Unknown. Final rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2006-07-28.xml --- 71 145 Friday, July 28, 2006 Contents Agricultural Agricultural Research Service NOTICES Meetings: Biotechnology and 21st Century Agriculture Advisory Committee, 42795 E6-12071 Agriculture Agriculture Department See Agricultural Research Service See Animal and Plant Health Inspection Service See Commodity Credit Corporation See Federal Crop Insurance Corporation See Foreign Agricultural Service See Forest Service Air Force Air Force Department NOTICES Environmental statements; notice of intent:

Eglin Air Force Base, FL; Joint Strike Fighter Integrated Training Center; establishment, 42838-42839 E6-12085 Animal Animal and Plant Health Inspection Service NOTICES Grants and cooperative agreements; availability, etc.: National Animal Identification System; private animal tracking databases, 42795-42796 E6-12069 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Centers Centers for Disease Control and Prevention NOTICES Organization, functions, and authority delegations:

National Office of Public Health Genomics, 42850 06-6519 Centers Centers for Medicare & Medicaid Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 42850-42852 E6-12035 E6-12036 E6-12037 Committees; establishment, renewal, termination, etc.: Practicing Physicians Advisory Council; meeting, 42852-42854 E6-11948 Grants and cooperative agreements; availability, etc.: State Children's Health Insurance Program, 42854-42859 E6-12031 Coast Guard Coast Guard RULES Drawbridge operations:

Florida, 42757-42758 E6-11877 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, E6-12103 42799-42800 E6-12104 Commodity Commodity Credit Corporation RULES Loan and purchase programs: Cooperative marketing associations, 42749-42750 E6-12068 Commodity Commodity Futures Trading Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 42818 06-6539 Customs Customs and Border Protection Bureau PROPOSED RULES Trade Act (2002); implementation:

Express consignment carrier facilities; customs processing fees, 42778-42785 E6-12067 Defense Defense Department See Air Force Department RULES Restoration Advisory Boards; general, operating, administrative support, funding and reporting requirements Correction, 42756-42757 06-6531 NOTICES Arms sales notification; transmittal letter, etc., 42818-42837 06-6529 06-6530 06-6532 06-6533 Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 42838 06-6528 Drug Drug Enforcement Administration NOTICES Registration revocations, restrictions, denials, reinstatements:

Medicine Shoppe, 42878-42879 E6-12100 *Applications, hearings, determinations, etc.:* Tocris Cookson, Inc., 42878 E6-12101 Education Education Department NOTICES Privacy Act; computer matching records, 42839-42840 E6-12131 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Environmental statements; notice of intent: FutureGen Project implementation, 42840-42844 E6-12118 EPA Environmental Protection Agency RULES Air pollutants, hazardous; national emission standards:

Organic liquids distribution (non-gasoline), 42898-42925 06-6419 Hazardous waste management system: Cathode ray tubes and mercury-containing equipment, 42928-42949 06-6490 NOTICES Environmental statements; availability, etc.: Agency comment availability, 42844-42846 E6-12140 Agency weekly receipts, 42846-42847 E6-12136 Meetings: Scientific Counselors Board, 42847-42848 E6-12113 Executive Executive Office of the President See Presidential Documents See Trade Representative, Office of United States FAA Federal Aviation Administration PROPOSED RULES Airworthiness directives:

Empresa Brasileira de Aeronautica S.A. (EMBRAER), 42776-42778 E6-12106 Federal Crop Federal Crop Insurance Corporation PROPOSED RULES Crop insurance regulations: Fresh market sweet corn crop, 42770-42775 E6-12066 Potato provisions, 42761-42770 06-6527 Federal Emergency Federal Emergency Management Agency NOTICES Disaster and emergency areas: Delaware, 42866 E6-12083 Maryland, 42866-42867 E6-12086 New York, 42867 E6-12090 Pennsylvania, E6-12091 E6-12093 42867-42868 E6-12095 Virginia, 42868 E6-12082 E6-12084 Federal Energy Federal Energy Regulatory Commission RULES Public Utility Holding Company Act of 2005; implementation:

Public Utility Holding Company Act of 1935; repeal; rehearing order, 42750-42756 E6-12048 Federal Highway Federal Highway Administration NOTICES Federal-aid highway programs: Texas Highway 45SE projects; licenses, permits, and approvals, 42892 06-6525 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Formations, acquisitions, and mergers, 42848 E6-12081 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service NOTICES Federal debt collection and discount and rebate evaluation;

Treasury current value of funds rate, 42894 06-6518 Fish Fish and Wildlife Service PROPOSED RULES Migratory bird hunting: Seasons, limits, and shooting hours; establishment, etc., 43008-43025 06-6542 NOTICES Endangered and threatened species: Various southwestern species; 5-year review, 42871-42872 E6-12108 Endangered and threatened species permit applications, determinations, etc., 42869-42870 06-6540 Environmental statements; availability, etc.: Don Edwards San Francisco Bay National Wildlife Refuge and Bair Island State Ecological Reserve, CA;

Bair Island restoration and management plan, 42872-42874 E6-12016 Foreign Foreign Agricultural Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 42796-42797 06-6526 MISSING FOR: Foreign-Trade Zones Board Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* Pennsylvania, 42800 E6-12059 Texas E.I. du Pont de Nemours & Co., Inc.; crop protection products manufacturing facilities, 42800-42801 E6-12061 Forest Forest Service NOTICES Environmental statements; notice of intent:

Aerial application of fire retardant for fire suppression, 42797-42798 E6-12115 Hoosier National Forest, IN, 42798 06-6561 GSA General Services Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 42838 06-6528 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See National Institutes of Health NOTICES Agency information collection activities; proposals, submissions, and approvals, 42848-42849 E6-12064 E6-12065 E6-12134 Homeland Homeland Security Department See Coast Guard See Customs and Border Protection Bureau See Federal Emergency Management Agency Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 42869 06-6515 Grants and cooperative agreements; availability, etc.:

Homeless assistance; excess and surplus Federal properties, 42869 06-6440 Reports and guidance documents; availability, etc.: Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza Act; implementation, 42996-42999 06-6517 Programs subject to 1964 Civil Rights Act, Title VI and 1973 Rehabilitation Act section 504, 43002-43006 06-6516 Indian Indian Affairs Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 42874-42875 E6-12074 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See National Park Service International International Trade Administration NOTICES Antidumping:

Large newspaper printing presses and components assembled or unassembled from— Japan, 42801 E6-12119 Preserved mushrooms from— India, 42801-42802 E6-12123 Stainless steel bar from— Germany, 42802-42804 E6-12057 E6-12062 Steel concrete reinforcing bars from— Turkey, 42805 E6-12063 Countervailing duties: Low enriched uranium from— Various countries, 42805-42806 E6-12122 Export trade certificates of review, 42806-42807 E6-12096 Scope rulings and anticircumvention determinations; list, 42807-42808 E6-12120 International International Trade Commission NOTICES Meetings;

Sunshine Act, 42878 06-6586 Justice Justice Department See Drug Enforcement Administration See Justice Programs Office Justice Justice Programs Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 42879-42880 06-6567 Land Land Management Bureau NOTICES Environmental statements; availability, etc.: Devers-Palo Verde No. 2 Transmission Line Project, CA, 42875-42876 E6-12112 Oil and gas leases: Colorado, E6-12087 42876-42877 E6-12088 E6-12089 Survey plat filings:

Nebraska, 42877 E6-12135 NASA National Aeronautics and Space Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 42838 06-6528 NIH National Institutes of Health NOTICES Inventions, Government-owned; availability for licensing, 42859-42860 E6-12132 Meetings: National Center for Complementary and Alternative Medicine, 42860 06-6548 National Heart, Lung, and Blood Institute, 06-6544 42860-42861 06-6546 National Human Genome Research Institute, 42861 06-6558 National Institute of Child Health and Human Development, 42863-42865 06-6553 06-6555 06-6560 National Institute of Environmental Health Sciences, 42862 06-6549 06-6550 06-6551 National Institute of General Medical Sciences, 42863-42864 06-6552 06-6557 National Institute of Mental Health, 42864 06-6556 National Institute on Alcohol Abuse and Alcoholism, 42863-42864 06-6554 National Institute on Deafness and Other Communication Disorders, 42861 06-6547 National Library of Medicine, 42865 06-6545 Scientific Review Center, 42865-42866 06-6543 06-6559 NOAA National Oceanic and Atmospheric Administration PROPOSED RULES Fishery conservation and management:

Northeastern United States fisheries— Atlantic hagfish, 42794 E6-12128 NOTICES Endangered and threatened species permit applications, determinations, etc., 42809-42812 E6-12127 Environmental statements; notice of intent: Buzzards Bay, MA and RI; restoration planning, 42812-42814 E6-12117 Fishery conservation and management: West Coast States and Western Pacific fisheries— American Samoa Longline Limited Entry Program; permit upgrades; availability, 42814-42815 E6-12130 Grants and cooperative agreements; availability, etc.:

Vessel Monitoring Systems Reimbursement Program; correction, 42815 E6-12125 Reports and guidance documents; availability, etc.: Alaska, Atlantic, and Pacific regional marine mammal stock assessment reports, 42815-42816 E6-12126 North American Datum of 1983 State Plane Coordinates in feet; New Jersey, 42816-42817 06-6523 42817 06-6524 U.S. Climate Change Science Program Synthesis and Assessment Product Prospectus, 42817-42818 E6-12129 National Park National Park Service NOTICES Environmental statements; availability, etc.:

Padre Island National Seashore, TX, 42877-42878 06-6538 Nuclear Nuclear Regulatory Commission PROPOSED RULES Byproduct material; expanded definition, 42952-42994 06-6477 NOTICES Domestic licensing proceedings and issuance of orders: Texas A&M University; modifications, 42882-42884 E6-12105 Environmental statements; availability, etc.: Exelon Generating Co. LLC, 42884-42885 E6-12075 Regulatory guides; issuance, availability, and withdrawal, 42885-42886 E6-12078 *Applications, hearings, determinations, etc.:* Yankee Atomic Electric Co., 42880-42882 E6-12077 Occupational Occupational Safety and Health Review Commission PROPOSED RULES Privacy Act; implementation, 42785-42794 E6-12124 Office of U.S.

Trade Office of United States Trade Representative See Trade Representative, Office of United States Peace Peace Corps NOTICES Agency information collection activities; proposals, submissions, and approvals, 42887 06-6520 Presidential Presidential Documents PROCLAMATIONS *Special observances:* Americans With Disabilities Act; anniversary (Proc. 8037), 43027-43030 06-6594 ADMINISTRATIVE ORDERS Russia; assignment of functions related to debt reduction for nonproliferation (Memorandum of July 18, 2006), 42747 06-6580 Public Public Debt Bureau See Fiscal Service Railroad Railroad Retirement Board NOTICES Agency information collection activities; proposals, submissions, and approvals, 42887-42888 E6-12073 SEC Securities and Exchange Commission NOTICES Meetings;

Sunshine Act, 42888-42889 06-6570 06-6571 Securities: Suspension of trading— Andover Apparel Group, Inc., et al., 42889-42890 06-6573 Self-regulatory organizations; proposed rule changes: Depository Trust Co. et al., 42890-42891 E6-12070 State State Department NOTICES Foreign Operations, Export Financing and related Programs Appropriations Act: Serbia and Bosnia and Herzegovina; reconstruction and development projects, 42891 E6-12110 Foreign terrorists and terrorist organizations; designation: ’Abd Al-Razziq, Abu Sufian al-Salamabi Muhammad Ahmed, 42891 06-6541 Gifts to Federal employees from foreign governments; list (2004 CY); correction, 42891-42892 E6-12111 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.:

Dakota, Missouri Valley and Western Railroad, Inc., 42892-42893 E6-12098 Stourbridge Railroad Co., Inc., 42893 E6-11954 Trade Trade Representative, Office of United States NOTICES World Trade Organization: China; commitment compliance, 42886-42887 E6-12133 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Surface Transportation Board Treasury Treasury Department See Fiscal Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 42893-42894 E6-12076 Veterans Veterans Affairs Department RULES Adjudication; pensions, compensation, dependency, etc.:

Psychosis; definition; presumptive service connection for compensation or health care purposes, 42758-42760 E6-12079 NOTICES Agency information collection activities; proposals, submissions, and approvals, 42894-42895 E6-12080 Separate Parts In This Issue Part II Environmental Protection Agency, 42898-42925 06-6419 Part III Environmental Protection Agency, 42928-42949 06-6490 Part IV Nuclear Regulatory Commission, 42952-42994 06-6477 Part V Housing and Urban Development Department, 42996-42999 06-6517 Part VI Housing and Urban Development Department, 43002-43006 06-6516 Part VII Interior Department, Fish and Wildlife Service, 43008-43025 06-6542 Part VIII Executive Office of the President, Presidential Documents, 43027-43030 06-6594 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. 71 145 Friday, July 28, 2006 Rules and Regulations DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 7 CFR Part 1425 RIN 0560-AH42 Cooperative Marketing Associations AGENCY: Commodity Credit Corporation, USDA. ACTION: Final rule.

SUMMARY: This final rule amends the regulations for the Commodity Credit Corporation

(CCC)governing Cooperative Marketing Associations (CMA's). This rule provides that a CMA is no longer required to distribute Marketing Assistance Loan

(MAL)and Loan Deficiency Payment

(LDP)proceeds directly to members of the CMA within 15 days of receipt of such proceeds from CCC, and makes additional policy clarifications on CMA distributions to members. The intent of this rule is to remove regulatory requirements that are outdated and unnecessary. DATES: This rule is effective July 28, 2006. FOR FURTHER INFORMATION CONTACT: Chris Kyer, phone:

(202)720-7935; e-mail: *chris.kyer@wdc.usda.gov.* SUPPLEMENTARY INFORMATION: Discussion of Final Rule CCC has made commodity loans available to producers through agricultural marketing cooperatives for over 70 years, beginning in 1934 with loans to cotton cooperatives. Today, there are a total of 30 cooperatives approved for CMA status by CCC to receive MAL's and LDP's on behalf of their producer members. These CMA's receive MAL's and LDP's on grains, oilseeds, rice, and cotton, and disburse marketing loan gains and LDP's to their members who have delivered commodities to the CMA for marketing on a pool basis, in addition to disbursing marketing proceeds. Members enter into marketing agreements with CMA's, which give the CMA authority to request a CCC loan or LDP on the commodity and to perform marketing functions on behalf of the members. This arrangement gives professional marketing decision making authority to the Cooperative member and optimizes marketing returns. Additionally, according to the terms of the typical CMA marketing agreement, producers receive an advance payment from the CMA soon after delivery of the commodity, at a rate usually equivalent to CCC loan rate. After the CMA has taken title to the commodity, the CMA obtains loans or LDP's from CCC and, if applicable, repays loans at opportune times at rates less than the loan rate, thus potentially maximizing marketing loan gains. Then, periodic subsequent payments may be made during the crop year to members, with final settlement occurring at the end of the crop year at a rate dependent upon the total marketing proceeds, total loan gains, and total LDP's earned by the marketing pool after taking into account advance payments and expenses. Currently, most CMA marketing agreements permit members to receive deferred payments, such that producers can defer payments from the CMA into a subsequent tax year. This practice conflicts with the regulation at 7 CFR 1425.18 which, in part, states that related CCC loan or LDP proceeds shall be distributed to members participating in the loan pool within 15 work days from the date the CMA receives loan or LDP proceeds from CCC, except when loans are redeemed within 15 work days of the date of the loan. Reviews of CMA's conducted by CCC staff during 2004 and 2005, revealed that this provision, also known as the “15-day rule,” is being interpreted and administered differently from CMA to CMA. For example, one CMA believed that the 15-day rule allowed them to obtain loan gains and hold those gains under a deferred payment contract with the producer because this qualified as constructive receipt of the funds by the member. This CMA stated that use of a deferred payment contract by Cooperatives meets the definition of constructive receipt of income used by the United States Internal Revenue Service

(IRS)because, under IRS tax deferral rules, constructive income is received when proceeds are made available in the producer's CMA account, but the producer may choose when to accept actual payment. Furthermore, an unanticipated consequence of the 15-day rule is that, if the producer requested a delayed payment from the CMS pursuant to a deferred payment agreement, some cotton CMA's have delayed submitting bales of cotton for loan until after the beginning of the next year, or until the last 15 days of the calendar year. As a result, this places a large amount of cotton under loan at the same time, sometimes as many as 800,000 bales in one evening, significantly stressing the CMA as well as the CCC loan making systems. To resolve problems and avoid any unnecessary involvement with payments schedules between CMA's and their members, 7 CFR 1425.18 is amended by this rule to specifically permit delayed payment under a deferred payment agreement between the CMA and its members. CCC is not a party to the agreement between the CMA and the member producer, which is governed by a contract between those parties. Therefore, CCC has no privity of contract with the CMA members. As such, failure of a CMA to distribute proceeds to its members in a timely manner is a dispute only between its members and the CMA. Nonetheless, CCC has found that most CMA's distribute loan and LDP proceeds to pool accounts or directly to members well within the 15 work day policy. Furthermore, IRS regulations govern cooperative member accounting and disbursement functions and contain guidance on deferred payments. Any CCC regulation requiring cooperatives to treat payments differently could be contradictory. Therefore, 7 CFR 1425.18(a)(1) will be amended in the manner indicated. Notice and Comment Section 1601(c) of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-171) requires the Secretary to promulgate the regulations necessary to implement Title I of the 2002 Act, including those which provide for the programs addressed by this rule, without regard to the notice and comment provisions of 5 U.S.C. 553 or the Statement of Policy of the Secretary of Agriculture effective July 24, 1971, (36 FR 13804) relating to notices of proposed rulemaking and public participation in rulemaking. These regulations are thus issued as final. In addition, section 1601(c)(3) of the 2002 Act provides that the Secretary, in carrying out the rulemaking exception, shall utilize the authority in section 808 of title 5 of the U.S. Code. Accordingly, under 5 U.S.C. 808, it is further found that it would be contrary to the public interest to delay implementation of this rule for the special Congressional review provisions provided for in 5 U.S.C. 802 *et seq.* , to the extent, if any, that they would otherwise apply. Executive Order 12866 This rule has been determined to be “Not Significant” under Executive Order 12866 and has not been reviewed by the Office of Management and Budget (OMB). Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this rule because CCC is not required by 5 U.S.C. 553 or any other law to publish a notice of proposed rulemaking with respect to the subject of this rule. Environmental Assessment The environmental impacts of this rule have been considered consistent with the provisions of the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 *et seq.* , the regulations of the Council on Environmental Quality (40 CFR parts 1500-1508), and FSA's regulations for compliance with NEPA, 7 CFR part 799. To the extent these authorities may apply, CCC has concluded that this rule is categorically excluded from further environmental review as evidenced by the completion of an environmental evaluation. No extraordinary circumstances or other unforeseeable factors exist which would require preparation of an environmental assessment or environmental impact statement. A copy of the environmental evaluation is available for inspection and review upon request. Executive Order 12988 The rule has been reviewed in accordance with Executive Order 12988. This rule preempts State laws to the extent such laws are inconsistent with it. This rule is not retroactive. Before judicial action may be brought concerning this rule, all administrative remedies set forth at 7 CFR parts 11 and 780 must be exhausted. Executive Order 12372 This program is not subject to Executive Order 12372, which requires intergovernmental consultation with State and local officials. See the notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115 (June 24, 1983). Unfunded Mandates Title II of the Unfunded Mandates Reform Act of 1995

(UMRA)does not apply to this rule because CCC is not required by 5 U.S.C. 553 or any other law to publish a notice of proposed rulemaking for the subject of this rule. Further, this rule contains no unfunded mandates as defined in sections 202 and 205 of UMRA. Paperwork Reduction Act Under 7 U.S.C. 7991(c)(2)(A) these regulations may be promulgated and the program administered without regard to chapter 5 of title 44 of the United States Code (the Paperwork Reduction Act). Accordingly, these regulations and the forms and other information collection activities needed to administer the provisions authorized by these regulations are not subject to review by the Office of Management and Budget under the Paperwork Reduction Act. Government Paperwork Elimination Act CCC is committed to compliance with the Government Paperwork Elimination Act

(GPEA)and the Freedom to E-File Act, which require Government agencies in general, and the FSA in particular, to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. Most forms used by CMA's may be submitted to CCC by electronic submission. List of Subjects in 7 CFR Part 1425 Agricultural commodities, Cooperatives, Cotton, Feed grains, Oilseeds, Price support programs. For the reasons set out in the preamble, 7 CFR part 1425 is amended as set forth below. PART 1425—COOPERATIVE MARKETING ASSOCIATIONS 1. The authority citation continues to read as follows: Authority: 7 U.S.C. 1441 and 1421, 7 U.S.C. 7931-7939; and 15 U.S.C. 714b, 714c, and 714j. 2. Amend § 1425.18 by revising paragraph (a)(1) to read as follows: § 1425.18 Distribution of proceeds. (a)(1) If CCC makes loans or LDP's for any quantity in a loan pool, the related proceeds shall be distributed or otherwise made available to the members account:

(i)Based on the quantity and quality of the commodity delivered by each member;

(ii)Less any authorized charges for services performed or paid by the CMA necessary to condition or otherwise make the commodity eligible for loans or LDP's, according to the marketing agreement provided for in § 1425.13;

(iii)Within 15 work days from the date the CMA receives loan or LDP proceeds from CCC, or held according to the terms of a deferred payment agreement if requested by the member. Signed in Washington, DC, on July 17, 2006. Teresa C. Lasseter, Executive Vice President, Commodity Credit Corporation. [FR Doc. E6-12068 Filed 7-27-06; 8:45 am] BILLING CODE 3410-05-P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 366 [Docket No. RM05-32-002, Order No. 667-B] Repeal of the Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 2005 Issued July 20, 2006. AGENCY: Federal Energy Regulatory Commission, DoE. ACTION: Final Order; Order on Rehearing. SUMMARY: By this order, the Federal Energy Regulatory Commission (Commission) grants clarification and rehearing in part of Order No. 667-A. Order No. 667-A granted rehearing in part and denied rehearing in part of Order No. 667, which amended the Commission's regulations to implement repeal of the Public Utility Holding Company Act of 1935 and enactment of the Public Utility Holding Company Act of 2005. DATES: *Effective Date:* This order is effective on August 28, 2006. FOR FURTHER INFORMATION CONTACT: Lawrence Greenfield (Legal Information), Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426,

(202)502-6415. Andrew Lyon (Legal Information), Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426.

