Unknown. Final rule

85,383 words·~388 min read·/register/2008/03/26/08-1073

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

--- schema: federal-register doc_type: fedreg source_file: FR-2008-03-26.xml --- 73 59 Wednesday, March 26, 2008 Contents Agriculture Agriculture Department See Forest Service See Grain Inspection, Packers and Stockyards Administration See Rural Business-Cooperative Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 15965 E8-6087 Census Census Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 15978-15981 E8-6047 Meetings:

Census Advisory Committee of Professional Associations, 15981 E8-6202 Centers Centers for Medicare & Medicaid Services See Inspector General Office, Health and Human Services Department Coast Guard Coast Guard RULES Drawbridge Operation Regulations: Harlem River, New York City, NY, 15900-15901 E8-6151 Raritan River, Perth Amboy, NJ, 15901 E8-6152 State Boat Channel, Babylon, NY, 15901-15902 E8-6153 Safety Zone: Longwood Events Wedding Fireworks Display, Boston Harbor, Boston, MA, 15902-15904 E8-6149 Special Local Regulations for Marine Events:

Western Branch, Elizabeth River, Portsmouth, VA, 15898-15900 E8-6154 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16027-16028 E8-6146 Certificate of Alternative Compliance for Tug Laura K. Moran, 16028-16029 E8-6122 Meetings: National Maritime Security Advisory Committee, 16029 E8-6145 Voyage Data Recorder Study; Report to Congress, 16029 E8-6142 Commerce Commerce Department See Census Bureau See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, E8-6045 15977-15978 E8-6046 E8-6048 Defense Defense Department PROPOSED RULES Federal Acquisition Regulation: FAR Case 2007-017; Service Contractor Employee Personal Conflicts of Interest, 15961-15962 E8-6100 FAR Case 2007-018; Organizational Conflicts of Interest, 15962-15963 E8-6096 Education Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, E8-6033 15996-15997 E8-6044 E8-6199 Employment Employment and Training Administration NOTICES Amended Certification of Eligibility for Worker Adjustment Assistance, etc.:

Mahle Industries, Inc., Holland, MI, 16060 E8-6114 Certification of Eligibility for Worker Adjustment Assistance and Alternative Trade Adjustment Assistance, 16060-16061 E8-6111 Murata Power Solutions, Tucson, Arizona, 16061 E8-6118 Panasonic Primary Battery Corp. of America, Columbus, GA, 16061-16062 E8-6117 Woodward Controls, Inc., Niles, IL, 16062 E8-6113 Determinations of Eligibility for Worker Adjustment Assistance and Alternative Trade Adjustment Assistance, 16062-16064 E8-6112 Negative Determination for Reconsideration:

Consistent Textiles Industries Dallas, NC, 16064-16066 E8-6115 Warp Processing Co., Inc., Exeter, PA, 16066 E8-6116 Termination of Investigation: A.O. Smith Electrical Products Co., Scottsville, KY, 16067 E8-6110 Penske Logistics, Elliston, VA, 16067 E8-6119 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 15997-15999 E8-6138 Meetings: Methane Hydrate Advisory Committee, 15999 E8-6141 EPA Environmental Protection Agency RULES Amendments to National Emission Standards for Hazardous Air Pollutants for Area Sources, 15923-15930 E8-6184 Participation by Disadvantaged Business Enterprises in Procurement Under EPA Financial Assistance Agreements, 15904-15922 E8-6003 Pesticide Tolerance:

Myclobutanil, 15930-15937 E8-6205 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16004-16006 E8-6172 Azinphos-methyl; Product Cancellation Order and Amendments to Terminate Uses; Correction, 16006 E8-6186 Barium Metaborate Registration Review; Antimicrobial Pesticide, 16006-16008 E8-6182 Causal Analysis of Biological Impairment in Long Creek; A Sandy-Bottomed Stream in Coastal Southern Maine, 16008-16009 E8-6166 Final Decision on a No Migration Petition Reissuance:

Underground Injection Control Program et al., Veolia ES Technical Solutions, L.L.C., Port Arthur, TX, 16009 E8-6209 Flutolanil and Its Metabolites; Withdrawal of Tolerance Petition, 16009-16010 E8-6203 Meetings: Total Coliform Rule Distribution System Advisory Committee, 16010 E8-6179 Nortel Government Solutions, Incorporated; Transfer of Data, 16010-16011 E8-6000 Registration Review; New Dockets Opened for Review and Comment, 16011-16014 E8-5999 Farm Farm Credit Administration PROPOSED RULES Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations;

Capital Adequacy; Basel Accord, 15955 E8-6197 FAA Federal Aviation Administration RULES Airworthiness Directives: APEX Aircraft Model CA 10B Airplanes, 15868-15870 E8-5955 APEX Aircraft Model CAP 10 B Airplanes, 15872-15874 E8-5961 Avidyne Corporation Primary Flight Displays, 15862-15866 E8-5701 Boeing Model 727-200 Series Airplanes Equipped with an Auxiliary Fuel Tank System Installed in Accordance with Supplemental Type Certificate SA1350NM, 15880-15881 E8-6058 MORAVAN a.s.

Model Z-143L Airplanes, 15875-15877 E8-6037 Pacific Aerospace Corporation, Ltd Models FU24-954 and FU24A-954 Airplanes, 15870-15872 E8-5957 Pacific Aerospace Limited Model 750XL Airplanes, 15874-15875 E8-5963 Saab Model SAAB Fairchild SF340A (SAAB/SF340A) and SAAB 340B Airplanes, 15877-15879 E8-6049 Turbomeca Arriel 1B, 1D, 1D1, and 1S1 Turboshaft Engines, 15866-15868 E8-5819 Class E Airspace; Establishment: Hinton, OK, 15881-15883 E8-5931 PROPOSED RULES Airworthiness Directives:

Boeing Model 737-300, -400, and -500 Series Airplanes, 15959-15961 E8-6106 Airworthiness Standards: Aircraft Engine Standards Overtorque Limits, 15955-15959 E8-6148 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16091 E8-5930 16091 E8-5932 Petition for Exemption; Summary of Petition Received, 16091-16092 E8-6147 Federal Emergency Federal Emergency Management Agency NOTICES Disaster and Related Determinations: Missouri, 16030 E8-6140 Disaster Declaration:

Illinois, 16030 E8-6131 Indiana, 16030-16031 E8-6135 Tennessee, 16031 E8-6132 Emergency and Related Determinations: Illinois, 16031 E8-6139 Texas, 16031-16032 E8-6130 Wisconsin, 16032-16033 E8-6134 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Notice of Filings, 15999-16004 E8-6133 E8-6136 E8-6137 FMC Federal Maritime Commission NOTICES Agreements Filed, 16014 E8-6161 Ocean Transportation Intermediary License Applicants, 16014-16015 E8-6159 Ocean Transportation Intermediary License Rescission Of Order Of Revocation, 16015 E8-6158 E8-6163 Federal Procurement Federal Procurement Policy Office RULES Cost Accounting Standards Board;

Contract Clauses, 15939-15942 E8-5981 Federal Reserve Federal Reserve System RULES Extensions of Credit by Federal Reserve Banks, 15861-15862 E8-6107 NOTICES Change in Bank Control Notices, Acquisition of Shares of Bank or Bank Holding Companies; Correction, 16015 E8-6160 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 16015 E8-6162 FTC Federal Trade Commission PROPOSED RULES Business Opportunity Rule, 16110-16138 E8-6059 NOTICES Agency Information Collection Activities, 16015-16017 E8-6211 Fish Fish and Wildlife Service NOTICES Environmental Impact Statement, Intent:

Tehachapi Uplands Multi-Species Habitat Conservation Plan, 16052-16053 E8-6185 List of Programs Eligible for Inclusion in FY 2008 Funding Agreements With Self-Governance Tribes, 16054-16055 E8-6180 Food Food and Drug Administration RULES Civil Money Penalties Hearings; Maximum Penalty Amounts; Technical Amendment, 15883-15884 E8-6082 New Animal Drugs for Use in Animal Feeds: Bacitracin Methylene Disalicylate and Nicarbazin, 15884-15885 E8-6063 Registration of Food Facilities Under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002;

Technical Amendment, 15883 E8-6052 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16017-16022 E8-6055 E8-6060 E8-6061 E8-6065 Frozen Concentrate for Lemonade Deviating From Identity Standard; Temporary Permit for Market Testing; Correction, 16024 E8-6056 International Conference on Harmonisation; Draft Guidance on S2(R1) Genotoxicity Testing and Data Interpretation for Pharmaceuticals Intended for Human Use, 16024-16025 08-1076 Meetings:

Anesthetic and Life Support Drugs Advisory Committee, 16022-16023 E8-6193 Blood Products Advisory Committee, 16023-16024 E8-6208 Preparation for International Conference on Harmonization Meetings in Portland, Oregon; Public Meeting, 16025-16026 08-1077 Forest Forest Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 15965-15966 E8-6039 Shasta Trinity National Forest, South Fork Management Unit, California; Salt Timber Harvest and Fuels Hazard Reduction Project, 15966-15968 E8-5954 GSA General Services Administration PROPOSED RULES Federal Acquisition Regulation:

FAR Case 2007-017; Service Contractor Employee Personal Conflicts of Interest, 15961-15962 E8-6100 FAR Case 2007-018; Organizational Conflicts of Interest, 15962-15963 E8-6096 GIPSA Grain Inspection, Packers and Stockyards Administration NOTICES Applicants for Cedar Rapids, IA Area of Northeast Iowa, Southeast Minnesota, and East Texas; Request for Comments, 15968 E8-5538 Proposed Posting of Stockyards, 15969-15970 E8-6090 Health Health and Human Services Department See Food and Drug Administration See Inspector General Office, Health and Human Services Department See Substance Abuse and Mental Health Services Administration Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency See Transportation Security Administration See U.S.

Citizenship and Immigration Services See U.S. Immigration and Customs Enforcement PROPOSED RULES Safe-Harbor Procedures for Employers Who Receive a No-Match Letter: Initial Regulatory Flexibility Analysis Clarification, 15944-15955 E8-6168 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16027 E8-6103 Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16036 E8-6173 Funding Awards for Housing Counseling Program for 2007 Fiscal Year, 16036-16052 E8-6099 Meetings:

Manufactured Housing Consensus Committee; Conference Call, 16052 E8-6098 Notice of HUD's Fiscal Year

(FY)2008: Funding Availability for HOPE VI Revitalization Grants Program, 16140-16177 E8-6101 Industry Industry and Security Bureau NOTICES Crime Control License Requirements in the Export Administration Regulations; Request for Public Comments, 15981-15982 E8-6175 Inspector Inspector General Office, Health and Human Services Department RULES Medicare and State Health Care Programs; Fraud and Abuse; Issuance of Advisory Opinions by OIG, 15937-15939 E8-6164 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See Minerals Management Service See National Park Service International International Trade Administration NOTICES Preliminary Determination of Sales at Less Than Fair Value and Affirmative Preliminary Determination of Critical Circumstances: Electrolytic Manganese Dioxide from Australia, 15982-15988 E8-6167 Electrolytic Manganese Dioxide from the People's Republic, 15988-15995 E8-6165 International International Trade Commission NOTICES Investigation: 1-Hydroxyethylidene-1,1-diphosphonic Acid From China and India, 16058-16059 E8-6091 Frontseating Service Valves From China, 16059-16060 E8-6092 Labor Labor Department See Employment and Training Administration See Occupational Safety and Health Administration Land Land Management Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16055-16057 E8-6104 Availability of the Record of Decision: Resource Management Plan Amendment— Portions of the Roan Plateau Planning Area Designated as Areas of Critical Environmental Concerning Public Lands in Garfield County, CO., 16057 E8-6105 Management Management and Budget Office See Federal Procurement Policy Office Minerals Minerals Management Service RULES Reporting Amendments, 15885-15898 E8-5929 NASA National Aeronautics and Space Administration PROPOSED RULES Federal Acquisition Regulation: FAR Case 2007-017; Service Contractor Employee Personal Conflicts of Interest, 15961-15962 E8-6100 FAR Case 2007-018; Organizational Conflicts of Interest, 15962-15963 E8-6096 National National Council on Disability NOTICES Meetings; Sunshine Act, 16074-16075 08-1078 National Highway National Highway Traffic Safety Administration PROPOSED RULES Federal Motor Vehicle Safety Standards, Child Restraint Systems; Anthropomorphic Test Devices, 15963-15964 08-1072 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16092-16093 E8-6181 NOAA National Oceanic and Atmospheric Administration RULES Fisheries of the Exclusive Economic Zone Off Alaska: Shallow-Water Species Fishery by Vessels Using Trawl Gear in the Gulf of Alaska, 15942-15943 08-1073 NOTICES Magnuson-Stevens Act Provisions; General Provisions for Domestic Fisheries; Application for Exempted Fishing Permits, 15995-15996 E8-6190 National Park National Park Service NOTICES Extension of the Concession Contract for Bighorn Canyon National Recreation Area, MT, 16058 E8-5958 National Science National Science Foundation NOTICES Draft Programmatic Environmental Assessment: Withdrawal of Request for Public Comment, 16075 E8-5993 Nuclear Nuclear Regulatory Commission NOTICES Atomic Safety and Licensing Board: Notice of Opportunity to Make Oral or Written Limited Appearance Statements, 16075-16076 E8-6157 High-Level Waste Repository; Pre-Application Matters, Advisory PAPO Board; Reconstitution, 16077-16078 E8-6222 Meetings: Advisory Committee on Reactor Safeguards, 16076-16077 E8-6156 Occupational Occupational Safety and Health Administration NOTICES Susan Harwood Training Grant Program, 2008 FY; Availability of Funds, 16067-16074 E8-6108 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Pipeline Safety: Issues Related to Mechanical Couplings Used in Natural Gas Distribution Systems, 16093 E8-6155 Postal Postal Regulatory Commission NOTICES Facility Tour, 16078 E8-6187 Rural Rural Business-Cooperative Service NOTICES Request for Proposals: FY 2008 Funding Opportunity for 1890 Land-Grant Institutions Rural Entrepreneurial Outreach and Development Initiative, 15970-15977 E8-6129 SEC Securities and Exchange Commission NOTICES Options Price Reporting Authority: Plan for Reporting Consolidated Options Last Sale Reports and Quotation Information; Proposed Amendment, 16078-16079 E8-6124 Self-Regulatory Organizations; Proposed Rule Changes: American Stock Exchange LLC, 16079-16082 E8-6125 E8-6126 NASDAQ Stock Market LLC, 16082-16086 E8-6123 E8-6127 Options Clearing Corporation, 16086-16087 E8-6128 Social Social Security Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16087-16089 E8-5983 State State Department RULES North Atlantic Treaty Organization (NATO): Amendment to the International Traffic in Arms Regulations, 15885 E8-6019 NOTICES Culturally Significant Objects Imported for Exhibition Determinations; Jeff Koons on the Roof, 16089 E8-6262 Maria Sibylla Merian & Daughters-Women of Art and Science, 16089 E8-6204 Meetings: United States-Chile Environment Affairs Council, 16089-16090 E8-6207 Receipt of Application for Presidential Permit for Border Facilities Related to Frontera Juarez Pipeline, etc., 16090-16091 E8-6206 Substance Substance Abuse and Mental Health Services Administration NOTICES Fiscal Year 2008 Funding Opportunity: Intent to Award a Single Source Grant to the American Society of Addiction Medicine, 16026-16027 E8-6084 Transportation Transportation Department See Federal Aviation Administration See National Highway Traffic Safety Administration See Pipeline and Hazardous Materials Safety Administration Transportation Transportation Security Administration NOTICES Transportation Worker Identification Credential (TWIC): Enrollment Dates for the Ports of New London, CT; Bay City, MI; and Point Comfort, TX., 16033 E8-6076 MISSING FOR: U.S. Citizenship and Immigration Services U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16033-16034 E8-6102 Immigration U.S. Immigration and Customs Enforcement NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 16034-16036 E8-6169 E8-6170 E8-6171 Veterans Veterans Affairs Department NOTICES Privacy Act; Systems of Records, 16093-16108 E8-6120 E8-6143 E8-6144 Separate Parts In This Issue Part II Federal Trade Commission, 16110-16138 E8-6059 Part III Housing and Urban Development Department, 16140-16177 E8-6101 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 73 59 Wednesday, March 26, 2008 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 201 [Regulation A] Extensions of Credit by Federal Reserve Banks AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board of Governors of the Federal Reserve System (Board) has adopted final amendments to its Regulation A to reflect the Board's approval of a reduction in the primary credit rate at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board's primary credit rate action. DATES: The amendments to part 201 (Regulation A) are effective March 26, 2008. The rate changes for primary and secondary credit were effective on the dates specified in 12 CFR 201.51, as amended. FOR FURTHER INFORMATION CONTACT: Jennifer J. Johnson, Secretary of the Board (202/452-3259); for users of Telecommunication Devices for the Deaf

(TDD)only, contact 202/263-4869. SUPPLEMENTARY INFORMATION: The Federal Reserve Banks make primary and secondary credit available to depository institutions as a backup source of funding on a short-term basis, usually overnight. The primary and secondary credit rates are the interest rates that the twelve Federal Reserve Banks charge for extensions of credit under these programs. In accordance with the Federal Reserve Act, the primary and secondary credit rates are established by the boards of directors of the Federal Reserve Banks, subject to the review and determination of the Board. On the dates listed below, the Board approved requests by eight Reserve Banks to reduce by 25 basis points the primary credit rate in effect at those Federal Reserve Banks, thereby decreasing from 3.50 percent to 3.25 percent the rate that each of those Reserve Banks charged for extensions of primary credit. As a result of the Board's action on the primary credit rate, the rate that each of those Reserve Banks charged for extensions of secondary credit automatically decreased from 4.00 percent to 3.75 percent under the secondary credit rate formula. The rate changes for primary and secondary credit were effective on the dates specified in the following tables. *Primary credit* under 12 CFR 201.4(a) Federal Reserve Bank Rate Effective Boston 3.25 March 17, 2008. New York 3.25 March 16, 2008. Cleveland 3.25 March 17, 2008. Richmond 3.25 March 17, 2008. Chicago 3.25 March 17, 2008. Minneapolis 3.25 March 17, 2008. Kansas City 3.25 March 17, 2008. San Francisco 3.25 March 17, 2008. *Secondary credit* under 12 CFR 201.4(b) Federal Reserve Bank Rate Effective Boston 3.75 March 17, 2008. New York 3.75 March 16, 2008. Cleveland 3.75 March 17, 2008. Richmond 3.75 March 17, 2008. Chicago 3.75 March 17, 2008. Minneapolis 3.75 March 17, 2008. Kansas City 3.75 March 17, 2008. San Francisco 3.75 March 17, 2008. The Board's action narrowed the spread between the primary credit rate and the Federal Open Market Committee's target federal funds rate to 25 basis points. As indicated in the Board's press release announcing this action, the changes to the primary credit discount window facility were intended to bolster market liquidity and promote orderly market functioning. In addition, the press release stated that the Board had approved an increase in the maximum maturity of primary credit loans to 90 days from 30 days. Subsequently, the Board approved requests by each of the twelve Federal Reserve Banks to decrease the primary credit rate in effect at each of the Reserve Banks to 2.50 percent. As a result of the Board's action on the primary credit rate, the rate that each Reserve Bank charges for extensions of secondary credit automatically decreased to 3.00 percent under the secondary credit rate formula. The final amendments to Regulation A reflect these rate changes. The decrease in the primary credit rate was associated with a similar decrease in the target for the federal funds rate (from 3.00 percent to 2.25 percent) approved by the Federal Open Market Committee (Committee) and announced at the same time. A press release announcing these actions noted that: Recent information indicates that the outlook for economic activity has weakened further. Growth in consumer spending has slowed and labor markets have softened. Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters. Inflation has been elevated, and some indicators of inflation expectations have risen. The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization. Still, uncertainty about the inflation outlook has increased. It will be necessary to continue to monitor inflation developments carefully. Today's policy action, combined with those taken earlier, including measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain. The Committee will act in a timely manner as needed to promote sustainable economic growth and price stability. Regulatory Flexibility Act Certification Pursuant to the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Board certifies that the new primary and secondary credit rates will not have a significantly adverse economic impact on a substantial number of small entities because the final rule does not impose any additional requirements on entities affected by the regulation. Administrative Procedure Act The Board did not follow the provisions of 5 U.S.C. 553(b) relating to notice and public participation in connection with the adoption of these amendments because the Board for good cause determined that delaying implementation of the new primary and secondary credit rates in order to allow notice and public comment would be unnecessary and contrary to the public interest in fostering price stability and sustainable economic growth. For these same reasons, the Board also has not provided 30 days prior notice of the effective date of the rule under section 553(d). List of Subjects in 12 CFR Part 201 Banks, Banking, Federal Reserve System, Reporting and recordkeeping. Authority and Issuance For the reasons set forth in the preamble, the Board is amending 12 CFR Chapter II as follows: PART 201—EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A) 1. The authority citation for part 201 continues to read as follows: Authority: 12 U.S.C. 248(i)-(j), 343 *et seq.* , 347a, 347b, 347c, 348 *et seq.* , 357, 374, 374a, and 461. 2. In § 201.51, paragraphs

(a)and

(b)are revised to read as follows: § 201.51 Interest rates applicable to credit extended by a Federal Reserve Bank. 1 1 The primary, secondary, and seasonal credit rates described in this section apply to both advances and discounts made under the primary, secondary, and seasonal credit programs, respectively.

(a)*Primary credit.* The interest rates for primary credit provided to depository institutions under § 201.4(a) are: Federal Reserve Bank Rate Effective Boston 2.50 March 18, 2008. New York 2.50 March 18, 2008. Philadelphia 2.50 March 20, 2008. Cleveland 2.50 March 18, 2008. Richmond 2.50 March 19, 2008. Atlanta 2.50 March 19, 2008. Chicago 2.50 March 18, 2008. St. Louis 2.50 March 19, 2008. Minneapolis 2.50 March 19, 2008. Kansas City 2.50 March 18, 2008. Dallas 2.50 March 18, 2008. San Francisco 2.50 March 18, 2008.

(b)*Secondary credit.* The interest rates for secondary credit provided to depository institutions under 201.4(b) are: Federal Reserve Bank Rate Effective Boston 3.00 March 18, 2008. New York 3.00 March 18, 2008. Philadelphia 3.00 March 20, 2008. Cleveland 3.00 March 18, 2008. Richmond 3.00 March 19, 2008. Atlanta 3.00 March 19, 2008. Chicago 3.00 March 18, 2008. St. Louis 3.00 March 19, 2008. Minneapolis 3.00 March 19, 2008. Kansas City 3.00 March 18, 2008. Dallas 3.00 March 18, 2008. San Francisco 3.00 March 18, 2008. By order of the Board of Governors of the Federal Reserve System, March 21, 2008. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. E8-6107 Filed 3-25-08; 8:45 am] BILLING CODE 6210-02-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0340; Directorate Identifier 2008-CE-020-AD; Amendment 39-15440; AD 2008-06-28] RIN 2120-AA64 Airworthiness Directives; Avidyne Corporation Primary Flight Displays (Part Numbers 700-00006-000, -001, -002, -003, and -100) AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. SUMMARY: The FAA is adopting a new airworthiness directive

(AD)for certain Avidyne Corporation (Avidyne) Primary Flight Displays

(PFDs)(Part Numbers (P/Ns) 700-00006-000, -001, -002, -003, and -100) that are installed on airplanes. This AD requires a check of the maintenance records and inspection of the PFD (if necessary) to determine if an affected serial number PFD is installed. If an affected serial number PFD is installed, this AD requires you to incorporate information that limits operation when certain conditions for the PFD or backup instruments exist. This AD results from several field reports of PFDs displaying incorrect altitude and airspeed information. We are issuing this AD to prevent certain conditions from existing when PFDs display incorrect attitude, altitude, and airspeed information. This could result in airspeed/altitude mismanagement or spatial disorientation of the pilot with consequent loss of airplane control, inadequate traffic separation, or controlled flight into terrain. DATES: This AD becomes effective on April 10, 2008. We must receive any comments on this AD by May 27, 2008. ADDRESSES: Use one of the following addresses to comment on this AD. • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov.* Follow the instructions for submitting comments. • *Fax:*

(781)402-7400; fax:

(781)402-7599. To view the comments to this AD, go to *http://www.regulations.gov.* The docket number is FAA-2008-0340; Directorate Identifier 2008-CE-020-AD. FOR FURTHER INFORMATION CONTACT: Solomon Hecht, Aerospace Engineer, Boston Aircraft Certification Office, 12 New England Executive Park, Burlington, MA 01803; telephone:

(781)238-7159; fax:

(781)238-7170. SUPPLEMENTARY INFORMATION: Discussion We received several field reports of PFDs displaying incorrect altitude and airspeed information. These occurrences included incorrect display of information at system startup, including one or more of the following: • Altitude significantly in error when compared to field elevation with local barometric correction setting entered on PFD. • Altitude significantly in error when compared to backup altimeter with identical barometric correction settings. • Non-zero airspeed (inconsistent with high winds or propwash from a nearby airplane) indicated at system startup. • Altitude or airspeed indications that vary noticeably after startup under static conditions. • Erroneous airspeed indications in combination with erroneous attitude indications. • A steady or intermittent “red X” in place of the airspeed indicator, altimeter, vertical speed indicator, or attitude indicator. The conditions described above occur because of a manufacturing process defect on a certain batch of PFD serial numbers during incorporation of a design improvement on the air data unit assembly. The root cause of this manufacturing process defect is still being analyzed. This condition, if not corrected, could result in airspeed/altitude mismanagement or spatial disorientation of the pilot and consequent loss of airplane control, inadequate traffic separation, or controlled flight into terrain. FAA's Determination and Requirements of This AD We are issuing this AD because we evaluated all the information and determined the unsafe condition described previously is likely to exist or develop on type design airplanes that incorporate one of the affected PFDs. This AD requires a check of the maintenance records and inspection of the PFD (if necessary) to determine if an affected serial number PFD is installed. If an affected serial number PFD is installed, this AD requires you to incorporate information that limits operation when certain conditions for the PFD or backup instruments exist. This is considered interim action. Avidyne is working on a process to rework and/or modify the affected PFD units. The FAA will consider taking additional rulemaking action to supersede this AD and terminate the above limitations when Avidyne completes the process development, and the FAA approves it as addressing the unsafe condition. FAA's Determination of the Effective Date An unsafe condition exists that requires the immediate adoption of this AD. The FAA has found that the risk to the flying public justifies waiving notice and comment prior to adoption of this rule because PFDs that display incorrect attitude, altitude, and airspeed information could result in airspeed/altitude mismanagement or spatial disorientation of the pilot with consequent loss of airplane control, inadequate traffic separation, or controlled flight into terrain. Therefore, we determined that notice and opportunity for public comment before issuing this AD are impracticable and that good cause exists for making this amendment effective in fewer than 30 days. Comments Invited This AD is a final rule that involves requirements affecting flight safety, and we did not precede it by notice and an opportunity for public comment. We invite you to send any written relevant data, views, or arguments regarding this AD. Send your comments to an address listed under the ADDRESSES section. Include the docket number “FAA-2008-0340; Directorate Identifier 2008-CE-020-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of the AD. We will consider all comments received by the closing date and may amend the 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 we receive concerning this AD. 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 this AD:

(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)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 AD and placed it in the AD docket. Examining the AD Docket You may examine the AD docket that contains the AD, the regulatory evaluation, any comments received, and other information 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 Docket Office (telephone

(800)647-5527) is located at the street address stated in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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 airworthiness directive (AD): **2008-06-28 Avidyne Corporation:** Amendment 39-15440; Docket No. FAA-2008-0340; Directorate Identifier 2008-CE-020-AD. Effective Date

(a)This AD becomes effective on April 10, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to Avidyne Corporation (Avidyne) Primary Flight Displays

(PFDs)(Part Numbers (P/Ns) 700-00006-000, 700-00006-001, 700-00006-002, 700-00006-003, and 700-00006-100) that are installed on, but not limited to the following airplanes that are certificated in any category:

(1)Adam Aircraft Model A500;

(2)Cessna Aircraft Company Model 441 (STEC Alliant Supplemental Type Certificate

(STC)No. SA09547AC-D incorporated);

(3)Cessna Aircraft Company Models LC42-550FG and LC41-550FG (Columbia Aircraft Manufacturing and The Lancair Company previously held the type certificate for these airplanes);

(4)Cirrus Design Corporation Models SR20 and SR22;

(5)Diamond Aircraft Industries GmbH Model DA 40;

(6)Hawker Beechcraft Corporation Model E90 (STEC Alliant STC No. SA09545AC-D incorporated);

(7)Hawker Beechcraft Corporation Model 200 series (STEC Alliant STC No. SA09543AC-D incorporated); and

(8)Piper Aircraft, Inc. Models PA-28-161, PA-28-181, PA-28R-201, PA-32R-301 (HP), PA-32R-301T, PA-32-301FT, PA-32-301XTC, PA-34-220T, PA-44-180, PA-46-350P, PA-46R-350T, and PA-46-500TP. Unsafe Condition

(d)This AD is the result of several field reports of PFDs displaying incorrect altitude and airspeed information. We are issuing this AD to prevent certain conditions from existing when PFDs display incorrect attitude, altitude, and airspeed information. This could result in airspeed/altitude mismanagement or spatial disorientation of the pilot with consequent loss of airplane control, inadequate traffic separation, or controlled flight into terrain. Compliance

(e)To address this problem, you must do the following, unless already done: Table 1.—Actions, Compliance, and Procedures Actions Compliance Procedures

(1)Do a logbook check of maintenance records to determine if any PFD (P/Ns 700-00006-000, 700-00006-001, 700-00006-002, 700-00006-003, or 700-00006-100) with any affected serial number listed in TABLE 2—Serial Numbers of Affected PFDs is installed

(i)If, as a result of this check, you find any PFD installed with an affected serial number, do the action required by paragraph (e)(3)(i) or (e)(3)(ii) of this AD.

(ii)If, as a result of this check, you cannot positively identify the serial number of the PFD, do the inspection required in paragraph (e)(2) of this AD.

(iii)If, as a result of this check, you positively identify that the PFD installed does not have a serial number affected by this AD, then no further action is required. Within 15 days after April 10, 2008 (the effective date of this AD) The owner/operator holding at least a private pilot certificate as authorized by section 43.7 of the Federal Aviation Regulations (14 CFR 43.7) may do the logbook check. Make an entry into the aircraft logbook showing compliance with this portion of the AD in accordance with section 43.9 of the Federal Aviation Regulations (14 CFR 43.9).

(2)If you find, as a result of the check required by paragraph (e)(1) of this AD you cannot positively identify the serial number of the PFD, inspect any PFD (P/Ns 700-00006-000, 700-00006-001, 700-00006-002, 700-00006-003, or 700-00006-100) for any affected serial number listed in TABLE 2 —Serial Numbers of Affected PFDs. You may do the requirement of paragraph (e)(3) of this AD instead of this inspection Within 15 days after April 10, 2008 (the effective date of this AD) Not Applicable.

(3)If you find, as a result of the check required by paragraph (e)(1) of this AD or the inspection required by paragraph (e)(2) of this AD, any PFD installed with an affected serial number, do whichever of the following applies:

(i)For airplanes with an airplane flight manual (AFM), pilots operating handbook (POH), or airplane flight manual supplement (AFMS), incorporate the language in the Appendix of this AD into the Limitations section

(ii)For airplanes without an AFM, POH, or AFMS, do the following:

(A)Incorporate the language in the Appendix of this AD into your aircraft records; and

(B)fabricate a placard (using at least 1/8 -inch letters) with the following words and install the placard on the instrument panel within the pilot's clear view: “AD 2008-06-28 CONTAINS LIMITATIONS REGARDING AVIDYNE PRIMARY FLIGHT DISPLAYS

(PFD)AND REQUIRED INCORPORATION OF THESE LIMITATIONS INTO THE AIRCRAFT RECORDS. YOU MUST FOLLOW THESE LIMITATIONS.” Within 15 days after April 10, 2008 (the effective date of this AD) The owner/operator holding at least a private pilot certificate as authorized by section 43.7 of the Federal Aviation Regulations (14 CFR 43.7) may insert the information into the AFM, POH, AFMS, or maintenance records as required in paragraph (e)(3)(i) or (e)(3)(ii)(A) of this AD and/or fabricate the placard required in paragraph (e)(3)(ii)(B) of this AD. Make an entry into the aircraft records showing compliance with these portions of the AD in accordance with section 43.9 of the Federal Aviation Regulations (14 CFR 43.9).

(4)Do not install any PFD (P/Ns 700-00006-000, 700-00006-001, 700-00006-002, 700-00006-003, or 700-00006-100) with any affected serial number listed in TABLE 2—Serial Numbers of Affected PFDs As of the effective date of this AD Not Applicable. Note 1: If you have an AFM, POH, or AFMS, you may fabricate and install a placard as described in paragraph (e)(3)(ii) of this AD in addition to, but not instead of, the Limitations section requirement of paragraph (e)(3)(i) of this AD. Note 2: Avidyne Service Alert No. SA-08-001, dated February 12, 2008, pertains to the subject matter of this AD. The service information cautions that all pilots should be vigilant in conducting proper preflight and in-flight checks of instrument accuracy. Table 2.—Serial Numbers of Affected PFDs [AD 2008-06-28] D1023, D1031, D1037, D1069, D1075, D1080, D1084, D1090, D1101, D1102, D1106, D1112, D1115, D1136, D1138, D1141, D1144, D1158, D1170, D1172, D1174, D1178, D1188, D1197, D1199, D1212, D1234, D1240, D1249, D1253, D1254, D1256, D1259, D1260, D1262, D1270, D1272, D1277, D1283, D1288, D1313, D1319, D1327, D1351, D1364, D1380, D1387, D1391, D1396, D1405, D1412, D1428, D1433, D1434, D1435, F0006, F0011, F0021, F0030, F0031, F0032, F0035, 20002067, 20003147, 20003296, 20003316, 20004297, 20005316, 20005487, 20008167, 20008227, 20008255, 20009297, 20009476, 20010177, 20010255, 20011396, 20011456, 20012337, 20012506, 20013406, 20014027, 20014227, 20015357, 20017286, 20018317, 20018425, 20018486, 20019067, 20019297, 20020297, 20021067, 20021197, 20022177, 20022207, 20022217, 20022286, 20022287, 20022296, 20023197, 20023377, 20024196, 20024217, 20024297, 20024397, 20024407, 20024425, 20025067, 20025177, 20025217, 20025317, 20026067, 20026197, 20026207, 20026265, 20026377, 20026407, 20026506, 20027177, 20027226, 20027317, 20027377, 20028177, 20028337, 20029177, 20029197, 20029246, 20029265, 20029506, 0030197, 20030237, 20031207, 20031217, 20031406, 20031407, 20031516, 20032067, 20032265, 20032337, 20032516, 20033337, 20034207, 20034327, 20035177, 20036197, 20036237, 20036397, 20037265, 20037285, 20038127, 20038197, 20038337, 20039177, 20040127, 20040177, 20040197, 20040265, 20040317, 20041177, 20042197, 20042265, 20042317, 20042337, 20043197, 20043215, 20043237, 20043247, 20044226, 20044237, 20044285, 20045215, 20045265, 20045437, 20046215, 20047127, 20047147, 20047197, 20048197, 20048215, 20048247, 20049147, 20049357, 20050147, 20050287, 20050346, 20050434, 20051215, 20052215, 20053247, 20053257, 20053357, 20054247, 20054257, 20054357, 20055087, 20056247, 20056257, 20057237, 20057346, 20058346, 20061087, 20061247, 20062087, 20062247, 20063087, 20064087, 20064147, 20064226, 20064337, 20066147, 20067087, 20068147, 20068337, 20069087, 20071237, 20072087, 20073087, 20073346, 20073506, 20074207, 20075087, 20075147, 20075207, 20076217, 20076257, 20077087, 20077506, 20078087, 20078217, 20078257, 20078346, 20078496, 20084257, 20085396, 20087257, 20089257, 20089346, 20090346, 20092297, 20093247, 20094107, 20094416, 20097137, 20098037, 20099107, 20099346, 20099416, 20101416, 20102417, 20103396, 20104246, 20106224, 20111224, 20112224, 20114416, 20115346, 20116346, 20118416, 20123416, 20124456, 20126416, 20129346, 20135337, 20139336, 20140336, 20142037, 20142296, 20146037, 20147336, 20153037, 20158097, 20161097, 20164097, 20165097, 20166097, 20170097, 20170175, 20172175, 20177175, 20202257, 20204175, 20209246, 20214175, 20216265, 20217175, 20224175, 20224265, 20229265, 20232175, 20233175, 20236175, 20236265, 20241175, 20243265, 20265355, 20272355, 20273355, 20278355, 20281355, 20302384, 20308384, 20314384, 20317384, 20320305, 20321376, 20330376, 20330384, 20343384, 20347305, 20348305, 20350305, 20356305, 20359305, 20378475, 20380225, 20381225, 20382475, 20388225, 20402174, 20403174, 20438345, 20440345, 20447425, 20452315, 20458315, 20462315, 20467315, 20540094, 20550094, 20576445, 20580445, 20581445, 20582525, 20584525, 20591525, 20595065, 20599065, 20605065, 20615116, 20618065, 20638116, 20656284, 20732074, 20735176, 20739176, 20755493, 20814015, 20815015, 20974365, 20978365, 20978434, 20986365, 20990434, 20998365, 21002365, 21056395, 21060395, 21063184, 21063395, 21067184, 21070184, 21075395, 21191045, 21200045, 21219045, 21294414, 21311414, 21315414, 21324414, 21325414, 21330414, 21334414, 21340414, 21491056, 21493056, 21596354, 21603435, 21604435, 21606435, 21608435, 21610435, 21614435, 21646086, 21668086, 21812514, 21823514, 21826514, 21836304, 21839304, 21852304, 22310186, 22378026, 22380026, 22398294, 22401294, 22405085, 22412385, 22418026, 22418385, 22419026, 22470524, 22471524, 22472524, 22479524, 22483524, 22486524, 22523204, 22525264, 22531204, 22559135, 22568135, 22572135, 22578135, 22579135, 22586135, 22602135, 22603135, 22608135, 22642493, 22647493, 22682076, 22908334, 22921334, 22961354, 23166495, 23169495, 23173495, 23175495, 23182495, 23371455, 23378455, 23443264, 23445264, 23448264, 23581244, 23602244, 23737136, 23738136, 24021335, 24029335, 24231144, 24238144, 24248144, 24381324, 24478515, 24735144, 24746144, 24750144, 24772085, 24773085, 24865155, 24867155, 24870155, 24990084, 24991084, 24993084, 24996084, 25023034, 25027034, 25522465, 25525465, 25530465, 25532465, 25538465, 25600465, 25618106, 26287114, 26528095, 26547095, 26553095, 26569464, 26571095, 26572095, 26584095, 26588464, 26592464, 27865034, 28478495, 28519495, 29019044, 29023044, 29029044, 29031044, 29032044, 29512216, 29514216, and 29522216. Alternative Methods of Compliance (AMOCs)

(f)The Manager, Boston Aircraft Certification Office (ACO), 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: Solomon Hecht, Aerospace Engineer, Boston ACO, 12 New England Executive Park, Burlington, MA 01803; telephone:

(781)238-7159; fax:

(781)238-7170. 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. Additional Information

(g)For the service alert referenced in this AD, contact Avidyne Corporation, 55 Old Bedford Road, Lincoln, MA 01773; telephone:

(781)402-7400; fax:

(781)402-7599. Appendix to AD 2008-06-28 Limitations Regarding Avidyne Primary Flight Displays

(PFDs)Before conducting flight operations, pilots must review and be familiar with the Crosscheck Monitor section of the Avidyne Primary Flight Display Pilot's Guide and all limitations contained in the aircraft operating handbook. As a normal practice, all pilots should be vigilant in conducting proper preflight and in-flight checks of instrument accuracy, including: • Preflight check of the accuracy of both the primary and backup altimeter against known airfield elevation and against each other. • Verification of airspeed indications consistent with prevailing conditions at startup, during taxi, and prior to takeoff. • “Airspeed alive” check and reasonable indications during takeoff roll. • Maintenance of current altimeter setting in both primary and backup altimeters. • Cross-check of primary and backup altimeters at each change of altimeter setting and prior to entering instrument meteorological conditions (IMC). • Cross-check of primary and backup altimeters and validation against other available data, such as glideslope intercept altitude, prior to conducting any instrument approach. • Periodic cross-checks of primary and backup airspeed indicators, preferably in combination with altimeter cross-checks. For flight operations under instrument flight rules

(IFR)or in conditions in which visual reference to the horizon cannot be reliably maintained (that is IMC, night operations, flight operations over water, in haze or smoke) and the pilot has reasons to suspect that any source (PFD or back-up instruments) of attitude, airspeed, or altitude is not functioning properly, flight under IFR or in these conditions must not be initiated (when condition is determined on the ground) and further flight under IFR or in these conditions is prohibited until equipment is serviced and functioning properly. Operation of aircraft not equipped with operating backup (or standby) attitude, altimeter, and airspeed indicators that are located where they are readily visible to the pilot is prohibited. Pilots must frequently scan and crosscheck flight instruments to make sure the information depicted on the PFD correlates and agrees with the information depicted on the backup instruments. Issued in Kansas City, Missouri, on March 13, 2008. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-5701 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2005-21242; Directorate Identifier 2005-NE-09-AD; Amendment 39-15442; AD 2008-07-01] RIN 2120-AA64 Airworthiness Directives; Turbomeca Arriel 1B, 1D, 1D1, and 1S1 Turboshaft Engines AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is superseding an existing airworthiness directive

(AD)for certain Turbomeca Arriel 1B, 1D, 1D1, and 1S1 turboshaft engines. That AD currently requires initial and repetitive position checks of the gas generator 2nd stage turbine blades on all Turbomeca Arriel 1B, 1D, 1D1, and 1S1 turboshaft engines. That AD also currently requires initial and repetitive replacements of 2nd stage turbines on 1B, 1D, and 1D1 engines only. This AD requires adding a 3,000 hour life limit to Arriel 1B 2nd stage turbine blades. This AD results from reports of failures of second stage turbine blades. We are issuing this AD to prevent failures of the 2nd stage turbine blades, which could result in uncommanded in-flight engine shutdown, and subsequent forced autorotation landing or accident. DATES: This AD becomes effective April 30, 2008. The Director of the Federal Register approved the incorporation by reference of certain publications listed in the regulations as of April 30, 2008. The Director of the Federal Register previously approved the incorporation by reference of Turbomeca Mandatory Alert Service Bulletins A292 72 0809, Update 1, dated October 4, 2005; and A292 72 0810, dated March 24, 2004; as of February 28, 2006 (71 FR 3754, January 24, 2006). ADDRESSES: You can get the service information identified in this AD from Turbomeca, 40220 Tarnos, France; telephone

(33)05 59 74 40 00, fax

(33)05 59 74 45 15. The Docket Operations office is located at Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-0001. FOR FURTHER INFORMATION CONTACT: James Lawrence, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *james.lawrence@faa.gov* ; telephone

(781)238-7176, fax

(781)238-7199. SUPPLEMENTARY INFORMATION: The FAA proposed to amend 14 CFR part 39 by superseding AD 2006-02-08R1, Amendment 39-14721 (71 FR 46390, August 14, 2006), with a proposed AD. The proposed AD applies to certain Turbomeca Arriel 1B, 1D, 1D1, and 1S1 turboshaft engines. We published the proposed AD in the **Federal Register** on March 9, 2007 (72 FR 10622). That action proposed to require: • Initial and repetitive position checks of the 2nd stage turbine blades on Turbomeca Arriel 1B, 1D, 1D1, and 1S1 turboshaft engines. • Replacement of 2nd stage turbines on 1B and 1D1 engines only. • Initially replacing 2nd stage turbines in Arriel 1B, 1D, and 1D1 turboshaft engines. 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 AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone

(800)647-5527) is provided in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. Comments We provided the public the opportunity to participate in the development of this AD. We received no comments on the proposal or on the determination of the cost to the public. Addition of an Optional Terminating Action We have added to the AD, an option to terminate the repetitive position check requirements by installing a new turbine, part number (P/N) 0 292 25 039 0. Correction of a Typographical Error in the Costs of Compliance We corrected the number of turbine replacements in the Costs of Compliance from 587 to 571, and changed the total cost from $3,905,240 to $3,769,760. Conclusion We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance We estimate that this AD will affect 721 engines installed on helicopters of U.S. registry. We also estimate that it will take about 2 work-hours per engine to inspect all 721 engines and 40 work-hours per engine to replace about 571 2nd stage turbines on 1B and 1D1 engines, and that the average labor rate is $80 per work-hour. Required parts would cost about $3,200 per engine. Based on these figures, we estimate the total cost of the AD to U.S. operators to be $3,769,760. 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 this AD:

(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)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 summary of the costs to comply with this AD and placed it in the AD Docket. You may get a copy of this summary at the address listed under ADDRESSES . List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the Federal Aviation Administration amends 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 39-14721 (71 FR 46390, August 14, 2006) and by adding a new airworthiness directive, Amendment 39-15442, to read as follows: **2008-07-01 Turbomeca:** Amendment 39-15442. Docket No. FAA-2005-21242; Directorate Identifier 2005-NE-09-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective April 30, 2008. Affected ADs

(b)This AD supersedes AD 2006-02-08R1, Amendment 39-14721 (71 FR 46390, August 14, 2006). Applicability

(c)This AD applies to Turbomeca Arriel 1B engines fitted with 2nd stage turbine modification TU 148, and Arriel 1D, 1D1, and 1S1 engines that do not incorporate TU 347. Arriel 1B engines are installed on, but not limited to, Eurocopter France AS-350B and AS-350A “Ecureuil” helicopters. Arriel 1D engines are installed on, but not limited to, Eurocopter France AS-350B1 “Ecureuil” helicopters. Arriel 1D1 engines are installed on, but not limited to, Eurocopter France AS-350B2 “Ecureuil” helicopters. Arriel 1S1 engines are installed on, but not limited to, Sikorsky Aircraft S-76A and S-76C helicopters. Unsafe Condition

(d)This AD results from reports of failures of second stage blades. We are issuing this AD to prevent failures of the 2nd stage turbine blades, which could result in uncommanded in-flight engine shutdown, and subsequent forced autorotation landing or accident. 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. Initial Relative Position Check of 2nd Stage Turbine Blades

(f)Do an initial relative position check of the 2nd stage turbine blades using the Turbomeca mandatory alert service bulletins

(ASBs)specified in the following Table 1. Do the check before reaching any of the intervals specified in Table 1 or within 50 hours time-in-service after the effective date of this AD, whichever occurs later. Table 1.—Initial and Repetitive Relative Position Check Intervals of 2nd Stage Turbine Blade Turbomeca engine model Initial relative position check interval Repetitive interval Mandatory Alert Service Bulletin Arriel 1B (modified per TU 148) Within 1,200 hours time-since-new

(TSN)or time-since-overhaul

(TSO)or 3,500 cycles-since-new

(CSN)or cycles-since-overhaul (CSO), whichever occurs earlier Within 200 hours time-in-service-since-last-relative-position-check (TSLRPC) A292 72 0807, Update 1, dated October 26, 2006. Arriel 1D1 and Arriel 1D Within 1,200 hours TSN or TSO or 3,500 CSN or CSO, whichever occurs earlier Within 150 hours TSLRPC A292 72 0809, Update No. 1, dated October 4, 2005. Arriel 1S1 Within 1,200 hours TSN or TSO or 3,500 CSN or CSO, whichever occurs earlier Within 150 hours TSLRPC A292 72 0810, dated March 24, 2004. Repetitive Relative Position Check of 2nd Stage Turbine Blades

(g)Recheck the relative position of 2nd stage turbine blades at the TSLRPC intervals specified in Table 1 of this AD, using the mandatory ASBs indicated. Credit for Previous Relative Position Checks

(h)Relative position checks of 2nd stage turbine blades done using Turbomeca Service Bulletin A292 72 0263, Update 1, 2, 3, or 4, or A292 72 0807, dated March 24, 2004, comply with the initial requirements of paragraph

(f)of this AD. Initial Replacement of 2nd Stage Turbines on Arriel 1B, 1D, and 1D1 Engines

(i)Initially replace the 2nd stage turbine with a new or overhauled 2nd stage turbine as follows:

(1)Before accumulating 1,500 hours TSN or TSO on the module for Arriel 1D and 1D1 engines.

