Unknown. Final rule; technical amendments and removals

9,110 words·~41 min read·/register/2007/04/06/07-1715

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-2007-04-06.xml --- 72 66 Friday, April 6, 2007 Contents Agricultural Agricultural Marketing Service PROPOSED RULES Onions grown in South Texas, 17037-17042 E7-6234 Agriculture Agriculture Department See Agricultural Marketing Service See Foreign Agricultural Service See Forest Service Air Force Air Force Department NOTICES Privacy Act; systems of records, 17136-17137 E7-6457 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Census Census Bureau NOTICES Census 2010:

Census Block Group Program; proposed criteria, 17337-17343 E7-6467 Census County Division and Equivalent Entities Program; proposed criteria, 17324-17326 E7-6464 Census Designated Place Program; proposed criteria, 17326-17329 E7-6465 Census Tract Program; proposed criteria, 17329-17337 E7-6466 Centers Centers for Disease Control and Prevention NOTICES Meetings: Disease, Disability, and Injury Prevention and Control Special Emphasis Panels, 17168-17169 E7-6444 Centers Centers for Medicare & Medicaid Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 17169-17170 E7-6310 Coast Guard Coast Guard RULES Ports and waterways safety; regulated navigation areas, safety zones, security zones, etc.:

Milwaukee Captain of Port Zone, WI, 17024-17025 E7-6424 Regattas and marine parades: Tulip Time Fireworks and Water Ski Show, 17024 E7-6362 PROPOSED RULES Drawbridge operations: Virginia, 17065-17068 E7-6146 Regattas and marine parades: Lake Michigan Captain of Port zone marine events, 17062-17065 E7-6425 Commerce Commerce Department See Census Bureau See Foreign-Trade Zones Board See International Trade Administration See Minority Business Development Agency See National Institute of Standards and Technology 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, 17093-17094 E7-6470 Comptroller Comptroller of the Currency NOTICES Agency information collection activities; proposals, submissions, and approvals, 17221-17225 E7-6419 07-1707 07-1708 Defense Defense Department See Air Force Department NOTICES Meetings:

Care for America's Returning Wounded Warriors, President's Commission, 17136 07-1712 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 17137-17139 E7-6448 E7-6449 Grants and cooperative agreements; availability, etc.: Education and special education research and research training support programs, 17346-17351 07-1713 Safe and drug-free schools programs— Readiness and Emergency Management for Schools Grant Program, 17139-17143 E7-6503 Employment Employment and Training Administration NOTICES Adjustment assistance; applications, determinations, etc.:

Robert Bosch Corp. et al., 17183-17185 E7-6430 Yamaha Music Manufacturing Inc., 17185 E7-6431 Grants and cooperative agreements; availability, etc.: Workforce Investment Act and Wagner-Peyser Act— Adult, youth, dislocated worker, employment service, workforce information, and work opportunity tax credit, etc., 17185-17194 E7-6487 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Environmental statements; record of decision: Orlando Gasification Project, FL, 17143-17149 E7-6435 EPA Environmental Protection Agency RULES Air programs; approval and promulgation;

State plans for designated facilities and pollutants: Rhode Island, 17025-17027 E7-6460 Solid wastes: Hazardous waste; identification and listing— Exclusions, 17027-17032 07-1650 PROPOSED RULES Air programs; approval and promulgation; State plans for designated facilities and pollutants: Rhode Island, 17068 E7-6461 Pesticides; tolerances in food, animal feeds, and raw agricultural commodities: Pesticide treated food packaging, 17068-17071 E7-6349 NOTICES Environmental statements; availability, etc.:

Agency comment availability, 17156-17157 E7-6456 Agency weekly receipts, 17157-17158 E7-6452 Meetings: Environmental Policy and Technology National Advisory Council, 17158 E7-6458 Science Advisory Board, 17158-17159 E7-6459 FAA Federal Aviation Administration RULES Airworthiness directives: General Electric Co., 16998-17001 E7-6345 Raytheon Aircraft Co., 16990-16998 07-1715 Commercial space transportation: Reusable suborbital rockets; experimental permits, 17001-17024 E7-6194 PROPOSED RULES Airworthiness directives:

Empresa Brasileira de Aeronautica S.A. (EMBRAER), 17042-17044 E7-6445 Sicma Aero Seat, 17045-17046 E7-6478 FDIC Federal Deposit Insurance Corporation NOTICES Agency information collection activities; proposals, submissions, and approvals, 17222-17224 07-1708 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation combined filings, 17150-17152 E7-6432 Electric utilities (Federal Power Act): Other Federal agencies costs submissions; cost submittals review; questions and comments request, 17152 E7-6436 Environmental statements; availability, etc.:

Grand River Dam Authority, 17152-17153 E7-6442 Environmental statements; notice of intent: Boardwalk Pipeline Partners, LP, 17153-17155 E7-6443 Hydroelectric applications, 17155-17156 E7-6441 Meetings: Downeast LNG, Inc.; technical conference, 17156 E7-6437 *Applications, hearings, determinations, etc.:* Brookfield Energy Marketing US LLC, 17149 E7-6439 Citigroup Energy Canada ULC, 17149-17150 E7-6440 Saguaro Power Co., LP, 17150 E7-6438 Federal Housing Federal Housing Finance Board NOTICES Meetings;

Sunshine Act, 17159 07-1739 Federal Motor Federal Motor Carrier Safety Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 17218-17219 E7-6427 Federal Reserve Federal Reserve System RULES Depository institutions; reserve requirements (Regulation D): Bankers’ banks; exemption from reserve requirements; criteria; interpretation, 16987-16990 E7-6473 NOTICES Agency information collection activities; proposals, submissions, and approvals, 17222-17224 07-1708 Foreign Foreign Agricultural Service NOTICES Adjustment assistance; applications, determinations, etc.:

Burley Tobacco Growers Cooperative Association and Burley Stabilization Corp., 17091 E7-6468 California Avocado Commission, 17091 E7-6469 Michigan natural honey apiarists, 17091 E7-6463 National Grape Cooperative Association, 17091-17092 E7-6471 MISSING FOR: Foreign-Trade Zones Board Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* North Carolina Volvo Construction Equipment North America, Inc.; construction equipment manufacture, 17094-17095 E7-6507 Forest Forest Service NOTICES Appealable decisions; legal notice:

Southwestern Region, 17092-17093 07-1703 Meetings: Willamette Province Advisory Committee, 17093 07-1710 Government Government Ethics Office RULES Executive branch regulations: Charitable payments in lieu of honoraria; conforming technical amendments and obsolete regulations removed, 16985-16987 E7-6228 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 17159-17160 E7-6415 E7-6416 Grants and cooperative agreements; availability, etc.:

Embryo donation and/or adoption projects, 17161-17168 E7-6433 Homeland Homeland Security Department See Coast Guard See National Communications System See U.S. Citizenship and Immigration Services NOTICES Privacy Act; systems of records, 17172-17176 07-1643 Housing Housing and Urban Development Department NOTICES Grants and cooperative agreements; availability, etc.: Homeless assistance; excess and surplus Federal properties, 17177 E7-6165 Interior Interior Department See Land Management Bureau See Minerals Management Service See National Park Service NOTICES Meetings:

Blackstone River Valley National Heritage Corridor Commission, 17177 E7-6476 IRS Internal Revenue Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 17225-17227 E7-6397 E7-6400 E7-6401 E7-6402 E7-6403 International International Trade Administration NOTICES Antidumping: Frozen warmwater shrimp from— China and Vietnam, 17095-17100 E7-6502 Various countries, 17100-17110 E7-6504 Oil country tubular goods from— Mexico, 17110-17111 E7-6512 Labor Labor Department See Employment and Training Administration See Occupational Safety and Health Administration Land Land Management Bureau NOTICES Realty actions; sales, leases, etc.:

Idaho, 17177-17178 E7-6410 New Mexico, 17179-17180 E7-6411 Survey plat filings: Colorado, 17180 E7-6417 Minerals Minerals Management Service PROPOSED RULES Outer Continental Shelf Lands Act; open and nondiscriminatory access to oil and gas pipelines, 17047-17062 E7-6197 Minority Minority Business Development Agency NOTICES Meetings: Asian Americans and Pacific Islanders, President's Advisory Commission, 17111-17112 E7-6420 National Communications National Communications System NOTICES Meetings:

National Security Telecommunications Advisory Committee, 17176 E7-6418 National Highway National Highway Traffic Safety Administration RULES Motor vehicle safety standards: Electronic stability control systems; controls and displays, 17236-17322 07-1649 National Institute National Institute of Standards and Technology NOTICES Grants and cooperative agreements; availability, etc.: Neutron Research and Neutron Scattering Financial Assistance Program and Sample Environment Equipment Financial Assistance Program, 17112-17116 E7-6505 NOAA National Oceanic and Atmospheric Administration PROPOSED RULES Fishery conservation and management:

Northeastern United States fisheries— Atlantic sea scallop, 17076-17085 E7-6489 State and Federal commercial fishing vessel permit programs reconciliation, 17085-17090 E7-6490 International fishing regulations: Pacific halibut— Guided sport charter vessel fishing; harvest restrictions, 17071-17076 E7-6422 NOTICES Endangered and threatened species permit applications, 17116-17117 E7-6412 Environmental statements; availability, etc.: Beaufort and Chukchi Seas, AK; seismic surveys, 17117-17118 E7-6414 Marine mammals:

Incidental taking; authorization letters, etc.— ConocoPhillips Alaska, Inc. and Union Oil Co. of California; Cook Inlet, AK; open-water seismic operations; small numbers of marine mammals, 17118-17133 E7-6488 Meetings: Mid-Atlantic Fishery Management Council, 17133 E7-6428 National Marine Fisheries Service and State Marine Fisheries Directors, 17133-17134 E7-6399 Reports and guidance documents; availability, etc.: Water quality and stream habitat protection manual for county road maintenance in northwestern California watersheds, 17134-17135 E7-6413 Scientific research permit applications, determinations, etc., 17135-17136 E7-6484 E7-6486 National Park National Park Service NOTICES Environmental statements; availability, etc.:

John Day Fossil Beds National Monument, OR; general management plan, 17180-17181 E7-6451 Environmental statements; notice of intent: Pinnacles National Monument, CA; general management plan, 17181-17182 E7-6447 National Register of Historic Places; pending nominations, 17182-17183 E7-6501 Nuclear Nuclear Regulatory Commission NOTICES *Applications, hearings, determinations, etc.:* BWX Technologies, Inc., 17195 E7-6480 Global Nuclear Fuel-Americas, LLC, 17196-17199 07-1699 Honeywell International, Inc., 17199-17202 07-1698 Westinghouse Electric Co., LLC, 17202-17205 07-1697 Occupational Occupational Safety and Health Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 17194-17195 E7-6434 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Meetings:

Pipelines safety— Technical Pipeline Safety Standards Committee and Technical Hazardous Liquid Pipeline Safety Standards Committee; cancellations, 17219 E7-6426 Pipeline safety: Waiver petitions— Freeport LNG, 17220 07-1705 Sabine Pass LNG, 17219-17220 07-1706 Public Public Debt Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 17228-17229 E7-6364 E7-6423 E7-6453 E7-6454 SEC Securities and Exchange Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 17205-17206 E7-6491 E7-6492 E7-6495 Investment Company Act of 1940:

First Trust Exchange-Traded Fund et al., 17207-17208 E7-6392 Self-regulatory organizations; proposed rule changes: NYSE Arca, Inc., 17209-17210 E7-6494 Options Clearing Corp., 17210-17212 E7-6493 Philadelphia Stock Exchange, Inc., 17212-17215 E7-6496 Social Social Security Administration NOTICES Privacy Act; computer matching programs, 17215-17216 E7-6497 State State Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 17216 E7-6475 Culturally significant objects imported for exhibition:

Mythic Beasts, 17217 E7-6477 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 17170-17172 E7-6481 Surface Surface Transportation Board RULES Fees: Licensing and related services; 2007 update, 17032-17036 E7-6479 NOTICES Railroad operation, acquisition, construction, etc.: BNSF Railway Co., 17220-17221 E7-6217 Orange County Transportation Authority, 17221 E7-6483 Susquehanna Susquehanna River Basin Commission NOTICES Commission actions, 17217 E7-6472 Thrift Thrift Supervision Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 17222-17224 07-1708 Transportation Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration See Surface Transportation Board Treasury Treasury Department See Comptroller of the Currency See Internal Revenue Service See Public Debt Bureau See Thrift Supervision Office MISSING FOR:

U.S. Citizenship and Immigration Services U.S. Citizenship and Immigration Services NOTICES Agency information collection activities; proposals, submissions, and approvals, 17176-17177 E7-6455 Veterans Veterans Affairs Department NOTICES Privacy Act; systems of records, 17229-17233 E7-6233 Separate Parts In This Issue Part II Transportation Department, National Highway Traffic Safety Administration, 17236-17322 07-1649 Part III Commerce Department, Census Bureau, 17324-17343 E7-6464 E7-6465 E7-6466 E7-6467 Part IV Education Department, 17346-17351 07-1713 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 66 Friday, April 6, 2007 Rules and Regulations OFFICE OF GOVERNMENT ETHICS 5 CFR Parts 2634, 2635, and 2636 RINs 3209-AA00, 3209-AA04 and 3209-AA13 Removal of Obsolete Regulations Concerning the Inoperative Provisions Regarding Charitable Payments In Lieu of Honoraria and Conforming Technical Amendments AGENCY:

Office of Government Ethics (OGE). ACTION: Final rule; technical amendments and removals. SUMMARY: The Office of Government Ethics is removing obsolete regulatory provisions in its executive branch outside earned income restrictions and ethical conduct standards regulations that were designed to implement the statutory provision regarding charitable payments made in lieu of honoraria, which is no longer legally operative. In addition, OGE is removing a related provision in the branchwide financial disclosure regulation regarding supplemental confidential reporting for such payments.

Finally, OGE is making a few technical conforming amendments to reflect these changes. DATES: These technical amendments and removals are effective May 7, 2007. ADDRESSES: Office of Government Ethics, Suite 500, 1201 New York Avenue, NW., Washington, DC 20005-3917, Attn.: Mr. Gressman. FOR FURTHER INFORMATION CONTACT: William E. Gressman, Senior Associate General Counsel, Office of Government Ethics, telephone: 202-482-9300; TDD: 202-482-9293; Fax: 202-482-9237. SUPPLEMENTARY INFORMATION:

The Ethics Reform Act of 1989 (Pub. L. 101-194) amended the Ethics in Government Act of 1978 (Ethics Act) to bar Government employees from accepting honoraria. See 5 U.S.C. app. 501(b). At the same time, the 1989 Act also contained an exception to this prohibition which permitted employees to direct payment to charitable organizations in lieu of accepting honoraria. See 5 U.S.C. app. 501(c). However, in *National Treasury Employees Union* v. *United States* , 513 U.S. 454

(1995)(the *NTEU* case), the U.S. Supreme Court overturned, as to most executive branch employees, the general honorarium prohibition in the Ethics Act, finding it to be unconstitutional. Subsequently, the Department of Justice determined that because of the scope of the Supreme Court decision, the statutory ban on receipt of honoraria was inoperative as to all Government employees. See the OGE Memorandum to Designated Agency Ethics Officials (DAEOs), General Counsels and Inspectors General of February 28, 1996 (# DO-96-012); a copy of that OGE memorandum, along with the memorandum of the Justice Department, is available in the “DAEOgrams” section of the OGE Web site ( *http://www.usoge.gov* ). In the late 1990s, OGE removed the executive branch regulatory provisions concerning the overturned honoraria prohibition, along with cross-references thereto in various OGE regulations. See 62 FR 48746-48748 (September 17, 1997), 63 FR 43067-43069 (August 12, 1998), and OGE's Memorandum to DAEOs of August 13, 1998 (# DO-98-023); copies of which are available, respectively, in the Laws & Regulations and DAEOgrams sections of OGE's Web site. Thereafter, OGE asked the Office of Legal Counsel

(OLC)of the Justice Department whether section 501(c) of the Ethics Act remained in effect after the Supreme Court decision. OGE reasoned that because section 501(c) is basically an exception to the honoraria ban, the invalidation of section 501(b) should also nullify section 501(c). In an opinion issued March 1, 2001, OLC concluded that section 501(c) of the Ethics Act is no longer in effect given the *NTEU* case and the close connection between the old honorarium prohibition and the statutory exception for qualifying in lieu of honoraria charitable payments. See OGE's Memorandum to DAEOs (# DO-01-011 of March 15, 2001) announcing, in pertinent part, the OLC opinion and a planned OGE regulatory change as a result; both documents are available, respectively, in the “Laws & Regulations” and “DAEOgrams” sections of OGE's Web site ( *http://www.usoge.gov* ). In this rulemaking, OGE is removing from its executive branch regulations various provisions implementing the now-defunct exception in section 501(c) of the Ethics Act. First, in 5 CFR part 2636, which addresses limitations on outside earned income, employment and affiliations for certain noncareer employees, OGE is removing current paragraph (b)(7) of § 2636.303. OGE is rescinding this paragraph, which cites sections 501(c) and 505 (defining certain terms) of the Ethics Act, because it excludes payments to charitable organizations in lieu of honoraria from the terms “outside earned income” and “compensation” for purposes of part 2636. (OGE is also redesignating current paragraph (b)(8) of § 2636.303 as new paragraph (b)(7).) Likewise, OGE is removing a related sentence in paragraph

(c)of § 2636.303 that provides that such payments to charitable organizations are not received in violation of any of the limitations in subpart C of part 2636, since they are not outside earned income or compensation. In light of that change, OGE is making a conforming change to the wording of the following sentence of that paragraph. Moreover, OGE is removing current paragraph (a)(2)(i) of § 2636.103, which provides that part 2636 advisory opinions cannot be obtained regarding whether particular entities are qualified charitable organizations for purposes of the in lieu of honoraria payments regulatory provision that OGE is now removing from current paragraph (b)(7) of § 2636.303. In addition, OGE is removing from 5 CFR 2635.203(f)(2) of the executive branch standards of ethical conduct, which defines gifts that are solicited or accepted indirectly, an exception for payments to charities in lieu of honoraria (and which contains a citation to a provision previously removed from the part 2636 regulation). OGE is also updating a citation in 5 CFR 2635.804(c)(1) to paragraph

(b)of § 2636.303 to reflect the above-noted revisions to that paragraph. Finally, OGE never activated for the executive branch the related provision of the Ethics Act on supplemental confidential reporting of information about payments to charitable organizations in lieu of honoraria, 5 U.S.C. app., 102(a)(1)(A). In this rulemaking, OGE is removing the residual inactive confidential reporting provision currently found at paragraph (a)(2) of 5 CFR 2634.302 of its executive branch financial disclosure regulation (and is consequently redesignating the other parts of paragraph

