Proposed Rules. Proposed rule with request for comments
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/register/2008/01/18/08-189A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 1505-01-D 73 13 Friday, January 18, 2008 Proposed Rules OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 293 RIN 3260-AL24 Personnel Records AGENCY: Office of Personnel Management. ACTION: Proposed rule with request for comments. SUMMARY: The Office of Personnel Management is issuing proposed regulations to achieve a consistent and effective policy for the use of Social Security Numbers by Federal agencies to combat fraud and identity theft. Federal agencies must reduce the threat of identity theft by eliminating the unnecessary use and collection of Social Security Numbers.
This proposed regulation imposes significant restrictions on the use of Social Security Numbers throughout the Federal Government and is consistent with the recommendations made by the President's Identity Theft Task Force. DATES: Comments must be received on or before March 18, 2008. ADDRESSES: Send or deliver written comments to the Deputy Associate Director for Workforce Information and System Requirements, Strategic Human Resources Policy Division, Office of Personnel Management, Room 7439, 1900 E Street, NW., Washington, DC 20415-8200; by fax at
(202)606-4891. FOR FURTHER INFORMATION CONTACT: Leroy McKnight, by telephone at
(202)606-4054; by fax at
(202)606-1719; or by e-mail at *Leroy.Mcknight@opm.gov.* SUPPLEMENTARY INFORMATION: In an effort to better protect sensitive personal information, particularly Social Security Numbers (SSNs), Federal agencies must take immediate action to restrict the unnecessary use of this important personal identifier. Continued exposure of individuals' SSNs increases their vulnerability to identity theft and other harmful situations. While some Federal agencies have taken steps to reduce the use of SSNs in certain functions, inconsistencies in approaches and standards for protecting the SSN creates a risk that can lead to misuse. The Office of Personnel Management
(OPM)has been working with the President's Identity Theft Task Force and the agencies on a number of identity theft protection initiatives, and was tasked with issuing formal guidance to the agencies on the appropriate ways to restrict the use, and conceal the SSNs in employee records and human resources information systems. OPM issued formal guidance to the Federal Chief Human Capital Officers on June 18, 2007, to help agencies achieve a consistent and effective policy for safeguarding the Social Security Numbers of Federal employees. A copy of the guidance package can be obtained by going to *http://www.chcoc.gov.* These proposed regulations are intended to update OPM's regulations governing personnel records so they are consistent with that guidance. These proposed regulations impose significant restrictions on the use of SSNs, leading to enhanced protection of sensitive personal information. Applying the guidance and regulations is a first step in protecting the personal identity of Federal employees. Efforts are underway to develop requirements for a new Government-wide employee identifier which will replace the Social Security Number as the primary employee identifier. Once this new employee identifier is established, Federal agencies will have a viable alternative to the use of SSNs in their business activities. The use of this new employee identifier as a substitute for the SSN would diminish the risk of identity theft by eliminating the unnecessary use of the SSN as an employee identifier in many situations. OPM is proposing the following specific changes, which we believe will assist Federal agencies in their efforts to combat fraud and identity theft: In § 293.102 we are proposing to add definitions of *Exposure* , and *Primary Key* , which are new terms used in the proposed regulations. In § 293.105, which addresses restrictions on collection and use of information, we propose to add paragraphs (b)(3) through (13). These new paragraphs provide agencies with specific information on the appropriate and inappropriate use of employee Social Security Numbers in employee records and human resources information systems. OPM also proposes to add paragraphs (a)(8) through
(10)to § 293.107, which requires special safeguards for automated records. The additional paragraphs will ensure that agencies know what they must do to improve their data security measures. These safeguards pertain specifically to improving the protection of employee Social Security Numbers. E.O. 12866, Regulatory Review This rule has been reviewed by the Office of Management and Budget in accordance with E.O. 12866. Regulatory Flexibility Act I certify that these regulations would not have a significant economic impact on a substantial number of small entities because they would apply only to Federal agencies and employees. List of Subjects in 5 CFR Part 293 Government employees, Privacy, Records. Office of Personnel Management. Linda M. Springer, Director. Accordingly, OPM proposes to amend 5 CFR part 293 as follows: PART 293—PERSONNEL RECORDS 1. The authority citation for part 293 is revised to read as follows: Authority: 5 U.S.C. 552, 552a, 1103, 1104, 1302, 2951(2), 3301, and 4315; E.O. 12107 (December 28, 1978), 3 CFR 1954-1958 Comp.; 5 CFR 7.2; E.O. 9830; 3 CFR 1943-1948 Comp. Subpart A—Basic Policies on Maintenance of Personnel Records 2. In § 293.102 the definitions of *Exposure* and *Primary Key* are added in alphabetical order as follows: § 293.102 Definitions. *Exposure* means the unprotected display, storage, and transmission of personally identifiable information (PII), e.g., Social Security Numbers; *Primary Key* means a particular item chosen to uniquely identify a specific individual or to associate information with a specific individual in an automated environment; 3. In § 293.105, paragraphs (b)(3) through
(13)are added to read as follows: § 293.105 Restrictions on collection and use of information.
(b)* * *
(3)If Social Security Numbers are collected, they will be collected only at the time of the employee's appointment to be entered into the human resources and payroll systems. The collection tool (if paper-based) will be stored in a protected location to guard against exposure until it is no longer required. The Guide to Personnel Recordkeeping will be used to determine retention requirements for certain paper-based collection tools. Disposal of all paper-based collection tools (i.e., forms, letters, and other correspondence) will be in accordance with the General Record Schedule issued by the National Archives and Records Administration.
(4)Agencies may not use the Social Security Number as an employee's primary key, i.e., unique identifier, in internal or external data processing activities.
(5)Agencies must ensure that Social Security Numbers are not printed, e.g., on forms, or reports, or displayed on computer display screens.
(6)Access to Social Security Numbers must be restricted to those individuals whose official duties require such access. A listing of all individuals with access authorization based on legitimate business needs must be maintained and reviewed for continued applicability.
(7)Agencies must ensure, through appropriate annual training and educational programs, including training on Privacy Act and Freedom of Information Act requirements, that those individuals who are authorized to access Social Security Numbers understand their responsibility to protect sensitive and personal information. This responsibility includes securing this information when working from home or another remote location.
(8)Agencies must use privacy and confidentiality statements that describe accountability clearly and warn of possible disciplinary action for unauthorized release of the Social Security Number and other personally identifiable information. These statements must be signed by all individuals who have access to Social Security Numbers.
(9)Agencies must ensure their telework policies and written agreements are in compliance with Federal privacy protection policies, including policies governing protection of personally identifiable information, e.g., Social Security Numbers.
(10)Agencies must require supervisory approval before authorized individuals may access, transport, or transmit information containing a Social Security Number outside of the agencies' facilities. Electronic records containing Social Security Numbers must be transported or transmitted in an encrypted or protected format as prescribed in all established guidance regarding the protection of sensitive agency information. Paper-based records containing Social Security Numbers must be transported in wheeled containers, portfolios, briefcases, or similar devices that can be locked when not in use. In addition, these containers must be identifiable by tag or decal with contact and mailing address information.
(11)Agencies must ensure access to Social Security Numbers, including access involving data entry, printing, and screen displays, occurs in a protected location to guard against exposure.
(12)Agencies must ensure all security incidents involving personally identifiable information, especially Social Security Numbers, are reported in accordance with all established guidance regarding the reporting of incidents involving personally identifiable information. In addition, agencies must inform all employees of all established incident reporting requirements annually.
(13)Agencies must ensure all authorized disclosures of information containing Social Security Numbers and other personally identifiable data are made in accordance with established regulations and procedures. 4. In § 293.107, paragraphs (a)(8) through
(10)are added to read as follows: § 293.107 Special safeguards for automated records.
(a)* * *
(8)Minimize the risk of unauthorized disclosure of Social Security Numbers during data entry activities by concealing the Social Security Number on the screens.
(9)Assure adequate internal control procedures to properly monitor authorized and unauthorized access to Social Security Numbers and other personally identifiable data.
(10)Assure all Social Security Number safeguards and protection rules are enforced in both test and production environments. [FR Doc. E8-858 Filed 1-17-08; 8:45 am] BILLING CODE 6325-39-P DEPARTMENT OF AGRICULTURE Federal Crop Insurance Corporation 7 CFR Part 457 RIN 0563-AC14 Common Crop Insurance Regulations; Dry Pea Crop Provisions AGENCY: Federal Crop Insurance Corporation, USDA. ACTION: Proposed rule. SUMMARY: The Federal Crop Insurance Corporation
(FCIC)proposes to amend the Common Crop Insurance Regulations; Dry Pea Crop Insurance Provisions to include the insurability of additional types of dry peas, to offer winter coverage, to allow replanting payments, and to make chickpeas insurable under the Dry Pea Crop Provisions rather than the Dry Bean Crop Provisions. The intended effect of this action is to provide policy changes, to clarify existing policy provisions to better meet the needs of the producers, and to reduce vulnerability to program fraud, waste, and abuse. The changes will apply for the 2009 and succeeding crop years. DATES: Written comments and opinions on this proposed rule will be accepted until close of business March 18, 2008 and will be considered when the rule is to be made final. ADDRESSES: Interested persons are invited to submit written comments, titled “Dry Pea Crop Provisions”, by any of the following methods: • *By Mail to:* Director, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, PO Box 419205, Kansas City, MO 64141-6205. • *By Express Mail to:* Director, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, 9240 Troost Avenue, Kansas City, MO 64131-3055. • *E-mail: DirectorPDD@rma.usda.gov.* • *Federal eRulemaking Portal: http://www.regulations.gov.* Follow the instructions for submitting comments. A copy of each response will be available for public inspection and copying from 7 a.m. to 4:30 p.m., CST, Monday through Friday, except holidays, at the above address. FOR FURTHER INFORMATION CONTACT: Claire Elsea, Economist, Product Management, Product Administration and Standards Division, Risk Management Agency, at the Kansas City, MO, address listed above, telephone
(816)926-7730. SUPPLEMENTARY INFORMATION: Executive Order 12866 The Office of Management and Budget
(OMB)has determined that this rule is non-significant for the purpose of Executive Order 12866 and, therefore, it has not been reviewed by OMB. Paperwork Reduction Act of 1995 Pursuant to the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the collections of information in this rule have been approved by OMB under control number 0563-0053 through June 30, 2008. E-Government Act Compliance FCIC is committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. Unfunded Mandates Reform Act of 1995 Title II of the Unfunded Mandates Reform Act of 1995
(UMRA)establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. This rule contains no Federal mandates (under the regulatory provisions of title II of the UMRA) for State, local, and tribal governments or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA. Executive Order 13132 It has been determined under section 1(a) of Executive Order 13132, Federalism, that this rule does not have sufficient implications to warrant consultation with the States. The provisions contained in this rule will not have a substantial direct effect on States, or on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Regulatory Flexibility Act FCIC certifies that this regulation will not have a significant economic impact on a substantial number of small entities. Program requirements for the Federal crop insurance program are the same for all producers regardless of the size of their farming operation. For instance, all producers are required to submit an application and acreage report to establish their insurance guarantees and compute premium amounts, and all producers are required to submit a notice of loss and production information to determine the amount of an indemnity payment in the event of an insured cause of crop loss. Whether a producer has 10 acres or 1000 acres, there is no difference in the kind of information collected. To ensure crop insurance is available to small entities, the Federal Crop Insurance Act authorizes FCIC to waive collection of administrative fees from limited resource farmers. FCIC believes this waiver helps to ensure that small entities are given the same opportunities as large entities to manage their risks through the use of crop insurance. A Regulatory Flexibility Analysis has not been prepared since this regulation does not have an impact on small entities, and therefore, this regulation is exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C. 605). Federal Assistance Program This program is listed in the Catalog of Federal Domestic Assistance under No. 10.450. Executive Order 12372 This program is not subject to the provisions of Executive Order 12372, which require intergovernmental consultation with State and local officials. See the Notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115, June 24, 1983. Executive Order 12988 This proposed rule has been reviewed in accordance with Executive Order 12988 on civil justice reform. The provisions of this rule will not have a retroactive effect. The provisions of this rule will preempt State and local laws to the extent such State and local laws are inconsistent herewith. With respect to any direct action taken by FCIC or to require the insurance provider to take specific action under the terms of the crop insurance policy, the administrative appeal provisions published at 7 CFR part 11 must be exhausted before any action against FCIC for judicial review may be brought. Environmental Evaluation This action is not expected to have a significant economic impact on the quality of the human environment, health, or safety. Therefore, neither an Environmental Assessment nor an Environmental Impact Statement is needed. Background FCIC proposes to revise 7 CFR part 457, Common Crop Insurance Regulations, by amending § 457.140 Dry Pea Crop Insurance Provisions, to be effective for the 2009 and succeeding crop years. Several requests have been made for changes to improve the coverage offered, address program integrity issues, simplify program administration, and improve clarity of the policy provisions. The proposed changes are as follows: 1. Section 1—FCIC proposes to revise the definition of “base price” to delete the word “processor” and add “seed company” since the contract is with a seed company, not a processor. FCIC also proposes to revise the definition of “contract seed peas.” Proposed language makes coverage available to fall and spring planted acreage. FCIC now proposes to insure fall planted acreage. Therefore, it must be included in the definition of “contract seed peas.” FCIC also proposes to remove the requirement that acreage must be enrolled in the seed certification program administered by the state in which the peas are produced because some states no longer administer seed certification programs. Therefore, enforcing this requirement could limit the availability of crop insurance for contract seed pea producers. FCIC proposes to revise the definition of “dry peas” to allow insurability of additional types of dry peas. Currently, only spring planted smooth green and yellow types of commercial dry peas, peas grown for seed, fall planted types of Austrian Winter peas if provided for in the Special Provisions, all spring planted types of lentils, and all types of contract seed peas are insurable. FCIC proposes to amend these provisions to remove the specific types that are insurable and to specify that the insurable types will be contained in the Special Provisions. FCIC also proposes to insure chickpeas (a.k.a. garbanzo beans) under the Dry Pea Crop Provisions. Chickpeas are currently insurable under the Dry Bean Crop Provisions only. However, the agronomical and physiological traits of chickpeas are more similar to dry peas and lentils than dry beans. This change will also simplify the crop insurance program by allowing producers of dry peas, lentils and chickpeas to purchase coverage for these crops under one policy. FCIC proposes to clarify the definition of “harvest” by adding the following sentence “Dry peas that are swathed prior to combining are not considered harvested.” Swathing is a step in the harvest process but the seed is not removed from the plant until the crop is combined. FCIC proposes to revise the definition of “local market price” to specify that factors not associated with grading under United States Standards for Whole Dry Peas, Split Peas and the Lentils will not be considered unless otherwise specified on the Special Provisions. The intent of this change is to standardize the grading standards to be used in quality adjustment, recognizing that there may be circumstances where it may be necessary to deviate from such standards. If such circumstances arise, the proposed change provides the flexibility to make changes through the Special Provisions, if necessary. FCIC proposes to revise the definition of “nurse crop (companion crop)” for clarity and to be consistent with the definition of “nurse crop (companion crop)” in the Small Grains Crop Provisions. FCIC proposes to revise the definition of “practical to replant” to reference the addition of fall planted dry peas. As stated above, insurance coverage will now be provided for fall planted dry peas. Therefore, the conditions under which it will not be considered practical to replant fall planted dry peas must be specified because the conditions are not the same as for spring planted dry peas. FCIC proposes to revise the definition of “price election” to provide clarification that the price election is used to determine premium and any indemnity for contract seed peas under this policy. FCIC proposes to revise the definition of “seed company contract” to remove the word “varieties” and add the word “types” in both places. This change is necessary because FCIC has proposed to insure categories of dry peas that will be contained in the Special Provisions to allow the flexibility to add new types as appropriate. FCIC proposes to add a definition of “swathed” to describe the process that is used by producers prior to combining the crop because a crop that has only been swathed is not considered harvested. FCIC proposes to add a definition of “type” because FCIC has proposed to refer to the categories that may be insured as “types,” and specify that the insured types will be contained in the Special Provisions, which will allow additional types to be quickly added as appropriate. FCIC proposed to add a definition of “windrow” because the term is used in the definition of “swathed.” 2. Section 2—FCIC proposes to revise the language in section 2 to specify optional units may be established for each type specified in the Special Provisions because different types may have significantly different characteristics and risks, making it more appropriate to have separate guarantees, premium, and loss adjustment for each type. 3. Section 3—FCIC proposes to revise section 3 to allow the insured to select a separate coverage level and price percentage for each insurable type listed on the Special Provisions. Previously, only coverage levels could be selected by type but because the types may have significantly different characteristics with different risks, allowing separate price elections is appropriate. 4. Section 7—FCIC proposes to revise section 7 to add provisions that state dry peas planted to plow down, graze, harvest as hay or to otherwise not harvest as a mature dry pea crop are not insurable. The Dry Pea Crop Provisions allow coverage for dry peas that have reached maturity. These practices do not commonly take place when the dry peas have reached maturity. Also, FCIC has not established premium rates for dry peas that are plowed down, grazed or harvested as hay. Therefore, dry peas that are planted to plow down, graze, harvest as hay or to otherwise not harvest as a mature crop are not insurable under the Dry Pea Crop Provisions. FCIC also proposes to revise section 7 to allow insurability of fall planted acreage of dry peas, and to allow for coverage for fall seeded acreage of dry peas between the time coverage begins and the spring final planting date under the Winter Coverage Option. More producers are planting in the fall and FCIC has sufficient data to assess the risks and provide appropriate coverage. Without the availability of such coverage, producers who plant in the fall are at risk until the spring coverage takes affect. 5. Section 9—FCIC proposes to add provisions to specify the criteria for insurance coverage when the Special Provisions designate only a spring final planting date or both a fall and spring final planting date. This change is necessary because fall planted acreage is now insurable under the Dry Pea Crop Provisions. 6. Section 11—FCIC proposes to add a new section 11 authorizing replanting payments for dry peas. Adding replanting payments for dry peas makes the Dry Pea Crop Provisions consistent with the coverage available for other similar crops. 7. Redesignated section 13—FCIC proposes to revise the introductory text in 13(a) to be consistent with the provisions in the Small Grain Crop Provisions. FCIC also proposes to revise redesignated sections 13(c)(1) to add the word “mature.” Adding the word “mature” is necessary because only mature production is eligible for quality adjustments. FCIC also proposes to specify measurable standards in the seed company contract when discussing dry peas that meet or fail to meet the standards in the seed company contract. FCIC has had problems in the past with contract standards that contained standards that were not objective or measurable, which made it very difficult to determine whether the insured crop met such standards. This language will make it clear that FCIC is only providing quality adjustments for dry peas that do not meet the objective measurable standards in the seed company contract. FCIC proposes to revise redesignated section (d)(1)(iii) to remove the phrase “excluding Austrian Winter Peas” and add the phrase “in accordance with the following unless otherwise specified in the Special Provisions.” Adding the phrase “in accordance with the following unless otherwise specified in the Special Provisions” is necessary because there may be situations where other quality adjustment procedures are more appropriate and this language provides the flexibility to quickly make such changes. FCIC proposes to revise the introductory text of redesignated section 13(e) by removing the specifically listed types of dry peas. The insured types will now be specified in the Special Provisions to allow the flexibility to add new types, as applicable, more quickly. FCIC also proposes to revise the introductory text of redesignated section 13(e) by clarifying that seed peas that do not meet the objective, measurable terms of the contract (e.g., size, germination percentage) are eligible for quality adjustment. As stated above, there had been problems in the past with subjective standards in these contracts, which made quality adjustment difficult. This change will clarify that only those objective, measurable standards in the contract will be used to determine whether the dry peas meet the standards in the contract. FCIC proposes to revise the introductory text of redesignated section 13(e)(1) by allowing deficiencies in quality to be specified in the Special Provisions. This revision is consistent with the proposed change in section 13(d)(1)(iii). 8. Section 15—FCIC proposes to add a new section 15 Winter Coverage Option. This option allows optional coverage during the over-wintering period for fall planted acreage. Currently, there is a period during which the crop may be in the field and coverage is not available. The Winter Coverage Option will permit coverage during this risk period. FCIC proposes the Winter Coverage Option be available in counties for which the actuarial table provides a premium rate. The option provides coverage on fall planted dry peas from the time the insurance attaches until the spring final planting date, unless otherwise provided by a written agreement. This coverage will allow insureds who have winter damage on their fall planted dry peas to continue to care for the crop, replant the crop, or destroy the crop in accordance with the provisions. FCIC proposes the Winter Coverage Option also provides replant payments. 9. FCIC also proposes to remove those provisions that are now duplicative of provisions contained in the Common Crop Insurance Policy Basic Provisions and revise certain provisions for clarity. No substantive changes are made to such provisions. List of Subjects in 7 CFR Part 457 Crop insurance, Dry peas, Reporting and recordkeeping requirements, Proposed Rule. Accordingly, as set forth in the preamble, the Federal Crop Insurance Corporation proposes to amend 7 CFR part 457 effective for the 2009 and succeeding crop years as follows: PART 457—COMMON CROP INSURANCE REGULATIONS 1. The authority citation for 7 CFR part 457 continues to read as follows: Authority: 7 U.S.C. 1506(1), 1506(p). 2. Amend § 457.140 as follows: a. Revise the introductory text: b. Remove the paragraph immediately preceding section 1; c. Amend section 1 by revising the definitions of “base price,” “contract seed peas,” “dry peas,” “harvest,” “local market price,” “nurse crop (companion crop),” “practical to replant,” “price election,” “seed company contract,” and add definitions of “swathed,” “type,” and “windrow;” d. Revise section 2; e. Revise section 3; f. Revise section 7; g. Revise section 9; h. Redesignate sections 11 through 13 as 12 through 14, respectively, and add a new section 11; i. Revise redesignated section 12; j. Amend redesignated section 13 by removing the phrase “section 12” and adding the phrase “section 13” in its place everywhere it appears; k. Revise redesignated section 13(a) introductory text, (a)(1), and (a)(2); l. Revise the introductory text in redesignated section 13(c)(1); m. Revise redesignated section 13(d)(1)(iii); n. Revise the introductory text of redesignated sections 13(e) and 13(e)(1); and o. Add a new section 15. The revised and added text reads as follows: § 457.140 Dry Pea Crop Insurance Provisions. The Dry Pea Crop Insurance Provisions for the 2009 and succeeding crop years are as follows: 1. Definitions *Base contract price.* The price per pound stipulated in the seed company contract without regard to discounts or incentives that may apply, and that will be paid to the producer for at least 50 percent of the total production under contract with the seed company. *Contract seed peas.* Dry peas grown under the terms of a seed company contract for the purpose of producing seed to be used for producing dry pea crops in a future crop year. *Dry peas.* Peas ( *Pisum sativum L.* ), Austrian peas ( *Pisum sativum* spp *arvense* ), lentils ( *Lens culinaris Medik.* ) and chickpeas ( *Cicer arietinum L.* ) and those types listed on the Special Provisions. *Harvest.* Combining of dry peas. Dry peas that are swathed prior to combining are not considered harvested. *Local market price.* The cash price per pound for the U.S. No. 1 grade of dry peas as determined by us. Such price will be the prevailing dollar amount buyers are willing to pay for dry peas containing the maximum limits of quality deficiencies allowable for the U.S. No. 1 grade. Factors not associated with grading under the United States Standards for Whole Dry Peas, Split Peas and Lentils will not be considered, unless otherwise specified in the Special Provisions. *Nurse crop (companion crop).* A crop planted into the same acreage as another crop to improve the growing conditions for the crop with which it is grown, and that is intended to be harvested separately. *Practical to replant.* In addition to the definition contained in the Basic Provisions, it will not be considered practical to replant dry peas, except for seed peas and fall planted dry peas, more than 25 days after the final planting date unless replanting is generally occurring in the area. For seed peas, it will not be considered practical to replant unless the seed company will accept the production under the terms of the seed company contract. For fall planted dry peas, it will not be considered practical to replant more than 25 days after the final planting date for the corresponding spring planted type of dry pea. *Price election.* In addition to the provisions of the definition contained in the Basic Provisions, the price election for contract seed peas will be the percentage you elect (not to exceed 100 percent) of the base price and used for the purposes of determining premium and indemnity for contract seed peas under this policy. *Seed company contract.* A written agreement between the producer and the seed company, executed by the acreage reporting date, containing at a minimum:
(a)The producer's promise to plant and grow one or more specific types of contract seed peas, and deliver the production from those types to the seed company;
(b)The seed company's promise to purchase all the production stated in the contract; and
(c)A fixed price, or a method to determine such price based on published information compiled by a third party, that will be paid to the producer for at least 50 percent of the production stated in the contract. *Swathed.* Severance of the stem and pods from the ground without removal of the seeds from the pods and placing such into a windrow. *Type.* A category of dry peas identified as a type in the Special Provisions. *Windrow.* Dry peas where the plants are cut and placed in a row. 2. Unit Division In addition to, or instead of, establishing optional units by section, section equivalent, or FSA farm serial number and by irrigated and non-irrigated acreage as provided in the unit division provisions contained in the Basic Provisions, separate optional units may be established for each dry pea type as specified on the Special Provisions. 3. Insurance Guarantees, Coverage Levels, and Prices for Determining Indemnities
(a)In lieu of the requirements of section 3 of the Basic Provisions, you may select only one coverage level for each type listed on the Special Provisions.