(2)Before accumulating 2,200 hours TSN or TSO on the module or 3,000 total hours TSN on the 2nd stage turbine blades, whichever occurs first, for Arriel 1B engines. Repetitive Replacements of 2nd Stage Turbines on Arriel 1B, 1D, and 1D1 Engines

(j)Thereafter, replace the 2nd stage turbine with a new or overhauled 2nd stage turbine within every 1,500 hours TSN or TSO on the module for Arriel 1D and 1D1 engines, and within every 2,200 hours TSN or TSO on the module or 3,000 total hours TSN on the 2nd stage turbine blades, for Arriel 1B engines. Criteria for Overhauled 2nd Stage Turbines

(k)Do the following to overhauled 2nd stage turbines, referenced in paragraphs

(i)and

(j)of this AD:

(1)You must install new blades in the 2nd stage turbines of overhauled Arriel 1D and 1D1 engines.

(2)You may install either overhauled blades with fewer than 3,000 total hours TSN or new blades in the 2nd stage turbines of overhauled Arriel 1B engines. Relative Position Check Continuing Compliance Requirements

(l)All 2nd stage turbines, including those that are new or overhauled, must continue to comply with the actions specified in paragraphs (f), (g), and

(j)of this AD. Optional Terminating Action

(m)Installing a new turbine, P/N 0 292 25 039 0, reference TU 347, terminates the requirements to perform the repetitive actions specified in paragraphs

(g)and

(j)of this AD. Alternative Methods of Compliance

(n)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

(o)The EASA airworthiness directive 2007-0018R1, dated August 14, 2007, also addresses the subject of this AD.

(p)Contact James Lawrence, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; e-mail: *james.lawrence@faa.gov* ; telephone

(781)238-7176, fax

(781)238-7199, for more information about this AD. Material Incorporated by Reference

(q)You must use the service information specified in Table 2 of this AD to perform the actions required by this AD.

(1)The Director of the Federal Register approved the incorporation by reference of Turbomeca Mandatory Alert Service Bulletin A292 72 0807, Update 1, dated October 26, 2006, in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.

(2)The Director of the Federal Register previously approved the incorporation by reference of Turbomeca Mandatory Alert Service Bulletins A292 72 0809, Update 1, dated October 4, 2005; and A292 72 0810, dated March 24, 2004; as of February 28, 2006 (71 FR 3754, January 24, 2006).

(3)Contact Turbomeca, 40220 Tarnos, France; telephone

(33)05 59 74 40 00, fax

(33)05 59 74 45 15 for a copy of this service information. You may review copies at the FAA, New England Region, 12 New England Executive Park, Burlington, MA; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Table 2.—Incorporation by Reference Turbomeca Mandatory Alert Service Bulletin No. Page Update No. Date A292 72 0807, Total Pages: 18 ALL 1 October 26, 2006. A292 72 0809, Total Pages: 18 ALL 1 October 4, 2005. A292 72 0810, Total Pages: 14 ALL Original March 24, 2004. Issued in Burlington, Massachusetts, on March 17, 2008. Ann C. Mollica, Acting Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E8-5819 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0056 Directorate Identifier 2007-CE-096-AD; Amendment 39-15446; AD 2008-07-05] RIN 2120-AA64 Airworthiness Directives; APEX Aircraft Model CA 10B Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued 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: A CAP 10B experienced an emergency landing after its front fuel tank collapsed and rendered inoperative the left rudder pedals which were blocked in neutral position. Investigation and the metallurgical examination revealed that the fuel tank straps had fractured as a result of fatigue. The tank support straps had logged around 7000 hours time-in-service (TIS). DGAC France Airworthiness Directive

(816)329-4145; fax:

(816)329-4090. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on January 24, 2008 (73 FR 4121). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states: A CAP 10B experienced an emergency landing after its front fuel tank collapsed and rendered inoperative the left rudder pedals which were blocked in neutral position. Investigation and the metallurgical examination revealed that the fuel tank straps had fractured as a result of fatigue. The tank support straps had logged around 7000 hours time-in-service (TIS). DGAC France Airworthiness Directive

(AD)F-2004-071 was issued to introduce a 4000 hour life-limit for the tank support straps and to require replacement of straps which had exceeded this life-limit. Since then, a front tank support has been found damaged during an inspection before reaching 4000 hours TIS. The present AD supersedes DGAC France AD F-2004-071, reduces to 2000 hours the life-limit for the tank support straps and requires replacement of straps which have exceeded the new life-limit. These actions are intended to address the identified unsafe condition so as to prevent fatigue cracks from occurring in the tank support straps before the established safe life is reached. The MCAI requires the life-limit of the front fuel tank strap be reduced from 4,000 hours TIS to 2,000 hours TIS and the replacement of front fuel tank straps that have exceeded the new life-limit. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This 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 required 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 AD. Costs of Compliance We estimate that this AD will affect 31 products of U.S. registry. We also estimate that it will take about 19 work-hours per product to comply with basic requirements of this AD. The average labor rate is $80 per work-hour. Required parts would cost about $65 per product. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $49,135 or $1,585 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 AD:

(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)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 AD and placed it in the AD Docket. 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 the NPRM, 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. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-05 APEX Aircraft:** Amendment 39-15446; Docket No. FAA-2008-0056; Directorate Identifier 2007-CE-096-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective April 30, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to CAP 10 B airplanes, all serial numbers, certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 28: Fuel. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: A CAP 10B experienced an emergency landing after its front fuel tank collapsed and rendered inoperative the left rudder pedals which were blocked in neutral position. Investigation and the metallurgical examination revealed that the fuel tank straps had fractured as a result of fatigue. The tank support straps had logged around 7,000 hours time-in-service (TIS). DGAC France Airworthiness Directive

(AD)F-2004-071 was issued to introduce a 4,000 hour life-limit for the tank support straps and to require replacement of straps which had exceeded this life-limit. Since then, a front tank support has been found damaged during an inspection before reaching 4,000 hours TIS. The present AD supersedes DGAC France AD F-2004-071, reduces to 2,000 hours the life-limit for the tank support straps and requires replacement of straps which have exceeded the new life-limit. These actions are intended to address the identified unsafe condition so as to prevent fatigue cracks from occurring in the tank support straps before the established safe life is reached. The MCAI requires the life-limit of the front fuel tank strap be reduced from 4,000 hours TIS to 2,000 hours TIS and the replacement of front fuel tank straps that have exceeded the new life-limit. Actions and Compliance

(f)Unless already done, do the following actions:

(1)When you accumulate a total of 2,000 hours TIS on the strap or within the next 30 days after April 30, 2008 (the effective date of this AD), whichever occurs later, replace the front fuel tank support strap, part number (P/N) CAP 10-70-08-01, using the instructions in the maintenance manual.

(2)Repetitively thereafter in intervals not to exceed 2,000 hours TIS on the strap replace the front fuel tank support strap, P/N CAP 10-70-08-01, using the instructions in the maintenance manual.

(3)If you are unable to establish the accumulated hours TIS on the front fuel tank support strap, P/N CAP 10-70-08-01, you must use the total hours TIS accumulated on the airplane for the accumulated hours TIS on the strap.

(4)Within the next 30 days after the effective date of this AD update the airworthiness limitations section of your maintenance program to reflect the life limit change of P/N CAP 10-70-08-01 from 4,000 hours TIS to 2,000 hours TIS using APEX Aircraft Service Bulletin No. 040102 R1, Revision 1, dated September 18, 2007. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows: The FAA has established a more universal compliance time for all airplanes. This gives all owners/operators at least 30 days to comply with the AD. 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: Sarjapur Nagarajan, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4145; 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 AD No.: 2007-0285, dated November 13, 2007; and APEX Aircraft Service Bulletin No. 040102 R1, Revision 1, dated September 18, 2007, for related information. Material Incorporated by Reference

(i)You must use APEX Aircraft Service Bulletin No. 040102 R1, Revision 1, dated September 18, 2007, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Apex Aircraft, Bureau de Navigabilité, 1, route de Troyes, 21121 DAROIS—France; telephone: +33 380 35 65 10; fax +33 380 35 65 15; e-mail: *airworthiness@apex-aircraft.com* ; Internet: *http://www.apex-aircraft.com* .

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Issued in Kansas City, Missouri, on March 17, 2008. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-5955 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0055; Directorate Identifier 2007-CE-099-AD; Amendment 39-15447; AD 2008-07-06] RIN 2120-AA64 Airworthiness Directives; Pacific Aerospace Corporation, Ltd. Models FU24-954 and FU24A-954 Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued 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: This AD is prompted by reports of loosening rivets securing the threaded inserts in the ends of the aileron control pushrods P/N 08-24015-1. Aileron push-pull rods P/N 08-24015-1 have been installed on aircraft embodying PAC/FU/0340. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective April 30, 2008. On April 30, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. ADDRESSES: You may examine the AD docket on the Internet at *http://www.regulations.gov* or in person at Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. 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: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on January 24, 2008 (73 FR 4127). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states: This AD is prompted by reports of loosening rivets securing the threaded inserts in the ends of the aileron control pushrods P/N 08-24015-1. Aileron push-pull rods P/N 08-24015-1 have been installed on aircraft embodying PAC/FU/0340. The MCAI requires an initial and repetitive inspection of the aileron and elevator control push-rods and requires corrective action as necessary. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between this 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 required 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 AD. Costs of Compliance We estimate that this AD will affect 2 products of U.S. registry. We also estimate that it will take about 1 work-hour per product to comply with basic requirements of this AD. The average labor rate is $80 per work-hour. Required parts will cost about $100 per product. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $360 or $180 per product. In addition, we estimate that any necessary follow-on actions would take about 5 work-hours and require parts costing $100, for a cost of $500 per product. We have no way of determining the number of products that may need these actions. 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 AD:

(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)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 AD and placed it in the AD Docket. 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 the NPRM, 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. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-06 Pacific Aerospace Corporation, Ltd.:** Amendment 39-15447; Docket No. FAA-2008-0055; Directorate Identifier 2007-CE-099-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective April 30, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to models FU24-954 and FU24A-954 airplanes, all serial numbers, certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 27: Flight Controls. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: This AD is prompted by reports of loosening rivets securing the threaded inserts in the ends of the aileron control pushrods P/N 08-24015-1. Aileron push-pull rods P/N 08-24015-1 have been installed on aircraft embodying PAC/FU/0340. The MCAI requires an initial and repetitive inspection of the aileron and elevator control push-rods and requires corrective action as necessary. Actions and Compliance

(f)Unless already done, do the following actions:

(1)Within the next 50 hours time-in-service

(TIS)after April 30, 2008 (the effective date of this AD), inspect the pushrod ends on the aileron and elevator control pushrods part number (P/N) 08-24015-1 following Pacific Aerospace Limited Service Bulletin No. PACSB/FU/091, Issue 2, dated November 12, 2007. Repetitively inspect thereafter at intervals not to exceed 150 hours TIS.

(2)Before further flight after any inspection where any rivets are found on aileron and elevator control pushrods P/N 08-24015-1 that have detectable play between the pushrod and the insert or evidence of working rivets, replace the rivets following Pacific Aerospace Limited Service Bulletin No. PACSB/FU/091, Issue 2, dated November 12, 2007. 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: 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.

(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 (CAA), which is the aviation authority for New Zealand, DCA/FU24/177, dated November 28, 2007; and Pacific Aerospace Limited Service Bulletin No. PACSB/FU/091, Issue 2, dated November 12, 2007, for related information. Material Incorporated by Reference

(i)You must use Pacific Aerospace Limited Service Bulletin No. PACSB/FU/091, Issue 2, dated November 12, 2007, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Pacific Aerospace Limited, Hamilton Airport, Private Bag, 3027 Hamilton, New Zealand; telephone: +64 7-843-6144; facsimile: +64 7-843-6134.

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Issued in Kansas City, Missouri, on March 17, 2008. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-5957 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0057 Directorate Identifier 2007-CE-102-AD; Amendment 39-15445; AD 2008-07-04] RIN 2120-AA64 Airworthiness Directives; APEX Aircraft Model CAP 10 B Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued 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: A case of loose bond (ungluing) of one mounting wooden block of the control stick base cover, found during the cover reinstallation, was reported to the Type Certificate Holder

(TCH)and led to the issuance of the “recommended” Service Bulletin

(SB)No. 031004 in February 2004. Since that date, other similar occurrences have been reported. This SB in its revision 1, has therefore been reclassified “mandatory” by the TCH. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective April 30, 2008. On April 30, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. ADDRESSES: You may examine the AD docket on the Internet at *http://www.regulations.gov* or in person at Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Sarjapur Nagarajan, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4145; fax:

(816)329-4090. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on January 24, 2008 (73 FR 4123). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states: A case of loose bond (ungluing) of one mounting wooden block of the control stick base cover, found during the cover reinstallation, was reported to the Type Certificate Holder

(TCH)and led to the issuance of the “recommended” Service Bulletin

(AD)mandates inspection of the mounting blocks of the control stick base cover for loose bonds and repair, as necessary. These actions are intended to address the identified unsafe condition so as to prevent separation of the mounting blocks from the wing spar which could result in restricted movement of the ailerons and elevators with possible partial or complete loss of controls. The MCAI requires an inspection of the four mounting wooden blocks of the control stick base cover. You are to take corrective action by repairing any loose blocks where inspection indicates necessary. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This 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 required 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 AD. Costs of Compliance We estimate that this AD will affect 52 products of U.S. registry. We also estimate that it will take about .5 work-hour per product to comply with basic requirements of this AD. The average labor rate is $80 per work-hour. Required parts will cost about $135 per product. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $9,100 or $175 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 AD:

(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)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 AD and placed it in the AD Docket. 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 the NPRM, 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. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-04 APEX Aircraft:** Amendment 39-15445; Docket No. FAA-2008-0057; Directorate Identifier 2007-CE-102-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective April 30, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to the following CAP 10 B airplanes that are certificated in any category:

(i)serial numbers 300 through 310; and

(ii)serial numbers 1 through 40 that have been retrofitted with carbon/wood wing reference 5702-0104048* (*with or without a variable letter or number at the reference end). Subject

(d)Air Transport Association of America

(ATA)Code 57: Wings. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: A case of loose bond (ungluing) of one mounting wooden block of the control stick base cover, found during the cover reinstallation, was reported to the Type Certificate Holder

(TCH)and led to the issuance of the “recommended” Service Bulletin

(f)Unless already done, do the following actions within the next 6 months after April 30, 2008 (the effective date of this AD), following APEX Aircraft Service Bulletin No. 031004 R1, Revision 1, dated November 12, 2007:

(1)Inspect the four mounting wooden blocks of the control stick base cover for loose bonding (gluing); and

(2)If any wooden block is found to be loose, take corrective action. 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:

(816)329-4145; 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.

(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 AD No.: 2007-0296, dated December 7, 2007; and APEX Aircraft Service Bulletin

(SB)No. 031004 R1, Revision 1, dated November 12, 2007, for related information. Material Incorporated by Reference

(i)You must use APEX Aircraft Service Bulletin

(SB)No. 031004 R1, Revision 1, dated November 12, 2007, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Kansas City, Missouri, on March 17, 2008. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-5961 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0136; Directorate Identifier 2007-CE-104-AD; Amendment 39-15449; AD 2008-07-08] RIN 2120-AA64 Airworthiness Directives; Pacific Aerospace Limited Model 750XL Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued 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 1/8 -inch rivets installed in place of the correct 5/32 -inch rivets that secure the horizontal tail surface load transfer angles to the rearmost fuselage frame at Station 384.62. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective April 30, 2008. On April 30, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. ADDRESSES: You may examine the AD docket on the Internet at *http://www.regulations.gov* or in person at Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. 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: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on February 5, 2008 (73 FR 6636). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI describes the unsafe condition as 1/8 -inch rivets installed in place of the correct 5/32 -inch rivets that secure the horizontal tail surface load transfer angles to the rearmost fuselage frame at Station 384.62. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This 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 required 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 AD. Costs of Compliance We estimate that this AD will affect 7 products of U.S. registry. We also estimate that it will take about 0.5 work-hour per product to comply with basic requirements of this AD. The average labor rate is $80 per work-hour. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $280 or $40 per product. In addition, we estimate that any necessary follow-on actions would take about 2.0 work-hours and require parts costing $10, for a cost of $170 per product. We have no way of determining the number of products that may need these actions. 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 AD:

(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)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 AD and placed it in the AD Docket. 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 the NPRM, 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. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-08 Pacific Aerospace Limited:** Amendment 39-15449; Docket No. FAA-2008-0136; Directorate Identifier 2007-CE-104-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective April 30, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to 750XL airplanes, serial numbers 101 through 108, certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 51: Structures. Reason

(e)The MCAI describes the unsafe condition as 1/8 -inch rivets installed in place of the correct 5/32 -inch rivets that secure the horizontal tail surface load transfer angles to the rearmost fuselage frame at Station 384.62. The MCAI requires you to inspect for the correct size rivets and if the wrong size rivets are installed, replace the rivets with the correct size rivets. Actions and Compliance

(f)Unless already done, do the following actions:

(1)Within 100 hours time-in-service

(TIS)after April 30, 2008 (the effective date of this AD), inspect to ensure that 1/8 -inch rivets are not installed in place of the correct 5/32 -inch rivets that secure the horizontal tail surface load transfer angles to the rearmost fuselage frame at Station 384.62 following Pacific Aerospace Corporation Limited Mandatory Service Bulletin No. PACSB/XL/010, dated: July 23, 2004.

(2)Before further flight, if you find undersized rivets are installed as a result of the inspection required by paragraph (f)(1) of this AD, replace the undersized rivets with the correct 5/32 -inch rivets following Pacific Aerospace Corporation Limited Service Mandatory Bulletin No. PACSB/XL/010, dated: July 23, 2004. 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: 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.

(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

(NZ)AD DCA/750XL/4A, effective date: January 31, 2008, amending NZ AD DCA/750XL/4, effective date: September 30, 2004; and Pacific Aerospace Corporation Limited Mandatory Service Bulletin No. PACSB/XL/010, dated: July 23, 2004, for related information. Material Incorporated by Reference

(i)You must use Pacific Aerospace Corporation Limited Mandatory Service Bulletin No. PACSB/XL/010, dated: July 23, 2004, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Pacific Aerospace Limited, Hamilton Airport, Private Bag, 3027 Hamilton, New Zealand; telephone: +64 7-843-6144; fax: +64 7-843-6134.

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Issued in Kansas City, Missouri, on March 19, 2008. John Colomy, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-5963 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0345; Directorate Identifier 2008-CE-017-AD; Amendment 39-15443; AD 2008-07-02] RIN 2120-AA64 Airworthiness Directives; MORAVAN a.s. Model Z-143L Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This AD results from mandatory continuing airworthiness information

(MCAI)issued by the aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: Installation of G-load monitoring units on some Z 43 series aeroplanes has revealed that certain aeroplanes, during aerobatic manoeuvres, exceeded the limit loads initially defined for the certification. As a consequence, to restore the safety margins on aeroplanes operated in Utility (“U”) category, this AD mandates a modification of the Airplane Flight Manual

(AFM)so as to change and limit the permissible manoeuvres in “U” category flights. This AD requires actions that are intended to address the unsafe condition described in the MCAI. DATES: This AD becomes effective March 31, 2008. On March 31, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD. We must receive comments on this AD by April 25, 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 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: Doug Rudolph, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4059; fax:

(816)329-4090. SUPPLEMENTARY INFORMATION: Discussion The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Community, has issued AD No: 2008-0046, dated February 28, 2008 (referred to after this as “the MCAI”), to correct an unsafe condition for the specified products. The MCAI states: Installation of G-load monitoring units on some Z 43 series aeroplanes has revealed that certain aeroplanes, during aerobatic manoeuvres, exceeded the limit loads initially defined for the certification. As a consequence, to restore the safety margins on aeroplanes operated in Utility (“U”) category, this AD mandates a modification of the Airplane Flight Manual

(AFM)so as to change and limit the permissible manoeuvres in “U” category flights. This AD requires you to modify the Limitations section of the airplane flight manual

(AFM)by incorporating AFM, revision 11, dated November 24, 2006. You may obtain further information by examining the MCAI in the AD. Relevant Service Information Moravan Aviation s.r.o. has issued Mandatory Service Bulletin Z143L/29a, dated February 15, 2007, which incorporates the AFM revision 11, dated November 24, 2006, which limits certain maneuvers in the Utility Category. 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 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 issuing this AD because we evaluated all information provided by the State of Design Authority and determined the unsafe condition exists and is likely to exist or develop on other products of the same type design. Differences Between This 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 have also required different actions in this AD from those in the MCAI in order to follow FAA policies. Any such differences are described in a separate paragraph of the AD. These requirements take precedence over those copied from the MCAI. FAA's Determination of the Effective Date An unsafe condition exists that requires the immediate adoption of this AD. The FAA has found that the risk to the flying public justifies waiving notice and comment prior to adoption of this rule, because there is a risk of structural damage in the wing area if the currently allowed maneuvers in the Utility Category are continued. It is imperative that the required limitations take effect immediately so the operator is aware of these changes and does not exceed the new limits needed in order to maintain the integrity of the structure. Therefore, we determined that notice and opportunity for public comment before issuing this AD are impracticable and that good cause exists for making this amendment effective in fewer than 30 days. Comments Invited This AD is a final rule that involves requirements affecting flight safety, and we did not precede it by notice and opportunity for public comment. We invite you to send any written relevant data, views, or arguments about this AD. Send your comments to an address listed under the ADDRESSES section. Include “Docket No. FAA-2008-0345; Directorate Identifier 2008-CE-017-AD” at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this AD. We will consider all comments received by the closing date and may amend this 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 AD. 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 this AD:

(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)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 AD and placed it in the AD docket. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-02 MORAVAN a.s.:** Amendment 39-15443; Docket No. FAA-2008-0345; Directorate Identifier 2008-CE-017-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective March 31, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to Model Z-143L airplanes, all serial numbers, certificated in any category. Subject

(d)Air Transport Association of America

(ATA)Code 5: Time Limits. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: Installation of G-load monitoring units on some Z 43 series aeroplanes has revealed that certain aeroplanes, during aerobatic manoeuvres, exceeded the limit loads initially defined for the certification. As a consequence, to restore the safety margins on aeroplanes operated in Utility (“U”) category, this AD mandates a modification of the Airplane Flight Manual

(AFM)so as to change and limit the permissible manoeuvres in “U” category flights. This AD requires you to modify the Limitations section of the airplane flight manual

(AFM)by incorporating AFM, revision 11, dated November 24, 2006. Actions and Compliance

(f)Unless already done, within 10 days after March 31, 2008 (the effective date of this AD) modify the Limitations section of the AFM following Moravan Aviation s.r.o. Mandatory Service Bulletin Z143L/29a, dated February 15, 2007, by incorporating AFM, revision 11, dated November 24, 2006. The owner/operator holding at least a private pilot certificate as authorized by section 43.7 of the Federal Aviation Regulations (14 CFR 43.7) may do this action. Make an entry into the aircraft logbook showing compliance with this portion of the AD in accordance with section 43.9 of the Federal Aviation Regulations (14 CFR 43.9). 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 Staff, 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: Doug Rudolph, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone:

(816)329-4059; 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 European Aviation Safety Agency

(EASA)AD No.: 2008-0046, dated February 28, 2008; and Moravan Aviation s.r.o. Mandatory Service Bulletin Z143L/29a, dated February 15, 2007, for related information. Material Incorporated by Reference

(i)You must use Moravan Aviation s.r.o. Mandatory Service Bulletin Z143L/29a, dated February 15, 2007, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Moravan Aviation s.r.o., ZLIN Service, 765 81 Otrokovice, Czech Republic.

(3)You may review copies at the FAA, Central Region, Office of the Regional Counsel, 901 Locust, Room 506, Kansas City, Missouri 64106; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html* . Issued in Kansas City, Missouri, on March 17, 2008. David R. Showers, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-6037 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0017; Directorate Identifier 2007-NM-268-AD; Amendment 39-15444; AD 2008-07-03] RIN 2120-AA64 Airworthiness Directives; Saab Model SAAB-Fairchild SF340A (SAAB/SF340A) and SAAB 340B Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for the products listed above. This 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: Subsequent to accidents involving Fuel Tank System explosions in flight * * * and on [the] ground, the FAA has published Special Federal Aviation Regulation No. 88 (SFAR-88) in June 2001 [which] required [conducting] a design review against explosion risks. The potential of ignition sources (in certain fuel pumps, fuel switches, refuel shutoff valves, and optical sensors/mechanical switches), in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. We are issuing this AD to require actions to correct the unsafe condition on these products. DATES: This AD becomes effective April 30, 2008. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of April 30, 2008. ADDRESSES: You may examine the AD docket on the Internet at *http://www.regulations.gov* or in person at the U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC. FOR FURTHER INFORMATION CONTACT: Shahram Daneshmandi, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1112; fax

(425)227-1149. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the **Federal Register** on January 14, 2008 (73 FR 2192). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states: Subsequent to accidents involving Fuel Tank System explosions in flight * * * and on [the] ground, the FAA has published Special Federal Aviation Regulation No. 88 (SFAR-88) in June 2001 [which] required [conducting] a design review against explosion risks. In their Letters referenced 04/00/02/07/01-L296, dated March 4, 2002 and 04/00/02/07/03-L024, dated February 3, 2003, the JAA (Joint Aviation Authorities) recommended the application of a similar regulation to the National Aviation Authorities (NAA). Under this regulation, all holders of type certificates for passenger transport aircraft with either a passenger capacity of 30 or more, or a payload capacity of 7,500 pounds (3402 kg) or more, which have received their certification since January 1, 1958, are required to conduct a design review against explosion risks. As a consequence of the design review mentioned above, this Airworthiness Directive

(AD)requires a modification to install extra protection of wiring installed in fuel tank conduits. The modification includes an inspection for any damage of the wiring to the fuel pumps, fuel level switches, the refuel shutoff valves, and optical sensors/mechanical switches, and if any damage is found, contacting Saab for repair instructions and repair. These fuel pumps, fuel switches, refuel shutoff valves, and optical sensors/mechanical switches are potential ignition sources. You may obtain further information by examining the MCAI in the AD docket. Comments We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM or on the determination of the cost to the public. Conclusion We reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed. Differences Between This 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 required different actions in this AD from those in the MCAI in order to follow our FAA policies. Any such differences are highlighted in a NOTE within the AD. Costs of Compliance We estimate that this AD will affect about 218 products of U.S. registry. We also estimate that it will take about 80 work-hours per product to comply with the basic requirements of this AD. The average labor rate is $80 per work-hour. Required parts will cost about $0 per product. Where the service information lists required parts costs that are covered under warranty, we have assumed that there will be no charge for these parts. As we do not control warranty coverage for affected parties, some parties may incur costs higher than estimated here. Based on these figures, we estimate the cost of this AD to the U.S. operators to be $1,395,200, or $6,400 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 AD will not have federalism implications under Executive Order 13132. This AD will 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 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. 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 AD and placed it in the AD docket. 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 the NPRM, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations office (telephone

(800)647-5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-03 Saab Aircraft AB:** Amendment 39-15444; Docket No. FAA-2008-0017; Directorate Identifier 2007-NM-268-AD. Effective Date

(a)This airworthiness directive

(AD)becomes effective April 30, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to Saab Model SAAB-Fairchild SF340A (SAAB/SF340A) and SAAB 340B airplanes, all serial numbers, certificated in any category. Subject

(d)Air Transport Association

(ATA)of America Code 28: Fuel. Reason

(e)The mandatory continuing airworthiness information

(MCAI)states: Subsequent to accidents involving Fuel Tank System explosions in flight * * * and on [the] ground, the FAA has published Special Federal Aviation Regulation No. 88 (SFAR-88) in June 2001 [which] required [conducting] a design review against explosion risks. In their Letters referenced 04/00/02/07/01-L296, dated March 4, 2002 and 04/00/02/07/03-L024, dated February 3, 2003, the JAA (Joint Aviation Authorities) recommended the application of a similar regulation to the National Aviation Authorities (NAA). Under this regulation, all holders of type certificates for passenger transport aircraft with either a passenger capacity of 30 or more, or a payload capacity of 7,500 pounds (3402 kg) or more, which have received their certification since January 1, 1958, are required to conduct a design review against explosion risks. As a consequence of the design review mentioned above, this Airworthiness Directive

(AD)requires a modification to install extra protection of wiring installed in fuel tank conduits. The potential of ignition sources (in certain fuel pumps, fuel switches, refuel shutoff valves, and optical sensors/mechanical switches), in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. The modification includes an inspection for any damage of the wiring to the fuel pumps, fuel level switches, the refuel shutoff valves, and optical sensors/mechanical switches, and if any damage is found, contacting Saab for repair instructions and repair. Actions and Compliance

(f)Within 72 months after the effective date of this AD, unless already done, perform Modification No. 3164 (right-hand wing) and Modification No. 3165 (left-hand wing) in accordance with Saab Service Bulletin 340-28-026, dated July 5, 2007. The modifications include the following actions.

(1)Removal of the fuel pumps 5QM and 6QM, the fuel switches 31EB, 32EB, 9QA, 10QA, 11QA, and 12QA, the refuel shutoff valves 15QA and 16QA, and the optical sensors/mechanical switches 13QA and 14QA.

(2)Inspection of the wiring to the fuel pumps, fuel level switches, the refuel shutoff valves, and optical sensors/mechanical switches, and if any damage is found, contact Saab for repair instructions and repair before further flight.

(3)Twisting of the fuel pump wiring, fuel level switches wiring, refuel shutoff valves wiring, and optical sensors/mechanical switches wiring.

(4)Installation of a shrinkable tube to the fuel pumps wiring, fuel level switches wiring, refuel shutoff valves wiring and optical sensors/mechanical switches wiring.

(5)Installation of fuel pumps, the fuel level switches, the refuel shutoff valves, and the optical sensors/mechanical switches.

(6)Operational and functional test of the fuel measuring/indicating system. FAA AD Differences Note: This AD differs from the MCAI and/or service information as follows:

(1)The MCAI does not specify corrective action for the inspection specified in paragraph (f)(2) of this AD. This AD requires contacting Saab for repair instructions and repairing before further flight.

(2)The MCAI does not include actions for optical sensors/mechanical switches 13QA and 14QA; however, paragraph

(f)of this AD includes modification of those optical sensors/mechanical switches. Other FAA AD Provisions

(g)The following provisions also apply to this AD:

(1)Alternative Methods of Compliance (AMOCs): The Manager, International Branch, ANM-116, Transport Airplane Directorate, 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: Shahram Daneshmandi, Aerospace Engineer, International Branch, ANM-116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone

(425)227-1112; fax

(425)227-1149. 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.

(3)Reporting Requirements: For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act, 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)Airworthiness Directive 2007-0248, dated September 7, 2007, and Saab Service Bulletin 340-28-026, dated July 5, 2007, for related information. Material Incorporated by Reference

(i)You must use Saab Service Bulletin 340-28-026, dated July 5, 2007, to do the actions required by this AD, unless the AD specifies otherwise.

(1)The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51.

(2)For service information identified in this AD, contact Saab Aircraft AB, SAAB Aircraft Product Support, S-581.88, Linköping, Sweden.

(3)You may review copies at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington; or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call

(202)741-6030, or go to: *http://www.archives.gov/federal-register/cfr/ibr-locations.html.* Issued in Renton, Washington, on March 17, 2008. Dionne Palermo, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-6049 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2008-0013; Directorate Identifier 2007-NM-230-AD; Amendment 39-15448; AD 2008-07-07] RIN 2120-AA64 Airworthiness Directives; Boeing Model 727-200 Series Airplanes Equipped with an Auxiliary Fuel Tank System Installed in Accordance with Supplemental Type Certificate SA1350NM AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule. SUMMARY: We are adopting a new airworthiness directive

(AD)for certain Boeing Model 727-200 series airplanes. This AD requires deactivating auxiliary fuel tank systems installed in accordance with Supplemental Type Certificate

(STC)SA1350NM. This AD results from fuel tank system reviews conducted by the manufacturer that identified potential unsafe conditions for which the manufacturer has not provided corrective actions. We are issuing this AD to prevent the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. DATES: This AD is effective April 30, 2008. 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 AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (telephone 800-647-5527) is the Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Jeff Janusz, Aerospace Engineer, Mechanical Systems and Propulsion Branch, ACE-116W, FAA, Wichita Aircraft Certification Office, 1801 Airport Road, Room 100, Mid-Continent Airport, Wichita, Kansas 67209; telephone

(316)946-4148; fax

(316)946-4107. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking

(NPRM)to amend 14 CFR part 39 to include an airworthiness directive

(AD)that would apply to certain Boeing Model 727-200 series airplanes. That NPRM was published in the **Federal Register** on January 14, 2008 (73 FR 2204). That NPRM proposed to require deactivating auxiliary fuel tank systems installed in accordance with Supplemental Type Certificate

(STC)SA1350NM. Comments We gave the public the opportunity to participate in developing this AD. We considered the comments received. Linda Pulson, a private citizen, and Boeing support the NPRM. Conclusion We reviewed the relevant data, considered the comments received, and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance The following table provides the estimated costs for the 25 U.S.-registered airplanes to comply with this AD. Based on these figures, the estimated costs for U.S. operators could be as high as $162,000 to prepare and report the deactivation procedures, and $90,000 to deactivate the tank. Estimated Costs Action Work hours Average labor rate per hour Parts Cost per airplane Report 1 $80 None $80 Preparation of tank deactivation procedure 80 80 None 6,400 Physical tank deactivation 30 80 $1,200 3,600 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 This AD will not have federalism implications under Executive Order 13132. This AD will 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 this AD:

(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)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. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 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: **2008-07-07 DTAA, Inc.:** Amendment 39-15448. Docket No. FAA-2008-0013; Directorate Identifier 2007-NM-230-AD. Effective Date

(a)This airworthiness directive

(AD)is effective April 30, 2008. Affected ADs

(b)None. Applicability

(c)This AD applies to Boeing Model 727-200 series airplanes, certificated in any category, equipped with an auxiliary fuel tank system installed in accordance with Supplemental Type Certificate SA1350NM. Unsafe Condition

(d)This AD results from fuel tank system reviews conducted by the manufacturer. We are issuing this AD to prevent the potential of ignition sources inside fuel tanks, which, in combination with flammable fuel vapors, could result in fuel tank explosions and consequent loss of the airplane. 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. Report

(f)Within 45 days after the effective date of this AD, submit a report to the Manager, Wichita Aircraft Certification Office (ACO), FAA. The report must include the information listed in paragraphs (f)(1) and (f)(2) of 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 contained in this AD, and assigned OMB Control Number 2120-0056.

(1)The airplane registration and serial number.

(2)The usage frequency in terms of total number of flights per year and total number of flights per year for which the auxiliary fuel tank system is used. Prevent Usage of Auxiliary Fuel Tank

(g)On or before December 16, 2008, deactivate the auxiliary fuel tank system, in accordance with a deactivation procedure approved by the Manager, Wichita ACO. Any auxiliary fuel tank system component that remains on the airplane must be secured and must have no effect on the continued operational safety and airworthiness of the airplane. Deactivation may not result in the need for additional Instructions for Continued Airworthiness (ICA). Note 1: Appendix A of this AD provides criteria that must be included in the deactivation procedure. The proposed deactivation procedures should be submitted to the Manager, Wichita ACO as soon as possible to ensure timely review and approval, prior to implementation. Note 2: For technical information, contact Steve Forness, DTAA, Inc., 101 Deer Meadow Court, St. Charles, Missouri 63304; telephone

(636)928-9606; fax

(314)749-7513. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, Wichita ACO, FAA, has the authority to approve AMOCs for this AD, if requested in accordance with 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. Material Incorporated by Reference

(i)None. Appendix A—Deactivation Criteria The auxiliary fuel tank system deactivation procedure required by paragraph

(g)of this AD should address the following actions.

(1)Permanently drain the auxiliary fuel tank system tanks, and clear them of fuel vapors to eliminate the possibility of out-gassing of fuel vapors from the emptied auxiliary tank.

(2)Disconnect all auxiliary fuel tank system electrical connections from the fuel quantity indication system (FQIS), float, pressure and transfer valves and switches, and all other electrical connections required for auxiliary fuel tank system operation, and stow them at the auxiliary fuel tank interface.

(3)Disconnect all auxiliary fuel tank system bleed-air connections, cap them at the bleed air source, and secure them.

(4)Disconnect all auxiliary fuel tank system fuel supply and fuel vent plumbing interfaces with airplane original equipment manufacturer

(OEM)fuel tanks, cap them at the airplane tank side, and secure them. All disconnected auxiliary fuel tank system vent systems must not alter the OEM fuel tank vent system configuration or performance. All empty auxiliary fuel tank system tanks must be vented to eliminate the possibility of structural deformation during cabin decompression. The configuration must not permit the introduction of fuel vapor into any compartments of the airplane.

(5)Pull and collar all circuit breakers used to operate the auxiliary fuel tank system.

(6)Revise the weight and balance document, if required, and obtain FAA approval.

(7)Amend the applicable sections of the applicable Airplane Flight Manual

(AFM)to indicate that the auxiliary fuel tank system is deactivated. Remove auxiliary fuel tank system operating procedures to ensure that only the OEM fuel system operational procedures are contained in the AFM. Amend the Limitations Section of the AFM to indicate that the AFM Supplement for the STC is not in effect. Place a placard in the flight deck indicating that the auxiliary fuel tank system is deactivated. The AFM revisions specified in this paragraph may be accomplished by inserting a copy of this AD into the AFM.

(8)Amend the applicable sections of the applicable airplane maintenance manual to remove auxiliary fuel tank system maintenance procedures.

(9)After the auxiliary fuel tank system is deactivated, accomplish procedures such as leak checks, pressure checks, and functional checks deemed necessary before returning the airplane to service. These procedures must include verification that the basic airplane OEM FQIS, fuel distribution, and fuel venting systems function properly and have not been adversely affected by deactivation of the auxiliary fuel tank system.

(10)Include with the proposed deactivation procedures any relevant information or additional steps that are deemed necessary by the operator to comply with the deactivation of the auxiliary fuel tank system and return of the airplane to service. Issued in Renton, Washington on March 18, 2008. Dionne Palermo, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E8-6058 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA-2008-0328; Airspace Docket No. 08-ASW-4] Establishment of Class E Airspace; Hinton, OK AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Direct final rule; request for comments. SUMMARY: This action established Class E airspace at Hinton, OK. New Area Navigation

(RNAV)Global Positioning System

(GPS)Standard Instrument Approach Procedures (SIAPs) at Hinton Muni Airport has made this action necessary. The FAA is proposing this action to enhance the safety and management of Instrument Flight Rules

(IFR)aircraft operations at Hinton Muni Airport, OK. DATES: *Effective Dates:* 0901 UTC June 5, 2008. Comments for inclusion in the rules Docket must be received by May 12, 2008. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, part 51, subject to the annual revision of FAA Order 7400.9 and publication of conforming amendments. ADDRESSES: Send comments on this proposal to the U.S. Department of Transportation, Room W12-140, Washington, DC 20590-0001. You must identify the docket number FAA-2008-0328/Airspace Docket No. 08-ASW-4, at the beginning of your comments. You may also submit comments through the Internet at *http://regulations.gov.* You may review the public docket containing the proposal, any comments received, and any final disposition in person in the Dockets Office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Office (telephone 1-800-647-5527) is on the ground floor of the building at the above address. FOR FURTHER INFORMATION CONTACT: Joe Yadouga, Central Service Center, System Support Group, Federal Aviation Administration, Southwest Region, Ft. Worth, TX 76193-0503; telephone

(817)222-5597. SUPPLEMENTARY INFORMATION: The Direct Final Rule Procedure The FAA anticipates that this regulation will not result in adverse or negative comments, and, therefore, issues it as a direct final rule. Unless a written adverse or negative comment or a written notice of intent to submit an adverse or negative comment is received within the comment period, the regulation will become effective on the date specified above. After the close of the comment period, the FAA will publish a document in the **Federal Register** indicating that no adverse or negative comments were received and confirming the effective date of the rule. If the FAA receives, within the comment period, an adverse or negative comment, or written comment notice of intent to submit such a comment, a document withdrawing the direct final rule will be published in the **Federal Register** , and a notice of proposed rulemaking may be published with a new comment period. Comments Invited Although this action is in the form of a direct final rule, and was not preceded by a notice of proposed rulemaking, interested persons are invited to comment on this rule by submitting such written date, 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 direct final rule. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the direct final rule. Commenters wishing the FAA to acknowledge receipt of their comments on this rule must submit with those comments a self-addressed, stamped postcard on which the following statement is made: “Comments to Docket No. FAA-2008-0328, Airspace Docket No. 08-ASW-4.” The postcard will be date/time stamped and returned to the commenter. Communications should identify both docket numbers and be submitted in triplicate to the address specified under the caption ADDRESSES above or through the Web site. All communications received on or before the closing date for comments will be considered, and this rule may be amended or withdrawn in light of the comments received. The Rule This amendment to Title 14, Code of Federal Regulations (14 CFR) part 71 establishes Class E airspace at Hinton, OK, providing the airspace required to support the new RNAV

(GPS)RWY 17/35 approach developed for IFR landings at Hinton Muni Airport. Controlled airspace extending upward from 700 feet above the surface is required to encompass all SIAPs and for the safety of IFR operations at Hinton Muni Airport. Designations for Class E airspace areas extending upward from 700 feet above the surface of the earth are published in the FAA Order 7400.9R, signed August 15, 2007, and effective September 15, 2007, which is incorporated by reference in 14 CFR 71.1. Class E designations listed in this document will be published subsequently in the Order. Agency Findings The regulations adopted herein will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among various levels of government. Therefore, it is determined that this final rule does not have federalism implication under Executive Order 13132. The FAA has determined that this regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current, is non-controversial and unlikely to result in adverse or negative comments. It, therefore,

(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 rule, when promulgated, will 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 United States Code. 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. 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 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 established Class E airspace at Hinton Muni Airport, Hinton, OK. Lists of Subjects in 14 CFR, Part 71 Airspace, Incorporation by reference, Navigation (Air). Adoption of the Amendment In consideration of the foregoing, the Federal Aviation Administration amends 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 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 Federal Aviation Administration Order 7400.9R, Airspace Designation 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 above the surface of the earth. ASW OK E5 Hinton, OK [New] Hinton Muni Airport, OK (Lat 35°30′26″ N, long 98°20′33″ W) That airspace extending upward from 700 feet above the surface within a 6.45-mile radius of Hinton Muni Airport. Issued in Fort Worth, TX, on March 13, 2008. Gene L. Kasson, Acting Manager, System Support Group, ATO Central Service Center. [FR Doc. E8-5931 Filed 3-25-08; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration 21 CFR Part 1 [Docket No. FDA-2008-N-0160] (formerly Docket No. 2002N-0276) Registration of Food Facilities Under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002; Technical Amendment AGENCY: Food and Drug Administration, HHS. ACTION: Final rule; technical amendment. SUMMARY: The Food and Drug Administration

(FDA)is amending its regulations to change the fax number to which food facility registration forms under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act) can be sent. This action is editorial in nature and is intended to improve the accuracy of the agency's regulations. DATES: This rule is effective March 26, 2008. FOR FURTHER INFORMATION CONTACT: Catherine Copp, Center for Food Safety and Applied Nutrition (HFS-4), Food and Drug Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, 301-436-2379. SUPPLEMENTARY INFORMATION: FDA is amending its regulations in part 1 (21 CFR part 1). Several sections in part 1 cite a fax number to which food facility registration forms under the Bioterrorism Act (Public Law 107-188) can be sent. This rule replaces the obsolete information with correct information. The final rule contains no collection of information. Therefore, clearance by the Office of Management and Budget under the Paperwork Reduction Act of 1995 is not required. Publication of this document constitutes final action on these changes under the Administrative Procedure Act (5 U.S.C. 553). These amendments remove obsolete information and are not substantive. FDA therefore, for good cause, finds under 5 U.S.C. 553(b)(3)(B) and (d)(3) that notice and comment are unnecessary. List of Subjects in 21 CFR Part 1 Cosmetics, Drugs, Exports, Food labeling, Imports, Labeling, Reporting and recordkeeping requirements. Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs, 21 CFR part 1 is amended as follows: PART 1—GENERAL ENFORCEMENT REGULATIONS 1. The authority citation for 21 CFR part 1 continues to read as follows: Authority: 15 U.S.C. 1453, 1454, 1455; 19 U.S.C. 1490, 1491; 21 U.S.C. 321, 331, 332, 333, 334, 335a, 343, 350c, 350d, 352, 355, 360b, 362, 371, 374, 381, 382, 393; 42 U.S.C. 216, 241, 243, 262, 264. 2. Section 1.231 is amended by revising paragraph (b)(2) to read as follows: § 1.231 How and where do you register?

(b)* * *

(2)When you receive the form, you must fill it out completely and legibly and either mail it to the address in paragraph (b)(1) of this section or fax it to 301-436-2804 or 1-800-573-0846. 3. Section 1.234 is amended by revising paragraph (d)(2) to read as follows: § 1.234 How and when do you update your facility's registration information?

(d)* * *

(2)When you receive the form, you must legibly fill out the sections of the form reflecting your updated information and either mail it to the address in paragraph (d)(1) of this section or fax it to 301-436-2804 or 1-800-573-0846. 4. Section 1.235 is amended by revising paragraph (d)(2) to read as follows: § 1.235 How and when do you cancel your facility's registration information?

(d)* * *

(2)When you receive the form, you must completely and legibly fill out the form and either mail it to the address in paragraph (d)(1) of this section or fax it to 301-436-2804 or 1-800-573-0846. Dated: March 18, 2008. Jeffrey Shuren, Associate Commissioner for Policy and Planning. [FR Doc. E8-6052 Filed 3-25-08; 8:45 am] BILLING CODE 4160-01-S DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration 21 CFR Part 17 Civil Money Penalties Hearings; Maximum Penalty Amounts; Technical Amendment AGENCY: Food and Drug Administration, HHS. ACTION: Final rule; technical amendment. SUMMARY: The Food and Drug Administration

(FDA)is amending its civil money penalties regulations to correct an inadvertent typographical error. This action is editorial in nature and is intended to improve the accuracy of the agency's regulations. DATES: This rule is effective March 26, 2008. FOR FURTHER INFORMATION CONTACT: Joyce Strong, Office of Policy, Planning, and Preparedness (HF-27), Food and Drug Administration, 5600 Fishers Lane, Rockville, MD 20857, 301-827-7010. SUPPLEMENTARY INFORMATION: FDA is amending its regulations in 21 CFR part 17 to correct an inadvertent typographical error. Publication of this document constitutes final action on this change under the Administrative Procedure Act (5 U.S.C. 553). Notice and public procedures are unnecessary because FDA is merely correcting a nonsubstantive error. List of Subjects in 21 CFR Part 17 Administrative practice and procedure, Penalties. Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs, 21 CFR part 17 is amended as follows: PART 17—CIVIL MONEY PENALTIES HEARINGS 1. The authority citation for 21 CFR part 17 continues to read as follows: Authority: 21 U.S.C. 331, 333, 337, 351, 352, 355, 360, 360c, 360f, 360i, 360j, 371; 42 U.S.C. 262, 263b, 300aa-28; 5 U.S.C. 554, 555, 556, 557. 2. In § 17.2, revise the introductory text to read as follows: § 17.2 Maximum penalty amounts. The following table shows maximum civil monetary penalties associated with the statutory provisions authorizing civil monetary penalties under the act or the Public Health Service Act: Dated: March 18, 2008. Jeffrey Shuren, Associate Commissioner for Policy and Planning. [FR Doc. E8-6082 Filed 3-25-08; 8:45 am] BILLING CODE 4160-01-S DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration 21 CFR Part 558 New Animal Drugs for Use in Animal Feeds; Bacitracin Methylene Disalicylate and Nicarbazin AGENCY: Food and Drug Administration, HHS. ACTION: Final rule. SUMMARY: The Food and Drug Administration

(FDA)is amending the animal drug regulations to reflect approval of a new animal drug application

(NADA)filed by Alpharma, Inc. The NADA provides for use of approved, single-ingredient Type A medicated articles containing bacitracin methylene disalicylate and nicarbazin to formulate two-way combination drug Type C medicated feeds for broiler chickens. DATES: This rule is effective March 26, 2008. FOR FURTHER INFORMATION CONTACT: Timothy Schell, Center for Veterinary Medicine (HFV-128), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 240-276-8116, e-mail: *timothy.schell@fda.hhs.gov* . SUPPLEMENTARY INFORMATION: Alpharma, Inc., 440 Rt. 22, Bridgewater, NJ 08807, filed NADA 141-279 that provides for use of BMD (bacitracin methylene disalicylate) and NICARB (nicarbazin) Type A medicated articles to formulate two-way combination drug Type C medicated feeds for broiler chickens. The NADA is approved as of February 21, 2008, and the regulations are amended in 21 CFR 558.366 to reflect the approval. In accordance with the freedom of information provisions of 21 CFR part 20 and 21 CFR 514.11(e)(2)(ii), a summary of safety and effectiveness data and information submitted to support approval of this application may be seen in the Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061, Rockville, MD 20852, between 9 a.m. and 4 p.m., Monday through Friday. The agency has determined under 21 CFR 25.33(a)(2) that this action is of a type that does not individually or cumulatively have a significant effect on the human environment. Therefore, neither an environmental assessment nor an environmental impact statement is required. This rule does not meet the definition of “rule” in 5 U.S.C. 804(3)(A) because it is a rule of “particular applicability.” Therefore, it is not subject to the congressional review requirements in 5 U.S.C. 801-808. List of Subjects in 21 CFR Part 558 Animal drugs, Animal feeds. Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs and redelegated to the Center for Veterinary Medicine, 21 CFR part 558 is amended as follows: PART 558—NEW ANIMAL DRUGS FOR USE IN ANIMAL FEEDS 1. The authority citation for 21 CFR part 558 continues to read as follows: Authority: 21 U.S.C. 360b, 371. 2. In the table in paragraph

(d)of § 558.366, alphabetically add new entries for “Bacitracin methylene disalicylate 4 to 50” and “Bacitracin methylene disalicylate 50” to read as follows: § 558.366 Nicarbazin.

