Notices. Notice of closure—administrative appeal decision records
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/register/2008/05/07/08-1213A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 3510-22-S DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration Federal Consistency Appeals by Weaver's Cove Energy, LLC, and Mill River Pipeline, LLC AGENCY: National Oceanic and Atmospheric Administration (NOAA), Department of Commerce (Commerce). ACTION: Notice of closure—administrative appeal decision records. SUMMARY: This announcement provides notice that the decision records for two administrative appeals filed with the Department of Commerce by Weaver's Cove Energy, LLC, and Mill River Pipeline, LLC, have been closed.
DATES: The decision records for these two administrative appeals were closed on May 5, 2008. ADDRESSES: Materials from the appeal records are available at the Internet site *http://www.ogc.doc.gov/czma.htm* and at the Office of General Counsel for Ocean Services, National Oceanic and Atmospheric Administration, U.S. Department of Commerce, 1305 East-West Highway, Silver Spring, MD 20910. FOR FURTHER INFORMATION CONTACT: Brett Grosko, Attorney-Advisor, Office of General Counsel for Ocean Services, National Oceanic and Atmospheric Administration, U.S.
Department of Commerce, via e-mail at *Brett.Grosko@noaa.gov,* or 301-713-7384. SUPPLEMENTARY INFORMATION: On August 27, 2007, Weaver's Cove Energy, LLC, and Mill River Pipeline, LLC, separately filed notices of appeal with the Secretary of Commerce (Secretary) pursuant to section 307(c)(3)(A) of the Coastal Zone Management Act of 1972 (CZMA), as amended, 16 U.S.C. 1451 *et seq.* , and the Department of Commerce's implementing regulations, 15 CFR part 930, subpart H. These appeals were taken from objections by the Commonwealth of Massachusetts to the issuance of certain federal licenses necessary to construct and operate a liquefied natural gas terminal and two associated natural gas pipelines, to be located in Fall River, Massachusetts.
Both appeals request the Secretary override the State's objections on grounds the proposed project allegedly is consistent with the objectives of the CZMA, and necessary in the interest of national security. Decisions for CZMA administrative appeals are based on information contained in the decision record for the appeal. These two appeals have been consolidated for decision. Under the CZMA, the decision record for an appeal must close no later than 220 days after notice of the appeal was first published in the **Federal Register** . 16 U.S.C. 1465.
Notice of closure must be published in the **Federal Register** . Consistent with this requirement, notice is hereby provided that the decision records for these appeals were closed on May 5, 2008. No further information, briefs or comments will be considered in deciding these appeals. A final decision on these appeals must be issued no later than 60 days after the date of the publication of this notice. 16 U.S.C. 1465(c)(1). The deadline may be extended by publishing (within the 60-day period) a subsequent notice explaining why a decision cannot be issued within that time frame. 16 U.S.C. 1465(c)(1).
In this event, a final decision must be issued no later than 15 days after the date of publication of the subsequent notice. 16 U.S.C. 1465(c)(2). Additional information about these appeals and the CZMA appeals process is available from the Department of Commerce CZMA appeals Web site: *http://www.ogc.doc.gov/czma.htm.* [Federal Domestic Assistance Catalog No. 11.419 Coastal Zone Management Program Assistance.] Dated: May 1, 2008. Joel La Bissonniere, Assistant General Counsel for Ocean Services. [FR Doc.
E8-10012 Filed 5-6-08; 8:45 am] BILLING CODE 3510-08-P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration RIN 0648-XH64 Endangered Species; File No. 1614-01 AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice; issuance of permit modification. SUMMARY: Notice is hereby given that the NOAA Fisheries Northeast Region Protected Resources Division (Responsible Party: Mary Colligan), One Blackburn Drive, Gloucester, MA 01930, has been issued a modification to scientific research Permit No. 1614.
ADDRESSES: The modification and related documents are available for review upon written request or by appointment in the following offices: Permits, Conservation and Education Division, Office of Protected Resources, NMFS, 1315 East-West Highway, Room 13705, Silver Spring, MD 20910; phone (301)713-2289; fax (301)427-2521; Northeast Region, NMFS, One Blackburn Drive, Gloucester, MA 01930-2298; phone (978)281-9300; fax (978)281-9394; and Southeast Region, NMFS, 263 13th Ave South, St.
Petersburg, FL 33701; phone (727)824-5312; fax (727)824-5309. FOR FURTHER INFORMATION CONTACT: Brandy Belmas or Jennifer Skidmore, (301)713-2289. SUPPLEMENTARY INFORMATION: On March 25, 2008, notice was published in the **Federal Register** (73 FR 15741) that a modification of Permit No. 1614, issued February 28, 2008 (73 FR 11873), had been requested by the above-named organization. The requested modification has been granted under the authority of the Endangered Species Act of 1973, as amended (ESA; 16 U.S.C. 1531 *et seq.* ) and the regulations governing the taking, importing, and exporting of endangered and threatened species (50 CFR 222-226).
In addition to all activities authorized under Permit No. 1614, this modification increases the number of dead, captive bred shortnose sturgeon ( *Acipenser brevirostrum* ) received from authorized U.S. facilities up to 350 individuals each year. Obtaining these additional sturgeon will aid researchers in meeting their research objectives, which include reviewing shortnose sturgeon research procedures and developing necropsy protocols. Issuance of this modification, as required by the ESA was based on a finding that such permit
(1)was applied for in good faith,
(2)will not operate to the disadvantage of such endangered or threatened species, and
(3)is consistent with the purposes and policies set forth in section 2 of the ESA. Dated: May 2, 2008. P. Michael Payne, Chief, Permits, Conservation and Education Division, Office of Protected Resources, National Marine Fisheries Service. [FR Doc. E8-10108 Filed 5-6-08; 8:45 am] BILLING CODE 3510-22-S DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration RIN 0648-XH71 Marine Mammals; File No. 540-1811 AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice; receipt of application for amendment. SUMMARY: Notice is hereby given that Mr. John Calambokidis, Cascadia Research Collective, Waterstreet Building, 218 1/2 West Fourth Avenue, Olympia, WA 89501, has requested an amendment to scientific research Permit No. 540-1811. DATES: Written, telefaxed, or e-mail comments must be received on or before June 6, 2008. ADDRESSES: The amendment request and related documents are available for review upon written request or by appointment: (See SUPPLEMENTARY INFORMATION ). Written comments or requests for a public hearing on this request should be submitted to the Chief, Permits, Conservation and Education Division, F/PR1, Office of Protected Resources, NMFS, 1315 East-West Highway, Room 13705, Silver Spring, MD 20910. Those individuals requesting a hearing should set forth the specific reasons why a hearing on this particular amendment request would be appropriate. Comments may also be submitted by facsimile at (301)427-2521, provided the facsimile is confirmed by hard copy submitted by mail and postmarked no later than the closing date of the comment period. Comments may also be submitted by e-mail. The mailbox address for providing e-mail comments is *NMFS.Pr1Comments@noaa.gov* . Include in the subject line of the e-mail comment the following document identifier: File No. 731-1774. FOR FURTHER INFORMATION CONTACT: Jennifer Skidmore or Carrie Hubard, (301)713-2289. SUPPLEMENTARY INFORMATION: The subject amendment to Permit No. 540-1811, issued on March 31, 2006, and most recently amended on June 16, 2006, is requested under the authority of the Marine Mammal Protection Act of 1972, as amended (MMPA; 16 U.S.C. 1361 *et seq.* ), the Regulations Governing the Taking and Importing of Marine Mammals (50 CFR part 216), the Endangered Species Act of 1973, as amended (ESA; 16 U.S.C. 1531 *et seq.* ), and the Regulations Governing the Taking, Importing, and Exporting of Endangered and Threatened Species (50 CFR 222-226). Permit No. 540-1811, issued to John Calambokidis, currently authorizes aerial and vessel surveys, photo-identification, behavioral observations, tagging (using suction-cup attached tags), biopsy, video and acoustic recording, and incidental harassment of all species of odontocetes and baleen whales in the North Pacific Ocean. The purpose of the modification is to enhance the examination of movements (for stock structure assessment) and habitat use of: blue ( *Balaenoptera musculus* ), fin ( *B. physalus* ), sei ( *B.a borealis* ), gray ( *Eschrichtius robustus* ), sperm ( *Physeter macrocephalus* ), Bryde's ( *B. edeni* ), humpback ( *Megaptera novaeangliae* ) and minke ( *B. acutorostrata* ) whales, Mesoplodon beaked whales ( *Mesoplodon* spp), Cuvier's ( *Ziphius cavirostris* ) and Baird's ( *Berardius bairdii* ) beaked whales, and bottlenose ( *Tursiops truncatus* ) and Risso's ( *Grampus griseus* ) dolphins via dart tagging. For each species, an addition of 20 takes by dart tagging are requested, with the exception of sei whales, where only 5 takes are requested. Additionally, an increase in the number of biopsy and suction-cup tagging takes (between 10 - 40 takes) for several cetacean species (fin, sperm, and short-finned pilot whales ( *Globicephala macrorhynchus* ) and Baird's, Cuvier's, and Mesoplodon beaked whales) are being requested in order to better increase understanding of stock structure and behavior. Takes by Level B harassment (e.g., incidental harassment of non-target animals) are already authorized under Permit No. 540-1811 and no additional Level B harassment takes are requested. Dart tagging will occur concurrently with already permitted activities (i.e., vessel surveys, photo-identification, suction-cup tagging etc), primarily in Californian waters, though some species may be tagged opportunistically elsewhere where activities are authorized (i.e., U.S. and international waters of the Pacific including Alaska, Washington, Oregon, and other U.S. territories). The amended permit, if issued, would be valid until the permit expires on April 14, 2011. Concurrent with the publication of this notice in the **Federal Register** , NMFS is forwarding copies of this application to the Marine Mammal Commission and its Committee of Scientific Advisors. Documents may be reviewed in the following locations: Permits, Conservation and Education Division, Office of Protected Resources, NMFS, 1315 East-West Highway, Room 13705, Silver Spring, MD 20910; phone (301)713-2289; fax (301)427-2521; Northwest Region, NMFS, 7600 Sand Point Way NE, BIN C15700, Bldg. 1, Seattle, WA 98115-0700; phone (206)526-6150; fax (206)526-6426; Alaska Region, NMFS, P.O. Box 21668, Juneau, AK 99802-1668; phone (907)586-7221; fax (907)586-7249; and Southwest Region, NMFS, 501 West Ocean Blvd., Suite 4200, Long Beach, CA 90802-4213; phone (562)980-4001; fax (562)980-4018. Dated: May 1, 2008. P. Michael Payne, Chief, Permits, Conservation and Education Division, Office of Protected Resources, National Marine Fisheries Service. [FR Doc. E8-10104 Filed 5-6-08; 8:45 am] BILLING CODE 3510-22-S COMMODITY FUTURES TRADING COMMISSION Concept Release on the Appropriate Regulatory Treatment of Event Contracts AGENCY: Commodity Futures Trading Commission. ACTION: Request for Public Comment. SUMMARY: The Commodity Futures Trading Commission (Commission or CFTC) is soliciting comment on the appropriate regulatory treatment of financial agreements offered by markets commonly referred to as event, prediction, or information markets. 1 For ease of reference and to avoid classification issues, these financial agreements are referred to herein as event contracts. In general, event contracts are neither dependent on, nor do they necessarily relate to, market prices or broad-based measures of economic or commercial activity. 2 Rather, event contracts may be based on eventualities and measures as varied as the world's population in the year 2050, the results of political elections, or the outcome of particular entertainment events. 3 The Commission's staff has received a substantial number of requests for guidance on the propriety of trading various event contracts under the regulatory rubric of the Commodity Exchange Act (CEA or Act). Given the substantive and practical concerns that may arise from applying federal regulation to event contracts and markets, the Commission believes that it is appropriate to solicit and consider the public's comments in advance of issuing any definitive guidance. 1 *See* Michael Gorham, *Event Markets Campaign for Respect* , Futures Industry Magazine (Jan./Feb. 2004); Justin Wolfers and Eric W. Zitzewitz, *Prediction Markets* , 18 J. Econ. Persp. 107 (Spring 2004); Robert W. Hahn and Paul C. Tetlock, *Using Information Markets to Improve Public Decision Making* , AEI-Brookings Joint Center for Regulatory Studies Working Paper 04-18 (March 2005); Hal R. Varian, *Can Markets Be Used to Help People Make Nonmarket Decisions?* , The New York Times (May 8, 2003). 2 The term event contract is not intended to encompass contracts that generate trading prices that predictably correlate with market prices or broad-based measures of economic or commercial activity, or contracts which substantially replicate other commodity derivatives contracts, such as binary options on exchange rates or the price of crude oil. The aforementioned contracts are unambiguously subject to CFTC regulation. 3 *See, e.g.* , Retired claims list at the Foresight Exchange, available at *http://www.ideosphere.com/fx-bin/ListClaims* . DATES: Comments must be received by July 7, 2008. ADDRESSES: Comments should be sent to the Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581, Attention: Office of the Secretariat. Comments may be sent by facsimile to 202.418.5521, or by e-mail to *secretary@cftc.gov* . Reference should be made to the “Concept Release on the Appropriate Regulatory Treatment of Event Contracts.” Comments may also be submitted through the Federal eRulemaking Portal at *http://www.regulations.gov* . FOR FURTHER INFORMATION CONTACT: Bruce Fekrat, Special Counsel, Office of the Director (telephone 202.418.5578, e-mail *bfekrat@cftc.gov* ), Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. SUPPLEMENTARY INFORMATION: I. Introduction A. Purpose of the Release Since 2005, the Commission's staff has received a substantial number of requests for guidance on the propriety of offering and trading financial agreements that may primarily function as information aggregation vehicles. These event contracts generally take the form of financial agreements linked to eventualities or measures that neither derive from, nor correlate with, market prices or broad economic or commercial measures. Event contracts have been based on a wide variety of interests including the results of presidential elections, the accomplishment of certain scientific advances, world population levels, the adoption of particular pieces of legislation, the outcome of corporate product sales, the declaration of war and the length of celebrity marriages. In response to the various requests for guidance, and to promote regulatory certainty, the Commission has commenced a comprehensive review of the Act's applicability to event contracts and markets. To further its review, the Commission is issuing this release to solicit the expertise of interested persons, including CFTC-registered markets, exempt markets, over-the-counter derivatives dealers, capital market participants, legal practitioners, state and federal regulatory authorities, academicians and research institutions with respect to the practical and regulatory issues relevant to regulating event contracts and markets. Broadly speaking, the Commission must determine: 1. Whether event contracts are within the Commission's jurisdiction and if so, why (or why not)? 2. If event contracts are within the Commission's jurisdiction, should there be exemptions or exclusions applied to them and if so, why (or why not)? 3. How should the Commission address the potential gaming aspects of some event contracts and the possible pre-emption of state gaming laws? The Commission urges interested persons to provide detailed and comprehensive comments that will assist the Commission in conducting its review and analysis of the Commission's regulatory purview over event contracts, the interests that may appropriately underlie Commission-regulated transactions, and the appropriate regulatory treatment of markets that may offer event contracts. B. CFTC Experience With Event Contracts The Iowa Electronic Markets (IEM), an electronic trading facility that functions as an experimental and academic program, is one of the better known and oft discussed real-money event markets currently in operation. 4 The IEM operates in part pursuant to a 1993 no-action letter issued by Commission staff which, without asserting jurisdiction or describing the potential parameters of the Commission's regulatory purview over the market, allows the IEM to list various event contracts subject to certain conditions and limitations for covered contracts. 5 4 The IEM is run by the University of Iowa Departments of Accounting and Economics and the University's College of Business Administration. 5 CFTC Staff Letter No. 93-66 [1992-1994 Transfer Binder] Comm. Fut. L. Rep.
(CCH)¶ 25,785 (June 18, 1993). This no-action letter superseded the operative terms of a more limited letter issued to the IEM in 1992. The 1993 letter's relief extends to IEM contracts based on political elections, economic indicators, and certain currency exchange rates. The letter requires that the IEM limit access to any one submarket to between 1,000 and 2,000 traders. The letter also sets the maximum amount that any single participant can risk in any one submarket at five hundred dollars. The letter makes clear that relief is premised on, among other factors, the IEM's representations concerning the market's specific manner of operation and academic purpose, and the assurance that the IEM will not receive any profit or other form of compensation from its activities. The IEM continues to be most recognized for its presidential election contracts. The IEM offers a vote share contract and a winner-take-all contract for the 2008 U.S. presidential election cycle. Its vote share contract is ultimately associated with the candidates that will be nominated by each party. Each vote share contract has a maximum value of $1 and a contract payout that is directly based on the percentage of the popular vote received by each of the two major party candidates. For instance, a contract for a candidate who receives 40% of the popular votes cast for both candidates will be worth $.40 at settlement. In contrast, the IEM's 2008 presidential election winner-take-all contract will have a value of either $1 or $0 at settlement. The IEM's winner-take-all-contract is also associated with a specific candidate, but instead of having a payout that is tied to a particular percentage of the popular vote received by each candidate, the contract will distribute a fixed payout of $1 to its holder if and only if the candidate referenced by the contract receives a greater percentage of the popular vote cast. Although the IEM's presidential election contracts are imperfect vehicles for the discovery of information, there is some consensus on the question of whether the IEM's contracts can function capably as predictive tools. 6 Indeed, trading data generated by some IEM presidential election contracts arguably have produced better predictive indicators than data obtained from professional polling organizations. 7 6 *See, e.g.* , Michael Abramowicz, *Information Markets, Administrative Decision Making, and Predictive Cost-Benefit Analysis* , 71 U. Chi. L. Rev. 933, 950 (2004). 7 *See* Cass R. Sunstein, *Group Judgments: Statistical Means, Deliberation, and Information Markets* , 80 N.Y.U. L. Rev. 962, 1029-31 (June 2005). II. Commodity Options and Futures and the Attributes of Event Contracts The Commission, with some exceptions, has exclusive jurisdiction over two relevant types of derivative instruments—commodity options and commodity futures contracts. Section 4c(b) of the Act gives the Commission plenary jurisdiction over commodity options, and provides that “[n]o person shall * * * enter into * * * any transaction involving any commodity regulated under this Act which is of the character of, or is commonly known to the trade as, an option * * * contrary to any rule, regulation or order of the Commission[.]” Section 2(a)(1)(A) of the Act provides that the Commission shall have exclusive jurisdiction with respect to accounts, agreements, and transactions (including options) involving contracts of sale of a commodity for future delivery. Event contracts, depending on their underlying interests, can be designed to exhibit the attributes of either options or futures contracts. A significant number of event contracts are structured as all-or-nothing binary transactions commonly described as binary options. 8 Binary event contracts typically pay out a fixed amount when an outcome either occurs or does not occur. The trading of such contracts can facilitate the discovery of information by assigning probabilities, through market-derived prices, to discrete eventualities. For example, a binary contract based on whether a particular person will run for the presidency in 2012, can pay a fixed $100 to its buyer if and only if that individual runs for the presidency in 2012. If the contract's traders believe that the likelihood of the individual's candidacy in 2012 is around 17 percent, the price of the contract will be around $17, and will approximate the market's consensus expectation of the individual's candidacy. 8 *See, e.g.* , Intrade Prediction Markets, Current Events Contracts at *http://www.intrade.com/jsp/intrade/contractSearch/* . In addition to binary event transactions, the term event contract has also been used to identify transactions, based on interests other than market prices, which resemble futures contracts. For instance, these types of event contracts can price consensus estimates of moving values, such as the number of hours the average U.S. resident spends in traffic or the share of votes that a particular candidate for political office may receive. Unlike binary transactions, and similar to any commodity futures contract, this type of contract creates continuous and ongoing obligations that are linked to moving measures or levels, as opposed to being dependent on the outcome of a single discrete occurrence. III. The Commission's Regulatory Purview As discussed above, with some limited exceptions, the regulatory purview of the Act extends to and includes transactions that are either structured as options or futures when such transactions involve interests that constitute commodities under the Act. Section 1a(4) of the Act defines commodity in two distinct ways. First, Section 1a(4) specifically enumerates certain articles or goods as commodities. 9 Second, Section 1a(4) defines the term commodity as including those articles or goods, and services, rights or interests, “in which contracts for future delivery are presently or in the future dealt in.” Therefore, an underlying interest that is not enumerated in Section 1a(4) may be a statutory commodity under the Act if it reasonably can underlie a futures contract on a forward looking basis. 10 9 7 U.S.C. 1a(4). Section 1a(4) of the Act enumerates the following commodities: wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice. 10 *See United States* v. *Valencia* , No. H-03-024, 2003 WL 23174749 at *8 (S.D. Tex Aug. 25, 2003) (noting that the determination of whether West Coast natural gas is “a commodity in which contracts for future delivery are presently or in the future dealt in,” is a fact question, and that “there is no evidence that West Coast gas could not in the future be traded on a futures exchange.”). In addition to Section 1a(4), Section 1a(13) of the Act identifies certain interests as excluded commodities and thereby gives further shape to the statutory definition of commodity. 11 The Section 1a(13) definition of excluded commodity is composed of four subsections. The third subsection defines the term to include any economic or commercial index that is based on prices, rates, values, or levels not within the control of any party to the relevant contract. The fourth subsection of Section 1a(13) provides that an excluded commodity includes an occurrence, extent of an occurrence, or contingency associated with a financial or economic consequence that is not within the control of the parties to the relevant transaction. 11 7 U.S.C. 1a(13). Section 1a(13) of the Act provides that: The term “excluded commodity” means—
(i)an interest rate, exchange rate, currency, security, security index, credit risk or measure, debt or equity instrument, index or measure of inflation, or other macroeconomic index or measure;
(ii)any other rate, differential, index, or measure of economic or commercial risk, return, or value that is—
(I)not based in substantial part on the value of a narrow group of commodities not described in clause (i); or
(II)based solely on one or more commodities that have no cash market;
(iii)any economic or commercial index based on prices, rates, values, or levels that are not within the control of any party to the relevant contract, agreement, or transaction; or
(iv)an occurrence, extent of an occurrence, or contingency (other than a change in the price, rate, value, or level of a commodity not described in clause (i)) that is—
(I)beyond the control of the parties to the relevant contract, agreement, or transaction; and
(II)associated with a financial, commercial, or economic consequence. For the purpose of discussion and analysis, the types of event contracts that Commission staff has reviewed can be categorized, albeit imperfectly, as contracts that are based on narrow commercial measures and events, contracts based on certain environmental measures and events, and contracts based upon general measures and events. Narrow commercial measures quantify and reflect the rate, value, or level of particularized commercial activity, such as a specific farmer's crop yield. Narrow commercial events, on the other hand, are events that might, in and of themselves, have commercial implications, such as changes in corporate officers or corporate asset purchases. Environmental measures can be characterized as quantifications of weather phenomena, such as the volatility of precipitation or temperature levels, that do not predictably correlate to commodity market prices or other measures of broad economic or commercial activity. By comparison, environmental events can include the formation of a specific type of storm, within an identifiable geographic region, the likelihood of which will not predictably correlate to commodity market prices or measures of broad economic or commercial activity. General measures can be described as measures that are not commercial or environmental measures. As such, general measures do not quantify the rate, value, or level of any commercial or environmental activity and can, for example, include the number of hours that U.S. residents spend in traffic annually or the vote-share of a particular presidential candidate. Similarly, general events, such as whether a Constitutional amendment will be adopted or whether two celebrities will decide to marry, can be described as events that do not reflect the occurrence of any commercial or environmental event. The category of general measures and events can be further divided into a multitude of subcategories, such as political or entertainment measures or events. Since 1992, Commission-regulated exchanges have listed for trading a variety of commodity futures and options contracts with payout terms based on interests other than price-based interests. These contracts involve interests as diverse as regional insured property losses, the count of bankruptcies, temperature volatilities, corporate mergers, and corporate credit events. 12 While not strictly price-based, the interests underlying these contracts have been viewed by Commission staff as having generally-accepted and predictable financial, commercial or economic consequences. In other words, unlike the interests that event contracts cover, these underlying interests have been viewed as measures and occurrences that reasonably could be expected to correlate to market prices or other broad-based commercial or economic measures or activities. 12 For example, the Chicago Board of Trade's catastrophe single event insurance option contracts (which are no longer listed) paid out a fixed amount if and only if insured property damage exceeded $10 billion for a specific region during a specified interval of time. IV. Further Statutory Background Federal regulations were initially applied to commodity derivatives trading in 1921. 13 At that time, Congress acknowledged that commodity futures markets could benefit commerce by facilitating the hedging of commercial risks and the discovery of reliable commodity prices. 14 The Grain Futures Act of 1922, the forerunner to the CEA, consequently was enacted to promote the financial vitality of futures trading by limiting price manipulations and other disturbances that were prevalent at the time and widely perceived to result from excessive speculation. 15 13 *See, e.g., Hearing on Futures Trading Before the House Committee on Agriculture* , 66th Cong., 3rd Sess. 1043 (1921); *Hearings on H.R. 5676 Before the Senate Committee on Agriculture and Forestry* , 67th Cong., 1st Sess. 452 (1921); *Hearings on Futures Trading Before the House Committee on Agriculture* , 67th Cong. 1st Sess. 7-9 (1921); 61 Cong. Rec. 4761
(1921)(remarks of Senator Capper, the sponsor of the Senate bill which became the Futures Trading Act of 1921 (later restyled as the Grain Futures Act of 1922 when found to be unconstitutional for its use of taxation to penalize off-exchange futures trading)). 14 *See* S. Rep. No. 871 (August 23, 1922). The Congressional record is replete with discussion of the commercial importance of commodity futures trading. The record suggests that commercial interests must be able to look to properly functioning commodity futures markets for market information and products that facilitate the making of marketing, financing, and distribution decisions. S. Rep. No. 93-1131, at 12 (1974). The Congressional record also indicates that an initial purpose behind regulating commodity futures trading was to secure fair and orderly markets for producers and other commercial participants who used the markets for price basing and hedging. *Hearings on S. 2485, S. 2578, S. 2837 and H.R. 1311 before the Senate Committee on Agriculture and Forestry* , 93d Cong., 2d Sess. at 234 (1974); *see also* 80 Cong. Rec. 10739 (April 11, 1974). 15 *E.g.* , 61 Cong. Rec. 4761-4763
(1921)(remarks of Senator Capper); 61 Cong. Rec. 1379
(1921)(remarks of Rep. Bland); 61 Cong. Rec. 1313-1314 (remarks of Rep. Tincher, the sponsor of the House bill which became the 1921 Act); 61 Cong. Rec. 1376
