Unknown. Final rule

7,253 words·~33 min read·/register/2007/01/24/07-271

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2007-01-24.xml --- 72 15 Wednesday, January 24, 2007 Contents Alcohol Alcohol and Tobacco Tax and Trade Bureau PROPOSED RULES Alcohol; viticultural area designations: Paso Robles Westside, San Luis Obispo County, CA, 3088-3092 E7-983 NOTICES Agency information collection activities; proposals, submissions, and approvals, 3194-3195 E7-981 Army Army Department See Engineers Corps NOTICES Meetings: U.S. Military Academy, Board of Visitors; correction, 3116 07-283 Centers Centers for Disease Control and Prevention NOTICES Meetings:

Disease, Disability, and Injury Prevention and Control Special Emphasis Panels, 3148 E7-987 Children Children and Families Administration PROPOSED RULES Child Support Enforcement Program: Past-due child support collection, child support orders review and adjustment, distribution and disbursement requirements changes, etc., 3093-3102 E7-953 NOTICES Agency information collection activities; proposals, submissions, and approvals, 3148-3149 07-272 07-273 Civil Civil Rights Commission NOTICES Meetings;

State advisory committees: Florida, 3107 E7-979 North Carolina, 3107 E7-980 Coast Guard Coast Guard RULES Drawbridge operations: Connecticut, 3059-3060 E7-991 E7-992 Louisiana, 3058 E7-994 New York, 3059 E7-993 Ports and waterways safety; regulated navigation areas, safety zones, security zones, etc.: St. Lawrence River, Wellesley Island, NY, 3060-3061 E7-1004 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Consumer Consumer Product Safety Commission NOTICES Settlement agreements:

Hoover Co., Inc., 3113-3114 07-292 Customs Customs and Border Protection Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 3150-3151 E7-959 Defense Defense Department See Army Department See Engineers Corps NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 3114-3115 07-291 Meetings: Defense Health Board, 3115 07-277 Science Board task forces, 3115-3116 07-274 07-275 07-276 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 3118-3119 E7-967 E7-968 Grants and cooperative agreements; availability, etc.:

Postsecondary education— International Research and Studies Program, 3123-3127 E7-1019 U.S.-Brazil Higher Education Consortia Program, 3119-3123 E7-1016 Election Election Assistance Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 3127 07-290 Employee Employee Benefits Security Administration NOTICES Employee benefit plans; individual exemptions: Bear, Stearns & Co. Inc. et al., 3152-3159 E7-969 Plumbers and Pipefitters National Pension Fund, 3159-3165 E7-970 Energy Energy Department NOTICES Committees; establishment, renewal, termination, etc.:

Ultra-Deepwater Advisory Committee, 3127-3128 E7-973 Unconventional Resources Technology Advisory Committee, 3128-3130 E7-976 Engineers Engineers Corps NOTICES Environmental statements; availability, etc.: Beaufort County, NC; phosphate mine operation continuation, 3116-3117 07-282 Dover, OH; dam safety assurance evaluation report, 3117 07-281 Environmental statements; notice of intent: Brower and Miami-Dade Counties, FL; Combined Structural and Operational Plan, 3117-3118 07-280 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States; air quality planning purposes; designation of areas:

Arizona, 3061-3075 E7-996 Pesticides; tolerances in food, animal feeds, and raw agricultural commodities: Spiromesifen, 3075-3079 E7-990 PROPOSED RULES Air pollution control; new motor vehicles and engines: Heavy-duty vehicle and engine standards; onboard diagnostics requirements, 3200-3344 07-110 Air quality implementation plans; approval and promulgation; various States; air quality planning purposes; designation of areas: Arizona, 3093 E7-995 NOTICES Pesticide, food, and feed additive petitions:

BASF Corp., 3130-3132 E7-924 Valent U.S.A. Corp. et al., 3132-3133 E7-1009 Pesticide programs: Risk assessments— Chloropicrin, 3130 E7-984 Pesticides; experimental use permits, etc.: Monsanto Co. et al., 3133-3135 E7-988 Reports and guidance documents; availability, etc.: Metabolically-derived human ventilation rates; revised approach based upon oxygen consumption rates, 3135-3136 E7-826 Executive Executive Office of the President See Trade Representative, Office of United States FAA Federal Aviation Administration RULES Airworthiness directives:

EXTRA Flugzeugbau GmbH, 3050-3052 E7-775 McDonnell Douglas, 3044-3047 E7-710 Pratt & Whitney, 3052-3055 E7-686 Reims Aviation S.A., 3047-3049 E7-774 Airworthiness standards: Special conditions— General Electric Co.; GEnx model turbofan engines, 3042-3044 07-301 Piper Aircraft, Inc.; PA-32-R-301T, Saratoga II TC, and PA-32-301FT, Piper 6X series airplanes, 3040-3042 E7-1018 Standard instrument approach procedures, 3055-3057 E7-838 E7-839 NOTICES Agency information collection activities; proposals, submissions, and approvals, 3191 07-295 Airport noise compatibility program:

Flagstaff Pulliam Airport, AZ, 3191-3192 07-300 Exemption petitions; summary and disposition, E7-999 3192-3193 E7-1006 Meetings: RTCA, Inc., 3193 07-296 FCC Federal Communications Commission RULES Radio services, special: Amateur service— Morse code telegraphy examination requirement removed, 3081-3082 E7-729 Radio stations; table of assignments: Texas, 3080-3081 E7-1012 PROPOSED RULES Common carrier services: Satellite communications— Direct broadcast satellite service in US; reduced orbital spacing feasibility; applications, 3102-3103 07-213 NOTICES Agency information collection activities; proposals, submissions, and approvals, 3136-3140 E7-723 E7-1011 07-309 Rulemaking proceedings; petitions filed, granted, denied, etc., 3140-3141 E7-1020 Federal Election Federal Election Commission NOTICES Privacy Act; systems of records, 3141-3143 E7-955 Federal Housing Federal Housing Finance Board RULES Federal home loan bank system:

Bank director eligibility, appointment, and elections, 3028-3039 07-271 FMC Federal Maritime Commission NOTICES Agreements filed, etc., 3143-3144 E7-1000 Ocean transportation intermediary licenses: Aero Costa International, Inc., et al., 3144 E7-1003 Patrick's Shipping Inc., et al., 3144-3145 E7-1001 Federal Reserve Federal Reserve System NOTICES Meetings; Sunshine Act, 3145 07-311 Federal Retirement Federal Retirement Thrift Investment Board NOTICES Meetings; Sunshine Act, 3145 07-312 FTC Federal Trade Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 3145-3147 E7-952 Food Food and Drug Administration NOTICES Reports and guidance documents; availability, etc.:

Human cells, tissues, cellular and tissue-based products recovered from donors tested for communicable diseases using pooled specimens or diagnostic tests, 3149-3150 E7-978 GSA General Services Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 3114-3115 07-291 Health Health and Human Services Department See Centers for Disease Control and Prevention See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration NOTICES Poverty income guidelines; annual update, 3147-3148 07-268 Health Health Resources and Services Administration RULES Grants:

Healthy Tomorrows Partnership for Children Program; non-Federal matching funds contribution requirement, 3079-3080 07-287 Homeland Homeland Security Department See Coast Guard See Customs and Border Protection Bureau Interior Interior Department See Land Management Bureau PROPOSED RULES Watches, watch movements, and jewelry: Insular Possessions Watch, Watch Movement, and Jewelry Programs; watch duty-exemption allocations and watch and jewelry duty-refund benefits, 3083-3087 07-294 IRS Internal Revenue Service RULES Income taxes:

Corporate reorganizations; distributions; correction, 3057-3058 E7-861 PROPOSED RULES Income taxes: Corporate reorganizations; distributions; cross-reference; correction, 3087-3088 E7-860 International International Trade Administration PROPOSED RULES Watches, watch movements, and jewelry: Insular Possessions Watch, Watch Movement, and Jewelry Programs; watch duty-exemption allocations and watch and jewelry duty-refund benefits, 3083-3087 07-294 NOTICES Antidumping and countervailing duties:

Countervailing duty changed circumstances reviews; agency practice; comment request, 3107-3109 E7-1015 Reports and guidance documents; availability, etc.: Restoring America's travel brand; national strategy to compete for international visitors; information request, 3109-3110 E7-948 International International Trade Commission NOTICES Import investigations: Modified vaccinia ankara viruses and vaccines and pharmaceutical compositions, 3151 E7-985 Labor Labor Department See Employee Benefits Security Administration See Occupational Safety and Health Administration Land Land Management Bureau NOTICES Meetings:

Resource Advisory Councils— Eastern Washington, 3151 E7-989 NASA National Aeronautics and Space Administration NOTICES Federal Acquisition Regulation (FAR): Agency information collection activities; proposals, submissions, and approvals, 3114-3115 07-291 National National Council on Disability NOTICES Meetings; Sunshine Act, 3167 07-324 National Highway National Highway Traffic Safety Administration PROPOSED RULES Motor vehicle safety standards: Child restraint systems— Lower anchors and tethers for children; system designs, child side impact safety, and public education; public meeting, 3103-3106 E7-1021 NOAA National Oceanic and Atmospheric Administration NOTICES Grants and cooperative agreements; availability, etc.:

Ernest F. Hollings Undergraduate Scholarship Program, 3110-3111 E7-1010 Reports and guidance documents; availability, etc.: Strategic plan for fisheries research (2007), 3111-3112 E7-1017 Scientific research permit applications, determinations, etc., 3112 E7-1014 National Science National Science Foundation NOTICES Agency information collection activities; proposals, submissions, and approvals, 3167-3168 E7-960 Nuclear Nuclear Regulatory Commission RULES Plants and materials; physical protection:

Secure transfer of nuclear materials, 3025-3027 E7-971 NOTICES *Applications, hearings, determinations, etc.:* Nuclear Management Co., LLC, 3168 E7-972 PPL Susquehanna LLC, 3168-3169 E7-975 Occupational Occupational Safety and Health Administration NOTICES Committees; establishment, renewal, termination, etc.: Construction Safety and Health Advisory Committee, 3166-3167 E7-1013 Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Patent Patent and Trademark Office NOTICES Patents:

Human drug products; interim term extensions— Sanvar, 3112-3113 E7-1008 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Hazardous materials: Special permit applications delayed; list, 3193-3194 07-289 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 3171-3178 E7-954 NASDAQ Stock Market LLC, 3178-3179 07-284 New York Stock Exchange LLC, 3179-3185 E7-956 E7-974 Philadelphia Stock Exchange, Inc., 3185-3188 E7-957 E7-958 E7-977 SBA Small Business Administration RULES HUBZone Program:

Miscellaneous amendments; correction, 3040 E7-966 NOTICES Disaster loan areas: Texas, 3189 E7-962 State State Department NOTICES Culturally significant objects imported for exhibition: Encompassing the Globe: Portugal and the World in the 16th and 17th Centuries, 3189 E7-1005 Glass, Gilding, and Grand Design: Art of Sasanian Iran (224-642), 3189 E7-1002 Meetings: Shipping Coordinating Committee, E7-997 E7-998 3190-3191 E7-1007 Trade Trade Representative, Office of United States NOTICES Haitian Hemispheric Opportunity through Partnership Encouragement Act:

Haiti; beneficiary country eligibility requirements; comment request, 3169-3170 E7-1121 Intellectual property rights protection; actions, reviews, country identification, etc.: China; special provincial review; comment request, 3170-3171 E7-1022 Transportation Transportation Department See Federal Aviation Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Internal Revenue Service See United States Mint U.S.

Mint United States Mint NOTICES Coin products; price increases, 3195 E7-982 Veterans Veterans Affairs Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 3195-3197 E7-963 E7-964 E7-965 Reports and guidance documents; availability, etc.: Former prisoners of war veterans; programs and policies, 3197 07-278 Separate Parts In This Issue Part II Environmental Protection Agency, 3200-3344 07-110 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. 72 15 Wednesday, January 24, 2007 Rules and Regulations NUCLEAR REGULATORY COMMISSION 10 CFR Part 73 RIN: 3150-AH90 Secure Transfer of Nuclear Materials AGENCY: Nuclear Regulatory Commission. ACTION: Final rule. SUMMARY: The Nuclear Regulatory Commission

(NRC)is amending its regulations to implement requirements for secure transfer of nuclear materials as required by Section 656 of the Energy Policy Act of 2005 (EPAct), signed into law on August 8, 2005. The final rule implements Section 656 by specifically excepting certain licensees from provisions of Section 170I of the Atomic Energy Act

(AEA)of 1954, as amended. DATES: *Effective Date:* The final rule is effective on February 23, 2007. ADDRESSES: Publicly available documents related to this rulemaking may be viewed electronically on the public computers located at the NRC's Public Document Room (PDR), Room O1F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland. The PDR reproduction contractor will copy documents for a fee. Selected documents can be viewed and downloaded electronically via the NRC's rulemaking Web site at *http://ruleforum.llnl.gov* . Publicly available documents created or received at the NRC are available electronically at the NRC's Electronic Reading Room at *http://www.nrc.gov/NRC/reading-rm/adams.html* . From this site, the public can gain entry into the NRC's Agencywide Document Access and Management System (ADAMS), which provides text and image files of NRC's public documents. If you do not have access to ADAMS or if there are problems in accessing the documents located in ADAMS, contact the NRC Public Document Room

(PDR)Reference staff at

(800)397-4209,

(301)415-4737, or by e-mail to *pdr@nrc.gov* . FOR FURTHER INFORMATION CONTACT: Frank Cardile, Office of Federal and State Materials and Environmental Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, telephone

(301)415-6185, e-mail: *fpc@nrc.gov* . SUPPLEMENTARY INFORMATION: I. Background The Energy Policy Act of 2005 On August 8, 2005, the President signed into law the EPAct of 2005 Pub. L. No. 109-58,119 Stat. 594 (2005). Section 656 of the EPAct added Section 170I to the AEA, as amended, 42 U.S.C. 2210i, and requires that:

(a)A system be established by the Commission to ensure that materials transferred or received in the United States, by any party, pursuant to an import or export license issued by NRC, are accompanied by a manifest describing the type and amount of materials;

(b)each individual receiving or accompanying the transfer of materials shall be subject to a security background check conducted by appropriate Federal entities; and

