request.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In accordance with the Paperwork Reduction Act of 1995, this notice announces the Animal and Plant Health Inspection Service's intention to request an extension of approval of an information collection associated with the importation of swine hides, bird trophies, and deer hides.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We will consider all comments that we receive on or before October 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments by either of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov/#!documentDetail;D=APHIS-2012-0056-0001</E>.</P>
          <P>•<E T="03">Postal Mail/Commercial Delivery:</E>Send your comment to Docket No. APHIS-2012-0056, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238.</P>

          <P>Supporting documents and any comments we receive on this docket may be viewed at<E T="03">http://www.regulations.gov/#!docketDetail;D=APHIS-2012-0056</E>or in our reading room, which is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 799-7039 before coming.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>For information on the regulations for the importation of swine hides, bird trophies, and deer hides, contact Dr. Tracye Butler, Assistant Director, NCIE, VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 20737; (301) 851-3340. For copies of more detailed information on the information collection, contact Mrs. Celeste Sickles, APHIS' Information Collection Coordinator, at (301) 851-2908.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        
        <P SOURCE="NPAR">
          <E T="03">Title:</E>Importation of Swine Hides, Bird Trophies, and Deer Hides.</P>
        <P>
          <E T="03">OMB Number:</E>0579-0307.</P>
        <P>
          <E T="03">Type of Request:</E>Extension of approval of an information collection.</P>
        <P>
          <E T="03">Abstract:</E>Under the Animal Health Protection Act (7 U.S.C. 8301<E T="03">et seq.</E>), the Animal and Plant Health Inspection Service (APHIS) of the United States Department of Agriculture is authorized, among other things, to prohibit or restrict the importation and interstate movement of animals and animal products to prevent the introduction into and dissemination within the United States of livestock diseases and pests. To carry out this mission, APHIS regulates the importation of animals and animal products into the United States. The regulations are contained in title 9, parts 91 through 99, of the Code of Federal Regulations.</P>
        <P>The regulations in 9 CFR part 95 (referred to below as the regulations) prohibit or restrict the importation of specified animal products into the United States to prevent the introduction into the U.S. livestock population of certain contagious animal diseases. Section 95.5 of the regulations contains, among other things, specific processing, recordkeeping, and certification requirements for untanned hides and skins and bird trophies.</P>
        <P>The regulations require that shipments of hides be accompanied by certificates showing their origin and certifying that the hides are from areas free of certain animal diseases. Shipments of ruminant hides from Mexico must be accompanied by written statements indicating that the hides were frozen for 24 hours and treated for ticks. Shipments of bird trophies must be accompanied by certificates of origin certifying that the trophies are from regions free of exotic Newcastle disease and highly pathogenic avian influenza. These activities help ensure that the products do not harbor disease or ticks.</P>
        <P>We have increased the estimated annual burden after reviewing the regulations and current data. When comparing the regulations with the information collection activities, we found that the reporting of certificates for hides and skins from certain regions was omitted from past information collections.</P>
        <P>We are asking the Office of Management and Budget (OMB) to approve our use of these information collection activities for 3 years.</P>
        <P>The purpose of this notice is to solicit comments from the public (as well as affected agencies) concerning our information collection. These comments will help us:</P>
        <P>(1) Evaluate whether the collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility;</P>
        <P>(2) Evaluate the accuracy of our estimate of the burden of the collection of information, including the validity of the methodology and assumptions used;</P>
        <P>(3) Enhance the quality, utility, and clarity of the information to be collected; and</P>

        <P>(4) Minimize the burden of the collection of information on those who are to respond, through use, as<PRTPAGE P="50982"/>appropriate, of automated, electronic, mechanical, and other collection technologies; e.g., permitting electronic submission of responses.</P>
        <P>
          <E T="03">Estimate of burden:</E>The public reporting burden for this collection of information is estimated to average 0.1997 hours per response.</P>
        <P>
          <E T="03">Respondents:</E>Federal animal health authorities in certain regions and foreign exporters of certain animal byproducts.</P>
        <P>
          <E T="03">Estimated annual number of respondents:</E>191.</P>
        <P>
          <E T="03">Estimated annual number of responses per respondent:</E>3.7225.</P>
        <P>
          <E T="03">Estimated annual number of responses:</E>711.</P>
        <P>
          <E T="03">Estimated total annual burden on respondents:</E>142 hours. (Due to averaging, the total annual burden hours may not equal the product of the annual number of responses multiplied by the reporting burden per response.)</P>
        <P>All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.</P>
        <SIG>
          <DATED>Done in Washington, DC, this 17th day of August 2012.</DATED>
          <NAME>Kevin Shea,</NAME>
          <TITLE>Acting Administrator, Animal and Plant Health Inspection Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20739 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-34-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Animal and Plant Health Inspection Service</SUBAGY>
        <DEPDOC>[Docket No. APHIS-2012-0062]</DEPDOC>
        <SUBJECT>Notice of Request for Extension of Approval of an Information Collection; Foreign Quarantine Notices</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Animal and Plant Health Inspection Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Extension of approval of an information collection; comment request.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>In accordance with the Paperwork Reduction Act of 1995, this notice announces the Animal and Plant Health Inspection Service's intention to request an extension of approval of an information collection associated with regulations to prevent the introduction or spread of foreign plant pests into or within the United States.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>We will consider all comments that we receive on or before October 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments by either of the following methods:</P>
          <P>•<E T="03">Federal eRulemaking Portal:</E>Go to<E T="03">http://www.regulations.gov/#!documentDetail;D=APHIS-2012-0062-0001.</E>
          </P>
          <P>•<E T="03">Postal Mail/Commercial Delivery:</E>Send your comment to Docket No. APHIS-2012-0062, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD 20737-1238.</P>

          <P>Supporting documents and any comments we receive on this docket may be viewed at<E T="03">http://www.regulations.gov/#!docketDetail;D=APHIS-2012-0062</E>or in our reading room, which is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 799-7039 before coming.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>For information on foreign quarantine regulations, contact Mr. Matthew Rhoads, Director, Regulation, Permit, and Manuals, PPQ, APHIS, 4700 River Road Unit 156, Riverdale, MD 20737; (301) 851-2018. For copies of more detailed information on the information collection, contact Mrs. Celeste Sickles, APHIS' Information Collection Coordinator, at (301) 851-2908.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <P SOURCE="NPAR">
          <E T="03">Title:</E>Foreign Quarantine Notices.</P>
        <P>
          <E T="03">OMB Number:</E>0579-0049.</P>
        <P>
          <E T="03">Type of Request:</E>Extension of approval of an information collection.</P>
        <P>
          <E T="03">Abstract:</E>The Plant Protection Act (PPA, 7 U.S.C. 7701<E T="03">et seq.</E>) authorizes the Secretary of Agriculture to restrict or prohibit the importation, entry, or interstate movement of plants, plant products, and other articles to prevent the introduction of plant pests into the United States or their dissemination within the United States. This authority has been delegated to the Animal and Plant Health Inspection Service (APHIS), which administers regulations to implement the PPA. Regulations governing the importation of plants, fruits, vegetables, roots, bulbs, seeds, unmanufactured wood articles, and other plant products are contained in 7 CFR part 319, “Foreign Quarantine Notices.”</P>
        <P>In administering the regulations, APHIS collects information from persons both within and outside the United States who are involved in growing, packing, handling, transporting, and importing articles regulated under part 319.</P>
        <P>For example, many plants or plant products may not be imported until the person wishing to import them receives a permit from APHIS. The person wishing to import these items must first fill out a permit application. We consider the permit application process extremely important, since the information on the application enables us to determine whether the items for import represent a potential pest threat to U.S. agriculture.</P>
        <P>Under certain circumstances, we also require importers to supply us with other types of information. We require, for example, that containers used to import various plants or plant products be marked in a certain way so that our inspectors can accurately identify them and match them to their accompanying documentation.</P>
        <P>We require that certain shipments be accompanied by a phytosanitary inspection certificate, which is a document completed by plant health officials in the originating country that attests to the condition of the shipment with respect to plant pests at the time it was inspected prior to its export to the United States. We use this important information as a guide in determining the intensity of the inspection we must conduct when the shipment arrives in the United States.</P>
        <P>This and other information we collect is vital to helping us ensure that imported plants and plant products do not harbor plant pests or noxious weeds that, if introduced into the United States, could cause millions of dollars in damage to U.S. agriculture.</P>
        <P>We are asking OMB to approve our use of these information collection activities for 3 years.</P>
        <P>The purpose of this notice is to solicit comments from the public (as well as affected agencies) concerning our information collection. These comments will help us:</P>
        <P>(1) Evaluate whether the collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility;</P>
        <P>(2) Evaluate the accuracy of our estimate of the burden of the collection of information, including the validity of the methodology and assumptions used;</P>
        <P>(3) Enhance the quality, utility, and clarity of the information to be collected; and</P>
        <P>(4) Minimize the burden of the collection of information on those who are to respond, through use, as appropriate, of automated, electronic, mechanical, and other collection technologies; e.g., permitting electronic submission of responses.</P>
        <P>
          <E T="03">Estimate of burden:</E>The public reporting burden for this collection of information is estimated to average 0.2993 hours per response.<PRTPAGE P="50983"/>
        </P>
        <P>
          <E T="03">Respondents:</E>U.S. importers of fruits and vegetables; foreign plant protection authorities; individuals involved in growing, packing, handling, transporting, and importing plants and plant products; and beekeepers.</P>
        <P>
          <E T="03">Estimated annual number of respondents:</E>93,066.</P>
        <P>
          <E T="03">Estimated annual number of responses per respondent:</E>3.4404.</P>
        <P>
          <E T="03">Estimated annual number of responses:</E>320,182.</P>
        <P>
          <E T="03">Estimated total annual burden on respondents:</E>95,818 hours. (Due to averaging, the total annual burden hours may not equal the product of the annual number of responses multiplied by the reporting burden per response.)</P>
        <P>All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.</P>
        <SIG>
          <DATED>Done in Washington, DC, this 17th day of August 2012.</DATED>
          <NAME>Kevin Shea,</NAME>
          <TITLE>Acting Administrator, Animal and Plant Health Inspection Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20738 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-34-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>Southern Arizona Resource Advisory Committee</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of meeting.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Southern Arizona Resource Advisory Committee will meet in Tucson, Arizona. The committee is authorized under the Secure Rural Schools and Community Self-Determination Act (Pub. L. 112-141) (the Act) and operates in compliance with the Federal Advisory Committee Act. The purpose of the committee is to improve collaborative relationships and to provide advice and recommendations to the Forest Service concerning projects and funding consistent with the title II of the Act. The meeting is open to the public. The purpose of the meeting is to review and recommend projects authorized under title II of the Act.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>The meeting will be held September 18, 2012, at 10:00 a.m.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The meeting will be held at the Tucson Interagency Fire Center, 2646 E. Commerce Center Place, Tucson, AZ 85706. Written comments may be submitted as described under<E T="02">SUPPLEMENTARY INFORMATION</E>. All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received at the Coronado National Forest Supervisor's Office, 300 West Congress Street, Tucson, AZ 85701. Please call ahead to 520-388-8458 to facilitate entry into the building to view comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Sarah Davis, Coronado National Forest Supervisor's Office, 520-388-8458,<E T="03">sldavis@fs.fed.us</E>, or Jennifer Ruyle, RAC Coordinator, same location, 520-388-8351,<E T="03">jruyle@fs.fed.us.</E>
          </P>
          <P>Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8:00 a.m. and 8:00 p.m., Eastern Standard Time, Monday through Friday.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The following business will be conducted: Review, discussion, and recommendation to the Designated Federal Official of the proposals to be funded. Additional information may be obtained from Sarah Davis, contact information listed above. Anyone who would like to bring related matters to the attention of the committee may file written statements with the committee staff before or after the meeting. The agenda will include time for people to make oral statements of three minutes or less. Individuals wishing to make an oral statement should request in writing by September 14, 2012 to be scheduled on the agenda. Written comments and requests for time for oral comments must be sent to Sarah Davis, Coronado National Forest Supervisor's Office, 300 West Congress Street, Tucson, AZ 85701, or by email to<E T="03">sldavis@fs.fed.us</E>, or via facsimile to 520-388-8332. A summary of the meeting will be posted at<E T="03">https://fsplaces.fs.fed.us/fsfiles/unit/wo/secure_rural_schools.nsf</E>within 21 days of the meeting.</P>
        <P>
          <E T="03">Meeting Accommodations:</E>If you are a person requiring resonable accommodation, please make requests in advance for sign language interpreting, assistive listening devices or other reasonable accomodation for access to the facility or procedings by contacting the person listed under<E T="02">FOR FURTHER INFORMATION CONTACT</E>. All reasonable accommodation requests are managed on a case by case basis.</P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Cornelia D. Lane,</NAME>
          <TITLE>Acting Forest Supervisor, Coronado National Forest.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20733 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>Ozark-Ouachita Resource Advisory Committee</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of meeting.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Ozark-Ouachita Rescource Advisory Committee will meet in Waldron, Arkansas. The committee is authorized under the Secure Rural Schools and Community Self-Determination Act (Pub. L. 112-141) (the Act) and operates in compliance with the Federal Advisory Committee Act. The purpose of the committee is to improve collaborative relationships and to provide advice and recommendations to the Forest Service concerning projects and funding consistent with the title II of the Act. The meeting is open to the public. The purpose of the meeting is to review and recommend projects authorized under title II of the Act.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>The meeting will be held September 25, 2012, beginning at 4:30 p.m. CST. Alternate meeting dates are September 26, 27, and 28 in case of postponement due to weather, lack of committee quorum, or other unforeseen circumstances. Please call 501-321-5202 prior to September 25th to determine postponment or rescheduling.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>The meeting will be held at the Scott County Courthouse, 100 W. First Street, Waldron, AR 71958. Written comments may be submitted as described under Supplementary Information. All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received at the Ouachita National Forest Supervisor's Office. Please call ahead to 501-321-5202 to facilitate entry into the building to view comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Caroline Mitchell, Committee Coordinator, USDA, Ouachita National Forest, P.O. Box 1270, Hot Springs, AR 71902. (501-321-5318). Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8:00 a.m. and 8:00 p.m., Eastern Standard Time, Monday through Friday.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The following business will be conducted: review and recommend projects authorized under title II of the Act.<PRTPAGE P="50984"/>Anyone who would like to bring related matters to the attention of the committee may file written statements with the committee staff before the meeting. The agenda will include time for people to make oral statements of three minutes or less. Individuals wishing to make an oral statement should request in writing by September 18, 2012, to be scheduled on the agenda. Send written comments and requests to Ouachita National Forest, P.O. Box 1270, Hot Springs, AR 71902, or by email to<E T="03">carolinemitchell@fs.fed.us,</E>or via facsimile to 501-321-5399. A summary of the meeting will be posted at<E T="03">https://fs.fed.us/fsfiles/unit/wo/secure_rural_schools.nsf</E>within 21 days of the meeting.</P>
        <P>
          <E T="03">Meeting Accommodations:</E>If you require sign language interpreting, assistive listening devices or other reasonable accommodation, please request this in advance of the meeting by contacting the person listed in the section titled<E T="02">FOR FURTHER INFORMATION CONTACT</E>. All reasonable accommodation requests are managed on a case by case basis.</P>
        <SIG>
          <DATED>Dated: August 16, 2012.</DATED>
          <NAME>Bill Pell,</NAME>
          <TITLE>Designated Federal Official.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20796 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>Ontonagon Resource Advisory Committee</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of meeting.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Ontonagon Resource Advisory Committee will meet in Ontonagon, Michigan. The committee is meeting as authorized under the Secure Rural Schools and Community Self-Determination Act (Pub. L. 110-343) (the Act) and operates in compliance with the Federal Advisory Committee Act. The purpose of the committee is to improve collaborative relationships and to provide advice and recommendations to the Forest Service concerning projects and funding consistent with  title II of the Act. The meeting is open to the public. The purpose of the meeting is to review and make recommendations on Title II Projects submitted by the public.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>The meeting will be held on September 13, 2012, and will begin at 9:30 a.m. (EST).</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The meeting will be held at the Ewen-Trout Creek School, 14312 Airport Road, Ewen, Michigan. Written comments may be submitted as described under<E T="02">SUPPLEMENTARY INFORMATION</E>.</P>
          <P>All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received at Ottawa National Forest, E6248 US Hwy. 2, Ironwood, MI 49938. Please call ahead to 906-932-1330 to facilitate entry into the building to view comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Lisa Klaus, RAC coordinator, USDA, Ottawa National Forest, E6248 US Hwy. 2, Ironwood, MI, (906) 932-1330, ext. 328; email<E T="03">lklaus@fs.fed.us.</E>
          </P>

          <P>Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8:00 a.m. and 8:00 p.m., Eastern Standard Time, Monday through Friday. Requests for reasonable accommodation for access to the facility or proceedings may be made by contacting the person listed in<E T="02">FOR FURTHER INFORMATION CONTACT</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The following business will be conducted: (1) Review and approval of previous meeting minutes. (2) Review and make recommendations for Title II Projects submitted by the public. (3) Public comment. Anyone who would like to bring related matters to the attention of the Committee may file written statements with the Committee staff before or after the meeting. The agenda will include time for people to make oral statements of three minutes or less. Individuals wishing to make an oral statement should request in writing by September 7, 2012, to be scheduled on the agenda. Written comments and requests for time for oral comments must be sent to Lisa Klaus, Ottawa National Forest, E6248 US Hwy. 2, Ironwood, MI 49938. Comments may also be sent via email to<E T="03">lklaus@fs.fed.us</E>or via facsimile to 906-932-0122.</P>
        <P>
          <E T="03">Meeting Accommodations:</E>If you require sign language interpreting, assistive listening devices or other reasonable accommodation please request this in advance of the meeting by contacting the person listed in the section titled<E T="02">FOR FURTHER INFORMATION CONTACT</E>.</P>
        <P>All reasonable accommodation requests are managed on a case by case basis.</P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Lisa Klaus,</NAME>
          <TITLE>Acting Forest Supervisor.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20725 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>GMUG Resource Advisory Committee</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of meeting.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The GMUG Resource Advisory Committee will meet in Delta, Colorado. The committee is authorized under the Secure Rural Schools and Community Self-Determination Act (Pub. L. 110-343) (the Act) and operates in compliance with the Federal Advisory Committee Act. The purpose of the committee is to improve collaborative relationships and to provide advice and recommendations to the Forest Service concerning projects and funding consistent with the title II of the Act. The meeting is open to the public. The purpose of the meeting is to gather the appointed committee members together to review and recommend projects for Title II funding within Garfield, Mesa, Delta, Gunnison and Montrose Counties, Colorado.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>The meeting will be held Wednesday, September 19, 2012, at 1:00 p.m.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The meeting will be held at the Forest Supervisor's Office at 2250 Highway 50, Delta, Colorado in the North Spruce Conference Room. Written comments should be sent to Attn: GMUG RAC, 2250 Highway 50, Delta, CO 81416. Comments may also be sent via email to<E T="03">lloupe@fs.fed.us</E>or via facsimile to Attn: Lee Ann Loupe, RAC Coordinator at 970-874-6698.</P>

          <P>Written comments may be submitted as described under Supplementary Information. All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received at<E T="03">www.fido.gov/facadatabase</E>under GMUG RAC information. Please call ahead to 970-874-6717 to facilitate entry into the building to view comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Lee Ann Loupe, RAC Coordinator, Grand Mesa, Uncompahgre &amp; Gunnison National Forests, 970-874-6717 (phone), 970-874-6660 (TTY),<E T="03">lloupe@fs.fed.us</E>.</P>

          <P>Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8:00 a.m. and 8:00 p.m., Eastern Standard Time, Monday through Friday. Please make requests in advance for sign language interpreting, assistive listening devices or other<PRTPAGE P="50985"/>reasonable accomodation for access to the facility or proceedings by contacting the person listed For Further Information.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The meeting is open to the public. The following business will be conducted: The appointed Committee members will be updated on current projects that were recommended and approved by the RAC; review and discuss the projects that were submitted to the Committee by August 31; and make recommendations for funding/approval of those projects to utilize Title II funds within the appropriate counties. Full agenda can be previewed at:<E T="03">www.fido.gov/facadatabase</E>. The agenda will include time for people to make oral statements of three minutes or less. Individuals wishing to make an oral statement should request in writing by September 5, 2012 to be scheduled on the agenda. Written comments and requests for time for oral comments must be sent to 2250 Highway 50, Delta, CO 81416 or by email to<E T="03">lloupe@fs.fed.us</E>or via facsimile to Attn: Lee Ann Loupe 970-874-6698. A summary of the meeting will be posted at Federal Advisory Committee Web site at:<E T="03">www.fido.gov/facadatabase</E>within 21 days of the meeting. If you require sign language interpreting, assistive listening devices or other reasonable accommodations for access to the meeting please request this in advance by contacting the person listed in the section titled<E T="02">For Further information Contact.</E>All reasonable accommodation requests are managed on a case by case basis.</P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Sherry Hazelhurst,</NAME>
          <TITLE>Deputy Forest Supervisor/GMUG RAC DFO.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20730 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>National Advisory Committee for Implementation of the National Forest System Land Management Planning Rule</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of meeting.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The National Advisory Committee for Implementation of the National Forest System Land Management Planning Rule will meet in Washington, DC. The committee operates in compliance with the Federal Advisory Committee Act. The purpose of the committee is to provide advice and recommendations on the implementation of the National Forest System Land Management Rule. The meeting is open to the public. The purpose of the meeting is to perform administrative tasks such as ethics training, Federal Advisory Committee Act training, and establishing committee operating procedures. Another objective of the meeting is to define areas where the committee can provide the most valuable input and recommendations for implementation of the new planning rule.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>The meeting will be held on September 11-13, 2012, from 9:00 a.m. to  5:00 p.m., Eastern Standard Time.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>The meeting will be held at the Courtyard Washington located at  1325 2nd Street NE., Washington, DC.</P>
          <P>Written comments may be submitted as described under Supplementary Information. All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received at 201 14th Street SW., Washington, DC, 3rd Floor Central. Please call ahead to 202-205-0895 to facilitate entry into the building to view comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Jennifer Helwig, Ecosystem Management Coordination, 202-205-0892,<E T="03">jahelwig@fs.fed.us.</E>
          </P>
          <P>Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8:00 a.m. and  8:00 p.m., Eastern Standard Time, Monday through Friday.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The following business will be conducted: (1) Determine the scope and initial tasks of the committee, (2) ethics training, and  (3) administrative tasks. Further information, including the meeting agenda, will be posted on the Planning Rule Advisory Committee Web site at<E T="03">http://www.fs.usda.gov/main/planningrule/committee.</E>
        </P>

        <P>Anyone who would like to bring related matters to the attention of the committee may file written statements with the committee staff before the meeting. Written comments must be sent to USDA Forest Service, Ecosystem Management Coordination, 201 14th Street SW., Mail Stop 1104, Washington, DC 20250-1104. Comments may also be sent via email to Jennifer<E T="03">Helwig at jahelwig@fs.fed.us,</E>or via facsimile to 202-205-1012. A summary of the meeting will be posted at<E T="03">http://www.fs.usda.gov/main/planningrule/committee</E>within 21 days of the meeting. Anyone who would like to bring related matters to the attention of the committee may file written statements with the committee staff before the meeting.</P>
        <P>
          <E T="03">Meeting Accommodations:</E>If you require sign language interpreting, assistive listening devices or other reasonable accommodation, please request this in advance of the meeting by contacting the person listed in the section titled<E T="02">FOR FURTHER INFORMATION CONTACT</E>. All reasonable accommodation requests are managed on a case-by-case basis.</P>
        <SIG>
          <DATED>Dated: August 15, 2012.</DATED>
          <NAME>James W. Peña,</NAME>
          <TITLE>Associate Deputy Chief, National Forest System.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20701 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
        <SUBAGY>Forest Service</SUBAGY>
        <SUBJECT>Gogebic Resource Advisory Committee</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Forest Service, USDA.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of meeting.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Gogebic Resource Advisory Committee will meet in Watersmeet, Michigan. The committee is meeting as authorized under the Secure Rural Schools and Community Self-Determination Act (Pub. L. 110-343) (the Act) and operates in compliance with the Federal Advisory Committee Act. The purpose of the committee is to improve collaborative relationships and to provide advice and recommendations to the Forest Service concerning projects and funding consistent with the title II of the Act. The meeting is open to the public. The purpose of the meeting is to review and make recommendations on Title II Projects submitted by the public.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>The meeting will be held on September 14, 2012, and will begin at 9:30 a.m. (CST).</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>The meeting will be held at the Watersmeet/Iron River Ranger District Office, Corner of U.S. 2/Hwy 45, Watersmeet, Michigan. Written comments may be submitted as described under<E T="02">SUPPLEMENTARY INFORMATION</E>.</P>

          <P>All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received at Ottawa National Forest, E6248 U.S. Hwy. 2, Ironwood, MI 49938. Please call ahead<PRTPAGE P="50986"/>to 906-932-1330 to facilitate entry into the building to view comments.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Lisa Klaus, RAC coordinator, USDA, Ottawa National Forest, E6248 U.S. Hwy. 2, Ironwood, MI, (906) 932-1330, ext. 328; email<E T="03">lklaus@fs.fed.us.</E>
          </P>
          <P>Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8:00 a.m. and 8:00 p.m., Eastern Standard Time, Monday through Friday. Requests for reasonable accommodation for access to the facility or procedings may be made by contacting the person listed For Further Information.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The following business will be conducted: (1) Review and approval of previous meeting minutes. (2) Review and make recommendations for Title II Projects submitted by the public. (3) Public comment. Anyone who would like to bring related matters to the attention of the Committee may file written statements with the Committee staff before or after the meeting. The agenda will include time for people to make oral statements of three minutes or less. Individuals wishing to make an oral statement should request in writing by September 7, 2012, to be scheduled on the agenda. Written comments and requests for time for oral comments must be sent to Lisa Klaus, Ottawa National Forest, E6248 U.S. Hwy. 2, Ironwood, MI 49938. Comments may also be sent via email to<E T="03">lklaus@fs.fed.us</E>or via facsimile to 906-932-0122.</P>
        <P>
          <E T="03">Meeting Accommodations:</E>If you require sign language interpreting, assistive listening devices or other reasonable accommodation please request this in advance of the meeting by contacting the person listed in the section titled<E T="02">FOR FURTHER INFORMATION CONTACT.</E>
        </P>
        <P>All reasonable accommodation requests are managed on a case by case basis.</P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Lisa Klaus,</NAME>
          <TITLE>Acting Forest Supervisor.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20726 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3410-11-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
        <P>The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).</P>
        <P>
          <E T="03">Agency:</E>International Trade Administration.</P>
        <P>
          <E T="03">Title:</E>Procedures for Considering Requests and Comments from the Public for Textile and Apparel Safeguard Actions on Imports from Colombia.</P>
        <P>
          <E T="03">OMB Control Number:</E>None.</P>
        <P>
          <E T="03">Form Number(s):</E>None.</P>
        <P>
          <E T="03">Type of Request:</E>Regular submission (new information collection).</P>
        <P>
          <E T="03">Burden Hours:</E>24.</P>
        <P>
          <E T="03">Number of Respondents:</E>6 (1 for Request; 5 for Comments).</P>
        <P>
          <E T="03">Average Hours per Response:</E>4 hours for a Request; and 4 hours for each Comment.</P>
        <P>
          <E T="03">Average Annual Cost to Public:</E>$960.</P>
        <P>
          <E T="03">Needs and Uses:</E>Title III, Subtitle B, Section 321 through Section 328 of the United States-Colombia Trade Promotion Agreement Implementation Act (the “Act”) [Public Law 112-42] implements the textile and apparel safeguard provisions, provided for in Article 3.1 of the United States-Colombia Trade Promotion Agreement (the “Agreement”). This safeguard mechanism applies when, as a result of the elimination of a customs duty under the Agreement, a Colombian textile or apparel article is being imported into the United States in such increased quantities, in absolute terms or relative to the domestic market for that article, and under such conditions as to cause serious damage or actual threat thereof to a U.S. industry producing a like or directly competitive article. In these circumstances, Article 3.1 permits the United States to increase duties on the imported article from Colombia to a level that does not exceed the lesser of the prevailing U.S. normal trade relations (NTR)/most-favored-nation (MFN) duty rate for the article or the U.S. NTR/MFN duty rate in effect on the day before the Agreement entered into force.</P>
        <P>The Statement of Administrative Action accompanying the Act provides that the Committee for the Implementation of Textile Agreements (CITA) will issue procedures for requesting such safeguard measures, for making its determinations under section 322(a) of the Act, and for providing relief under section 322(b) of the Act.</P>
        <P>In Proclamation No. 8818 (77 FR 29519, May 18, 2012), the President delegated to CITA his authority under Subtitle B of Title III of the Act with respect to textile and apparel safeguard measures.</P>
        <P>CITA must collect information in order to determine whether a domestic textile or apparel industry is being adversely impacted by imports of these products from Colombia, thereby allowing CITA to take corrective action to protect the viability of the domestic textile or apparel industry, subject to section 322(b) of the Act.</P>
        <P>
          <E T="03">Affected Public:</E>Individuals or households; business or other for-profit organizations.</P>
        <P>
          <E T="03">Frequency:</E>On occasion.</P>
        <P>
          <E T="03">Respondent's Obligation:</E>Voluntary.</P>
        <P>
          <E T="03">OMB Desk Officer:</E>Wendy Liberante, (202) 395-3647.</P>

        <P>Copies of the above information collection proposal can be obtained by calling or writing Jennifer Jessup, Departmental Paperwork Clearance Officer, (202) 482-0336, Department of Commerce, Room 6616, 14th and Constitution Avenue NW., Washington, DC 20230 (or via the Internet at<E T="03">jjessup@doc.gov</E>).</P>

        <P>Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to Wendy Liberante, OMB Desk Officer, Fax number (202) 395-7285 or via the Internet at<E T="03">Wendy_L._Liberante@omb.eop.gov.</E>
        </P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Gwellnar Banks,</NAME>
          <TITLE>Management Analyst, Office of the Chief Information Officer.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20715 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
        <P>The Department of Commerce will submit to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35).</P>
        <P>
          <E T="03">Agency:</E>National Oceanic and Atmospheric Administration (NOAA).</P>
        <P>
          <E T="03">Title:</E>Coastal Zone Management Program Administration.</P>
        <P>
          <E T="03">OMB Control Number:</E>0648-0119.</P>
        <P>
          <E T="03">Form Number(s):</E>NA.</P>
        <P>
          <E T="03">Type of Request:</E>Regular submission (revision and extension of a current information collection).</P>
        <P>
          <E T="03">Number of Respondents:</E>34.</P>
        <P>
          <E T="03">Average Hours per Response:</E>Performance management tracking, 27 hours; performance reports range from 1 to 34 hours, depending on the program; Section 306a application checklist and documentation, 5 hours; amendments and program change documentation, 16 hours; Section 309 Strategy and Assessment documentation, 240 hours;<PRTPAGE P="50987"/>Coastal Nonpoint Pollution Program documentation, 320 hours.</P>
        <P>
          <E T="03">Burden Hours:</E>9,704.</P>
        <P>
          <E T="03">Needs and Uses:</E>This request is for revision and extension of a currently approved information collection.</P>

        <P>In 1972, in response to intense pressure on United States (U.S) coastal resources, and because of the importance of U.S. coastal areas, the U.S. Congress passed the Coastal Zone Management Act of 1972 (CZMA), 16 U.S.C. 1451<E T="03">et seq.</E>The CZMA authorized a federal program to encourage coastal states and territories to develop comprehensive coastal management programs. The CZMA has been reauthorized on several occasions, most recently with the enactment of the Coastal Zone Protection Act of 1996. (CZMA as amended). The program is administered by the Secretary of Commerce, who in turn has delegated this responsibility to the National Oceanic and Atmospheric Administration's (NOAA) National Ocean Services (NOS).</P>
        <P>The coastal zone management grants provide funds to states and territories to implement federally-approved coastal management programs; complete information for the Coastal Zone Management Program (CZMP) Performance Management System; revise assessment document and multi-year strategy; submit documentation as described in the CZMA Section 306a on the approved coastal zone management programs; submit request to approve amendments or program changes; and report on the states' coastal nonpoint source pollution programs (CNPSP).</P>
        <P>Revision: There is new competitive grant funding under CZMA Section 309a, so that funding stream and required documentation will now be part of this information collection. For Section 309 Strategy Assessment, reports are due every 5 years now, rather than every 2 years. For Section 310, there is currently no funding.</P>
        <P>
          <E T="03">Affected Public:</E>State, local and tribal government.</P>
        <P>
          <E T="03">Frequency:</E>Annually, semi-annually and on occasion.</P>
        <P>
          <E T="03">Respondent's Obligation:</E>Required to retain or obtain benefits.</P>
        <P>
          <E T="03">OMB Desk Officer:</E>
          <E T="03">OIRA_Submission@omb.eop.gov.</E>
        </P>

        <P>Copies of the above information collection proposal can be obtained by calling or writing Jennifer Jessup, Departmental Paperwork Clearance Officer, (202) 482-0336, Department of Commerce, Room 6616, 14th and Constitution Avenue NW., Washington, DC 20230 (or via the Internet at<E T="03">JJessup@doc.gov</E>).</P>

        <P>Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to<E T="03">OIRA_Submission@omb.eop.gov.</E>
        </P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>Gwellnar Banks,</NAME>
          <TITLE>Management Analyst, Office of the Chief Information Officer.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20716 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-08-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>International Trade Administration</SUBAGY>
        <SUBJECT>Environmental Technologies Trade Advisory Committee, Request for Nominations</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>International Trade Administration, Department of Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Solicitation of Nominations for Membership on the Environmental Technologies Trade Advisory Committee (ETTAC).</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Department of Commerce, International Trade Administration (ITA) is requesting nominations for memberships on the Environmental Technologies Trade Advisory Committee (ETTAC). The ETTAC was established under the Federal Advisory Committee Act, 5 U.S.C. App., and pursuant to Section 2313(c) of the Export Enhancement Act of 1988, as amended, 15 U.S.C. 4728(c). ETTAC was first chartered on May 31, 1994. ETTAC advises the Environmental Trade Working Group (ETWG) of the Trade Promotion Coordinating Committee (TPCC), through the Secretary of Commerce in his capacity as Chairman of the TPCC. ETTAC advises on the development and administration of programs to expand U.S. exports of environmental technologies, goods, and services and products that comply with United States environmental, safety, and related requirements. The Department of Commerce anticipates rechartering ETTAC for a new two-year term in October 2012, and is seeking nominations for membership on the ETTAC for the new charter term.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>All applications for immediate consideration for appointment must be received on or before midnight EDT on September 21, 2012. After that date, ITA will continue to accept applications under this notice for a period of up to two years from the deadline to fill any vacancies that may arise.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Please send nominations by post, email, or fax to the attention of Todd DeLelle, Office of Energy &amp; Environmental Industries, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Ave. NW., Room 4053, Washington, DC 20230; phone 202-482-4877; email<E T="03">todd.delelle@trade.gov;</E>fax 202-482-5665.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Todd DeLelle, Office of Energy &amp; Environmental Industries, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Ave. NW., Room 4053, Washington, DC 20230; phone 202-482-4877; email<E T="03">todd.delelle@trade.gov;</E>fax 202-482-5665.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>The Secretary of Commerce invites nominations to ETTAC for appointments for a two-year term beginning in the fall of 2012. The ETTAC was most recently rechartered on October 25, 2010, and the ETTAC's new charter term is anticipated to begin in fall 2012. Members will be selected in accordance with applicable Department of Commerce Guidelines based upon their ability to advise the Secretary of Commerce on the development and administration of programs to expand U.S. exports of environmental technologies, goods, and services and products that comply with United States environmental, safety, and related requirements, as articulated in ETTAC's Charter, which is available on the Internet at<E T="03">http://www.environment.ita.doc.gov</E>under the tab: Advisory Committee. The ETTAC shall advise on matters including: trade policy development and negotiations relating to U.S. environmental technologies exports; the effect of U.S. Government policies, regulations and programs, and foreign government policies' and practices on the export of U.S. environmental products, technologies, and services; the competitiveness of U.S. industry and its ability to compete for environmental technologies, products and services opportunities in international markets; the identification of priority environmental technologies, products and service markets with high immediate returns for U.S. exports; strategies to increase private sector awareness and effective use of U.S. Government export promotion programs; the development of complementary industry and trade association export promotion programs; and the development of U.S. Government programs to encourage producers of environmental<PRTPAGE P="50988"/>technologies, products and services to enter new foreign markets.</P>
        <P>The Secretary of Commerce will appoint up to 35 members to the ETTAC. The members shall be selected in a manner that ensures that the ETTAC is balanced in terms of product and service lines and reflects the diversity of this sector, including in terms of geographic location and company size. Members of the ETTAC shall be drawn from U.S. environmental technologies manufacturing and services companies, U.S. trade associations, and U.S. private sector organizations involved in the promotion of environmental technologies, products, and services. The ETTAC shall include at least one individual representing each of the following:</P>
        <P>1. Environmental businesses, including small businesses;</P>
        <P>2. Trade associations in the environmental sector;</P>
        <P>3. Private sector organizations involved in the promotion of environmental exports, including products that comply with U.S. environmental, safety, and related requirements;</P>
        <P>4. States (as defined in 15 U.S.C. 4721(j)(5)) and associations representing the States; and</P>
        <P>5. Other appropriate interested members of the public, including labor representatives.</P>
        <P>Candidates should be senior executive-level representatives from U.S. environmental technology companies, trade associations, and non-profit organizations. Applicants must have experience in exporting environmental technologies products and services; ITA particularly seeks applicants with experience in one or more of the following sectors:</P>
        <P>(1) Air pollution control and monitoring technologies;</P>
        <P>(2) Analytic devices and services;</P>
        <P>(3) Environmental engineering and consulting services;</P>
        <P>(4) Financial services relevant to the environmental sector;</P>
        <P>(5) Process and pollution prevention technologies;</P>
        <P>(6) Solid and hazardous waste management technologies; and</P>
        <P>(7) Water and wastewater treatment technologies.</P>
        <P>Members serve in a representative capacity, expressing the views and interests of a U.S. company or organization as well as its particular sector; they are, therefore, not Special Government Employees. For purposes of ETTAC eligibility, a U.S. company is defined as a firm incorporated in the United States (or an unincorporated firm with its principal place of business in the United States) that is at least 51 percent owned and controlled by U.S. persons. For purposes of ETTAC eligibility, a U.S. organization is defined as an organization established in the United States that is controlled by U.S. persons, as determined based on its board of directors (or comparable governing body), membership, and funding sources, as applicable.</P>
        <P>All members must be U.S. citizens. Federally registered lobbyists are not eligible for appointment, nor are individuals registered as a foreign agent under the Foreign Agents Registration Act.</P>
        <P>ETTAC members are not be compensated for their services or reimbursed for their travel expenses. The ETTAC shall, to the extent practicable, meet approximately three times a year. Most ETTAC meetings are held in Washington, DC.</P>
        <P>All appointments are made without regard to political affiliation. Members shall serve at the pleasure of the Secretary for a two year term. Self-nominations will be accepted. If you are interested in being nominated to become a member of ETTAC, please provide the following information (2 pages maximum):</P>
        <P>(1) Name;</P>
        <P>(2) Title;</P>
        <P>(3) Work phone, fax, and email address;</P>
        <P>(4) A sponsor letter from the applicant on his or her entity's letterhead or, if the applicant is to represent an entity other than his or her employer, a letter from the entity to be represented, containing a brief statement of why the applicant should be considered for membership on the ETTAC. This letter should include the name and address of entity to be represented by the applicant, including Web site address, and address the applicant's experience in exporting environmental technologies products and services;</P>
        <P>(5) Short biography of nominee, including information demonstrating knowledge and experience relevant to the work of the ETTAC;</P>
        <P>(6) Brief description of the entity to be represented, including, as applicable, its business activities, company size (number of employees and annual sales), and export markets served; and</P>
        <P>(7) An affirmative statement that:</P>
        <P>(a) The applicant is a U.S. citizen;</P>
        <P>(b) The applicant is not a federally-registered lobbyist, and that the applicant understands that if appointed, the applicant will not be allowed to continue to serve as an ETTAC member if the applicant becomes a federally-registered lobbyist;</P>
        <P>(c) The applicant is not required to register as a foreign agent under the Foreign Agents Registration Act of 1938, as amended;</P>
        <P>(d) The applicant meets all ETTAC eligibility requirements, including that the applicant represents a U.S. company or U.S. organization.</P>
        <P>Please do not send company or trade association brochures or any other information.</P>
        <P>Nominees selected to serve on the ETTAC will be notified.</P>
        <SIG>
          <NAME>Edward A. O'Malley,</NAME>
          <TITLE>Director, Office of Energy and Environmental Industries.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20773 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-DR-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <RIN>RIN 0648-XC177</RIN>
        <SUBJECT>South Atlantic Fishery Management Council; Public Meetings</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of public meetings of the South Atlantic Fishery Management Council.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The South Atlantic Fishery Management Council will hold meetings of its: Ecosystem-Based Management Committee; Shrimp Committee; Southeast Data, Assessment and Review (SEDAR) Committee; Snapper Grouper Committee; Ad Hoc Data Collection Committee; King and Spanish Mackerel Committee; Advisory Panel Selection Committee (closed session); Golden Crab Committee; Executive Finance Committee; and a meeting of the Full Council. The Council will take action as necessary. The Council will also hold an informal public question and answer session regarding agenda items, and a formal public comment session. See<E T="02">SUPPLEMENTARY INFORMATION</E>for additional details.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>