(202)502-6614. Laura Wilson (Legal Information), Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426.

(202)502-6128. James Guest (Technical Information), Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426.

(202)502-6614. SUPPLEMENTARY INFORMATION: Before Commissioners: Joseph T. Kelliher, Chairman; Nora Mead Brownell, and Suedeen G. Kelly. Order on Rehearing 1. Subtitle F of Title XII of the Energy Policy Act of 2005 (EPAct 2005) repealed the Public Utility Holding Company Act of 1935 (PUHCA 1935) and enacted the Public Utility Holding Company Act of 2005 (PUHCA 2005). 1 In Order No. 667, the Federal Energy Regulatory Commission (Commission) amended Subchapter U of its regulations to implement Subtitle F. 2 In Order No. 667-A, the Commission denied rehearing in part and granted rehearing in part of Order No. 667. 3 In the present order, we grant clarification and rehearing in part of Order No. 667-A and amend our regulations accordingly. 1 Energy Policy Act of 2005, Pub. L. 109-58, 119 Stat. 594 (2005). 2 *Repeal of the Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 2005,* Order No. 667, 70 FR 75592 (Dec. 20, 2005), FERC Stats. & Regs. ¶ 31,197 (2005). 3 *Repeal of the Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 2005,* Order No. 667-A, 71 FR 28446 (May 16, 2006), FERC Stats. & Regs. ¶ 31,213 (2006). Introduction 2. On rehearing of Order No. 667-A, commenters 4 raise five issues. First, National Grid, EEI, Duke, and Consumers seek clarification and/or rehearing of changes in the regulatory text that could be construed to place conditions on the effectiveness of status as an exempt wholesale generator

(EWG)or foreign utility company (FUCO). Under the Commission's PUHCA 2005 regulations, a person that is a holding company solely with respect to an EWG or FUCO is eligible for exemption from books-and-records, accounting, record retention and reporting requirements. 5 In Order No. 667-A, the Commission modified the regulatory text governing procedures for obtaining EWG status to state that self-certification (or a Commission determination) would not become effective until the relevant state commissions had made certain determinations under section 32(c) of PUHCA 1935 in those cases where such determinations were necessary under section 32(c) of PUHCA 1935. Similar language was included with respect to FUCO self-certifications (and Commission determinations); *i.e.* , that such status would not become effective until the relevant state commissions had provided certain certifications under section 33(a)(2) of PUHCA 1935. National Grid, EEI, Duke, and Consumers suggest that the Commission cannot and should not require those determinations and certifications, and they seek clarification or rehearing. As discussed below, we reaffirm that EWGs are subject to section 32(c) of PUHCA 1935. 6 However, we clarify that we did not intend that an entity that meets the definition of a FUCO would not have FUCO status until a state commission certification is also provided. Accordingly, we revise the regulatory text that created this confusion. 4 Commenters in this second rehearing phase include: AES Corporation (AES); ALCOA Inc. (ALCOA); Consumers Energy Company and CMS Energy Corporation (Consumers); Duke Energy Corporation (Duke); Edison Electric Institute (EEI); Edison International (Edison); Interstate Natural Gas Association of America (INGAA); Invenergy Investment Company LLC and Mayflower Management Services LLC (Invenergy); National Grid USA (National Grid); PPL Corporation (PPL); and Sempra Energy (Sempra). 5 18 CFR 366.7(a). 6 We note that, in practice, section 32(c) of PUHCA only applies to EWGs whose generation facilities' costs were included in state-regulated rates and rate base as of the date of enactment of the Energy Policy Act of 1992 (October 24, 1992). Where it does not apply and therefore where State commission determinations are not necessary, an EWG need merely inform us of that fact. 3. Second, EEI, Sempra, Edison, PPL, and AES ask for clarification or rehearing of the Commission's definition of “single-state holding company system.” Under the Commission's PUHCA 2005 regulations, a single-state holding company system is eligible for waiver of accounting, record retention and reporting requirements. 7 In Order No. 667-A, for purposes of such waiver, the Commission defined “single-state holding company system” as a system that derives no more than thirteen percent of its “public-utility company” revenues from outside of a state. The Commission also defined “public-utility company” and “electric utility company” to include EWGs, FUCOs, and qualifying facilities (QFs). 8 As a result, interests in out-of-state EWGs, FUCOs or QFs might make a system ineligible for waiver. EEI, Sempra, Edison, PPL, and AES suggest that this result is unnecessary and would discourage investment. We grant clarification as discussed below, and modify the regulatory text to reflect this clarification. 7 18 CFR 366.3(c)(1). 8 *See* 18 CFR 366.1. 4. Third, ALCOA expresses concern as to the requirement in Order No. 667-A that, when a subsidiary owns jurisdictional transmission facilities, the parent company must apply for exemption from the Commission's PUHCA 2005 regulations rather than being eligible for exemption upon the provision of notice. ALCOA suggests that, if the subsidiary is not primarily engaged in the provision of transmission service, the parent company should be eligible for exemption upon provision of notice. We deny rehearing as discussed below. 5. Fourth, INGAA requests clarification of the Commission's definition of “gas utility company.” Under Order No. 667-A, a natural gas pipeline company that makes only incidental retail sales is a “gas utility company.” An upstream owner of the pipeline company is therefore subject to regulation under the Commission's PUHCA 2005 regulations. It asserts that this result imposes unnecessary burdens and should be avoided through adoption of a *de minimis* standard for retail sales. We grant clarification and revise the relevant regulatory text to add an additional exemption to address this circumstance as discussed below. 6. Finally, we clarify

(1)in response to a concern raised by EEI and Duke, a subsidiary holding company may be eligible for an exemption or waiver even if an upstream holding company is not; and