(a)of that section), since that regulatory provision is no longer needed in light of these developments. Matters of Regulatory Procedure Administrative Procedure Act Pursuant to 5 U.S.C. 553(b), as Director of the Office of Government Ethics, I find good cause exists for waiving the general notice of proposed rulemaking and opportunity for public comment as to these final rule revisions. The notice and comment are being waived because these technical amendments and removals of certain provisions in the OGE branchwide regulations being revised concern matters of agency organization, practice and procedure. Furthermore, it is in the public interest that the obsolete provisions be removed at this time. Regulatory Flexibility Act As Director of the Office of Government Ethics, I certify under the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this rulemaking will not have a significant economic impact on a substantial number of small entities because it primarily affects Federal executive branch agencies and their employees. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because this rulemaking, involving technical amendments and removals, just eliminates the last regulatory vestiges (still unactivated) of a structure (old OMB paperwork control #3209-0004, now expired) which OGE had developed internally but never made effective in the executive branch, for supplemental confidential reporting of payments in lieu of honoraria to charitable organizations. The old inactive regulatory provisions being removed are no longer needed. Unfunded Mandates Reform Act For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. chapter 25, subchapter II), this rule will not significantly or uniquely affect small governments and will not result in increased expenditures by State, local, and tribal governments, or by the private sector, of $100 million or more (as adjusted for inflation) in any one year. Congressional Review Act The Office of Government Ethics has determined that this rulemaking is a nonmajor rule under the Congressional Review Act (5 U.S.C. chapter 8) and will submit a report thereon to the U.S. Senate, House of Representatives and Government Accountability Office in accordance with that law when the rule is transmitted to the Office of the **Federal Register** for publication. Executive Order 12866 In promulgating these technical amendments to its regulations, OGE has adhered to the regulatory philosophy and the applicable principles of regulation set forth in section 1 of Executive Order 12866, Regulatory Planning and Review. These amendments have also been reviewed by the Office of Management and Budget under that Executive order. Moreover, in accordance with section 6(a)(3)(B) of E.O. 12866, the preamble to these final rule revisions, which are being codified in revised 5 CFR parts 2634, 2635 and 2636, notes the legal basis and benefits of, as well as the need for, the regulatory action. There should be no appreciable increase in costs to OGE or the executive branch of the Federal Government in administering these amended regulations, since the revisions only remove obsolete regulatory provisions concerning a provision of the Ethics Act on in lieu of honoraria payments that is no longer in effect, along with an inactive regulatory provision concerning a related confidential reporting section of the Ethics Act. Finally, this rulemaking is not economically significant under the Executive order and will not interfere with State, local or tribal governments. Executive Order 12988 As Director of the Office of Government Ethics, I have reviewed this final rule in light of section 3 of Executive Order 12988, Civil Justice Reform, and certify that it meets the applicable standards provided therein. List of Subjects 5 CFR Part 2634 Certificates of divestiture, Conflict of interests, Financial disclosure, Government employees, Penalties, Privacy, Reporting and recordkeeping requirements, Trusts and trustees. 5 CFR Part 2635 Conflict of interests, Executive branch standards of ethical conduct, Government employees. 5 CFR Part 2636 Conflict of interests, Government employees, Penalties. Approved: March 26, 2007. Robert I. Cusick, Director, Office of Government Ethics. For the reasons set forth in the preamble, the Office of Government Ethics is amending parts 2634, 2635 and 2636 of chapter XVI of 5 CFR as follows: TITLE 5—ADMINISTRATIVE PERSONNEL CHAPTER XVI—OFFICE OF GOVERNMENT ETHICS PART 2634—EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, AND CERTIFICATES OF DIVESTITURE 1. The authority citation for part 2634 continues to read as follows: Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 26 U.S.C. 1043; Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990), as amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement Act of 1996); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. Subpart C—Contents of Reports § 2634.302 [Amended] 2. Section 2634.302 is amended by: A. Removing paragraph (a)(2); B. Redesignating paragraph (a)(1) as paragraph (a); and C. In redesignated paragraph (a), further designate paragraphs

(i)through

(iv)as paragraphs (a)(1) through (a)(4), respectively. PART 2635—STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE EXECUTIVE BRANCH 3. The authority citation for part 2635 continues to read as follows: Authority: 5 U.S.C. 7301, 7351, 7353; 5 U.S.C. App. (Ethics in Government Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. Subpart B—Gifts From Outside Sources § 2635.203 [Amended] 4. Section 2635.203 is amended by removing the phrase “or for payments made to charitable organizations in lieu of honoraria under § 2636.204 of this chapter” before the period at the end of paragraph (f)(2). Subpart H—Outside Activities § 2635.804 [Amended] 5. Section 2635.804 is amended by removing the citation “§ 2636.303(b)(8)” in paragraph (c)(1) and adding in its place the citation “§ 2636.303(b)(7)”. PART 2636—LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES 6. The authority citation for part 2636 continues to read as follows: Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990), as amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement Act of 1996); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. Subpart A—General Provisions 7. Section 2636.103 is amended by revising paragraph (a)(2) to read as follows: § 2636.103 Advisory opinions.

(a)* * *

(2)An advisory opinion may not be obtained for the purpose of establishing whether a noncareer employee who is subject to the restrictions in subpart C of this part may receive compensation for teaching. An advisory opinion issued under this section may not be substituted for the advance written approval required by § 2636.307 of this part. Subpart C—Outside Earned Income Limitation and Employment and Affiliations Restrictions Applicable to Certain Noncareer Employees 8. Section 2636.303 is amended by: A. Adding the word “or” following the semicolon at the end of paragraph (b)(6); B. Removing paragraph (b)(7); C. Redesignating paragraph (b)(8) as new paragraph (b)(7); and D. Removing the second sentence of the undesignated text at the end of paragraph

(c)and revising the last sentence thereof. The revision reads as follows: § 2636.303 Definitions.