(c)the Commission issue regulations, within one year after enactment of the EPAct, identifying radioactive materials or classes of individuals that, consistent with the protection of the public health and safety and the common defense and security, are appropriate exceptions to the requirements in Section 170I of the AEA. Rulemaking Considerations Related to Proposed Rule To Implement Section 656 of the EPAct In preparing the proposed rule to implement Section 656 (71 FR 51534; August 30, 2006), the NRC determined that, based on existing requirements for shipping papers for radioactive materials already in place in Department of Transportation regulations and incorporated by reference in NRC regulations in 10 CFR part 71, an appropriate system is already established to ensure that shipments of radioactive materials, that would be affected by Section 656, are accompanied by papers ( *i.e.* , a manifest) appropriately describing the materials being shipped. Thus, NRC did not include any additional requirements for manifesting of radioactive material shipments in the proposed rule. In addition, the NRC determined that the most appropriate and comprehensive approach for establishing requirements for security background checks is as part of the broader considerations of NRC's rulemaking to implement Section 652 of the EPAct. Section 652 mandates the Commission to require fingerprinting and criminal history record checks for any individual who is permitted unescorted access to risk-significant radioactive material. The individuals referred to under Section 656 are a subgroup ( *i.e.* , those transferring radioactive material pursuant to an export or import license) of the larger group of individuals at a licensed facility, with unescorted access to radioactive material, and will be covered by the comprehensive Section 652 rulemaking. The Section 652 proposed rule is currently in preparation and its schedule calls for issuance of a proposed rule in the Fall of 2007 and a final rule in the Fall of 2008. While the Section 652 rulemaking is being conducted, NRC has a regulatory framework for security background checks through an extensive system of Orders issued during 2002-2006 that includes requirements for background checks, including fingerprinting for criminal history checks, for unescorted access to radioactive material for certain facilities which it licenses. NRC has also issued Orders to licensees for shipment of radioactive material in quantities of concern (RAMQC). The purpose of these Orders has been to impose certain security measures to supplement existing regulations at 10 CFR part 20, and equivalent Agreement State regulations, for securing licensed materials from unauthorized access, with the intent of providing the NRC with reasonable assurance that the common defense and security is protected. The Orders note that conditions for unescorted access to risk-significant sources of radioactive material are governed by an appropriate need-to-know and by background checks as input to a determination concerning the trustworthiness and reliability of individuals who have access to the material. Most recently, in October 2006, NRC issued Orders to pool-type irradiator licensees, manufacturing and distribution (M&D) licensees, and licensees making shipments of RAMQC, to specifically require fingerprinting and criminal history checks for unescorted access to the risk-significant sources of radioactive material at their facilities. Issuance of Proposed Rule Consistent with Section 656(b) of the EPAct, the Commission proposed to amend NRC's regulations to except from the security background check requirements of Section 170I of the AEA, as amended, licensees who have *not* received NRC Orders containing requirements for background checks for trustworthiness and reliability, that include fingerprinting and criminal history record checks, as a prerequisite for unescorted access to risk-significant radioactive materials. As noted above, Orders restricting access based on fingerprinting and criminal history record checks have been issued for pool-type irradiator licensees, M&D licensees, and licensees who make shipments of RAMQC. These licensees can use the provisions of their existing Orders (or new or amended Orders) to comply with Section 170I. Also, if additional Orders for fingerprinting and criminal history checks for unescorted access to radioactive material are issued to licensees other than those noted here, licensees who receive any such new Orders would no longer be excepted from the security background check requirements of Section 170I. The rationale for the exceptions is that it is consistent with the system of Orders, issued to certain licensees, that the NRC has instituted for protection of the common defense and security. The materials possessed and transferred by the licensees who have received Orders have been deemed, during the process of issuance of the Orders, to be appropriate for immediately requiring certain security measures for unescorted access based on potential higher risk resulting from malevolent use of those materials. The proposed rule was published in the **Federal Register** on August 30, 2006 (71 FR 51534) as a proposed new § 73.28 in 10 CFR part 73. II. Discussion Summary of Public Comments on the Proposed Rule The public comment period closed on September 29, 2006. In response to the request for comments, NRC received two comment responses, one from the Organization of Agreement States