(b)In addition to the requirements of section 3 of the Basic Provisions, you may select only one price election for all dry peas in the county insured under this policy unless the Special Provisions provide different price elections for a particular type, in which case you may select one price election for each dry pea type so designated in the Special Provisions.
(1)If the Special Provisions designate different price elections by type, the price elections you choose for each type are not required to have the same percentage relationship to the maximum price offered by us for each type. For example, if you choose 100 percent of the maximum price for one type, you may also choose 75 percent of the maximum price for another type;
(2)If you elect the Catastrophic Risk Protection level of insurance for any of the above, the same level of coverage will be applicable to all insured dry pea acreage in the county;
(3)If the Special Provisions do not designate different price elections by type, the price election you choose for each type is required to have the same percentage relationship to the maximum price offered by us for each price. For example, if you choose 100 percent of the maximum price election for one type, the 100 percent election will apply to all other types you produce. 7. Insured Crop
(a)In accordance with section 8 of the Basic Provisions, the crop insured will be all the dry pea types in the county for which a premium rate is provided by the actuarial documents:
(1)In which you have a share;
(2)That are planted for harvesting once maturity is reached as:
(i)Dry peas; or
(ii)Contract seed peas, if a seed company contract is executed on or before the acreage reporting date; and
(3)That are not (unless allowed by the Special Provisions or by written agreement):
(i)Interplanted with another crop;
(ii)Planted into an established grass or legume;
(iii)Planted as a nurse crop; or
(iv)Planted to plow down, graze, harvest as hay, or to otherwise not harvest as a mature dry pea crop.
(b)You will be considered to have a share in the insured crop if, under the seed company contract, you retain control of the acreage on which the dry peas are grown, you are at risk of loss (i.e., if there is a reduction in quantity or quality of your dry pea production, you will receive less income under the contract), and the seed company contract is in effect for the entire insurance period.
(c)In counties for which the actuarial documents provide premium rates for the Winter Coverage Option (see section 15), coverage is available for dry peas between the time coverage begins and the spring final planting date. Coverage under the option is effective only if you qualify under the terms of the option and you elect the option by the sales closing date. 9. Insurance Period In accordance with the provisions of section 11 of the Basic Provisions and subject to provisions provided by the Winter Coverage Option (see section 15) if you elect such option, the insurance period is as follows:
(a)Coverage for fall planted dry peas not covered by the Winter Coverage Option will begin on the earlier of April 15 or the date we agree to accept the acreage for insurance, but not before March 1, unless otherwise specified on the Special Provisions.
(b)The calendar date for the end of the insurance period for all insurable types of dry peas in the county is September 30 of the crop year in which the crop is normally harvested, unless otherwise specified in the Special Provisions.
(c)Any acreage of the insured crop damaged before the final planting date, to the extent that producers in the surrounding area would not further care for the crop, must be replanted unless we agree that it is not practical to replant.
(d)Whenever the Special Provisions designate both fall and spring final planting dates:
(1)Any fall planted dry peas that are damaged before the spring final planting date, to the extent that growers in the area would normally not further care for the crop, must be replanted to a fall planted type of dry peas to maintain insurance based on the fall planted type unless we agree that replanting is not practical. If it is not practical to replant to a fall planted type of dry peas but it is practical to replant to a spring planted type, you must replant to a spring planted type to keep your insurance coverage based on the fall planted type in force.
(2)Any fall planted dry pea acreage that is replanted to a spring planted type when it was practical to replant the fall planted type will be insured as the spring planted type and the production guarantee, premium and price election applicable to the spring planted type will be used. In this case, the acreage will be considered to be initially planted to the spring planted type.
(3)Notwithstanding sections 9(d)(1) and (2), if you have elected coverage under the Winter Coverage Option (if available in the county), insurance will be in accordance with the option.
(e)Whenever the Special Provisions designate only a spring final planting date, any acreage of a fall planted dry pea crop is not insured unless you request such coverage on or before the spring sales closing date, and we agree in writing that the acreage has an adequate stand in the spring to produce the yield used to determine your production guarantee.
(1)The fall planted dry pea crop will be insured as a spring planted type for the purpose of the production guarantee, premium and price election.
(2)Insurance will attach to such acreage on the date we determine an adequate stand exists or on the spring final planting date if we do not determine adequacy of the stand prior to the spring final planting date.
(3)Any acreage of such fall planted dry peas that is damaged after it is accepted for insurance but before the spring final planting date, to the extent that growers in the area would normally not further care for the crop, must be replanted to a spring planted type of dry pea unless we agree it is not practical to replant.
(4)If fall planted acreage is not to be insured it must be recorded on the acreage report as uninsured fall planted acreage. 11. Replanting Payments
(a)A replanting payment is allowed as follows:
(1)In lieu of provisions in section 13 of the Basic Provisions that limit the amount of a replant payment to the actual cost of replanting, the amount of any replanting payment will be determined in accordance with these Crop Provisions;
(2)You must comply with all requirements regarding replanting payments contained in section 13 of the Basic Provisions (except as allowed in section 11(a)(1)) and in the Winter Coverage Option for which you are eligible and which you have elected;
(3)The insured crop must be damaged by an insurable cause of loss to the extent that the remaining stand will not produce at least 90 percent of the production guarantee for the acreage.
(4)The acreage must have been initially planted to a spring type of the insured crop in those counties with only a spring final planting date;
(5)Damage must occur after the fall final planting date in those counties where both a fall and spring final planting date is designated (if the Special Provisions provide more than one fall final planting date, the fall final planting date applicable to policies with the Winter Coverage Option (see section 15) will be used for this purpose, regardless of whether or not the option is actually in effect); and
(6)The replanted crop must be seeded at a rate sufficient to achieve a total (undamaged and new seeding) plant population that will produce at least the yield used to determine your production guarantee.
(b)The maximum amount of the replanting payment per acre will be the lesser of 20.0 percent of the production guarantee or 200 pounds, multiplied by your price election, multiplied by your share, unless otherwise stated in the Special Provisions.
(c)When the crop is replanted using a practice that is uninsurable for an original planting, the liability on the unit will be reduced by the amount of the replanting payment. The premium amount will not be reduced.
(d)Replanting payments will be calculated using the price election and production guarantee for the dry pea type that is replanted and insured. For example, if damaged smooth green and yellow pea acreage is replanted to lentils, the price election and production guarantee applicable to lentils will be used to calculate any replanting payment that may be due. A revised acreage report will be required to reflect the replanted type. Notwithstanding the previous two sentences, the following will have a replanting payment based on the guarantee and price election for the crop type initially planted:
(1)Any damaged fall planted crop type replanted to a spring planted type that retains insurance based on the production guarantee and price election for the fall planted type; and
(2)Any acreage replanted at a reduced seeding rate into a partially damaged stand of the insured crop. 12. Duties in the Event of Damage or Loss Representative samples are required in accordance with section 14 of the Basic Provisions. 13. Settlement of Claim
(a)We will determine your loss on a unit basis. In the event you are unable to provide records of production that are acceptable to us for any:
(1)Optional units, we will combine all optional units for which acceptable records of production were not provided; or
(2)Basic units, we will allocate any commingled production to such units in proportion to our liability on the harvested acreage for each unit.
(c)* * *
(1)For mature production meeting the objective, measurable minimum quality requirements (e.g., size, germination percentage) contained in the seed company contract, and for production that does not meet such requirements due to uninsured causes:
(d)* * *
(1)* * *
(iii)Unharvested production (mature unharvested production of dry peas may be adjusted for quality deficiencies in accordance with section 13I or (e), or as specified in the Special Provisions); and
(e)Mature dry pea production that does not qualify as contract seed peas under the policy terms or does not meet the objective, measurable terms of the contract (e.g., size, germination percentage), may be adjusted for quality deficiencies.
(1)Production will be eligible for quality adjustment in accordance with the following, unless otherwise specified in the Special Provisions: 15. Winter Coverage Option (This is a continuous endorsement)
(a)In the event of a conflict between this section and sections 1-14 of these Crop Provisions, this section will control.
(b)Catastrophic Risk Protection Coverage is not available under this option.
(c)In return for payment of the additional premium designated in the actuarial documents, this option is available in counties for which the actuarial documents provide premium rates for the winter coverage option, coverage is available for dry peas between the time coverage begins and the spring final planting date.
(d)You must have a Dry Pea Crop Insurance Policy in effect and elect to insure the dry pea type under such policy.
(e)You must select this coverage on your application for insurance on or before the sales closing date. Failure to do so means you have rejected this coverage for the dry pea crop planted in the fall and this option is void.
(f)Coverage under this option begins on the later of the date we accept your application for coverage or on the fall final planting date designated in the Special Provisions. Coverage ends on the spring final planting date designated in the Special Provisions.
(g)In addition to the provisions of section 34(b) of the Basic Provisions and section 2 of the Dry Pea Crop Provisions, optional units may be established for dry peas if each optional unit contains only dry peas initially planted in the fall or only dry peas initially planted in the spring.
(h)In lieu of sections 4 and 5 of these Crop Provisions, if you elect this option for the dry pea crop initially planted in the fall, the following dates will be applicable to all your fall planted and spring planted dry pea crop in the county:
(1)Contract change date is June 30 preceding the cancellation date;
(2)Cancellation date is September 30; and
(3)Termination date is November 30.
(i)In lieu of the provisions in section 14 of the Basic Provisions, all notices of damage must be provided to us not later than 15 days after the spring final planting date designated in the Special Provisions.
(j)All insurable acreage of each fall planted dry pea type covered under this option must be insured.
(k)The amount of any indemnity paid under the terms of this option will be subject to any reduction specified in the Basic Provisions for multiple crop benefits in the same crop year.
(l)Whenever any acreage of a dry pea crop planted in the fall is damaged during the insurance period and at least 20 acres or 20 percent of the insured planted acreage in the unit, whichever is less, does not have an adequate stand to produce at least 90 percent of the production guarantee for the acreage, you may, at your option, take one of the following actions:
(1)Continue to care for the damaged crop. By doing so, coverage will continue under the terms of the Basic Provisions, the Dry Pea Crop Insurance Provisions and this option;
(2)Replant the acreage to an appropriate type of the insured crop, if it is practical, and receive a replanting payment in accordance with the terms of section 11. By doing so, coverage will continue under the terms of the Basic Provisions, the Dry Pea Crop Insurance Provisions and this option, and the production guarantee for the dry pea type planted in the fall will remain in effect; or
(3)Destroy the remaining crop on such acreage:
(i)By destroying the remaining crop, you agree to accept an appraised amount of production determined in accordance with section 13(d)(1) of the Dry Pea Crop Insurance Provisions to count against the unit production guarantee. This amount will be considered production to count in determining any final indemnity on the unit and will be used to settle your claim as described in section 13.
(ii)You may use such acreage for any purpose, including planting and separately insuring any other crop if such insurance is available.
(iii)If you elect to plant and elect to insure spring planted acreage of the same dry pea type (you must elect whether or not you want insurance on the spring planted acreage of the same dry pea type at the time we release the fall planted acreage), you must pay additional premium for the insurance. Such acreage will be insured in accordance with the policy provisions that are applicable to acreage that is initially planted in the spring to the same dry pea type, and you must:
(A)Plant the spring planted acreage in a manner which results in a clear and discernible break in the planting pattern at the boundary between it and any remaining acreage of the fall planted dry pea acreage; and
(B)Store or market the production in a manner which permits us to verify the amount of spring planted production separately from any fall planted production. In the event you are unable to provide records of production that are acceptable to us, the spring planted acreage will be considered to be a part of the original fall planted unit. Signed in Washington, DC, on January 7, 2008. Eldon Gould, Manager, Federal Crop Insurance Corporation. [FR Doc. E8-321 Filed 1-17-08; 8:45 am] BILLING CODE 3410-08-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0034; Directorate Identifier 2007-CE-097-AD] RIN 2120-AA64 Airworthiness Directives; Pacific Aerospace Limited Model 750XL Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). SUMMARY: We propose to adopt a new airworthiness directive
(AD)for the products listed above. This proposed AD results from mandatory continuing airworthiness information
(MCAI)originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: DCA/750XL/3A is prompted by a report from the manufacturer of the possibility that wiring loom protective sleeving is not fitted to aircraft S/N 107 through to 134. AD applicability revised to include aircraft up to S/N 134. To prevent fretting damage to the wiring loom that may lead to arcing in proximity to the fuel vent lines and the possibility of fire * * * The proposed AD would require actions that are intended to address the unsafe condition described in the MCAI. DATES: We must receive comments on this proposed AD by February 19, 2008. ADDRESSES: You may send comments by any of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov* . Follow the instructions for submitting comments. • *Fax:*
(202)493-2251. • *Mail:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. • *Hand Delivery:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov* ; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone
(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Karl Schletzbaum, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:
(816)329-4146; fax:
(816)329-4090. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2008-0034; Directorate Identifier 2007-CE-097-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments. We will post all comments we receive, without change, to *http://www.regulations.gov* , including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The Civil Aviation Authority (CAA), which is the airworthiness authority for New Zealand, has issued AD DCA/750XL/3A, dated November 28, 2007 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states: DCA/750XL/3A is prompted by a report from the manufacturer of the possibility that wiring loom protective sleeving is not fitted to aircraft S/N 107 through to 134. AD applicability revised to include aircraft up to S/N 134. To prevent fretting damage to the wiring loom that may lead to arcing in proximity to the fuel vent lines and the possibility of fire, inspect the main wiring loom on the right hand side of the aircraft adjacent to the frames at station 114.34” and 118.84”, per PACSB/XL/009 issue 2, to ensure that two pieces of protective sleeving are fitted. The effectivity of the service information is serial number (S/N) 102 through 106. The MCAI expanded the applicability to S/N 102 through 134. You may obtain further information by examining the MCAI in the AD docket. Relevant Service Information Pacific Aerospace Corporation Limited has issued Mandatory Service Bulletin PACSB/XL/009, issue 2, revised July 23, 2004. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI. FAA's Determination and Requirements of the Proposed AD This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with this State of Design Authority, they have notified us of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all information and determined the unsafe condition exists and is likely to exist or develop on other products of the same type design. Differences Between This Proposed AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have proposed different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are highlighted in a Note within the proposed AD. Costs of Compliance Based on the service information, we estimate that this proposed AD would affect about 7 products of U.S. registry. We also estimate that it would take about 0.5 work-hour per product to comply with the basic requirements of this proposed AD. The average labor rate is $80 per work-hour. Required parts would cost about $30 per product. Based on these figures, we estimate the cost of the proposed AD on U.S. operators to be $490, or $70 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this proposed regulation: 1. Is not a “significant regulatory action” under Executive Order 12866; 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and 3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 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 adding the following new AD: **Pacific Aerospace Limited:** Docket No. FAA-2008-0034; Directorate Identifier 2007-CE-097-AD. Comments Due Date
(a)We must receive comments by February 19, 2008. Affected ADs
(b)or None. Applicability
(c)This AD applies to Model 750XL airplanes, serial numbers 102 through 134, certificated in any category. Note 1: The applicability of this AD takes precedence over Pacific Aerospace Corporation Limited Mandatory Service Bulletin PACSB/XL/009, issue 2, revised July 23, 2004. Subject
(d)Air Transport Association of America
(ATA)Code 39: Electrical Wiring. Reason
(e)The mandatory continuing airworthiness information
(MCAI)states: DCA/750XL/3A is prompted by a report from the manufacturer of the possibility that wiring loom protective sleeving is not fitted to aircraft S/N 107 through to 134. AD applicability revised to include aircraft up to S/N 134. To prevent fretting damage to the wiring loom that may lead to arcing in proximity to the fuel vent lines and the possibility of fire, inspect the main wiring loom on the right hand side of the aircraft adjacent to the frames at station 114.34” and 118.84”, per PACSB/XL/009, issue 2, to ensure that two pieces of protective sleeving are fitted. The effectivity of the service information is serial number (S/N) 102 through 106. The MCAI expanded the applicability to S/N 102 through 134. Actions and Compliance
(f)Unless already done, do the following actions:
(1)Within the next 100 hours time-in-service
(TIS)after the effective date of this AD, inspect the main wiring loom on the right hand side of the aircraft adjacent to the frames at station 114.34” and 118.84” to ensure there are two pieces of protective sleeving installed following Pacific Aerospace Corporation Limited Mandatory Service Bulletin PACSB/XL/009, issue 2, revised July 23, 2004.
(2)If the protective sleeves are missing, install protective sleeves following Pacific Aerospace Corporation Mandatory Service Bulletin PACSB/XL/009, issue 2, revised July 23, 2004. FAA AD Differences Note 2: This AD differs from the MCAI and/or service information as follows: No differences. Other FAA AD Provisions
(g)The following provisions also apply to this AD:
(1)*Alternative Methods of Compliance (AMOCs):* The Manager, Standards Office, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Karl Schletzbaum, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:
(816)329-4146; fax:
(816)329-4090. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector
(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO.
(2)*Airworthy Product:* For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.
