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Code · REGISTER · 2006-07-10 · PROPOSED RULES · Agriculture Agriculture Department See Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 38842 E6-10715 Arts Arts and Humanities, National Foundat · Unknown

Unknown. Final rule

29,548 words·~134 min read·/register/2006/07/10/06-6071

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--- schema: federal-register doc_type: fedreg source_file: FR-2006-07-10.xml --- 71 131 Monday, July 10, 2006 Contents Agriculture Agriculture Department See Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 38842 E6-10715 Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Broadcasting Broadcasting Board of Governors NOTICES Meetings; Sunshine Act, 38842-38843 06-6132 Centers Centers for Disease Control and Prevention NOTICES Meetings:
National Center for Environmental Health/Agency for Toxic Substances and Disease Registry— Scientific Counselors Board, 38888 E6-10706 Children Children and Families Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 38888-38889 06-6079 Commerce Commerce Department See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Consumer Consumer Product Safety Commission RULES Voluntary standards involvement, 38754-38760 E6-10572 Customs Customs and Border Protection Bureau NOTICES Meetings:
Airport and Seaport Inspections User Fee Advisory Committee, 38891-38892 E6-10751 Defense Defense Department RULES Personnel, military and civilian: Personal commercial solicitation on DoD installations, 38760-38770 E6-10360 NOTICES Base closures and realignments; list of recommendations, 38865-38866 06-6078 Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 06-6061 38866-38868 06-6062 06-6063 06-6080 Energy Energy Department See Energy Efficiency and Renewable Energy Office See Federal Energy Regulatory Commission NOTICES Meetings:
Basic Energy Sciences Advisory Committee, 38868 E6-10725 Energy Energy Efficiency and Renewable Energy Office PROPOSED RULES Commercial and industrial equipment; energy efficiency program: Test procedures and efficiency standards— Small electric motors, 38799-38808 E6-10437 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: Mississippi, 38773-38776 E6-10745 Nebraska, 38776-38780 E6-10730 New Jersey, 38770-38772 E6-10743 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States:
Indiana, 38824-38831 E6-10679 Nebraska, 38831-38832 E6-10749 NOTICES Agency information collection activities; proposals, submissions, and approvals, 38878-38879 E6-10737 Air pollution control: State operating permits programs— New Jersey, 38879-38880 E6-10735 Air quality; prevention of significant deterioration (PSD): Permit determinations— Nevada Energy Investment, LLC, et al.; correction, 38880 E6-10742 Grants and other Federal assistance: Grantee performance evaluation reports; various states, 38880-38881 E6-10741 Meetings:
Water quality standards; designated uses and use attainability analyses, 38881 E6-10677 FCC Federal Communications Commission RULES Common carrier services: Federal-State Joint Board on Universal Service; IP-enabled services, 38781-38797 06-6059 PROPOSED RULES Common carrier services: Universal service contribution methodology, 38832-38841 06-6060 Federal Emergency Federal Emergency Management Agency RULES Flood insurance; communities eligible for sale: Tennessee and Louisiana, 38780-38781 06-6071 NOTICES Disaster and emergency areas:
New Hampshire, 38892 E6-10704 Federal Energy Federal Energy Regulatory Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 38868-38869 E6-10695 Electric rate and corporate regulation combined filings, 38873-38874 E6-10702 Environmental statements; availability, etc.: Calhoun LNG, L.P., 38874-38875 E6-10687 Duke Power Co., LLC, 38875-38876 E6-10696 Meetings: Bulk-power system; mandatory reliability standards; technical conference, 38876-38877 E6-10698 Off-the-record communications, 38877 E6-10699 Utility and railroad representatives; discussions on market and reliability matters, 38877 E6-10701 *Applications, hearings, determinations, etc.:* ANR Pipeline Co., 38869 E6-10686 California Independent System Operator Corp., 38870 E6-10692 IEP Power Marketing, LLC, 38870 E6-10690 Kern River Gas Transmission Co., 38870-38871 E6-10700 Kuehne Chemical Co., Inc., 38871 E6-10691 Mardi Gras Pipeline, L.L.C, 38871-38872 E6-10688 Michigan Electric Transmission Co., LLC, 38872 E6-10694 Northern Natural Gas Co., 38872-38873 E6-10689 Premcor Refining Group, Inc., 38873 E6-10693 Federal Highway Federal Highway Administration NOTICES Environmental statements; availability, etc.:
Pulaski and Laurel Counties, KY, 38964 06-6057 Federal Housing Federal Housing Finance Board NOTICES Meetings; Sunshine Act, 38881 06-6112 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Formations, acquisitions, and mergers, 38881 E6-10711 Fish Fish and Wildlife Service NOTICES Environmental statements; availability, etc.: Long Lake National Wildlife Refuge Complex, ND; comprehensive conservation plan, 38892-38893 E6-10705 Forest Forest Service NOTICES Meetings:
Resource Advisory Committees— Siskiyou County, 38842 06-6068 GSA General Services Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 06-6061 38866-38868 06-6062 06-6063 06-6080 Health Health and Human Services Department See Centers for Disease Control and Prevention See Children and Families Administration See National Institutes of Health NOTICES Federal real property use to assist homeless, 38882-38883 E6-10703 Meetings:
American Health Information Community Biosurveillance Data Steering Group, 38883 06-6104 Organization, functions, and authority delegations: Office of Resources and Technology, 38884-38888 06-6067 Homeland Homeland Security Department See Customs and Border Protection Bureau See Federal Emergency Management Agency Industry Industry and Security Bureau NOTICES Export privileges, actions affecting: Ihsan Medhat Elashi, 38843-38850 06-6022 Meetings: Information Systems Technical Advisory Committee, 38850 06-6100 Sensors and Instrumentation Technical Advisory Committee, 38850-38851 06-6099 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service International International Trade Administration NOTICES Antidumping:
Circular welded non-alloy steel pipe and tube from— Mexico, 38851-38852 E6-10736 Folding metal tables and chairs from— China, 38852-38860 E6-10740 Pure Magnesium from— China, 38860-38861 E6-10744 Countervailing duties: Cut-to-length carbon-quality steel plate from— Korea, 38861-38862 E6-10731 Meetings: Exporters’ Textile Advisory Committee, 38862-38863 E6-10746 International International Trade Commission NOTICES Import investigations: Power supply controllers and products containing the same, 38901-38902 06-6081 Meetings;
Sunshine Act, 38902 06-6124 Labor Labor Department See Mine Safety and Health Administration Land Land Management Bureau NOTICES Resource management plans, etc.: East Alaska Planning Area, AK, 38893-38895 E6-10785 Mine Mine Safety and Health Administration NOTICES Federal Mine Safety and Health Act: Limited liability company agents; interpretative bulletin, 38902-38905 E6-10666 NASA National Aeronautics and Space Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 06-6061 38866-38868 06-6062 06-6063 06-6080 National Foundation National Foundation on the Arts and the Humanities NOTICES Agency information collection activities; proposals, submissions, and approvals, 38905-38906 06-6058 NIH National Institutes of Health NOTICES Agency information collection activities; proposals, submissions, and approvals, 38889 E6-10726 Meetings:
National Toxicology Program— Scientific Counselors Board, 38889-38890 E6-10728 Patent licenses; non-exclusive, exclusive, or partially exclusive: Can-Fite BioPharma, Ltd., 38890-38891 E6-10727 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation management: Alaska; fisheries of Exclusive Economic Zone— Pacific ocean perch, 38797-38798 06-6097 Caribbean, Gulf, and South Atlantic fisheries— Shrimp fishery, 38797 06-6098 NOTICES Environmental statements; availability, etc.:
Pacific Coast Groundfish Fishery Management Plan, 38863 E6-10734 Meetings: New England Fishery Management Council, 38864 E6-10733 Pacific Fishery Management Council, 38864 E6-10732 National Park National Park Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 06-6069 38895-38897 06-6070 Environmental statements; availability, etc.: Death Valley National Park, CA, 38897-38898 06-6072 Environmental statements; notice of intent: Lava Beds National Monument, CA; general management plan, 38898-38899 06-6074 Yosemite National Park, CA, 38899-38900 06-6073 Meetings:
Great Sand Dunes National Park Advisory Council, 38900-38901 06-6076 Selma to Montgomery National Historic Trail Advisory Council, 38901 06-6075 Nuclear Nuclear Regulatory Commission NOTICES Meetings: Nuclear Waste Advisory Committee, 38906-38908 E6-10708 E6-10709 Patent Patent and Trademark Office PROPOSED RULES Practice and procedure: Information disclosure statement requirements and other related matters; proposed changes, 38808-38823 06-6027 NOTICES Agency information collection activities; proposals, submissions, and approvals, 38864-38865 E6-10707 Personnel Personnel Management Office RULES Senior Executive Service:
Pay and performance awards; rate increase, 38753-38754 E6-10750 Postal Postal Service RULES Domestic Mail Manual: Electronic Verification System (e-VS); postage manifesting and payment of Parcel Select mailings, 38966-38978 06-6021 SEC Securities and Exchange Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 38908 06-6065 Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 38911-38913 E6-10684 Boston Stock Exchange, Inc., 38913-38914 E6-10721 Chicago Stock Exchange, Inc., 38915-38917 E6-10714 International Securities Exchange, Inc., 38917-38922 E6-10682 E6-10717 E6-10719 National Association of Securities Dealers, Inc., 38922-38953 E6-10713 E6-10718 06-6038 06-6083 New York Stock Exchange LLC, 38953 E6-10716 NYSE Arca, Inc., 38953-38961 E6-10681 E6-10685 Options Clearing Corp., 38961-38963 E6-10720 E6-10722 *Applications, hearings, determinations, etc.:* Credit Suisse Target Return Fund et al., 38909-38910 E6-10683 Nasdaq Stock Market LLC, 38910-38911 E6-10712 Transportation Transportation Department See Federal Highway Administration Separate Parts In This Issue Part II Postal Service, 38966-38978 06-6021 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.
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. 71 131 Monday, July 10, 2006 Rules and Regulations OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 534 RIN 3206-AL01 Senior Executive Service Pay AGENCY: Office of Personnel Management. ACTION: Final rule. SUMMARY: The Office of Personnel Management is issuing final regulations to provide agencies with the authority to increase the rates of basic pay of certain members of the Senior Executive Service whose pay was set before the agency's senior executive performance appraisal system was certified for the calendar year involved.
The final regulations allow an agency to review the rate of basic pay of these employees and provide an additional pay increase, if warranted, up to the rate for level II of the Executive Schedule upon certification of the agency's senior executive performance appraisal system for the current calendar year. DATES: *Effective Date:* The final regulations will become effective on July 10, 2006. FOR FURTHER INFORMATION CONTACT: Jo Ann Perrini by telephone at
(202)606-2858; by FAX at
(202)606-0824; or by e-mail at *pay-performance-policy@opm.gov.* SUPPLEMENTARY INFORMATION: On March 3, 2006, the Office of Personnel Management
(OPM)issued proposed regulations to provide agencies with the authority to increase the rates of basic pay of certain members of the Senior Executive Service
(SES)whose pay was set before the agency's senior executive performance appraisal system was certified under 5 CFR part 430, subpart D, for the calendar year involved (71 FR 10913). We proposed that agencies be authorized to review the rates of basic pay set for these SES members and provide an additional pay increase, if warranted, up to the rate for level II of the Executive Schedule upon certification of the agency's senior executive performance appraisal system for the current calendar year. The additional pay increase would not be considered a pay adjustment for the purpose of applying 5 CFR 534.404(c) (“the 12-month rule”). The 30-day public comment period ended on April 3, 2006. During the public comment period, OPM received comments from eight Federal agencies and one association of Federal executives. All of the commenters fully support OPM's proposed regulations. Therefore, we are adopting the proposed regulations as final. “Certification Gap” Under the new SES performance-based pay system, an agency must set and adjust the rate of basic pay for an SES member on the basis of the employee's performance and/or contribution to the agency's performance, as determined by the agency through the administration of its performance management system(s) for senior executives. Under 5 U.S.C. 5382(b), the maximum rate of the SES rate range may not exceed the rate for level III of the Executive Schedule unless the agency's senior executive performance appraisal system is certified under 5 U.S.C. 5307(d). By law, such certification must be made on a calendar year basis. (See 5 U.S.C. 5307(d) and 5 CFR part 430, subpart D.) Therefore, an agency may not set or adjust pay for an SES member at a rate above the rate for level III until its senior executive performance appraisal system is certified for the calendar year involved. Since many agencies' senior executive performance appraisal systems are not certified at the beginning of a calendar year, there is a gap from the time an agency may set or adjust pay above level III (in the previous calendar year) to the time an agency may set or adjust pay above level III upon certification of its senior executive performance appraisal system (in the next calendar year). The regulations at 5 CFR 534.404(e)(2) allow agencies that eventually receive certification of their senior executive performance appraisal system(s) to provide an additional pay increase to certain SES members, such as a new appointee with superior leadership skills, an SES member accepting a position with substantially greater responsibility, or an SES member who is critical to the mission of the agency and who is likely to leave the agency. This is accomplished by providing for an additional exception to the “12-month rule.” The requirement in 5 U.S.C. 5307(d) that senior executive performance appraisal systems be certified on a calendar year basis may be changed only through legislation. Although the commenters fully support OPM's efforts to close the “certification gap,” several recognized the need for a long-term solution and recommended a legislative change to allow senior executive performance appraisal systems to be certified on an annual basis (i.e., once every 12 months), rather than on a calendar year basis, as required by current law. Effective Date Under 5 CFR 534.404(e)(2), the decision to provide an additional pay increase to an SES member may not be made effective before the date the agency's senior executive performance appraisal system is certified under 5 CFR part 430, subpart D, or after December 31st of the calendar year for which the agency's system is certified. An agency asked whether the effective date for providing an additional pay increase would be the effective date of the final regulations or the date the agency's senior executive performance appraisal system is certified. If an agency's senior executive performance appraisal system is certified for calendar year 2006 before the final regulations become effective, the earliest date an agency may provide an additional pay increase would be the effective date of the final regulations. The agency has no authority to provide an additional pay increase until the final regulations become effective. However, if an agency's senior executive performance appraisal system is certified for calendar year 2006 after the final regulations become effective, the earliest date an agency may provide an additional pay increase would be the date the agency's senior executive performance appraisal system is certified. Regulatory Flexibility Act I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they apply only to Federal agencies and employees. E.O. 12866, Regulatory Review This rule has been reviewed by the Office of Management and Budget in accordance with E.O. 12866. List of Subjects in 5 CFR Part 534 Government Employees, Hospitals, Students, and Wages. Office of Personnel Management. Linda M. Springer, Director. Accordingly, OPM is amending part 534 of title 5 of the Code of Federal Regulations as follows: PART 534—PAY UNDER OTHER SYSTEMS Subpart D—Pay and Performance Awards Under the Senior Executive Service 1. The authority citation for part 534 continues to read as follows: Authority: 5 U.S.C. 1104, 3161(d), 5307, 5351, 5352, 5353, 5376, 5382, 5383, 5384, 5385, 5541, 5550a, and sec. 1125 of the National Defense Authorization Act for FY 2004, Public Law 108-136, 117 Stat. 1638 (5 U.S.C. 5304, 5382, 5383, 7302; 18 U.S.C. 207). 2. In § 534.404, redesignate paragraphs (c)(3)(v) and
(vi)as (c)(3)(vi) and (vii), respectively, add new paragraph (c)(3)(v), and revise paragraph
(e)to read as follows: § 534.404 Setting and adjusting pay for senior executives.
(c)12-month rule. * * *
(3)* * *
(v)A determination to provide an additional pay increase under paragraph (e)(2) of this section when an agency's senior executive performance appraisal system is certified under 5 CFR part 430, subpart D, after the beginning of a calendar year;
(e)*Adjustments in pay after certification of applicable performance appraisal system.*
(1)In the case of an agency that obtains certification of a performance appraisal system for senior executives under 5 CFR part 430, subpart D, an authorized agency official may increase a covered senior executive's rate of basic pay up to the rate for level II of the Executive Schedule, consistent with the limitations in § 534.403(a)(3). The authorized agency official may provide an increase in pay if warranted under the conditions prescribed in paragraph
(b)of this section and if the senior executive is otherwise eligible for such an increase (i.e., he or she did not receive a pay adjustment under § 534.404(c) during the previous 12-month period). An adjustment in pay made under this paragraph is considered a pay adjustment for the purpose of applying § 534.404(c).