(c)* * * * * * Also, compensation or outside earned income donated to a charitable organization is received by the employee. [FR Doc. E7-6228 Filed 4-5-07; 8:45 am] BILLING CODE 6345-02-P FEDERAL RESERVE SYSTEM 12 CFR Part 204 [Regulation D; Docket No. R-1262] Reserve Requirements of Depository Institutions AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board of Governors is revising its 1980 interpretation of Regulation D (Reserve Requirements of Depository Institutions) setting forth criteria for the “bankers’ bank” exemption from reserve requirements. The interpretation sets forth the standards that the Board uses in applying the statutory and regulatory requirements for the bankers' banks exemption to specific institutions. The revised interpretation specifies that the Board may determine, on a case-by-case basis, whether certain entities not already expressly listed in the interpretation may become customers to a limited extent of bankers' banks that remain exempt from reserve requirements. DATES: *Effective Date:* May 7, 2007. FOR FURTHER INFORMATION CONTACT: Heatherun Allison, Senior Counsel,

(202)452-3565; or Kara Handzlik, Attorney,

(202)452-3852, Legal Division, Board of Governors of the Federal Reserve System, Washington, DC 20551. For users of Telecommunications Device for the Deaf

(TDD)only, contact

(202)263-4869. SUPPLEMENTARY INFORMATION: I. Statutory Background Section 19(b) of the Federal Reserve Act

(Act)imposes reserve requirements on certain deposits and other liabilities of depository institutions for monetary policy purposes. 12 U.S.C. 461(b). The Board's Regulation D, “Reserve Requirements of Depository Institutions” (12 CFR part 204), implements Section 19(b). Section 19(b)(9) of the Act, commonly referred to as the “bankers’ bank exemption,” exempts from reserve requirements certain institutions that would otherwise be subject to them. Specifically, Section 19(b)(9) provides that reserve requirements “shall not apply with respect to any financial institution which—(A) is organized solely to do business with other financial institutions;

(B)is owned primarily by the financial institutions with which it does business; and