(1921)(remarks of Rep. Gensman). In identifying the national public interests that render federal regulation necessary, the Act focuses on the commercial benefits that well-functioning derivatives markets can provide by broadly expressing their critical functions. Customarily, hedging and price basing have been identified as two critical functions of the commodity derivatives markets. 16 For instance, Section 3 of the Act, as amended by the Commodity Futures Modernization Act of 2000 (CFMA), 17 finds that transactions subject to the CEA are affected with the national public interest because they provide a means for “managing and assuming price risks.” Section 3 of the Act also identifies price discovery and price dissemination as separate public interests warranting Federal regulation. 18 16 Hedging occurs when positions acquired are economically appropriate to the reduction of risks in the conduct and management of a commercial enterprise. *See, e.g.* , 17 CFR 1.3(z) (definition of bona fide hedging). Price basing, a function of price discovery and dissemination, can occur when commercial entities enter into transactions in a particular commodity based upon commodity futures prices for that or a related commodity, oftentimes at a differential. 17 Appendix E, section 108, Pub. L. 106-554, 114 Stat. 2763. 18 The hedging and price basing purposes of commodity futures trading are emphasized in other provisions of the Act as well. *See, e.g.* , 7 U.S.C. 6a, 6b, and 6c. As a matter of background, the provision in the Grain Futures Act that was the forerunner of current CEA Section 3 provided that: Transactions in grain involving the sale thereof for future delivery as commonly conducted on boards of trade and known as “futures” are affected with a national public interest; that such transactions are carried on in large volume by the public generally and by persons engaged in the business of buying and selling grain and the products and by-products thereof in interstate commerce; that the prices involved in such transactions are generally quoted and disseminated throughout the United States and in foreign countries as a basis for determining the prices to the producer and the consumer of grain and the products and by-products thereof and to facilitate the movements thereof in interstate commerce; that such transactions are utilized by shippers, dealers, millers, and others engaged in handling grain and the products and by-products thereof in interstate commerce as a means of hedging themselves against possible loss through fluctuations in price; that the transactions and prices of grain on such boards of trade are susceptible to speculation, manipulation, or control, which are detrimental to the producer or the consumer and the persons handling grain and products and by-products thereof in interstate commerce, and that such fluctuations in prices are an obstruction to and a burden upon interstate commerce in grain and the products and by-products thereof and render regulation imperative for the protection of such commerce and the national public interest therein. Grain Futures Act, ch. 369, 42 Stat. 998 (Sept. 21, 1922). In 1936, Congress restyled the Grain Futures Act as the Commodity Exchange Act and amended this provision to substitute the word “commodity” for “grain.” Pub. L. 74-675, section 2, 49 Stat. 1491 (June 15, 1936). Although repealed by the CFMA, former Section 5(g) 19 of the Act may be relevant to analyzing the findings and purposes discussed in Section 3 of the Act. Former Section 5(g) provided that the Commission could not designate a board of trade as a contract market unless the board of trade demonstrated that transactions for future delivery in the commodity for which designation as a contract market was sought “will not be contrary to the public interest.” 20 The public interest test of Section 5(g) included an “economic purpose” test, subject to a final test of the public interest. 21 The economic purpose test applied under former Section 5(g) was used to prohibit the trading of certain contracts. Notably, the economic purpose test regarding contracts appropriate for trading on a futures exchange was not necessarily congruent with the scope of the Commission's jurisdiction. Accordingly, while futures contracts that failed the economic purpose test were prohibited from trading on futures exchanges and thus illegal because of the on-exchange trading requirement, they (and any instrument with identical terms) remained futures contracts, fully subject to the Commission's jurisdiction. 19 7 U.S.C. 7(g), *as amended* by the Commodity Futures Trading Commission Act of 1974, Pub. L. 93-463, 88 Stat. 1389 (1974). In 1992, Section 5(g) was redesignated Section 5(7) of the Act. *See* Futures Trading Practices Act of 1992, Pub. L. 102-546, 106 Stat. 3590 (1992). The CFMA repealed all of former Section 5 of the Act, including Section 5(g) (redesignated as Section 5(7)), and replaced it with current Section 5. Section 5 was radically restructured by the CFMA to provide for designation criteria and core principles with which a DCM must comply. Appendix E of Pub. L. 106-554, 114 Stat. 2763 (2000). 20 The House Committee on Agriculture stressed that contracts that could be expected to be used almost entirely for speculation would be against the public interest. H.R. Rep. No. 975, 93 Cong., 2d Sess. 29 (1974). 21 *See* H.R. Rep. No. 1383, 93d Cong., 2d Sess. 36 (1974). By enacting the CFMA, Congress sought “to promote innovation for futures and derivatives and to reduce systemic risk by enhancing legal certainty in the markets for certain futures and derivatives transactions[.]” 22 As demonstrated by the IEM, innovative event markets have the capacity to facilitate the discovery of information, and thereby provide potential benefits to the public. Subject to certain exceptions, Section 4(c)(1) of the Act gives the Commission the authority to “promote responsible economic or financial innovation and fair competition” by exempting any transaction or class of transactions from any of the provisions of the Act, including the requirement that they trade on Commission-regulated markets, where the Commission determines that such action would be consistent with the public interest. Pursuant to Section 4(c), Congress gave to “the Commission a means of providing certainty and stability to existing and emerging markets so that financial innovation and market development can proceed in an effective and competitive manner.” 23 Under Section 4(c), the Commission has the discretion to grant an exemption to certain classes of transactions without having to make a determination that such transactions are subject to the Act in the first instance. 24 Notably, the Commission can use its Section 4(c) exemptive authority not only on a case-by-case, or product-by-product basis, but may also use the authority to establish a set of regulatory provisions applicable to a defined class of products. 22 House Report No. 106-711(III) September 6, 2000. 23 House Conference Report 102-978, 1992 U.S.C.C.A.N. 3179, 3213. 24 With respect to the exercise of this discretion, the House-Senate Conference Committee responsible for the review of Section 4(c) stated that: The Conferees do not intend that the exercise of exemptive authority by the Commission would require any determination beforehand that the agreement, instrument, or transaction for which an exemption is sought is subject to the Act. Rather, this provision provides flexibility for the Commission to provide legal certainty to novel instruments where the determination as to jurisdiction is not straightforward. Rather than making a finding as to whether a product is or is not a futures contract, the Commission in appropriate cases may proceed directly to issuing an exemption. Conf. Report at 3214-3215. Although Section 4(c) only speaks to futures contracts, Section 4c(b) of the Act, the Commission's plenary authority to regulate transactions that involve commodity options, provides the Commission with comparable exemptive authority for options. V. Issues for Comment A. Request for Comment The following questions consider the Commission's regulatory purview over event contracts, the interests that may appropriately underlie Commission-regulated transactions, and the appropriate regulatory treatment of event contracts. The Commission encourages comments on the specific questions posed, as well as the broad range of issues raised in this concept release. In providing comments, please describe your relevant experience and discuss in detail the facts and legal provisions that support your conclusions. Furthermore, please consider the Commission's mandate to protect commodity futures and options markets and customers, and ensure the integrity of the commodity derivatives marketplace, as well as the expected effects of any Commission action on competition, efficiency, innovation and the financial integrity of transactions. Any recommendation with respect to the regulatory treatment of event contracts and markets should be consistent with and supported by the Act, practical, and amenable to effective and efficient implementation. B. Public Interest 1. What public interests are served by event contracts that are designed and will principally be traded for information aggregation purposes and not for commercial risk management or pricing purposes? 2. How are these interests consistent with the public interest goals embodied in the Act? 3. What calculations, analyses, variables, and factors could be used to objectively determine the social value of information to the general public that may be discovered through trading in event contracts? Should this be a factor in determining whether the Commission plays a role in regulating these markets? C. Jurisdictional Determinations 4. What characteristics or traits are common to or should be used to identify event contracts and event markets? 5. How do these characteristics and traits differ from those of commodity futures and options contracts that customarily have been regulated by the Commission? How are they similar? 6. Are there criteria based on the provisions of the Act that could be used to make jurisdictional determinations with respect to event contracts and markets? 7. Given the purposes and history of the Act, would it be appropriate for the Commission to apply a test premised on commercial risk management or pricing functions to demarcate the Commission's jurisdiction over particular contracts? If so, what factors could be used to make such a determination? 8. Given the purposes and history of the Act, would it be appropriate for the Commission to apply any test premised on the economic purpose of certain types of transactions to demarcate the Commission's jurisdiction over particular contracts? If so, what factors could be used to make such a determination? 9. What calculations, analyses, variables and factors would be appropriate in determining whether the impact of an occurrence or contingency will result in a financial, commercial or economic consequence that is identified in Section 1a(13) of the Act? 10. What calculations, analyses, variables, and factors would be appropriate in determining whether an economic or commercial index that is based on prices, rates, values, or levels should or should not qualify as an excluded commodity under Section 1a(13) of the Act? 11. What identifiable factors, statutorily based or otherwise, limit the events and measures that may underlie event contracts when such contracts are treated as Commission-regulated transactions? 12. What objective and readily identifiable factors, statutorily based or otherwise, could be used to distinguish event contracts that could appropriately be traded under Commission oversight from transactions that may be viewed as the functional equivalent of gambling? 13. The Commission notes that Section 12(e) of the Act generally provides that the CEA supersedes and preempts other laws, including state and local gaming and bucket shop laws, with respect to transactions executed on or subject to the rules of a Commission-regulated market, or with respect to transactions exempted from the Act pursuant to the Commission's exemptive authority under Section 4(c) of the Act. What are the implications of possibly preempting state gaming laws with respect to event contracts and markets that are treated as Commission-regulated or exempted transactions? 14. Should certain underlying events or measures—such as those based on assassinations or terrorist activities—be prohibited altogether due to the social perception and impact of such events? What statutory or other legal basis would support this treatment? 15. Are there event contracts, such as political event contracts, that should be prohibited from trading under the Act, or that deserve separate treatment or consideration, due to the nature and importance of their outcomes? What statutory or other legal basis would support this treatment? D. Legal Implementation 16. Is it appropriate for the Commission to direct certain or all event contracts onto markets that are regulated differently from and perhaps less stringently than DCMs? For example, it may be warranted or necessary to treat event markets that aggregate information solely for academic or research purposes, event markets set-up for internal corporate purposes, or event markets that offer exceedingly low notional value contracts to traders differently than markets that possess the attributes of traditional DCMs. 17. Is it appropriate for the Commission to use the Section 4(c) exemptive authority of the Act for implementing a regulatory scheme for event contracts and markets? In this regard, the Commission notes that it has the discretion to grant an exemption under Section 4(c) to certain classes of transactions without having to make a determination as to whether such transactions are subject to the Act in the first instance. 18. Is the issuance of staff no-action relief, such as the relief issued to the IEM, an appropriate or preferable means for establishing regulatory certainty for event contracts and markets? Is a policy statement appropriate or preferable? 19. What are the benefits and drawbacks of permitting certain event markets to operate pursuant to Commission established conditions that are similar to the conditions under which the IEM operates? E. Market Participants 20. Would it be appropriate to allow market participants, and in particular, retail customers, to trade on Commission-regulated event markets with the knowledge that the Commission may not be able to effectively monitor the measures or events that underlie certain event contracts? 21. What unique protections and prophylactic measures are appropriate or necessary for the protection of retail users of event contracts and markets? 22. What are the implications of permitting the intermediation of event contracts, including intermediation on behalf of retail market participants, both with respect to trade execution and clearing? 23. Are there any types of trader or intermediary conduct, peculiar to event contracts and markets, that should be prohibited or monitored closely by regulators? 24. What other factors could impact the Commission's ability, given its limited resources, to properly oversee or monitor trading in event contracts? Issued in Washington, DC, on May 1, 2008 by the Commission. David A. Stawick, Secretary of the Commission. [FR Doc. E8-9981 Filed 5-6-08; 8:45 am] BILLING CODE 6351-01-P DEPARTMENT OF DEFENSE Office of the Secretary [Transmittal Nos. 08-49] 36(b)(1) Arms Sales Notification AGENCY: Department of Defense, Defense Security Cooperation Agency. ACTION: Notice. SUMMARY: The Department of Defense is publishing the unclassified text of a section 36(b)(1) arms sales notification. This is published to fulfill the requirements of section 155 of Public Law 104-164 dated 21 July 1996. FOR FURTHER INFORMATION CONTACT: Ms. B. English, DSCAIDBO/CFM,
(703)601-3740. The following is a copy of a letter to the Speaker of the House of Representatives, Transmittals 08-49 with attached transmittal, policy justification, and Sensitivity of Technology. Dated: April 29, 2008. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. EN07MY08.000 EN07MY08.001 EN07MY08.002 EN07MY08.003 EN07MY08.004 EN07MY08.005 [FR Doc. E8-9827 Filed 5-6-08; 8:45 am] BILLING CODE 5001-06-C DEPARTMENT OF DEFENSE Office of the Secretary [Transmittal Nos. 08-51] 36(b)(1) Arms Sales Notification AGENCY: Department of Defense, Defense Security Cooperation Agency. ACTION: Notice. SUMMARY: The Department of Defense is publishing the unclassified text of a section 36(b)(1) arms sales notification. This is published to fulfill the requirements of section 155 of Public Law 104-164 dated 21 July 1996. FOR FURTHER INFORMATION CONTACT: Ms. B. English, DSCA/DBO/CFM,
(703)601-3740. The following is a copy of a letter to the Speaker of the House of Representatives, Transmittals 08-51 with attached transmittal, policy justification, and Sensitivity of Technology. April 29, 2008. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. BILLING CODE 5001-06-M EN07MY08.006 EN07MY08.007 EN07MY08.008 EN07MY08.009 [FR Doc. E8-9828 Filed 5-6-08; 8:45 am] BILLING CODE 5001-06-C DEPARTMENT OF DEFENSE Office of the Secretary [Docket ID: DoD-2008-OS-0045] Submission for OMB Review; Comment Request AGENCY: Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics, DoD. ACTION: Notice. In compliance with Section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, the Office of the Deputy Under Secretary of Defense for Industrial Policy (ODUSD(IP)) announces a proposed information collection and seeks public comment on the provisions thereof. Comments are invited on:
(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate of the burden of the proposed information collection;
(c)ways to enhance the quality, utility, and clarity of the information to be collected; and
(d)ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology. DATES: Consideration will be given to all comments received by July 7, 2008. ADDRESSES: You may submit comments, identified by docket number and title, by any of the following methods: • Federal eRulemaking Portal: *http://www.regulations.gov.* Follow the instructions for submitting comments. • Mail: Federal Docket Management System Office, 1160 Defense Pentagon, Washington, DC 20301-1160. *Instructions:* All submissions received must include the agency name, docket number and title for this **Federal Register** document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at *http://www.regulations.gov* as they are received without change, including any personal identifiers or contact information. FOR FURTHER INFORMATION CONTACT: To request more information on this proposed information collection, please write to the Office of the Deputy Under Secretary of Defense for Industrial Policy, 241 18th Street South, Crystal Square 4, Suite 501, ATTN: Dawn Vehmeier, Arlington, VA 22202, or e-mail us at *Industrial_Policy@osd.mil* . *Title, Associated Form, and OMB Number:* Foreign Sourcing for Defense Applications; OMB Number 0704-0419. *Needs and Uses:* The Deputy Under Secretary of Defense (Industrial Policy) has been assigned responsibility to determine the extent of foreign sourcing and any relevant impact to on-going programs producing precision munitions, consumables and selected high interest force protection programs. *Affected Public:* Business or other for profit. *Number of Respondents:* 500. *Responses Per Respondent:* 1. *Annual Responses:* 500. *Average Burden Per Response:* 5 hours. *Annual Burden Hours:* 2,500. *Frequency:* On occasion. *Respondent's Obligation:* Voluntary. SUPPLEMENTARY INFORMATION: Summary of Information Collection Specifically, ODUSD(IP) will evaluate the:
(1)Extent of foreign sourcing within a sampling of operationally-important products;
(2)impact of foreign sourcing on military readiness; and
(3)extent to which DoD actions encourage or discourage use of foreign sources. To ensure that it addresses emerging foreign sourcing issues, the Department of Defense
(DoD)will collect information from prime contractors and first and second tier subcontractors. Dated: May 1, 2008. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. E8-10073 Filed 5-6-08; 8:45 am] BILLING CODE 5001-06-P DEPARTMENT OF DEFENSE Office of the Secretary [Docket ID: DoD-2008-HA-0046] Proposed New Collection, Comment Request AGENCY: Office of the Assistant Secretary of Defense for Health Affairs, DoD. ACTION: Notice. In compliance with Section 3506 (c)(2)(A) of the Paperwork Reduction Act of 1995, the Office the Assistant Secretary of Defense for Health Affairs announces a proposed new information collection and seeks public comment on the provisions thereof. Comments are invited on:
(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
(b)the accuracy of the agency's estimate of the burden of the proposed information collection;
(c)ways to enhance the quality, utility, and clarity of the information to be collected; and
(d)ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology. DATES: Consideration will be given to all comments received by July 7, 2008. ADDRESSES: You may submit comments, identified by docket number and or RIN number and title, by either of the following methods: • Federal eRulemaking Portal: *http://www.regulations.gov.* Follow the instructions for submitting comments. • *Mail:* Federal Docket Management System Office, 1160 Defense Pentagon, Washington, DC 20301-1160. *Instructions:* All submissions received must include the agency name and docket number or Regulatory Information Number
(RIN)for this **Federal Register** document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at *http://www.regulations.gov* as they are received without change, including any personal identifiers of contact information. FOR FURTHER INFORMATION CONTACT: To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Office of the Assistant Secretary of Defense for Health Affairs, Force Health Protection and Readiness, ATTN: Caroline Miner, 5113 Leesburg Pike, Suite 901, Falls Church, VA, 22041, or call
(703)575-2677. *Title; Associated Form; and OMB Number:* Researcher Responsibilities Form; OMB Number 0720-TBD. *Needs and Uses:* This collection instrument serves to document researcher's understanding and acceptance of the regulatory and ethical responsibilities for including humans as subjects in research. Principal and co-principal investigators must have the proposed, signed form on file before they may engage in research conducted, sponsored, or supported by entities under the purview of the Under Secretary of Defense for Personnel and Readiness. *Affected Public:* Federal government; business or other for-profit; not-for-profit institutions. *Annual Burden Hours:* 293. *Number of Respondents:* 585. *Responses Per Respondent:* 1. *Average Burden Per Response:* .50. *Frequency:* On occasion; original document submitted one time per researcher. Once their document is on file, a researcher may reaffirm their commitment every three years electronically if they remain engaged in human subject research. SUPPLEMENTARY INFORMATION: Summary of Information Collection Federal Government institutions wishing to conduct, sponsor, or support research on human subjects must first submit for approval to duly designated authorities an Assurance that they will comply with established guidelines in such research. Such Assurances are granted by components of DoD and by the Department of Health and Human Services (HHS). New DoD guidance now requires principal and co-principal investigators individually and explicitly to acknowledge that they understand and accept responsibility for protecting the rights and welfare of human research subjects. All principal and co-principal investigators engaged in research supported or conducted under the purview of the Under Secretary of Defense for Personnel and Readiness must read and sign a document that attests to their commitment to abide by the provisions of:
(a)*The Belmont Report: Ethical Principles and Guidelines for the Protection of Human Subjects of Research;*
(b)the U.S. Department of Defense
(DoD)regulations for the protection of human subjects at Title 32, Code of Federal Regulations, Part 219 and DoD Directive 3216.02;
(c)the Assurance of the engaged institution; relevant institutional policies and procedures where appropriate; and other Federal, State, or local regulations where appropriate. The Office of the Assistant Secretary of Defense for Health Affairs announces the intent to establish and use a new document format for this purpose and seeks public comment on the provisions thereof. Respondents are professionals who have been designated as principal or co-principal investigators. When preparing to initiate work on their first human subject research protocol, each principal investigator and co-principal investigators must assure they have the proposed Researcher Responsibilities form on file with the Office of the Under Secretary of Defense for Personnel and Readiness Component Designated Official Office. In the first year this may require new forms from approximately 585 investigators, most already doing research. After the first year, the burden will level off to approximately 85. The form is two pages in length including statements agreed to and half a page for respondent signature and contact information. Respondents generally will be required to have the signed form scanned and forwarded electronically. The form will be filed electronically and form completion will be logged into a database. After three years, if a researcher still is engaged in research with the Office of the Under Secretary of Defense for Personnel and Readiness, he/she will be asked to reaffirm his/her commitment electronically. This information collection does not involve sensitive personal information and requires no special confidentiality measures. Dated: May 1, 2008. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. 1 [FR Doc. E8-10074 Filed 5-6-08; 8:45 am] BILLING CODE 5001-06-P DEPARTMENT OF DEFENSE Office of the Secretary Threat Reduction Advisory Committee Closed Meeting AGENCY: Defense Threat Reduction Agency, Office of the Under Secretary of Defense (Acquisition, Technology and Logistics); Department of Defense. ACTION: Federal Advisory Committee meeting notice; correction. SUMMARY: The Department of Defense published an announcement of a closed session of the Threat Reduction Advisory Committee on April 23, 2008 (73 FR 21920-21921). The meeting date was incorrect. This notice is being published to provide the correct meeting date of June 26, 2008. All other information in the previous notice remains the same. DATES: Thursday, June 26, 2008 (8 a.m. to 4 p.m.). FOR FURTHER INFORMATION CONTACT: Contact Mr. Eric Wright, Defense Threat Reduction Agency/AST, 8725 John J. Kingman Road, MS 6201, Fort Belvoir, VA 22060-6201, Phone:
(703)767-5717, Fax:
(703)767-5701, E-mail: *eric.wright@dtra.mil.* Dated: May 1, 2008. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. E8-10070 Filed 5-6-08; 8:45 am] BILLING CODE 5001-06-P DEPARTMENT OF DEFENSE Department of the Army Notice of Intent To Prepare an Environmental Impact Statement
(EIS)for Grow the Army
(GTA)Actions at Fort Carson, CO AGENCY: Department of the Army, DoD. ACTION: Notice of Intent (NOI). SUMMARY: As part of the GTA effort, the U. S. Army intends to prepare an EIS to analyze the environmental and socioeconomic impacts resulting from the decision to station a new Infantry Brigade Combat Team
(IBCT)at Fort Carson. The EIS will also analyze Fort Carson's Butts Army Airfield
(BAAF)as a potential location for stationing a Combat Aviation Brigade
(CAB)in the future. ADDRESSES: For questions regarding the EIS, please contact Ms. Deb Owings or Ms. Robin Renn, Fort Carson National Environmental Policy Act Coordinators, 1638 Elwell Street, Building 6236, Fort Carson, CO 80913-4000. Written comments may be mailed to that address or e-mailed to *CARSDECAMNEPA@conus.army.mil.* FOR FURTHER INFORMATION CONTACT: Ms. Dee McNuff, Fort Carson Public Affairs Office at
(719)526-1269, during normal business hours. SUPPLEMENTARY INFORMATION: Fort Carson consists of approximately 137,000 acres of DOD-managed land south of Colorado Springs (east of the Rocky Mountain Front Range) and occupies portions of El Paso, Pueblo, and Fremont counties. The Pinon Canyon Maneuver Site
(PCMS)is the primary maneuver training area for Fort Carson. In addition to the units stationed there, Fort Carson and the PCMS also provide training to Reserve units and the National Guard. The PCMS is located approximately 150 miles southeast of Fort Carson and consists of approximately 235,000 acres. The stationing of additional BCTs and other force structure realignment actions across the Army was analyzed in the 2007 Final Programmatic EIS for Army Growth and Force Structure Realignment. The Record of Decision determined that Fort Carson would receive an additional IBCT contingent on site specific NEPA analysis. The Fort Carson GTA EIS will analyze environmental and socioeconomic impacts as a result of this decision. Also analyzed will be the potential stationing of a CAB and newly identified projects that would be required to support GTA actions. Implementing these requirements would involve constructing new facilities at Fort Carson to support an IBCT (approximately 4,500 additional Soldiers and their dependents), the potential stationing of a CAB (approximately 2,800 Soldiers and their dependents) and upgrading ranges. Increased use of live-fire training ranges and maneuver areas would occur at Fort Carson and the PCMS. The Fort Carson GTA EIS will analyze the impact of several alternatives including the No Action Alternative. Alternatives to be examined by the EIS may consist of alternative siting locations within Fort Carson for facility/utility construction projects, renovation and use of existing facilities. The EIS will also examine increases in land use intensity resulting from training activities connected with GTA stationing decisions. Under the No Action Alternative, the stationing of a new IBCT and CAB at Fort Carson would not be implemented. Impacts analyzed will include a wide range of environmental resource areas including, but not limited to, air quality, traffic, noise, water resources, biological resources, cultural resources, socioeconomics, utilities, land use, solid and hazardous materials/waste, and cumulative environmental effects. Additional resources and conditions may be identified as a result of the scoping process initiated by this NOI. The public will be invited to participate in the scoping process which includes several scoping meetings to provide input on the proposed actions and alternatives in the EIS. The public will also be invited to review and comment on the Draft EIS. These public involvement opportunities will be announced in the local news media. Comments from the public will be considered before any decision is made regarding implementing the proposed action at Fort Carson. Dated: May 1, 2008. Addison D. Davis, IV, Deputy Assistant Secretary of the Army (Environment, Safety and Occupational Health). [FR Doc. E8-10007 Filed 5-6-08; 8:45 am] BILLING CODE 3710-08-M DEPARTMENT OF DEFENSE Department of the Army, Corps of Engineers; Notice of Availability of Supplemental Draft Environmental Impact Statement for the Proposed Rio del Oro Specific Plan Project, in the City of Rancho Cordova, Sacramento County, CA AGENCY: Department of the Army, U.S. Army Corps of Engineers, DoD. ACTION: Notice of availability. SUMMARY: Pursuant to the National Environmental Policy Act (NEPA), the U.S. Army Corps of Engineers (USACE), Sacramento District published a notice in the **Federal Register** on December 8, 2006 (71 FR 71142-71143), informing the public of the availability of the Draft Environmental Impact Statement
(DEIS)for the Rio del Oro Specific Plan Project. USACE, Sacramento District has prepared a Supplemental Draft Environmental Impact Statement (SDEIS) in response to new information. It is now available for review and comment. The SDEIS provides new information and additional analyses related to utilities and service systems (specifically, water supply) and biological resources. Like the 2006 DEIS, the SDEIS analyzes the potential effects of implementing each of five alternative scenarios for a mixed-use development in the approximately 3,828-acre Rio del Oro Specific Plan area, in the City of Rancho Cordova, Sacramento County, CA. The alternatives considered in detail in the SDEIS are:
(1)Proposed Project/Proposed Action (i.e., Proposed Project Alternative), the Applicants' Preferred Alternative;
(2)High Density (Increased Densities Consistent with Sacramento Area Council of Governments Blueprint);
(3)Impact Minimization;
(4)No Federal Action (No Section 404 of the Clean Water Act Permit); and
(5)No Project/No Action (No development). DATES: All written comments must be postmarked on or before July 6, 2008. A public hearing will be held on May 22, 2008 at 6 p.m. at the Rancho Cordova City Hall, located at 2729 Prospect Park Drive, Suite 220, Rancho Cordova, CA 95670. Oral and written comments will be accepted at the public hearing. Written and oral comments will be given equal weight and all comments received or postmarked by the date of the hearing, or by the above date in the absence of a hearing, will be considered by the Corps in preparing the Final EIS. Comments received or postmarked after the date of the hearing, or after the above date in the absence of a hearing, will be considered to the extent practicable. ADDRESSES: Comments may be submitted in writing to: Kathleen Dadey, U.S. Army Corps of Engineers, Sacramento District, Regulatory Branch, 1325 J Street, Room 1480, Sacramento, CA 95814-2922, or via e-mail to *Kathleen.A.Dadey@usace.army.mil.* FOR FURTHER INFORMATION CONTACT: Kathleen Dadey at
(916)557-7253. SUPPLEMENTARY INFORMATION: The environmental effects of five alternatives were evaluated in detail in the 2006 DEIS. Under the Proposed Project/Proposed Action (Proposed Project Alternative), buildout of the project would occur in five phases over 25-30 years. The project provides for construction of approximately 11,601 residential dwelling units in three residential land use classifications on 1,920 acres, along with commercial land uses, neighborhood parks, and other uses such as a landscape corridor and greenbelt, and several public schools. New utilities and communications infrastructure would be installed and new roadways and on- and off-site infrastructure improvements would be completed. The project designates a 507-acre wetland preserve area and two elderberry preserve areas on the site. The four alternatives to the Proposed Project/Proposed Action described in the 2006 DEIS are as follows:
(1)The High Density Alternative embraces the concept of “Smart Growth,” consistent with the Sacramento Area Council of Governments Regional Blueprint. Under Smart Growth principles, areas planned for development are developed at higher densities. Although these higher densities may result in greater localized impacts on resources, the overall area of disturbance is reduced by concentrating development in particular locations.
(2)The Impact Minimization Alternative would reconfigure project components to reduce impacts to waters of the United States, including wetlands and high-quality biological habitat.
(3)The No Federal Action Alternative was designed to allow some development of the project site while avoiding the placement of dredged or fill material into waters of the United States.