          <P>The Council meeting will be held September 10-14, 2012. See<E T="02">SUPPLEMENTARY INFORMATION</E>for specific dates and times.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>The meetings will be held at the Charleston Marriott Hotel, 170 Lockwood Boulevard, Charleston, SC 29403; telephone: (1-800) 968-3569 or (843) 723-3000; fax: (843) 723-0276.</P>
          <P>
            <E T="03">Council address:</E>South Atlantic Fishery Management Council, 4055 Faber Place Drive, Suite 201, North Charleston, SC 29405.</P>
        </ADD>
        <FURINF>
          <PRTPAGE P="50989"/>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Kim Iverson, Public Information Officer; telephone: (843) 571-4366 or toll free at (866) SAFMC-10; fax: (843) 769-4520; email:<E T="03">kim.iverson@safmc.net.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>

        <P>Copies of documents are available from Kim Iverson, Public Information Officer (see<E T="02">FOR FURTHER INFORMATION CONTACT</E>).</P>
        <P>Meeting Dates:</P>
        <P>1.<E T="03">Ecosystem-Based Management Committee Meeting: September 10, 2012, 1:30 p.m. until 3 p.m.</E>
        </P>
        <P>The Ecosystem-Based Management Committee will review the status for Comprehensive Ecosystem-Based Amendment 3 (CE-BA 3), review the list of items and develop recommendations for CE-BA 4, and will receive an update on ecosystem activities.</P>
        <P>2.<E T="03">Shrimp Committee Meeting: September 10, 2012, 3 p.m. until 4 p.m.</E>
        </P>
        <P>The Shrimp Committee will receive: an overview of public hearing comments for Shrimp Amendment 9, which would expedite the closure process during severe cold events in order to protect overwintering shrimp populations and would revise the Minimum Stock Size Threshold (MSST) proxy for pink shrimp; and a report from the Scientific and Statistical Committee (SSC). The Committee will develop recommendations for the amendment and is scheduled to recommend approval of Amendment 9 for formal review.</P>
        <P>3.<E T="03">SEDAR Committee Meeting: September 10, 2012, 4 p.m. until 5:30 p.m. (Note: A portion of the meeting will be CLOSED.)</E>
        </P>
        <P>The SEDAR Committee will receive an activities update as well as a presentation on the SSC Only Reliable Catch Stocks (ORCS) Workshop. The Committee will provide guidance to the SEDAR Steering Committee representatives and will receive an overview of SEDAR 32, pertaining to gray triggerfish and blueline tilefish. The Committee is scheduled to approve the SEDAR schedule and make appointments to SEDAR 32 (closed session).</P>
        <P>4.<E T="03">Snapper Grouper Committee Meeting: September 11, 2012, 8:30 a.m. until 5 p.m.</E>
        </P>
        <P>The Snapper Grouper Committee will receive updates on Oculina research activities and the status of catches versus quotas for commercial and recreational species under Annual Catch Limits (ACLs). The Committee will also receive a presentation on “Catch and Discard Characterization for Red Snapper, Warsaw Grouper and Speckled Hind”. The Committee will review the status of amendments currently under formal review, including: The status of the red snapper emergency action request; Regulatory Amendment 12 pertaining to the golden tilefish ACL adjustment; the resubmittal of Action 4 in Amendment 18A addressing the transferability of black sea bass endorsements; Amendment 20A regarding the wreckfish Individual Transferable Quota (ITQ); and Amendment 18B that includes measures to limit participation in the commercial golden tilefish fishery. The Committee will also review an emergency rule request to delay the start of the golden tilefish fishing season. The Committee will discuss the status of the proposed Marine Protected Areas (MPAs) and Habitat Areas of Particular Concern (HAPCs) for speckled hind and warsaw grouper, including an overview of input from the public workshops and an update on SSC discussions. Additionally, the Committee will receive an overview for: Regulatory Amendment 13, regarding adjustments of snapper grouper ACLs based on Marine Recreational Fishing Statistical Survey/Marine Recreational Information Program (MRFSS/MRIP) calibration; Amendment 22, pertaining to the development of the red snapper tag program; and Regulatory Amendment 14, regarding an overview of management history and current regulations for mutton snapper, greater amberjack, gray triggerfish, black sea bass and vermilion snapper. The Committee will discuss the blue runner issue as well as the Council's vision for the future of the snapper grouper fishery. The Committee will provide guidance and recommendations to staff on timing, actions and alternatives.</P>
        <P>5.<E T="03">Ad Hoc Data Collection Committee Meeting: September 12, 2012, 8:30 a.m. until 12 noon.</E>
        </P>
        <P>The Ad Hoc Data Collection Committee will receive presentations on results of bycatch monitoring and the NMFS quota monitoring system. The Committee will: Review public hearing comments for the Joint Gulf and South Atlantic Council Generic Dealer Permit; finalize Committee recommendations; and recommend approval of the permit for formal review. The Committee will: Review public hearing comments for commercial vessel, for-hire vessel and discard reporting actions in CE-BA 3; finalize Committee recommendations for CE-BA 3; and recommend approval of these items for formal review.</P>
        <P>6.<E T="03">King and Spanish Mackerel Committee Meeting: September 12, 2012, 1:30 p.m. until 5 p.m.</E>
        </P>
        <P>The King and Spanish Mackerel Committee will receive updates on: the status of commercial and recreational catches versus quotas; the Joint Gulf and South Atlantic Mackerel Amendment 19, pertaining to permits and tournament sale requirements; and Amendment 20, regarding boundaries and transit provisions. The Committee will modify Amendments 19 and 20 as appropriate and provide guidance to staff. The Committee will review public input on the South Atlantic Mackerel Framework Amendment and will provide guidance to staff.</P>
        <NOTE>
          <HD SOURCE="HED">Note:</HD>
          <P>There will be an informal public question and answer session with the NMFS Regional Administrator and the Council Chairman on September 12, 2012, beginning at 5:30 p.m.</P>
        </NOTE>
        <P>7.<E T="03">Advisory Panel Selection Committee Meeting: September 13, 2012, 8:30 a.m. until 9:30 a.m. (closed session)</E>
        </P>
        <P>The Advisory Panel Selection Committee will review advisory panel applications and develop recommendations for appointments.</P>
        <P>8.<E T="03">Golden Crab Committee Meeting: September 13, 2012, 9:30 a.m. until 11 a.m.</E>
        </P>
        <P>The Golden Crab Committee will receive a briefing on the golden crab permit holders meeting and an overview of Amendment 6, pertaining to establishing a catch share program for the commercial golden crab fishery. The Committee will modify the amendment as appropriate and will recommend the approval of Amendment 6 for formal review.</P>
        <P>9.<E T="03">Executive Finance Committee Meeting: September 13, 2012, 11 a.m. until 12 noon.</E>
        </P>
        <P>The Executive Finance Committee will: review the status of Council Year (CY) 2012 budget expenditures; discuss joint South Florida management issues; and discuss other issues as appropriate.</P>
        <P>Council Session: September 13, 2012, 1:30 p.m. until 5:30 p.m. and September 14, 2012, 8:30 a.m. until 12:30 p.m.</P>
        <P>Council Session: September 13, 2012, 1:30 p.m. until 5:30 p.m.</P>
        <P>
          <E T="03">1:30 p.m. until 2 p.m.,</E>the Council will call the meeting to order, adopt the agenda, approve the June 2012 meeting minutes, elect the Council chairman and vice-chairman, and present the Law Enforcement Officer of the Year award.</P>
        <NOTE>
          <HD SOURCE="HED">Note:</HD>
          <P>A formal public comment session will be held on September 13, 2012, beginning at 2 p.m., on: Shrimp Amendment 9; the Joint Gulf and South Atlantic Dealer Permit; CE-BA 3; the emergency rule request to delay the start of the golden tilefish season; and Golden Crab Amendment 6; followed by comment on any other item on the agenda.</P>
        </NOTE>
        <P>
          <E T="03">3:30 p.m. until 4 p.m.,</E>the Council will receive a presentation on the<PRTPAGE P="50990"/>changes in the Exclusive Economic Zone (EEZ) boundary between the United States and the Bahamas.</P>
        <P>
          <E T="03">4 p.m. until 4:30 p.m.,</E>the Council will receive a report from the Snapper Grouper Committee, address the Committee recommendation relative to the request for an emergency rule to delay the golden tilefish fishing season, consider other recommendations and take action as appropriate.</P>
        <P>
          <E T="03">4:30 p.m. until 5:00 p.m.,</E>the Council will receive a report from the Ad Hoc Data Collection Committee, approve the Joint Gulf and South Atlantic Dealer Permit and CE-BA 3 for formal Secretarial review, consider recommendations and take action as appropriate.</P>
        <P>
          <E T="03">5 p.m. until 5:15 p.m.,</E>the Council will receive a report from the King and Spanish Mackerel Committee, consider recommendations and take action as appropriate.</P>
        <P>
          <E T="03">5:15 p.m. until 5:30 p.m.,</E>the Council will receive a report from the Ecosystem-Based Management Committee, consider recommendations and take action as appropriate.</P>
        <P>Council Session: September 14, 2012, 8:30 a.m. until 12:30 p.m.</P>
        <P>
          <E T="03">8:30 a.m. until 8:45 a.m.,</E>the Council will receive a legal briefing on litigation. (closed session)</P>
        <P>
          <E T="03">8:45 a.m. until 9 a.m.,</E>the Council will receive a report from the Shrimp Committee, approve Amendment 9 for formal Secretarial review, consider other recommendations and take action as appropriate.</P>
        <P>
          <E T="03">9 a.m. until 9:15 a.m.,</E>the Council will receive a report from the SEDAR Committee, consider recommendations and take action as appropriate.</P>
        <P>
          <E T="03">9:15 a.m. until 9:30 a.m.,</E>the Council will receive a report from the Golden Crab Committee, approve Amendment 6 for formal Secretarial review, consider other recommendations and take action as appropriate.</P>
        <P>
          <E T="03">9:30 a.m. until 9:45 a.m.,</E>the Council will receive a report from the Advisory Panel Selection Committee, consider Committee recommendations for appointments and take action as appropriate.</P>
        <P>
          <E T="03">9:45 a.m. until 10 a.m.,</E>the Council will receive a report from the Executive Finance Committee, consider recommendations and take action as appropriate.</P>
        <P>
          <E T="03">10 a.m. until 12:30 p.m.,</E>the Council will receive presentations and status reports from the NOAA Southeast Regional Office (SERO) and the NMFS SEFSC, review and develop recommendations on Experimental Fishing Permits as necessary, review agency and liaison reports, and discuss other business, including upcoming meetings.</P>

        <P>Documents regarding these issues are available from the Council office (see<E T="02">ADDRESSES</E>).</P>
        <P>Although non-emergency issues not contained in this agenda may come before this Council for discussion, those issues may not be the subjects of formal final Council action during these meetings. Council action will be restricted to those issues specifically listed in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Act, provided the public has been notified of the Council's intent to take final action to address the emergency.</P>
        <P>Except for advertised (scheduled) public hearings and public comment, the times and sequence specified on this agenda is subject to change.</P>
        <HD SOURCE="HD1">Special Accommodations</HD>

        <P>These meetings are physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to the Council office (see<E T="02">ADDRESSES</E>) by September 4, 2012.</P>
        <SIG>
          <DATED>Dated: August 20, 2012.</DATED>
          <NAME>William D. Chappell,</NAME>
          <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20792 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
        <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
        <RIN>RIN 0648-XC153</RIN>
        <SUBJECT>Takes of Marine Mammals Incidental to Specified Activities; Taking Marine Mammals Incidental to Rocky Intertidal Monitoring Surveys on the South Farallon Islands, California</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice; proposed incidental harassment authorization; request for comments.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>NMFS has received an application from the National Ocean Service's Office of National Marine Sanctuaries Gulf of the Farallones National Marine Sanctuary (GFNMS) for an Incidental Harassment Authorization (IHA) to take marine mammals, by harassment, incidental to rocky intertidal monitoring work and searching for black abalone, components of the Sanctuary Ecosystem Assessment Surveys. Pursuant to the Marine Mammal Protection Act (MMPA), NMFS is requesting comments on its proposal to issue an IHA to GFNMS to incidentally take, by Level B harassment only, marine mammals during the specified activity.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments and information must be received no later than September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Comments on the application should be addressed to Michael Payne, Chief, Permits and Conservation Division, Office of Protected Resources, National Marine Fisheries Service, 1315 East-West Highway, Silver Spring, MD 20910. The mailbox address for providing email comments is<E T="03">ITP.Nachman@noaa.gov.</E>NMFS is not responsible for email comments sent to addresses other than the one provided here. Comments sent via email, including all attachments, must not exceed a 25-megabyte file size.</P>
          <P>
            <E T="03">Instructions:</E>All comments received are a part of the public record and will generally be posted to<E T="03">http://www.nmfs.noaa.gov/pr/permits/incidental.htm</E>without change. All Personal Identifying Information (e.g., name, address) voluntarily submitted by the commenter may be publicly accessible. Do not submit Confidential Business Information or otherwise sensitive or protected information.</P>

          <P>An electronic copy of the application containing a list of the references used in this document may be obtained by writing to the address specified above, telephoning the contact listed below (see<E T="02">FOR FURTHER INFORMATION CONTACT</E>), or visiting the Internet at:<E T="03">http://www.nmfs.noaa.gov/pr/permits/incidental.htm.</E>NMFS is also preparing an Environmental Assessment (EA) in accordance with the National Environmental Policy Act (NEPA) and will consider comments submitted in response to this notice as part of that process. The EA will be posted at the foregoing Internet site once it is finalized. Documents cited in this notice may also be viewed, by appointment, during regular business hours, at the aforementioned address.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Candace Nachman, Office of Protected Resources, NMFS, (301) 427-8401.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Background</HD>
        <P>Sections 101(a)(5)(A) and (D) of the MMPA (16 U.S.C. 1361<E T="03">et seq.</E>) direct the Secretary of Commerce to allow, upon request, the incidental, but not intentional, taking of small numbers of marine mammals by U.S. citizens who<PRTPAGE P="50991"/>engage in a specified activity (other than commercial fishing) within a specified geographical region if certain findings are made and either regulations are issued or, if the taking is limited to harassment, a notice of a proposed authorization is provided to the public for review.</P>
        <P>Authorization for incidental takings shall be granted if NMFS finds that the taking will have a negligible impact on the species or stock(s), will not have an unmitigable adverse impact on the availability of the species or stock(s) for subsistence uses (where relevant), and if the permissible methods of taking, other means of effecting the least practicable impact on the species or stock and its habitat, and requirements pertaining to the mitigation, monitoring and reporting of such takings are set forth. NMFS has defined “negligible impact” in 50 CFR 216.103 as “* * * an impact resulting from the specified activity that cannot be reasonably expected to, and is not reasonably likely to, adversely affect the species or stock through effects on annual rates of recruitment or survival.”</P>
        <P>Section 101(a)(5)(D) of the MMPA established an expedited process by which citizens of the United States can apply for an authorization to incidentally take small numbers of marine mammals by harassment. Section 101(a)(5)(D) establishes a 45-day time limit for NMFS review of an application followed by a 30-day public notice and comment period on any proposed authorizations for the incidental harassment of marine mammals. Within 45 days of the close of the comment period, NMFS must either issue or deny the authorization. Except with respect to certain activities not pertinent here, the MMPA defines “harassment” as: “any act of pursuit, torment, or annoyance which (i) has the potential to injure a marine mammal or marine mammal stock in the wild [Level A harassment]; or (ii) has the potential to disturb a marine mammal or marine mammal stock in the wild by causing disruption of behavioral patterns, including, but not limited to, migration, breathing, nursing, breeding, feeding, or sheltering [Level B harassment].”</P>
        <HD SOURCE="HD1">Summary of Request</HD>
        <P>On May 13, 2012, NMFS received an application from GFNMS for the taking of marine mammals incidental to rocky intertidal monitoring work and searching for black abalone. NMFS determined that the application was adequate and complete on July 20, 2012.</P>
        <P>GFNMS proposes to continue rocky intertidal monitoring work and the search for black abalone in areas previously unexplored for black abalone for periods of 4-8 days in November 2012 and February 2013. All work will be done only during daylight minus low tides. This is a long-term study that began in 1992 and at present is anticipated to continue beyond November 2013. This IHA, if issued, though, would only be effective for a 12-month period from the date of its issuance. In future years (depending on funding), survey activities may occur in February, August, and November. For purposes of the present application, four sites will be sampled during both November and February, with two additional sites to be sampled in February only. The following specific aspects of the proposed activities are likely to result in the take of marine mammals: presence of survey personnel near pinniped haulout sites and approach of survey personnel towards hauled out pinnipeds. Take, by Level B harassment only, of individuals of five species of marine mammals is anticipated to result from the specified activity.</P>
        <HD SOURCE="HD1">Description of the Specified Activity and Specified Geographic Region</HD>

        <P>Since the listing of black abalone as “endangered” under the U.S. Endangered Species Act (ESA; 16 U.S.C. 1531<E T="03">et seq.</E>), NMFS has requested that GFNMS explore as much of the shoreline as possible, as well as document and map the location of quality habitat for black abalone and the location of known animals. This listing prompted the need to expand the search for black abalone into other areas on the South Farallon Islands (beyond those that have been studied since 1992) to gain a better understanding of the abundance and health of the black abalone population in this remote and isolated location. The monitoring is planned to remain ongoing, and efforts to assess the status and health of the black abalone population on the South Farallon Islands may take several years, and perhaps decades, because black abalone tend to be very cryptic and difficult to find, especially when they are sparse and infrequent in occurrence. In order for the assessment of black abalone to be more comprehensive, GFNMS needs to expand shore searches in areas beyond the proximity of their quantitative quadrat sampling areas and also into new areas on Southeast Farallon and Maintop (West End) Islands.</P>
        <P>Rocky intertidal monitoring on the Farallon Islands is now a component of the GFNMS Sanctuary Ecosystem Assessment Surveys (SEAS) long-term monitoring program and is a necessity to the management and protection of the sanctuary. All GFNMS SEAS monitoring projects are designed to provide documentation on the density and biodiversity of sanctuary natural resources for condition analyses, particularly for a baseline in the event of a major natural or human-induced perturbation. This program has and continues to acquire information on seasonal and annual changes of intertidal species abundances in 1-3 visits per year. The monitoring data, decades from now, can also be used to assess trends and changes from global climate change and ocean acidification, based on range extensions, changes in biodiversity, and changes in density of calcium carbonate-containing organisms.</P>

        <P>Routine shore activity will continue to involve the use of only non-destructive sampling methods to monitor rocky intertidal algal and invertebrate species abundances (see Figure 2 in GFNMS' application). At each sampling site, there are three to four permanent 30 × 50 cm (12 × 20 in) quadrat sites that occur in the low, middle, and upper elevation tidal zones (marked by white epoxy pads in the quadrat corners). Three to four random quadrats (unmarked) are also sampled at each site every survey, if time permits. Fifty randomly selected points within each permanent and random quadrat are sampled, using methods described by Foster<E T="03">et al.</E>(1991) and Dethier<E T="03">et al.</E>(1993). All algal and sessile macroinvertebrate species under each sampling point (loci) are recorded. A photograph is also taken of each labeled quadrat. When completed, a shore walk in the immediate proximity is done by the sampling team to search for select large invertebrates. The length of the shoreline searched in the shore walks is typically about 30 m (98 ft), but plans are to expand this search effort over larger areas for abalone and in more areas. The sampling, photographic documentation, and shore walks for the period of this IHA have been scheduled to occur in November 2012 and February 2013. (In future years, surveys conducted under separate IHA(s) may occur 3 times annually: February, August, and November, based on funding.) Each survey will last for approximately 4 to 8 days. All work will be done only during daylight minus, low tides. Each location (as listed in Tables 2 and 3 in GFNMS' application) will be visited/sampled by three to four biologists, for a duration of 3-4 hours, one to two times each minus tide cycle, during November and February.</P>

        <P>Inaccessible shore areas will be surveyed by boat up to once each year, dependent on boat availability and<PRTPAGE P="50992"/>weather conditions. This effort includes the Middle and North Farallon Islands. In this effort, the boat navigates to within 15-100 m (49-328 ft) of the shore, and intertidal species that can be seen through binoculars are recorded (presence/absence). PRBO Conservation Science (PRBO) continues its year-round pinniped and seabird research and monitoring efforts on the South Farallon Islands, which began in 1968, under MMPA scientific research permits and IHAs. GFNMS biologists will gain access to the sites via boats operated by PRBO, with disturbance and incidental take authorized via IHAs issued to PRBO. For this reason, GFNMS has not requested authorization for take from disturbance by boat, as incidental take from that activity is authorized in a separate IHA.</P>
        <HD SOURCE="HD2">Specified Geographic Location and Activity Timeframe</HD>
        <P>The Farallon Islands consists of a chain of seven islands located approximately 48 km (30 mi) west of San Francisco, near the edge of the continental shelf and in the geographic center of the GFNMS (see Figure 1 in GFNMS' application). The land of the islands above the mean high tide mark is designated as the Farallon National Wildlife Refuge (managed by the U.S. Fish and Wildlife Service [USFWS]), while the shore and subtidal below are in GFNMS. The nearshore and offshore waters are foraging areas for pinniped species discussed in this document.</P>
        <P>The two largest islands of the seven islands are the Southeast Farallon and Maintop (aka West End) Islands. These and several smaller rocks are collectively referred to as the South Farallon Islands and are the subject of this IHA request. The two largest islands are separated by only a 9 m (30 ft) wide surge channel. Together, these islands are approximately 49 hectares (120 acres) in size with an intertidal perimeter around both islands of 7.7 km (4.8 mi).</P>
        <P>Current areas that are sampled during November and February are: Blow Hole Peninsula; Mussel Flat; Dead Sea Lion Flat; and Low Arch (see Figure 2 in GFNMS' application). Current areas that are sampled only during February are: Raven's Cliff and Drunk Uncle Islet. Areas to be added for intensive black abalone assessment and habitat mapping sampling during November and February include: East Landing; North Landing; Fisherman's Bay; and Weather Service Peninsula on Southeast Farallon Island. Areas to be added for intensive black abalone assessment and habitat mapping during February only include: Ravens' Cliff; Indian Head; Shell Beach; and Drunk Uncle Islet (see Figure 2 in GFNMS' application). Each sample site will be visited one to two times annually per minus tide cycle for 3-4 hours each visit. Tables 2 and 3 in GFNMS' application outline the schedule of sampling visits for each location.</P>
        <P>Specific dates of sampling in February and November of each year will vary, as in the past, dependent on tide conditions, boat logistics to the island, staff schedules, island housing availability, seabird breeding cycles, and at the discretion of Refuge management. Each visit will last approximately 4-8 days in November 2012 and February 2013.</P>

        <P>The shorelines on these islands, including areas above the mean high tide elevation, have become more heavily used over time as haulout sites for pinnipeds to rest, give birth, and molt. The intertidal zones where GFNMS conducts intertidal monitoring area also areas where pinnipeds can be found hauled out on the shore. Accessing portions of the intertidal habitat may cause incidental Level B (behavioral) harassment of pinnipeds through some unavoidable approaches if pinnipeds are hauled out directly in the study plots or while biologists walk from one location to another. No motorized equipment is involved in conducting these surveys. The species for which Level B harassment is requested are: California sea lions (<E T="03">Zalophus californianus californianus</E>); harbor seals (<E T="03">Phoca vitulina richardii</E>); northern elephant seals (<E T="03">Mirounga angustirostris</E>); Stellar sea lions (<E T="03">Eumetopias jubatus</E>); and northern fur seals (<E T="03">Callorhinus ursinus</E>).</P>
        <HD SOURCE="HD1">Description of Marine Mammals in the Area of the Specified Activity</HD>
        <P>Many of the shores of the two South Farallon Islands provide resting, molting, and breeding habitat for pinniped species: northern elephant seals; harbor seals; California sea lions; northern fur seals; and Steller sea lions. California sea lion is the species anticipated to be encountered most frequently during the specified activity. The other four species are only anticipated to be encountered at some of the sites. Tables 2 and 3 in GFNMS' application outline the average and maximum expected occurrences of each species at each sampling location in November and February, respectively. Numbers are based on weekly surveys conducted by PRBO. The data in these tables are from counts conducted in February and November 2010 and 2011. Figures 3, 4, and 5 in GFNMS' application depict the overlap between pinniped haulouts and abalone sampling sites. Of the five species noted here, only the eastern stock of Stellar sea lion (which is the stock found in the proposed activity area) is listed as threatened under the ESA and as depleted under the MMPA.</P>
        <P>We refer the public to Carretta<E T="03">et al.,</E>(2011) for general information on these species which are presented below this section. The publication is available on the Internet at:<E T="03">http://www.nmfs.noaa.gov/pr/pdfs/sars/po2011.pdf.</E>Additional information on the status, distribution, seasonal distribution, and life history can also be found in GFNMS' application.</P>
        <HD SOURCE="HD2">Northern Elephant Seal</HD>

        <P>Northern elephant seals are not listed as threatened or endangered under the ESA, nor are they categorized as depleted under the MMPA. The estimated population of the California breeding stock is approximately 124,000 animals with a minimum estimate of 74,913 (Carretta<E T="03">et. al.,</E>2011).</P>
        <P>Northern elephant seals range in the eastern and central North Pacific Ocean, from as far north as Alaska and as far south as Mexico. Northern elephant seals spend much of the year, generally about nine months, in the ocean. They are usually underwater, diving to depths of about 330-800 m (1,000-2,500 ft) for 20- to 30-minute intervals with only short breaks at the surface. They are rarely seen out at sea for this reason. While on land, they prefer sandy beaches.</P>

        <P>Northern elephant seals breed and give birth in California (U.S.) and Baja California (Mexico), primarily on offshore islands (Stewart<E T="03">et al.,</E>1994), from December to March (Stewart and Huber, 1993). Males feed near the eastern Aleutian Islands and in the Gulf of Alaska, and females feed further south, south of 45° N (Stewart and Huber, 1993; Le Boeuf<E T="03">et al.,</E>1993). Adults return to land between March and August to molt, with males returning later than females. Adults return to their feeding areas again between their spring/summer molting and their winter breeding seasons.</P>
        <P>The population on the Farallon Islands has declined by 3.4 percent per year since 1983, and in recent years numbers have fluctuated between 100 and 200 pups (W. Sydeman, D. Lee, unpubl. data). At Southeast Farallon, the population consists of approximately 500 animals (GFNMS, 2012).</P>
        <HD SOURCE="HD2">California Sea Lion</HD>

        <P>California sea lions are not listed as threatened or endangered under the<PRTPAGE P="50993"/>ESA, nor are they categorized as depleted under the MMPA. The California sea lion is now a full species, separated from the Galapagos sea lion (<E T="03">Z. wollebaeki</E>) and the extinct Japanese sea lion (<E T="03">Z. japonicus</E>) (Brunner, 2003; Wolf<E T="03">et al.,</E>2007; Schramm<E T="03">et al.,</E>2009). The estimated population of the U.S. stock of California sea lion is approximately 296,750 animals, and the current maximum population growth rate is 12 percent (Carretta<E T="03">et al.,</E>2011). On the Farallon Islands, California sea lions haul out in many intertidal areas year-round, fluctuating from several hundred to several thousand animals.</P>

        <P>California sea lion breeding areas are on islands located in southern California, in western Baja California, Mexico, and the Gulf of California. During the breeding season, most California sea lions inhabit southern California and Mexico. Rookery sites in southern California are limited to the San Miguel Islands and the southerly Channel Islands of San Nicolas, Santa Barbara, and San Clemente (Carretta<E T="03">et. al.,</E>2011). Males establish breeding territories during May through July on both land and in the water. Females come ashore in mid-May and June where they give birth to a single pup approximately 4-5 days after arrival and will nurse pups for about a week before going on their first feeding trip. Females will alternate feeding trips with nursing bouts until the pup is weaned between 4 and 10 months of age (NMML, 2010). In central California, a small number of pups are born on Ano Nuevo Island, Southeast Farallon Island, and occasionally at a few other locations; otherwise, the central California population is composed of non-breeders. Breeding animals on the Farallon Islands are concentrated in areas where researchers generally do not visit (PRBO, unpub. data).</P>
        <HD SOURCE="HD2">Pacific Harbor Seal</HD>

        <P>Pacific harbor seals are not listed as threatened or endangered under the ESA, nor are they categorized as depleted under the MMPA. The estimated population of the California stock of Pacific harbor seals is approximately 30,196 animals (Carretta<E T="03">et. al.,</E>2011).</P>

        <P>The animals inhabit near-shore coastal and estuarine areas from Baja California, Mexico, to the Pribilof Islands in Alaska. Pacific harbor seals are divided into two subspecies:<E T="03">P. v. stejnegeri</E>in the western North Pacific, near Japan, and<E T="03">P. v. richardii</E>in the northeast Pacific Ocean. The latter subspecies, recognized as three separate stocks, inhabits the west coast of the continental U.S., including: the outer coastal waters of Oregon and Washington states; Washington state inland waters; and Alaska coastal and inland waters.</P>

        <P>In California, over 500 harbor seal haulout sites are widely distributed along the mainland and offshore islands, and include rocky shores, beaches and intertidal sandbars (Lowry<E T="03">et al.,</E>2005). On the Farallon Islands, approximately 40 to 120 Pacific harbor seals haul out in the intertidal areas (PRBO, unpublished data). Harbor seals mate at sea, and females give birth during the spring and summer, although, the pupping season varies with latitude. Pups are nursed for an average of 24 days and are ready to swim minutes after being born. Harbor seal pupping takes place at many locations, and rookery size varies from a few pups to many hundreds of pups. Pupping generally occurs between March and June, and molting occurs between May and July (NCCOS, 2007).</P>
        <HD SOURCE="HD2">Steller Sea Lion</HD>
        <P>Steller sea lions consist of two distinct population segments: the western and eastern distinct population segments divided at 144° West longitude (Cape Suckling, Alaska). The eastern distinct population segment of the Steller sea lion is threatened, and the western distinct population segment is endangered under the ESA. Both segments are depleted under the MMPA. The eastern distinct population segment is the one anticipated to occur in the proposed project area. The eastern segment includes sea lions living in southeast Alaska, British Columbia, California, and Oregon.</P>

        <P>Steller sea lions range along the North Pacific Rim from northern Japan to California (Loughlin<E T="03">et al.,</E>1984), with centers of abundance and distribution in the Gulf of Alaska and Aleutian Islands, respectively. The species is not known to migrate, but individuals disperse widely outside of the breeding season (late May through early July), thus potentially intermixing with animals from other areas.</P>
        <P>In 2011, the estimated population of the eastern distinct population segment ranged from a minimum of 52,847 up to 72,223 animals, and the maximum population growth rate is 12.1 percent (Angliss and Allen, 2011).</P>
        <P>The eastern distinct population segment of Steller sea lions breeds on rookeries located in southeast Alaska, British Columbia, Oregon, and California. There are no rookeries located in Washington State. Steller sea lions give birth in May through July, and breeding commences a couple of weeks after birth. Pups are weaned during the winter and spring of the following year.</P>

        <P>Despite the wide-ranging movements of juveniles and adult males in particular, exchange between rookeries by breeding adult females and males (other than between adjoining rookeries) appears low, although males have a higher tendency to disperse than females (NMFS, 1995; Trujillo<E T="03">et al.,</E>2004; Hoffman<E T="03">et al.,</E>2006). A northward shift in the overall breeding distribution has occurred, with a contraction of the range in southern California and new rookeries established in southeastern Alaska (Pitcher<E T="03">et al.,</E>2007).</P>
        <P>The current population of eastern Steller sea lions in the proposed research area is estimated to number between 50 and 750 animals. Overall, counts of non-pups at trend sites in California and Oregon have been relatively stable or increasing slowly since the 1980s (Angliss and Allen, 2011). PRBO estimates that between 50 and 150 Steller sea lions live on the Farallon Islands. On Southeast Farallon Island, the abundance of females declined an average of 3.6 percent per year from 1974 to 1997 (Sydeman and Allen, 1999). Pup counts on the Farallon Islands have generally varied from five to 15 (Hastings and Sydeman, 2002; PRBO, unpub. data).</P>
        <HD SOURCE="HD2">Northern Fur Seal</HD>

        <P>Northern fur seals are not listed as threatened or endangered under the ESA, nor are they categorized as depleted under the MMPA. Two stocks of northern fur seals are recognized in U.S. Pacific waters: Eastern Pacific stock and San Miguel Island stock. Adult females and juveniles migrate to the central California area (and Oregon and Washington) from rookeries on San Miguel Island in the Southern California Bight (Carretta<E T="03">et al.,</E>2006) and from the Pribilof Islands in the Bering Sea (NCCOS, 2007).</P>

        <P>The most recent population estimate of the San Miguel Island stock is 9,968 animals (Carretta<E T="03">et al.,</E>2011) and is 653,171 animals for the Eastern Pacific stock (Allen and Angliss, 2011). The northern fur seal population on the Farallon Islands has fluctuated greatly over the past two centuries. Current PRBO weekly counts on Maintop Island show a peak of 296 adult and juvenile northern fur seals and 180 pups in 2011 (PRBO, unpub. data). Although it is difficult to differentiate, animals on the Farallon Islands during the time of the proposed rocky intertidal monitoring are likely from the San Miguel Island stock.<PRTPAGE P="50994"/>
        </P>
        <HD SOURCE="HD2">Other Marine Mammals in the Proposed Action Area</HD>
        <P>California (southern) sea otters (<E T="03">Enhydra lutris nereis</E>), listed as threatened under the ESA and categorized as depleted under the MMPA, usually range in coastal waters within 2 km (1.2 mi) of shore. PRBO has not encountered California sea otters on Southeast Farallon Island during the course of seabird or pinniped research activities over the past five years. This species is managed by the USFWS and is not considered further in this notice.</P>
        <HD SOURCE="HD1">Potential Effects of the Specified Activity on Marine Mammals</HD>
        <P>The appearance of researchers may have the potential to cause Level B harassment of any pinnipeds hauled out on Southeast Farallon and Maintop (West End) Islands. Although marine mammals are never deliberately approached by abalone survey personnel, approach may be unavoidable if pinnipeds are hauled out in the immediate vicinity of the permanent abalone study plots. Disturbance may result in reactions ranging from an animal simply becoming alert to the presence of researchers (e.g., turning the head, assuming a more upright posture) to flushing from the haul-out site into the water. NMFS does not consider the lesser reactions to constitute behavioral harassment, or Level B harassment takes, but rather assumes that pinnipeds that move greater than 1 m (3.3 ft) or change the speed or direction of their movement in response to the presence of researchers are behaviorally harassed, and thus subject to Level B taking. Animals that respond to the presence of researchers by becoming alert, but do not move or change the nature of locomotion as described, are not considered to have been subject to behavioral harassment.</P>