(2)In the case of an agency that was prevented from establishing or adjusting a rate of basic pay above the rate for level III of the Executive Schedule for an individual upon initial appointment to the SES under § 534.404(a) or for a current SES member using one of the exceptions to the 12-month rule in § 534.404(c)(4)(i), (ii), or
(iii)because the agency had not yet obtained certification of its performance appraisal system for senior executives under 5 CFR part 430, subpart D, in the current calendar year, an authorized agency official may increase such a senior executive's rate of basic pay up to the rate for level II of the Executive Schedule upon certification of the agency's senior executive performance appraisal system, consistent with the limitations in § 534.403(a)(3). The authorized agency official may review the previous determination to set or adjust the pay of a senior executive to determine whether, and to what extent, an additional pay increase may be warranted based on the same criteria used for the previous determination. The determination to provide an additional pay increase may not be made effective before the date the agency's senior executive performance appraisal system is certified under 5 CFR part 430, subpart D, or after December 31st of the calendar year for which the agency's system is certified. An adjustment in pay made under this paragraph is not considered a pay adjustment for the purpose of applying § 534.404(c) and does not begin a new 12-month period for that purpose. [FR Doc. E6-10750 Filed 7-7-06; 8:45 am] BILLING CODE 6325-39-P CONSUMER PRODUCT SAFETY COMMISSION 16 CFR Part 1031 Commission Involvement in Voluntary Standards AGENCY: Consumer Product Safety Commission. ACTION: Final rule. SUMMARY: The Consumer Product Safety Commission (CPSC or Commission) is revising its regulations governing the Commission's involvement in voluntary standards activities. The revisions more accurately reflect current Commission practices and strengthen oversight of staff involvement in standards making activities. The revisions also codify existing procedures for internet disclosure and public comment regarding standards activities in which Commission staff is actively involved. 1 1 Chairman Hal Stratton filed a statement which is available from the Office of the Secretary or on the Commission's Web site at *http://www.cpsc.gov.* EFFECTIVE DATE: July 10, 2006. FOR FURTHER INFORMATION CONTACT: Barbara Parisi, Office of the General Counsel, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814; telephone
(301)504-7879; *bparisi@cpsc.gov.* SUPPLEMENTARY INFORMATION: Since this rule relates solely to rules of agency organization, procedure and practice, pursuant to 5 U.S.C. 553(b) notice and other public procedures are not required. The rule is effective immediately upon publication in the **Federal Register** . Further, this action is not a rule as defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612, and, thus, is exempt from the provisions of the Act. Background Congress enacted the Consumer Product Safety Act
(CPSA)in 1972, codified at 15 U.S.C. 2051, *et seq.* , to protect consumers against unreasonable risks of injury associated with consumer products. In furtherance of that goal, Congress established the Consumer Product Safety Commission (CPSC or Commission) as an independent regulatory agency, and granted it broad authority to promulgate mandatory safety standards for consumer products as a necessary alternative to industry self-regulation. 15 U.S.C. 2056(a)(1)(A). As initially enacted, the CPSA did not contain any language referring to voluntary standards. In 1978, the Commission issued regulations describing the extent and form of Commission involvement in the development of voluntary standards, 43 FR 19216, 16 CFR part 1032—Commission Involvement in Voluntary Standards Activities. In the Background section, the Commission acknowledged the contribution which voluntary standards had made to reducing hazards associated with consumer products, and stated that it supported an effective voluntary standards program. It also stated its belief that a proper combination of voluntary and mandatory standards can have a higher “payoff” in increased product safety than either mandatory or voluntary activities alone could have. In 1981, Congress amended the CPSA, the Federal Hazardous Substances Act, and the Flammable Fabrics Act to mandate that the Commission give preference to voluntary standards over promulgating mandatory standards if it determines that a voluntary standard will eliminate or adequately reduce an injury risk, and that there will be a likelihood of substantial compliance with the standard. 15 U.S.C. 2056(b), 15 U.S.C. 1262(g)(2), 15 U.S.C. 1193(h)(2). The amendments also require the Commission to provide administrative and technical assistance to organizations engaged in voluntary standards development. 15 U.S.C. 2054(a)(3) and (4). In 1989, the CPSC adopted regulations to reflect the policies set forth by the Congress in the 1981 amendments, Pub. L. 97-35, making several changes in the agency's policies on employee participation in voluntary standards development activities, and combining Part 1031, Employees Membership and Participation in Voluntary Standards Organizations, and Part 1032, Commission Involvement in Voluntary Standards Activities, into a revised Part 1031, Commission Participation and Commission Employee Involvement in Voluntary Standards Activities. 54 FR 6652. Explanation of Revisions and Additions in Part 1031 1. Revisions to 16 CFR 1031.2 Background and 1031.9(c)(1) Purpose and Scope To More Accurately Reflect the Effect of Executive and Legislative Enactments Pertaining to Voluntary Standards The existing regulation is inaccurate with respect to the legal effect of OMB Circular No. A-119, as this document does not apply to CPSC rulemaking activities. Additionally, the current regulation needs to be updated to include reference to 1990 Consumer Product Safety Information Act (CPSIA), a statute which provides further Congressional guidance on agency management of voluntary standards. 2. Revisions To Ensure That Voluntary Standards Activities Stem From the Operating Plan, Performance Budget, or Other Official Expressions of Commission Intent Given the existence of thousands of voluntary standards, the Commission must act judiciously in selecting the appropriate activities in which to engage. The current regulation does not make reference to the existing agency practice of permitting staff to participate only in those activities specifically identified in the operating plan, performance budget, mid-year review, or other official Commission document. Where appropriate, Part 1031 should include language to permit staff involvement in only those standards expressly approved by the Commission. 3. Revisions to 16 CFR 1031.6 To Eliminate Monitoring/Participating Distinction Regarding Degrees of Employee Involvement in Standards Activities 16 CFR 1031.6 sets forth to different levels of staff involvement in voluntary standards activities, monitoring and participation. while this distinction may have initially served some purpose, the agency has over time adopted a more pragmatic approach to oversee staff involvement generally with less focus on the extent of the involvement. To more accurately reflect the current practice of oversight of staff involvement in voluntary standards activities, the regulation requires revision. 4. Revisions to CFR 1031.9 To Clarify Reporting Requirements of Staff to the Voluntary Standards Coordinator Under § 1031.9(d), staff must obtain management approval prior to participation in voluntary standards activities. Once approved, however, there is no provision to ensure the ongoing oversight of their involvement. To address this deficiency, the regulation should incorporate specific reporting requirements that staff must fulfill for the duration of their involvement with any particular standard. This revision has the added effect of improving internal management practices by placing all staff activities in the voluntary standards arena under the oversight of the Voluntary Standards Coordinator. 5. Addition of Subpart C To Codify Existing Internet Disclosure and Public Comment Procedures In October, 2004, the CPSC launched a six month pilot program to provide the public with information on voluntary standards and to provide an advance notice on CPSC staff positions for public review and comment for a limited number of voluntary standard activities. The primary goal of the program was to make the staff's activities more transparent and to obtain the benefit of public review and input before finalizing CPSC staff positions. In August, 2005, following the staff's recommendation, the Commission voted unanimously to continue the program and expand it to include links on the CPSC Web site with information pertaining to all of our voluntary standards activities. “Internet vetting” of staff involvement in voluntary standards activities represents a significant step to improving transparency of staff activities and is consistent with the agency's mission and goals. List of Subjects in 16 CFR Part 1031 Business and industry, Consumer protection, Voluntary standards. For the reasons stated in the preamble, 16 CFR part 1031 is revised to read as follows: PART 1031—COMMISSION PARTICIPATION AND COMMISSION EMPLOYEE INVOLVEMENT IN VOLUNTARY STANDARDS ACTIVITIES Sec. Subpart A—General Policies 1031.1 Purpose and scope. 1031.2 Background. 1031.3 Consumer Product Safety Act amendments. 1031.4 Effect of voluntary standards activities on Commission activities. 1031.5 Criteria for Commission involvement in voluntary standards activities. 1031.6 Extent and form of Commission involvement in the development of voluntary standards. 1031.7 Commission support of voluntary standards activities. 1031.8 Voluntary Standards Coordinator. Subpart B—Employee Involvement 1031.9 Purpose and scope. 1031.10 Definitions. 1031.11 Procedural safeguards. 1031.12 Membership criteria. 1031.13 Criteria for Employee Involvement. 1031.14 Observation criteria. 1031.15 Communication criteria. Subpart C—Public Participation and Comment 1031.16 Purpose and scope. 1031.17 Background. 1031.18 Method of review and comment. Authority: 15 U.S.C. 2051-2083; 15 U.S.C. 1261-1276; 15 U.S.C. 1191-1204. Subpart A—General Policies § 1031.1 Purpose and scope.
(a)This part 1031 sets forth the Consumer Product Safety Commission's guidelines and requirements on participating in the activities of voluntary standards bodies. Subpart A sets forth general policies on Commission involvement, and subpart B sets forth policies and guidelines on employee involvement in voluntary standards activities. Subpart C sets forth the criteria governing public review and comment on staff involvement in voluntary standards activities.
(b)For purposes of both subpart A and subpart B of this part 1031, voluntary standards bodies are private sector domestic or multinational organizations or groups, or combinations thereof, such as, but not limited to, all non-profit organizations, industry associations, professional and technical societies, institutes, and test laboratories, that are involved in the planning, development, establishment, revision, review or coordination of voluntary standards. Voluntary standards development bodies are voluntary standards bodies, or their sub-groups, that are devoted to developing or establishing voluntary standards. § 1031.2 Background.
(a)Congress enacted the Consumer Product Safety Act in 1972 to protect consumers against unreasonable risks of injury associated with consumer products. In order to achieve that goal, Congress established the Consumer Product Safety Commission as an independent regulatory agency and granted it broad authority to promulgate mandatory safety standards for consumer products as a necessary alternative to industry self regulation.
(b)In 1981, the Congress amended the Consumer Product Safety Act, the Federal Hazardous Substances Act, and the Flammable Fabrics Act, to require the Commission to rely on voluntary standards rather than promulgate a mandatory standard when voluntary standards would eliminate or adequately reduce the risk of injury addressed and it is likely that there will be substantial compliance with the voluntary standards. (15 U.S.C. 2056(b), 15 U.S.C. 1262(g)(2), 15 U.S.C. 1193(h)(2)). The 1981 Amendments also require the Commission, after any notice or advance notice of proposed rulemaking, to provide technical and administrative assistance to persons or groups who propose to develop or modify an appropriate voluntary standard. (15 U.S.C. 2054(a)(3)). Additionally, the amendments encourage the Commission to provide technical and administrative assistance to groups developing product safety standards and test methods, taking into account Commission resources and priorities (15 U.S.C. 2054(a)(4)). Although the Commission is required to provide assistance to such groups, it may determine the level of assistance in accordance with the level of its own administrative and technical resources and in accordance with its assessment of the likelihood that the groups being assisted will successfully develop a voluntary standard that will preclude the need for a mandatory standard.
(c)In 1990, Congress passed the Consumer Product Safety Improvement Act (CPSIA), amending section 15(b) of the CPSA to require that manufacturers, distributors, and retailers notify the Commission about products that fail to comply with an applicable voluntary standard upon which the Commission has relied under section 9 of the CPSA. CPSIA also amended section 9(b)(2) of the CPSA to require that the CPSC afford interested persons the opportunity to comment regarding any voluntary standard prior to CPSC termination and reliance. § 1031.3 Consumer Product Safety Act amendments. The Consumer Product Safety Act, as amended, contains several sections pertaining to the Commission's participation in the development and use of voluntary standards.
(a)Section 7(b) provides that the Commission shall rely on voluntary consumer product safety standards prescribing requirements described in subsection
(a)whenever compliance with such voluntary standards would eliminate or adequately reduce the risk of injury addressed and it is likely that there will be substantial compliance with such voluntary standards. (15 U.S.C. 2056(b)).
(b)Section 5(a)(3) provides that the Commission shall, following publication of an advance notice of proposed rulemaking or a notice of proposed rulemaking for a product safety rule under any rulemaking authority administered by the Commission, assist public and private organizations or groups of manufacturers, administratively and technically, in the development of safety standards addressing the risk of injury identified in such notice. (15 U.S.C. 2054(a)(3)).
(c)Section 5(a)(4) provides that the Commission shall, to the extent practicable and appropriate (taking into account the resources and priorities of the Commission), assist public and private organizations or groups of manufacturers, administratively and technically, in the development of product safety standards and test methods. (15 U.S.C. 2054(a)(4)). § 1031.4 Effect of voluntary standards activities on Commission activities. (a)(1) The Commission, in determining whether to begin proceedings to develop mandatory standards under the acts it administers, considers whether mandatory regulation is necessary or whether there is an existing voluntary standard that adequately addresses the problem and the extent to which that voluntary standard is complied with by the affected industry.
(2)The Commission acknowledges that there are situations in which adequate voluntary standards, in combination with appropriate certification programs, may be appropriate to support a conclusion that a mandatory standard is not necessary. The Commission may find that a mandatory standard is not necessary where compliance with an existing voluntary standard would eliminate or adequately reduce the risk of injury associated with the product, contains requirements and test methods that have been evaluated and found acceptable by the Commission, and it is likely that there will be substantial and timely compliance with the voluntary standard. Under such circumstances, the Commission may agree to encourage industry compliance with the voluntary standard and subsequently evaluate the effectiveness of the standard in terms of accident and injury reduction for products produced in compliance with the standard.
(3)In evaluating voluntary standards, the Commission will relate the requirements of the standard to the identified risks of injury and evaluate the requirements in terms of their effectiveness in eliminating or reducing the risks of injury. The evaluation of voluntary standards will be conducted by Commission staff members, including representatives of legal, economics, engineering, epidemiological, health sciences, human factors, other appropriate interests, and the Voluntary Standards Coordinator. The staff evaluation will be conducted in a manner similar to evaluations of standards being considered for promulgation as mandatory standards.
(4)In the event that the Commission has evaluated an existing voluntary standard and found it to be adequate in all but a few areas, the Commission may defer the initiation of a mandatory rulemaking proceeding and request the voluntary standards organization to revise the standard to address the identified inadequacies expeditiously.
(b)In the event the Commission determines that there is no existing voluntary standard that will eliminate or adequately reduce a risk of injury the Commission may commence a proceeding for the development of a consumer product safety rule or a regulation in accordance with section 9 of the Consumer Product Safety Act, 15 U.S.C. 2058, section 3(f) of the Federal Hazardous Substances Act, 15 U.S.C. 1262(f), or section 4(a) of the Flammable Fabrics Act, 15 U.S.C. 1193(g), as may be applicable. In commencing such a proceeding, the Commission will publish an advance notice of proposed rulemaking which shall, among other things, invite any person to submit to the Commission an existing standard or portion of an existing standard, or to submit a statement of intention to modify or develop, within a reasonable period of time, a voluntary standard to address the risk of injury.
(c)The Commission will consider those provisions of a voluntary standard that have been reviewed, evaluated, and deemed to be adequate in addressing the specified risks of injury when initiating a mandatory consumer product safety rule or regulation under the Consumer Product Safety Act, the Federal Hazardous Substances Act, or the Flammable Fabrics Act, as may be applicable. Comments will be requested in the advance notice of proposed rulemaking on the adequacy of such voluntary standard provisions. § 1031.5 Criteria for Commission involvement in voluntary standards activities. The Commission will consider the extent to which the following criteria are met in considering Commission involvement in the development of voluntary safety standards for consumer products:
(a)The likelihood the voluntary standard will eliminate or adequately reduce the risk of injury addressed and that there will be substantial and timely compliance with the voluntary standard.
(b)The likelihood that the voluntary standard will be developed within a reasonable period of time.
(c)Exclusion, to the maximum extent possible, from the voluntary standard being developed, of requirements which will create anticompetitive effects or promote restraint of trade.
(d)Provisions for periodic and timely review of the standard, including review for anticompetitive effects, and revision or amendment as the need arises.
(e)Performance-oriented and not design-restrictive requirements, to the maximum practical extent, in any standard developed.
(f)Industry arrangements for achieving substantial and timely industry compliance with the voluntary standard once it is issued, and the means of ascertaining such compliance based on overall market share of product production.
(g)Provisions in the standard for marking products conforming to the standard so that future Commission investigation can indicate the involvement of such products in accidents and patterns of injury.
(h)Provisions for insuring that products identified as conforming to such standards will be subjected to a testing and certification (including self-certification) procedure, which will provide assurance that the products comply with the standard.
(i)The openness to all interested parties, and the establishment of procedures which will provide for meaningful participation in the development of such standards by representatives of producers, suppliers, distributors, retailers, consumers, small business, public interests and other individuals having knowledge or expertise in the areas under consideration, and procedures for affording other due process considerations. § 1031.6 Extent and form of Commission involvement in the development of voluntary standards.
(a)The extent of Commission involvement will be dependent upon the Commission's interest in the particular standards development activity and the Commission's priorities and resources.
(b)The Commission's interest in a specific voluntary standards activity will be based in part on the frequency and severity of injuries associated with the product, the involvement of the product in accidents, the susceptibility of the hazard to correction through standards, and the overall resources and priorities of the Commission. Commission involvement in voluntary standards activities generally will be guided by the Commission's operating plan and performance budget.
(c)Commission involvement in voluntary standards activities varies.
(1)The Commission staff may maintain an awareness of the voluntary standards development process through oral or written inquiries, receiving and reviewing minutes of meetings and copies of draft standards, or attending meetings for the purpose of observing and commenting during the standards development process in accordance with subpart B of this part. For example, Commission staff may respond to requests from voluntary standards organizations, standards development committees, trade associations and consumer organizations; by providing information concerning the risks of injury associated with particular products, National Electronic Injury Surveillance System (NEISS) data, death, injury, and incident data, summaries and analyses of in-depth investigation reports; discussing Commission goals and objectives with regard to voluntary standards and improved consumer product safety; responding to requests for information concerning Commission programs; and initiating contacts with voluntary standards organizations to discuss cooperative voluntary standards activities.
(2)Employee involvement may include membership as defined in § 1031.10(a). Commission staff may regularly attend meetings of a standard development committee or group and take an active part in the discussions of the committee and in developing the standard, in accordance with subpart B of this part. The Commission may contribute to the deliberations of the committee by expending resources to provide technical assistance (e.g., research, engineering support, and information and education programs) and administrative assistance (e.g., travel costs, hosting meetings, and secretarial functions) in support of the development and implementation of those voluntary standards referenced in the Commission's operating plan, performance budget, mid-year review, or other official Commission document. The Commission may also support voluntary standards activities as described in § 1031.7. Employee involvement may include observation as defined in § 1031.10(c).
(d)Normally, the total amount of Commission support given to a voluntary standards activity shall be no greater than that of all non-Federal participants in that activity, except where it is in the public interest to do so.
(e)In the event of duplication of effort by two or more groups (either inside or outside the Commission) in developing a voluntary standard for the same product or class of products, the Commission shall encourage the several groups to cooperate in the development of a single voluntary standard. § 1031.7 Commission support of voluntary standards activities.
(a)The Commission's support of voluntary safety standards development activities may include any one or a combination of the following actions:
(1)Providing epidemiological and health science information and explanations of hazards for consumer products.
(2)Encouraging the initiation of the development of voluntary standards for specific consumer products.
(3)Identifying specific risks of injury to be addressed in a voluntary standard.
(4)Performing or subsidizing technical assistance, including research, health science data, and engineering support, in the development of a voluntary standard activity in which the Commission staff is participating.
(5)Providing assistance on methods of disseminating information and education about the voluntary standard or its use.
(6)Performing a staff evaluation of a voluntary standard to determine its adequacy and efficacy in reducing the risks of injury that have been identified by the Commission as being associated with the use of the product.
(7)Encouraging state and local governments to reference or incorporate the provisions of a voluntary standard in their regulations or ordinances and to participate in government or industrial model code development activities, so as to develop uniformity and minimize conflicting State and local regulations.
(8)Monitoring the number and market share of products conforming to a voluntary safety standard.
(9)Providing for the involvement of agency personnel in voluntary standards activities as described in subpart B of this part.
(10)Providing administrative assistance, such as hosting meetings and secretarial assistance.
(11)Providing funding support for voluntary standards development, as permitted by the operating plan, performance budget, mid-year review, or other official Commission document.
(12)Taking other actions that the Commission believes appropriate in a particular situation.
(b)[Reserved] § 1031.8 Voluntary Standards Coordinator.
(a)The Executive Director shall appoint a Voluntary Standards Coordinator to coordinate agency participation in voluntary standards bodies so that:
(1)The most effective use is made of agency personnel and resources, and
(2)The views expressed by such personnel are in the public interest and, at a minimum, do not conflict with the interests and established views of the agency.