(C)does not do business with the general public.” 12 U.S.C. 461(b)(9). “Bankers’ banks” for purposes of Section 19(b)(9) of the Act and Regulation D include bankers' banks for commercial banks and thrifts chartered under state or federal law authorities as well as corporate credit unions. II. Issuance of Original Interpretation In November 1980, the Board issued an interpretation of Regulation D specifying certain standards to be used in determining whether institutions qualify for the bankers' bank exemption from reserve requirements. 12 CFR 204.121 (Interpretation). Under the Interpretation, an institution may be regarded as “organized solely to do business with other depository institutions even if, as an incidental part to [sic] its activities, it does business to a limited extent with entities other than depository institutions.” *Id.* In addition, a depository institution will be regarded as “being owned primarily by the institutions with which it does business” if “75 per cent or more of its capital is owned by other depository institutions * * * regardless of the type of depository institution.” *Id.* Finally, the Interpretation states that a depository institution will be regarded as “not do[ing] business with the general public” if the depository institution has satisfied two requirements. First, the depository institution must limit the range of customers with which it does business to: depository institutions; subsidiaries or organizations owned by depository institutions; directors, officers or employees of the same or other depository institutions; individuals whose accounts are required at the request of the institution's supervisory authority due to the actual or impending failure of another depository institution; share insurance funds; and depository institution trade associations. Second, the depository institution's loans to or investment in that range of customers (other than depository institutions) cannot exceed 10 percent of total assets, and the extent to which it receives shares or deposits from or issues other liabilities to those same entities (other than depository institutions) cannot exceed 10 percent of total liabilities or net worth. *Id.* III. Proposed Revisions On August 14, 2006, the Board published for comment a proposal to revise the Interpretation to specify that the Board may determine, on a case-by-case basis, whether certain entities not already expressly listed in the Interpretation may become customers to a limited extent of bankers' banks. (71 FR 46411.) This proposal was issued pursuant to Section 19(a) of the Act, which authorizes the Board to define the terms used in that section and to prescribe such regulations as it may deem necessary to effectuate the purposes of the section and to prevent evasions thereof. The Board proposed to amend the Interpretation by adding to the list of non-depository institution customers with which bankers' banks may do business and remain exempt from reserve requirements the language “and such others as the Board may determine on a case-by-case basis consistent with the purposes of the Act and the bankers' bank exemption.” The proposal would require that such customers still be subject to the percentage limitations specified in the Interpretation relating to ownership and doing business ( *i.e.* , not more than 25 percent of bankers' bank capital may be owned by non-depository institution customers and bankers' bank business with non-depository institution customers may not exceed 10 percent of total assets/liabilities). The Board did not propose to specify any standards under which it would make such case-by-case determinations. The proposal stated, however, that the Board would not expect to exercise the authority under the proposal to expand the range of permissible bankers' bank customers to include the general public. The proposal also stated that the Board expects to obtain more experience over time with requests for determinations under the proposal and, based on that experience, may find that proposing further amendments to the Interpretation (such as specifications or standards by which the Board would make such determinations) are warranted. Comment was solicited on all aspects of the proposal. IV. Analysis of Comments Overview of Comments Received The Board received seventeen comments on the proposal. Commenters included five bankers' banks (including corporate credit unions); five associations or councils representing bankers' banks, corporate credit unions, or community banks; two individuals not associated with any institution, one professor, one bank, one credit union, one financial holding company, and one bank holding company. Two commenters fully supported the proposal, while eleven commenters supported the proposal but raised concerns and/or offered suggestions about various aspects of the proposal. Three commenters opposed the proposal. One commenter did not address the issue set forth by proposal but instead commented on a separate aspect of Regulation D. 1 1 This commenter was concerned with § 204.2(d)(2) of Regulation D (12 CFR 204.2(d)(2)) and “how consumer banking institutions are interpreting the Regulation to allow them to collect ‘excess transaction fees' from banking patrons.” A. Structure of Bankers' Banks; Competitive Concerns A few commenters favored the flexibility that would be given to the Board so that the Board could allow banks to structure their operations optimally and increase services to the financial community. Many commenters, however, were concerned that the proposal would erode or eliminate the unique characteristics of a bankers' bank. Some of these commenters stated that adopting the proposal would increase competition between bankers' banks and their bank customers. These commenters emphasized that bankers' banks are not established to compete with community banks, but instead established to do business with community banks. One commenter stated that the bankers' banks should not be permitted to increase their activities to the point where the bank clients and shareholders of bankers' banks perceive these activities as directly competing with their own interest. This commenter stressed that the term bankers' bank should be “restricted to banks [that] have chosen to be owned by banks, to offer services only to other banks and to embrace the concept of serving only community banks so that they in turn can compete effectively with the largest financial institutions.” On the other hand, two commenters suggested increasing the extent to which bankers' banks could do business with non-depository institution customers while remaining exempt from reserve requirements. These commenters urged the Board to increase the percentage limitations specified in the Interpretation relating to ownership and doing business. The Board believes that adopting the proposal is not likely to erode the unique characteristics of bankers' banks. The Board cannot under Regulation D authorize activities that are not authorized by a bankers' bank's chartering authority; rather, the Board can determine only whether a bankers' bank may be exempt from reserve requirements. 2 Any given bankers' bank activity or customer must be authorized by the bankers' bank chartering authority before the Board can consider whether a bankers' bank may remain exempt from reserve requirements while undertaking such an activity or serving such a customer. In addition, as stated in the proposal, the Board does not anticipate permitting the reserve exemption to apply to a bankers' bank that does business with the general public. The Board is not revising the percentage limitations on the extent to which bankers' banks may serve non-depository institution customers while remaining exempt from reserve requirements. The Board does not believe that it is appropriate to increase those percentage limitations because to do so would reduce the extent to which bankers' banks serve primarily depository institution customers. Any new non-depository institution customers that would be permitted under the revised Interpretation will still be subject to the existing percentage limitations specified in the Interpretation relating to ownership and doing business. 2 For a bankers' bank that is a state member bank, the Board would have to approve any change in the general character of its business or in the scope of the corporate powers it exercises in accordance with Section 208.3(d)(2) of Regulation H (Membership of State Banking Institutions in the Federal Reserve System, 12 CFR part 208). Finally, the purpose of reserve requirements under Section 19 is to facilitate the conduct of monetary policy. Accordingly, the Board believes that exemptions from reserve requirements are to be narrowly construed so as not to impede the effective conduct of monetary policy. The more a bankers' bank's activities resemble those of a commercial bank or other depository institution, the less appropriate the reserve requirement exemption would be for that bankers' bank. The Board believes that these considerations will keep the bankers' bank exemption from reserve requirements from undue expansion under the revised Interpretation. B. Determination Process Some commenters raised concerns about the process by which the Board would make determinations under the proposal. Many of these commenters suggested that the Board publish requests for determinations and permit public comment on them. Among the commenters' reasons for this request was so that bankers' banks chartered by other authorities could concomitantly seek authorization of the same activities. Other commenters urged the Board to disclose the business reasons giving rise to requests for determinations as well as the Board's reasoning in granting any such requests. A few commenters asked that the Board issue its determinations in the form of an order. These commenters argued that this would afford the bankers' bank industry the opportunity to learn the “business rationale and the business opportunity” contained in such requests and orders until formal guidelines have been established by the Board. One commenter asked that the Board clearly set forth in the revised Interpretation the standards which will be used in making its future case-by-case determinations to preclude arbitrary or capricious determinations. On the other hand, another commenter urged the Board to relax standards for granting such requests and to clarify whether all entities with which the bankers' bank is permitted to do business under the Interpretation will qualify as “financial institutions.” One commenter urged the Board to specify the length of time for making determinations under the revised Interpretation, claiming that the flexibility granted by the proposal could be offset by overly lengthy determination time periods. This commenter also urged the Board to address the extent to which individual Federal Reserve Banks will be involved with the decision making process, asserting that the individual Reserve Banks are in the best position to develop understanding of a company's risk profile and management team which is necessary for making such determinations. The Board anticipates that determinations under the revised Interpretation will generally be made public and will include a description of the determination, the business and other reasons behind the request, and the Board's reasoning in granting (or denying) the request. Although the Board does not anticipate publishing requests for such determinations prior to the time that the determination is made, the Board anticipates that all requests will be handled in a timely manner and that the input of the appropriate Federal Reserve Bank or Banks, if any, will be solicited as part of that process. Finally, the Board continues to believe that publishing more detailed criteria by which the Board would review requests under the revised Interpretation would be premature at this time. As noted above, the Board cannot under Regulation D authorize activities that are not authorized by a bankers' bank's chartering authority. The Board cannot predict the kinds of changes that may or may not occur in activities or customers that chartering authorities may permit. Accordingly, the Board cannot predict the details of the criteria under which it would evaluate such activities or customers for consistency with the Act and the purposes of the bankers' bank exemption. Over time, however, the Board expects that it may be possible after further experience with requests under the Interpretation to articulate standards or guidelines for the further exercise of that authority by the Board. C. Miscellaneous One commenter supported the proposal, but asked for clarification of the “consistent with the purposes of the Act and the bankers’ bank exemption” language. Another commenter asked the Board to clarify the phrase “do business with” as that phrase appears in the Act and the Interpretation. As noted above, the Board believes that it cannot predict the manner in which chartering authorities may change the permissible activities and customers of bankers' banks. Therefore, the Board believes that it cannot at this time provide greater specificity in these areas. As also noted above, however, the Board expects that it may be able to provide greater specificity in the future as an increasing amount of experience with requests and determinations under the proposal is obtained. One commenter supported the proposal but believed that the Board inadvertently removed language from the original Interpretation when issuing the proposal for comment. The Board has corrected this inadvertent omission in the final Interpretation. Another commenter suggested that adopting the proposal would make the regulation less specific and that this could impair any relief granted to bankers' banks by adopting the proposal. This commenter also stated that the proposal violates “Plain Language” provisions of the Gramm-Leach-Bliley Act (Section 722 of Pub. L. 106-102, 113 Stat. 1338, 1471 (Nov. 12, 1999)). Finally, this commenter argued that the proposal provides such expansive authority to the Board that there can be little Congressional oversight of the Board's activities in this area. As noted above, the Board cannot itself expand bankers' bank authority to serve new kinds of customers and undertake new lines of activities. As also noted above, the Board believes that it can only issue determinations under the revised Interpretation that are consistent with the purposes of Section 19 of the Act and of the bankers' bank exemption, and that the revised Interpretation clearly states the Board's authority and objectives. As also noted above, the Board does not anticipate exercising its authority under the revised Interpretation to expand the reserves exemption to bankers' banks that do business with the general public. As further noted above, the Board anticipates that determinations made under the revised Interpretation will be publicly available. For these reasons, the Board does not believe that the Interpretation poses the risks or violations suggested by the commenter. V. Regulatory Analysis A. Regulatory Flexibility Act In accordance with Section 604 of the Regulatory Flexibility Act