(d)* * * Nicarbazin in grams per ton Combination in grams per ton Indications for use Limitations Sponsor 113.5 (0.0125 pct) * * * * * * Bacitracin methylene disalicylate 4 to 50. Broiler chickens; aid in preventing outbreaks of cecal ( *Eimeria tenella* ) and intestinal ( *E. acervulina* , *E. maxima* , *E. necatrix* , and *E. brunetti* ) coccidiosis; for increased rate of weight gain and improved feed efficiency. Feed continuously as sole ration from time chicks are placed on litter until past the time when coccidiosis is ordinarily a hazard; do not use as a treatment for outbreaks of coccidiosis; do not use in flushing mashes; do not feed to laying hens; withdraw 4 days before slaughter. 046573 * * * * * * * Bacitracin methylene disalicylate 50. Broiler chickens; aid in preventing outbreaks of cecal ( *Eimeria tenella* ) and intestinal ( *E. acervulina* , *E. maxima* , *E. necatrix* , and *E. brunetti* ) coccidiosis; as an aid in the prevention of necrotic enteritis caused or complicated by *Clostridium* spp. or other organisms susceptible to bacitracin. Feed continuously as sole ration from time chicks are placed on litter until past the time when coccidiosis is ordinarily a hazard; do not use as a treatment for outbreaks of coccidiosis; do not use in flushing mashes; do not feed to laying hens; withdraw 4 days before slaughter. 046573 * * * * * * * Dated: March 12, 2008. Bernadette Dunham, Director, Center for Veterinary Medicine. [FR Doc. E8-6063 Filed 3-25-08; 8:45 am] BILLING CODE 4160-01-S DEPARTMENT OF STATE 22 CFR Part 123 [Public Notice: 6147] Amendment to the International Traffic in Arms Regulations: North Atlantic Treaty Organization

(NATO)AGENCY: Department of State. ACTION: Final rule. SUMMARY: The Department of State is amending the International Traffic in Arms Regulations (ITAR), to clarify United States policy to allow for reexports or retransfers of U.S.-origin components incorporated into a foreign defense article to the North Atlantic Treaty Organization (NATO), and its agencies, as well as to NATO member governments. DATES: *Effective Date:* This rule is effective March 26, 2008. ADDRESSES: Interested parties may submit comments at any time by any of the following methods: • *E-mail: DDTCResponseTeam@state.gov* with an appropriate subject line. • *Mail:* Department of State, Directorate of Defense Trade Controls, Office of Defense Trade Controls Policy, ATTN: Regulatory Change, ITAR Part 123, SA-1, 12th Floor, Washington, DC 20522-0112. Persons with access to the Internet may also view this notice by going to the regulations.gov Web site at *http://regulations.gov/index.cfm.* FOR FURTHER INFORMATION CONTACT: Director Ann Ganzer, Office of Defense Trade Controls Policy, Department of State, Telephone

(202)663-2792 or Fax

(202)261-8199; E-mail *DDTCResponseTeam@state.gov.* ATTN: Regulatory Change, Part 123. SUPPLEMENTARY INFORMATION: To clarify the current regulation, it is necessary to explicitly provide that NATO and its agencies, in addition to the government of a NATO country, or the governments of Australia or Japan, are authorized without the prior written approval of the Directorate of Defense Trade Controls, upon meeting certain conditions, to reexport or retransfer U.S.-origin components incorporated into a foreign defense article. Regulatory Analysis and Notices Administrative Procedure Act This amendment involves a foreign affairs function of the United States and, therefore, is not subject to the procedures required by 5 U.S.C. 553 and 554. Regulatory Flexibility Act Since this amendment involves a foreign affairs function of the United States, it does not require analysis under the Regulatory Flexibility Act. Unfunded Mandates Reform Act of 1995 This amendment does not involve a mandate that will result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year, and it 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. Small Business Regulatory Enforcement Fairness Act of 1996 This amendment has been found not to be a major rule within the meaning of the Small Business Regulatory Enforcement Fairness Act of 1996. Executive Orders 12372 and 13132 This amendment will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with Executive Order 13132, it is determined that this amendment does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on federal programs and activities do not apply to this amendment. Executive Order 12866 This amendment is exempt from review under Executive Order 12866, but has been reviewed internally by the Department of State to ensure consistency with the purposes thereof. Paperwork Reduction Act This rule does not impose any new reporting or recordkeeping requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 35. List of Subjects in 22 CFR Part 123 Arms and munitions, Exports. Accordingly, for the reasons set forth above, Title 22, Chapter I, Subchapter M, part 123 is amended as follows: PART 123—LICENSES FOR THE EXPORT OF DEFENSE ARTICLES 1. The authority citation for part 123 continues to read as follows: Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp., p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105-261, 112 Stat. 1920; Sec. 1205(a), Pub. L. 107-228. 2. Section 123.9 is amended by revising paragraph

(e)introductory text to read as follows: § 123.9 Country of ultimate destination and approval of reexports or retransfers.

(e)Reexports or retransfers of U.S.-origin components incorporated into a foreign defense article to NATO, NATO agencies, a government of a NATO country, or the governments of Australia or Japan, are authorized without the prior written approval of the Directorate of Defense Trade Controls, provided: Dated: March 10, 2008. John C. Rood, Acting Under Secretary for Arms Control and International Security, Department of State. [FR Doc. E8-6019 Filed 3-25-08; 8:45 am] BILLING CODE 4710-25-P DEPARTMENT OF THE INTERIOR Minerals Management Service 30 CFR Parts 203, 206, 210, 216, 218, and 227 [Docket No. MMS-2008-MRM-0021] RIN 1010-AD20 Reporting Amendments AGENCY: Minerals Management Service (MMS), Interior. ACTION: Final rule. SUMMARY: The MMS is amending existing regulations for reporting production and royalties on oil, gas, coal and other solid minerals, and geothermal resources produced from Federal and Indian leases in order to align the regulations with current MMS business practices. These amendments reflect changes that were implemented as a result of major reengineering of MMS financial systems and other legal requirements. DATES: Effective Date: April 25, 2008. FOR FURTHER INFORMATION CONTACT: Hyla Hurst, Regulatory Specialist, Minerals Management Service, Minerals Revenue Management, P.O. Box 25165, MS 302B2, Denver, Colorado 80225; telephone

(303)231-3495; FAX

(303)231-3781; e-mail *Hyla.Hurst@mms.gov.* The principal authors of this rule are Lorraine Corona, Louise Williams, Sarah Inderbitzin, Richard Adamski, and Paul Knueven of Minerals Revenue Management, MMS, Department of the Interior. SUPPLEMENTARY INFORMATION: I. Background The MMS implemented integrated reengineered systems on November 1, 2001. This process included a major reengineering of the Minerals Revenue Management

(MRM)financial system. The new systems are the core systems support for MMS implementation of new royalty management business processes for the 21st century. The new systems were developed around new business processes and have been designed to be more effective and efficient. The reengineering, as well as other changes required by law, resulted in changes to, or elimination of, some forms and requirements. This final rule eliminates references to forms that are no longer used. However, elimination of these forms does not eliminate the requirements for record retention and making records available for audits and reviews of royalty payments. This final rule amends the Code of Federal Regulations

(CFR)in order to

(1)align MMS regulations with the updated Form MMS-2014, Report of Sales and Royalty Remittance, which is approved by the Office of Management and Budget

(OMB)under OMB Control Number 1010-0140;

(2)eliminate references in the regulations to report forms, designations, systems, and codes that are no longer used;

(3)update references to OMB-approved information collections;

(4)revise the due date for production reports submitted electronically;

(5)clarify the requirement for production reporting of inventory on leases and units until all production has ceased and all inventory has been disposed of;

(6)eliminate references to Federal oil and gas late and incorrect (erroneous) reporting assessments and failure to report;

(7)eliminate references to some electronic reporting options that no longer exist as a result of reengineering; and

(8)clarify the reporting requirement for taxpayer identification numbers. In the proposed rule published on July 7, 2006 (71 FR 38545), we overlooked a number of references in 30 CFR part 206 to the term *selling arrangement,* which was eliminated under revised reporting practices. As explained in the proposed rule, before October 1, 2001, MMS required payors to report at the selling arrangement level on Form MMS-2014, which entailed reporting one line for each sale under each type of contract. Effective October 1, 2001, the revised Form MMS-2014 allows payors to “roll up” all sales (including pooled sales) under a contract type—referred to as a “sales type code”—to one line per lease. For transportation allowances, the existing rules prescribe a limit of 50 percent of the sales value on the basis of a “selling arrangement,” which is currently defined as the individual contractual arrangements under which production is sold or disposed of. Under the new regulations, a transportation allowance limit would apply to the collective sales of a specific sales type such as all of the lessee's arm's-length sales from a lease. For Indian leases in an index zone, this change will have no effect on gas valued based upon the index-based methodology in 30 CFR 206.172. We have not received any requests to exceed the 50-percent allowance limit for Indian leases, resulting in no effect on Indian lease revenue. We have, however, received requests to exceed the 50-percent allowance limit for Federal leases. However, the impact to Federal revenue due to this reporting change is insignificant. Appropriate changes to the regulatory text are included in this final rule. In addition, several technical updates are made in parts 203 and 227 to align with the revised 30 CFR citations. II. Comments on the Proposed Rule The MMS received comments from one respondent on the proposed rule. The respondent represents a tribal organization. *Comment 1:* The respondent states that the proposed rule applies the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996

(RSFA)to Indian lands by applying the reengineered systems to Indian lease reporting in order to increase effectiveness and efficiency. *MMS Response:* The MMS does not agree. The MMS is not applying RSFA to Indian lands. Rather, MMS is applying several laws dating back to the early part of the 20th century that are designed to ensure that all Federal agencies conduct operations in the most effective, efficient, and economical manner possible. The Budget and Accounting Act of 1921, 31 U.S.C. 702, established the Government Accountability Office (then the General Accounting Office)

(GAO)as an independent agency, with its current mission to help improve the performance and ensure the accountability of the Federal Government. The GAO accomplishes its mission by providing reliable information and informed analysis to Congress, Federal agencies, and the public. Furthermore, GAO recommends improvements through financial and other performance audits to determine whether public funds are being spent efficiently and effectively. The Inspector General Act of 1978, Public Law 95-452, established the Department of the Interior Office of Inspector General to provide leadership and coordination and to recommend policies for activities designed to promote economy, efficiency, and effectiveness. The goal of the Government Performance and Results Act of 1993, Public Law 103-62, is to improve public confidence in Federal agency performance by requiring that federally funded agencies develop and implement an accountability system based on performance measurement, including setting goals and objectives and measuring progress toward achieving them. The Paperwork Reduction Act of 1995

(PRA)requires Federal agencies to reduce, minimize, and control burdens and maximize the public benefit of information collections. Therefore, our information collections are independent of RSFA mandates. The MMS operates under all these mandates to ensure that our business practices are efficient, effective, and economical. *Comment 2:* The respondent disagrees with the proposed changes to improve reporting requirements, saying they are unjustified when applied to Indian lease reporting. The respondent states that the proposed elimination of forms and the reduced information available to the Government appear to be a retrenchment to the “we'll catch it on the audit” mentality. The respondent further states that the reengineering processes described in the proposed rulemaking might serve the purposes of increased automation and efficiency contemplated or mandated by RSFA, but those requirements to simplify royalty reporting “emphatically do not apply to Indian lands.” *MMS Response:* The MMS does not agree. This final rule does not change current MMS reporting requirements, but simply aligns the regulations with our current business processes. Furthermore, as stated above, the MMS has a responsibility to ensure that all its operations are efficient, effective, and economical, which predates and is independent of RSFA mandates. Furthermore, the reengineered reporting systems were developed with the full involvement of all MMS stakeholders, including the respondent. In 1995, the Department of the Interior established a Royalty Policy Committee

(RPC)under the Minerals Management Advisory Board. The purpose of RPC is to provide advice on the Department's management of Federal and Indian mineral leases, revenues, and other minerals-related policies. The RPC included representatives from states, Indian tribes and allottee organizations, minerals industry associations, the general public, and Federal agencies. At its first meeting in September 1995, the RPC established eight subcommittees, including the Reporting and Production Accounting Subcommittee. This Subcommittee (whose membership included four Indian representatives) was established to focus on improving and streamlining reporting for production and royalties on Federal and Indian mineral leases. The Subcommittee published a report in July 1996 that was approved by RPC during the June 4, 1996, meeting. The record of that RPC meeting contains no objections to the Subcommittee's proposed improved processing of Indian lease reporting from either the respondent or any other Indian representative. Reengineered reporting was discussed at subsequent RPC meetings and other public meetings as MMS continued to accept stakeholder input. The MMS does not agree with the respondent's statement that this rulemaking is a retrenchment to a “we'll catch it on the audit” mentality. The proposed rule addressed reporting, not compliance. The changes to MMS reporting and financial systems as a result of reengineering required a comprehensive review of our information collections to eliminate duplication and to ensure that all remaining collections are efficient, effective, and economical while fully supporting compliance activities. The elimination of some forms did not eliminate the requirement for the information, but consolidated the information on fewer forms. These changes resulted in a reduction of 44,501 industry reporting burden hours and are in compliance with the PRA. Using a rate of $50 per hour, the reengineered reporting saved industry $2.2 million per year (44,501 burden hours × $50 = $2,225,050), without compromising MMS compliance and audit activities. The elimination of the Report of Monthly Operations (Form MMS-3160) and reliance on the Oil and Gas Operations Report (Form MMS-4054) enables an integrated, computerized comparison of production and royalty reports to verify that proper royalties are received for the minerals produced. This approach is more effective and efficient than a manually intensive comparison. The reengineering processes served the purposes of increased automation and efficiency as mandated by law. No MMS operation is exempt from those requirements. III. Procedural Matters 1. Summary Cost and Royalty Impact Data This rule does not impose any additional costs/savings or royalty impacts on any of the potentially affected groups. There will be no change in royalties or administrative burdens to industry, state and local governments, Indian tribes, individual Indian mineral owners, or the Federal Government. This rule amends existing MMS regulations to align the CFR with current MMS business practices, which were implemented as a result of major reengineering of MMS financial systems. The net impact of reengineering resulted in an overall estimated annual savings in reporting costs (on a continuing basis) of $2,225,050 (44,501-burden-hour reduction × $50). However, the reporting changes and reduced costs of reengineering have already been incorporated into 13 information collection requests (ICR), which have been published in the **Federal Register** and approved by OMB. The effects of the seven eliminated report forms were either incorporated into these ICRs or were associated with insignificant burden hour reduction. For a current listing of OMB-approved ICRs, see the chart in 30 CFR 210.10. Under this rule, MMS no longer accepts social security numbers

(SSNs)to meet the requirement to report using a taxpayer identification number (TIN). To protect an individual's privacy, MMS requires the use of an Employer Identification Number

(EIN)as a TIN for reporting purposes. The one-time cost to obtain an EIN from the Internal Revenue Service

(IRS)is covered under an IRS information collection request (OMB Control Number 1545-0003, expires August 31, 2008). 2. Regulatory Planning and Review (E.O. 12866) This document is not a significant rule, and OMB has not reviewed this rule under Executive Order 12866. 1. This rule will not have an effect of $100 million or more on the economy. It will not adversely affect in a material way the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 2. This rule will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 3. This rule does not alter the budgetary effects of entitlements, grants, user fees, or loan programs or the rights or obligations of their recipients. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 4. This rule does not raise novel legal or policy issues. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 3. Regulatory Flexibility Act The Department of the Interior certifies that this document will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 4. Small Business Regulatory Enforcement Fairness Act (SBREFA) This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This rule: 1. Does not have an annual effect on the economy of $100 million or more. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. Small businesses were among those in industry affected by reengineering our business processes. New reporting requirements were covered in the appropriate ICRs, published for public comment in the **Federal Register** , and approved by OMB. The effects on small businesses included a reduction in reporting costs, as shown in the “Summary Cost and Royalty Impact Data” above. 2. Will not cause a major increase in costs or prices for consumers, individual industries, Federal, state, or local government agencies, or geographic regions. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 3. Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. 5. Unfunded Mandates Reform Act This rule does not impose an unfunded mandate on state, local, or tribal governments or the private sector of more than $100 million per year. The rule does not have a significant or unique effect on state, local, or tribal governments or the private sector. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 *et seq.* ) is not required. 6. Takings (E.O. 12630) Under the criteria in Executive Order 12630, this rule does not have significant takings implications. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. A takings implication assessment is not required. 7. Federalism (E.O. 13132) Under the criteria in Executive Order 13132, this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. A Federalism Assessment is not required. 8. Civil Justice Reform (E.O. 12988) This rule complies with the requirements of Executive Order 12988. Specifically, this rule: 1. Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and 2. Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. 9. Consultation with Indian Tribes (E.O. 13175) Under the criteria in Executive Order 13175, we have evaluated this rule and determined that it has no potential effects on federally recognized Indian tribes. This rule amends the CFR to align the regulations with current MMS business processes. It does not change current MMS reporting requirements in any material way. This rule does not have tribal implications that impose substantial direct compliance costs on Indian tribal governments. This rule also has no significant impact on individual Indian mineral owners. 10. Paperwork Reduction Act This rule does not contain new information collection requirements or significantly change existing information collections; therefore, a submission to OMB is not required. There was no change in the information collection from the proposed to the final rule. The MMS received one comment on the proposed rule concerning the reporting requirements for Indian lands; however, it did not pertain to the currently approved burden hours. The MMS response is explained in Section II of the Preamble. The 13 information collections referenced in this rule and listed in the chart below are currently approved by OMB and include a total burden of 273,101 hours. OMB control number, short title, and expiration date Form or information collected Annual burden hours 1010-0073, 30 CFR Part 220, Net Profit Share Payment—September 30, 2008 No form for the following collection: • Net profit share payment information. 1,583 1010-0087, 30 CFR Parts 227, 228, and 229, Delegation to States and Cooperative Activities with States and Indian Tribes—August 31, 2009 No forms for the following collections: • Written delegation proposal to perform auditing and investigative activities. • Request for cooperative agreement and subsequent requirements. 6,194 1010-0090, 30 CFR Part 216, Stripper Royalty Rate Reduction Notification—December 31, 2010 Form MMS-4377, Stripper Royalty Rate Reduction Notification. 180 1010-0103, 30 CFR Parts 202 and 206, Indian Oil and Gas Valuation—June 30, 2009 Form MMS-4109, Gas Processing Allowance Summary Report. Form MMS-4295, Gas Transportation Allowance Report. Form MMS-4110, Oil Transportation Allowance Report. 1,276 Form MMS-4411, Safety Net Report. Form MMS-4410, Accounting for Comparison [Dual Accounting]. Form MMS-4393, Request to Exceed Regulatory Allowance Limitation 1 . 1010-0107, 30 CFR Part 218, Collection of Monies Due the Federal Government—August 31, 2008 Form MMS-4425, Designation Form for Royalty Payment Responsibility. 1,220 No forms for the following collections: • Cross-lease netting documentation. • Indian recoupment approval. 1010-0119, 30 CFR Part 208, Royalty in Kind

(RIK)Oil and Gas—February 28, 2009 Form MMS-4070, Application for the Purchase of Royalty Oil Form MMS-4071, Letter of Credit (RIK). Form MMS-4072, Royalty-in-Kind Contract Surety Bond. 2,284 No form for the following collection: • Royalty oil sales to eligible refiners. 1010-0120, 30 CFR Parts 202, 206, 210, 212, 217, and 218, Solid Minerals and Geothermal Collections—December 31, 2010 Form MMS 4430, Solid Minerals Production and Royalty Report. Form 4292, Coal Washing Allowance Report. Form 4293, Coal Transportation Allowance Report. 3,670 No forms for the following collections: • Facility data-solid minerals. • Sales contracts-solid minerals. • Sales summaries-solid minerals. 1010-0122, 30 CFR Part 243, Suspensions Pending Appeal and Bonding—July 31, 2008 Form MMS-4435, Administrative Appeal Bond Form MMS-4436, Letter of Credit. Form MMS-4437, Assignment of Certificate of Deposit. 300 No forms for the following collections: • Self bonding. • U.S. Treasury securities. 1010-0136, 30 CFR Parts 202 and 206, Federal Oil and Gas Valuation—June 30, 2009 Form MMS-4393, Request to Exceed Regulatory Allowance Limitation 1 . 20,504 No form for the following collection: • Federal oil valuation support information. 1010-0139, 30 CFR Parts 210 and 216, Production Accounting—October 31, 2009 Form MMS-4054, Oil and Gas Operations Report Form MMS-4058 (Parts A, B, and C), Production Allocation Schedule Report. 2 76,631 1010-0140, 30 CFR Part 210, Forms and Reports—November 30, 2009 Form MMS-2014, Report of Sales and Royalty Remittance 158,821 1010-0155, 30 CFR Part 204, Alternatives for Marginal Properties—June 30, 2009 No form for the following collection: • Notification and relief request for accounting and auditing relief. 406 1010-0162, CFO Act of 1992, Accounts Receivable Confirmations—March 31, 2009 No form for the following collection: • Accounts receivable confirmations. 32 Total Burden Hours 273,101 1 Form MMS-4393 is used for both Federal and Indian oil and gas leases. The form resides with ICR 1010-0136, but the burden hours for Indian leases are included in ICR 1010-0103. 2 Nonhour cost: $600,000. The Paperwork Reduction Act provides that an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB Control Number. 11. National Environmental Policy Act This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 is not required. This rule deals with financial matters and has no direct effect on MMS decisions on environmental activities. Royalties and audits are considered to be routine financial transactions that are subject to categorical exclusion from the requirement to prepare a detailed statement or environmental assessment. 12. Data Quality Act In developing this rule, we did not conduct or use a study, experiment, or survey requiring peer review under the Data Quality Act (Pub. L. 106-554). 13. Effects on the Energy Supply (E.O. 13211) This rule is not a significant energy action under the definition in Executive Order 13211. A Statement of Energy Effects is not required. 14. Government-to-Government Relationship With Tribes In accordance with the President's memorandum of April 29, 1994, “Government-to-Government Relations with Native American Tribal Governments” (59 FR 22951) and 512 DM 2, we have evaluated potential effects on federally recognized Indian tribes, and found no significant impacts. We also extended our review to individual Indian mineral owners and determined no significant impact on them. List of Subjects in 30 CFR Parts 203, 206, 210, 216, 218, and 227 Coal, Solid minerals, Continental Shelf, Electronic funds transfers, Geothermal energy, Government contracts, Indian lands, Mineral royalties, Natural gas, Penalties, Petroleum, Oil and gas, Public lands—mineral resources, Reporting and recordkeeping requirements. Dated: March 13, 2008. C. Stephen Allred, Assistant Secretary for Land and Minerals Management. For reasons stated in the preamble, MMS is amending 30 CFR parts 203, 206, 210, 216, 218, and 227 as follows: PART 203—RELIEF OR REDUCTION IN ROYALTY RATES 1. The authority citation for part 203 continues to read as follows: Authority: 25 U.S.C. 396 *et seq.* , 396a *et seq.* , 2101 *et seq.* ; 30 U.S.C. 181 *et seq.* , 351 *et seq.* , 1001 *et seq.* , 1701 *et seq.* ; 31 U.S.C. 9701; 43 U.S.C. 1301 *et seq.* , 1331 *et seq.* , and 1801 *et seq.* Subpart B—OCS Oil, Gas, and Sulfur General 2. Amend § 203.41 by revising paragraphs

(b)introductory text and

(d)introductory text to read as follows: § 203.41 If I have a qualified well, what royalty relief will my lease earn?

(b)We will suspend royalties on gas volumes produced on or after May 3, 2004, reported on the Oil and Gas Operations Report, Part A (OGOR-A) for your lease under 30 CFR part 210, Subpart C—Production Reports—Oil and Gas, as and to the extent prescribed in § 203.42.

(d)We will suspend royalties on gas volumes produced on or after May 3, 2004, reported on the Oil and Gas Operations Report, Part A (OGOR-A) for your lease under 30 CFR part 210, Subpart C—Production Reports—Oil and Gas, as and to the extent prescribed in § 203.42. 3. Amend § 203.44 by revising paragraph

(b)introductory text to read as follows: § 203.44 If I drill a certified unsuccessful well, what royalty relief will my lease earn?

(b)We will suspend royalties on oil and gas volumes produced on or after May 3, 2004, reported on the Oil and Gas Operations Report, Part A (OGOR-A) for your lease under 30 CFR part 210, Subpart C—Production Reports—Oil and Gas, as and to the extent prescribed in § 203.45. PART 206—PRODUCT VALUATION 4. The authority citation for part 206 continues to read as follows: Authority: 5 U.S.C. 301 *et seq.* ; 25 U.S.C. 396 *et seq.* , 396a *et seq.* , 2101 *et seq.* ; 30 U.S.C. 181 *et seq.* , 351 *et seq.* , 1001 *et seq.* , 1701 *et seq.* ; 31 U.S.C. 9701; 43 U.S.C. 1301 *et seq.* , 1331 *et seq.* , and 1801 *et seq.* Subpart B—Indian Oil 5. Amend § 206.51 as follows: A. Remove the definition of “selling arrangement.” B. Add in alphabetical order the definition of “sales type code” to read as follows: § 206.51 What definitions apply to this subpart? *Sales type code* means the contract type or general disposition (e.g., arm's-length or non-arm's-length) of production from the lease. The sales type code applies to the sales contract, or other disposition, and not to the arm's-length or non-arm's-length nature of a transportation allowance. 6. Amend § 206.56 by revising paragraphs (b)(1), (b)(2), and

(d)to read as follows: § 206.56 Transportation allowances—general. (b)(1) Except as provided in paragraph (b)(2) of this section, the transportation allowance deduction on the basis of a sales type code may not exceed 50 percent of the value of the oil at the point of sale as determined under § 206.52 of this subpart. Transportation costs cannot be transferred between sales type codes or to other products.

(2)Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitation prescribed by paragraph (b)(1) of this section. The lessee must demonstrate that the transportation costs incurred in excess of the limitation prescribed in paragraph (b)(1) of this section were reasonable, actual, and necessary. An application for exception (using Form MMS-4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to make a determination. Under no circumstances may the value, for royalty purposes, under any sales type code, be reduced to zero.

(d)If, after a review or audit, MMS determines that a lessee has improperly determined a transportation allowance authorized by this subpart, then the lessee will pay any additional royalties, plus interest determined in accordance with 30 CFR 218.54, or will be entitled to a credit without interest. 7. Amend § 206.57 by revising paragraphs (c)(4) and (e)(1) to read as follows: § 206.57 Determination of transportation allowances.

(c)* * *

(4)Transportation allowances must be reported as a separate entry on Form MMS-2014, unless MMS approves a different reporting procedure.

(e)*Adjustments.*

(1)If the actual transportation allowance is less than the amount the lessee has taken on Form MMS-2014 for each month during the allowance form reporting period, the lessee must pay additional royalties due plus interest computed under 30 CFR 218.54, retroactive to the first day of the first month the lessee is authorized to deduct a transportation allowance. If the actual transportation allowance is greater than the amount the lessee has taken on Form MMS-2014 for each month during the allowance form reporting period, the lessee will be entitled to a credit without interest. Subpart C—Federal Oil 8. Revise § 206.116 to read as follows: § 206.116 What interest applies if I improperly report a transportation allowance?

(a)If you or your affiliate deducts a transportation allowance on Form MMS-2014 that exceeds 50 percent of the value of the oil transported without obtaining MMS's prior approval under § 206.109, you must pay interest on the excess allowance amount taken from the date that amount is taken to the date you or your affiliate files an exception request that MMS approves. If you do not file an exception request, or if MMS does not approve your request, you must pay interest on the excess allowance amount taken from the date that amount is taken until the date you pay the additional royalties owed.

(b)If you or your affiliate takes a deduction for transportation on Form MMS-2014 by improperly netting an allowance against the oil instead of reporting the allowance as a separate entry, MMS may assess a civil penalty under 30 CFR part 241. Subpart D—Federal Gas 9. Amend § 206.151 as follows: A. Revise the definition of “netting.” B. Add in alphabetical order the definition of “sales type code.” C. Remove the definition of “selling arrangement.” The revision and addition read as follows: § 206.151 Definitions. *Netting* means the deduction of an allowance from the sales value by reporting a net sales value, instead of correctly reporting the deduction as a separate entry on Form MMS-2014. *Sales type code* means the contract type or general disposition (e.g., arm's-length or non-arm's-length) of production from the lease. The sales type code applies to the sales contract, or other disposition, and not to the arm's-length or non-arm's-length nature of a transportation or processing allowance. 10. Amend § 206.156 by revising paragraphs

(c)and

(d)to read as follows: § 206.156 Transportation allowances—general. (c)(1) Except as provided in paragraph (c)(3) of this section, for unprocessed gas valued in accordance with § 206.152 of this subpart, the transportation allowance deduction on the basis of a sales type code may not exceed 50 percent of the value of the unprocessed gas determined under § 206.152 of this subpart.

(2)Except as provided in paragraph (c)(3) of this section, for gas production valued in accordance with § 206.153 of this subpart, the transportation allowance deduction on the basis of a sales type code may not exceed 50 percent of the value of the residue gas or gas plant product determined under § 206.153 of this subpart. For purposes of this section, natural gas liquids will be considered one product.

(3)Upon request of a lessee, MMS may approve a transportation allowance deduction in excess of the limitations prescribed by paragraphs (c)(1) and (c)(2) of this section. The lessee must demonstrate that the transportation costs incurred in excess of the limitations prescribed in paragraphs (c)(1) and (c)(2) of this section were reasonable, actual, and necessary. An application for exception (using Form MMS-4393, Request to Exceed Regulatory Allowance Limitation) must contain all relevant and supporting documentation necessary for MMS to make a determination. Under no circumstances may the value for royalty purposes under any sales type code be reduced to zero.

(d)If, after a review or audit, MMS determines that a lessee has improperly determined a transportation allowance authorized by this subpart, then the lessee must pay any additional royalties, plus interest, determined in accordance with 30 CFR 218.54, or will be entitled to a credit, with interest. If the lessee takes a deduction for transportation on Form MMS-2014 by improperly netting the allowance against the sales value of the unprocessed gas, residue gas, and gas plant products instead of reporting the allowance as a separate entry, MMS may assess a civil penalty under 30 CFR part 241. § 206.157 [Amended] 11. Amend § 206.157 as follows: A. In the last sentence of paragraph (a)(1)(i), remove the word “line.” B. In the third sentence of paragraph (b)(1), remove the word “line.” C. Remove paragraph (d)(1) and redesignate paragraphs (d)(2) through (d)(4) as paragraphs (d)(1) through (d)(3), respectively. 12. Amend § 206.158 by revising paragraph

(e)to read as follows: § 206.158 Processing allowances—general.

(e)If MMS determines that a lessee has improperly determined a processing allowance authorized by this subpart, then the lessee must pay any additional royalties, plus interest determined under 30 CFR 218.54, or will be entitled to a credit with interest. If the lessee takes a deduction for processing on Form MMS-2014 by improperly netting the allowance against the sales value of the gas plant products instead of reporting the allowance as a separate entry, MMS may assess a civil penalty under 30 CFR part 241. § 206.159 [Amended] 13. Amend § 206.159 as follows: A. In the last sentence of paragraph (a)(1)(i), remove the word “line.” B. In the third sentence of paragraph (b)(1), remove the word “line.” C. In paragraph (c)(1)(i), remove the word “line.” D. In paragraph (c)(2)(i), remove the word “line.” E. In paragraph

(d)heading, remove the words “and assessments”. F. Remove paragraph (d)(1) and redesignate paragraphs (d)(2) through (d)(4) as paragraphs (d)(1) through (d)(3), respectively. G. In the last sentence of paragraph (e)(1), remove the words “without interest” and add in their place “with interest.” Subpart E—Indian Gas 14. Amend § 206.171 as follows: A. Remove the definition of “selling arrangement.” B. Add in alphabetical order the definition of “sales type code” to read as follows: § 206.171 What definitions apply to this subpart? *Sales type code* means the contract type or general disposition (e.g., arm's-length or non-arm's-length) of production from the lease. The sales type code applies to the sales contract, or other disposition, and not to the arm's-length or non-arm's-length nature of a transportation or processing allowance. § 206.177 [Amended] 15. Amend § 206.177 as follows: A. In the first sentence of paragraph (c)(1) remove the words “selling arrangement” and add in their place “sales type code.” B. In the last sentence of paragraph (c)(2), remove the words “selling arrangement” and add in their place “sales type code.” § 206.178 [Amended] 16. In § 206.178, in the first sentence of paragraph (d)(2), remove the words “line item” and add in their place the word “entry.” § 206.180 [Amended] 17. In § 206.180, in the first sentence of paragraph (c)(2), remove the words “line item” and add in their place the word “entry.” Subpart F—Federal Coal 18. Amend § 206.251 as follows: A. Remove the definition of “selling arrangement.” B. Add in alphabetical order the definition of “sales type code” to read as follows: § 206.251 Definitions. *Sales type code* means the contract type or general disposition (e.g., arm's-length or non-arm's-length) of production from the lease. The sales type code applies to the sales contract, or other disposition, and not to the arm's-length or non-arm's-length nature of a transportation or washing allowance. 19. Revise § 206.252 to read as follows: § 206.252 Information collection. The information collection requirements contained in this subpart have been approved by the Office of Management and Budget

(OMB)under 44 U.S.C. 3501 *et seq.* The forms, filing date, and approved OMB control numbers are identified in 30 CFR 210—Forms and Reports. 20. Amend § 206.254 by revising the last sentence to read as follows: § 206.254 Quality and quantity measurement standards for reporting and paying royalties. * * * Coal quantity information will be reported on appropriate forms required under 30 CFR part 210—Forms and Reports. § 206.259 [Amended] 21. In § 206.259, in paragraph (d)(1), remove the words “selling arrangement” and add in their place the words “sales type code.” § 206.262 [Amended] 22. In § 206.262, in paragraph (d)(1), remove the words “selling arrangement” and add in their place the words “sales type code.” Subpart J—Indian Coal 25. Amend § 206.451 as follows: A. Remove the definition of “selling arrangement.” B. Add in alphabetical order the definition of “sales type code” to read as follows: § 206.451 Definitions. *Sales type code* means the contract type or general disposition (e.g. arm's-length or non-arm's-length) of production from the lease. The sales type code applies to the sales contract, or other disposition, and not to the arm's-length or non-arm's-length nature of a transportation or washing allowance. 26. Amend § 206.453 by revising the last sentence to read as follows: § 206.453 Quality and quantity measurement standards for reporting and paying royalties. * * * Coal quantity information will be reported on appropriate forms required under 30 CFR part 210—Forms and Reports. PART 210—FORMS AND REPORTS 27. The authority citation for part 210 continues to read as follows: Authority: 5 U.S.C. 301 *et seq.* ; 25 U.S.C. 396, 2107; 30 U.S.C. 189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334, 1801 *et seq.* ; and 44 U.S.C. 3506(a). 28. Revise subparts A and B and add subparts C and D to read as follows: Subpart A—General Provisions Sec. 210.01 What is the purpose of this subpart? 210.02 To whom do these regulations apply? 210.10 What are the OMB-approved information collections? 210.20 What if I disagree with the burden hour estimates? 210.21 How do I report my taxpayer identification number? 210.30 What are my responsibilities as a reporter/payor? 210.40 Will MMS keep the information I provide confidential? Subpart B—Royalty Reports—Oil, Gas, and Geothermal Resources 210.50 What is the purpose of this subpart? 210.51 Who must submit royalty reports? 210.52 What royalty reports must I submit? 210.53 When are my royalty reports and payments due? 210.54 Must I submit this royalty report electronically? 210.55 May I submit this royalty report manually? 210.56 Where can I find more information on how to complete the royalty report? 210.60 What definitions apply to this subpart? Subpart C—Production Reports—Oil and Gas 210.100 What is the purpose of this subpart? 210.101 Who must submit production reports? 210.102 What production reports must I submit? 210.103 When are my production reports due? 210.104 Must I submit these production reports electronically? 210.105 May I submit these production reports manually? 210.106 Where can I find more information on how to complete these production reports? Subpart D—Special-Purpose Forms and Reports—Oil, Gas, and Geothermal Resources 210.150 What is the purpose of this subpart? 210.151 What reports must I submit to claim an excess allowance? 210.152 What reports must I submit to claim allowances on an Indian lease? 210.153 What reports must I submit for Indian gas valuation purposes? 210.154 What documents or other information must I submit for Federal oil valuation purposes? 210.155 What reports must I submit for Federal onshore stripper oil properties? 210.156 What reports must I submit for net profit share leases? 210.157 What reports must I submit to suspend an MMS order under appeal? 210.158 What reports must I submit to designate someone to make my royalty payments? Subpart A—General Provisions § 210.01 What is the purpose of this subpart? This subpart identifies information collections required by the Minerals Management Service (MMS), Minerals Revenue Management (MRM), in the normal course of operations. This information is submitted by various parties associated with Federal and Indian leases such as lessees, designees, and operators. The information collected meets the MMS congressionally mandated accounting and auditing responsibilities relating to Federal and Indian minerals revenue management. Information collected regarding production, royalties, and other payments due the Government from activities on leased Federal or Indian land is authorized by the Federal Oil and Gas Royalty Management Act of 1982, as amended (30 U.S.C. 1701 *et seq.* ), as well as 43 U.S.C. 1334 and 30 U.S.C. 189, 359, 396, and 396d for oil and gas production; and by 30 U.S.C. 189, 359, 396, and 396d for solid minerals production. § 210.02 To whom do these regulations apply? The regulations apply to any person, referred to in this subpart as “you,” “your,” or “reporter/payor,” who is a lessee under any Federal or Indian lease for any mineral or who is assigned or assumes an obligation to report data or make payment to MMS. The term reporter/payor may include lessees, designees, operators, purchasers, reporters, other payors, and working interest owners, but is not restricted to these parties. This section does not affect the liability to pay and report royalties as established by other regulations, laws, and the lease terms. § 210.10 What are the OMB-approved information collections? The information collection requirements identified in this subpart have been approved by the Office of Management and Budget

(OMB)under 44 U.S.C. 3501 *et seq.* Detailed information about each information collection request (ICR), including CFR citations, is included on the MMS Web site at *http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRNotices.htm* . The ICRs and associated MMS form numbers, if applicable, are listed below: OMB control number and short title Form or information collected 1010-0073, 30 CFR Part 220, Net Profit Share Payment No form for the following collection: • Net profit share payment information. 1010-0087, 30 CFR Parts 227, 228, and 229, Delegation to States and Cooperative Activities with States and Indian Tribes No forms for the following collections: • Written delegation proposal to perform auditing and investigative activities. • Request for cooperative agreement and subsequent requirements. 1010-0090, 30 CFR Part 216, Stripper Royalty Rate Reduction Notification Form MMS-4377, Stripper Royalty Rate Reduction Notification. 1010-0103, 30 CFR Parts 202 and 206, Indian Oil and Gas Valuation Form MMS-4109, Gas Processing Allowance Summary Report. Form MMS-4295, Gas Transportation Allowance Report. Form MMS-4110, Oil Transportation Allowance Report. Form MMS-4411, Safety Net Report. Form MMS-4410, Accounting for Comparison [Dual Accounting]. Form MMS-4393, Request to Exceed Regulatory Allowance Limitation. 1 1010-0107, 30 CFR Part 218, Collection of Monies Due the Federal Government Form MMS-4425, Designation Form for Royalty Payment Responsibility. No forms for the following collections: • Cross-lease netting documentation. • Indian recoupment approval. 1010-0119, 30 CFR Part 208, Royalty in Kind

(RIK)Oil and Gas Form MMS-4070, Application for the Purchase of Royalty Oil. Form MMS-4071, Letter of Credit (RIK). Form MMS-4072, Royalty-in-Kind Contract Surety Bond. No form for the following collection: • Royalty oil sales to eligible refiners. 1010-0120, 30 CFR Parts 202, 206, 210, 212, 217, and 218, Solid Minerals and Geothermal Collections Form MMS 4430, Solid Minerals Production and Royalty Report. Form 4292, Coal Washing Allowance Report. Form 4293, Coal Transportation Allowance Report. No forms for the following collections: • Facility data—solid minerals. • Sales contracts—solid minerals. • Sales summaries—solid minerals. 1010-0122, 30 CFR Part 243, Suspensions Pending Appeal and Bonding Form MMS-4435, Administrative Appeal Bond. Form MMS-4436, Letter of Credit. Form MMS-4437, Assignment of Certificate of Deposit. No forms for the following collections: • Self bonding. • U.S. Treasury securities. 1010-0136, 30 CFR Parts 202 and 206, Federal Oil and Gas Valuation Form MMS-4393, Request to Exceed Regulatory Allowance Limitation. 1 No form for the following collection: • Federal oil valuation support information. 1010-0139, 30 CFR Parts 210 and 216, Production Accounting Form MMS-4054, Oil and Gas Operations Report. Form MMS-4058 (Parts A, B, and C), Production Allocation Schedule Report. 1010-0140, 30 CFR Part 210, Forms and Reports Form MMS-2014, Report of Sales and Royalty Remittance. 1010-0155, 30 CFR Part 204, Alternatives for Marginal Properties No form for the following collection: • Notification and relief request for accounting and auditing relief. 1010-0162, CFO Act of 1992, Accounts Receivable Confirmations No form for the following collection: • Accounts receivable confirmations. 1 Form MMS-4393 is used for both Federal and Indian oil and gas leases. The form resides with ICR 1010-0136, but the burden hours for Indian leases are included in ICR 1010-0103. § 210.20 What if I disagree with the burden hour estimates? Burden hour estimates are included on the MMS Web site at *http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRNotices.htm* . Send comments on the accuracy of these burden estimates or suggestions on reducing the burden to the Minerals Management Service, Attention: Information Collection Clearance Officer (OMB Control Number 1010-XXXX [insert appropriate OMB control number]), Mail Stop 4230, 1849 C Street, NW., Washington, DC 20240. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. § 210.21 How do I report my taxpayer identification number?

(a)Before paying or reporting to MMS, you must obtain a payor code (see the MMS *Minerals Revenue Reporter Handbook,* which is available on the Internet at *http://www.mrm.mms.gov/ReportingServices/PDFDocs/RevenueHandbook.pdf;* also see § 210.56 for further information on how to obtain a handbook). At the time you request a payor code, you must provide your Employer Identification Number

(EIN)by submitting:

(1)An IRS Form W-9; or

(2)An equivalent certification containing:

(i)Your name;

(ii)The name of your business, if different from your name;

(iii)The form of your business entity; for example, a sole proprietorship, corporation, or partnership;

(iv)The address of your business;

(v)The EIN of your business; and

(vi)A signed and dated certification that you are a U.S. citizen or resident alien and that the EIN number provided is correct.

(b)If you are already paying or reporting to MMS but do not have an EIN, MMS may request that you submit an IRS Form W-9 or equivalent certification containing the information required under paragraph (a)(2) of this section.

(c)The collection of this data is not subject to the provisions of the Paperwork Reduction Act because only information necessary to identify the respondent [5 CFR 1320.3(h)] is required.

(d)The EIN you provide to MMS under paragraph

(a)of this section:

(1)Means the taxpayer identification number

(TIN)of an individual or other person (whether or not an employer), which is assigned under 26 U.S.C. 6011(b), or a corresponding version of prior law, or under 26 U.S.C. 6109;

(2)Must contain nine digits separated by a hyphen as follows: 00-0000000; and

(3)May not be a Social Security Number. § 210.30 What are my responsibilities as a reporter/payor? Each reporter/payor must submit accurate, complete, and timely information to MMS according to the requirements in this part. If you discover an error in a previous report, you must file an accurate and complete amended report within 30 days of your discovery of the error. If you do not comply, MMS may assess civil penalties under 30 CFR part 241. § 210.40 Will MMS keep the information I provide confidential? The MMS will treat information obtained under this part as confidential to the extent permitted by law as specified at 43 CFR part 2. Subpart B—Royalty Reports—Oil, Gas, and Geothermal Resources § 210.50 What is the purpose of this subpart? The purpose of this subpart is to explain royalty reporting requirements when energy and mineral resources are removed from Federal and Indian oil and gas and geothermal leases and federally approved agreements. This includes leases and agreements located onshore and on the Outer Continental Shelf (OCS). § 210.51 Who must submit royalty reports?

(a)Any person who pays royalty to MMS must submit royalty reports to MMS.

(b)Before you pay or report to MMS, you must obtain a payor code. To obtain a payor code, refer to the MMS *Minerals Revenue Reporter Handbook* for instructions and MMS contact information (also see § 210.56 for information on how to obtain a handbook). § 210.52 What royalty reports must I submit? You must submit a completed Form MMS-2014, Report of Sales and Royalty Remittance, to MMS with:

(a)All royalty payments; and

(b)Rents on nonproducing leases, where specified in the lease. § 210.53 When are my royalty reports and payments due?

(a)Completed Forms MMS-2014 for royalty payments and the associated payments are due by the end of the month following the production month (see also § 218.50).

(b)Completed Forms MMS-2014 for rental payments, where applicable, and the associated payments are due as specified by the lease terms (see also § 218.50).

(c)You may submit reports and payments early. § 210.54 Must I submit this royalty report electronically?

(a)You must submit Form MMS-2014 electronically unless you qualify for an exception under § 210.55(a).

(b)You must use one of the following electronic media types, unless MMS instructs you differently:

(1)Electronic Data Interchange (EDI)—The direct computer-to-computer interchange of data using standards set forth by the X12 American National Standards Institute

(ANSI)Accredited Standards Committee (ASC). The interchange uses the services of a third party with which either party may contract.

(2)Web-based reporting—Reporters/payors may enter report data directly or upload files using the MMS electronic web form located at *http://www.mrmreports.net* . The uploaded files must be in one of the following formats: the American Standard Code for Information Interchange (ASCII) or Comma Separated Values

(CSV)formats. External files created by the sender must be in the proprietary ASCII and CSV file layout formats defined by MMS. These external files can be generated from a reporter's system application.