(3)*Reporting Requirements:* For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the Office of Management and Budget
(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information
(h)Refer to MCAI Civil Aviation Authority of New Zealand AD DCA/750XL/3A, dated November 28, 2007; and Pacific Aerospace Corporation Limited Mandatory Service Bulletin PACSB/XL/009, issue 2, revised July 23, 2004, for related information. Issued in Kansas City, Missouri, on January 11, 2008. John Colomy, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-827 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0031; Directorate Identifier 2007-NM-313-AD] RIN 2120-AA64 Airworthiness Directives; McDonnell Douglas Model DC-8-31, DC-8-32, DC-8-33, DC-8-41, DC-8-42, and DC-8-43 Airplanes; Model DC-8-50 Series Airplanes; Model DC-8F-54 and DC-8F-55 Airplanes; Model DC-8-60 Series Airplanes; Model DC-8-60F Series Airplanes; Model DC-8-70 Series Airplanes; and Model DC-8-70F Series Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). SUMMARY: We propose to adopt a new airworthiness directive
(AD)for all McDonnell Douglas airplanes identified above. This proposed AD would require revising the FAA-approved maintenance program to incorporate new airworthiness limitations for fuel tank systems to satisfy Special Federal Aviation Regulation No. 88 requirements. This proposed AD results from a design review of the fuel tank systems. We are proposing this AD to prevent the potential for ignition sources inside fuel tanks caused by latent failures, alterations, repairs, or maintenance actions, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. DATES: We must receive comments on this proposed AD by March 3, 2008. ADDRESSES: You may send comments by any of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov.* Follow the instructions for submitting comments. • *Fax:* 202-493-2251. • *Mail:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. • *Hand Delivery:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. For service information identified in this AD, contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, *Attention:* Data and Service Management, Dept. C1-L5A (D800-0024). Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov;* or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone 800-647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Samuel Lee, Aerospace Engineer, Propulsion Branch, ANM-140L, FAA, Los Angeles Aircraft Certification Office, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone
(562)627-5262; fax
(562)627-5210. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2008-0031; Directorate Identifier 2007-NM-313-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments. We will post all comments we receive, without change, to *http://www.regulations.gov,* including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The FAA has examined the underlying safety issues involved in fuel tank explosions on several large transport airplanes, including the adequacy of existing regulations, the service history of airplanes subject to those regulations, and existing maintenance practices for fuel tank systems. As a result of those findings, we issued a regulation titled “Transport Airplane Fuel Tank System Design Review, Flammability Reduction and Maintenance and Inspection Requirements” (66 FR 23086, May 7, 2001). In addition to new airworthiness standards for transport airplanes and new maintenance requirements, this rule included Special Federal Aviation Regulation No. 88 (“SFAR 88,” Amendment 21-78, and subsequent Amendments 21-82 and 21-83). Among other actions, SFAR 88 requires certain type design ( *i.e.* , type certificate
(TC)and supplemental type certificate (STC)) holders to substantiate that their fuel tank systems can prevent ignition sources in the fuel tanks. This requirement applies to type design holders for large turbine-powered transport airplanes and for subsequent modifications to those airplanes. It requires them to perform design reviews and to develop design changes and maintenance procedures if their designs do not meet the new fuel tank safety standards. As explained in the preamble to the rule, we intended to adopt airworthiness directives to mandate any changes found necessary to address unsafe conditions identified as a result of these reviews. In evaluating these design reviews, we have established four criteria intended to define the unsafe conditions associated with fuel tank systems that require corrective actions. The percentage of operating time during which fuel tanks are exposed to flammable conditions is one of these criteria. The other three criteria address the failure types under evaluation: single failures, single failures in combination with another latent condition(s), and in-service failure experience. For all four criteria, the evaluations included consideration of previous actions taken that may mitigate the need for further action. We have determined that the actions identified in this proposed AD are necessary to reduce the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. Relevant Service Information We have reviewed the following appendixes of the Boeing DC-8 Special Compliance Item Report, MDC-02K9030, Revision A, dated August 8, 2006 (hereafter referred to as “Report MDC-02K9030”): • Appendix B, Critical Design Configuration Control Limitations (CDCCLs). • Appendix C, Airworthiness Limitation Instructions (ALIs). • Appendix D, Short-Term Extensions. Appendixes B and C of Report MDC-02K9030 describe new airworthiness limitations
(AWLs)for fuel tank systems. The new AWLs include: • CDCCLs, which are limitation requirements to preserve a critical ignition source prevention feature of the fuel tank system design that is necessary to prevent the occurrence of an unsafe condition. The purpose of a CDCCL is to provide instruction to retain the critical ignition source prevention feature during configuration change that may be caused by alterations, repairs, or maintenance actions. A CDCCL is not a periodic inspection; and • AWL inspections, which are inspections of certain features for latent failures that could contribute to an ignition source. FAA's Determination and Requirements of This Proposed AD We are proposing this AD because we evaluated all relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the(se) same type design(s). This proposed AD would require revising the FAA-approved maintenance program by incorporating the information in Appendixes B, C, and D of Report MDC-02K9030. Difference Between the Proposed AD and Service Information Although Report MDC-02K9030 specifies to submit certain information to the manufacturer, this proposed AD does not include that requirement. Explanation of Compliance Time In most ADs, we adopt a compliance time allowing a specified amount of time after the AD's effective date. In this case, however, the FAA has already issued regulations that require operators to revise their maintenance/inspection programs to address fuel tank safety issues. The compliance date for these regulations is December 16, 2008. To provide for efficient and coordinated implementation of these regulations and this proposed AD, we are using this same compliance date in this proposed AD. Rework Required When Implementing AWLs Into an Existing Fleet The maintenance program revision specified in paragraph
(f)of this proposed AD for the fuel tank systems, which involves incorporating the information specified in Report MDC-02K9030, would affect how operators maintain their airplanes. After doing the maintenance program revision, operators would need to do any maintenance on the fuel tank system as specified in the CDCCLs. Maintenance done before the maintenance program revision specified in paragraph
(f)would not need to be redone in order to comply with paragraph (f). For example, the AWL that requires fuel pumps to be repaired and overhauled per the FAA-approved component maintenance manual
(CMM)applies to fuel pumps repaired after the maintenance programs are revised; spare or on-wing fuel pumps do not need to be reworked. Changes to Fuel Tank System AWLs Paragraph
(f)of this proposed AD would require revising the FAA-approved maintenance program by incorporating certain information specified in Report MDC-02K9030. Paragraph
(f)allows accomplishing the revision in accordance with later revisions of Report MDC-02K9030 as an acceptable method of compliance if they are approved by the Manager, Los Angeles Aircraft Certification Office (ACO), FAA. In addition, Appendix B of Report MDC-02K9030 specifies that any deviations from the published AWL instructions, including AWL intervals, must be approved by the Manager, Los Angeles ACO. Therefore, after the maintenance program, any further revision to an AWL or AWL interval should be done as an AWL change, not as an alternative method of compliance (AMOC). For U.S.-registered airplanes, operators must make requests through an appropriate FAA Principal Maintenance Inspector
(PMI)or Principal Avionics Inspector
(PAI)for approval by the Manager, Los Angeles ACO. A non-U.S. operator should coordinate changes with its governing regulatory agency. Exceptional Short-Term Extensions Appendix D of Report MDC-02K9030 has provisions for an exceptional short-term extension of 30 days. An exceptional short-term extension is an increase in an AWL interval that may be needed to cover an uncontrollable or unexpected situation. For U.S.-registered airplanes, the FAA PMI or PAI must concur with any exceptional short-term extension before it is used, unless the operator has identified another appropriate procedure with the local regulatory authority. The FAA PMI or PAI may grant the exceptional short-term extensions described in Appendix D without consultation with the Manager, Los Angeles ACO. A non-U.S. operator should coordinate changes with its governing regulatory agency. As explained in Appendix D, exceptional short-term extensions must not be used for fleet AWL extensions. An exceptional short-term extension should not be confused with an operator's short-term escalation authorization approved in accordance with the Operations Specifications or the operator's reliability program. Ensuring Compliance With Fuel Tank System AWLs Boeing has revised the applicable maintenance manuals and task cards to address AWLs and to include notes about CDCCLs. Operators that do not use Boeing's revision service should revise their maintenance manuals and task cards to highlight actions tied to CDCCLs to ensure that maintenance personnel are complying with the CDCCLs. Recording Compliance With Fuel Tank System AWLs The applicable operating rules of the Federal Aviation Regulations (14 CFR parts 91, 121, 125, and 129) require operators to maintain records with the identification of the current inspection status of an airplane. The AWLs contained in Appendix C of Report MDC-02K9030 are inspections for which the applicable sections of the operating rules apply. The AWLs contained in Appendix B of Report MDC-02K9030 are CDCCLs, which are tied to conditional maintenance actions. An entry into an operator's existing maintenance record system for corrective action is sufficient for recording compliance with CDCCLs, as long as the applicable maintenance manual and task cards identify actions that are CDCCLs. Changes to Component Maintenance Manuals
(CMMs)Cited in Fuel Tank System AWLs Some of the AWLs in Appendix B of Report MDC-02K9030 refer to specific revision levels of the CMMs as additional sources of service information for doing the AWLs. Boeing is referring to the CMMs by revision level in the applicable AWL for certain components rather than including information directly in the AWL because of the volume of that information. As a result, the Manager, Los Angeles ACO, must approve the CMMs. Any later revision of those CMMs will be handled like a change to the AWL itself. Any use of parts (including the use of parts manufacturer approval
(PMA)approved parts), methods, techniques, and practices not contained in the CMMs need to be approved by the Manager, Los Angeles ACO, or governing regulatory authority. For example, certain pump repair/overhaul manuals must be approved by the Manager, Los Angeles ACO. Changes to Airplane Maintenance Manual Referenced in Fuel Tank System AWLs In other AWLs in Report MDC-02K9030, the AWLs contain all the necessary data. The applicable section of the maintenance manual is usually included in the AWLs. Boeing intended this information to assist operators in maintaining the maintenance manuals. A maintenance manual change to these tasks may be made without approval by the Manager, Los Angeles ACO, through an appropriate FAA PMI or PAI, by the governing regulatory authority, or by using the operator's standard process for revising maintenance manuals. An acceptable change would have to maintain the information specified in the AWL such as the pass/fail criteria or special test equipment. Costs of Compliance We estimate that this proposed AD would affect 125 airplanes of U.S. registry. We also estimate that it would take about 1 work-hour per product to comply with this proposed AD. The average labor rate is $80 per work-hour. Based on these figures, we estimate the cost of this proposed AD to the U.S. operators to be $10,000, or $80 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this proposed regulation: 1. Is not a “significant regulatory action” under Executive Order 12866, 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979), and 3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. You can find our regulatory evaluation and the estimated costs of compliance in the AD Docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 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 adding the following new AD: **McDonnell Douglas:** Docket No. FAA-2008-0031; Directorate Identifier 2007-NM-313-AD. Comments Due Date
(a)We must receive comments by March 3, 2008. Affected ADs
(b)None. Applicability
(c)This AD applies to all McDonnell Douglas Model DC-8-31, DC-8-32, DC-8-33, DC-8-41, DC-8-42, and DC-8-43 airplanes; Model DC-8-51, DC-8-52, DC-8-53, and DC-8-55 airplanes; Model DC-8F-54 and DC-8F-55 airplanes; Model DC-8-61, DC-8-62, and DC-8-63 airplanes; Model DC-8-61F, DC-8-62F, and DC-8-63F airplanes; Model DC-8-71, DC-8-72, and DC-8-73 airplanes; and Model DC-8-71F, DC-8-72F, and DC-8-73F airplanes; certificated in any category. Note 1: This AD requires revisions to certain operator maintenance documents to include new inspections and maintenance actions. Compliance with these limitations is required by 14 CFR 43.16 and 91.403(c). For airplanes that have been previously modified, altered, or repaired in the areas addressed by these limitations, the operator may not be able to accomplish the actions described in the revisions. In this situation, to comply with 14 CFR 43.16 and 91.403(c), the operator must request approval for revision to the airworthiness limitations
(AWLs)in the Boeing DC-8 Special Compliance Item Report, MDC-02K9030, according to paragraph
(f)or
(h)of this AD, as applicable. Unsafe Condition
(d)This AD results from a design review of the fuel tank systems. We are issuing this AD to prevent the potential for ignition sources inside fuel tanks caused by latent failures, alterations, repairs, or maintenance actions, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. Compliance
(e)Comply with this AD within the compliance times specified, unless already done. Revise the FAA-Approved Maintenance Program
(f)Before December 16, 2008, revise the FAA-approved maintenance program to incorporate the information specified in Appendixes B, C, and D of the Boeing DC-8 Special Compliance Item Report, MDC-02K9030, Revision A, dated August 8, 2006. Accomplishing the revision in accordance with a later revision of the Boeing DC-8 Special Compliance Item Report, MDC-02K9030, is an acceptable method of compliance if the revision is approved by the Manager, Los Angeles Aircraft Certification Office (ACO), FAA. No Reporting Requirement
(g)Although the Boeing DC-8 Special Compliance Item Report, MDC-02K9030, Revision A, dated August 8, 2006, specifies to submit certain information to the manufacturer, this AD does not require that action. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, Los Angeles ACO, FAA, ATTN: Samuel Lee, Aerospace Engineer, Propulsion Branch, ANM-140L, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone
(562)627-5262; fax
(562)627-5210; has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19.
(2)To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector
(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Issued in Renton, Washington, on January 9, 2008. Stephen P. Boyd, Assistant Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-854 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0032; Directorate Identifier 2007-NM-314-AD] RIN 2120-AA64 Airworthiness Directives; McDonnell Douglas Model 717-200 Airplanes; Model DC-9-10 Series Airplanes; Model DC-9-20 Series Airplanes; Model DC-9-30 Series Airplanes; Model DC-9-40 Series Airplanes; Model DC-9-50 Series Airplanes; Model DC-9-81 (MD-81), DC-9-82 (MD-82), DC-9-83 (MD-83), and DC-9-87 (MD-87) Airplanes; Model MD-88 Airplanes; and Model MD-90-30 Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). SUMMARY: We propose to adopt a new airworthiness directive
(AD)for all McDonnell Douglas airplanes identified above. This proposed AD would require revising the FAA-approved maintenance program, or the Airworthiness Limitations
(AWLs)section of the Instructions for Continued Airworthiness, as applicable, to incorporate new AWLs for fuel tank systems to satisfy Special Federal Aviation Regulation No. 88 requirements. This proposed AD results from a design review of the fuel tank systems. We are proposing this AD to prevent the potential for ignition sources inside fuel tanks caused by latent failures, alterations, repairs, or maintenance actions, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. DATES: We must receive comments on this proposed AD by March 3, 2008. ADDRESSES: You may send comments by any of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov.* Follow the instructions for submitting comments. • *Fax:* 202-493-2251. • *Mail:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. • *Hand Delivery:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. For service information identified in this AD, contact Boeing Commercial Airplanes, Long Beach Division, 3855 Lakewood Boulevard, Long Beach, California 90846, Attention: Data and Service Management, Dept. C1-L5A (D800-0024). Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov;* or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone 800-647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Serj Harutunian, Aerospace Engineer, Propulsion Branch, ANM-140L, FAA, Los Angeles Aircraft Certification Office, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone
(562)627-5254; fax
(562)627-5210. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2008-0032; Directorate Identifier 2007-NM-314-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments. We will post all comments we receive, without change, to *http://www.regulations.gov,* including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The FAA has examined the underlying safety issues involved in fuel tank explosions on several large transport airplanes, including the adequacy of existing regulations, the service history of airplanes subject to those regulations, and existing maintenance practices for fuel tank systems. As a result of those findings, we issued a regulation titled “Transport Airplane Fuel Tank System Design Review, Flammability Reduction and Maintenance and Inspection Requirements” (66 FR 23086, May 7, 2001). In addition to new airworthiness standards for transport airplanes and new maintenance requirements, this rule included Special Federal Aviation Regulation No. 88 (“SFAR 88,” Amendment 21-78, and subsequent Amendments 21-82 and 21-83). Among other actions, SFAR 88 requires certain type design (i.e., type certificate
(TC)and supplemental type certificate (STC)) holders to substantiate that their fuel tank systems can prevent ignition sources in the fuel tanks. This requirement applies to type design holders for large turbine-powered transport airplanes and for subsequent modifications to those airplanes. It requires them to perform design reviews and to develop design changes and maintenance procedures if their designs do not meet the new fuel tank safety standards. As explained in the preamble to the rule, we intended to adopt airworthiness directives to mandate any changes found necessary to address unsafe conditions identified as a result of these reviews. In evaluating these design reviews, we have established four criteria intended to define the unsafe conditions associated with fuel tank systems that require corrective actions. The percentage of operating time during which fuel tanks are exposed to flammable conditions is one of these criteria. The other three criteria address the failure types under evaluation: Single failures, single failures in combination with another latent condition(s), and in-service failure experience. For all four criteria, the evaluations included consideration of previous actions taken that may mitigate the need for further action. We have determined that the actions identified in this proposed AD are necessary to reduce the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. Relevant Service Information We have reviewed the following appendixes of the Boeing Twinjet Special Compliance Items Report, MDC-92K9145, Revision G, dated June 7, 2007 (hereafter referred to as “Report MDC-92K9145”): • Appendix B, Critical Design Configuration Control Limitations (CDCCLs) • Appendix C, Airworthiness Limitation Instructions
(ALIs)• Appendix D, Short-Term Extensions Appendixes B and C of Report MDC-92K9145 describe new airworthiness limitations
(AWLs)for fuel tank systems. The new AWLs include: • CDCCLs, which are limitation requirements to preserve a critical ignition source prevention feature of the fuel tank system design that is necessary to prevent the occurrence of an unsafe condition. The purpose of a CDCCL is to provide instruction to retain the critical ignition source prevention feature during configuration change that may be caused by alterations, repairs, or maintenance actions. A CDCCL is not a periodic inspection; and • AWL inspections, which are inspections of certain features for latent failures that could contribute to an ignition source. FAA's Determination and Requirements of This Proposed AD We are proposing this AD because we evaluated all relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the(se) same type design(s). This proposed AD would require revising the FAA-approved maintenance program, or the AWLs section of the Instructions for Continued Airworthiness, as applicable, by incorporating the information in Appendixes B, C, and D of Report MDC-92K9145. Difference Between the Proposed AD and Service Information Although Report MDC-92K9145 specifies to submit certain information to the manufacturer, this proposed AD does not include that requirement. Explanation of Compliance Time In most ADs, we adopt a compliance time allowing a specified amount of time after the AD's effective date. In this case, however, the FAA has already issued regulations that require operators to revise their maintenance/inspection programs to address fuel tank safety issues. The compliance date for these regulations is December 16, 2008. To provide for efficient and coordinated implementation of these regulations and this proposed AD, we are using this same compliance date in this proposed AD. Rework Required When Implementing AWLs Into an Existing Fleet The maintenance program revision specified in paragraph
(g)of this proposed AD, and the AWLs revision specified in paragraph
(h)of this proposed AD, for the fuel tank systems, which involve incorporating the information specified in Report MDC-92K9145, would affect how operators maintain their airplanes. After doing the maintenance program revision or AWLs revision, as applicable, operators would need to do any maintenance on the fuel tank system as specified in the CDCCLs. Maintenance done before the maintenance program revision specified in paragraph (g), or the AWLs revision specified in paragraph (h), as applicable, would not need to be redone in order to comply with paragraph
(g)or (h). For example, the AWL that requires fuel pumps to be repaired and overhauled per the FAA-approved component maintenance manual
(CMM)applies to fuel pumps repaired after the maintenance programs are revised; spare or on-wing fuel pumps do not need to be reworked. Changes to Fuel Tank System AWLs For certain airplanes, paragraph
(g)of this proposed AD would require revising the FAA-approved maintenance program by incorporating certain information specified in Report MDC-92K9145. For certain other airplanes, paragraph
(h)of this proposed AD would require revising the AWLs section of the Instructions for Continued Airworthiness by incorporating certain information specified in Report MDC-92K9145. Paragraphs
(g)and
(h)allow accomplishing the revision in accordance with later revisions of Report MDC-92K9145 as an acceptable method of compliance if they are approved by the Manager, Los Angeles Aircraft Certification Office (ACO), FAA. In addition, Appendix B of Report MDC-92K9145 specifies that any deviations from the published AWL instructions, including AWL intervals, must be approved by the Manager, Los Angeles ACO. Therefore, after the maintenance program or AWLs revision, any further revision to an AWL or AWL interval should be done as an AWL change, not as an alternative method of compliance (AMOC). For U.S.-registered airplanes, operators must make requests through an appropriate FAA Principal Maintenance Inspector
(PMI)or Principal Avionics Inspector
(PAI)for approval by the Manager, Los Angeles ACO. A non-U.S. operator should coordinate changes with its governing regulatory agency. Exceptional Short-Term Extensions Appendix D of Report MDC-92K9145 has provisions for an exceptional short-term extension of 30 days. An exceptional short-term extension is an increase in an AWL interval that may be needed to cover an uncontrollable or unexpected situation. For U.S.-registered airplanes, the FAA PMI or PAI must concur with any exceptional short-term extension before it is used, unless the operator has identified another appropriate procedure with the local regulatory authority. The FAA PMI or PAI may grant the exceptional short-term extensions described in Appendix D without consultation with the Manager, Los Angeles ACO. A non-U.S. operator should coordinate changes with its governing regulatory agency. As explained in Appendix D, exceptional short-term extensions must not be used for fleet AWL extensions. An exceptional short-term extension should not be confused with an operator's short-term escalation authorization approved in accordance with the Operations Specifications or the operator's reliability program. Ensuring Compliance With Fuel Tank System AWLs Boeing has revised the applicable maintenance manuals and task cards to address AWLs and to include notes about CDCCLs. Operators that do not use Boeing's revision service should revise their maintenance manuals and task cards to highlight actions tied to CDCCLs to ensure that maintenance personnel are complying with the CDCCLs. Recording Compliance With Fuel Tank System AWLs The applicable operating rules of the Federal Aviation Regulations (14 CFR parts 91, 121, 125, and 129) require operators to maintain records with the identification of the current inspection status of an airplane. The AWLs contained in Appendix C of Report MDC-92K9145 are inspections for which the applicable sections of the operating rules apply. The AWLs contained in Appendix B of Report MDC-92K9145 are CDCCLs, which are tied to conditional maintenance actions. An entry into an operator's existing maintenance record system for corrective action is sufficient for recording compliance with CDCCLs, as long as the applicable maintenance manual and task cards identify actions that are CDCCLs. Changes to Component Maintenance Manuals
(CMMs)Cited in Fuel Tank System AWLs Some of the AWLs in Appendix B of Report MDC-92K9145 refer to specific revision levels of the CMMs as additional sources of service information for doing the AWLs. Boeing is referring to the CMMs by revision level in the applicable AWL for certain components rather than including information directly in the AWL because of the volume of that information. As a result, the Manager, Los Angeles ACO, must approve the CMMs. Any later revision of those CMMs will be handled like a change to the AWL itself. Any use of parts (including the use of parts manufacturer approval
(PMA)approved parts), methods, techniques, and practices not contained in the CMMs need to be approved by the Manager, Los Angeles ACO, or governing regulatory authority. For example, certain pump repair/overhaul manuals must be approved by the Manager, Los Angeles ACO. Changes to Airplane Maintenance Manual Referenced in Fuel Tank System AWLs In other AWLs in Report MDC-92K9145, the AWLs contain all the necessary data. The applicable section of the maintenance manual is usually included in the AWLs. Boeing intended this information to assist operators in maintaining the maintenance manuals. A maintenance manual change to these tasks may be made without approval by the Manager, Los Angeles ACO, through an appropriate FAA PMI or PAI, by the governing regulatory authority, or by using the operator's standard process for revising maintenance manuals. An acceptable change would have to maintain the information specified in the AWL such as the pass/fail criteria or special test equipment. Costs of Compliance We estimate that this proposed AD would affect 780 airplanes of U.S. registry. We also estimate that it would take about 1 work-hour per product to comply with this proposed AD. The average labor rate is $80 per work-hour. Based on these figures, we estimate the cost of this proposed AD to the U.S. operators to be $62,400, or $80 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this proposed regulation: 1. Is not a “significant regulatory action” under Executive Order 12866, 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979), and 3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. You can find our regulatory evaluation and the estimated costs of compliance in the AD Docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 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 adding the following new AD: **McDonnell Douglas:** Docket No. FAA-2008-0032; Directorate Identifier 2007-NM-314-AD. Comments Due Date
(a)We must receive comments by March 3, 2008. Affected ADs
(b)None. Applicability
(c)This AD applies to all McDonnell Douglas Model 717-200 airplanes; Model DC-9-11, DC-9-12, DC-9-13, DC-9-14, DC-9-15, and DC-9-15F airplanes; Model DC-9-21 airplanes; Model DC-9-31, DC-9-32, DC-9-32 (VC-9C), DC-9-32F, DC-9-33F, DC-9-34, DC-9-34F, and DC-9-32F (C-9A, C-9B) airplanes; Model DC-9-41 airplanes; Model DC-9-51 airplanes; Model DC-9-81 (MD-81), DC-9-82 (MD-82), DC-9-83 (MD-83), and DC-9-87 (MD-87) airplanes; Model MD-88 airplanes; and Model MD-90-30 airplanes; certificated in any category. Note 1: This AD requires revisions to certain operator maintenance documents to include new inspections and maintenance actions. Compliance with these limitations is required by 14 CFR 43.16 and 91.403(c). For airplanes that have been previously modified, altered, or repaired in the areas addressed by these limitations, the operator may not be able to accomplish the actions described in the revisions. In this situation, to comply with 14 CFR 43.16 and 91.403(c), the operator must request approval for revision to the airworthiness limitations
(AWLs)in the Boeing Twinjet Special Compliance Items Report, MDC-92K9145, according to paragraph (g), (h), or
(j)of this AD, as applicable. Unsafe Condition
(d)This AD results from a design review of the fuel tank systems. We are issuing this AD to prevent the potential for ignition sources inside fuel tanks caused by latent failures, alterations, repairs, or maintenance actions, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. Compliance
(e)Comply with this AD within the compliance times specified, unless already done. Service Information Reference
(f)The term “Report MDC-92K9145,” as used in this AD, means the Boeing Twinjet Special Compliance Items Report, MDC-92K9145, Revision G, dated June 7, 2007. Revise the FAA-Approved Maintenance Program
(g)For Model DC-9-11, DC-9-12, DC-9-13, DC-9-14, DC-9-15, and DC-9-15F airplanes; Model DC-9-21 airplanes; Model DC-9-31, DC-9-32, DC-9-32 (VC-9C), DC-9-32F, DC-9-33F, DC-9-34, DC-9-34F, and DC-9-32F (C-9A, C-9B) airplanes; Model DC-9-41 airplanes; Model DC-9-51 airplanes; and Model DC-9-81 (MD-81), DC-9-82 (MD-82), DC-9-83 (MD-83), and DC-9-87 (MD-87) airplanes: Before December 16, 2008, revise the FAA-approved maintenance program to incorporate the information specified in Appendixes B, C, and D of Report MDC-92K9145. Accomplishing the revision in accordance with a later revision of Report MDC-92K9145 is an acceptable method of compliance if the revision is approved by the Manager, Los Angeles Aircraft Certification Office (ACO), FAA. Revise the AWLs Section
(h)For Model 717-200, Model MD-88, and Model MD-90-30 airplanes: Before December 16, 2008, revise the AWLs section of the Instructions for Continued Airworthiness to incorporate the information specified in Appendixes B, C, and D of Report MDC-92K9145. Accomplishing the revision in accordance with a later revision of Report MDC-92K9145 is an acceptable method of compliance if the revision is approved by the Manager, Los Angeles ACO. No Reporting Requirement
(i)Although Report MDC-92K9145 specifies to submit certain information to the manufacturer, this AD does not require that action. Alternative Methods of Compliance (AMOCs) (j)(1) The Manager, Los Angeles ACO, FAA, ATTN: Serj Harutunian, Aerospace Engineer, Propulsion Branch, ANM-140L, 3960 Paramount Boulevard, Lakewood, California 90712-4137; telephone
(562)627-5254; fax
(562)627-5210; has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19.