(4)The No Project/No Action Alternative would preclude development of the project; under this alternative, the majority of the project site would remain under the jurisdiction of the City of Rancho Cordova. After the 2006 DEIS was issued, USACE, Sacramento District determined that the water supply and biological resources portions of the DEIS should be supplemented, as described below. The SDEIS includes a revised water-supply analysis that describes the various sources of water for the project, including short-term sources for development of Phase 1 and long-term water supplies for all phases of development, and impacts associated with providing water to the project. The analysis addresses the following elements set forth in the case of *Vineyard Area Citizens for Responsible Growth, Inc.* v. *City of Rancho Cordova,* 40 Cal. 4th 412 (2007), which was decided after the 2006 DEIS was released: • Reasonable likelihood of the water sources proving available. • Identification and quantification of water demand from project and cumulative development. • Reasonable likelihood of identified water supply meeting the demands of project and cumulative development. • Analysis of alternative sources of water and project contingencies (including curtailment) if water-supply sources are not reasonably likely. • Impacts of water-supply infrastructure. The revised water-supply analysis in the SDEIS also includes consideration of potentially significant impacts that could result from constructing a new water conveyance pipeline and booster pump station, as well as potentially significant impacts that could occur from curtailment of development as a mitigation measure. These impacts were not discussed as part of the 2006 DEIS. The SDEIS also contains a revised biological resources section that incorporates information responding to comments raised during the DEIS public-review period to ensure that the analysis considers significant, relevant public comments. This section also contains new information related to additional biological resource studies that have been performed by the applicants since the DEIS was circulated, and some of the mitigation measures have been expanded or clarified. The expanded mitigation measures do not result in new significant impacts. The biological resources section also contains additional analysis of project consistency with the biological resources goals in the City of Rancho Cordova's general plan. USACE invites full public participation to promote open communication and better decision-making. All persons and organizations that have an interest in the Rio del Oro Specific Plan Project are urged to participate in the NEPA process. A public hearing will be held as described in the DATES section. This hearing will be announced in advance through notices, media news releases, and/or mailings. Copies of the SDEIS may be reviewed at the following locations: 1. U.S. Army Corps of Engineers, Sacramento District Web Site: *http://www.spk.usace.army.mil/;* 2. City of Rancho Cordova City Hall, 2729 Prospect Park Drive, Rancho Cordova, CA 95670; 3. City of Rancho Cordova Planning Department Web site: *http://www.cityofranchocordova.org/Index.aspx?page=128.* Dated: April 29, 2008. Christine Altendorf, Acting District Engineer. [FR Doc. E8-10216 Filed 5-6-08; 8:45 am] BILLING CODE 3710-EZ-P DEPARTMENT OF EDUCATION Office of Elementary and Secondary Education; Overview Information; Advanced Placement Incentive Program; Notice Inviting Applications for New Awards for Fiscal Year
(FY)2008 Catalog of Federal Domestic Assistance
(CFDA)Number: 84.330C. DATES: *Applications Available:* May 7, 2008. *Deadline for Notice of Intent To Apply:* June 6, 2008. *Deadline for Transmittal of Applications:* July 7, 2008. *Deadline for Intergovernmental Review:* September 4, 2008. Full Text of Announcement I. Funding Opportunity Description *Purpose of Program:* The Advanced Placement Incentive
(API)program awards competitive grants designed to increase the successful participation of low-income students in advanced placement courses and tests. The program expands opportunities for low-income students to take college-level classes and earn college credit while still in high school. The program also supports efforts to raise the rigor of the academic curriculum for all students attending high-poverty high schools. *Priority:* In accordance with 34 CFR 75.105(b)(2)(iv), this priority is from section 1705(c) of the ESEA (20 U.S.C 6535(c)). *Absolute Priority:* For FY 2008 and any subsequent year in which we make awards from the list of unfunded applicants from this competition, this priority is an absolute priority. Under 34 CFR 75.105(c)(3) we consider only applications that meet this priority. This priority is: *Implementation of Advanced Placement Programs in High-Poverty Schools.* This priority supports projects that expand access for low-income individuals to advanced placement programs by:
(1)Developing, enhancing, or expanding advanced placement programs in English, mathematics, and science in high schools with a high concentration of low-income students and a pervasive need for access to advanced placement programs;
(2)Involving business and community organizations in the activities to be assisted; and
(3)Providing matching funds from State, local, or other sources to pay for the costs of activities to be assisted. *Note:* In order to meet this absolute priority, an application must identify the specific high schools that will receive project services, and provide evidence that those schools have a high concentration of low-income students. *Competitive Preference Priorities:* Within this absolute priority, we give competitive preference to applications that address the following priorities. *Competitive Preference Priority 1:* This priority is from the notice of final priorities for discretionary grant programs published in the **Federal Register** on October 11, 2006 (71 FR 60045). Under 34 CFR 75.105(c)(2)(i) we award up to an additional 4 points to an application, depending on how well the application meets this priority. This priority is: *Critical-Need Languages.* This priority supports projects that support activities to enable students to achieve proficiency or advanced proficiency or to develop programs in one or more of the following less commonly taught languages: Arabic, Chinese, Korean, Japanese, Russian, and languages in the Indic, Iranian, and Turkic language families. *Competitive Preference Priority 2:* In accordance with 34 CFR 75.105(b)(2)(iv), this priority is from section 1705(c) of the ESEA (20 U.S.C. 6535(c)). Under 34 CFR 75.105(c)(2)(i) we award an additional 1 point to an application that meets this priority. This priority is: *On-Line Advanced Placement Courses.* This priority supports projects that demonstrate an intent to carry out activities to increase the availability of, and participation in, on-line advanced placement courses. Within this absolute priority, we are particularly interested in applications that address the following invitational priority. *Invitational Priority:* For FY 2008 and any subsequent year in which we make awards from the list of unfunded applicants from this competition, this priority is an invitational priority. Under 34 CFR 75.105(c)(1), we do not give an application that meets this invitational priority a competitive or absolute preference over other applications. This priority is: *Training and Incentives for Advanced Placement Teachers.* This priority supports projects that seek to increase the successful participation of low-income individuals in advanced placement courses and tests by:
(1)Compensating teachers of advanced placement courses for completing intensive professional development that enhances their knowledge of the advanced placement subjects they teach; and
(2)Providing financial incentives that reward teachers of advanced placement courses for the successful performance of their students on advanced placement tests. Program Authority: 20 U.S.C. 6535-6537. *Applicable Regulations:*
(a)The Education Department General Administrative Regulations (EDGAR) in 34 CFR parts 74, 75, 77, 79, 80, 81, 82, 84, 85, 97, 98, and 99.
(b)The notice of final priorities for discretionary grant programs published in the **Federal Register** on October 11, 2006 (71 FR 60045). II. Award Information *Type of Award:* Discretionary grants. *Estimated Available Funds:* $12,400,000. Contingent upon the availability of funds and the quality of applications, we may make additional awards in FY 2009 from the list of unfunded applicants from this competition. *Estimated Range of Awards:* $93,040-975,163. *Estimated Average Size of Awards:* $590,476. *Maximum Award:* We will reject any application that proposes a budget exceeding $1,000,000 for a single budget period of 12 months. The Assistant Secretary for Elementary and Secondary Education may change the maximum amount through a notice published in the **Federal Register** . *Estimated Number of Awards:* 21. Note: The Department is not bound by any estimates in this notice. *Project Period:* Up to 36 months. III. Eligibility Information 1. *Eligible Applicants:*
(a)State educational agencies (SEAs);
(b)Local educational agencies (LEAs), including charter schools that are considered LEAs under State law; or
(c)National nonprofit educational entities with expertise in advanced placement services. Note: In the case of an eligible entity that is an SEA, the SEA may use API grant funds to award subgrants to LEAs to enable those LEAs to carry out authorized activities that support the absolute priority for this competition. 2. a. *Cost Sharing or Matching:* In order to meet the absolute priority for this competition, an applicant must provide matching funds from State, local, or other sources to pay for the costs of activities to be assisted. b. *Supplement-Not-Supplant:* Funds provided under this program must be used only to supplement, and not supplant, other non-Federal funds that are available to assist low-income individuals in paying advanced placement test fees or to expand access to advanced placement or pre-advanced placement courses (20 U.S.C. 6536). This restriction also has the effect of allowing projects to recover indirect costs only on the basis of a restricted indirect cost rate, according to the requirements in 34 CFR 75.563 and 34 CFR 76.564 through 76.569. 3. *Other:* *Definitions.* The following definitions are taken from the API program authorizing statute in Title I, Part G of the ESEA (20 U.S.C. 6537). They are repeated in this application notice for the convenience of the applicant.
(a)The term *advanced placement test* means an advanced placement test administered by the College Board or approved by the Secretary. Note: The Department approves advanced placement tests administered by the International Baccalaureate Organization. As part of the grant application process, applicants may request approval of tests from other educational entities that provide comparable programs of rigorous academic courses and testing through which students may earn college credit.
(b)The term *high concentration of low-income students,* used with respect to a school, means a school that serves a student population 40 percent or more of whom are low-income individuals.
(c)The term *low-income individual* means an individual who is determined by an SEA or LEA to be a child, ages 5 through 19, from a low-income family on the basis of data used by the Secretary to determine allocations under section 1124 of the ESEA, data on children eligible for free or reduced-price lunches under the National School Lunch Act, data on children in families receiving assistance under Part A of Title IV of the Social Security Act, or data on children eligible to receive medical assistance under the Medicaid program under Title XIX of the Social Security Act, or through an alternate method that combines or extrapolates from those data. IV. Application and Submission Information 1. *Address to Request Application Package:* You can obtain an application package via the Internet, or from the program office. To obtain a copy via the Internet, use the following address: *http://www.ed.gov/fund/grant/apply/grantapps/index.html.* To obtain a copy from the program office, contact: Ivonne Jaime, U.S. Department of Education, 400 Maryland Avenue, SW., LBJ Building, Room 3W246, Washington, DC 20202-6200. Telephone:
(202)260-1519 or by e-mail: *AdvancedPlacementProgram@ed.gov.* If you use a telecommunications device for the deaf (TDD), call the Federal Relay Service (FRS), toll free, at: 1-800-877-8339. Individuals with disabilities can obtain a copy of the application package in an alternative format (e.g., Braille, large print, audiotape, or computer diskette) by contacting the person or team listed under *Alternative Format* in section VIII of this notice. 2. *Content and Form of Application Submission:* Requirements concerning the content of an application, together with the forms you must submit, are in the application package for this program. *Page Limit:* The application narrative is where you, the applicant, address the selection criteria that reviewers use to evaluate your application. We encourage you to limit the narrative to the equivalent of no more than 40 pages and suggest that you use the following standards: • A “page” is 8.5″ × 11″, on one side only, with 1″ margins at the top, bottom, and both sides. • Double space (no more than three lines per vertical inch) all text in the application narrative. Titles, headings, footnotes, quotations, references, and captions, as well as text in charts, tables, figures, and graphs, can be single spaced. • Use a font that is either 12 point or larger or no smaller than 10 pitch (characters per inch). • *Use one of the following fonts:* Times New Roman, Courier, Courier New, or Arial. • Number all pages consecutively using the style 1 of 40, 2 of 40, and so forth. • Include a Table of Contents with page references. The suggested page limit does not apply to the Table of Contents; forms; the budget section, including the narrative budget justification; the assurances and certifications; the one-page abstract; the resumes; or letters of support. However, the suggested page limit does apply to all of the application narrative section. We further encourage applicants to limit to no more than 20 pages any attachments or appendices that are not resumes or letters of support. 3. *Submission Dates and Times* : *Applications Available* : May 7, 2008. *Deadline for Notice of Intent to Apply:* June 6, 2008. We will be able to develop a more efficient process for reviewing grant applications if we have a better understanding of the number of entities that intend to apply for funding. Therefore, we strongly encourage each potential applicant to send a notification of its intent to apply for funding to *AdvancedPlacementProgram@ed.gov* by June 6, 2008. The notification of intent to apply for funding is optional. Applicants that do not supply this e-mail notification may still apply for funding. *Deadline for Transmittal of Applications:* July 7, 2008. Applications for grants under this competition must be submitted electronically using the Grants.gov Apply site (Grants.gov). For information (including dates and times) about how to submit your application electronically, or in paper format by mail or hand delivery if you qualify for an exception to the electronic submission requirement, please refer to section IV. 6. *Other Submission Requirements* in this notice. We do not consider an application that does not comply with the deadline requirements. Individuals with disabilities who need an accommodation or auxiliary aid in connection with the application process should contact the person listed under FOR FURTHER INFORMATION CONTACT in section VII in this notice. If the Department provides an accommodation or auxiliary aid to an individual with a disability in connection with the application process, the individual's application remains subject to all other requirements and limitations in this notice. *Deadline for Intergovernmental Review:* September 4, 2008. 4. *Intergovernmental Review* : This program is subject to Executive Order 12372 and the regulations in 34 CFR part 79. Information about Intergovernmental Review of Federal Programs under Executive Order 12372 is in the application package for this competition. 5. *Funding Restrictions* : We reference regulations outlining funding restrictions in the *Applicable Regulations* section in this notice. 6. *Other Submission Requirements:* Applications for grants under this competition must be submitted electronically unless you qualify for an exception to this requirement in accordance with the instructions in this section. a. *Electronic Submission of Applications.* Applications for grants under the Advanced Placement Incentive Program, CFDA Number 84.330C, must be submitted electronically using the Governmentwide Grants.gov Apply site at *http://www.Grants.gov.* Through this site, you will be able to download a copy of the application package, complete it offline, and then upload and submit your application. You may not e-mail an electronic copy of a grant application to us. We will reject your application if you submit it in paper format unless, as described elsewhere in this section, you qualify for one of the exceptions to the electronic submission requirement and submit, no later than two weeks before the application deadline date, a written statement to the Department that you qualify for one of these exceptions. Further information regarding calculation of the date that is two weeks before the application deadline date is provided later in this section under *Exception to Electronic Submission Requirement.* You may access the electronic grant application for the Advanced Placement Incentive Program at *http://www.Grants.gov.* You must search for the downloadable application package for this competition by the CFDA number. Do not include the CFDA number's alpha suffix in your search (e.g., search for 84.330, not 84.330C). Please note the following: • When you enter the Grants.gov site, you will find information about submitting an application electronically through the site, as well as the hours of operation. • Applications received by Grants.gov are date and time stamped. Your application must be fully uploaded and submitted and must be date and time stamped by the Grants.gov system no later than 4:30 p.m., Washington, DC time, on the application deadline date. Except as otherwise noted in this section, we will not consider your application if it is date and time stamped by the Grants.gov system later than 4:30 p.m., Washington, DC time, on the application deadline date. When we retrieve your application from Grants.gov, we will notify you if we are rejecting your application because it was date and time stamped by the Grants.gov system after 4:30 p.m., Washington, DC time, on the application deadline date. • The amount of time it can take to upload an application will vary depending on a variety of factors, including the size of the application and the speed of your Internet connection. Therefore, we strongly recommend that you do not wait until the application deadline date to begin the submission process through Grants.gov. • You should review and follow the Education Submission Procedures for submitting an application through Grants.gov that are included in the application package for this competition to ensure that you submit your application in a timely manner to the Grants.gov system. You can also find the Education Submission Procedures pertaining to Grants.gov at *http://e-Grants.ed.gov/help/GrantsgovSubmissionProcedures.pdf.* • To submit your application via Grants.gov, you must complete all steps in the Grants.gov registration process (see *http://www.grants.gov/applicants/get_registered.jsp * ). These steps include
(1)registering your organization, a multi-part process that includes registration with the Central Contractor Registry (CCR);
(2)registering yourself as an Authorized Organization Representative (AOR); and
(3)getting authorized as an AOR by your organization. Details on these steps are outlined in the Grants.gov 3-Step Registration Guide (see *http://www.grants.gov/section910/Grants.govRegistrationBrochure.pdf).* You also must provide on your application the same D-U-N-S Number used with this registration. Please note that the registration process may take five or more business days to complete, and you must have completed all registration steps to allow you to submit successfully an application via Grants.gov. In addition you will need to update your CCR registration on an annual basis. This may take three or more business days to complete. • You will not receive additional point value because you submit your application in electronic format, nor will we penalize you if you qualify for an exception to the electronic submission requirement, as described elsewhere in this section, and submit your application in paper format. • You must submit all documents electronically, including all information you typically provide on the following forms: Application for Federal Assistance (SF 424), the Department of Education Supplemental Information for SF 424, Budget Information—Non-Construction Programs (ED 524), and all necessary assurances and certifications. Please note that two of these forms—the SF 424 and the Department of Education Supplemental Information for SF 424—have replaced the ED 424 (Application for Federal Education Assistance). • You must attach any narrative sections of your application as files in a .DOC (document), .RTF (rich text), or .PDF (Portable Document) format. If you upload a file type other than the three file types specified in this paragraph or submit a password-protected file, we will not review that material. • Your electronic application must comply with any page-limit requirements described in this notice. • After you electronically submit your application, you will receive from Grants.gov an automatic notification of receipt that contains a Grants.gov tracking number. (This notification indicates receipt by Grants.gov only, not receipt by the Department.) The Department then will retrieve your application from Grants.gov and send a second notification to you by e-mail. This second notification indicates that the Department has received your application and has assigned your application a PR/Award number (an ED-specified identifying number unique to your application). • We may request that you provide us original signatures on forms at a later date. *Application Deadline Date Extension in Case of Technical Issues with the Grants.gov System:* If you are experiencing problems submitting your application through Grants.gov, please contact the Grants.gov Support Desk, toll free, at 1-800-518-4726. You must obtain a Grants.gov Support Desk Case Number and must keep a record of it. If you are prevented from electronically submitting your application on the application deadline date because of technical problems with the Grants.gov system, we will grant you an extension until 4:30 p.m., Washington, DC time, the following business day to enable you to transmit your application electronically or by hand delivery. You also may mail your application by following the mailing instructions described elsewhere in this notice. If you submit an application after 4:30 p.m., Washington, DC time, on the application deadline date, please contact the person listed under FOR FURTHER INFORMATION CONTACT in section VII in this notice and provide an explanation of the technical problem you experienced with Grants.gov, along with the Grants.gov Support Desk Case Number. We will accept your application if we can confirm that a technical problem occurred with the Grants.gov system and that that problem affected your ability to submit your application by 4:30 p.m., Washington, DC time, on the application deadline date. The Department will contact you after a determination is made on whether your application will be accepted. Note: The extensions to which we refer in this section apply only to the unavailability of, or technical problems with, the Grants.gov system. We will not grant you an extension if you failed to fully register to submit your application to Grants.gov before the application deadline date and time or if the technical problem you experienced is unrelated to the Grants.gov system. *Exception to Electronic Submission Requirement* : You qualify for an exception to the electronic submission requirement, and may submit your application in paper format, if you are unable to submit an application through the Grants.gov system because— • You do not have access to the Internet; or • You do not have the capacity to upload large documents to the Grants.gov system; and • No later than two weeks before the application deadline date (14 calendar days or, if the fourteenth calendar day before the application deadline date falls on a Federal holiday, the next business day following the Federal holiday), you mail or fax a written statement to the Department, explaining which of the two grounds for an exception prevent you from using the Internet to submit your application. If you mail your written statement to the Department, it must be postmarked no later than two weeks before the application deadline date. If you fax your written statement to the Department, we must receive the faxed statement no later than two weeks before the application deadline date. Address and mail or fax your statement to: Ivonne Jaime, U.S. Department of Education, 400 Maryland Avenue, SW., LBJ Building, Room 3W246, Washington, DC 20202-6200. FAX:
(202)205-4921. Your paper application must be submitted in accordance with the mail or hand delivery instructions described in this notice. b. *Submission of Paper Applications by Mail.* If you qualify for an exception to the electronic submission requirement, you may mail (through the U.S. Postal Service or a commercial carrier) your application to the Department. You must mail the original and two copies of your application, on or before the application deadline date, to the Department at the applicable following address: *By mail through the U.S. Postal Service:* U.S. Department of Education, Application Control Center, Attention: (CFDA Number 84.330C), 400 Maryland Avenue, SW., Washington, DC 20202-4260 or *By mail through a commercial carrier:* U.S. Department of Education, Application Control Center, Stop 4260, Attention: (CFDA Number 84.330C), 7100 Old Landover Road, Landover, MD 20785-1506. Regardless of which address you use, you must show proof of mailing consisting of one of the following:
(1)A legibly dated U.S. Postal Service postmark.
(2)A legible mail receipt with the date of mailing stamped by the U.S. Postal Service.
(3)A dated shipping label, invoice, or receipt from a commercial carrier.
(4)Any other proof of mailing acceptable to the Secretary of the U.S. Department of Education. If you mail your application through the U.S. Postal Service, we do not accept either of the following as proof of mailing:
(1)A private metered postmark.
(2)A mail receipt that is not dated by the U.S. Postal Service. If your application is postmarked after the application deadline date, we will not consider your application. Note: The U.S. Postal Service does not uniformly provide a dated postmark. Before relying on this method, you should check with your local post office. c. *Submission of Paper Applications by Hand Delivery.* If you qualify for an exception to the electronic submission requirement, you (or a courier service) may deliver your paper application to the Department by hand. You must deliver the original and two copies of your application by hand, on or before the application deadline date, to the Department at the following address: U.S. Department of Education, Application Control Center, Attention: (CFDA Number 84.330C), 550 12th Street, SW., Room 7041, Potomac Center Plaza, Washington, DC 20202-4260. The Application Control Center accepts hand deliveries daily between 8 a.m. and 4:30 p.m., Washington, DC time, except Saturdays, Sundays, and Federal holidays. Note for Mail or Hand Delivery of Paper Applications: If you mail or hand deliver your application to the Department—
(1)You must indicate on the envelope and—if not provided by the Department—in Item 11 of the SF 424 the CFDA number, including suffix letter, if any, of the competition under which you are submitting your application; and
(2)The Application Control Center will mail to you a notification of receipt of your grant application. If you do not receive this notification within 15 business days from the application deadline date, you should call the U.S. Department of Education Application Control Center at
(202)245-6288. V. Application Review Information *Selection Criteria:* The selection criteria for this competition are from 34 CFR 75.210 and, where otherwise noted, sections 1702 and 1705 of the ESEA (20 U.S.C. 6532 and 6535). Note: The maximum score for all selection criteria is 95 points. The points or weights assigned to each criterion or subcriterion are indicated in parentheses. Need for the Project In determining need for the proposed project, we will consider the following factors:
(1)The extent to which the application demonstrates a pervasive need for access to advanced placement incentive programs by low-income individuals (5 points) (20 U.S.C. 6535(c)(1)); and
(2)The extent to which specific gaps or weaknesses in services, infrastructure, or opportunities have been identified and will be addressed by the proposed project, including the nature and magnitude of those gaps or weaknesses (10 points). Quality of Project Design In determining the quality of the design of the proposed project, we will consider the following factors:
(1)The extent to which the goals, objectives, and outcomes to be achieved by the proposed project are clearly specified and measurable (5 points);
(2)The extent to which the proposed project will increase the rate at which secondary school students participate in advanced placement courses and increase the numbers of students who receive advanced placement test scores for which college academic credit is awarded (20 points) (20 U.S.C. 6532(7));
(3)The extent to which the proposed activities constitute a coherent, sustained program of training in the field (15 points); and
(4)The extent to which there is effective coordination and articulation between grade levels to prepare students for academic achievement in advanced placement courses (15 points) (20 U.S.C. 6535(d)(C)). Quality of the Management Plan In determining the quality of the management plan for the proposed project, we will consider the following factors:
(1)The adequacy of the management plan to achieve the objectives of the proposed project on time and within budget, including clearly defined responsibilities, timelines, and milestones for accomplishing project tasks (8 points);
(2)The extent to which the time commitments of the project director and principal investigator and other key project personnel are appropriate and adequate to meet the objectives of the proposed project (5 points); and
(3)The extent to which the applicant demonstrates that it will have the capacity to report annually the data required by section 1705(f) of the ESEA (4 points). Adequacy of Resources In determining the adequacy of resources for the proposed project, we will consider the extent to which the applicant assures the availability of matching funds from State, local, or other sources to pay for the cost of activities to be assisted by the proposed project (20 U.S.C. 6535(c)(3))(8 points). VI. Award Administration Information 1. *Award Notices:* If your application is successful, we notify your U.S. Representative and U.S. Senators and send you a Grant Award Notification (GAN). We may notify you informally, also. If your application is not evaluated or not selected for funding, we notify you. 2. *Administrative and National Policy Requirements:* We identify administrative and national policy requirements in the application package and reference these and other requirements in the *Applicable Regulations* section in this notice. We reference the regulations outlining the terms and conditions of an award in the *Applicable Regulations* section in this notice and include these and other specific conditions in the GAN. The GAN also incorporates your approved application as part of your binding commitments under the grant. 3. *Grant Administration:* Applicants should budget for a two-day meeting for project directors to be held annually in Washington, DC. In addition to setting aside funds for travel, hotel, and per diem costs for these meetings, applicants should budget for an estimated $500 per participant for the costs of materials and technical assistance products and services that will be delivered during these meetings. 4. *Reporting:* At the end of your project period, you must submit a final performance report, including financial information, as directed by the Secretary. If you receive a multi-year award, you must submit an annual performance report that provides the most current performance and financial expenditure information as directed by the Secretary under 34 CFR 75.118. The Secretary may also require more frequent performance reports under 34 CFR 75.720(c). For specific requirements on reporting, please go to: *http://www.ed.gov/fund/grant/apply/appforms/appforms.html.* 5. *Performance Measures:* The Department has established six performance measures for assessing the effectiveness of the API program in improving the successful participation in advanced placement courses and tests by students attending public high schools served by API grants. These measures are:
(1)The number of students who enrolled in an advanced placement course at each school served by an API grant, disaggregated by subject.
(2)The number of low-income individuals who enrolled in an advanced placement course at each school served by an API grant, disaggregated by subject.
(3)The number of advanced placement tests taken by students at each school served by an API grant, disaggregated by subject, divided by the number of seniors enrolled in each school at or around October 1.
(4)The number of advanced placement tests taken by low-income individuals at each school served by an API grant, disaggregated by subject.
(5)The scores students at each school served by an API grant earned on advanced placement tests, disaggregated by subject.