(b)The Voluntary Standards Coordinator is responsible for managing the Commission's voluntary standards program, as well as preparing and submitting to the Commission a semiannual summary of staff's voluntary standards activities. The summary shall set forth, among other things, the goals of each voluntary standard under development, the extent of CPSC staff activity, the current status of standards development and implementation, and, if any, recommendations for additional Commission action. The Voluntary Standards Coordinator shall also compile information on the Commission's voluntary standards activities for the Commission's annual report. Subpart B—Employee Involvement § 1031.9 Purpose and scope.
(a)This subpart sets forth the Consumer Product Safety Commission's criteria and requirements governing membership and involvement by Commission officials and employees in the activities of voluntary standards development bodies.
(b)The Commission realizes there are advantages and benefits afforded by greater involvement of Commission personnel in the standards activities of domestic and international voluntary standards organizations. However, such involvement might present an appearance or possibility of the Commission giving preferential treatment to an organization or group or of the Commission losing its independence or impartiality. Also, such involvement may present real or apparent conflict of interest situations.
(c)The purpose of this subpart is to further the objectives and programs of the Commission and to do so in a manner that ensures that such involvement:
(1)Is consistent with the intent of the Consumer Product Safety Act and the other acts administered by the Commission;
(2)Is not contrary to the public interest;
(3)Presents no real or apparent conflict of interest, and does not result in or create the appearance of the Commission giving preferential treatment to an organization or group or the Commission compromising its independence or impartiality; and
(4)Takes into account Commission resources and priorities.
(d)Commission employees must obtain approval from their supervisor and the Office of the Executive Director to be involved in voluntary standards activities. They must regularly report to the Voluntary Standards Coordinator regarding their involvement in standards activities, and provide copies of all official correspondence and other communications between the CPSC and the standards developing entities.
(e)All Commission employees involved in voluntary standards activities are subject to any restrictions for avoiding conflicts of interest and for avoiding situations that would present an appearance of bias. § 1031.10 Definitions. For purposes of describing the level of involvement in voluntary standards activities for which Commission employees may be authorized, the following definitions apply:
(a)*Membership.* Membership is the status of an employee who joins a voluntary standards development or advisory organization or subgroup and is listed as a member. It includes all oral and written communications which are incidental to such membership.
(b)*Employee involvement.* Employee involvement may include the active, ongoing involvement of an official or employee in the development of a new or revised voluntary standard pertaining to a particular consumer product or to a group of products that is the subject of a Commission voluntary standards project. These projects should be those that are approved by the Commission, either by virtue of the agency's annual budget or operating plan, or by other specific agency authorization or decision, and are in accord with subpart A. Employee involvement may include regularly attending meetings of a standards development committee or group, taking an active part in discussions and technical debates, expressing opinions and expending other resources in support of a voluntary standard development activity. It includes all oral and written communications which are part of the process. Employee involvement may also involve maintaining an awareness related to general voluntary standards projects set forth in the agency's annual budget or operating plan or otherwise approved by the agency.
(c)*Observation.* Observation is the attendance by an official or employee at a meeting of a voluntary standards development group for the purpose of observing and gathering information. § 1031.11 Procedural safeguards.
(a)Subject to the provisions of this subpart and budgetary and time constraints, Commission employees may be involved in voluntary standards activities that will further the objectives and programs of the Commission, are consistent with ongoing and anticipated Commission regulatory programs as set forth in the agency's operating plan, and are in accord with the Commission's policy statement on involvement in voluntary standards activities set forth in subpart A of this part.
(b)Commission employees who are involved in the development of a voluntary standard and who later participate in an official evaluation of that standard for the Commission shall describe in any information, oral or written, presented to the Commission, the extent of their involvement in the development of the standard. Any evaluation or recommendation for Commission actions by such employee shall strive to be as objective as possible and be reviewed by higher-level Commission officials or employees prior to submission to the Commission.
(c)Involvement of a Commission official or employee in a voluntary standards committee shall be predicated on an understanding by the voluntary standards group that such involvement by Commission officials and employees is on a non-voting basis.
(d)In no case shall Commission employees or officials vote or otherwise formally indicate approval or disapproval of a voluntary standard during the course of a voluntary standard development process.
(e)Commission employees and officials who are involved in the development of voluntary standards may not accept voluntary standards committee leadership positions, e.g., committee chairman or secretary. Subject to prior approval by the Executive Director, the Voluntary Standards Coordinator may accept leadership positions with the governing bodies of standards making entities.
(f)Attendance of Commission personnel at voluntary standards meetings shall be noted in the public calendar and meeting summaries shall be submitted to the Office of the Secretary as required by the Commission's meetings policy, 16 CFR part 1012. § 1031.12 Membership criteria.
(a)The Commissioners, their special assistants, and Commission officials and employees holding the positions listed below, may not become members of a voluntary standards group because they either have the responsibility for making final decisions, or advise those who make final decisions, on whether to rely on a voluntary standard, promulgate a consumer product safety standard, or to take other action to prevent or reduce an unreasonable risk of injury associated with a product.
(1)The Commissioners;
(2)The Commissioners' Special Assistants;
(3)The General Counsel and General Counsel Staff;
(4)The Executive Director, the Deputy Executive Director, and Special Assistants to the Executive Director;
(5)The Associate Executive Directors and Office Directors;
(6)The Assistant Executive Director of the Office of Hazard Identification and Reduction, the Deputy Assistant Executive Director of the Office of Hazard Identification and Reduction and any Special Assistants to the Assistant Executive Director of that office.
(b)All other officials and employees not covered under § 1031.12(a) may be advisory, non-voting members of voluntary standards development and advisory groups with the advance approval of the Executive Director. In particular, the Commission's Voluntary Standards Coordinator may accept such membership.
(c)Commission employees or officials who have the approval of the Executive Director to accept membership in a voluntary standards organization or group pursuant to paragraph
(b)of this section shall apprise the General Counsel and the Voluntary Standards Coordinator prior to their acceptance.
(d)Commission officials or employees who desire to become a member of a voluntary standards body or group in their individual capacity must obtain prior approval of the Commission's Ethics Counselor for an outside activity pursuant to the Commission's Employee Standards of Conduct, 16 CFR part 1030. § 1031.13 Criteria for Employee Involvement.
(a)Commission officials, other than those positions listed in § 1031.12(a), may be involved in the development of voluntary safety standards for consumer products, but only in their official capacity as employees of the Commission and if permitted to do so by their supervisor and any other person designated by agency management procedures. Such involvement shall be in accordance with Commission procedures.
(b)Employees in positions listed in § 1031.12(a)(4), (5), and
(6)may be involved, on a case-by-case basis, in the development of a voluntary standard provided that they have the specific advance approval of the Commission.
(c)Except in extraordinary circumstances and when approved in advance by the Executive Director in accordance with the provisions of the Commission's meetings policy, 16 CFR part 1012, Commission personnel shall not become involved in meetings concerning the development of voluntary standards that are not open to the public for attendance and observation. Attendance of Commission personnel at a voluntary standard meeting shall be noted in the public calendar and meeting logs filed with the Office of the Secretary in accordance with the Commission's meetings policy.
(d)Generally, Commission employees may become involved in the development of voluntary standards only if they are made available for comment by all interested parties prior to their use or adoption.
(e)Involvement by Commission officials and employees in voluntary standards bodies or standards-developing groups does not, of itself, connote Commission agreement with, or endorsement of, decisions reached, approved or published by such bodies or groups. § 1031.14 Observation criteria. A Commission official or employee may, on occasion, attend voluntary standards meetings for the sole purpose of observation, with the advance approval of his or her supervisor and any other person designated by agency management procedures. Commission officials and employees shall notify the Voluntary Standard Coordinator, for information purposes, prior to observing a voluntary standards meeting. § 1031.15 Communication criteria.
(a)Commission officials and employees, who are not in the positions listed in § 1031.12(a), or who are not already authorized to communicate with a voluntary standards group or representative incidental to their approved membership in a voluntary standard organization or group or as part of a voluntary standard, may:
(1)Communicate, within the scope of their duties, with a voluntary standard group, representative, or other committee member, on voluntary standards matters which are substantive in nature, i.e., matters that pertain to the formulation of the technical aspects of a specific voluntary standard or the course of conduct for developing the standard, only with the specific advance approval from the person or persons to whom they apply to obtain approval for involvement pursuant to § 1031.13. The approval may indicate the duration of the approval and any other conditions.
(2)Communicate, within the scope of their duties, with a voluntary standard group, representative, or other committee member, concerning voluntary standards activities which are not substantive in nature.
(b)Commission employees may communicate with voluntary standards organizations only in accordance with Commission procedures.
(c)Commissioners can engage in substantive and non-substantive written communications with voluntary standards bodies or representatives, provided a disclaimer in such communications indicates that any substantive views expressed are only their individual views and are not necessarily those of the Commission. Where a previous official Commission vote has taken place, that vote should also be noted in any such communication. Copies of such communications shall thereafter be provided to the other Commissioners, the Office of the Secretary, and the Voluntary Standards Coordinator.
(d)The Voluntary Standards Coordinator shall be furnished a copy of each written communication of a substantive nature and a report of each oral communication of a substantive nature between a Commission official or employee and a voluntary standards organization or representative which pertains to a voluntary standards activity. The information shall be provided to the Voluntary Standards Coordinator as soon as practicable after the communication has taken place. Subpart C—Public Participation and Comment § 1031.16 Purpose and scope.
(a)This subpart sets forth the Consumer Product Safety Commission's criteria and requirements governing public review and comment on staff involvement in the activities of voluntary standards development bodies.
(b)The Commission realizes there are advantages and benefits afforded by greater public awareness of staff involvement in standards development activities. Furthermore, the Commission recognizes public comment and input as an important part of the voluntary standards development process.
(c)The purpose of this subpart is to further the objectives and programs of the Commission and to do so in a manner that ensures openness and transparency. § 1031.17 Background.
(a)In a **Federal Register** Notice (Vol. 69, No. 200) dated October 18, 2004, the CPSC announced that it was launching a pilot program to open CPSC staff activities for public review and comment. The pilot program covered information on CPSC staff participation with respect to a cross-section of voluntary standards, including advance notice of proposed staff positions on issues to be considered by voluntary standards organizations. The program was based on the premise that increased public awareness and participation would enhance the quality and conclusions of the proposed recommendations made by CPSC staff.
(b)The pilot program ended on April 18, 2005, after a 6-month period. CPSC invited general comments on whether to continue the programs beyond the pilot period and solicited suggestions for improving the program.
(c)On July 28, 2005, the CPSC staff submitted to the Commission an assessment of the pilot program's results, including data that indicated the voluntary standards site ranked among the top 20 directories visited on the CPSC Web site. Further, the report included the staff's recommendation that the voluntary standards Web site be expanded to include information on all standards activities.
(d)On August 4, 2005, in accordance with the staff's recommendation, the Commission voted unanimously to continue the voluntary standards program and expand it to include all voluntary standards activities. § 1031.18 Method of review and comment.
(a)Each of the voluntary standards activities in which Commission staff is involved shall have a unique Web link on the Commission Web site with relevant information regarding CPSC activity, including:
(1)The name(s) of CPSC staff working on the activity; and
(2)The e-mail and mailing addresses of the CPSC Office of the Secretary, to which any interested party may communicate their particular interest.
(b)E-mail and written comments on voluntary standards from the public to the CPSC shall be managed by the Office of the Secretary. Such communication shall be forwarded to appropriate staff for consideration and/or response.
(c)On the voluntary standards Web site, consumers shall have the opportunity to register for periodic e-mail notices from the Commission with respect to their standard of interest. Such notices shall be issued by the CPSC each time a voluntary standard site has been updated and no less than once every calendar year. Dated: June 30, 2006. Alberta E. Mills, Acting Secretary, Consumer Product Safety Commission. [FR Doc. E6-10572 Filed 7-7-06; 8:45 am] BILLING CODE 6355-01-P DEPARTMENT OF DEFENSE Office of the Secretary [DoD-2006-OS-0065] 32 CFR Parts 43 and 50 RIN 0790-AH87 Personal Commercial Solicitation on DoD Installations AGENCY: Department of Defense, Office of the Secretary of Defense. ACTION: Final rule. SUMMARY: This rule amends and removes the Department regulations relating to policy and procedures on personal commercial solicitation on DoD installations. It incorporates current policy letters that were issued since the last publication of the regulations in February 1986. They include policy on use of on-base financial institutions and non-profit, tax exempt, private organizations to provide financial education; limits on the use of commercial sponsorship to obtain personal contact information for solicitation; and required reporting of solicitation policy violations to higher headquarters. The revision also includes a new solicitation evaluation form to help installations detect solicitation policy violations. DATES: *Effective Date:* July 10, 2006. FOR FURTHER INFORMATION CONTACT: Colonel Michael A. Pachuta or Mr. James M. Ellis at
(703)602-4994 or
(703)602-5009 respectively, or main
(703)602-5001. SUPPLEMENTARY INFORMATION: On Tuesday, April 19, 2005 (70 FR 20316), the Department of Defense published a proposed rule. The following is a summary of substantive comments, whether or not they were accepted or rejected, and the rationale. *Comment 1:* DepSecDef Memo, DoD Instructions Review—Phase II directed, where feasible, to change Directives not requiring the SECDEF or DEPSEC signature to Instructions. *Decision:* Accepted. 1344.7 does not meet the DepSecDef's criteria to remain a DoD Directive and will be reissued as a DoD Instruction. *Comment 2:* Two civilians recommended all on-post insurance solicitation be banned. *Decision:* Rejected: The purpose of the Instruction is not to prohibit insurance solicitation but to prevent unfair and predatory sales practices. *Comment 3:* The American Council of Life Insurers recommends the solicitation office supervisor send a copy of each solicitation evaluation form received to each registered company or company the solicitor represents. *Decision:* Rejected: The solicitation evaluation form is an internal feedback tool to assess how the solicitation was performed. The agent or company may request a copy by submitting a Freedom of Information Act request. *Comment 4:* A Marine Corps Captain recommends an on-base entity, such as a civil law officer from base legal office, screen insurance sales personnel seeking base access. *Decision:* Accepted. Para 6.2.2. now states: “Commanders will ensure the agent's license status and complaint history are checked with the appropriate state or federal regulators prior to granting permission to solicit on the installation.” *Comment 5:* Military Benefits Association believes DD Form 2885 (solicitation evaluation) is biased, recommends it be rewritten to remove any propensity to evoke a critical response, and a copy of submitted forms should be provided to both the agent and insurer. *Decision:* Rejected. The questions are balanced and necessary to determine whether or not the solicitor complied with DoD commercial solicitation policy. The commander has the discretion to provide the agent and insurer a copy of the form. The agent or insurer can also request a copy of completed forms under the Freedom of Information Act. *Comment 6:* Government Personnel Mutual Life Insurance recommends DD Form 2885 (solicitation evaluation) be made available to the company the salesman represents. *Decision:* Rejected. The commander should have the discretion to provide the form to the company when it is appropriate to do so. The agent or company can request a copy of completed forms under the Freedom of Information Act. *Comment 7:* United Services Automobile Association recommends DoD prohibit solicitation of all trainees as well as solicitation of any DoD personnel in a mass or captive audience. *Decision:* Accepted. The current policy prohibits solicitation of recruits, trainees and transient personnel in a mass audience, which is appropriate to protect the most junior and inexperienced DoD personnel from potential chain of command and peer pressure associated with such a solicitation. The new policy prohibits solicitation of any DoD personnel in a captive audience where their attendance is not completely voluntary. *Comment 8:* First Command requested clarification of “on-duty status” and to exclude meal times from being considered “duty time” for the purposes of prohibiting solicitation. *Decision:* Partially accepted. If the purpose of the on-base meal time meeting is to seek business or trade, it is considered solicitation. To clarify, we expanded the definition of Personal Commercial Solicitation in paragraph E2.1.15. as follows: “Personal contact, to include meetings, meals or telecommunications contact, for the purpose of seeking private business or trade”. *Comment 9:* Military Benefits Association agrees that rosters and other official lists should not be used for solicitation; however, they believe there are many legitimate sources, i.e., telephone directories, the Internet, and commercially available mailing lists, the procurement of which should not be a violation of DoD policy. *Decision:* Accepted. We rewrote paragraph 6.4.5. to clarify that it is prohibited to procure “non-public listings” of DoD personnel for the purpose of solicitation. Note: DoD telephone directories are “For Official Use Only” and are considered “non-public listings”. *Comment 10:* The American Council of Life Insurers recommends paragraph 6.4.5. be changed to clarify that it is permitted to procure “listings created by or obtained from public information such as e.g., telephone directories, government records other than Defense Department records, and newspapers” for the purpose of solicitation. ACLI further recommends DoD clarify that: “Public information can be utilized for the purposes of commercial solicitation of Service members as long as the listing is not directly for DoD personnel or in a manner that would be disruptive to the mission of the Military Departments.” *Decision:* Accepted. We rewrote paragraph 6.4.5. to clarify it is prohibited to procure “non-public listings” of DoD personnel for the purpose of solicitation. *Comment 11:* Military Benefits Association recommends that contacting DoD personnel via a government phone should not be a DoD policy violation if the DoD member provided the number or if the agent did not know it was a government phone. *Decision:* Accepted. The new policy does not consider solicitor contact via a government phone a violation if a pre-existing relationship exists between the parties. We have expanded paragraph 6.4.15. to clarify that a pre-existing relationship means the DoD member is a current client and did not request contact to be terminated. *Comment 12:* Office of the Connecticut State Attorney General recommends the list of grounds that may result in denial, suspension, or withdrawal of solicitation privileges should also include “any violations of the law of the state in which the base is located.” *Decision:* Accepted. Added to the end of paragraph 6.5.1.1. *Comment 13:* First Command recommends SF 1199A (direct deposit sign-up form) be included in the definition of allotment forms solicitors are prohibited to possess. *Decision:* Accepted. Added to paragraph 6.5.1.6. *Comment 14:* A Marine Corps Captain recommends rewording paragraph 6.5.1.6. to include: “The possession of and any attempt to obtain supplies of allotment forms used by military departments, or possession or use of facsimiles thereof. This includes using a Service members “MyPay” account or other similar internet medium for the purpose of establishing a direct deposit for the purchase of insurance or other investment product.” *Decision:* Accepted. Added to paragraph 6.5.1.6. *Comment 15:* The National Association of Insurance Commissioners recommends reporting all complaints involving insurance products be reported immediately to the appropriate state insurance department. *Decision:* Accepted. Expanded paragraph 6.5.4. to require commanders to immediately report agents, companies or products that fail to meet state or regulatory requirements to the appropriate regulatory authorities. *Comment 16:* Trans World Assurance recommends the “show cause” requirement in the current version of DoD Directive 1344.7 be retained in the new Instruction. *Decision:* Accepted. Paragraph 6.5.5. was rewritten to restore the “show cause” requirement. *Comment 17:* A Government Accountability Office audit recommends: “the SecDef direct the USD(P&R) to specify in the revised Directive that the installation commander is responsible for notifying state insurance regulators, the Service Secretariat and DoD, when the commander has determined that agents or companies have violated DoD, Service, or installation policies.” *Decision:* Partially accepted. Not all DoD personal commercial solicitation policy violations, such as soliciting without an appointment or soliciting during duty hours, are not violations of State or Federal law and would be of no interest to State and Federal insurance and financial product regulators. Paragraph 6.5.5. was rewritten to require installations to report violations that involve the eligibility of the agent to hold a state license or meet regulatory requirements, complaints involving the quality, suitability or marketing methods, or if an agent or company is barred or suspended, to the appropriate state or federal regulatory authorities. *Comment 18:* A civilian recommends DoD require reporting of abusive market conduct (deceptive sales practices) to State insurance regulators. *Decision:* Accepted. Added this requirement to paragraph 6.5.5. *Comment 19:* A Government Accountability Office audit recommended the SecDef direct USD(P&R) to develop and implement, with the Services, a DoD-wide searchable violations database that uses consistent data elements and coding across Services in revising DoD's solicitation regulation. *Decision:* Partially accepted. The Department has developed a DoD-wide list of current enforcement actions and posted it on the DoD Commanders Page Web site *http://www.commanderspage.com.