(c)Refer to our electronic reporting guidelines in the MMS *Minerals Revenue Reporter Handbook* , for the most current reporting options, instructions, and security measures. The handbook may be found on our Internet Web site or you may call your MMS customer service representative (see § 210.56 for further information on how to obtain a handbook). § 210.55 May I submit this royalty report manually?

(a)The MMS will allow you to submit Form MMS-2014 manually if:

(1)You have never reported to MMS before. You have 3 months from the date your first report is due to begin reporting electronically;

(2)You report only rent, minimum royalty, or other annual obligations on Form MMS-2014; or

(3)You are a small business, as defined by the U.S. Small Business Administration, and you have no computer.

(b)If you meet the qualifications under paragraph

(a)of this section, you may submit your form manually to MMS by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 5810, Denver, Colorado 80217-5810; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.56 Where can I find more information on how to complete the royalty report?

(a)Specific guidance on how to prepare and submit Form MMS-2014 is contained in the MMS *Minerals Revenue Reporter Handbook* . The handbook is available on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Handbooks/Handbks.htm* or from MMS at P.O. Box 5760, Denver, Colorado 80217-5760.

(b)Reporters/payors should refer to the handbook for specific guidance on royalty reporting requirements. If you require additional information, you should contact MMS at the above address. A customer service telephone number is also listed in our handbook.

(c)You may find Form MMS-2014 on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSOil_Gas.htm* , or you may request the form from MMS at P.O. Box 5760, Denver, Colorado 80217-5760. § 210.60 What definitions apply to this subpart? Terms used in this subpart have the same meaning as in 30 U.S.C. 1702. Subpart C—Production Reports—Oil and Gas § 210.100 What is the purpose of this subpart? The purpose of this subpart is to explain production reporting requirements when energy and mineral resources are removed from Federal and Indian oil and gas leases and federally approved agreements. This includes leases and unit and communitization agreements located onshore and on the Outer Continental Shelf (OCS). § 210.101 Who must submit production reports?

(a)If you operate a Federal or Indian oil and gas lease or federally approved unit or communitization agreement, you must submit production reports.

(b)Before reporting production to MMS, you must obtain an operator number. To obtain an operator number, refer to the MMS *Minerals Production Reporter Handbook* for instructions and MMS contact information (also see § 210.106 for information on how to obtain a handbook). § 210.102 What production reports must I submit?

(a)Form MMS-4054, Oil and Gas Operations Report. If you operate a Federal or Indian onshore or OCS oil and gas lease or federally approved unit or communitization agreement that contains one or more wells that are not permanently plugged or abandoned, you must submit Form MMS-4054 to MMS:

(1)You must submit Form MMS-4054 for each well for each calendar month, beginning with the month in which you complete drilling, unless:

(i)You have only test production from a drilling well; or

(ii)The MMS tells you in writing to report differently.

(2)You must continue reporting until:

(i)The Bureau of Land Management

(BLM)or MMS approves all wells as permanently plugged or abandoned or the lease or unit or communitization agreement is terminated; and

(ii)You dispose of all inventory.

(b)Form MMS-4058, Production Allocation Schedule Report. If you operate an offshore facility measurement point

(FMP)handling production from a Federal oil and gas lease or federally approved unit agreement that is commingled (with approval) with production from any other source prior to measurement for royalty determination, you must file Form MMS-4058.

(1)You must submit Form MMS-4058 for each calendar month beginning with the month in which you first handle production covered by this section.

(2)Form MMS-4058 is not required whenever all of the following conditions are met:

(i)All leases involved are Federal leases;

(ii)All leases have the same fixed royalty rate;

(iii)All leases are operated by the same operator;

(iv)The facility measurement device is operated by the same person as the leases/agreements;

(v)Production has not been previously measured for royalty determination; and

(vi)The production is not subsequently commingled and measured for royalty determination at an FMP for which Form MMS-4058 is required under this part. § 210.103 When are my production reports due?

(a)The MMS must receive your completed Forms MMS-4054 and MMS-4058 by the 15th day of the second month following the month for which you are reporting.

(b)A report is considered received when it is delivered to MMS by 4 p.m. mountain time at the addresses specified in § 210.105. Reports received after 4 p.m. mountain time are considered received the following business day. § 210.104 Must I submit these production reports electronically?

(a)You must submit Forms MMS-4054 and MMS-4058 electronically unless you qualify for an exception under § 210.105.

(b)You must use one of the following electronic media types, unless MMS instructs you differently:

(1)Electronic Data Interchange (EDI)—The direct computer-to-computer interchange of data using standards set forth by the X12 American National Standards Institute

(ANSI)Accredited Standards Committee (ASC). The interchange uses the services of a third party with which either party may contract.

(2)Web-based reporting—Reporters/payors may enter report data directly or upload files using the MMS electronic Web form located at *http://www.mrmreports.net* . The uploaded files must be in one of the following formats: the American Standard Code for Information Interchange (ASCII) or Comma Separated Values

(c)Refer to our electronic reporting guidelines in the MMS *Minerals Production Reporter Handbook* for the most current reporting options, instructions, and security measures. The handbook may be found on our Internet Web site or you may call your MMS customer service representative (see § 210.106 for further information on how to obtain a handbook). § 210.105 May I submit these production reports manually?

(a)The MMS will allow you to submit Forms MMS-4054 and MMS-4058 manually if:

(1)You have never reported to MMS before. You have 3 months from the day your first report is due to begin reporting electronically; and

(2)You are a small business, as defined by the U.S. Small Business Administration, and you have no computer.

(b)If you meet the qualifications under paragraph

(a)of this section, you may submit your forms manually to MMS by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 17110, Denver, Colorado 80217-0110; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.106 Where can I find more information on how to complete these production reports?

(a)Specific guidance on how to prepare and submit production reports to MMS is contained in the MMS *Minerals Production Reporter Handbook* . The handbook is available on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Handbooks/Handbks.htm* or from MMS at P.O. Box 17110, Denver, Colorado 80217-0110.

(b)Production reporters should refer to the handbook for specific guidance on production reporting requirements. If you require additional information, you should contact MMS at the above address. A customer service telephone number is also listed in our handbook.

(c)You may find Forms MMS-4054 and MMS-4058 on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/PAASOff.htm* , or you may request the forms from MMS at P.O. Box 17110, Denver, Colorado 80217-0110. Subpart D—Special-Purpose Forms and Reports—Oil, Gas, and Geothermal Resources § 210.150 What is the purpose of this subpart? This subpart identifies specific special-purpose reports and provides general information, reporting options, and reporting addresses. See § 210.10 for a complete listing of all information collections, including forms and references for specific information collections. § 210.151 What reports must I submit to claim an excess allowance?

(a)*General* . If you are a lessee, you must submit Form MMS-4393, Request to Exceed Regulatory Allowance Limitation, to request approval from MMS to exceed prescribed transportation and processing allowance limits on Federal oil and gas leases and prescribed transportation allowance limits on Indian oil and gas leases under part 206 of this chapter.

(b)*Reporting options* . You may find Form MMS-4393 on our Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSOil_Gas.htm* . You may also request the form from MMS at P.O. Box 25165, MS 392B2, Denver, Colorado 80217-0165.

(c)*Reporting address* . Submit completed Form MMS-4393 as follows:

(1)Complete and submit the form electronically as an e-mail attachment;

(2)Send the form by U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 392B2, Denver, Colorado 80217-0165; or

(3)Deliver the form to MMS by special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 392B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.152 What reports must I submit to claim allowances on an Indian lease?

(a)*General.* You must submit three additional forms to MMS to claim transportation or processing allowances on Indian oil and gas leases:

(1)You must submit Form MMS-4110, Oil Transportation Allowance Report, to claim an allowance for expenses incurred by a reporter/payor to transport oil from the lease site to a point remote from the lease where value is determined under § 206.55 of this chapter.

(2)You must submit Form MMS-4109, Gas Processing Allowance Summary Report, to claim an allowance for the reasonable, actual costs of removing hydrocarbon and nonhydrocarbon elements or compounds from a gas stream under § 206.180 of this chapter.

(3)You must submit Form MMS-4295, Gas Transportation Allowance Report, to claim an allowance for the reasonable, actual costs of transporting gas from the lease to the point of first sale under § 206.178 of this chapter.

(b)*Reporting options.* You may submit Forms MMS-4110, MMS-4109, and MMS-4295 manually. You may find the forms on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSOil_Gas.htm* , or you may request the forms from MMS at P.O. Box 25165, MS 396B2, Denver, Colorado 80217-0165.

(c)*Reporting address.* You may submit completed Forms MMS-4110, MMS-4109, and MMS-4295 by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 396B2, Denver, Colorado 80217-0165; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 396B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.153 What reports must I submit for Indian gas valuation purposes?

(a)*General.* For Indian gas valuation, under certain conditions under § 206.172 of this chapter, lessees must submit the following forms:

(1)Form MMS-4410, Accounting for Comparison (Dual Accounting), Part A or Part B; and/or

(2)Form MMS-4411, Safety Net Report.

(b)*Reporting options.* You must submit Forms MMS-4410 and MMS-4411 manually. You may find the forms on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSOil_Gas.htm* or request forms from MMS at P.O. Box 25165, MS 396B2, Denver, Colorado 80217-0165.

(c)*Reporting address.* You must submit completed Forms MMS-4410 and MMS-4411 by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 396B2, Denver, Colorado 80217-0165; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 396B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.154 What documents or other information must I submit for Federal oil valuation purposes?

(a)*General.* The MMS may require you to submit documents or other information to MMS to support your valuation of Federal oil under part 206 as part of audit compliance.

(b)*Reporting options.* You must submit the documents or other information manually.

(c)*Reporting address.* You must submit required documents or other information by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 392B2, Denver, Colorado 80217-0165; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 392B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.155 What reports must I submit for Federal onshore stripper oil properties?

(a)*General.* Operators who have been granted a reduced royalty rate by the Bureau of Land Management

(BLM)under 43 CFR 3103.4-2 must submit Form MMS-4377, Stripper Royalty Rate Reduction Notification, under 43 CFR 3103.4-2(b)(3).

(b)*Reporting options.* You may find Form MMS-4377 on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSOil_Gas.htm* or request the form from MMS at P.O. Box 17110, Denver, Colorado 80217-0110. You may file the form:

(1)Electronically by filling the form out in electronic format and submitting it to MMS as an e-mail attachment; or

(2)Manually by filling out the form and submitting it by:

(i)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 392B2, Denver, Colorado 80217-0165; or

(ii)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 392B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.156 What reports must I submit for net profit share leases?

(a)*General.* After entering into a net profit share lease

(NPSL)agreement, a lessee must report under part 220 of this chapter.

(b)*Reporting options.* You must submit the required report manually.

(c)*Reporting address.* You must submit the required documents by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 382B2, Denver, Colorado 80217-0165; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 382B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.157 What reports must I submit to suspend an MMS order under appeal?

(a)*General.* Reporters/payors or other recipients of MMS Minerals Revenue Management

(MRM)orders who appeal an order may be required to post a bond or other surety, under part 243 of this chapter. The MMS accepts the following surety types: Form MMS-4435, Administrative Appeal Bond; Form MMS-4436, Letter of Credit; Form MMS-4437, Assignment of Certificate of Deposit; Self-bonding; and U.S. Treasury Securities.

(b)*Reporting options.* You must submit these forms and other documents manually. You may find the forms and other documents under Surety Instrument Posting Instructions on our Internet Web site at *http://www.mrm.mms.gov/Law_R_D/FRNotices/ICR0122.htm* .

(c)*Reporting address.* You may submit the required forms and other documents as specified in the Surety Instrument Posting Instructions or by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 370B2, Denver, Colorado 80217-0165;

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 370B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. § 210.158 What reports must I submit to designate someone to make my royalty payments?

(a)*General.* You must submit Form MMS-4425, Designation Form for Royalty Payment Responsibility, if you want to designate a person to make royalty payments on your behalf under § 218.52.

(b)*Reporting options.* You must submit Form MMS-4425 manually. You may find the form on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSOil_Gas.htm* or request the form from MMS at P.O. Box 5760, Denver, Colorado 80217-5760.

(c)*Reporting address.* You must submit completed Form MMS-4425 by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 357B1, Denver, Colorado 80217-0165; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 357B1, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. Subpart E—Production and Royalty Reports—Solid Minerals 29. Revise the heading of subpart E to read as set forth above. §§ 210.205 and 210.206 [Redesignated as §§ 210.206 and 210.207] 30. Redesignate §§ 210.205 and 210.206 as §§ 210.206 and 210.207. 31. Add new § 210.205 to read as follows: § 210.205 What reports must I submit to claim allowances on Indian coal leases? *General.* You must submit the following MMS forms to claim a transportation or washing allowance, as applicable, on Indian coal leases:

(1)Form MMS-4292, Coal Washing Allowance Report, to claim an allowance for the reasonable, actual costs incurred to wash coal under § 206.458 of this chapter.

(2)Form MMS-4293, Coal Transportation Allowance Report, to claim an allowance for the reasonable, actual costs of transporting coal to a sales point or a washing facility remote from the mine or lease under § 206.461 of this chapter.

(b)*Reporting options.* You must submit the forms manually. You may find the forms on our Internet Web site at *http://www.mrm.mms.gov/ReportingServices/Forms/AFSSol_Min.htm* or request forms from MMS at P.O. Box 25165, MS 390B2, Denver, Colorado 80217-0165.

(c)*Reporting address.* You must submit completed Forms MMS-4292 and MMS-4293 by:

(1)U.S. Postal Service regular or express mail addressed to Minerals Management Service, P.O. Box 25165, MS 390B2, Denver, Colorado 80217-0165; or

(2)Special courier or overnight mail addressed to Minerals Management Service, Building 85, Room A-614, MS 390B2, Denver Federal Center, West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. PART 216—[REMOVED] 32. Remove part 216. PART 218—COLLECTION OF MONIES AND PROVISION FOR GEOTHERMAL CREDITS AND INCENTIVES 33. Revise the heading of part 218 to read as set forth above. 34. The authority citation for part 218 continues to read as follows: Authority: 25 U.S.C. 396 *et seq.* , 396a *et seq.* , 2101 *et seq.* ; 30 U.S.C. 181 *et seq.* , 351 *et seq.* , 1001 *et seq.* , 1701 *et seq.* ; 31 U.S.C. 3335; 43 U.S.C. 1301 *et seq.* , 1331 *et seq.* , and 1801 *et seq.* Subpart A—General Provisions 35. Amend § 218.40 by revising paragraphs

(a)through

(c)to read as follows: § 218.40 Assessments for incorrect or late reports and failure to report.

(a)An assessment of an amount not to exceed $10 per day may be charged for each report not received by MMS by the designated due date for geothermal, solid minerals, and Indian oil and gas leases.

(b)An assessment of an amount not to exceed $10 per day may be charged for each incorrectly completed report for geothermal, solid minerals, and Indian oil and gas leases.

(c)For purpose of assessments discussed in this section, a report is defined as follows:

(1)For coal and other solid minerals leases, a report is each line on Form MMS-4430, Solid Minerals Production and Royalty Report; or on Form MMS-2014, Report of Sales and Royalty Remittance, as appropriate.

(2)For Indian oil and gas and all geothermal leases, a report is each line on Form MMS-2014. 36. Amend § 218.41 by revising paragraphs

(a)through

(e)to read as follows: § 218.41 Assessments for failure to submit payment of same amount indicated on Form MMS-2014, Form MMS-4430, or a bill document; or to provide adequate information.

(a)The MMS may assess an amount not to exceed $250 when the amount of a payment submitted by a reporter/payor for geothermal, solid minerals, and Indian oil and gas leases is not equivalent in amount to the total of individual line items on the associated Form MMS-2014, Form MMS-4430, or a bill document, unless MMS has authorized the difference in amount.

(b)The MMS may assess an amount not to exceed $250 for each payment for geothermal, solid minerals, and Indian oil and gas leases submitted by a reporter/payor that cannot be automatically applied to the associated Form MMS-2014, Form MMS-4430, or a bill document because of inadequate or erroneous information submitted by the reporter/payor.

(c)For purposes of this section, inadequate or erroneous information is defined as:

(1)Absent or incorrect payor-assigned document number, required to be identified by the reporter/payor in Block 4 on Form MMS-2014 (document 4 number), or the reuse of the same incorrect payor-assigned document 4 number in a subsequent reporting period.

(2)Absent or incorrect bill document invoice number (to include the three-character alpha prefix and the nine-digit number) or the payor-assigned document 4 number required to be identified by the reporter/payor on the associated payment document, or the reuse of the same incorrect payor-assigned document 4 number in a subsequent reporting period.

(3)Absent or incorrect name of the administering Bureau of Indian Affairs Agency/Area office; or the word “allotted” or the tribe name on payment documents remitted to MMS for an Indian tribe or allottee. If the payment is made by EFT, the reporter/payor must identify the tribe/allottee on the EFT message by a pre-established five-digit code.

(4)Absent or incorrect MMS-assigned payor code on a payment document.

(5)Absent or incorrect identification on a payment document.

(d)For purposes of this section, the term “Form MMS-2014” includes submission of reports of royalty information, such as Form MMS-4430.

(e)For purposes of this section, a bill document is defined as any invoice that MMS has issued for assessments, late-payment interest charges, or other amount owed. A payment document is defined as a check or wire transfer message. Subpart B—Oil and Gas, General 37. Amend § 218.50 by revising paragraph

(b)to read as follows: § 218.50 Timing of payment.

(b)Invoices will be issued and payable as final collection actions. Payments made on an invoice are due as specified by the invoice. 38. Amend § 218.51 by revising the definition of “Invoice Document Identification” in paragraph

(a)and revising paragraphs (f)(1) and (f)(2) to read as follows: § 218.51 How to make payments.

(a)* * * *Invoice Document Identification* —The MMS-assigned invoice document identification (three-alpha and nine-numeric characters).

(f)* * *

(1)For Form MMS-2014 payments, you must include both your payor code and your payor-assigned document number.

(2)For invoice payments, including RIK invoice payments, you must include both your payor code and invoice document identification. 39. Amend § 218.52 by revising paragraphs

(a)introductory text, (a)(1), (a)(4)(i) and

(c)introductory text to read as follows: § 218.52 How does a lessee designate a Designee?

(a)If you are a lessee under 30 U.S.C. 1702(7), and you want to designate a person to make all or part of the payments due under a lease on your behalf under 30 U.S.C. 1712(a), you must notify MMS or the applicable delegated state in writing of such designation by submitting Form MMS-4425, Designation Form for Royalty Payment Responsibility. Your notification for each lease must include the following:

(1)The lease number for the lease;

(4)* * *

(i)A lessee of record (record title owner) in the lease; or

(c)If you want to terminate a designation you made under paragraph

(a)of this section, you must submit a revised Form MMS-4425 before the termination stating: § 218.57 [Removed] 40. Remove § 218.57. Subpart D—Oil, Gas and Sulfur Offshore § 218.154 [Amended] 41. Amend § 218.154, paragraph (c), by removing the words “paragraph

(a)of this section” and adding in their place the words “paragraph

(b)of this section.” 42. Amend § 218.155, paragraph (b)(2), by revising the fourth and fifth sentences to read as follows: § 218.155 Method of payment.

(b)* * *

(2)* * * The one-fifth bonus amounts submitted with bids other than the highest valid bid will be returned to respective bidders after bids are opened, recorded, and ranked. Return of such amounts will not affect the status, validity, or ranking of bids. * * * PART 227—DELEGATION TO STATES 43. Amend § 227.401(f) by revising to read as follows: § 227.401 What are a state's responsibilities if it processes production reports or royalty reports?

(f)For production reports, maintain adequate system software edits to ensure compliance with the provisions of 30 CFR part 210—Forms and Reports, the MMS *Minerals Production Reporter Handbook* , any interagency memorandum of understanding to which MMS is a party, and the *Standards* ; [FR Doc. E8-5929 Filed 3-25-08; 8:45 am] BILLING CODE 4310-MR-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 100 [Docket No. USCG-2008-0074] RIN 1625-AA08 Special Local Regulations for Marine Events; Western Branch, Elizabeth River, Portsmouth, VA AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing temporary special local regulations during the “Virginia State Hydroplane Championship” power boat races, a marine event to be held on the waters of the Western Branch of the Elizabeth River at Portsmouth, Virginia on April 19 and 20, 2008. These special local regulations are necessary to provide for the safety of life on navigable waters during the event. This action is intended to restrict vessel traffic in the Western Branch of the Elizabeth River during the event. DATES: This rule is effective from 8 a.m. on April 19, 2008 through 6 p.m. on April 20, 2008. ADDRESSES: Documents indicated in this preamble as being available in the docket are part of docket USCG-2008-0074 and are available online at *www.regulations.gov* . They are also available for inspection or copying at two locations: The Docket Management Facility (M-30), U.S. Department of Transportation, 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, and the Fifth Coast Guard District, Inspections and Investigations Branch, 431 Crawford Street, Portsmouth, VA 23704 between 9 a.m. and 2 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Dennis Sens, Project Manager, Fifth Coast Guard District, Inspections and Investigations Branch, at

(757)398-6204. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking

(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM. Publishing an NPRM would be impracticable and contrary to public interest since immediate action is needed to minimize potential danger to the public during the event. The danger posed by high speed power boat races makes special local regulations necessary to provide for the safety of event participants, support vessels, spectator craft and other vessels transiting the event area. For the safety concerns noted, it is in the public interest to have these regulations in effect during the event. The Coast Guard will issue broadcast notice to mariners to advise vessel operators of navigational restrictions. On scene Coast Guard and local law enforcement vessels will also provide actual notice to mariners. Background and Purpose On April 19 and 20, 2008, Virginia Boat Racing Association will sponsor the “Virginia State Hydroplane Championship” hydroplane races on the waters of the Western Branch, Elizabeth River at Portsmouth, Virginia. The event will consist of approximately 60 hydroplane powerboats conducting high-speed competitive races on the Western Branch of the Elizabeth River in the vicinity of Portsmouth City Park, Portsmouth, Virginia. A fleet of spectator vessels is expected to gather near the event site to view the competition. To provide for the safety of participants, spectators, support and transiting vessels, the Coast Guard will temporarily restrict vessel traffic in the event area during the hydroplane races. Discussion of Rule The special local regulations will be enforced from 8 a.m. to 6 p.m. on April 19 and 20, 2008, and will restrict navigation in the regulated area during the hydroplane races. Except for persons or vessels authorized by the Coast Guard Patrol Commander, no person or vessel may enter or remain in the regulated area during the effective period. The regulated area is needed to control vessel traffic during the event to enhance the safety of participants and transiting vessels. In addition to notice in the **Federal Register** , the maritime community will be provided extensive advance notification via the Local Notice to Mariners, marine information broadcasts, local newspapers and radio stations so mariners can adjust their plans accordingly. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. It is not “significant” under the regulatory policies and procedures of the Department of Homeland Security (DHS). We expect the economic impact of this rule to be so minimal that a full Regulatory Evaluation under the regulatory policies and procedures of DHS is unnecessary. Although this regulation will prevent traffic from transiting a portion of the Western Branch of the Elizabeth River during the event, the effect of this regulation will not be significant due to the limited duration that the regulated area will be in effect and the extensive advance notifications that will be made to the maritime community via the Local Notice to Mariners, marine information broadcasts, and area newspapers, so mariners can adjust their plans accordingly. Additionally, the regulated area has been narrowly tailored to impose the least impact on general navigation yet provide the level of safety deemed necessary. Vessel traffic will be able to transit the regulated area between heats, when the Coast Guard Patrol Commander deems it is safe to do so. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule would affect the following entities, some of which might be small entities: The owners or operators of vessels intending to transit or anchor in a portion of the Western Branch, Elizabeth River during the event. This rule would not have a significant economic impact on a substantial number of small entities for the following reasons. This rule would be in effect for only a limited period. Vessel traffic will be able to transit the regulated area between heats, when the Coast Guard Patrol Commander deems it is safe to do so. Before the enforcement period, we will issue maritime advisories so mariners can adjust their plans accordingly. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process. Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard. Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not effect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not create an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments This rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD which guides the Coast Guard in complying with the National Environmental Policy Act of 1969

(NEPA)(42 U.S.C. 4321-4370f), and have concluded that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, this rule is categorically excluded, under figure 2-1, paragraph (34)(h), of the Instruction, from further environmental documentation. Special local regulations issued in conjunction with a regatta or marine event permit are specifically excluded from further analysis and documentation under that section. Under figure 2-1, paragraph (34)(h), of the Instruction, an “Environmental Analysis Check List” and a “Categorical Exclusion Determination” are not required for this rule. List of Subjects in 33 CFR Part 100 Marine safety, Navigation (water), Reporting and recordkeeping requirements, and Waterways. Words of Issuance and Regulatory Text For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 100 as follows: PART 100—SAFETY OF LIFE ON NAVIGABLE WATERS 1. The authority citation for part 100 continues to read as follows: Authority: 33 U.S.C. 1233. 2. Add a temporary § 100.35-T05-018 to read as follows: § 100.35-T05-018, Western Branch, Elizabeth River, Portsmouth, VA.

(a)*Regulated area* includes all waters of the Western Branch, Elizabeth River bounded by a line connecting the following points: latitude 36°50′06″ N, longitude 076°22′27″ W, thence to latitude 36°50′06″ N, longitude 076°21′57″ W, thence to latitude 36°50′15″ N, longitude 076° 21′55.8″ W, thence to latitude 36°50′15″ N, longitude 076°22′27″ W, thence to point of origin. All coordinates reference Datum: NAD 1983.

(b)*Definitions:*

(1)*Coast Guard Patrol Commander* means a commissioned, warrant, or petty officer of the Coast Guard who has been designated by the Commander, Coast Guard Sector Hampton Roads.

(2)*Official Patrol* means any vessel assigned or approved by Commander, Coast Guard Sector Hampton Roads with a commissioned, warrant, or petty officer on board and displaying a Coast Guard ensign.

(3)*Participant* includes all vessels participating in the Virginia State Hydroplane Championship under the auspices of the Marine Event Permit issued to the event sponsor and approved by Commander, Coast Guard Sector Hampton Roads.

(c)*Special local regulations:*

(1)Except for event participants and persons or vessels authorized by the Coast Guard Patrol Commander, no person or vessel may enter or remain in the regulated area.

(2)The operator of any vessel in the regulated area must:

(i)Stop the vessel immediately when directed to do so by any Official Patrol.

(ii)Proceed as directed by any Official Patrol.

(iii)When authorized to transit the regulated area, all vessels shall proceed at the minimum speed necessary to maintain a safe course that minimizes wake near the race course.

(d)*Enforcement period.* This section will be enforced from 8 a.m. to 6 p.m. on April 19 and 20, 2008. A notice of enforcement of this section will be disseminated through the Fifth Coast Guard District Local Notice to Mariners announcing the specific event date and times. Notice will also be made via broadcast notice to mariners on VHF-FM marine band radio channel 22 (157.1 MHz). Dated: March 17, 2008. Fred M. Rosa, Jr., Rear Admiral, U.S. Coast Guard, Commander, Fifth Coast Guard District. [FR Doc. E8-6154 Filed 3-25-08; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [USCG-2008-0177] Drawbridge Operation Regulations; Harlem River, New York City, NY AGENCY: Coast Guard, DHS. ACTION: Notice of temporary deviation from regulations. SUMMARY: The Commander, First Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the TBTA Bridge across the Harlem River, mile 1.3, at New York City, New York. Under this temporary deviation the TBTA Bridge may remain in the closed position from May 1, 2008 through August 31, 2008. This deviation is necessary to facilitate scheduled bridge maintenance. DATES: This deviation is effective from May 1, 2008 through August 31, 2008. ADDRESSES: Documents indicated in this preamble as being available in the docket are part of docket USCG-2008-0177 and are available online at *http:// www.regulations.gov* . They are also available for inspection or copying at two locations: the Docket Management Facility (M-30), U.S. Department of Transportation, 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, and the First Coast Guard District, Bridge Branch Office, 408 Atlantic Avenue, Boston, Massachusetts 02110, between 7 a.m. and 2 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Joe Arca, Project Officer, First Coast Guard District, at

(212)668-7165. SUPPLEMENTARY INFORMATION: The TBTA Bridge, across the Harlem River at mile 1.3, at New York City, New York, has a vertical clearance in the closed position of 54 feet at mean high water and 59 feet at mean low water. The existing drawbridge operation regulations are listed at 33 CFR 117.789(d). The owner of the bridge, Triborough Bridge & Tunnel Authority (TBTA), requested a temporary deviation to facilitate scheduled bridge maintenance, cleaning and painting. The mariners that normally transit this bridge do not require bridge openings. Under this temporary deviation the TBTA Bridge may remain in the closed position from May 1, 2008 through August 31, 2008. Vessels that can pass under the bridge without a bridge opening may do so at all times. In accordance with 33 CFR 117.35(e), the bridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35. Should the bridge maintenance authorized by this temporary deviation be completed before the end of the effective period published in this notice, the Coast Guard will rescind the remainder of this temporary deviation, and the bridge shall be returned to its normal operating schedule. Notice of the above action shall be provided to the public in the Local Notice to Mariners and the **Federal Register** , where practicable. Dated: March 17, 2008. Gary Kassof, Bridge Program Manager, First Coast Guard District. [FR Doc. E8-6151 Filed 3-25-08; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG-2008-0084] Drawbridge Operation Regulations; Raritan River, Perth Amboy, NJ AGENCY: Coast Guard, DHS. ACTION: Notice of temporary deviation from regulations. SUMMARY: The Commander, First Coast Guard District, has issued a temporary deviation from the regulations governing the operation of the NJTRO Bridge, across the Raritan River, mile 0.5, at Perth Amboy, New Jersey. Under this temporary deviation the draw may remain in the closed position on March 29 and 30, 2008, with a rain date of April 5 and 6, 2008, in the event of inclement weather. Vessels that can pass under the draw without an opening may do so at all times. This deviation is necessary to facilitate scheduled bridge maintenance. DATES: This deviation is effective from March 29, 2008 through April 6, 2008. ADDRESSES: Documents indicated in this preamble as being available in the docket are part of docket USCG-2008-0084 and are available online at *http:// www.regulations.gov* . They are also available for inspection or copying at two locations: The Docket Management Facility (M-30), U.S. Department of Transportation, 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, and the First Coast Guard District, Bridge Branch Office, One South Street, New York, New York 10004, between 7 a.m. and 3 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Joe Arca, Project Officer, First Coast Guard District, at

(212)668-7165. SUPPLEMENTARY INFORMATION: The NJTRO Bridge, across the Raritan River, mile 0.5, at Perth Amboy, New Jersey, has a vertical clearance in the closed position of 8 feet at mean high water and 13 feet at mean low water. The existing regulations are listed at 33 CFR 117.747. The owner of the bridge, New Jersey Transit Rail Operations (NJTRO), requested a temporary deviation to facilitate scheduled mechanical maintenance at the bridge. In order to perform the bridge maintenance the bridge must remain in the closed position. Under this temporary deviation the NJTRO Bridge across the Raritan River, mile 0.5, at Perth Amboy, New Jersey, need not open for the passage of vessel traffic on March 29 and 30, 2008, with a rain date of April 5 and 6, 2008, in the event inclement weather prevents the bridge maintenance from being performed on the former date. Vessels that can pass under the draw without a bridge opening may do so at all times. Should the bridge maintenance authorized by this temporary deviation be completed before the end of the effective period published in this notice, the Coast Guard will rescind the remainder of this temporary deviation, and the bridge shall be returned to its normal operating schedule. Notice of the above action shall be provided to the public in the Local Notice to Mariners and the **Federal Register** , where practicable. In accordance with 33 CFR 117.35(e), the bridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35. Dated: March 17, 2008. Gary Kassof, Bridge Program Manager, First Coast Guard District. [FR Doc. E8-6152 Filed 3-25-08; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [USCG-2008-0151] Drawbridge Operation Regulations; State Boat Channel, Babylon, NY AGENCY: Coast Guard, DHS. ACTION: Notice of temporary deviation from regulations. SUMMARY: The Commander, First Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the Robert Moses Causeway Bridge across the State Boat Channel at mile 30.7, at Babylon, New York. Under this temporary deviation the Robert Moses Causeway Bridge may remain in the closed position from March 31, 2008 through June 15, 2008. This deviation is necessary to facilitate scheduled bridge maintenance. DATES: This deviation is effective from March 31, 2008 through June 15, 2008. ADDRESSES: Documents indicated in this preamble as being available in the docket are part of docket USCG-2008-0151 and are available online at *http:// www.regulations.gov* . They are also available for inspection or copying at two locations: The Docket Management Facility (M-30), U.S. Department of Transportation, 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, and the First Coast Guard District, Bridge Branch Office, 408 Atlantic Avenue, Boston, Massachusetts 02110, between 7 a.m. and 3 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Judy Leung-Yee, Project Officer, First Coast Guard District, at

(212)668-7165. SUPPLEMENTARY INFORMATION: The Robert Moses Causeway Bridge, across the State Boat Channel at mile 30.7, at Babylon, New York, has a vertical clearance in the closed position of 29 feet at normal channel pool elevation and 100 feet of horizontal clearance in the main channel. The existing drawbridge operation regulations are listed at 33 CFR 117.799(i). The owner of the bridge, New York Department of Transportation, requested a temporary deviation to facilitate scheduled bridge rehabilitation and painting operations. Under this temporary deviation the Robert Moses Causeway Bridge may remain in the closed position from March 31, 2008 through June 15, 2008. Vessels that can pass under the draw without a bridge opening may do so at all times; however, vertical and horizontal clearances may be reduced at various locations. Further information regarding vertical and horizontal clearance reductions will be published in the Local Notice to Mariners. This work was scheduled during the time of year when the bridge seldom opens. The recreational boat marinas were contacted and have no objection to the bridge closure. In accordance with 33 CFR 117.35(e), the bridge must return to its regular operating schedule immediately at the end of the designated time period. This deviation from the operating regulations is authorized under 33 CFR 117.35. Should the bridge maintenance authorized by this temporary deviation be completed before the end of the effective period published in this notice, the Coast Guard will rescind the remainder of this temporary deviation, and the bridge shall be returned to its normal operating schedule. Notice of the above action shall be provided to the public in the Local Notice to Mariners and the **Federal Register** , where practicable. Dated: March 17, 2008. Gary Kassof, Bridge Program Manager, First Coast Guard District. [FR Doc. E8-6153 Filed 3-25-08; 8:45 am] BILLING CODE 4910-15-P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket No. USCG-2008-0173] RIN 1625-AA00 Safety Zone; Longwood Events Wedding Fireworks Display, Boston Harbor, Boston, MA AGENCY: Coast Guard, DHS. ACTION: Temporary final rule. SUMMARY: The Coast Guard is establishing a temporary safety zone for the Longwood Events Wedding Fireworks display to be held on March 29, 2008 in Boston, Massachusetts. The zone temporarily closes all waters of Boston Harbor within a four hundred

(400)yard radius of the fireworks launch site located in Boston Harbor at approximate position 42°21′42″ N, 071°2′36″ W. The safety zone is necessary to protect the maritime public from the potential hazards posed by a fireworks display. Entry into this zone is prohibited during the closure period unless authorized by the Captain of the Port Boston, Massachusetts. DATES: This rule is effective from 8:45 p.m. through 9:45 p.m. on March 29, 2008. ADDRESSES: Documents indicated in this preamble as being available in the docket are part of docket USCG-2008-0173 and are available online at *www.regulations.gov* . They are also available for inspection or copying two locations: the Docket Management Facility (M-30), U.S. Department of Transportation, 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, and the Sector Boston, Prevention Department, 427 Commercial Street, Boston, MA 02109 between 7 a.m. and 3 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary rule, call Chief Petty Officer Eldridge McFadden, Waterways Management Division at 617-223-5160. If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202-366-9826. SUPPLEMENTARY INFORMATION: Regulatory Information We did not publish a notice of proposed rulemaking

(NPRM)for this regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing an NPRM, because the logistics with respect to the fireworks presentation were not determined with sufficient time to draft and publish an NPRM. Any delay encountered in this regulation's effective date would be contrary to the public interest since the safety zone is needed to prevent traffic from transiting a portion of Boston Harbor during the fireworks display and to provide for the safety of life on navigable waters. For the same reasons, under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the **Federal Register** . Background and Purpose Atlas Pyrovision is conducting a fireworks display on behalf of a wedding coordinated by Longwood Events. This rule establishes a temporary safety zone on the waters of Boston Harbor within a four hundred

(400)yard radius of the fireworks launch site located in Boston harbor at approximate position 42°21′42″ N, 071°2′36″ W. This safety zone is necessary to protect the life and property of the maritime public from the potential dangers posed by this event. The zone will protect the public by prohibiting entry into or movement within the proscribed portion of Boston Harbor during the fireworks display. Marine traffic may transit safely outside of the zone during the effective period. The Captain of the Port does not anticipate any negative impact on vessel traffic due to this event. Public notifications will be made prior to and during the effective period via safety marine information broadcasts and Local Notice to Mariners. Discussion of Rule This rule is effective from 8:45 p.m. through 9:45 p.m. on March 29, 2008. Marine traffic may transit safely outside of the safety zone in the majority of Boston Harbor during the event. Given the limited time-frame of the effective period of the zone and the time of the event, the Captain of the Port anticipates minimal negative impact on vessel traffic due to this event. Public notifications will be made prior to and during the effective period via Local Notice to Mariners and marine information broadcasts. Regulatory Evaluation This rule is not a “significant regulatory action” under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. The Coast Guard expects the economic impact of this rule to be so minimal that a full Regulatory Evaluation is unnecessary. Although this rule will prevent traffic from transiting a portion of Boston Harbor during the fireworks display, the effect of this rule will not be significant for several reasons: Vessels will be excluded from the safety zone for less than one hour, vessels, although excluded from the zone, will have sufficient navigable water to safely maneuver in the waters surrounding the zone; and advance notifications will be made to the local maritime community by marine information broadcasts and Local Notice to Mariners. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This rule will affect the following entities, some of which may be small entities: The owners or operators of vessels intending to transit or anchor in a portion of Boston Harbor from 8:45 p.m. through 9:45 p.m. on March 29, 2008. This safety zone will not have a significant economic impact on a substantial number of small entities for the reason described under the Regulatory Evaluation section. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small entities in understanding the rule so that they can better evaluate its effects on them and participate in the rulemaking process. Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard. Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Federalism A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on State or local governments and would either preempt State law or impose a substantial direct cost of compliance on them. We have analyzed this rule under that Order and have determined that it does not have implications for federalism. Unfunded Mandates Reform Act The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. Taking of Private Property This rule will not effect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. Protection of Children We have analyzed this rule under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not create an environmental risk to health or risk to safety that may disproportionately affect children. Indian Tribal Governments This rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. Energy Effects We have analyzed this rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a “significant energy action” under that order because it is not a “significant regulatory action” under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. The Administrator of the Office of Information and Regulatory Affairs has not designated it as a significant energy action. Therefore, it does not require a Statement of Energy Effects under Executive Order 13211. Technical Standards The National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note) directs agencies to use voluntary consensus standards in their regulatory activities unless the agency provides Congress, through the Office of Management and Budget, with an explanation of why using these standards would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., specifications of materials, performance, design, or operation; test methods; sampling procedures; and related management systems practices) that are developed or adopted by voluntary consensus standards bodies. This rule does not use technical standards. Therefore, we did not consider the use of voluntary consensus standards. Environment We have analyzed this rule under Commandant Instruction M16475.lD which guides the Coast Guard in complying with the National Environmental Policy Act of 1969

(NEPA)(42 U.S.C. 4321-4370f), and have concluded that there are no factors in this case that would limit the use of a categorical exclusion under section 2.B.2 of the Instruction. Therefore, this rule is categorically excluded, under figure 2-1, paragraph (34)(g), of the Instruction, from further environmental documentation. Under figure 2-1, paragraph (34)(g), of the Instruction, an “Environmental Analysis Check List” and a “Categorical Exclusion Determination” are not required for this rule because it concerns an emergency situation of less than 1 week in duration. List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, and Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L. 107-295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. 2. Add temporary § 165.T01-0173 to read as follows: § 165.T01-0173 Safety Zone: Longwood Events Wedding Fireworks Display, Boston Harbor, Boston, MA.

(a)*Location.* The following area is a safety zone: All waters of Boston Harbor, from surface to bottom, within a four hundred

(400)yard radius of the fireworks launch site located in Boston Harbor at approximate position 42°21′42″ N, 071°2′36″ W.

(b)*Effective Date.* This rule is effective from 8:45 p.m. through 9:45 p.m. on March 29, 2008.

(c)Definitions.

(1)Designated representative means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer operating a Coast Guard vessel or a Federal, State, or local officer designated by or assisting the Captain of the Port (COTP).

(2)[Reserved]

(d)*Regulations.*

(1)In accordance with the general regulations in section 165.23 of this part, entry into or movement within this zone by any person or vessel is prohibited unless authorized by the Captain of the Port (COTP), Boston or the COTP's designated representative.

(2)The safety zone is closed to all vessel traffic, except as may be permitted by the COTP or the COTP's designated representative.