(2)To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector
(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Issued in Renton, Washington, on January 9, 2008. Stephen P. Boyd, Assistant Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-857 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-27687; Directorate Identifier 2000-NE-42-AD] RIN 2120-AA64 Airworthiness Directives; General Electric Company CF34-1A, -3A, -3A1, -3A2, -3B, and -3B1 Turbofan Engines AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). SUMMARY: The FAA proposes to supersede an existing airworthiness directive
(AD)for General Electric Company
(GE)CF34-1A, -3A, -3A1, -3A2, -3B, and -3B1 turbofan engines. That AD currently requires a onetime inspection of certain fan disks for electrical arc-out indications, replacing fan disks with electrical arc-out indications, and reducing the life limit of certain fan disks. This proposed AD would require the same reduced life limit of certain fan disks, on-wing inspection of certain fan disks installed on regional jets, and would add a requirement to perform an inspection on certain business jet applications that have already had a shop-level inspection. This proposed AD results from us determining that we inadvertently left out an inspection requirement. We are proposing this AD to prevent uncontained fan disk failure and airplane damage. DATES: We must receive any comments on this proposed AD by March 18, 2008. ADDRESSES: Use one of the following addresses to comment on this proposed AD. • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov* and follow the instructions for sending your comments electronically. • *Mail:* Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-0001. • *Hand Delivery:* Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. • *Fax:*
(202)493-2251. Contact General Electric Company via Lockheed Martin Technology Services, 10525 Chester Road, Suite C, Cincinnati, Ohio 45215; telephone
(513)672-8400; fax
(513)672-8422; for the service information identified in this proposed AD. FOR FURTHER INFORMATION CONTACT: Tara Chaidez, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *tara.chaidez@faa.gov;* telephone
(781)238-7773; fax
(781)238-7199. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments regarding this proposal. Send your comments to an address listed under ADDRESSES . Include “Docket No. FAA-2007-27687; Directorate Identifier 2000-NE-42-AD” in the subject line of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of the proposed AD. We will consider all comments received by the closing date and may amend the proposed AD in light of those comments. We will post all comments we receive, without change, to *http://www.regulations.gov,* including any personal information you provide. We will also post a report summarizing each substantive verbal contact with FAA personnel concerning this proposed AD. Using the search function of the Web site, anyone can find and read the comments in any of our dockets, including, if provided, the name of the individual who sent the comment (or signed the comment on behalf of an association, business, labor union, etc.). You may review the DOT's complete Privacy Act Statement in the **Federal Register** published on April 11, 2000 (65 FR 19477-78). Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov;* or in person at the Docket Operations office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone
(800)647-5527) is the same as the Mail address provided in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. Discussion The FAA proposes to amend 14 CFR part 39 by superseding AD 2007-07-07R1, Amendment 39-15179 (72 FR 49183, August 28, 2007). That AD requires a onetime inspection of certain fan disks for electrical arc-out indications, replacing fan disks with electrical arc-out indications, and reducing the life limit of certain fan disks. That AD was the result of GE revising their service information and a comment from an operator asking us to clarify Table C of this AD. That condition, if not corrected, could result in an uncontained fan disk failure and airplane damage. Actions Since AD 2007-07-07R1 Was Issued Since we issued that AD, we determined that we inadvertently left out an inspection requirement in Table C of that AD to perform a shop inspection on disks that have greater than 6,000 flight hours and have already undergone a shop inspection. Relevant Service Information We have reviewed and approved the technical contents of GE ASB No. CF34-BJ S/B 72-A0212, Revision 3, dated June 27, 2007, ASB No. CF34-AL S/B 72-A0233, Revision 3, dated June 27, 2007, and ASB No. CF34-AL S/B 72-A0231, Revision 1, dated June 27, 2007. All three ASBs list the affected fan disks by serial number and part number. The first two ASBs describe procedures for performing fluorescent penetrant inspection (FPI), a Tactile and Enhanced Visual
(TEV)inspection, and eddy current inspection
(ECI)for cracks and electrical arc-out defects. The third ASB describes procedures for performing an on-wing TEV inspection of fan disks for electrical arc-out defects. FAA's Determination and Requirements of This AD The unsafe condition described previously is likely to exist or develop on other GE CF34-1A, -3A, -3A1, -3A2, -3B, and -3B1 turbofan engines of the same type design. For that reason, we are proposing this AD to prevent an uncontained fan disk failure and airplane damage. This proposed AD would require: • Replacing certain fan disks installed on regional jets within 15 days after the effective date of this proposed AD, and • On-wing and shop-level inspections of fan disks for electrical arc-out defects on fan disks installed on regional jets. • Shop-level inspections of fan disks for electrical arc-out defects on fan disks installed on business jets. You must use the service information described previously to perform the actions required by this AD. Costs of Compliance We estimate that this proposed AD would affect 1,727 engines installed on airplanes of U.S. registry. We also estimate that it would take about 6.0 work-hours per engine to perform the proposed actions, and that the average labor rate is $80 per work-hour. There are no required parts. Based on these figures, we estimate the total cost of the proposed AD to U.S. operators to be $828,960. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that the proposed AD: 1. Is not a “significant regulatory action” under Executive Order 12866; 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and 3. Would not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD. See the ADDRESSES section for a location to examine the regulatory evaluation. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Under the authority delegated to me by the Administrator, the Federal Aviation Administration proposes to amend 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 Amendment 39-15179 (72 FR 49183, August 28, 2007) and by adding a new airworthiness directive to read as follows: **General Electric Company:** Docket No. FAA-2007-27687; Directorate Identifier 2000-NE-42-AD. Comments Due Date
(a)The Federal Aviation Administration
(FAA)must receive comments on this airworthiness directive
(AD)action by March 18, 2008. Affected ADs
(b)This AD supersedes AD 2007-07-07R1, Amendment 39-15179. Applicability
(c)This AD applies to General Electric Company
(GE)CF34-1A, -3A, -3A1, -3A2, -3B, and -3B1 turbofan engines, with fan disks part numbers (P/Ns) 5921T18G01, 5921T18G09, 5921T18G10, 5921T54G01, 5922T01G02, 5922T01G04, 5922T01G05, 6020T62G04, 6020T62G05, 6078T00G01, 6078T57G01, 6078T57G02, 6078T57G03, 6078T57G04, 6078T57G05, and 6078T57G06 installed. These engines are installed on, but not limited to, Bombardier Canadair airplane models CL-600-2A12, -2B16, and -2B19. Unsafe Condition
(d)This AD results from us determining that we inadvertently left out an inspection requirement. We are issuing this AD to prevent uncontained fan disk failure and airplane damage. Compliance
(e)You are responsible for having the actions required by this AD performed within the compliance times specified unless the actions have already been done. Removal of Certain Fan Disks From Service
(f)For fan disks listed by P/N and serial number
(SN)in the following Table A that have fewer than 8,000 cycles-since-new
(CSN)on the effective date of this AD, replace fan disks before accumulating 8,000 CSN: Table A.—Fan Disks That Require Removal Based on Blended Callouts Disk part No. Disk serial No. 6078T57G02 GAT6306N 6078T00G01 GAT3860G 6078T57G02 GAT1924L 5922T01G04 GAT9599G 6078T57G04 GEE05831 6078T57G04 GEE06612 6078T57G04 GEE06618 6078T57G04 GEE06974 6078T57G04 GEE06980 6078T57G05 GEE143FY 6078T57G05 GEE1453G 6078T57G05 GEE14452 6078T57G05 GEE145NA 6078T57G04 GEE08086 6078T57G04 GEE09287 6078T57G04 GEE09337 6078T57G05 GEE12720 6078T57G05 GEE14214 6078T57G05 GEE142YT 6078T57G05 GEE146GT
(g)For fan disks listed in Table A of this AD that have 8,000 CSN or more on the effective date of this AD, replace the disk within 15 days after the effective date of this AD. Inspections of Fan Disks Installed in Regional Jet Airplanes
(h)For CF34-3A1 and CF34-3B1 turbofan engines installed on Bombardier Canadair CL600-2B19 Regional Jet airplanes: On-Wing Tactile and Enhanced Visual
(TEV)Inspection
(1)Perform an on-wing TEV inspection on the fan disks listed by P/N and SN in Table 1 of GE ASB No. CF34-AL S/B 72-A0231, Revision 1, dated June 27, 2007, using the compliance times specified in the following Table B: Table B.—Regional Jet On-Wing Fan Disk Inspection Compliance Times For fan disks: Inspect:
(i)That have not had a shop-level inspection Within 500 flight hours after September 12, 2007.
(ii)That are marked with an asterisk in Table 1 of GE ASB No. CF34-AL S/B 72-A0231, Revision 1, dated June 27, 2007 Within 500 flight hours after September 12, 2007.
(2)Use paragraphs 3.A. through 3.A.(13) of the Accomplishment Instructions of GE ASB No. CF34-AL S/B 72-A0231, Revision 1, dated June 27, 2007, to do the inspection. Shop-Level Inspection
(3)Within 5,000 flight hours or by September 12, 2012, whichever occurs first, fluorescent-penetrant inspect (FPI), TEV inspect, and eddy current inspect
(ECI)at shop-level for cracks and electrical arc-out defects on the fan disks listed by P/N and SN in Table 1 of GE ASB No. CF34-AL S/B 72-A0233, Revision 3, dated June 27, 2007.
(4)Use paragraphs 3.A.(1) through 3.A.(6) of the Accomplishment Instructions of GE ASB No. CF34-AL S/B 72-A0233, Revision 3, dated June 27, 2007, to do the inspections. Shop-Level Inspection Exemption
(5)Fan disks that meet the following criteria are exempt from the shop-level inspection:
(i)Fan disks inspected before the effective date of this AD per GE Engine Manual No. SEI-756, Section 72-21-00 (FAN ROTOR ASSEMBLY INSPECTION); and
(ii)That have accumulated no more than 100 cycles since that inspection; and
(iii)That pass the on-wing TEV inspection in paragraph (h)(2) of this AD. Inspection of Fan Disks Installed in Business Jet Airplanes
(i)For CF34-1A, -3A, -3A1, -3A2, and -3B turbofan engines installed on Bombardier Canadair Models CL-600-2A12 (CL-601), CL-600-2B16 (CL-601-3A), (CL-601-3R), and (CL-604) Business Jet airplanes:
(1)FPI, TEV inspect, and ECI for cracks and electrical arc-out defects at shop-level on the fan disks listed by P/N and SN in Table 1 of GE ASB No. CF34-BJ S/B 72-A0212, Revision 3, dated June 27, 2007, using the compliance times specified in the following Table C: Table C.—Business Jet Shop-level Fan Disk Inspection Compliance Times For fan disks: Inspect:
(i)That have not had a shop-level inspection and have more than 5,500 flight hours on September 12, 2007 Within 500 flight hours after September 12, 2007.
(ii)That have not had a shop-level inspection and have 5,500 or fewer flight hours on the effective date of this AD Within accumulating a total of 6,000 fan disk operating hours-since-new or by September 12, 2012, whichever occurs first.
(iii)That have had a shop-level inspection Within accumulating an additional 6,000 fan disk operating hours-since-shop-level inspection, or by September 12, 2012, whichever occurs first.
(2)Use paragraphs 3.A. through 3.A.(10) of the Accomplishment Instructions of GE ASB No. CF34-BJ S/B 72-A0212, Revision 3, dated June 27, 2007, to do the inspections. Reporting Requirements
(j)Under the provisions of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.), the Office of Management and Budget
(OMB)has approved the information collection requirements contained in this AD, and has assigned OMB Control Number 2120-0056.
(1)Report the results of the on-wing inspections performed in paragraph (h)(2) of this AD by following the instructions in paragraph 3.A.(14) of the Accomplishment Instructions of GE ASB No. CF34-AL S/B 72-A0231, Revision 1, dated June 27, 2007.
(2)Report the results of the shop-level inspections performed in paragraph (h)(4) of this AD by following the instructions in paragraph 3.A.(3)(b)11 of the Accomplishment Instructions of GE ASB No. CF34-AL S/B 72-A0233, Revision 3, dated June 27, 2007.
(3)Report the results of the shop-level inspections performed in paragraph (i)(2) of this AD by following the instructions in paragraph 3.A.(3)(b)11 of the Accomplishment Instructions of GE ASB No. CF34-AL S/B 72-A0212, Revision 3, dated June 27, 2007. Previous Credit
(k)We are allowing previous credit for:
(1)Fan disks previously shop-level inspected before the effective date of this AD using GE ASB No. CF34-AL S/B 72-A0233, dated March 7, 2007, Revision 1, dated March 16, 2007, or Revision 2, dated March 22, 2007; and GE ASB No. CF34-BJ S/B 72-A0212, dated March 7, 2007, Revision 1, dated March 16, 2007, or Revision 2, dated March 22, 2007.
(2)Fan disks previously on-wing TEV inspected before the effective date of this AD using GE ASB No. CF34-AL S/B 72-A0231, dated March 7, 2007. Alternative Methods of Compliance
(l)The Manager, Engine Certification Office, has the authority to approve alternative methods of compliance for this AD if requested using the procedures found in 14 CFR 39.19. Related Information
(m)Emergency AD 2007-04-51 and AD 2007-05-16 also pertain to the subject of this AD.
(n)GE Alert Service Bulletins ASB No. CF34-BJ S/B 72-A0212, Revision 3, dated June 27, 2007; ASB No. CF34-AL S/B 72-A0233, Revision 3, dated June 27, 2007; and ASB No. CF34-AL S/B 72-A0231, Revision 1, dated June 27, 2007; pertain to the subject of this AD.
(o)Contact Tara Chaidez, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *tara.chaidez@faa.gov;* telephone
(781)238-7773; fax
(781)238-7199, for more information about this AD. Issued in Burlington, Massachusetts, on January 10, 2008. Peter A. White, Assistant Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E8-821 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0035; Directorate Identifier 2007-CE-103-AD] RIN 2120-AA64 Airworthiness Directives; British Aerospace Regional Aircraft Model HP.137 Jetstream Mk.1, Jetstream Series 200, Jetstream Series 3101, and Jetstream Model 3201 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). SUMMARY: We propose to adopt a new airworthiness directive
(AD)for the products listed above. This proposed AD results from mandatory continuing airworthiness information
(MCAI)originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: Two incidents have been reported where the normal hydraulic supplies were lost due to failure/loss of the steering jack gland housing. This has been attributed to pre-existing thread damage on the steering jack gland housing. Three previous failures may also be due to this failure mechanism. Failure of the steering jack gland housing resulted in significant damage to the right hand undercarriage bay door, and could result in the nose landing gear jamming in a fully or partially retracted position. Landing in such a condition is considered as potentially unsafe due to the degraded control of the aircraft post touch down. The proposed AD would require actions that are intended to address the unsafe condition described in the MCAI. DATES: We must receive comments on this proposed AD by February 19, 2008. ADDRESSES: You may send comments by any of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov* . Follow the instructions for submitting comments. • *Fax:*
(202)493-2251. • *Mail:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. • *Hand Delivery:* U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov* ; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone
(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Taylor Martin, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:
(816)329-4138; fax:
(816)329-4090. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2008-0035; Directorate Identifier 2007-CE-103-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments. We will post all comments we receive, without change, to *http://www.regulations.gov,* including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Community, has issued AD No. 2006-0128, dated May 18, 2006 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states: Two incidents have been reported where the normal hydraulic supplies were lost due to failure/loss of the steering jack gland housing. This has been attributed to pre-existing thread damage on the steering jack gland housing. Three previous failures may also be due to this failure mechanism. Failure of the steering jack gland housing resulted in significant damage to the right hand undercarriage bay door, and could result in the nose landing gear jamming in a fully or partially retracted position. Landing in such a condition is considered as potentially unsafe due to the degraded control of the aircraft post touch down. Changes to the gland have been introduced in order to prevent further recurrence. This proposed AD would require you to install a serviceable steering jack. You may obtain further information by examining the MCAI in the AD docket. Relevant Service Information British Aerospace Regional Aircraft has issued British Aerospace Jetstream Series 3100 and 3200 Service Bulletin 32-JM5417, Original Issue: March 22, 2005. The actions described in this service information are intended to correct the unsafe condition identified in the MCAI. FAA's Determination and Requirements of the Proposed AD This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to our bilateral agreement with this State of Design Authority, they have notified us of the unsafe condition described in the MCAI and service information referenced above. We are proposing this AD because we evaluated all information and determined the unsafe condition exists and is likely to exist or develop on other products of the same type design. Differences Between This Proposed AD and the MCAI or Service Information We have reviewed the MCAI and related service information and, in general, agree with their substance. But we might have found it necessary to use different words from those in the MCAI to ensure the AD is clear for U.S. operators and is enforceable. In making these changes, we do not intend to differ substantively from the information provided in the MCAI and related service information. We might also have proposed different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are highlighted in a NOTE within the proposed AD. Costs of Compliance Based on the service information, we estimate that this proposed AD would affect about 149 products of U.S. registry. We also estimate that it would take about 10 work-hours per product to comply with the basic requirements of this proposed AD. The average labor rate is $80 per work-hour. Required parts would cost about $100 per product. Based on these figures, we estimate the cost of the proposed AD on U.S. operators to be $134,100, or $900 per product. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We determined that this proposed AD would not have federalism implications under Executive Order 13132. This proposed AD would not have a substantial direct effect on the States, on the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify this proposed regulation: 1. Is not a “significant regulatory action” under Executive Order 12866; 2. Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and 3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this proposed AD and placed it in the AD docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. The Proposed Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA proposes to amend 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 adding the following new AD: **British Aerospace Regional Aircraft:** Docket No. FAA-2008-0035; Directorate Identifier 2007-CE-103-AD. Comments Due Date
(a)We must receive comments by February 19, 2008. Affected ADs
(b)None. Applicability
(c)This AD applies to Model HP.137 Jetstream Mk.1, Jetstream Series 200, Jetstream Series 3101, and Jetstream Model 3201 airplanes, all serial numbers, certificated in any category. Subject
(d)Air Transport Association of America
(ATA)Code 32: Landing Gear. Reason
(e)The mandatory continuing airworthiness information
(MCAI)states: Two incidents have been reported where the normal hydraulic supplies were lost due to failure/loss of the steering jack gland housing. This has been attributed to pre-existing thread damage on the steering jack gland housing. Three previous failures may also be due to this failure mechanism. Failure of the steering jack gland housing resulted in significant damage to the right hand undercarriage bay door, and could result in the nose landing gear jamming in a fully or partially retracted position. Landing in such a condition is considered as potentially unsafe due to the degraded control of the aircraft post touch down. Changes to the gland have been introduced in order to prevent further recurrence. This AD would require you to install a serviceable steering jack. Actions and Compliance
(f)Unless already done, within the next 12 months after the effective date of this AD, install a serviceable steering jack that has been modified following APPH Ltd. Service Bulletin 32-78, dated February 2005, as specified in British Aerospace Jetstream Series 3100 and 3200 Service Bulletin 32-JM5417, Original Issue: March 22, 2005. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows: No differences. Other FAA AD Provisions
(g)The following provisions also apply to this AD:
(1)Alternative Methods of Compliance (AMOCs): The Manager, Standards Office, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Taylor Martin, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:
(816)329-4138; fax:
(816)329-4090. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector
(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO.
(2)Airworthy Product: For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service.