* Paragraph 6.5.6. was expanded to include the requirement for installations to report denial, suspension, or withdrawal of solicitation privileges to PDUSD(P&R) so that information can be included on this list. The Department believes maintaining a list, which includes violations that do not result in denial, suspension, or withdrawal of solicitation privileges, would dilute the validity and utility of the list. *Comment 20:* The American Council of Life Insurers recommends DoD guidance found in Title 32 at 43.6(e)(2)(vi) be maintained to assure that, as a matter of due process, the lifting of a denial or withdrawal is communicated effectively to every office and Department. *Decision:* Accepted. Expanded paragraph 6.5.7. to require PDUSD(P&R), the Military Departments, and appropriate State and Federal regulatory agencies are notified when suspensions or withdrawals are lifted. *Comment 21:* American Fidelity Life Insurance Company recommends the discontinuance of the use of “off limits” sanctions by the Armed Forces Disciplinary Control Board (AFDCB). *Decision:* Rejected. The long-standing DoD policy contained in paragraph 6.5.8. authorizes the Secretaries of the Military Departments to direct Armed Forces Disciplinary Control Boards to consider applicable information for withdrawal of solicitation privileges and take action the Boards deem appropriate. One action the Boards may deem appropriate is to place an off-base establishment “off-limits” to military personnel. That authority must remain available to Commanders as a means to protect the health, morale and welfare of their personnel. *Comment 22:* The National Association of Insurance Commissioners recommends DoD prohibit the display of sales material by solicitors since such a display may be interpreted as an endorsement of a company's products. *Decision:* Rejected. Paragraph 6.6.4. gives the installation commander the discretion to permit the display of sales literature in designated locations. Commanders must ensure compliance with the Joint Ethics Regulation, which regulates DoD endorsement of non-federal entities. *Comment 23:* The Defense Credit Union Council praised DoD for including a prohibition in paragraph 6.6.4. to prohibit off-base banks and credit unions from distributing competitive literature or forms which mirrors guidance contained in Volume 5, Chapter 34 of the DoD Financial Management Regulation. *Decision:* Accepted. Added to para 6.6.4. *Comment 24:* The Defense Credit Union Council recommends adding language to ensure sales representatives possess the necessary credentials (securities licenses and certifications) to provide financial education and advice. *Decision:* Partially accepted. Long-standing DoD policy precludes commercial agents from providing financial education. However, we added a requirement in paragraph 6.2.2. to check insurance and financial product solicitor's license and complaint history. *Comment 25:* The Military Benefits Association recommends financial counseling be provided by trained certified personnel, should include information on a wide-range of commercial products and not simply be reinforcement for SGLI. *Decision:* Rejected. Paragraph 6.7.1. identifies a wide-range of financial counseling topics and paragraph 6.7.2. requires the Military Departments to ensure financial counselors are qualified. *Comment 26:* The Defense Credit Union Council recommends on-base banks and credit unions be required to provide financial education and training. *Decision:* Partially accepted. Paragraph 6.7.5. of the Instruction advises Commanders that on-base banks and credit unions are required to provide financial counseling services as part of their financial services offerings but does not mandate their use. *Comment 27:* The American Fidelity Insurance Company recommends on-base banks and credit unions not be given preferential treatment in providing financial education classes. *Decision:* Rejected. The draft policy does not mandate the use of on-base banks and credit unions to provide financial education and mirrors guidance already contained in the DoD Financial Management Regulation. *Comment 28:* The American Council of Life Insurers recommends all financial services professionals, including insurance producers and carriers, be allowed to demonstrate their professional qualifications and ability to provide objective financial counseling services to military service personnel. Or alternatively, that DoD use the services offered by the Life and Health Insurance Foundation for Education ( *http://www.life-line.org* ) or the National Association of Insurance Commissioners or by the state where a military installation is located to provide financial counseling services. *Decision:* Partially accepted. Long-standing DoD policy prohibits the use of commercial agents to provide financial education to DoD personnel. If the other non-governmental organizations, such as the Life and Health Insurance Foundation or the National Association of Insurance Commissioners qualify as 501(c) 3 or 501(c) 23 organizations, the Military Departments can approve them to provide financial education in accordance with paragraph 6.7.6.3. *Comment 29:* The Military Officers Association of America recommends the Military Departments be authorized to approve IRS category 501(c) 19 organizations to conduct military benefits and financial education briefings to DoD personnel, that IRS category 501(c) 23 organizations are permitted to provide. *Decision:* Rejected. By law, the principal purpose of 501(c) 23 organizations must be to provide insurance and other benefits to veterans and their dependents. 501(c) 19 organizations must be operated for one or more of eight purposes, which may or may not include providing insurance benefits for its members or their dependents. *Comment 30:* The National Association of Insurance Commissioners recommends DoD include the NAIC's informational brochure “Life Insurance for Military Personnel” in any education program. *Decision:* Partially accepted. The NAIC's brochure could be made available for use if the NAIC qualifies as a 501(c) 3 tax exempt organization and secures a memorandum of agreement to become a DoD financial education partner. The Department and NAIC have drafted an MOU to permit use of this brochure in military financial education classes. *Comment 31:* First Command recommends DoD delete: “personal computer banking” from the definition of “Financial Services” in Enclosure 2 or add: “other financial institutions can provide personal computer banking as long as access can be made via computer and/or internet.” *Decision:* Accepted. Deleted “and personal computer banking” from parenthetical intended to elaborate on the meaning of “electronic banking” in paragraph E2.1.8. *Comment 32:* The National Association of Insurance Commissioners recommends the definition of “insurer” be changed to: “an entity licensed by the appropriate department to engage in the business of insurance.” *Decision:* Accepted. Incorporated into paragraph E2.1.12. *Comment 33:* The District of Columbia Government Department of Insurance, Securities and Banking recommends the definition of “Solicitation” be stated in the disjunctive rather than the conjunctive to avoid ambiguity. *Decision:* Accepted. We revised the definition of “Personal Commercial Solicitation” in paragraph E2.1.15. and eliminated all “conjunctive ambiguities.” *Comment 34:* First Command recommends changing the definition of “Solicitation” to: “The act of offering a product of service for sale by a private business including the offering and sale of insurance or securities on a military installation.” *Decision:* Rejected. Although these words are in the current Directive's definition of Solicitation, they focus more on what is sold versus how something is sold. Solicitation concerns how something is sold versus what is sold. Therefore, we rewrote the definition in paragraph E2.1.15. to focus the definition of “Personal Commercial Solicitation” on how something is sold. *Comment 35:* First Command recommends letting the insurance policy suffice as a written description for each product or service the companies intend to market to DoD personnel. *Decision:* Partially accepted. Deleted the word “separate” before “written description for each product or service” in paragraph E3.1. so the policy itself could meet the “written description requirement” if all other subsequent prerequisite requirements outlined in this paragraph are met. *Comment 36:* The National Association of Insurance Commissioners recommends adding the following to paragraph E3.1.: “Companies should be able to demonstrate that each form to be used has been approved, where applicable, by the insurance department in which the state is located”. *Decision:* Accepted. Added to paragraph E3.1. *Comment 37:* Office of the Connecticut Attorney General recommended any insurance product offered for sale by a commercial solicitor must be filed with the insurance commissioner of the state in which the installation is located. *Decision:* Accepted. Added the following to paragraph E3.1: “Companies should be able to demonstrate that each form to be used has been approved, where applicable, by the insurance department of the state where the installation is located. Insurance products solicited to DoD personnel on overseas installations must conform to the standards prescribed by the laws of the state where the company is incorporated.” *Comment 38:* First Command recommends DoD prohibit whole life policies with restrictive clauses. *Decision:* Rejected. Paragraph E3.1.1.2. requires insurance products sold on DoD installations: “contain no restrictions by reason of military service or military occupational specialty of the insured, unless such restrictions are clearly indicated on the face of the contract”. *Comment 39:* A Marine Corps Captain recommends having companies that sell life insurance have Service members sign a form acknowledging they clearly understand SGLI, and its cost and coverage. *Decision:* Accepted. Added paragraph E3.1.1.5. to include a requirement to inform Service members in writing of the cost and availability of government subsidized insurance. *Comment 40:* First Command recommends DoD allow annuity contracts to be used to satisfy the requirements in para E3.1.4. for an agent to provide the customer written documentation, which clearly shows how much of the premium for an insurance product with a savings component is allocated to savings and how much is allocated to insurance premiums per year over the life of the policy. *Decision:* Accepted. Nothing in the instruction specifically precludes using the annuity contract to fulfill this requirement. *Comment 41:* A private citizen recommends prohibiting allotments from military paychecks. *Decision:* Rejected. Allotments are for the member's convenience and help ensure financial obligations will still be met when they deploy. *Comment 42:* A Government Accountability Office audit recommends SecDef direct the USD(P&R) to clarify the portion of the revised Directive that pertains to the cooling off period that must elapse before junior enlisted personnel can start as an allotment to purchase supplemental life insurance. *Decision:* Accepted. Paragraph E3.3.2. was rewritten as follows to make this clarification: “For personnel in pay grades E-4 and below, in order to provide an opportunity to obtain financial counseling, at least seven calendar days shall elapse between the signing of a life insurance application and the certification of a military pay allotment for any supplemental commercial life insurance. Installation Finance Officers are responsible for ensuring this seven-day cooling-off period is monitored and enforced. The purchaser's commanding officer may grant a waiver of the seven-day cooling-off period requirement for good cause, such as the purchaser's imminent deployment or permanent change of station”. *Comment 43:* The American Council of Life Insurers recommends DoD require insurers to be members of the Insurance Marketplace Standards Association
(IMSA)in order to be eligible to solicit insurance on DoD installations. *Decision:* Rejected. Although requiring IMSA membership would be desirable, the Joint Ethics Regulation prohibits this type of federal endorsement of a non-federal entity and IMSA membership would not necessarily guarantee compliance with DoD policies and IMSA membership also requires payment of a substantial fee. *Comment 44:* The American Council of Life Insurers recommends DoD delete the restriction that insurance agents and general agents approved to solicit on overseas DoD installations may only represent one registered commercial insurance company. *Decision:* Rejected. Paragraph E4.3.2. allows this restriction to be waived by the overseas commander if in the best interests of DoD personnel. Executive Order 12866, “Regulatory Planning and Review” It has been determined that 32 CFR part 50 is not a significant regulatory action. The rule does not:
(1)Have an annual effect to the economy of $100 million or more or adversely affect in a material way the economy; a section of the economy; productivity; competition; jobs; the environment; public health or safety; or State, local, or tribal governments or communities;
(2)Create a serious inconsistency or otherwise interfere with an action taken or planned by another Agency;
(3)Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs, or the rights and obligations of recipients thereof; or
(4)Raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in this Executive Order. Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) Section B of Appendix B to this rule contains information collection requirements. As required by the Paperwork Reduction Act (44 U.S.C. Chapter 35), DoD has submitted an information clearance package to the Office of Management and Budget for review. In response to DoD's invitation to comment on any potential paperwork burden associated with this rule (70 FR 28514-28515), no comments were received. However, one favorable comment was forwarded to the Office of Management and Budget during the 30-day review period (71 FR 29319). Federalism (Executive Order 13132) This regulatory action does not have federalism implications, as set forth in Executive Order 13132. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Public Law 96-354, “Regulatory Flexibility Act” (5 U.S.C. Chapter 6) It has been certified that this rule is not subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if promulgated, have a significant economic impact on a substantial number of small entities. Section 202, Public Law 104-4, “Unfunded Mandates Reform Act” It has been determined that this rule does not involve a Federal mandate that may result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more and that such rulemaking will not significantly or uniquely affect small governments. List of Subjects in 32 CFR Parts 43 and 50 Consumer protection, Federal buildings and facilities, Government employees, Life insurance, Military personnel. Accordingly, 32 CFR Chapter I, subchapter D is proposed to be amended as follows: PART 43—[REMOVED] 1. Part 43 is removed. 2. Part 50 is added to read as follows: PART 50—PERSONAL COMMERCIAL SOLICITATION ON DOD INSTALLATIONS General Provisions Sec. 50.1 Purpose. 50.2 Applicability. 50.3 Definitions. 50.4 Policy. 50.5 Responsibilities. 50.6 Procedures. 50.7 Information requirements. Appendix A to Part 50—Life Insurance Products and Securities. Appendix B to Part 50—Overseas Life Insurance Registration Program. Authority: 5 U.S.C. 301. General Provisions § 50.1 Purpose. This part:
(a)Implements section 577 of Public Law No. 109-163
(2006)and establishes policy and procedures for personal commercial solicitation on DoD installations.
(b)Continues the established annual DoD registration requirement for the sale of insurance and securities on DoD installations overseas.
(c)Identifies prohibited practices that may cause withdrawal of commercial solicitation privileges on DoD installations and establishes notification requirements when privileges are withdrawn.
(d)Establishes procedures for persons solicited on DoD installations to evaluate solicitors.
(e)Prescribes procedures for providing financial education programs to military personnel. § 50.2 Applicability. This part:
(a)Applies to the Office of the Secretary of Defense, the Military Departments, the Chairman of the Joint Chiefs of Staff, the Combatant Commands, the Office of the Inspector General of the Department of Defense, the Defense Agencies, the DoD Field Activities, and all other organizational entities in the Department of Defense (hereafter referred to collectively as the “DoD Components”).
(b)Does not apply to services furnished by residential service companies, such as deliveries of milk, laundry, newspapers, and related services to personal residences on the installation requested by the resident and authorized by the installation commander.
(c)Applies to all other personal commercial solicitation on DoD installations. It includes meetings on DoD installations of private, non-profit, tax-exempt organizations that involve commercial solicitation. Attendance at these meetings shall be voluntary and the time and place of such meetings are subject to the discretion of the installation commander or his or her designee. § 50.3 Definitions. *Agent.* An individual who receives remuneration as a salesperson or whose remuneration is dependent on volume of sales of a product or products. (Also referred to as “commercial agent” or “producer”). In this part, the term “agent” includes “general agent” unless the content clearly conveys a contrary intent. *“Authorized” Bank and/or Credit Union.* Bank and/or credit union selected by the installation commander through open competitive solicitation to provide exclusive on-base delivery of financial services to the installation under a written operating agreement. *Banking institution.* An entity chartered by a State or the Federal Government to provide financial services. *Commercial sponsorship.* The act of providing assistance, funding, goods, equipment (including fixed assets), or services to an MWR program or event by an individual, agency, association, company or corporation, or other entity (sponsor) for a specified (limited) period of time in return for public recognition or advertising promotions. Enclosure 9 of DoD Instruction 1015.10 1 provides general policy governing commercial sponsorship. 1 Copies may be obtained at *http://www.dtic.mil/whs/directives/.* *Credit union.* A cooperative nonprofit association, incorporated under the Credit Union Act (12 U.S.C. 1751), or similar state statute, for the purpose of encouraging thrift among its members and creating a source of credit at a fair and reasonable rate of interest. *DoD installation.* For the purposes of this part, any Federally owned, leased, or operated base, reservation, post, camp, building, or other facility to which DoD personnel are assigned for duty, including barracks, transient housing, and family quarters. *DoD personnel.* For the purposes of this part, all active duty officers (commissioned and warrant) and enlisted members of the Military Departments and all civilian employees, including nonappropriated fund employees and special Government employees, of the Department of Defense. *Financial services.* Those services commonly associated with financial institutions in the United States, such as electronic banking (e.g., ATMs), in-store banking, checking, share and savings accounts, fund transfers, sale of official checks, money orders and travelers checks, loan services, safe deposit boxes, trust services, sale and redemption of U.S. Savings Bonds, and acceptance of utility payments and any other consumer-related banking services. *General agent.* A person who has a legal contract to represent a company. See the definition of “Agent” in this section. *Insurance carrier.* An insurance company issuing insurance through an association reinsuring or coinsuring such insurance. *Insurance product.* A policy, annuity, or certificate of insurance issued by an insurer or evidence of insurance coverage issued by a self-insured association, including those with savings and investment features. *Insurer.* An entity licensed by the appropriate department to engage in the business of insurance. *Military services.* See Joint Publication 1-02, “DoD Dictionary of Military and Associated Terms.” 2 2 See *http://www.dtic.mil/doctrine/jel/doddict/indexs.html.* *Normal home enterprises.* Sales or services that are customarily conducted in a domestic setting and do not compete with an installation's officially sanctioned commerce. *Personal commercial solicitation.* Personal contact, to include meetings, meals, or telecommunications contact, for the purpose of seeking private business or trade. *Securities.* Mutual funds, stocks, bonds, or any product registered with the Securities and Exchange Commission except for any insurance or annuity product issued by a corporation subject to supervision by State insurance authorities. *Suspension.* Temporary termination of privileges pending completion of a commander's inquiry or investigation. *Withdrawal.* Termination of privileges for a set period of time following completion of a commander's inquiry or investigation. § 50.4 Policy.