        <P>Numerous studies have shown that human activity can flush harbor seals off haulout sites (Allen<E T="03">et al.,</E>1984; Calambokidis<E T="03">et al.,</E>1991; Suryan and Harvey, 1999; Mortenson<E T="03">et al.,</E>2000). The Hawaiian monk seal (<E T="03">Monachus schauinslandi</E>) has been shown to avoid beaches that have been disturbed often by humans (Kenyon, 1972). And in one case, human disturbance appeared to cause Steller sea lions to desert a breeding area at Northeast Point on St. Paul Island, Alaska (Kenyon, 1962).</P>
        <P>Typically, even those reactions constituting Level B harassment would result at most in temporary, short-term disturbance. In any given study season (i.e., November 2012 and February 2013), the researchers will visit the islands for a total of 4-8 days each of the two months, and each site is not visited during both months. Visits to each site are thus separated by several months. Each site visit typically lasts 3-4 hours. Therefore, disturbance of pinnipeds resulting from the presence of researchers lasts only for short periods of time and is separated by significant amounts of time in which no disturbance occurs. Because such disturbance is sporadic, rather than chronic, and of low intensity, individual marine mammals are unlikely to incur any detrimental impacts to vital rates or ability to forage and, thus, loss of fitness. Correspondingly, even local populations, much less the overall stocks of animals, are extremely unlikely to accrue any significantly detrimental impacts.</P>
        <P>There are three ways in which disturbance, as described previously, could result in more than Level B harassment of marine mammals. All three are most likely to be consequences of stampeding, a potentially dangerous occurrence in which large numbers of animals succumb to mass panic and rush away from a stimulus, an occurrence that is not expected on Southeast Farallon and Maintop Islands. The three situations are (1) falling when entering the water at high-relief locations; (2) extended separation of mothers and pups; and (3) crushing of elephant seal pups by large males during a stampede.</P>
        <P>Because hauled-out animals may move towards the water when disturbed, there is the risk of injury if animals stampede towards shorelines with precipitous relief (e.g., cliffs). However, while cliffs do exist on the islands, shoreline habitats near the abalone study sites are of steeply sloping rocks with unimpeded and non-obstructive access to the water. If disturbed, hauled-out animals in these situations may move toward the water without risk of encountering barriers or hazards that would otherwise prevent them from leaving the area. In these circumstances, the risk of injury, serious injury, or death to hauled-out animals is very low. Thus, abalone research activity poses no risk that disturbed animals may fall and be injured or killed as a result of disturbance at high-relief locations.</P>
        <P>The risk of marine mammal injury, serious injury, or mortality associated with abalone research increases somewhat if disturbances occur during breeding season. These situations present increased potential for mothers and dependent pups to become separated and, if separated pairs do not quickly reunite, the risk of mortality to pups (through starvation) may increase. Separately, adult male elephant seals may trample elephant seal pups if disturbed, which could potentially result in the injury, serious injury, or mortality of the pups. The risk of either of these situations is greater in the event of a stampede.</P>
        <P>The proposed site visits in November and February fall outside of the pupping and breeding seasons for California sea lions, harbor seals, northern fur seals, and Steller sea lions. The most sensitive months for northern elephant seals are generally December through March. However, though elephant seal pups are occasionally present when researchers visit abalone survey sites, risk of pup mortalities is very low because elephant seals are far less reactive to researcher presence than the other two species. Further, pups are typically found on sand beaches, while study sites are located in the rocky intertidal zone, meaning that there is typically a buffer between researchers and pups. Finally, the caution used by researchers in approaching sites generally precludes the possibility of behavior, such as stampeding, that could result in extended separation of mothers and dependent pups or trampling of elephant seal pups. No research would occur where separation of mother and her nursing pup or crushing of pups can become a concern.</P>
        <P>In summary, NMFS does not anticipate that the proposed activities would result in the injury, serious injury, or mortality of pinnipeds because (1) the timing of research visits would preclude separation of mothers and pups for four of the pinniped species, as activities occur outside of the pupping/breeding season and (2) elephant seals are generally not susceptible to disturbance as a result of researchers' presence. In addition, researchers will exercise appropriate caution approaching sites, especially when pups are present and will redirect activities when pups are present.</P>
        <HD SOURCE="HD1">Anticipated Effects on Marine Mammal Habitat</HD>

        <P>The only habitat modification associated with the proposed activity is the quadrat locations being marked with marine epoxy. The plot corners are marked with a 3x3 cm (1.2x1.2 in) patch of marine epoxy glued to the benchrock for relocating the quadrat sites. Markers have been in place since 1993, and pinniped populations have increased throughout the islands during this time. Maintenance is sometimes required, which consists of replenishing worn markers with fresh epoxy or replacing markers that have become dislodged. No<PRTPAGE P="50995"/>gas power tools are used, so there is no potential for noise or accidental fuel spills disturbing animals and impacting habitats. Thus, the proposed activity is not expected to have any habitat-related effects, including to marine mammal prey species, that could cause significant or long-term consequences for individual marine mammals or their populations.</P>
        <HD SOURCE="HD1">Proposed Mitigation</HD>
        <P>In order to issue an incidental take authorization (ITA) under Section 101(a)(5)(D) of the MMPA, NMFS must, where applicable, set forth the permissible methods of taking pursuant to such activity, and other means of effecting the least practicable impact on such species or stock and its habitat, paying particular attention to rookeries, mating grounds, and areas of similar significance, and on the availability of such species or stock for taking for certain subsistence uses (where relevant).</P>
        <P>GFNMS proposes to implement several mitigation measures to reduce potential take by Level B (behavioral disturbance) harassment. Measures include: (1) Coordinating sampling efforts with other permitted activities (i.e., PRBO and USFWS); (2) conducting slow movements and staying close to the ground to prevent or minimize stampeding; (3) avoiding loud noises (i.e., using hushed voices); (4) vacating the area as soon as sampling of the site is completed; (5) monitoring the offshore area for predators (such as killer whales and white sharks) and avoid flushing of pinnipeds when predators are observed in nearshore waters; (6) using binoculars to detect pinnipeds before close approach to avoid being seen by animals; and (7) rescheduling work at sites where pups are present, unless other means to accomplishing the work can be done without causing disturbance to mothers and dependent pups.</P>
        <P>The methodologies and actions noted in this section will be utilized and included as mitigation measures in any issued IHA to ensure that impacts to marine mammals are mitigated to the lowest level practicable. The primary method of mitigating the risk of disturbance to pinnipeds, which will be in use at all times, is the selection of judicious routes of approach to abalone study sites, avoiding close contact with pinnipeds hauled out on shore, and the use of extreme caution upon approach. In no case will marine mammals be deliberately approached by abalone survey personnel, and in all cases every possible measure will be taken to select a pathway of approach to study sites that minimizes the number of marine mammals potentially harassed. In general, researchers will stay inshore of pinnipeds whenever possible to allow maximum escape to the ocean. Each visit to a given study site will last for approximately 4 hours, after which the site is vacated and can be re-occupied by any marine mammals that may have been disturbed by the presence of abalone researchers. By arriving before low tide, worker presence will tend to encourage pinnipeds to move to other areas for the day before they haul out and settle onto rocks at low tide.</P>
        <P>The following measures are proposed for implementation to avoid disturbances to elephant seal pups. Disturbances to females with dependent pups can be mitigated to the greatest extent practicable by avoiding visits to those intertidal sites with pinnipeds that are actively nursing, with the exception of northern elephant seals. The time of year when GFNMS plans to sample avoids disturbance to young, dependent pups, with the exception of northern elephant seals. Thus, early February and November, at minimum, are preferable for the proposed intertidal survey work in order to minimize the risk of harassment. Harassment of nursing northern elephant seal pups may occur but only to a limited extent. Disruption of nursing to northern elephant seal pups will occur only as biologists pass by the area. No flushing on nursing northern elephant seal pups will occur, and no disturbance to newborn northern elephant seals (pups less than one week old) will occur. Moreover, elephant seals have a much higher tolerance of nearby human activity than sea lions or harbor seals. In the event of finding pinnipeds breeding and nursing, the intertidal monitoring activities will be re-directed to sites where these activities and behaviors are not occurring. This mitigation measure will reduce the possibility of takes by harassment and further reduce the remote possibility of serious injury or mortality of dependent pups.</P>
        <P>GFNMS will suspend sampling and monitoring operations immediately if an injured marine mammal is found in the vicinity of the project area and the abalone site sampling activities could aggravate its condition.</P>
        <P>NMFS has carefully evaluated GFNMS' proposed mitigation measures and considered a range of other measures in the context of ensuring that NMFS prescribes the means of effecting the least practicable impact on the affected marine mammal species and stocks and their habitat. Our evaluation of potential measures included consideration of the following factors in relation to one another:</P>
        <P>• The manner in which, and the degree to which, the successful implementation of the measure is expected to minimize adverse impacts to marine mammals;</P>
        <P>• The proven or likely efficacy of the specific measure to minimize adverse impacts as planned; and</P>
        <P>• The practicability of the measure for applicant implementation.</P>
        <P>Based on our evaluation of the applicant's proposed measures, NMFS has preliminarily determined that the proposed mitigation measures provide the means of effecting the least practicable impact on marine mammal species or stocks and their habitat, paying particular attention to rookeries, mating grounds, and areas of similar significance.</P>
        <HD SOURCE="HD1">Proposed Monitoring and Reporting</HD>
        <P>In order to issue an ITA for an activity, Section 101(a)(5)(D) of the MMPA states that NMFS must, where applicable, set forth “requirements pertaining to the monitoring and reporting of such taking”. The MMPA implementing regulations at 50 CFR 216.104(a)(13) indicate that requests for ITAs must include the suggested means of accomplishing the necessary monitoring and reporting that will result in increased knowledge of the species and of the level of taking or impacts on populations of marine mammals that are expected to be present in the proposed action area.</P>
        <P>Currently many aspects of pinniped research are being conducted by PRBO scientists on the Farallon Islands, which includes elephant seal pup tagging and behavior observations with special notice to tagged animals. Additional observations are always desired, such as observations of pinniped carcasses bearing tags, as well as any rare or unusual marine mammal occurrences. GFNMS' observations and reporting will add to the observational database and on-going marine mammal assessments on the Farallon Islands.</P>
        <P>GFNMS can add to the knowledge of pinnipeds on the South Farallon Islands by noting observations of: (1) Unusual behaviors, numbers, or distributions of pinnipeds, such that any potential follow-up research can be conducted by the appropriate personnel; (2) tag-bearing carcasses of pinnipeds, allowing transmittal of the information to appropriate agencies and personnel; and (3) rare or unusual species of marine mammals for agency follow-up.</P>

        <P>Proposed monitoring requirements in relation to GFNMS' abalone research surveys will include observations made<PRTPAGE P="50996"/>by the applicant. Information recorded will include species counts (with numbers of pups/juveniles), numbers of observed disturbances, and descriptions of the disturbance behaviors during the abalone surveys. Observations of unusual behaviors, numbers, or distributions of pinnipeds on the South Farallon Islands will be reported to NMFS and PRBO so that any potential follow-up observations can be conducted by the appropriate personnel. In addition, observations of tag-bearing pinniped carcasses as well as any rare or unusual species of marine mammals will be reported to NMFS and PRBO.</P>
        <P>If at any time injury, serious injury, or mortality of the species for which take is authorized should occur, or if take of any kind of any other marine mammal occurs, and such action may be a result of the proposed abalone research, GFNMS will suspend research activities and contact NMFS immediately to determine how best to proceed to ensure that another injury or death does not occur and to ensure that the applicant remains in compliance with the MMPA.</P>
        <P>A draft final report must be submitted to NMFS Office of Protected Resources within 60 days after the conclusion of the 2012-2013 field season or 60 days prior to the start of the next field season if a new IHA will be requested. The report will include a summary of the information gathered pursuant to the monitoring requirements set forth in the IHA. A final report must be submitted to the Director of the NMFS Office of Protected Resources and to the NMFS Southwest Office Regional Administrator within 30 days after receiving comments from NMFS on the draft final report. If no comments are received from NMFS, the draft final report will be considered to be the final report.</P>
        <HD SOURCE="HD1">Estimated Take by Incidental Harassment</HD>
        <P>Except with respect to certain activities not pertinent here, the MMPA defines “harassment” as: Any act of pursuit, torment, or annoyance which (i) has the potential to injure a marine mammal or marine mammal stock in the wild [Level A harassment]; or (ii) has the potential to disturb a marine mammal or marine mammal stock in the wild by causing disruption of behavioral patterns, including, but not limited to, migration, breathing, nursing, breeding, feeding, or sheltering [Level B harassment].</P>
        <P>All anticipated takes would be by Level B harassment, involving temporary changes in behavior. The proposed mitigation and monitoring measures are expected to minimize the possibility of injurious or lethal takes such that take by injury, serious injury, or mortality is considered remote. Animals hauled out close to the actual survey sites may be disturbed by the presence of biologists and may alter their behavior or attempt to move away from the researchers. No motorized equipment is involved in conducting the proposed abalone monitoring surveys.</P>
        <P>As discussed earlier, NMFS considers an animal to have been harassed if it moved greater than 1 m (3.3 ft) in response to the researcher's presence or if the animal was already moving and changed direction and/or speed, or if the animal flushed into the water. Animals that became alert without such movements were not considered harassed. The distribution of pinnipeds hauled out on beaches is not consistent throughout the year. The number of marine mammals disturbed will vary by month and location. PRBO obtains weekly counts of pinnipeds on the South Farallon Islands, dating back to the early 1970s. GFNMS used data collected by PRBO in February and November 2010 and 2011 (since those are the months they propose to conduct their abalone monitoring in 2012 and 2013) to estimate the number of pinnipeds that may potentially be taken by Level B (behavioral) harassment. Table 3 in GFNMS' IHA application and Table 1 here present the maximum numbers of California sea lions, harbor seals, northern elephant seals, northern fur seals, and Steller sea lions that may be present at the various sampling sites in November and February. As indicated in the table, some sites will be sampled in both months and others only in one of the two survey months. Based on this information, NMFS proposes to authorize the take, by Level B harassment only, of 6,850 California sea lions, 175 harbor seals, 225 northern elephant seals, 20 northern fur seals, and 95 Steller sea lions. These numbers are considered to be maximum take estimates; therefore, actual take may be slightly less if animals decide to haul out at a different location for the day or animals are out foraging at the time of the survey activities.</P>
        <HD SOURCE="HD1">Negligible Impact and Small Numbers Analysis and Preliminary Determination</HD>
        <P>NMFS has defined “negligible impact” in 50 CFR 216.103 as “* * * an impact resulting from the specified activity that cannot be reasonably expected to, and is not reasonably likely to, adversely affect the species or stock through effects on annual rates of recruitment or survival.” In making a negligible impact determination, NMFS considers a variety of factors, including but not limited to: (1) The number of anticipated mortalities; (2) the number and nature of anticipated injuries; (3) the number, nature, intensity, and duration of Level B harassment; and (4) the context in which the take occurs.</P>
        <P>No injuries or mortalities are anticipated to occur as a result of GFNMS' rocky intertidal monitoring work and searching for black abalone, and none are proposed to be authorized. The behavioral harassments that could occur would be of limited duration, as researchers only conduct sampling two times per year for a total of 4-8 days each time. Additionally, each site is sampled for approximately 3-4 hours before moving to the next sampling site. Therefore, disturbance will be limited to a short duration, allowing pinnipeds to reoccupy the sites within a short amount of time.</P>
        <P>Some of the pinniped species use the islands to conduct pupping and/or breeding. However, with the exception of northern elephant seals, GFNMS will conduct its abalone site sampling outside of the pupping/breeding seasons. GFNMS has proposed measures to minimize impacts to northern elephant seals nursing or tending to dependent pups. Such measures will avoid mother/pup separation or trampling of pups.</P>
        <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        <GPH DEEP="476" SPAN="3">
          <PRTPAGE P="50997"/>
          <GID>EN23AU12.081</GID>
        </GPH>
        <BILCOD>BILLING CODE 3510-22-C</BILCOD>
        <P>Of the five marine mammal species anticipated to occur in the proposed activity areas, only the Steller sea lion is listed as threatened under the ESA. The species is also designated as depleted under the MMPA. Table 2 in this document presents the abundance of each species or stock, the proposed take estimates, and the percentage of the affected populations or stocks that may be taken by harassment. Based on these estimates, GFNMS would take less than 1% of each species or stock, with the exception of the California sea lion, which would result in an estimated take of 2.3% of the stock. Because these are maximum estimates, actual take numbers are likely to be lower, as some animals may select other haulout sites the day the researchers are present.</P>

        <P>Based on the analysis contained herein of the likely effects of the specified activity on marine mammals and their habitat, and taking into consideration the implementation of the proposed mitigation and monitoring measures, NMFS preliminarily finds that the rocky intertidal monitoring program will result in the incidental take of small numbers of marine mammals, by Level B harassment only, and that the total taking from the rocky intertidal monitoring program will have a negligible impact on the affected species or stocks.<PRTPAGE P="50998"/>
        </P>
        <GPOTABLE CDEF="s50,15,12,12" COLS="4" OPTS="L2,i1">
          <TTITLE>Table 2—Population Abundance Estimates, Total Proposed Level B Take, and Percentage of Population That May Be Taken for the Potentially Affected Species During the Proposed Rocky Intertidal Monitoring Program</TTITLE>
          <BOXHD>
            <CHED H="1">Species</CHED>
            <CHED H="1">Abundance*</CHED>
            <CHED H="1">Total proposed level B take</CHED>
            <CHED H="1">Percentage of stock or population</CHED>
          </BOXHD>
          <ROW>
            <ENT I="01">Harbor Seal</ENT>
            <ENT>30,196</ENT>
            <ENT>175</ENT>
            <ENT>0.6</ENT>
          </ROW>
          <ROW>
            <ENT I="01">California Sea Lion</ENT>
            <ENT>296,750</ENT>
            <ENT>6,850</ENT>
            <ENT>2.3</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Northern Elephant Seal</ENT>
            <ENT>124,000</ENT>
            <ENT>225</ENT>
            <ENT>0.2</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Steller Sea Lion</ENT>
            <ENT>58,334-72,223</ENT>
            <ENT>95</ENT>
            <ENT>0.1-0.2</ENT>
          </ROW>
          <ROW>
            <ENT I="01">Northern Fur Seal</ENT>
            <ENT>9,968</ENT>
            <ENT>20</ENT>
            <ENT>0.2</ENT>
          </ROW>

          <TNOTE>* Abundance estimates are taken from the 2011 U.S. Pacific Marine Mammal Stock Assessments (Carretta<E T="03">et al.,</E>2012).</TNOTE>
        </GPOTABLE>
        <HD SOURCE="HD1">Impact on Availability of Affected Species or Stock for Taking for Subsistence Uses</HD>
        <P>There are no relevant subsistence uses of marine mammals implicated by this action. Therefore, NMFS has determined that the total taking of affected species or stocks would not have an unmitigable adverse impact on the availability of such species or stocks for taking for subsistence purposes.</P>
        <HD SOURCE="HD1">Endangered Species Act (ESA)</HD>
        <P>There is one marine mammal species listed as threatened under the ESA with confirmed or possible occurrence in the proposed project area: the eastern U.S. stock of Steller sea lion. NMFS' Permits and Conservation Division has determined that issuance of the proposed IHA to GFNMS under section 101(a)(5)(D) of the MMPA may affect this species and has initiated consultation with NMFS' Endangered Species Division under section 7 of the ESA for this activity. Consultation will be concluded prior to a determination on the issuance of an IHA.</P>
        <HD SOURCE="HD1">National Environmental Policy Act (NEPA)</HD>
        <P>NMFS is currently preparing an Environmental Assessment (EA), pursuant to NEPA, to determine whether the issuance of an IHA to GFNMS for its 2012-2013 rocky intertidal monitoring activities may have a significant impact on the human environment. This analysis and a determination on whether to issue a Finding of No Significant Impact (FONSI) will be completed prior to the issuance or denial of this proposed IHA. This identifies our environmental issues and provides environmental issues relevant to the proposed action. Members of the public are invited to provide comments, and NMFS will consider and evaluate responsive comments as it prepares the EA and decides whether to issue a FONSI.</P>
        <HD SOURCE="HD1">Proposed Authorization</HD>
        <P>As a result of these preliminary determinations, NMFS proposes to authorize the take of marine mammals incidental to GFNMS' rocky intertidal and black abalone monitoring research activities, provided the previously mentioned mitigation, monitoring, and reporting requirements are incorporated.</P>
        <SIG>
          <DATED>Dated: August 16, 2012.</DATED>
          <NAME>Helen M. Golde,</NAME>
          <TITLE>Acting Director, Office of Protected Resources, National Marine Fisheries Service.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20790 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 3510-22-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">COMMODITY FUTURES TRADING COMMISSION</AGENCY>
        <SUBJECT>Proposal To Exempt Certain Transactions Involving Not-for-Profit Electric Utilities; Request for Comments</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Commodity Futures Trading Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Commodity Futures Trading Commission (“CFTC” or the “Commission”) is proposing to exempt certain transactions between not-for-profit utilities (entities described in section 201(f) of the Federal Power Act (“FPA”)), and other electric utility cooperatives, from the provisions of the Commodity Exchange Act (“CEA” or “Act”) and the regulations there under, subject to certain antifraud, anti-manipulation, and recordkeeping conditions. Authority for this exemption is found in section 4(c) of the CEA. The Commission is requesting comment on every aspect of this Notice of Proposed Order (“Notice”).</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments by any of the following methods:</P>
          <P>•<E T="03">Agency Web site, via its Comments Online process: http://comments.cftc.gov</E>. Follow the instructions for submitting comments through the Web site.</P>
          <P>•<E T="03">Mail:</E>David A. Stawick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.</P>
          <P>•<E T="03">Courier:</E>Same as mail above.</P>
          <P>•<E T="03">Federal eRulemaking Portal: http://www.regulations.gov</E>. Follow the instructions for submitting comments.</P>
          <P>Please submit your comments using only one method.</P>

          <P>All comments must be submitted in English, or if not, accompanied by an English translation. Comments will be posted as received to<E T="03">http://www.cftc.gov</E>. You should submit only information that you wish to make available publicly. If you wish the CFTC to consider information that you believe is exempt from disclosure under the Freedom of Information Act, a petition for confidential treatment of the exempt information may be submitted according to the procedures established in § 145.9 of the CFTC's regulations.<SU>1</SU>
            <FTREF/>
          </P>
          <FTNT>
            <P>
              <SU>1</SU>17 CFR 145.9.</P>
          </FTNT>

          <P>The CFTC reserves the right, but shall have no obligation, to review, pre-screen, filter, redact, refuse or remove any or all of your submission from<E T="03">http://www.cftc.gov</E>that it may deem to be inappropriate for publication, such as obscene language. All submissions that have been redacted or removed that contain comments on the merits of this action will be retained in the public comment file and will be considered as required under the Administrative Procedure Act and other applicable laws, and may be accessible under the Freedom of Information Act.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>David Van Wagner, Chief Counsel, (202) 418-5481,<E T="03">dvanwagner@cftc.gov,</E>or Graham McCall, Attorney Advisor, (202) 418-6150,<E T="03">gmccall@cftc.gov,</E>Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette<PRTPAGE P="50999"/>Centre, 1155 21st Street NW., Washington, DC 20581.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">Table of Contents</HD>
        <EXTRACT>
          <FP SOURCE="FP-2">I. Introduction</FP>
          <FP SOURCE="FP1-2">A. CEA Section 4(c)</FP>
          <FP SOURCE="FP1-2">B. FPA Section 201(f)</FP>
          <FP SOURCE="FP-2">II. Petition</FP>
          <FP SOURCE="FP1-2">A. Relief Requested</FP>
          <FP SOURCE="FP1-2">B. Definition and Scope of Electric Operations-Related Transactions</FP>
          <FP SOURCE="FP1-2">1. Electric Energy Delivered</FP>
          <FP SOURCE="FP1-2">2. Generation Capacity</FP>
          <FP SOURCE="FP1-2">3. Transmission Services</FP>
          <FP SOURCE="FP1-2">4. Fuel Delivered</FP>
          <FP SOURCE="FP1-2">5. Cross-Commodity Transaction</FP>
          <FP SOURCE="FP1-2">6. Other Goods and Services Agreements, Contracts and Transactions</FP>
          <FP SOURCE="FP1-2">7. Environmental Rights, Allowances or Attributes</FP>
          <FP SOURCE="FP1-2">C. Definition and Scope of NFP Electric Entities</FP>
          <FP SOURCE="FP1-2">1. FPA 201(f) Entities</FP>
          <FP SOURCE="FP1-2">a. Government and Cooperatively Owned Electric Utilities Described by FPA Section 201(f)</FP>
          <FP SOURCE="FP1-2">b. Federally-Recognized Indian Tribes</FP>
          <FP SOURCE="FP1-2">2. Non-FPA 201(f) Electric Cooperatives</FP>
          <FP SOURCE="FP-2">III. Commission Determinations</FP>
          <FP SOURCE="FP1-2">A. Scope of the Proposed Order</FP>
          <FP SOURCE="FP1-2">1. Exempt Entities</FP>
          <FP SOURCE="FP1-2">a. Electric Utilities Owned by Federal, State, or Local Government</FP>
          <FP SOURCE="FP1-2">b. Electric Utilities Owned by an Indian Tribe</FP>
          <FP SOURCE="FP1-2">c. Electric Utilities Owned as Cooperative Organizations</FP>
          <FP SOURCE="FP1-2">2. Exempt Non-Financial Energy Transactions</FP>
          <FP SOURCE="FP1-2">3. Conditions</FP>
          <FP SOURCE="FP1-2">B. CEA Section 4(c) Considerations</FP>
          <FP SOURCE="FP1-2">1. Responsible Economic or Financial Innovation and Fair Competition</FP>
          <FP SOURCE="FP1-2">2. Applicability of CEA Section 4(a)</FP>
          <FP SOURCE="FP1-2">3. Public Interest and Purposes of the CEA</FP>
          <FP SOURCE="FP1-2">a. Public Interest</FP>
          <FP SOURCE="FP1-2">b. Purposes of the CEA</FP>
          <FP SOURCE="FP1-2">4. Appropriate Persons</FP>
          <FP SOURCE="FP1-2">5. Ability to Discharge Regulatory or Self-Regulatory Duties</FP>
          <FP SOURCE="FP-2">IV. Proposed Order</FP>
          <FP SOURCE="FP-2">V. Request for Comment</FP>
          <FP SOURCE="FP-2">VI. Related Matters</FP>
          <FP SOURCE="FP1-2">A. Regulatory Flexibility Act</FP>
          <FP SOURCE="FP1-2">B. Paperwork Reduction Act</FP>
          <FP SOURCE="FP1-2">C. Consideration of Costs and Benefits</FP>
        </EXTRACT>
        <HD SOURCE="HD1">I. Introduction</HD>
        <P>On June 8, 2012, the Commission received a petition (“Petition”)<SU>2</SU>
          <FTREF/>from a group of trade associations that represent government and/or cooperatively-owned electric utilities requesting relief from the requirements of the CEA<SU>3</SU>
          <FTREF/>and Commission's regulations thereunder,<SU>4</SU>
          <FTREF/>pursuant to CEA section 4(c),<SU>5</SU>
          <FTREF/>for certain electric energy-related transactions between not-for-profit electric energy utilities. In this Notice, after summarizing and reviewing the representations made in the Petition, the Commission proposes conditional relief pursuant to CEA section 4(c) for non-financial energy transactions between not-for-profit utilities described in FPA section 201(f) and other electric cooperatives.</P>
        <FTNT>
          <P>

            <SU>2</SU>The Petition is available on the Commission's Web site at<E T="03">http://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/ifdocs/nrecaetalltr060812.pdf</E>.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>3</SU>7 U.S.C. 1<E T="03">et seq.</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>4</SU>The Commission's regulations are set forth in title 17 of the Code of Federal Regulations (“CFR”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>5</SU>7 U.S.C. 6(c).</P>
        </FTNT>
        <HD SOURCE="HD2">A. CEA Section 4(c)</HD>
        <P>Section 4(c) of the CEA provides the Commission with broad authority to exempt certain transactions and market participants from the requirements of the Act. When adding section 4(c) to the CEA, Congress noted that the goal of the provision “is to give the Commission a means of providing certainty and stability to existing and emerging markets so that financial innovation and market development can proceed in an effective and competitive manner.”<SU>6</SU>
          <FTREF/>The House-Senate Conference Committee reconciling the provision's language noted that:</P>
        <FTNT>
          <P>
            <SU>6</SU>House Conf. Report No. 102-978, 1992 U.S.C.C.A.N. 3179, 3213 (“4(c) Conf. Report”).</P>
        </FTNT>
        
        <EXTRACT>
          <P>The Conferees do not intend that the exercise of exemptive authority by the Commission would require any determination beforehand that the agreement, instrument, or transaction for which an exemption is sought is subject to the [CEA]. Rather, this provision provides flexibility for the Commission to provide legal certainty to novel instruments where the determination as to jurisdiction is not straightforward. Rather than making a finding as to whether a product is or is not a futures contract, the Commission in appropriate cases may proceed directly to issuing an exemption.<SU>7</SU>
            <FTREF/>
          </P>
          <FTNT>
            <P>
              <SU>7</SU>4(c) Conf. Report at 3214-3215.</P>
          </FTNT>
        </EXTRACT>
        <P>Specifically, CEA section 4(c)(1) empowers the CFTC to “promote responsible economic or financial innovation and fair competition” by exempting any transaction (or class thereof) that otherwise would be subject to CEA section 4(a), or any person (or class thereof) dealing in such transaction(s), from any or all of the provisions of the CEA where the Commission determines that the exemption would be consistent with the public interest.<SU>8</SU>
          <FTREF/>The Commission may grant such an exemption by rule, regulation or order, after notice and opportunity for hearing, and may do so on application of any person<SU>9</SU>
          <FTREF/>or on its own initiative.</P>
        <FTNT>
          <P>
            <SU>8</SU>Section 4(c)(1) of the CEA, 7 U.S.C. 6(c)(1), provides in full that:</P>
          <P>In order to promote responsible economic or financial innovation and fair competition, the Commission by rule, regulation, or order, after notice and opportunity for hearing, may (on its own initiative or on application of any person, including any board of trade designated or registered as a contract market or derivatives transaction execution facility for transactions for future delivery in any commodity under section 7 of this title) exempt any agreement, contract, or transaction (or class thereof) that is otherwise subject to subsection (a) of this section (including any person or class of persons offering, entering into, rendering advice or rendering other services with respect to, the agreement, contract, or transaction), either unconditionally or on stated terms or conditions or for stated periods and either retroactively or prospectively, or both, from any of the requirements of subsection (a) of this section, or from any other provision of this chapter * * * if the Commission determines that the exemption would be consistent with the public interest.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>9</SU>CEA section 1a(38) defines “person” to include “individuals, associations, partnerships, corporations, and trusts.” 7 U.S.C. 1a(38).</P>
        </FTNT>
        <P>CEA section 4(c)(2) provides that the Commission shall not grant any exemption under section 4(c)(1) from any of the requirements of section 4(a) unless the Commission determines, among other things, that: (i) the exemption would be consistent with the public interest and the purposes of the CEA; (ii) the exempt agreement, contract, or transactions will be entered into solely between “appropriate persons;” and (iii) the exemption will not have a material adverse effect on the ability of the Commission or any contract market to discharge its regulatory or self-regulatory duties under the CEA.<SU>10</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>10</SU>
            <E T="03">See</E>7 U.S.C. 6(c)(2).</P>
        </FTNT>
        <P>CEA section 4(c)(3) outlines which entities may constitute “appropriate person[s]” for purposes of a CEA section 4(c) exemption, including (as relevant to this Notice): (i) Any governmental entity (including the United States, any State, or any foreign government) or political subdivision thereof, or any multinational or supranational entity or any instrumentality, agency, or department of any of the foregoing;<SU>11</SU>
          <FTREF/>or (ii) such other persons that the Commission determines to be appropriate in light of their financial or other qualifications, or the applicability of appropriate regulatory protections.<SU>12</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>11</SU>
            <E T="03">See</E>7 U.S.C. 6(c)(3)(H).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>12</SU>
            <E T="03">See</E>7 U.S.C. 6(c)(3)(K).</P>
        </FTNT>
        <P>The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”)<SU>13</SU>
          <FTREF/>added new subparagraph<PRTPAGE P="51000"/>4(c)(6)(C) to the CEA.<SU>14</SU>
          <FTREF/>CEA section 4(c)(6)(C) builds upon the Commission's general exemptive authority in section 4(c)(1) as follows:</P>
        <FTNT>
          <P>

            <SU>13</SU>Pub. L. 111-203, 124 Stat. 1376 (2010). The text of the Dodd-Frank Act may be accessed at<E T="03">http://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm</E>. Title VII of the Dodd-Frank Act amended the CEA to establish a comprehensive new regulatory framework for swaps and security-based swaps. The legislation was enacted to reduce risk, increase transparency, and promote market integrity within the financial system by, among other things: (1) providing for the registration and comprehensive regulation of swap dealers (“SDs”) and major swap participants (“MSPs”); (2) imposing clearing and trade execution requirements<PRTPAGE/>on standardized derivative products; (3) creating robust recordkeeping and real-time reporting regimes; and (4) enhancing the Commission's rulemaking and enforcement authorities with respect to, among others, all registered entities and intermediaries subject to the Commission's oversight.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>14</SU>7 U.S.C. 6(c)(6)(C) (as added by section 722(f) of the Dodd-Frank Act).</P>
        </FTNT>
        
        <EXTRACT>
          <P>(6) If the Commission determines that the exemption would be consistent with the public interest and the purposes of this Act, the Commission shall, in accordance with [CEA sections 4(c)(1) and 4(c)(2)], exempt from the requirements of this Act an agreement, contract, or transaction that is entered into—</P>
          <P>[* * *]</P>
          <P>(C) between entities described in section 201(f) of the Federal Power Act (16 U.S.C. 824(f)).</P>
        </EXTRACT>
        
        <P>Thus, section 4(c)(6)(C) explicitly spotlights transactions between entities within the scope of FPA section 201(f) as being eligible for exemption pursuant to the Commission's 4(c) authority. However, whether an exemption is considered under 4(c)(1), 4(c)(6)(C), or both,<SU>15</SU>
          <FTREF/>the CFTC must first determine that the proposed exemption meets certain threshold criteria including, for example, that the exemption would be consistent with the public interest and the purposes of the Act.</P>
        <FTNT>
          <P>
            <SU>15</SU>For any exemption involving CEA section 4(c)(6), the Commission believes “both” is the correct characterization because CEA section 4(c)(6) explicitly directs the Commission to consider any exemption proposed under 4(c)(6) “in accordance with [sections 4(c)(1) and 4(c)(2)].”</P>
        </FTNT>
        <HD SOURCE="HD2">B. FPA Section 201(f)</HD>
        <P>The FPA<SU>16</SU>
          <FTREF/>authorizes and, along with other statutes, governs the Federal Energy Regulatory Commission (“FERC”), the federal agency that regulates the interstate transmission and sale at wholesale in interstate commerce of electric energy by public utilities, as well as natural gas and hydropower projects.<SU>17</SU>
          <FTREF/>Section 201(f) of the FPA, which Congress referenced in new CEA section 4(c)(6)(C), provides broad-based relief from most provisions of Part II<SU>18</SU>
          <FTREF/>of the FPA for certain government and cooperatively-owned electric utility companies and states that:</P>
        <FTNT>
          <P>
            <SU>16</SU>16 U.S.C. 791a<E T="03">et seq.</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>17</SU>
            <E T="03">See www.ferc.gov.</E>
          </P>
        </FTNT>
        <FTNT>
          <P>

            <SU>18</SU>Part II of the FPA governs the transmission and sale at wholesale of electric energy in interstate commerce, including the facilities used for such transmission or sale.<E T="03">See</E>16 U.S.C. 824<E T="03">et seq.</E>Section 201(f) does not, however, provide an exemption from FPA parts I or III. Part I of the FPA deals with the establishment and functioning of FERC and the regulation of hydroelectric resources.<E T="03">See</E>16 U.S.C. 792<E T="03">et seq.</E>Part III of the FPA deals with recordkeeping and reporting requirements and FERC's procedural rules concerning complaints, investigations, and hearings.<E T="03">See</E>16 U.S.C. 825<E T="03">et seq.</E>Additionally, section 201(f) does not provide an exemption from FERC's refund authority, 16 U.S.C. 824e, reliability standards, 16 U.S.C. 824o(b)(1), or jurisdiction over transmission facilities and services, 16 U.S.C. 824(i)-(j).</P>
        </FTNT>
        