(OAS)and one from the Nuclear Energy Institute (NEI). The comment response from the OAS summarized the content of the NRC's proposed rulemaking and its effect on Agreement States, including that the proposed Agreement State Compatibility Category of the proposed rule would be “NRC.” The comment response from the OAS concluded by stating that the NRC approach in the rulemaking seemed reasonable to the OAS Executive Board. The comment response letter from NEI stated that NEI supports the proposed rule as drafted. However, NEI also stated that there were two areas of confusion regarding the applicability of the rulemaking. In particular, NEI noted that there are a number of power reactor licensees that were not issued additional orders, but that have personnel who come in contact with radioactive materials in transit and who are not covered by existing rules in 10 CFR 73.57. Particularly noted were personnel in shipping and receiving operations located outside of the protected area who are considered outside of the nuclear power facility and do not require access to Safeguards Information. The second area of confusion related to a NEI concern as to where this Section 656 rulemaking will end and where the referenced Section 652 rulemaking, due for issuance in late 2007, will start. With regard to the first point raised by NEI, the Supplementary Information in the **Federal Register** Notice, issuing the proposed rule, stated that this Section 656 rulemaking is relying upon the framework of the existing system of NRC Orders, either in place or to be put into place, as the basis for codifying exceptions. This allows for a consistent approach for radioactive materials which NRC considers appropriate, at this time, for exception from the requirements of Section 170I of the AEA as amended by the EPAct. The materials possessed and transferred by licensees who have received Orders have been deemed, during the process of issuance of the Orders, to be appropriate for immediately requiring certain security measures for unescorted access based on potential higher risk resulting from malevolent use of those materials. Orders for fingerprinting and criminal history checks for persons at licensed facilities shipping RAMQC were issued in October 2006. As noted previously, the Section 652 rulemaking will take a more comprehensive approach in establishing requirements for security background checks for licensees, and for licensee employees, for unescorted access to radioactive material. To the extent that personnel at a nuclear power plant handle risk-significant material and are not currently covered by regulation and/or order with regard to background checks and fingerprinting, consideration can be given to including such licensee personnel in NRC's framework of orders. If such additional Orders are issued, those licensees who have not previously received any such Orders would no longer be excepted from the security background check requirements of Section 170I, under the provisions of this final rule. With regard to the second point raised by NEI, the Supplementary Information in the proposed rule notes that the NRC intends to address background checks and fingerprinting for criminal history record checks for licensees in a more comprehensive manner under the rulemaking to implement Section 652 of the EPAct. One of the elements of that rulemaking, as mandated by Section 652(B)(i)(ll), will be determining requirements for access to quantities of radioactive material, subject to regulation by the Commission, that the Commission determines to be of such significance to the public health and safety or to the common defense and security as to warrant fingerprinting and background checks. The requirements for exceptions in this Section 656 rulemaking were issued as part of a mandate of Section 656 of the EPAct for a limited subset of licensee employees. If necessary, the requirements now codified at 10 CFR 73.28 will be revisited, and may be amended and/or superseded by the more comprehensive Section 652 rulemaking. Summary of Revisions to Proposed Rule After review of the public comments, the NRC has decided to make final the approach in the August 30, 2006, proposed rule (i.e., to amend NRC's regulations to except from the security background check requirements of Section 170I those licensees that have *not* received NRC Orders restricting unescorted access to radioactive materials to individuals who have undergone background checks, for trustworthiness and reliability, that include fingerprinting and criminal history record checks). As of October 2006, Orders for fingerprinting and criminal history checks for unescorted access to radioactive materials have been issued to pool-type irradiator licensees, M&D licensees, and licensees who make shipments of RAMQC. Under the provisions of the final rule, if additional Orders for fingerprinting and criminal history checks for unescorted access to radioactive material are issued to licensees other than those noted above, licensees who receive any such new Orders would no longer be excepted from the security background check requirements of Section 170I of the AEA. III. Section by Section Analysis of Final Rule New § 73.28 has not been revised from the wording in the proposed rule and continues to except licensees from the security background check provisions of Section 170I of the AEA if they have not received Orders from the NRC containing requirements for background checks for trustworthiness and reliability that include fingerprinting and criminal history checks as a prerequisite for unescorted access to radioactive materials. Licensees subject to Orders are not excepted from the security background check provisions, and would use the requirements in their existing Orders to comply with Section 170I of the AEA. IV. Voluntary Consensus Standards The National Technology Transfer and Advancement Act of 1995 (Pub. L. 104-113) requires that Federal agencies use technical standards that are developed or adopted by voluntary consensus standards bodies unless the use of such a standard is inconsistent with applicable law or otherwise impractical. In this final rule, NRC is indicating specific exceptions to the requirements of Section 656 of the EPAct. This action does not constitute the establishment of a standard that establishes generally applicable requirements. V. Agreement State Compatibility Under the “Policy Statement on Adequacy and Compatibility of Agreement State Programs,” which became effective on September 3, 1997 (62 FR 46517), NRC program elements (including regulations) are placed into four compatibility categories (Compatibility Category A through D). In addition, NRC program elements also can be identified as having particular health and safety significance or as being reserved solely to NRC. The amendment to 10 CFR part 73 is a program element designated “NRC” based on implementation of the procedure in NRC's Management Directive 5.9, “Adequacy and Compatibility of Agreement States.” The requirements in this amendment are limited to providing exceptions to requirements in Section 170I of the AEA and are based on a system of Orders that were developed under NRC's authority to protect the common defense and security which are areas of exclusive NRC regulatory authority and cannot be relinquished to the Agreement States. Therefore, the requirements of this amendment should not be adopted by the Agreement States. VI. Environmental Impact: Categorical Exclusion NRC has determined that this final rule is the type of action described in 10 CFR 51.22(c)(3)(ii) as a categorical exclusion. Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this final rule. VII. Paperwork Reduction Act Statement This final rule does not contain new or amended information collection requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq* .). Existing requirements were approved by the Office of Management and Budget, approval number 3150-0002. VIII. Public Protection Notification The NRC may not conduct or sponsor, and a person is not required to respond to, a request for information or an information collection requirement unless the requesting document displays a currently valid Office of Management and Budget control number. IX. Regulatory Analysis A regulatory analysis has not been prepared for this regulation because it relieves restrictions and does not impose any additional burdens on licensees. X. Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b), the Commission certifies that this rule will not have a significant economic impact on a substantial number of small entities. The amendment does not impose any additional burdens on licensees. XI. Backfit Analysis NRC has determined that the backfit rule (§§ 50.109, 70.76, 72.62, or 76.76) does not apply to this final rule because this amendment does not involve any provisions that would impose backfits as defined in the backfit rule. Therefore, a backfit analysis is not required. XII. Congressional Review Act In accordance with the Congressional Review Act of 1996, the NRC has determined that this action is not a major rule and has verified this determination with the Office of Information and Regulatory Affairs of OMB. List of Subjects in 10 CFR Part 73 Criminal penalties, Export, Hazardous materials transportation, Import, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Security measures. For the reasons set out in the preamble and under the authority of the AEA, as amended; the Energy Reorganization Act of 1974, as amended; and 5 U.S.C. 552 and 553; NRC is adopting the following amendment to 10 CFR part 73. PART 73—PHYSICAL PROTECTION OF PLANTS AND MATERIALS 1. The authority citation for part 73 continues to read as follows: Authority: Secs. 53, 161, 68 Stat. 930, 948, as amended, sec. 147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as amended, 204, 88 Stat. 1242, as amended, 1245, sec. 1701, 106 Stat. 2951, 2952, 2953 (42 U.S.C. 5841, 5844, 2297f); sec. 1704, 112 Stat. 2750 (44 U.S.C. 3504 note). Section 73.1 also issued under secs. 135, 141, Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C, 10155, 10161). Section 73.37(f) also issued under sec. 301, Pub. L. 96-295, 94 Stat. 789 (42 U.S.C. 5841 note). Section 73.57 is issued under sec. 606, Pub. L. 99-399, 100 Stat. 876 (42 U.S.C. 2169). 2. Section 73.28 is added to read as follows: § 73.28 Security background checks for secure transfer of nuclear materials. Licensees are excepted from the security background check provisions in Section 170I of the AEA if they have not received Orders from the Nuclear Regulatory Commission containing requirements for background checks for trustworthiness and reliability that include fingerprinting and criminal history record checks as a prerequisite for unescorted access to radioactive materials. Dated at Rockville, Maryland, this 18th day of January 2007. Annette L. Vietti-Cook, Secretary of the Commission. [FR Doc. E7-971 Filed 1-23-07; 8:45 am] BILLING CODE 7590-01-P FEDERAL HOUSING FINANCE BOARD 12 CFR Part 915 [No. 2007-01] RIN 3069-AB-33 Federal Home Loan Bank Appointive Directors AGENCY: Federal Housing Finance Board. ACTION: Interim final rule with request for comments. SUMMARY: The Federal Housing Finance Board (Finance Board) is adopting procedures for the selection of Federal Home Loan Bank