(a)It is DoD policy to safeguard and promote the welfare of DoD personnel as consumers by setting forth a uniform approach to the conduct of all personal commercial solicitation and sales to them by dealers and their agents. For those individuals and their companies that fail to follow this policy, the opportunity to solicit on military installations may be limited or denied as appropriate.
(b)Command authority includes authority to approve or prohibit all commercial solicitation covered by this part. Nothing in this part limits an installation commander's inherent authority to deny access to vendors or to establish time and place restrictions on commercial activities at the installation. § 50.5 Responsibilities.
(a)The Principal Deputy Under Secretary of Defense for Personnel and Readiness (PDUSD(P&R)), under the Under Secretary of Defense for Personnel and Readiness, shall:
(1)Identify and publish policies and procedures governing personal commercial solicitation on DoD installations consistent with the policy set forth in this part.
(2)Maintain and make available to installation commanders and appropriate Federal personnel the current master file of all individual agents, dealers, and companies who have their privileges withdrawn at any DoD installation.
(3)Develop and maintain a list of all State Insurance Commissioners' points of contact for DoD matters and forward this list to the Military Services.
(b)The Heads of the DoD Components shall:
(1)Ensure implementation of this part and compliance with its provisions.
(2)Require installations under their authority to report each instance of withdrawal of commercial solicitation privileges.
(3)Submit lists of all individuals and companies who have had their commercial solicitation privileges withdrawn at installations under their authority to the PDUSD(P&R) in accordance with this part. § 50.6 Procedures.
(a)*General.*
(1)No person has authority to enter a DoD installation to transact personal commercial solicitation as a matter of right. Personal commercial solicitation may be permitted only if the following requirements are met:
(i)The solicitor is duly licensed under applicable Federal, State, or municipal laws and has complied with installation regulations.
(ii)A specific appointment has been made for each meeting with the individual concerned. Each meeting is conducted only in family quarters or in other areas designated by the installation commander.
(iii)The solicitor agrees to provide each person solicited the personal commercial solicitation evaluation included in DD Form 2885 3 during the initial appointment. The person being solicited is not required to complete the evaluation. However, completed evaluations should be sent by the person who was solicited to the office designated by the installation commander on the back of the evaluation form. 3 Copies may be obtained from *http://www.dtic.mil/whs/directives/infomgt/forms/forminfo/forminfopage2239.html.*
(iv)The solicitor agrees to provide DoD personnel with a written reminder, prior to their making a financial commitment, that free legal advice is available from the Office of the Staff Judge Advocate.
(2)Solicitors on overseas installations shall be required to observe, in addition to the above, the applicable laws of the host country. Upon request, the solicitor must present documentary evidence to the installation commander that the company they represent, and its agents, meet the applicable licensing requirements of the host country.
(b)*Life insurance products and securities.*
(1)Life insurance products and securities offered and sold to DoD personnel shall meet the prerequisites described in § 50.3.
(2)Installation commanders may permit insurers and their agents to solicit on DoD installations if the requirements of paragraph
(a)of this section are met and if they are licensed under the insurance laws of the State where the installation is located. Commanders will ensure the agent's license status and complaint history are checked with the appropriate State or Federal regulators before granting permission to solicit on the installation.
(3)In addition, before approving insurance and financial product agents' requests for permission to solicit, commanders shall review the list of agents and companies currently barred, banned, or limited from soliciting on any or all DoD installations. This list may be viewed via the Personal *Commercial Solicitation Report* “quick link” at *http://www.commanderspage.com.* In overseas areas, the DoD Components shall limit insurance solicitation to those insurers registered under the provisions of appendix B to this part.
(4)The conduct of all insurance business on DoD installations shall be by specific appointment. When establishing the appointment, insurance agents shall identify themselves to the prospective purchaser as an agent for a specific insurer.
(5)Installation commanders shall designate areas where interviews by appointment may be conducted. The opportunity to conduct scheduled interviews shall be extended to all solicitors on an equitable basis. Where space and other considerations limit the number of agents using the interviewing area, the installation commander may develop and publish local policy consistent with this concept.
(6)Installation commanders shall make disinterested third-party insurance counseling available to DoD personnel desiring counseling. Financial counselors shall encourage DoD personnel to seek legal assistance or other advice from a disinterested third-party before entering into a contract for insurance or securities.
(7)In addition to the solicitation prohibitions contained in paragraph
(d)of this section, DoD Components shall prohibit the following:
(i)The use of DoD personnel representing any insurer, dealing directly or indirectly on behalf of any insurer or any recognized representative of any insurer on the installation, or as an agent or in any official or business capacity with or without compensation.
(ii)The use of an agent as a participant in any Military Service-sponsored education or orientation program.
(iii)The designation of any agent or the use by any agent of titles (for example, “Battalion Insurance Counselor,” “Unit Insurance Advisor,” “Servicemen's Group Life Insurance Conversion Consultant,”) that in any manner, states, or implies any type of endorsement from the U.S. Government, the Armed Forces, or any State or Federal agency or government entity.
(iv)The use of desk space for interviews for other than a specific prearranged appointment. During such appointment, the agent shall not be permitted to display desk signs or other materials announcing his or her name or company affiliation.
(v)The use of an installation “daily bulletin,” marquee, newsletter, Web page, or other official notice to announce the presence of an agent and/or his or her availability.
(c)*Supervision of on-base commercial activities.*
(1)All pertinent installation regulations shall be posted in a place easily accessible to those conducting and receiving personal commercial solicitation on the installation.
(2)The installation commander shall make available a copy of installation regulations to anyone conducting on-base commercial solicitation activities warning that failure to follow the regulations may result in the loss of solicitation privileges.
(3)The installation commander, or designated representative, shall inquire into any alleged violations of this part or of any questionable solicitation practices. The DD Form 2885 is provided as a means to supervise solicitation activities on the installation.
(d)*Prohibited practices.* The following commercial solicitation practices shall be prohibited on all DoD installations:
(1)Solicitation of recruits, trainees, and transient personnel in a group setting or “mass” audience and solicitation of any DoD personnel in a “captive” audience where attendance is not voluntary.
(2)Making appointments with or soliciting military or DoD civilian personnel during their normally scheduled duty hours.
(3)Soliciting in barracks, day rooms, unit areas, transient personnel housing, or other areas where the installation commander has prohibited solicitation.
(4)Use of official military identification cards or DoD vehicle decals by active duty, retired or reserve members of the Military Services to gain access to DoD installations for the purpose of soliciting. When entering the installation for the purpose of solicitation, solicitors with military identification cards and/or DoD vehicle decals must present documentation issued by the installation authorizing solicitation.
(5)Procuring, attempting to procure, supplying, or attempting to supply non-public listings of DoD personnel for purposes of commercial solicitation, except for releases made in accordance with DoD Directive 5400.7. 4 4 See footnote 1 to § 50.3.
(6)Offering unfair, improper, or deceptive inducements to purchase or trade.
(7)Using promotional incentives to facilitate transactions or to eliminate competition.
(8)Using manipulative, deceptive, or fraudulent devices, schemes, or artifices, including misleading advertising and sales literature. All financial products, which contain insurance features, must clearly explain the insurance features of those products.
(9)Using oral or written representations to suggest or give the appearance that the Department of Defense sponsors or endorses any particular company, its agents, or the goods, services, and commodities it sells.
(10)DoD personnel making personal commercial solicitations or sales to DoD personnel who are junior in rank or grade, or to the family members of such personnel, except as authorized in Section 2-205 and 5-409 of the Joint Ethics Regulation, DoD 5500.7-R. 5 5 See footnote 1 to § 50.3.
(11)Entering into any unauthorized or restricted area.
(12)Using any portion of installation facilities, including quarters, as a showroom or store for the sale of goods or services, except as specifically authorized by DoD Directive 1330.17 6 and DoD Instructions 1015.10, 1000.15 7 and 1330.21. 8 This does not apply to normal home enterprises that comply with applicable State and local laws and installation rules. 6 See footnote 1 to § 50.3. 7 See footnote 1 to § 50.3. 8 See footnote 1 to § 50.3.
(13)Soliciting door to door or without an appointment.
(14)Unauthorized advertising of addresses or telephone numbers used in personal commercial solicitation activities conducted on the installation, or the use of official positions, titles, or organization names, for the purpose of personal commercial solicitation, except as authorized in DoD 5500.7-R. Military grade and Military Service as part of an individual's name (e.g., Captain Smith, U.S. Marine Corps) may be used in the same manner as conventional titles, such as “Mr.”, “Mrs.”, or “Honorable”.
(15)Contacting DoD personnel by calling a government telephone, faxing to a government fax machine, or by sending e-mail to a government computer, unless a pre-existing relationship (i.e., the DoD member is a current client or requested to be contacted) exists between the parties and the DoD member has not asked for contact to be terminated.
(e)*Denial, suspension, and withdrawal of installation solicitation privileges.*
(1)The installation commander shall deny, suspend, or withdraw permission for a company and its agents to conduct commercial activities on the base if such action is in the best interests of the command. The grounds for taking these actions may include, but are not limited to, the following:
(i)Failure to meet the licensing and other regulatory requirements prescribed in this part or violations of the State law where the installation is located. Commanders will request that appropriate state officials determine whether a company or agent violated State law.
(ii)Commission of any of the practices prohibited in paragraphs (b)(6) and
(d)of this section.
(iii)Substantiated complaints and/or adverse reports regarding the quality of goods, services, and/or commodities, and the manner in which they are offered for sale.
(iv)Knowing and willful violations of Public Law 90-321.
(v)Personal misconduct by a company's agent or representative while on the installation.
(vi)The possession of, and any attempt to obtain supplies of direct deposit forms, or any other form or device used by Military Departments to direct a Service member's pay to a third party, or possession or use of facsimiles thereof. This includes using or assisting in using a Service member's “MyPay” account or other similar Internet medium for the purpose of establishing a direct deposit for the purchase of insurance or other investment product.
(vii)Failure to incorporate and abide by the Standards of Fairness policies contained in DoD Instruction 1344.9. 9 9 See footnote 1 to § 50.3.
(2)The installation commander may determine that circumstances dictate the immediate suspension of solicitation privileges while an investigation is conducted. Upon suspending solicitation privileges, the commander shall promptly inform the agent and the company the agent represents, in writing.
(3)In suspending or withdrawing solicitation privileges, the installation commander shall determine whether to limit such action to the agent alone or extend it to the company the agent represents. This decision shall be based on the circumstances of the particular case, including, but not limited to, the nature of the violations, frequency of violations, the extent to which other agents of the company have engaged in such practices and any other matters tending to show the culpability of an individual and the company.
(4)If the investigation determines an agent or company does not possess a valid license or the agent, company, or product has failed to meet other State or Federal regulatory requirements, the installation commander shall immediately notify the appropriate regulatory authorities.
(5)In a withdrawal action, the commander shall allow the individual or company an opportunity to show cause as to why the action should not be taken. To “show cause” means an opportunity must be given for the aggrieved party to present facts on an informal basis for the consideration of the installation commander or the commander's designee. The installation commander shall make a final decision regarding withdrawal based upon the entire record in each case. Installation commanders shall report concerns or complaints involving the quality or suitability of financial products or concerns or complaints involving marketing methods used to sell these products to the appropriate State and Federal regulatory authorities. Also, installation commanders shall report any suspension or withdrawal of insurance or securities products solicitation privileges to the appropriate State or Federal regulatory authorities.
(6)The installation commander shall inform the Military Department concerned of any denial, suspension, withdrawal, or reinstatement of an agent or company's solicitation privileges and the Military Department shall inform the Office of the PDUSD(P&R), which will maintain a list of insurance and financial product companies and agents currently barred, banned, or otherwise limited from soliciting on any or all DoD installations. This list may be viewed at *http://www.commanderspage.com.* If warranted, the installation commander may recommend to the Military Department concerned that the action taken be extended to other DoD installations. The Military Department may extend the action to other military installations in the Military Department. The PDUSD(P&R), following consultation with the Military Department concerned, may order the action extended to other Military Departments.
(7)All suspensions or withdrawals of privileges may be permanent or for a set period of time. If for a set period, when that period expires, the individual or company may reapply for permission to solicit through the installation commander or Military Department originally imposing the restriction. The installation commander or Military Department reinstating permission to solicit shall notify the Office of the PDUSD(P&R) and appropriate State and Federal regulatory agencies when such suspensions or withdrawals are lifted.
(8)The Secretaries of the Military Departments may direct the Armed Forces Disciplinary Control Boards in all geographical areas in which the grounds for withdrawal action have occurred to consider all applicable information and take action that the Boards deem appropriate.
(9)Nothing in this part limits the authority of the installation commander or other appropriate authority from requesting or instituting other administrative and/or criminal action against any person, including those who violate the conditions and restrictions upon which installation entry is authorized.
(f)*Advertising and commercial sponsorship* .
(1)The Department of Defense expects voluntary observance of the highest business ethics by commercial enterprises soliciting DoD personnel through advertisements in unofficial military publications when describing goods, services, commodities, and the terms of the sale (including guarantees, warranties, and the like).
(2)The advertising of credit terms shall conform to the provisions of 15 U.S.C. 1601 as implemented by Federal Reserve Board Regulation Z according to 12 CFR part 226.
(3)Solicitors may provide commercial sponsorship to DoD Morale, Welfare and Recreation programs or events according to DoD Instruction 1015.10. However, sponsorship may not be used as a means to obtain personal contact information for any participant at these events without written permission from the individual participant. In addition, commercial sponsors may not use sponsorship to advertise products and/or services not specifically agreed to in the sponsorship agreement.
(4)The installation commander may permit organizations to display sales literature in designated locations subject to command policies. In accordance with DoD 7000.14-R, 10 Volume 7(a), distribution of competitive literature or forms by off-base banks and/or credit unions is prohibited on installations where an authorized on-base bank and/or credit union exists. 10 See footnote 1 to § 50.3.
(g)*Educational programs* .
(1)The Military Departments shall develop and disseminate information and provide educational programs for members of the Military Services on their personal financial affairs, including such subjects as insurance, Government benefits, savings, budgeting, and other financial education and assistance requirements outlined in DoD Instruction 1342.27. 11 The Military Departments shall ensure that all instructors are qualified as appropriate for the subject matter presented. The services of representatives of authorized on-base banks and credit unions may be used for this purpose. Under no circumstances shall commercial agents, including representatives of loan, finance, insurance, or investment companies, be used for this purpose. Presentations shall only be conducted at the express request of the installation commander. 11 See footnote 1 to § 50.3.
(2)The Military Departments shall also make qualified personnel and facilities available for individual counseling on loans and consumer credit transactions in order to encourage thrift and financial responsibility and promote a better understanding of the wise use of credit, as prescribed in DoD 7000.14-R.
(3)The Military Departments shall encourage military members to seek advice from a legal assistance officer, the installation financial counselor, their own lawyer, or a financial counselor, before making a substantial loan or credit commitment.
(4)Each Military Department shall provide advice and guidance to DoD personnel who have a complaint under DoD 1344.9 or who allege a criminal violation of its provisions, including referral to the appropriate regulatory agency for processing of the complaint.
(5)Banks and credit unions operating on DoD installations are required to provide financial counseling services as an integral part of their financial services offerings. Representatives of and materials provided by authorized banks and/or credit unions located on military installations may be used to provide the educational programs and information required by this part subject to the following conditions:
(i)If the bank or credit union operating on a DoD installation sells insurance or securities or has any affiliation with a company that sells or markets insurance or other financial products, the installation commander shall consider that company's history of complying with this part before authorizing the on-base financial institution to provide financial education.
(ii)All prospective educators must agree to use appropriate disclaimers in their presentations and on their other educational materials. The disclaimers must clearly indicate that they do not endorse or favor any commercial supplier, product, or service, or promote the services of a specific financial institution.
(6)Use of other non-government organizations to provide financial education programs is limited as follows:
(i)Under no circumstances shall commercial agents, including employees or representatives of commercial loan, finance, insurance, or investment companies, be used.
(ii)The limitation in paragraph (g)(6)(i) of this section does not apply to educational programs and information regarding the Survivor Benefits Program and other government benefits provided by tax-exempt organizations under section (c)(23) of 26 U.S.C. 501 or by any organization providing such a benefit under a contract with the Government.
(iii)Educators from non-government, non-commercial organizations expert in personal financial affairs and their materials may, with appropriate disclaimers, provide the educational programs and information required by this part if approved by a Presidentially-appointed, Senate-confirmed civilian official of the Military Department concerned. Presentations by approved organizations shall be conducted only at the express request of the installation commander. The following criteria shall be used when considering whether to permit a non-government, non-commercial organization to present an educational program or provide materials on personal financial affairs:
(A)The organization must qualify as a tax-exempt organization under 5 U.S.C. 501(c)(3) or 5 U.S.C. 501(c)(23).
(B)If the organization has any affiliation with a company that sells or markets insurance or other financial products, the approval authority shall consider that company's history of complying with this part.