(3)Reporting Requirements: For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), the Office of Management and Budget
(OMB)has approved the information collection requirements and has assigned OMB Control Number 2120-0056. Related Information
(h)Refer to MCAI European Aviation Safety Agency
(EASA)AD No. 2006-0128, dated May 18, 2006; and British Aerospace Jetstream Series 3100 and 3200 Service Bulletin 32-JM5417, Original Issue: March 22, 2005, for related information. Issued in Kansas City, Missouri, on January 11, 2008. John Colomy, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-824 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA-2007-29164; Airspace Docket No. 07-ANM-14] Proposed Establishment of Class E Airspace; Pagosa Springs, CO AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking. SUMMARY: This action proposes to establish Class E airspace at Pagosa Springs, CO. Additional controlled airspace is necessary to accommodate aircraft using a new Area Navigation
(RNAV)Global Positioning System
(GPS)Standard Instrument Approach Procedure
(SIAP)at Stevens Field. The FAA is proposing this action to enhance the safety and management of aircraft operations at Stevens Field, Pagosa Springs, CO. DATES: Comments must be received on or before March 3, 2008. ADDRESSES: Send comments on this proposal to the U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. Telephone
(202)366-9826. You must identify FAA Docket No. FAA-2007-29164; Airspace Docket No. 07-ANM-14, at the beginning of your comments. You may also submit comments through the Internet at *http://www.regulations.gov* . FOR FURTHER INFORMATION CONTACT: Eldon Taylor, Federal Aviation Administration, System Support Group, Western Service Area, 1601 Lind Avenue, SW., Renton, WA 98057; telephone
(425)917-6726. SUPPLEMENTARY INFORMATION: Comments Invited Interested parties are invited to participate in this proposed rulemaking by submitting such written data, views, or arguments, as they may desire. Comments that provide the factual basis supporting the views and suggestions presented are particularly helpful in developing reasoned regulatory decisions on the proposal. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal. Communications should identify both docket numbers (FAA Docket No. FAA 2007-29164 and Airspace Docket No. 07-ANM-14) and be submitted in triplicate to the Docket Management System (see ADDRESSES section for address and phone number). You may also submit comments through the Internet at *http://www.regulations.gov* . Commenters wishing the FAA to acknowledge receipt of their comments on this action must submit with those comments a self-addressed stamped postcard on which the following statement is made: “Comments to FAA Docket No. FAA-2007-29164 and Airspace Docket No. 07-ANM-14”. The postcard will be date/time stamped and returned to the commenter. All communications received on or before the specified closing date for comments will be considered before taking action on the proposed rule. The proposal contained in this action may be changed in light of comments received. All comments submitted will be available for examination in the public docket both before and after the closing date for comments. A report summarizing each substantive public contact with FAA personnel concerned with this rulemaking will be filed in the docket. Availability of NPRM's An electronic copy of this document may be downloaded through the Internet at *http://www.regulations.gov* . Recently published rulemaking documents can also be accessed through the FAA's web page at *http://www.faa.gov* or the Federal Register's web page at *http://www.gpoaccess.gov/fr/index.html* . You may review the public docket containing the proposal, any comments received, and any final disposition in person in the Dockets Office (see the ADDRESSES section for the address and phone number) between 9 a.m. and 5 p.m., Monday through Friday, except federal holidays. An informal docket may also be examined during normal business hours at the Northwest Mountain Regional Office of the Federal Aviation Administration, Air Traffic Organization, Western Service Area, System Support Group, 1601 Lind Avenue, SW., Renton, WA 98057. Persons interested in being placed on a mailing list for future NPRM's should contact the FAA's Office of Rulemaking,
(202)267-9677, for a copy of Advisory Circular No. 11-2A, Notice of Proposed Rulemaking Distribution System, which describes the application procedure. The Proposal The FAA is proposing an amendment to Title 14 Code of Federal Regulations (14 CFR) part 71 by establishing Class E airspace at Pagosa Springs, CO. Controlled airspace is necessary to accommodate aircraft using the new RNAV
(GPS)SIAP at Stevens Field. This action would enhance the safety and management of aircraft operations at Stevens Field, Pagosa Springs, CO. Class E airspace designations are published in paragraph 6005 of FAA Order 7400.9R, signed August 15, 2007, and effective September 15, 2007, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designation listed in this document will be published subsequently in this Order. The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. Therefore, this proposed regulation;
(1)is not a “significant regulatory action” under Executive Order 12866;
(2)is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and
(3)does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, would not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. The FAAs authority to issue rules regarding aviation safety is found in Title 49 of the U.S. Code. Subtitle 1, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of the airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it establishes additional controlled airspace at Stevens Field, Pagosa Springs, CO. List of Subjects in 14 CFR Part 71 Airspace, Incorporation by reference, Navigation (air). The Proposed Amendment Accordingly, pursuant to the authority delegated to me, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows: PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS 1. The authority citation for 14 CFR part 71 continues to read as follows: Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389. § 71.1 [Amended] 2. The incorporation by reference in 14 CFR 71.1 of the FAA Order 7400.9R, Airspace Designations and Reporting Points, signed August 15, 2007, and effective September 15, 2007 is amended as follows: Paragraph 6005 Class E airspace areas extending upward from 700 feet or more above the surface of the earth. ANM CO, E5 Pagosa Springs, CO [New] Stevens Field, Pagosa Springs, CO (Lat. 37°17′11″ N., long. 107°3′22″ W.) That airspace extending upward from 700 feet above the surface within a 10.0 mile radius of Stevens Field and within 8.0 miles each side of the 169° bearing from the Airport extending from the 10.0 mile radius to 25.0 miles south of the Airport. Issued in Seattle, Washington, on December 21, 2007. Clark Desing, Manager, System Support Group, Western Service Area. [FR Doc. E8-850 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA-2007-0205; Airspace Docket No. 07-ANM-17] Proposed Establishment of Class E Airspace; Walden, CO AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking. SUMMARY: This action proposes to establish Class E airspace at Walden-Jackson County Airport, Walden CO. Additional controlled airspace is necessary to accommodate aircraft using a new Area Navigation
(RNAV)Global Positioning System
(GPS)Standard Instrument Approach Procedure
(SIAP)at Walden-Jackson County Airport, Walden, CO. The FAA is proposing this action to enhance the safety and management of aircraft operations at Walden-Jackson County Airport, Walden, CO. DATES: Comments must be received on or before March 3, 2008. ADDRESSES: Send comments on this proposal to the U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. Telephone
(202)366-9826. You must identify FAA Docket No. FAA-2007-0205; Airspace Docket No. 07-ANM-17, at the beginning of your comments. You may also submit comments through the Internet at *http://www.regulations.gov* . FOR FURTHER INFORMATION CONTACT: Eldon Taylor, Federal Aviation Administration, System Support Group, Western Service Area, 1601 Lind Avenue, SW., Renton, WA 98057; telephone
(425)203-4537. SUPPLEMENTARY INFORMATION: Comments Invited Interested parties are invited to participate in this proposed rulemaking by submitting such written data, views, or arguments, as they may desire. Comments that provide the factual basis supporting the views and suggestions presented are particularly helpful in developing reasoned regulatory decisions on the proposal. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal. Communications should identify both docket numbers (FAA Docket No. FAA 2007-0205 and Airspace Docket No. 07-ANM-17) and be submitted in triplicate to the Docket Management System (see ADDRESSES section for address and phone number). You may also submit comments through the Internet at *http://www.regulations.gov* . Commenters wishing the FAA to acknowledge receipt of their comments on this action must submit with those comments a self-addressed stamped postcard on which the following statement is made: “Comments to FAA Docket No. FAA-2007-0205 and Airspace Docket No. 07-ANM-17”. The postcard will be date/time stamped and returned to the commenter. All communications received on or before the specified closing date for comments will be considered before taking action on the proposed rule. The proposal contained in this action may be changed in light of comments received. All comments submitted will be available for examination in the public docket both before and after the closing date for comments. A report summarizing each substantive public contact with FAA personnel concerned with this rulemaking will be filed in the docket. Availability of NPRM's An electronic copy of this document may be downloaded through the Internet at *http://www.regulations.gov* . Recently published rulemaking documents can also be accessed through the FAA's Web page at *http://www.faa.gov* or the **Federal Register** 's Web page at *http://www.gpoaccess.gov/fr/index.html* . You may review the public docket containing the proposal, any comments received, and any final disposition in person in the Dockets Office (see the ADDRESSES section for the address and phone number) between 9 a.m. and 5 p.m., Monday through Friday, except federal holidays. An informal docket may also be examined during normal business hours at the Northwest Mountain Regional Office of the Federal Aviation Administration, Air Traffic Organization, Western Service Area, System Support Group, 1601 Lind Avenue, SW., Renton, WA 98057. Persons interested in being placed on a mailing list for future NPRM's should contact the FAA's Office of Rulemaking,
(202)267-9677, for a copy of Advisory Circular No. 11-2A, Notice of Proposed Rulemaking Distribution System, which describes the application procedure. The Proposal The FAA is proposing an amendment to Title 14 Code of Federal Regulations (14 CFR) part 71 by establishing Class E airspace at Walden-Jackson County Airport, Walden, CO. Controlled airspace is necessary to accommodate aircraft using the new RNAV
(GPS)SIAP at Walden-Jackson County Airport, Walden, CO. This action would enhance the safety and management of aircraft operations at Walden-Jackson County Airport, Walden, CO. Class E airspace designations are published in paragraph 6005 of FAA Order 7400.9R, signed August 15, 2007, and effective September 15, 2007, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designation listed in this document will be published subsequently in this Order. The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. Therefore, this proposed regulation;
(1)is not a “significant regulatory action” under Executive Order 12866;
(2)is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and
(3)does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, would not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the U.S. Code. Subtitle 1, Section 106, describes the authority for the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of the airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it establishes additional controlled airspace at Walden-Jackson County Airport, Walden, CO. List of Subjects in 14 CFR Part 71 Airspace, Incorporation by reference, Navigation (air). The Proposed Amendment Accordingly, pursuant to the authority delegated to me, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows: PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS 1. The authority citation for 14 CFR part 71 continues to read as follows: Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389. § 71.1 [Amended] 2. The incorporation by reference in 14 CFR 71.1 of the FAA Order 7400.9R, Airspace Designations and Reporting Points, signed August 15, 2007, and effective September 15, 2007 is amended as follows: Paragraph 6005 Class E airspace areas extending upward from 700 feet or more above the surface of the earth. ANM CO, E5 Walden, CO [New] Walden-Jackson County Airport, CO (Lat. 40°45′0″ N., long. 106°16′17″ W.) That airspace extending upward from 700 feet above the surface within a 5-mile radius of Walden-Jackson County Airport, and within 4 miles each side of the 342° bearing from the airport extending from the 5-mile radius to V524 northwest of the airport. Issued in Seattle, Washington, on January 3, 2008. Clark Desing, Manager, System Support Group, Western Service Area. [FR Doc. E8-844 Filed 1-17-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF JUSTICE Drug Enforcement Administration 21 CFR Part 1309 [Docket No. DEA-294P] RIN 1117-AB09 Registration Requirements for Importers and Manufacturers of Prescription Drug Products Containing Ephedrine, Pseudoephedrine, or Phenylpropanolamine AGENCY: Drug Enforcement Administration (DEA), Justice. ACTION: Notice of proposed rulemaking. SUMMARY: The Combat Methamphetamine Epidemic Act of 2005 (CMEA), which was enacted on March 9, 2006, requires DEA to establish an assessment of annual need for the importation and manufacture of ephedrine, pseudoephedrine, and phenylpropanolamine. Because of the new CMEA mandates for importation, import quotas, and production quotas for these chemicals, DEA must revise its registration provisions. The changes made by the CMEA render current DEA regulations inadequate for two reasons. First, although DEA registers bulk manufacturers of the three chemicals in the United States and importers of the bulk chemicals, some of those chemicals are distributed to non-registered companies that process them into prescription drugs. Under the Controlled Substances Act, section 826, production quotas are available only to registered manufacturers. DEA cannot meet the CMEA mandate to establish annual need and import quotas, and then issue individual quotas for each of the chemicals unless all manufacturers manufacturing or procuring the chemicals and manufacturing drug products that contain the chemicals are registered as manufacturers, even if the distribution of the final drug products is not regulated. DEA also must know the quantity of prescription drug products containing the three chemicals being imported. Without this information, DEA would not be able to determine an assessment of annual need for these chemicals. Any person importing prescription drug products containing any of the three chemicals must register although the distribution of these products would not be subject to DEA regulation. Second, persons currently registered to import, distribute, or dispense controlled substances who manufacture drug products using ephedrine, pseudoephedrine, or phenylpropanolamine, are not necessarily registered to do so. This must also be changed so that controlled substance registrants will only receive a waiver from the requirement of separate chemical registration if they engage in the same activity for both lawfully marketed drug products containing List I chemicals and controlled substances (as is already the case for bulk manufacture, imports, and exports.) In this way, any registrant that must obtain a quota to manufacture or procure one or more of the chemicals will be a registered manufacturer, as required by the CSA. Were DEA not to issue this rule, it would have no mechanism to issue production or import quotas for persons handling prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine. If these persons were not required to register, there would be no mechanism by which they would be permitted to apply for production or import quotas. Therefore, these persons would have no means by which to acquire the List I chemicals ephedrine, pseudoephedrine, or phenylpropanolamine necessary for them to conduct business. Accordingly, DEA is proposing to amend its registration regulations to ensure that every location that manufactures or imports one of these chemicals or drug products that contain ephedrine, pseudoephedrine, or phenylpropanolamine is a DEA registered manufacturer or importer. These amendments will make it possible to establish the system of quotas and assessment of annual needs for the manufacturing that Congress mandated for ephedrine, pseudoephedrine, and phenylpropanolamine. DATES: Written comments must be postmarked, and electronic comments must be sent, on or before March 18, 2008. ADDRESSES: To ensure proper handling of comments, please reference “Docket No. DEA-204” on all written and electronic correspondence. Written comments being sent via regular mail should be sent to the Deputy Assistant Administrator, Office of Diversion Control, Drug Enforcement Administration, Washington, DC 20537, Attention: DEA Federal Register Representative/ODL. Written comments sent via express mail should be sent to DEA Headquarters, Attention: DEA Federal Register Representative/ODL, 2401 Jefferson-Davis Highway, Alexandria, VA 22301. Comments may be directly sent to DEA electronically by sending an electronic message to *dea.diversion.policy@usdoj.gov* . Comments may also be sent electronically through *http://www.regulations.gov* using the electronic comment form provided on that site. An electronic copy of this document is also available at the *http://www.regulations.gov* Web site. DEA will accept attachments to electronic comments in Microsoft Word, WordPerfect, Adobe PDF, or Excel file formats only. DEA will not accept any file formats other than those specifically listed here. *Posting of Public Comments:* Please note that all comments received are considered part of the public record and made available for public inspection online at *http://www.regulations.gov* and in the Drug Enforcement Administration's public docket. Such information includes personal identifying information (such as your name, address, etc.) voluntarily submitted by the commenter. If you want to submit personal identifying information (such as your name, address, etc.) as part of your comment, but do not want it to be posted online or made available in the public docket, you must include the phrase “PERSONAL IDENTIFYING INFORMATION” in the first paragraph of your comment. You must also place all the personal identifying information you do not want posted online or made available in the public docket in the first paragraph of your comment and identify what information you want redacted. If you want to submit confidential business information as part of your comment, but do not want it to be posted online or made available in the public docket, you must include the phrase “CONFIDENTIAL BUSINESS INFORMATION” in the first paragraph of your comment. You must also prominently identify confidential business information to be redacted within the comment. If a comment has so much confidential business information that it cannot be effectively redacted, all or part of that comment may not be posted online or made available in the public docket. Personal identifying information and confidential business information identified and located as set forth above will be redacted and the comment, in redacted form, will be posted online and placed in the Drug Enforcement Administration's public docket file. If you wish to inspect the agency's public docket file in person by appointment, please see the FOR FURTHER INFORMATION CONTACT paragraph. FOR FURTHER INFORMATION CONTACT: Mark W. Caverly, Chief, Liaison and Policy Section, Office of Diversion Control, Drug Enforcement Administration, Washington DC 20537 at
(202)307-7297. SUPPLEMENTARY INFORMATION: DEA's Legal Authority DEA implements the Comprehensive Drug Abuse Prevention and Control Act of 1970, often referred to as the Controlled Substances Act
(CSA)and the Controlled Substances Import and Export Act (21 U.S.C. 801-971), as amended. DEA publishes the implementing regulations for these statutes in Title 21 of the Code of Federal Regulations (CFR), Parts 1300 to 1399. These regulations are designed to ensure that there is a sufficient supply of controlled substances for legitimate medical, scientific, and industrial purposes and to deter the diversion of controlled substances to illegal purposes. The CSA mandates that DEA establish a closed system of control for manufacturing, distributing, and dispensing controlled substances. Any person who manufactures, distributes, dispenses, imports, exports, or conducts research or chemical analysis with controlled substances must register with DEA (unless exempt) and comply with the applicable requirements for the activity. The CSA as amended also requires DEA to regulate the manufacture, distribution, import, and export of chemicals that may be used to manufacture controlled substances illegally. Listed chemicals that are classified as List I chemicals are important to the manufacture of controlled substances. Those classified as List II chemicals may be used to manufacture controlled substances. On March 9, 2006, the President signed the Combat Methamphetamine Epidemic Act of 2005 (CMEA), which is Title VII of the USA PATRIOT Improvement and Reauthorization Act of 2005 (Pub. L. 109-177). Much of CMEA is self-implementing; the provisions related to importation of ephedrine, pseudoephedrine, and phenylpropanolamine, import quotas, manufacturing quotas, and procurement quotas became effective on March 9, 2006. CMEA Requirements and Impact on Registration CMEA amended the CSA to include ephedrine, pseudoephedrine, and phenylpropanolamine in 21 U.S.C. 826 (Production quotas for controlled substances) and section 952(a) (Importation of controlled substances). Congress essentially imposed the same requirements for importation of ephedrine, pseudoephedrine, and phenylpropanolamine as are imposed on narcotic raw materials—crude opium, poppy straw, concentrate of poppy straw, and coca leaves. That is, imports of ephedrine, pseudoephedrine, and phenylpropanolamine are prohibited except for such amounts as the Attorney General (DEA by delegation) finds to be necessary to provide for medical, scientific, or other legitimate purposes. Congress also imposed the same requirements on the manufacture of ephedrine, pseudoephedrine, and phenylpropanolamine as are established for Schedule I and II controlled substances. That is, Congress mandated the establishment of a total need for ephedrine, pseudoephedrine, and phenylpropanolamine to be manufactured each calendar year to provide for the estimated medical, scientific, research, and industrial needs of the United States, for lawful export requirements, and for the establishment and maintenance of reserve stocks. These requirements apply equally to products containing these three List I chemicals as they do to the List I chemicals themselves. Controlled substances are subject to a closed system of controls that ensures that no person may manufacture, distribute, import, export, or dispense unless that person is a DEA registrant, or exempted from the requirement of registration. Production of Schedule I and II controlled substances is limited to the quantity that DEA has determined is required to meet the legitimate medical, scientific, research, and industrial needs of the United States; for lawful export requirements; and for establishment and maintenance of reserve stocks (21 U.S.C. 826(a)). After DEA establishes the total annual need, DEA issues individual manufacturing and procurement quotas to manufacturers; under section 826, quotas may be issued only to registered manufacturers. Manufacturers may not produce or purchase more of a substance than is available under their individual quotas. Under the CSA, “manufacture” is defined to include all of the following: • The manufacturing of a substance or chemical in bulk, either by extraction from raw materials, chemical synthesis, or a combination of extraction and chemical synthesis. • The processing of the substance or chemical into products, such as drugs in dosage form. • The packaging or repackaging of the processed substances or chemicals or labeling or relabeling of containers holding the chemicals. Until the passage of CMEA, chemical importers were required to notify DEA of imports of ephedrine, pseudoephedrine, and phenylpropanolamine before or at the time of importation under 21 U.S.C. 971. DEA had no authority to limit the importation or manufacture of ephedrine, pseudoephedrine, and phenylpropanolamine, except the ability to suspend a proposed import under 21 U.S.C. 971 on the ground that it may be diverted to the clandestine manufacture of a controlled substance. Most of the ephedrine, pseudoephedrine, and phenylpropanolamine used in the United States is imported rather than manufactured domestically, although at least one company in the United States manufactures the chemicals in bulk. The three chemicals are used to produce drug products lawfully marketed under the Federal Food, Drug and Cosmetic Act (FFD&CA), many of which are prescription drugs. DEA has not subjected these prescription drug products to all List I chemical regulatory requirements because they are available only in response to a prescription and are stored in and dispensed at pharmacies. These chemicals are also used in over-the-counter
(OTC)drug products (lawfully marketed under the FFD&CA). These products have been widely used in the illegal manufacture of methamphetamine and amphetamine. CMEA defined these OTC drug products as scheduled listed chemical products. DEA has regulated the distribution, import, and export of scheduled listed chemical products. DEA, in 1995, first imposed registration requirements on firms that manufacture, distribute, import, and export List I chemicals. Although section 822 of the CSA states that any person who manufactures or distributes a controlled substance or List I chemical must register with DEA, DEA limited chemical registration for manufacturers to firms that manufacture to distribute List I chemicals. Some manufacturers were not required to register under the “manufacture for distribution” policy. Those that manufactured and chemically consumed and transformed all of the chemical in their own processes; those that purchased List I chemicals in bulk and manufactured prescription drug products that contain a List I chemical; and those that repackaged or relabeled prescription drug products that contain a List I chemical were not required to obtain a DEA chemical registration. Firms that manufacture a List I chemical in bulk and distribute to wholesalers or to other manufacturers were already required to register and file reports with DEA. Firms that manufacture scheduled listed chemical products (nonprescription/OTC drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine) also distribute those products, were already required to obtain a DEA chemical registration. As a consequence of the “manufacture for distribution” policy, firms that manufactured prescription drugs containing ephedrine, pseudoephedrine, and phenylpropanolamine were not required to register because distributions of the prescription drug products were not regulated. DEA, in § 1309.22, listed only four activities involving List I chemicals that required registration: Retail distributing, non-retail distributing, importing, and exporting. On the application for registration form, firms were required to indicate whether they were seeking to be registered as manufacturers or distributors (e.g., wholesalers), but the regulation did not distinguish between those who manufacture to distribute and those who simply distribute. In addition, in § 1309.24, DEA waived the chemical distribution registration requirement for firms that manufacture or distribute drug products lawfully marketed under the FFD&CA containing the three chemicals for any firm that is registered to manufacture, distribute, or dispense a controlled substance. Note that this waiver (from the requirement to obtain a separate DEA chemical registration) was only provided for drug products containing a listed chemical which is in final packaged/labeled form which is lawfully marketed under the FFD&CA. Drug products not in final packaged/labeled form were not provided this waiver. For example, an importer of bulk tablets containing a listed chemical, intended for a drug product marketed in the United States, would still have to obtain a chemical importer registration, and would not be able to use their controlled substance registration for such activity. The waiver does not apply in the reverse; a firm that handles controlled substances must register for the applicable controlled substance activity even if it is already registered to conduct the same activity with List I chemicals. As a consequence of these decisions, there are firms manufacturing drug products lawfully marketed under the FFD&CA containing ephedrine, pseudoephedrine, or phenylpropanolamine that are not registered with DEA at all because they do not handle controlled substances and the only products they produce containing the three chemicals are prescription drugs. There are also firms that manufacture scheduled listed chemical products, but only distribute or dispense controlled substances. Because they are registered as controlled substance distributors or dispensers, they are not currently required to register as chemical manufacturers. Finally, there may be some firms that are not registered that import prescription drug products that contain the three chemicals. Because of the new CMEA mandates for importation, import quotas, and production quotas for these chemicals, DEA is proposing to revise its registration provisions. The changes made by the CMEA render current DEA regulations inadequate for two reasons. First, although DEA registers bulk manufacturers of the three chemicals in the United States and importers of the bulk chemicals, some of those chemicals are distributed to non-registered companies that process them into prescription drugs. Under the CSA section 826, production quotas are available only to registered