(3)Vessel operators desiring to enter or operate within the safety zone must contact the COTP or the COTP's designated representative to obtain permission by calling the Sector Boston Command Center at 617-223-5761. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the COTP or the COTP's designated representative. Dated: March 12, 2008. Gail P. Kulisch, Captain, U.S. Coast Guard, Captain of the Port, Sector Boston. [FR Doc. E8-6149 Filed 3-25-08; 8:45 am] BILLING CODE 4910-15-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 30, 31, 33, 35, and 40 [Docket ID NO. EPA-HQ-OA-2002-0001; FRL-8545-9] RIN 2090-AA38 Participation by Disadvantaged Business Enterprises in Procurement Under Environmental Protection Agency

(EPA)Financial Assistance Agreements AGENCY: Environmental Protection Agency. ACTION: Final rule. SUMMARY: This action will harmonize EPA's statutory Disadvantaged Business Enterprise procurement objectives with the United States Supreme Court's decision in *Adarand Constructors, Inc.* v. *Pena* , 515 U.S. 200 (1995). In that case, the Supreme Court extended strict judicial scrutiny to federal programs that use racial or ethnic criteria as a basis for decision making. Remedying discrimination is recognized as a compelling government interest, and this rule is promulgated on the understanding that the statutory provisions authorizing its adoption were enacted for that remedial purpose. This rule sets forth a narrowly tailored EPA program to serve the compelling government interest of remedying past and current racial discrimination through agency-wide DBE procurement objectives. EPA intends to evaluate the propriety of the Disadvantaged Business Enterprise program in 7 years through subsequent rulemaking. This rule also revises EPA's Minority Business Enterprise

(MBE)and Women's Business Enterprise

(WBE)program and renames it EPA's Disadvantaged Business Enterprise

(DBE)Program. EPA is removing existing MBE/WBE specific provisions in regulations for grants and agreements with institutions of higher education, hospitals, and other non-profit organizations; and uniform administrative requirements for grants and cooperative agreements to state and local governments, state and local assistance, and research and demonstration grants, and is consolidating and adding to these provisions in this new regulation. This rule affects only procurements under EPA financial assistance agreements. This rule does not apply to direct Federal procurement actions. If you are a recipient of an EPA financial assistance agreement or an entity receiving an identified loan under a financial assistance agreement capitalizing a revolving loan fund, this rule may affect you. DATES: This final rule is effective May 27, 2008. ADDRESSES: EPA has established a docket for this action under Docket ID No. EPA-HQ-OA-2002-0001. All documents in the docket are listed on the *www.regulations.gov* Web site. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically through *www.regulations.gov* or in hard copy at the HQ EPA Docket Center, EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC 20004. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is

(202)566-1744, and the telephone number for the Office of Environmental Information is

(202)566-1752. FOR FURTHER INFORMATION CONTACT: Kimberly Patrick, Attorney Advisor, Office of the Administrator, Office of Small and Disadvantaged Business Utilization (OSDBU) by phone at

(202)566-2605, by e-mail at *patrick.kimberly@epa.gov* , or by fax at

(202)566-0548; or Cassandra Freeman, Deputy Director, Office of the Administrator, OSDBU by phone at

(202)566-1968, by e-mail at *freeman.cassandra@epa.gov* , or by fax at

(202)566-0266. Both can be reached by mail to OSDBU, U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue, NW., mail code 1230T, Washington, DC 20460. SUPPLEMENTARY INFORMATION: The contents of this final rule are listed in the following outline: Contents of the Final Rule I. General Information A. Does This Rule Apply to Me? B. What are the Statutory Authorities for this Final Rule? II. Background III. Overview of Final Rule IV. Summary of Response to Public Comments V. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments G. Executive Order 13045: Protection of Children From Environmental Health and Safety Risks H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use I. National Technology Transfer and Advancement Act of 1995 J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations K. Congressional Review Act I. General Information A. Does This Rule Apply to Me? If you are a recipient of an EPA financial assistance agreement, or an entity receiving an identified loan under a financial assistance agreement capitalizing a revolving loan fund, or a minority-owned, woman-owned, or small business, this rule may affect you. If you have any questions regarding the applicability of this action to a particular entity, consult the person listed in the preceding FOR FURTHER INFORMATION CONTACT section. B. What Are the Statutory Authorities for This Final Rule? EPA's primary statutory authorities for this final rule are: 1. Public Law 102-389 (42 U.S.C. 4370d), a 1993 appropriations act (“EPA's 8% statute”), which provides: The Administrator of the Environmental Protection Agency shall, hereafter, to the fullest extent possible, ensure that at least 8 per centum of Federal funding for prime and subcontracts awarded in support of authorized programs, including grants, loans and contracts for wastewater treatment and leaking underground storage tanks grants, be made available to business concerns or other organizations owned or controlled by socially and economically disadvantaged individuals (within the meaning of section 8(a)(5) and

(6)of the Small Business Act (15 U.S.C. 637(a)(5) and (6)), including historically black colleges and universities. For purposes of this section, economically and socially disadvantaged individuals shall be deemed to include women * * *; and 2. Public Law 101-549, Title X of the Clean Air Act Amendments of 1990 (42 U.S.C. 7601 note) (“EPA's 10% statute”), which states: In providing for any research relating to the requirements of the amendments made by the Clean Air Act Amendments which use funds of the Environmental Protection Agency, the Administrator of the Environmental Protection Agency shall, to the extent practicable, require that not less than 10 percent of the total Federal funding for such research will be made available to disadvantaged business concerns. Nothing in this title shall permit or require the use of quotas or a requirement that has the effect of a quota in determining eligibility * * * Other legal authorities and Executive Orders regarding this final rule include Public Law 99-499, the Superfund Amendments and Reauthorization Act of 1986; Public Law 100-590, the Small Business Administration Reauthorization and Amendment Act of 1988; Executive Order 12138, “Creating a National Women's Business Enterprise Policy and Prescribing Arrangements for Developing, Coordinating and Implementing a National Program for Women's Business Enterprise,” issued May 18, 1979; Executive Order 11625, “Prescribing Additional Arrangements for Developing and Coordinating a National Program for Minority Business Enterprise,” issued October 13, 1971; and Executive Order 12432, “Minority Business Enterprise Development,” issued July 14, 1983. II. Background EPA's current Minority Business Enterprise/Woman-owned Business Enterprise (“MBE/WBE”) program has three major components designed to ensure that minority and women-owned businesses have the opportunity to participate in procurements funded by EPA financial assistance agreements. Those components are as follows: 1. *Negotiating Fair Share Goals:* The current MBE/WBE program requires all recipients of EPA financial assistance agreements to negotiate goals with the Agency for the utilization of MBEs/WBEs for procurements funded by EPA financial assistance agreements. The goals are based on disparity studies or availability analyses showing the availability of MBEs or WBEs in the financial assistance recipient's relevant geographic buying market. These goals do not operate as quotas. 2. *Using the “Six Positive Efforts” or “Six Affirmative Steps”:* The “Six Positive Efforts” or “Six Affirmative Steps” are measures designed to ensure MBEs and WBEs are considered in a financial assistance recipient's procurement practices, and they contain measures a recipient may undertake to make procurements more open to MBEs and WBEs. 3. *Reporting Accomplishments:* Under the current MBE/WBE program, recipients of EPA financial assistance agreements are required to report on their accomplishments with the program using EPA Form 5700-52A. Reporting is the tool we use to assess whether or not the program is effective and actually translating into increased opportunities for MBEs and WBEs. EPA's MBE/WBE Program is currently implemented through:

(1)Existing MBE and WBE provisions scattered throughout 40 CFR parts 30, 31, 35 and 40;

(2)Grant conditions; and

(3)The Agency's “Guidance for the Utilization of Small, Minority, and Women's Business Enterprises in Assistance Agreements.” In 1995, the Supreme Court's decision in *Adarand Constructors, Inc.* v. *Federico Pena* , Secretary of Transportation, 515 U.S. 200 (“Adarand”), extended strict judicial scrutiny to federal affirmative action programs that use racial or ethnic criteria as a basis for decisionmaking. In other words, such programs must be based on a compelling governmental interest, for example, remedying the effects of discrimination, and must be narrowly tailored to accomplish that interest. Following the Adarand decision, in 1996, the Department of Justice

(DOJ)began a review of affirmative action programs in the Federal Government. In response to this review, the Department of Transportation (DOT), whose DBE program mirrored EPA's MBE/WBE program, revised its program for participation of DBEs in procurements under DOT's financial assistance agreements to comply with the Adarand decision (See 64 FR 5096). This final rule reflects EPA's efforts to similarly comply. Remedying discrimination is recognized as a compelling government interest, and this rule is promulgated on the understanding that the statutory provisions authorizing its adoption were enacted for that remedial purpose. This rule sets forth a narrowly tailored EPA program to serve the compelling government interest of remedying past and current racial discrimination through agency-wide DBE procurement objectives. EPA intends to evaluate the propriety of the Disadvantaged Business Enterprise program in 7 years through subsequent rulemaking This final rule requires recipients to use race/gender-neutral measures to ensure DBEs have meaningful opportunities to bid on recipient-sponsored procurements. It does not require recipients to use race/gender-conscious measures. However, if a recipient elects to use such measures, the recipient should satisfy itself that the measure meets all applicable legal requirements, including those established in Adarand. Because this rule only requires race/gender-neutral measures, it should not be subject to strict judicial scrutiny. Even so, we believe this rule is narrowly tailored to achieve a compelling governmental interest consistent with Adarand. EPA worked collaboratively on this rulemaking with various program offices within the Agency, the EPA Office of General Counsel, and the EPA Regions. We also held discussions with other Federal agencies, including SBA and DOT whose DBE programs are in some ways similar to ours, or have undergone changes similar to the ones we are implementing. EPA has also collaborated with the Civil Rights Division of DOJ throughout the rulemaking process. III. Overview of Final Rule This rulemaking removes all of EPA's current MBE/WBE fair share objectives and good faith efforts regulatory provisions and replaces them with DBE provisions to be codified in the new 40 CFR part 33. In addition, this rule supersedes inconsistent provisions of previous guidance documents for EPA's former MBE and WBE Program, including, but not limited to, EPA's “Guidance for Utilization of Small, Minority, and Women's Business Enterprises in Procurement Under Assistance Agreements” (the 1997 Guidance), 62 FR 45645. There are six substantive changes this rule will make to the way the program currently operates. Those changes involve:

(1)Certification of minority and women-owned businesses;

(2)the six good faith efforts;

(3)contract administration requirements;

(4)negotiation of fair share goals;

(5)recordkeeping and reporting requirements; and

(6)new requirements for Tribal and insular area fair share negotiations. The specific changes are summarized as follows: 1. Certification Under the current MBE/WBE program EPA recognizes Small Business Administration

(SBA)certifications, or certifications by a State or other Federal Agency, or self-certifications. EPA currently does not require WBEs to be certified. Under the new DBE program promulgated today, in order to be counted as an MBE or WBE under an EPA financial assistance agreement, an entity will have to be certified as such. EPA will require an MBE/WBE to first seek certification by a federal agency ( *e.g.* , the Small Business Administration (SBA), the Department of Transportation (DOT)), or by a State, locality, Indian Tribe, or independent private organization provided their applicable criteria match those under section 8(a)

(5)and

(6)of the Small Business Act and SBA's applicable 8(a) Business Development Program regulations. EPA will only consider certifying firms that cannot get certified by one of these entities. Requiring firms to first seek certification from other sources is beneficial for the business entity because an EPA certification is limited in that it would only be accepted by EPA. Certifications from other sources have broader applications. Also, requiring firms to first seek certification from other sources reduces the burden on the Agency associated with processing certifications. The creation and implementation of an EPA certification program is necessary because the statutory authority for EPA's program includes classifications of businesses that are not currently certified by other sources. Businesses that fall within these classifications would potentially have no other option for certification to participate in EPA's DBE program. EPA anticipates that the following types of entities will have to be considered for certification by EPA: 1. Disabled American-owned firms; 2. Private and voluntary organizations controlled by individuals who are socially and economically disadvantaged; 3. Women-owned and minority owned-businesses who cannot get certified under DOT or SBA size criteria (EPA does not have size criteria) or by a State Government, local Government, Indian Tribal Government or independent private organization; 4. Businesses owned or controlled by socially and economically disadvantaged individuals (note—SBA and DOT require an entity to be owned and controlled by socially and economically disadvantaged individuals. However, the statutory authority for EPA's DBE program requires ownership or control, Public Law 102-389); and 5. Women-owned business enterprises. EPA certifications will last for three years as long as the certified entity files an annual affidavit affirming that no changes in circumstances have occurred which affected the entity's status as an MBE or WBE. Appeal procedures are provided for entities denied MBE or WBE certification, or anyone who disagrees with EPA's decision to certify an entity as an MBE or WBE. 2. Six Good Faith Efforts The good faith efforts are activities by a recipient and its prime contractor to increase DBE awareness of procurement opportunities through race/gender neutral efforts. Race/gender neutral efforts are ones which increase awareness of contracting opportunities in general, including outreach, recruitment and technical assistance. For purposes of simplification, EPA has combined the “Six Positive Efforts” of 40 CFR 30.44

(b)applicable to institutions of higher education, hospitals and other non-profit organizations with the “Six Affirmative Steps” of 40 CFR 31.36(e) applicable to State, Local and Indian Tribal Government recipients and renamed them the six “good faith efforts.”. 3. Contract Administration Requirements The rule adds additional contract administration requirements which are intended to prevent any “bait and switch” tactics at the subcontract level by prime contractors which may circumvent the spirit of the DBE Program as well as other related requirements. Some of these requirements include provisions intended to ensure that subcontractors receive prompt payment from prime contractors. In addition, this proposal would require a recipient to be notified in writing before its prime contractor could terminate a DBE subcontractor for convenience and then perform the work itself. Furthermore, when a DBE subcontractor is terminated or fails to complete its work under the subcontract for any reason, the recipient must require the prime contractor to make good faith efforts if the prime contractor chooses to hire another subcontractor. A recipient must also require its prime contractor to continue to make the good faith efforts even if the fair share objectives in subpart D of the rule have been met. Finally, this rule provides for three new forms which are required if there are DBE subcontractors involved in a procurement. 4. Negotiation of Fair Share Goals (and $250,000 Exemptions) This rule codifies EPA's procedures for negotiating fair share goals with financial assistance recipients. The process for such negotiations is currently implemented through guidance, as well as through terms and conditions incorporated into EPA financial assistance agreements. This rulemaking keeps the current basic approach, with some fine tuning, including a provision which would exempt a recipient of a financial assistance agreement of $250,000 or less for any assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in EPA funds in any one year, from the fair share objective negotiation requirement. In addition, eligible program grants which can be included in Performance Partnership Grants to Tribal and Tribal consortia recipients will be exempt from the fair share negotiation requirement due to the nature of these program grants and the unique nature of eligible recipients. Superfund Technical Assistance Grants (TAG's) would be exempt due to the nature of their funding cycles. A recipient under the Clean Water State Revolving Fund, the Drinking Water State Revolving Fund, and the Brownfields Clean-Up Revolving Loan Fund is not required to apply the fair share objective requirements to an entity receiving an identified loan in an amount of $250,000 or less. 5. Recordkeeping and Reporting Requirements Currently, all financial assistance agreement recipients must report on a quarterly basis, except for recipients of continuing environmental program grants, and institutions of higher education, hospitals and other non-profit organizations receiving financial assistance awards under 40 CFR part 30, who report on an annual basis. This rule will reduce the reporting frequency to semi-annually for all recipients who currently report on a quarterly basis. This rule also requires all financial assistance recipients, and recipients of loans under CWSRF, DWSRF, or BCRLF Programs to create and maintain a bidders list. There is an exemption from this requirement for recipients receiving grants or loans of $250,000 or less for any single assistance agreement or loan, or of more than one financial assistance agreement or loan with a combined total of $250,000 or less in EPA funds in any one year. 6. New Requirement for Tribal and Trust Territory Fair Share Negotiations EPA does not currently negotiate fair share goals with Indian Tribal Government and Trust Territory recipients. This rule will require such recipients to negotiate fair share goals. Therefore, under the rule such recipients will have a three year phase-in period to adjust to the regulatory change. In the interim, they will still have to comply with the other requirements of this rule. IV. Summary of Response to Public Comments Excluding changes in wording to increase clarity, there are only four substantive changes reflected in this final rule. Those changes, along with a breakdown of the number and type of comments received, are below: Number of Comments Received: 126 Primary areas of public concern Number of comments Percent of all comments Certification 23 18 General (wording and clarification) 16 13 Good Faith Efforts 14 11 Subcontracting Provisions 12 9 Bidders List 11 9 *Major Revisions Based on Public Comment (not including wording or clarification):* 1. § 33.105—Enforcement Provisions There were several comments concerning enforcement of the rule. A number of comments stated that there are no “teeth” in the program and that more policing of the program will be needed to insure compliance with the requirements of the rule. While the text of the rule mentions that EPA can take remedial action for non-compliance, it does not clearly state what those actions are. In an effort to show more “teeth,” this section has been revised to include some of the remedial measures EPA can take if a recipient fails to comply with the requirements of the rule. 2. § 33.302—Subcontractor Provisions Public comment requested that EPA specify the number of days within which a prime must pay its subcontractor after payment by the recipient. In an effort to curtail the practice of excessively late subcontractor payments, the rule establishes maximum of 30 days by which a prime contractor must pay its subcontractor, after payment by the grant recipient. 3. § 33.501—Bidders List Many comments were received requesting clarification about the contents, purpose and duration of the bidders list. The purpose of the Bidders List is to provide the recipient and entities receiving identified loans who conduct competitive bidding with a more accurate database of the universe of MBE/WBE and non-MBE/WBE prime and subcontractors. The bidders list is intended to be a list of all firms that are participating, or attempting to participate, on EPA assisted contracts. The list must include all firms that bid on prime contracts, or bid or quote on subcontracts under EPA assisted projects, including both MBE/WBEs and non-MBE/WBEs. The bidders list is designed to also aid recipients in their efforts to comply with the “six good faith efforts,” by creating a source of MBEs and WBEs that can be relied upon to increase the inclusion of MBEs and WBEs in the recipient's procurement practices. Section 33.501(b) of the rule has been revised to read as follows: A recipient of a Continuing Environmental Program Grant or other annual grant must create and maintain a bidders list. In addition, a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund also must require entities receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to follow, competitive bidding requirements. The purpose of a bidders list is to provide the recipient and entities receiving identified loans who conduct competitive bidding with as accurate a database as possible about the universe of MBE/WBE and non-MBE/WBE prime and subcontractors. The list must include all firms that bid or quote on prime contracts or bid or quote on subcontracts under EPA assisted projects, including both MBE/WBEs and non-MBE/WBEs. The bidders list must be kept until the grant project period has expired and the recipient is no longer receiving EPA funding under the grant. For entities receiving identified loans, the bidders list must be kept until the project period for the identified loan has ended. The following information must be obtained from all prime and subcontractors:

(1)Entity's name with point of contact;

(2)Entity's mailing address, telephone number, and e-mail address;

(3)The procurement on which the entity bid or quoted, and when; and

(4)Entity's status as an MBE/WBE or non-MBE/WBE. In response to internal concerns regarding the application of the bidders list requirement, we have created an exemption to this provision. The exemption found at § 33.501(c) is as follows: A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal year, is exempt from the paragraph

(b)of this section requirement to create and maintain a bidders list. Also, a recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the paragraph

(b)of this section bidders list requirement of this subpart to an entity receiving an identified loan in an amount of $250,000 or less, or to an entity receiving more than one identified loan with a combined total of $250,000 or less in any one fiscal year. This exemption is limited to the paragraph

(b)of this section bidders list requirements of this subpart. 4. § 33.502—Reporting In response to internal and external comments, this section of the rule has been revised to require semiannual reporting for all recipients who currently report on a quarterly basis. All recipients who report annually will continue to do so. A section-by-section analysis of the rule, addressing public comments in detail, can be found on the public docket for this rule making under Docket ID No. EPA-HQ-OA-2002-0001, at *www.regulations.gov.* V. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review Under Executive Order

(EO)12866 (58 FR 51735, October 4, 1993), this action is a “significant regulatory action.” This rule reflects and raises legal or policy issues arising out of legal mandates. This rule has a direct impact on contracting funded by EPA financial assistance agreements. There is substantial public interest concerning programs to ensure nondiscrimination in federally assisted contracting, as well as policy concerns. This rule also affects a wide variety of parties, including all EPA financial assistance programs, and the DBE and non-DBE contractors that perform work under them. As a “significant regulatory action,” EPA submitted this action to the Office of Management and Budget

(OMB)for review under EO 12866 and any changes made in response to OMB recommendations have been documented in the docket for this action. Based on currently available information about costs that may be associated with complying with this rule (e.g., costs to obtain MBE or WBE certification), EPA believes that this rule will not have an annual effect on the economy of $100 million or more. Therefore, EPA did not prepare a regulatory impact statement for this rule. B. Paperwork Reduction Act The Office of Management and Budget

(OMB)has approved the information collection requirements contained in this rule under the provisions of the Paperwork Reduction Act, 44 U.S.C 3501 *et seq.* and has assigned OMB control number 2090-0030. This ICR is for the purpose of ensuring that EPA's statutory DBE procurement goal requirements are implemented in harmony with the United States Supreme Court's decision in *Adarand Constructors, Inc.* v. *Pena,* 115 S. Ct. 2097 (1995). The requirements to complete EPA Forms 6100-2-DBE Program Subcontractor Participation Form, 6100-3-DBE Program Subcontractor Performance Form, and 6100-4-DBE Program Subcontractor Utilization Form, are intended to prevent any “bait and switch” tactics at the subcontract level by prime contractors which may circumvent the spirit of the DBE Program. The requirements to complete the EPA DBE Certification Application (EPA Form 6100-1a) (Sole Proprietorship), the EPA DBE Certification Application (EPA Form 6100-1b) (Limited Liability Company), the EPA DBE Certification Application (EPA 6100-1c) (Partnerships), the EPA DBE Certification Application (EPA Form 6100-1d) (Corporations), the EPA DBE Certification Application (EPA Form 6100-1e) (Alaska Native Corporations), the EPA DBE Certification Application (EPA Form 6100-1f) (Tribally Owned Businesses), the EPA DBE Certification Application (EPA Form 6100-1g) (Private and Voluntary Organizations), the EPA DBE Certification Application (EPA Form 6100-1h) (Concerns owned by Native Hawaiian Organizations), and the EPA DBE Certification Application (EPA Form 6100-1i) (Concerns Owned by Community Development Corporations), as applicable, would be required to be completed by an entity seeking to be counted as a minority business enterprise

(MBE)or women's business enterprise

(WBE)under EPA's DBE Program, which cannot get certified as an MBE or WBE by the SBA or DOT under their respective programs or by an Indian Tribal Government or independent private organization consistent with EPA's 8% or 10% statute as applicable. Responses to the collection of information will be mandatory. EPA's legal authorities for the DBE Program are Public Law 102-389, a 1993 appropriations act (42 U.S.C. 4370d) (EPA's 8% statute), and Public Law 101-549, Title X of the Clean Air Act Amendments of 1990 (42 U.S.C. 7601 note) (EPA's 10% statute). Other legal authorities and Executive Orders include Public Law 99-499, the Superfund Amendments and Reauthorization Act of 1986; Public Law 100-590, the Small Business Administration Reauthorization and Amendment Act of 1988; Executive Order 12138, “Creating a National Women's Business Enterprise Policy and Prescribing Arrangements for Developing, Coordinating and Implementing a National Program for Women's Business Enterprise,” issued May 18, 1979; Executive Order 11625, “Prescribing Additional Arrangements for Developing and Coordinating a National Program for Minority Business Enterprise,” issued October 13, 1971; and Executive Order 12432, “Minority Business Enterprise Development,” issued July 14, 1983. EPA may make available to the public any information concerning EPA's DBE Program where the release of which is not prohibited by Federal law or regulation, including EPA's Confidential Business Information regulations at 40 CFR part 2, subpart B. The total labor burden and costs to MBEs and WBEs for certification under State, Tribal and Insular Area funding programs is estimated to total $8,750,300, with 168,275 burden hours and 6,731 MBE and WBE entities affected for the three-year period of the ICR. The estimated annual burden per response is 25 hours; the number of respondents is estimated at 2,244 at an average annual labor burden and cost per MBE and WBE of $1300. The average annual burden and costs are estimated by spreading the first year cost over the three-year period of the ICR, yielding a total annual average burden of 56,092 hours and $2,916,767 in costs. The total labor burden and costs to all EPA grant and loan recipients that would have to perform an availability analysis to meet the requirements of the proposed rule and other paperwork requirements are estimated to be $16,509,500 with 825,475 burden hours and 3,115 entities affected for the three-year period of the ICR. The estimated annual burden hours for all responses is 275,158, and the annual number of respondents is estimated at 1,038. The annual cost for all respondents would be $5,503,167. The cost per respondent is estimated at $5,250 (each respondent is estimated to perform an availability analysis once every three years) and is estimated to take 265 hours at $20/hour. EPA assumed there were no additional start-up costs or capital expenditures. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9. In addition, EPA is amending the table in 40 CFR part 9 of currently approved OMB control numbers for various regulations to list the regulatory citations for the information requirements contained in this final rule. C. Regulatory Flexibility Act This rule is not subject to the Regulatory Flexibility Act (RFA), which generally requires an agency to prepare a regulatory flexibility analysis for any rule that will have a significant economic impact on a substantial number of small entities. The RFA applies only to rules subject to notice-and-comment rulemaking requirements under the Administrative Procedure Act

(APA)or any other statute. As a grants-related rule, this rule is not subject to the notice and comment requirements of the APA, 5 U.S.C. 553(a)(1). Nor is there any other statute which requires EPA to undergo notice and comment for this rulemaking. It is important to note that EPA's DBE Program is aimed at improving contracting opportunities for small businesses owned and controlled by socially and economically disadvantaged individuals, among others (e.g., Historically Black Colleges and Universities, etc.). Accordingly, EPA believes that this rule will impact a substantial number of small entities. D. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. Under section 202 of the UMRA, EPA generally must prepare a written statement, including a cost-benefit analysis, for proposed and final rules with “Federal mandates” that may result in expenditures by State, local, and tribal governments, in the aggregate, or to the private sector of $100 million or more in any one year. Before promulgating an EPA rule for which a written statement is needed, section 205 of the UMRA generally requires EPA to identify and consider a reasonable number of regulatory alternatives and adopts the least costly, most cost-effective or least burdensome alternative that achieves the objectives of the rule. The provisions of section 205 do not apply when they are inconsistent with applicable law. Moreover, section 205 allows EPA to adopt an alternative other than the least costly, most cost-effective or least burdensome alternative if the Administrator publishes with the final rule an explanation why that alternative was not adopted. Before EPA establishes any regulatory requirements that may significantly or uniquely affect small governments, including tribal governments, it must have developed under section 203 of the UMRA a small government agency plan. The plan must provide for notifying potentially affected small governments, enabling officials of affected small governments to have meaningful and timely input in the development of EPA regulatory proposals with significant Federal intergovernmental mandates, and informing, educating and advising small governments on compliance with the regulatory requirements. This rule contains no Federal Mandates (under the regulatory provisions of Title II of the UMRA) for State, local, or tribal governments or the private sector. The UMRA excluded from the definition of “Federal intergovernmental mandate” duties that arise from conditions of federal assistance. Thus, today's rule is not subject to the requirements of section 202 and 205 of the UMRA. Pursuant to section 203 of the UMRA, EPA has also determined that this rule contains no regulatory requirements that might significantly or uniquely affect small governments. With the exemptions at the $250,000 level or less from compliance with the fair share objective requirements, EPA believes that there would be minimal impacts on small entities, including small government jurisdictions. Additionally, under this rule, small entity recipients will be able to use appropriate State Agency-negotiated MBE/WBE objectives if such recipients solicit bids/offers from substantially the same relevant geographic market as that State Agency. Therefore, this rule does not meet the threshold test for application of section 203 of UMRA. E. Executive Order 13132: Federalism Executive Order 13132, entitled “Federalism” (64 FR 43255, August 10, 1999), requires EPA to develop an accountable process to ensure “meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications.” “Policies that have federalism implications” is defined in the Executive Order to include regulations that have “substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.” This rule does not have “federalism implications,” as defined in the Executive Order. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. Because this rule conditions the use of federal assistance, it will not impose substantial direct compliance costs on State and local governments. Thus, the requirements of section 6 of the Executive Order do not apply to this rule. In the spirit of Executive Order 13132 and consistent with EPA policy to promote communications between EPA and State and local governments, EPA specifically solicited comment on the proposed rule from State and local officials. Stakeholders, including representatives from State government agencies, State government organizations and local governments, were given an opportunity to comment on the proposed rule which was published in the **Federal Register** on July 24, 2003, during the 180-day comment period. Public hearings were also held in several states across the country to discuss the proposed rule and to encourage comment. F. Executive Order 13175 Consultation and Coordination With Indian Tribal Governments Executive Order 13175, entitled “Consultation and Coordination with Indian Tribal Governments” (65 FR 67249, November 9, 2000), requires EPA to develop an accountable process to ensure “meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications.” EPA has concluded that this final rule will have tribal implications. However, it will neither impose substantial direct compliance costs nor preempt tribal law. Those implications are as follows: Tribes receiving an EPA financial assistance agreement of more than $250,000 for any single assistance agreement, or of more than one financial assistance agreement with a combined total of more than $250,000 in any one fiscal year (excluding Performance Partnership Grant eligible grants to tribes and intertribal consortia under 40 CFR part 35, subpart B) will have to negotiate fair share objectives with EPA unless they choose to adopt MBE and WBE objectives of another EPA recipient consistent with the final rule. Those tribes required to negotiate fair share objectives with EPA will have a phase-in period of up to three years in which to do so; their fair share objectives will remain in effect for three fiscal years after they have been approved by EPA, unless there are significant changes to the data supporting the fair share objectives. Some tribally owned businesses (businesses that a Federally recognized tribal government owns or in which it has a majority share) will not be eligible to be counted towards meeting the MBE/WBE fair share objectives if they do not meet the applicable SBA 8(a) criteria, e.g., see 13 CFR 124.109(b). Of course, tribes may continue to do business with tribally owned or other companies which do not meet the applicable SBA 8(a) criteria, they simply would not count such procurements toward meeting MBE/WBE objectives. In addition, the rule will have the following impacts on tribes/tribally owned businesses: First, a business owned by a federally recognized tribal government would have to file an annual affidavit with EPA certifying no change in its MBE status, pursuant to § 33.210 of this rule. Second, a business owned by a Federally recognized tribal government will have to be recertified every three years as meeting SBA's applicable 8(a) criteria to be eligible to be counted in the future towards meeting the MBE/WBE fair share objectives, pursuant to § 33.208. Third, a business owned by a federally recognized tribal government, if it is not already certified in accordance with SBA's applicable 8(a) criteria, may have to incur costs to be certified if there is no tribal certifier available and the other certifying entity charges for its services. Fourth, a tribe as a recipient of EPA financial assistance will have to be notified in writing before any termination of a DBE subcontractor for convenience is made by its prime contractor, pursuant to § 33.303(a). Fifth, consistent with other Federal and tribal laws, a tribe will have to require its prime contractor, after the tribe has unsuccessfully sought to apply Indian preference consistent with the Indian Self-Determination and Education Assistance Act, to employ the good faith efforts described in § 33.301 if a DBE subcontractor fails to complete work under a subcontract for any reason and the prime contractor solicits a replacement subcontractor, pursuant to § 33.303(b). Sixth, consistent with other Federal and tribal Laws, a tribe will have to require its prime contractor, after it has unsuccessfully sought to apply Indian preference consistent with the Indian Self-Determination and Education Assistance Act, to employ the good faith efforts described in § 33.301 even if it has achieved its fair share objectives under subpart D of the rule, pursuant to § 33.303(c). Seventh, a tribe will have to require its prime contractors to provide EPA Form 6100-2—DBE Program Subcontractor Participation Form, EPA Form 6100-3—DBE Program Subcontractor Performance Form and EPA Form 6100-4—DBE Program Subcontractor Utilization Form to all of its DBE subcontractors, pursuant to sections 33.303(e),

(f)and (g), respectively. Eighth, a tribal recipient that conducts procurements will have to create and maintain a bidders list in accordance with § 33.501(b). The purpose of this list is to provide recipients as accurate a database as possible about the universe of MBE/WBE and non-MBE/WBE prime and subcontractors who seek to work on procurements under EPA financial assistance agreements. The following information must be obtained from all such prime and subcontractors:

(1)Entity's name with point of contact;

(2)entity's mailing address, telephone number, and e-mail address;

(3)the procurement on which the entity bid or quoted, and when; and

(4)entity's status as an MBE/WBE or non-MBE/WBE. EPA consulted with tribal officials and/or representatives of tribal governments early in the process of developing this regulation to permit them to have meaningful and timely input into its development. This rule has been under development for the past several years. The meaningful and timely input of Tribal officials and/or representatives into the development of this rule is as follows: On February 2-4, 1999, EPA invited tribal recipients of EPA grants and cooperative agreements to an EPA/State/Tribal Annual Conference in Albuquerque, New Mexico. During this conference, EPA representatives discussed a number of issues relating to the rule under development with the general audience. In addition, EPA representatives met separately with tribal officials and/or representatives to discuss issues of concern to tribes. EPA posted a staff draft of the proposed rule, dated June 19, 2000, on EPA's Internet Web site to solicit public comment. On June 27-30, 2000, the Agency held its EPA/State/Tribal Annual Conference in Albuquerque, New Mexico. Again, EPA invited tribal recipients of EPA financial assistance agreements to attend. During the June, 2000 conference, agency representatives discussed in detail the June 19, 2000 staff draft of the rule, which had been posted on EPA's Web site. EPA solicited comments on the staff draft of the rule from conference participants. Tribal officials and/or representatives attended that conference as well. As of June 30, 2001, EPA received a total of 17 written comments on the staff draft from Indian tribes. During the development of this rule EPA representatives made a number of oral presentations to the Tribal Operations Committee

(TOC)on the rule's progress and solicited input. The TOC is comprised of 19 national tribal representatives from the nine EPA Regions that have federally recognized tribes and EPA Senior Management; its role is to provide input into EPA decision making affecting Indian Country. On November 29, 2000, EPA representatives met with the TOC at the EPA Tribal Caucus Regional Joint meeting in Miami, Florida, to discuss the staff draft rule and to obtain further tribal input into the rulemaking process. Starting in November, 2000, EPA invited tribal recipients of EPA grants and cooperative agreements to participate in outreach sessions held in cities around the country in order to discuss the staff draft rule. EPA further solicited tribal input into the rulemaking at meetings with tribal officials/representatives at the Department of the Interior 2001 Conference on the Environment hosted by the Bureau of Indian Affairs on March 13-15, 2001, in Albuquerque, New Mexico and at the Reservation Economic Summit and American Indian Business Trade Fair (RES 2001) in Anaheim, California, on March 20, 2001. EPA further solicited tribal input in another meeting with the TOC on April 24, 2001, in Miami, Florida. As part of its ongoing tribal coordination on this rule, EPA held meetings with tribal officials to discuss the staff draft rule in Boston, Massachusetts on April 11, 2001 and in Seattle, Washington on May 23, 2001. EPA held further coordination meetings with tribal officials to discuss a draft of this Rule in Ocean Shores, Washington during the week of January 28, 2002. On July 24, 2003, the proposed rule was published in the **Federal Register** , with a 180-day comment period. After the rule was published in the **Federal Register** , EPA held 10 tribal meetings across the country to solicit comments and suggestions on the final rule. EPA has considered tribal concerns and written comments in the final rule. A summary of the nature of tribal concerns and EPA's response follows: 1. Applicability of the Rule to Tribes Awards of Grants and Cooperative Agreements to tribes are currently governed by 40 CFR part 31,“Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.” These are government wide requirements that have been in effect since 1988. Among other entities subject to the regulations are governments. The definition of “Government” in 40 CFR 31.3 includes * * * a federally recognized Indian tribal government.” Many requirements contained in this rule are not new but rather are the same requirements contained in 40 CFR part 31, with which many tribes already have been complying. For example, the reporting and recordkeeping requirements are already applicable to Indian tribes. In addition, neither EPA's statutory 10% MBE/WBE procurement objective requirements for research relating to the requirements of the Clean Air Act, nor EPA's statutory 8% MBE/WBE procurement objective requirements for all other programs, exempt tribes. Therefore, tribes are not exempt from this rule, because it promotes the utilization of all disadvantaged entities in procurement under EPA financial assistance agreements, including tribally owned businesses and businesses owned by a member(s) of a tribe. 2. Trigger for Fair Share Negotiations The issue of increasing the dollar amount of the trigger requiring compliance with the fair share objective requirements and the corresponding availability analysis was of special concern to tribes awarded General Assistance Program grants. Comments also expressed the view that availability analysis preparation requirements should apply only to tribes spending 90% or more of their grants on outside procurement. Other tribes expressed the view that preparing availability analyses is too costly for them, especially for smaller tribes. In response to concerns raised by tribes, the trigger requiring compliance with the fair share objective requirements has been increased to $250,000 from the $100,000 threshold contained in an earlier draft of the rule. Also because of the nature of eligible program grants which can be included in Performance Partnership Grants

(PPGs)to tribes under 40 CFR part 35, subpart B, and the unique nature of eligible recipients, the Agency is exempting PPG eligible program grants to tribes under 40 CFR part 35, subpart B from the fair share negotiation requirements. Accordingly, only tribes receiving an EPA financial assistance agreement of more than $250,000 for any single assistance agreement, or of more than one financial assistance agreement with a combined total of more than $250,000 in any one fiscal year (excluding PPG eligible program grants under 40 CFR part 35, subpart B), will have to comply with the fair share objective requirements. The Agency believes that this change effectively addresses the concerns by setting a uniform standard applicable to all recipients, including tribes, rather than, for example, setting a standard based on amounts spent by tribes on outside procurement, which could pose implementation difficulties. EPA believes that most tribes will not have to comply with the fair share objective requirements under the final rule because they will fall under the $250,000 exemption or the exemption for PPG eligible program grants under 40 CFR part 35, subpart B. Finally, EPA believes that a number of tribes which otherwise would have to negotiate fair share objectives may elect instead to apply the objectives of another recipient in accordance with the requirements of the rule. The rule will also provide tribes with a three-year phase-in period to comply with the fair share negotiation requirement. 3. Reporting and Recordkeeping Requirements Some tribes expressed concerns that keeping records of and reporting purchases for EPA funded grants would impose a heavy burden on tribal governments. Instead, they suggested basing reporting on the amount of money the tribe received rather than on the amount of money it spent on outside supplies and services. EPA considered these concerns and concluded that 40 CFR part 31 already requires tribes to comply with part 31's recordkeeping and reporting requirements, which included MBE/WBE recordkeeping and reporting. The Agency believes that basing requirements on amounts received rather than on amounts spent would be an inaccurate measurement of MBE/WBE procurement utilization. EPA currently requires financial assistance recipients to report MBE/WBE accomplishments based on dollars spent on MBE/WBE procurements. Therefore, EPA is not adopting the suggested change. However, because of comments received requesting a reduction in the burden created by quarterly reporting, EPA has reduced the reporting requirement to semi-annually for recipients who currently report on a quarterly basis. Recipients who currently report annually will continue to do so. 4. Compliance With the Good Faith Efforts Requirements One comment objected to having to advertise in newspapers; a comment was also made that EPA should investigate alternative mechanisms that encourage a tribe to seek out MBEs/WBEs during the procurement process without incurring an unreasonable financial burden. Section 7(b) of the Indian Self-Determination and Education Assistance Act requires tribal governments to solicit tribally-owned businesses and/or businesses owned by a member(s) of a tribe, before undertaking the six good faith efforts. Tribes are currently subject to 40 CFR part 31, which requires them to make good faith efforts to ensure that DBEs are used whenever possible. EPA is changing this requirement. EPA does not believe that the good faith effort requirements are unduly burdensome. 5. Phase-In Period One comment expressed a concern about the timing of the phase-in period and the maximum amount of time needed for the requirement to be implemented. EPA believes that the three-year phase-in period, which begins after the final rule's effective date, allows tribes sufficient time to prepare for and comply with the requirements of the rule. As required by section 7(a), EPA's Tribal Consultation Official has certified that the requirements of the Executive Order have been met in a meaningful and timely manner. A copy of the certification is included in the docket for this rule. G. Executive Order 13045: (Protection of Children From Environmental Health Risks and Safety Risks) *Executive Order 13045:* “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997) applies to any rule that:

(1)Is determined to be “economically significant” as defined under Executive Order 12866, and

(2)concerns any environmental health or safety risk that EPA has reason to believe may have a disproportionate effect on children. If the regulatory action meets both criteria, EPA must evaluate the environmental health or safety effects of the planned rule on children and explain why the planned regulation is preferable to other potentially effective and reasonably feasible alternatives considered by the Agency. EPA interprets Executive Order 13045 as applying only to those regulatory actions that are based on health or safety risks, such that the analysis required under section 5-501 of the Order has the potential to influence the regulation. This rule is not subject to Executive Order 13045 because it does not establish an environmental standard intended to mitigate health or safety risks. H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use This rule is not a “significant energy action” as defined in Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355 (May 22, 2001)) because it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. EPA has concluded that this rule is not likely to have any adverse energy effects. I. National Technology Transfer and Advancement Act As noted in the proposed rule, section 12(d) of the National Technology Transfer and Advancement Act of 1995 (“NTTAA”), Public Law 104-113, 12(d) (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards ( *e.g.* , materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted by voluntary consensus standards bodies. The NTTAA directs EPA to provide Congress, through OMB, explanations when the Agency decides not to use available and applicable voluntary consensus standards. This rule does not involve technical standards. Therefore, EPA is not considering the use of any voluntary consensus standards. J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations Executive Order

(EO)12898 (59 FR 7629 (Feb. 16, 1994)) establishes federal executive policy on environmental justice. Its main provision directs federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States. EPA has determined that this final rule will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations because it does not affect the level of protection provided to human health or the environment. K. Congressional Review Act The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A Major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). This rule will be effective May 27, 2008. List of Subjects 40 CFR Part 30 Environmental protection, Administrative practice and procedure, Grant programs—environmental protection, Reporting and recordkeeping requirements. 40 CFR Part 31 Accounting, Administrative practice and procedure, Grant programs, Indians, Intergovernmental relations, Reporting and recordkeeping requirements. 40 CFR Part 33 Grant programs—environmental protection. 40 CFR Part 35 Grant programs—environmental protection, Grant programs—Indians, Hazardous waste, Indians, Intergovernmental relations, Reporting and recordkeeping requirements. 40 CFR Part 40 Research and Demonstration Grants—Projects involving construction. Dated: March 18, 2008. Stephen L. Johnson, Administrator. For the reasons set out in the preamble, title 40, chapter I of the Code of Federal Regulations is amended as follows: PART 30—[AMENDED] 1. The authority citation for part 30 continues to read as follows: Authority: 7 U.S.C. 135 *et seq.* ; 15 U.S.C. 2601 *et seq.* ; 33 U.S.C. 1251 *et seq.* ; 42 U.S.C. 241, 242(b), 243, 246, 300f, 300j-1, 300j-2, 300j-3; 1857 *et seq.* ; 6901 *et seq.* , 7401 *et seq.* ; OMB circular A-110 (64 FR 54926, October 8, 1999). § 30.44 [Amended] 2. Section 30.44 is amended by removing and reserving paragraph (b). PART 31—[AMENDED] 3. The authority citation for part 31 continues to read as follows: Authority: 7 U.S.C. 136 *et seq.* ; 15 U.S.C. 2601 *et seq.* ; 20 U.S.C. 4011 *et seq.* ; 33 U.S.C. 1251 *et seq.* and 1401 *et seq.* ; 42 U.S.C. 300f *et seq.* , 6901 *et seq.* , 7401 *et seq.* , and 9601 *et seq.* § 31.36 [Amended] 4. Section 31.36 is amended by removing and reserving paragraph (e). PART 33—[ADDED] 5. Part 33 is added as follows: PART 33—PARTICIPATION BY DISADVANTAGED BUSINESS ENTERPRISES IN UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PROGRAMS Subpart A—General Provisions Sec. 33.101 What are the objectives of this part? 33.102 When do the requirements of this part apply? 33.103 What do the terms in this part mean? 33.104 May a recipient apply for a waiver from the requirements of this part? 33.105 What are the compliance and enforcement provisions of this part? 33.106 What assurances must EPA financial assistance recipients obtain from their contractors? 33.107 What are the rules governing availability of records, cooperation, and intimidation and retaliation? Subpart B—Certification 33.201 What does this subpart require? 33.202 How does an entity qualify as an MBE or WBE under EPA's 8% statute? 33.203 How does an entity qualify as an MBE or WBE under EPA's 10% statute? 33.204 Where does an entity become certified under EPA's 8% and 10% statutes? 33.205 How does an entity become certified by EPA? 33.206 Is there a list of certified MBEs and WBEs? 33.207 Can an entity reapply to EPA for MBE or WBE certification? 33.208 How long does an MBE or WBE certification from EPA last? 33.209 Can EPA re-evaluate the MBE or WBE status of an entity after EPA certifies it to be an MBE or WBE? 33.210 Does an entity certified as an MBE or WBE by EPA need to keep EPA informed of any changes which may affect the entity's certification? 33.211 What is the process for appealing or challenging an EPA MBE or WBE certification determination? 33.212 What conduct is prohibited by this subpart? Subpart C—Good Faith Efforts 33.301 What does this subpart require? 33.302 Are there any additional contract administration requirements? 33.303 Are there special rules for loans under EPA financial assistance agreements? 33.304 Must a Native American (either as an individual, organization, Tribe or Tribal Government) recipient or prime contractor follow the six good faith efforts? Subpart D—Fair Share Objectives 33.401 What does this subpart require? 33.402 Are there special rules for loans under EPA financial assistance agreements? 33.403 What is a fair share objective? 33.404 When must a recipient negotiate fair share objectives with EPA? 33.405 How does a recipient determine its fair share objectives? 33.406 May a recipient designate a lead agency for fair share objective negotiation purposes? 33.407 How long do MBE and WBE fair share objectives remain in effect? 33.408 May a recipient use race and/or gender conscious measures as part of this program? 33.409 May a recipient use quotas as part of this program? 33.410 Can a recipient be penalized for failing to meet its fair share objectives? 33.411 Who may be exempted from this subpart? 33.412 Must an Insular Area or Indian Tribal Government recipient negotiate fair share objectives? Subpart E—Recordkeeping and Reporting 33.501 What are the recordkeeping requirements of this part? 33.502 What are the reporting requirements of this part? 33.503 How does a recipient calculate MBE and WBE participation for reporting purposes? Appendix A to Part 33—Terms and Conditions Authority: 15 U.S.C. 637 note; 42 U.S.C. 4370d, 7601 note, 9605(f); E.O. 11625, 36 FR 19967, 3 CFR, 1971 Comp., p. 213; E.O. 12138, 49 FR 29637, 3 CFR, 1979 Comp., p. 393; E.O. 12432, 48 FR 32551, 3 CFR, 1983 Comp., p. 198. Subpart A—General Provisions § 33.101 What are the objectives of this part? The objectives of this part are:

(a)To ensure nondiscrimination in the award of contracts under EPA financial assistance agreements. To that end, implementation of this rule with respect to grantees, sub-grantees, loan recipients, prime contractors, or subcontractors in particular States or locales—notably those where there is no apparent history of relevant discrimination—must comply with equal protection standards at that level, apart from the EPA DBE Rule's constitutional compliance as a national matter;

(b)To harmonize EPA's DBE Program objectives with the U.S. Supreme Court's decision in *Adarand Constructors, Inc.* v. *Pena,* 515 U.S. 200 (1995);

(c)To help remove barriers to the participation of DBEs in the award of contracts under EPA financial assistance agreements; and

(d)To provide appropriate flexibility to recipients of EPA financial assistance in establishing and providing contracting opportunities for DBEs. § 33.102 When do the requirements of this part apply? The requirements of this part apply to procurement under EPA financial assistance agreements performed entirely within the United States, whether by a recipient or its prime contractor, for construction, equipment, services and supplies. § 33.103 What do the terms in this part mean? Terms not defined below shall have the meaning given to them in 40 CFR part 30, part 31 and part 35 as applicable. As used in this part: *Availability analysis* means documentation of the availability of MBEs and WBEs in the relevant geographic market in relation to the total number of firms available in that area. *Award official* means the EPA Regional or Headquarters official delegated the authority to execute financial assistance agreements on behalf of EPA. *Broker* means a firm that does not itself perform, manage or supervise the work of its contract or subcontract in a manner consistent with the normal business practices for contractors or subcontractors in its line of business. *Business, business concern or business enterprise* means an entity organized for profit with a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials or labor. *Construction* means erection, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other improvements to real property, and activities in response to a release or a threat of a release of a hazardous substance into the environment, or activities to prevent the introduction of a hazardous substance into a water supply. *Disabled American* means, with respect to an individual, permanent or temporary physical or mental impairment that substantially limits one or more of the major life activities of such an individual; a record of such an impairment; or being regarded as having such an impairment. *Disadvantaged business enterprise (DBE)* means an entity owned or controlled by a socially and economically disadvantaged individual as described by Public Law 102-389 (42 U.S.C. 4370d) or an entity owned and controlled by a socially and economically disadvantaged individual as described by Title X of the Clean Air Act Amendments of 1990 (42 U.S.C. 7601 note); a Small Business Enterprise (SBE); a Small Business in a Rural Area (SBRA); or a Labor Surplus Area Firm (LSAF), a Historically Underutilized Business

(HUB)Zone Small Business Concern, or a concern under a successor program. *Disparity study* means a comparison within the preceding ten years of the available MBEs and WBEs in a relevant geographic market with their actual usage by entities procuring in the categories of construction, equipment, services and supplies. *Equipment* means items procured under a financial assistance agreement as defined by applicable regulations (for example 40 CFR 30.2 and 40 CFR 31.3) for the particular type of financial assistance received. *Fair share objective* means an objective expressing the percentage of MBE or WBE utilization expected absent the effects of discrimination. *Financial assistance agreement* means grants or cooperative agreements awarded by EPA. The term includes grants or cooperative agreements used to capitalize revolving loan funds, including, but not limited to, the Clean Water State Revolving Loan Fund (CWSRF) Program under Title VI of the Clean Water Act, as amended, 33 U.S.C. 1381 *et seq* ., the Drinking Water State Revolving Fund (DWSRF) Program under section 1452 of the Safe Drinking Water Act, 42 U.S.C. 300j-12, and the Brownfields Cleanup Revolving Loan Fund (BCRLF) Program under section 104 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 9604. *Good faith efforts* means the race and/or gender neutral measures described in subpart C of this part. *Historically black college or university (HBCU)* means an institution determined by the Secretary of Education to meet the requirements of 34 CFR part 608. *HUBZone* means a historically underutilized business zone, which is an area located within one or more qualified census tracts, qualified metropolitan counties, or lands within the external boundaries of an Indian reservation. *HUBZone small business concern* means a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration. *Identified loan* means a loan project or set-aside activity receiving assistance from a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund, which:

(1)In the case of the CWSRF Program, is a project funded from amounts equal to the capitalization grant;

(2)In the case of the DWSRF Program, is a loan project or set-aside activity funded from amounts up to the amount of the capitalization grant; or

(3)In the case of the BCRLF Program, is a project that has been funded with EPA financial assistance. *Insular area* means the Commonwealth of Puerto Rico or any territory or possession of the United States. *Joint venture* means an association of a DBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which the parties combine their property, capital, efforts, skills and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks, and profits of the joint venture are commensurate with its ownership interest. *Labor surplus area firm (LSAF)* means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas (as identified by the Department of Labor in accordance with 20 CFR part 654). Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price. *Minority business enterprise (MBE)* means a Disadvantaged Business Enterprise

(DBE)other than a Small Business Enterprise (SBE), a Labor Surplus Area Firm (LSAF), a Small Business in Rural Areas (SBRA), or a Women's Business Enterprise (WBE). *Minority institution* means an accredited college or university whose enrollment of a single designated group or a combination of designated groups (as defined by the Small Business Administration regulations at 13 CFR part 124) exceeds 50% of the total enrollment. *Native American* means any individual who is an American Indian, Eskimo, Aleut, or Native Hawaiian. *Recipient* means an entity that receives an EPA financial assistance agreement or is a sub-recipient of such agreement, including loan recipients under the Clean Water State Revolving Fund Program, Drinking Water State Revolving Fund Program, and the Brownfields Cleanup Revolving Loan Fund Program. *Services* means a contractor's labor, time or efforts provided in a manner consistent with normal business practices which do not involve the delivery of a specific end item, other than documents ( *e.g.* , reports, design drawings, specifications). *Small business, small business concern or small business enterprise (SBE)* means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding, and qualified as a small business under the criteria and size standards in 13 CFR part 121. *Small business in a rural area (SBRA)* means a small business operating in an area identified as a rural county with a code 6-9 in the Rural-Urban continuum Classification Code developed by the United States Department of Agriculture in 1980. *Supplies* means items procured under a financial assistance agreement as defined by applicable regulations for the particular type of financial assistance received. *United States* means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico and any other territories and possessions of the United States. *Women's business enterprise (WBE)* means a business concern which is at least 51% owned or controlled by women for purposes of EPA's 8% statute or a business concern which is at least 51% owned and controlled by women for purposes for EPA's 10% statute. Determination of ownership by a married woman in a community property jurisdiction will not be affected by her husband's 50 percent interest in her share. Similarly, a business concern which is more than 50 percent owned by a married man will not become a qualified WBE by virtue of his wife's 50 percent interest in his share. § 33.104 May recipients apply for a waiver from the requirements of this part?

(a)A recipient may apply for a waiver from any of the requirements of this part that are not specifically based on a statute or Executive Order, by submitting a written request to the Director of the Office of Small and Disadvantaged Business Utilization.

(b)The request must document special or exceptional circumstances that make compliance with the requirement impractical, including a specific proposal addressing how the recipient intends to achieve the objectives of this part as described in § 33.101. The request must show that:

(1)There is a reasonable basis to conclude that the recipient could achieve a level of MBE and WBE participation consistent with the objectives of this part using different or innovative means other than those that are provided in subparts C or D of this part;

(2)Conditions in the recipient's jurisdiction are appropriate for implementing the request; and

(3)The request is consistent with applicable law.

(c)The OSDBU Director has the authority to approve a recipient's request. If the OSDBU Director grants a recipient's request, the recipient may administer its program as provided in the request, subject to the following conditions:

(1)The recipient's level of MBE and WBE participation continues to be consistent with the objectives of this part;

(2)There is a reasonable limitation on the duration of the recipient's modified program; and

(3)Any other conditions the OSDBU Director makes on the grant of the waiver.