(C)All prospective educators must use appropriate disclaimers, in their presentations and on their other educational materials, which clearly indicate that they and the Department of Defense do not endorse or favor any commercial supplier, product, or service or promote the services of a specific financial institution. § 50.7 Information requirements. The reporting requirements concerning the suspension or withdrawal of solicitation privileges have been assigned Report Control Symbol
(RCS)DD-P&R(Q)2182 in accordance with DoD 8910.1-M. 12 12 See footnote 1 to § 50.3. Appendix A to Part 50—Life Insurance Products and Securities A. Life Insurance Product Content Prerequisites Companies must provide DoD personnel a written description for each product or service they intend to market to DoD personnel on DoD installations. These descriptions must be written in a manner that DoD personnel can easily understand, and fully disclose the fundamental nature of the policy. Companies must be able to demonstrate that each form to be used has been filed with and approved, where applicable, by the insurance department of the State where the installation is located. Insurance products marketed to DoD personnel on overseas installations must conform to the standards prescribed by the laws of the State where the company is incorporated. 1. Insurance products, other than certificates or other evidence of insurance issued by a self-insured association, offered and sold worldwide to personnel on DoD installations, must: a. Comply with the insurance laws of the State or country in which the installation is located and the requirements of this part. b. Contain no restrictions by reason of Military Service or military occupational specialty of the insured, unless such restrictions are clearly indicated on the face of the contract. c. Plainly indicate any extra premium charges imposed by reason of Military Service or military occupational specialty. d. Contain no variation in the amount of death benefit or premium based upon the length of time the contract has been in force, unless all such variations are clearly described in the contract. e. In plain and readily understandable language, and in type font at least as large as the font used for the majority of the policy, inform Service members of: *1* . The availability and cost of government subsidized Servicemen's Group Life Insurance. *2* . The address and phone number where consumer complaints are received by the State insurance commissioner for the State in which the insurance product is being sold. *3* . That the U.S. Government has in no way sanctioned, recommended, or encouraged the sale of the product being offered. With respect to the sale or solicitation of insurance on Federal land or facilitates located outside the United States, insurance products must contain the address and phone number where consumer complaints are received by the State insurance commissioner for the State which has issued the agent a resident license or the company is domiciled, as applicable. 2. To comply with paragraphs A.1.b., A.1.c. and A.1.d., an appropriate reference stamped on the first page of the contract shall draw the attention of the policyholder to any restrictions by reason of Military Service or military occupational specialty. The reference shall describe any extra premium charges and any variations in the amount of death benefit or premium based upon the length of time the contract has been in force. 3. Variable life insurance products may be offered provided they meet the criteria of the appropriate insurance regulatory agency and the Securities and Exchange Commission. 4. Insurance products shall not be marketed or sold disguised as investments. If there is a savings component to an insurance product, the agent shall provide the customer written documentation, which clearly explains how much of the premium goes to the savings component per year broken down over the life of the policy. This document must also show the total amount per year allocated to insurance premiums. The customer must be provided a copy of this document that is signed by the insurance agent. B. Sale of Securities 1. All securities must be registered with the Securities and Exchange Commission. 2. All sales of securities must comply with the appropriate Securities and Exchange Commission regulations. 3. All securities representatives must apply to the commander of the installation on which they desire to solicit the sale of securities for permission to solicit. 4. Where the accredited insurer's policy permits, an overseas accredited life insurance agent—if duly qualified to engage in security activities either as a registered representative of the National Association of Securities Dealers or as an associate of a broker or dealer registered with the Securities and Exchange Commission—may offer life insurance and securities for sale simultaneously. In cases of commingled sales, the allotment of pay for the purchase of securities cannot be made to the insurer. C. Use of the Allotment of Pay System 1. Allotments of military pay for life insurance products shall be made in accordance with DoD 7000.14-R. 2. For personnel in pay grades E-4 and below, in order to obtain financial counseling, at least seven calendar days shall elapse between the signing of a life insurance application and the certification of a military pay allotment for any supplemental commercial life insurance. Installation Finance Officers are responsible for ensuring this seven-day cooling-off period is monitored and enforced. The purchaser's commanding officer may grant a waiver of the seven-day cooling-off period requirement for good cause, such as the purchaser's imminent deployment or permanent change of station. D. Associations—General The recent growth and general acceptability of quasi-military associations offering various insurance plans to military personnel are acknowledged. Some associations are not organized within the supervision of insurance laws of either a State or the Federal Government. While some are organized for profit, others function as nonprofit associations under Internal Revenue Service regulations. Regardless of the manner in which insurance is offered to members, the management of the association is responsible for complying fully with the policies contained in this part. Appendix B to Part 50—Overseas Life Insurance Registration Program A. Registration Criteria 1. Initial Registration a. Insurers must demonstrate continuous successful operation in the life insurance business for a period of not less than 5 years on December 31 of the year preceding the date of filing the application. b. Insurers must be listed in Best's Life-Health Insurance Reports and be assigned a rating of B+ (Very Good) or better for the business year preceding the Government's fiscal year for which registration is sought. 2. Re-Registration a. Insurers must demonstrate continuous successful operation in the life insurance business, as described in paragraph A.1.a. of this appendix. b. Insurers must retain a Best's rating of B+ or better, as described in paragraph A.1.b. of this appendix. c. Insurers must demonstrate a record of compliance with the policies found in this part. 3. Waiver Provisions Waivers of the initial registration or re-registration provisions shall be considered for those insurers demonstrating substantial compliance with the aforementioned criteria. B. Application Instructions 1. *Applications Filed Annually.* Insurers must apply by June 30 of each year for solicitation privileges on overseas U.S. military installations for the next fiscal year beginning October 1. Applications e-mailed, faxed, or postmarked after June 30 shall not be considered. 2. *Application prerequisites.* A letter of application, signed by the President, Vice President, or designated official of the insurance company shall be forwarded to the Principal Deputy Under Secretary of Defense (Personnel and Readiness), Attention: Morale, Welfare and Recreation
(MWR)Policy Directorate, 4000 Defense, Pentagon, Washington, DC 20301-4000. The registration criteria in paragraph A1.a. or A1.b. of this appendix must be met to satisfy application prerequisites. The letter shall contain the information set forth below, submitted in the order listed. Where criteria are not applicable, the letter shall so state. a. The overseas Combatant Commands (e.g., U.S. European Command, U.S. Pacific Command, U.S. Central Command, U.S. Southern Command) where the company presently solicits, or plans to solicit, on U.S. military installations. b. A statement that the company has complied with, or shall comply with, the applicable laws of the country or countries wherein it proposes to solicit. “Laws of the country” means all national, provincial, city, or county laws or ordinances of any country, as applicable. c. A statement that the products to be offered for sale conform to the standards prescribed in appendix A to this part and contain only the standard provisions such as those prescribed by the laws of the State where the company's headquarters are located. d. A statement that the company shall assume full responsibility for the acts of its agents with respect to solicitation. If warranted, the number of agents may be limited by the overseas command concerned. e. A statement that the company shall only use agents who have been licensed by the appropriate State and registered by the overseas command concerned to sell to DoD personnel on DoD installations. f. Any explanatory or supplemental comments that shall assist in evaluating the application. g. If the Department of Defense requires facts or statistics beyond those normally involved in registration, the company shall make separate arrangements to provide them. h. A statement that the company's general agent and other registered agents are appointed in accordance with the prerequisites established in section C of this appendix. 3. If a company is a life insurance company subsidiary, it must be registered separately on its own merits. C. Agent Requirements The overseas Combatant Commanders shall apply the following principles in registering agents: 1. An agent must possess a current State license. This requirement may be waived for a registered agent continuously residing and successfully selling life insurance in foreign areas, who, through no fault of his or her own, due to State law (or regulation) governing domicile requirements, or requiring that the agent's company be licensed to do business in that State, forfeits eligibility for a State license. The request for a waiver shall contain the name of the State or jurisdiction that would not renew the agent's license. 2. General agents and agents may represent only one registered commercial insurance company. This principle may be waived by the overseas Combatant Commander if multiple representations are in the best interest of DoD personnel. 3. An agent must have at least 1 year of successful life insurance underwriting experience in the United States or its territories, generally within the 5 years preceding the date of application, in order to be approved for overseas solicitation. 4. The overseas Combatant Commanders may exercise further agent control procedures as necessary. 5. An agent, once registered in an overseas area, may not change affiliation from the staff of one general agent to another and retain registration, unless the previous employer certifies in writing that the release is without justifiable prejudice. Overseas Combatant Commanders will have final authority to determine justifiable prejudice. Indebtedness of an agent to a previous employer is an example of justifiable prejudice. D. Announcement of Registration 1. Registration by the Department of Defense upon annual applications of insurers shall be announced as soon as practicable by notice to each applicant and by a list released annually in September to the appropriate overseas Combatant Commanders. Approval does not constitute DoD endorsement of the insurer or its products. Any advertising by insurers or verbal representation by its agents, which suggests such endorsement, is prohibited. 2. In the event registration is denied, specific reasons for the denial shall be provided to the applicant. a. The insurer shall have 30 days from the receipt of notification of denial of registration (sent certified mail, return receipt requested) in which to request reconsideration of the original decision. This request must be in writing and accompanied by substantiating data or information in rebuttal of the specific reasons upon which the denial was based. b. Action by the Office of the PDUSD(P&R) on a request for reconsideration is final. c. An applicant that is presently registered as an insurer shall have 90 calendar days from final action denying registration in which to close operations. 3. Upon receiving an annual letter approving registration, each company shall send to the applicable overseas Combatant Commander a verified list of agents currently registered for overseas solicitation. Where applicable, the company shall also include the names and prior military affiliation of new agents for whom original registration and permission to solicit on base is requested. Insurers initially registered shall be furnished instructions by the Department of Defense for agent registration procedures in overseas areas. 4. Material changes affecting the corporate status and financial condition of the company that occur during the fiscal year of registration must be reported to the MWR Policy Directorate at the address in paragraph B.2. of this appendix as they occur. a. The Office of the PDUSD(P&R) reserves the right to terminate registration if such material changes appear to substantially affect the financial and operational standards described in section A of this appendix on which registration was based. b. Failure to report such material changes may result in termination of registration regardless of how it affects the standards. 5. If an analysis of information furnished by the company indicates that unfavorable trends are developing that could adversely affect its future operations, the Office of the PDUSD(P&R) may, at its option, bring such matters to the attention of the company and request a statement as to what action, if any, is considered to deal with such unfavorable trends. Dated: June 27, 2006. L.M. Bynum, OSD Federal Register Liaison Officer, DoD. [FR Doc. E6-10360 Filed 7-7-06; 8:45 am] BILLING CODE 5001-06-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [Docket No. EPA-R02-OAR-2006-0342; FRL-8191-2] Approval and Promulgation of Implementation Plans; Carbon Monoxide Maintenance Plan, Conformity Budgets, Emissions Inventories; State of New Jersey AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: The Environmental Protection Agency
(EPA)is approving a State Implementation Plan
(SIP)revision submitted by the State of New Jersey. This revision establishes an updated ten-year carbon monoxide
(CO)maintenance plan for the Nine Not-Classified Areas in the State (the City of Atlantic City, the City of Burlington, the Borough of Freehold, the Town of Morristown, the Borough of Penns Grove, the City of Perth Amboy, the Borough of Somerville, the Toms River Area, and the City of Trenton) and Camden County. In addition, this action approves revisions to the CO, NO <sup>X</sup> , VOC, and PM <sup>2.5</sup> motor vehicle emissions budgets for Northern New Jersey. Finally, this notice approves revisions to the general conformity budget for McGuire Air Force Base and the 2002 ozone, PM <sup>2.5</sup> , and CO base year emissions inventories, where applicable. The Nine Not Classified Areas and Camden County were redesignated to attainment of the CO National Ambient Air Quality Standard (NAAQS) on February 5, 1996 and maintenance plans were also approved at that time. By this action, EPA is approving the New Jersey Department of Environmental Protection's (New Jersey) second maintenance plans for these areas because they provide for continued attainment of the CO NAAQS for an additional ten years. The intended effect of this rulemaking is to approve a SIP revision that will insure continued maintenance of the CO NAAQS. EFFECTIVE DATE: This rule will be effective July 10, 2006. ADDRESSES: EPA has established a docket for this action under Docket ID Number EPA-R02-OAR-2006-0342. All documents in the docket are listed in the *http://www.regulations.gov* Web site. Although listed in the electronic docket, some information is not publicly available, i.e., confidential business information
(CBI)or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically through *http://www.regulations.gov* or in hard copy for public inspection during normal business hours at the Environmental Protection Agency, Region 2 Office, Air Programs Branch, 290 Broadway, 25th Floor, New York, New York 10007-1866. Copies of the State submittal are available at the New Jersey Department of Environmental Protection, Office of Energy, Bureau of Air Quality Planning, 401 East State Street, CN027, Trenton, New Jersey 08625. FOR FURTHER INFORMATION CONTACT: Henry Feingersh *feingersh.henry@epa.gov* for general questions, Raymond Forde *forde.raymond@epa.gov* for emissions inventory questions, or Matthew Laurita *laurita.matthew@epa.gov* for mobile source related questions at the U.S. Environmental Protection Agency, Air Programs Branch, 290 Broadway, 25th Floor, New York, NY 10007-1866, telephone number
(212)637-4249, fax number
(212)637-3901. SUPPLEMENTARY INFORMATION: I. What Was Included in New Jersey's Submittal? On February 21, 2006, New Jersey submitted a SIP revision to EPA which included a CO limited maintenance plan, revisions to the CO, NO <sup>X</sup> , and VOC motor vehicle emissions budgets for northern New Jersey, PM <sup>2.5</sup> motor vehicle emissions budgets for northern New Jersey, revisions to the general conformity budget for McGuire Air Force Base, and the 2002 ozone, PM <sup>2.5</sup> , and CO base year emissions inventories, where applicable. When they made the submittal, New Jersey had requested that EPA parallel process their SIP revision. New Jersey held a public hearing on March 31, 2006 on their proposed SIP revision and accepted written comments until April 7, 2006. New Jersey addressed all of the comments and made a subsequent adopted submittal on May 18, 2006. II. What Were the Changes From the February 21, 2006 Submittal? The May 18, 2006 submittal had minor changes from the original submittal as a result of comments received by New Jersey during the state rulemaking process. The May 18, 2006 submittal contained additional information and clarifications which acted to strengthen the original submittal which EPA proposed to approve on May 9, 2006. EPA evaluated the changes and has decided that they are non-substantive changes. That is, the changes do not effect our earlier proposal to approve the SIP revision. III. What Comments Did EPA Receive in Response to the May 9, 2006 EPA Proposal? EPA proposed approval on the New Jersey SIP revision on May 9, 2006 (71 FR 26895). The comment period closed on June 8, 2006. EPA did not receive any comments. IV. What Is the Adequacy Status of the CO Limited Maintenance Plan for Camden County and the Nine Not Classified Areas? Section 118(e) of the transportation conformity rule (40 CFR 93) states that a conformity determination cannot be made using submitted motor vehicle emission budgets (“budgets”) until EPA makes a positive determination that the submitted budgets are adequate. In accordance with our rule, the limited maintenance plan for Camden County and the Nine Not Classified Areas was posted for adequacy review on April 18, 2006 on EPA's conformity Web site: *http://www.epa.gov/otaq/stateresources/transconf/adequacy.htm.* As a general rule, however, limited maintenance plans, such as the maintenance plan for Camden County and the Nine Not Classified Areas, do not include budgets. Instead, for those areas that qualify under our limited maintenance plan policy for CO, we have concluded that the area will continue to maintain the CO NAAQS regardless of the quantity of emissions from the on-road transportation sector, and thus there is no need to cap emissions from the on-road transportation sector for the maintenance period. Therefore, EPA's adequacy review of the limited maintenance plan for Camden County and the Nine Not Classified Areas primarily focuses on whether the area qualifies for the applicable limited maintenance plan policy for CO. From our review, EPA has concluded that Camden County and the Nine Not Classified Areas meet the criteria for a limited maintenance plan, and therefore, finds the maintenance plan for Camden County and the Nine Not Classified Areas adequate for conformity purposes under our limited maintenance plan policy. V. What Is EPA's Conclusion? EPA had proposed approval of New Jersey's request in 71 FR 26895. The reader is referred back to that proposal notice for additional detail on this action. Since EPA did not receive any comments and the New Jersey responses to the comments they had received clarify and strengthen the SIP revision, EPA is approving the New Jersey SIP request in this action. Tables 1 and 2 present summaries of the motor vehicle emissions budgets being approved in this notice. Table 3 presents the approved general conformity budgets for McGuire Air Force Base. Table 1.—Approved NO <sup>X</sup> , VOC, and CO Motor Vehicle Emissions Budgets for the North Jersey Transportation Planning Authority [Tons/day] Year NO <sup>X</sup> 1 VOC 1 CO 2 2005 327.83 146.33 2007 256.58 122.53 1150 2014 899 1 Covers Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union Counties. 2 Covers Bergen, Essex, Hudson, Passaic, and Union Counties. Table 2.—Approved 2009 PM <sup>2.5</sup> Motor Vehicle Emissions Budgets [Tons/year] Metropolitan Planning Organization Direct PM <sup>2.5</sup> NO <sup>X</sup> North Jersey Transportation Planning Authority 1 1,207 61,676 Delaware Valley Regional Planning Commission 2 89 4,328 1 Covers Bergen, Essex, Hudson, Middlesex, Monmouth, Morris, Passaic, Somerset, and Union Counties. 2 Covers Mercer County only. Table 3.—Approved 2005 1 McGuire Air Force Base General Conformity Emissions Budgets [Tons/year] VOC NO <sup>X</sup> 730 1,534 1 2005 budgets updated such that the increase in NO <sup>X</sup> is offset by a decrease in VOC, resulting in no expected net increase in ozone formation. EPA is also determining that the CO maintenance plan for Camden County and the Nine Not Classified Areas is adequate for transportation conformity purposes under the limited maintenance plan policy for CO. This adequacy finding is effective July 10, 2006. EPA previously announced the adequacy of the PM <sup>2.5</sup> motor vehicle emissions budgets in the **Federal Register** (71 FR 33305). Lastly, EPA is approving the 2002 ozone, PM <sup>2.5</sup> , and CO base year emissions inventories, where applicable. EPA has determined that today's rule falls under the “good cause” exemption in section 553(d)(3) of the Administrative Procedures Act
(APA)which, upon finding “good cause,” allows an agency to make a rule effective immediately (thereby avoiding the 30-day delayed effective date otherwise provided for in the APA). Making today's rule effective upon publication benefits the public by allowing the most recently approved conformity budgets developed by the State to be used in determining conformity. VI. Statutory and Executive Order Reviews Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). This action merely approves state law as meeting federal requirements and imposes no additional requirements beyond those imposed by state law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). Because this rule approves pre-existing requirements under state law and does not impose any additional enforceable duty beyond that required by state law, it 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). This rule also does not have tribal implications because it will 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, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have federalism implications because it does not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a state rule implementing a federal standard, and does not alter the relationship or the distribution of power and responsibilities established in the Act. This rule also is not subject to Executive Order 13045 “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it is not economically significant. In reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the Act. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the Act. Thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). Under section 307(b)(1) of the Act, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by September 8, 2006. 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. (See section 307(b)(2).) List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Carbon monoxide, Intergovernmental relations, Ozone, Particulate matter, Reporting and recordkeeping requirements, Volatile organic compounds, Nitrogen oxides, Sulfur dioxide. Dated: June 27, 2006. Alan J. Steinberg, Regional Administrator, Region 2. Part 52, chapter I, title 40 of the Code of Federal Regulations is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: Authority: 42 U.S.C. 7401 *et seq.* Subpart FF—New Jersey 2. Section 52.1581 is amended by revising paragraph
(d)and adding paragraph
(e)to read as follows: § 52.1581 Control strategy: Carbon monoxide.
(d)The 1997 and 2007 carbon monoxide motor vehicle emission budgets for Camden County and the Nine Not Classified Areas included in New Jersey's May 21, 2004 SIP revision are approved. (e)(1) Approval—The May 18, 2006 revision to the carbon monoxide maintenance plan for Camden County and the Nine Not Classified Areas. This revision contains a second ten-year maintenance plan that demonstrates continued attainment of the National Ambient Air Quality Standard for carbon monoxide through the year 2017.