manufacturers. DEA cannot meet the CMEA mandate to establish an annual need and import quotas, and then issue individual quotas for each of the chemicals unless all manufacturers manufacturing or procuring the chemicals and manufacturing drug products that contain the chemicals are registered as manufacturers, even if the distribution of the final drug products is not regulated. DEA also must know the quantity of prescription drug products containing the three chemicals being imported; without this information, DEA would not be able to determine an assessment of annual need for the chemicals. Any person importing prescription drug products containing any of the three chemicals must register although the distribution of these products would not be subject to DEA regulation. The second inadequacy is that the existing language allows a controlled substance distributor or dispenser to avoid registration as a chemical manufacturer if they manufacture scheduled listed chemical products or other products containing a List I chemical that is described and included in the definition of “regulated transaction” in § 1300.02(b)(28)(i)(D). (DEA notes that there may be a limited number of drug products containing List I chemicals other than ephedrine, pseudoephedrine, and phenylpropanolamine which meet this description.) This provision must also be changed so that controlled substance registrants will not need to obtain a chemical registration only if they engage in the same activity for both drug products containing List I chemicals and controlled substances as is already the case for bulk manufacture, imports, and exports. In this way, any registrant that must obtain a quota to manufacture or procure one or more of the chemicals will be a registered manufacturer, as required by the CSA. DEA recognizes that this change will require some manufacturers and locations to register that had not previously been subject to DEA regulations; other registrants will be required to obtain separate registrations for chemicals and controlled substances. The proposed new requirements, however, are both consistent with the statutory language on registration and the CMEA amendments and with the intent of the CMEA requirements to establish a system of quotas for the manufacture of these three chemicals and the products that contain them. Without these changes, DEA would not be able to meet the CMEA mandates. In addition, without these changes, companies that manufacture and import prescription drug products containing the three chemicals would not be able to purchase the chemicals legally nor would the assessment of annual needs reflect their requirements. Explanation of DEA Categories of Registration and Effect of This Rule Regarding DEA Registration As noted above, the CSA defines the term “manufacture” to include the physical manufacture of a chemical or product, as well as the packaging, labeling, repackaging, and relabeling of that product (21 U.S.C. 802(15)). If this rule is finalized as proposed, persons who manufacture or import ephedrine, pseudoephedrine, or phenylpropanolamine, or who manufacture or import a product containing ephedrine, pseudoephedrine, or phenylpropanolamine, or who plan to engage in such activities, would be required to register with DEA if they are not already registered for the appropriate business activity. As required by the CSA, registration is location-specific; a person must obtain a registration for each principal place of business at one general physical location where controlled substances or List I chemicals are handled. If a person manufactures controlled substances at one location and drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine at another location, the person would be required to obtain a separate registration for each location. Under the waiver previously described in this rulemaking, persons who are currently registered as controlled substances manufacturers at a location where drug products containing these List I chemicals are also manufactured would not be required to register separately to conduct the same activity, manufacturing, with these List I chemicals. A controlled substances registration for that one physical location would cover both the manufacturing of controlled substances and drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine, at that location. Controlled substances manufacturers would, however, be required to identify to DEA the List I chemicals ephedrine, pseudoephedrine, and phenylpropanolamine they handle as part of their next registration renewal. DEA notes that the manufacture of bulk List I chemicals requires a separate chemical registration; this is not a change from existing regulations. However, if a person manufactures a drug product containing ephedrine, pseudoephedrine, or phenylpropanolamine at a location, but is registered to conduct other (nonmanufacturing) activities with controlled substances at that location (e.g., distribution), the person would need to obtain a List I chemical manufacturing registration for the location. The following table indicates the changes in registration requirements being proposed for various business activities. Current Proposed Chemical Manufacturers (No Controlled Substances) All bulk manufacturers of List I chemicals must register unless all of the chemical produced is consumed internally and is not available for use in products No change. Manufacturers of scheduled listed chemical products register if distribute Manufacturers of prescription products ** containing List I chemicals do not register. All manufacturers of drug products containing List I chemicals * would register. Chemical Distributors Distributors of List I chemicals and scheduled listed chemical products register Distributors of prescription products ** containing List I chemicals do not register. No change. Chemical Importers and Exporters Importers of List I chemicals and scheduled listed chemical products register Importers of prescription products ** containing List I chemicals do not register. Importers of List I chemicals and all drug products containing List I chemicals * would register. Exporters of List I chemicals and scheduled listed chemical products register Exporters of prescription products ** containing List I chemicals do not register. No change. Manufacturers and Distributors of Controlled Substances and Drug Products Containing List I Chemicals Manufacturers of both controlled substances and drug products containing List I chemicals may register as only controlled substance manufacturers No change. Manufacturers of drug products containing any List I chemical * who distribute or dispense controlled substances may register for only their controlled substance activity. A separate registration for the chemical activity is permissible Manufacturers of drug products containing any List I chemical * would register as manufacturers. If they distribute or dispense controlled substances they would register separately for those activities. Distributors of both controlled substances and drug products containing List I chemicals may register as only controlled substance distributors No change. Importers/Exporters of Controlled Substances and Drug Products Containing List I Chemicals Importers of both controlled substances and drug products containing List I chemicals register as controlled substance importers No change. Exporters of both controlled substances and drug products containing List I chemicals register as controlled substance exporters No change. Manufacturers, Distributors, Importers, and Exporters of Bulk List I Chemicals Manufacturers, distributors, importers, and exporters of bulk List I chemicals register, regardless of whether they handle controlled substances No change. * “Drug products containing List I chemicals” refers to scheduled listed chemical products or other products containing a List I chemical that is described and included in the definition of “regulated transaction” in § 1300.02(b)(28)(i)(D). Such drug products must be in packaged/labeled form as required under the FFD&CA for lawful marketing. ** “Prescription products,” for purposes of this chart, refers to “any transaction in a List I chemical that is contained in a drug that may be marketed or distributed lawfully in the United States under the Federal Food, Drug, and Cosmetic Act * * *” (21 U.S.C. 802(39)(a)(iv)). To comply with the marketing and distribution requirements of the Federal Food, Drug, and Cosmetic Act for prescription drugs, such drugs must be packaged and labeled in accordance with the Federal Food, Drug and Cosmetic Act as prescription drugs. Proposed Requirements of This Rule DEA is proposing that a person who manufactures or imports a prescription drug product containing ephedrine, pseudoephedrine, or phenylpropanolamine would be required to comply with the following: *Registration.* Any person who manufactures or imports a drug product containing ephedrine, pseudoephedrine, or phenylpropanolamine, or proposes to engage in the manufacture or importation of a drug product containing ephedrine, pseudoephedrine, or phenylpropanolamine, would be required to obtain a registration under the CSA (21 U.S.C. 822 and 958). Regulations describing registration for List I chemical handlers are set forth in 21 CFR part 1309. A separate registration is required for manufacturing, distribution, importing, and exporting, except that a person registered to manufacture or import a List I chemical or a product containing ephedrine, pseudoephedrine, or phenylpropanolamine may distribute that List I chemical or drug product without obtaining a separate registration to do so. A separate registration is required for each principal place of business at one general physical location where the List I chemicals are manufactured, distributed, imported, or exported by a person (21 CFR 1309.23). As a result of the change, any person manufacturing or importing a prescription drug product containing ephedrine, pseudoephedrine, or phenylpropanolamine would become subject to the registration requirement under the CSA. DEA recognizes, however, that it is not possible for persons who would be newly subject to the registration requirement to complete and submit an application for registration and for DEA to issue registrations for those activities immediately. Therefore, to allow continued legitimate commerce, DEA is proposing to establish in § 1309.25 a temporary exemption from the registration requirement for persons desiring to engage in manufacturing or importing prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine, provided that DEA receives a properly completed application for registration on or before 30 days from the date of publication of a Final Rule in the **Federal Register** . The temporary exemption for such persons will remain in effect until DEA takes final action on their application for registration. The temporary exemption applies solely to the registration requirement; all other chemical control requirements, including recordkeeping and reporting, will remain in effect. Additionally, the temporary exemption does not suspend applicable Federal criminal laws relating to these chemicals, nor does it supersede State or local laws or regulations. All manufacturers and importers of ephedrine, pseudoephedrine, or phenylpropanolamine, or any product containing any of these three List I chemicals, must comply with applicable State and local requirements in addition to the CSA regulatory controls. *Importation.* All persons importing ephedrine, pseudoephedrine, or phenylpropanolamine, or drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine would be required to comply with all requirements regarding importation. *Records and Reports.* The CSA (21 U.S.C. 830) requires certain records to be kept and reports to be made involving listed chemicals. Regulations describing recordkeeping and reporting requirements are set forth in 21 CFR part 1310. A record must be made and maintained for two years after the date of a regulated transaction involving a List I chemical. Each regulated bulk manufacturer of a regulated mixture must submit manufacturing, inventory, and use data on an annual basis (21 CFR 1310.05(d)). Bulk manufacturers producing the chemicals solely for internal consumption are not required to submit this information; internal consumption does not include using the chemical to produce drug products. Existing standard industry reports containing the required information are acceptable, provided the information is readily retrievable from the report. Under 21 CFR 1310.05, regulated persons are required to report to DEA any regulated transaction involving an extraordinary quantity, an uncommon method of payment or delivery, or any other circumstance that causes the regulated person to believe that the listed chemical will be used in violation of the CSA. Regulated persons are also required to report to DEA any proposed regulated transaction with a person whose description or other identifying information has been furnished to the regulated person. Finally, regulated persons are required to report any unusual or excessive loss or disappearance of a listed chemical. *Security.* All applicants and registrants must provide effective controls against theft and diversion of chemicals as described in 21 CFR 1309.71. *Administrative Inspection.* Places, including factories, warehouses, or other establishments and conveyances, where regulated persons may lawfully hold, manufacture, distribute, dispense, administer, or otherwise dispose of ephedrine, pseudoephedrine, or phenylpropanolamine, or products containing ephedrine, pseudoephedrine, or phenylpropanolamine, or where records relating to those activities are maintained, are controlled premises as defined in 21 CFR 1316.02(c). The CSA (21 U.S.C. 880) allows for administrative inspections of these controlled premises as provided in 21 CFR part 1316, subpart A. Section by Section Analysis of Proposed Rule Changes DEA is proposing to amend §§ 1309.11 and 1309.12 to replace “manufacture for distribution” with “manufacture.” In addition, in both sections, DEA is proposing to remove references to retail distributors. In amendments to 21 U.S.C. 823(h) the CMEA expressly stated that distributors of scheduled listed chemical products at retail are not required to register under the Controlled Substances Act. To avoid confusion, DEA decided to address all registration revisions related to CMEA implementation in this rulemaking. Section 1309.21 is proposed to be revised to state that every person who manufactures or proposes to manufacture a List I chemical or a drug product containing a List I chemical must register. The change would require manufacturers of prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine to register even though they are not required to register to distribute or export the products. DEA is also proposing to add a table to the section, similar to the table in § 1301.13 on controlled substance registration requirements, to summarize the requirements for each business activity. As discussed above, this revision would not alter the registration requirements for bulk manufacturers of List I chemicals and for manufacturers of scheduled listed chemical products. Section 1309.22 is proposed to be revised to remove retail distributing as a registration activity and to add manufacturing. As explained above, CMEA explicitly states that retail distributors of scheduled listed chemical products are not required to register. DEA is also proposing to add a new paragraph to state that a person registered to manufacture a List I chemical is authorized to distribute that chemical under the manufacturing registration. The registrant may not distribute, under a manufacturer's registration, any List I chemical that is not covered in the manufacturing registration. This limitation parallels the existing limitation for importers. In § 1309.24 paragraph
(b)is proposed to be revised to clarify that a person who manufactures or distributes a scheduled listed chemical product or other product containing a List I chemical that is described and included in the definition of “regulated transaction” in § 1300.02(b)(28)(i)(D) is exempted from registration only if registered to conduct the same activity with controlled substances. Paragraph
(c)is proposed to be revised to clarify that a person who imports or exports a scheduled listed chemical product or other product containing a List I chemical that is described and included in the definition of “regulated transaction” in § 1300.02(b)(28)(i)(D) is exempted from registration only if registered to conduct the same activity with controlled substances. Paragraph
(e)waiving registration for retail distributors is proposed to be removed because CMEA statutorily does not require them to register. The remaining paragraphs
(f)through
(l)would be redesignated
(e)through (k). DEA notes that the waiver of the requirement of registration continues for bulk manufacturers who manufacture and consume all of the List I chemical internally. Regulatory Certifications Regulatory Flexibility Act The Deputy Assistant Administrator hereby certifies that this rulemaking has been drafted in accordance with the provisions of the Regulatory Flexibility Act (5 U.S.C. 601-612). The Combat Methamphetamine Epidemic Act of 2005 amended the Controlled Substances Act to require production quotas for manufacturers handling the List I chemicals ephedrine, pseudoephedrine, and phenylpropanolamine. CMEA also authorized the Attorney General (DEA by delegation), to establish import quotas for ephedrine, pseudoephedrine, and phenylpropanolamine. The Controlled Substances Act requires that quotas be issued to registrants. Were DEA not to issue this rule, it would have no mechanism to permit the registration of persons handling prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine. If these persons were not permitted to register, there would be no mechanism by which they would be permitted to apply for production or import quotas. Therefore, these persons would have no means by which to acquire the List I chemicals ephedrine, pseudoephedrine, or phenylpropanolamine necessary for them to conduct business. This rule proposes to codify provisions necessary for implementation of the Combat Methamphetamine Epidemic Act. As discussed further below, DEA has examined the potential impacts of this rule. DEA has no basis for estimating the number of firms that may be small, but given the definition of small entities, it is likely that a substantial number of the new registrants will be small. The cost of compliance, however, would not impose a significant economic burden. The only cost is the $2,293 registration fee for manufacturers, and the $1,147 registration fee for importers, respectively. The recordkeeping and reporting requirements can be met using existing business and manufacturing records. The security provisions are general and require the registrant to provide effective controls and procedures to guard against theft and and diversion of List I chemicals. Any manufacturer approved by the FDA and complying with good manufacturing practices or currently registered to handle controlled substances will have internal controls that meet this requirement. The smallest pharmaceutical firms (with 1 to 4 employees) had an average value of shipments of $824,000 in 2002 ($886,000 in 2007 dollars, based on GDP). Even for these firms, which are unlikely to be producing the covered drug products, the $2,293 registration fee would represent less than 0.3 percent of sales and, therefore, is not a significant burden. Therefore, this rule will not have a significant economic impact on a substantial number of small entities. Executive Order 12866 The Deputy Assistant Administrator further certifies that this rulemaking has been drafted in accordance with the principles in Executive Order 12866 section 1(b). It has been determined that this is “a significant regulatory action.” Therefore, this action has been reviewed by the Office of Management and Budget. As discussed above, this action is necessary to implement statutory provisions. DEA has, nonetheless, reviewed the potential costs. DEA has a limited basis for determining the number of manufacturers of prescription drug products that will need to obtain a DEA registration for the first time. DEA reviewed a list of pseudoephedrine products and ephedrine prescription drug products and identified 230 firms based on their labeler codes. Of all firms identified, 164 do not appear to be registered with DEA as manufacturers and 95 are not registered as either manufacturers or controlled substance distributors. The firms currently registered to manufacture controlled substances may not manufacture List I chemical drugs at the same locations. Seventy firms are currently registered as controlled substance distributors. There may be some firms that import prescription drug products that are not now registered to import either controlled substances or List I chemicals. DEA estimates that approximately 200 firms may have to obtain a new DEA registration. As noted above, the only cost imposed by the rule is the registration fee of $2,293 for the registration of each manufacturing location, and $1,147 for each importing location. The total cost of these rule changes will be less than $500,000. The cost to individual firms is relatively small, compared with their revenues. The benefit of the rule is that it will make it possible for DEA to meet the statutory mandate to assess the annual need for the chemicals accurately and provide manufacturers with the quotas they need to continue to produce drug products containing the three chemicals. As DEA discussed throughout this rulemaking, the Controlled Substances Act provides that quotas may only be issued to registrants. Were DEA not to issue this rule, it would have no mechanism to permit the registration of persons handling prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine. If these persons were not permitted to register, there would be no mechanism by which they would be permitted to apply for production or import quotas. Therefore, these persons would have no means by which to acquire the List I chemicals ephedrine, pseudoephedrine, or phenylpropanolamine necessary for them to conduct business. Paperwork Reduction Act This Notice of Proposed Rulemaking would require that certain persons who were not previously registered with DEA obtain a registration to handle the List I chemicals ephedrine, pseudoephedrine, and phenylpropanolamine. Specifically, persons manufacturing prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine were not previously required to register, but now would be required to obtain a registration so that they may be eligible to apply for individual quotas for these List I chemicals. Additionally, importers of prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine who were not previously registered as List I chemical importers would be required to register so that they may be eligible to apply for import quotas for ephedrine, pseudoephedrine, and phenylpropanolamine. DEA estimates that approximately 200 firms may have to obtain a new DEA registration. DEA assumes that these firms complete the registration application electronically, with each application taking 15 minutes to complete. The receipt of these additional applications increases the hour burden by 50 hours annually. Therefore, DEA is proposing to revise an existing approved information collection, “Application for Registration under Domestic Chemical Diversion Control Act of 1993 and Renewal Application for Registration Under Domestic Chemical Diversion Control Act of 1993” (OMB # 1117-0031), to reflect the increase in population associated with this rule. Further, DEA is proposing to amend the forms associated with the existing approved information collection “Application for Registration (DEA Form 225) and Application for Registration Renewal (DEA Form 225a)” (OMB # 1117-0012) to include a listing of all List I chemicals on the application forms. Currently, controlled substances registrant applicants, who use these forms to apply for DEA registration, are not required to identify the List I chemicals they handle. Without this identification, it is not possible for these persons to apply for individual quotas for these chemicals. The addition of the List I chemicals will allow persons to identify which chemicals they handle. New applicants would be required to identify the List I chemicals they handle upon their initial application; persons renewing their registration will identify the chemicals at the time of their renewal. This information must merely be verified for each succeeding renewal. Thus, the addition of this list will not have a measurable effect on the time needed to complete the application. Therefore, DEA is not proposing to revise the collection itself, but rather is proposing to make changes only to the application forms themselves. The Department of Justice, Drug Enforcement Administration, has submitted the following information collection request to the Office of Management and Budget
(OMB)for review and clearance in accordance with review procedures of the Paperwork Reduction Act of 1995. The proposed information collection is published to obtain comments from the public and affected agencies. All comments and suggestions, or questions regarding additional information, to include obtaining a copy of the proposed information collection instrument with instructions, should be directed to Mark W. Caverly, Chief, Liaison and Policy Section, Office of Diversion Control, Drug Enforcement Administration, Washington, DC 20537. Written comments and suggestions from the public and affected agencies concerning the information collection-related aspects of this rule are encouraged. Your comments should address one or more of the following four points:
(1)Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
(2)Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;
(3)Enhance the quality, utility, and clarity of the information to be collected; and
(4)Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. Overview of Information Collection 1117-0031
(1)*Type of information collection:* Revision of an existing collection.
(2)*Title of form/collection:* Application for Registration under Domestic Chemical Diversion Control Act of 1993 and Renewal Application for Registration Under Domestic Chemical Diversion Control Act of 1993.
(3)*Agency form number, if any, and the applicable component of the Department of Justice sponsoring the collection:* *Form Number:* DEA Forms 510 and 510a. Office of Diversion Control, Drug Enforcement Administration, U.S. Department of Justice.
(4)Affected public who will be asked or required to respond, as well as a brief abstract: *Primary:* business or other for-profit. *Other:* Not-for-profit, government agencies. *Abstract:* The Domestic Chemical Diversion Control Act requires that manufacturers, distributors, importers, and exporters of List I chemicals which may be diverted in the United States for the production of illicit drugs must register with DEA. Registration provides a system to aid in the tracking of the distribution of List I chemicals.
(5)*An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond:* DEA estimates that 2,776 persons respond to this collection annually. DEA estimates that it takes 30 minutes for an average respondent to respond when completing the application on paper, and 15 minutes for an average respondent to respond when completing an application electronically. This application is submitted annually.
(6)*An estimate of the total public burden (in hours) associated with the collection:* DEA estimates that this collection has a public burden of 927 hours annually. Form Number of respondents Total burden hours DEA-510 (paper) 286 143 DEA-510 (electronic) 478 119.5 DEA-510a (paper) 644 322 DEA-510a (electronic) 1,368 342 Total 2,776 926.5 If additional information is required, contact: Lynn Bryant, Department Clearance Officer, Information Management and Security Staff, Justice Management Division, Department of Justice, Patrick Henry Building, Suite 1600, 601 D Street, NW., Washington, DC 20530. Executive Order 12988 This regulation meets the applicable standards set forth in §§ 3(a) and 3(b)(2) of Executive Order 12988 Civil Justice Reform. Executive Order 13132 This rulemaking does not impose enforcement responsibilities on any State; nor does it diminish the power of any State to enforce its own laws. Accordingly, this rulemaking does not have federalism implications warranting the application of Executive Order 13132. Unfunded Mandates Reform Act of 1995 This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $120,000,000 or more (adjusted for inflation) in any one year, and will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. Congressional Review Act This rule is not a major rule as defined by section 804 of the Small Business Regulatory Enforcement Fairness Act of 1996 (Congressional Review Act). This rule will not result in an annual effect on the economy of $100,000,000 or more; a major increase in costs or prices; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based companies to compete with foreign-based companies in domestic and export markets. List of Subjects in 21 CFR Part 1309 Administrative practice and procedure; Drug traffic control; Exports; Imports; Security measures. For the reasons set out above, 21 CFR part 1309 is proposed to be amended as follows: PART 1309—REGISTRATION OF MANUFACTURERS, DISTRIBUTORS, IMPORTERS AND EXPORTERS OF LIST I CHEMICALS 1. The authority citation for part 1309 continues to read as follows: Authority: 21 U.S.C. 821, 822, 823, 824, 830, 871(b), 875, 877, 886a, 958. 2. Section 1309.11 is revised to read as follows: § 1309.11 Fee amounts.
(a)For each application for registration or reregistration to manufacture the applicant shall pay an annual fee of $2,293.
(b)For each application for registration or reregistration to distribute, import, or export a List I chemical, the applicant shall pay an annual fee of $1,147. 3. Section 1309.12 is revised to read as follows: § 1309.12 Time and method of payment; refund.
(a)For each application for registration or reregistration to manufacture, distribute, import, or export, the applicant shall pay the fee when the application for registration or reregistration is submitted for filing.
(b)Payments should be made in the form of a credit card; a personal, certified, or cashier's check; or a money order made payable to “Drug Enforcement Administration.” Payments made in the form of stamps, foreign currency, or third party endorsed checks will not be accepted. These application fees are not refundable. 4. Section 1309.21 is revised to read as follows: § 1309.21 Persons required to register.