(d)The OSDBU Director may end a program waiver at any time upon notice to the recipient and require a recipient to comply with the provisions of this part. The OSDBU Director may also extend the waiver if he or she determines that all requirements of paragraphs

(b)and

(c)of this section continue to be met. Any such extension shall be for no longer than the period originally set for the duration of the program waiver. § 33.105 What are the compliance and enforcement provisions of this part? If a recipient fails to comply with any of the requirements of this part, EPA may take remedial action under 40 CFR parts 30, 31 or 35, as appropriate, or any other action authorized by law, including, but not limited to, enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 *et seq.* ). Examples of the remedial actions under 40 CFR parts 30, 31, and 35 include, but are not limited to:

(a)Temporarily withholding cash payments pending correction of the deficiency by the recipient or more severe enforcement action by EPA;

(b)Disallowing all or part of the cost of the activity or action not in compliance;

(c)Wholly or partly suspending or terminating the current award; or

(d)Withholding further awards for the project or program. § 33.106 What assurances must EPA financial assistance recipients obtain from their contractors? The recipient must ensure that each procurement contract it awards contains the term and condition specified in Appendix A to this part concerning compliance with the requirements of this part. The recipient must also ensure that this term and condition is included in each procurement contract awarded by an entity receiving an identified loan under a financial assistance agreement to capitalize a revolving loan fund. § 33.107 What are the rules governing availability of records, cooperation, and intimidation and retaliation?

(a)*Availability of records.*

(1)In responding to requests for information concerning any aspect of EPA's DBE Program, EPA complies with the provisions of the Federal Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a). EPA may make available to the public any information concerning EPA's DBE Program release of which is not prohibited by Federal law or regulation, including EPA's Confidential Business Information regulations at 40 CFR part 2, subpart B.

(2)EPA recipients shall safeguard from disclosure to unauthorized persons information that may reasonably be considered as confidential business information, consistent with Federal, state, and local law.

(b)*Cooperation.* All participants in EPA's DBE Program are required to cooperate fully and promptly with EPA, EPA Private Certifiers and EPA recipients in reviews, investigations, and other requests for information. Failure to do so shall be a ground for appropriate action against the party involved in accordance with § 33.105.

(c)*Intimidation and retaliation.* A recipient, contractor, or any other participant in EPA's DBE Program must not intimidate, threaten, coerce, or discriminate against any individual or firm for the purpose of interfering with any right or privilege secured by this part. Violation of this prohibition shall be a ground for appropriate action against the party involved in accordance with § 33.105. Subpart B—Certification § 33.201 What does this subpart require?

(a)In order to qualify and participate as an MBE or WBE prime or subcontractor for EPA recipients under EPA's DBE Program, an entity must be properly certified as required by this subpart.

(b)EPA's DBE Program is primarily based on two statutes. Public Law 102-389, 42 U.S.C. 4370d, provides for an 8% objective for awarding contracts under EPA financial assistance agreements to business concerns or other organizations owned or controlled by socially and economically disadvantaged individuals, including HBCUs and women (“EPA's 8% statute”). Title X of the Clean Air Act Amendments of 1990, 42 U.S.C. 7601 note, provides for a 10% objective for awarding contracts under EPA financial assistance agreements for research relating to such amendments to business concerns or other organizations owned and controlled by socially and economically disadvantaged individuals (“EPA's 10% statute”). § 33.202 How does an entity qualify as an MBE or WBE under EPA's 8% statute? To qualify as an MBE or WBE under EPA's 8% statute, an entity must establish that it is owned or controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States. An entity need not demonstrate potential for success.

(a)*Ownership or control.* “Ownership” and “control” shall have the same meanings as set forth in 13 CFR 124.105 and 13 CFR 124.106, respectively. (See also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations).

(b)*Socially disadvantaged individual.* A socially disadvantaged individual is a person who has been subjected to racial or ethnic prejudice or cultural bias because of his or her identity as a member of a group without regard to his or her individual qualities and as further defined by the implementing regulations of section 8(a)(5) of the Small Business Act (15 U.S.C. 637(a)(5); 13 CFR 124.103; see also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations).

(c)*Economically disadvantaged individual.* An economically disadvantaged individual is a socially disadvantaged individual whose ability to compete in the free enterprise system is impaired due to diminished capital and credit opportunities, as compared to others in the same business area who are not socially disadvantaged and as further defined by section 8(a)(6) of the Small Business Act (15 U.S.C. 637(a)(6)) and its implementing regulations (13 CFR 124.104). (See also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations). Under EPA's DBE Program, an individual claiming disadvantaged status must have an initial and continued personal net worth of less than $750,000.

(d)*HBCU.* An HBCU automatically qualifies as an entity owned or controlled by socially and economically disadvantaged individuals.

(e)*Women.* Women are deemed to be socially and economically disadvantaged individuals. Ownership or control must be demonstrated pursuant to paragraph

(a)of this section, which may be accomplished by certification under § 33.204. § 33.203 How does an entity qualify as an MBE or WBE under EPA's 10% statute? To qualify as an MBE or WBE under EPA's 10% statute, an entity must establish that it is owned and controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States.

(a)*Ownership and control.* An entity must be at least 51% owned by a socially and economically disadvantaged individual, or in the case of a publicly traded company, at least 51% of the stock must be owned by one or more socially and economically disadvantaged individuals, and the management and daily business operations of the business concern must be controlled by such individuals. (See also 13 CFR 124.109 for special rules applicable to Indian tribes and Alaska Native Corporations; 13 CFR 124.110 for special rules applicable to Native Hawaiian Organizations).

(d)*Presumptions.* In accordance with Title X of the Clean Air Act Amendments of 1990, 42 U.S.C. 7601 note, Black Americans, Hispanic Americans, Native Americans, Asian Americans, Women and Disabled Americans are presumed to be socially and economically disadvantaged individuals. In addition, the following institutions are presumed to be entities owned and controlled by socially and economically disadvantaged individuals: HBCUs, Minority Institutions (including Tribal Colleges and Universities and Hispanic-Serving Institutions) and private and voluntary organizations controlled by individuals who are socially and economically disadvantaged.

(e)*Individuals not members of designated groups.* Nothing in this section shall prohibit any member of a racial or ethnic group that is not designated as socially and economically disadvantaged under paragraph

(d)of this section from establishing that they have been impeded in developing a business concern as a result of racial or ethnic discrimination.

(f)*Rebuttal of presumptions.* The presumptions established by paragraph

(d)of this section may be rebutted in accordance with § 33.209 with respect to a particular entity if it is reasonably established that the individual at issue is not experiencing impediments to developing such entity as a result of the individual's identification as a member of a specified group.

(g)*Joint ventures.*

(1)A joint venture may be considered owned and controlled by socially and economically disadvantaged individuals, notwithstanding the size of such joint venture, if a party to the joint venture is an entity that is owned and controlled by a socially and economically disadvantaged individual, and that entity owns 51% of the joint venture.

(2)As a party to a joint venture, a person who is not an economically disadvantaged individual, or an entity that is not owned and controlled by a socially and economically disadvantaged individual, may not be a party to more than two awarded contracts in a fiscal year solely by joint venture with a socially and economically disadvantaged individual or entity. § 33.204 Where does an entity become certified under EPA's 8% and 10% statutes?

(a)In order to participate as an MBE or WBE prime or subcontractor for EPA recipients under EPA's DBE Program, an entity must first attempt to be certified by the following:

(1)The United States Small Business Administration (SBA), under its 8(a) Business Development Program (13 CFR part 124, subpart A) or its Small Disadvantaged Business

(SDB)Program, (13 CFR part 124, subpart B);

(2)The United States Department of Transportation (DOT), under its regulations for Participation by Disadvantaged Business Enterprises in DOT Programs (49 CFR parts 23 and 26); or

(3)an Indian Tribal Government, State Government, local Government or independent private organization in accordance with EPA's 8% or 10% statute as applicable.

(2)Such certifications shall be considered acceptable for establishing MBE or WBE status, as appropriate, under EPA's DBE Program as long as the certification meets EPA's U.S. citizenship requirement under § 33.202 or § 33.203.

(3)An entity may only apply to EPA for MBE or WBE certification under the procedures set forth in § 33.205 if that entity first is unable to obtain MBE or WBE certification under paragraphs

(1)through

(3)of this section.

(b)[Reserved]. § 33.205 How does an entity become certified by EPA?

(a)*Filing an application.* In accordance with § 33.204, an entity may apply to EPA's Office of Small and Disadvantaged Business Utilization (EPA OSDBU) for certification as an MBE or WBE. EPA's Regional Offices will provide further information and required application forms to any entity interested in MBE or WBE certification. The applicant must attest to the accuracy and truthfulness of the information on the application form. This shall be done either in the form of an affidavit sworn to by the applicant before a person who is authorized by state law to administer oaths or in the form of an unsworn declaration executed under penalty of perjury of the laws of the United States. The application must include evidence demonstrating that the entity is owned or controlled by one or more individuals claiming disadvantaged status under EPA's 8% statute or owned and controlled by one or more individuals claiming disadvantaged status under EPA's 10% statute, along with certifications or narratives regarding the disadvantaged status of such individuals. In addition, the application must include documentation of a denial of certification by a Federal agency, State government, local government, Indian Tribal government, or independent private organization, if applicable.

(b)*Application processing.* EPA OSDBU will advise each applicant within 15 days, whenever practicable, after receipt of an application whether the application is complete and suitable for evaluation and, if not, what additional information or action is required. EPA OSDBU shall make its certification decision within 30 days of receipt of a complete and suitable application package, whenever practicable. The burden is on the applicant to demonstrate that those individuals claiming disadvantaged status own or control the entity under EPA's 8% statute or own and control the entity under EPA's 10% statute.

(c)*Ownership and/or control determination.* EPA OSDBU first will determine whether those individuals claiming disadvantaged status own or control the applicant entity under EPA's 8% statute or own and control the applicant entity under EPA's 10% statute. If EPA OSDBU determines that the applicant does not meet the ownership and/or control requirements of this subpart, EPA OSDBU will issue a written decision to the entity rejecting the application and set forth the reasons for disapproval.

(d)*Disadvantaged determination.* Once EPA OSDBU determines whether an applicant meets the ownership and/or control requirements of this subpart, EPA OSDBU will determine whether the applicable disadvantaged status requirements under EPA's 8% or 10% statute have been met. If EPA OSDBU determines that the applicable disadvantaged status requirements have been met, EPA OSDBU shall notify the applicant that it has been certified and place the MBE or WBE on EPA OSDBU's list of qualified MBEs and WBEs. If EPA OSDBU determines that the applicable disadvantaged status requirements have not been met, EPA OSDBU will reject the entity's application for certification. EPA OSDBU will issue a written decision to the entity setting forth EPA OSDBU's reasons for disapproval.

(e)*Evaluation standards.*

(1)An entity's eligibility shall be evaluated on the basis of present circumstances. An entity shall not be denied certification based solely on historical information indicating a lack of ownership and/or control of the firm by socially and economically disadvantaged individuals at some time in the past, if the entity currently meets the ownership and/or control standards of this subpart.

(2)Entities seeking MBE or WBE certification shall cooperate fully with requests for information relevant to the certification process. Failure or refusal to provide such information is a ground for denial of certification.

(3)In making its certification determination, EPA OSDBU may consider whether an entity has exhibited a pattern of conduct indicating its involvement in attempts to evade or subvert the intent or requirements of the DBE Program.

(4)EPA OSDBU shall not consider the issue of whether an entity performs a commercially useful function in making its certification determination. Consideration of whether an entity performs a commercially useful function or is a regular dealer pertains solely to counting toward MBE and WBE objectives as provided in subpart E of this part.

(5)Information gathered as part of the certification process that may reasonably be regarded as proprietary or other confidential business information will be safeguarded from disclosure to unauthorized persons, consistent with applicable Federal, State, and local law.

(6)To assist in making EPA OSDBU's certification determination, EPA OSDBU itself may take the following steps:

(i)Perform an on-site visit to the offices of the entity. Interview the principal officers of the entity and review their resumes and/or work histories. Perform an on-site visit to local job sites if there are such sites on which the entity is working at the time of the certification investigation. Already existing site visit reports may be relied upon in making the certification;

(ii)If the entity is a corporation, analyze the ownership of stock in the entity;

(iii)Analyze the bonding and financial capacity of the entity;

(iv)Determine the work history of the entity, including contracts it has received and work it has completed;

(v)Obtain a statement from the entity of the type of work it prefers to perform for EPA recipients under the DBE Program and its preferred locations for performing the work, if any; and

(vi)Obtain or compile a list of the equipment owned by or available to the entity and the licenses the entity and its key personnel possess to perform the work it seeks to do for EPA recipients under the DBE Program. § 33.206 Is there a list of certified MBEs and WBEs? EPA OSDBU will maintain a list of certified MBEs and WBEs on EPA OSDBU's Home Page on the Internet. Any interested person may also obtain a copy of the list from EPA OSDBU. § 33.207 Can an entity reapply to EPA for MBE or WBE certification? An entity which has been denied MBE or WBE certification may reapply for certification at any time 12 months or more after the date of the most recent determination by EPA OSDBU to decline the application. § 33.208 How long does an MBE or WBE certification from EPA last? Once EPA OSDBU certifies an entity to be an MBE or WBE by placing it on the EPA OSDBU list of certified MBEs and WBEs specified in § 33.206, the entity will generally remain on the list for a period of three years from the date of its certification. To remain on the list after three years, an entity must submit a new application and receive a new certification. § 33.209 Can EPA re-evaluate the MBE or WBE status of an entity after EPA certifies it to be an MBE or WBE?

(a)EPA OSDBU may initiate a certification determination whenever it receives credible information calling into question an entity's eligibility as an MBE or WBE. Upon its completion of a certification determination, EPA OSDBU will issue a written determination regarding the MBE or WBE status of the questioned entity.

(b)If EPA OSDBU finds that the entity does not qualify as an MBE or WBE, EPA OSDBU will decertify the entity as an MBE or WBE, and immediately remove the entity from the EPA OSDBU list of certified MBEs and WBEs.

(c)If EPA OSDBU finds that the entity continues to qualify as an MBE or WBE, the determination remains in effect for three years from the date of the decision under the same conditions as if the entity had been granted MBE or WBE certification under § 33.205. § 33.210 Does an entity certified as an MBE or WBE by EPA need to keep EPA informed of any changes which may affect the entity's certification?

(a)An entity certified as an MBE or WBE by EPA OSDBU must provide EPA OSDBU, every year on the anniversary of the date of its certification, an affidavit sworn to by the entity's owners before a person who is authorized by state law to administer oaths or an unsworn declaration executed under penalty of perjury of the laws of the United States. This affidavit must affirm that there have been no changes in the entity's circumstances affecting its ability to meet disadvantaged status, ownership, and/or control requirements of this subpart or any material changes in the information provided in its application form. Failure to comply may result in the loss of MBE or WBE certification under EPA's DBE Program.

(b)An entity certified as an MBE or WBE by EPA OSDBU must inform EPA OSDBU in writing of any change in circumstance affecting the MBE's or WBE's ability to meet disadvantaged status, ownership, and/or control requirements of this subpart or any material change in the information provided in its application form. The MBE or WBE must attach supporting documentation describing in detail the nature of such change. The notice from the MBE or WBE must take the form of an affidavit sworn to by the applicant before a person who is authorized by State law to administer oaths or of an unsworn declaration executed under penalty of perjury of the laws of the United States. The MBE or WBE must provide the written notification within 30 calendar days of the occurrence of the change. § 33.211 What is the process for appealing or challenging an EPA MBE or WBE certification determination?

(a)An entity which has been denied MBE or WBE certification by EPA OSDBU under § 33.205 or § 33.209 may appeal that denial. A third party may challenge EPA OSDBU's determination to certify an entity as an MBE or WBE under § 33.205 or § 33.209.

(b)Appeals and challenges must be sent to the Director of OSDBU at Environmental Protection Agency, 1200 Pennsylvania Avenue, NW., Mail Code 1230T, Washington, DC 20460.

(c)The appeal or challenge must be sent to the Director of OSDBU (Director) within 90 days of the date of EPA OSDBU's MBE or WBE certification determination. The Director may accept an appeal or challenge filed later than 90 days after the date of EPA OSDBU's MBE or WBE certification determination if the Director determines that there was good cause, beyond the control of the appellant or challenger, for the late filing of the appeal or challenge.

(d)No specific format is required for an appeal or challenge. However, the appeal or challenge must include information and arguments concerning why EPA OSDBU's MBE or WBE certification determination should be reversed. For challenges in which a third party questions EPA OSDBU's determination to certify an entity as an MBE or WBE under § 33.205 or § 33.209, the third party must also send a copy of the challenge to the entity whose MBE or WBE certification is being questioned. In addition, the Director shall request information and arguments from that entity as to why EPA OSDBU's determination to certify the entity as an MBE or WBE should be upheld.

(e)The Director makes his/her appeal or challenge decision based solely on the administrative record and does not conduct a hearing. The Director may supplement the record by adding relevant information made available by any other source, including the EPA Office of Inspector General; Federal, State, or local law enforcement authorities; an EPA recipient; or a private party.

(f)Consistent with Federal law, the Director shall make available, upon the request of the appellant, challenger or the entity affected by the Director's appeal or challenge decision, any supplementary information the Director receives from any source as described in paragraph

(e)of this section.

(g)Pending the Director's appeal or challenge decision, EPA OSDBU's MBE or WBE certification determination remains in effect. The Director does not stay the effect of its MBE or WBE certification determination while he/she is considering an appeal or challenge.

(h)The Director shall reverse EPA OSDBU's MBE or WBE certification determination only if there was a clear and significant error in the processing of the certification or if EPA OSDBU failed to consider a significant material fact contained within the entity's application for MBE or WBE certification.

(i)All decisions under this section are administratively final. § 33.212 What conduct is prohibited by this subpart? An entity that does not meet the eligibility criteria of this subpart may not attempt to participate as an MBE or WBE in contracts awarded under EPA financial assistance agreements or be counted as such by an EPA recipient. An entity that submits false, fraudulent, or deceitful statements or representations, or indicates a serious lack of business integrity or honesty, may be subject to sanctions under § 33.105. Subpart C—Good Faith Efforts § 33.301 What does this subpart require? A recipient, including one exempted from applying the fair share objective requirements by § 33.411, is required to make the following good faith efforts whenever procuring construction, equipment, services and supplies under an EPA financial assistance agreement, even if it has achieved its fair share objectives under subpart D of this part:

(a)Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government recipients, this will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources.

(b)Make information on forthcoming opportunities available to DBEs and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by DBEs in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date.

(c)Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs. For Indian Tribal, State and local Government recipients, this will include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by DBEs in the competitive process.

(d)Encourage contracting with a consortium of DBEs when a contract is too large for one of these firms to handle individually.

(e)Use the services and assistance of the SBA and the Minority Business Development Agency of the Department of Commerce.

(f)If the prime contractor awards subcontracts, require the prime contractor to take the steps in paragraphs

(a)through

(e)of this section. § 33.302 Are there any additional contract administration requirements?

(a)A recipient must require its prime contractor to pay its subcontractor for satisfactory performance no more than 30 days from the prime contractor's receipt of payment from the recipient.

(b)A recipient must be notified in writing by its prime contractor prior to any termination of a DBE subcontractor for convenience by the prime contractor.

(c)If a DBE subcontractor fails to complete work under the subcontract for any reason, the recipient must require the prime contractor to employ the six good faith efforts described in § 33.301 if soliciting a replacement subcontractor.

(d)A recipient must require its prime contractor to employ the six good faith efforts described in § 33.301 even if the prime contractor has achieved its fair share objectives under subpart D of this part.

(e)A recipient must require its prime contractor to provide EPA Form 6100-2—DBE Program Subcontractor Participation Form to all of its DBE subcontractors. EPA Form 6100-2 gives a DBE subcontractor the opportunity to describe the work the DBE subcontractor received from the prime contractor, how much the DBE subcontractor was paid and any other concerns the DBE subcontractor might have, for example reasons why the DBE subcontractor believes it was terminated by the prime contractor. DBE subcontractors may send completed copies of EPA Form 6100-2 directly to the appropriate EPA DBE Coordinator.

(f)A recipient must require its prime contractor to have its DBE subcontractors complete EPA Form 6100-3—DBE Program Subcontractor Performance Form. A recipient must then require its prime contractor to include all completed forms as part of the prime contractor's bid or proposal package.

(g)A recipient must require its prime contractor to complete and submit EPA Form 6100-4—DBE Program Subcontractor Utilization Form as part of the prime contractor's bid or proposal package.

(h)Copies of EPA Form 6100-2—DBE Program Subcontractor Participation Form, EPA Form 6100-3—DBE Program Subcontractor Performance Form and EPA Form 6100-4—DBE Program Subcontractor Utilization Form may be obtained from EPA OSDBU's Home Page on the Internet or directly from EPA OSDBU.

(i)A recipient must ensure that each procurement contract it awards contains the term and condition specified in the Appendix concerning compliance with the requirements of this part. A recipient must also ensure that this term and condition is included in each procurement contract awarded by an entity receiving an identified loan under a financial assistance agreement to capitalize a revolving loan fund. § 33.303 Are there special rules for loans under EPA financial assistance agreements? A recipient of an EPA financial assistance agreement to capitalize a revolving loan fund, such as a State under the CWSRF or DWSRF or an eligible entity under the Brownfields Cleanup Revolving Loan Fund program, must require that borrowers receiving identified loans comply with the good faith efforts described in § 33.301 and the contract administration requirements of §3.302. This provision does not require that such private and nonprofit borrowers expend identified loan funds in compliance with any other procurement procedures contained in 40 CFR part 30, part 31, or part 35, subpart O, as applicable. § 33.304 Must a Native American (either as an individual, organization, Tribe or Tribal Government) recipient or prime contractor follow the six good faith efforts?

(a)A Native American (either as an individual, organization, corporation, Tribe or Tribal Government) recipient or prime contractor must follow the six good faith efforts only if doing so would not conflict with existing Tribal or Federal law, including but not limited to the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e), which establishes, among other things, that any federal contract, subcontract, grant, or subgrant awarded to Indian organizations or for the benefit of Indians, shall require preference in the award of subcontracts and subgrants to Indian organizations and to Indian-owned economic enterprises.

(b)Tribal organizations awarded an EPA financial assistance agreement have the ability to solicit and recruit Indian organizations and Indian-owned economic enterprises and give them preference in the award process prior to undertaking the six good faith efforts. Tribal governments with promulgated tribal laws and regulations concerning the solicitation and recruitment of Native-owned and other minority business enterprises, including women-owned business enterprises, have the discretion to utilize these tribal laws and regulations in lieu of the six good faith efforts. If the effort to recruit Indian organizations and Indian-owned economic enterprises is not successful, then the recipient must follow the six good faith efforts. All tribal recipients still must retain records documenting compliance in accordance with § 33.501 and must report to EPA on their accomplishments in accordance with § 33.502.

(c)Any recipient, whether or not Native American, of an EPA financial assistance agreement for the benefit of Native Americans, is required to solicit and recruit Indian organizations and Indian-owned economic enterprises and give them preference in the award process prior to undertaking the six good faith efforts. If the efforts to solicit and recruit Indian organizations and Indian-owned economic enterprises is not successful, then the recipient must follow the six good faith efforts.

(d)Native Americans are defined in § 33.103 to include American Indians, Eskimos, Aleuts and Native Hawaiians. Subpart D—Fair Share Objectives § 33.401 What does this subpart require? A recipient must negotiate with the appropriate EPA award official or his/her designee, fair share objectives for MBE and WBE participation in procurement under the financial assistance agreements. § 33.402 Are there special rules for loans under EPA financial assistance agreements? A recipient of an EPA financial assistance agreement to capitalize revolving loan funds must either apply its own fair share objectives negotiated with EPA under § 33.401 to identified loans using a substantially similar relevant geographic market, or negotiate separate fair share objectives with entities receiving identified loans, as long as such separate objectives are based on demonstrable evidence of availability of MBEs and WBEs in accordance with this subpart. If procurements will occur over more than one year, the recipient may choose to apply the fair share objective in place either for the year in which the identified loan is awarded or for the year in which the procurement action occurs. The recipient must specify this choice in the financial assistance agreement, or incorporate it by reference therein. § 33.403 What is a fair share objective? A fair share objective is an objective based on the capacity and availability of qualified, certified MBEs and WBEs in the relevant geographic market for the procurement categories of construction, equipment, services and supplies compared to the number of all qualified entities in the same market for the same procurement categories, adjusted, as appropriate, to reflect the level of MBE and WBE participation expected absent the effects of discrimination. A fair share objective is not a quota. § 33.404 When must a recipient negotiate fair share objectives with EPA? A recipient must submit its proposed MBE and WBE fair share objectives and supporting documentation to EPA within 120 days after its acceptance of its financial assistance award. EPA must respond in writing to the recipient's submission within 30 days of receipt, either agreeing with the submission or providing initial comments for further negotiation. Failure to respond within this time frame may be considered as agreement by EPA with the fair share objectives submitted by the recipient. MBE and WBE fair share objectives must be agreed upon by the recipient and EPA before funds may be expended for procurement under the recipient's financial assistance agreement. § 33.405 How does a recipient determine its fair share objectives?

(a)A recipient must determine its fair share objectives based on demonstrable evidence of the number of certified MBEs and WBEs that are ready, willing, and able to perform in the relevant geographic market for each of the four procurement categories (equipment, construction, services, and supplies). The relevant geographic market is the area of solicitation for the procurement as determined by the recipient. The market may be a geographic region of a State, an entire State, or a multi-State area. Fair share objectives must reflect the recipient's determination of the level of MBE and WBE participation it would expect absent the effects of discrimination. A recipient may combine the four procurement categories into one weighted objective for MBEs and one weighted objective for WBEs.

(b)*Step 1.* A recipient must first determine a base figure for the relative availability of MBEs and WBEs. The following are examples of approaches that a recipient may take. Any percentage figure derived from one of these examples should be considered a basis from which a recipient begins when examining evidence available in its jurisdiction.

(1)*MBE and WBE Directories and Census Bureau Data.* Separately determine the number of certified MBEs and WBEs that are ready, willing, and able to perform in the relevant geographic market for each procurement category from a MBE/WBE directory, such as a bidder's list. Using the Census Bureau's County Business Pattern

(CBP)database, determine the number of all qualified businesses available in the market that perform work in the same procurement category. Separately divide the number of MBEs and WBEs by the number of all businesses to derive a base figure for the relative availability of MBEs and WBEs in the market.

(2)*Data from a Disparity Study.* Use a percentage figure derived from data in a valid, applicable disparity study conducted within the preceding ten years comparing the available MBEs and WBEs in the relevant geographic market with their actual usage by entities procuring in the categories of construction, equipment, services, and supplies.

(3)*The Objective of Another EPA Recipient.* A recipient may use, as its base figure, the fair share objectives of another EPA recipient if the recipient demonstrates that it will use the same, or substantially similar, relevant geographic market as the other EPA recipient. (See § 33.411 for exemptions from fair share objective negotiations).

(4)*Alternative Methods.* Subject to EPA approval, other methods may be used to determine a base figure for the overall objective. Any methodology chosen must be based on demonstrable evidence of local market conditions and be designed to ultimately attain an objective that is rationally related to the relative availability of MBEs and WBEs in the relevant geographic market.

(c)*Step 2.* After calculating a base figure, a recipient must examine the evidence available in its jurisdiction to determine what adjustment, if any, is needed to the base figure in order to arrive at the fair share objective.

(1)There are many types of evidence that must be considered when adjusting the base figure. These include:

(i)The current capacity of MBEs and WBEs to perform contract work under EPA financial assistance agreements, as measured by the volume of work MBEs and WBEs have performed in recent years;

(ii)Evidence from disparity studies conducted anywhere within the recipient's jurisdiction, to the extent it is not already accounted for in the base figure; and

(iii)If the base figure is the objective of another EPA recipient, it must be adjusted for differences in the local market and the recipient's contracting program.

(2)A recipient may also consider available evidence from related fields that affect the opportunities for MBEs and WBEs to form, grow and compete. These include, but are not limited to:

(i)Statistical disparities in the ability of MBEs and WBEs to get the financing, bonding and insurance required to participate; and

(ii)Data on employment, self-employment, education, training and union apprenticeship programs, to the extent it can be related to the opportunities for MBEs and WBEs to perform in the program.

(3)If a recipient attempts to make an adjustment to its base figure to account for the continuing effects of past discrimination (often called the “but for” factor) or the effects of another ongoing MBE/WBE program, the adjustment must be based on demonstrable evidence that is logically and directly related to the effect for which the adjustment is sought. § 33.406 May a recipient designate a lead agency for fair share objective negotiation purposes? If an Indian Tribal, State or local Government has more than one agency that receives EPA financial assistance, the agencies within that Government may designate a lead agency to negotiate MBE and WBE fair share objectives with EPA to be used by each of the agencies. Each agency must otherwise negotiate with EPA separately its own MBE and WBE fair share objectives. § 33.407 How long do MBE and WBE fair share objectives remain in effect? Once MBE and WBE fair share objectives have been negotiated, they will remain in effect for three fiscal years unless there are significant changes to the data supporting the fair share objectives. The fact that a disparity study utilized in negotiating fair share objectives has become more than ten years old during the three-year period does not by itself constitute a significant change requiring renegotiation. § 33.408 May a recipient use race and/or gender conscious measures as part of this program?

(a)Should the good faith efforts described in subpart C of this part or other race and/or gender neutral measures prove to be inadequate to achieve an established fair share objective, race and/or gender conscious action (e.g., apply the subcontracting suggestion in § 33.301(c) to MBEs and WBEs) is available to a recipient and its prime contractor to more closely achieve the fair share objectives, subject to § 33.409. Under no circumstances are race and/or gender conscious actions required by EPA.

(b)Any use of race and/or gender conscious efforts must not result in the selection of an unqualified MBE or WBE. § 33.409 May a recipient use quotas as part of this program? A recipient is not permitted to use quotas in procurements under EPA's 8% or 10% statute. § 33.410 Can a recipient be penalized for failing to meet its fair share objectives? A recipient cannot be penalized, or treated by EPA as being in noncompliance with this subpart, solely because its MBE or WBE participation does not meet its applicable fair share objective. However, EPA may take remedial action under § 33.105 for a recipient's failure to comply with other provisions of this part, including, but not limited to, the good faith efforts requirements described in subpart C of this part. § 33.411 Who may be exempted from this subpart?

(a)*General.* A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal year, is not required to apply the fair share objective requirements of this subpart. This exemption is limited to the fair share objective requirements of this subpart.

(b)*Clean Water State Revolving Fund (CWSRF) Program, Drinking Water State Revolving Fund (DWSRF) Program, and Brownfields Cleanup Revolving Loan Fund (BCRLF) Program Identified Loan Recipients.* A recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the fair share objective requirements of this subpart to an entity receiving an identified loan in an amount of $250,000 or less or to an entity receiving more than one identified loan with a combined total of $250,000 or less in any one fiscal year. This exemption is limited to the fair share objective requirements of this subpart.

(c)*Tribal and Intertribal Consortia recipients of program grants which can be included in Performance Partnership Grants

(PPGs)under 40 CFR Part 35, Subpart B.* Tribal and Intertribal consortia recipients of PPG eligible grants are not required to apply the fair share objective requirements of this subpart to those grants. This exemption is limited to the fair share objective requirements of this subpart.

(d)*Technical Assistance Grant

(TAG)Program Recipients.* A recipient of a TAG is not required to apply the fair share objective requirements of this subpart to that grant. This exemption is limited to the fair share objective requirements of this subpart. § 33.412 Must an Insular Area or Indian Tribal Government recipient negotiate fair share objectives? The requirements in this subpart regarding the negotiation of fair share objectives will not apply to an Insular Area or Indian Tribal Government recipient until three calendar years after the effective date of this part. Furthermore, in accordance with § 33.411(c), tribal and intertribal consortia recipients of program grants which can be included in Performance Partnership Grants

(PPGs)under 40 CFR part 35, subpart B are not required to apply the fair share objective requirements of this subpart to such grants. Subpart E—Recordkeeping and Reporting § 33.501 What are the recordkeeping requirements of this part?

(a)A recipient, including those recipients exempted under § 33.411 from the requirement to apply the fair share objectives, must maintain all records documenting its compliance with the requirements of this part, including documentation of its, and its prime contractors', good faith efforts and data relied upon in formulating its fair share objectives. Such records must be retained in accordance with applicable record retention requirements for the recipient's financial assistance agreement.

(b)A recipient of a Continuing Environmental Program Grant or other annual grant must create and maintain a bidders list. In addition, a recipient of an EPA financial assistance agreement to capitalize a revolving loan fund also must require entities receiving identified loans to create and maintain a bidders list if the recipient of the loan is subject to, or chooses to follow, competitive bidding requirements. (See *e.g.* , § 33.303). The purpose of a bidders list is to provide the recipient and entities receiving identified loans who conduct competitive bidding with as accurate a database as possible about the universe of MBE/WBE and non-MBE/WBE prime and subcontractors. The list must include all firms that bid or quote on prime contracts, or bid or quote subcontracts on EPA assisted projects, including both MBE/WBEs and non-MBE/WBEs. The bidders list must only be kept until the grant project period has expired and the recipient is no longer receiving EPA funding under the grant. For entities receiving identified loans, the bidders list must only be kept until the project period for the identified loan has ended. The following information must be obtained from all prime and subcontractors:

(1)Entity's name with point of contact;

(2)Entity's mailing address, telephone number, and e-mail address;

(3)The procurement on which the entity bid or quoted, and when; and

(4)Entity's status as an MBE/WBE or non-MBE/WBE.

(c)*Exemptions.* A recipient of an EPA financial assistance agreement in the amount of $250,000 or less for any single assistance agreement, or of more than one financial assistance agreement with a combined total of $250,000 or less in any one fiscal year, is exempt from the paragraph

(b)of this section requirement to create and maintain a bidders list. Also, a recipient under the CWSRF, DWSRF, or BCRLF Program is not required to apply the paragraph

(b)of this section bidders list requirements of this subpart. § 33.502 What are the reporting requirements of this part? MBE and WBE participation must be reported by all recipients, including those recipients exempted under § 33.411 from the requirement to apply the fair share objectives, on EPA Form 5700-52A. Recipients of Continuing Environmental Program Grants under 40 CFR part 35, subpart A; recipients of Performance Partnership Grants

(PPGs)under 40 CFR part 35, subpart B; General Assistance Program

(GAP)grants for tribal governments and intertribal consortia; and institutions of higher education, hospitals and other non-profit organizations receiving financial assistance agreements under 40 CFR part 30, will report on MBE and WBE participation on an annual basis. All other financial assistance agreement recipients, including recipients of financial assistance agreements capitalizing revolving loan funds, will report on MBE and WBE participation semiannually. Recipients of financial assistance agreements that capitalize revolving loan programs must require entities receiving identified loans to submit their MBE and WBE participation reports on a semiannual basis to the financial assistance agreement recipient, rather than to EPA. § 33.503 How does a recipient calculate MBE and WBE participation for reporting purposes?

(a)*General.* Only certified MBEs and WBEs are to be counted towards MBE/WBE participation. Amounts of MBE and WBE participation are calculated as a percentage of total financial assistance agreement project procurement costs, which include the match portion of the project costs, if any. For recipients of financial assistance agreements that capitalize revolving loan programs, the total amount is the total procurement dollars in the amount of identified loans equal to the capitalization grant amount.

(b)*Ineligible project costs.* If all project costs attributable to MBE and WBE participation are not eligible for funding under the EPA financial assistance agreement, the recipient may choose to report the percentage of MBE and WBE participation based on the total eligible and non-eligible costs of the project.

(c)*Joint ventures.* For joint ventures, MBE and WBE participation consists of the portion of the dollar amount of the joint venture attributable to the MBE or WBE. If an MBE's or WBE's risk of loss, control or management responsibilities is not commensurate with its share of the profit, the Agency may direct an adjustment in the percentage of MBE or WBE participation.

(d)*Central Purchasing or Procurement Centers.* A recipient must report MBE and WBE participation from its central purchasing or procurement centers.

(e)*Brokers.* A recipient may not count expenditures to a MBE or WBE that acts merely as a broker or passive conduit of funds, without performing, managing, or supervising the work of its contract or subcontract in a manner consistent with normal business practices.

(1)*Presumption.* If 50% or more of the total dollar amount of a MBE or WBE's prime contract is subcontracted to a non-DBE, the MBE or WBE prime contractor will be presumed to be a broker, and no MBE or WBE participation may be reported.

(2)*Rebuttal.* The MBE or WBE prime contractor may rebut this presumption by demonstrating that its actions are consistent with normal practices for prime contractors in its business and that it will actively perform, manage and supervise the work under the contract.

(f)*MBE or WBE Truckers/Haulers.* A recipient may count expenditures to an MBE or WBE trucker/hauler only if the MBE or WBE trucker/hauler is performing a commercially useful function. The following factors should be used in determining whether an MBE or WBE trucker/hauler is performing a commercially useful function:

(1)The MBE or WBE must be responsible for the management and supervision of the entire trucking/hauling operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting MBE or WBE objectives.

(2)The MBE or WBE must itself own and operate at least one fully licensed, insured, and operational truck used on the contract. Appendix A to Part 33—Term and Condition Each procurement contract signed by an EPA financial assistance agreement recipient, including those for an identified loan under an EPA financial assistance agreement capitalizing a revolving loan fund, must include the following term and condition: The contractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. The contractor shall carry out applicable requirements of 40 CFR part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the contractor to carry out these requirements is a material breach of this contract which may result in the termination of this contract or other legally available remedies. PART 35—[AMENDED] Subpart E—[Amended] 6. The authority citation for part 35, subpart E, continues to read as follows: Authority: Secs. 109(b), 201 through 205, 207, 208(d), 210 through 212, 215 through 217, 304(d)(3), 313, 501, 511, and 516(b) of the Clean Water Act, as amended, 33 U.S.C. 1251 *et seq.* § 35.936-7 [Removed] 7. Section 35.936-7 is removed. § 35.938-9 [Amended] 8. Section 35.938-9 is amended by removing and reserving paragraph (b)(2). Subpart K—[Amended] 9. The authority citation for part 35, subpart K, continues to read as follows: Authority: Secs. 205(m), 501(a) and title VI of the Clean Water Act, as amended, 42 U.S.C. 1285(m), 33 U.S.C. 1361(a), 33 U.S.C. 1381-1387. § 35.3145 [Amended] 10. Section 35.3145 is amended by removing paragraphs

(d)and (e). Subpart L—[Amended] 11. The authority citation for part 35, subpart L, continues to read as follows: Authority: Section 1452 of the Safe Drinking Water Act, as amended, 42 U.S.C. 300j-12. § 35.3575 [Amended] 12. Section 35.3575(d) is removed and reserved. Subpart M—[Amended] 13. The authority citation for part 35, subpart M, continues to read as follows: Authority: 42 U.S.C. 9617(e); sec. 9(g), E.O. 12580, 52 FR 2923, 3 CFR, 1987 Comp., p. 193. § 35.4170 [Amended] 14. Section 35.4170(b) is removed and reserved. § 35.4205 [Amended] 15. Section 35.4205(g) is removed. § 35.4240 [Amended] 16. Section 35.4240(e) is removed and reserved. Subpart O—[Amended] 17. The authority citation for part 35, subpart O, continues to read as follows: Authority: 42 U.S.C. 9601 *et seq.* § 35.6015 [Amended] 18. Section 35.6015(a) is amended by removing the definitions for “Minority Business Enterprise (MBE)” and “Women's Business Enterprise (WBE)”. § 35.6550 [Amended] 19. Section 35.6550(a)(8) is removed and reserved. § 35.6580 [Amended] 20. Section 35.6580 is removed. § 35.6610 [Amended] 21. Section 35.6610(c) is removed and reserved. § 35.6665 [Removed] 22. Section 35.6665 is removed. PART 40—[Amended] 21. The authority citation for part 40 is revised to read as follows: Authority: 7 U.S.C. 136 *et seq.* ; 15 U.S.C. 2609 *et seq.* ; 33 U.S.C. 1254 *et seq.* and 1443; 42 U.S.C. 241 *et seq.* , 300f *et seq.* , 1857 *et seq.* , 1891 *et seq.* , and 6901 *et seq.* § 40.145-3 [Amended] 22. Section 40.145-3(c) is removed and reserved. [FR Doc. E8-6003 Filed 3-25-08; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 63 [EPA-HQ-OAR-2006-0897; FRL-8547-1] RIN 2060-AN44 Amendments to National Emission Standards for Hazardous Air Pollutants for Area Sources: Acrylic and Modacrylic Fibers Production, Carbon Black Production, Chemical Manufacturing: Chromium Compounds, Flexible Polyurethane Foam Production and Fabrication, Lead Acid Battery Manufacturing, and Wood Preserving AGENCY: Environmental Protection Agency (EPA). ACTION: Direct final rule. SUMMARY: EPA is publishing technical corrections through this direct final action to amend the national emission standards for acrylic and modacrylic fibers production, carbon black production, chemical manufacturing: chromium compounds, flexible polyurethane foam production and fabrication, lead acid battery manufacturing, and wood preserving area sources published on July 16, 2007. The amendments clarify certain provisions in two of the final area source rules (flexible polyurethane foam production and fabrication and lead acid battery manufacturing) and correct editorial and publication errors in all of the final rules. DATES: This rule is effective on June 24, 2008 without further notice, unless EPA receives adverse comment by April 25, 2008. If EPA receives adverse comment, we will publish a timely withdrawal in the **Federal Register** informing the public that this rule, or the relevant amendments in this rule, will not take effect. ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-OAR-2006-0897 by one of the following methods: • *http://www.regulations.gov:* Follow the on-line instructions for submitting comments. • *E-mail: a-and-r-Docket@epa.gov.* • *Fax:*

(202)566-9744. • *Mail: National Emission Standards for Hazardous Air Pollutants for Area Sources:* Acrylic and Modacrylic Fibers Production, Carbon Black Production, Chemical Manufacturing: Chromium Compounds, Flexible Polyurethane Foam Production and Fabrication, Lead Acid Battery Manufacturing, and Wood Preserving Docket, Environmental Protection Agency, Mailcode: 6102T, 1200 Pennsylvania Ave., NW., Washington, DC 20460. Please include a total of two copies. • *Hand Delivery:* EPA Docket Center, Public Reading Room, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC 20460. Such deliveries are only accepted during the Docket's normal hours of operation, and special arrangements should be made for deliveries of boxed information. *Instructions:* Direct your comments to Docket ID No. EPA-HQ-OAR-2006-0897. EPA's policy is that all comments received will be included in the public docket without change and may be made available online at *http://www.regulations.gov,* including any personal information provided, unless the comment includes information claimed to be confidential business information

(CBI)or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through *http://www.regulations.gov* or e-mail. The *http://www.regulations.gov* Web site is an “anonymous access” system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through *http://www.regulations.gov,* your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD-ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. Docket: All documents in the docket are listed in the *http://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 form. Publicly available docket materials are available either electronically in *http://www.regulations.gov* or in hard copy at the National Emission Standards for Hazardous Air Pollutants for Area Sources: Acrylic and Modacrylic Fibers Production, Carbon Black Production, Chemical Manufacturing: Chromium Compounds, Flexible Polyurethane Foam Production and Fabrication, Lead Acid Battery Manufacturing, and Wood Preserving Docket, EPA Docket Center, Public Reading Room, EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is

(202)566-1744, and the telephone number for the Air Docket is

(202)566-1742. FOR FURTHER INFORMATION CONTACT: Ms. Sharon Nizich, Sector Policies and Programs Division, Office of Air Quality Planning and Standards (D243-02), Environmental Protection Agency, Research Triangle Park, North Carolina 27711, *telephone number:*

(919)541-2825; *fax number:*

(919)541-3207; *e-mail address:* *nizich.sharon@epa.gov.* SUPPLEMENTARY INFORMATION: The information presented in this preamble is organized as follows: I. Why is EPA using a direct final rule? II. Does this action apply to me? III. Where can I get a copy of this document? IV. What should I consider as I prepare my comments to EPA? V. What are the changes to the area source NESHAPs? A. NESHAP for Acrylic and Modacrylic Fibers Production Area Sources B. NESHAP for Carbon Black Production Area Sources C. NESHAP for Chemical Manufacturing Area Sources: Chromium Compounds D. NESHAP for Flexible Polyurethane Foam Production and Fabrication Area Sources E. NESHAP for Lead Acid Battery Manufacturing Area Sources F. NESHAP for Wood Preserving Area Sources VI. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments G. Executive Order 13045: Protection of Children From Environmental Health and Safety Risks H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use I. National Technology Transfer Advancement Act J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations K. Congressional Review Act I. Why is EPA using a direct final rule? EPA is publishing the rule without a prior proposed rule because we view this as a noncontroversial action and anticipate no adverse comment. The amendments to the national emission standards for hazardous air pollutants (NESHAP) consist of clarifications and corrections that do not make material changes to the rule requirements. If we receive adverse comment on a distinct provision of this rulemaking, we will publish a timely withdrawal in the **Federal Register** indicating which provisions we are withdrawing. The provisions that are not withdrawn will become effective on the date set out above, notwithstanding adverse comment on any other provision. II. Does this action apply to me? The regulated categories and entities potentially affected by the final rule include: Category NAICS code 1 Examples of regulated entities Industry: Acrylic and modacrylic fibers production 325222 Area source facilities that manufacture polymeric organic fibers using acrylonitrile as a primary monomer. Carbon black production 325182 Area source facilities that manufacture carbon black using the furnace, thermal, or acetylene decomposition process. Chemical manufacturing: chromium compounds 325188 Area source facilities that produce chromium compounds, principally sodium dichromate, chromic acid, and chromic oxide, from chromite ore. Flexible polyurethane foam production 326150 Area source facilities that manufacture foam made from a polyurethane polymer. Flexible polyurethane foam fabrication operations 326150 Area source facilities that cut or bond flexible polyurethane foam pieces together or to other substrates. Lead acid battery manufacturing 335911 Area source facilities that manufacture lead acid storage batteries made from lead alloy ingots and lead oxide. Wood preserving 321114 Area source facilities that treat wood such as lumber, ties, poles, posts, or pilings with a preservative. 1 North American Industry Classification System. This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be affected by this action. To determine whether your facility is regulated by this action, you should examine the applicability criteria in 40 CFR 63.11393 of subpart LLLLLL (NESHAP for Acrylic and Modacrylic Fibers Production Area Sources), 40 CFR 63.11400 of subpart MMMMMM (NESHAP for Carbon Black Production Area Sources), 40 CFR 63.11407 of subpart NNNNNN (NESHAP for Chemical Manufacturing Area Sources: Chromium Compounds), 40 CFR 63.11414 of subpart OOOOOO (NESHAP for Flexible Polyurethane Foam Production and Fabrication Area Sources), 40 CFR 63.11421 of subpart PPPPPP (NESHAP for Lead Acid Battery Manufacturing Area Sources), or 40 CFR 63.11428 of subpart QQQQQQ (NESHAP for Wood Preserving Area Sources). If you have any questions regarding the applicability of this action to a particular entity, consult either the air permit authority for the entity or your EPA regional representative as listed in 40 CFR 63.13 of subpart A (General Provisions). III. Where can I get a copy of this document? In addition to being available in the docket, an electronic copy of this final action will also be available on the Worldwide Web

(WWW)through the Technology Transfer Network (TTN). Following signature, a copy of this final action will be posted on the TTN's policy and guidance page for newly proposed or promulgated rules at the following address: *http://www.epa.gov/ttn/oarpg/.* The TTN provides information and technology exchange in various areas of air pollution control. IV. What should I consider as I prepare my comments to EPA? Do not submit information containing confidential business information

(CBI)to EPA through *http://www.regulations.gov* or e-mail. Send or deliver information identified as CBI only to the following address: Roberto Morales, OAQPS Document Control Officer (C404-02), Office of Air Quality Planning and Standards, Environmental Protection Agency, Research Triangle Park, North Carolina Attention Docket ID No. EPA-HQ-OAR-2006-0897. Clearly mark all of the information that you claim to be CBI. For CBI information in a disk or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM as CBI and then identify electronically within the disk or CD ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information marked as CBI will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. V. What are the changes to the area source NESHAPs? A. NESHAP for Acrylic and Modacrylic Fibers Production Area Sources On July 16, 2007 (72 FR 38899), we issued the NESHAP for Acrylic and Modacrylic Fibers Production Area Sources (40 CFR part 63, subpart LLLLLL). The final rule establishes air emission control requirements for new and existing acrylic or modacrylic fibers production plants. These direct final rule amendments make one editorial correction to the NESHAP. We are correcting a regulatory citation in the second sentence of paragraph