(6)The scores low-income individuals at each school served by an API earned on advanced placement tests, disaggregated by subject. These measures constitute the Department's measures of success for this program. Consequently, applicants for a grant under this program are advised to give careful consideration to these measures in identifying their goals and objectives and conceptualizing the approach and evaluation of their proposed projects. If funded, applicants will be asked to collect and report data in their performance and final reports about progress toward these measures. VII. Agency Contact FOR FURTHER INFORMATION CONTACT: Ivonne Jaime, U.S. Department of Education, 400 Maryland Avenue, SW., LBJ Building, Room 3W246, Washington, DC 20202-6200. Telephone:
(202)260-1519 or by e-mail: *AdvancedPlacementProgram@ed.gov.* If you use a TDD, call the FRS, toll free, at 1-800-877-8339. VIII. Other Information *Alternative Format:* Individuals with disabilities can obtain this document and a copy of the application package in an alternative format (e.g., Braille, large print, audiotape, or computer diskette) on request to the program contact person listed under FOR FURTHER INFORMATION CONTACT in section VII in this notice. *Electronic Access to This Document:* You can view this document, as well as all other documents of this Department published in the **Federal Register** , in text or Adobe Portable Document Format
(PDF)on the Internet at the following site: *http://www.ed.gov/news/fedregister.* To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free, at 1-888-293-6498; or in the Washington, DC, area at
(202)512-1530. Note: The official version of this document is the document published in the **Federal Register** . Free Internet access to the official edition of the **Federal Register** and the Code of Federal Regulations is available on GPO Access at: *http://www.gpoaccess.gov/nara/index.html.* Dated: May 2, 2008. Kerri L. Briggs, Assistant Secretary for Elementary and Secondary Education. [FR Doc. E8-10106 Filed 5-6-08; 8:45 am] BILLING CODE 4000-01-P DEPARTMENT OF EDUCATION Notice of Proposed Information Collection Requests AGENCY: Department of Education SUMMARY: The IC Clearance Official, Regulatory Information Management Services, Office of Management, invites comments on the proposed information collection requests as required by the Paperwork Reduction Act of 1995. DATES: Interested persons are invited to submit comments on or before July 7, 2008. SUPPLEMENTARY INFORMATION: Section 3506 of the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) requires that the Office of Management and Budget
(OMB)provide interested Federal agencies and the public an early opportunity to comment on information collection requests. OMB may amend or waive the requirement for public consultation to the extent that public participation in the approval process would defeat the purpose of the information collection, violate State or Federal law, or substantially interfere with any agency's ability to perform its statutory obligations. The IC Clearance Official, Regulatory Information Management Services, Office of Management, publishes that notice containing proposed information collection requests prior to submission of these requests to OMB. Each proposed information collection, grouped by office, contains the following:
(1)Type of review requested, *e.g.* new, revision, extension, existing or reinstatement;
(2)Title;
(3)Summary of the collection;
(4)Description of the need for, and proposed use of, the information;
(5)Respondents and frequency of collection; and
(6)Reporting and/or Recordkeeping burden. OMB invites public comment. The Department of Education is especially interested in public comment addressing the following issues:
(1)Is this collection necessary to the proper functions of the Department;
(2)will this information be processed and used in a timely manner;
(3)is the estimate of burden accurate;
(4)how might the Department enhance the quality, utility, and clarity of the information to be collected; and
(5)how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Dated: May 1, 2008. Angela C. Arrington, IC Clearance Official, Regulatory Information Management Services, Office of Management. Institute of Education Sciences *Type of Review:* New. *Title:* High School Graduation Confirmation Study. *Frequency:* One Time. *Affected Public:* Individuals or household; State, Local, or Tribal Gov't, SEAs or LEAs. *Reporting and Recordkeeping Hour Burden:* *Responses:* 5,130. *Burden Hours:* 1,845. *Abstract:* This study will be conducted as a part of the October Current Population Survey October education supplement. The purpose is to confirm the accuracy of reporting by household respondents of high school graduation status of household members by contacting reported school from which household members ages 18 to 24 were reported graduating. Requests for copies of the proposed information collection request may be accessed from *http://edicsweb.ed.gov* , by selecting the “Browse Pending Collections” link and by clicking on link number 3678. When you access the information collection, click on “Download Attachments” to view. Written requests for information should be addressed to U.S. Department of Education, 400 Maryland Avenue, SW., LBJ, Washington, DC 20202-4537. Requests may also be electronically mailed to *ICDocketMgr@ed.gov* or faxed to 202-401-0920. Please specify the complete title of the information collection when making your request. Comments regarding burden and/or the collection activity requirements should be electronically mailed to *ICDocketMgr@ed.gov.* Individuals who use a telecommunications device for the deaf
(TDD)may call the Federal Information Relay Service
(FIRS)at 1-800-877-8339. [FR Doc. E8-10087 Filed 5-6-08; 8:45 am] BILLING CODE 4000-01-P DEPARTMENT OF ENERGY Environmental Management Site-Specific Advisory Board, Hanford AGENCY: Department of Energy. ACTION: Notice of Open Meeting. SUMMARY: This notice announces a meeting of the Environmental Management Site-Specific Advisory Board (EM SSAB), Hanford. The Federal Advisory Committee Act (Pub. L. 92-463, 86 Stat. 770) requires that public notice of this meeting be announced in the **Federal Register** . DATES: Thursday, June 5, 2008, 9 a.m.-5 p.m.; Friday, June 6, 2008, 8:30 a.m.-4 p.m. ADDRESSES: Red Lion Hotel Hanford House, 802 George Washington Way, Richland, Washington 99352, Phone:
(509)946-7611, Fax:
(509)943-8564. FOR FURTHER INFORMATION CONTACT: Erik Olds, Federal Coordinator, Department of Energy Richland Operations Office, 2440 Stevens Drive, P.O. Box 450, H6-60, Richland, WA 99352; Phone:
(509)372-8656; or E-mail: *Theodore_E_Erik_Olds@orp.doe.gov* . SUPPLEMENTARY INFORMATION: *Purpose of the Board:* The purpose of the Board is to make recommendations to DOE in the areas of environmental restoration, waste management, and related activities. Tentative Agenda • State of Columbia River; • Uniform Safety Systems throughout Hanford; • Configuration Control of Critical Assumptions; • Rattlesnake Mountain; • Update on Office of River Protection's Integrated System Plan; • Update on Tri-Party Agreement Negotiations; • Update from Hanford Advisory Board Leadership Retreat and Board work priorities; • Science and Technology Roadmap; • Update on Nuclear Regulatory Commission and their review of the regulatory processes of the Waste Treatment Plant; • Recap of EM SSAB Chairs Meeting held on April 23-24, 2008 in Richland, Washington; • Committee Updates including: Tank Waste Committee; River and Plateau Committee; Health, Safety and Environmental Protection Committee; Public Involvement Committee; and Budgets and Contracts Committee. *Public Participation:* The meeting is open to the public. Written statements may be filed with the Board either before or after the meeting. Individuals who wish to make oral statements pertaining to agenda items should contact Erik Olds' office at the address or telephone number listed above. Requests must be received five days prior to the meeting and reasonable provision will be made to include the presentation in the agenda. The Deputy Designated Federal Officer is empowered to conduct the meeting in a fashion that will facilitate the orderly conduct of business. Individuals wishing to make public comment will be provided a maximum of five minutes to present their comments. *Minutes:* Minutes will be available by writing or calling Erik Olds' office at the address or phone number listed above. Minutes will also be available at the following Web site: *http://www.hanford.gov/?page=413&parent=397.* Issued at Washington, DC, on May 1, 2008. Rachel Samuel, Deputy Committee Management Officer. [FR Doc. E8-10098 Filed 5-6-08; 8:45 am] BILLING CODE 6450-01-P DEPARTMENT OF ENERGY Office of Energy Efficiency and Renewable Energy State Energy Advisory Board AGENCY: Department of Energy. ACTION: Notice of Open Teleconference. SUMMARY: This notice announces a teleconference of the State Energy Advisory Board (STEAB). The Federal Advisory Committee Act (Pub. L. 92-463; 86 Stat. 770) requires that public notice of these teleconferences be announced in the **Federal Register** . DATES: May 15, 2008 from 2 p.m. to 3 p.m. EDT. FOR FURTHER INFORMATION CONTACT: Gary Burch, STEAB Designated Federal Officer, Acting Assistant Manager, Office of Commercialization and Project Management, Golden Field Office, U.S. Department of Energy, 1617 Cole Boulevard, Golden, CO 80401, Telephone 303/275-4801. SUPPLEMENTARY INFORMATION: *Purpose of the Board:* To make recommendations to the Assistant Secretary for the Office of Energy Efficiency and Renewable Energy regarding goals and objectives, programmatic and administrative policies, and to otherwise carry out the Board's responsibilities as designated in the State Energy Efficiency Programs Improvement Act of 1990 (Pub. L. 101-440). *Tentative Agenda:* Update members on routine business matters. *Public Participation:* The teleconference is open to the public. Written statements may be filed with the Board either before or after the meeting. Members of the public who wish to make oral statements pertaining to agenda items should contact Gary Burch at the address or telephone number listed above. Reasonable provision will be made to include requested topic(s) on the agenda. The Chair of the Board is empowered to conduct the call in a fashion that will facilitate the orderly conduct of business. This notice is being published less than 15 days before the date of the meeting due to programmatic issues. *Notes:* The notes of the teleconference will be available for public review and copying within 60 days on the STEAB Web site, *http://www.steab.org.* Issued at Washington, DC, on May 2, 2008. Rachel Samuel, Deputy Committee Management Officer. [FR Doc. E8-10096 Filed 5-6-08; 8:45 am] BILLING CODE 6450-01-P ENVIRONMENTAL PROTECTION AGENCY [EPA-R09-OAR-2008-0325; FRL-8562-4] Adequacy Status of Motor Vehicle Emissions Budgets in Submitted Coachella Valley 8-hour Ozone Early Progress Plan for Transportation Conformity Purposes; California AGENCY: Environmental Protection Agency (EPA). ACTION: Notice of Adequacy. SUMMARY: In this notice, EPA is notifying the public that the Agency has found that the motor vehicle emissions budgets for 8-hour ozone in the Coachella Valley 8-hour Ozone Early Progress Plan are adequate for transportation conformity purposes. The Coachella Valley 8-hour Ozone Early Progress Plan was submitted to EPA on March 24, 2008 by the California Air Resources Board as a revision to the California State Implementation Plan (SIP). As a result of our adequacy findings, the Southern California Association of Governments and the U.S. Department of Transportation must use these budgets in future conformity analyses once the finding becomes effective. DATES: This finding is effective May 22, 2008. FOR FURTHER INFORMATION CONTACT: Rebecca Rosen, U.S. EPA, Region IX, Air Division AIR-2, 75 Hawthorne Street, San Francisco, CA 94105-3901;
(415)947-4154 or *rosen.rebecca@epa.gov.* SUPPLEMENTARY INFORMATION: Throughout this document, whenever “we,” “us,” or “our” is used, we mean EPA. Today's notice is simply an announcement of a finding that we have already made. EPA Region IX sent a letter to the California Air Resources Board on April 16, 2008 stating that the motor vehicle emissions budgets in the submitted Coachella Valley 8-hour Ozone Early Progress Plan for 2012 are adequate. The finding is available at EPA's conformity Web site: *http://www.epa.gov/otag/stateresources/transconf/adequacy.htm.* The adequate motor vehicle emissions budgets are provided in the following table: Motor Vehicle Emissions Budgets Budget year Volatile organic compounds 1 (tons per day) Nitrogen oxides (tons per day) 2012 7 26 1 The plan uses a comparable State term, reactive organic gases (ROG). Transportation conformity is required by Clean Air Act section 176(c). EPA's conformity rule requires that transportation plans, transportation improvement programs, and projects conform to state air quality implementation plans
(SIPs)and establishes the criteria and procedures for determining whether or not they do. Conformity to a SIP means that transportation activities will not produce new air quality violations, worsen existing violations, or delay timely attainment of the national ambient air quality standards. The criteria by which we determine whether a SIP's motor vehicle emission budgets are adequate for conformity purposes are outlined in 40 CFR 93.118(e)(4). We have described our process for determining the adequacy of submitted SIP budgets in our July 1, 2004 preamble starting at 69 FR 40038 and we used the information in these resources in making our adequacy determination. Please note that an adequacy review is separate from EPA's completeness review, and should not be used to prejudge EPA's ultimate approval action for the SIP. Even if we find a budget adequate, the SIP could later be disapproved. Authority: 42 U.S.C. 7401 *et seq.* Dated: April 16, 2008. Laura Yoshii, Deputy Regional Administrator, Region IX. [FR Doc. E8-9959 Filed 5-6-08; 8:45 am] BILLING CODE 6560-50-M ENVIRONMENTAL PROTECTION AGENCY [FRL-8563-8] EPA Science Advisory Board; Notification of a Public Teleconference Meeting of the Chartered Science Advisory Board AGENCY: Environmental Protection Agency. ACTION: Notice. SUMMARY: The Environmental Protection Agency
(EPA)Science Advisory Board
(SAB)Staff Office announces a public teleconference meeting of the Chartered EPA Science Advisory Board to review a draft report from the SAB's Radiation Advisory Committee Augmented for the review of the draft Multi-Agency Radiation Survey and Assessment of Materials and Equipment (MARSAME) Manual. DATES: The SAB will hold the public teleconference on May 29, 2008. The teleconference will be held from 1:30 p.m. to 3 p.m. (Eastern Time). ADDRESSES: The meeting will be conducted by telephone conference only. FOR FURTHER INFORMATION CONTACT: Any member of the public wishing to obtain general information concerning this public teleconference or meeting should contact Mr. Thomas O. Miller, Designated Federal Officer (DFO), EPA Science Advisory Board (1400F), U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue, NW., Washington, DC 20460; via telephone/voice mail:
(202)343-9982; fax:
(202)233-0643; or e-mail at: *miller.tom@epa.gov.* General information concerning the EPA Science Advisory Board can be found on the SAB Web Site at: *http://www.epa.gov./sab.* SUPPLEMENTARY INFORMATION: The SAB was established by 42 U.S.C. 4365 to provide independent scientific and technical advice to the Administrator on the technical basis for Agency positions and regulations. The SAB is a Federal Advisory Committee chartered under the Federal Advisory Committee Act (FACA), as amended, 5 U.S.C., App. The SAB will comply with the provisions of FACA and all appropriate SAB Staff Office procedural policies. Pursuant to the Federal Advisory Committee Act, Public Law 92-463, notice is hereby given that the EPA SAB will hold a public teleconference meeting to conduct a quality review the SAB Panel's draft *Report on EPA's Draft Entitled “Multi-Agency Radiation Survey and Assessment of Materials and Equipment (MARSAME) Manual,”* of December 2006. *Background:* The EPA SAB Radiation Advisory Committee (RAC), augmented with additional experts, reviewed the *“Multi-Agency Radiation Survey and Assessment of Materials and Equipment (MARSAME) Manual,” Draft Report for Comment, December 2006.* A multi-agency work group with participation by staff from the U.S. Department of Energy, U.S. Nuclear Regulatory Commission, U.S. Department of Defense and U.S. EPA prepared the manual. The multi-agency work group has been active since 1995 and prepares radiological guidance documents. The draft MARSAME manual complements MARSSIM (a surficial soils radiation survey manual) by providing a process for surveying potentially radioactive material and equipment (M&E). It provides guidance to determine whether M&E are sufficiently free of radionuclide contamination to be admitted to or removed from a site. Additional information on this review can be obtained on the EPA SAB Web Site at: *http://yosemite.epa.gov/sab/sabpeople.nsf/WebCommitteesSubcommittees/Radiation%20Advisory%20Committee* and in the **Federal Register** at 72 FR 11356-11358 on the Web at: *http://www.epa.gov/fedrgstr/EPA-SAB/2007/March/Day-13/sab4562.htm* . The purpose of this upcoming teleconference is for the Chartered SAB to conduct a quality review of the draft Panel report. *Availability of Materials:* The draft agenda and other materials will be posted on the SAB Web Site at *http://www.epa.gov/sab* prior to the meeting. For questions and information concerning the Agency's draft document on this topic please contact Dr. Mary E. Clark of the U.S. EPA, ORIA by telephone at
(202)343-9348, fax at
(202)243-2395, or e-mail at: *clark.marye@epa.gov.* *Procedures for Providing Public Input:* Interested members of the public may submit relevant written or oral information for the Chartered SAB's consideration during this quality review meeting. *Oral Statements:* In general, individuals or groups requesting an oral presentation at a public SAB teleconference will be limited to three minutes per speaker, with no more than a total of one-half hour for all speakers. At face-to-face meetings, presentations will be limited to five minutes, with no more than a total of one hour for all speakers. To be placed on the public speaker list, interested parties should contact Mr. Thomas O. Miller, DFO, in writing (preferably via e-mail), by May 21, 2008, at the contact information noted above. *Written Statements:* Written statements should be received in the SAB Staff Office by May 21, 2008, so that the information may be made available to the SAB for their consideration prior to the teleconference meeting. Written statements should be supplied to the DFO via e-mail to *miller.tom@epa.gov* (acceptable file format: Adobe Acrobat PDF, WordPerfect, MS Word, MS PowerPoint, or Rich Text files in IBM-PC/Windows 98/2000/XP format). *Accessibility:* For information on access or services for individuals with disabilities, please contact Mr. Thomas O. Miller at
(202)343-9982 or *miller.tom@epa.gov.* To request accommodation of a disability, please contact Mr. Miller preferably at least ten days prior to the meeting, to give EPA as much time as possible to process your request. Dated: April 30, 2008. Anthony F. Maciorowski, Deputy Director, EPA Science Advisory Board Staff Office. [FR Doc. E8-10138 Filed 5-6-08; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY [FRL-8563-4] Meeting of the Total Coliform Rule Distribution System Advisory Committee—Notice of Public Meeting AGENCY: Environmental Protection Agency (EPA). ACTION: Notice. SUMMARY: Under section 10(a)(2) of the Federal Advisory Committee Act, the United States Environmental Protection Agency
(EPA)is giving notice of a meeting of the Total Coliform Rule Distribution System Advisory Committee (TCRDSAC). The purpose of this meeting is to discuss the Total Coliform Rule
(TCR)revision and information about distribution systems issues that may impact water quality. The TCRDSAC advises and makes recommendations to the Agency on revisions to the TCR, and on what information should be collected, research conducted, and/or risk management strategies evaluated to better inform distribution system contaminant occurrence and associated public health risks. Topics to be discussed in the meeting include options for revising the Total Coliform Rule, for example, rule construct, monitoring provisions, system categories, action levels, investigation and follow-up, public notification, and other related topics. In addition, the Committee will discuss possible recommendations for research and information collection needs concerning distribution systems and topics for upcoming TCRDSAC meetings. DATES: The public meeting will be held on Wednesday, May 21, 2008 (8:30 a.m. to 6 p.m., Eastern Time (ET)) and Thursday, May 22, 2008 (8 a.m. to 3 p.m., ET). Attendees should register for the meeting by calling Kate Zimmer at
(202)965-6387 or by e-mail to *kzimmer@resolv.org* no later than May 16, 2008. ADDRESSES: The meeting will be held at The Churchill Hotel, 1914 Connecticut Ave., NW., Washington, DC 20009. FOR FURTHER INFORMATION CONTACT: For general information, contact Kate Zimmer of RESOLVE at
(202)965-6387. For technical inquiries, contact Sean Conley ( *conley.sean@epa.gov,*
(202)564-1781), Standards and Risk Management Division, Office of Ground Water and Drinking Water (MC 4607M), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; fax number:
(202)564-3767. SUPPLEMENTARY INFORMATION: The meeting is open to the public. The Committee encourages the public's input and will take public comment starting at 5:30 p.m. on May 21, 2008, for this purpose. It is preferred that only one person present the statement on behalf of a group or organization. To ensure adequate time for public involvement, individuals interested in presenting an oral statement may notify Crystal Rodgers-Jenkins, the Designated Federal Officer, by telephone at
(202)564-5275, no later than May 16, 2008. Any person who wishes to file a written statement can do so before or after a Committee meeting. Written statements received by May 16, 2008, will be distributed to all members before any final discussion or vote is completed. Any statements received on May 19, 2008, or after the meeting will become part of the permanent meeting file and will be forwarded to the members for their information. Special Accommodations For information on access or accommodations for individuals with disabilities, please contact Crystal Rodgers-Jenkins at
(202)564-5275 or by e-mail at *rodgers-jenkins.crystal@ epa.gov.* Please allow at least 10 days prior to the meeting to give EPA as much time to process your request. Dated: May 1, 2008. Cynthia C. Dougherty, Director, Office of Ground Water and Drinking Water. [FR Doc. E8-10118 Filed 5-6-08; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY [EPA-HQ-OPPT-2008-0358; FRL-8364-5] Certain New Chemicals; Receipt and Status Information AGENCY: Environmental Protection Agency (EPA). ACTION: Notice. SUMMARY: Section 5 of the Toxic Substances Control Act
(TSCA)requires any person who intends to manufacture (defined by statute to include import) a new chemical (i.e., a chemical not on the TSCA Inventory) to notify EPA and comply with the statutory provisions pertaining to the manufacture of new chemicals. Under sections 5(d)(2) and 5(d)(3) of TSCA, EPA is required to publish a notice of receipt of a premanufacture notice
(PMN)or an application for a test marketing exemption (TME), and to publish periodic status reports on the chemicals under review and the receipt of notices of commencement to manufacture those chemicals. This status report, which covers the period from March 24, 2008 through April 11, 2008, consists of the PMNs pending or expired, and the notices of commencement to manufacture a new chemical that the Agency has received under TSCA section 5 during this time period. DATES: Comments identified by the specific PMN number or TME number, must be received on or before June 6, 2008. ADDRESSES: Submit your comments, identified by docket identification
(ID)number EPA-HQ-OPPT-2007-0358, by one of the following methods: • *Federal eRulemaking Portal* : *http://www.regulations.gov* . Follow the on-line instructions for submitting comments. • *Mail* : Document Control Office (7407M), Office of Pollution Prevention and Toxics (OPPT), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001. • *Hand Delivery* : OPPT Document Control Office (DCO), EPA East Bldg., Rm. 6428, 1201 Constitution Ave., NW., Washington, DC. Attention: Docket ID Number EPA-HQ-OPPT-2009-0358. The DCO is open from 8 a.m. to 4 p.m., Monday through Friday, excluding legal holidays. The telephone number for the DCO is
(202)564-8930. Such deliveries are only accepted during the DCO's normal hours of operation, and special arrangements should be made for deliveries of boxed information. *Instructions* : Direct your comments to docket ID number EPA-HQ-OPPT-2008-0358. EPA's policy is that all comments received will be included in the docket without change and may be made available on-line 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 regulations.gov or e-mail. The regulations.gov website 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 regulations.gov, your e-mail address will be automatically captured and included as part of the comment that is placed in the 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. For additional information about EPA's public docket, visit the EPA Docket Center homepage at *http://www.epa.gov/epahome/dockets.htm* . *Docket* : All documents in the docket are listed in the docket index available in regulations.gov. 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. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available electronically at *http://www.regulations.gov* , or, if only available in hard copy, at the OPPT Docket. The OPPT Docket is located in the EPA Docket Center (EPA/DC) at Rm. 3334, EPA West Bldg., 1301 Constitution Ave., NW., Washington, DC. The EPA/DC Public Reading Room hours of operation are 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. The telephone number of the EPA/DC Public Reading Room is
(202)566-1744, and the telephone number for the OPPT Docket is
(202)566-0280. Docket visitors are required to show photographic identification, pass through a metal detector, and sign the EPA visitor log. All visitor bags are processed through an X-ray machine and subject to search. Visitors will be provided an EPA/DC badge that must be visible at all times in the building and returned upon departure. FOR FURTHER INFORMATION CONTACT: Colby Lintner, Regulatory Coordinator, Environmental Assistance Division, Office of Pollution Prevention and Toxics (7408M), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001; telephone number:
(202)554-1404; e-mail address: *TSCA-Hotline@epa.gov* . SUPPLEMENTARY INFORMATION: I. General Information A. Does this Action Apply to Me? This action is directed to the public in general. As such, the Agency has not attempted to describe the specific entities that this action may apply to. Although others may be affected, this action applies directly to the submitter of the premanufacture notices addressed in the action. 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. What Should I Consider as I Prepare My Comments for EPA? 1. *Submitting CBI* . Do not submit this information to EPA through regulations.gov or e-mail. Clearly mark the part or 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 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 so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 2. *Tips for preparing your comments* . When submitting comments, remember to: i. Identify the document by docket ID number and other identifying information (subject heading, **Federal Register** date and page number). ii. Follow directions. The Agency may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations
(CFR)part or section number. iii. Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes. iv. Describe any assumptions and provide any technical information and/or data that you used. v. If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. vi. Provide specific examples to illustrate your concerns and suggest alternatives. vii. Explain your views as clearly as possible, avoiding the use of profanity or personal threats. viii. Make sure to submit your comments by the comment period deadline identified. II. Why is EPA Taking this Action? Section 5 of TSCA requires any person who intends to manufacture (defined by statute to include import) a new chemical (i.e., a chemical not on the TSCA Inventory to notify EPA and comply with the statutory provisions pertaining to the manufacture of new chemicals. Under sections 5(d)(2) and 5(d)(3) of TSCA, EPA is required to publish a notice of receipt of a PMN or an application for a TME and to publish periodic status reports on the chemicals under review and the receipt of notices of commencement to manufacture those chemicals. This status report, which covers the period from March 24, 2008 through April 11, 2008, consists of the PMNs pending or expired, and the notices of commencement to manufacture a new chemical that the Agency has received under TSCA section 5 during this time period. III. Receipt and Status Report for PMNs This status report identifies the PMNs pending or expired, and the notices of commencement to manufacture a new chemical that the Agency has received under TSCA section 5 during this time period. If you are interested in information that is not included in the following tables, you may contact EPA as described in Unit II. to access additional non-CBI information that may be available. In Table I of this unit, EPA provides the following information (to the extent that such information is not claimed as CBI) on the PMNs received by EPA during this period: the EPA case number assigned to the PMN; the date the PMN was received by EPA; the projected end date for EPA's review of the PMN; the submitting manufacturer; the potential uses identified by the manufacturer in the PMN; and the chemical identity. **I. 52 Premanufacture Notices Received From: 03/24/08 to 04/11/08** Case No. Received Date Projected Notice End Date Manufacturer/Importer Use Chemical P-08-0315 03/21/08 06/18/08 CBI
(G)Additive for plastics
(G)Hexanedioic acid, polymer with diol and a monohydric alcohol P-08-0316 03/21/08 06/18/08 CBI
(G)Color dispersant
(G)Polyether polyphosphate ester P-08-0317 03/21/08 06/18/08 CBI
(G)Color dispersant
(G)Polyether polyalcohol derivative P-08-0318 03/24/08 06/21/08 CBI
(G)Crystal stabilizer in pigment
(G)3-hydroxy-4-[(4-methyl-3-substituted)azo]-2-naphthalenecarboxylic acid, calcium salt (1:1) P-08-0319 03/24/08 06/21/08 CBI
(G)Component of an industrial coating
(G)Urethane diol P-08-0320 03/24/08 06/21/08 CBI
(G)Component of an industrial coating
(G)Urethane diol P-08-0321 03/24/08 06/21/08 CBI
(G)Component of an industrial coating
(G)Urethane diol P-08-0322 03/24/08 06/21/08 CBI
(G)Component of an industrial coating
(G)Urethane diol P-08-0323 03/24/08 06/21/08 CBI
(G)Component of an industrial coating
(G)Urethane diol P-08-0324 03/24/08 06/21/08 CBI
(G)Component of an industrial coating
(G)Urethane diol P-08-0325 03/24/08 06/21/08 Werner G. Smith, Inc.
(S)Metal working lubricant
(S)Hexanedioic mixed 4-methyl-2-propylhexyl and 5-methyl-2-propylhexyl and 2-propylheptyl esters P-08-0326 03/25/08 06/22/08 CBI
(G)Moisture curing polyurethane adhesive
(G)Isocyanate terminated urethane polymer P-08-0327 03/25/08 06/22/08 CBI
(G)Site limited intermediate
(G)Halogenated aromatic ester derivatives P-08-0328 03/25/08 06/22/08 Swan Chemical Inc.
(1)Property modifier in electronics, contained use;
(2)Property modifier in polymer composites, contained use
(S)Single-walled carbon nanotubes P-08-0329 03/25/08 06/22/08 CBI
(G)Dispersant
(G)Polyurethane derivative P-08-0330 03/26/08 06/23/08 CBI
(G)Dispersive use.
(G)Modified olefins P-08-0331 03/26/08 06/23/08 CBI
(G)Dispersive use.
(G)Modified olefins P-08-0332 03/26/08 06/23/08 CBI
(G)Dispersive use.