        <EXTRACT>
          <FP>[n]o provision in this subchapter [Part II of the FPA] shall apply to, or be deemed to include, the United States, a State or any political subdivision of a State, an electric cooperative that receives financing under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 megawatt hours of electricity per year, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto.<SU>19</SU>
            <FTREF/>
          </FP>
          <FTNT>
            <P>
              <SU>19</SU>16 U.S.C. 824(f).</P>
          </FTNT>
        </EXTRACT>
        <HD SOURCE="HD1">II. Petition</HD>
        <HD SOURCE="HD2">A. Relief Requested</HD>
        <P>As noted above, on June 8, 2012, the Commission received the Petition<SU>20</SU>
          <FTREF/>from a group of trade associations representing government and/or cooperatively-owned electric utilities. Those Petitioners consisted of the National Rural Electric Cooperative Association (“NRECA”),<SU>21</SU>
          <FTREF/>the American Public Power Association (“APPA”),<SU>22</SU>
          <FTREF/>the Large Public Power Council (“LPPC”),<SU>23</SU>
          <FTREF/>the Transmission Access Policy Study Group (“TAPS”),<SU>24</SU>
          <FTREF/>and the Bonneville Power Administration (“BPA”)<SU>25</SU>

          <FTREF/>(collectively, the “Petitioners”). The Petition requests that the Commission provide categorical exemptive relief from the requirements of the CEA, pursuant to CEA section 4(c)(6), in accordance with CEA sections 4(c)(1) and 4(c)(2), for<E T="03">all</E>“Electric Operations-Related Transactions” between “NFP Electric Entities,” retroactive to the enactment of Dodd-Frank, outstanding now, or that may be developed and executed in the future.<SU>26</SU>
          <FTREF/>The Petitioner's definition and scope of the terms “Electric Operations-Related Transactions” and “NFP Electric Entities” is summarized below.<SU>27</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>20</SU>The Petition is available on the Commission's Web site at<E T="03">http://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/ifdocs/nrecaetalltr060812.pdf</E>.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>21</SU>According to the Petition, NRECA is the national service organization for more than 900 not-for-profit rural electric cooperatives and government-owned power districts. NRECA's members provide electric energy to approximately 42 million consumers in 47 states, or thirteen percent of the nation's population.<E T="03">See</E>Petition at 3.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>22</SU>According to the Petition, APPA is the national trade association that represents the interests of government-owned electric utilities in the United States. APPA's member utilities are not-for-profit utility systems that were created by state or local governments to serve the public interest. Approximately 2,000 government-owned electric utilities provide over fifteen percent of all kilowatt hour (“KWh”) sales to retail electric customers.<E T="03">See</E>Petition at 3-4.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>23</SU>According to the Petition, LPPC is an organization representing 24 of the largest government-owned electric utilities in the nation. LPPC members own and operate over 86,000 megawatts of generation capacity and nearly 35,000 circuit miles of high voltage transmission lines, representing nearly 90 percent of the transmission investment owned by non-Federal government-owned electric utilities in the United States.<E T="03">See</E>Petition at 4.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>24</SU>According to the Petition, TAPS is an association of transmission dependent electric utilities located in more than 30 states. All of TAPS member electric utilities except one are FPA section 201(f) entities.<E T="03">See</E>Petition at 4.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>25</SU>According to the Petition, BPA is a self-financed, non-profit Federal agency created in 1937 by Congress that primarily markets electric power from 31 federally owned and operated projects, and supplies 35 percent of the electricity used in the Pacific Northwest. BPA also owns and operates 75 percent of the high-voltage transmission in the Pacific Northwest. BPA's primary statutory responsibility is to market its Federal system power at cost-based rates to its “preference customers.” Per the Petition, BPA has 130 preference customers made up of electric utilities which are not subject to the jurisdiction of FERC, including Indian tribes, electric cooperatives, and state and municipally chartered electric utilities, and other Federal agencies located in the Pacific Northwest.<E T="03">See</E>Petition at 4.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>26</SU>
            <E T="03">See</E>Petition at 1-2; 4 (emphasis added). The Petition also requests that the Commission determine that no Electric Operations-Related Transaction will affect any NFP Electric Entity's regulatory status under the CEA (<E T="03">e.g.,</E>as a swap dealer or major swap participant).<E T="03">Id.</E>at 28. The Petition specifically asks that, if the Commission declines to provide the categorical relief as requested, the Commission would i) include an additional category of approved Electric Operations-Related Transactions that includes all “trade options” referencing the goods or services described in the categories of transactions currently outstanding between Exempt Entities (<E T="03">see infra</E>sections II.B.1-7), and ii) delegate to Commission staff the authority to review on an expedited basis and approve as eligible for the benefit of the exemptive order any new Electric Operations-Related Transactions between NFP Electric Entities.<E T="03">Id.</E>at 13. Finally, the Petition invites the Commission to determine that any Electric Operations-Related Transaction described in the Petition does not need an exemption because such transaction is not a “swap,” is a “commercial merchandising arrangement” or “trade option,” or is not an agreement, contract or transaction involving a “commodity.”<E T="03">See id.</E>at 13, note 26.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>27</SU>In this Notice, the Commission describes the Petition by referencing Petitioners' defined terms. Such references, however, are not to be interpreted as the Commission proposing to adopt such terms for the purpose of the exemption proposed herein. Rather, the proposed exemption establishes its own defined entities and transactions for which relief is being provided.</P>
        </FTNT>
        <HD SOURCE="HD2">B. Definition and Scope of Electric Operations-Related Transactions</HD>
        <P>The Petition defines Electric Operations-Related Transactions to mean:</P>
        
        <EXTRACT>

          <P>Any agreement, contract or transaction involving a “commodity” (as such term is defined in the CEA) and whether or not such agreement, contract or transaction is a<PRTPAGE P="51001"/>“swap,” so long as the NFP Electric Entity is entering into any such agreement, contract or transaction “to hedge or mitigate commercial risks” (as such phrase is used in CEA Section 2(h)(7)(A)(ii)) intrinsically related to the electric facilities or electric operations (or anticipated facilities or operations) of the NFP Electric Entity, or intrinsically related to the NFP Electric Entity's public service obligation to deliver reliable, affordable electric energy service to electric customers. For the avoidance of doubt, “intrinsically related” shall include all transactions related to (i) the generation, purchase or sale, and transmission of electric energy by the NFP Electric Entity, or the delivery of reliable, affordable electric energy service to the NFP Electric Entity's electric customers, (ii) all fuel supply for the NFP Electric Entity's electric facilities or operations, (iii) compliance with electric system reliability obligations applicable to the NFP Electric Entity, its electric facilities or operations, (iv) compliance with energy, conservation or renewable energy or environmental statutes, regulations or government orders applicable to the NFP Electric Entity, its electric facilities or operations, or (v) any other electric operations-related agreement, contract or transaction to which the NFP Electric Entity is a party. Electric Operations-Related Transactions shall<E T="03">not</E>include agreements, contracts or transactions executed, traded, or cleared on a registered entity, nor shall such defined term include an agreement, contract or transaction based or derived on, or referencing, a “commodity” in the interest rate, credit, equity or currency asset class, or of a product type or category in the “Other Commodity” asset class that is based or derived on, or referencing, metals, or agricultural commodities or crude oil or gasoline commodities of any grade not used as fuel for electric generation.<SU>28</SU>
            <FTREF/>
          </P>
          <FTNT>
            <P>
              <SU>28</SU>Petition at 4-5.</P>
          </FTNT>
        </EXTRACT>
        
        <FP>In general, the Petitioners represent that all Electric Operations-Related Transactions covered by the proposed definition are intrinsically related to the needs of both NFP Electric Entities engaged in a transaction “to hedge or mitigate commercial risks” which arise from their respective electric facilities and ongoing electric operations and public service obligations.<SU>29</SU>
          <FTREF/>The Petitioners state that, at the time two NFP Electric Entities enter into an Electric Operations-Related Transaction, the terms of the transaction contemplate performance of an electric operations-related obligation by one party, in exchange for payment or reciprocal performance of an electric operations-related function by the other party.<SU>30</SU>
          <FTREF/>
        </FP>
        <FTNT>
          <P>
            <SU>29</SU>
            <E T="03">See</E>Petition at 12.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>30</SU>
            <E T="03">See id.</E>The Petition notes that the terms “physically-settled,” “financially-settled,” and “cash-settled,” as such terms are used in the futures industry, do not translate easily into a commercial context where NFP Electric Entities enter into bilateral contracts governed by state law or by FERC, PUCT or state public utility tariffs to buy and sell goods and services. It is not readily apparent to the Commission why the terms do not translate conceptually. Nevertheless, as previously noted, the Petition represents that Electric Operations-Related Transactions between NFP Electric Entities are always intrinsically related to the electric facilities and operations, and/or the public service obligations, of each of the NFP Electric Entities involved.<E T="03">See id.</E>at 12, n. 24.</P>
        </FTNT>
        <P>The Petition, which is summarized herein, specifically describes seven categories of transactions that currently occur between NFP Electric Entities, and which are covered by the Petition's proposed definition.<SU>31</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>31</SU>The following transaction category descriptions come from the Petition at 6-12.</P>
        </FTNT>
        <HD SOURCE="HD3">1. Electric Energy Delivered</HD>
        <P>In these transactions, NFP Electric Entities agree for one such entity to provide another such entity with electric energy delivered to an identified geographic service territory, load,<SU>32</SU>
          <FTREF/>or electric system. Petitioners note that since electric energy is not currently storable in commercial quantities, the delivery location is critical to the transaction—electric energy delivered elsewhere is not usable or valuable for the receiving entity's operational needs.</P>
        <FTNT>
          <P>

            <SU>32</SU>The Commission understands that “load” is an energy industry term for “demand.”<E T="03">See, e.g.,</E>Current Energy, Supply of and Demand for Electricity in California,<E T="03">available at http://currentenergy.lbl.gov/ca/index.php</E>&lt;last visited July 9, 2012&gt; (explaining that “[t]he current demand (or `load') depends on how much power consumers are using right now”).</P>
        </FTNT>

        <P>As described by the Petitioners, this transaction type includes the most prevalent type of Exempt Electric Operations-Related Transaction between NFP Electric Entities,<E T="03">i.e.,</E>the “full requirements” contract, or “all requirements” agreement or arrangement<SU>33</SU>

          <FTREF/>that is often executed between a generation and transmission (“G&amp;T”) cooperative (<E T="03">i.e.,</E>a cooperative that generates and transmits electricity) and each of its constituent NFP Electric Entity members/owners, or between a Joint Action Agency (an agency formed under state law to provide wholesale power supply and transmission service to member entities) and each of its constituent NFP Electric Entity members. In some instances, the G&amp;T cooperative or the Joint Action Agency is formed by its constituent members for the singular purpose of providing its constituent members with their “full requirements” obligations to deliver electric energy over an agreed delivery period at one or multiple delivery points or locations to their retail electric customers).</P>
        <FTNT>
          <P>
            <SU>33</SU>Per the Petition, the “full” or “all” requirements contract is a bilateral commercial arrangement that is customized to the two NFP Electric Entities that are parties thereto.</P>
        </FTNT>
        <P>In such an arrangement, the provider NFP Electric Entity agrees by bilateral contract or, in some long-standing relationships established by governing or legal documents of the G&amp;T cooperative or Joint Action Agency as the provider NFP Electric Entity, that it will provide for a recipient NFP Electric Entity's “full requirements” to provide reliable electric service to the recipient's fluctuating electric energy load over an agreed delivery period at one or multiple delivery points or locations. In some cases, the delivery period, term, or “tenor” of such agreements can be for thirty years or more.</P>
        <P>In addition to providing the recipient's full requirements for electric energy, the arrangement may also include providing services that are ancillary to the delivery of the electric energy, such as operating or dispatching one or more of the recipient's owned generation units, generation capacity or balancing services, or any of the other goods, services, or commodities required by the recipient described under other categories below.</P>
        <P>The Petition notes that quantities of electric energy will also vary during the delivery period. If a recipient NFP Electric Entity owns some generation itself, the quantity of supplemental electric energy or capacity to meet its “full requirements” during some seasons, months, or days of the year (net of its owned generation) may be zero. Some ancillary services or “commodities” under such a transaction may be optional. Pricing may vary on a seasonal, monthly, daily or on-peak/off-peak basis, or may be tied to the cost at which the provider NFP Electric Entity can generate or purchase electric energy. Alternatively, the price may be tied to the fuel that the provider uses for generating the electric energy provided.</P>
        <HD SOURCE="HD3">2. Generation Capacity</HD>
        <P>In describing this transaction category, the Petition initially notes that the term “capacity,” in connection with generation capacity transactions, has varying meanings across the electric industry, and that electric operations professionals may reference any of a number of “capacity” agreements, contracts, transactions, or arrangements.<SU>34</SU>
          <FTREF/>More generally, the<PRTPAGE P="51002"/>Petition notes that when two NFP Electric Entities agree that one will provide “generation capacity” or “capacity” for another, either a mutual understanding of the engineering context or a customized bilateral commercial contract further defines the parties' respective rights and obligations. Generation capacity is always location-specific and is monitored by the regional transmission organization (“RTO”) or independent system operator (“ISO”)<SU>35</SU>
          <FTREF/>or, outside the RTO/ISO regions, by balancing authorities or reliability coordinators under the supervision of the North American Electric Reliability Corporation (“NERC”) and FERC.<SU>36</SU>
          <FTREF/>Deliverability of generation capacity to a particular geographic point or electric system interface is such an important concept that FERC requires each RTO, ISO, and balancing authority to establish a framework of engineering studies to demonstrate/confirm that a particular generation unit's electrical energy output is deliverable. If generation capacity from a particular unit does not satisfy the relevant RTO, ISO or balancing authority's deliverability requirements, that generation capacity has no value in meeting reliability requirements in that reliability area. If generation capacity is purchased from a generation unit located outside the relevant reliability area, the correlated electric energy (which, if “called on,” must be delivered) nonetheless must be deliverable to the relevant reliability area.</P>
        <FTNT>
          <P>

            <SU>34</SU>Counsel for Petitioners represented in subsequent conversations that generation capacity, generally, can mean the capability or adequacy of specific owned generation units to supply fluctuating load requirements within a defined geographic region (<E T="03">e.g.,</E>an RTO region or an electric utility system) at an estimated or capacity rating level measured in megawatts. The basic concept of generation capacity can be understood as a separate “commodity” from electric energy delivered (or other ancillary service or reserve), such that the purchase and sale of generation capacity may exist<PRTPAGE/>as a stand-alone transaction or as one component of a “bundled energy” service or transaction, such as a full requirements contract. When viewed as an “option-like” commodity transaction, generation capacity can be “delivered” if the “holder” (or relevant reliability authority) calls on the corollary electric energy to be delivered. In some circumstances, the “premium” component can be priced separately and referred to as a “demand charge.” In others, the generation capacity component can be a contingent or option-like aspect of a seller's obligation to provide the “full requirements” that a load serving entity (“LSE”) needs to serve the electric consumers and businesses in its regions, including fulfillment of any generation capacity obligations that the LSE has to its local reliability authority.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>35</SU>More information is available at<E T="03">http://www.ferc.gov/industries/electric/indus-act/rto.asp</E>. The current ISO/RTO entities operating in North America are PJM Interconnection, Midwest Independent Transmission System Operator, Southwest Power Pool, ISO New England, California ISO, New York Independent System Operator and the Electric Reliability Council of Texas (ERCOT). Each of these entities, other than ERCOT, was either formed at the direction of FERC or designated by FERC to direct the operation of the regional electric transmission grid in its specific geographic area. ERCOT is fully regulated by the Public Utility Commission of Texas (the “PUCT”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>36</SU>Counsel for Petitioners in subsequent conversations represented that generation capacity can be a reliability requirement that, in some areas, owners of generation units must maintain in order to provide voltage and frequency support to the electric grid for reliability purposes. In other areas, generation capacity reliability requirements may be imposed on LSEs that must, if they own no generation assets, purchase generating capacity from third-party generators to fulfill the LSEs' reliability requirements.</P>
        </FTNT>
        <P>Some generation capacity agreements or arrangements among NFP Electric Entities may include operational reserves attributable to the identified generation unit. A generation capacity arrangement or transaction also may be called a “shared resources agreement,” whereby NFP Electric Entities agree conditionally to share capacity resources as needed. The contract may relate to multiple identified units owned or operated by both NFP Electric Entities. For example, some state or regional programs to manage limited generation capacity and maintain voltage support for the electric grid in a geographic area may allow NFP Electric Entities subject to such program to utilize “demand-side resources” as part of the generation capacity required by the specific balancing authority, or to meet the reliability authority's requirements in the relevant geographic region.</P>
        <P>In general, a generation capacity transaction between two NFP Electric Entities in one region cannot be presumed to be fungible with any other generation capacity transaction between two other NFP Electric Entities, even in the same region.</P>
        <HD SOURCE="HD3">3. Transmission Services</HD>
        <P>As with the other transaction categories described by the Petitioners, the Petition notes that electric transmission services transactions between NFP Electric Entities will vary by geographic region and by assets owned and transmission services required by the operations of different NFP Electric Entities. In some cases, these transmission services agreements include congestion management services, system losses, and ancillary services.<SU>37</SU>

          <FTREF/>Some NFP Electric Entities own significant transmission facilities (<E T="03">e.g.,</E>BPA owns 75 percent of the transmission lines in the Pacific Northwest). In some cases, Federal law and the regulations pursuant to which the Federal power agencies are formed and operate require a particular Federal power agency to allocate a portion of the transmission to particular electric entities, including NFP Electric Entities, located within its geographic area.</P>
        <FTNT>
          <P>
            <SU>37</SU>The Petition notes that the concept of generation capacity is distinguishable from “transmission capacity,” which relates to the limited amount of electric energy transmission available over the interconnected electric transmission grid, and which is generally defined as a measure of the transfer capability or “capacity” remaining in the physical electric energy transmission network for further commercial activity over and above already committed uses. Additionally, Exhibit 2 of the Petition provides the following example:</P>
          <P>Federal power agency K sells to G&amp;T cooperative J 100 MWs of monthly “firm point-to-point transmission service” from location X to location Y in the southeast U.S. for a term of 3 months at the tariff rate of $2,000/MW-Month for a total transaction value of $600,000. The geographic area in which such transmission service takes place is outside the “footprint” of an RTO, and therefore the transmission service is reserved on the Open Access Same Time Information System (“OASIS”) Web site of the transmission owner, K. J intends to use the transmission service to deliver wholesale electric power to its distribution cooperative member-owners to supply a portion of its distribution cooperative constituents' retail electric load.</P>
          <P>Petition Exhibit 2 at 3.</P>
        </FTNT>
        <P>In certain areas of the country, the RTOs/ISOs control allocation of transmission assets, rights and services, and the individual owners of transmission assets do not have the ability to engage in bilateral services arrangements involving those transmission assets, which are under RTO/ISO management and control. In other areas of the country, historical transmission services agreements, including those between NFP Electric Entities, are “grandfathered” from the RTO/ISO rules and procedures otherwise applicable to electric transmission services in that region.</P>
        <HD SOURCE="HD3">4. Fuel Delivered</HD>
        <P>The Petition describes a fourth category of transactions in which one NFP Electric Entity delivers to another NFP Electric Entity fuel to power electric generation facilities. The electric facilities owned and operated by NFP Electric Entities vary widely in terms of the fuel used by such facilities for generation. Fuel types may include nonfinancial commodities such as coal, natural gas, uranium products, heating oil, and biomass or waste products including wood chips, tires, and manure. In addition to the fuel, one NFP Electric Entity may provide to another NFP Electric Entity other services related to the fuel commodity, such as fuel procurement, fuel transportation over pipeline, rail, barge and truck, fuel storage, or fuel waste handling and storage services.<SU>38</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>38</SU>Petitioners also described a scenario in which one NFP Electric Entity may agree to manage for another NFP Electric Entity the operational basis or exchange (location/time of delivery) risk that arises from the recipient's NFP Electric Entity's location-specific, seasonal, or otherwise variable operational need for fuel delivered. Another example from Exhibit 2 of the Petition provides that:</P>
          <P>Joint power agency L supplies to municipal utility M a long-term supply of natural gas from a natural gas project (Project Entity Z) developed by L and other NFP Electric Entities for the purpose<PRTPAGE/>of fueling L's and M's (and other NFP Electric Entity owners of Project Entity Z's) natural gas-fired electric generating facilities in the California ISO market. M pays L for the cost of acquiring, developing and improving the natural gas Project Entity Z through direct “capital contributions” to Project Entity Z. In addition M pays L a monthly fee for the natural gas supplied from the natural gas project, composed of an operating cost fee component, an interstate pipeline transportation cost fee component and an operating reserve cost fee component. The natural gas-fired electric generating facility is to be used by M to supply a portion of its expected retail electric load.</P>
          <P>Petition Exhibit 2 at 3-4.</P>
        </FTNT>
        <PRTPAGE P="51003"/>
        <HD SOURCE="HD3">5. Cross-Commodity Transactions</HD>
        <P>The Petition describes such transactions as commercial agreements entered into between two NFP Electric Entities, including options, heat rate transactions and tolling arrangements, whereby the electric energy delivered to the recipient NFP Electric Entity is priced by reference to the fuel source used or useable by the provider NFP Electric Entity for generating such electric energy. Alternatively, the price paid for the fuel by the recipient NFP Electric Entity may be calculated by reference to the amount of electricity that the recipient NFP Electric Entity generates using such fuel.</P>
        <HD SOURCE="HD3">6. Other Goods and Services</HD>
        <P>The Petition notes that these agreements may involve sharing property rights, equipment, supplies and services, including construction, operation, and maintenance agreements, facilities management, construction management, energy management or other energy-related services tied to the electric facilities owned by, or operations of, one or both of the NFP Electric Entities, including emergency assistance or “mutual aid” arrangements.</P>
        <P>In some regions of the country, state regulators or RTOs/ISOs have established “demand side management programs” to assist utilities in managing the supply/demand balance that is essential to delivering reliable electric energy (which is not currently storable in commercial quantities). Therefore, some NFP Electric Entities engage in joint demand-side management programs with their retail electric customers whereby the customers agree to reduce service/load requirements during certain weather or emergency conditions. NFP Electric Entities may agree with each other to engage in joint demand-side management programs to conserve their collective generation resources and reduce costs, and to comply with their collective obligations to RTOs/ISOs, regional balancing authorities, and state or local regulators.</P>

        <P>The Petition also notes that NFP Electric Entities may provide each other with services related to the generation, transmission, and/or distribution facilities owned by each, or with respect to the maintenance (ongoing, outage, or emergency) or dispatch of generation units. Especially when there is a weather event or other unexpected outage which interrupts electric energy service to an NFP Electric Entity's customers, other NFP Electric Entities (and other electric utilities) in the geographic area will provide goods and services on an immediate basis, often without the opportunity of negotiating pricing or payment terms until the electric energy service has been restored to retail electric energy customers. These agreements between NFP Electric Entities may involve operating each other's facilities, sharing equipment, supplies and employees (<E T="03">e.g.,</E>line crews), and interfacing on each other's behalf with suppliers/vendors, regulators and reliability authorities and customers.</P>
        <HD SOURCE="HD3">7. Environmental Rights, Allowances or Attributes</HD>
        <P>The last category of transactions described in the Petition relates to a wide variety of Federal, regional, state, and local environmental rights, allowances or attributes required to operate a particular NFP Electric Entity's electric facilities or operations, or to fulfill a particular NFP Electric Entity's regulatory requirements. NFP Electric Entities may transact among themselves in environmental emissions allowances, offsets or credits (including carbon), renewable energy, distributed generation, clean energy or energy efficiency credits or attributes (which can be regional or state specific in nature, including “green tags”). NFP Electric Entities in a particular geographic region, whose available allowances may be directly useable to fulfill the needs of another NFP Electric Entity in the same region, often will directly transact with each other, rather than go to a non-NFP Electric Entity to negotiate a particular transaction.</P>
        <HD SOURCE="HD2">C. Definition and Scope of NFP Electric Entities</HD>
        <P>The Petition defines NFP Electric Entities as:</P>
        
        <EXTRACT>
          <P>(i) The United States, a State or any political subdivision of a State, or (ii) an “electric cooperative” that receives financing under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 megawatt hours of electricity per year, or [(iii) any other electric cooperative, whether or not such electric cooperative meets the requirements of clause (ii) above,]<SU>1</SU>or (iv) any agency, authority, instrumentality or department of any one or more of the foregoing, or a federally-recognized Indian tribe, or (v) any entity which is wholly owned, directly or indirectly, by any one or more of the foregoing. For purposes of this definition, an “electric cooperative” shall mean an “electric membership corporation” or an “electric power association” organized under State law, a “rural electric cooperative,” “cooperative providing electric services to consumers and farmers” or any similar entity referenced in other Federal, State and local laws and regulations, so long as any such entity is formed and continues to operate for the primary purpose of providing electric service to its members on a not-for-profit, cooperative basis, and is treated as a cooperative under the Federal tax law.<SU>39</SU>
            <FTREF/>
          </P>
        </EXTRACT>
        
        <FTNT>
          <P>
            <SU>39</SU>Petition at 14 (internal citations omitted).</P>
        </FTNT>
        
        <FP>Generally, the Petition represents that all NFP Electric Entities are “nonfinancial end users of Electric Operations-Related Transactions, and enter into such transactions only to hedge or mitigate commercial risks.”<SU>40</SU>
          <FTREF/>Summarized herein, the Petition describes in detail the specific classes of entities it believes fall within its proposed NFP Electric Entity definition, and justifies inclusion of each specific class based upon a common public interest rationale.</FP>
        <FTNT>
          <P>

            <SU>40</SU>Petition at 33. Petitioners explain that the term “nonfinancial end users” means an NFP Electric Entity that does not fall within the definition of a “financial entity” in CEA 2(h)(7)(C)(i) and that no NFP Electric Entity falls within that definition.<E T="03">See id.</E>at 33-34.</P>
        </FTNT>
        <HD SOURCE="HD3">1. FPA 201(f) Entities</HD>
        <P>“FPA 201(f) entities” is the first class of NFP Electric Entities defined by Petitioners. These entities include i) certain government and cooperatively-owned electric utilities (as described in FPA section 201(f)) and ii) federally-recognized Indian tribes that own or operate electric facilities (as determined by FERC case law).</P>
        <HD SOURCE="HD3">a. Government and Cooperatively-Owned Electric Utilities Described by FPA Section 201(f)</HD>
        <P>Petitioners seek relief from the CEA and Commission regulations there under for those entities explicitly described by FPA section 201(f)<SU>41</SU>
          <FTREF/>as being exempt from the plenary jurisdiction of FERC. Per the Petition, the first category of these entities includes certain government-owned electric utilities, including Federal electric utilities such as BPA and other Federal agencies that operate electric generating or transmission facilities,<SU>42</SU>
          <FTREF/>
          <PRTPAGE P="51004"/>and state-chartered electric utilities such as the New York Power Authority. Other examples of government-owned electric utilities include state or county utility boards or public utility districts formed under state or local law, joint action agencies or joint power agencies formed under state law to provide wholesale power supply and transmission services to member entities (each a Joint Action Agency), and other political subdivisions of a state.<SU>43</SU>
          <FTREF/>Finally, municipal utilities ranging in size from LPPC members such as the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District, to the smallest municipal electric utilities with fewer than 500 electric meters, are also contemplated as government electric utilities under FPA section 201(f).<SU>44</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>41</SU>
            <E T="03">See supra</E>note 19 and accompanying text.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>42</SU>Per the Petition, there are nine Federal electric utilities in the United States, which are part of several agencies of the United States Government:<PRTPAGE/>
          </P>
          <P>• The Army Corps of Engineers;</P>
          <P>• The Bureau of Indian Affairs and the Bureau of Reclamation in the Department of the Interior,</P>
          <P>• The International Boundary and Water Commission in the Department of State,</P>
          <P>• The Power Marketing Administrations in the Department of Energy (BPA, Western Area Power Administration, Southwestern Area Power Administration, and Southeastern Area Power Administration), and</P>
          <P>• The Tennessee Valley Authority (TVA).</P>
          <P>In addition, three Federal agencies operate electric generating facilities:</P>
          <P>• TVA, the largest Federal power producer;</P>
          <P>• The U.S. Army Corps of Engineers; and</P>
          <P>• The U.S. Bureau of Reclamation.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>43</SU>Per the Petition, a public power district or public utility district may be owned and operated by a city, county, state or regional agency.<E T="03">See, e.g.,</E>Public Utility District No. 1 of Chelan County, Washington (<E T="03">http://www.chelanpud.org/your-PUD.html</E>). An irrigation district is a utility organized under state law which generates electricity in the course of supplying water. For example, Imperial Irrigation District in California was formed in 1911 under the California Irrigation District Act, as described at<E T="03">http://www.iid.com/index.aspx?page=39</E>. Government-owned utilities are accountable to elected and/or appointed officials and focus on providing reliable and safe electricity service, keeping costs low and predictable for its customers, while practicing good environmental stewardship.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>44</SU>Per the Petition, a government owned or operated electric utility may be a department of the governmental entity, or may be organized as a separate agency, authority or instrumentality thereof.</P>
        </FTNT>
        <P>Per the Petition, the second category of entities described by FPA section 201(f) are electric cooperatives that either are financed by the U.S. Department of Agriculture's Rural Utilities Service (“RUS”), sell less than 4,000,000 megawatt hours of electricity per year, or meet the requirements of an “aggregated FPA 201(f) entity.” These electric cooperatives generally consist of (i) distribution cooperatives, which distribute electric energy service directly to their owner/member customers, and (ii) G&amp;T cooperatives, which are owned by distribution cooperatives and generate or purchase electricity and transmit it to their constituent distribution cooperatives for delivery to the distribution cooperatives' owner/member customers. Aggregated entities most commonly consist of a G&amp;T cooperative formed by its constituent distribution cooperative (NFP Electric Entity) members or, comparably, a Joint Action Agency which is formed by its constituent government-owned (NFP Electric Entity) utility members.</P>

        <P>As background, Petitioners explain that the FPA originally was enacted “to remedy rampant abuses in the<E T="03">investor-owned</E>electric utility industry”<SU>45</SU>
          <FTREF/>but that cooperatively-owned electric utilities are easily distinguishable from investor-owned electric utilities because they are “effectively self-regulating.”<SU>46</SU>
          <FTREF/>More importantly, of the major abuses considered by Congress as the impetus for the FPA legislation, “virtually none could be associated with the [electric] cooperative structure where ownership and control is vested in the consumer-owners.”<SU>47</SU>
          <FTREF/>Based on this understanding of the legislative history, FERC's predecessor, the Federal Power Commission (“FPC”), concluded that electric cooperatives financed under the Rural Electrification Act of 1936 (“REA”)<SU>48</SU>
          <FTREF/>were intended by Congress to be FPA 201(f) entities and exempt from the FPC's jurisdiction over “public utilities.”<SU>49</SU>
          <FTREF/>The FPC made such a determination in the 1960s notwithstanding the fact that, at that time, electric cooperatives were not expressly described in FPA section 201(f).<SU>50</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>45</SU>
            <E T="03">Salt River Project Agric. Improvement and Power District</E>v.<E T="03">Fed. Power Comm'n,</E>391 F. 2d 470, 475 (D.C. Cir. 1968) (emphasis added by Petitioners).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>46</SU>
            <E T="03">Id.</E>at 473 (elaborating that electric cooperatives are “completely owned and controlled by their consumer-members and only consumers can become members. They are non-profit. Each member has a single vote in the affairs of the cooperative, and services are essentially limited to members. No officer receives a salary for his services[,] and officers and directors are prohibited from engaging in any transactions with the cooperative from which they can earn any profit.”) (citation omitted).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>47</SU>
            <E T="03">Id.</E>at 475.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>48</SU>7 U.S.C. 901 et seq. The REA established the RUS as the body to administer financing to rural utilities.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>49</SU>
            <E T="03">See Dairyland Power Coop. et al,</E>v.<E T="03">Fed. Power Comm'n,</E>37 F.P.C. 12, 27 (1967).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>50</SU>As part of the Energy Policy Act of 2005 (“EPAct 2005”), Congress codified the previous interpretation by FERC in<E T="03">Dairyland, id.,</E>(affirmed by the D.C. Circuit Court in<E T="03">Salt River,</E>391 F. 2d 470) that electric cooperatives that receive financing under the REA should be considered FPA 201(f) entities. At the same time, Congress also expanded the FPA 201(f) exemption to electric cooperatives that sell less than 4 million megawatt hours per year, even if those electric cooperatives do not receive any financing from the RUS.<E T="03">See</E>Public Law 109-58, 1291, 119 Stat. 594, 985 (2005), amending FPA 201(f) “by striking “political subdivision of a state,” and inserting “political subdivision of a State, an electric cooperative that receives financing under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells less than 4,000,000 megawatt hours of electricity per year.”</P>
        </FTNT>
        <HD SOURCE="HD3">b. Federally-Recognized Indian Tribes</HD>
        <P>Federally-recognized Indian tribes that own or operate electric facilities are not described by FPA section 201(f), and thus would be subject to regulation as public utilities under the FPA. The Petition notes, however, that FERC and its predecessor, the FPC, and at least one court have determined such federally-recognized Indian tribes are to be treated as entities described in FPA section 201(f).<SU>51</SU>

          <FTREF/>To identify eligible Indian tribes, the Petition recommends that the Commission rely on determinations made by the Secretary of the Interior, periodically listed in the<E T="04">Federal Register</E>, of Indian tribes to be recognized by the U.S. government pursuant to Section 104 of the Act of November 2, 1994.<SU>52</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>51</SU>Per the Petition,<E T="03">see City of Paris, KY</E>vs.<E T="03">Fed. Power Comm'n,</E>399 F.2d 983 (D.C. Cir. 1968);<E T="03">Sovereign Power Inc.,</E>84 FERC ¶ 61,014 (1998);<E T="03">Confederated Tribes of the Warm Springs Reservation of Or., a Federally Recognized Indian Tribe, and Warm Springs Power Enterprises, a Chartered Enter. of the Confederated Tribes of the Warm Springs Reservation of Or.,</E>93 FERC ¶ 61,182 at 61,599 (2000) (concluding that “the Tribes are an instrumentality of the `United States, a State or any political subdivision of a state'” and that Warm Springs Power Enterprises, a Chartered Enterprise of the Tribes, was entitled to Tribes' Section 201(f) exemption.).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>52</SU>Public Law 103-454, 108 Stat. 4791, 4792 (codified at 25 U.S.C. 479a-1).</P>
        </FTNT>
        <P>Petitioners note that FERC's determination that such Indian tribes should be treated as FPA 201(f) entities was based on the fact that, in operating such electric facilities, the Indian tribes perform government functions—the funds generated by such electric operations would be used for governmental purposes and would decrease the need for federal funding. Additionally, Indian tribes are subject to Interior Department oversight. Finally, like the other government or government-owned electric entities described in FPA section 201(f), the Indian tribes are tax exempt or “not-for-profit” entities.</P>
        <HD SOURCE="HD3">2. Non-FPA 201(f) Electric Cooperatives</HD>