(RFA)(5 U.S.C. 601 *et seq.* ), the Board has reviewed the proposed amendments to the Interpretation of Regulation D. For the reasons set out below, the Board certifies that the amendments to the Interpretation will not have a significant economic impact on a substantial number of small entities. 1. *Statement of the objectives of the proposal.* The Board is revising its Interpretation of Regulation D in order to authorize the Board to determine, on a case-by-case basis, whether non-depository institutions that are not already listed in the Interpretation may be bankers' bank customers without the bankers' bank losing its exemption from reserve requirements. Section 19 of the Act was enacted to impose reserve requirements on certain deposits and other liabilities of depository institutions for monetary policy purposes. Section 19 exempts certain institutions from reserve requirements as “bankers’ banks” provided the institutions meet the characteristics specified in the statute. Section 19 also authorizes the Board to promulgate such regulations as it may deem necessary to effectuate the purposes of the section. The Board believes the revisions to the Interpretation are within Congress' broad grant of authority to the Board to adopt provisions that carry out the purposes of section 19 of the Act. 2. *Public comments in response to initial regulatory flexibility analysis.* There were no public comments in response to the initial regulatory flexibility analysis. 3. *Description and estimate of number of small entities to which revised Interpretation will apply.* The Board estimates that there are eleven bankers' banks qualifying as “small entities” to which the revised Interpretation could apply. 4. *Projected reporting, recordkeeping, and other compliance requirements.* There are no reporting, recordkeeping, or other compliance requirements associated with the revised Interpretation. 5. *Minimizing significant economic impact of the revised Interpretation on small entities.* There were no public comments that suggested a significant alternative that would minimize the impact of the proposal on small entities. There are eleven bankers' banks qualifying as “small entities” under RFA. The revised Interpretation provides all bankers’ banks with the ability to maintain their exemption from reserve requirements, if any, while undertaking certain additional bankers' bank activities or customers as authorized by their chartering authorities. No bankers' bank is required to seek a determination under the revised Interpretation. The revised Interpretation imposes no economic burdens on bankers' banks, and instead only offers the opportunity to bankers' banks that are exempt from reserve requirements to maintain the economic benefits of that exemption under the specified circumstances. Accordingly, the Board believes that the revised Interpretation will not have a significant impact on a substantial number of small entities. B. Paperwork Reduction Act In accordance with the Paperwork Reduction Act

(PRA)of 1995 (44 U.S.C. 3506; 5 CFR part 1320 Appendix A.10), the Board reviewed the proposal under the authority delegated to the Board by the Office of Management and Budget (OMB). The proposal contains no requirements subject to the PRA. VI. Plain Language The Board received one comment on whether the proposal was in plain language. This commenter stated that the Board's failure to propose standards for its exercise of authority under the proposal amounted to a failure to comply with the “Plain Language” provisions of the Gramm-Leach-Bliley act. This commenter stated that the Board should instead say that it proposes to do whatever it wants given its view of the purposes of the Act. For the reasons stated above, the Board believes that the revised Interpretation is stated in plain language to the greatest extent possible at this point in time. As also stated above, the Board expects to publish further guidance and standards as it obtains additional experience in the future with requests for determinations under the revised Interpretation. Accordingly, the Board believes that the revised Interpretation complies with applicable plain language requirements. List of Subjects in 12 CFR Part 204 Banks, banking, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Board is amending 12 CFR part 204 as follows: PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. 2. The second sentence of paragraph (a)(2)(iii) of § 204.121 is revised to read as follows: § 204.121 Bankers' banks.

(a)* * *

(2)* * *

(iii)* * * First, the range of customers with which the institution does business must be limited to depository institutions, including subsidiaries or organizations owned by depository institutions; directors, officers or employees of the same or other depository institutions; individuals whose accounts are acquired at the request of the institution's supervisory authority due to the actual or impending failure of another depository institution; share insurance funds; depository institution trade associations; and such others as the Board may determine on a case-by-case basis consistent with the purposes of the Act and the bankers' bank exemption. * * * By order of the Board of Governors of the Federal Reserve System, April 3, 2007. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E7-6473 Filed 4-5-07; 8:45 am] BILLING CODE 6210-02-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2006-25105; Directorate Identifier 2006-CE-33-AD; Amendment 39-15016; AD 2007-06-01 R1] RIN 2120-AA64 Airworthiness Directives; Raytheon Aircraft Company Beech Models 45 (YT-34), A45 (T-34A, B-45), and D45 (T-34B) Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; correction. SUMMARY: We are clarifying information contained in Airworthiness Directive

(AD)2007-06-01, which supersedes AD 62-24-01 and applies to all Raytheon Aircraft Company

(RAC)Beech Models 45 (YT-34), A45 (T-34A, B45), and D45 (T-34B) airplanes. AD 2007-06-01 currently requires you to repetitively inspect, using the eddy current method, the front and rear horizontal stabilizer spars for cracks and replace any cracked stabilizer. We inadvertently left out the language in this AD that required replacement of any horizontal stabilizer spar found cracked prior to further flight although the procedures in the appendix made reference to corrective action. The replacement information was contained in the notice of proposed rulemaking (NPRM). This document adds this information already proposed back into the AD. We are issuing this AD to prevent failure of the front and/or rear horizontal stabilizer spars caused by fatigue cracks. This failure could result in stabilizer separation and loss of control of the airplane. DATES: This AD becomes effective on April 16, 2007. ADDRESSES: To view the AD docket, go to the Docket Management Facility, U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC 20590-001 or on the Internet at *http://dms.dot.gov.* The docket number is FAA-2006-25105; Directorate Identifier 2006-CE-33-AD. FOR FURTHER INFORMATION CONTACT: T.N. Baktha, Aerospace Engineer, FAA, Wichita Aircraft Certification Office, 1801 Airport Road, Mid-Continent Airport, Wichita, Kansas 67209; telephone:

(316)946-4155; fax:

(316)946-4107. SUPPLEMENTARY INFORMATION: Discussion On March 5, 2007, we issued AD 2007-06-01, Amendment 39-14982 (72 FR 10909, March 12, 2007), to supersede AD 62-24-01. AD 2007-06-01 retained inspections of the front and rear horizontal stabilizer spars for cracks, but changed the inspection method from the dye penetrant method to the surface eddy current method. We inadvertently left out the language in AD 2007-06-01 that required replacement of any horizontal stabilizer spar found cracked prior to further flight although the procedures in the appendix made reference to corrective action. The replacement information was contained in the NPRM. Consequently, the FAA sees a need to clarify AD 2007-06-01 to assure that any cracked horizontal stabilizer spar is replaced prior to further flight. Correction of Publication This document clarifies AD 2007-06-01 by incorporating the replacement language that was proposed in the NPRM and adds the amendment to section 39.13 of the Federal Aviation Regulations (14 CFR 39.13). Since this action only clarifies the intent of what was originally proposed in the NPRM, it has no adverse economic impact and imposes no additional burden on any person than was already proposed. Therefore, the FAA has determined that prior notice and opportunity for public comment are unnecessary. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the Federal Aviation Administration amends part 39 of the Federal Aviation Regulations (14 CFR part 39) as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The FAA amends § 39.13 by removing Airworthiness Directive