(Bank)appointive directors. The procedures require the boards of directors of the Banks to submit to the Finance Board a list of individuals that includes information regarding each individual's eligibility and qualifications to serve as a Bank director. The Finance Board will use the lists provided by each Bank to select well-qualified individuals to serve on the Bank's board of directors. DATES: This interim final rule is effective on January 24, 2007. The Finance Board will accept written comments on the interim final rule on or before February 23, 2007. *Comments:* Submit comments to the Finance Board using any one of the following methods: E-mail: *comments@fhfb.gov.* Fax: 202-408-2580. Mail/Hand Delivery: Federal Housing Finance Board, 1625 Eye Street NW., Washington, DC 20006, ATTENTION: Public Comments. Federal eRulemaking Portal: *http://www.regulations.gov* . Follow the instructions for submitting comments. If you submit your comment to the Federal eRulemaking Portal, please also send it by e-mail to the Finance Board at *comments@fhfb.gov* to ensure timely receipt by the agency. Include the following information in the subject line of your submission: Federal Housing Finance Board. Interim Final Rule: Federal Home Loan Bank Appointive Directors. RIN Number 3069-AB-33. Docket Number 2007-01. We will post all public comments we receive without change, including any personal information you provide, such as your name and address, on the Finance Board Web site at *http://www.fhfb.gov/Default.aspx?Page=93&Top=93.* FOR FURTHER INFORMATION CONTACT: Neil R. Crowley, Deputy General Counsel, 202-408-2990, *crowleyn@fhfb.gov;* or Thomas P. Jennings, Senior Attorney Advisor, Office of General Counsel, 202-408-2553, *jenningst@fhfb.gov.* You can send regular mail to the Federal Housing Finance Board, 1625 Eye Street NW., Washington, DC 20006. SUPPLEMENTARY INFORMATION: I. Background Section 7(a) of the Federal Home Loan Bank Act (Bank Act) (12 U.S.C. 1427(a)), authorizes the Finance Board to appoint directors to the board of each Bank. Section 7(f)(2) (12 U.S.C. 1427(f)(2)) authorizes the Finance Board to fill any vacancy in an appointive directorship for the remainder of the unexpired term. The current rule implementing this statutory authority provides only for the selection of appointive directors in the sole discretion of the Finance Board, but lacks any procedures for accomplishing this. *See* 12 CFR 915.10(a). The Finance Board has determined that adopting procedures for the selection of appointive directors will enhance its ability to identify and appoint well-qualified individuals to serve as Bank directors. Accordingly, the Finance Board is amending § 915.10 to adopt procedures under which the board of directors of each Bank will submit to the Finance Board a list of individuals that includes information regarding each individual's eligibility and qualifications to serve as a Bank director. The Finance Board will use the lists provided by each Bank to select well-qualified individuals to serve on the Bank's board of directors. II. Analysis of the Interim Final Rule A. Bank Responsibilities An effective board of directors is an important element in maintaining the safety and soundness of a Bank and ensuring that it serves its housing and community finance mission. The Banks and other interested parties with knowledge of the district likely will be familiar with individuals who have the background and skills necessary to serve on the board of a large financial institution such as a Bank. The Finance Board believes that the appointment process will be enhanced by allowing those most familiar with the resources in a Bank's district to play a greater role in identifying a pool of well-qualified individuals from which the Finance Board can appoint Bank directors. Accordingly, the rule seeks to utilize the local and regional knowledge of the Bank, as well as of any other interested parties, in seeking out or otherwise identifying individuals who have the background and skills necessary to serve as an effective Bank director. Under the rule, the Banks are responsible at the initial stages of the selection process for identifying potential appointive directors, assessing their eligibility and qualifications, and nominating them to the Finance Board. In doing so, the Finance Board expects each Bank to assess the appropriate experience and abilities its board must possess in order to operate effectively. When the Bank's board identifies potential appointive directors, it will perform a preliminary assessment of their qualifications prior to sending a list of nominations to the Finance Board. The board's preliminary assessment should include, but is not limited to, a review of the individuals' executed eligibility form and their community reputation. In the case of an individual seeking to be designated as a community interest director, the Finance Board expects that each Bank will assess the individual's prior experience in serving the consumer and community interests specified in the Bank Act. As noted below, in order to allow for a well-diversified applicant pool, the rule permits any interested party to submit to the Banks the names of prospective directors, which the Banks will evaluate based on each individual's qualifications. Section 915.10(a)(1) requires the board of directors of each Bank annually, on or before October 1st, to submit to the Finance Board a list of nominees who meet the statutory eligibility requirements and are otherwise well-qualified for the appointive directorships that will become vacant at the end of that calendar year. Determining who to include on the list is left to the boards of directors of the Banks, which may exercise discretion in determining how to identify and present individuals to the Finance Board. The board should consider each individual in light of his or her background and experience as it relates to being a director of a Bank, and should select nominees based on the totality of their qualifications. Section 915.10(a)(3) of the rule further requires that the list of individuals a Bank submits include 2 times the number of appointive directorships that are to be filled that year. Under § 915.15(b), the Finance Board has the discretion to require a Bank to provide information about additional eligible and well-qualified individuals. Along with the list of eligible and qualified individuals, the Bank must provide the original executed appointive director application form on which each individual describes in detail the business, financial, housing, community and economic development, or other leadership experiences that qualify him or her to serve on the board of the Bank. A copy of the form is attached as an exhibit. Section 915.10(a)(2) extends this procedure to filling vacancies that arise before the completion of a full term, by requiring the board of directors of the Bank to submit a list of 2 individuals for any appointive directorship that becomes vacant prior to the end of its term. The rule requires a Bank to act promptly to provide the list to fill the remaining term of a vacant appointive directorship. B. Finance Board Selection Section 915.10(b) provides that the Finance Board has sole discretion to appoint individuals to the boards of the Banks. In exercising this discretion, the Finance Board intends to look principally to the qualifications of the nominees, and will appoint only those individuals who have demonstrated that they possess the experience necessary to serve effectively on the board of a large and sophisticated financial institution with an important housing finance and economic development mission, such as a Bank. By relying on the demonstrated qualifications of the nominees, the Finance Board expects that any individuals it appoints will possess the experience and skills necessary to serve as the independent voices on the board of directors, a role that can best be played by the appointive directors of the Banks. The rule also makes clear that the Finance Board may decline, in its sole discretion, to appoint any of the individuals on the initial list submitted by the Bank. If this occurs, the Finance Board can direct a Bank to submit the names of additional eligible and well-qualified individuals for the Finance Board's consideration. C. Prospective Appointive Directors To ensure a diverse pool of prospective directors, § 915.10(c) allows any individual who is interested in being appointed to the board of a Bank to submit to the Bank an executed appointive director application form. The rule also allows any interested party to make recommendations to a Bank regarding individuals who are well-qualified to serve on the board of the Bank, but requires any such individual to submit to the Bank the same application form before the Bank may consider that person for inclusion in the list it submits to the Finance Board. The rule does not provide for any individuals to submit applications directly to the Finance Board. The board of the Bank has discretion to determine which individuals it submits to the Finance Board for consideration, although the Finance Board expects that the Bank's board will give due consideration to all persons seeking to be nominated to the board. D. Term of Office Section 915.10(d) is substantially similar to § 915.10(b) of the current rule. It has been revised to delete outdated language that addressed how the Finance Board would stagger the terms of appointive directors with terms commencing in 2001 and 2002, to achieve a one-third staggering of the boards of directors, as required by section 7(d) of the Bank Act (12 U.S.C. 1427(d)). Because the Finance Board has adjusted the terms of office for those directorships and has established 3 approximately equal classes of directors at each of the Banks that language is no longer necessary and is deleted. E. Appointive Directorship Vacancies Existing on January 1, 2007 Section 915.10(e) is a temporary provision for filling appointive directorships that are vacant on January 1, 2007. The rule requires the boards of directors of the Banks to submit the list of eligible and qualified individuals to the Finance Board on or before March 31, 2007, instead of October 1, 2007. In all other respects, the changes made by the interim final rule will apply. For these directorships the Finance Board intends to consider nominations as they are received, and the rule thus does not require a Bank to submit nominations for all vacancies at one time. III. Notice and Public Participation The notice and comment procedure required by the Administrative Procedure Act is inapplicable to this interim final rule because it is a rule of agency procedure. *See* 5 U.S.C. 553(b)(3)(A). In addition, it is in the public interest to fill appointive directorships at the Banks with well qualified individuals as soon as it is practicable to do so. *See* 5 U.S.C. 553(b)(3)(B). However, because the Finance Board believes that public comments are valuable, it encourages comments on this interim final rule, and will consider all comments received on or before February 23, 2007 in promulgating a final rule. IV. Effective Date For the reasons stated in part III above, the Finance Board for good cause finds that the interim final rule should become effective on January 24, 2007. *See* 5 U.S.C. 553(d)(3). V. Paperwork Reduction Act The appointive director application form is part of the information collection entitled “Federal Home Loan Bank Directors.” Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Office of Management and Budget