(G)Modified olefins P-08-0333 03/27/08 06/24/08 CBI
(S)Hot melt adhesive for metal-metal applications; hot melt adhesive for automotive parts; hot melt adhesive for medical device; hot melt adhesive for electronics
(G)Fatty acids, C <sup>18</sup> -unsaturated, dimers, polymer with alkyldioic acids, ethylenediamine, dialkylcyclicdiamine, and tall-oil fatty acid P-08-0334 03/27/08 06/24/08 CBI
(S)Hot melt adhesive for metal-metal applications; hot melt adhesive for automotive parts; hot melt adhesive for medical device; hot melt adhesive for electronics
(G)Fatty acids, C <sup>18</sup> -unsaturated, dimers, polymer with alkyldioic acids, ethylenediamine, alkyoxydiamine, cyclicdiamine, and tall-oil fatty acid P-08-0335 03/27/08 06/24/08 CBI
(S)Hot melt adhesive for metal-metal applications; hot melt adhesive for automotive parts; hot melt adhesive for medical device; hot melt adhesive for electronics
(G)Fatty acids, C <sup>18</sup> -unsaturated, dimers, polymer with alkyldioic acid, ethylenediamine, dialkyloxydiamine, and tall-oil fatty acid P-08-0336 03/27/08 06/24/08 Triangle Digital Inx Co.
(G)Polymer dispersant
(G)Polymer with e-caprolactone, hydroxystearic acid, methyldiethaholamine and dicyclohehylmethane diisocyanate P-08-0337 03/27/08 06/24/08 Inx International Ink Co.
(G)Resin for inkjet inks
(G)Polymer of alkenoic acid, carbomonocyclic acrylate and methacrylic acid P-08-0338 03/27/08 06/24/08 Inx International Ink Co.
(G)Resin for inkjet inks
(G)Polymer of alkenoic acid, substituted ethene and alkyl acrylate P-08-0339 03/28/08 06/25/08 CIBA Corporation
(G)Oil drilling additive
(G)Dimethylamino alkyl acrylate/dimethylamino alkyl methacrylate polyquaternium ammonium salt P-08-0340 03/31/08 06/28/08 CBI
(S)Hardener component for epoxy coating
(G)1,2-ethanediamine, *N* 1, *N* 2-bis(2-aminoethyl), polymer with haloalkyloxirane and polyoxyalkane P-08-0341 03/31/08 06/28/08 Firmenich Inc.
(S)Aroma for use in fragrance mixtures, which in turn are used in perfumes, soaps, cleansers, etc.
(S)Extractives and their physically modified derivatives psidium guajava. Oils, guava, psidium guajava P-08-0342 03/31/08 06/28/08 Firmenich Inc.
(S)Aroma for use in fragrance mixtures, which in turn are used in perfumes, soaps, cleansers, etc.
(S)Extractives and their physically modified detrivatives mangifera indica. Oils, mango P-08-0343 03/31/08 06/28/08 Symrise Inc
(G)Additive for consumer use products; dispersive use
(S)Cyclopentene, 2-(ethoxymethyl)-1-methyl-3-(1-methylethenyl)- P-08-0344 03/31/08 06/28/08 Symrise Inc
(G)Additive for consumer use products; dispersive use
(S)1,3-dioxepin, 4,7-dihydro-2-(1,1,4-trimethyl-3-pentenyl)- P-08-0345 03/31/08 06/28/08 CBI
(G)Additive for plastics
(G)Hexanedioic acid, polymer with diol and a monobasic acid P-08-0346 04/02/08 06/30/08 CBI
(S)Chemical injection fastening system
(G)Isocyanic acid, alkylene ester, propylene glycol monomethacrylate-blocked P-08-0347 04/01/08 06/29/08 CBI
(G)Surfactant for pet care, hard surface cleaner, and liquid dish soaps applications; solvent for industrial cleaning applications
(G)Alkyl lactyl lactate P-08-0348 03/26/08 06/23/08 CBI
(G)Intermediate
(S)Phosphine, 1,1′-[(1r)-[1,1′-binaphthalene]-2-2′-diyl]bis[1,1-diphenyl- P-08-0349 03/26/08 06/23/08 CBI
(G)Intermediate
(S)Phosphine, 1,1′-[(1s)-[1,1′-binaphthalene]-2-2′-diyl]bis[1,1-diphenyl- P-08-0350 03/26/08 06/23/08 CBI
(G)Intermediate
(S)Phosphine, 1,1′-[1,1′-binaphthalene]-2-2′-diylbis[1,1-diphenyl- P-08-0351 04/03/08 07/01/08 Henkel Corporation
(S)Polyurethane adhesive for lamination and assembly
(G)Isocyanate terminated polyurethane P-08-0352 04/03/08 07/01/08 CBI
(G)Component of industrial use coating
(G)Alkyl acrylate polymer with inorganic acid and alkoxyethyl acrylate, alkyl ester P-08-0353 04/03/08 07/01/08 CBI
(S)Fragrances for toiletries; fragrances for cosmetics; fragrance for household detergents; fragrances for other household goods
(S)Propanoic acid, 2,2-dimethyl-, 3-methyl-3-buten-1-yl ester P-08-0354 04/02/08 06/30/08 CBI
(G)Paint additive
(G)2-propenoic acid, 2-methyl-, methyl ester, polymer with butyl propenoate and substituted-propyl 2-methyl-2-propenoate, 2,2′-(1,2-diazenediyl)bis[2-methylbutanenitrile]-initiated P-08-0355 04/04/08 07/02/08 Evonik-Degussa Corporation
(S)Extrusion of tubing systems; injection molded semi-finished articles
(G)Polymer of alkanedioic acid and alkane diamine P-08-0356 04/04/08 07/02/08 Firmenich Inc
(S)Aroma for use in fragrance mixtures, which in turn are used in perfumes, soaps, cleansers, etc.
(S)Extractives and their physically modified derivatives. carica papaya. Oils, papaya P-08-0357 04/04/08 07/02/08 CBI
(G)Polyol resin (open, non-dispersive)
(G)Polyol P-08-0358 04/04/08 07/02/08 The Lubrizol Corporation
(S)Metalworking fluid additive (lubricity and emulsification)
(G)Alkoxylated glycerine, alkyl ester P-08-0359 04/08/08 07/06/08 CBI
(G)Coatings component
(G)Alkyl alcohol reaction product with alkyl diisocyanate P-08-0360 04/08/08 07/06/08 CBI
(G)Open, non-dispersive use in printing applications
(G)Polyalkylene carboxylate copolymer salt P-08-0361 04/08/08 07/06/08 CBI
(G)Open, non-dispersive use in printing applications
(G)Polyalkylene carboxylate copolymer salt P-08-0362 04/08/08 07/06/08 CBI
(G)Open, non-dispersive use in printing applications
(G)Polyalkylene carboxylate copolymer salt P-08-0363 04/08/08 07/06/08 CBI
(G)Open, non-dispersive use in printing applications
(G)Polyalkylene carboxylate copolymer salt P-08-0364 04/09/08 07/07/08 CBI
(G)Coatings, adhesives and photopolymer printing plates
(G)Hydrogenated polybutadiene acrylate P-08-0365 04/09/08 07/07/08 CBI
(G)Coatings, adhesives and photopolymer printing plates
(G)Hydrogenated polybutadiene acrylate In Table II of this unit, EPA provides the following information (to the extent that such information is not claimed as CBI) on the Notices of Commencement to manufacture received: **II. 26 Notices of Commencement From: 03/24/08 to 04/11/08** Case No. Received Date Commencement Notice End Date Chemical P-02-0621 04/01/08 03/17/08
(G)Polyester polyurethane P-05-0604 04/02/08 03/10/08
(S)Fatty acids, C <sup>16-18</sup> , reaction products with disodium carbonate and lactic acid P-05-0648 04/09/08 03/28/08
(S)Phosphorus acid, mixed C <sup>10</sup> -rich C <sup>9-11</sup> -isoalkyl and 4-(1-methyl-1-phenylethyl)phenyl triesters P-06-0005 04/08/08 10/07/07
(G)Aromatic urethane P-06-0662 03/27/08 03/16/08
(G)Polyester polyurethane P-07-0176 04/07/08 03/19/08
(G)Oil/phenolic modified resin P-07-0217 03/26/08 03/06/08
(G)Toluene halo alkyl sulfo derivative P-07-0277 03/26/08 03/14/08
(G)Alkyl salicylate, metal salt P-07-0306 04/03/08 03/03/08
(S)Siloxanes and silicones, di-me, 3-(2-hydroxyethoxy) propyl group-terminated, polymers with 1,4-butanediol, 1,4-cyclohexanedimethanol, 1,3-dioxolan-2-one, 1,6-hexanediol and 1,1′-methylenebis[isocyanatobenzene] P-07-0417 04/09/08 03/13/08
(G)Modified thiophene polymer P-07-0467 03/24/08 02/25/08
(G)Reaction product of a substituted pyridine, paraformaldehyde, hydrochloric acid, and an alkylamine P-07-0548 04/04/08 03/17/08
(G)Aliphatic polyurethane resin P-07-0565 03/28/08 03/17/08
(G)Polyester polyether urethane block copolymer P-07-0603 04/04/08 03/26/08
(G)Reaction product of 2-propenoic acid, 2-methyl-, monoester and a proprietary isocyanate P-07-0628 04/09/08 04/02/08
(G)Blocked aromatic isocyanate P-07-0672 04/07/08 03/20/08
(G)Polyethylene glycol ether acid P-07-0704 04/01/08 02/04/08
(G)Waterborne polyurethane P-08-0049 03/25/08 02/28/08
(G)2-propenoic acid, 2-methyl-, polymer with alkyl 2-propenoate, ethenylbenzene and 2-propenoic acid, metal salt, peroxycompound-initiated P-08-0055 04/04/08 03/17/08
(G)Aqueous hydroxyl-functional polyester polyacrylate dispersion P-08-0057 04/02/08 03/17/08
(G)Polyalphaolefins; paos P-08-0062 04/08/08 02/05/08
(G)Urethane modified vegetable oil, epoxidized polymer P-08-0077 03/31/08 02/28/08
(S)Ferrate(1-), bis[4-[2-[5-(1,1-dimethylethyl)-2-(hydroxy-.kappa.o)phenyl]diazenyl]-.kappa. *N* 1]-3-(hydroxy-.kappa.o]- *N* -phenyl-2-naphthalenecarboxamidato(2-)], hydrogen (1:1) P-08-0119 04/01/08 03/18/08
(G)1-alkanaminium, *N* -(carboxymethyl)-3-(formylamino)- *N,N* -dimethyl-, inner salt P-08-0120 04/07/08 03/18/08
(G)Ketamine resin P-08-0133 03/31/08 03/24/08
(S)Octanal, 6-methoxy-2,6-dimethyl- P-96-0445 03/24/08 03/10/08
(G)Isocyanate-terminated polyester polyurethane prepolymer List of Subjects Environmental protection, Chemicals, Premanufacturer notices. Dated: April 29, 2008. Chandler Sirmons, Acting Director, Information Management Division, Office of Pollution Prevention and Toxics. [FR Doc. E8-10141 Filed 5-6-08; 8:45 am] BILLING CODE 6560-50-S ENVIRONMENTAL PROTECTION AGENCY [EPA-HQ-OPP-2007-0513; FRL-8150-1] Triclosan Risk Assessment; Notice of Availability and Risk Reduction Options AGENCY: Environmental Protection Agency (EPA). ACTION: Notice. SUMMARY: This notice announces the availability of EPA's risk assessment(s), and related documents for the pesticide triclosan, and opens a public comment period on these documents (Phase 3 of 4Phase Process). The public is encouraged to suggest risk management ideas or proposals to address the risks identified. EPA is developing a Reregistration Eligibility Decision
(RED)for triclosan through a modified, 4-Phase public participation process that the Agency uses to involve the public in developing pesticide reregistration decisions. Through this program, EPA is ensuring that all pesticides meet current health and safety standards. DATES: Comments must be received on or before July 7, 2008. ADDRESSES: Submit your comments, identified by docket identification
(ID)number EPA-HQ-OPP-2007-0513, 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 Bld.g), 2777 S. Crystal Drive, 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 telephone number is
(703)305-5805. *Instructions* : Direct your comments to docket ID number EPA-HQ-OPP-2007-0513. EPA's policy is that all comments received will be included in the docket without change and may be made available on-line 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 regulations.gov or e-mail. The Federal regulations.gov website 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 regulations.gov, your e-mail address will be automatically captured and included as part of the comment that is placed in the 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 docket index available in regulations.gov. 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 web site to view the docket index or access available documents. 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 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 Drive, Arlington, VA. The hours of operation of this Docket Facility are from 8:30 a.m. to 4 p.m., Monday through Friday, excluding legal holidays. The Docket telephone number is
(703)305-5805. FOR FURTHER INFORMATION CONTACT: Heather Garvie,Antimicrobials Division (7510P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-0001; telephone number:
(703)308-8154; fax number:
(703)308-0034; e-mail address: *garvie.heather* @epa.gov SUPPLEMENTARY INFORMATION: I. General Information A. Does this Action Apply to Me? This action is directed to the public in general, and may be of interest to a wide range of stakeholders including environmental, human health, and agricultural advocates; the chemical industry; pesticide users; and members of the public interested in the sale, distribution, or use of pesticides. Since others also may be interested, the Agency has not attempted to describe all the specific entities that may be affected by this action. 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. What Should I Consider as I Prepare My Comments for EPA? 1. * Submitting CBI* . Do not submit this information to EPA through regulations.gov or e-mail. Clearly mark the part or 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 so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 2. * Tips for preparing your comments* . When submitting comments, remember to: i. Identify the document by docket ID number and other identifying information (subject heading, **Federal Register** date and page number). ii. Follow directions. The Agency may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations
(CFR)part or section number. iii. Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes. iv. Describe any assumptions and provide any technical information and/or data that you used. v. If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. vi. Provide specific examples to illustrate your concerns and suggest alternatives. vii. Explain your views as clearly as possible, avoiding the use of profanity or personal threats. viii. Make sure to submit your comments by the comment period deadline identified. II. Background A. What Action is the Agency Taking? EPA is releasing for public comment its human health and environmental fate and effects risk assessments and related documents for triclosan, and soliciting public comment on risk management ideas or proposals. Triclosan is currently registered as an antimicrobial agent for use in the manufacture of a variety of products as a materials preservative in paints, fabrics, and plastics, tents, tile and in commercial, institutional, and industrial premises and equipment such as conveyor belts, and ice machines. EPA developed the risk assessment(s) and risk characterization for triclosan through a modified version of its public process for making pesticide reregistration eligibility and tolerance reassessment decisions. Through these programs, EPA is ensuring that pesticides meet current standards under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Federal Food, Drug, and Cosmetic Act (FFDCA), as amended by the Food Quality Protection Act of 1996 (FQPA). The primary use sites for triclosan are use as a materials preservative in paints, fabrics, and plastics, tents, tile and in commercial, institutional, and industrial premises and equipment. EPA is providing an opportunity, through this notice, for interested parties to provide comments and input on the Agency's risk assessment for triclosan. Such comments and input could address, for example, the availability of additional data to further refine the risk assessments, such as an acute freshwater invertebrate study, and information on the quantity of triclosan degradates (e.g., triclosan methyl) occurring in surface waters, biosolids, soil, fish, or shellfish from triclosan antimicrobial pesticide use. This information could refine the Agency's risk assessment methodologies and assumptions as applied to this specific pesticide. Through this notice, EPA also is providing an opportunity for interested parties to provide risk management proposals or otherwise comment on risk management for triclosan. There are risks of concern associated with the use of triclosan from occupational exposure for workers applying paint, using some application methods; and the application of triclosan in paper making. In targeting these risks of concern, the Agency solicits information on effective and practical risk reduction measures. EPA seeks to achieve environmental justice, the fair treatment and meaningful involvement of all people, regardless of race, color, national origin, or income, in the development, implementation, and enforcement of environmental laws, regulations, and policies. To help address potential environmental justice issues, the Agency seeks information on any groups or segments of the population who, as a result of their location, cultural practices, or other factors, may have atypical, unusually high exposure to triclosan, compared to the general population. EPA is applying the principles of public participation to all pesticides undergoing reregistration and tolerance reassessment. The Agency's Pesticide Tolerance Reassessment and Reregistration; Public Participation Process, published in the **Federal Register** on May 14, 2004 (69 FR 26819)(FRL-7357-9), explains that in conducting these programs, the Agency is tailoring its public participation process to be commensurate with the level of risk, extent of use, complexity of the issues, and degree of public concern associated with each pesticide. For triclosan, a modified, 4-Phase process with 1 comment period and ample opportunity for public consultation seems appropriate in view of its refined risk assessment, and/or other factors. However, if as a result of comments received during this comment period EPA finds that additional issues warranting further discussion are raised, the Agency may lengthen the process and include a second comment period, as needed. All comments should be submitted using the methods in ADDRESSES , and must be received by EPA on or before the closing date. Comments will become part of the Agency Docket for triclosan. Comments received after the close of the comment period will be marked “late.” EPA is not required to consider these late comments. B. What is the Agency's Authority for Taking this Action? Section 4(g)(2) of FIFRA as amended directs that, after submission of all data concerning a pesticide active ingredient, “the Administrator shall determine whether pesticides containing such active ingredient are eligible for reregistration,” before calling in product-specific data on individual end-use products and either reregistering products or taking other “appropriate regulatory action.” Section 408(q) of the FFDCA, 21 U.S.C. 346a(q), requires EPA to review tolerances and exemptions for pesticide residues in effect as of August 2, 1996, to determine whether the tolerance or exemption meets the requirements of section 408(b)(2) or (c)(2) of FFDCA. This review is to be completed by August 3, 2006. List of Subjects Environmental protection, Pesticides and pests, antimicrobials, triclosan. Dated: April 29, 2008. Frank Sanders, Director, Antimicrobials Division, Office of Pesticide Programs. [FR Doc. E8-9945 Filed 5-6-07; 8:45 a.m.] BILLING CODE 6560-50-S FEDERAL COMMUNICATIONS COMMISSION Notice of Public Information Collection(s) Being Reviewed by the Federal Communications Commission, Comments Requested April 30, 2008. SUMMARY: The Federal Communications Commission, as part of its continuing effort to reduce paperwork burdens, invites the general public and other Federal agencies to take this opportunity to comment on the following information collection, as required by the Paperwork Reduction Act
(PRA)of 1995, Public Law 104-13. An agency may not conduct or sponsor a collection of information unless it displays a currently valid control number. Pursuant to the PRA, no person shall be subject to any penalty for failing to comply with a collection of information that does not display a valid control number. Comments are requested concerning
(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility;
(b)the accuracy of the Commission's burden estimate;
(c)ways to enhance the quality, utility, and clarity of the information collected; and
(d)ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology. DATES: Written PRA comments should be submitted on or before July 7, 2008. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible. ADDRESSES: Interested parties may submit all PRA comments by email or U.S. mail. To submit your comments by e-mail, send them to *PRA@fcc.gov* . To submit your comments by U.S. mail, mark them to the attention of Cathy Williams, Federal Communications Commission, Room 1-C823, 445 12th Street, SW., Washington, DC 20554. FOR FURTHER INFORMATION CONTACT: For additional information about the information collection, send an e-mail to *PRA@fcc.gov* or contact Cathy Williams at 202-418-2918. SUPPLEMENTARY INFORMATION: *OMB Control Number:* 3060-0674. *Title:* Section 76.1618, Basic Tier Availability. *Form Number:* Not applicable. *Type of Review:* Extension of a currently approved collection. *Respondents:* Business or other for-profit entities. *Number of Respondents and Responses:* 8,250 respondents; 8,250 responses. *Estimated Time per Response:* 2.25 hours. *Frequency of Response:* On occasion reporting requirement; Third party disclosure requirement. *Obligation To Respond:* Required to obtain or retain benefits. Statutory authority for this collection of information is contained in Section 4(i) and Section 632 of the Communications Act of 1934, as amended. *Total Annual Burden:* 18,563 hours. *Total Annual Cost:* None. *Privacy Act Impact Assessment:* No impact(s). *Nature and Extent of Confidentiality:* There is no need for confidentiality. *Needs and Uses:* 47 CFR 76.1618 states that a cable operator shall provide written notification to subscribers of the availability of basic tier service to new subscribers at the time of installation. This notification shall include the following information:
(a)That basic tier service is available;
(b)the cost per month for basic tier service; and
(c)a list of all services included in the basic service tier. These notification requirements are to ensure the subscribers are made aware of the availability of basic cable service at the time of installation. Federal Communications Commission. Jacqueline Coles, Associate Secretary. [FR Doc. E8-10111 Filed 5-6-08; 8:45 am] BILLING CODE 6712-01-P FEDERAL COMMUNICATIONS COMMISSION Public Information Collection Requirement Submitted to OMB for Review and Approval, Comments Requested May 2, 2008. SUMMARY: The Federal Communications Commission, as part of its continuing effort to reduce paperwork burden, invites the general public and other Federal agencies to take this opportunity to comment on the following information collection, as required by the Paperwork Reduction Act of 1995, Public Law 104-13. An agency may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the Paperwork Reduction Act
(PRA)that does not display a valid control number. Comments are requested concerning
(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility;
(b)the accuracy of the Commission's burden estimate;
(c)ways to enhance the quality, utility, and clarity of the information collected; and
(d)ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology. DATES: Written Paperwork Reduction Act
(PRA)comments should be submitted on or before June 6, 2008. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contacts listed below as soon as possible. ADDRESSES: Direct all PRA comments to Nicholas A. Fraser, Office of Management and Budget, via Internet at *Nicholas_A._Fraser@omb.eop.gov* or via fax at
(202)395-5167 and to Cathy Williams, Federal Communications Commission, Room 1-C823, 445 12th Street, SW., Washington, DC or via Internet at *Cathy.Williams@fcc.gov* or *PRA@fcc.gov.* To view a copy of this information collection request
(ICR)submitted to OMB:
(1)Go to the Web page *http://www.reginfo.gov/public/do/PRAMain* ,
(2)look for the section of the Web page called “Currently Under Review,”
(3)click on the downward-pointing arrow in the “Select Agency” box below the “Currently Under Review” heading,
(4)select “Federal Communications Commission” from the list of agencies presented in the “Select Agency” box,
(5)click the “Submit” button to the right of the “Select Agency” box,
(6)when the list of FCC ICRs currently under review appears, look for the title of this ICR (or its OMB control number, if there is one) and then click on the ICR Reference Number to view detailed information about this ICR.” FOR FURTHER INFORMATION CONTACT: For additional information or copies of the information collection(s), contact Cathy Williams at
(202)418-2918. SUPPLEMENTARY INFORMATION: *OMB Control Number:* 3060-0407. *Type of Review:* Revision of a currently approved collection. *Title:* Application for Extension of Time to Construct a Digital Television Broadcast Station, FCC Form 337; Section 73.3598, Period of Construction. *Form Number:* FCC Form 337. *Respondents:* Business or other for-profit entities; not-for-profit institutions. *Number of Respondents/Responses:* 160 respondents; 180 responses. *Estimated Time per Response:* 0.25 hours—3 hours. *Frequency of Response:* On occasion reporting requirement; Recordkeeping requirement. *Nature of Response:* Required to obtain or retain benefits. The statutory authority for this collection of information is contained in 154(i), 303, 308, 309, 319 and 337 of the Communications Act of 1934, as amended. *Total Annual Burden:* 263 hours. *Total Annual Cost:* $37,000. *Confidentiality:* No need for confidentiality required. *Privacy Impact Assessment:* No impact(s). *Needs and Uses:* Congress has mandated that after February 17, 2009, full-power television broadcast stations must transmit only in digital signals, and may no longer transmit analog signals. On December 22, 2007, the Commission adopted a Report and Order in the matter of the Third Periodic Review of the Commission's Rules and Policies Affecting the Conversion to Digital Television, MB Docket No. 07-91, FCC 07-228, to establish the rules, policies and procedures necessary to complete the nation's transition to Digital TV (DTV). With the DTV transition deadline less than 14 months away, the Commission must ensure that broadcasters meet their statutory responsibilities and complete construction of, and begin operations on, the facility on their final, post-transition (digital) channel that will reach viewers in their authorized service areas by the statutory transition deadline, when they must cease broadcasting in analog. The Commission wants to ensure that no consumers are left behind in the DTV transition. Specifically, the Report and Order requires the following: • *Extension Requests.* Stations with a construction deadline on or before February 17, 2009 may file a request for an extension of time to construct their final, post-transition
(DTV)facility using FCC Form 337. • *Revisions to FCC Form 337.* FCC Form 337 was revised to reflect the stricter standard of review. • *Tolling Requests.* Stations with a construction deadline occurring February 18, 2009 or later may file a notification of an event that would toll their deadline to construct their final, post-transition
(DTV)facility using FCC Informal Application Form. *OMB Control Number:* 3060-1105. *Title:* Digital TV Transition Status Report. *Form Number:* FCC Form 387. *Type of Review:* Revision of a currently approved collection. *Respondents:* Business or other for-profit entities; not-for-profit institutions. *Number of Respondents/Responses:* 781 respondents; 1,953 responses. *Frequency of Response:* On occasion reporting requirement. *Estimated Time per Response:* 2 hours. *Total Annual Burden:* 3,906 hours. *Total Annual Costs:* $1,367,100. *Nature of Response:* Required to obtain or retain benefits. The statutory authority for this information collection is contained in Sections 1, 4(i) and (j), 7, 301, 302, 303, 307, 308, 309, 312, 316, 318, 319, 324, 325, 336 and 337 of the Communications Act of 1934, as amended. *Confidentiality:* No need for confidentiality required. *Privacy Impact Assessment:* No impact(s). *Needs and Uses:* Congress has mandated that after February 17, 2009, full-power television broadcast stations must transmit only in digital signals, and may no longer transmit analog signals. On December 22, 2007, the Commission adopted a Report and Order, In the Matter of the Third Periodic Review of the Commission's Rules and Policies Affecting the Conversion to Digital Television, MB Docket No. 07-91, FCC 07-228, to establish the rules, policies and procedures necessary to complete the nation's transition to Digital TV (DTV). With the DTV transition deadline less than 14 months away, the Commission must ensure that broadcasters meet their statutory responsibilities and complete construction of, and begin operations on, the facility on their final, post-transition (digital) channel that will reach viewers in their authorized service areas by the statutory transition deadline, when they must cease broadcasting in analog. The Commission wants to ensure that no consumers are left behind in the DTV transition. This Report and Order requires all full-power television stations to file a DTV Transition Status Report using FCC Form 387 on or before February 19, 2008. In addition, stations must update these forms as events warrant and, by October 20, 2008, if they have not by that date reported the completion of their transition, i.e., that they have begun operating their full facility as authorized by the post-transition DTV Table Appendix B, stations must provide the specific details of their current transition status, any additional steps necessary for digital-only operation upon expiration of the February 17, 2009 transition deadline, and a timeline for making those steps. Federal Communications Commission. Jacqueline Coles, Associate Secretary. [FR Doc. E8-10113 Filed 5-6-08; 8:45 am] BILLING CODE 6712-01-P FEDERAL MARITIME COMMISSION Notice of Agreements Filed The Commission hereby gives notice of the filing of the following agreements under the Shipping Act of 1984. Interested parties may submit comments on agreements to the Secretary, Federal Maritime Commission, Washington, DC 20573, within ten days of the date this notice appears in the **Federal Register** . Copies of agreements are available through the Commission's Web site ( *http://www.fmc.gov* ) or contacting the Office of Agreements (202-523-5793 or *tradeanalysis@fmc.gov* ). *Agreement No.:* 011996-001. *Title:* Gulf, Central America and Caribbean Vessel Sharing Agreement. *Parties:* Compania Sud Americana de Vapores (“CSAV”) and Compania Chilena de Navegacion Interoceanica S.A. (“CCNI”). *Filing Party:* Walter H. Lion, Esq.; McLaughlin & Stern, LLP; 260 Madison Ave; New York, NY 10016. *Synopsis:* The amendment extends the time for providing notice of withdrawal to April 19, 2009. *Agreement No.:* 012040. *Title:* CSAV Group / ECSA Space Charter Agreement. *Parties:* Compania Libra de Navegacao (Libra); Compania Libra de Navegacion Uruguay S.A. (CLNU); Compania Sud Americana de Vapores, S.A. (CSAV); Hanjin Shipping Co., Ltd.; Kawasaki Kaisen Kaisha, Ltd.; and Yang Ming Marine Transport Corp. *Filing Party:* Walter H. Lion, Esq.; McLaughlin & Stern, LLP; 260 Madison Avenue; New York, NY 10016. *Synopsis:* The agreement authorizes Libra, CLNU, and CSAV to charter space to the other parties in the trade between U.S. East Coast ports and ports in Argentina, Brazil, Paraguay, Uruguay and Venezuela. *Agreement No.:* 201112-001. *Title:* Lease and Operating Agreement. *Parties:* Philadelphia Regional Port Authority and Kinder Morgan Liquids Terminals, LLC. *Filing Party:* Paul D. Coleman, Esq.; Hoppel, Mayer & Coleman; 1050 Connecticut Ave. NW., 10th Floor; Washington, DC 20036. *Synopsis:* The amendment provides for rent for the renewal period, revises provisions on dredging, and revises the amount of dockage. *Agreement No.:* 201118-001. *Title:* Lease and Operating Agreement. *Parties:* Philadelphia Regional Port Authority and Penn Warehousing and Distribution, Inc. *Filing Party:* Paul D. Coleman, Esq.; Hoppel, Mayer & Coleman; 1050 Connecticut Ave. NW., 10th Floor; Washington, DC 20036. *Synopsis:* The amendment extends the lease until December 31, 2023, establishes conditions for renewal, sets a minimum number of vessel calls, establishes new fees, and make other miscellaneous changes. Dated: May 2, 2008. By Order of the Federal Maritime Commission. Karen V. Gregory, Assistant Secretary. [FR Doc. E8-10148 Filed 5-6-08; 8:45 am] BILLING CODE 6730-01-P FEDERAL MARITIME COMMISSION Notice of Meeting *Agency Holding the Meeting:* Federal Maritime Commission. *Time and Date:* May 7, 2008—10 a.m. *Place:* 800 North Capitol Street, NW., First Floor Hearing Room, Washington, DC. *Status:* Part of the Meeting will be held in Open Session and the remainder of the meeting will be held in Closed Session. Matters To Be Considered Open Session 1. Docket No. 06-05— *Verucci Motorcycles LLC* v. *Senator International Ocean LLC.* Closed Session 1. FMC Agreement No. 201178—Los Angeles/Long Beach Port Terminal Operator Administration and Implementation Agreement. FOR FURTHER INFORMATION CONTACT: Karen V. Gregory, Assistant Secretary,