(2)in response to a concern raised by Invenergy, service companies within an exempt holding company system are themselves exempt from the requirements of sections 366.2, 366.22, and 366.23. Discussion 1. EWG and FUCO Status Background 7. PUHCA 2005 requires the Commission to exempt from its books-and-records requirements companies that are holding companies solely with respect to an “exempt wholesale generator” or “foreign utility company.” 9 PUHCA 2005 gives the term “exempt wholesale generator” the same meaning as in section 32 of PUHCA 1935 and gives the term “foreign utility company” the same meaning as in section 33 of PUHCA 1935. 10 9 EPAct 2005 1266. *See also* EPAct 2005 1264. 10 EPAct 2005 1262(6). 8. In the regulations implementing PUHCA 2005, the Commission restated the definition of EWG in section 32(a)(1) of PUHCA 1935. Under that definition, an EWG is a person that owns or operates an “eligible facility,” which is a facility that, with minor exception, is dedicated to wholesale sales. 11 11 18 CFR 366.1; 15 U.S.C. 79z-5(a)(1) and (2). 9. The Commission also incorporated into the definition of EWG the requirement for state commission determinations in section 32(c) of PUHCA 1935. 12 Section 32(c) applies to generation facilities whose costs were included in state-regulated rates and rate base as of the date of enactment of the Energy Policy Act of 1992 (October 24, 1992). 13 Under section 32(c), for such a facility to be considered an “eligible facility,” the relevant state commission must determine that dedication of the facility to wholesale sales will benefit consumers, will be in the public interest and will not violate state law. 14 Because, by definition, an EWG can only own or operate eligible facilities, a person seeking EWG status whose generation facilities' costs were included in state-regulated rates and rate base as of the date of enactment of the Energy Policy Act of 1992 (October 24, 1992) would not qualify as an EWG until the relevant state commission issues the specified determinations. 15 12 18 CFR 366.1, definition of “exempt wholesale generator” (1). *See also* 18 CFR 366.1, definition of “exempt wholesale generator” (2); 18 CFR 366.7 (conditioning EWG status on State determinations under section 32(c) of PUHCA 1935). 13 Pub. L. 102-486, 106 Stat. 2776 (1992). To the extent that the facilities that are at issue are not encompassed within section 32(c) of PUHCA 1935, *e.g.* , the facilities are new facilities, then section 32(c) would not apply and the state commission determinations provided for in section 32(c) would not be necessary. The regulations state that, in such circumstances, the EWG need simply inform the Commission of that fact. 14 15 U.S.C. 79z-5a(a)(2) and (c). 15 As noted supra note 13, to the extent that section 32(c) of PUHCA 1935 does not apply in a particular instance, the person seeking EWG status need simply inform the Commission of that fact. 10. In implementing PUHCA 2005, the Commission adopted the definition of “foreign utility company” in section 33(a)(3) of PUHCA 1935. 16 Under this definition, a FUCO is a company that owns or operates electricity or natural or manufactured gas facilities that are not located in the United States, that does not derive income from the generation, transmission or distribution of electricity or the distribution at retail of natural or manufactured gas in the United States, and that is not and has no subsidiary that is a public-utility company operating in the United States. 16 18 CFR 366.1, definition of “foreign utility company.” *See also* 15 U.S.C. 79z-5b(a)(3)(B). 11. In modifications to the regulatory text adopted on rehearing, the Commission included in the definition of “foreign utility company” a provision that exempts FUCOs from all sections but section 366.7 of the Commission's PUHCA 2005 regulations; 17 section 366.7 provides that FUCO status does not become effective until the FUCO has obtained state commission certification consistent with section 33(a)(2) of PUHCA 1935. 18 Section 33(a)(2) of PUHCA 1935, in turn, required state certification as a condition on exemption of a FUCO's parent company from public utility holding company regulation under PUHCA 1935. For the exemption to be effective, each state commission with jurisdiction over associated retail electricity and natural gas suppliers needed to certify that the state commission could adequately protect retail ratepayers. 19 17 *Id.* 18 18 CFR 366.7. 19 *See* 15 U.S.C. 79z-5b(a)(1) and (2). Comments 12. National Grid, EEI, Duke, and Consumers seek clarification and/or rehearing of the requirements for state commission determinations and certifications. They assert that the requirements violate PUHCA 2005 by incorporating operative provisions of PUHCA 1935. They add that state involvement is unnecessary because the Commission may prevent cross-subsidization between EWGs and FUCOs and retail suppliers. Finally, they assert that, if the Commission conditions FUCO status on state commission certification, it will prevent companies from representing that they have FUCO status until state commission certification has been obtained, and also will be inconsistent with such companies' ability to rely on FUCO status under PUHCA 1935. According to these commenters, the associated uncertainty and delay will put companies with United States affiliates at a disadvantage in bidding for foreign utility companies. Decision 13. We will deny rehearing with respect to EWGs, but grant relief with respect to FUCOs. 14. For some entities, EWG status does not take effect until state commission determinations have been obtained consistent with section 32(c) of PUHCA 1935. 20 PUHCA 2005 gives the term “exempt wholesale generator” the same meaning as in section 32 of PUHCA 1935. 21 Section 32(a)(1) of PUHCA 1935 defines “exempt wholesale generator” as a person that owns or operates an “eligible facility.” Section 32(c) of PUHCA 1935 states that certain facilities, *i.e.* , those whose costs were included in state-regulated rates and rate base as of the date of enactment of the Energy Policy Act of 1992 (October 24, 1992), are not eligible facilities until specified state commission determinations are obtained. 22 Thus, because, by definition, an EWG can only own or operate eligible facilities, and certain facilities can only be eligible facilities with state commission determinations, a person cannot be an EWG if it owns or operates such facilities ( *i.e.* , if it owns or operates generation facilities whose costs were included in state-regulated rates and rate base as of the date of enactment of the Energy Policy Act of 1992 (October 24, 1992)) without having obtained the necessary State commission determinations. 20 As noted *supra* note 13, to the extent that section 32(c) of PUHCA 1935 does not apply in a particular instance, the person seeking EWG status need simply inform the Commission of that fact. 21 EPAct 2005 1262. 22 *See* 15 U.S.C. 79z-5a(a)(1) and (c). 15. With respect to FUCOs, we clarify that the Commission did not intend to establish a requirement that an entity cannot meet the definition of a FUCO without first obtaining state commission certification. In contrast to the statutory definition of EWG in section 32 of PUHCA 1935, the statutory definition of FUCO in section 33 of PUHCA 1935 is not tied to state commission certification, and PUHCA 2005 gives the term “foreign utility company” the same meaning as in section 33 of PUHCA 1935. Under section 33 of PUHCA 1935, state commission certification affected only the availability of an exemption from public utility holding company regulation under PUHCA 1935, but was not part of the definition of “foreign utility company.” 23 As a result, state commission certification is not required by PUHCA 2005 as a condition of FUCO status, and we will eliminate the reference to such state commission certification in the regulatory text. 23 *See* 15 U.S.C. 79z-5b(a). 16. Consistent with the foregoing, we also will move paragraph