(OMB)has assigned control number 3069-0002, which is due to expire on November 30, 2007. The Finance Board and the Banks use the information contained in the application form to determine whether prospective appointive Bank directors satisfy the statutory and regulatory eligibility requirements and are well qualified to serve as a Bank director. Only individuals meeting these requirements may serve as Bank directors. *See* 12 U.S.C. 1427. The interim final rule does not make substantive or material modifications to the “Federal Home Loan Bank Directors” information collection. Consequently, the Finance Board has not submitted any information to OMB for review. VI. Regulatory Flexibility Act The Finance Board is adopting this procedural amendment in the form of an interim final rule and not as a proposed rule. Therefore, the provisions of the Regulatory Flexibility Act do not apply. *See* 5 U.S.C. 601(2) and 603(a). List of Subjects in 12 CFR Part 915 Conflicts of interest, Elections, Federal home loan banks, Reporting and recordkeeping requirements. For the reasons stated in the preamble, the Finance Board amends 12 CFR part 915 as follows: PART 915—BANK DIRECTOR ELIGIBILITY, APPOINTMENT, AND ELECTIONS 1. The authority citation for part 915 continues to read as follows: Authority: 12 U.S.C. 1422a(a)(3), 1422b(a), 1426, 1427, and 1432. 2. Revise § 915.10 to read as follows: § 915.10 Selection of appointive directors.