(a)in 40 CFR 63.11399 (Who implements and enforces this subpart?) to add the phrase “part 63,” which was inadvertently omitted from the final rule. B. NESHAP for Carbon Black Production Area Sources On July 16, 2007 (72 FR 38904), we issued the NESHAP for Carbon Black Production Area Sources (40 CFR part 63, subpart MMMMMM). Subpart MMMMMM establishes air emission control requirements for new and existing carbon black production process units. 1. 40 CFR 63.11402 We are correcting a regulatory citation in 40 CFR 63.11402 (What are the standards and compliance requirements for new and existing sources?) to read “§ 63.1103(f) of 40 CFR part 63, subpart YY” instead of “§ 63.1103 of subpart YY”. 2. 40 CFR 63.11406 We are also making an editorial correction to the second sentence in paragraph

(a)of 40 CFR 63.11406 (Who implements and enforces this subpart?) to add the phrase “part 63,” which was inadvertently omitted from the final rule. C. NESHAP for Chemical Manufacturing Area Sources: Chromium Compounds On July 16, 2007 (72 FR 38905), we issued the NESHAP for Chemical Manufacturing Area Sources: Chromium Compounds (40 CFR part 63, subpart NNNNNN). The final rule establishes air emission control requirements for new and existing chromium compounds manufacturing facilities. 1. 40 CFR 63.11410(c) We are revising paragraph (c)(3)(iii) of 40 CFR 63.11410 to correct the biennial inspection requirements for wet electrostatic precipitators. The first sentence in paragraph (c)(3)(iii) identifies the components of the inside of the wet electrostatic precipitator that must be inspected during periodic inspections, and incorrectly lists “plate rappers” as one of the components to be inspected. We intended to make the periodic inspection requirements in 40 CFR 63.11410(c)(3) consistent with the initial inspection requirements in 40 CFR 63.11410(b)(3), which lists “plate wash spray heads” as a component that must be inspected but makes no mention of “plate rappers”. The amendment adds the term “plate wash spray heads” and removes the term “plate rappers” because wet electrostatic precipitators do not have plate rappers and instead use water sprays to clean the plates. We are also correcting a cross-referencing error in the second sentence of paragraph (c)(3)(iii) which requires that if an initial inspection is not required by paragraph (b)(2) of this section, the first inspection must not be more than 24 months from the last inspection. We are correcting the regulatory citation to read “paragraph (b)(3) of this section” so that the sentence refers to the initial inspection requirements for wet electrostatic precipitators instead of the initial inspection requirements for dry electrostatic precipitators. 2. 40 CFR 63.11413 We are also making an editorial correction to the second sentence of paragraph

(a)in 40 CFR 63.11413 (Who implements and enforces this subpart?) to add the phrase “part 63,” which was inadvertently omitted from the final rule. D. NESHAP for Flexible Polyurethane Foam Production and Fabrication Area Sources On July 16, 2007 (72 FR 38910), we issued the NESHAP for Flexible Polyurethane Foam Production and Fabrication Area Sources (40 CFR part 63, subpart OOOOOO). The final rule applies to area source facilities that produce flexible polyurethane foam or rebond foam and flexible polyurethane foam fabrication facilities. 1. 40 CFR 63.11416 We are correcting a publication error in paragraph (b)(1) of 40 CFR 63.11416 (What are the standards for new and existing sources?). Paragraph (b)(1) at 72 FR 38911 (third column) was incorrectly printed as two separate paragraphs. We are correcting paragraph (b)(1) by combining the two sentences into one paragraph. 2. 40 CFR 63.11417 We are clarifying a provision in 40 CFR 63.11417 (What are the compliance requirements for new and existing sources?). Paragraph (b)(2) of 40 CFR 63.11417 requires the owner or operator of a slabstock flexible polyurethane foam production affected source who chooses to comply with prohibition on the use of methylene chloride in the production process to submit a notification of compliance status report. The second sentence in paragraph (b)(2) specifies that the notification of compliance status report must contain “the information detailed in § 63.9(h)(2)(i) paragraphs

(A)and (G)” and that the report contain a specific compliance certification as stated in the rule. The amendment clarifies the NESHAP by removing the requirement that the notification of compliance status report contain the information detailed in § 63.9(h)(2)(i) paragraphs

(A)and (G). In promulgating this rule, we did not intend to require compliance with the General Provisions (40 CFR part 63, subpart A) for slabstock foam production facilities that comply with the prohibition on the use of methylene chloride. 3. Table 1 to Subpart OOOOOO of Part 63 We are revising the introductory statement for Table 1 to Subpart OOOOOO of Part 63—Applicability of General Provisions to Subpart OOOOOO. As noted in 40 CFR 63.11418 of the NESHAP, the general provisions identified in Table 1 apply only to those affected sources that are subject to 40 CFR 63.11416(b)(1). Sources subject to 40 CFR 63.11416(b)(1) are owners or operators of new or existing stabstock polyurethane foam production affected sources who choose to comply with the formulation limits for HAP auxiliary blowing agents. However, the introductory statement for Table 1 states that “as required in § 63.11418, you must comply with the requirements of the NESHAP General Provisions (40 CFR part 63, subpart A) as shown in the following table.” This statement could imply that the requirements in Table 1 apply to all owners or operators subject to the rule, which is not the case. Therefore, we are clarifying the introductory statement to specify that the requirements in Table 1 apply to sources subject to 40 CFR 63.11416(b)(1). 4. 40 CFR 63.11420 We are also making an editorial correction to the second sentence in paragraph

(a)of 40 CFR 63.11420 (Who implements and enforces this subpart?) to add the phrase “part 63,” which was inadvertently omitted from the final rule. E. NESHAP for Lead Acid Battery Manufacturing Area Sources On July 16, 2007 (72 FR 38913), we issued the NESHAP for Lead Acid Battery Manufacturing Area Sources (40 CFR part 63, subpart PPPPPP). Subpart PPPPPP establishes air emission control requirements for new and existing lead acid battery manufacturing plants. We are finalizing changes to the following sections. 1. 40 CFR 63.11423(c) We are clarifying paragraph (c)(1) of 40 CFR 63.11423 (What are the standards and compliance requirements for new and existing sources?). Paragraph (c)(1) provides that existing sources are not required to conduct a performance test if:

(1)A prior performance test was conducted using the same methods specified in 40 CFR 60.374 of the new source performance standards

(NSPS)for lead acid batteries and there has been no process change at the facility, or

(2)a prior performance test was conducted using the same methods specified in 40 CFR 60.374 and the source can reliably demonstrate compliance with the requirements notwithstanding process changes. Industry representatives suggested, and we agree, that a clarification is needed to indicate that “compliance” is intended to mean compliance with the standards in 40 CFR 60.372 of the NSPS. Therefore, we are adding the phrase “with this subpart” after the word “compliance”. We are also correcting a cross-referencing error in paragraph (c)(2) of 40 CFR 63.11423, which incorrectly states that the provisions for prior performance tests are contained in paragraph

(b)of this section. The prior performance test provisions are contained in paragraph (c)(1). We are correcting this error by changing the cross reference to cite paragraph (c)(1) of this section. 2. 40 CFR 63.11425(c) We are also correcting an error in the deadline for the owner or operator of an existing source to submit the notification of compliance status report required by 40 CFR 63.9(h) of the general provisions. The date given in paragraph

(c)of 40 CFR 63.11425 (What General Provisions apply to this subpart?), September 15, 2008, was set by adding 60 days to the compliance date for existing sources in the final rule. The applicable general provisions of part 63, however, allow sources additional time to submit the initial notification of compliance status when a performance test is required by the relevant standard. Specifically, 40 CFR 63.9(h)(2)(ii) requires the notification of compliance status be submitted within 60 days following completion of any compliance demonstration activity specified in the relevant standard. The NESHAP for lead acid battery manufacturers requires sources to conduct a performance test to demonstrate compliance, unless a prior performance test is sufficient as set forth in 40 CFR 63.11423(c), and the general provisions at 40 CFR 63.7(a)(2) require a source to conduct an initial performance test within 180 days of the compliance date. In sum, the applicable general provisions allow existing sources that cannot rely on a prior performance test to demonstrate compliance up to 240 days to submit the notification of compliance (180 days to conduct the performance test and 60 days to submit the notification). Consequently, we are correcting the date specified in 40 CFR 63.11425(c). The amended rule text now states: “For existing sources, the initial notification of compliance required by § 63.9(h) must be submitted not later than March 13, 2009.” 3. 40 CFR 63.11426 We are also clarifying the introductory language in 40 CFR 63.11426 (What definitions apply to this subpart?) by removing the phrases “as specified in § 63.11425(a)” and “as specified in § 63.11425(b).” We are removing these phrases because changes made to the rule after proposal rendered the cross references to § 63.11425 incorrect and confusing. These changes will prevent confusion over the rule requirements because these references to 40 CFR 63.11425 no longer have any meaning within the NESHAP. We are also adding “40 CFR” before the terms “part 60” and “part 63” to complete these regulatory references. 4. 40 CFR 63.11427 We are also making an editorial correction to paragraph

(a)of 40 CFR 63.11427 (Who implements and enforces this subpart?) to add the phrase “part 63,” which was inadvertently omitted from the final rule. 5. Table 1 to Subpart PPPPPP of Part 63 These direct final rule amendments also correct a publication error in Table 1 to Subpart PPPPPP of Part 63—Applicability of General Provisions to Subpart PPPPPP at 72 FR 38915 (second column). In this correction, we are adding the words “Notification Requirements” to the subject column for the citation to 40 CFR 63.9. F. NESHAP for Wood Preserving Area Sources On July 16, 2007 (72 FR 38915), we issued the NESHAP for Wood Preserving Area Sources (40 CFR part 63, subpart QQQQQQ). Subpart QQQQQQ establishes air emissions control requirements for new and existing wood preserving operations. 1. 40 CFR 63.11432 We are correcting a regulatory citation in 40 CFR 63.11432 (What General Provisions apply to this subpart?). The first sentence in paragraph

(b)of 40 CFR 63.11432 incorrectly refers to § 63.9(a)(2) as requiring an initial notification of applicability. We are correcting the citation to read “§ 63.9(b)(2).” 2. 40 CFR 63.11434 We are making an editorial correction to the second sentence in paragraph

(a)of 40 CFR 63.11434 (Who implements and enforces this subpart?) to add the phrase “part 63,” which was inadvertently omitted from the final rule. 4. Table 1 to Subpart QQQQQQ of Part 63 We are also correcting a publication error in Table 1 to Subpart QQQQQQ of Part 63—Applicability of General Provisions to Subpart QQQQQQ as published at 72 FR 38917 (second and third columns). We are correcting the entry for § 63.6(e)(3)(i), (e)(3)(iii) through (e)(3)(ix), (f), (g), (h)(1), (h)(2), (h)(4), (h)(5)(i) through (h)(5)(iii), (h)(5)(v), and (h)(6) through (h)(9) to remove the information contained in the second column (Subject) and third column (Applies to subpart QQQQQQ?) and add this information to the third and fourth columns. VI. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review This action is not a “significant regulatory action” under the terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and is therefore not subject to review under the Executive Order. B. Paperwork Reduction Act This action does not impose an information collection burden. EPA is taking this action to make certain clarifications and corrections to the six area source rules. These clarifications and corrections do not include or affect any information collection requirements. However, the Office of Management and Budget

(OMB)has previously approved the information collection requirements contained in the existing regulations (40 CFR part 63) under the provisions of the *Paperwork Reduction Act,* 44 U.S.C. 3501 *et seq.* and has assigned OMB control number 2060-0598. The OMB control numbers for EPA's regulations in 40 CFR are listed in 40 CFR part 9. C. Regulatory Flexibility Act The Regulatory Flexibility Act generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements under the Administrative Procedure Act or any other statute unless the agency certifies that the rule would not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small not-for-profit enterprises, and small governmental jurisdictions. For the purposes of assessing the impacts of the area source NESHAP on small entities, small entity is defined as:

(1)A small business that meets the Small Business Administration size standards for small businesses found at 13 CFR 121.201 (less than 1,000 employees for acrylic and modacrylic fibers production and chromium compounds manufacturing and less than 500 employees for carbon black production, flexible polyurethane foam production and fabrication, lead acid battery manufacturing, and wood preserving);

(2)a small governmental jurisdiction that is a government of a city, county, town, school district, or special district with a population of less than 50,000; and

(3)a small organization that is any not-for-profit enterprise which is independently owned and operated and is not dominant in its field. After considering the economic impacts of this final rule on small entities, I certify that this action will not have a significant economic impact on a substantial number of small entities. The amendments contained in this final rule will not impose any requirements or costs on small entities. These final amendments consist only of clarifications and corrections in each of the NESHAP, and these clarifications and corrections do not create any new requirements or burdens. The clarifications and corrections in these final amendments will facilitate compliance for small entities by making the applicability of certain requirements easier to understand. D. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. Under section 202 of the UMRA, EPA generally must prepare a written statement, including a cost-benefit analysis, for proposed and final rules with “Federal mandates” that may result in expenditures by State, local, and tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year. Before promulgating an EPA rule for which a written statement is needed, section 205 of the UMRA generally requires EPA to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, most cost-effective, or least burdensome alternative that achieves the objectives of the rule. The provisions of section 205 do not apply when they are inconsistent with applicable law. Moreover, section 205 allows EPA to adopt an alternative other than the least costly, most cost-effective, or least burdensome alternative if the Administrator publishes with the final rule an explanation why that alternative was not adopted. Before EPA establishes any regulatory requirements that may significantly or uniquely affect small governments, including tribal governments, it must have developed under section 203 of the UMRA a small government agency plan. The plan must provide for notifying potentially affected small governments, enabling officials of affected small governments to have meaningful and timely input in the development of EPA regulatory proposals with significant Federal intergovernmental mandates, and informing, educating, and advising small governments on compliance with the regulatory requirements. EPA has determined that this action does not contain a Federal mandate that may result in expenditures of $100 million or more for State, local, and tribal governments, in the aggregate, or the private sector in any one year. EPA is taking this action to make certain clarifications and corrections to each of the area source NESHAP. No costs are associated with these clarifications and corrections. Thus, this rule is not subject to the requirements of sections 202 and 205 of the UMRA. In addition, EPA has determined that this action contains no regulatory requirements that might significantly or uniquely affect small governments. The clarifications and corrections made through this action contain no requirements that apply to such governments, impose no obligations upon them, and will not result in any expenditures by them or any disproportionate impacts on them. This final rule is not subject to section 203 of the UMRA. E. Executive Order 13132: Federalism Executive Order 13132, entitled “Federalism” (64 FR 43255, August 10, 1999) requires EPA to develop an accountable process to ensure “meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications.” “Policies that have federalism implications” are defined in the Executive Order to include regulations that have “substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.” This final rule does not have federalism implications. It will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. This rule makes certain clarifications and corrections to each of the area source NESHAP. These final clarifications and corrections do not impose requirements on State and local governments. Thus, Executive Order 13132 does not apply to this rule. F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments Executive Order 13175, entitled “Consultation and Coordination with Indian Tribal Governments” (65 FR 67249, November 6, 2000), requires EPA to develop an accountable process to ensure “meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications.” This final rule does not have tribal implications, as specified in Executive Order 13175. The final rule makes certain clarifications and corrections to each of the area source NESHAP. These final clarifications and corrections do not impose requirements on tribal governments. They also have no direct effects on tribal governments, on the relationship between the Federal government and Indian tribes, or on the distribution of power and responsibilities between the Federal government and Indian tribes. Thus, Executive Order 13175 does not apply to the final rule. G. Executive Order 13045: Protection of Children From Environmental Health and Safety Risks EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) as applying to those regulatory actions that concern health or safety risks, such that the analysis required under section 5-501 of the Executive Order has the potential to influence the regulation. This action is not subject to Executive Order 13045 because it makes clarifications and corrections to each of the area source NESHAP that are based solely on technology performance. H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use This final rule is not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001) because it is not a significant regulatory action under Executive Order 12866. I. National Technology Transfer Advancement Act Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113, 12(d) (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted by voluntary consensus bodies. The NTTAA directs EPA to provide Congress, through OMB, explanations when the Agency does not use available and applicable voluntary consensus standards. This action does not involve technical standards. Therefore, EPA did not consider the use of any voluntary consensus standards. J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations Executive Order 12898 (59 FR 7629, February 16, 1994) establishes Federal executive policy on environmental justice. Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States. EPA has determined that this final rule will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations because it does not affect the level of protection provided to human health or the environment. The clarifications and corrections in this final rule do not change the level of control required by the NESHAP. K. Congressional Review Act The Congressional Review Act, 5 U.S.C. 801, *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of Congress and to the Comptroller General of the United States. EPA will submit a report containing these final rule amendments and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the final rule amendments in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). This final rule will be effective on June 24, 2008. List of Subjects in 40 CFR Part 63 Environmental protection, Air pollution control, Hazardous substances, Reporting and recordkeeping requirements. Dated: March 20, 2008. Stephen L. Johnson, Administrator. For the reasons stated in the preamble, title 40, chapter I, part 63 of the Code of Federal Regulations is amended as follows: PART 63—[AMENDED] 1. The authority citation for part 63 continues to read as follows: Authority: 42 U.S.C. 7401 *et seq.* Subpart LLLLLL—[Amended] 2. Section 63.11399 is amended by revising the second sentence in paragraph

(a)to read as follows: § 63.11399 Who implements and enforces this subpart?

(a)* * * If the U.S. EPA Administrator has delegated authority to a State, local, or Tribal agency pursuant to 40 CFR part 63, subpart E, then that Agency has the authority to implement and enforce this subpart. * * * Subpart MMMMMM—[Amended] 3. Section 63.11406 is amended by revising the second sentence in paragraph

(a)to read as follows: § 63.11406 Who implements and enforces this subpart?

(a)* * * If the U.S. EPA Administrator has delegated authority to a State, local, or tribal agency pursuant to 40 CFR part 63, subpart E, then that Agency has the authority to implement and enforce this subpart. * * * Subpart NNNNNN—[Amended] 4. Section 63.11410 is amended by revising paragraph (c)(3)(iii) to read as follows: § 63.11410 What are the compliance requirements?

(c)* * *

(3)* * *

(iii)You must conduct inspections of the interior of the electrostatic precipitator to determine the condition and integrity of corona wires, collection plates, plate wash spray heads, hopper, and air diffuser plates every 24 months. If an initial inspection is not required by paragraph (b)(3) of this section, the first inspection must not be more than 24 months from the last inspection. 5. Section 63.11413 is amended by revising the second sentence in paragraph

(a)to read as follows: § 63.11413 Who implements and enforces this subpart?

(a)* * * If the U.S. EPA Administrator has delegated authority to a State, local, or tribal agency pursuant to 40 CFR part 63, subpart E, then that Agency has the authority to implement and enforce this subpart. * * * Subpart OOOOOO—[Amended] 6. Section 63.11416 is amended by revising paragraph (b)(1) to read as follows: § 63.11416 What are the standards for new and existing sources?

(b)* * *

(1)Comply with § 63.1293(a) or

(b)of subpart III, except that you must use Equation 1 of this section to determine the HAP auxiliary blowing agent

(ABA)formulation limit for each foam grade instead of Equation 3 of § 63.1297 of subpart III. You must use zero as the formulation limitation for any grade of foam where the result of the formulation equation (using Equation 1 of this section) is negative ( *i.e.* , less than zero): ER26MR08.001 Where: ABA limit = HAP ABA formulation limitation, parts methylene chloride ABA allowed per hundred parts polyol (pph). IFD = Indentation force deflection, pounds. DEN = Density, pounds per cubic foot. 7. Section 63.11417 is amended by revising the second sentence in paragraph (b)(2) to read as follows: § 63.11417 What are the compliance requirements for new and existing sources?

(b)* * *

(2)* * * The report must contain this certification of compliance, signed by a responsible official, for the standards in § 63.11416(b)(2): “This facility uses no material containing methylene chloride for any purpose on any slabstock flexible foam process.” 8. Section 63.11420 is amended by revising the second sentence in paragraph

(a)to read as follows: § 63.11420 Who implements and enforces this subpart?

(a)* * * If the U.S. EPA Administrator has delegated authority to a State, local, or tribal agency pursuant to 40 CFR part 63, subpart E, then that Agency has the authority to implement and enforce this subpart. * * * 9. The introductory text preceding Table 1 to Subpart OOOOOO is removed and introductory text is added after the table heading to read as follows: Table 1 to Subpart OOOOOO of Part 63—Applicability of General Provisions to Subpart OOOOOO As required in § 63.11418, sources subject to § 63.11416(b)(1) must comply with the requirements of the NESHAP General Provisions (40 CFR part 63, subpart A) as shown in the following table. Subpart PPPPPP—[Amended] 10. Section 63.11423 is amended by revising paragraphs (c)(1) and

(2)to read as follows: § 63.11423 What are the standards and compliance requirements for new and existing sources?

(c)* * *

(1)Existing sources are not required to conduct a performance test if a prior performance test was conducted using the same methods specified in 40 CFR 60.374 and either no process changes have been made since the test, or you can demonstrate that the results of the performance test, with or without adjustments, reliably demonstrate compliance with this subpart despite process changes.

(2)Sources without a prior performance test, as described in paragraph (c)(1) of this section, must conduct a performance test using the methods specified in 40 CFR 60.374 by 180 days after the compliance date. 11. Section 63.11425 is amended by revising paragraph

(c)to read as follows: § 63.11425 What General Provisions apply to this subpart?

(c)For existing sources, the initial notification of compliance required by § 63.9(h) must be submitted not later than March 13, 2009. 12. The introductory text to § 63.11426 is revised to read as follows: § 63.11426 What definitions apply to this subpart? The terms used in this subpart are defined in the CAA; 40 CFR 60.371; 40 CFR 60.2 for terms used in the applicable provisions of 40 CFR part 60, subpart A; and § 63.2 for terms used in the applicable provisions of 40 CFR part 63, subpart A. 13. Section 63.11427 is amended by: a. Revising the second sentence in paragraph (a); b. Revising the first sentence in paragraph (b)(2); c. Revising the first sentence in paragraph (b)(3); and d. Revising the first sentence in paragraph (b)(4) to read as follows: § 63.11427 Who implements and enforces this subpart?

(b)* * *

(2)Approval of a major change to test methods under § 63.7(e)(2)(ii) and (f). * * *

(3)Approval of a major change to monitoring under § 63.8(f). * * *

(4)Approval of a major change to recordkeeping/reporting under § 63.10(f). * * * 14. Table 1 to Subpart PPPPPP of Part 63 is amended by removing the introductory text preceding the table and by adding introductory text after the table heading; and revising the entry for § 63.9 to read as follows: Table 1 to Subpart PPPPPP of Part 63—Applicability of General Provisions to Subpart PPPPPP As required in § 63.11425, you must comply with the requirements of the NESHAP General Provisions (40 CFR part 63, subpart A) as shown in the following table. Citation Subject Applies to subpart PPPPPP? Explanation * * * * * * * 63.9 Notification Requirements Yes * * * * * * * Subpart QQQQQQ—[Amended] 15. Section 63.11432 is amended by revising the first sentence in paragraph

(b)introductory text to read as follows: § 63.11432 What General Provisions apply to this subpart?

(b)If you own or operate a new or existing affected source that uses any wood preservative containing chromium, arsenic, dioxins, or methylene chloride, you must submit an initial notification of applicability required by § 63.9(b)(2) no later than 90 days after the applicable compliance date specified in § 63.11429. * * * 16. Section 63.11434 is amended by revising the second sentence in paragraph

(a)to read as follows: § 63.11434 Who implements and enforces this subpart?

(a)* * * If the U.S. EPA Administrator has delegated authority to a State, local, or tribal agency pursuant to 40 CFR part 63, subpart E, then that Agency has the authority to implement and enforce this subpart. * * * 17. Table 1 to Subpart QQQQQQ of Part 63 is amended by removing the introductory text preceding the table and adding introductory text after the table heading; and revising the entry, “63.6(e)(3)(i), (e)(3)(iii)-(e)(3)(ix), (f), (g), (h)(1), (h)(2), (h)(4), (h)(5)(i)-(h)(5)(iii), (h)(v)(v), (h)(6)-(h)(9)” to read as follows: Table 1 to Subpart QQQQQQ of Part 63-Applicability of General Provisions to Subpart QQQQQQ As required in § 63.11432, you must comply with the requirements of the NESHAP General Provisions (40 CFR part 63, subpart A) as shown in the following table. Citation Subject Applies to subpart QQQQQQ? Explanation * * * * * * * 63.6(e)(3)(i), (e)(3)(iii)-(e)(3)(ix), (f), (g), (h)(1), (h)(2), (h)(4), (h)(5)(i)-(h)(5)(iii), (h)(5)(v), (h)(6)-(h)(9) No Subpart QQQQQQ does not require a startup, shutdown, and malfunction plan or contain emission or opacity limits. * * * * * * * [FR Doc. E8-6184 Filed 3-25-08; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 180 [EPA-HQ-OPP-2007-0107; FRL-8356-2] Myclobutanil; Pesticide Tolerance AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: This regulation establishes tolerances for combined residues of myclobutanil and its alcohol metabolite in or on artichoke, globe; black sapote; canistel; cilantro, leaves; leafy greens, subgroup 4A, except spinach; mamey sapote; mango; okra; papaya; sapodilla; star apple; and fruiting vegetable group 8, except tomato. Interregional Research Project Number 4 (IR-4) requested these tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA). EPA is also deleting several established myclobutanil tolerances that are no longer needed. DATES: This regulation is effective March 26, 2008. Objections and requests for hearings must be received on or before May 27, 2008, and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION ) . ADDRESSES: EPA has established a docket for this action under docket identification

(ID)number EPA-HQ-OPP-2007-0107. To access the electronic docket, go to *http://www.regulations.gov* , select “Advanced Search,” then “Docket Search.” Insert the docket ID number where indicated and select the “Submit” button. Follow the instructions on the regulations.gov website to view the docket index or access available documents. All documents in the docket are listed in the docket index available in regulations.gov. Although listed in the index, some information is not publicly available, e.g., Confidential Business Information

(CBI)or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available in the electronic docket at *http://www.regulations.gov* , or, if only available in hard copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The Docket Facility is open from 8:30 a.m. to 4 p.m., Monday through Friday, excluding legal holidays. The Docket Facility telephone number is

(703)305-5805. FOR FURTHER INFORMATION CONTACT: Barbara Madden, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001; telephone number:

(703)305-6463; e-mail address: *madden.barbara@epa.gov* . SUPPLEMENTARY INFORMATION: I. General Information A. Does this Action Apply to Me? You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. Potentially affected entities may include, but are not limited to those engaged in the following activities: • Crop production (NAICS code 111), e.g., agricultural workers; greenhouse, nursery, and floriculture workers; farmers. • Animal production (NAICS code 112), e.g., cattle ranchers and farmers, dairy cattle farmers, livestock farmers. • Food manufacturing (NAICS code 311), e.g., agricultural workers; farmers; greenhouse, nursery, and floriculture workers; ranchers; pesticide applicators. • Pesticide manufacturing (NAICS code 32532), e.g., agricultural workers; commercial applicators; farmers; greenhouse, nursery, and floriculture workers; residential users. This listing is not intended to be exhaustive, but rather to provide a guide for readers regarding entities likely to be affected by this action. Other types of entities not listed in this unit could also be affected. The North American Industrial Classification System (NAICS) codes have been provided to assist you and others in determining whether this action might apply to certain entities. If you have any questions regarding the applicability of this action to a particular entity, consult the person listed under FOR FURTHER INFORMATION CONTACT . B. How Can I Access Electronic Copies of this Document? In addition to accessing an electronic copy of this **Federal Register** document through the electronic docket at *http://www.regulations.gov* , you may access this **Federal Register** document electronically through the EPA Internet under the “ **Federal Register** ” listings at *http://www.epa.gov/fedrgstr* . You may also access a frequently updated electronic version of EPA's tolerance regulations at 40 CFR part 180 through the Government Printing Office's pilot e-CFR site at *http://www.gpoaccess.gov/ecfr* . C. Can I File an Objection or Hearing Request? Under section 408(g) of FFDCA, any person may file an objection to any aspect of this regulation and may also request a hearing on those objections. You must file your objection or request a hearing on this regulation in accordance with the instructions provided in 40 CFR part 178. To ensure proper receipt by EPA, you must identify docket ID number EPA-HQ-OPP-2007-0107 in the subject line on the first page of your submission. All requests must be in writing, and must be mailed or delivered to the Hearing Clerk as required by 40 CFR part 178 on or before May 27, 2008. In addition to filing an objection or hearing request with the Hearing Clerk as described in 40 CFR part 178, please submit a copy of the filing that does not contain any CBI for inclusion in the public docket that is described in ADDRESSES . Information not marked confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior notice. Submit this copy, identified by docket ID number EPA-HQ-OPP-2007-0107, by one of the following methods: • *Federal eRulemaking Portal* : *http://www.regulations.gov* . Follow the on-line instructions for submitting comments. • *Mail* : Office of Pesticide Programs

(OPP)Regulatory Public Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001. • *Delivery* : OPP Regulatory Public Docket (7502P), Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only accepted during the Docket's normal hours of operation (8:30 a.m. to 4 p.m., Monday through Friday, excluding legal holidays). Special arrangements should be made for deliveries of boxed information. The Docket Facility telephone number is

(703)305-5805. II. Petition for Tolerance In the **Federal Register** of April 4, 2007 (72 FR 16352) (FRL-8119-2), EPA issued a notice pursuant to section 408(d)(3) of FFDCA, 21 U.S.C. 346a(d)(3), announcing the filing of pesticide petitions (PP 3E6562 and 6E7138) by IR-4, 500 College Road East, Suite 201 W, Princeton, NJ 08540. These petitions requested that 40 CFR 180.443 be amended by establishing tolerances for combined residues of the fungicide myclobutanil alpha-butyl-alpha-(4-chlorophenyl)-1 *H* -1,2,4-triazole-1-propanenitrile and its alcohol metabolite (alpha-(3-hydroxybutyl)-alpha-(4-chlorophenyl)-1 *H* -1,2,4-triazole-1-propanenitrile (free and bound), in or on Black sapote, canistel, mamey sapote, mango, papaya, sapodilla, and star apple at 3.0 parts per million

(ppm)(PP 3E6562); and Fruiting vegetables, crop group 8, except tomato at 4.5 ppm; leafy vegetables, crop subgroup 4A, except spinach at 11.0 ppm; globe artichoke at 0.9 ppm; cilantro at 11.0 ppm; and okra at 4.5 ppm in (PP 6E7138). That notice referenced a summary of the petition prepared by Dow Agrosciences LLC, the registrant, which is available to the public in the docket, *http://www.regulations.gov* . There were no comments received in response to the notice of filing. Based upon review of the data supporting the petition, EPA has revised some of the commodity definitions and tolerance levels for certain commodities. The reason for these changes is explained in Unit IV.C. EPA is also deleting several established tolerances in § 180.443(b) that are no longer needed. The tolerance deletions under § 180.443(b) are time-limited tolerances established under section 18 emergency exemptions. The time-limited tolerances for artichoke, globe and pepper are superceded by the establishment of general tolerances for myclobutanil and its alcohol metabolite under § 180.443(a) as a result of this action. The time-limited tolerances for sugar beet dried pulp, sugar molassess, refined sugar, roots, and tops are being deleted since they have expired. III. Aggregate Risk Assessment and Determination of Safety Section 408(b)(2)(A)(i) of FFDCA allows EPA to establish a tolerance (the legal limit for a pesticide chemical residue in or on a food) only if EPA determines that the tolerance is “safe.” Section 408(b)(2)(A)(ii) of FFDCA defines “safe” to mean that “there is a reasonable certainty that no harm will result from aggregate exposure to the pesticide chemical residue, including all anticipated dietary exposures and all other exposures for which there is reliable information.” This includes exposure through drinking water and in residential settings, but does not include occupational exposure. Section 408(b)(2)(C) of FFDCA requires EPA to give special consideration to exposure of infants and children to the pesticide chemical residue in establishing a tolerance and to “ensure that there is a reasonable certainty that no harm will result to infants and children from aggregate exposure to the pesticide chemical residue....” These provisions were added to FFDCA by the Food Quality Protection Act

(FQPA)of 1996. Consistent with FFDCA section 408(b)(2)(D), and the factors specified in FFDCA section 408(b)(2)(D), EPA has reviewed the available scientific data and other relevant information in support of this action. EPA has sufficient data to assess the hazards of and to make a determination on aggregate exposure for the petitioned-for tolerance for combined residues of myclobutanil and its alcohol metabolite on artichoke, globe at 0.90 ppm; canistel at 3.0 ppm; cilantro, leaves at 9.0 ppm; leafy greens, crop subgroup 4A, except spinach at 9.0 ppm; mango at 3.0 ppm; okra at 4.0 ppm; papaya at 3.0 ppm; sapodilla at 3.0 ppm; sapote, black at 3.0 ppm; sapote, mamey at 3.0 ppm; star apple at 3.0 ppm; and vegetable, fruiting, group 8, except tomato at 4.0 ppm. EPA's assessment of exposures and risks associated with establishing the tolerance follows. A. Toxicological Profile EPA has evaluated the available toxicity data and considered its validity, completeness, and reliability as well as the relationship of the results of the studies to human risk. EPA has also considered available information concerning the variability of the sensitivities of major identifiable subgroups of consumers, including infants and children. Myclobutanil has low acute toxicity with the exception for ocular irritation. In rat subchronic and chronic toxicity studies, the primary target organs are liver and testes. Liver effects, following subchronic exposure, include hypertrophy, hepatocellular necrosis and increased liver weight. Chronic exposure to the rat also results in hepatocellular vacuolization and additional testicular effects, which include bilateral aspermatogenesis, increased incidences of hypospermia and cellular debris in the epididymides and increased incidences of arteritis/periarteritis in the testes. With the exception of testicular effects, subchronic and chronic exposures in the mouse result in a toxicity profile similar to the rat. The mouse, following chronic exposure, has, in addition, increased Kupffer cell pigmentation, periportal punctate vacuolation, and individual cell necrosis of the liver. There is no evidence of carcinogenic potential in either the rat or mouse. In the subchronic dog study, there are hepatocellular hypertrophy, increased relative and absolute liver weight and increased alkaline phosphatase. In the chronic dog study, liver toxicity is similar with the addition of “ballooned” hepatocytes and increases in serum glutamic pyruvic transaminase

(SGPT)and gamma glutamyl transferase (GGT). Signs of toxicity observed in the rat 28-day dermal studies are limited to dermal irritation. There is no evidence of systemic toxicity in either study. There is no evidence of increased susceptibility in either of the developmental toxicity studies or the reproduction study. There is no concern for mutagenic activity. Myclobutanil was determined to be not carcinogenic in two acceptable animal studies. Specific information on the studies received and the nature of the adverse effects caused by myclobutanil as well as the no-observed-adverse-effect-level (NOAEL) and the lowest-observed-adverse-effect-level (LOAEL) from the toxicity studies are discussed in the final rule published in the **Federal Register** of May 10, 2000 (65 FR 29963) (FRL-6555-5) ( *http://www.epa.gov/fedrgstr/EPA-PEST/2000/May/Day-10/p11571.htm* ). B. Toxicological Endpoints For hazards that have a threshold below which there is no appreciable risk, the toxicological level of concern

(LOC)is derived from the highest dose at which no adverse effects are observed (the NOAEL) in the toxicology study identified as appropriate for use in risk assessment. However, if a NOAEL cannot be determined, the lowest dose at which adverse effects of concern are identified (the LOAEL) is sometimes used for risk assessment. Uncertainty/safety factors

(UFs)are used in conjunction with the LOC to take into account uncertainties inherent in the extrapolation from laboratory animal data to humans and in the variations in sensitivity among members of the human population as well as other unknowns. Safety is assessed for acute and chronic risks by comparing aggregate exposure to the pesticide to the acute population adjusted dose

(aPAD)and chronic population adjusted dose (cPAD). The aPAD and cPAD are calculated by dividing the LOC by all applicable UFs. Short-, intermediate-, and long-term risks are evaluated by comparing aggregate exposure to the LOC to ensure that the margin of exposure

(MOE)called for by the product of all applicable UFs is not exceeded. For non-threshold risks, the Agency assumes that any amount of exposure will lead to some degree of risk and estimates risk in terms of the probability of occurrence of additional adverse cases. Generally, cancer risks are considered non-threshold. For more information on the general principles EPA uses in risk characterization and a complete description of the risk assessment process, see *http://www.epa.gov/fedrgstr/EPA-PEST/1997/November/Day-26/p30948.htm* . A summary of the toxicological endpoints for myclobutanil used for human risk assessment can be found at *http://www.regulations.gov* in document Myclobutanil. Human-Health Risk Assessment for Proposed Use on Section 3 Requests for Use on Snap Bean, Mint, Papaya, Gooseberry, Currant, Caneberry, Bell and Non-Bell Pepper, Head and Leaf Lettuce, and Artichoke at page 7 in docket ID number EPA-HQ-OPP-2007-0107. C. Exposure Assessment 1. *Dietary exposure from food and feed uses* . In evaluating dietary exposure to myclobutanil, EPA considered exposure under the petitioned-for tolerances as well as all existing myclobutanil tolerances in 40 CFR 180.443. EPA assessed dietary exposures from myclobutanil food as follows: i. *Acute exposure* . Quantitative acute dietary exposure and risk assessments are performed for a food-use pesticide, if a toxicological study has indicated the possibility of an effect of concern occurring as a result of a 1-day or single exposure. An acute dietary exposure assessment was performed for females 13 to 49 years old. No acute endpoint was identified for the general U.S. population or any other population subgroup. In estimating acute dietary exposure, EPA used food consumption information from the U.S. Department of Agriculture

(USDA)1994-1996 Nationwide Continuing Surveys of Food Intake by Individuals (CSFII). As to residue levels in food, EPA assumed all foods for which there are tolerances were treated and contain tolerance-level residues. ii. *Chronic exposure* . In conducting the chronic dietary exposure assessment EPA used the food consumption data from the USDA 1994-1996 and 1998 CSFII. As to residue levels in food, EPA used USDA Pesticide Data Program

(PDP)monitoring data for apple juice, bananas (not plantains) and milk. Tolerance level residues were used for all other registered and proposed uses. Average percent cropped treated

(PCT)information was used for some commodities and 100 PCT information was used for all other registered and proposed uses. iii. *Cancer* . Based on the results of carcinogenicity studies in rats and mice, myclobutanil has been classified as “Not likely to be carcinogenic to humans.” Consequently, a quantitative cancer exposure and risk assessment is not appropriate for myclobutanil. iv. *Anticipated residue and percent crop treated

(PCT)information* . Section 408(b)(2)(E) of FFDCA authorizes EPA to use available data and information on the anticipated residue levels of pesticide residues in food and the actual levels of pesticide residues that have been measured in food. If EPA relies on such information, EPA must pursuant to FFDCA section 408(f)(1) require that data be provided 5 years after the tolerance is established, modified, or left in effect, demonstrating that the levels in food are not above the levels anticipated. For the present action, EPA will issue such data call-ins as are required by FFDCA section 408(b)(2)(E) and authorized under FFDCA section 408(f)(1). Data will be required to be submitted no later than 5 years from the date of issuance of this tolerance. Section 408(b)(2)(F) of FFDCA states that the Agency may use data on the actual percent of food treated for assessing chronic dietary risk only if: a. The data used are reliable and provide a valid basis to show what percentage of the food derived from such crop is likely to contain such pesticide residue. b. The exposure estimate does not underestimate exposure for any significant subpopulation group. c. Data are available on pesticide use and food consumption in a particular area, the exposure estimate does not understate exposure for the population in such area. In addition, the Agency must provide for periodic evaluation of any estimates used. To provide for the periodic evaluation of the estimate of PCT as required by FFDCA section 408(b)(2)(F), EPA may require registrants to submit data on PCT. The Agency used PCT information as follows: 40% apples (except juice); 15% almonds; 25% apricots; 55% artichokes; 5% asparagus; 1% green beans; 15% blackberries; 1% broccoli; 10% cantaloupes; 5% cauliflower; 35% cherries; 1% cucumber; 25% grapes; 65% hops; 1% mint; 10% nectarines; 10% peaches; 10% plums; 15% pumpkins; 25 % raspberries; 1% soybeans; 10% squash; 35% strawberries; 1% sugar beets; 5% tomatoes; and 5% watermelons. The Agency used projected percent crop treated

(PPCT)information for peppers estimating 46% of peppers are treated. EPA estimates PPCT for myclobutanil use on peppers by assuming that the PCT during the pesticide's initial 5 years of use on a specific use site will not exceed the average PCT of the dominant pesticide (i.e., the one with the greatest PCT) on that site over the three most recent surveys. Comparisons are only made among pesticides of the same pesticide types (i.e., the dominant insecticide on the use site is selected for comparison with a new insecticide). The PCTs included in the average may be each for the same pesticide or for different pesticides since the same or different pesticides may dominate for each year selected. Typically, EPA uses USDA/NASS as the source for raw PCT data because it is publicly available and does not have to be calculated from available data sources. When a specific use site is not surveyed by USDA/NASS, EPA uses proprietary data and calculates the estimated PCT. This estimated PPCT, based on the average PCT of the market leader is appropriate for use in the chronic dietary risk assessment. This method of estimating a PPCT for a new use of a registered pesticide or a new pesticide produces a high-end estimate that is unlikely, in most cases, to be exceeded during the initial 5 years of actual use. The predominant factors that bears on whether the estimated PPCT could be exceeded are whether the new pesticide use is more efficacious or controls a broader spectrum of pests than the dominant pesticides, whether there are concerns with pest pressures as indicated in emergency exemption requests or other readily available information, and whether the pathogenicity of the pest is prevalent in other states. All information currently available has been considered for myclobutanil, and it is the opinion of EPA that it is unlikely that actual PCT for myclobutanil will exceed the estimated PPCT during the next 5 years. The Agency believes that the three conditions listed in Unit III.C.1.vi. have been met. With respect to Condition a, PCT estimates are derived from Federal and private market survey data, which are reliable and have a valid basis. The Agency is reasonably certain that the percentage of the food treated is not likely to be an underestimation. As to Conditions b and c, regional consumption information and consumption information for significant subpopulations is taken into account through EPA's computer-based model for evaluating the exposure of significant subpopulations including several regional groups. Use of this consumption information in EPA's risk assessment process ensures that EPA's exposure estimate does not understate exposure for any significant subpopulation group and allows the Agency to be reasonably certain that no regional population is exposed to residue levels higher than those estimated by the Agency. Other than the data available through national food consumption surveys, EPA does not have available information on the regional consumption of food to which myclobutanil may be applied in a particular area. 2. *Dietary exposure from drinking water* . The Agency lacks sufficient monitoring data to complete a comprehensive dietary exposure analysis and risk assessment for myclobutanil in drinking water. Because the Agency does not have comprehensive monitoring data, drinking water concentration estimates are made by reliance on simulation or modeling taking into account data on the environmental fate characteristics of myclobutanil. Further information regarding EPA drinking water models used in pesticide exposure assessment can be found at *http://www.epa.gov/oppefed1/models/water/index.htm* . Based on the First Index Reservoir Screening Tool (FIRST) and Screening Concentration in Ground Water (SCI-GROW) models, the estimated drinking water concentrations (EDWCs) of myclobutanil for acute exposures are estimated to be 120.1 parts per billion

(ppb)for surface water and 2.83 ppb for ground water. The estimated environmental concentrations for chronic exposures are estimated to be 46.3 ppb for surface water and 2.83 ppb for ground water. Modeled estimates of drinking water concentrations were directly entered into the dietary exposure model. For acute dietary risk assessment, the water concentration value of 120.1 ppb was used to access the contribution to drinking water. For chronic dietary risk assessment, the water concentration value of 46.3 ppb was used to access the contribution to drinking water. 3. *From non-dietary exposure* . The term “residential exposure” is used in this document to refer to non-occupational, non-dietary exposure (e.g., for lawn and garden pest control, indoor pest control, termiticides, and flea and tick control on pets). Myclobutanil is currently registered for use on the following residential non-dietary sites: turf, ornamentals, and home garden uses on vegetables, fruit trees, nut trees, berries and mint. The risk assessment was conducted using the following residential exposure assumptions: For adults, there is potential for short-term dermal and inhalation handler exposure, and short-term dermal post-application exposures from the residential uses of myclobutanil, including “pick your own” orchards, home fruit and vegetable gardens, and treated turf. Since myclobutanil is applied at 7- to 14-day intervals, only short-term exposure is expected for the residential handler. For children/toddlers, short-term dermal and non-dietary oral post-application exposures may result from dermal contact with treated turf as well as non-dietary ingestion/hand-to-mouth transfer of residues from turf grass. Intermediate-term post-application exposures may result for adults from dermal contact with treated fruits and vegetables at “pick your own” gardens, treated home fruit and vegetable gardens and treated turf. For toddlers, intermediate-term dermal and non-dietary oral post-application exposures may result from dermal contact with treated turf as well as non-dietary ingestion/hand-to-mouth transfer of residues from turf grass. Based on the current use patterns, no chronic residential exposures are expected. The current use patterns and labeling indicate that a variety of application equipment could be used by the homeowner to apply myclobutanil to ornamental plants, shrubs, fruit trees, home garden vegetables and lawns. Therefore, the following scenarios were assessed: i. Aerosol spray can application to ornamentals and fruit trees; ii. Hose end sprayer application to ornamentals and fruit trees; iii. Low-pressure

(LP)handwand application to ornamentals; iv. LP handwand application to vegetables; v. Ready to use

(RTU)sprayer application to vegetables; vi. Hose end sprayer application to vegetables; vii. Hose end sprayer - mix your own - application to turf; viii. Hose end sprayer - ready to use - application to turf; ix. Belly grinder application to turf; x. Broadcast spreader application to turf. Unit exposure data were either taken from Pesticide Handler's Exposure Database

(PHED)study data or from the home garden and turf application studies that were sponsored by the Outdoor Residential Exposure Task Force (ORETF). Home garden post-application exposures can occur when home gardeners perform tasks such as weeding, pruning or hand harvesting following application of myclobutanil. In order to address these risks, the post-application exposure to home gardens and orchard scenarios were assessed based upon the Residential Standard Operating Procedures

(SOP)3.0 for Garden Plants and SOP 4.0 for Trees. Two dislodgeable foliar residue

(DFR)studies on grapes in California were used to assess the home garden exposures. The studies were performed using airblast sprayers while the proposed home garden applications would be made with LP handwand or hose end sprayers. Based upon experience with other fungicides, however, it is anticipated that DFRs resulting from handwand applications would be similar to DFRs from airblast applications. The initial DFR was assumed to be 23% of the application rate. “Pick your own” exposures can occur at commercially operated “pick your own” strawberry farms and orchards where myclobutanil has been applied. To address these risks, post-application exposure for pick your own strawberries and tree fruit were assessed based upon the Residential SOP 15.0 for “pick your own” strawberries. The DFR data that were used for the home gardener post-application risks were also used to assess “pick your own” exposures. The exposure estimates used for pick your own exposures are considered conservative because that scenario is based upon a screening-level transfer coefficient

(TC)and a dermal absorption factor of 50%. The following exposure scenarios were assessed for residential post-application risks: • Toddlers playing on treated turf; • Adults performing yard work on treated turf; • Adults playing golf on treated turf. A total radioactive residue

(TTR)study was used to assess the turf exposures. The field portion of this study was in North Carolina and California. The initial TTR for dermal exposures was assumed to be 2.4% of the application rate and was based upon an average of the days after treatment