(202)523-5725. Karen V. Gregory, Assistant Secretary. [FR Doc. E8-9872 Filed 5-6-08; 8:45 am] BILLING CODE 6730-01-M FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License; Revocations The Federal Maritime Commission hereby gives notice that the following Ocean Transportation Intermediary licenses have been revoked pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C. Chapter 409) and the regulations of the Commission pertaining to the licensing of Ocean Transportation Intermediaries, 46 CFR Part 515, effective on the corresponding date shown below: *License Number:* 001454F. *Name:* Aarid Consolidators and Forwarders, Inc. *Address:* 1340 Chesapeake Ave., Baltimore, MD 21226. *Date Revoked:* December 31, 2007. *Reason:* Surrendered license voluntarily. *License Number:* 004476F. *Name:* Arthur L. Griffin dba Pathfinder Logistics. *Address:* 34233 Pacific Highway So., Ste. 127, Federal Way, WA 98003-1978. *Date Revoked:* April 13, 2008. *Reason:* Failed to maintain a valid bond. *License Number:* 017753N. *Name:* Associated Consolidators Express dba A.C.E. Balikbayan Boxes Direct. *Address:* 1273 Industrial Parkway, #290, Hayward, CA 94544. *Date Revoked:* April 3, 2008. *Reason:* Failed to maintain a valid bond. *License Number:* 020090F. *Name:* Caribbean Enterprises Inc. *Address:* 1032 River Street, Hyde Park, MA 02136. *Date Revoked:* April 20, 2008. *Reason:* Failed to maintain a valid bond. *License Number:* 002259F. *Name:* Donald T. Maley dba Empire Sea-Air Company. *Address:* 195 N. Village Ave., Apt. 2D, Rockville Ctr., NY 11570. *Date Revoked:* April 13, 2008. *Reason:* Failed to maintain a valid bond. *License Number:* 020341NF. *Name:* Miami International Freight, Inc. *Address:* 6109 NW 72nd Ave., Miami, FL 33166. *Date Revoked:* April 10, 2008. *Reason:* Failed to maintain valid bonds. *License Number:* 020906N. *Name:* National Consolidation & Distribution Inc. *Address:* 400 Maltese Drive, Totowa, NJ 07512. *Date Revoked:* April 12 2008. *Reason:* Failed to maintain a valid bond. *License Number:* 018676NF. *Name:* Skysea Freight International USA LLC. *Address:* 2250 East Devon Ave., Ste. 230, Des Plaines, IL 60018. *Date Revoked:* April 3, 2008. *Reason:* Failed to maintain valid bonds. *License Number:* 002816F. *Name:* Total Ex-Port, Inc. *Address:* 10 Fifth Street, Valley Stream, NY 11581. *Date Revoked:* April 1, 2008. *Reason:* Surrendered license voluntarily. *License Number:* 019333N. *Name:* Yudong Logistics, Inc. *Address:* 690 Knox Street, #220, Torrance, CA 90502. *Date Revoked:* April 9, 2008. *Reason:* Failed to maintain a valid bond. Sandra L. Kusumoto, Director, Bureau of Certification and Licensing. [FR Doc. E8-10132 Filed 5-6-08; 8:45 am] BILLING CODE 6730-01-P FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License Applicants Notice is hereby given that the following applicants have filed with the Federal Maritime Commission an application for license as a Non-Vessel Operating Common Carrier and Ocean Freight Forwarder—Ocean Transportation Intermediary pursuant to section 19 of the Shipping Act of 1984, as amended (46 U.S.C. chapter 409 and 46 CFR part 515). Persons knowing of any reason why the following applicants should not receive a license are requested to contact the Office of Transportation Intermediaries, Federal Maritime Commission, Washington, DC 20573. Non-Vessel Operating Common Carrier Ocean Transportation Intermediary Applicants: Transports P. Fatton Inc. dba Fatton U.S.A, 145 Hook Creek Blvd., Bldg. AS, Valley Stream, NY 11581. Officers: Jean-Christophe Debay, Vice President (Qualifying Individual), Guillaume Fatton, President. ACS Logistics, Inc., 5005 W. Royal Lane, Ste. 198, Irving, TX 75063. Officer: Sazon Maxwell, Asst. Secretary (Qualifying Individual). Accu-Rate Shipping Inc., 880 Apollo Street, Ste. 101, El Segundo, CA 90245. Officers: Peter Porse, President (Qualifying Individual) Kenji, Go, Vice President. Angel Freight Services, Inc., 565 Kokea Street, #G-2, Honolulu, HI 96817. Officers: Arturo M. Angel, President (Qualifying Individual), Meryline Angel, Vice President. Allegheny Ocean Transport Incorporated, 5389 CV Jackson Rd., Ste. #1, Dublin, VA 24084. Officers: James R. Loux, President (Qualifying Individual), Patricia W. Mowrey, Secretary. Fastpak Hawaii, 1626 Akahi Street, Honolulu, HI 96819. Erwin A. Gabrillo, Sole Proprietor. Hai Wae Tong Woon, Inc., 1507 Carmen Drive, Elk Grove Village, IL 60007. Officer: Young S. Lee, President (Qualifying Individual). Eastern Express Cargo, 10717 Camino Ruiz, Ste. 228, San Diego, CA 92126. Alex De Guzzman, Sole Proprietor. Westwind Transportation Services Inc., dba Westwind Container Lines, 1225 W. 190th Street, Ste. 300, Gardena, CA 90248. Officer: Gene Nakamura, Vice President. Non-Vessel Operating Common Carrier and Ocean Freight Forwarder Transportation Intermediary Applicants: G&G International, Inc., 1382 NW 78 Street, Miami, FL 33126. Officers: Rita M. Guzman, President (Qualifying Individual), Diana Lopez, Secretary. Worldwide Exports, Inc., 377 East Puente Street, Unit 1, Covina, CA 91723. Officers: Alex A. Castano, Vice President (Qualifying Individual), Rosario Castano, President. Muches Global Industries, Inc., 10535 Rockley Road, Ste. 102, Houston, TX 77099. Officers: Asinobi O. Amadi, President (Qualifying Individual), Queen E. Amadi, Secretary. A Plus International (U.S.A.) Inc., One Industrial Plaza, Bldg. B, Valley Stream, NY 11581. Officer: Alan Chu, President (Qualifying Individual). RDM Solutions, Inc., 154-09 148th Ave., Ste. 203, Jamaica, NY 11434. Officer: Mario Ruiz, President (Qualifying Individual). DT Shipping, Inc., 11203 S. La Cienega Blvd., Los Angeles, CA 90045. Officers: Thuc P. Ly, CFO (Qualifying Individual), Duc Pham, President. Saturn Freight Systems, Inc., 561 Village Trace, Bldg. 13-A, Marietta, GA 30067. Officers: Guy D. Stark, President (Qualifying Individual), Edward T. Falconer, Vice President. Ocean Freight Forwarder—Ocean Transportation Intermediary Applicant: Trans Wagon Int'l (U.S.A) Co., Ltd., 20265 Valley Blvd., Ste. C, Walnut, CA 91789. Officer: Su Chin-Tien, President (Qualifying Individual). Dated: May 2, 2008. Karen V. Gregory, Assistant Secretary. [FR Doc. E8-10149 Filed 5-6-08; 8:45 am] BILLING CODE 6730-01-P FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License; Correction In the **Federal Register** Notice published April 23, 2008 (73 FR 21953), the reference to Amobeige Shipping Corp. is corrected to read: “Amobelge Shipping Corp.” Dated: May 2, 2008. Karen V. Gregory, Assistant Secretary. [FR Doc. E8-10122 Filed 5-6-08; 8:45 am] BILLING CODE 6730-01-P FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisition of Shares of Bank or Bank Holding Companies The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and § 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the office of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than May 21, 2008. **A. Federal Reserve Bank of Dallas** (W. Arthur Tribble, Vice President) 2200 North Pearl Street, Dallas, Texas 75201-2272: *1. The Haskell Bancshares, Inc., Employee Stock Ownership Plan, Haskell, Texas, Dan R. Griffith, Andrew Gannaway both of Haskell, Texas, Robert Howard, Abilene, Texas as Trustees;* to retain ownership and control of Haskell Bancshares, Inc., Haskell, Texas, and thereby indirectly its subsidiary, Haskell National Bank, Haskell, Texas. Board of Governors of the Federal Reserve System, May 2, 2008. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. E8-10057 Filed 5-6-08; 8:45 am] BILLING CODE 6210-01-S FEDERAL TRADE COMMISSION [File No. 061 0209] TALX, Inc.; Analysis of Proposed Consent Order to Aid Public Comment AGENCY: Federal Trade Commission. ACTION: Proposed Consent Agreement. SUMMARY: The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices or unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order — embodied in the consent agreement — that would settle these allegations. DATES: Comments must be received on or before May 28, 2008. ADDRESSES: Interested parties are invited to submit written comments. Comments should refer to “TALX, Inc., File No. 061 0209,” to facilitate the organization of comments. A comment filed in paper form should include this reference both in the text and on the envelope, and should be mailed or delivered to the following address: Federal Trade Commission/Office of the Secretary, Room 135-H, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. Comments containing confidential material must be filed in paper form, must be clearly labeled “Confidential,” and must comply with Commission Rule 4.9(c). 16 CFR 4.9(c) (2005). 1 The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments that do not contain any nonpublic information may instead be filed in electronic form by following the instructions on the web-based form at *http://secure.commentworks.com/ftc-TALX* . To ensure that the Commission considers an electronic comment, you must file it on that web-based form. 1 The comment must be accompanied by an explicit request for confidential treatment, including the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. The request will be granted or denied by the Commission’s General Counsel, consistent with applicable law and the public interest. *See* Commission Rule 4.9(c), 16 CFR 4.9(c). The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. All timely and responsive public comments, whether filed in paper or electronic form, will be considered by the Commission, and will be available to the public on the FTC website, to the extent practicable, at *www.ftc.gov.* As a matter of discretion, the FTC makes every effort to remove home contact information for individuals from the public comments it receives before placing those comments on the FTC website. More information, including routine uses permitted by the Privacy Act, may be found in the FTC's privacy policy, at ( *http://www.ftc.gov/ftc/privacy.shtm* ). FOR FURTHER INFORMATION CONTACT: Sean Hughto, FTC Bureau of Competition, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580,
(202)326-2199. SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and § 2.34 of the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing a consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty
(30)days. The following Analysis to Aid Public Comment describes the terms of the consent agreement, and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for April 28 2008), on the World Wide Web, at ( *http://www.ftc.gov/os/2008/04index.htm* ). A paper copy can be obtained from the FTC Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580, either in person or by calling
(202)326-2222. Public comments are invited, and may be filed with the Commission in either paper or electronic form. All comments should be filed as prescribed in the ADDRESSES section above, and must be received on or before the date specified in the DATES section. Analysis of Agreement Containing Consent Order to Aid Public Comment I. Introduction The Federal Trade Commission (“Commission”) has accepted, subject to final approval, an Agreement Containing Consent Order (“Agreement”) from TALX Corporation (“Proposed Respondent”). The Consent Agreement settles allegations that TALX has violated Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45, by substantially lessening competition in connection with the provision of outsourced UCM services and employer verification services nationwide through a series of consummated acquisitions. Pursuant to the Agreement, TALX has provisionally agreed to be bound by a proposed consent order (“Proposed Consent Order”). The Proposed Consent Order has been placed on the public record for thirty
(30)days for reception of comments by interested persons. Comments received during this period will become part of the public record. After thirty
(30)days, the Commission will again review the Agreement and the comments received and will decide whether it should withdraw from the Agreement or make final the Agreement's Proposed Consent Order. The purpose of the Agreement is to remedy anticompetitive effects, alleged in the Commission’s Complaint in this matter, that will likely result from the acquisitions by Proposed Respondent of James E. Frick Inc., Johnson & Associates, L.L.C., and certain assets and businesses of Gates McDonald & Company, Sheakley-Uniservice, Inc., UI Advantage, Jon-Jay Associates, Inc., and Employers Unity, Inc. The Proposed Consent Order provides for relief in two markets where the Commission finds reason to believe that these acquisitions likely will have anticompetitive effects: the national market for outsourced unemployment compensation management (“UCM”) services, and the national market for outsourced employer verification services, also known as the market for verification of income and employment (“VOIE”) services. The Proposed Consent Order is aimed at expediting the entry and expansion of competitors by, among other things, freeing past, as well as various current, TALX employees to take jobs with competitors and by granting the majority of TALX’s present long term contract customers the unilateral right to get out of those contracts and switch to another UCM provider. While the Commission usually typically prefers divestitures that immediately reset market shares (the sale of a plant in the manufacturing context, for example), unique circumstances combine in this matter to make it appropriate for the Commission to accept relief aimed at encouraging the movement of market share to competitors though self-selection by TALX’s customers, as opposed to mandating the transfer of arbitrary set of these service contracts. These circumstances include, but are not necessarily limited to, the personal service nature of the product, divergent customer preferences and needs, and the existence of several very small, but nevertheless viable, competitors. The proposed remedy seeks to ensure that the entry and expansion necessary to ensure a competitive market can occur much more quickly than it would absent relief. More specifically, the Proposed Consent Order requires TALX to
(a)allow many of its customers with long-term UCM contracts to terminate those contracts at the customers’ option,
(b)free many of its past and current employees from restrictions that would hamper their ability to be employed by UCM competitors,
(c)provide, if requested, to certain former UCM customers of TALX, certain information related to UCM claims work retained by TALX,
(d)give notice to certain customers of their right to cancel UCM contracts that are automatically renewed if not cancelled, and
(e)not prevent or discourage any entity from supplying goods or services to a UCM competitor of TALX. The Order also requires TALX to give to the Commission prior notice of future acquisitions in markets for UCM services and VOIE services. II. The Respondent TALX is a Missouri corporation that, in May 2007, became a wholly-owned subsidiary of Equifax, Inc. TALX’s primary businesses are the provision of UCM services under the name “UC eXpress,” and the provision of VOIE services under the name “The Work Number.” III. The Complaint As alleged in the Commission’s Complaint, TALX competes in markets for UCM services and VOIE services. UCM services consist, in part, of the managing, administering, and/or processing, on behalf of an employer, of unemployment compensation claims filed with a state or territory. VOIE services consist, in part, of the provision of employment and income verifications including, but not limited to, the collection, maintenance, or dissemination of information concerning the employment status and income of those employees. In order to provide such VOIE services, a VOIE provider must collect and maintain payroll data and other data relating to employment. The Complaint alleges that the March 2002 acquisitions by TALX of James E. Frick, Inc. and of the UCM services division of Gates McDonald eliminated competition between the two acquired companies in the national market for UCM services. James E. Frick, Inc. and Gates McDonald were the two largest providers of UCM services prior to TALX’s acquisition of both companies the same day. The Complaint also alleges that TALX’s acquisitions of Johnson and Associates, L.L.C., the UCM assets of Sheakley-Uniservice, Inc., Jon-Jay Associates, and the unemployment tax management business, which includes UCM services, of Employers Unity, Inc. substantially reduced competition in the national market for UCM services. The Complaint further alleges that TALX substantially reduced competition in the nationwide provision of VOIE services through the acquisitions of James E. Frick, Inc., and the VOIE businesses of Sheakley-Uniservice, Inc. and Employers Unity, Inc. The Complaint notes that some firms, known as “alliance partners,” outsource to TALX some of the UCM services they sell to others. The largest amount of such outsourcing is done by ADP, Inc. The Complaint alleges that each of the relevant markets is highly concentrated, and the consummated acquisitions increased concentration substantially, whether concentration is measured by the Herfindahl-Hirschman Index (“HHI”), or the number of competitively significant firms remaining in the market. The Complaint further alleges that entry would not be timely, likely, or sufficient to prevent anticompetitive effects in either of the relevant markets. As alleged in the Complaint, entry into the market for the provision of outsourced UCM services to large multi-state employers is difficult and slow. According to the Complaint, among the factors that make entry into this market difficult and slow are the length of time it normally takes to make a sale, the maturity of the market, and the lengthy period necessary to establish a track record for successfully managing large volumes of unemployment compensation claims. The Complaint also alleges that entry and expansion in the provision of outsourced UCM services to large multi-state employers is made more difficult by the large number of customers that are tied to long-term contracts with terms as long as five- years. Prior to TALX’s acquisition of its leading competitors who can serve large employers with multi-state claims, the vast majority of industry contracts were renewable one year relationships. In recent years, TALX has successfully and vigorously pursued three and five year deals with its clients. The prevalence of long-term contracts and non-compete and non-solicitation agreements between TALX and its employees, which substantially reduce the number of experienced and talented employees available to be hired by TALX’s competitors and potential competitors, has made entry and expansion more difficult and slow. The Complaint also alleges that entry into the market for VOIE services is difficult and slow. Among the factors that make entry into this market difficult and slow are, according to the Complaint, the need to acquire a sufficient scale and scope of payroll and employment data to attract and service a sufficient customer base, the difficulty of developing software to automate the VOIE process, and the need to build a reputation for reliability and security. The Complaint alleges that the consummated acquisitions eliminated competition between TALX, and each of its competitors in the provision of outsourced UCM services and employer verification services nationwide. The Complaint further alleges that the consummated acquisitions enhance opportunities for TALX to increase prices unilaterally and to decrease the quality of services provided in each of the relevant markets. The acquisitions by TALX eliminated the closest competitors able to serve large employers with claims in many states or nationwide. The Complaint alleges that the consummated acquisitions violate Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45, by substantially lessening competition in connection with the provision of outsourced UCM services and employer verification services nationwide. The Complaint further alleges that the Acquisitions described have eliminated direct and actual competition in the provision of both UCM and employer verification services. The acquisitions by TALX of its competitors have enhanced its ability to increase prices unilaterally and enhanced its ability to decrease the quality of services provided in each of the relevant lines of commerce, according to the Commission’s Complaint. IV. The Proposed Consent Order As noted above, the Proposed Consent Order provides for relief in markets for UCM services and VOIE services. Paragraph II. of the Proposed Consent Order prohibits TALX from enforcing against certain current and former employees who accept employment with certain UCM competitors of TALX certain types of covenants not to compete, not to solicit, and not to disclose trade secrets. Paragraph I.P.1. of the Proposed Consent Order lists some of those UCM competitors by name, and Paragraph I.P.2. lists criteria for identifying other such UCM competitors. Paragraphs I.DD., I.FF., and I.TT. of the Propose Consent Order describe the types of restrictions on competition, solicitation, and trade secret disclosure that TALX would not be able to enforce in situations where Paragraph II. of the Proposed Consent Order is applicable. Paragraph II. of the Proposed Consent Order divides the past and current employees subject to this paragraph into three categories: “Relevant Current Persons,” “Relevant Past Persons,” and “Other Relevant Current Persons.” Appendix F to the Proposed Consent Order lists all of such Relevant Current Persons and divides them into five categories: Customer Relationship Managers, Account Managers, Unemployment Insurance Consultants, Hearing Representatives, and Tax Consultants. The third proviso to Paragraph II. of the Proposed Consent Order limits the number of Relevant Current Persons that are subject to Paragraph II. of the Proposed Consent Order to ten Customer Relationship Managers, four Account Managers, twenty-three Unemployment Insurance Consultants, five Hearing Representatives, and four Tax Consultants. In addition, the applicability of Paragraph II. of the Proposed Consent Order to a Relevant Current Person will end two years after such person’s receipt of the notice that TALX is required to send such person pursuant to Paragraph VI.A. of the Proposed Consent Order. The other two categories of past and current employees, “Relevant Past Persons,” and “Other Relevant Current Persons,” are defined in Paragraphs I.HH. and I.MM. of the Proposed Consent Order. There is no limit on the number of Relevant Past Persons and Other Relevant Current Persons who are subject to Paragraph II. of the Proposed Consent Order; and that paragraph will apply to those persons for the full ten-year term of the Proposed Consent Order. Paragraph III. of the Proposed Consent Order provides that TALX must allow certain customers with contracts for UCM services with a term longer than one year to terminate their contracts on 90 days notice if those customers outsource their UCM services to a competitor of TALX. Paragraph I.X. of the Proposed Consent Order specifies the customers covered by Paragraph III. of the Proposed Consent Order. The third proviso to Paragraph III. places an upper limit of $10 million on the “Total Of Relevant Values Of Terminated Long Term Contracts,” within the meaning of Paragraph I.XX. of the Proposed Consent Order. In addition, the applicability of Paragraph III. of the Proposed Consent Order to a customer will end three years after such customer’s receipt of the notice that TALX is required to send such customer pursuant to Paragraph VI.B. of the Proposed Consent Order. Paragraph IV. of the Proposed Consent Order provides, that at the request of a “Former UCM Customer,” within the meaning of Paragraph I.TT of the Proposed Consent Order. TALX must transfer certain specified customer file information to such customer. The information to be transferred would include data relating to open unemployment compensation claims and to state unemployment tax rates, and include documents generated in preparation for unemployment compensation hearings and appeals. Paragraph V. of the Proposed Consent Order prevents TALX from entering into agreements that would prevent or discourage any entity from supplying goods or services to a UCM competitor of TALX. This paragraph does not apply to employment agreements. Paragraphs VI.A., VI..B., and VI.C. of the Proposed Consent Order require TALX to give notice to certain current and former employees and to certain long-term contract customers of their rights under Paragraphs II. and III. of the Order. Paragraph VI.D. of the Proposed Consent Order requires that TALX notify certain customers of their right to cancel UCM contracts that would otherwise be renewed automatically. Paragraph VI.E. of the Proposed Consent Order requires the posting on Web sites of specified information concerning the rights of certain current and former employees of TALX and of certain UCM customers of TALX under Paragraphs II. and III. of the Order, Paragraph VII.A. of the Proposed Consent Order prohibits TALX from entering into, or attempting to enter into, agreements to divide or allocate markets for UCM services. Paragraph VII.B. of the Proposed Consent Order prohibits TALX from entering into, or attempting to enter into, any agreement requiring ADP, Inc. to subcontract to TALX the rendering of UCM services to a customer if such agreement precedes, rather than follows, ADP, Inc.’s agreement with such customer to provide UCM services. The purpose of Paragraph VII.B. is to increase the ability of TALX’s current and future competitors to compete against TALX for the business of providing UCM services to customers of ADP. Paragraph VIII. of the Proposed Consent Order requires that, for ten
(10)years, TALX give the Commission thirty
(30)days advance notice before acquiring, or entering into a management contract with, a provider of UCM services or VOIE services. Paragraph IX. of the Proposed Consent Order appoints Erwin O. Switzer to the position of Monitor/Administrator. The Monitor/Administrator will assist the Commission in monitoring TALX’s compliance with the Proposed Consent Order, and will assist certain past and present employees of TALX and certain customers of TALX in exercising their rights under Paragraphs II. and III. of the Order. Paragraphs X., XI. and XII. of the Proposed Consent Order require TALX to comply with certain reporting requirements to the Commission. Paragraph XIII. provides that the Proposed Consent Order will terminate ten years after it goes into effect. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. E8-10027 Filed 5-6-08: 8:45 am] BILLING CODE 6750-01-S DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare & Medicaid Services [CMS-1401-N] RIN 0938-AO92 Medicare Program; Inpatient Psychiatric Facilities Prospective Payment System Payment Update for Rate Year Beginning July 1, 2008 (RY 2009) AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS. ACTION: Notice. SUMMARY: This notice updates the prospective payment rates for Medicare inpatient psychiatric hospital services provided by inpatient psychiatric facilities (IPFs). These changes are applicable to IPF discharges occurring during the rate year beginning July 1, 2008 through June 30, 2009. DATES: *Effective Date:* The updated IPF prospective payment rates are effective for discharges occurring on or after July 1, 2008 through June 30, 2009. FOR FURTHER INFORMATION CONTACT: Dorothy Myrick or Jana Lindquist,
(410)786-4533 (for general information). Heidi Oumarou,
(410)786-7942 (for information regarding the market basket and labor-related share). Theresa Bean,
(410)786-2287 (for information regarding the regulatory impact analysis). Matthew Quarrick,