(2)of the definitions of EWG and FUCO to a new section 366.7(e). 2. Single-State Holding Companies Background 17. In implementing PUHCA 2005, the Commission provided for waiver of accounting, recordkeeping and reporting requirements for single state holding company systems. 24 The waiver reflects the principle that, when a system operates substantially within a single state, ratepayers are adequately protected by state oversight as well as by federal oversight under the Federal Power Act, 16 U.S.C. 824 *et seq.* 24 18 CFR 366.3(c). 18. In Order No. 667-A, the Commission defined “single-state holding company system” with reference to revenues from in-state versus out-of-state activities. For purposes of waiver from the Commission's accounting, record-keeping and reporting requirements, the Commission defined a single-state holding company system as a system that derives no more than thirteen percent of its “public-utility company revenues” from outside of a single state. 25 The Commission also defined “public-utility company” and “electric utility company” to include EWGs, FUCOs and QFs. 26 As a result, a system whose traditional utility operations are largely confined to a single state might be subject to federal accounting, record-keeping and reporting requirements as a result of owning out-of-state EWGs, FUCOs or QFs. 25 18 CFR 366.3(c)(1). 26 18 CFR 366.1. Comments 19. EEI, Sempra, Edison, PPL, and AES suggest that ownership of out-of-state EWGs, FUCOs or QFs should not affect a system's eligibility for waiver of federal accounting, recordkeeping and reporting requirements. They state that ownership of out-of-state EWGs, FUCOs and QFs did not affect a system's eligibility for the single-state exemption from public utility holding company regulation under PUHCA 1935. They suggest that considering ownership of out-of-state EWGs, FUCOs and QFs now would subject holding company systems to new obligations and would therefore contradict Congress's goal in PUHCA 2005 of removing regulatory obstacles to investment. Decision 20. The Commission's intent in adopting the 13 percent of revenues standard to identify who is a single state holding company system entitled to a waiver was to use the same 13 percent standard applied by the SEC under PUHCA 1935. Although we have defined “public-utility company” and “electric utility company” to include EWGs, FUCOs, and QFs, we clarify that we did not intend to include such entities' revenues for purposes of applying the 13 percent of revenues standard to identify who is a single state holding company system entitled to waiver. We will revise the relevant regulatory text in 18 CFR 366.3(c)(1) accordingly. 21. This approach is similar to the section 3(a) exemption under PUHCA 1935, which exempted single-state holding company systems from plenary federal oversight of the system's corporate and financial structure. 27 The section 3(a) exemption of PUHCA 1935 reflected Congress's assessment that the states and the federal government, through corporate and rate regulation, could otherwise effectively oversee a single-state system without the necessity of public utility holding company regulation. Existing state and federal regulation should continue to be sufficient to protect against any abuses associated with ownership of out-of-state EWGs, FUCOs and QFs. 27 15 U.S.C. 79c(a). 22. Accordingly, we will amend our regulations to provide that, for purposes of waiver under section 366.3(c)(1), revenues derived from EWGs, FUCOs and QFs will not be considered to be “public-utility company” revenues and therefore will not affect the availability of waiver of federal accounting and related requirements. 28 28 In the separate context of the statutory exemption of PUHCA 2005 section 1275(d), as reflected in 18 CFR 366.5, involving cost allocation for non-power goods and services in the case of a holding company system whose public utility operations are confined substantially to a single state, EEI asks that the Commission not require that a holding company file a petition for declaratory order in order to obtain a Commission determination that the holding company's public utility operations are confined substantially to a single state. EEI Rehearing Request at 4, 12-13. As a Commission determination that a holding company's public utility operations are confined substantially to a single state would be a declaratory order, the appropriate vehicle to seek such a determination would be a petition for a declaratory order. 3. Companies That Are Not Primarily Engaged in Transmission Background 23. In Order No. 667-A, the Commission exempted from its PUHCA 2005 regulations persons that are holding companies with respect to Commission-jurisdictional utilities when

(1)neither the utility nor an affiliate has captive customers and

(2)neither the utility nor an affiliate owns Commission-jurisdictional transmission facilities or provides Commission-jurisdictional transmission services. 29 29 *See* 18 CFR 366.3(b)(2)(ii). Comments 24. ALCOA suggests that the Commission should exempt, under 18 CFR 366.3(b)(2) and 366.4(b)(1), *i.e.* , by way of FERC-65A, companies whose subsidiaries have no captive customers and are not primarily engaged in transmission in interstate commerce, regardless of whether a subsidiary owns transmission facilities. According to ALCOA, the Commission's regulations as they stand require companies such as ALCOA to instead apply for exemption, under 18 CFR 366.3(d) and 366.4(b)(3), when a subsidiary owns discrete transmission facilities and acquired those facilities by what it characterizes as historical coincidence. ALCOA suggests that there is no regulatory interest in oversight of the parent company in those circumstances and that, therefore, the parent company should not be required to apply for exemption. 25. ALCOA also suggests that the Commission must make the exemption process provided in 18 CFR 366.3(b)(2) and 366.4(b)(1), *i.e.* , by way of FERC-65A, available to companies such as ALCOA because

(1)those companies were exempted from public utility holding company regulation under PUHCA 1935,

(2)the Commission's notice of proposed rulemaking in this proceeding suggested that the Commission did not intend to impose burdens beyond those in PUHCA 1935, and