(DAT)of 0 and DAT of 3 for the California site. The maximum application rate for turf of 0.62 to 0.68 lb active ingredient/Acre was use to assess the turf exposures. Additional information on residential exposure assumptions can be found at *http://www.regulations.gov* in the document “Myclobutanil. Human-Health Risk Assessment for Proposed Use on Section 3 Requests for Use on Snap Bean, Mint, Papaya, Gooseberry, Currant, Caneberry, Bell and Non-Bell Pepper, Head and Leaf Lettuce, and Artichoke,” in docket ID number EPA-HQ-OPP-2007-0107. 4. *Cumulative effects from substances with a common mechanism of toxicity* . Section 408(b)(2)(D)(v) of FFDCA requires that, when considering whether to establish, modify, or revoke a tolerance, the Agency consider “available information” concerning the cumulative effects of a particular pesticide's residues and “other substances that have a common mechanism of toxicity.” Myclobutanil is a member of the triazole-containing class of pesticides. Although conazoles act similarly in plants (fungi) by inhibiting ergosterol biosynthesis, there is not necessarily a relationship between their pesticidal activity and their mechanism of toxicity in mammals. Structural similarities do not constitute a common mechanism of toxicity. Evidence is needed to establish that the chemicals operate by the same, or essentially the same, sequence of major biochemical events. In conazoles, however, a variable pattern of toxicological responses is found. Some are hepatotoxic and hepatocarcinogenic in mice. Some induce thyroid tumors in rats. Some induce developmental, reproductive, and neurological effects in rodents. Furthermore, the conazoles produce a diverse range of biochemical events, including altered cholesterol levels, stress responses, and altered DNA methylation. It is not clearly understood whether these biochemical events are directly connected to their toxicological outcomes. Thus, there is currently no evidence to indicate that conazoles share common mechanisms of toxicity and EPA is not following a cumulative risk approach based on a common mechanism of toxicity for the conazoles. For information regarding EPA's procedures for cumulating effects from substances found to have a common mechanism of toxicity, see EPA's website at *http://www.epa.gov/pesticides/cumulative* . Myclobutanil is a triazole-derived pesticide. This class of compounds can form the common metabolite 1,2,4-triazole and two triazole conjugates (triazole alanine and triazole acetic acid). To support existing tolerances and to establish new tolerances for triazole-derivative pesticides, including myclobutanil, EPA conducted a human health risk assessment for exposure to 1,2,4-triazole, triazole alanine, and triazole acetic acid resulting from the use of all current and pending uses of any triazole-derived fungicide. The risk assessment is a highly conservative, screening-level evaluation in terms of hazards associated with common metabolites (e.g., use of a maximum combination of uncertainty factors) and potential dietary and non-dietary exposures (i.e., high end estimates of both dietary and non-dietary exposures). In addition, the Agency retained the additional 10X FQPA safety factor for the protection of infants and children. The assessment includes evaluations of risks for various subgroups, including those comprised of infants and children. The Agency's complete risk assessment is found in the propiconazole reregistration docket at *http://www.regulations.gov* (Docket ID EPA-HQ-OPP-2005-0497). Additional information regarding the uses proposed for myclobutanil in this action can also be found at *http://www.regulations.gov* in the following documents: 1,2,4 Triazole Revised Chronic and Acute Aggregate Dietary Exposure Assessments to Include for New Uses of Myclobutanil on Snap Bean, Mint, Papaya, Gooseberry, Currant, Caneberry, Bell and Non-Bell Pepper, Head and Leaf Lettuce, and Artichoke, and Triazole Alanine and Triazole Acetic Acid Revised Chronic and Acute Aggregate Dietary Exposure Assessments for New Uses of Myclobutanil on Snap Bean, Mint, Papaya, Gooseberry, Currant, Caneberry, Bell and Non-Bell Pepper, Head and Leaf Lettuce, and Artichoke in docket ID number EPA-HQ-OPP-2007-0107. D. Safety Factor for Infants and Children 1. * In general* . Section 408 of FFDCA provides that EPA shall apply an additional (“10X”) tenfold margin of safety for infants and children in the case of threshold effects to account for prenatal and postnatal toxicity and the completeness of the database on toxicity and exposure unless EPA determines based on reliable data that a different margin of safety will be safe for infants and children. This additional margin of safety is commonly referred to as the FQPA safety factor. In applying this provision, EPA either retains the default value of 10X when reliable data do not support the choice of a different factor, or, if reliable data are available, EPA uses a different additional FQPA safety factor value based on the use of traditional UFs and/or special FQPA safety factors, as appropriate. 2. *Prenatal and postnatal sensitivity* . There is no indication of quantitative or qualitative increased susceptibility in rats or rabbits from *in utero* and/or postnatal exposure to myclobutanil. In the rat developmental toxicity study, maternal toxicity, which included rough hair coat and salivation, alopecia, desquamation and red exudate around mouth occurs at the same dose level as increases in incidences of 14th rudimentary and 7th cervical ribs in the fetuses. The maternal and developmental toxicity NOAELs in the rat developmental toxicity study were 93.8 mg/kg/day. EPA concludes that there is no evidence qualitative susceptibility in rat developmental toxicity study since the fetal variations (14th rudimentary ribs and 7th cervical ribs) are normal occurance control animals that occurred in the presence of severe maternal toxicity (red exudate around mouth and salivation). In the rabbit developmental toxicity study there is reduced body weight and body weight gain during the dosing period, clinical signs of toxicity such as bloody urine and bloody urogenital or anal area and a possible increase in abortions (blood and/or aborted material in the cage pan) in the does at the same dose level as developmental toxicity manifested as increased resorptions, decreased litter size and decreased viability index. The maternal and developmental toxicity NOAELs in the rabbit developmental toxicity study were 93.8 mg/kg/day. EPA concludes that there is no evidence qualitative susceptibility in rabbit developmental toxicity study since the fetal effects (resorptions, decreased litter size and viability) occurred in the presence of equally severe maternal toxicity (abortions, bloody urine and bloody urogenital or anal area).The maternal NOAEL in the 2-generation reproduction study was 50 ppm (2.5 mg/kg/day) based on hepatocellular hypertrophy and increased liver weight seen at 200 ppm (10 mg/kg/day; LOAEL). The offspring toxicity NOAEL was 200 ppm (10 mg/kg/day) based on decreased pup body weight gain during lactation seen at 1,000 ppm (50 mg/kg/day; LOAEL). The reproductive toxicity NOAEL was 200 ppm (10 mg/kg/day) based on increased incidences in the number of still born pups and atrophy of the testes, epididymides and prostate observed at 1,000 ppm (50 mg/kg/day; LOAEL). EPA concludes that there is no evidence on increased susceptibility (qualitative or quantitative) in the 2-generation reproduction study in rats because the offspring and reproductive toxicity were observed at a higher dose than the dose that caused maternal toxicity. 3. *Conclusion* . EPA has determined that reliable data show that it would be safe for infants and children to reduce the FQPA safety factor to 1X. That decision is based on the following findings: i. The toxicity database for myclobutanil is complete. ii. There is no indication that myclobutanil is a neurotoxic chemical and there is no need for a developmental neurotoxicity study or additional UFs to account for neurotoxicity. iii. There is no evidence that myclobutanil results in increased susceptibility in *in utero* rats or rabbits in the prenatal developmental studies or in young rats in the 2-generation reproduction study. iv. There are no residual uncertainties identified in the exposure databases. The acute dietary food exposure assessment (females 13 to 49 years old only) utilizes existing and proposed tolerance level residues and 100 PCT information for all commodities. The chronic dietary food exposure assessment utilizes existing and proposed tolerance level residues; USDA Pesticide Data Program

(PDP)monitoring data for apple juice, bananas (not plantains) and milk; average PCT data for some commodities and 100 PCT information for all other commodities. The dietary drinking water assessment utilizes water concentration values generated by model and associated modeling parameters, which are designed to provide conservative, health protective, high-end estimates of water concentrations which will not likely be exceeded. Finally, the residential handler assessment is based upon the residential standard operating procedures

(SOPs)and utilized unit exposure data from the Outdoor Residential Exposure Task Force (ORETF) and the Pesticide Handler's Exposure Database (PHED). The residential post-application assessment is based upon chemical-specific turf transferable residue

(TTR)data and DFR data. The chemical-specific study data as well as the surrogate study data used are reliable and also are not expected to underestimate risk to adults as well as to children. In a few cases where chemical-specific data were not available, the SOPs were used alone. The residential SOPs are based upon reasonable “worst-case” assumptions and are not expected to underestimate risk. These assessments of exposure are not likely to underestimate the exposure to myclobutanil. E. Aggregate Risks and Determination of Safety Safety is assessed for acute and chronic risks by comparing aggregate exposure to the pesticide to the acute population adjusted dose

(aPAD)and chronic population adjusted dose (cPAD). The aPAD and cPAD are calculated by dividing the LOC by all applicable UFs. For linear cancer risks, EPA calculates the probability of additional cancer cases given aggregate exposure. Short-, intermediate-, and long-term risks are evaluated by comparing aggregate exposure to the LOC to ensure that the MOE called for by the product of all applicable UFs is not exceeded. 1. *Acute risk* . Using the exposure assumptions discussed in this unit for acute exposure for females 13 to 49 years old (no acute endpoint was identified for the general U.S. population or any other population subgroup), the acute dietary exposure from food and water to myclobutanil will occupy 4% of the aPAD for females 13 to 49 years old. 2. *Chronic risk* . Using the exposure assumptions described in this unit for chronic exposure, EPA has concluded that exposure to myclobutanil from food and water will utilize 30% of the cPAD for children 1 to 2 years old, the subpopulation group with greatest exposure. Based on the use pattern, chronic residential exposure to residues of myclobutanil is not expected. 3. *Short-term risk and Intermediate-term risk* . Short-term and intermediate-term aggregate exposure takes into account residential exposure plus chronic exposure to food and water (considered to be a background exposure level). Myclobutanil is currently registered for uses that could result in short-term and intermediate-term residential exposure and the Agency has determined that it is appropriate to aggregate chronic food and water and short-term exposures for myclobutanil. As discussed in Unit III.C.3., short-term and intermediate-term exposures were assessed for adults and for children/toddlers. A NOAEL (10 mg/kg/day) from a 2-generation reproduction toxicity study in rats was used for assessing short-term and intermediate-term dermal, inhalation and incidental oral exposures; therefore, the short-term and intermediate-term aggregate risk estimates from the post-application exposure scenarios are the same for the general U.S. population and children/toddlers. Using the exposure assumptions described in this unit for short-term and intermediate-term exposures, EPA has concluded that food, water, and residential exposures aggregated result in aggregate MOEs ranging from 110 to 990: 110 for post-application exposures for adults for “pick your own fruit” operations; 120 for post-application exposures for adults to turf, heavy yard work; 130 post-application exposures for children playing on the lawn; 170 for adult handlers; 280 for adult post application exposures to home gardens; and 980 for adult post applications exposures while playing golf. 4. *Aggregate cancer risk for U.S. population* . The Agency has classified myclobutanil as not likely to be a human carcinogen. Myclobutanil was determined to be not carcinogenic in two acceptable animal studies. Myclobutanil is not expected to pose a cancer risk. 5. *Determination of safety* . Based on these risk assessments, EPA concludes that there is a reasonable certainty that no harm will result to the general population or to infants and children from aggregate exposure to myclobutanil residues. IV. Other Considerations A. Analytical Enforcement Methodology Adequate enforcement methodology (gas chromatography/nitrogen-phosphorus detector (GC/NPD) for myclobutanil and gas chromatography/electron-capture detection (GC/ECD) for the alcohol metabolite) is available to enforce the tolerance expression. The methods may be requested from: Chief, Analytical Chemistry Branch, Environmental Science Center, 701 Mapes Rd., Ft. Meade, MD 20755-5350; telephone number:

(410)305-2905; e-mail address: *residuemethods@epa.gov* . B. International Residue Limits There are currently no established Codex, Canadian, or Mexican MRLs for myclobutanil. C. Explanation of Tolerance Revisions Based upon review of the data supporting the petitions, EPA revised the tolerance levels based on analyses of the residue field trial data using the Agency's Tolerance Spreadsheet in accordance with the Agency's Guidance for Setting Pesticide Tolerances Based on Field Trial Data Standard Operating Procedure

(SOP)as follows:

(1)PP 3E6562 from 3.0 ppm to 4.0 ppm for canistel; mango; papaya; sapodilla; sapote, black; sapote, mamey; and star apple;

(2)PP 6E7138 from 4.5 ppm to 4.0 ppm for fruiting vegetables, crop group 8, except tomato and okra; from 11 ppm to 9.0 ppm for leafy vegetables, crop subgroup 4A, except spinach and cilantro; and from 0.9 ppm to 0.90 ppm for globe artichoke. V. Conclusion Therefore, tolerances are established for combined residues of myclobutanil and its alcohol metabolite on artichoke, globe at 0.90 ppm; canistel at 3.0 ppm; cilantro, leaves at 9.0 ppm; leafy greens, crop subgroup 4A, except spinach at 9.0 ppm; mango at 3.0 ppm; okra at 4.0 ppm; papaya at 3.0 ppm; sapodilla at 3.0 ppm; sapote, black at 3.0 ppm; sapote, mamey at 3.0 ppm; star apple at 3.0 ppm; and vegetable, fruiting, group 8, except tomato at 4.0 ppm. VI. Statutory and Executive Order Reviews This final rule establishes a tolerance under section 408(d) of FFDCA in response to a petition submitted to the Agency. The Office of Management and Budget

(OMB)has exempted these types of actions from review under Executive Order 12866, entitled *Regulatory Planning and Review* (58 FR 51735, October 4, 1993). Because this rule has been exempted from review under Executive Order 12866, this rule is not subject to Executive Order 13211, *Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use* (66 FR 28355, May 22, 2001) or Executive Order 13045, entitled *Protection of Children from Environmental Health Risks and Safety Risks* (62 FR 19885, April 23, 1997). This final rule does not contain any information collections subject to OMB approval under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 *et seq* ., nor does it require any special considerations under Executive Order 12898, entitled *Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations* (59 FR 7629, February 16, 1994). Since tolerances and exemptions that are established on the basis of a petition under section 408(d) of FFDCA, such as the tolerance in this final rule, do not require the issuance of a proposed rule, the requirements of the Regulatory Flexibility Act

(RFA)(5 U.S.C. 601 *et seq* .) do not apply. This final rule directly regulates growers, food processors, food handlers, and food retailers, not States or tribes, nor does this action alter the relationships or distribution of power and responsibilities established by Congress in the preemption provisions of section 408(n)(4) of FFDCA. As such, the Agency has determined that this action will not have a substantial direct effect on States or tribal governments, on the relationship between the national government and the States or tribal governments, or on the distribution of power and responsibilities among the various levels of government or between the Federal Government and Indian tribes. Thus, the Agency has determined that Executive Order 13132, entitled *Federalism* (64 FR 43255, August 10, 1999) and Executive Order 13175, entitled *Consultation and Coordination with Indian Tribal Governments* (65 FR 67249, November 6, 2000) do not apply to this rule. In addition, This rule does not impose any enforceable duty or contain any unfunded mandate as described under Title II of the Unfunded Mandates Reform Act of 1995

(UMRA)(Public Law 104-4). This action does not involve any technical standards that would require Agency consideration of voluntary consensus standards pursuant to section 12(d) of the National Technology Transfer and Advancement Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272 note). VII. Congressional Review Act The Congressional Review Act, 5 U.S.C. 801 *et seq* ., generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of this final rule in the **Federal Register** . This final rule is not a “major rule” as defined by 5 U.S.C. 804(2). List of Subjects in 40 CFR Part 180 Environmental protection, Administrative practice and procedure, Agricultural commodities, Pesticides and pests, Reporting and recordkeeping requirements. Dated: March 13, 2008. Lois Rossi, Director, Registration Division, Office of Pesticide Programs. Therefore, 40 CFR chapter I is amended as follows: PART 180—[AMENDED] 1. The authority citation for part 180 continues to read as follows: Authority: 21 U.S.C. 321(q), 346a and 371. 2. Section 180.443 is amended by removing from the table in paragraph

(b)the entries for artichoke, globe; beet, sugar, dried pulp; beet, sugar, molasses; beet, sugar, refined sugar; beet, sugar, roots; beet, sugar, tops; and pepper and by alphabetically adding commodities to the table in paragraph

(a)to read as follows: 180.443 Myclobutanil; tolerances for residues.

(a)* * * Commodity Parts per million * * * * * Artichoke, globe 0.90 * * * * * Canistel 3.0 * * * * * Cilantro, leaves 9.0 * * * * * Leafy greens, subgroup 4A, except spinach 9.0 Mango 3.0 * * * * * Okra 4.0 Papaya 3.0 * * * * * Sapodilla 3.0 Sapote, black 3.0 Sapote, mamey 3.0 * * * * * Star apple 3.0 * * * * * Vegetable, fruiting, group 8, except tomato 4.0 [FR Doc. E8-6205 Filed 3-25-08; 8:45 am] BILLING CODE 6560-50-S DEPARTMENT OF HEALTH AND HUMAN SERVICES Office of the Secretary Office of Inspector General 42 CFR Part 1008 Medicare and State Health Care Programs: Fraud and Abuse; Issuance of Advisory Opinions by OIG AGENCY: Office of Inspector General (OIG), HHS. ACTION: Interim final rule with comment period. SUMMARY: In accordance with section 205 of the Health Insurance Portability and Accountability Act of 1996, this final rule amends the OIG regulations at 42 CFR part 1008 by

(1)revising the process for advisory opinion requestors to submit payments for advisory opinion costs, and

(2)clarifying that notices to the public announcing procedures for processing advisory opinion requests will be published on OIG's Web site. DATES: *Effective Date:* These regulations are effective on April 25, 2008. *Comment Period:* To assure consideration, public comments must be delivered to the address provided below by no later than 5 p.m. on April 25, 2008. ADDRESSES: In commenting, please refer to file code OIG-223-IFC. Because of staff and resource limitations, we cannot accept comments by facsimile

(FAX)transmission. You may submit comments in one of three ways (no duplicates, please): 1. *Electronically* . You may submit electronic comments on specific recommendations and proposals through the Federal eRulemaking Portal at *http://www.regulations.gov.* (Attachments should be in Microsoft Word, if possible.) 2. *By regular, express, or overnight mail* . You may send written comments to the following address: Office of Inspector General, Department of Health and Human Services, Attention: OIG-223-IFC, Room 5246, Cohen Building, 330 Independence Avenue, SW., Washington, DC 20201. Please allow sufficient time for mailed comments to be received before the close of the comment period. 3. *By hand or courier* . If you prefer, you may deliver, by hand or courier, your written comments before the close period to Office of Inspector General, Department of Health and Human Services, Cohen Building, 330 Independence Avenue, SW., Washington, DC 20201. Because access to the interior of the Cohen Building is not readily available to persons without Federal Government identification, commenters are encouraged to schedule their delivery with one of our staff members at

(202)358-3141. For information on viewing public comments, please see section IV in the Supplementary information section below. FOR FURTHER INFORMATION CONTACT: Meredith Melmed, Office of Counsel to the Inspector General,

(202)619-0335. SUPPLEMENTARY INFORMATION: I. Background A. Section 205 of Public Law 104-191 The Health Insurance Portability and Accountability Act of 1996 (HIPAA), Public Law 104-101, specifically required the Department to provide a formal guidance process to requesting individuals and entities regarding the application of the anti-kickback statute, the safe harbor provisions, and other OIG health care fraud and abuse sanctions. In accordance with section 205 of HIPAA, the Department, in consultation with the Department of Justice, issues written advisory opinions to parties with regard to:

(1)What constitutes prohibited remuneration under the anti-kickback statute;

(2)whether an arrangement or proposed arrangement satisfies the criteria in section 1128B(b)(3) of the Social Security Act (the Act), or established by regulation, for activities which do not result in prohibited remuneration;

(3)what constitutes an inducement to reduce or limit services to Medicare or Medicaid program beneficiaries under section 1128A(b) of the Act 1 ; and

(4)whether an activity or proposed activity constitutes grounds for the imposition of civil or criminal sanctions under sections 1128, 1128A, or 1128B of the Act. 1 Public Law 104-191 erroneously cited this provision as section 1128B(b) of the Act. Section 4331(a) of the Balanced Budget Act of 1997, Public Law 105-33, corrected this citation to section 1128A(b) of the Act. B. OIG Final Regulations OIG published an interim final rule (62 FR 7350; February 19, 1997) establishing a new part 1008 in 42 CFR chapter V addressing various procedural issues and aspects of the advisory opinion process. In response to public comments received on the interim final regulations, we published a final rule (63 FR 38311; July 16, 1998) revising and clarifying various aspects of the earlier rulemaking. The rulemaking established procedures for requesting an advisory opinion. Specifically, the rule provided information to the public regarding costs associated with preparing an opinion and procedures for submitting an initial deposit and final payment to OIG for such costs. II. Provisions of the Interim Final Rule By statute, the Department must charge a fee equal to the costs incurred by the Department in responding to a request for an advisory opinion. (42 U.S.C. 1320a-7d(b)(5)(B)(ii)). Under the interim final and final advisory opinion rules, we directed requestors to make an initial payment to the U.S. Treasury by check or money order in the amount of $250. The regulations have also allowed for the acceptance of final payment of the fee by check or money order. Through this interim final rule, we are setting forth several revisions to the payment process for advisory opinion requests. Specifically, we are modifying our procedures for submitting an advisory opinion request by deleting the current requirements at §§ 1008.31(b) and 1008.36(b)(6) for an initial payment of $250 for each advisory opinion request, and replacing the existing provision set forth in § 1008.31(b) with a requirement that payment for an advisory opinion be made directly to the Treasury of the United States, as directed by OIG. In addition, we are amending § 1008.43(d) to state that an advisory opinion will be issued following receipt by OIG of confirmation that payment in full has been remitted by the requesting party to the Department of Treasury as directed by OIG. A. Electronic Payment Directly to the U.S. Treasury As of the effective date of this rule, we will no longer accept checks or money orders from requesting parties and will require payments to be made directly to the United States Treasury through wire or other electronic funds transfer. Changing the requirement that payment be made by check or money order to provide for wire or other electronic funds transfers will create efficiencies in processing payments for advisory opinion requests, reduce the use of staff resources to process such payments, and reduce the burden on requesting parties. B. Elimination of Initial Deposit We are also eliminating the initial deposit payment from the requirements for submitting an advisory opinion request. A deposit is not required by statute. We believe that deleting the initial deposit payment will further streamline the electronic payment process and will eliminate administrative burdens that may arise if an initial deposit must be returned. For instance, where parties erroneously submit requests that are wholly outside our authority to issue an advisory opinion, such as requests regarding issues arising under the physician self-referral law (42 U.S.C. 1395nn), returning funds submitted directly to the Department of Treasury would be cumbersome. In addition, eliminating the initial deposit requirement will reduce the burden on requesting parties by consolidating the parties' payment obligations into one final payment. We will provide additional instructions to the public on our Web site ( *http://www.oig.hhs.gov* ) for paying fees owed for advisory opinions via wire or other electronic funds transfer. III. Regulatory Impact Statement A. Administrative Procedure Act OIG has determined that the public notice and comment requirements of the Administrative Procedure Act, 5 U.S.C. 553(b), do not apply to this rule because the rule is procedural in nature and does not alter the substantive rights of the affected parties. Therefore, this rule satisfies the exemption from notice and comment rulemaking in 5 U.S.C. 553(b)(A). OIG nevertheless invites comments on this rule and will consider all timely submitted comments. The advisory opinion process is an established OIG program. This rule is limited to modifying the processing of payments received for advisory opinion requests. It does not modify eligibility of a party to request an advisory opinion, nor does it modify the standards under which OIG will accept and/or analyze a request. OIG expects that this rule will further the public's interest in minimal burden by deleting the requirement for an initial payment of a deposit to be credited toward the final advisory opinion processing costs and by allowing the use of electronic transfers of funds. The rule will also provide greater efficiency in processing payments from requestors and will save staff time. B. Regulatory Analysis We have examined the impact of this rule as required by Executive Order 12866, the Unfunded Mandates Reform Act of 1995, the Regulatory Flexibility Act

(RFA)of 1980, and Executive Order 13132. Executive Order 12866 Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulations are necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects; distributive impacts; and equity). A regulatory impact analysis must be prepared for major rules with economically significant effects ( *i.e.* , $100 million or more in any given year). This is not a major rule, as defined at 5 U.S.C. 804(2), and it is not economically significant since the overall economic effect of the rule is less than $100 million annually. As indicated in Section II of this preamble, this rule deals exclusively with the procedural issues involved in the payment for advisory opinions issued by OIG. This rule does not address the substance of the anti-kickback statute or other sanction statutes. This rule does not change any costs associated with requesting an advisory opinion, but, rather, clarifies the procedures for submitting statutorily-mandated payment for costs incurred preparing an advisory opinion. We believe that the aggregate economic impact of this rule will be minimal and will have no effect on the economy or on Federal or State expenditures. To the extent that there is any economic impact, that impact will likely result in savings of Federal dollars through the improved efficiencies in the use of staff resources for processing advisory opinion requests and payments related to advisory opinion requests, as well as savings for parties that request advisory opinions. Unfunded Mandates Reform Act Section 202 of the Unfunded Mandates Reform Act of 1995, Public Law 104-4, requires that agencies assess anticipated costs and benefits before issuing any rule that may result in expenditures in any one year by State, local or tribal governments, in the aggregate, or by the private sector, of $110 million. Since the rule merely revises the process for paying for advisory opinions and creates greater efficiencies in processing payments, we believe that this rule that will not impose any mandates on State, local, or tribal governments or the private sector that would result in an expenditure of $110 million or more (adjusted for inflation) in any given year, and that a full analysis under the Unfunded Mandates Reform Act is not necessary. Regulatory Flexibility Act The RFA and the Small Business Regulatory Enforcement and Fairness Act of 1996, which amended the RFA, require agencies to analyze options for regulatory relief of small entities. For purposes of the RFA, small entities include small businesses, certain nonprofit organizations, and small governmental jurisdictions. Individuals and States are not included in the definition of a small entity. The RFA, as amended, requires an agency to prepare and make available to the public a regulatory flexibility analysis that describes the effect of a proposed rule on small entities when the agency is required to publish a general notice of proposed rulemaking for any proposed rule. Because this rule is being issued as an interim final rule, on the grounds set forth above, a regulatory flexibility analysis is not required under the RFA. Executive Order 13132 Executive Order 13132, Federalism, establishes certain requirements that an agency must meet when it promulgates a rule that imposes substantial direct requirements or costs on State and local governments, preempts State law, or otherwise has Federalism implications. In reviewing this rule under the threshold criteria of Executive Order 13132, we have determined that this rule would not significantly limit the rights, roles, and responsibilities of State or local governments. We have determined, therefore, that a full analysis under Executive Order 13132 is not necessary. The Office of Management and Budget

(OMB)has reviewed this rule in accordance with Executive Order 12866. C. Paperwork Reduction Act In accordance with section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, we are required to solicit public comments, and receive final OMB approval, on any information collection requirements set forth in rulemaking. This rule will not impose any information collection burden or affect information currently collected by OIG. IV. Inspection of Public Comments All comments received before the end of the comment period are available for viewing by the public. All comments will be posted on *http://www.regulations.gov* as soon as possible after they have been received. Comments received timely will also be available for public inspection as they are received at Office of Inspector General, Department of Health and Human Services, Cohen Building, 330 Independence Avenue, SW., Washington, DC 20201, Monday through Friday of each week from 8:30 a.m. to 4 p.m. To schedule an appointment to view public comments, phone

(202)619-0089. List of Subjects in 42 CFR Part 1008 Administrative practice and procedure, Fraud, Grant programs—health, Health facilities, Health professions, Medicaid, Medicare, Penalties. Accordingly, 42 CFR chapter V, subchapter B is mended as set forth below: PART 1008—[AMENDED] 1. The authority citation for part 1008 continues to read as follows: Authority: 42 U.S.C. 1320a-7d(b) 2. Section 1008.31 is amended by revising paragraph

(b)to read as follows: § 1008.31 OIG fees for the cost of advisory opinions.

(b)*Payment Method.* Payment for a request for an advisory opinion must be made to the Treasury of the United States, as directed by OIG. 3. Section 1008.36 is amended by removing paragraph (b)(6) and redesignating paragraphs (b)(7) and (b)(8) as (b)(6) and (b)(7) respectively. 4. Section 1008.43 is amended by revising paragraph

(d)to read as follows: § 1008.43 Issuance of a formal advisory opinion.

(d)After OIG has notified the requestor of the full amount owed and OIG has determined that the full payment of that amount has been properly paid by the requestor, OIG will issue the advisory opinion and promptly mail it to the requestor by regular first class U.S. mail. Dated: January 30, 2008. Daniel R. Levinson, Inspector General. Approved: February 28, 2008. Michael O. Leavitt, Secretary. [FR Doc. E8-6164 Filed 3-25-08; 8:45 am] BILLING CODE 4152-01-P OFFICE OF MANAGEMENT AND BUDGET Office of Federal Procurement Policy 48 CFR Part 9903 Cost Accounting Standards Board; Contract Clauses AGENCY: Cost Accounting Standards Board, Office of Federal Procurement Policy, OMB. ACTION: Final rule. SUMMARY: The Cost Accounting Standards

(CAS)Board has adopted, without change, a final rule to add a clause for inclusion in CAS-covered contracts and subcontracts awarded to foreign concerns. The Board is taking this action to provide a standard clause for use by Government and contractor personnel in applying the CAS requirements to contracts and subcontracts awarded to foreign concerns. DATES: *Effective Date:* April 25, 2008. FOR FURTHER INFORMATION CONTACT: Laura Auletta, Manager, Cost Accounting Standards Board, 725 17th Street, NW., Room 9013, Washington, DC 20503 (telephone: 202-395-3256). Reference CAS-2007-01F. SUPPLEMENTARY INFORMATION: A. Background The CAS Board published a proposed rule on June 14, 2007 (72 FR 32829) to provide a clause for use in contracts with foreign concerns. Prior to November 4, 1993, modified CAS coverage required a contractor to comply with only CAS 401 and CAS 402. Similarly, 9903.201-1(b)(4) required that foreign concerns comply with only CAS 401 and 402. Thus, prior to November 4, 1993, the contract clause at 9903.201-4(c) was used for both contracts with modified coverage and contracts with foreign concerns. However, on November 4, 1993, the Board revised the definition of modified coverage to include CAS 405 and 406, so that modified coverage currently includes CAS 401, 402, 405, and 406 (see 9903.201-2(b)). In conjunction with the revised definition of modified coverage, the Board also amended the clause at 9903.201-4(c) to include CAS 405 and 406. However, the Board did not change the requirement that foreign concerns comply with only CAS 401 and 402. As a result, the contract clause at 9903.201-4(c) could not be used for foreign concerns without modification by the parties. This final rule provides a clause for use in contracts with foreign concerns that will not require modification. Except that it includes only CAS 401 and 402, this clause is identical to the clause currently applicable to contracts subject to modified coverage. To effect this change, this final rule amends 9903.201-4, Contract Clauses, to include the new clause at (f), Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns. The Board received no public comments in response to the proposed rule and has adopted the proposed rule as a final rule without change. B. Paperwork Reduction Act The Paperwork Reduction Act, Public Law 96-511, does not apply to this rulemaking, because this rule imposes no paperwork burden on offerors, affected contractors and subcontractors, or members of the public which requires the approval of OMB under 44 U.S.C. 3501, *et seq.* C. Regulatory Flexibility Act, Unfunded Mandates Reform Act, Congressional Review Act, and Executive Orders 12866 and 13132 The Board certifies that this rule will not have a significant effect on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, *et seq.* , because small businesses are exempt from the application of the Cost Accounting Standards. For purposes of the Unfunded Mandates Reform Act of 1995, as well as Executive Orders 12866 and 13132, the final rule will not significantly or uniquely affect small governments, does not have federalism implications, and will not result in increased expenditures by State, local, and tribal governments, or by the private sector, of $100 million or more. In addition, the Board has determined that this rule is not economically significant under the provisions of Executive Order 12866 or otherwise subject to Executive Order 12866 review. Finally, the final rule is not a “major rule” under 5 U.S.C. Chapter 8; the rule will not have any of the effects set forth in 5 U.S.C. 804(2). List of Subjects in 48 CFR Part 9903 Government procurement, Cost Accounting Standards. Paul A. Denett, Administrator, Office of Federal Procurement Policy. For the reasons set forth in this preamble, Chapter 99 of Title 48 of the Code of Federal Regulations is amended as set forth below: PART 9903—CONTRACT COVERAGE 1. The authority citation for part 9903 continues to read as follows: Authority: Pub. L. 100-679, 102 Stat. 4056, 41 U.S.C. 422. Subpart 9903.2—CAS Program Requirements 2. Section 9903.201-4 is revised to read as follows: 9903.201-4 Contract clauses.

(a)*Cost Accounting Standards.*

(1)The contracting officer shall insert the clause set forth below, Cost Accounting Standards, in negotiated contracts, unless the contract is exempted (see 9903.201-1), the contract is subject to modified coverage (see 9903.201-2), or the clause prescribed in paragraph

(e)of this section is used.

(2)The clause below requires the contractor to comply with all CAS specified in part 9904, to disclose actual cost accounting practices (applicable to CAS-covered contracts only), and to follow disclosed and established cost accounting practices consistently. COST ACCOUNTING STANDARDS (JUNE 2007)

(a)Unless the contract is exempt under 9903.201-1 and 9903.201-2, the provisions of 9903 are incorporated herein by reference and the Contractor in connection with this contract, shall—

(1)(CAS-covered Contracts Only) By submission of a Disclosure Statement, disclosed in writing the Contractor's cost accounting practices as required by 9903.202-1 through 9903.202-5 including methods of distinguishing direct costs from indirect costs and the basis used for allocating indirect costs. The practices disclosed for this contract shall be the same as the practices currently disclosed and applied on all other contracts and subcontracts being performed by the Contractor and which contain a Cost Accounting Standards

(CAS)clause. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets, and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government.

(2)Follow consistently the Contractor's cost accounting practices in accumulating and reporting contract performance cost data concerning this contract. If any change in cost accounting practices is made for the purposes of any contract or subcontract subject to CAS requirements, the change must be applied prospectively to this contract and the Disclosure Statement must be amended accordingly. If the contract price or cost allowance of this contract is affected by such changes, adjustment shall be made in accordance with subparagraph (a)(4) or (a)(5) of this clause, as appropriate.

(3)Comply with all CAS, including any modifications and interpretations indicated thereto contained in part 9904, in effect on the date of award of this contract or, if the Contractor has submitted cost or pricing data, on the date of final agreement on price as shown on the Contractor's signed certificate of current cost or pricing data. The Contractor shall also comply with any CAS (or modifications to CAS) which hereafter become applicable to a contract or subcontract of the Contractor. Such compliance shall be required prospectively from the date of applicability of such contract or subcontract. (4)(i) Agree to an equitable adjustment as provided in the Changes clause of this contract if the contract cost is affected by a change which, pursuant to subparagraph (a)(3) of this clause, the Contractor is required to make to the Contractor's established cost accounting practices.

(ii)Negotiate with the Contracting Officer to determine the terms and conditions under which a change may be made to a cost accounting practice, other than a change made under other provisions of subparagraph (a)(4) of this clause; provided that no agreement may be made under this provision that will increase costs paid by the United States.

(iii)When the parties agree to a change to a cost accounting practice, other than a change under subdivision (a)(4)(i) of this clause, negotiate an equitable adjustment as provided in the Changes clause of this contract.

(5)Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor or a subcontractor fails to comply with an applicable Cost Accounting Standard, or to follow any cost accounting practice consistently and such failure results in any increased costs paid by the United States. Such adjustment shall provide for recovery of the increased costs to the United States, together with interest thereon computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)) for such period, from the time the payment by the United States was made to the time the adjustment is effected. In no case shall the Government recover costs greater than the increased cost to the Government, in the aggregate, on the relevant contracts subject to the price adjustment, unless the Contractor made a change in its cost accounting practices of which it was aware or should have been aware at the time of price negotiations and which it failed to disclose to the Government.

(b)If the parties fail to agree whether the Contractor or a subcontractor has complied with an applicable CAS in part 9904 or a CAS rule or regulation in part 9903 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under the Contract Disputes Act (41 U.S.C. 601).

(c)The Contractor shall permit any authorized representatives of the Government to examine and make copies of any documents, papers, or records relating to compliance with the requirements of this clause.

(d)The contractor shall include in all negotiated subcontracts which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts, of any tier, including the obligation to comply with all CAS in effect on the subcontractor's award date or if the subcontractor has submitted cost or pricing data, on the date of final agreement on price as shown on the subcontractor's signed Certificate of Current Cost or Pricing Data. If the subcontract is awarded to a business unit which pursuant to 9903.201-2 is subject to other types of CAS coverage, the substance of the applicable clause set forth in 9903.201-4 shall be inserted. This requirement shall apply only to negotiated subcontracts in excess of $650,000, except that the requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 9903.201-1. (End of Clause)

(b)[Reserved]

(c)*Disclosure and Consistency of Cost Accounting Practices.*

(1)The contracting officer shall insert the clause set forth below, Disclosure and Consistency of Cost Accounting Practices, in negotiated contracts when the contract amount is over $650,000 but less than $50 million, and the offeror certifies it is eligible for and elects to use modified CAS coverage ( *see* 9903.201-2, unless the clause prescribed in paragraph

(d)of this subsection is used).

(2)The clause below requires the contractor to comply with CAS 9904.401, 9904.402, 9904.405, and 9904.406, to disclose (if it meets certain requirements) actual cost accounting practices, and to follow consistently disclosed and established cost accounting practices. DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES (JUNE 2007)

(a)The Contractor, in connection with this contract, shall—

(1)Comply with the requirements of 9904.401, Consistency in Estimating, Accumulating, and Reporting Costs; 9904.402, Consistency in Allocating Costs Incurred for the Same Purpose; 9904.405, Accounting for Unallowable Costs; and 9904.406, Cost Accounting Standard—Cost Accounting Period, in effect on the date of award of this contract, as indicated in part 9904.

(2)(CAS-covered Contracts Only) If it is a business unit of a company required to submit a Disclosure Statement, disclose in writing its cost accounting practices as required by 9903.202-1 through 9903.202-5. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government. (3)(i) Follow consistently the Contractor's cost accounting practices. A change to such practices may be proposed, however, by either the Government or the Contractor, and the Contractor agrees to negotiate with the Contracting Officer the terms and conditions under which a change may be made. After the terms and conditions under which the change is to be made have been agreed to, the change must be applied prospectively to this contract, and the Disclosure Statement, if affected, must be amended accordingly.

(ii)The Contractor shall, when the parties agree to a change to a cost accounting practice and the Contracting Officer has made the finding required in 9903.201-6(c) that the change is desirable and not detrimental to the interests of the Government, negotiate an equitable adjustment as provided in the Changes clause of this contract. In the absence of the required finding, no agreement may be made under this contract clause that will increase costs paid by the United States.

(4)Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor or a subcontractor fails to comply with the applicable CAS or to follow any cost accounting practice, and such failure results in any increased costs paid by the United States. Such adjustment shall provide for recovery of the increased costs to the United States, together with interest thereon computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)) for such period, from the time the payment by the United States was made to the time the adjustment is effected.

(b)If the parties fail to agree whether the Contractor has complied with an applicable CAS rule, or regulation as specified in parts 9903 and 9904 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under the Contract Disputes Act (41 U.S.C. 601).

(c)The Contractor shall permit any authorized representatives of the Government to examine and make copies of any documents, papers, and records relating to compliance with the requirements of this clause.

(d)The Contractor shall include in all negotiated subcontracts, which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts of any tier, except that—

(1)If the subcontract is awarded to a business unit which pursuant to 9903.201-2 is subject to other types of CAS coverage, the substance of the applicable clause set forth in 9903.201-4 shall be inserted.

(2)This requirement shall apply only to negotiated subcontracts in excess of $650,000.

(3)The requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 9903.201-1. (End of clause)

(d)[Reserved]

(e)*Cost Accounting Standards—Educational Institutions.*

(1)The contracting officer shall insert the clause set forth below, Cost Accounting Standards—Educational Institution, in negotiated contracts awarded to educational institutions, unless the contract is exempted (see 9903.201-1), the contract is to be performed by an FFRDC (see 9903.201-2(c)(5)), or the provision at 9903.201-2(c)(6) applies.

(2)The clause below requires the educational institution to comply with all CAS specified in part 9905, to disclose actual cost accounting practices as required by 9903.202-1(f), and to follow disclosed and established cost accounting practices consistently. COST ACCOUNTING STANDARDS—EDUCATIONAL INSTITUTIONS (JUNE 2007)

(a)Unless the contract is exempt under 9903.201-1 and 9903.201-2, the provisions of part 9903 are incorporated herein by reference and the Contractor in connection with this contract, shall—

(1)(CAS-covered Contracts Only) If a business unit of an educational institution required to submit a Disclosure Statement, disclose in writing the Contractor's cost accounting practices as required by 9903.202-1 through 9903.202-5 including methods of distinguishing direct costs from indirect costs and the basis used for accumulating and allocating indirect costs. The practices disclosed for this contract shall be the same as the practices currently disclosed and applied on all other contracts and subcontracts being performed by the Contractor and which contain a Cost Accounting Standards

(2)Follow consistently the Contractor's cost accounting practices in accumulating and reporting contract performance cost data concerning this contract. If any change in cost accounting practices is made for the purposes of any contract or subcontract subject to CAS requirements, the change must be applied prospectively to this contract and the Disclosure Statement, if required, must be amended accordingly. If an accounting principle change mandated under Office of Management and Budget

(OMB)Circular A-21, Cost Principles for Educational Institutions, requires that a change in the Contractor's cost accounting practices be made after the date of this contract award, the change must be applied prospectively to this contract and the Disclosure Statement, if required, must be amended accordingly. If the contract price or cost allowance of this contract is affected by such changes, adjustment shall be made in accordance with subparagraph (a)(4) or (a)(5) of this clause, as appropriate.

(3)Comply with all CAS, including any modifications and interpretations indicated thereto contained in 48 CFR part 9905, in effect on the date of award of this contract or, if the Contractor has submitted cost or pricing data, on the date of final agreement on price as shown on the Contractor's signed certificate of current cost or pricing data. The Contractor shall also comply with any CAS (or modifications to CAS) which hereafter become applicable to a contract or subcontract of the Contractor. Such compliance shall be required prospectively from the date of applicability to such contract or subcontract. (4)(i) Agree to an equitable adjustment as provided in the Changes clause of this contract if the contract cost is affected by a change which, pursuant to subparagraph (a)(3) of this clause, the Contractor is required to make to the Contractor's established cost accounting practices.

(iii)When the parties agree to a change to a cost accounting practice, other than a change under subdivision (a)(4)(i) or (a)(4)(iv) of this clause, negotiate an equitable adjustment as provided in the Changes clause of this contract.

(iv)Agree to an equitable adjustment as provided in the Changes clause of this contract, if the contract cost is materially affected by an OMB Circular A-21 accounting principle amendment which, on becoming effective after the date of contract award, requires the Contractor to make a change to the Contractor's established cost accounting practices.

(b)If the parties fail to agree whether the Contractor or a subcontractor has complied with an applicable CAS or a CAS rule or regulation in 9903 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under the Contract Disputes Act (41 U.S.C. 601).

(d)The Contractor shall include in all negotiated subcontracts which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts, of any tier, including the obligation to comply with all applicable CAS in effect on the subcontractor's award date or if the subcontractor has submitted cost or pricing data, on the date of final agreement on price as shown on the subcontractor's signed Certificate of Current Cost or Pricing Data, except that—

(2)This requirement shall apply only to negotiated subcontracts in excess of $650,000.

(3)The requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 9903.201-1. (End of clause)

(f)*Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns.*

(1)The contracting officer shall insert the clause set forth below, Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns, in negotiated contracts when the contract is with a foreign concern and the contract is not otherwise exempt under 9903.201-1 (see 9903.201-2(e)).

(2)The clause below requires the contractor to comply with 9904.401 and 9904.402, to disclose (if it meets certain requirements) actual cost accounting practices, and to follow consistently disclosed and established cost accounting practices. DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES—FOREIGN CONCERNS (April 25, 2008)

(a)The Contractor, in connection with this contract, shall—

(1)Comply with the requirements of 9904.401, Consistency in Estimating, Accumulating, and Reporting Costs; and 9904.402, Consistency in Allocating Costs Incurred for the Same Purpose, in effect on the date of award of this contract, as indicated in Part 9904.

(b)If the parties fail to agree whether the Contractor has complied with an applicable CAS rule, or regulation as specified in Parts 9903 and 9904 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under the Contract Disputes Act (41 U.S.C. 601).

(2)This requirement shall apply only to negotiated subcontracts in excess of $650,000.

(3)The requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 9903.201-1. (End of Clause) [FR Doc. E8-5981 Filed 3-24-08; 8:45 am] BILLING CODE 3110-01-P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 679 [Docket No. 071106671-8010-02] RIN 0648-XG62 Fisheries of the Exclusive Economic Zone Off Alaska; Shallow-Water Species Fishery by Vessels Using Trawl Gear in the Gulf of Alaska AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Temporary rule; modification of a closure. SUMMARY: NMFS is opening directed fishing for shallow-water species by vessels using trawl gear in the Gulf of Alaska (GOA). This action is necessary to allow the shallow-water species fishery in the GOA to resume. DATES: Effective 1200 hrs, Alaska local time (A.l.t.), March 21, 2008, through 1200 hrs, A.l.t., April 1, 2008. Comments must be received at the following address no later than 4:30 p.m., A.l.t., April 7, 2008. ADDRESSES: Send comments to Sue Salveson, Assistant Regional Administrator, Sustainable Fisheries Division, Alaska Region, NMFS, Attn: Ellen Sebastian. You may submit comments, identified by 0648-XG62, by any one of the following methods: • Electronic Submissions: Submit all electronic public comments via the Federal eRulemaking Portal website at *http://www.regulations.gov* ; • Mail: P.O. Box 21668, Juneau, AK 99802; • Fax:

(907)586-7557; or • Hand delivery to the Federal Building: 709 West 9th Street, Room 420A, Juneau, AK. Instructions: All comments received are a part of the public record and will generally be posted to *http://www.regulations.gov* without change. All Personal Identifying Information (for example, name, address, etc.) voluntarily submitted by the commenter may be publicly accessible. Do not submit Confidential Business Information or otherwise sensitive or protected information. NMFS will accept anonymous comments. Attachments to electronic comments will be accepted in Microsoft Word, Excel, WordPerfect, or Adobe PDF file formats only. FOR FURTHER INFORMATION CONTACT: Josh Keaton, 907-586-7228. SUPPLEMENTARY INFORMATION: NMFS manages the groundfish fishery in the GOA exclusive economic zone according to the Fishery Management Plan for Groundfish of the Gulf of Alaska

(FMP)prepared by the North Pacific Fishery Management Council under authority of the Magnuson-Stevens Fishery Conservation and Management Act. Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679. NMFS closed the shallow-water species fishery by vessels using trawl gear in the GOA under § 679.21(d)(7)(i) on February 27, 2008 (73 FR 10562, February 27, 2008). NMFS has determined that, approximately 99 mt remain in the first seasonal apportionment of the 2008 Pacific halibut bycatch allowance specified for the shallow-water species fishery in the GOA. Therefore, in accordance with § 679.25(a)(1)(i), (a)(2)(i)(C) and (a)(2)(iii)(D), and to allow the shallow-water species fishery in the GOA to resume, NMFS is terminating the previous closure and is reopening directed fishing for shallow-water species by vessels using trawl gear in the GOA. The species and species groups that comprise the shallow-water species fishery are pollock, Pacific cod, shallow-water flatfish, flathead sole, Atka mackerel, skates and “other species.” Classification This action responds to the best available information recently obtained from the fishery. The Assistant Administrator for Fisheries, NOAA (AA), finds good cause to waive the requirement to provide prior notice and opportunity for public comment pursuant to the authority set forth at 5 U.S.C. 553(b)(B) as such requirement is impracticable and contrary to the public interest. This requirement is impracticable and contrary to the public interest as it would prevent NMFS from responding to the most recent fisheries data in a timely fashion and would delay the opening of the shallow-water species fishery by vessels using trawl gear in the GOA. NMFS was unable to publish a notice providing time for public comment because the most recent, relevant data only became available as of March 17, 2008. The AA also finds good cause to waive the 30-day delay in the effective date of this action under 5 U.S.C. 553(d)(3). This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment. This action is required by § 679.25 and § 679.20 and is exempt from review under Executive Order 12866. Authority: 16 U.S.C. 1801 *et seq.* Dated: March 20, 2008. Emily H. Menashes Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 08-1073 Filed 3-21-08; 2:13 pm]

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