(410)786-9867 (for information on the wage index). SUPPLEMENTARY INFORMATION: Table of Contents To assist readers in referencing sections contained in this document, we are providing the following table of contents. I. Background. A. Annual Requirements for Updating the IPF PPS. B. Overview of the Legislative Requirements of the IPF PPS. C. IPF PPS-General Overview. II. Transition Period for Implementation of the IPF PPS. III. Updates to the IPF PPS for RY Beginning July 1, 2008. A. Determining the Standardized Budget-Neutral Federal Per Diem Base Rate. 1. Standardization of the Federal Per Diem Base Rate and Electroconvulsive Therapy Rate. 2. Calculation of the Budget Neutrality Adjustment. a. Outlier Adjustment. b. Stop-Loss Provision Adjustment. c. Behavioral Offset. B. Update of the Federal Per Diem Base Rate and Electroconvulsive Therapy Rate. 1. Market Basket for IPFs Reimbursed Under the IPF PPS. a. Market Basket Index for the IPF PPS. b. Overview of the RPL Market Basket. 2. Labor-Related Share. 3. IPFs Paid Based on a Blend of the Reasonable Cost-based Payments. IV. Update of the IPF PPS Adjustment Factors. A. Overview of the IPF PPS Adjustment Factors. B. Patient-Level Adjustments. 1. Adjustment for MS-DRG Assignment. 2. Payment for Comorbid Conditions. 3. Patient Age Adjustments. 4. Variable Per Diem Adjustments. C. Facility-Level Adjustments. 1. Wage Index Adjustment. a. Clarification of New England Deemed Counties. b. Multi-campus-Wage Index Data Collection. c. OMB Bulletins. 2. Adjustment for Rural Location. 3. Teaching Adjustment. 4. Cost of Living Adjustment for IPFs Located in Alaska and Hawaii. 5. Adjustment for IPFs With a Qualifying Emergency Department (ED). D. Other Payment Adjustments and Policies. 1. Outlier Payments. a. Update to the Outlier Fixed Dollar Loss Threshold Amount. b. Statistical Accuracy of Cost-to-Charge Ratios. 2. Stop-Loss Provision. V. Waiver of Proposed Rulemaking. VI. Collection of Information Requirements. VII. Regulatory Impact Analysis. Addenda. Acronyms Because of the many terms to which we refer by acronym in this notice, we are listing the acronyms used and their corresponding terms in alphabetical order below: BBRA Medicare, Medicaid and SCHIP [State Children's Health Insurance Program] Balanced Budget Refinement Act of 1999, (Pub. L. 106-113). CBSA Core-Based Statistical Area. CCR Cost-to-charge ratio. CMSA Consolidated Metropolitan Statistical Area. DSM-IV-TR Diagnostic and Statistical Manual of Mental Disorders Fourth Edition—Text Revision. DRGs Diagnosis-related groups. FY Federal fiscal year. ICD-9-CM International Classification of Diseases, 9th Revision, Clinical Modification. IPFs Inpatient psychiatric facilities. IRFs Inpatient rehabilitation facilities. LTCHs Long-term care hospitals. MedPAR Medicare provider analysis and review file. MSA Metropolitan Statistical Area. RY Rate Year. TEFRA Tax Equity and Fiscal Responsibility Act of 1982, (Pub. L. 97-248). I. Background A. Annual Requirements for Updating the IPF PPS In November 2004, we implemented the IPF PPS in a final rule that appeared in the November 15, 2004 **Federal Register** (69 FR 66922). In developing the IPF PPS, in order to ensure that the IPF PPS is able to account adequately for each IPF's case-mix, we performed an extensive regression analysis of the relationship between the per diem costs and certain patient and facility characteristics to determine those characteristics associated with statistically significant cost differences on a per diem basis. For characteristics with statistically significant cost differences, we used the regression coefficients of those variables to determine the size of the corresponding payment adjustments. In that final rule, we explained that we believe it is important to delay updating the adjustment factors derived from the regression analysis until we have IPF PPS data that includes as much information as possible regarding the patient-level characteristics of the population that each IPF serves. Therefore, we indicated that we did not intend to update the regression analysis and recalculate the Federal per diem base rate and the patient- and facility-level adjustments until we complete that analysis. Until that analysis is complete, we stated our intention to publish a notice in the **Federal Register** each spring to update the IPF PPS (71 FR 27041). Updates to the IPF PPS as specified in 42 CFR 412.428 include the following: • A description of the methodology and data used to calculate the updated Federal per diem base payment amount. • The rate of increase factor as described in § 412.424(a)(2)(iii), which is based on the excluded hospital with capital market basket under the update methodology of section 1886(b)(3)(B)(ii) of the Act for each year. • For discharges occurring on or after July 1, 2006, the rate of increase factor for the Federal portion of the IPF's payment, which is based on the rehabilitation, psychiatric, and long-term care
(RPL)market basket. • For discharges occurring on or after October 1, 2005, the rate of increase factor for the reasonable cost portion of the IPF's payment, which is based on the 2002-based excluded hospital market basket. • The best available hospital wage index and information regarding whether an adjustment to the Federal per diem base rate, is needed to maintain budget neutrality. • Updates to the fixed dollar loss threshold amount in order to maintain the appropriate outlier percentage. • Description of the ICD-9-CM coding and DRG classification changes discussed in the annual update to the hospital inpatient prospective payment system
(IPPS)regulations. • Update to the electroconvulsive therapy
(ECT)payment by a factor specified by CMS. • Update to the national urban and rural cost-to-charge ratio medians and ceilings. • Update to the cost of living adjustment factors for IPFs located in Alaska and Hawaii, if appropriate. Our most recent annual update occurred in the May 2007 IPF PPS notice (72 FR 25602) that set forth updates to the IPF PPS payment rates for RY 2008. This notice does not initiate any policy changes with regard to the IPF PPS; rather, it simply provides an update to the rates for RY 2009 (that is, the prospective payment rates applicable for discharges beginning July 1, 2008 through June 30, 2009). In establishing these payment rates, we update the IPF per diem payment rates that were published in the May 2007 IPF PPS notice in accordance with our established policies. B. Overview of the Legislative Requirements for the IPF PPS Section 124 of the Medicare, Medicaid, and SCHIP (State Children's Health Insurance Program) Balanced Budget Refinement Act of 1999, (Pub. L. 106-113)
(BBRA)required implementation of the IPF PPS. Specifically, section 124 of the BBRA mandated that the Secretary develop a per diem PPS for inpatient hospital services furnished in psychiatric hospitals and psychiatric units that includes an adequate patient classification system that reflects the differences in patient resource use and costs among psychiatric hospitals and psychiatric units. Section 405(g)(2) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(MMA)(Pub. L. 108-173) extended the IPF PPS to distinct part psychiatric units of critical access hospitals (CAHs). To implement these provisions, we published various proposed and final rules in the **Federal Register** . For more information regarding these rules, see the CMS Web sites *http://www.cms.hhs.gov/InpatientPsychFacilPPS/* and *http://www.cms.hhs.gov/InpatientpsychfacilPPS/02_regulations.asp* . C. IPF PPS—General Overview The November 2004 IPF PPS final rule (69 FR 66922) established the IPF PPS, as authorized under section 124 of the BBRA and codified at subpart N of part 412 of the Medicare regulations. The November 2004 IPF PPS final rule set forth the per diem Federal rates for the implementation year (that is, the 18-month period from January 1, 2005 through June 30, 2006) that provided payment for the inpatient operating and capital costs to IPFs for covered psychiatric services they furnish (that is, routine, ancillary, and capital costs), but not costs of approved educational activities, bad debts, and other services or items that are outside the scope of the IPF PPS. Covered psychiatric services include services for which benefits are provided under the fee-for-service Part A (Hospital Insurance Program) Medicare program. The IPF PPS established the Federal per diem base rate for each patient day in an IPF derived from the national average daily routine operating, ancillary, and capital costs in IPFs in FY 2002. The average per diem cost was updated to the midpoint of the first year under the IPF PPS, standardized to account for the overall positive effects of the IPF PPS payment adjustments, and adjusted for budget neutrality. The Federal per diem payment under the IPF PPS is comprised of the Federal per diem base rate described above and certain patient- and facility-level payment adjustments that were found in the regression analysis to be associated with statistically significant per diem cost differences. The patient-level adjustments include age, DRG assignment, comorbidities, and variable per diem adjustments to reflect higher per diem costs in the early days of an IPF stay. Facility-level adjustments include adjustments for the IPF's wage index, rural location, teaching status, a cost of living adjustment for IPFs located in Alaska and Hawaii, and presence of a qualifying emergency department (ED). The IPF PPS provides additional payments for: Outlier cases; stop-loss protection (which is applicable only during the IPF PPS transition period); interrupted stays; and a per treatment adjustment for patients who undergo ECT. A complete discussion of the regression analysis appears in the November 2004 IPF PPS final rule (69 FR 66933 through 66936). Section 124 of BBRA does not specify an annual update rate strategy for the IPF PPS and is broadly written to give the Secretary discretion in establishing an update methodology. Therefore, in the November 2004 IPF PPS final rule (69 FR 66966), we implemented the IPF PPS using the following update strategy—(1) calculate the final Federal per diem base rate to be budget neutral for the 18-month period of January 1, 2005 through June 30, 2006;
(2)use a July 1 through June 30 annual update cycle; and
(3)allow the IPF PPS first update to be effective for discharges on or after July 1, 2006 through June 30, 2007. II. Transition Period for Implementation of the IPF PPS In the November 2004 IPF PPS final rule, we established § 412.426 to provide for a 3-year transition period from reasonable cost-based reimbursement to full prospective payment for IPFs. The purpose of the transition period is to allow existing IPFs time to adjust their cost structures and to integrate the effects of changing to the IPF PPS. New IPFs, as defined in § 412.426(c), are paid 100 percent of the Federal per diem payment amount. For those IPFs that are transitioning to the new system, payment is based on an increasing percentage of the PPS payment and a decreasing percentage of each IPF's facility-specific Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) reimbursement rate. Table 1.—IPF PPS Transition Blend Factors Transition Year Cost reporting periods beginning on or after TEFRA rate percentage IPF PPS federal rate percentage 1 January 1, 2005 75 25 2 January 1, 2006 50 50 3 January 1, 2007 25 75 January 1, 2008 0 100 Changes to the blend percentages occur at the beginning of an IPF's cost reporting period. However, regardless of when an IPF's cost reporting year begins, the payment update will be effective for discharges occurring on or after July 1, 2008 through June 30, 2009. IPFs with cost reporting periods beginning January 1, 2008 will have completed the transition period and will receive 100 percent IPF PPS payments. Other IPFs with cost reporting periods beginning after January 1, 2008, during 2008, will also begin to receive 100 percent IPF PPS payments. This means that beginning January 1, 2009, all IPFs will receive 100 percent IPF PPS payments and the IPF PPS transition period will have ended. For RY 2009, the transition period established in the November 2004 IPF PPS final rule will no longer be applied. III. Updates to the IPF PPS for RY Beginning July 1, 2008 The Federal per diem base rate is used as the standard payment per day under the IPF PPS and is adjusted by the applicable wage index factor and the patient- and facility-level adjustments that are applicable to the IPF stay. A detailed explanation of how we calculated the average per diem cost appears in the November 2004 IPF PPS final rule (69 FR 66926). A. Determining the Standardized Budget-Neutral Federal Per Diem Base Rate Section 124(a)(1) of the BBRA requires that we implement the IPF PPS in a budget neutral manner. In other words, the amount of total payments under the IPF PPS, including any payment adjustments, must be projected to be equal to the amount of total payments that would have been made if the IPF PPS were not implemented. Therefore, we calculated the budget-neutrality factor by setting the total estimated IPF PPS payments to be equal to the total estimated payments that would have been made under the TEFRA methodology had the IPF PPS not been implemented. Under the IPF PPS methodology, we calculated the final Federal per diem base rate to be budget neutral during the IPF PPS implementation period (that is, the 18-month period from January 1, 2005 through June 30, 2006) using a July 1 update cycle. We updated the average cost per day to the midpoint of the IPF PPS implementation period (that is, October 1, 2005), and this amount was used in the payment model to establish the budget-neutrality adjustment. A step-by-step description of the methodology used to estimate payments under the TEFRA payment system appears in the November 2004 IPF PPS final rule (69 FR 66926). 1. Standardization of the Federal Per Diem Base Rate and Electroconvulsive Therapy Rate In the November 2004 IPF PPS final rule, we describe how we standardized the IPF PPS Federal per diem base rate in order to account for the overall positive effects of the IPF PPS payment adjustment factors. To standardize the IPF PPS payments, we compared the IPF PPS payment amounts calculated from the FY 2002 Medicare Provider Analysis and Review (MedPAR) file to the projected TEFRA payments from the FY 2002 cost report file updated to the midpoint of the IPF PPS implementation period (that is, October 2005). The standardization factor was calculated by dividing total estimated payments under the TEFRA payment system by estimated payments under the IPF PPS. The standardization factor was calculated to be 0.8367. As described in detail in the May 2006 IPF PPS final rule (71 FR 27045), in reviewing the methodology used to simulate the IPF PPS payments used for the November 2004 IPF PPS final rule, we discovered that due to a computer code error, total IPF PPS payments were underestimated by about 1.36 percent. Since the IPF PPS payment total should have been larger than the estimated figure, the standardization factor should have been smaller (0.8254 vs. 0.8367). In turn, the Federal per diem base rate and the ECT rate should have been reduced by 0.8254 instead of 0.8367. To resolve this issue, in RY 2007, we amended the Federal per diem base rate and the ECT payment rate prospectively. Using the standardization factor of 0.8254, the average cost per day was effectively reduced by 17.46 percent (100 percent minus 82.54 percent = 17.46 percent). 2. Calculation of the Budget Neutrality Adjustment To compute the budget neutrality adjustment for the IPF PPS, we separately identified each component of the adjustment, that is, the outlier adjustment, stop-loss adjustment, and behavioral offset. A complete discussion of how we calculate each component of the budget neutrality adjustment appears in the November 2004 IPF PPS final rule (69 FR 66932 through 66933) and in the May 2006 IPF PPS final rule (71 FR 27044 through 27046). a. Outlier Adjustment Since the IPF PPS payment amount for each IPF includes applicable outlier amounts, we reduced the standardized Federal per diem base rate to account for aggregate IPF PPS payments estimated to be made as outlier payments. The outlier adjustment was calculated to be 2 percent. As a result, the standardized Federal per diem base rate was reduced by 2 percent to account for projected outlier payments. b. Stop-Loss Provision Adjustment As explained in the November 2004 IPF PPS final rule, we provided a stop-loss payment during the transition from cost-based reimbursement to the per diem payment system to ensure that an IPF's total PPS payments were no less than a minimum percentage of their TEFRA payment, had the IPF PPS not been implemented. We reduced the standardized Federal per diem base rate by the percentage of aggregate IPF PPS payments estimated to be made for stop-loss payments. As a result, the standardized Federal per diem base rate was reduced by 0.39 percent to account for stop-loss payments. Since the transition will be completed for RY 2009, for cost reporting periods beginning on or after January 1, 2008, IPFs will be paid 100 percent PPS and, therefore, the stop loss provision will no longer be applicable. We indicated in the November 2004 IPF PPS final rule that we would remove this 0.39 percent adjustment to the Federal per diem base rate after the transition (69 FR 66932). Therefore, for RY 2009, the Federal per diem base rate and ECT rates will be increased by 0.39 percent. c. Behavioral Offset As explained in the November 2004 IPF PPS final rule, implementation of the IPF PPS may result in certain changes in IPF practices especially with respect to coding for comorbid medical conditions. As a result, Medicare may make higher payments than assumed in our calculations. Accounting for these effects through an adjustment is commonly known as a behavioral offset. Based on accepted actuarial practices and consistent with the assumptions made in other PPSs, we assumed in determining the behavioral offset that IPFs would regain 15 percent of potential “losses” and augment payment increases by 5 percent. We applied this actuarial assumption, which is based on our historical experience with new payment systems, to the estimated “losses” and “gains” among the IPFs. The behavioral offset for the IPF PPS was calculated to be 2.66 percent. As a result, we reduced the standardized Federal per diem base rate by 2.66 percent to account for behavioral changes. As indicated in the November 2004 IPF PPS final rule, we do not plan to change adjustment factors or projections, including the behavioral offset, until we analyze IPF PPS data. At that time, we will re-assess the accuracy of the behavioral offset along with the other factors impacting budget neutrality. If we find that an adjustment is warranted, the percent difference may be applied prospectively to the established PPS rates to ensure the rates accurately reflect the payment level intended by the statute. In conducting this analysis, we will be interested in the extent to which improved documentation and coding of patients' principal and other diagnoses, which may not reflect real increases in underlying resource demands, has occurred under the PPS. B. Update of the Federal Per Diem Base Rate and Electroconvulsive Therapy Rate 1. Market Basket for IPFs Reimbursed Under the IPF PPS As described in the November 2004 IPF PPS final rule, the average per diem cost was updated to the midpoint of the implementation year (69 FR 66931). This updated average per diem cost of $724.43 was reduced by 17.46 percent to account for standardization to projected TEFRA payments for the implementation period, by 2 percent to account for outlier payments, by 0.39 percent to account for stop-loss payments, and by 2.66 percent to account for the behavioral offset. The Federal per diem base rate in the implementation year was $575.95, the per diem base rate for RY 2007 was $595.09, and the per diem base rate for RY 2008 was $614.99. Applying the market basket increase of 3.2 percent, the stop-loss adjustment of 0.39 percent, and the wage index budget neutrality factor of 1.0010 yields a Federal per diem base rate of $637.78 for RY 2009. Similarly, applying the market basket increase, stop-loss adjustment, and wage index budget neutrality factor to the RY 2008 ECT rate yields an ECT rate of $274.58 for RY 2009. a. Market Basket Index for the IPF PPS The market basket index that was used to develop the IPF PPS was the excluded hospital with capital market basket. The market basket was based on 1997 Medicare cost report data and included data for Medicare participating IPFs, inpatient rehabilitation facilities (IRFs), long-term care hospitals (LTCHs), cancer, and children's hospitals. We are presently unable to create a separate market basket specifically for psychiatric hospitals due to the following two reasons:
(1)There is a very small sample size for free-standing psychiatric facilities; and
(2)there are limited expense data for some categories on the free-standing psychiatric cost reports (for example, approximately 4 percent of free-standing psychiatric facilities reported contract labor cost data for FY 2002). However, since all IRFs, LTCHs, and IPFs are now paid under a PPS, we are updating PPS payments made under the IRF PPS, the IPF PPS, and the LTCH PPS, using a market basket reflecting the operating and capital cost structures for IRFs, IPFs, and LTCHs (hereafter referred to as the rehabilitation, psychiatric, long-term care
(RPL)market basket). We have excluded cancer and children's hospitals from the RPL market basket because their payments are based entirely on reasonable costs subject to rate-of-increase limits established under the authority of section 1886(b) of the Act, which are implemented in regulations at § 413.40. They are not reimbursed under a PPS. Also, the FY 2002 cost structures for cancer and children's hospitals are noticeably different than the cost structures of the IRFs, IPFs, and LTCHs. The services offered in IRFs, IPFs, and LTCHs are typically more labor-intensive than those offered in cancer and children's hospitals. Therefore, the compensation cost weights for IRFs, IPFs, and LTCHs are larger than those in cancer and children's hospitals. In addition, the depreciation cost weights for IRFs, IPFs, and LTCHs are noticeably smaller than those for cancer and children's hospitals. A complete discussion of the RPL market basket appears in the May 2006 IPF PPS final rule (71 FR 27046 through 27054). b. Overview of the RPL Market Basket The RPL market basket is a fixed weight, Laspeyres-type price index. A market basket is described as a fixed-weight index because it answers the question of how much it would cost, at another time, to purchase the same mix of goods and services purchased to provide hospital services in a base period. The effects on total expenditures resulting from changes in the quantity or mix of goods and services (intensity) purchased subsequent to the base period are not measured. In this manner, the market basket measures only pure price change. Only when the index is rebased would the quantity and intensity effects be captured in the cost weights. Therefore, we rebase the market basket periodically so that cost weights reflect changes in the mix of goods and services that hospitals purchase (hospital inputs) to furnish patient care between base periods. The terms rebasing and revising, while often used interchangeably, actually denote different activities. Rebasing means moving the base year for the structure of costs of an input price index (for example, shifting the base year cost structure from FY 1997 to FY 2002). Revising means changing data sources, methodology, or price proxies used in the input price index. In 2006, we rebased and revised the market basket used to update the IPF PPS. Table 2 below sets forth the completed FY 2002-based RPL market basket including the cost categories, weights, and price proxies. Table 2.—FY 2002-Based RPL Market Basket Cost Categories, Weights, and Proxies Expense categories FY 2002-based RPL market basket cost weight FY 2002-based RPL market basket price proxies TOTAL 100.000 Compensation 65.877 Wages and Salaries * 52.895 ECI-Wages and Salaries, Civilian Hospital Workers. Employee Benefits * 12.982 ECI-Benefits, Civilian Hospital Workers. Professional Fees, Non-Medical 1A* 2.892 ECI-Compensation for Professional & Related occupations. Utilities 0.656 Electricity 0.351 PPI-Commercial Electric Power. Fuel Oil, Coal, etc. 0.108 PPI-Commercial Natural Gas. Water and Sewage 0.197 CPI-U—Water & Sewage Maintenance. Professional Liability Insurance 1.161 CMS Professional Liability Premium Index. All Other Products and Services 19.265 All Other Products 13.323 Pharmaceuticals 5.103 PPI Prescription Drugs. Food: Direct Purchases 0.873 PPI Processed Foods & Feeds. Food: Contract Service 0.620 CPI-U Food Away From Home. Chemicals 1.100 PPI Industrial Chemicals. Medical Instruments 1.014 PPI Medical Instruments & Equipment. Photographic Supplies 0.096 PPI Photographic Supplies. Rubber and Plastics 1.052 PPI Rubber & Plastic Products. Paper Products 1.000 PPI Converted Paper & Paperboard Products. Apparel 0.207 PPI Apparel. Machinery and Equipment 0.297 PPI Machinery & Equipment. Miscellaneous Products ** 1.963 PPI Finished Goods less Food & Energy. All Other Services 5.942 Telephone 0.240 CPI-U Telephone Services. Postage 0.682 CPI-U Postage. All Other: Labor Intensive * 2.219 ECI-Compensation for Private Service Occupations. All Other: Non-labor Intensive 2.800 CPI-U All Items. Capital-Related Costs *** 10.149 Depreciation 6.186 Fixed Assets 4.250 Boeckh Institutional Construction 23-year useful life. Movable Equipment 1.937 WPI Machinery & Equipment 11-year useful life. Interest Costs 2.775 Nonprofit 2.081 Average yield on domestic municipal bonds (Bond Buyer 20 bonds) vintage-weighted (23 years). For Profit 0.694 Average yield on Moody's Aaa bond vintage-weighted (23 years). Other Capital-Related Costs 1.187 CPI-U Residential Rent. * Labor-related. ** Blood and blood-related products is included in miscellaneous products. *** A portion of capital costs (0.46) are labor-related. Note: Due to rounding, weights may not sum to total. For RY 2009, we evaluated the price proxies using the criteria of reliability, timeliness, availability, and relevance. *Reliability* indicates that the index is based on valid statistical methods and has low sampling variability. *Timeliness* implies that the proxy is published regularly, preferably at least once a quarter. *Availability* means that the proxy is publicly available. Finally, *relevance* means that the proxy is applicable and representative of the cost category weight to which it is applied. The Consumer Price Indexes (CPIs), Producer Price Indexes (PPIs), and Employment Cost Indexes
(ECIs)used as proxies in this market basket meet these criteria. We note that the proxies are the same as those used for the FY 1997-based excluded hospital with capital market basket. Because these proxies meet our criteria of reliability, timeliness, availability, and relevance, we believe they continue to be the best measure of price changes for the cost categories. For further discussion on the FY 1997-based excluded hospital with capital market basket, see the August 1, 2002 IPPS final rule (67 FR at 50042). The RY 2009 (that is, beginning July 1, 2008) update for the IPF PPS using the FY 2002-based RPL market basket and Global Insight's 1st quarter 2008 forecast for the market basket components is 3.2 percent. This includes increases in both the operating section and the capital section for the 12-month RY period (that is, July 1, 2008 through June 30, 2009). Global Insight, Inc. is a nationally recognized economic and financial forecasting firm that contracts with CMS to forecast the components of the market baskets. 2. Labor-Related Share Due to the variations in costs and geographic wage levels, we believe that payment rates under the IPF PPS should continue to be adjusted by a geographic wage index. This wage index applies to the labor-related portion of the Federal per diem base rate, hereafter referred to as the labor-related share. The labor-related share is determined by identifying the national average proportion of operating costs that are related to, influenced by, or vary with the local labor market. Using our current definition of labor-related, the labor-related share is the sum of the relative importance of wages and salaries, fringe benefits, professional fees, labor-intensive services, and a portion of the capital share from an appropriate market basket. We used the FY 2002-based RPL market basket cost weights relative importance to determine the labor-related share for the IPF PPS. The labor-related share for RY 2009 is the sum of the RY 2009 relative importance of each labor-related cost category, and reflects the different rates of price change for these cost categories between the base year (FY 2002) and RY 2009. The sum of the relative importance for the RY 2009 operating costs (wages and salaries, employee benefits, professional fees, and labor-intensive services) is 71.681, as shown in Table 3 below. The portion of capital that is influenced by the local labor market is estimated to be 46 percent, which is the same percentage used in the FY 1997-based IRF and IPF payment systems. Since the relative importance for capital is 8.586 percent of the FY 2002-based RPL market basket in RY 2009, we are taking 46 percent of 8.586 percent to determine the labor-related share of capital for RY 2009. The result is 3.950 percent, which we added to 71.681 percent for the operating cost amount to determine the total labor-related share for RY 2009. Thus, the labor-related share that we are using for IPF PPS in RY 2009 is 75.631 percent. Table 3 below shows the RY 2009 labor-related share using the FY 2002-based RPL market basket. We note that this labor-related share is determined by using the same methodology as employed in calculating all previous IPF labor-related shares. A complete discussion of the IPF labor-related share methodology appears in the November 2004 IPF PPS final rule (69 FR 66952 through 66954). Table 3.—Total Labor-Related Share—Relative Importance for RY 2009 Cost category FY 2002-based RPL Market Basket Relative Importance (Percent) RY 2008 * FY 2002-based RPL Market Basket Relative Importance (Percent) RY 2009 ** Wages and salaries 52.588 52.645 Employee benefits 14.127 14.004 Professional fees 2.907 2.895 All other labor-intensive services 2.145 2.137 SUBTOTAL 71.767 71.681 Labor-related share of capital costs (0.46) 4.021 3.950 TOTAL 75.788 75.631 * Based on 2007 1st Quarter forecast. ** Based on 2008 1st Quarter forecast. 3. IPFs Paid Based on a Blend of the Reasonable Cost-Based Payments As stated in the FY 2006 IPPS final rule (70 FR 47399), for IPFs that are transitioning to the fully Federal prospective payment rate, we will continue using the rebased and revised FY 2002-based excluded hospital market basket to update the reasonable cost-based portion of their payments. For RY 2009, all IPFs will have fully transitioned to PPS payment and therefore, be paid based on 100 percent IPF PPS. The reasonable cost-based payment which is subject to TEFRA limits will no longer be applied. IV. Update of the IPF PPS Adjustment Factors A. Overview of the IPF PPS Adjustment Factors The IPF PPS payment adjustments were derived from a regression analysis of 100 percent of the FY 2002 MedPAR data file, which contained 483,038 cases. We used the same results of this regression analysis to implement the November 2004 and May 2006 IPF PPS final rules. While we have since used more recent claims data to set the fixed dollar loss threshold amount, we use the same results of this regression analysis to update the IPF PPS for RY 2008 as well as RY 2009. As previously stated, we do not plan to update the regression analysis until we analyze IPF PPS data. We plan to monitor claims and payment data independently from cost report data to assess issues, or whether changes in case-mix or payment shifts have occurred between free standing governmental, non-profit and private psychiatric hospitals, and psychiatric units of general hospitals, and other issues of importance to psychiatric facilities. A complete discussion of the data file used for the regression analysis appears in the November 2004 IPF PPS final rule (69 FR 66935 through 66936). B. Patient-Level Adjustments In the May 2006 IPF PPS final rule (71 FR 27040) for RY 2007 and in the May 2007 IPF PPS notice (72 FR 25602) for RY 2008, we provided payment adjustments for the following patient-level characteristics: DRG assignment of the patient's principal diagnosis; selected comorbidities; patient age; and the variable per diem adjustments. As previously stated in the November 2004 IPF PPS final rule, we do not intend to update the adjustment factors derived from the regression analysis until we analyze IPF PPS data that include as much information as possible regarding the patient-level characteristics of the population that each IPF serves. 1. Adjustment for MS-DRG Assignment The IPF PPS includes payment adjustments for the psychiatric DRG assigned to the claim based on each patient's principal diagnosis. In the May 4, 2007 IPF PPS update notice (72 FR 25602), we explained that the IPF PPS includes 15 diagnosis-related group