(3)the Commission did not make the parent company of a transmission owner ineligible for the notification process until rehearing of the Commission's initial order in this proceeding. According to ALCOA, to now require ALCOA to apply for exemption would violate notice requirements of the Administrative Procedure Act, 5 U.S.C. 551-59, and ALCOA's constitutional right to the equal protection of the laws. Decision 26. At issue is not whether ALCOA and similar companies are eligible for exemption from the Commission's PUHCA 2005 regulations but whether those companies must individually and formally apply for exemption under 18 CFR 366.3(d) and 366.4(b)(3), rather than submitting an exemption notification, *i.e.* , a FERC-65A, under 18 CFR 366.4(b)(1). Contrary to ALCOA's suggestion, at this early stage in our implementation of PUHCA 2005, there is a strong regulatory interest in requiring holding companies that do not qualify for the exemptions or waivers identified in 18 CFR 366.3(b)(2) and 366.3(c) to apply formally for exemption. As relevant here, that would include, where no other exemption or waiver applies, where the company or a subsidiary owns jurisdictional transmission facilities or provides jurisdictional transmission service. We do not mean to suggest that on the facts and circumstances of a particular case an exemption or waiver might not be appropriate. Rather, at this point in time, the formal application process gives the Commission the opportunity to make such determinations on the facts and circumstances of each case. For example, the process gives the Commission the opportunity to determine whether there might be significant potential for transmission service customers to subsidize wholesale sales and, if so, whether the cross-subsidies could be adequately addressed through rate regulation. Based on that analysis, the Commission would or would not, as the facts and circumstances dictate, permit exemption from oversight under the Commission's PUHCA 2005 regulations. 30 30 In fact, ALCOA has made a formal filing, in Docket No. EL06-75-000, seeking an exemption. That filing is presently pending. 27. Moreover, the requirement does not impose undue regulatory burdens. In its request for rehearing, ALCOA cites cases in which the SEC determined that ALCOA was exempt from holding company regulation under PUHCA 1935. In light of the SEC's past, active involvement in determining eligibility for exemption under PUHCA 1935, our requirement that companies formally apply to us for exemption under the Commission's PUHCA 2005 regulations (rather than obtaining exemption by filing a FERC-65A) is unexceptional. It is true that companies like ALCOA must apply anew for exemption rather than relying on prior SEC determinations. That obligation flows directly from Congress's decision to change the governing law and is not an unreasonable cost of doing business. 28. Finally, the Administrative Procedure Act does not require us to issue a new notice of proposed rulemaking every time that we make a change to a proposed rule. The express purpose of the comment, decision, and rehearing process is to allow the Commission to make changes to a proposed rule. As evidenced by ALCOA's request for rehearing, moreover, ALCOA had actual and timely notice and opportunity to address provisions and changes that affected ALCOA. 4. Pipeline Companies That Make Incidental Retail Gas Sales Background 29. Pursuant to PUHCA 1935, and specifically section 2(a)(4) of PUHCA 1935, a natural gas pipeline that was not “primarily engaged” in the sale of natural gas at retail was not considered to be a “gas utility company.” 31 As a result, under PUHCA 1935, a holding company with interests in that pipeline would not, by virtue of those interests, be subject to public utility holding company regulation. 32 31 15 U.S.C. 79b(a)(4). 32 15 U.S.C. 79b(a)(7); *see also* 17 CFR 250.7(a) (a pipeline company was not “primarily engaged” in the sale of natural gas at retail if gross revenues from retail sales were less than an average, annual amount of $5,000,000 over the preceding three calendar years). 30. PUHCA 2005 defines “gas utility company” without regard to whether a company is primarily engaged in the retail sale of natural gas. 33 In implementing PUHCA 2005, the Commission adopted the statutory definition of “gas utility company,” with the added clarification that an entity that is engaged only in the marketing of natural gas is not a “gas utility company”: 33 EPAct 2005 1262(7). The term “gas utility company” means any company that owns or operates facilities used for distribution at retail (other than the distribution only in enclosed portable containers or distribution to tenants or employees of the company operating such facilities for their own use and not for resale) of natural or manufactured gas for heat, light, or power. For the purposes of this subchapter, “gas utility company” shall not include entities that engage only in marketing of natural and manufactured gas. 34 34 18 CFR 366.1. Under that definition, a pipeline that makes incidental retail sales of natural gas could be interpreted to be a “gas utility company,” such that a parent of the pipeline would be subject to the Commission's PUHCA 2005 regulations. 35 35 EPAct 2005 1262(8) and (13); 18 CFR 366.1. Comments 31. INGAA seeks clarification of the Commission's interpretation of “gas utility company” and asks us to find that a company that “owns an interstate natural gas pipeline company, which pipeline makes deliveries to industrial customers and power plants and/or *de minimis* deliveries to farmers and/or ranchers located adjacent to the pipeline's rights-of-way is not, due to such ownership, a ‘holding company’ under the Commission's PUHCA [2005] regulations.” INGAA relies primarily on section 2(a)(4) of PUHCA 1935, which allowed the SEC to except from the definition of “gas utility company” companies that were not “primarily engaged in” retail sales of natural gas. According to INGAA, section 2(a)(4) of PUHCA 1935 demonstrated Congressional intent not to impose holding company regulation in the context of pipeline companies that make incidental retail sales. INGAA suggests there is no need to change that longstanding practice under PUHCA 1935 and, in particular, to impose regulatory obligations under PUHCA 2005 where none existed under PUHCA 1935. It also points out that under PUHCA 1935 the SEC promulgated a regulation exempting entities from the definition of “gas utility company” if their revenues from retail distribution of natural gas were *de minimis* and that the most recent monetary limit was an average annual amount of $5 million over the preceding three calendar years. Decision 32. A holding company is defined in PUHCA 2005 and in the Commission's PUHCA 2005 regulations based on its ownership of a public-utility company. A public-utility company, in turn, includes a gas utility company, but does not include a natural gas company. So, for a public-utility company that is a gas utility company, its parent may fall within the definition of a holding company. In contrast, for a public-utility company that is a natural gas company and not a gas utility company, its parent would not fall within the definition of a holding company. INGAA's concern is that some pipelines may make incidental sales of natural gas at retail. That fact would result in their also being considered gas utility companies rather than solely natural gas companies—thus resulting in regulation of their parent companies as holding companies. 33. The relevant language in PUHCA 2005 at issue here defining “gas utility company” and when exemptions would be warranted under PUHCA 2005 is not identical to the corresponding language in PUHCA 1935 highlighted by INGAA above defining “gas utility company” and when exemptions were warranted under PUHCA 1935. That fact notwithstanding, we agree with INGAA and believe that the fact that a pipeline makes sales of natural gas to end-use customers located adjacent to the pipeline's right of way should not, on that basis alone, lead to the pipeline's parent being considered a holding company under PUHCA 2005. 36 We will revise the regulatory text accordingly to add an additional exemption to address such circumstances. 36 As we previously noted in both Order No. 667 and Order No. 667-A, we again note that we have independent authority under the Natural Gas Act to obtain the books and records of regulated companies and any person that controls such companies if relevant to jurisdictional activities. 15 U.S.C. 717g. 5. Additional Clarifications 34. We hereby grant two clarifications to Order No. 667-A. The first clarification relates to the following statement in the narrative preamble of Order No. 667-A: Where the parent holding company qualifies for an exemption or waiver, the subsidiary holding company would necessarily equally qualify; phrased differently, if the subsidiary did not qualify for a particular exemption or waiver, then the parent would not qualify for that same exemption or waiver either. 37 37 Order No. 667-A at P 20, n.41. EEI and Duke urge us to delete the latter portion of the quoted sentence that begins with “phrased differently” on the grounds that it creates unnecessary confusion. Upon further review, the first portion of the above-quoted sentence is sufficiently clear on its own. We therefore void the latter, “phrased differently” portion of the sentence. The second clarification relates to section 366.3(a) of our regulations, which states that holding companies that meet the requirements of that section are exempt from specified provisions of the Commission's PUHCA 2005 regulations: Any person that is a holding company solely with respect to one or more of the following will be exempt from the requirements of § 366.2 and the accounting, record-retention, and reporting requirements of §§ 366.21, 366.22, and 366.23 * * * . 38 38 18 CFR 366.3(a). 35. The specified provisions include two provisions—sections 366.22 and 366.23—that apply to service companies. Invenergy requests clarification that, if a holding company is exempt as provided in section 366.3(a), service companies within the holding company system are exempt from sections 366.22 and 366.23. We agree with the requested clarification and will change section 366.3(a) accordingly. Information Collection Statement 36. The regulations of the Office of Management and Budget

(OMB)39 require that OMB approve information-collection burdens that are imposed by an agency. OMB has approved the information-collection burdens that were imposed in Order Nos. 667 and 667-A. 40 The present order clarifies those orders. Accordingly, OMB approval for this order is not necessary. The Commission will send a copy of this order to OMB for informational purposes. 39 5 CFR 1320.12. 40 *See* OMB Control Nos. 1902-0166, 1902-0216. 37. Interested persons may obtain information on the information requirements by contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426 [Attention: Michael Miller, Office of the Executive Director, ED-34], Phone:

(202)502-8415, Fax:

(202)273-0873, e-mail: *michael.miller@ferc.gov* . The Commission Orders Rehearing and clarification is hereby granted in part and denied in part as discussed in the body of this order. By the Commission. Magalie R. Salas, Secretary. List of Subjects in 18 CFR Part 366 Electric power, Natural gas, Public utility holding companies and service companies, Reporting and recordkeeping requirements. In consideration of the foregoing, under the authority of PUHCA 2005, the Commission is amending Part 366 in Chapter I of Title 18 of the *Code of Federal Regulations* , as set forth below: Subchapter U—Regulations Under the Public Utility Holding Company Act of 2005 PART 366—PUBLIC UTILITY HOLDING COMPANY ACT OF 2005 Subpart A—PUHCA 2005 Definitions and Provisions 1. The authority citation for part 366 continues to read as follows: Authority: Pub. L. 109-58, 1261 *et seq.* , 119 Stat. 594, 972 *et seq.* 2. Section 366.1 is amended by revising the definitions of “exempt wholesale generator” and “foreign utility company” to read as follows: Subpart A—PUHCA 2005 Definitions and Provisions § 366.1 Definitions. For purposes of this part: *Exempt wholesale generator.* The term “exempt wholesale generator” means any person engaged directly, or indirectly through one or more affiliates as defined in this subchapter, and exclusively in the business of owning or operating, or both owning and operating, all or part of one or more eligible facilities and selling electric energy at wholesale. For purposes of establishing or determining whether an entity qualifies for exempt wholesale generator status, sections 32(a)(2) through (4), and sections 32(b) through

(d)of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a(a)(2)-(4), 79z-5a(b)-(d)) shall apply. *Foreign utility company.* The term “foreign utility company” means any company that owns or operates facilities that are not located in any state and that are used for the generation, transmission, or distribution of electric energy for sale or the distribution at retail of natural or manufactured gas for heat, light, or power, if such company:

(1)Derives no part of its income, directly or indirectly, from the generation, transmission, or distribution of electric energy for sale or the distribution at retail of natural or manufactured gas for heat, light, or power, within the United States; and

(2)Neither the company nor any of its subsidiary companies is a public-utility company operating in the United States. 3. Section 366.3 is amended by revising paragraphs

(a)introductory text, (b)(2) introductory text,

(c)introductory text, and (c)(1), and by adding paragraph (b)(2)(vii) to read as follows: § 366.3 Exemption from Commission access to books and records; waivers of accounting, record-retention, and reporting requirements.