(a)*Bank responsibilities* .

(1)On or before October 1st of each year, the board of directors of each Bank shall submit to the Finance Board a list of eligible nominees who are well-qualified to fill the appointive directorships that will expire on December 31st of that year, along with the original Finance Board-prescribed appointive director application form executed by each individual on the list.

(2)If an appointive directorship becomes vacant prior to the expiration of its term, the board of directors of the Bank shall submit to the Finance Board a list of eligible nominees who are well-qualified to fill that directorship, along with each individual's executed appointive director application form, promptly after the vacancy arises.

(3)The number of nominees on any list submitted by a Bank's board of directors pursuant to paragraphs (a)(1) or

(2)of this section shall equal 2 times the number of appointive directorships to be filled.

(b)*Finance Board selection* . As provided by the Act, the Finance Board has the sole responsibility for appointing individuals to the boards of directors of the Banks. In exercising that responsibility, the Finance Board shall select from among the nominees on the list submitted by the Bank pursuant to paragraph

(a)of this section, provided, however, that if the Finance Board does not fill all of the appointive directorships from the list initially submitted by the Bank, it may require the Bank to submit a supplemental list of nominees for its consideration.

(c)*Prospective applicants.* Any individual who seeks to be appointed to the board of directors of a Bank may submit to the Bank an executed appointive director application form that demonstrates that the individual both is eligible and has business, financial, housing, community and economic development, and/or leadership experience. Any other interested party may recommend to the Bank that it consider a particular individual as a nominee for an appointive directorship, but the Bank may not do so until the individual has provided the Bank with an executed appointive director application form. The board of directors of the Bank may consider any individual for inclusion on the list it submits to the Finance Board provided it has determined that the individual is eligible and well-qualified for an appointive directorship at the Bank.

(d)*Term of office.* The term of office of each appointive directorship is 3 years, except as adjusted pursuant to section 7(d) of the Act (12 U.S.C. 1427(d)) to achieve a staggered board, and shall commence on January 1st. In the case of a discretionary appointive directorship that is terminated pursuant to § 915.3(b)(5), the term of office of the directorship shall end after the close of business on December 31st of that year.

(e)*Appointive directorship vacancies existing on January 1, 2007.* For appointive directorships that are vacant on January 1, 2007, the board of directors of each Bank shall submit the information required by paragraph

(a)of this section on or before March 31, 2007. Dated: January 18, 2007. By the Board of Directors of the Federal Housing Finance Board. Ronald A. Rosenfeld, Chairman. Editorial Note: The following forms will not appear in the Code of Federal Regulations. BILLING CODE 6725-01-P ER24JA07.005 ER24JA07.006 ER24JA07.007 ER24JA07.008 ER24JA07.009 ER24JA07.010 ER24JA07.011 ER24JA07.012 ER24JA07.013 [FR Doc. 07-271 Filed 1-23-07; 8:45 am]

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