(a)Unless exempted by law or under §§ 1309.24 through 1309.26, the following persons must annually obtain a registration specific to the List I chemicals to be handled:
(1)Every person who manufactures or imports or proposes to manufacture or import a List I chemical or a drug product containing ephedrine, pseudoephedrine, or phenylpropanolamine.
(2)Every person who distributes or exports or proposes to distribute or export any List I chemical, other than those List I chemicals contained in a product exempted under § 1300.02(b)(28)(i)(D) of this chapter.
(b)Only persons actually engaged in the activities are required to obtain a registration; related or affiliated persons who are not engaged in the activities are not required to be registered. (For example, a stockholder or parent corporation of a corporation distributing List I chemicals is not required to obtain a registration.)
(c)The registration requirements are summarized in the following table: Summary of Registration Requirements and Limitations Business activity Chemicals DEA forms Application fee Registration period (years) Coincident activities allowed Manufacturing List I, Drug Products containing ephedrine, pseudoephedrine, phenylpropanolamine New—510 Renewal—510a $2,293 2,293 1 May distribute that chemical for which registration was issued; may not distribute any chemical for which not registered. Distributing List I, Scheduled listed chemical products New—510 Renewal—510a 1,147 1,147 1 Importing List I, Drug Products containing ephedrine, pseudoephedrine, phenylpropanolamine New—510 Renewal—510a 1,147 1,147 1 May distribute that chemical for which registration was issued; may not distribute any chemical for which not registered. Exporting List I, Scheduled listed chemical products New—510 Renewal—510a 1,147 1,147 1 5. Section 1309.22 is revised to read as follows: § 1309.22 Separate registration for independent activities.
(a)The following groups of activities are deemed to be independent of each other:
(1)Manufacturing of List I chemicals or drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine.
(2)Distributing of List I chemicals and scheduled listed chemical products.
(3)Importing List I chemicals or drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine.
(4)Exporting List I chemicals and scheduled listed chemical products.
(b)Except as provided in paragraphs
(c)and
(d)of this section, every person who engages in more than one group of independent activities must obtain a separate registration for each group of activities, unless otherwise exempted by the Act or §§ 1309.24 through 1309.26.
(c)A person registered to import any List I chemical shall be authorized to distribute that List I chemical after importation, but no other chemical that the person is not registered to import.
(d)A person registered to manufacture any List I chemical shall be authorized to distribute that List I chemical after manufacture, but no other chemical that the person is not registered to manufacture. 6. In § 1309.23 paragraph
(a)is revised to read as follows: § 1309.23 Separate registration for separate locations.
(a)A separate registration is required for each principal place of business at one general physical location where List I chemicals are manufactured, distributed, imported, or exported by a person. 7. Section 1309.24 is revised to read as follows: § 1309.24 Waiver of registration requirement for certain activities.
(a)The requirement of registration is waived for any agent or employee of a person who is registered to engage in any group of independent activities, if the agent or employee is acting in the usual course of his or her business or employment.
(b)The requirement of registration is waived for any person who manufactures or distributes a scheduled listed chemical product or other product containing a List I chemical that is described and included in the definition of “regulated transaction” in § 1300.02(b)(28)(i)(D), if that person is registered with the Administration to engage in the same activity with a controlled substance.
(c)The requirement of registration is waived for any person who imports or exports a scheduled listed chemical product or other product containing a List I chemical that is described and included in the definition of “regulated transaction” in § 1300.02(b)(28)(i)(D), if that person is registered with the Administration to engage in the same activity with a controlled substance.
(d)The requirement of registration is waived for any person who only distributes a prescription drug product containing a List I chemical that is regulated pursuant to § 1300.02(b)(28)(i)(D) of this chapter.
(e)The requirement of registration is waived for any person whose activities with respect to List I chemicals are limited to the distribution of red phosphorus, white phosphorus, or hypophosphorous acid (and its salts) to: another location operated by the same firm solely for internal end-use; or an EPA or State licensed waste treatment or disposal firm for the purpose of waste disposal.
(f)The requirement of registration is waived for any person whose distribution of red phosphorus or white phosphorus is limited solely to residual quantities of chemical returned to the producer, in reusable rail cars and intermodal tank containers which conform to International Standards Organization specifications (with capacities greater than or equal to 2,500 gallons in a single container).
(g)The requirement of registration is waived for any person whose activities with respect to List I chemicals are limited solely to the distribution of Lugol's Solution (consisting of 5 percent iodine and 10 percent potassium iodide in an aqueous solution) in original manufacturer's packaging of one fluid ounce (30 ml) or less.
(h)The requirement of registration is waived for any manufacturer of a List I chemical, if that chemical is produced solely for internal consumption by the manufacturer and there is no subsequent distribution or exportation of the List I chemical.
(i)If any person exempted under paragraph (b), (c), (d), (e), or
(f)of this section also engages in the distribution, importation, or exportation of a List I chemical, other than as described in such paragraph, the person shall obtain a registration for the activities, as required by § 1309.21 of this part.
(j)The Administrator may, upon finding that continuation of the waiver would not be in the public interest, suspend or revoke a waiver granted under paragraph (b), (c), (d), (e), or
(f)of this section pursuant to the procedures set forth in §§ 1309.43 through 1309.46 and §§ 1309.51 through 1309.55 of this part. In considering the revocation or suspension of a person's waiver granted pursuant to paragraph
(b)or
(c)of this section, the Administrator shall also consider whether action to revoke or suspend the person's controlled substance registration pursuant to 21 U.S.C. 824 is warranted.
(k)Any person exempted from the registration requirement under this section must comply with the security requirements set forth in §§ 1309.71 through 1309.73 of this part and the recordkeeping and reporting requirements set forth under parts 1310 and 1313 of this chapter. 8. Section 1309.25 is amended by adding a new paragraph
(c)to read as follows: § 1309.25 Temporary exemption from registration for chemical registration applicants.
(c)Each person required by section 302 of the Act (21 U.S.C. 822) to obtain a registration to manufacture or import prescription drug products containing ephedrine, pseudoephedrine, or phenylpropanolamine is temporarily exempted from the registration requirement, provided that the person submits a proper application for registration on or before [DATE 30 DAYS AFTER PUBLICATION OF A FINAL RULE IN THE **Federal Register** ]. The exemption will remain in effect for each person who has made such application until DEA has approved or denied the application. This exemption applies only to registration; all other chemical control requirements set forth in this part and parts 1310, 1313, and 1315 of this chapter remain in full force and effect. Dated: January 11, 2008. Joseph T. Rannazzisi, Deputy Assistant Administrator, Office of Diversion Control. [FR Doc. E8-774 Filed 1-17-08; 8:45 am] BILLING CODE 4410-09-P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-127127-05] RIN 1545-BE68 Guidance on Qualified Tuition Programs Under Section 529 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Advance Notice of Proposed Rulemaking. SUMMARY: This document invites comments from the public regarding rules under section 529 of the Internal Revenue Code
(Code)that the IRS and the Treasury Department expect to propose in a notice of proposed rulemaking. The rules focus mainly on the transfer tax provisions applicable to accounts (section 529 accounts) in Qualified Tuition Programs (QTPs). It is anticipated that these rules will generally apply to section 529 accounts after the effective date of final regulations. All materials submitted will be available for public inspection and copying. DATES: Written and electronic comments must be submitted by March 18, 2008. ADDRESSES: Send written comments to: Internal Revenue Service, Attn: CC:PA:LPD:PR (REG-127127-05), room 5203, POB 7604 Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-127127-05), Courier's Desk, Internal Revenue Service, 1111 Constitution Ave., NW., Washington, DC, or sent electronically, via the Federal eRulemaking Portal at *www.regulations.gov* (IRS-REG-127127-05). FOR FURTHER INFORMATION CONTACT: Concerning submissions, Richard A. Hurst at *Richard.A.Hurst@irscounsel.treas.gov* or,
(202)622-7180; concerning rules relating to estate, gift, and generation-skipping transfer tax issues, Mary Berman,
(202)622-3090; concerning other proposed rules, Monice Rosenbaum,
(202)622-6070 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Prior Administrative Guidance A Notice of Proposed Rulemaking under section 529 was published in the **Federal Register** on August 24, 1998 (REG-106177-97; 63 FR 45019) (the 1998 proposed regulations). Additional guidance was published in Notice 2001-55 (2001-2 CB 299) and Notice 2001-81 (2001-2 CB 617). Notice 2001-55 provides guidance regarding the statutory restriction against investment direction. Notice 2001-81 provides guidance on recordkeeping, reporting and other requirements applicable to QTPs in light of certain amendments made to section 529 by the Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub. L. 107-16, 115 Stat. 38) (EGTRRA). See § 601.601(d)(2)(ii)( *b* ). Although the 1998 proposed regulations and these notices provide rules regarding many issues arising under section 529, other issues remain unresolved. Current law regarding the transfer tax treatment of section 529 accounts is unclear and in some situations imposes tax in a manner inconsistent with generally applicable transfer tax provisions of the Code. In addition, current law raises the potential for abuse of section 529 accounts in certain situations. Pension Protection Act of 2006 The Pension Protection Act of 2006 (Pub. L. 109-280, 120 Stat. 780) (the PPA) permanently extended the EGTRRA amendments to section 529, which previously were scheduled to expire at the end of 2010, including the provision that exempts from Federal income tax distributions made from section 529 accounts that are used to pay qualified higher education expenses (QHEEs). See section 1304(a) of the PPA. At the same time, section 1304(b) of the PPA enacted section 529(f). Section 529(f) provides that, notwithstanding any other provision of section 529, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of section 529 and to prevent abuse of such purposes, including regulations under chapters 11, 12, and 13. In discussing new section 529(f), the Technical Explanation prepared by the Joint Committee on Taxation provides two examples of how present law creates the opportunity for abuse of section 529 accounts. See Joint Committee on Taxation, Technical Explanation of H.R. 4, The “Pension Protection Act of 2006,” as Passed by the House on July 28, 2006 and as Considered by the Senate on August 3, 2006, (JCX-38-06), at 369. Abuse may arise because of the ability to change designated beneficiaries
(DBs)in certain circumstances without triggering transfer tax. For example, taxpayers may seek to establish and contribute to multiple accounts (taking advantage of the 5-year rule of section 529(c)(2)(B)) with different DBs with the intention of subsequently changing the DBs of such accounts to a single, common beneficiary and distributing the entire amount to such beneficiary without further transfer tax consequences. Abuse may also arise because taxpayers seek to use section 529 accounts as retirement accounts, with all of the tax benefits but none of the restrictions and requirements of qualified retirement accounts. Potential for Abuse of Section 529 Accounts The IRS and the Treasury Department are aware of other situations where current law raises the potential for abuse of section 529 accounts. For example, abuse may also arise if a person contributes a large sum to an account for himself or herself and then changes the DB to a member of his or her family who is in the same or a higher generation (as determined in accordance with section 2651) as the contributor. The contributor's contributions to his or her own account would not trigger the gift tax because an individual cannot make a gift to himself or herself. The contributor may claim that the subsequent change of DB to a member of the contributor's family who is in the same or a higher generation avoids the gift tax under the special transfer tax rules of section 529. Abuse may also arise because contributions to accounts are treated as completed gifts to the DB even though the account owner
(AO)may be able to withdraw the money at his or her discretion. Overview of Proposed Regulations Section 529(f) authorizes the IRS and the Treasury Department to promulgate regulations as needed to protect against these and other types of abuse. Accordingly, the IRS and the Treasury Department intend to issue a notice of proposed rulemaking to address the potential for abuse of section 529 accounts. The notice of proposed rulemaking will provide a general anti-abuse rule that will apply when section 529 accounts are established or used for purposes of avoiding or evading transfer tax or for other purposes inconsistent with section 529. In addition, the notice of proposed rulemaking will include rules relating to the tax treatment of contributions to and participants in QTPs, including rules addressing the inconsistency between section 529 and the generally applicable income and transfer tax provisions of the Code. The notice of proposed rulemaking also will include rules relating to the function and operation of QTPs and section 529 accounts. With some exceptions, the 1998 proposed regulations will be reproposed in the notice of proposed rulemaking. The guidance published in Notice 2001-55, Notice 2001-81, and the instructions and publications related to Form 1099-Q, “Payments from Qualified Education Programs (Under Sections 529 and 530),” also will be included in the forthcoming notice of proposed rulemaking. Taxpayers and QTPs may continue to rely on the information provided in existing published guidance, including any effective dates therein. See § 601.601(d)(2)(ii)( *b* ) of the regulations. The IRS and the Treasury Department anticipate that the forthcoming notice of proposed rulemaking also will address additional comments that have been received with regard to certain administrative, income tax, and other issues affecting QTPs and section 529 accounts. The IRS and the Treasury Department anticipate that the new rules to be provided in the notice of proposed rulemaking will generally apply prospectively to all section 529 accounts. Transition rules will be provided if necessary. However, the anti-abuse rule may be applied on a retroactive basis pursuant to section 7805(b)(3). The IRS and the Treasury Department also anticipate that the notice of proposed rulemaking may require some States (or agencies or instrumentalities thereof) and eligible educational institutions that have established and maintained QTPs to make changes to the terms and operating provisions of their programs in order to ensure that their programs remain qualified under section 529. The forthcoming notice of proposed rulemaking will provide a grace period of no less than 15 months to implement most changes. The following discussion sets forth the rules expected to be included in the notice of proposed rulemaking and explains the rationale for these rules. Explanation of Provisions I. Anti-Abuse Rule The IRS and the Treasury Department are aware that the inconsistency between the section 529 transfer tax provisions and the generally applicable transfer tax provisions of the Code create the potential for abuse of section 529 accounts. As described above, the Technical Explanation accompanying new section 529(f) provides two examples in which present law creates the opportunity for abuse of section 529 accounts. Concern has also been raised as to the potential for abuse in other situations. For example, assume that in 2007, when the gift tax annual exclusion amount under section 2503(b) is $12,000, Grandparents wish to give more than $1 million to Child, free of transfer taxes. Grandparents open section 529 accounts for each of their 10 grandchildren, naming Child the AO of each account. Grandparents use the 5-year spread rule of section 529(c)(2)(B) to contribute $120,000 ($60,000 from each Grandparent) to each grandchild's account without triggering any gift or generation-skipping transfer
(GST)tax liability. The earnings then accumulate on a tax-deferred basis in the accounts and Child may withdraw the balances at any time. If Grandparents survive for 5 years, the account balances will not be included in their gross estates at death. In effect, Grandparents have transferred $1.2 million to Child while claiming that no transfer taxes are due and claiming to use none of their applicable credit amount (formerly the unified credit). As discussed more fully below, similar concerns have been raised where there is a change from one AO to a new AO, thus giving the new AO all rights to and control over the section 529 account, including the right to completely withdraw the entire account for the new AO's benefit. The forthcoming notice of proposed rulemaking will contain an anti-abuse rule designed to prevent opportunities for abuse of section 529 accounts such as those set forth above. The anti-abuse rule generally will deny the favorable transfer tax treatment under section 529 if contributions to those accounts are intended or used for purposes other than providing for the QHEEs of the DB (except to the extent otherwise allowable under section 529 or the corresponding regulations). The IRS and the Treasury Department anticipate that the anti-abuse rule will generally follow the steps in the overall transaction by focusing on the actual source of the funds for the contribution, the person who actually contributes the cash to the section 529 account, and the person who ultimately receives any distribution from the account. If it is determined that the transaction, in whole or in part, is inconsistent with the intent of section 529 and the regulations, taxpayers will not be able to rely on the favorable tax treatment provided in section 529. The anti-abuse rule will include examples such as those set forth above that provide clear guidance to taxpayers about the types of transactions considered abusive. The IRS and the Treasury Department intend to monitor transactions involving section 529 accounts. If concerns regarding abuse continue, the IRS and the Treasury Department will consider adopting broader rules including, for example, rules limiting the circumstances under which a QTP may permit AOs to withdraw funds from accounts; limiting the circumstances under which there may be a change in DB; and limiting the circumstances under which the AO may name a different AO. These rules may be adopted in addition or as an alternative to the general anti-abuse rule. II. Rules Relating to the Tax Treatment of Contributions to and Participants in Section 529 Accounts A. AO's Liability for Any Gift and/or GST Tax Imposed on a Taxable Change of DB Section 529(c)(5)(B) provides that the gift and GST tax apply to a transfer by reason of a change in the DB of a section 529 account (or a rollover to the account of a new DB) unless the new DB is both:
(1)Assigned to the same or a higher generation (determined in accordance with section 2651) as the former DB, and
(2)a member of the family of the former DB. The statute does not identify the individual who would be liable for the gift and/or GST tax in such a situation. Section 1.529-5(b)(3) of the 1998 proposed regulations, in accordance with the legislative history (H.R. Rep. No. 148 at 328), provides that, if the AO changes the DB, or directs a rollover of credits or account balances from the account of one beneficiary to the account of another beneficiary, and if the new DB is not both a member of the family of the former DB and in the same or a higher generation (as determined under section 2651) as the former DB, the change of DB by the AO is treated as a taxable gift by the former DB to the new DB. This result follows from generally applicable transfer tax provisions because each contribution to the section 529 account on behalf of the former DB was treated as a completed gift to the former DB. As a consequence, under the 1998 proposed regulations, the former DB is deemed to be the owner of the funds contributed to the account and, therefore, is the donor/transferor of the account to the new DB. Because the AO rather than the DB has the power to change a beneficiary, several comments on the 1998 proposed regulations raised concerns about the imposition of tax on the former DB. In many cases, the DBs are minors who may not be aware of the existence of the account for their benefit. The term “account owner” does not appear in section 529. The definition of account owner in § 1.529-1(c) of the 1998 proposed regulations was included to reflect practices used at that time to facilitate the establishment of accounts for minor beneficiaries. In practice, the AO retains control over the selection of the DB and has personal access to the funds in the account. In order to assign the tax liability to the party who has control over the account and is responsible for the change of any beneficiary, the forthcoming notice of proposed rulemaking will provide that a change of DB that results in the imposition of any tax will be treated as a deemed distribution to the AO followed by a new gift. Therefore, the AO will be liable for any gift or GST tax imposed on the change of the DB, and the AO must file gift and GST tax returns if required. This position comports with the income tax provision under § 1.529-3(c)(1) of the 1998 proposed regulations that treats a change of DB to a new DB who is not a member of the family of the former DB as a distribution to the AO, provided the AO has the authority to change the DB. Special rules may be needed to address situations in which a trust or an entity such as a bank, rather than an individual, is the AO. The IRS and the Treasury Department welcome comments regarding such special rules and on possible alternative approaches to collecting any transfer taxes due upon a change of DB. B. AO's Liability for Tax Imposed on Any Withdrawal by the AO From a Section 529 Account for the AO's Own Benefit and on a Change in AO Section 529(c)(3)(A) provides that, in general, any distribution from a section 529 account is includible in the gross income of the distributee in the manner provided under section 72, to the extent not excluded from gross income under any other provision of chapter 1 of the Code. Section 529(c)(3)(A) does not limit the class of potential distributees. As discussed previously in this preamble, the AO of a section 529 account is the party with control over the account. Concerns have been raised regarding the potential tax consequences in situations where the AO withdraws part or all of the funds from the section 529 account for the AO's own benefit. For example, a contributor might attempt to avoid gift tax by making contributions that do not exceed the gift tax annual exclusion amount under section 2503(b) to multiple accounts having the same AO. The AO could then withdraw some or all of those funds for the AO's own benefit. The AO, as distributee, would claim to owe only the income tax and a 10-percent additional tax on the earnings portion of the withdrawal, while the taxpayer who contributed those funds would claim to owe no gift or GST tax. Concerns also have been raised regarding the possible tax consequences in situations where an AO transfers control of the account to a new AO, or names himself or herself (or the AO's spouse) as the DB. The IRS and the Treasury Department expect to develop additional rules to address these and other similar transactions by AOs, including
(1)limiting AOs to individuals; and,
(2)making the AO liable for income tax on the entire amount of the funds distributed for the AO's benefit except to the extent that the AO can substantiate that the AO made contributions to the section 529 account and, therefore, has an investment in the account within the meaning of section 72. The IRS and the Treasury Department welcome comments on such additional rules and on any alternative approaches to preventing misuse by AOs of section 529 accounts. C. Application of Transfer Tax Where Permissible Contributors to Section 529 Accounts Include Persons Other Than Individuals Under section 529(b)(1), a QTP is a program under which a person may purchase tuition credits or certificates on behalf of a DB which entitle the DB to the waiver or payment of QHEEs or, in the case of a program established and maintained by a State or agency or instrumentality thereof, may make contributions to an account which is established for the purpose of paying the QHEEs of the DB of the account. Section 1.529-1(c) of the 1998 proposed regulations provides that, for purposes of section 529, the term “person” has the same meaning as under section 7701(a)(1). Section 7701(a)(1) provides that, when the term “person” is used in the Code and not otherwise distinctly expressed or manifestly incompatible with the intent thereof, the term shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation. Since publication of the 1998 proposed regulations, this broad definition of “person” has raised questions concerning the application of the transfer tax and, in certain situations, the income tax and the employment tax. With respect to transfer taxes, section 529(c)(2)(A) provides that any contribution to a section 529 account on behalf of a DB shall be treated as a completed gift of a present interest in property to the DB. Section 2501(a) imposes a tax on the transfer of property by gift by an “individual.” Under § 25.2501-1(a) of the Gift Tax Regulations, the gift tax is not applicable to transfers by corporations or persons other than individuals, except as provided in § 25.2511-(1)(h)(1). Section 25.2511-(1)(h)(1) provides that a transfer of property by a corporation to an individual is a gift to the individual by the stockholders of the corporation. If the individual is a stockholder, the transfer is a gift to the individual by the other stockholders to the extent it exceeds the individual's own interest in such amount as a stockholder. Because any contribution to a section 529 account is treated as a completed gift, and because the gift tax is imposed only on individuals, it can be argued that the definition of “person” in section 529(b)(1) should be limited to individuals. Nevertheless, the IRS and the Treasury Department believe it may be possible to interpret sections 529(b)(1) and 529(c)(2)(A) consistently without limiting the class of permissible contributors to individuals by providing special rules for contributions made by corporations, partnerships, estates, trusts, and other entities. For example, based on § 25.2511-1(h)(1), a contribution by a person other than an individual may be treated as a separate gift by each beneficiary, member, shareholder, partner, etc., in an amount representing that individual's allocable share of the contribution. Accordingly, the forthcoming notice of proposed rulemaking will follow the 1998 proposed regulations in providing that the definition of “person” as used in section 529(b)(1) will have the same meaning as under section 7701(a)(1). The IRS and the Treasury Department welcome comments on whether the definition of “person” in section 529(b)(1) should be limited to individuals and on rules necessary to ensure appropriate transfer tax consequences in situations where persons other than individuals make contributions to section 529 accounts. In addition, comments are welcome as to whether the complexity of any special rules would outweigh the benefit of allowing non-individual contributors. Comments are also welcome regarding potential income tax consequences when contributions are made by non-individuals, such as a trust or estate, and whether the complexity of any special rules would outweigh the benefit. For example, if a trust makes contributions to a section 529 account, how should the trust treat the contributions to and distributions from the account for income tax purposes? If the trustee of the trust is the AO, would the income tax treatment be the same? The IRS and the Treasury Department also have considered the possibility that employers may consider funding section 529 accounts for employees' children or that a debtor may fund an account for the lender's child. Section 529 does not override (or permit avoidance of) federal taxes otherwise applicable to payments that are not in the nature of gifts. The IRS and the Treasury Department believe that if such contributions are made, all necessary procedures and reporting mechanisms must be in place to ensure the assessment and collection of all appropriate income, employment, and gift taxes. The IRS and the Treasury Department welcome comments as to whether (and how) this could be accomplished without undue burden. D. Special Rules Apply in the Case of Individuals Who Contribute to Section 529 Accounts for Their Own Benefit and in the Case of Uniform Gifts to Minors Act