(a)*Exempt classes of entities.* Any person that is a holding company solely with respect to one or more of the following will be exempt from the requirements of §§ 366.2 and 366.21 and any associated service company will be exempt from the requirements of §§ 366.2, 366.22, and 366.23; such person need not make the filings provided in § 366.4(a) or (b):

(b)* * *

(2)*Commission exemption of additional persons and classes of transactions.* The Commission has determined that the following persons and classes of transactions satisfy the requirements of paragraph (b)(1) of this section, and any person that is a holding company solely with respect to one or more of the following may file to obtain an exemption for that person or class of transactions, as appropriate, from the requirements of §§ 366.2 and 366.21 (applicable to holding companies) and §§ 366.2, 366.22, and 366.23 (applicable to the holding companies' associated service companies), pursuant to the notification procedure contained in § 366.4(b):

(vii)Natural gas companies that distribute natural or manufactured gas at retail to industrial or electric generation customers and/or distribute *de minimis* amounts of natural or manufactured gas at retail to farmer or rancher customers located adjacent to the natural gas company's rights-of-way.

(c)*Waivers.* Any person that is a holding company solely with respect to one or more of the following may file to obtain a waiver of the accounting, record-retention, and reporting requirements of § 366.21 (applicable to holding companies) and §§ 366.22 and 366.23 (applicable to the holding companies' associated service companies), pursuant to the notification procedures contained in § 366.4(c):

(1)Single-state holding company systems; for purposes of § 366.3(c)(1), a holding company system will be deemed to be a single-state holding company system if the holding company system derives no more than 13 percent of its public-utility company revenues from outside a single state (for purposes of this waiver, revenues derived from exempt wholesale generators, foreign utility companies and qualifying facilities will not be considered public-utility company revenues); 4. In § 366.7, paragraphs

(a)and

(b)are revised to read as follows, and paragraph

(e)is added to read as follows: § 366.7 Procedures for obtaining exempt wholesale generator and foreign utility company status.

(a)*Self-certification notice procedure.* An exempt wholesale generator or a foreign utility company, or its representative, may file with the Commission a notice of self-certification demonstrating that it satisfies the definition of exempt wholesale generator or foreign utility company (including stating the location of its generation); such notices of self-certification must be subscribed, consistent with § 385.2005(a) of this chapter, but need not be verified. In the case of exempt wholesale generators, the person filing a notice of self-certification under this section must also file a copy of the notice of self-certification with the state regulatory authority of the state in which the facility is located, and that person must also represent to this Commission in its submittal with this Commission that it has filed a copy of the notice of self-certification with the state regulatory authority of the state in which the facility is located. Notice of the filing of a notice of self-certification will be published in the **Federal Register** . Persons that file a notice of self-certification must include a form of notice suitable for publication in the **Federal Register** in accordance with the specifications in § 385.203(d) of this chapter. A person filing a notice of self-certification in good faith will be deemed to have temporary exempt wholesale generator or foreign utility company status. If the Commission takes no action within 60 days from the date of filing of the notice of self-certification, the self-certification shall be deemed to have been granted; however, consistent with section 32(c) of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a (c)) any self-certification of an exempt wholesale generator may not become effective until the relevant state commissions have made the determinations provided for therein if such determinations are necessary (if such determinations are not necessary, the notice of self-certification should state so). The Commission may toll the 60-day period to request additional information, or for further consideration of the request; in such cases, the person's exempt wholesale generator or foreign utility company status will remain temporary until such time as the Commission has determined whether to grant or deny exempt wholesale generator or foreign utility company status; however, consistent with section 32(c) of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a (c)), any self-certification of an exempt wholesale generator may not become effective until the relevant state commissions have made the determinations provided for therein if such determinations are necessary (if such determinations are not necessary, the notice of self-certification should state so). Authority to toll the 60-day period is delegated to the Secretary or the Secretary's designee, and authority to act on uncontested notices of self-certification is delegated to the General Counsel or the General Counsel's designee.

(b)*Optional procedure for Commission determination of exempt wholesale generator status or foreign utility company status.* A person may file for a Commission determination of exempt wholesale generator status or foreign utility company status under § 366.1 by filing a petition for declaratory order pursuant to § 385.207(a) of this chapter, justifying the request for such status; however, consistent with section 32(c) of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z-5a (c)), a Commission determination of exempt wholesale generator status may not become effective until the relevant state commissions have made the determinations provided for therein if such determinations are necessary. (If such determinations are not necessary, the petition for declaratory order should state so.) Persons that file petitions must include a form of notice suitable for publication in the **Federal Register** in accordance with the specifications in § 385.203(d) of this chapter.

(e)An exempt wholesale generator shall not be subject to any requirements of this part other than § 366.7, *i.e.* , procedures for obtaining exempt wholesale generator status. A foreign utility company shall not be subject to any requirements of this part other than § 366.7, *i.e.* , procedures for obtaining foreign utility company status. [FR Doc. E6-12048 Filed 7-27-06; 8:45 am] BILLING CODE 6717-01-P DEPARTMENT OF DEFENSE Office of the Secretary [DOD-2006-OS-0077; 0790-AG31] 32 CFR Part 202 Department of Defense Restoration Advisory Boards AGENCY: Department of Defense. ACTION: Final rule; correction. SUMMARY: The Department of Defense

(DoD)published a final rule document on May 12, 2006 promulgating the Restoration Advisory Board

(RAB)rule regarding the scope, characteristics, composition, funding, establishment, operation, adjournment, and dissolution of RABs. That rule implemented the requirement established in 10 U.S.C. 2705(d)(2)(A), which requires the Secretary of Defense to prescribe regulations regarding RABs. That rule was based on DoD's current policies for establishing and operating RABs, as well as the Department's experience over the past ten years. This document makes administrative corrections to the preamble of that document. DATES: This rule is effective July 28, 2006. FOR FURTHER INFORMATION CONTACT: Ms. Patricia Ferrebee, Office of the Deputy Under Secretary of Defense (Installations & Environment), 703-571-9060. SUPPLEMENTARY INFORMATION: On Friday, May 12, 2006 (71 FR 27610), the Department of Defense published a final rule, “Department of Defense Restoration Advisory Boards”. On page 27612, Section B. 202.2, “Criteria for Establishment”, in the fourth paragraph, in the first sentence, the term “bi-annually” is corrected to read “biennially” and on page 27613, Section F., “Developing Operating Procedures”, in the sixth paragraph, in the second sentence, “§ 202.9(a)(3)” is corrected to read “§ 202.9(a)(4)”. Dated: July 24, 2006. L.M. Bynum, OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. 06-6531 Filed 7-27-06; 8:45 am]

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