        <P>The Petition also requests relief for the very small number of cooperatively-owned electric utilities that do not meet the criteria of FPA section 201(f), either because they do not receive funding from RUS, sell more than 4,000,000 megawatt hours of electricity in a given year, or are not an “aggregated NFP<PRTPAGE P="51005"/>Electric Entity.”<SU>53</SU>
          <FTREF/>FERC has estimated that there were approximately fifteen electric cooperatives (of more than 900) which do not meet the requirements set forth in FPA section 201(f).<SU>54</SU>
          <FTREF/>Petitioners request that the Commission recognize such cooperatives as “appropriate persons,” in accordance with CEA sections 4(c)(1), 4(c)(2)(B), and 4(c)(3)(K), for purposes of an exemption under CEA section 4(c)(6). Petitioners represent as a threshold matter that, regardless of whether an electric cooperative meets the specific criteria of FPA section 201(f), all cooperatively-owned electric utilities share certain distinguishing features—a common not-for-profit public service mission and self-regulating governance model—that form the underlying rationale for the FPA section 201(f) exemption.<SU>55</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>53</SU>
            <E T="03">See</E>Petition at 23. The Petitioners note that under various state laws, cooperatively owned electric utilities, or electric cooperatives, are sometimes called “electric membership corporations” or “electric power associations.” In addition, Petitioners note that under certain sections of tax laws, state public utility laws or regulations, the FPA or the FERC's regulations, electric cooperatives are sometimes called “rural electric cooperatives” or “cooperatives providing electric services to consumers and farmers,” or by similar, but not identical, entity names.<E T="03">See</E>Petition at 2, note 5. In this Notice, as the Petitioners did in their Petition, the Commission uses the term “electric cooperatives” to encompass all of these entities, which are formed for the primary purpose of providing electric energy service to their owners/member customers on a not-for-profit basis, and which are treated as cooperatives under Federal tax laws.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>54</SU>
            <E T="03">Statement of Cynthia A. Marlette, General Counsel of FERC, before the Committee on Agriculture, Subcommittee on Conservation, Credit, Energy, and Research, United States House of Representatives</E>(July 30, 2008) (available at<E T="03">http://www.ferc.gov/eventcalendar/Files/20080730104611-Marlette.pdf</E>). NRECA believes that, of its current members, the following six entities are non-FPA 201(f) electric cooperatives: Pacific Northwest Generating Cooperative (PNGC Power), Golden Spread Electric Cooperative, Old Dominion Electric Cooperative, Wabash Valley Power Association, Wolverine Power Cooperative, and Deseret Power Electric Cooperative.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>55</SU>Similarly, to be treated as a “cooperative” under Federal tax law, regardless of 201(f) status, an electric cooperative must operate on a cooperative basis.<E T="03">See</E>26 U.S.C. 501(c)(12), 1381(a)(2)(C). As explained by the United States Tax Court in the seminal case of<E T="03">Puget Sound Plywood, Inc.</E>v.<E T="03">Commissioner of Internal Revenue,</E>operating on a cooperative basis means operating according to the cooperative principles of i) democratic member control, ii) operation at cost, and iii) subordination of capital.<E T="03">See</E>44 T.C. 305 (1965);<E T="03">see</E>also Internal Revenue Manual § 4.76.20.4 (2006) (elaborating on the cooperative principles by explaining that each member of a cooperative has one vote, a cooperative must allocate any excess operating revenue to its members in proportion to the amount of business it did with each, and that members share their interest, risk, and burden to obtain services or benefits rather than invest as equity owners). Additionally, for any electric cooperative to be exempt from Federal income taxation pursuant to IRC 501(c)(12), it must collect annually “85 percent or more of [its] income * * * from members for the sole purpose of meeting losses and expenses.” 26 U.S.C. 501(c)(12)(A). Accordingly, Petitioners argue that an electric cooperative, regardless of FPA section 201(f) status, lacks incentive or motivation to manipulate prices, disrupt market integrity, engage in fraudulent or abusive sales practices, or misuse customer assets because it: (1) Is a consumer cooperative; (2) is controlled by its members; (3) must operate at cost and “not operate either for profit or below cost;” (4) may not benefit its individual members financially; and (5) if exempt from Federal income taxation, must collect at least 85 percent of its income from members.</P>
        </FTNT>
        <P>In analyzing whether an entity qualifies as an appropriate person under CEA section 4(c)(3), Petitioners note that past Commission determinations have focused on the financial strength and sophistication of the persons for whom relief is being provided. Petitioners also posit that CEA section 4(c)(3)(K) allows the Commission to consider the operations management qualification of the person or class of persons in relation to the exempted transactions, as well as the person's or class of person's ability to execute the exempted transactions without additional regulatory protection by the Commission. When considered in light of these determinative factors, Petitioners argue that source of financing or total electric energy sales are not meaningful factors for purposes of differentiating between electric cooperatives that are appropriate for an exemption from the CEA and those that are not.<SU>56</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>56</SU>Petitioners argue that in promulgating CEA section 4(c)(6)(C), “Congress effectively makes the determination for the Commission that `entities described in FPA 201(f)' are `appropriate persons' entitled to the benefits of the exemptive order.” Petition at 23. Thus, by extension, Petitioners argue that if non-FPA 201(f) electric cooperatives are at least as financially sound and operationally capable as those electric cooperatives described by FPA section 201(f), then they should also be considered appropriate persons.</P>
        </FTNT>
        <P>First, the Petition argues that whether out of necessity due to insufficient Congressional appropriations, or by choice in order to find more appropriate or less expensive terms for certain needs, electric cooperatives may look to sources of financing beyond the RUS. Other nonprofit cooperative financing entities, such as the National Rural Utilities Cooperative Finance Corporation (“CFC”) or Co-Bank,<SU>57</SU>
          <FTREF/>exist to supplement RUS financing or provide additional financing resources and terms not available through the RUS. Petitioners note that electric cooperatives always can choose to borrow from private lenders or self-finance infrastructure investments and operations with ongoing revenues and reserves. Eligibility for RUS financing does not speak to an electric cooperative's operational soundness or financial strength.</P>
        <FTNT>
          <P>
            <SU>57</SU>Per the Petition, the CFC is a nonprofit cooperative entity formed in 1969 by NRECA's electric cooperative members. CFC provides access to financing to supplement the loan programs of the RUS. CFC is the largest non-governmental lender to America's rural electric systems, and nearly 200 electric cooperatives across the United States rely solely on CFC for financing. CFC has separately requested exemptive relief from the Commission for the swaps it enters into related to providing financing to its members' electric cooperatives. CoBank is a cooperative bank owned by electric cooperatives and agricultural cooperatives, and is a part of the Farm Credit Administration system.</P>
        </FTNT>
        <P>Next, the Petition suggests that greater electric energy sales could result in greater financial strength. Petitioners note that while very few electric cooperatives historically have sold 4,000,000 megawatt hours or more in a particular year, the success of the electric cooperative model means that there may be a small number of cooperatives in any particular year whose annual sales exceed the threshold.<SU>58</SU>
          <FTREF/>Furthermore, an electric cooperative's status under the FPA may fluctuate year-to-year depending on its annual megawatt sales, which always will fluctuate depending on usage trends, economic conditions, and weather patterns. Petitioners believe that Congress' policy decision to codify 4,000,000 megawatt hours per year as a threshold was based solely upon the fact that FERC, as well as other agencies, already used this level to identify “small utilities,” “small entities,” or “small businesses” that should be afforded protection from the costs and regulatory burdens imposed on larger entities.<SU>59</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>58</SU>Per the Petition's representation of data collected by NRECA, fewer than one percent of distribution cooperatives exceed the four million MWh annual sales threshold, as do approximately 24 of 66 G&amp;T cooperatives. The Commission understands that of those G&amp;T cooperatives that exceed the sales threshold in a given year, the majority are still FPA 201(f) entities because they receive financing from RUS.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>59</SU>
            <E T="03">See</E>Petition at 35-36. Counsel for Petitioners also represent that EPAct 2005 was largely a response to the electrical blackouts in the northeast United States during 2003 that later were found to be attributable to generation and transmission failures of the largest electric utility providers. Thus, Congress' chief concern in expanding the 201(f) exemption for electric cooperatives was ensuring that entities with substantial generation and transmission capacity remained subject to the plenary jurisdiction of FERC. Per the Petition, Congress did not make a policy decision that the electric cooperatives selling 4 million megawatt hours or more per year required regulation under FPA 201(f) and, where EPAct 2005 did give FERC additional discretionary jurisdiction over electric cooperatives, FERC has not chosen to exercise that discretionary authority to date. When FERC exercises its jurisdiction in certain instances, it allows non-FPA 201(f) electric cooperatives additional regulatory flexibility, subject to “self-regulation” by such cooperatives' member/owner boards, distinguishing the not-for-profit electric sector from investor-owned electric utilities. The very small number of electric cooperatives that do not meet the 4 million megawatts per year threshold at any point in time are, nonetheless, “self-<PRTPAGE/>regulating entities,” share the same cooperative governance structure, operate on a cooperative basis and are not-for-profit entities.</P>
        </FTNT>
        <PRTPAGE P="51006"/>
        <P>Thus, Petitioners argue that there is no implication under any of the FPA section 201(f) criteria for electric cooperatives that non-201(f) electric cooperatives are more or less creditworthy or financially sound, or more or less deserving of operational deference or regulatory preference, than electric cooperatives that meet one of the FPA section 201(f) criteria.<SU>60</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>60</SU>Petitioners note that non-FPA 201(f) electric cooperatives likely own more or larger generation and transmission assets, and therefore are arguably at least as financially sound and operationally qualified as electric cooperatives described in FPA section 201(f). Furthermore, these non-FPA 201(f) electric cooperatives may meet the financial criteria established in CEA section 4(c)(3)(F) for an “appropriate person” by having a net worth exceeding $1,000,000 or total assets exceeding $5,000,000.</P>
        </FTNT>
        <HD SOURCE="HD1">III. Commission Determinations</HD>
        <HD SOURCE="HD2">A. Scope of the Proposed Order</HD>
        <P>In the exemptive order proposed herein (the “Proposed Order”),<SU>61</SU>
          <FTREF/>the Commission is providing for a narrower scope of eligibility than requested by Petitioners. While the proposed exemptive relief is structured in a manner similar to the Petition's suggested approach and incorporates many of the same parameters,<SU>62</SU>
          <FTREF/>the Proposed Order uses different terminology to describe the pertinent categories of affected entities and transactions, and limits the exempted transactions to certain enumerated categories.<SU>63</SU>
          <FTREF/>The Proposed Order identifies (i) the entities eligible to rely on the exemption for purpose of entering into an exempt transaction (“Exempt Entities”); (ii) the agreement, contract, or transaction for which the exemption may be relied upon (“Exempt Non-Financial Energy Transactions”); and (iii) the provisions of the CEA that will continue to apply to Exempt Entities engaging in Exempt Non-Financial Energy Transactions. Accordingly, relief from the requirements of the CEA and Commission regulations provided in the Proposed Order will be available for only an Exempt Entity entering into an Exempt Non-Financial Energy Transaction with another Exempt Entity, subject to certain conditions.</P>
        <FTNT>
          <P>
            <SU>61</SU>The text of the Proposed Order is set forth in section IV of this Notice.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>62</SU>
            <E T="03">See</E>Petition Exhibit 3.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>63</SU>The Commission believes that the open-ended relief sought by the Petitioners makes it difficult to evaluate the full range of transactions that would be subject to exemption and, thus, to conduct legitimate public interest and CEA purpose determinations as required under CEA section 4(c). As the Commission is not providing the categorical relief requested by Petitioners at this time, it considered the Petition's secondary requests to provide i) an additional category for “trade options” and/or ii) delegated authority to Commission staff to review and approve new categories of exempted transactions for purposes of being eligible for the relief provided herein.<E T="03">See supra</E>note 26. Given Congressional intent that the Commission need not determine the nature of a product when providing 4(c) relief, the Commission does not believe it would be appropriate to provide specific relief to trade options as a category of transactions in the context of this proposed relief.<E T="03">See supra</E>note 7 and accompanying text. While it is possible that the scope of the transactions eligible for the relief proposed herein may include transactions that otherwise would qualify as trade options, the Commission need not make such a finding in the context of the proposed 4(c) exemption. Rather, the Commission has determined to limit the scope of the proposed exemption to Exempt Non-Financial Energy Transactions, as described in the Proposed Order, and the Commission is requesting comment on this description. As for the Petitioner's request regarding delegated authority to CFTC staff, the Commission has never in the past delegated authority to staff to make ad-hoc 4(c) determinations, and does not propose such a delegation herein. Additionally, the Commission is not providing relief retroactive to the enactment of Dodd-Frank, as requested by Petitioners. The Commission specifically requests comment as to whether it should provide such relief, and as to whether such relief would be necessary to provide any relief beyond that which has already been available via the Commission's Dodd-Frank implementation program, related exemptive orders, and staff no-action letters. The Commission also declines to propose, as was requested by Petitioners, that the transactions subject to the relief provided herein will not affect any entity's regulatory status under the CEA and Commission regulations. The Commission requests comment as to how the relief provided by the Proposed Order would be incomplete without such a provision and as to whether the Commission should include such a provision in the final exemptive order.</P>
        </FTNT>
        <HD SOURCE="HD3">1. Exempt Entities</HD>
        <P>The Commission is proposing to include three general categories of electric utilities as Exempt Entities in the relief provided herein: (i) Government-owned electric utilities described by FPA section 201(f); (ii) electric utilities owned by Federally-recognized Indian tribes, otherwise subject to regulation as public utilities under the FPA; and (iii) cooperatively-owned electric utilities, regardless of whether such utilities are described by FPA section 201(f), so long as they are treated as cooperative organizations under the Internal Revenue Code (“IRC”).<SU>64</SU>
          <FTREF/>Given the unique public service mission and governance structure of government, Indian tribe, and cooperatively-owned electric utilities (as compared to investor-owned public utilities), the Commission believes that such Exempt Entities, when engaged in Exempt Non-Financial Energy Transactions, have less financial incentive to engage in market manipulation or other types of abusive trade practices that may implicate the public interest and/or purposes of the CEA and therefore are appropriate for section 4(c) relief.<SU>65</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>64</SU>The Proposed Order also includes as an Exempt Entity any not-for-profit entity that is wholly owned, directly or indirectly, by any one or more of the entities included within the three general categories above.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>65</SU>The potential for manipulation described here differs from the situation in<E T="03">CFTC</E>v.<E T="03">Dairy Farmers of America.</E>In this case, a dairy cooperative was able to have a direct effect on a small illiquid spot cheese market that was a pricing component in the U.S. Department of Agriculture formula used to calculate milk prices under the Federal Milk Marketing Orders in an attempt to manipulate the price of Class III milk futures. The electric energy market situation is different because Exempt Entities do not report prices of Exempt Non-Financial Energy Transactions to indexes used to settle other derivative products that could benefit an Exempt Entity cooperative's members.</P>
        </FTNT>
        <P>Generally, Exempt Entities are limited to nonfinancial commercial end users that operate on a not-for-profit basis. The Proposed Order defines Exempt Entities as those entities that do not meet the definition of a “financial entity” in CEA section 2(h)(7)(C). The purpose of this criterion is to prevent a cooperative that exists primarily in order to provide financing for its members, and thus enters into a significant number of derivative transactions to hedge financial price risks, such as movements in interest rates, from benefiting from the relief provided in the Proposed Order.<SU>66</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>66</SU>The Commission also is proposing, in a separate 4(c) order, to extend the end-user exception found in CEA section 2(h)(7) to cooperatives that are financial entities as defined in CEA section 2(h)(7)(C) (“Financial Cooperative 4(c) Order). The purpose of this 4(c) relief is to extend the benefits of the end-user exception to cooperatives that meet the definition of a financial entity, but whose members otherwise would qualify for the end-user exception but choose to take advantage of the cooperative's low-cost access to financing.<E T="03">See</E>77 FR 41940 (July 17, 2012). The Commission notes, however, that for the policy reasons described herein as well as in the Financial Cooperative 4(c) Order, the extension of the end-user exception to financial cooperatives still requires reporting of swap transactions, whereas the relief provided in this Proposed Order does not.</P>
        </FTNT>
        <HD SOURCE="HD3">a. Electric Utilities Owned by Federal, State, or Local Government</HD>

        <P>Pursuant to the mandate in CEA section 4(c)(6)(C) and subject to the determinations described in Section III.B below, the Commission is proposing to include as Exempt Entities in its Proposed Order all government-owned electric utilities that are described by FPA section 201(f). FPA section 201(f) exempts from the plenary jurisdiction of FERC “any agency, authority, or instrumentality of” or “any corporation which is wholly owned, directly or indirectly, by” the federal government or a state or local government. These entities include, but are not limited to, all federal agency-owned electric generation and<PRTPAGE P="51007"/>transmission facilities,<SU>67</SU>
          <FTREF/>state-chartered electric utilities,<SU>68</SU>
          <FTREF/>utility boards or public utility districts formed under state or local law,<SU>69</SU>
          <FTREF/>and joint action or joint power agencies formed under state law to provide wholesale power supply and transmission services to member entities.<SU>70</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>67</SU>
            <E T="03">See supra</E>note 42.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>68</SU>These utilities include, but are not limited to, entities such as the New York Power Authority.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>69</SU>These utilities include, but are not limited to, municipal electric utilities, regardless of size.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>70</SU>These utilities include government-owned public power and public utility districts such as an irrigation district organized under state law that generates electric energy during the course of supplying water.</P>
        </FTNT>
        <HD SOURCE="HD3">b. Electric Utilities Owned by an Indian Tribe</HD>

        <P>Based on the determinations described in Section III.B below and pursuant to CEA section 4(c)(1), the Commission is proposing to include as Exempt Entities in its Proposed Order all electric facilities owned by federally-recognized Indian tribes that otherwise would be subject to FERC's plenary jurisdiction. For purposes of the Proposed Order, “federally-recognized” means that the Indian tribe has been documented by the Secretary of the Interior in the<E T="04">Federal Register</E>as having been recognized by the U.S. government, pursuant to section 104 of the Act of November 2, 1994.<SU>71</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>71</SU>Public Law 103-454, 108 Stat. 4791, 4792, as codified at 25 U.S.C. 479a-1.</P>
        </FTNT>
        <P>The Commission has determined that electric utilities owned by federally-recognized Indian tribes are no different substantively than government-owned electric utilities described immediately above for purposes of benefiting from the relief provided in the Proposed Order. Like government-owned electric utilities, electric utilities owned by a federally-recognized Indian tribe use funds generated from electric energy sales for purposes of running a tribal government. That is, instead of accruing profits for the benefit of private investors or shareholders, any excess operating revenues related to the generation or transmission of electricity are used by the Indian tribe to support the tribal governing body and reduce dependence on federal funding. Additionally, Indian tribes are tax-exempt or not-for-profit entities. Finally, the Commission notes that for many of the same reasons just noted, FERC has interpreted “instrumentalities” of government to include federally-recognized Indian tribes, thus treating electric facilities owned by these Indian tribes as FPA section 201(f) entities.<SU>72</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>72</SU>
            <E T="03">See supra</E>note 51.</P>
        </FTNT>
        <HD SOURCE="HD3">c. Electric Utilities Owned as Cooperative Organizations</HD>
        <P>Pursuant to CEA section 4(c)(6)(C), and subject to the determinations described in Section III.B below, the Commission is proposing to include as Exempt Entities in its Proposed Order all cooperatively-owned electric utilities that are described by FPA section 201(f).<SU>73</SU>
          <FTREF/>Additionally, pursuant to the exemptive authority provided in CEA section 4(c)(1) and subject to the determination described in Section III.B below, the Commission is proposing to include as Exempt Entities all other electric cooperatives that are not described by FPA section 201(f).<SU>74</SU>
          <FTREF/>By reference to the IRC in the Proposed Order, an “electric cooperative” means a non-profit or not-for-profit entity that is organized and continues to operate primarily to provide its members with electric energy services at the lowest cost possible and is taxed as an electric cooperative pursuant to IRC section 501(c)(12) or 1381(a)(2)(C).<SU>75</SU>

          <FTREF/>In order for an electric utility to be taxed as a cooperative, the electric utility must demonstrate that it operates in accordance with three principles: (i) Democratic member control; (ii) operation at cost (<E T="03">i.e.,</E>allocating any excess revenue, less cost of producing the revenue, among members in proportion to the amount of business done with each); and (iii) subordination of capital (<E T="03">i.e.,</E>no single contributor of capital to the cooperative can control the operations or receive most of the pecuniary benefits of operations, setting a cooperative apart from an investor).<SU>76</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>73</SU>FPA section 201(f) exempts from the plenary jurisdiction of FERC any electric cooperative that either is funded by the RUS, sells less than 4,000,000 megawatt hours per year of electricity, or qualifies as an aggregated FPA 201(f) entity. An aggregated FPA 201(f) entity consists of “any corporation which is wholly owned, directly or indirectly, by any one or more [FPA 201(f) entity].” These entities include Joint Action Agencies that are formed by constituent government-owned electric utilities described by FPA section 201(f).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>74</SU>
            <E T="03">See infra</E>Section III.B.4 for the Commission's analysis of why non-201(f) electric cooperatives are deemed to be appropriate persons for purposes of CEA section 4(c)(1) relief.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>75</SU>26 U.S.C. 501(c)(12), 1381(a)(2)(C). For purposes of the definition, the term “electric cooperative” includes a “rural electric cooperative.” The Commission understands that while not required for federal income tax status, many electric cooperatives are organized under state cooperative statutes as well. To the extent such laws impose requirements that conflict with those in IRC 501(c)(12), state law governs without jeopardizing 501(c)(12) status.<E T="03">See</E>Internal Revenue Manual § 4.76.20.8 (2006).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>76</SU>The term “cooperative” is not defined in IRC 501(c)(12) or 1381(a)(2)(C). Rather, common law has interpreted operation on a cooperative basis to mean the organization demonstrates the three principles noted above.<E T="03">See Puget Sound Plywood</E>v.<E T="03">Commissioner,</E>44 T.C. 305, 307-308 (1965). Electric cooperatives receive tax-exempt status if they meet the additional criteria of receiving at least 85 percent of revenue from their members for the sole purpose of meeting losses and expenses.<E T="03">See</E>IRC 501(c)(12)(A). Otherwise, electric cooperatives are subject to federal income tax.<E T="03">See</E>IRC 1381(a)(2)(C); Rev. Rul. 83-135.</P>
        </FTNT>
        <P>Exempt Entity electric cooperatives generally conform to one of two structures. First, a G&amp;T cooperative generates or purchases and transmits electric energy at wholesale prices to its constituent distribution cooperatives, which are members/owners.<SU>77</SU>
          <FTREF/>Second, a distribution cooperative sells electric energy to member/owner retail customers.<SU>78</SU>
          <FTREF/>Both structures are consumer cooperatives, meaning that they were formed by consumers for the “benefit of [such] members in their capacity as consumers.”<SU>79</SU>
          <FTREF/>As noted above, Exempt Entities do not include cooperatives that qualify as financial entities pursuant to CEA section 2(h)(7)(C), regardless of whether they are recognized as FPA section 201(f) entities.<SU>80</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>77</SU>G&amp;T cooperatives may also transmit electric energy to other G&amp;T cooperatives that are members based on “generation capacity” agreements as described by Petitioners.<E T="03">See supra</E>Section II.B.2.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>78</SU>Retail customers, in turn, use the electric energy to power everyday activities, whether commercial or residential in nature.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>79</SU>
            <E T="03">See Puget Sound Plywood,</E>44 T.C. at 306. Alternatively, producer cooperatives, such as large farming cooperatives, exist for the “benefit of the members in their capacity as producers.”<E T="03">See id.</E>The Commission notes that the public interest rationale for exempting consumer electric cooperatives articulated herein would not necessarily apply to other producer cooperatives, given differences in operational purposes and motivations behind forming such cooperatives.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>80</SU>Additionally, financial cooperatives are not tax-exempt entities pursuant to IRC 501(c)(12).<E T="03">See</E>Internal Revenue Manual § 4.76.20.5 (2006). The Commission intends for financial cooperatives that finance electric cooperatives, such as the CFC, to rely on the exemptive relief provided in the recently-proposed financial cooperative 4(c) order.<E T="03">See supra</E>note 66.</P>
        </FTNT>
        <HD SOURCE="HD3">2. Exempt Non-Financial Energy Transactions</HD>
        <P>The Proposed Order defines Exempt Non-Financial Energy Transactions as those agreements, contracts, or transactions entered into between Exempt Entities primarily in order “to satisfy existing or anticipated contractual obligations to facilitate the generation, transmission, and/or delivery of electric energy service to customers at the lowest cost possible, and the agreement, contract, or transaction is intended for making or taking physical delivery of the commodity upon which the agreement, contract, or transaction is based.”<SU>81</SU>
          <FTREF/>
          <PRTPAGE P="51008"/>Exempt Non-Financial Energy Transactions are limited to six categories of agreements, contracts, or transactions, as described in further detail in the Proposed Order,<SU>82</SU>
          <FTREF/>which facilitate: (i) The generation of electric energy by an Exempt Entity, including fuel supply; (ii) the purchase or sale and transmission of electric energy by/to an Exempt Entity; and (iii) compliance with electric system reliability obligations applicable to the Exempt Entity and its facilities or operations.</P>
        <FTNT>
          <P>
            <SU>81</SU>The Petition asserts that the purpose of<E T="03">all</E>transactions for which relief is sought (as described therein) must be “ `to hedge or mitigate commercial<PRTPAGE/>risks' (as such phrase is used in CEA Section 2(h)(7)(A)(ii)).”<E T="03">See</E>Petition at 4. The Commission believes, however, that based on the general descriptions and accompanying examples of Electric Operations-Related Transactions provided in Petition, some types of transactions may not be agreements, contracts, or transactions that the Commission traditionally has viewed to “hedge or mitigate commercial risk” as such phrase is used in CEA section 2(h)(7)(A)(ii). Due to the breadth and vagueness of some of the Petition's descriptions, it is unpractical for the Commission to identify every manifestation of an Electric Operations-Related Transaction that does not come within the Commission's jurisdiction, although it has attempted to do so to the extent that the Commission has already made an affirmative determination elsewhere as to the nature of a product described in the Petition.<E T="03">See infra</E>notes 86-90 and accompanying text. In any case, in order to provide Exempt Entities with regulatory certainty pursuant to CEA section 4(c), the Commission is defining Exempt Non-Financial Energy Transactions to include all agreements, contracts, or transactions entered into for the primary purpose of satisfying existing or anticipated contractual obligations to fulfill an Exempt Entity's public service mission that are intended for making or taking physical delivery of the underlying commodity. The Commission is seeking comments on the merits to this approach in defining Exempt Non-Financial Energy Transactions.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>82</SU>The descriptions of the categories of exempted transactions in the Proposed Order are based on the Commission's understanding of the transaction types as commonly known to the electric industry, as informed by the descriptions provided in the Petition and the Commission's past experience in these markets. While the categories are identified with the same terminology used in the Petition, the Commission notes that these categories are not described in identical terms and therefore do not necessarily describe the same scope of transactions as contemplated in the Petition for exemption. The Commission understands that many of the terms used to identify categories of transactions in the Petition are terms of art, commonly understood by the electric energy industry (including by Exempt Entities).</P>
        </FTNT>
        <P>When combined with the requirements for Exempt Entities described above, the Commission believes that Exempt Non-Financial Energy Transactions, as defined under the Proposed Order, will not be used for speculative purposes. That is, Exempt Entity counterparties to Exempt Non-Financial Energy Transactions must contemplate “delivery” of the underlying good or service at the time they enter into the agreement, contract, or transaction, whether that be for electric energy, generation capacity, access to transmission lines, fuel, or some combination of the foregoing.<SU>83</SU>
          <FTREF/>Furthermore, these transactions generally are not used by Exempt Entities for the primary purpose of hedging fluctuations in the price of electric energy or any other commodity related to the generation, transmission, and/or delivery of electric energy to customers.<SU>84</SU>
          <FTREF/>Finally, the majority of Exempt Non-Financial Energy Transactions are not suitable for trading on an exchange such as a registered DCM or SEF due to their highly bespoke nature, and cannot include transactions based on, derived from, or referencing any financial commodity or any metal, agricultural, crude oil or gasoline commodity that cannot be used as fuel to generate electric energy. For these reasons, and for the reasons discussed in the 4(c) analysis provided in Section III.B below, the Commission believes that these transactions are unlikely to have an impact on price discovery or the functioning of markets regulated by the Commission, and thus are appropriate for conditional relief from the requirements of the CEA and regulations thereunder, pursuant to CEA section 4(c).</P>
        <FTNT>
          <P>
            <SU>83</SU>Although some agreements may be settled through a book-out transaction, the transaction may never be entered into for speculative purposes.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>84</SU>A key component of bona fide hedging, as defined in the Commission's regulations, is reducing the risk of fluctuations in price. In contrast, Exempt Non-Financial Energy Transactions primarily are used for making or taking delivery of electric energy in the physical marketing channel.</P>
        </FTNT>
        <P>The unique nature of the electric energy industry, including the unique nature of the not-for-profit utility structure, influenced the Commission's choice of the transactions within the scope of the exemption in the Proposed Order. Supply of reliable, affordable electric energy has long been constrained by a limited amount of generation and transmission capacity, particularly in rural regions, that is capable of meeting peak demand. Unlike many physical commodities, electric energy is not capable of being purchased in large commercial quantities ahead of time, delivered, and stored for later consumption or use. That is, electric energy must be used or consumed on an as-needed basis.</P>
        <P>Demand, on the other hand, can be subject to unpredictable fluctuations due to emergency situations and changes in weather patterns, usage trends, and larger macroeconomic conditions. Thus, electric utilities, including Exempt Entities, negotiate highly customized commercial arrangements in order to fulfill these constantly fluctuating retail electric energy needs while still complying with national and regional environmental and reliability standards. Each category of Exempt Non-Financial Energy Transactions described in the Proposed Order represents a component of these larger bespoke commercial transactions used to fulfill an Exempt Entity's public service mission.<SU>85</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>85</SU>Each category represents a factor in the ultimate price paid by retail customers for electric energy. For example, “generation capacity” transactions represent the cost component of acquiring and maintaining the generation assets used to produce the electric energy. “Electric energy delivered” represents the actual cost of using the generation assets to produce the electric energy.</P>
        </FTNT>
        <P>The Commission notes that not every transaction described by the Petition is being included in the Commission's definition of Exempt Non-Financial Energy Transaction. Due to the Commission's recent joint final rule and interpretation with the SEC in which it further defined what is (and is not) a swap (“Products Release”),<SU>86</SU>
          <FTREF/>the Commission believes it would not be appropriate to provide 4(c) relief from the requirements of the CEA and Commission regulations thereunder for certain transactions that are not swaps.<SU>87</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>86</SU>77 FR 48208 (August 13, 2012).</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>87</SU>The Commission has determined to interpret the forward exclusion from the swap definition consistently with the forward exclusion from the “future delivery” definition.<E T="03">Id.</E>at 48227. Therefore, the forward exclusion from the swap definition applies equally to the forward exclusion from the “future delivery” definition.<E T="03">See id.</E>at 48233, note 271.</P>
        </FTNT>
        <P>Specifically, the Commission notes that, consistent with an example provided in the Products Release, the example of a Fuel Delivered transaction provided in Exhibit B of the Petition would be covered by the forward exclusion from the swap definition.<SU>88</SU>
          <FTREF/>Additionally, the Commission notes that, consistent with the general description provided in the Products Release, agreements, contracts, and transactions involving the category of Environmental Rights, Allowances or Attributes as specifically described by the Petition are covered by the forward exclusion from the swap definition.<SU>89</SU>

          <FTREF/>Accordingly, while these agreements, contracts, and transactions are not covered by the relief in the Proposed Order, they nonetheless are not subject to the requirements of the CEA and Commission regulations thereunder otherwise applicable to swaps, such as<PRTPAGE P="51009"/>clearing, trade execution, and reporting.<SU>90</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>88</SU>
            <E T="03">Compare</E>Petition Exhibit 2 at 3<E T="03">with</E>77 FR 48236.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>89</SU>
            <E T="03">Compare</E>Petition at 12 and Petition Exhibit 2 at 6<E T="03">with</E>77 FR 48233-234.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>90</SU>However, any agreement, contract, or transaction that is a swap referencing one of these agreements, contracts, and transactions may be subject to the jurisdiction of the CEA (<E T="03">e.g.,</E>an option or other swap on or related to the price of an environmental allowance).</P>
        </FTNT>
        <P>Finally, the descriptions of the categories of Exempt Non-Financial Energy Transactions in the Proposed Order do not constitute official Commission determinations as to those transactions' legal status as a product subject to the jurisdiction of the CEA.<SU>91</SU>
          <FTREF/>To the extent overlap exists between transactions described as being subject to the forward exclusion from the swaps definition in the Products Release and transactions described by the categories of Exempt Non-Financial Energy Transactions in the Proposed Order, the Commission is requesting public comment as to whether the Proposed Order should provide relief for such transactions.</P>
        <FTNT>
          <P>

            <SU>91</SU>As noted above, CEA section 4(c) does not compel the Commission to make such a determination prior to issuing 4(c) relief.<E T="03">See supra</E>note 7 and accompanying text. In contrast, and in addition to providing<E T="03">per se</E>determinations as to the product classification of certain transactions, the Products Release provides interpretive guidance as to how the Commission would analyze certain categories of transactions for purposes of determining whether a particular transaction is a swap. Accordingly, certain transactions covered by the categories of Exempt Non-Financial Energy Transactions in the Proposed Order may not be swaps.<E T="03">See, e.g.,</E>77 FR 48238 (noting that the Commission will interpret a “full requirements” contract with embedded volumetric optionality as a forward and not an option if the contract exhibits the features described in the Products Release in section II.B.2.(b)(ii)).</P>
        </FTNT>
        <HD SOURCE="HD3">3. Conditions</HD>
        <P>Under the Proposed Order, Exempt Entities would remain subject to certain conditions. First, the Commission's general anti-fraud, anti-manipulation, and enforcement authority found in CEA sections 2(a)(1)(B), 4b, 4c(b), 4o, 6(c), 6(d), 6(e), 6c, 6d, 8, 9 and 13, and Commission rules 32.4 and Part 180, which have application to both derivative and cash market transactions, will still apply. This condition will allow the Commission to initiate enforcement proceedings against Exempt Entities found to be engaged in manipulative, fraudulent, or otherwise abusive trading schemes when executing Exempt Non-Financial Energy Transactions with other Exempt Entities. Additionally, the Commission reserves its authority to inspect the books and records of Exempt Non-Financial Energy Transactions already kept in the normal course of business pursuant to the Commission's regulatory inspection authorities, in the event that circumstances warrant the need to gain greater visibility with respect to Exempt Non-Financial Energy Transactions as they relate to Exempt Entities' overall market positions and to ensure compliance with the terms of the Proposed Order.</P>
        <HD SOURCE="HD2">B. CEA Section 4(c) Considerations</HD>
        <P>The Commission is issuing the Proposed Order pursuant to authority found in CEA sections 4(c)(1) and 4(c)(6), among other reasons, because it believes that the proposed exemption will promote responsible economic or financial innovation and fair competition. In addition to criteria found in those provisions, both sources of exemptive relief require the Commission to make certain determinations based on criteria found in section 4(c)(2), as well.<SU>92</SU>
          <FTREF/>Accordingly, the Commission considers and proposes to determine that: (i) CEA section 4(a) should not apply to the transactions eligible for the proposed exemption (as transacted by the entities eligible for the proposed exemption), (ii) providing section 4(c) relief from the CEA for Exempt Non-Financial Energy Transactions (as entered into between Exempt Entities) is consistent with the public interest and the purposes of the CEA, (iii) Exempt Entities are “appropriate persons” within the meaning of the term as defined in CEA section 4(c)(3), and (iv) the proposed exemption will not have a material adverse effect on the ability of the Commission or any contract market to discharge its regulatory or self-regulatory duties under the CEA.</P>
        <FTNT>
          <P>
            <SU>92</SU>The Commission interprets the phrase, “the Commission shall, in accordance with [CEA section 4(c)(1) and 4(c)(2)], exempt from the requirements of [the CEA] * * *,” to mean that the Commission must make the determinations required under CEA sections 4(c)(1) and 4(c)(2) prior to providing the mandated relief.</P>
        </FTNT>
        <HD SOURCE="HD3">1. Responsible Economic or Financial Innovation and Fair Competition</HD>
        <P>The Commission believes that the exemption provided in the Proposed Order will promote financial innovation in electric energy markets facilitated by government and cooperatively-owned utilities. Government and cooperatively-owned electric utilities are not-for-profit entities whose sole purpose and mission is “to provide reliable electric energy to retail electric customers every hour of the day and every season of the year, keeping costs low and supply predictable, while practicing cost-effective environmental stewardship.”<SU>93</SU>
          <FTREF/>The consumer-as-owner cooperative model of electric utility, in partnership with municipal utilities and federal power agencies, has proven to be well-suited in developing innovative solutions to a complex array of issues related to extending electric energy generation and transmission resources into geographic areas of the United States where economies of scale do not exist, particularly those rural areas where traditional investor-owned utilities have chosen not to invest.<SU>94</SU>
          <FTREF/>In order to meet these electric energy challenges, however, the Exempt Entity business model has depended on a flexible operating environment, facilitated over time by other regulatory relief such as the exemption from FERC's plenary jurisdiction provided by FPA section 201(f).</P>
        <FTNT>
          <P>
            <SU>93</SU>Petition at 22.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>94</SU>For instance, investor-owned, private utilities lacked a profit incentive early on to invest the vast sums of capital necessary to expand electric energy service into rural areas where the requisite infrastructure was not already in place. With support from the RUS, as established under the FPA, electric cooperatives were first established in order to serve these rural communities.</P>
        </FTNT>
        <P>Due to factors largely beyond the control of Exempt Entities, the production, distribution, and usage needs of each Exempt Entity are constantly changing and have the potential to create the substantial commercial risk of not having enough generation, transmission, or distribution capacity for Exempt Entities to meet peak demand. Normally without the benefit of size and customer density, Petitioners contend that Exempt Entities have evolved to rely largely on each other in order to fulfill their public service mission of providing electric energy to their member-owners and retail customers at the lowest cost possible.<SU>95</SU>
          <FTREF/>The transactions listed in the Proposed Order reflect this type of innovation. Going forward, due to the limitations of standardized derivative contracts in providing the same type of highly customized resources to unique energy needs, it is important that Exempt Entities continue to have the flexibility to negotiate innovative new arrangements bilaterally for the purpose of achieving their mission.</P>
        <FTNT>
          <P>
            <SU>95</SU>For example, many G&amp;T cooperatives are formed exclusively by distribution cooperatives for the purpose of providing each distribution cooperative with its full requirements.</P>
        </FTNT>
        <P>Additionally, the Commission notes that, under current Commission regulations and guidance, it is unclear whether all Exempt Entities would qualify as eligible contract participants (“ECPs”), as such term is defined under CEA section 1a(18).<SU>96</SU>
          <FTREF/>Therefore, absent<PRTPAGE P="51010"/>relief such as that proposed herein, there is a risk that some Exempt Non-Financial Energy Transactions meeting the definition of a swap that involve non-ECP counterparties could not be traded away from a designated contract market.<SU>97</SU>
          <FTREF/>As described elsewhere in this release, Exempt Entities engage in Exempt Non-Financial Energy Transactions with one another on only a bilateral basis because such transactions are not replicable on an exchange (whether due to transaction size, customized terms, or other reasons). Therefore, the Commission is proposing the exemption in the Proposed Order to ensure that Exempt Entities have the regulatory certainty necessary to continue negotiating highly customized, physically-settled agreements, contracts, and transactions that serve their unique public service mission of providing reliable, affordable electric energy to customers.</P>
        <FTNT>
          <P>