(2)The 2007 and 2014 carbon monoxide conformity emission budgets for five counties in the New York/Northern New Jersey/Long Island carbon monoxide maintenance area included in New Jersey's May 18, 2006 SIP revision are approved. 3. Section 52.1582 is amended by revising paragraph (i)(2), removing and reserving paragraph (i)(3) and adding new paragraph
(k)to read as follows: § 52.1582 Control Strategy and regulations: Ozone.
(i)* * *
(2)The 2005 conformity emission budgets for the New Jersey portion of the Philadelphia/Wilmington/Trenton nonattainment area included in New Jersey's April 8, 2003 State Implementation Plan revision are approved. (k)(1) The Statewide 2002 base year ozone precursor emission inventories included in New Jersey's May 18, 2006 State Implementation Plan revision are approved.
(2)The revisions to the 2005 and 2007 motor vehicle emissions budgets for the New Jersey portion of the New York/Northern New Jersey/Long Island nonattainment area included in New Jersey's May 18, 2006 State Implementation Plan revision are approved.
(3)The conformity emission budgets for the McGuire Air Force Base included in New Jersey's May 18, 2006 State Implementation Plan revision are approved. [FR Doc. E6-10743 Filed 7-7-06; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-R04-OAR-2005-MS-0001-200612; FRL-8191-4] Approval and Promulgation of Implementation Plans; Mississippi Prevention of Significant Deterioration and New Source Review AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: EPA is taking final action to approve revisions to the Mississippi State Implementation Plan
(SIP)submitted on August 10, 2005, which include changes made to Mississippi regulations entitled, “Permit Regulations for the Construction and/or Operation of Air Emissions Equipment” and “Regulations for the Prevention of Significant Deterioration of Air Quality.” The revisions include changes to the State's permitting rules in order to address amendments to the federal New Source Review
(NSR)regulations, which were promulgated by EPA on December 31, 2002 and reconsidered with minor changes on November 7, 2003 (collectively, these two final actions are called the “2002 NSR reform rules”). The August 2005 submittal being approved today also includes changes made to the State's NSR program for minor stationary sources. Specifically, a new rule in Mississippi now allows construction to commence on certain minor sources prior to the applicant receiving a final permit to construct. EFFECTIVE DATE: This rule will be effective August 9, 2006. ADDRESSES: EPA has established a docket for this action under Docket Identification No. EPA-R04-OAR-2005-MS-0001. All documents in the docket are listed on the *www.regulations.gov* Web site. Although listed in the index, some information is not publicly available, i.e., Confidential Business Information 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 through *www.regulations.gov* or in hard copy at the Regulatory Development Section, Air Planning Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you contact the person listed in the FOR FURTHER INFORMATION CONTACT section to schedule your inspection. The Regional Office's official hours of business are Monday through Friday, 8:30 to 4:30, excluding federal holidays. FOR FURTHER INFORMATION CONTACT: For information regarding the Mississippi State Implementation Plan, contact Mr. Sean Lakeman, Regulatory Development Section, Air Planning Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Telephone number:
(404)562-9043; e-mail address: *lakeman.sean@epa.gov.* For information regarding New Source Review, contact Ms. Kelly Fortin, Air Permits Section, at the same address above. Telephone number:
(404)562-9117; e-mail address: *fortin.kelly@epa.gov.* SUPPLEMENTARY INFORMATION: Table of Contents I. What Action Is EPA Taking? II. What Is the Background for This Action? III. Final Action IV. Statutory and Executive Order Reviews I. What Action Is EPA Taking? EPA is taking final action to approve revisions to the Mississippi SIP regarding Mississippi's NSR programs. On August 10, 2005, the State of Mississippi, through the Mississippi Department of Environmental Quality (MDEQ), submitted revisions to the Mississippi SIP. The SIP submittal consists of changes to the Mississippi Administrative Code
(MAC)provisions for the “Regulations for the Prevention, Abatement, and Control of Air Contaminants.” Specifically, the SIP revisions include changes to MDEQ regulations entitled, “Permit Regulations for the Construction and/or Operation of Air Emissions Equipment,” Air Pollution Control Section 2 (APC-S-2), found at MAC 08-034-002, and “Regulations for the Prevention of Significant Deterioration of Air Quality,” Air Pollution Control Section 5 (APC-S-5), found at MAC 08-034-005. MDEQ submitted its revisions to APC-S-2 and APC-S-5 in response to EPA's December 31, 2002, changes to the federal NSR regulations. The State's major NSR rule revisions are an incorporation by reference of the federal rules, 40 CFR 52.21, as amended and promulgated by July 1, 2004, with appropriate changes made. The SIP revisions also include changes to Mississippi's NSR program for minor sources. The revised minor source program now allows construction to commence on certain minor sources prior to the applicant receiving a final permit to construct. EPA is now taking final action to approve Mississippi's August 2005 SIP revisions including changes to APC-S-2 and APC-S-5. On March 23, 2006 (71 FR 14658), EPA published a notice of proposed rulemaking
(NPR)in the **Federal Register** , proposing to approve the August 2005 SIP revisions. The March 23, 2006, NPR provides more detailed information about the proposed Mississippi SIP revisions being approved today. The public comment period for the proposed action ended on April 24, 2006. No comments, adverse or otherwise, were received on EPA's proposed action. II. What Is the Background for This Action? On December 31, 2002 (67 FR 80186), EPA published final changes to 40 Code of Federal Regulations
(CFR)parts 51 and 52, regarding the Clean Air Act's (CAA's) Prevention of Significant Deterioration
(PSD)and Nonattainment New Source Review
(NNSR)programs. On November 7, 2003 (68 FR 63021), EPA published a notice of final action on its reconsideration of the 2002 rules. The purpose of today's action is to approve the August 2005 SIP submittal from the State of Mississippi, which includes EPA's 2002 NSR reform rules, and a change to Mississippi's minor source NSR program. After the 2002 NSR reform rules were finalized and effective (March 3, 2003), various petitioners challenged numerous aspects of the 2002 NSR reform rules, along with portions of EPA's 1980 NSR rules (45 FR 52676, August 7, 1980). On June 24, 2005, the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit Court) issued a decision on the challenges to the 2002 NSR reform rules. *New York* v. *United States* , 413 F.3d 3 (D.C. Cir. 2005). In summary, the D.C. Circuit Court vacated portions of the rules pertaining to clean units and pollution control projects, remanded a portion of the rules regarding recordkeeping and relating to language in 40 CFR 52.21(r)(6) and 40 CFR 51.166(r)(6), “Source obligation,” and either upheld or did not comment on the other provisions included as part of the 2002 NSR reform rules. Today's action is consistent with the decision of the D.C. Circuit Court because EPA is not proposing to approve any portions of the 2002 NSR reform rules that were vacated as part of the June 2005 decision. In addition, Mississippi's rules regarding recordkeeping do not contain the language that was central to the Court's remand. In establishing its recordkeeping requirements, Mississippi incorporated the federal rule (40 CFR 52.21(r)(6)) by reference, but excluded the phrase, “in circumstances where there is a reasonable possibility that a project that is not part of a major modification may result in a significant emission increase.” APC-S-5, found at MAC 08-034-005(2.9). As a result, the Mississippi rule requires all sources that use the actual-to-projected-actual methodology to meet the recordkeeping requirements. EPA continues to move forward with its evaluation of the portion of its NSR reform rules that were remanded by the D.C. Circuit Court and is preparing to respond to the D.C. Circuit Court's remand. EPA's final decision with regard to the remand may require EPA to take further action on this portion of Mississippi's rules. At this time, however, Mississippi's recordkeeping provisions are at least as stringent as the federal requirements, and are therefore, approvable. The 2002 NSR reform rules require that state agencies adopt and submit revisions to their part 51 permitting programs implementing the minimum program elements of the 2002 NSR reform rules no later than January 2, 2006. (Consistent with changes to 40 CFR 51.166(a)(6)(i), state agencies are now required to adopt and submit SIP revisions within three years after new amendments are published in the **Federal Register.** ) State agencies may meet the requirements of 40 CFR part 51, and the 2002 NSR reform rules, with different but equivalent regulations. However, if a state decides not to implement any of the new applicability provisions, that state is required to demonstrate that its existing program is at least as stringent as the federal program. On August 10, 2005, the State of Mississippi submitted SIP revisions for the purpose of revising the State's NSR permitting provisions for both major and minor stationary sources. The affected regulations are, “Permit Regulations for the Construction and Operation of Air Emissions Equipment,” APC-S-2, and “Regulations for the Prevention of Significant Deterioration of Air Quality,” APC-S-5. The revisions were made to update the Mississippi NSR programs to make them consistent with changes to the federal NSR regulations published December 31, 2002 (67 FR 80186) and November 7, 2003 (68 FR 63021). As noted earlier, Mississippi incorporated the federal rules (40 CFR 52.21, as amended and promulgated by July 1, 2004) by reference, with minor edits to reflect, for example, that MDEQ is the permitting authority, and not EPA. As a result of Mississippi's incorporation by reference of the federal rules, the resulting State rules are at least as stringent as the federal rules. This is the case even with regard to the provisions where Mississippi made changes, such as, APC-S-5 (MAC 08-034-005(2.9)), which corresponds to 40 CFR 51.21(r)(6), “Source obligation,” and is discussed above. Mississippi's minor source permit regulations, which contain a new provision, are likewise consistent with federal rules regarding minor source programs. Mississippi's new provision, APC-S-2, Section XV.B., entitled, “Optional Pre-Permit Construction,” allows construction to commence on certain non-major sources and non-major modifications prior to receiving a final permit to construct, provided certain conditions are met. The revisions to this minor source rule are consistent with the requirements of section 110(a)(2)(C) of the CAA and federal regulations found at 40 CFR 51.160 through 51.164, including 40 CFR 51.160(b), which requires states to have legally enforceable procedures to prevent construction or modification of a source if it would violate any SIP control strategies or interfere with attainment or maintenance of the National Ambient Air Quality Standards. The March 23, 2006, NPR and the Docket for this final action contain more detailed information regarding the Mississippi SIP revisions being approved today, and the rationale for EPA's final action. Additional background information on EPA's 2002 NSR reform rules can be found at 67 FR 80186 (December 31, 2002), and *http://www.epa.gov/nsr.* The public comment period for the final action being taken today ended on April 24, 2006. No comments, adverse or otherwise, were received on EPA's proposed action to approve Mississippi's August 2005 submittal. III. Final Action EPA is taking final action to approve revisions to the Mississippi SIP submitted by MDEQ on August 10, 2005. The submittal consists of revisions to the State “Permit Regulations for the Construction and/or Operation of Air Emissions Equipment,” APC-S-2, and “Regulations for the Prevention of Significant Deterioration of Air Quality,” APC-S-5. IV. Statutory and Executive Order Reviews Under Executive Order 12866 (58 FR 51735, October 4, 1993), this final action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). This final action merely approves state law as meeting Federal requirements and imposes no additional requirements beyond those imposed by state law. Accordingly, the Administrator certifies that this final rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). Because this rule approves pre-existing requirements under state law and does not impose any additional enforceable duty beyond that required by state law, it does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Public Law 104-4). This final rule also does not have tribal implications because it will 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, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have Federalism implications because it does not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This final action merely approves state law as meeting Federal requirements and imposes no additional requirements beyond those imposed by state law. Therefore, it does not alter the relationship or the distribution of power and responsibilities established in the Clean Air Act. This final rule also is not subject to Executive Order 13045 “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it is not economically significant. In reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the Clean Air Act. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the Clean Air Act. Thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This final rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). 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 September 8, 2006. 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. (See section 307(b)(2).) List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Carbon monoxide, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds. Dated: June 29, 2006. A. Stanley Meiburg, Acting Regional Administrator, Region 4. 40 CFR part 52 is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: Authority: 42.U.S.C. 7401 *et seq.* Subpart Z—Mississippi 2. Section 52.1270(c) is amended by revising the Chapter title for “APC-S-2” and “APC-S-5” and the entries under Chapter “APC-S-2” and “APC-S-5” to read as follows: § 52.1270 Identification of plan.
(c)* * * EPA—Approved Mississippi Regulations State citation Title/subject State effective date EPA approval date Explanation * * * * * * * APC-S-2 Regulations for the Construction and/or Operation of Air Emissions Equipment Section 1 General Requirements 08/27/05 07/10/2006 [Insert citation of publication] Section II General Standards Applicable to All Permits 08/27/05 07/10/2006 [Insert citation of publication] Section III Application for Permit to Construct and State Permit to Operate New Stationary Source 08/27/05 07/10/2006 [Insert citation of publication] Section IV Public Participation and Public Availability of Information 08/27/05 07/10/2006 [Insert citation of publication] Section V Application Review 08/27/05 07/10/2006 [Insert citation of publication] Section VI Compliance Testing 08/27/05 07/10/2006 [Insert citation of publication] Section VII Emissions Evaluation Report 08/27/05 07/10/2006 [Insert citation of publication] Section VIII Procedures for Renewal of State Permit to Operate 08/27/05 07/10/2006 [Insert citation of publication] Section IX Reporting & Recordkeeping 08/27/05 07/10/2006 [Insert citation of publication] Section X Emission Reduction Schedule 08/27/05 07/10/2006 [Insert citation of publication] Section XI General Permits 08/27/05 07/10/2006 [Insert citation of publication] Section XII Multi-Media Permits 08/27/05 07/10/2006 [Insert citation of publication] Section XIII Exclusions 08/27/05 07/10/2006 [Insert citation of publication] Section XIV CAFOs 08/27/05 07/10/2006 [Insert citation of publication] Section XV Options 08/27/05 07/10/2006 [Insert citation of publication] Section XVI Permit Transfer 08/27/05 07/10/2006 [Insert citation of publication] Section XVII Severability 08/27/05 07/10/2006 [Insert citation of publication] * * * * * * * APC-S-5 Regulations for the Prevention of Significant Deterioration of Air Quality APC-S-5 Regulations for the Prevention of Significant Deterioration of Air Quality 08/27/05 07/10/2006 [Insert citation of publication] [FR Doc. E6-10745 Filed 7-7-06; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 52 and 70 [EPA-R07-OAR-2006-0476; FRL-8192-5] Approval and Promulgation of Implementation Plans and Operating Permits Program; State of Nebraska AGENCY: Environmental Protection Agency (EPA). ACTION: Direct final rule. SUMMARY: EPA is approving revisions to the State Implementation Plan
(SIP)and Operating Permits Programs submitted by the state of Nebraska. This action revises monitoring requirements which were found to be less stringent than the applicable Federal rule; adds permits-by-rule provisions, which would provide a streamlined approach for issuing construction/operating permits for hot mix asphalt plants and small animal incinerators; and deletes the chemical compound ethylene glycol monobutyl ether from the list of regulated hazardous air pollutants in Appendices II and III. Approval of these revisions will ensure consistency between the state and Federally-approved rules, and ensure Federal enforceability of the state's revised air program rules. DATES: This direct final rule will be effective September 8, 2006, without further notice, unless EPA receives adverse comment by August 9, 2006. If adverse comment is received, EPA will publish a timely withdrawal of the direct final rule in the **Federal Register** informing the public that the rule will not take effect. ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-OAR-2006-0476, by one of the following methods: 1. *http://www.regulations.gov.* Follow the on-line instructions for submitting comments. 2. *E-mail: rios.shelly@epa.gov.* 3. *Mail:* Shelly Rios-LaLuz, Environmental Protection Agency, Air Planning and Development Branch, 901 North 5th Street, Kansas City, Kansas 66101. 4. *Hand Delivery or Courier:* Deliver your comments to Shelly Rios-LaLuz, Environmental Protection Agency, Air Planning and Development Branch, 901 North 5th Street, Kansas City, Kansas 66101. *Instructions:* Direct your comments to Docket ID No. EPA-R07-OAR-2006-0476. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at *http://www.regulations. gov* , 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 through *http://www.regulations.gov* or e-mail information that you consider to be CBI or otherwise protected. The *http://www.regulations.gov* 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 e-mail comment directly to EPA without going through *http://www.regulations.gov* , your e-mail 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. *Docket:* All documents in the electronic docket are listed in the *http://www.regulations.gov* 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 *http://www.regulations.gov* or in hard copy at the Environmental Protection Agency, Air Planning and Development Branch, 901 North 5th Street, Kansas City, Kansas 66101. The Regional Office's official hours of business are Monday through Friday, 8 a.m. to 4:30 p.m. excluding Federal holidays. The interested persons wanting to examine these documents should make an appointment with the office at least 24 hours in advance. FOR FURTHER INFORMATION CONTACT: Shelly Rios-LaLuz at
(913)551-7296, or by e-mail at *rios.shelly@epa.gov.* SUPPLEMENTARY INFORMATION: Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA. This section provides additional information by addressing the following questions: What Is A SIP? What Is The Federal Approval Process for a SIP? What Does Federal Approval of a State Regulation Mean to Me? What Is the Part 70 Operating Permits Program? What Is the Federal Approval Process for an Operating Permits Program? What Is Being Addressed in This Document? What Is EPA's Analysis of These Revisions? Have the Requirements for Approval of a SIP and Part 70 Revision Been Met? What Action Is EPA Taking? What Is a SIP? Section 110 of the Clean Air Act (CAA or Act) requires states to develop air pollution regulations and control strategies to ensure that state air quality meets the national ambient air quality standards established by EPA. These ambient standards are established under section 109 of the CAA, and they currently address six criteria pollutants. These pollutants are: carbon monoxide, nitrogen dioxide, ozone, lead, particulate matter, and sulfur dioxide. Each state must submit these regulations and control strategies to us for approval and incorporation into the Federally-enforceable SIP. Each Federally-approved SIP protects air quality primarily by addressing air pollution at its point of origin. These SIPs can be extensive, containing state regulations or other enforceable documents and supporting information such as emission inventories, monitoring networks, and modeling demonstrations. What Is the Federal Approval Process for a SIP? In order for state regulations to be incorporated into the Federally-enforceable SIP, states must formally adopt the regulations and control strategies consistent with State and Federal requirements. This process generally includes a public notice, public hearing, public comment period, and a formal adoption by a state-authorized rulemaking body. Once a state rule, regulation, or control strategy is adopted, the state submits it to us for inclusion into the SIP. We must provide public notice and seek additional public comment regarding the proposed Federal action on the state submission. If adverse comments are received, they must be addressed prior to any final Federal action by us. All state regulations and supporting information approved by EPA under section 110 of the CAA are incorporated into the Federally-approved SIP. Records of such SIP actions are maintained in the Code of Federal Regulations