(AD)2007-06-01, Amendment 39-14982 (72 FR 10909, March 12, 2007), and adding the following new AD: **2007-06-01 R1 Raytheon Aircraft Company:** Amendment 39-15016; Docket No. FAA-2006-25105; Directorate Identifier 2006-CE-33-AD. Effective Date

(a)This AD becomes effective on April 16, 2007. Affected ADs

(b)This AD revises AD 2007-06-01, Amendment 39-14982, which superseded AD 62-24-01, Amendment 39-508. Applicability

(c)This AD affects the following airplane models and serial numbers that are certificated in any category: Model Serial Nos. Beech 45 (YT-34) All. Beech A45 (T34A, B-45) All. Beech D45 (T-34B) All. Unsafe Condition

(d)This AD is intended to prevent failure of the front and/or rear horizontal stabilizer spars caused by fatigue cracks by changing the inspection method from dye penetrant to surface eddy current. This failure could result in stabilizer separation and loss of control of the airplane. Compliance

(e)Using the surface eddy current inspection procedures outlined in the appendix of this AD, inspect the front and rear horizontal stabilizer spars between the butt rib and the inboard end for cracks, unless already done, as presented below. If any crack is found in either spar or the reinforcing doubler during any inspection required by this AD, prior to further flight, replace the stabilizer and continue to repetitively inspect at intervals not to exceed 500 hours time-in-service (TIS).

(1)*If the last inspection of the front and rear horizontal stabilizer spars was done using the surface eddy current method (or FAA-approved equivalent method) to show compliance with AD 62-24-01 and/or to show compliance with the alternative method of compliance

(AMOC)to AD 2004-25-51:* Repetitively inspect thereafter at intervals not to exceed 500 hours TIS.

(2)*If the last inspection of the front and rear horizontal stabilizer spars required by AD 62-24-01 was done using the dye penetrant method:* Inspect initially as presented in the table below and repetitively thereafter at intervals not to exceed 500 hours TIS: *If* *Then*

(i)Less than 200 hours TIS have passed since the last inspection required by AD 62-24-01: Inspect at whichever of the following occurs later:

(A)Upon accumulating 200 hours TIS since the last inspection required by AD 62-24-01; or

(B)Within the next 6 months after April 16, 2007 (the effective date of this AD).

(ii)200 hours TIS or more have passed since the last inspection required by AD 62-24-01: Inspect at whichever of the following occurs first, unless paragraph (e)(2)(iii) of this AD applies, as specified below:

(A)At the next repetitive inspection required by AD 62-24-01; or

(B)Within the next 6 months after April 16, 2007 (the effective date of this AD).

(iii)Paragraph (e)(2)(ii) results in the initial surface eddy current inspection becoming mandatory within 30 days after the effective date of this AD: Inspect within the next 30 days after April 16, 2007 (the effective date of this AD). Alternative Methods of Compliance (AMOCs)

(f)The Manager, Wichita Aircraft Certification Office, FAA, ATTN: T.N. Baktha, Aerospace Engineer, 1801 Airport Road, Mid-Continent Airport, Wichita, Kansas 67209; telephone:

(316)946-4155; fax:

(316)946-4107, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19.

(g)AMOCs approved for AD 62-24-01 are approved for this AD. Appendix to AD 2007-06-01 R1—Surface Eddy Current Inspection Procedure *Note: This surface eddy current inspection procedure is based on T-34 Spar Corporation TSC 3506, Rev C, dated May 10, 2005. The T-34 Spar Corporation is allowing the use of this procedure to be included in this Airworthiness Directive. Alternative methods of compliance procedures will be allowed, if approved by the Wichita Aircraft Certification Office and requested using the procedures found in 14 CFR 39.19.* Purpose This procedure is to be used to detect cracks in the inner and outer spars of the front and rear spar assemblies of Raytheon Aircraft Company Beech Models 45 (YT-34), A45 (T-34A, B-45), and D45 (T-34B) airplane stabilizers outside of the steel bushings in the attach holes. Area To Be Inspected To access the area of inspection, remove the stabilizer from the airplane. The areas to be inspected include the forward and aft surfaces of the inner and outer front and rear spars of the horizontal stabilizers in the areas surrounding each of the attach holes. Preparing the Area for Inspection Thoroughly clean area to be inspected with solvent (acetone or equivalent) as required until no signs of dirt, grime, or oil remain on the front and rear spars from the closeout former inboard on the forward and aft surfaces of the spars. Surfaces to be inspected should be smooth and corrosion-free. Any loss of thickness due to corrosion below material thickness tolerance is cause for rejection of the structure. An ultrasonic tester may be used to determine if material thickness has been compromised. Equipment Requirements Nortec Stavely 2000D Eddy Current Tester or equivalent. *Probe:* 50-500 KHz, shielded, absolute, 0.071″ diameter (0.090 max. diameter), right angle, pencil style, surface probe, 5″ long, drop or equivalent. Use 0.025′ notch (beyond head) for calibration. Personal Requirements Technicians with Eddy Current, Level II or Level III per one of the following specifications: ATA specification 105, SNT-TC-1A, or NAS-410 (MIL-std 410E). Methods Typical Set-up Parameters: Frequency −350 KHz, Gain Vertical −75 dB, Horizontal −69 dB, Drive-Mid, Filters-Lo Pass-30, Hi Pass-0, Lift off-Horizontal to the left, adjust as required. The most reliable indication (minimum of 1/2 to 2 graticules) of the smallest observable flaw in the coupon (see the attached Figures) occurs from the notch extending 0.025″ past the edge of the nominal fastener head (total notch length of 0.100″ from the edge of the nominal hole). Install appropriate aluminum guide pin into bushing such that the edge of the guide pin is flush with the edge of the bushing. Using the pin (see the attached Figures) as a guide, circle the area surrounding the steel bushing with the probe and adjacent area (approximately 1/4 ″) to inspect for cracks. Inspect forward and aft surfaces surrounding bushings of each spar. Note: T-34 Spar Corporation, 2800 Airport Road, Hanger A, Ada, Oklahoma 74820 is a source for these coupons and pin. Accept/Reject Criteria Any repeatable flaw indication is cause for rejection in accordance with the procedure. In the event that any crack is detected, describe the flaw in detail providing sketch as needed and send the information to the Wichita ACO. Documentation Requirements Record inspection findings in the aircraft logbook. ER06ap07.018 ER06AP07.019 ER06aP07.020 ER06AP07.021 ER06AP07.022 Issued in Kansas City, Missouri, on March 30, 2007. James E. Jackson, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. 07-1715 Filed 4-5-07; 8:45 am]

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