            <SU>96</SU>7 U.S.C. 1a(18). In a recent final interpretive rule further defining entities under the CEA, as amended by the Dodd-Frank Act (“Entities Release”), the Commission declined to recognize certain entities such as not-for-profit natural gas<PRTPAGE/>utilities as having per se ECP status.<E T="03">See</E>Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant” and “Eligible Contract Participant,” 77 FR 30596, 30657 (May 23, 2012). The Commission noted that it was, however, considering granting relief to FPA section 201(f) entities, pursuant to new authority under CEA section 4(c)(6), which “[might] address the concerns of some commenters” such as entities similarly situated to the utilities represented by Petitioners.<E T="03">See id.</E>The relief provided in the Proposed Order is consistent with the Commission's Entities Release.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>97</SU>
            <E T="03">See</E>CEA section 2(e).</P>
        </FTNT>
        <P>The Commission also believes that the relief provided in the Proposed Order will not distort the competitive landscape. First, the transactions covered by the Proposed Order relate, in many instances, to longstanding and exclusive agreements between Exempt Entities. As such, the Commission does not believe that granting an exemption from the requirements of the CEA either would change the nature of these transactions, or cause an Exempt Entity to enter into an arrangement with another Exempt Entity instead of an investor owned utility or some other counterparty solely because the agreement would be covered by the exemption in the Proposed Order. The benefits of the relief provided in the Proposed Order to government utilities and electric cooperatives will maintain the current competitive landscape, thus permitting Exempt Entities to continue using Exempt Non-Financial Energy Transactions to fulfill their public service mission, as opposed to providing an unfair advantage to one group over another group.<SU>98</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>98</SU>The Commission notes that certain non-Exempt Entity electric utilities also may qualify for the end-user exception from the clearing and trade execution requirements for swaps under CEA section 2(h)(7) when engaged in bona fide hedging transactions.<E T="03">See</E>7 U.S.C. 2(h)(7)-(8).</P>
        </FTNT>
        <P>The CFTC is requesting comment on whether the Proposed Order may foster both financial or economic innovation and fair competition.</P>
        <HD SOURCE="HD3">2. Applicability of CEA Section 4(a)</HD>
        <P>The Commission does not believe that CEA section 4(a), the exchange-trading requirement for futures contracts, should apply to Exempt Non-Financial Energy Transactions as defined in the Proposed Order. When transacted between Exempt Entities, these transactions are highly negotiated and bespoke in nature, cater specifically to the Exempt Entities' respective electricity, fuel, or other needs, and are intrinsically related to the Exempt Entities' public-service mission. Accordingly, the Commission does not view Exempt Non-Financial Energy Transactions as being suitable for on-exchange trading, in large part because, as noted above, these transactions and markets are unlikely to have an impact on price discovery or the functioning of markets regulated by the Commission. Thus, CEA section 4(a) should not apply.</P>
        <HD SOURCE="HD3">3. Public Interest and the Purposes of the CEA</HD>
        <P>Exempting certain physical transactions between entities described in FPA section 201(f), and certain other electric cooperatives, from the provisions of the CEA and the regulations there under, subject to certain anti-fraud, anti-manipulation, and recordkeeping conditions, is consistent with public interest and the purposes of the CEA for the reasons discussed below.</P>
        <HD SOURCE="HD3">a. Public Interest</HD>
        <P>CEA section 3(a) describes Congress' findings as to certain national public interests facilitated by transactions subject to the Act. These public interests include “providing a means for managing and assuming price risks, discovering prices, or disseminating pricing information through trading in liquid, fair and financially secure trading facilities.”<SU>99</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>99</SU>CEA 3(a), 7 U.S.C. 5(a).</P>
        </FTNT>
        <P>Given the unique nature of each Exempt Non-Financial Energy Transaction conducted between Exempt Entities, such transactions are generally non-fungible and therefore cannot be traded as standardized products on an exchange. Accordingly, the universe of Exempt Non-Financial Energy Transactions generally occurs between Exempt Entities, thus constituting a mostly closed-loop of bilateral transactions. These bilateral transactions do not, by and large, face markets in which non-Exempt Entities such as investor-owned utilities engage in similar transactions, and therefore pose little (if any) threat of negatively affecting the liquidity, fairness, or financial security of trading derivative products on a registered designated contract market or swap execution facility in a material way.</P>
        <P>Exempt Non-Financial Energy Transactions, as they are defined and conditioned in the Proposed Order, are not susceptible to being used as a means for “assuming price risk,” or speculative activity. Rather, Exempt Entities may engage in these transactions for purposes of “managing” commercial risks that arise from electric operations in which the Exempt Entity engages to fulfill its public service mission of providing the most affordable and reliable electric energy possible to its members. Most of these commercial risks, however, are not directly related to fluctuations in the price of a commodity. Rather, Exempt Entities' main concern is a possible inability to satisfy contractual obligations to supply electric energy service to customers, which may arise from somewhat unpredictable fluctuations in demand for electric energy. These fluctuations, in turn, make it difficult for Exempt Entities to forecast their exact needs for generation and transmission capacity, the exact amount of fuel to be used for the generation of electric energy, and related activities necessary to facilitate the Exempt Entity's public service mission. Exempt Non-Financial Energy Transactions generally use variable pricing, as opposed to fixed pricing, meaning that they are entered into primarily to ensure that Exempt Entities are able to meet their production, transmission, and/or distribution obligations, as opposed to serving a traditional hedging function against the risk of price fluctuations of electricity or some other commodity.</P>

        <P>It is unlikely that an exchange could or would model a standardized derivative contract to duplicate the highly-customized economic terms of a bilaterally-negotiated Exempt Non-Financial Energy Transaction. Accordingly, such transactions between Exempt Entities are not susceptible to serving a price discovery function for any broader market or markets. A market participant seeking pricing information for a product or transaction involving the same underlying commodity would look to a standardized product or contract traded<PRTPAGE P="51011"/>on a regulated exchange involving that commodity.<SU>100</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>100</SU>The Commission notes that FERC recently has proposed requiring entities described in FPA 201(f) to be subject to limited reporting requirements concerning the availability and prices of wholesale electric energy. In EPAct 2005, Congress added Section 220 to the FPA (16 U.S.C. 824t) directing FERC to “facilitate price transparency in markets for the sale and transmission of electric energy in interstate commerce” with “due regard for the public interest, the integrity of those markets, fair competition, and the protection of consumers.”<E T="03">See Electricity Market Transparency Provisions of Section 220 of the Federal Power Act,</E>135 FERC ¶ 61,053 at PP 21-23 (Notice of Proposed Rulemaking) (2011) (collection of information from “any market participant” interpreted to include entities described in FPA 201(f)). The Commission specifically seeks comment on whether, in light of this proposal, the relief provided in the Proposed Order should be revised in the future to require reporting to an SDR for certain transactions.</P>
        </FTNT>
        <P>The CFTC is requesting comment on whether the Proposed Order is consistent with the public interest.</P>
        <HD SOURCE="HD3">b. Purposes of the CEA</HD>
        <P>Under section 3(b), in order to foster the public interests, it is the purpose of the CEA “to deter and prevent price manipulation or any other disruptions to market integrity; to ensure the financial integrity of all transactions subject to [the CEA] and the avoidance of systemic risk; to protect all market participants from fraudulent or other abusive sales practices and misuses of customer assets; and to promote responsible innovation and fair competition among boards of trade, other markets and market participants.”<SU>101</SU>
          <FTREF/>The Commission believes that the exemptive relief provided in the Proposed Order is consistent with these purposes.<SU>102</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>101</SU>CEA 3(b); 7 U.S.C. 5(b).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>102</SU>As noted in section III(B)(1) above, the Commission believes that the exemption will promote financial innovation and fair competition.</P>
        </FTNT>
        <P>Exempt Entities are either government or cooperatively-owned electric utilities organized under Federal tax laws as nonprofit or not-for-profit entities. All Exempt Entities share a public service mission of providing reliable electric energy to retail electric customers at all times, keeping costs low and supply predictable, while practicing cost-effective environmental stewardship. Elected or appointed government officials or citizens, or cooperative members or consumers, are directly involved in the day-to-day governance and management of an Exempt Entity's facilities and operations. There are no shareholders or outside investors to profit from the Exempt Non-Financial Energy Transactions, and any revenues accruing from operational risk management activities related to the electric facilities and operations are used to reduce the cost of electric service provided to cooperative members and retail customers.</P>
        <P>Accordingly, the Commission believes that Exempt Non-Financial Energy Transactions between Exempt Entities are less vulnerable to fraudulent or manipulative trading activity. Congress affirmatively recognized this in the context of wholesale electric energy markets when it exempted government and cooperatively-owned electric utilities from FERC's plenary jurisdiction under FPA section 201(f).<SU>103</SU>
          <FTREF/>Furthermore, the Proposed Order retains the Commission's general anti-fraud, anti-manipulation, and enforcement authority,<SU>104</SU>
          <FTREF/>and all Exempt Entities, regardless of status under FPA section 201(f), remain subject to FERC's market manipulation authority.<SU>105</SU>
          <FTREF/>Therefore, the relief provided in the Proposed Order does not interfere with the Commission's ability to police markets for manipulation and fraudulent trade practices.</P>
        <FTNT>
          <P>
            <SU>103</SU>
            <E T="03">See supra</E>notes 45-50 and accompanying text for a discussion of the FPC's findings in its<E T="03">Dairyland</E>decision, affirmed by the federal court in<E T="03">Salt River,</E>explaining the underlying rationale for exempting non-investor owned public utilities from the plenary jurisdiction of the FPC.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>104</SU>
            <E T="03">See</E>CEA sections 2(a)(1)(B), 4b, 4c(b), 4o, 6(c), 6(d), 6(e), 6c, 6d, 8, 9 and 13, and Commission rules 32.4 and Part 180.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>105</SU>
            <E T="03">See</E>FPA 222v; 16 U.S.C. 824v.</P>
        </FTNT>
        <P>Finally, the Commission does not view Exempt Non-Financial Energy Transactions between Exempt Entities as posing a systemic risk to the financial integrity or stability of markets. By definition, Exempt Entities do not consist of interconnected “financial institutions” subject to prudential regulation because they are “systemically important.”<SU>106</SU>
          <FTREF/>Exempt Non-Financial Energy Transactions do not involve financial market professionals, intermediaries, or any other entity registered with the Commission. Rather, Exempt Non-Financial Energy Transactions involve counterparty credit risk between only Exempt Entities, which share a common not-for-profit public service mission and are obligated to pursue operational, not financial, performance mandates. The Commission does not believe that imposing the requirements of the CEA on these transactions would reduce systemic risk or bolster the financial stability and soundness of the markets that the Commission does regulate. Accordingly, the Commission does not view the relief provided in the Proposed Order as being contrary to this purpose of the CEA.</P>
        <FTNT>
          <P>
            <SU>106</SU>Additionally, Exempt Entities do not consist of “financial entities” as the term is defined in CEA 2(h)(7)(C)(i).</P>
        </FTNT>
        <P>The CFTC is requesting comment on whether the Proposed Order is consistent with the purposes of the CEA.</P>
        <HD SOURCE="HD3">4. Appropriate Persons</HD>
        <P>Exempt Entities entering into Exempt Non-Financial Energy Transaction are “appropriate persons” for purposes of satisfying CEA section 4(c)(2) for different reasons, depending on the type of electric utility and the corresponding section of the CEA pursuant to which the relief in the Proposed Order is being granted. The Commission believes that Congress, in enacting CEA section 4(c)(6)(C), implicitly identified entities described by FPA section 201(f) as appropriate persons for purposes of qualifying for an exemption pursuant to CEA section 4(c)(6); otherwise, Congress would not have mandated that the Commission “shall * * * exempt” such entities upon making the required findings.<SU>107</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>107</SU>Alternatively, the Commission notes that many FPA section 201(f) entities are government-owned or sponsored, and therefore would qualify as appropriate persons under CEA section 4(c)(3)(H): “Any governmental entity * * * or political subdivision thereof, * * * or any instrumentality, agency, or department of any of the foregoing.”</P>
        </FTNT>
        <P>Next, for the reasons just noted, the Commission believes that federally-recognized Indian tribes that own electric facilities are analogous to government entities that sponsor electric facilities, and therefore qualify as appropriate persons pursuant to CEA section 4(c)(3)(H).<SU>108</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>108</SU>
            <E T="03">See id.</E>
          </P>
        </FTNT>
        <P>Finally, the Commission believes that non-FPA 201(f) electric cooperatives are appropriate persons for the reasons articulated in the Petition with respect to such cooperatives. Under CEA section 4(c)(3)(K), the Commission may determine other persons not enumerated elsewhere in section 4(c)(3) to be appropriate in light of their financial or other qualifications, or the applicability of appropriate regulatory protections. As previously noted, the Commission believes that Congress implicitly deemed FPA 201(f) entities to be appropriate persons, thus indicating that FPA 201(f) entities have the requisite financial soundness and operational capabilities to execute transactions that are exempt from the requirements of the CEA.</P>

        <P>For the purposes of a 4(c) exemption, the Commission believes that there is no material difference in an electric cooperative's financial soundness or operational capability based upon<PRTPAGE P="51012"/>whether or not the electric cooperative meets the criteria of FPA section 201(f).<SU>109</SU>
          <FTREF/>As Petitioners note, an electric cooperative that receives financing from a source other than the RUS or sells more than 4,000,000 megawatt hours of electricity per year is at least as financially sound and operationally qualified as electric cooperatives described in FPA section 201(f).<SU>110</SU>
          <FTREF/>The Commission notes that non-201(f) electric cooperatives arguably are more financially sound and operationally capable, as they likely maintain greater generation and transmission assets capable of facilitating the excess electric energy sales.<SU>111</SU>
          <FTREF/>Additionally, non-FPA 201(f) electric cooperatives that sell more than the threshold amount of electric energy per year often are in a position to benefit from better financing terms than those offered by the RUS based on having greater financial assets to post as collateral.</P>
        <FTNT>
          <P>
            <SU>109</SU>As previously noted, non-FPA 201(f) electric cooperatives are governed by the same public service mission as FPA 201(f) electric cooperatives (i.e., providing members with electric energy at the lowest cost possible).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>110</SU>In expanding the FPA 201(f) exemption to include RUS-financed electric cooperatives, Congress went a step further in EPAct 2005 by also including electric cooperatives that sold less than 4,000,000 megawatt hours of electricity per year. According to counsel for Petitioners, this provision was meant to capture certain small, distribution-only cooperatives that did not receive financing from the RUS.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>111</SU>Alternatively, certain non-FPA 201(f) electric cooperatives may qualify as appropriate persons based on their net worth exceeding $1,000,000 or total assets exceeding $5,000,000.<E T="03">See</E>CEA section 4(c)(3)(F).</P>
        </FTNT>
        <P>The CFTC is requesting comment as to whether the Exempt Entities identified in the Proposed Order are appropriate persons.</P>
        <HD SOURCE="HD3">5. Ability to Discharge Regulatory or Self-Regulatory Duties</HD>
        <P>The exemptive relief contained in the Proposed Order will not have a material adverse effect on the ability of the Commission or any contract market to discharge its regulatory or self-regulatory duties under the CEA. Nothing in the Proposed Order will prevent the Commission or any contract market from carrying out regulatory or self-regulatory duties for markets in a commodity that may also be involved in an Exempt Non-Financial Energy Transaction. As previously discussed, given the bespoke nature of these transactions, they are not connected to the pricing and market characteristics of other related derivative products that trade on exchange. The Commission is less concerned about the regulatory oversight of Exempt Entities as they are “effectively self-regulating” bodies subject to government or cooperative-member management.</P>
        <P>The CFTC is requesting comment as to whether the Proposed Order will have a material adverse effect on the ability of the Commission or any contract market to discharge its regulatory or self-regulatory duties under the CEA.</P>
        <HD SOURCE="HD1">IV. Proposed Order</HD>
        <P>The Commission has determined, pursuant to Commodity Exchange Act (“CEA”) sections 4(c)(1) and 4(c)(6), to exempt from all requirements of the CEA and Commission regulations issued there under any Exempt Non-Financial Energy Transaction entered into solely between Exempt Entities, subject to the following definitions and conditions:</P>
        <P>A.<E T="03">Exempt Entity</E>shall mean (i) any government-owned electric facility recognized under Federal Power Act (“FPA”) section 201(f), 16 U.S.C. 824(f); (ii) any electric facility otherwise subject to regulation as a “public utility” under the FPA that is owned by an Indian tribe recognized by the U.S. government pursuant to section 104 of the Act of November 2, 1994, 25 U.S.C. 479a-1; (iii) any cooperatively-owned electric utility, regardless of status pursuant to FPA section 201(f), so long as the utility is treated as a “cooperative” organization under Internal Revenue Code section 501(c)(12) or 1381(a)(2)(C), 26 U.S.C. 501(c)(12), 1381(a)(2)(C), and exists for the primary purpose of providing electric energy service to its member/owner customers at the lowest cost possible; or (iv) any not-for-profit entity that is wholly owned, directly or indirectly, by any one or more of the foregoing. The term “Exempt Entity” does not include any “financial entity,” as defined in CEA section 2(h)(7)(C).</P>
        <P>B.<E T="03">Exempt Non-Financial Energy Transaction</E>means any agreement, contract, or transaction based upon a “commodity,” as such term is defined and interpreted by the CEA and regulations there under, so long as the primary purpose of the agreement, contract, or transaction is to satisfy existing or anticipated contractual obligations to facilitate the generation, transmission, and/or delivery of electric energy service to customers at the lowest cost possible, and the agreement, contract, or transaction is intended for making or taking physical delivery of the commodity upon which the agreement, contract, or transaction is based. The term “Exempt Non-Financial Energy Transaction” excludes agreements, contracts, and transactions based upon, derived from, or referencing any interest rate, credit, equity or currency asset class, or any grade of a metal, agricultural product, crude oil or gasoline that is not used as fuel for electric energy generation. Exempt Non-Financial Energy Transactions are limited to the following categories, which may exist as stand-alone agreements or as components of larger agreements that combine only the following categories of transactions:</P>
        <P>1.<E T="03">Electric Energy Delivered</E>transactions consist of arrangements in which a provider Exempt Entity agrees to deliver a specified amount of electric energy to a recipient Exempt Entity within a defined geographic service territory, load, or electric system over the course of an agreed period of time. Such transactions include “full requirements” contracts, under which one Exempt Entity becomes obligated to provide, and the recipient Exempt Entity becomes obligated to take, all of the electric energy the recipient needs to provide reliable electric service to its fluctuating electric load over a specified delivery period at one or multiple delivery points or locations, net of any electric energy the recipient is able to produce through generation assets that it owns.</P>
        <P>2.<E T="03">Generation Capacity</E>transactions consist of agreements in which a recipient Exempt Entity purchases from a provider Exempt Entity the right to call upon a specified amount of the provider Exempt Entity's electric energy generation assets to supply electric energy within a defined geographic area, regardless of whether such right is ever exercised for the purposes of the recipient Exempt Entity meeting its location-specific reliability obligations. Such transactions also may specify certain conditions that must exist prior to exercising the right to use an Exempt Entity's generation assets, or establish an agreement between Exempt Entities to share pooled electric generation assets in order to satisfy regionally-imposed demand side management program requirements.</P>
        <P>3.<E T="03">Transmission Services</E>transactions consist of arrangements in which a provider Exempt Entity owning transmission lines sells to a recipient Exempt Entity the right to deliver a specified amount of the recipient Exempt Entity's electric energy from one designated point on the transmission lines to another, at a set price per wattage and over a certain time period, in order for the recipient Exempt Entity to provide electric energy to its customers. Such transactions may include ancillary services related to transmission such as congestion management and system losses.<PRTPAGE P="51013"/>
        </P>
        <P>4.<E T="03">Fuel Delivered</E>transactions include arrangements used to buy, sell, transport, deliver, or store fuel used in the generation of electric energy by an Exempt Entity. Additionally, Fuel Delivered transactions may include an agreement to manage the operational basis or exchange (<E T="03">i.e.,</E>location or time of delivery) risk of an Exempt Entity that arises from its location-specific, seasonal or otherwise variable operational need for fuel to be delivered.</P>
        <P>5.<E T="03">Cross-Commodity Pricing</E>transactions include arrangements such as heat rate transactions and tolling agreements in which the price of electric energy delivered is based upon the price of the fuel source used to generate the electric energy. Cross-Commodity transactions also include fuel delivered agreements in which the price paid for fuel used to generate electric energy is based upon the amount of electric energy produced.</P>
        <HD SOURCE="HD3">6. Other Goods and Services</HD>
        <P>Other Goods and Services transactions consist of arrangements in which the Exempt Entities enter into an agreement to share the costs and economic benefits related to construction, operation, and maintenance of facilities for the purposes of generation, transmission, and delivery of electric energy to customers. In a full requirements contract between Exempt Entities that share ownership of generation assets, the provider Exempt Entity may determine how generation to meet the recipient Exempt Entity's full requirements will be allocated among the provider's independent generation assets, the jointly-owned generation assets, and the recipient's independent generation assets. Other Goods and Services transactions also may include agreements between Exempt Entities to operate each other's facilities, share equipment and employees, and interface on each other's behalf with third parties such as suppliers, regulators and reliability authorities, and customers, regardless of whether such agreements are triggered as contingencies in emergency situations only or are applicable during the normal course of operations of an Exempt Entity.</P>
        <P>C.<E T="03">Conditions.</E>The relief provided herein is subject to the Commission's general anti-fraud, anti-manipulation and enforcement authority under the CEA, including but not limited to CEA sections 2(a)(1)(B), 4b, 4c(b), 4o, 6(c), 6(d), 6(e), 6c, 6d, 8, 9 and 13, and Commission rules 32.4 and Part 180. Additionally, the Commission reserves its authority to inspect books and records kept in the normal course of business that relate to Exempt Non-Financial Energy Transactions between Exempt Entities pursuant to the Commission's regulatory inspection authorities. The relief provided herein does not affect the jurisdiction of FERC or any other government agency over the entities and transactions described herein. Furthermore, the Commission reserves the right to revisit any of the terms and conditions of the relief provided herein and alter or revoke such terms and conditions as necessary in order for the Commission to execute its duties and advance the public interests and purposes under the CEA, including a determination that certain entities and transactions described herein should be subject to the Commission's full jurisdiction.</P>
        <HD SOURCE="HD1">V. Request for Comment</HD>
        <P>The Commission requests comment on all aspects of the issues presented by this proposed order. The Commission specifically requests comment on the scope of both the (a) transactions and (b) entities which would be eligible to rely upon the exemption provided in the proposed order. In addition, the Commission requests comment on the following questions:</P>

        <P>1. Should the Commission limit the scope of Exempt Entities to only those electric utilities described by FPA section 201(f), given that Congress limited CEA section 4(c)(6)(C) thereto (or, is it an appropriate use of the Commission's general exemptive authority pursuant to CEA section 4(c)(1) to exempt the non-FPA 201(f) electric cooperatives)? If it is appropriate to expand the scope beyond FPA 201(f) entities, should the Commission still limit the scope of electric cooperatives included as Exempt Entities to only those cooperatives with tax exempt status under the IRC (<E T="03">i.e.,</E>those that receive at least 85 percent of revenue from the cooperative membership)?</P>
        <P>2. In light of other exemptive authority that was added to the CEA by the Dodd-Frank Act, such as the end-user exception in CEA section 2(h)(7)(A), is relief pursuant to CEA section 4(c) necessary and/or appropriate for Exempt Non-Financial Energy Transactions between Exempt Entities as described herein?</P>
        <P>3. Should the Commission require that any Exempt Entity that is described by FPA section 201(f) relying on the relief provided herein notify the Commission of its change in status under FPA section 201(f) as a condition of such relief? If so, what purpose(s) would this serve?</P>
        <P>4. For the purpose of issuing this Proposed Order, the Commission concluded that Exempt Non-Financial Energy Transactions do not serve a price discovery purpose. Please comment on the Commission's assessment. What facts and circumstances would require the Commission to revisit its analysis and alter the relief proposed herein such that reporting to an SDR should be required for certain transactions?<SU>112</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>

            <SU>112</SU>Commenters should consider what impact, if any, it would have on the response to the question posed if FERC finalizes its recent proposal to require price transparency reporting in electric wholesale markets, even by FPA 201(f) entities.<E T="03">See supra</E>note 100.</P>
        </FTNT>
        <P>5. The Commission believes that the Proposed Order's definition of “Exempt Non-Financial Energy Transaction,” in combination with the definition of “Exempt Entity”, should ensure that Exempt Non-Financial Energy Transactions cannot be used for speculative purposes. Please comment on whether the Proposed Order would so foreclose the possibility for speculative trading and, if not, how the Proposed Order should be modified to achieve such a goal.</P>
        <P>6. The Commission has proposed that electric facilities owned by only federally-recognized Indian tribes be included as Exempt Entities for purposes of the relief provided in the Proposed Order. The Commission specifically requests comment on every aspect of the Proposed Order as it relates to Indian tribes.</P>
        <P>7. The Commission has limited its definition of Exempt Non-Financial Energy Transaction to six categories. Do any of the transactions described by or covered under these categories fail to come under the Commission's jurisdiction, such that relief pursuant to CEA section 4(c) is unnecessary and/or inappropriate, either due to an interpretation in the Products Release or otherwise?</P>

        <P>8. Per the Petition's request, should the Commission stipulate that the relief provided in the Proposed Order (i) applies retroactively to the enactment of the Dodd-Frank Act and (ii) that transactions covered by the relief will not be considered by the Commission for any purpose which affects or may affect an Exempt Entity's regulatory status under the CEA (<E T="03">e.g.,</E>in determining status as a swap dealer or major swap participant)?</P>

        <P>9. The Petition requested that the Commission provide categorical relief by including “any other agreement, contract, or transaction to which an Exempt Entity is a party.” Should the Commission provide such categorical relief, so long as the primary purpose of<PRTPAGE P="51014"/>the agreement, contract, or transaction is to satisfy existing or anticipated contractual obligations to facilitate the generation, transmission, and/or delivery of electric energy service to customers at the lowest cost possible, and the contract is intended to be settled through physical delivery of the underlying commodity?</P>
        <P>10. Can any Exempt Non-Financial Energy Transaction, as defined in the Proposed Order, or any component of an Exempt Non-Financial Energy Transaction, be used to hedge price risk in an underlying commodity? If so, should the Commission explicitly exclude such price-hedging transactions from the definition of Exempt Non-Financial Energy Transaction?</P>
        <HD SOURCE="HD1">VI. Related Matters</HD>
        <HD SOURCE="HD3">A. Regulatory Flexibility Act</HD>
        <P>The Regulatory Flexibility Act (“RFA”) requires that Federal agencies consider whether proposed rules will have a significant economic impact on a substantial number of small entities and, if so, provide a regulatory flexibility analysis on the impact. The relief provided in the Proposed Order may be available to some small entities, because they may fall within standards established by the Small Business Administration (“SBA”) defining entities with electric energy output of less than 4,000,000 megawatt hours per year as a “small entity.”<SU>113</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>113</SU>U.S. Small Business Administration,<E T="03">Table of Small Business Size Standards Matched to North American Industry Classification System Codes,</E>footnote 1 (effective March 26, 2012), available at<E T="03">http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.</E>
          </P>
        </FTNT>
        <P>The Commission has considered carefully the potential effect of this Proposed Order on small entities and has determined that the proposed order will not have a significant economic impact on any Exempt Entity, including any entities that may be small. Rather, the Proposed Order relieves the economic impact that the Exempt Entities, including any small entities that may opt to take advantage of it, by exempting certain of their transactions from the application of substantive regulatory compliance requirements of the CEA and Commission regulations there under. Significantly, the Proposed Order prevents new requirements for swaps, such as clearing, trade execution and regulatory reporting, from affecting transactions that Exempt Entities traditionally have engaged in to serve their unique public service mission of providing reliable, affordable electric energy service to customers. Absent such relief and to the extent Exempt Non-Financial Energy Transactions would qualify as swaps, small entities covered by the Proposed Order could be subject to compliance with all aspects of the CEA and its implementing regulations. Accordingly, the Chairman, on behalf of the Commission, hereby certifies pursuant to 5 U.S.C. 605(b) that the Proposed Order will not have a significant economic impact on a substantial number of small entities.</P>
        <HD SOURCE="HD2">B. Paperwork Reduction Act</HD>
        <P>Under the Paperwork Reduction Act (“PRA”), an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number from the Office of Management and Budget (“OMB”). The Proposed Order does not contain any new information collection requirements that would require approval of OMB under the PRA.<SU>114</SU>
          <FTREF/>While the Commission reserves its authority to inspect books and records kept in the normal course of business that relate to Exempt Non-Financial Energy Transactions between Exempt Entities pursuant to the Commission's regulatory inspection authorities, the Commission is not imposing a recordkeeping burden with respect to the books and records of Exempt Non-Financial Energy Transactions that already are kept in the normal course of business. Moreover, any inspection of books and records typically only will occur in the event that circumstances warrant the need to gain greater visibility with respect to Exempt Non-Financial Energy Transactions as they relate to Exempt Entities' overall market positions and to ensure compliance with the terms of this Proposed Order. Accordingly, each inquiry would be specific to the facts triggering the inquiry, and thus will not involve “answers to identical questions posed to * * * ten or more persons,” as the term “collection of information” is defined in the PRA in pertinent part.<SU>115</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>114</SU>44 U.S.C. 3501<E T="03">et seq.</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>115</SU>44 U.S.C. 3502(3)(a)(1).<E T="03">See also</E>44 U.S.C. 3518(c)(1)(B)(i) and (ii) (excluding collections of information related to administrative investigations against specific individuals or entities, and any subsequent civil actions).</P>
        </FTNT>
        <HD SOURCE="HD2">C. Consideration of Costs and Benefits</HD>
        <HD SOURCE="HD3">1. Introduction</HD>
        <P>Section 15(a) of the CEA<SU>116</SU>
          <FTREF/>requires the Commission to consider the costs and benefits of its actions before promulgating a regulation under the CEA or issuing certain orders. Section 15(a) further specifies that the costs and benefits shall be evaluated in light of five broad areas of market and public concern: (1) Protection of market participants and the public; (2) efficiency, competitiveness and financial integrity of futures markets; (3) price discovery; (4) sound risk management practices; and (5) other public interest considerations. The Commission considers the costs and benefits resulting from its discretionary determinations with respect to the Section 15(a) factors.</P>
        <FTNT>
          <P>
            <SU>116</SU>7 U.S.C. 19(a).</P>
        </FTNT>
        <P>Prior to the passage of the Dodd-Frank Act, swap market activity was not regulated. In the wake of the financial crisis of 2008, Congress adopted the Dodd-Frank Act, in part, to address conditions with respect to swap market activities.<SU>117</SU>
          <FTREF/>Among other things, the Dodd-Frank Act amends the CEA to establish a comprehensive regulatory framework for swaps.<SU>118</SU>
          <FTREF/>In amending the CEA, however, the Dodd-Frank Act preserved the Commission's authority under CEA section 4(c)(1) to “promote responsible economic or financial innovation and fair competition” by exempting any transaction or class of transactions, including swaps, from select provisions of the CEA.<SU>119</SU>
          <FTREF/>It also added new subparagraph 4(c)(6)(C) to the CEA specifically directing the Commission, in accordance with 4(c)(1) and (2), to exempt agreements, contracts, or transactions entered into between FPA 201(f) entities if doing so “is consistent with the public interest and the purposes of” the CEA.<SU>120</SU>
          <FTREF/>For reasons explained above,<SU>121</SU>
          <FTREF/>the Commission proposes to exercise its<PRTPAGE P="51015"/>authority under CEA section 4(c)(1) and 4(c)(6) with regard to Exempt Non-Financial Energy Transactions<SU>122</SU>
          <FTREF/>engaged in between Exempt Entities,<SU>123</SU>
          <FTREF/>subject to the Commission's general anti-fraud, anti-manipulation, and enforcement authority pursuant to CEA sections 2(a)(1)(B), 4b, 4c(b), 4o, 6(c), 6(d), 6(e), 6c, 6d, 8, 9 and 13, and Commission rules 32.4 and Part 180. Additionally, the Commission has reserved its authority to inspect the books and records of Exempt Non-Financial Energy Transactions already kept in the normal course of business pursuant to the Commission's regulatory inspection authorities, in the event that circumstances warrant the need to gain greater visibility with respect to Exempt Non-Financial Energy Transactions as they relate to Exempt Entities' overall market positions and to ensure compliance with the terms of this Proposed Order.</P>
        <FTNT>
          <P>
            <SU>117</SU>As the Financial Crisis Inquiry Commission explained:</P>
          <P>The scale and nature of the [OTC] derivatives market created significant systemic risk throughout the financial system and helped fuel the panic in the fall of 2008: millions of contracts in this opaque and deregulated market created interconnections among a vast web of financial institutions through counterparty credit risk, thus exposing the system to a contagion of spreading losses and defaults.</P>

          <P>Financial Crisis Inquiry Commission, “The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States,” Jan. 2011, at 386, available at<E T="03">http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf</E>
          </P>
        </FTNT>
        <FTNT>
          <P>
            <SU>118</SU>
            <E T="03">See</E>discussion above at note [13]. Dodd-Frank Act section 721 (amending the CEA to add new section 1a(47)) defines the term “swap” to include “[an] option of any kind that is for the purchase or sale, or based on the value, of 1 or more * * * commodities * * *”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>119</SU>Section 4(c)(1) of the CEA.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>120</SU>As discussed above in section I.A., CEA sections 4(c)(2) and 4(c)(3) further articulate the conditions precedent to granting an exemption under 4(c)(1) and 4(c)(6)(C), including that the exempted agreements, contracts, or transactions be entered into between “appropriate persons,” as that term is defined in 4(c)(6)(3).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>121</SU>
            <E T="03">See</E>section III.B. above.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>122</SU>As discussed and further described above in section III.A.2., these consist of: any agreement, contract, or transaction based upon a “commodity,” as such term is defined and interpreted by the CEA and regulations there under, so long as the primary purpose of the agreement, contract, or transaction is to satisfy existing or anticipated contractual obligations to facilitate the generation, transmission, and/or delivery of electric energy service to customers at the lowest cost possible. When entered into, Exempt Non-Financial Energy Transactions shall always be intended for making or taking physical delivery of the commodity upon which the transaction is based, and such commodity shall never be based upon, derived from, or reference any interest rate, credit, equity or currency asset class, or any grade of a metal, agricultural product, crude oil or gasoline that is not used as fuel for electric generation. Exempt Non-Financial Energy Transactions are limited to the following categories: electric energy delivered, generation capacity, transmission services, fuel delivered, cross-commodity pricing, and other goods and services.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>123</SU>As discussed and further described above in section III.A.1, these are: (i) Any government-owned electric facility recognized under Federal Power Act (“FPA”) section 201(f), 16 U.S.C. 824(f); (ii) any electric facility otherwise subject to regulation as a “public utility” under the FPA that is owned by an Indian tribe recognized by the U.S. government pursuant to section 104 of the Act of November 2, 1994, 25 U.S.C. 479a-1; (iii) any cooperatively-owned electric utility, regardless of status pursuant to FPA section 201(f), so long as the utility is treated as a “cooperative” organization under Internal Revenue Code section 501(c)(12) or 1381(a)(2)(C), 26 U.S.C. 501(c)(12), 1381(a)(2)(C), and exists for the primary purpose of providing electric energy service to its members at the lowest possible cost; or iv) any not-for-profit entity that is wholly owned, directly or indirectly, by any one or more of the foregoing.</P>
        </FTNT>
        <P>In the discussion that follows, the Commission considers the costs and benefits of the exemptive order proposed herein (the “Proposed Order”) to the public and market participants generally, and to Exempt Entities specifically. As earlier discussed in sections I.A. and III.A.2., to exempt transactions under CEA section 4(c), the Commission need not first determine—and is not determining—whether the transactions subject to the exemption fall within the CEA. However, to capture all potential costs and benefits, this consideration assumes that the transactions may now or in the future be swaps.<SU>124</SU>
          <FTREF/>In the event the subject transactions would not be subject to the Commission's jurisdiction, the costs and benefits of this Proposed Order relative to the baseline scenario discussed below would be zero.</P>
        <FTNT>
          <P>
            <SU>124</SU>
            <E T="03">Accord</E>note 81,<E T="03">supra.</E>
          </P>
        </FTNT>
        <HD SOURCE="HD3">2. Baseline</HD>
        <P>The Commission considers the costs and benefits of this Proposed Order against a baseline scenario of non-action. In other words, the proposed baseline is the alternative situation that would result if the Commission declines to exercise its exemptive authority under CEA 4(c). This means that to the extent Exempt Non-Financial Energy Transactions engaged in between Exempt Entities qualify as a transaction subject to regulation under the CEA, they are subject to the regulatory regime that the CEA, as amended by the Dodd-Frank Act, and Commission regulations prescribes.</P>
        <P>Under the post-Dodd-Frank Act regulatory regime for swaps, Exempt Entity swap counterparties that, as represented in the Petition, are “nonfinancial end-users of [Exempt Non-Financial Energy Transactions entered into] only to hedge or mitigate commercial risks”<SU>125</SU>
          <FTREF/>are subject to the Commission's general anti-fraud, anti-manipulation, and enforcement authority,<SU>126</SU>
          <FTREF/>as well as requirements for swap data reporting<SU>127</SU>
          <FTREF/>and recordkeeping.<SU>128</SU>
          <FTREF/>CEA section 2(h)(7) (the “end-user exception”), excepts a swap from swap clearing<SU>129</SU>
          <FTREF/>and trade execution,<SU>130</SU>
          <FTREF/>requirements if one counterparty is “not a financial entity; * * * is using swaps to hedge or mitigate commercial risk; and * * * notifies the Commission, in a manner set forth by the Commission, how it generally meets its financial obligations associated with entering into non-cleared swaps.” However, unless both Exempt Entity counterparties are “eligible contract participants” (“ECPs”),<SU>131</SU>
          <FTREF/>CEA section 2(e) prohibits them from executing a swap other than on a registered DCM, including directly transacting the swap bilaterally.<SU>132</SU>
          <FTREF/>Against this baseline scenario, with respect to an Exempt Non-Financial Energy Transaction that is a swap, the public and market participants, including Exempt Entities, would experience the costs and benefits related to the regulations, noted above, for them as swaps. As considered below, the Proposed Order could alter these costs and benefits.</P>
        <FTNT>
          <P>
            <SU>125</SU>Petition at 33.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>126</SU>
            <E T="03">See</E>CEA sections 2(a)(1)(B), 4b, 4c(b), 4o, 6(c), 6(d), 6(e), 6c, 6d, 8, 9 and 13, and Commission rules 32.4 and Part 180.</P>
        </FTNT>
        <FTNT>
          <P>