(CFR)at title 40, part 52, entitled “Approval and Promulgation of Implementation Plans.” The actual state regulations which are approved are not reproduced in their entirety in the CFR outright but are “incorporated by reference,” which means that we have approved a given state regulation with a specific effective date. What Does Federal Approval of a State Regulation Mean to Me? Enforcement of the state regulation before and after it is incorporated into the Federally-approved SIP is primarily a state responsibility. However, after the regulation is Federally approved, we are authorized to take enforcement action against violators. Citizens are also offered legal recourse to address violations as described in section 304 of the CAA. What Is the Part 70 Operating Permits Program? The CAA Amendments of 1990 require all states to develop operating permits programs that meet certain Federal criteria. In implementing this program, the states are to require certain sources of air pollution to obtain permits that contain all applicable requirements under the CAA. One purpose of the part 70 operating permits program is to improve enforcement by issuing each source a single permit that consolidates all of the applicable CAA requirements into a Federally-enforceable document. By consolidating all of the applicable requirements for a facility into one document, the source, the public, and the permitting authorities can more easily determine what CAA requirements apply and how compliance with those requirements is determined. Sources required to obtain an operating permit under this program include “major” sources of air pollution and certain other sources specified in the CAA or in our implementing regulations. For example, all sources regulated under the acid rain program, regardless of size, must obtain permits. Examples of major sources include those that emit 100 tons per year or more of volatile organic compounds, carbon monoxide, lead, sulfur dioxide, nitrogen dioxide, or PM <sup>10</sup> ; those that emit 10 tons per year of any single hazardous air pollutant
(HAP)(specifically listed under the CAA); or those that emit 25 tons per year or more of a combination of HAPs. Revision to the State and local agencies operating permits program are also subject to public notice, comment, and our approval. What Is the Federal Approval Process for an Operating Permits Program? In order for state regulations to be included in the Federally-enforceable Title V operating permits program, states must formally adopt regulations consistent with state and Federal requirements. This process generally includes a public notice, public hearing, public comment period, and a formal adoption by a state-authorized rulemaking body. Once a state rule, regulation, or control strategy is adopted, the state submits it to us for inclusion into the approved operating permits program. We must provide public notice and seek additional public comment regarding the proposed Federal action on the state submission. If adverse comments are received, they must be addressed prior to any final Federal action by us. All state regulations and supporting information approved by EPA under section 502 of the CAA, including revisions to the state program, are included in the Federally-approved operating permits program. Records of such actions are maintained in the CFR at Title 40, part 70, appendix A, entitled “Approval Status of State and Local Operating Permits Programs.” What Is Being Addressed in This Document? On October 20, 2005, we received a request from the State of Nebraska to approve revisions to Nebraska's State Implementation Plan and Part 70 Operating Permits Program. This request amends Nebraska's SIP to replace or update provisions currently found in Title 129, Chapter 34—Emission Sources; Testing; Monitoring; Appendix II—Hazardous Air Pollutants. This request also amends Nebraska's Part 70—Operating Permits Program to update Appendix III—Reporting Levels of Hazardous Air Pollutants for Emissions Inventory. Furthermore, this submittal requests the addition of Title 129, Chapter 42—Permits-By-Rule to the SIP. Proposed revisions to Nebraska's SIP were approved by the Nebraska Department of Environmental Quality
(NDEQ)on September 5, 2002, December 5, 2002 and March 4, 2005. Revisions to Title 129 adopted on September 5, 2002, and December 5, 2002, were first submitted to EPA on June 4, 2004; however, approvability issues were identified, and we did not act on the request to add Chapter 42 to Nebraska's SIP at that time. Subsequently, we worked with NDEQ to resolve the approvability issues so that Nebraska could resubmit Chapter 42 for inclusion into the SIP. This action also addresses revisions to Title 129—Nebraska Air Quality Regulations, Chapter 34, Appendix II and Appendix III. The purpose of these revisions is to revise monitoring requirements in Chapter 34 which were found to be less stringent than the Federal requirements, to delete the chemical compound ethylene glycol monobutyl ether from the list of regulated hazardous air pollutants in Appendices II and III. The purpose of Chapter 42—Permits-by-Rule is to provide a streamlined approach for issuing construction/operating permits to certain minor source categories such as hot mix asphalt plants and small animal incinerators. What Is EPA's Analysis of These Revisions? The revision to Chapter 34.005 makes the rule consistent with 40 CFR part 51 appendix P, paragraph 2.1.1.2. This provision establishes continuous monitoring requirements for certain sources. The Federal rule also exempts sources from monitoring requirements if they burn certain types of fuel and if a source has never been out of compliance with applicable particulate emission standards or visibility standards in a state rule. Prior to this revisions of section 005, the state rule allowed the exemption if the source has not been out of compliance with these standards in the preceding five years. This rule was not incorporated into the Nebraska SIP because it was less stringent than the Federal requirement. Because NDEQ has now revised its rule to be consistent with the Federal rule, EPA is approving it into the SIP. Revisions to Title 129—Appendices II and III, which list hazardous air pollutants and reporting levels for emissions inventory purposes, were made in response to the delisting by EPA of the chemical compound ethylene glycol monobutyl ether from the regulated lists of Hazardous Air Pollutants. The addition of Chapter 42 will offer Permits-by-Rule provisions which will provide a streamlined approach for issuing permits to various categories of sources. Nebraska's rule applies to minor sources in these source categories, including new, existing and temporary sources that have been approved by NDEQ for coverage under a permit-by-rule. Under these provisions, sources that are approved for a permit by rule are considered to have fulfilled the duty to obtain a construction and/or operating permit as required by Title 129, Chapter 17 and Chapter 5, respectively, unless required to do so by any other legal requirement. This is expected to significantly reduce NDEQ's resource burden by allowing sources in specified categories to operate under these provisions, as opposed to requiring them to apply for individual permits. In addition, this will allow for resources to be spent in oversight of sources covered by the rule and in issuing individual permits to larger and more diverse sources not covered under these provisions. The industry categories that are eligible to apply for a permit-by-rule include hot mix asphalt plants and small animal incinerators. A hot mix asphalt plant is defined in this rule as a facility that is comprised of generators; heaters; dryers; systems for screening, handling, storing and weighing hot aggregate; systems for loading, transferring and storing aggregate materials; system for mixing hot mix asphalt; and associated emission control systems. A small animal incinerator is defined as a facility that is used to burn deceased animal remains and is comprised of a dual-chamber design, consisting of a primary charging chamber and a secondary chamber (or after burner) with burners located in each burner. NDEQ has ensured that provisions included in this rule are protective of human health and of the NAAQS by: • Not allowing sources and/or emission units that are subject to the prevention of significant deterioration
(PSD)program or that will be operated as a major source pursuant to the Class I operating permit program under Title 129, Chapter 5, to be eligible for a permit-by-rule. • Not allowing provisions established in this rule to supersede any other applicable Federal requirements or a previously issued construction or operating permit (unless a technical demonstration is submitted which shows that the prior requirements are unnecessary to protect the NAAQS or PSD increment). • Prohibiting a source that obtains a permit-by-rule to locate in or relocate to a nonattainment area. • Including provisions which require that the owner or operator of any new, existing or temporary sources intended to be covered under a permit-by-rule notify NDEQ before construction begins (in the case of construction permits) or before operation begins (in the case of operating permits). • Including provisions that require the source to submit the necessary information to conduct an air quality impact assessment as requested or as deemed appropriate by the Director of NDEQ. • Establishing actions that will be taken against sources that have not complied with the permit-by-rule. • Requiring that the source provide annual emissions inventory data or other necessary information to determine the impact of sources under a permit-by-rule to maintain the ambient air quality standards. • Requiring notification to NDEQ and the local agencies, as applicable, of a change in location for temporary sources and determination of new hourly limits. • Including record keeping requirements that would allow evaluation and enforcement of the limits and conditions contained in the rule. • Establishing performance testing to evaluate compliance with provisions of the permit-by-rule. • For hot mix asphalt plants, requiring the use of an air emissions computation program provided by NDEQ to establish hourly production limits and hourly generator combustion limits which will be used to conduct dispersion modeling to establish hourly limits that comply with the NAAQS. • For hot mix asphalt plants, limiting the amount of diesel fuel that can be used on a monthly and a consecutive 12-month basis. • For hot mix asphalt plants, requiring that the appropriate emissions control technology be installed. • For small animal incinerators, establishing a restriction of the percent of medical/infectious waste that can be included per load to be incinerated. In addition, NDEQ submitted a demonstration showing that, for each category covered by the rule, emission limits established in the rule are protective of the NAAQS accounting for the worst-case scenario for each source category. Have the Requirements for Approval of a SIP and Part 70 Revision Been Met? The state submittal has met the public notice requirements for SIP submissions in accordance with 40 CFR 51.102. The submittal also satisfied the completeness criteria of 40 CFR part 51, appendix V. In addition, as explained above and in more detail in the technical support document which is part of this document, the revision meets the substantive SIP requirements of the CAA, including section 110 and implementing regulations. The revision also meets the applicable requirements of Title V and EPA regulations for revision to the operating permit program. What Action Is EPA Taking? We are processing this action as a direct final action because the revisions make routine changes to the existing rules and other changes which are noncontroversial. Therefore, we do not anticipate any adverse comments. Please note that if EPA receives adverse comment on part of this rule and if that part can be severed from the remainder of the rule, EPA may adopt as final those parts of the rule that are not the subject of an adverse comment. Statutory and Executive Order Reviews Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). This action merely approves state law as meeting Federal requirements and imposes no additional requirements beyond those imposed by state law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). Because this rule approves pre-existing requirements under state law and does not impose any additional enforceable duty beyond that required by state law, it 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). This rule also does not have tribal implications because it will 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, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have Federalism implications because it does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a state rule implementing a Federal standard, and does not alter the relationship or the distribution of power and responsibilities established in the CAA. This rule also is not subject to Executive Order 13045, “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it is not economically significant. In reviewing State submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the CAA. Thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). 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 September 8, 2006. 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. (See section 307(b)(2).) List of Subjects 40 CFR Part 52 Environmental protection, Air pollution control, Carbon monoxide, Incorporation by reference, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds. 40 CFR Part 70 Administrative practice and procedure, Air pollution control, Intergovernmental relations, Operating permits, Reporting and recordkeeping requirements. Dated: June 19, 2006. William W. Rice, Acting Regional Administrator, Region 7. Chapter I, title 40 of the Code of Federal Regulations is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: Authority: 42 U.S.C. 7401 *et seq.* Subpart CC—Nebraska 2. In § 52.1420 the table in paragraph
(c)is amended by revising the entries for 129-34, 129-42, and Appendix II to read as follows: § 52.1420 Identification of plan.
(c)* * * EPA-Approved Nebraska Regulations Nebraska citation Title State effective date EPA approval date Explanation State of Nebraska Department of Environmental Quality Title 129—Nebraska Air Quality Regulations * * * * * * * 129-34 Emission Sources; Testing; Monitoring 5/7/2005 7/10/2006 [ *insert FR page number where the document begins* ] * * * * * * * 129-42 Permits-By-Rule 11/20/2002, 4/8/2003, 5/7/2005 7/10/2006 [ *insert FR page number where the document begins* ] * * * * * * * Appendix II Hazardous Air Pollutants
(HAPs)5/7/2005 7/10/2006 [ *insert FR page number where the document begins* ] PART 70—[AMENDED] 1. The authority citation for part 70 continues to read as follows: Authority: 42 U.S.C. 7401 *et seq.* Appendix A—[Amended] 2. Appendix A to Part 70 is amended by adding paragraph
(i)under Nebraska; City of Omaha; Lincoln-Lancaster County Health Department to read as follows: Appendix A to Part 70—Approval Status of State and Local Operating Permits Programs Nebraska; City of Omaha; Lincoln-Lancaster County Health Department.
(i)The Nebraska Department of Environmental Quality approved a revision to NDEQ Title 129, Appendix III on May 2, 2005, which became effective May 7, 2005. This revision was submitted on October 20, 2005. We are approving this program revision effective September 8, 2006. [FR Doc. E6-10730 Filed 7-7-06; 8:45 am] BILLING CODE 6560-50-P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency 44 CFR Part 64 [Docket No. FEMA-7933] Suspension of Community Eligibility AGENCY: Mitigation Division, Federal Emergency Management Agency (FEMA), Department of Homeland Security. ACTION: Final rule. SUMMARY: This rule identifies communities, where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP), that are scheduled for suspension on the effective dates listed within this rule because of noncompliance with the floodplain management requirements of the program. If FEMA receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in this rule, the suspension will not occur and a notice of this will be provided by publication in the **Federal Register** on a subsequent date. DATES: *Effective Dates:* The effective date of each community's scheduled suspension is the third date (“Susp.”) listed in the third column of the following tables. ADDRESSES: If you want to determine whether a particular community was suspended on the suspension date, contact the appropriate FEMA Regional Office. FOR FURTHER INFORMATION CONTACT: William H. Lesser, Mitigation Division, 500 C Street, SW., Washington, DC 20472,
(202)646-2807. SUPPLEMENTARY INFORMATION: The NFIP enables property owners to purchase flood insurance which is generally not otherwise available. In return, communities agree to adopt and administer local floodplain management aimed at protecting lives and new construction from future flooding. Section 1315 of the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4022, prohibits flood insurance coverage as authorized under the NFIP, 42 U.S.C. 4001 *et seq.* ; unless an appropriate public body adopts adequate floodplain management measures with effective enforcement measures. The communities listed in this document no longer meet that statutory requirement for compliance with program regulations, 44 CFR part 59 *et seq.* Accordingly, the communities will be suspended on the effective date in the third column. As of that date, flood insurance will no longer be available in the community. However, some of these communities may adopt and submit the required documentation of legally enforceable floodplain management measures after this rule is published but prior to the actual suspension date. These communities will not be suspended and will continue their eligibility for the sale of insurance. A notice withdrawing the suspension of the communities will be published in the **Federal Register** . In addition, FEMA has identified the Special Flood Hazard Areas (SFHAs) in these communities by publishing a Flood Insurance Rate Map (FIRM). The date of the FIRM, if one has been published, is indicated in the fourth column of the table. No direct Federal financial assistance (except assistance pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act not in connection with a flood) may legally be provided for construction or acquisition of buildings in identified SFHAs for communities not participating in the NFIP and identified for more than a year, on FEMA's initial flood insurance map of the community as having flood-prone areas (section 202(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4106(a), as amended). This prohibition against certain types of Federal assistance becomes effective for the communities listed on the date shown in the last column. The Administrator finds that notice and public comment under 5 U.S.C. 553(b) are impracticable and unnecessary because communities listed in this final rule have been adequately notified. Each community receives 6-month, 90-day, and 30-day notification letters addressed to the Chief Executive Officer stating that the community will be suspended unless the required floodplain management measures are met prior to the effective suspension date. Since these notifications were made, this final rule may take effect within less than 30 days. National Environmental Policy Act This rule is categorically excluded from the requirements of 44 CFR Part 10, Environmental Considerations. No environmental impact assessment has been prepared. Regulatory Flexibility Act The Administrator has determined that this rule is exempt from the requirements of the Regulatory Flexibility Act because the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4022, prohibits flood insurance coverage unless an appropriate public body adopts adequate floodplain management measures with effective enforcement measures. The communities listed no longer comply with the statutory requirements, and after the effective date, flood insurance will no longer be available in the communities unless remedial action takes place. Regulatory Classification This final rule is not a significant regulatory action under the criteria of section 3(f) of Executive Order 12866 of September 30, 1993, Regulatory Planning and Review, 58 FR 51735. Executive Order 13132, Federalism This rule involves no policies that have federalism implications under Executive Order 13132. Executive Order 12988, Civil Justice Reform This rule meets the applicable standards of Executive Order 12988. Paperwork Reduction Act This rule does not involve any collection of information for purposes of the Paperwork Reduction Act, 44 U.S.C. 3501 *et seq.* List of Subjects in 44 CFR Part 64 Flood insurance, Floodplains. Accordingly, 44 CFR part 64 is amended as follows: PART 64—[AMENDED] 1. The authority citation for part 64 is revised to read as follows: Authority: 42 U.S.C. 4001 *et seq.* ; Reorganization Plan No. 3 of 1978, 3 CFR, 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367, 3 CFR, 1979 Comp.; p. 376. § 64.6 [Amended] The tables published under the authority of § 64.6 are amended as follows: State and location Community No. Effective date authorization/cancellation of sale of flood insurance in community Current effective map date Date certain Federal assistance no longer available in SFHAs Region IV Tennessee: Greenville, Town of, Greene County 470069 June 12, 1975, Emerg; August 1, 1986, Reg; July 3, 2006, Susp July 3, 2006 July 3, 2006. Region VI Louisiana: Arcadia, Town of, Bienville Parish 220029 June 12, 1975, Emerg; March 1, 1986, Reg; July 3, 2006, Susp ......do * Do. Ringgold, Town of, Bienville Parish 220030 March 30, 1976, Emerg; October 15, 1985, Reg; July 3, 2006, Susp ......do * Do. * -do-=Ditto. Code for reading third column: Emerg.-Emergency; Reg.-Regular; Susp.-Suspension. Dated: June 22, 2006. David I. Maurstad, Mitigation Division Director, Federal Emergency Management Agency, Department of Homeland Security. [FR Doc. 06-6071 Filed 7-7-06; 8:45 am]
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U.S. Code
30 references not yet in our index
  • 5 CFR 534
  • 5 CFR 430
  • 5 CFR 534.404(c)
  • 5 CFR 534.404(e)(2)
  • Pub. L. 108-136
  • 117 Stat. 1638
  • 16 CFR 1031
  • 5 USC 601-612
  • 16 CFR 1032
  • Pub. L. 97-35
  • 15 USC 2051-2083
  • 15 USC 1261-1276
  • 15 USC 1191-1204
  • 16 CFR 1012
  • 16 CFR 1030
  • 32 CFR 50
  • Pub. L. 96-354
  • Pub. L. 104-4
  • Pub. L. 109-163
  • Pub. L. 90-321
  • 12 CFR 226
  • 40 CFR 52
  • 40 CFR 93
  • 413 F.3d 3
  • 40 CFR 51
  • 40 CFR 51.21(r)(6)
  • 40 CFR 70
  • 44 CFR 64
  • 44 CFR 59
  • 44 CFR 10
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U.S.C.§ 553
U.S.C.§ 2051
U.S.C.§ 2056
U.S.C.§ 1262
F. App'x413 F.3d 3
Cite5 CFR 534
Cite5 CFR 430
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