(UGMA)and Uniform Transfers to Minors Act
(UTMA)Accounts That Contribute to Such Accounts for the Benefit of Their Minor Beneficiaries The 1998 proposed regulations do not address situations in which individuals contribute to section 529 accounts for their own benefit, or where UGMA and UTMA accounts make contributions for the benefit of their minor beneficiaries. (This situation should be distinguished from a section 529 account established with the program as an UGMA or UTMA account.) The IRS and the Treasury Department believe guidance is needed regarding contributions by individuals for their own benefit and by UGMA and UTMA accounts for the benefit of their minor beneficiaries in order to ensure consistent tax treatment with section 529 accounts set up by persons for the benefit of other DBs. As stated in the previous paragraph, section 2501(a) imposes a tax on the transfer of property by gift by an individual. Section 529(c)(2)(A) provides that any contribution to a section 529 account on behalf of any DB shall be treated as a completed gift of a present interest in property to the DB. A contribution to a section 529 account by the contributor for the contributor's own benefit cannot be treated as a completed gift because an individual cannot make a transfer of property to himself or herself, and a transfer of property is a fundamental requirement for a completed gift. Although there is no express statutory intent to prohibit the funding of a section 529 account for the contributor's own QHEEs, the transfer tax provisions of section 529 do not appear to contemplate such a result. Minor beneficiaries of UGMA and UTMA accounts are the beneficial owners of the accounts. In this respect, contributions to a section 529 account from an UGMA or UTMA account would be considered to be contributions to the section 529 accounts by the minor beneficiaries for their own benefit. The IRS and the Treasury Department recognize that individuals may want to save for their higher education expenses by contributing to section 529 accounts and that individuals might not have parents or other benefactors who are able or willing to make such contributions on their behalf. The IRS and the Treasury Department also acknowledge that section 529 accounts provide an efficient method for UGMA and UTMA accounts to provide for the higher education expenses of their minor beneficiaries. Accordingly, it is anticipated that the notice of proposed rulemaking will allow contributions to section 529 accounts by individuals for their own benefit and by UGMA and UTMA accounts for the benefit of their minor beneficiaries. In order to ensure consistent transfer and income tax treatment under section 529 for these accounts and accounts created by persons for the benefit of other DBs, special rules will apply in cases of a subsequent change of the DB. When contributors set up section 529 accounts naming themselves as DB (or UGMA and UTMA accounts set up such accounts for their minor beneficiaries) and subsequently change the DB, the change of DB from the contributor to any other person will be deemed to be a distribution to the contributor followed by a new contribution (as described in section 529(c)(2)) of the account balance by the contributor to a new section 529 account for the new DB. It is anticipated that the deemed distribution to the contributor, followed by the new contribution of the account balance to a new section 529 account for the new DB, will be treated as a rollover (as described in section 529(c)(3)(C)) and thus will not be subject to income tax or the 10-percent additional tax imposed by section 529(c)(6) if the new DB is a member of the family of the former DB. The new contribution by the contributor will be treated in the same way for transfer tax purposes as all other contributions to section 529 accounts under section 529(c)(2). If the change of DB in these situations results in any gift and/or GST tax, the contributor will be liable for the tax and must file gift and/or GST tax returns. However, the contributor may elect to take advantage of the special 5-year rule under section 529(c)(2)(B). E. Circumstances Under Which the Account of a Deceased DB Will Be Distributed to, and Includible in, the Gross Estate of the Deceased DB for Estate Tax Purposes Section 529(c)(4) provides that, with two exceptions, no amount shall be includible in the gross estate of any individual for purposes of the estate tax by reason of an interest in a section 529 account. The exception relevant to this discussion is for amounts distributed on account of the death of the DB. Under section 529(c)(4)(B), amounts distributed on account of the death of a DB are subject to estate tax. The legislative history (H.R. Rep. No. 148 at 328) makes no reference to the term “distributed” but provides that the value of any interest in a section 529 account will be includible in the estate of a DB. Section 1.529-5(d)(3) of the 1998 proposed regulations adopts the position stated in the legislative history. This position has raised several concerns because, under generally applicable transfer tax provisions, the gross estate of a decedent does not include property in which the decedent has no interest, or over which the decedent has no power or control. It is anticipated that the forthcoming notice of proposed rulemaking will provide the following rules regarding the tax consequences arising from the death of a DB. *Rule 1.* If the AO distributes the entire section 529 account to the estate of the deceased DB within 6 months of the death of the DB, the value of the account will be included in the deceased DB's gross estate for federal estate tax purposes. *Rule 2.* If a successor DB is named in the section 529 account contract or program and the successor DB is a member of the family of the deceased DB and is in the same or a higher generation (as determined under section 2651) as the deceased DB, the value of the account will not be included in the gross estate of the deceased DB for Federal estate tax purposes. *Rule 3.* If no successor DB is named in the section 529 account contract or program, but the AO names a successor DB who is a member of the family of the deceased DB and is in the same or a higher generation (as determined under section 2651) as the deceased DB, the value of the account will not be included in the gross estate of the deceased DB for Federal estate tax purposes. *Rule 4.* If no successor DB is named in the section 529 account contract or program, and the AO does not name a new DB but instead withdraws all or part of the value of the account, the AO will be liable for the income tax on the distribution, and the value of the account will not be included in the gross estate of the deceased DB for federal estate tax purposes. *Rule 5.* If, by the due date for filing the deceased DB's estate tax return, the AO has allowed funds to remain in the section 529 account without naming a new DB, the account will be deemed to terminate with a distribution to the AO, and the AO will be liable for the income tax on the distribution. The value of the account will not be included in the gross estate of the deceased DB for Federal estate tax purposes. III. Rules Governing the Function and Operation of QTPs and Section 529 Accounts A. Rules for Making the Election Under Section 529(c)(2)(B) To Treat Contributions to a Section 529 Account as Being Made Over a 5-Year Period The IRS and the Treasury Department have received numerous taxpayer inquiries regarding the operation of and the procedures for making the 5-year election provided in section 529(c)(2)(B). Section 529(c)(2)(B) provides that, if the aggregate amount of contributions to a section 529 account during the calendar year by a donor exceeds the gift tax exclusion amount for such year under section 2503(b), the donor may elect to have the aggregate amount taken into account, for purposes of section 2503(b), over the 5-year period beginning in such calendar year. The forthcoming notice of proposed rulemaking will provide the following rules that clarify the circumstances and manner in which the election may be made. *Rule 1.* The election must be made on the last United States Gift (and Generation-Skipping Transfer) Tax Return (Form 709) filed on or before the due date of the return, including extensions actually granted, or, if a timely return is not filed, on the first gift tax return filed by the donor after the due date. The election, once made, will be irrevocable, except that it may be revoked or modified on a subsequent return that is filed on or before the due date, including extensions actually granted. *Rule 2.* The election applies to contributions to a section 529 account on behalf of a DB during a calendar year that exceed the gift tax exclusion amount for that year but are not in excess of five times the exclusion amount for the year. Any excess may not be taken into account ratably and is treated as a taxable gift in the calendar year of the contribution. Rule 2 is illustrated by the following examples: Example A. Assume the contributor makes contributions to a section 529 account on behalf of DB in 2007, when the gift tax annual exclusion amount under section 2503(b) is $12,000. If the contributor's aggregate contributions on behalf of DB in 2007 are $30,000, contributor may elect to account for the gift as 5 annual gifts of $6,000 to DB, beginning in 2007. Assuming the gift tax annual exclusion amount remains at $12,000 over the 5-year period covered by the election, the contributor could make additional gifts described in section 2503(b) of up to $6,000 in each of the 5 years to the same beneficiary without the imposition of any gift tax. Example B. Assume the contributor makes contributions to a section 529 account on behalf of DB in 2007, when the gift tax annual exclusion amount under section 2503(b) is $12,000. If the contributor's aggregate contributions on behalf of DB in 2007 are $65,000, contributor may make the election under section 529(c)(2)(B) only with respect to that portion of the contributions that is not in excess of $60,000 (5 × $12,000). The $5,000 excess will be treated as a taxable gift by the contributor in 2007. *Rule 3.* The election may be made by a donor and the donor's spouse with respect to a gift considered to be made one-half by each spouse under section 2513. B. Income Tax Issues Related to Section 529 Accounts The IRS and the Treasury Department have received numerous inquiries relating to several income tax issues that will be addressed in the forthcoming notice of proposed rulemaking. The following items are illustrative of these inquiries and the IRS and the Treasury Department anticipate addressing additional income tax matters raised by comments. The notice of proposed rulemaking will provide formal guidance on how to recognize a loss in a section 529 account. Direction on this issue was first provided in Publication 970 (Tax Benefits for Education: For Use in Preparing 2002 Returns). Losses in section 529 accounts may be deducted as miscellaneous itemized deductions subject to the 2% of adjusted gross income limit. Taxpayers will continue to be able to rely upon this interpretation. Section 529 is silent regarding whether distributions must be made from a section 529 account in the same tax year as QHEEs were paid or incurred. Concerns have been raised that individuals could allow the account to grow indefinitely on a tax-deferred basis before requesting reimbursement or use distributions in earlier years to pay QHEEs in later years. Accordingly, the IRS and the Treasury Department propose to adopt a rule that, in order for earnings to be excluded from income, any distribution from a section 529 account during a calendar year must be used to pay QHEEs during the same calendar year or by March 31 of the following year. The IRS and the Treasury Department welcome comments on rules necessary to ensure that distributions from section 529 accounts are appropriately matched to the payment of QHEEs. C. Recordkeeping Requirements and Administrative Procedures The forthcoming notice of proposed rulemaking may contain recordkeeping requirements designed to facilitate the implementation of these new rules, including the proposed anti-abuse rule. QTPs may be required to collect and retain, and in some cases report to the IRS, certain information. Programs may also need to revise their program documents, administrative procedures, and promotional and required literature for AOs and DBs. The forthcoming notice of proposed rulemaking will provide a grace period of no less than 15 months to implement most changes. The IRS and the Treasury Department welcome comments regarding the information that would be necessary to implement the proposed anti-abuse rule, including a discussion of how to minimize the burden on QTPs of collecting or reporting such information. Request for Comments Before the notice of proposed rulemaking is issued, consideration will be given to any written comments that are submitted timely (a signed original and eight
(8)copies) to the IRS. All comments will be available for public inspection and copying. Drafting Information The principal authors of this advance notice of proposed rulemaking are Mary Berman of the Office of Chief Counsel (Passthroughs and Special Industries) and Monice Rosenbaum of the Office of Chief Counsel (Tax-Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in its development. Linda E. Stiff, Deputy Commissioner for Services and Enforcement. [FR Doc. E8-859 Filed 1-17-08; 8:45 am] BILLING CODE 4830-01-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-R09-OAR-2007-1709; FRL-8509-3] Approval and Promulgation of Air Quality Implementation Plans; Nevada; Washoe County 8-Hour Ozone Maintenance Plan AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed rule. SUMMARY: EPA proposes to approve a revision to the Washoe County portion of the Nevada State Implementation Plan. Submitted by the State of Nevada on May 30, 2007, this plan revision consists of a maintenance plan prepared for the purpose of providing for continued attainment of the 8-hour ozone national ambient air quality standard in Washoe County through the year 2014 and thereby satisfying the related requirements under section 110(a)(1) of the Clean Air Act and EPA's phase 1 rule implementing the 8-hour ozone national ambient air quality standard. EPA is proposing this action pursuant to those provisions of the Clean Air Act that obligate the Agency to take action on submittals of state implementation plans and plan. DATES: Any comments on this proposal must arrive by *February 19, 2008.* ADDRESSES: Submit your comments, identified by EPA-R09-OAR-2007-1079, by one of the following methods: • *Federal eRulemaking Portal: http://www.regulations.gov.* Follow the on-line instructions for submitting comments. • *E-mail:* Eleanor Kaplan at *kaplan.eleanor@epa.gov.* Please also send a copy by e-mail to the person listed in the FOR FURTHER INFORMATION CONTACT section below. • *Fax:* Eleanor Kaplan, Planning Office (AIR-2), at fax number
(415)947-4147. • *Mail or deliver:* Eleanor Kaplan, Planning Office (AIR-2), U.S. Environmental Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, California 94105-3901. Hand or courier deliveries are accepted only between the hours of 8 a.m. and 4 p.m. weekdays except for legal holidays. Special arrangements should be made for deliveries of boxed information. *Instructions:* All comments will be included in the public docket without change and may be made available online at *www.regulations.gov,* including any personal information provided, unless the comment includes information claimed to be Confidential Business Information
(CBI)or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through *www.regulations.gov* or e-mail. The *www.regulations.gov* Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through *www.regulations.gov* your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. *Docket:* All documents in the docket are listed in the *www.regulations.gov* index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in *www.regulations.gov* or in hard copy at the Planning Office (AIR-2), U.S. Environmental Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, California, 94105-3901. To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Eleanor Kaplan, Planning Office (AIR-2), U.S. Environmental Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, California 94105-3901, telephone
(415)947-4147; fax
(415)947-3579; e-mail address *kaplan.eleanor@epa.gov.* SUPPLEMENTARY INFORMATION: On May 30, 2007, the Nevada Division of Environmental Protection
(NDEP)submitted the *Maintenance Plan for the Washoe County 8-Hour Ozone Attainment Area (April 2007)* (“Washoe County Ozone Maintenance Plan”) to EPA for approval as a revision to the Washoe County portion of the Nevada State Implementation Plan (SIP). The Washoe County Ozone Maintenance Plan was developed by the Washoe County District Health Department, Air Quality Management Division (Washoe County AQMD) and adopted by the Washoe County District Board of Health (District Board of Health) on April 26, 2007. Washoe County AQMD prepared the plan to provide for continued attainment of the 8-hour ozone national ambient air quality standard (NAAQS) through 2014 and to thereby satisfy the requirements of section 110(a)(1) of the Clean Air Act (CAA or “Act”) and EPA's phase 1 rule implementing the 8-hour ozone NAAQS. EPA is proposing to approve the Washoe County Ozone Maintenance Plan as a revision to the Washoe County portion of the Nevada SIP because we find that the submitted ozone maintenance plan meets all of the applicable requirements of CAA section 110(a)(1) and our phase 1 rule implementing the 8-hour ozone NAAQS. In the Rules and Regulations section of this **Federal Register** , we are approving the Washoe County Ozone Maintenance Plan in a direct final action without prior proposal because we believe these SIP revisions are not controversial. If we receive adverse comments, however, we will publish a timely withdrawal of the direct final rule and address the comments in subsequent action based on this proposed rule. Please note that if we receive adverse comment on an amendment, paragraph, or section of this rule and if that provision may be severed from the remainder of the rule, we may adopt as final those provisions of the rule that are not the subject of an adverse comment. We do not plan to open a second comment period, so anyone interested in commenting should do so at this time. If we do not receive adverse comments, no further activity is planned. For further information, please see the direct final action. Dated: November 29, 2007. Wayne Nastri, Regional Administrator, Region IX. [FR Doc. E8-746 Filed 1-17-08; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 52 and 81 [EPA-R09-OAR-2006-0214; FRL-8514-8] Approval and Promulgation of Air Quality Implementation Plans; Designation of Areas for Air Quality Planning Purposes; Arizona; San Manuel Sulfur Dioxide State Implementation Plan and Request for Redesignation to Attainment AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed rule. SUMMARY: EPA is proposing to approve the maintenance plan for the San Manuel Area in Pinal and Pima Counties, Arizona, as a revision to the Arizona state implementation plan, and to grant the request submitted by the State to redesignate this area from nonattainment to attainment of the national ambient air quality standards for sulfur dioxide (SO <sup>2</sup> ) for the San Manuel SO <sup>2</sup> nonattainment area. EPA is proposing this action in accordance with the Clean Air Act. DATES: Any comments on this proposal must arrive by *February 19, 2008* . ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-2006-0580, by one of the following methods: 1. *Federal eRulemaking Portal: www.regulations.gov* . Follow the on-line instructions. 2. *E-mail: robin.marty@epa.gov* . 3. *Mail or deliver:* Marty Robin (Air-2), U.S. Environmental Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901. *Instructions:* All comments will be included in the public docket without change and may be made available online at *www.regulations.gov* , including any personal information provided, unless the comment includes Confidential Business Information
(CBI)or other information whose disclosure is restricted by statute. Information that you consider CBI or otherwise protected should be clearly identified as such and should not be submitted through *www.regulations.gov* or e-mail. *www.regulations.go* v is an “anonymous access” system, and EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send e-mail directly to EPA, your e-mail address will be automatically captured and included as part of the public comment. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. *Docket:* The index to the docket for this action is available electronically at *www.regulations.gov* and in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While all documents in the docket are listed in the index, some information may be publicly available only at the hard copy location (e.g., copyrighted material), and some may not be publicly available in either location (e.g., CBI). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Marty Robin, EPA Region IX,
(415)972-3961, *robin.marty@epa.gov* . SUPPLEMENTARY INFORMATION: In the Rules and Regulations section of this **Federal Register** , we are taking direct final action to approve the maintenance plan for the San Manuel SO <sup>2</sup> nonattainment area and to approve the State of Arizona's request to redesignate the San Manuel area from nonattainment to attainment. We are taking these actions without prior proposal because we believe these SIP revisions are not controversial. If we receive adverse comments, however, we will publish a timely withdrawal of the direct final rule and address the comments in subsequent action based on this proposed rule. We do not plan to open a second comment period, so anyone interested in commenting should do so at this time. If we do not receive adverse comments, no further activity is planned. For further information, please see the direct final rule in this **Federal Register** . Authority: 42 U.S.C. 7401 et seq. Dated: December 20, 2007. Wayne Nastri, Regional Administrator, Region IX. [FR Doc. E8-804 Filed 1-17-08; 8:45 am] BILLING CODE 6560-50-P 73 13 Friday, January 18, 2008 Notices DEPARTMENT OF AGRICULTURE Office of the Chief Economist; Federal Advisory Committee for the Expert Review of Synthesis and Assessment; Product 4.3 AGENCY: Office of the Chief Economist, U.S. Department of Agriculture. ACTION: Notice of Meeting. SUMMARY: The Federal Advisory Committee for the Expert Review of Synthesis and Assessment Product 4.3 (CERSAP) will be meeting in Washington, DC. The U.S. Department of Agriculture
(USDA)is the lead agency for Climate Change Science Program Synthesis and Assessment Product 4.3 (SAP 4.3) titled, *The Effects of Climate Change on Agriculture, Land Resources, Water Resources, and Biodiversity.* CERSAP will provide advice to the Secretary of Agriculture on the conduct of this study. DATES: CERSAP will convene from 9 a.m. Tuesday February 5, 2008 through 5 p.m. Wednesday February 6, 2008. ADDRESSES: CERSAP will meet in Room 108 of the USDA Whitten Building in Washington, DC. The USDA Whitten Building is located at 12th Street, SW., and Jefferson Drive, and is accessible via the Smithsonian Metro stop. Please call Shirley Brown at 202-720-4164 upon entry for a mandatory escort. A photo ID is required. Written materials for CERSAP's consideration prior to the meeting must be received by Dr. Margaret Walsh no later than Monday January 28, 2008. Written materials may be sent to Dr. Walsh at *mwalsh@oce.usda.gov.* FOR FURTHER INFORMATION CONTACT: Dr. Margaret Walsh, Global Change Program Office, U.S. Department of Agriculture, 202-720-9978 or *mwalsh@oce.usda.gov.* SUPPLEMENTARY INFORMATION: This is a public meeting. Written materials for CERSAP's consideration prior to the meeting must be received by Dr. Margaret Walsh no later than Monday January 28, 2008. Individuals may make oral presentations at the meeting venue. Those making oral presentations should register in person at the meeting site and must bring with them 20 copies of any materials they would like distributed. Photocopy facilities are not available on site. More information on CERSAP and on SAP 4.3 may be found online at *http://www.usda.gov/oce/global_change/index.htm, http://www.climatescience.gov/Library/sap/sap4-3/default.php,* and *http://www.sap43.ucar.edu/.* Draft Meeting Agenda Tuesday February 5, 2008 A. Welcome and Introduction. B. Update on SAP 4.3. C. Public Comment. D. Discussion of SAP 4.3. Wednesday February 6, 2008 A. Welcome. B. Public Comment. C. Discussion of SAP 4.3. D. Adjourn. Time will be reserved for public comment on each day. Individual presentations will be limited to five minutes. Updates to the meeting agenda can be found online at the URLs listed above. For information on facilities or services for individuals with disabilities, or to request special assistance at the meeting, please contact Dr. Margaret Walsh. USDA prohibits discrimination on the basis of race, color, national origin, gender, religion, age, sexual orientation, or disability. Additionally, discrimination on the basis of political beliefs and marital or family status is also prohibited by statutes enforced by USDA (not all prohibited bases apply to all programs). Persons with disabilities who require alternate means for communication of program information (Braille, large print, audio tape, etc.) should contact the USDA's Target Center at
(202)720-2000 (voice and TDD). USDA is an equal opportunity provider and employer. Joseph Glauber, Acting Chief Economist. [FR Doc. 08-189 Filed 1-17-08; 8:45 am]
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register
21 references not yet in our index
- 5 CFR 293
- 3 CFR 1954
- 5 CFR 7.2
- 3 CFR 1943
- 7 CFR 457
- 7 CFR 3015
- 7 CFR 11
- 14 CFR 39
- 14 CFR 71
- 21 CFR 1309
- 21 USC 801-971
- Pub. L. 109-177
- 21 CFR 1310
- 21 CFR 1316
- 5 USC 601-612
- 26 CFR 1
- Pub. L. 107-16
- 115 Stat. 38
- Pub. L. 109-280
- 120 Stat. 780
- 40 CFR 52
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Proposed rule with request for comments
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Cite3 CFR 1954
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