            <SU>127</SU>The CEA as amended by the Dodd-Frank Act contemplates two types of reporting to swap data repositories (“SDRs”). First, is real-time reporting: For every swap executed, certain transaction information, including price and volume, is to be reported to an SDR”) “as soon as technologically practicable.” CEA section 2(a)(13)(A) &amp; (C);<E T="03">see also</E>Real-Time Public Reporting of Swap Transaction Data, 77 FR 1182 (Jan. 9, 2012) (adopting 17 CFR part 43 regulations to implement real-time reporting). For swaps executed off of a DCM or SEF and for which neither counterparty is a swap dealer or major swap participant—as the Commission expects Exempt Non-Financial Energy Transactions engaged in between Exempt Entities would be—the real-time reporting obligation for the transaction falls to one of the counterparties, as agreed between themselves. 17 CFR § 43.3(a)(3) Second, for each swap, additional information beyond that required in real-time reports must be reported to an SDR in a “timely manner as may be prescribed by the Commission.” CEA section 2(a)(13)(G);<E T="03">see also</E>Swap Data Recordkeeping and Reporting Requirements 77 FR 2136 (Jan. 13, 2012) (adopting 17 CFR part 45); Swap Data Recordkeeping and Reporting Requirements: Pre-enactment and Transition Swaps 77 FR 35200 (June 12, 2012) (adopting 17 CFR part 46).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>128</SU>Swap Data Recordkeeping and Reporting Requirements 77 FR 2136 (Jan. 13, 2012) (adopting 17 CFR part 45); Swap Data Recordkeeping and Reporting Requirements: Pre-enactment and Transition Swaps 77 FR 35200 (June 12, 2012) (adopting 17 CFR part 46).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>129</SU>CEA section 2(h)(1)(A)(it “shall be unlawful for any person to engage in a swap unless that person submits such swap for clearing * * * if the swap is required to be cleared”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>130</SU>Transactions subject to the clearing requirement of CEA section 2(h)(1) must be executed on either a designated contract market (“DCM”) or a swap execution facility (“SEF”). CEA section 2(h)(8).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>131</SU>The term is defined in CEA section 1a(18).<E T="03">See also</E>Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant,” and “Eligible Contract Participant,” 77 FR 30596 (May 23, 2012).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>132</SU>CEA section 2(e).</P>
        </FTNT>

        <P>Also, the post-Dodd-Frank Act regulatory regime retains requirements applicable to “contract[s] of sale of a commodity for future delivery” within the meaning of CEA section 4(a) (commonly referred to as futures contracts), including that section's exchange-trading requirement for such contracts. Though the Commission need not first determine whether the transactions subject to exemption under CEA section 4(c) are futures or swaps, it has defined the boundaries for inclusion within the Exempt Non-Financial Energy Transaction category in a way that comports with the distinctions between futures contracts subject to CEA section 4(a) and non-<PRTPAGE P="51016"/>futures transactions.<SU>133</SU>
          <FTREF/>For this reason, the Commission foresees no costs or benefits relative to the baseline attributable to exempting Exempt Non-Financial Energy Transactions as proposed from CEA section 4(a).</P>
        <FTNT>
          <P>
            <SU>133</SU>
            <E T="03">See, e.g.,</E>
            <E T="03"/>Statement of Policy Concerning Swap Transactions, 54 Fed. Reg. 30694 (CFTC July 21, 1989). For example, the transactions encompassed by this proposed exemption would be limited to those that are highly bespoke and thus not suitable for exchange trading, executed exclusively bilaterally, off-exchange between counterparties, and undertaken with the intent of making or taking physical delivery of the commodity upon which the transaction is based.</P>
        </FTNT>
        <P>The Commission is also cognizant of the regulatory landscape as it existed before the Dodd-Frank Act's enactment. Any Exempt Non-Financial Energy Transactions engaged in between Exempt Entities that now would qualify as swaps (excluding options) were not regulated prior to Dodd-Frank. Thus, measured against a pre-Dodd-Frank Act reference point, Exempt Entities engaging in such swaps could experience costs attributable to the conditions placed upon the Proposed Order. For example, Exempt Entities were not subject to the Commission's regulatory inspection authorities with respect to swap transaction records prior to the enactment and effectiveness of the Dodd-Frank Act.</P>
        <P>As a general matter, in its cost-benefit considerations, where reasonably feasible, the Commission endeavors to estimate quantifiable dollar costs. The costs and benefits of the Proposed Order, however, are not presently susceptible to meaningful quantification. Accordingly, the Commission discusses proposed costs and benefits in qualitative terms.</P>
        <HD SOURCE="HD3">3. Costs</HD>
        <HD SOURCE="HD3">To Exempt Entities</HD>
        <P>The proposed rule is exemptive and would provide Exempt Entities with relief from regulatory requirements of the CEA for the narrow category of Exempt Non-Financial Energy Transactions engaged in between them. As with any exemptive rule or order, the proposed rule is permissive, meaning that potentially eligible affiliates are not required to elect it. Accordingly, the Commission assumes that an entity would rely on the Proposed Order only if the anticipated benefits warrant the costs. Here, the Proposed Order provides for the continued application of the anti-fraud, anti-manipulation, and enforcement provisions of the CEA and its implementing regulations, and additionally reserves the Commission inspection authority for books and records that the Exempt Entities currently prepare and retain<SU>134</SU>
          <FTREF/>—all continuations of the baseline regulatory scheme established in the CEA. Accordingly, they generate no incremental costs.</P>
        <FTNT>
          <P>

            <SU>134</SU>For example, Exempt Entities that receive financing from the Rural Utilities Service (“RUS”) are required to keep records of all master agreements and term contracts for the procurement of goods and services.<E T="03">See</E>18 CFR 125.3 (Schedule of records and periods of retention); RUS Bulletin 180-2. Under the books and records inspection authority contained in the Proposed Order, the Commission could request any of these procurement agreements that document an Exempt Non-Financial Energy Transaction for the purchase or sale of “electric energy delivered,” as such term is defined in the Proposed Order.</P>
        </FTNT>
        <HD SOURCE="HD3">To Market Participants and the Public</HD>
        <P>The Commission has considered whether an exemption from the CEA as proposed for Exempt Non-Financial Energy Transactions engaged in between Exempt Entities will expose market participants and the public to the risks that the CEA guards against—a potential cost. For a variety of reasons, the Commission believes that it does not. These reasons include the following:</P>
        <P>• The highly bespoke nature of Exempt Non-Financial Energy Transactions, as well as the fact that they are used to manage unique electricity industry operational risks, rather than price risk of an underlying commodity, make them ill-suited for exchange trading and/or to serve a useful price discovery function.<SU>135</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>135</SU>As explained in section III.B.3.d, above, the commercial risks that Exempt Non-Financial Energy Transactions face generally are not related to fluctuations in the price of a commodity, but are rather related to electricity retail demand fluctuations. Exempt Entities engage in Exempt Non-Financial Energy Transactions primarily to assure their ability to meet production, transmission, and/or distribution obligations, not to hedge against the risk of electricity prices rising or falling.</P>
        </FTNT>
        <P>• The incentive structure for Exempt Entities—as limited to not-for-profit governmental, tribal, and IRC section 501(c)(12) or section 1381(a)(2)(c) electric cooperative entities—is substantially different than that of investor-owned entities and poses a low risk for fraud, manipulation, or other abusive practices.<SU>136</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>136</SU>
            <E T="03">See</E>section II.A.1. above.</P>
        </FTNT>
        <P>• Exempt Non-Financial Energy Transactions are executed bilaterally within a closed-loop of non-financial, not-for-profit electric utility entities, are not market facing, and therefore have little, if any, ability to materially impact liquidity, fairness or financial security of derivative product trading on DCMs or SEFs.<SU>137</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>137</SU>
            <E T="03">See</E>section III.B.3.a. above.</P>
        </FTNT>
        <P>• This closed-loop trading characteristic, combined with the nonfinancial nature of the transacting parties, also limits the ability of Exempt Non-Financial Energy Transactions to create systemic risk.<SU>138</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>138</SU>
            <E T="03">See</E>section III.B.3.b. above.</P>
        </FTNT>
        <P>Moreover, besides carefully defining the boundaries for Exempt Non-Financial Energy Transactions between Exempt Entities, the Commission's Proposed Order incorporates conditions designed to protect the markets subject to the Commission's jurisdiction. Specifically, the Commission proposes to retain the general anti-fraud, anti-manipulation, and enforcement authority contained in the CEA and its implementing regulations. Additionally, the Commission is also retaining authority to inspect books and records, pursuant to its regulatory inspection authorities, in the event that circumstances warrant the need to gain greater visibility with respect to Exempt Non-Financial Energy Transactions as they relate to Exempt Entities' overall market positions and compliance with this Proposed Order. Accordingly, based on the expectations that—for the narrow subset of electric industry transactions covered by this Proposed Order—the risk potential, at most, is remote and the prescribed conditions appropriate to contain them to the extent they may emerge, the Commission foresees no material costs attributable to risk associated with the Proposed Order.</P>
        <P>The Commission has also considered the potential for the Proposed Order to exact a competitive cost by affording Exempt Entities an advantage vis-à-vis other market participants that may not be entitled to the exemption. As not-for-profit governmental, tribal, and cooperative entities as defined in the Proposed Order, the Commission understands that the mandate for Exempt Entities is to provide reliable, affordable electricity for their customers. While the Proposed Order will afford Exempt Entities flexibility and/or reduced compliance burden to manage their operational risks relative to non-Exempt Entities, the Commission has no basis to expect that in so doing the Proposed Order will impose a competitive cost on the markets subject to its jurisdiction.</P>
        <HD SOURCE="HD3">4. Benefits</HD>
        <HD SOURCE="HD3">To Exempt Entities</HD>

        <P>Measured against the baseline scenario, the Proposed Order expectedly will benefit Exempt Entities by lessening the likelihood that CEA compliance would diminish their ability and/or incentive to continue to engage in Exempt Non-Financial Energy Transactions that, as described in the<PRTPAGE P="51017"/>Petition and above,<SU>139</SU>
          <FTREF/>are an operational tool relied upon by Exempt Entities to effectively execute their public service mission. It will also benefit them by avoiding regulatory costs to comply with CEA swap requirements whether or not any Exempt Non-Financial Energy Transaction actually constitutes a swap.<SU>140</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>139</SU>Petition at 12 (transactions for which exemption requested “are intrinsically related to the needs of * * * the [not-for-profit] Electric Entities * * * which arise from their respective electric facilities and ongoing electric operations and public service obligations” (citation omitted)); section III.A.2, above (the proposed order defines Exempt Non-Financial Energy Transactions as any agreement, contract, or transaction entered into primarily “to satisfy existing or anticipated contractual obligations to facilitate the generation, transmission, and/or delivery of electric energy service to customers at the lowest cost possible * * * .”).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>140</SU>As discussed below with respect to benefits to market participants and the public, Exempt Entities' members and other customers should be the indirect beneficiaries of these avoided costs.</P>
        </FTNT>
        <P>To the extent any Exempt Non-Financial Energy Transactions are swaps, as a threshold matter Exempt Entities could not execute them off of a registered DCM unless both Exempt-Entity counterparties qualify as ECPs.<SU>141</SU>
          <FTREF/>The relevant criteria for determining ECP status varies for Exempt Entities that are governmental entities (or political subdivisions of governmental entities) and those that are not. For the former, governmental Exempt Entities must meet certain line of business requirements,<SU>142</SU>
          <FTREF/>or “own * * * and invest * * * on a discretionary basis $50,000,000 or more in investments.<SU>143</SU>
          <FTREF/>For the latter, non-governmental Exempt Entities either must have: (a) Assets exceeding $10,000,000; (b) a guarantee for obligations; or, (c) greater than $1,000,000 net worth and “enter * * * into an agreement, contract, or transaction in connection with the conduct of the entity's business or to manage the risk associated with an asset or liability owned or incurred or reasonably likely to be owned or incurred by the entity in the conduct of the entity's business.”<SU>144</SU>
          <FTREF/>While some of the larger Exempt Entities in particular may meet the definitional requirements to be ECPs, the Petition does not provide information evidencing that all Exempt Entities for all types of Exempt Non-Financial Energy Transaction clearly would.<SU>145</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>141</SU>CEA section 2(e).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>142</SU>That is, have “a demonstrable ability, directly or through separate contractual arrangements, to make or take delivery of the underlying commodity [or] incur * * * risks, in addition to price risk, related to the commodity.” CEA section 1a(17)(A)(i) &amp; (2) (as referenced in CEA section 1a(18)(A)(vii)(aa)). CEA section 1a(18)(A)(vii) specifies alternative criteria to qualify for governmental-entity ECP status that do not appear relevant given that Exempt Entities are not SDs, MSPs, or financial entities.</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>143</SU>CEA section 1a(18)(A)(vii)(bb).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>144</SU>CEA section 1a(18)(A)(v).</P>
        </FTNT>
        <FTNT>
          <P>
            <SU>145</SU>Furthermore, a comment letter submitted by two of the Petitioners in connection with the Commission rulemaking on the Further Definition of “Swap Dealer,” “Security-Based Swap Dealer,” “Major Swap Participant,” “Major Security-Based Swap Participant,” and “Eligible Contract Participant,” states that some not-for-profit consumer-owned electric utilities “may not meet the financial tests listed in the definition of ECP due to the relatively small size of their physical assets.” Letter from NRECA, APPA and LPPC dated February 22, 2011, RIN 3235-AK65, at 12.</P>
        </FTNT>
        <P>If Exempt Entities are not ECPs, and given that Exempt Non-Financial Energy Transactions, as proposed, are bespoke to an extent that makes them incapable of exchange trading, absent Commission action non-ECP Exempt Entities would be unable to engage bilaterally in any Exempt Non-Financial Energy Transactions that are swaps. Relative to a circumstance that would preclude non-ECP Exempt Entities from continuing to engage in Exempt Non-Financial Energy Transactions that are swaps, the Proposed Order would afford the benefit of allowing the use of transactions that are closely related to Exempt Entities' public service mission to provide affordable, reliable electricity. The Proposed Order would also save Exempt Entities the time and expense that would be necessitated to determine if they were ECPs. For, with the Proposed Order, ECP status becomes largely irrelevant, while without it, Exempt Entities may have to concern themselves with ECP status determinations as a threshold for engaging in certain transactions.</P>
        <P>The Proposed Order would also avoid potential costs that Exempt Entities might incur to comply with swap data reporting and recordkeeping requirements as articulated in Commission regulations for any Exempt Non-Financial Energy Transactions that were swaps.<SU>146</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>146</SU>
            <E T="03">See</E>Real-Time Public Reporting of Swap Transaction Data, 77 FR 1182, 1232-40 (Jan. 9, 2012) (adopting 17 CFR part 43 regulations to implement real-time reporting). Swap Data Recordkeeping and Reporting Requirements 77 FR 2136, 2176-93 (Jan. 13, 2012) (adopting 17 CFR part 45); Swap Data Recordkeeping and Reporting Requirements: Pre-enactment and Transition Swaps 77 FR 35200, 35217-25 (June 12, 2012) (adopting 17 CFR part 46).</P>
          <P>Swap Data Recordkeeping and Reporting Requirements 77 FR 2136 (Jan. 13, 2012) (adopting 17 CFR part 45); Swap Data Recordkeeping and Reporting Requirements: Pre-enactment and Transition Swaps 77 FR 35200 (June 12, 2012) (adopting 17 CFR part 46).</P>
        </FTNT>
        <P>Even for Exempt Non-Financial Energy Transactions ultimately determined not to be swaps, if Exempt Entities perceived some potential that they could be swaps (now or as evolved in the future), Exempt Entities would likely need to expend resources to monitor contemplated transactions and make status determinations as to them. Moreover, the bespoke nature of these transactions could complicate the ability to generalize conclusions across transactions, potentially resulting in a need for more frequent, individualized assessments that could multiply determination costs. While the Commission lacks a basis to meaningfully project any such benefit in dollar terms, qualitatively it expects that the benefit would include the avoided costs of training staff to differentiate between swap and non-swap transactions and, in some cases at least, to obtain an expert legal opinion to support a determination. Additionally, uncertainty about whether a certain transaction would or would not be deemed a swap could prompt an Exempt Entity to forego a beneficial transaction or to substitute a transaction that served the operational needs less effectively. Avoiding a result that would diminish the use of operationally-efficient Exempt Non-Financial Energy Transactions is another benefit.</P>
        <P>To Market Participants and the Public</P>
        <P>For reasons similar to those discussed above in the Commission's analysis of the Proposed Order under CEA sections 4(c)(1) and (6), the Commission expects that this Proposed Order will benefit the public generally.<SU>147</SU>
          <FTREF/>
        </P>
        <FTNT>
          <P>
            <SU>147</SU>In that the impacted transactions are undertaken exclusively in a closed-loop environment from which financial participants are absent, the Commission does not foresee that derivative market participants beyond Exempt Entities will realize either a cost (as earlier discussed) or benefit impact.</P>
        </FTNT>
        <P>First, the Commission believes that the Proposed Order aligns with the beneficial public interests served by the FPA, which—in addition to granting comprehensive jurisdiction over the electric industry to FERC—reflects, through FPA section 201(f)'s exemption, Congress' implicit view that, with respect to certain activities, a regulatory light-touch and avoidance of overlapping regulatory regimes for governmental and small cooperative electric utilities serves the public-interest objectives of the FPA.<SU>148</SU>
          <FTREF/>The<PRTPAGE P="51018"/>Commission interprets CEA section 4(c)(6)(C), directing the Commission to provide an exemption for FPA 201(f) entities to the extent consistent with the public interest and the CEA, as an extension of that view. Accordingly, by tailoring the Proposed Order for FPA section 201(f) entities (as well as others deemed equally suitable) in a careful manner intended to preserve the public interests protected under the CEA, the Proposed Order accommodates the public interests of both statutes.</P>
        <FTNT>
          <P>
            <SU>148</SU>
            <E T="03">See Salt River Project Agricultural Improvement and Power District</E>v.<E T="03">Federal Power Commission,</E>391 F. 2d 470, 475 (D.C. Cir. 1968) (“But of the 19 major abuses summarized [in a Federal Trade Commission report to Congress on the electric utility industry], virtually none could be associated with the cooperative structure where ownership and control is vested in the consumer-owners* * * Consequently, the attention of the 74th Congress, in enacting the Federal Power Act, was focused on the sorts of evils associated exclusively with investor-owned utilities”) In<E T="03">Salt<PRTPAGE/>River,</E>the court considered whether the FPA 201(f) exemption, which at the time did not expressly encompass REA-financed cooperatives—entities subject to “extensive [REA] supervision over the planning, construction and operation of the facilities [REA] finances”—fell within the exemption, as the FPC had interpreted that it did.<E T="03">Id.</E>at 473. The court found that, among other factors, the Congressional inaction in the face of 30 years of administrative practice extending FPA 201(f) exemptive treatment to REA-financed cooperatives reinforced the FPC's interpretation that REA-financed cooperatives were exempt from FPA coverage as instrumentalities of the Government under Section 201(f).<E T="03">Id.</E>at 476.</P>
        </FTNT>
        <P>Second, in that the proposed Exempt Entities share the same public-service mission of providing affordable, reliable electricity to their customers, those aspects of the Proposed Order that benefit Exempt Entities directly should indirectly benefit their customers as well. For example, the Proposed Order would enable non-ECP Exempt Entities to engage in swap Exempt Non-Financial Energy Transactions that would be barred to them under CEA section 2(e), or facilitate the likelihood that they would continue to engage in Exempt Non-Financial Energy Transactions that they might choose to forego for regulatory uncertainty or costs reasons absent the exemption. In these circumstances, Exempt Entity customers should be the ultimate beneficiaries (via supply reliability and affordability) of the operational risk-management and efficiencies that Exempt Non-Financial Energy Transactions afford. Similarly, to the extent that the Proposed Order enables Exempt Entities to avoid compliance and/or monitoring costs they would otherwise incur, the non-profit structure, compliance with requisite Internal Revenue Code conditions, and public service mission that Exempt Entities share means that the cost savings should be passed through to members and other customers proportionately in the form of lower electricity prices and/or higher revenue distributions to members.</P>
        <P>And third, the public also benefits by the promotion of economic and financial innovation that, as explained above,<SU>149</SU>the Commission expects this Proposed Order will further. For, the unique environment in which these electric utilities must operate to reliably serve their customer load in the face of constantly fluctuating demand—compounded by the fact that many of these Exempt Entities do not enjoy the same scale economies as investor-owned utilities—places a premium on innovative solutions to operational issues. Exempt Non-Financial Energy Transactions represent one such innovation. The Commission envisions the Proposed Order, as contemplated by Congress,<SU>150</SU>
          <FTREF/>will provide Exempt Entities regulatory certainty important to their ability to continue to utilize and develop innovative solutions through the use of highly bespoke, physically settled agreements, contracts, and transactions. Accordingly, the Commission expects the Proposed Order to benefit the public.</P>
        <FTNT>
          <P>
            <SU>150</SU>
            <E T="03">See</E>HOUSE CONF. REPORT NO. 102-978, 1992 U.S.C.C.A.N. 3179, 3213 (“4(c) Conf. Report”), noted in section I.A. above.</P>
        </FTNT>
        <HD SOURCE="HD3">5. Costs and Benefits as Compared to Alternatives</HD>
        <P>The chief alternatives to this Proposed Order are for the Commission to: (1) Decline to exercise its exemptive authority, or (2) to exercise its exemptive authority more broadly and without conditions as requested in the Petition.</P>
        <P>With respect to the first alternative—decline to exempt—the costs and benefit consideration is the mirror-image of that discussed above relative to the baseline scenario. A decision not to exercise exemptive authority in this circumstance would preserve the current post-Dodd-Frank regulatory environment.</P>
        <P>Relative to the second alternative of exercising its exemptive authority more broadly and in a manner that would provide categorical relief from all of the requirements of the CEA as requested in the Petition, the Commission has purposefully proposed to define the categories of exempt entities and transactions more narrowly, and to preserve certain aspects of CEA jurisdiction for them. A potentially material difference between the entities that the Petition sought to exempt and how the Commission proposes to define the term Exempt Entities is the Commission's explicit requirement that an Exempt Entity not be a “financial entity” within the meaning of CEA section 2(h)(7)(C). Given, however, that the Petition expressly represents that the not-for-profit electric entities that would be encompassed by the requested exemption “are all nonfinancial end users,”<SU>151</SU>
          <FTREF/>the Commission does not foresee a material cost of expressly stating this requirement relative to the Petitioned-for alternative. Conversely, the requirement delineates what the Commission considers an important gating principle for the exemption's appropriateness, and stating it explicitly reduces ambiguity that could fuel future disputes over the issue—a benefit.</P>
        <FTNT>
          <P>
            <SU>151</SU>Petition at 33.</P>
        </FTNT>
        <P>Also, compared to the Petition's description of transactions for which exemption was sought, the proposed definition of Exempt Non-Financial Energy Transactions incorporates limiting language<SU>152</SU>
          <FTREF/>and articulates additional definitional elements (<E T="03">e.g.,</E>intent at execution to make or take physical delivery of the commodity upon which the transaction is based). The more open-ended, Petitioned-for transaction description theoretically could save Exempt Entities effort that they might otherwise need to expend to determine whether a transaction engaged in between them is or is not exempted compared to the more refined and limited definition of Exempt Non-Financial Energy Transactions that the Commission proposes. That said, an equally, if not more, persuasive case might be made that the greater certitude that the proposed definition's more bounded approach provides should mitigate determination costs. More importantly, given the inability to foresee how these transactions may develop, the Commission considers it prudent and in the public interest to ring-fence the definition within stated parameters to restrict the potential for the transactions to evolve in a manner incompatible with the purposes of the CEA.</P>
        <FTNT>
          <P>

            <SU>152</SU>It explicitly limits covered transactions to six articulated categories, while the Petition proposed a more open-ended approach that would have included all transactions relating to particular categories, but not others.<E T="03">See</E>Petition at 4-5.</P>
        </FTNT>

        <P>Finally, as proposed, the exemption retains the Commission's general anti-fraud, anti-manipulation, and enforcement authority, as well as the Commission's authority to review books and records already kept in the ordinary course of business in the event that circumstances warrant the need to gain greater visibility with respect to Exempt Non-Financial Energy Transactions as they relate to Exempt Entities' overall market positions and to ensure compliance with the terms of this Proposed Order, in contrast to the Petition's request for a wholesale exemption from the CEA. The Commission believes that the first two conditions serve important beneficial ends to ensure the integrity of commodity and commodity derivatives markets within its jurisdiction. To the<PRTPAGE P="51019"/>extent Exempt Entities incur some cost to remain compliant with the CEA's anti-fraud, anti-manipulation, and enforcement regime, the Commission considers such costs warranted by the importance of maintaining commodity market and price discovery integrity. The Commission also believes that authority to inspect books and records kept in the ordinary course of business, pursuant to its regulatory inspection authority, as they relate to Exempt Non-Financial Energy Transactions is important to assure visibility into activity in such transactions on an as-needed basis. Further, as a general matter, the Commission expects infrequently to exert its regulatory inspection authority with respect to Exempt Non-Financial Energy Transactions and, as proposed, such authority would involve only records that Exempt Entities keep in the ordinary course of business, only in the event that circumstances warrant the need to gain greater visibility with respect to Exempt Non-Financial Energy Transactions as they relate to Exempt Entities' overall market positions, and only to ensure compliance with the terms of this Proposed Order. The Commission anticipates that any costs occasioned by this condition are relatively insignificant.</P>
        <HD SOURCE="HD3">6. Consideration of CEA Section 15(a) Factors</HD>
        <HD SOURCE="HD3">a. Protection of Market Participants and the Public</HD>
        <P>As explained above, the Commission does not foresee that the Proposed Order will have any effect on the protection of market participants and the public. More specifically, Exempt Non-Financial Energy Transactions as transacted bilaterally and in a closed loop between Exempt Entities in the highly specialized and unique electric-industry circumstances proposed for exemption do not appear to the Commission to generate risks of the nature addressed by the CEA. The Commission has attempted to delineate the definitional boundaries for Exempt Entities and Exempt Non-Financial Energy Transactions in a manner that appropriately ring-fences against the possibility that they could generating such risks, either now or as they may evolve in the future. Moreover, the exemption incorporates conditions to counter residual risk that conceivably, though unexpectedly, might survive notwithstanding the Proposed Order's careful definitional crafting.</P>
        <HD SOURCE="HD3">b. Efficiency, Competitiveness, and Financial Integrity of Futures Markets</HD>
        <P>The Commission foresees no negative impact from the Proposed Order on the efficiency, competitiveness, and financial integrity of markets regulated under the CEA. As narrowly limited to highly bespoke transactions, executed bilaterally between non-financial entities primarily in order to satisfy existing or expected operations-related contractual obligations, as opposed to speculating or hedging against the price risk of an underlying commodity, the Commission foresees little to no capability for Exempt Non-Financial Energy Transactions, to the extent any are swaps, to directly impact swap market efficiency, competitiveness, or financial integrity. Also, the Proposed Order incorporates definitional attributes that largely eliminate the potential for any futures market impact.</P>
        <P>Further, as an exercise of the Commission's CEA section 4(c) authority to provide legal certain for novel instruments as Congress intended, the Proposed Order affords Exempt Entities transactional flexibility that the Commission understands to be valuable to their ability to efficiently deploy their limited resources.</P>
        <HD SOURCE="HD3">c. Price Discovery</HD>
        <P>The Commission does not foresee that the Proposed Order will directly impact price discovery. As discussed above, the highly bespoke nature of Exempt Non-Financial Energy Transactions, as well as the fact that they are used to manage unique electric industry operational risks rather than price risk of an underlying commodity, appears to make them ill-suited for exchange trading and/or to serve a useful price discovery function.</P>
        <HD SOURCE="HD3">d. Sound Risk Management Practices</HD>
        <P>The Commission expects that the Proposed Order will promote the ability of Exempt Entities to manage the operational risks posed by unique electric market characteristics, including the non-storable nature of electricity and demand that can and frequently does fluctuate dramatically within a short time-span. As discussed above, the Commission understands that Exempt Non-Financial Energy Transactions are an important tool facilitating the ability of Exempt Entities to efficiently manage operational risk in fulfillment of their public service mission to provide affordable, reliable electricity.</P>
        <P>Also, the Commission does not anticipate that the Proposed Order will compromise systemic risk management. The transactions proposed for exemption are not market facing, but are executed exclusively within closed-loops that do not include financial entities. These characteristics, among others, limit the ability of Exempt Non-Financial Energy Transactions to create systemic risk.</P>
        <HD SOURCE="HD3">e. Other Public Interest Considerations</HD>
        <P>In utilizing its section 4(c)(1) and (6)(C) exemptive authority as proposed herein, the Commission believes it is acting to promote the broader public interest in an affordable, reliable electric supply as Congress contemplated.</P>
        <HD SOURCE="HD3">7. Request for Public Comment on Costs and Benefits</HD>
        <P>The Commission invites public comment on its cost-benefit considerations, including the consideration of reasonable alternatives.</P>
        <P>The Commission invites public comment on the magnitude of specific costs and benefits that would result from the Proposed Order, including data or other information to estimate the dollar value of such costs and benefits.</P>
        <P>The Commission invites public comment on any cost or benefit impact, direct or indirect, that the Proposed Order may have with respect to the factors the Commission considers under CEA section 15(a), specifically: (a) Protection of market participants and the public; (b) efficiency, competitiveness and financial integrity of the markets subject to the Commission's jurisdiction; (c) price discovery; (d) sound risk management; and (e) other public interest considerations.</P>
        <SIG>
          <DATED>Issued in Washington, DC, on August 16, 2012 by the Commission.</DATED>
          <NAME>Sauntia S. Warfield,</NAME>
          <TITLE>Assistant Secretary of the Commission.</TITLE>
        </SIG>
        <HD SOURCE="HD1">Appendices to Request for comment on a proposal to exempt, pursuant to authority in section 4(c) of the Commodity Exchange Act, certain transactions between entities described in section 201(f) of the Federal Power Act, and other electric cooperatives —Commission Voting Summary and Statements of Commissioners</HD>
        <NOTE>
          <HD SOURCE="HED">Note:</HD>
          <P>The following appendices will not appear in the Code of Federal Regulations</P>
        </NOTE>
        <HD SOURCE="HD1">Appendix 1—Commission Voting Summary</HD>
        <EXTRACT>
          <P>On this matter, Chairman Gensler and Commissioners Sommers, Chilton, O'Malia and Wetjen voted in the affirmative; no Commissioner voted in the negative.</P>
        </EXTRACT>
        <PRTPAGE P="51020"/>
        <HD SOURCE="HD1">Appendix 2—Statement of Chairman Gary Gensler</HD>
        <EXTRACT>
          <P>I support the proposed relief from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) swaps provisions for certain electricity and electricity-related energy transactions between rural electric cooperatives; state, municipal, and tribal power authorities; and federal power authorities.</P>
          <P>Congress directed the CFTC, when it is in the public interest, to provide relief from the Dodd-Frank Act's swaps market reform provisions for certain transactions between these entities.</P>
          <P>For decades, these entities have been recognized as performing a public service mission, a fundamentally different function than investor-owned utilities. The purpose of these entities is to provide their customers or cooperative members with reliable electric energy at the lowest cost possible. They have been largely exempt from regulation by the Federal Energy Regulatory Commission because of their government entity status or their not-for-profit cooperative status.</P>
          <P>The scope of the proposed relief extends only to non-financial electricity and electricity-related energy transactions for the generation, transmission and delivery of electric energy to customers. Such transactions must be intended for making or taking physical delivery of the underlying commodity.</P>
          <P>I look forward to receiving public comment on the proposed relief.</P>
        </EXTRACT>
        
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20589 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6351-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">BUREAU OF CONSUMER FINANCIAL PROTECTION</AGENCY>
        <SUBJECT>Agency Information Collection Activities: Submission for OMB Review; Comment Request</SUBJECT>
        <P>Agency: Bureau of Consumer Financial Protection.</P>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice and request for comments.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The Bureau of Consumer Financial Protection (Bureau), as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on a proposed information collection, as required by the Paperwork Reduction Act of 1995. The Bureau is soliciting comments concerning the information collection efforts relating to the collection titled, “CFPB Office of Intergovernmental Affairs Outreach Activities.” The proposed collection has been submitted to the Office of Management and Budget (OMB) for review and approval. A copy of the submission, including copies of the proposed collection and supporting documentation, may be obtained by contacting the agency contact listed below.</P>
        </SUM>
        <EFFDATE>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written comments are encouraged and must be received on or before September 24, 2012 to be assured of consideration.</P>
        </EFFDATE>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>You may submit comments, identified by “Consumer Financial Protection Bureau” and the collection title below, to:</P>
          <P>•<E T="03">Agency:</E>Consumer Financial Protection Bureau (Attention: PRA Office), 1700 G Street NW., Washington, DC 20552; (202) 435-9011; and<E T="03">CFPB_Public_PRA@cfpb.gov.</E>
          </P>
          <P>•<E T="03">OMB:</E>Shagufta Ahmed, Office of Management and Budget, New Executive Office Building, Room 10235, Washington, DC 20503; (202) 395-7873.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Requests for additional information should be directed to the Consumer Financial Protection Bureau (Attention: PRA Office), 1700 G Street NW., Washington, DC 20552, (202) 435-9011 or through the Internet at<E T="03">CFPB_Public_PRA@cfpb.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <P SOURCE="NPAR">
          <E T="03">Title:</E>CFPB Office of Intergovernmental Affairs Outreach Activities.</P>
        <P>
          <E T="03">OMB Number:</E>3170-00xx.</P>
        <P>
          <E T="03">Type of Review:</E>New generic collection.</P>
        <P>
          <E T="03">Abstract:</E>The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) contemplates that the Bureau will conduct outreach activities, as appropriate.<E T="03">See, e.g.</E>12 U.S.C. 5495; 12 U.S.C. 5512(c)(1), 12 U.S.C. 5493(d), 12 U.S.C. 5493(b)(2), 12 U.S.C. 5511(c)(6). The Bureau's Office of Intergovernmental Affairs seeks to conduct outreach by collecting information from state, local, and tribal governments related to the Bureau's exercise of its functions under the Dodd-Frank Act. These governments interact closely with consumers and are critical partners in promoting transparency and competition in the marketplace, preventing unfair and unlawfully discriminatory practices, and enforcing consumer financial laws.</P>
        <P>The information collected through the Office of Intergovernmental Affairs Outreach Activities will be shared, as appropriate, within the Bureau in the exercise of its functions, such as the Bureau's financial education, rulemaking, market monitoring, outreach to traditionally underserved populations, fair lending monitoring, supervision, and enforcement functions.</P>
        <P>The information collected may be used to form policies and programs presented to state, local, and tribal governments, as well as to other federal agencies and the general public. Nearly all information collection will involve the use of electronic communication or other forms of information technology and telephonic means.</P>
        <P>The Bureau received one comment letter on the proposed collection from a coalition of cities committed to local action for financial empowerment and consumer protection. The comment supported the Bureau's proposal to formalize processes for information collection from local governments, noting that the proposed information collection would maximize efficiency of information sharing and minimize burden on cities. The letter recommended that the Bureau set up protocols to solicit information and develop a mechanism for local governments to provide information to the Bureau. The letter further recommended that the Bureau offer cities a distinct communication channel through which cities can obtain information from the Bureau and inform regulatory or enforcement actions. The Bureau notes that this regular and structured solicitation of information may help mitigate the effects of future ruptures in consumer financial markets by helping to facilitate effective monitoring of local markets for risks to consumers.</P>
        <P>
          <E T="03">Affected Public:</E>State, Local, or Tribal Governments.</P>
        <P>
          <E T="03">Estimated Number of Responses:</E>1,600.</P>
        <P>
          <E T="03">Estimated Time per Respondent:</E>2 hours.</P>
        <P>
          <E T="03">Estimated Total Annual Burden Hours:</E>3,200.</P>
        <P>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 OMB control number.</P>
        <P>The Bureau issued a 60-day<E T="04">Federal Register</E>notice on April 30, 2012, 77 FR 25438-39. Comments were solicited and continue to be invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the Bureau, including whether the information shall have practical utility; (b) the accuracy of the Bureau's estimate of the burden of the collection of information, including the validity of the methodology and the assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.</P>
        <SIG>
          <PRTPAGE P="51021"/>
          <DATED>Approved: August 17, 2012.</DATED>
          <NAME>Chris Willey,</NAME>
          <TITLE>Chief Information Officer, Bureau of Consumer Financial Protection.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20700 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4810-AM-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF EDUCATION</AGENCY>
        <SUBJECT>Notice of Proposed Information Collection Requests; Federal Student Aid; Student Assistance General Provisions—Student Right To Know</SUBJECT>
        
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The proposed changes to the current regulations require institutions to disclose the employment and placement rate, retention rate of first-time, full-time undergraduate students, and completion and graduation rate data disaggregated by gender, race, and grant or loan assistance in addition to the currently required reporting to prospective and enrolled students and employees.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Interested persons are invited to submit comments on or before October 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Written comments regarding burden and/or the collection activity requirements should be electronically mailed to<E T="03">ICDocketMgr@ed.gov</E>or mailed to U.S. Department of Education, 400 Maryland Avenue SW., LBJ, Washington, DC 20202-4537. Copies of the proposed information collection request may be accessed from<E T="03">http://edicsweb.ed.gov,</E>by selecting the “Browse Pending Collections” link and by clicking on link number 04924. When you access the information collection, click on “Download Attachments” to view. Written requests for information should be addressed to U.S. Department of Education, 400 Maryland Avenue SW., LBJ, Washington, DC 20202-4537. Requests may also be electronically mailed to<E T="03">ICDocketMgr@ed.gov</E>or faxed to 202-401-0920. Please specify the complete title of the information collection and OMB Control Number when making your request.</P>
          <P>Individuals who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339.</P>
        </ADD>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P>Section 3506 of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35) requires that Federal agencies provide interested parties an early opportunity to comment on information collection requests. The Director, Information Collection Clearance Division, Privacy, Information and Records Management Services, Office of Management, publishes this notice containing proposed information collection requests at the beginning of the Departmental review of the information collection. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records.</P>
        <P>
          <E T="03">Title of Collection:</E>Student Assistance General Provisions—Student Right to Know.</P>
        <P>
          <E T="03">OMB Control Number:</E>1845-0004.</P>
        <P>
          <E T="03">Type of Review:</E>Extension.</P>
        <P>
          <E T="03">Total Estimated Number of Annual Responses:</E>33,568.</P>
        <P>
          <E T="03">Total Estimated Number of Annual Burden Hours:</E>244,179.</P>
        <P>
          <E T="03">Abstract:</E>Eligible participating post-secondary institutions are required to provide this Student Right-to-Know (SRK) information to all enrolled students, prospective students prior to their enrolling or entering into a financial obligation with the school as well as to institution's employees. This information pertains to the completion, graduation and post-graduate study rates for students at a given institution. This information must be made through publications, mailings and electronic media. The SRK information is made available so that students and prospective students can be aware of the ability of students at that institution to complete a course of study as well as find employment or continuing education opportunities upon graduation.</P>
        <SIG>
          <DATED>Dated: August 20, 2012.</DATED>
          <NAME>Stephanie Valentine,</NAME>
          <TITLE>Acting Director, Information Collection Clearance Division, Privacy, Information and Records Management Services, Office of Management.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20775 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 4000-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
        <SUBJECT>Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources, Research and Development Program 2012 Annual Plan</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Office of Fossil Energy, Department of Energy.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of report availability.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The Office of Fossil Energy announces the availability of the<E T="03">2012 Annual Plan</E>for the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research and Development Program on the DOE Web site at<E T="03">www.fossil.energy.gov/programs/oilgas/ultra_and_unconventional/2012_annual_plan.pdf</E>or in print form (see “Contact” below).</P>
          <P>The<E T="03">2012 Annual Plan</E>is in compliance with the<E T="03">Energy Policy Act of 2005, Subtitle J, Section 999B(e)(3)</E>which requires the publication of this plan and all written comments in the<E T="04">Federal Register</E>.</P>
        </SUM>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Elena Melchert, U.S. Department of Energy, Office of Oil and Natural Gas, Mail Stop FE-30, 1000 Independence Avenue SW., Washington, DC 20585 or phone: (202) 586-5600 or email to<E T="03">UltraDeepwater@hq.doe.gov</E>.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <HD SOURCE="HD1">Executive Summary [Excerpted From the 2012 Annual Plan p. iv]</HD>
        <P>This<E T="03">2012 Annual Plan</E>is the sixth research plan for the<E T="03">Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research Program</E>since the launch of the program in 2007.</P>
        <P>This plan continues the important shift in priorities towards safety and environmental sustainability that was initiated in the last plan, and is consistent with the President's Office of Management and Budget directive for research that has significant potential public benefits.</P>
        <P>Onshore, research on Unconventional Resources will focus on protecting groundwater and air quality, understanding rock and fluid interactions, and integrated environmental protection, including water treatment technologies and water management. For Small Producers, the Program will focus on extending the life of mature fields in an environmentally sustainable way.</P>

        <P>Offshore, research on Ultra-Deepwater will focus on improved understanding of systems risk, reducing risk through the acquisition of real-time information<PRTPAGE P="51022"/>throughout the various systems, and reducing risk through the development of advanced technologies.</P>
        <P>The research activities will be administered by the Research Partnership to Secure Energy for America (RPSEA), which operates under the guidance of the Secretary of Energy. RPSEA is a consortium which includes representatives from industry, academia, and research institutions. The expertise of RPSEA's members in all areas of the exploration and production value chain ensure that the Department of Energy's research program leverages relevant emerging technologies and processes, and that project results will have a direct impact on practices in the field.</P>
        <SIG>
          <DATED>Issued in Washington, DC on August 16, 2012.</DATED>
          <NAME>Christopher A. Smith,</NAME>
          <TITLE>Deputy Assistant Secretary, Office of Oil and Natural Gas, Office of Fossil Energy.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20788 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6450-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
        <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
        <DEPDOC>[Project No. 12429-007]</DEPDOC>
        <SUBJECT>Clark Canyon Hydro, LLC; Notice of Application Accepted for Filing, Ready for Environmental Analysis, and Soliciting Comments, Motions To Intervene and Protests, Recommendations, Terms and Conditions, and Fishway Prescriptions</SUBJECT>
        <P>Take notice that the following hydroelectric application has been filed with the Commission and is available for public inspection:</P>
        <P>a.<E T="03">Application Type:</E>Amendment of license to change transmission line route</P>
        <P>b.<E T="03">Project No.:</E>12429-007.</P>
        <P>c.<E T="03">Date Filed:</E>May 31, 2012.</P>
        <P>d.<E T="03">Applicant:</E>Clark Canyon Hydro, LLC .</P>
        <P>e.<E T="03">Name of Project:</E>Clark Canyon Dam Hydroelectric Project.</P>
        <P>f.<E T="03">Location:</E>When constructed, the project will be located at the U.S. Department of the Interior, Bureau of Reclamation's Clark Canyon dam on the Beaverhead River, in Beaverhead County near the Town of Dillon, Montana.</P>
        <P>g.<E T="03">Filed Pursuant to:</E>Federal Power Act, 16 U.S.C. 791(a)—825(r).</P>
        <P>h.<E T="03">Applicant Contact:</E>Brent L. Smith, Chief Operating Officer, Symbiotics, LLC, P.O. Box 535, Rigby, ID 83442; telephone: (208) 745-0834</P>
        <P>i.<E T="03">FERC Contact:</E>Linda Stewart, telephone: (202) 502-6680, and email address:<E T="03">linda.stewart@ferc.gov.</E>
        </P>
        <P>j. Deadline for filing motions to intervene and protests, comments, recommendations, terms and conditions, and fishway prescriptions is 60 days from the issuance of this notice; reply comments are due 105 days from the issuance date of this notice.</P>

        <P>All documents may be filed electronically via the Internet. See 18 CFR 385.2001(a)(1)(iii) and the instructions on the Commission's Web site at<E T="03">http://www.ferc.gov/docs-filing/efiling.asp.</E>Commenters can submit brief comments up to 6,000 characters, without prior registration, using the eComment system at<E T="03">http://www.ferc.gov/docs-filing/ecomment.asp.</E>You must include your name and contact information at the end of your comments. For assistance, please contact FERC Online Support at<E T="03">FERCOnlineSupport@ferc.gov</E>or toll free at 1-866-208-3676, or for TTY, (202) 502-8659. Although the Commission strongly encourages electronic filing, documents may also be paper-filed. To paper-file, mail an original and seven copies to: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426. Please include the project number (P-12429-007) on any comments, motions, or recommendations filed.</P>
        <P>The Commission's Rules of Practice and Procedure require all intervenors filing documents with the Commission to serve a copy of that document on each person whose name appears on the official service list for the project. Further, if an intervenor files comments or documents with the Commission relating to the merits of an issue that may affect the responsibilities of a particular resource agency, they must also serve a copy of the document on that resource agency.</P>
        <P>k.<E T="03">Description of Request:</E>Clark Canyon Hydro, LLC (licensee) proposes to change the transmission line route authorized in the August 26, 2009 Order Issuing Original License. Instead of constructing a 0.3-mile-long, 24.9-kilovolt (kV) transmission line connecting the powerhouse to the local utility's existing transmission system as authorized in the license, the licensee proposes to construct a 7.9-mile-long, 69-kV transmission line connecting the powerhouse to Idaho Power Company's Peterson substation.</P>
        <P>l.<E T="03">Locations of the Application:</E>A copy of the application is available for review at the Commission in the Public Reference Room or may be viewed on the Commission's Web site at<E T="03">http://www.ferc.gov</E>using the “eLibrary” link. Enter the docket number excluding the last three digits in the docket number field to access the document. For assistance, contact FERC Online Support. A copy is also available for inspection and reproduction at the address in item (h) above.</P>
        <P>You may also register online at<E T="03">http://www.ferc.gov/docs-filing/esubscription.asp</E>to be notified via email of new filings and issuances related to this or other pending projects. For assistance, contact FERC Online Support.</P>
        <P>m. Individuals desiring to be included on the Commission's mailing list should so indicate by writing to the Secretary of the Commission.</P>
        <P>n. Comments, Protests, or Motions to Intervene: Anyone may submit comments, a protest, or a motion to intervene in accordance with the requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211, .214. In determining the appropriate action to take, the Commission will consider all protests or other comments filed, but only those who file a motion to intervene in accordance with the Commission's Rules may become a party to the proceeding. Any comments, protests, or motions to intervene must be received on or before the specified comment date for the particular application.</P>

        <P>o. Filing and Service of Responsive Documents: All filings must (1) bear in all capital letters the title “PROTEST”, “MOTION TO INTERVENE”, “COMMENTS”, “REPLY COMMENTS”, “RECOMMENDATIONS”, “TERMS AND CONDITIONS”, or “FISHWAY PRESCRIPTIONS”; (2) set forth in the heading the name of the applicant and the project number of the application to which the filing responds; (3) furnish the name, address, and telephone number of the person protesting or intervening; and (4) otherwise comply with the requirements of 18 CFR 385.2001 through 385.2005. All comments, recommendations or terms and conditions must set forth their evidentiary basis and otherwise comply with the requirements of 18 CFR 4.34(b). All comments, recommendations or terms and conditions should relate to project works which are the subject of the license amendment. Agencies may obtain copies of the application directly from the applicant. A copy of any protest or motion to intervene must be served upon each representative of the applicant specified in the particular application. If an intervener files comments or documents with the Commission relating to the merits of an issue that may affect the responsibilities<PRTPAGE P="51023"/>of a particular resource agency, they must also serve a copy of the document on that resource agency. A copy of all other filings in reference to this application must be accompanied by proof of service on all persons listed in the service list prepared by the Commission in this proceeding, in accordance with 18 CFR 4.34(b) and 385.2010.</P>
        <SIG>
          <DATED>Dated: August 16, 2012.</DATED>
          <NAME>Kimberly D. Bose,</NAME>
          <TITLE>Secretary.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20744 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6717-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
        <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
        <DEPDOC>[Docket No. OR12-24-000]</DEPDOC>
        <SUBJECT>R. Gordon Gooch v. Colonial Pipeline Company; Notice of Complaint</SUBJECT>
        <P>Take notice that on August 14, 2012, pursuant to section 13(1) of the Interstate Commerce Act (ICA) (49 App. U.S.C. 13(1) (1988)), Rule 206 of the Rules of Practice and Procedure of the Federal Energy Regulatory Commission (Commission) (18 CFR 385.206 (2012)), and section 343.2 of the Commission's regulations (18 CFR 343.2 (2012)), R. Gordon Gooch (Complainant) filed a formal complaint against Colonial Pipeline Company (Respondent) challenging the rates, terms, and conditions of Respondent's interstate transportation service in FERC Tariff Nos. 98.6.0,99.8.0, and 100.6.0, as set forth more fully in the complaint.</P>
        <P>R. Gordon Gooch states that a copy of the Complaint has been served on the contact for the Respondent as listed on the Commission list of Corporate Officials.</P>
        <P>Any person desiring to intervene or to protest this filing must file in accordance with Rules 211 and 214 of the Commission's Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be considered by the Commission in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceeding. Any person wishing to become a party must file a notice of intervention or motion to intervene, as appropriate. The Respondent's answer, motions to intervene, and protests must be filed on or before the comment date. The Respondent's answer, motions to intervene, and protests must be served on the Complainant.</P>

        <P>The Commission encourages electronic submission of protests and interventions in lieu of paper using the “eFiling” link at<E T="03">http://www.ferc.gov.</E>Persons unable to file electronically should submit an original and 14 copies of protests and interventions to the Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426.</P>
        <P>This filing is accessible on-line at<E T="03">http://www.ferc.gov,</E>using the “eLibrary” link and is available for review in the Commission's Public Reference Room in Washington, DC. There is an “eSubscription” link on the web site that enables subscribers to receive email notification when a document is added to a subscribed docket. For assistance with any FERC Online service, please email<E T="03">FERCOnlineSupport@ferc.gov,</E>or call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.</P>
        <P>
          <E T="03">Comment Date:</E>5:00 p.m. Eastern Time on September 4, 2012.</P>
        <SIG>
          <DATED>Dated: August 16, 2012.</DATED>
          <NAME>Kimberly D. Bose,</NAME>
          <TITLE>Secretary.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20745 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6717-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">EXPORT-IMPORT BANK OF THE UNITED STATES</AGENCY>
        <DEPDOC>[Public Notice 2012-0347]</DEPDOC>
        <SUBJECT>Application for Final Commitment for a Long-Term Loan or Financial Guarantee in Excess of $100 Million</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Export-Import Bank of the United States.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of 25-day comment period regarding an application for final commitment for a long-term loan or financial guarantee in excess of $100 million.</P>
        </ACT>
        <P>
          <E T="03">Reason for Notice:</E>This Notice is to inform the public, in accordance with Section 3(c)(10) of the Charter of the Export-Import Bank of the United States (“Ex-Im Bank”), that Ex-Im Bank has received an application for final commitment for a long-term loan or financial guarantee in excess of $100 million (as calculated in accordance with Section 3(c)(10) of the Charter).</P>
        <P>Comments received within the comment period specified below will be presented to the Ex-Im Bank Board of Directors prior to final action on this Transaction.</P>
        <P>
          <E T="03">Reference:</E>AP085092XX.</P>
        <P>
          <E T="03">Purpose and Use:</E>
        </P>
        <P>Brief description of the purpose of the transaction:</P>
        <P>To support the export of goods and services for the design and construction of an aquarium.</P>
        <P>Brief non-proprietary description of the anticipated use of the items being exported:</P>
        <P>Goods and services will be utilized for the construction of an aquarium which will serve as a tourist attraction and educational center.</P>
        <P>To the extent that Ex-Im Bank is reasonably aware, the item(s) being exported are not expected to produce exports or provide services in competition with the exportation of goods or provision of services by a United States industry.</P>
        <P>
          <E T="03">Parties:</E>
        </P>
        <P>
          <E T="03">Principal Supplier:</E>International Concept Management.</P>
        <P>
          <E T="03">Obligor:</E>State of Ceará, Federative Republic of Brazil.</P>
        <P>
          <E T="03">Guarantor:</E>Federative Republic of Brazil acting by and through the Ministry of Planning, Budget and Management.</P>
        <P>
          <E T="03">Description of Items Being Exported:</E>Design, engineering and construction services and related equipment for the construction of the aquarium.</P>
        <P>
          <E T="03">Information on Decision:</E>Information on the final decision for this transaction will be available in the “Summary Minutes of Meetings of Board of Directors” on<E T="03">http://www.exim.gov/articles.cfm/board%20minute.</E>
        </P>
        <P>
          <E T="03">Confidential Information:</E>Please note that this notice does not include confidential or proprietary business information; information which, if disclosed, would violate the Trade Secrets Act; or information which would jeopardize jobs in the United States by supplying information that competitors could use to compete with companies in the United States.</P>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before September 17, 2012 to be assured of consideration before final consideration of the transaction by the Board of Directors of Ex-Im Bank.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Comments may be submitted through<E T="03">WWW.REGULATIONS.GOV.</E>
          </P>
        </ADD>
        <SIG>
          <NAME>Sharon A. Whitt,</NAME>
          <TITLE>Agency Clearance Officer.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20728 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6690-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="S">EXPORT-IMPORT BANK OF THE UNITED STATES</AGENCY>
        <DEPDOC>[Public Notice 2012-0346]</DEPDOC>
        <SUBJECT>Application for Final Commitment for a Long-Term Loan or Financial Guarantee in Excess of $100 Million</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Export-Import Bank of the U.S.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>

          <P>Notice of 25-day comment period regarding an application for final<PRTPAGE P="51024"/>commitment for a long-term loan or financial guarantee in excess of $100 million.</P>
        </ACT>
        <P>
          <E T="03">Reason for Notice:</E>This Notice is to inform the public, in accordance with Section 3(c)(10) of the Charter of the Export-Import Bank of the United States (“Ex-Im Bank”), that Ex-Im Bank has received an application for final commitment for a long-term loan or financial guarantee in excess of $100 million (as calculated in accordance with Section 3(c)(10) of the Charter).</P>
        <P>Comments received within the comment period specified below will be presented to the Ex-Im Bank Board of Directors prior to final action on this Transaction.</P>
        <P>
          <E T="03">Reference:</E>AP084837XX.</P>
        <P>
          <E T="03">Purpose and Use:</E>
        </P>
        <P>
          <E T="03">Brief description of the purpose of the transaction:</E>
        </P>
        <P>To support the export of a telecommunications satellite and associated equipment to Vietnam.</P>
        <P>Brief non-proprietary description of the anticipated use of the items being exported:</P>
        <P>To provide telecommunication services to Vietnam and the surrounding region.</P>
        <P>To the extent that Ex-Im Bank is reasonably aware, the item(s) being exported are not expected to be used to produce exports or provide services in competition with the exportation of goods or provisions of services by a US industry.</P>
        <P>
          <E T="03">Parties:</E>
        </P>
        <P>
          <E T="03">Principal Supplier:</E>Lockheed Martin Corporation.</P>
        <P>
          <E T="03">Obligor:</E>Vietnam acting by and through the Ministry of Finance.</P>
        <P>
          <E T="03">Guarantor(s):</E>None.</P>
        <P>
          <E T="03">Description of Items Being Exported:</E>One telecommunications satellite and associated equipment.</P>
        <P>
          <E T="03">Information on Decision:</E>Information on the final decision for this transaction will be available in the “Summary Minutes of Meetings of Board of Directors” on<E T="03">http://www.exim.gov/articles.cfm/board%20minute.</E>
        </P>
        <P>
          <E T="03">Confidential Information:</E>Please note that this notice does not include confidential or proprietary business information; information which, if disclosed, would violate the Trade Secrets Act; or information which would jeopardize jobs in the United States by supplying information that competitors could use to compete with companies in the United States.</P>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be received on or before September 17, 2012 to be assured of consideration.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Comments may be submitted through<E T="03">www.regulations.gov.</E>
          </P>
        </ADD>
        <SIG>
          <NAME>Sharon A. Whitt,</NAME>
          <TITLE>Agency Clearance Officer.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20731 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6690-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
        <SUBJECT>Information Collection Being Reviewed by the Federal Communications Commission</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Communications Commission.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice; request for comments.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>As part of its continuing effort to reduce paperwork burden and as required by the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520), the Federal Communications Commission invites the general public and other Federal agencies to take this opportunity to comment on the following information collection(s). Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information burden for small business concerns with fewer than 25 employees.</P>
          <P>The FCC may not conduct or sponsor a collection of information unless it displays a currently valid OMB control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the Paperwork Reduction Act (PRA) that does not display a valid OMB control number.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Written Paperwork Reduction Act (PRA) comments should be submitted on or before October 22, 2012. If you anticipate that you will be submitting PRA comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the FCC contact listed below as soon as possible.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>

          <P>Submit your PRA comments to Judith B. Herman, Federal Communications Commission, via the Internet at<E T="03">Judith-b.herman@fcc.gov.</E>To submit your PRA comments by email send them to:<E T="03">PRA@fcc.gov.</E>
          </P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Judith B. Herman, Office of Managing Director, (202) 418-0214.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        
        <P>
          <E T="03">OMB Control Number:</E>3060-0718.</P>
        <P>
          <E T="03">Title:</E>Part 101 Rule Sections Governing the Terrestrial Microwave Fixed Radio Service.</P>
        <P>
          <E T="03">Form Number:</E>N/A.</P>
        <P>
          <E T="03">Type of Review:</E>Revision of a currently approved collection.</P>
        <P>
          <E T="03">Respondents:</E>Business or other for-profit entities, not-for-profit institutions, federal government and state, local or tribal government.</P>
        <P>
          <E T="03">Number of Respondents:</E>27,342 respondents; 27,342 responses.</P>
        <P>
          <E T="03">Estimated Time per Response:</E>1.2962475 hours.</P>
        <P>
          <E T="03">Frequency of Response:</E>On occasion and 10 year reporting requirements, recordkeeping requirement and third party disclosure requirement.</P>
        <P>
          <E T="03">Obligation to Respond:</E>Required to obtain or retain benefits. Statutory authority for this information collection is contained in 47 U.S.C. Sections 151, 154(i), 301, 303(f), 303(g), 303(r), 307, 308, 309, 310 and 316.</P>
        <P>
          <E T="03">Total Annual Burden:</E>35,442 hours.</P>
        <P>
          <E T="03">Total Annual Cost:</E>$810,000.</P>
        <P>
          <E T="03">Privacy Impact Assessment:</E>N/A.</P>
        <P>
          <E T="03">Nature and Extent of Confidentiality:</E>No questions of a confidential nature are asked.</P>
        <P>
          <E T="03">Needs and Uses:</E>The Commission is seeking OMB approval for revision of this information collection. There is a minor change to the Commission's previous burden estimates. The Commission is increasing the hourly burden by 200 hours and the annual cost by $50,000.</P>
        <P>On August 3, 2012, the FCC adopted and released a<E T="03">Backhaul Second Report and Order,</E>FCC 12-87, WT Docket No. 10-153, adopting a<E T="03">Rural Microwave Flexibility Policy</E>directing the Commission's Wireless Telecommunications Bureau to favorably consider waivers of the payload capacity requirements if Fixed Service (FS) applicants demonstrate compliance with certain criteria, which is adding new reporting and recordkeeping requirements to this information collection.</P>

        <P>In order to accommodate the consideration of waivers of the payload capacity of FS applicants pursuant to the<E T="03">Rural Microwave Flexibility Policy</E>requirement, there is an increase in the total annual burden hours from 35,242 to 35,442 hours; an increase in the number of respondents and responses from 27,292 to 27,342; and an annual<PRTPAGE P="51025"/>cost increase from $760,000 to $810,000 because of the new respondents, i.e., Fixed Service (FS) operators who choose to file under the<E T="03">Rural Microwave Flexibility Policy.</E>The Policy directs the Bureau to favorably consider waivers of the requirements for payload capacity of equipment if the applicants demonstrate equipment compliance with the following criteria:</P>
        <P>• The interference environment would allow the applicant to use a less stringent Category B antenna (although the applicant could choose to sue a higher performance Category A antenna);</P>
        <P>• The applicant specifically acknowledges its duty to upgrade to a Category A antenna and come into compliance with the applicable efficiency standard if necessary to resolve an interference conflict with a current or future microwave link pursuant to 47 CFR 101.115(c);</P>
        <P>• The applicant uses equipment that is capable of readily being upgraded to comply with the applicable payload capacity requirement, and provide a certification in its application that its equipment complies with this requirement;</P>
        <P>• Each end of the link is located in a rural area (county or equivalent having a population density of 100 persons per square mile or less);</P>
        <P>• Each end of the link is in a county with a low density of links in the 4, 6, 11, 18 and 23 GHz bands;</P>
        <P>• Neither end of the link is contained within a recognized antenna farm; and</P>
        <P>• The applicant describes its proposed service and explains how relief from the efficiency standards will facilitate providing that service (e.g., by eliminating the need for an intermediate hop) as well as the steps needed to come into compliance should an interference conflict emerge.</P>
        <P>There is no change to the existing third party disclosure requirements.</P>
        <P>Additionally, Part 101 rule sections requires various information to be reported to the Commission; coordinated with third parties; posting requirements; notification requirements to the public; and recordkeeping requirements maintained by the respondent to determine the technical, legal and other qualifications of applications to operate a station in the public and private operational fixed services.</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. 2012-20710 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6712-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">FEDERAL DEPOSIT INSURANCE CORPORATION</AGENCY>
        <SUBJECT>Agency Information Collection Activities: Proposed Collection Renewal; Comment Request (3064-0161)</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Federal Deposit Insurance Corporation (FDIC).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice and request for comment.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>
          <P>The FDIC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on the renewal of an existing information collection, as required by the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35). Currently, the FDIC is soliciting comment on renewal of the information collection described below.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Comments must be submitted on or before October 22, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Interested parties are invited to submit written comments to the FDIC by any of the following methods:</P>
          <P>•<E T="03">http://www.FDIC.gov/regulations/laws/federal/notices.html.</E>
          </P>
          <P>•<E T="03">Email: comments@fdic.gov</E>Include the name of the collection in the subject line of the message.</P>
          <P>•<E T="03">Mail:</E>Gary A. Kuiper (202.898.3877), Counsel, Room NYA-5046, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429.</P>
          <P>•<E T="03">Hand Delivery:</E>Comments may be hand-delivered to the guard station at the rear of the 17th Street Building (located on F Street), on business days between 7:00 a.m. and 5:00 p.m.</P>
          <P>All comments should refer to the relevant OMB control number. A copy of the comments may also be submitted to the OMB desk officer for the FDIC: Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Washington, DC 20503.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
          <P>Gary A. Kuiper, at the FDIC address above.</P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <P/>
        <P SOURCE="NPAR">Proposal to renew the following currently-approved collection of information:</P>
        <P>
          <E T="03">Title:</E>Procedures to Enhance the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies (Insured State Nonmember Banks).</P>
        <P>
          <E T="03">OMB Number:</E>3064-0161.</P>
        <P>
          <E T="03">Affected Public:</E>State nonmember banks.</P>
        <P>
          <E T="03">Estimated Number of Respondents:</E>4522.</P>
        <P>
          <E T="03">Number of frivolous or irrelevant dispute notices:</E>88,686.</P>
        <P>
          <E T="03">Estimated burden per respondent:</E>
        </P>
        <P>24 hours to implement written policies and procedures and training associated with the written policies and procedures</P>
        <P>8 hours to amend procedures for handling complaints received directly from consumers</P>
        <P>8 hours to implement the new dispute notice requirement.</P>
        <P>
          <E T="03">Estimated burden per frivolous or irrelevant dispute notice:</E>14 minutes.</P>
        <P>
          <E T="03">Estimated Total Annual Burden Hours:</E>201,573 hours.</P>
        <P>
          <E T="03">General Description of Collection:</E>FDIC is required by section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) to issue guidelines for use by furnishers regarding the accuracy and integrity of the information about consumers that they furnish to consumer reporting agencies and prescribe regulations requiring furnishers to establish reasonable policies and procedures for implementing the guidelines. Section 312 also requires the Agencies to issue regulations identifying the circumstances under which a furnisher must reinvestigate disputes about the accuracy of information contained in a consumer report based on a direct request from a consumer.</P>
        <HD SOURCE="HD1">Request for Comment</HD>
        <P>Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the FDIC's functions, including whether the information has practical utility; (b) the accuracy of the estimates of the burden of the information collection, including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology. All comments will become a matter of public record.</P>
        <SIG>
          <DATED>Dated at Washington, DC, this 20th day of August 2012.</DATED>
          
          <FP>Federal Deposit Insurance Corporation.</FP>
          <NAME>Robert E. Feldman,</NAME>
          <TITLE>Executive Secretary.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20778 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6714-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <PRTPAGE P="51026"/>
        <AGENCY TYPE="N">FEDERAL RETIREMENT THRIFT INVESTMENT BOARD</AGENCY>
        <SUBJECT>Sunshine Act; Notice of Meeting</SUBJECT>
        <PREAMHD>
          <HD SOURCE="HED">TIME AND DATE:</HD>
          <P>9:00 a.m. (Eastern Time), August 27, 2012.</P>
        </PREAMHD>
        <PREAMHD>
          <HD SOURCE="HED">PLACE:</HD>
          <P>10th Floor Board Room, 77 K Street NE., Washington, DC 20002.</P>
        </PREAMHD>
        <PREAMHD>
          <HD SOURCE="HED">STATUS:</HD>
          <P>Parts will be open to the public and parts will be closed to the public.</P>
        </PREAMHD>
        <PREAMHD>
          <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
          <P/>
        </PREAMHD>
        <HD SOURCE="HD1">Parts Open to the Public</HD>
        <FP SOURCE="FP-2">1. Approval of the Minutes of the July 23, 2012 Board Member Meeting</FP>
        <FP SOURCE="FP-2">2. Thrift Savings Plan Activity Report by the Executive Director</FP>
        <FP SOURCE="FP1-2">a. Monthly Participant Activity Report</FP>
        <FP SOURCE="FP1-2">b. Monthly Investment Performance Report</FP>
        <FP SOURCE="FP1-2">c. Legislative Report</FP>
        <FP SOURCE="FP-2">3. DoL/KPMG Audit Report</FP>
        <FP SOURCE="FP-2">4. Communications Strategy Presentation</FP>
        <FP SOURCE="FP-2">5. Personnel</FP>
        <HD SOURCE="HD1">Parts Closed to the Public</HD>
        <FP SOURCE="FP-2">1. Procurement</FP>
        <FP SOURCE="FP-2">2. Security</FP>
        <FP SOURCE="FP-2">3. Personnel</FP>
        <PREAMHD>
          <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION:</HD>
          <P>Kimberly Weaver, Director, Office of External Affairs, (202) 942-1640.</P>
        </PREAMHD>
        <SIG>
          <DATED>Dated: August 21, 2012.</DATED>
          <NAME>James B. Petrick,</NAME>
          <TITLE>Secretary, Federal Retirement Thrift Investment Board.</TITLE>
        </SIG>
      </PREAMB>
      <FRDOC>[FR Doc. 2012-20868 Filed 8-21-12; 4:15 pm]</FRDOC>
      <BILCOD>BILLING CODE 6760-01-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
        <AGENCY TYPE="O">GENERAL SERVICES ADMINISTRATION</AGENCY>
        <AGENCY TYPE="O">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
        <DEPDOC>[OMB Control No. 9000-0075; Docket 2012-0076; Sequence 19]</DEPDOC>
        <SUBJECT>Federal Acquisition Regulation; Submission for OMB Review; Government Property</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice of request for public comments regarding an extension to an existing OMB clearance.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat will be submitting to the Office of Management and Budget (OMB) a request to review and approve an extension of a previously approved information collection requirement concerning Government Property. A notice was published in the<E T="04">Federal Register</E>at 76 FR 18497, on April 4, 2011. No comments were received.</P>
          <P>Public comments are particularly invited on: Whether this collection of information is necessary for the proper performance of functions of the Federal Acquisition Regulations (FAR), and whether it will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; ways to enhance the quality, utility, and clarity of the information to be collected; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology.</P>
        </SUM>
        <DATES>
          <HD SOURCE="HED">DATES:</HD>
          <P>Submit comments on or before September 24, 2012.</P>
        </DATES>
        <ADD>
          <HD SOURCE="HED">ADDRESSES:</HD>
          <P>Submit comments identified by Information Collection 9000-0075 by any of the following methods:</P>
          <P>•<E T="03">Regulations.gov: http://www.regulations.gov.</E>Submit comments via the Federal eRulemaking portal by searching the OMB control number. Select the link “Submit a Comment” that corresponds with “Information Collection 9000-0075”. Follow the instructions provided at the “Submit a Comment” screen. Please include your name, company name (if any), and “Information Collection 9000-0075” on your attached document.</P>
          <P>•<E T="03">Fax:</E>202-501-4067.</P>
          <P>•<E T="03">Mail:</E>General Services Administration, Regulatory Secretariat (MVCB), 1275 First Street NE., Washington, DC 20417. ATTN: Hada Flowers/IC 9000-0075.</P>
          <P>
            <E T="03">Instructions:</E>Please submit comments only and cite Information Collection 9000-0075, in all correspondence related to this collection. All comments received will be posted without change to<E T="03">http://www.regulations.gov,</E>including any personal and/or business confidential information provided.</P>
        </ADD>
        <FURINF>
          <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>

          <P>Mr. Curtis E. Glover, Sr., Procurement Analyst, Office of Acquisition Policy, GSA (202) 501-1448 or email<E T="03">curtis.glover@gsa.gov.</E>
          </P>
        </FURINF>
      </PREAMB>
      <SUPLINF>
        <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
        <HD SOURCE="HD1">A. Purpose</HD>
        <P>Property, as used in Part 45, means all property, both real and personal. It includes facilities, material, special tooling, special test equipment, and agency-peculiar property. Government property includes both Government-furnished property and contractor-acquired property.</P>
        <P>Contractors are required to establish and maintain a property system that will control, protect, preserve, and maintain all Government property because the contractor is responsible and accountable for all Government property under the provisions of the contract including property located with subcontractors. This clearance covers the following requirements:</P>
        <P>(a) FAR 45.606-1 requires a contractor to submit inventory schedules.</P>
        <P>(b) FAR 45.606-3(a) requires a contractor to correct and resubmit inventory schedules as necessary.</P>
        <P>(c) FAR 52.245-1(f)(1)(ii) requires contractors to receive, record, identify and manage Government property.</P>
        <P>(d) FAR 52.245-1(f)(1)(iii) requires contractors to create and maintain records of all Government property accountable to the contract.</P>
        <P>(e) FAR 52.245-1(f)(1)(iv) requires contractors to periodically perform, record, and report physical inventories during contract performance.</P>
        <P>(f) FAR 52.245-1(f)(1)(vi) requires contractors to have a process to create and provide reports.</P>
        <P>(g) FAR 52.245-1(f)(1)(viii) requires contractors to promptly disclose and report Government Property in its possession that is excess to contract performance.</P>
        <P>(h) FAR 52.245-1(f)(1)(ix) requires contractors to disclose and report to the Property Administrator the need for replacement and/or capital rehabilitation.</P>
        <P>(i) FAR 52.245-1(f)(1)(x) requires contractors to perform and report to the Property Administrator contract property closeout.</P>
        <P>(j) FAR 52.245-1(f)(2) requires contractors to establish and maintain source data, particularly in the areas of recognition of acquisitions and dispositions of material and equipment.</P>
        <P>(k) FAR 52.245-1(j)(4) requires contractors to submit inventory disposal schedules to the Plant Clearance Officer.</P>
        <P>(l) FAR 52.245-9(d) requires a contractor to identify the property for which rental is requested.</P>
        <HD SOURCE="HD1">B. Annual Reporting Burden</HD>
        <P>The estimated number of respondents published in the<E T="04">Federal Register</E>at 76 FR 18497, on April 4, 2011 was incorrectly stated at 4,875 rather than 14,875. This is corrected, and as a result, the estimated total burden hours is revised to 4,350,650. These estimated<PRTPAGE P="51027"/>total burden hours are lower than the previously approved estimated total burden hours of 6,226,350. The estimated total burden hours are lower because the amendments under FAR Case 2010-009 removed the requirement for Government approval of contractor scrap procedures, and submission of inventory schedules and scrap lists from a contractor without scrap procedurs, prior to allowing the contractor to dispose of ordinary production scrap. The practice unnecessarily burdened contractors that generated small amounts of scrap.</P>
        <P>
          <E T="03">Number of Respondents:</E>14,875.</P>
        <P>
          <E T="03">Responses per Respondent:</E>910.267.</P>
        <P>
          <E T="03">Total Responses:</E>13,540,225.</P>
        <P>
          <E T="03">Average Burden Hours per Response:</E>.3213.</P>
        <P>
          <E T="03">Total Burden Hours:</E>4,350,650.</P>
        <P>
          <E T="03">Obtaining Copies of Proposals:</E>Requesters may obtain a copy of the information collection documents from the General Services Administration, Regulatory Secretariat (MVCB), 1275 First Street NE., Washington, DC 20417, telephone (202) 501-4755.</P>
        <P>Please cite OMB Control No. 9000-0075, Government Property, in all correspondence.</P>
        <SIG>
          <DATED>Dated: August 17, 2012.</DATED>
          <NAME>William Clark,</NAME>
          <TITLE>Acting Director, Federal Acquisition Policy Division, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Govenrmentwide Policy.</TITLE>
        </SIG>
      </SUPLINF>
      <FRDOC>[FR Doc. 2012-20741 Filed 8-22-12; 8:45 am]</FRDOC>
      <BILCOD>BILLING CODE 6820-EP-P</BILCOD>
    </NOTICE>
    <NOTICE>
      <PREAMB>
        <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
        <SUBAGY>Food and Drug Administration</SUBAGY>
        <DEPDOC>[Docket No. FDA-2012-N-0892]</DEPDOC>
        <SUBJECT>Agency Information Collection Activities; Proposed Collection; Comment Request; Communicating Composite Scores in Direct-to-Consumer Advertising</SUBJECT>
        <AGY>
          <HD SOURCE="HED">AGENCY:</HD>
          <P>Food and Drug Administration, HHS.</P>
        </AGY>
        <ACT>
          <HD SOURCE="HED">ACTION:</HD>
          <P>Notice.</P>
        </ACT>
        <SUM>
          <HD SOURCE="HED">SUMMARY:</HD>

          <P>The Food and Drug Administration (FDA) is announcing an opportunity for public comment on the proposed collection of certain information by the Agency. Under the Paperwork Reduction Act of 1995 (the PRA), Federal Agencies are required to publish notice in the<E T="04">Federal Register</E>concerning each proposed collection of information and to allow 60 days for public comment in response to the notice. This notice solicits comments on research entitled, “Communicating Composite Scores in 