(DRG)adjustment factors. The adjustment factors were expressed relative to the most frequently reported psychiatric DRG in FY 2002, that is, DRG 430 (psychoses). The coefficient values and adjustment factors were derived from the regression analysis. In accordance with § 412.27(a), payment under the IPF PPS is conditioned on IPFs admitting “only patients whose admission to the unit is required for active treatment, of an intensity that can be provided appropriately only in an inpatient hospital setting, of a psychiatric principal diagnosis that is listed in the Fourth Edition, Text Revision of the American Psychiatric Association's Diagnostic and Statistical Manual, (DSM-IV-TR) or in Chapter Five (“Mental Disorders”) of the International Classification of Diseases, Ninth Revision, Clinical Modification [(ICD-9-CM)].” IPF claims with a principal diagnosis included in Chapter Five of the ICD-9-CM or the DSM-IV-TR will be paid the Federal per diem base rate under the IPF PPS, and all other applicable adjustments, including any applicable DRG adjustment. Psychiatric principal diagnoses that do not group to one of the 15 designated DRGs still receive the Federal per diem base rate and all other applicable adjustments, but the payment would not include a DRG adjustment. The Standards for Electronic Transaction final rule published in the **Federal Register** on August 17, 2000 (65 FR 50312) adopted the ICD-9-CM as the designated code set for reporting diseases, injuries, impairments, other health related problems, their manifestations, and causes of injury, disease, impairment, or other health related problems. Therefore, we use the ICD-9-CM as the designated code set for the IPF PPS. We believe that it is important to maintain the same diagnostic coding and DRG classification for IPFs that are used under the IPPS for providing the same psychiatric care. Therefore, when the IPF PPS was implemented for cost reporting periods beginning on or after January 1, 2005, we adopted the same diagnostic code set and DRG patient classification system (that is, the CMS DRGs) that was utilized at the time under the hospital inpatient prospective payment system (IPPS). Since the inception of the IPF PPS, the DRGs used as the patient classification system under the IPF PPS have corresponded exactly with the CMS DRGs applicable under the IPPS for acute care hospitals. Every year, changes to the ICD-9-CM coding system are addressed in the IPPS proposed and final rules. The changes to the codes are effective October 1 of each year and must be used by acute care hospitals under the IPPS to report diagnostic and procedure information. The IPF PPS has always incorporated those ICD-9-CM coding changes made in the annual IPPS update. The IPF PPS announces the changes in a change request, at the same time the coding changes to IPPS and LTCH PPS are announced. Those ICD-9-CM coding changes are also published in the next IPF PPS RY update, in either the proposed and final rules, or in an update notice. As part of CMS' effort to better recognize resource use and the severity of illness among patients, CMS adopted the new Medicare Severity diagnosis related groups (MS-DRGs) for the IPPS in the FY 2008 IPPS final rule with comment period (72 FR 47130). By better accounting for patients' severity of illness in Medicare payment rates, the MS-DRGs encourage hospitals to improve their coding and documentation of patient diagnoses. The MS-DRGs, which are based on the CMS DRGs, represent a significant increase in the number of DRGs (from 538 to 745, an increase of 207). For a full description of the development and implementation of the MS-DRGs, see the FY 2008 IPPS final rule with comment period (72 FR 47141 through 47175). Also see Transmittal 1374 (change request 5748), dated November 7, 2007, for the ICD-9-CM coding changes. All of the ICD-9-CM coding changes are reflected in the FY 2008 GROUPER, Version 25.0, effective for IPPS discharges occurring on or after October 1, 2007 through September 30, 2008. The GROUPER Version 25.0 software package assigns each case to a DRG on the basis of the diagnosis and procedure codes and demographic information (that is age, sex, and discharge status). The Medicare Code Editor
(MCE)24.0 uses the new ICD-9-CM codes to validate coding for IPPS discharges on or after October 1, 2007. For additional information on the GROUPER Version 25.0 and MCE 24.0, see Transmittal 1374, dated November 7, 2007. The IPF PPS has always used the same GROUPER and Code Editor as the IPPS. Therefore, the ICD-9-CM changes, which were reflected in the GROUPER Version 25.0 and MCE 24.0 on October 1, 2007, also became effective for the IPF PPS for discharges occurring on or after October 1, 2007. The impact of the new MS-DRGs on the IPF PPS is negligible. Mapping the current DRGs to the MS-DRGs, there are now 17 MS-DRGs, instead of the original 15, for which the IPF PPS provides an adjustment. In addition, although the code set is updated, the same associated adjustment factors apply now that have been in place since implementation of the IPF PPS, with one exception that is unrelated to the update to the codes. When DRGs 521 and 522 were consolidated into MS-DRG 895, we carried over the adjustment factor of 1.02 from DRG 521 to the newly consolidated MS-DRG. This was done to reflect the higher claims volume under DRG 521, with more than eight times the number of claims than billed under DRG 522. The updated codes, which were effective October 1, 2007, must be used to report diagnostic or procedure information on IPF PPS claims. These updates are reflected in Table 4. The official version of the ICD-9-CM is available on CD-ROM from the U.S. Government Printing Office. The FY 2008 version can be ordered by contacting the Superintendent of Documents, U.S. Government Printing Office, Department 50, Washington, DC 20402-9329, telephone number
(202)512-1800. Questions concerning the ICD-9-CM should be directed to Patricia E. Brooks, Co-Chairperson, ICD-9-CM Coordination and Maintenance Committee, CMS, Center for Medicare Management, Hospital and Ambulatory Policy Group, Division of Acute Care, Mailstop C4-08-06, 7500 Security Boulevard, Baltimore, Maryland 21244-1850. Further information concerning the official version of the ICD-9-CM can be found in the IPPS final rule with comment period, “Changes to Hospital Inpatient Prospective Payment System and Fiscal Year 2008 Rates” in the August 22, 2007 **Federal Register** (72 FR 47130) and at *http://www.cms.hhs.gov/QuarterlyProviderUpdates/downloads/cms1533fc.pdf.* Table 4 below lists the FY 2008 new ICD-9-CM diagnosis codes that group to one of the 17 MS-DRGs for which the IPF PPS provides an adjustment. This table is only a listing of FY 2008 changes and does not reflect all of the currently valid and applicable ICD-9-CM codes classified in the MS-DRGs. When coded as a principal code or diagnosis, these codes receive the correlating MS-DRG adjustment. Table 4.—FY 2008 New Diagnosis Codes Diagnosis code Description MS-DRG 315.34 Speech and language developmental delay due to hearing loss 886 331.5 Idiopathic normal pressure hydrocephalus
(INPH)056, 057 Since we do not plan to update the regression analysis until we analyze IPF PPS data, the MS-DRG adjustment factors, shown in Table 5 below, will continue to be paid for RY 2009. Table 5 reflects the changes that were made to the DRGs under the IPF PPS in a crosswalk of DRGs prior to October 1, 2007 to the new MS-DRGs, which were effective October 1, 2007. Table 5.—FY 2008 Crosswalk of Current DRGs to New MS-DRGs Applicable for the Principal Diagnosis Adjustment
(v24)DRG prior to 10/01/07
(v25)MS-DRG after 10/01/07 MS-DRG descriptions Adjustment factor 056 Degenerative nervous system disorders w MCC 12 057 Degenerative nervous system disorders w/o MCC 1.05 080 Nontraumatic stupor & coma w MCC 023 081 Nontraumatic stupor & coma w/o MCC 1.07 424 876 O.R. procedure w principal diagnoses of mental illness 1.22 425 880 Acute adjustment reaction & psychosocial dysfunction 1.05 426 881 Depressive neuroses 0.99 427 882 Neuroses except depressive 1.02 428 883 Disorders of personality & impulse control 1.02 429 884 Organic disturbances & mental retardation 1.03 430 885 Psychoses 1.00 431 886 Behavioral & developmental disorders 0.99 432 887 Other mental disorder diagnoses 0.92 433 894 Alcohol/drug abuse or dependence, left AMA 0.97 521 895 Alcohol/drug abuse or dependence w rehabilitation therapy 1.02 896 Alcohol/drug abuse or dependence w/o rehabilitation therapy w MCC 523 897 Alcohol/drug abuse or dependence w/o rehabilitation therapy w/o MCC 0.88 2. Payment for Comorbid Conditions The intent of the comorbidity adjustment is to recognize the increased costs associated with comorbid conditions by providing additional payments for certain concurrent medical or psychiatric conditions that are expensive to treat. In the May 2007 IPF PPS update notice (72 FR 25602), we explained that the IPF PPS includes 17 comorbidity categories and identified the new, revised and deleted ICD-9-CM diagnosis codes that generate a comborbid condition payment adjustment under the IPF PPS for RY 2008 (72 FR 25609-13). Comorbidities are specific patient conditions that are secondary to the patient's principal diagnosis, and that require treatment during the stay. Diagnoses that relate to an earlier episode of care and have no bearing on the current hospital stay are excluded and should not be reported on IPF claims. Comorbid conditions must exist at the time of admission or develop subsequently, and affect the treatment received, affect the length of stay
(LOS)or affect both treatment and LOS. For each claim, an IPF may receive only one comorbidity adjustment per comorbidity category, but it may receive an adjustment for more than one comorbidity category. Billing instructions require that IPFs must enter the full ICD-9-CM codes for up to 8 additional diagnoses if they co-exist at the time of admission or develop subsequently. The comorbidity adjustments were determined based on the regression analysis using the diagnoses reported by hospitals in FY 2002. The principal diagnoses were used to establish the DRG adjustment and were not accounted for in establishing the comorbidity category adjustments, except where ICD-9-CM “code first” instructions apply. As we explained in the May 2007 IPF PPS notice (72 FR 25602), the code first rule applies when a condition has both an underlying etiology and a manifestation due to the underlying etiology. For these conditions, the ICD-9-CM has a coding convention that requires the underlying conditions to be sequenced first followed by the manifestation. Whenever a combination exists, there is a “use additional code” note at the etiology code and a “code first” note at the manifestation code. As discussed in the DRG section, it is our policy to maintain the same diagnostic coding set for IPFs that is used under the IPPS for providing the same psychiatric care. Although the ICD-9-CM code set has been updated, the same adjustment factors have been in place since the implementation of the IPF PPS. Table 6 below lists the FY 2008 new ICD diagnosis codes that impact the comorbidity adjustments under the IPF PPS. Table 6 is not a list of all currently valid ICD codes applicable for the IPF PPS comorbidity adjustments. Table 6.—FY 2008 New ICD Codes Applicable for the Comorbidity Adjustments Diagnosis Diagnosis code Description Comorbidity category 040.41 Infant botulism Infectious Diseases. 040.42 Wound botulism Infectious Diseases. 058.10 Roseola infantum, unspecified Infectious Diseases. 058.11 Roseola infantum due to human herpesvirus 6 Infectious Diseases. 058.12 Roseola infantum due to human herpesvirus 7 Infectious Diseases. 058.21 Human herpesvirus 6 encephalitis Infectious Diseases. 058.29 Other human herpesvirus encephalitis Infectious Diseases. 058.81 Human herpesvirus 6 infection Infectious Diseases. 058.82 Human herpesvirus 7 infection Infectious Diseases. 058.89 Other human herpesvirus infection Infectious Diseases. 200.30 Marginal zone lymphoma, unspecified site, extranodal and solid organ sites Oncology Treatment. 200.31 Marginal zone lymphoma, lymph nodes of head, face, and neck Oncology Treatment. 200.32 Marginal zone lymphoma, intrathoracic lymph nodes Oncology Treatment. 200.33 Marginal zone lymphoma, intraabdominal lymph nodes Oncology Treatment. 200.34 Marginal zone lymphoma, lymph nodes of axilla and upper limb Oncology Treatment. 200.35 Marginal zone lymphoma, lymph nodes of inguinal region and lower limb Oncology Treatment. 200.36 Marginal zone lymphoma, intrapelvic lymph nodes Oncology Treatment. 200.37 Marginal zone lymphoma, spleen Oncology Treatment. 200.38 Marginal zone lymphoma, lymph nodes of multiple sites Oncology Treatment. 200.40 Mantle cell lymphoma, unspecified site, extranodal and solid organ sites Oncology Treatment. 200.41 Mantle cell lymphoma, lymph nodes of head, face, and neck Oncology Treatment. 200.42 Mantle cell lymphoma, intrathoracic lymph nodes Oncology Treatment. 200.43 Mantle cell lymphoma, intra-abdominal lymph nodes Oncology Treatment. 200.44 Mantle cell lymphoma, lymph nodes of axilla and upper limb Oncology Treatment. 200.45 Mantle cell lymphoma, lymph nodes of inguinal region and lower limb Oncology Treatment. 200.46 Mantle cell lymphoma, intrapelvic lymph nodes Oncology Treatment. 200.47 Mantle cell lymphoma, spleen Oncology Treatment. 200.48 Mantle cell lymphoma, lymph nodes of multiple sites Oncology Treatment. 200.50 Primary central nervous system lymphoma, unspecified site, extranodal and solid organ sites Oncology Treatment. 200.51 Primary central nervous system lymphoma, lymph nodes of head, face, and neck Oncology Treatment. 200.52 Primary central nervous system lymphoma, intrathoracic lymph nodes Oncology Treatment. 200.53 Primary central nervous system lymphoma, intra-abdominal lymph nodes Oncology Treatment. 200.54 Primary central nervous system lymphoma, lymph nodes of axilla and upper limb Oncology Treatment. 200.55 Primary central nervous system lymphoma, lymph nodes of inguinal region and lower limb Oncology Treatment. 200.56 Primary central nervous system lymphoma, intrapelvic lymph nodes Oncology Treatment. 200.57 Primary central nervous system lymphoma, spleen Oncology Treatment. 200.58 Primary central nervous system lymphoma, lymph nodes of multiple sites Oncology Treatment. 200.60 Anaplastic large cell lymphoma, unspecified site, extranodal and solid organ sites Oncology Treatment. 200.61 Anaplastic large cell lymphoma, lymph nodes of head, face, and neck Oncology Treatment. 200.62 Anaplastic large cell lymphoma, intrathoracic lymph nodes Oncology Treatment. 200.63 Anaplastic large cell lymphoma, intra-abdominal lymph nodes Oncology Treatment. 200.64 Anaplastic large cell lymphoma, lymph nodes of axilla and upper limb Oncology Treatment. 200.65 Anaplastic large cell lymphoma, lymph nodes of inguinal region and lower limb Oncology Treatment. 200.66 Anaplastic large cell lymphoma, intrapelvic lymph nodes Oncology Treatment. 200.67 Anaplastic large cell lymphoma, spleen Oncology Treatment. 200.68 Anaplastic large cell lymphoma, lymph nodes of multiple sites Oncology Treatment. 200.70 Large cell lymphoma, unspecified site, extranodal and solid organ sites Oncology Treatment. 200.71 Large cell lymphoma, lymph nodes of head, face, and neck Oncology Treatment. 200.72 Large cell lymphoma, intrathoracic lymph nodes Oncology Treatment. 200.73 Large cell lymphoma, intra-abdominal lymph nodes Oncology Treatment. 200.74 Large cell lymphoma, lymph nodes of axilla and upper limb Oncology Treatment. 200.75 Large cell lymphoma, lymph nodes of inguinal region and lower limb Oncology Treatment. 200.76 Large cell lymphoma, intrapelvic lymph nodes Oncology Treatment. 200.77 Large cell lymphoma, spleen Oncology Treatment. 200.78 Large cell lymphoma, lymph nodes of multiple sites Oncology Treatment. 202.70 Peripheral T cell lymphoma, unspecified site, extranodal and solid organ sites Oncology Treatment. 202.71 Peripheral T cell lymphoma, lymph nodes of head, face, and neck Oncology Treatment. 202.72 Peripheral T cell lymphoma, intrathoracic lymph nodes Oncology Treatment. 202.73 Peripheral T cell lymphoma, intra-abdominal lymph nodes Oncology Treatment. 202.74 Peripheral T cell lymphoma, lymph nodes of axilla and upper limb Oncology Treatment. 202.75 Peripheral T cell lymphoma, lymph nodes of inguinal region and lower limb Oncology Treatment. 202.76 Peripheral T cell lymphoma, intrapelvic lymph nodes Oncology Treatment. 202.77 Peripheral T cell lymphoma, spleen Oncology Treatment. 202.78 Peripheral T cell lymphoma, lymph nodes of multiple sites Oncology Treatment. 233.30 Carcinoma in situ, unspecified female genital organ Oncology Treatment. 233.31 Carcinoma in situ, vagina Oncology Treatment. 233.32 Carcinoma in situ, vulva Oncology Treatment. 233.39 Carcinoma in situ, other female genital organ Oncology Treatment. . Table 7 lists the invalid ICD-9-CM codes no longer applicable for the comorbidity adjustment. . Table 7.—FY 2008 Invalid ICD Codes No Longer Applicable for the Comorbidity Adjustment Diagnosis code Description Comorbidity category. 233.3 Carcinoma in situ, other and unspecified female genital organs Oncology Treatment. The seventeen comorbidity categories for which we are providing an adjustment, their respective codes, including the new FY 2008 ICD codes, and their respective adjustment factors, are listed below in Table 8. . Table 8.—RY 2009 Diagnosis Codes and Adjustment Factors for Comorbidity Categories Description of comorbidity ICD-9CM code Adjustment factor Developmental Disabilities 317, 3180, 3181, 3182, and 319 1.04 Coagulation Factor Deficits 2860 through 2864 1.13 Tracheostomy 51900—through 51909 and V440 1.06 Renal Failure, Acute 5845 through 5849, 63630, 63631, 63632, 63730, 63731, 63732, 6383, 6393, 66932, 66934, 9585 1.11 Renal Failure, Chronic 40301, 40311, 40391, 40402, 40412, 40413, 40492, 40493, 5853, 5854, 5855, 5856, 5859, 586, V451, V560, V561, and V562 1.11 Oncology Treatment 1400 through 2399 with a radiation therapy code 92.21-92.29 or chemotherapy code 99.25 1.07 Uncontrolled Diabetes-Mellitus with or without complications 25002, 25003, 25012, 25013, 25022, 25023, 25032, 25033, 25042, 25043, 25052, 25053, 25062, 25063, 25072, 25073, 25082, 25083, 25092, and 25093 1.05 Severe Protein Calorie Malnutrition 260 through 262 1.13 Eating and Conduct Disorders 3071, 30750, 31203, 31233, and 31234 1.12 Infectious Disease 01000 through 04110, 042, 04500 through 05319, 05440 through 05449, 0550 through 0770, 0782 through 07889, and 07950 through 07959 1.07 Drug and/or Alcohol Induced Mental Disorders 2910, 2920, 29212, 2922, 30300, and 30400 1.03 Cardiac Conditions 3910, 3911, 3912, 40201, 40403, 4160, 4210, 4211, and 4219 1.11 Gangrene 44024 and 7854 1.10 Chronic Obstructive Pulmonary Disease 49121, 4941, 5100, 51883, 51884, V4611 and V4612, V4613 and V4614 1.12 Artificial Openings-Digestive and Urinary 56960 through 56969, 9975, and V441 through V446 1.08 Severe Musculoskeletal and Connective Tissue Diseases 6960, 7100, 73000 through 73009, 73010 through 73019, and 73020 through 73029 1.09 Poisoning 96500 through 96509, 9654, 9670 through 9699, 9770, 9800 through 9809, 9830 through 9839, 986, 9890 through 9897 1.11 3. Patient Age Adjustments As explained in the November 2004 IPF PPS final rule, we analyzed the impact of age on per diem cost by examining the age variable (that is, the range of ages) for payment adjustments. In general, we found that the cost per day increases with increasing age. The older age groups are more costly than the under 45 age group, the differences in per diem cost increase for each successive age group, and the differences are statistically significant. For RY 2009, we are continuing to use the patient age adjustments currently in effect and shown in Table 9 below. Table 9.—Age Groupings and Adjustment Factors Age Adjustment factor Under 45 1.00 45 and under 50 1.01 50 and under 55 1.02 55 and under 60 1.04 60 and under 65 1.07 65 and under 70 1.10 70 and under 75 1.13 75 and under 80 1.15 80 and over 1.17 4. Variable Per Diem Adjustments We explained in the November 2004 IPF PPS final rule that a regression analysis indicated that per diem cost declines as the LOS increases (69 FR 66946). The variable per diem adjustments to the Federal per diem base rate account for ancillary and administrative costs that occur disproportionately in the first days after admission to an IPF. We used a regression analysis to estimate the average differences in per diem cost among stays of different lengths. As a result of this analysis, we established variable per diem adjustments that begin on day 1 and decline gradually until day 21 of a patient's stay. For day 22 and thereafter, the variable per diem adjustment remains the same each day for the remainder of the stay. However, the adjustment applied to day 1 depends upon whether the IPF has a qualifying ED. If an IPF has a qualifying ED, it receives a 1.31 adjustment factor for day 1 of each patient stay. If an IPF does not have a qualifying ED, it receives a 1.19 adjustment factor for day 1 of the stay. The ED adjustment is explained in more detail in section IV.C.5 of this notice. For RY 2009, we are continuing to use the variable per diem adjustment factors currently in effect as shown in Table 10 below. A complete discussion of the variable per diem adjustments appears in the November 2004 IPF PPS final rule (69 FR 66946). Table 10.—Variable Per Diem Adjustments Day-of-stay Adjustment factor Day 1—IPF Without a Qualified ED 1.19 Day 1—IPF With a Qualified ED 1.31 Day 2 1.12 Day 3 1.08 Day 4 1.05 Day 5 1.04 Day 6 1.02 Day 7 1.01 Day 8 1.01 Day 9 1.00 Day 10 1.00 Day 11 0.99 Day 12 0.99 Day 13 0.99 Day 14 0.99 Day 15 0.98 Day 16 0.97 Day 17 0.97 Day 18 0.96 Day 19 0.95 Day 20 0.95 Day 21 0.95 After Day 21 0.92 C. Facility-Level Adjustments The IPF PPS includes facility-level adjustments for the wage index, IPFs located in rural areas, teaching IPFs, cost of living adjustments for IPFs located in Alaska and Hawaii, and IPFs with a qualifying ED. 1. Wage Index Adjustment As discussed in the May 2006 IPF PPS final rule, and in the May 2007 notice, in providing an adjustment for area wage levels, the labor-related portion of an IPF's Federal prospective payment is adjusted using an appropriate wage index. An IPF's area wage index value is determined based on the actual location of the IPF in an urban or rural area as defined in § 412.64(b)(1)(ii)(A) through (C). Since the inception of the IPF PPS, we have used hospital wage data in developing a wage index to be applied to IPFs. We are continuing that practice for RY 2009. We apply the wage index adjustment to the labor-related portion of the Federal rate, which is 75.631 percent. This percentage reflects the labor-related relative importance of the RPL market basket for RY 2009. The IPF PPS uses the pre-floor, pre-reclassified hospital wage index. Changes to the wage index are made in a budget neutral manner, so that updates do not increase expenditures. For RY 2009, we are applying the most recent hospital wage index using the most recent hospital wage data, and applying an adjustment in accordance with our budget neutrality policy. This policy requires us to estimate the total amount of IPF PPS payments in RY 2008 and divide that amount by the total estimated IPF PPS payments in RY 2009. The estimated payments are based on FY 2006 IPF claims, inflated to the appropriate RY. This quotient is the wage index budget neutrality factor, and it is applied in the update of the Federal per diem base rate for RY 2009. The wage index budget neutrality factor for RY 2009 is 1.0010. The wage index applicable for RY 2009 appears in Table 1 and Table 2 in Addendum B of this notice. As explained in the May 2006 IPF PPS final rule for RY 2007 (71 FR 27061), and in the IPF PPS May 2007 notice for RY 2008 (72 FR 25602), the IPF PPS applies the hospital wage index without a hold-harmless policy, and without an out-commuting adjustment or out-migration adjustment because we feel these policies apply only to the IPPS. In the May 2006 IPF PPS final rule for RY 2007 (71 FR 27061), we adopted the changes discussed in the Office of Management and Budget
(OMB)Bulletin No. 03-04 (June 6, 2003), which announced revised definitions for Metropolitan Statistical Areas (MSAs), and the creation of Micropolitan Statistical Areas and Combined Statistical Areas. In adopting the OMB Core-Based Statistical Area
(CBSA)geographic designations, since the IPF PPS was already in a transition period from TEFRA payments to PPS payments, we did not provide a separate transition for the wage index. As was the case in RY 2008, for RY 2009, we will be using the full CBSA-based wage index values as presented in Tables 1 and 2 in Addendum B of this notice. Finally, we continue to use the same methodology discussed in the IPF PPS proposed rule for RY 2007 (71 FR 3633), and finalized in the May 2006 IPF PPS final rule for RY 2007 (71 FR 27061) to address those geographic areas where there are no hospitals and, thus, no hospital wage index data on which to base the calculation of the RY 2009 IPF PPS wage index. For RY 2009, those areas consist of rural Massachusetts, rural Puerto Rico and urban CBSA (25980) Hinesville-Fort Stewart, GA. A complete discussion of the CBSA labor market definitions appears in the May 2006 IPF PPS final rule (71 FR 27061 through 27067). a. Clarification of New England Deemed Counties We are also taking this opportunity to address the change in the treatment of “New England deemed counties” (that is, those counties in New England listed in § 412.64(b)(1)(ii)(B) that were deemed to be parts of urban areas under section 601(g) of the Social Security Amendments of 1983) that was made in the FY 2008 IPPS final rule with comment period. These counties include the following: Litchfield County, Connecticut; York County, Maine; Sagadahoc County, Maine; Merrimack County, New Hampshire; and Newport County, Rhode Island. Of these five “New England deemed counties,” three (York County, Sagadahoc County, and Newport County) are also included in metropolitan statistical areas defined by OMB and are considered urban under both the current IPPS and IPF PPS labor market area definitions in § 412.64(b)(1)(ii)(A). The remaining two, Litchfield County and Merrimack County, are geographically located in areas that are considered rural under the current IPPS (and IPF PPS) labor market area definitions (however, they have been previously deemed urban under the IPPS in certain circumstances as discussed below). In the FY 2008 IPPS final rule with comment period (72 FR 47337 through 47338), § 412.64(b)(1)(ii)(B) was revised such that the two “New England deemed counties” that are still considered rural under the OMB definitions (Litchfield County, CT and Merrimack County, NH), are no longer considered urban effective for discharges occurring on or after October 1, 2007, and therefore, are considered rural in accordance with § 412.64(b)(1)(ii)(C). However, for purposes of payment under the IPPS, acute-care hospitals located within those areas are treated as being reclassified to their deemed urban area effective for discharges occurring on or after October 1, 2007 (see 72 FR 47337 through 47338). We note that the IPF PPS does not provide for such geographic reclassification (71 FR 27061 through 27067). Also in the FY 2008 IPPS final rule with comment period (72 FR 47338), we explained that we limited this policy change for the “New England deemed counties” only to IPPS hospitals, and any change to non-IPPS provider wage indices would be addressed in the respective payment system rules. Accordingly, as stated above, we are taking the opportunity to clarify the treatment of “New England deemed counties” under the IPF PPS in this notice. As discussed above, under existing § 412.402 and § 412.424(d)(1)(i), an IPF's wage index is determined based on the location of the IPF in an urban or rural area as defined in § 412.64(b)(1)(ii)(A) through (C). Under existing § 412.402, an urban area under the IPF PPS is currently defined at § 412.64(b)(1)(ii)(A) and (B), and a rural area is defined at § 412.64(b)(1)(ii)(C) as any area outside of an urban area. Historical changes to the labor market area/geographic classifications and annual updates to the wage index values under the IPF PPS are made effective July 1 each year. When we established the most recent IPF PPS payment rate update, effective for IPF discharges occurring on or after July 1, 2007 through June 30, 2008, we considered the “New England deemed counties” (including Litchfield County, CT and Merrimack County, NH) as urban for RY 2008 (in accordance with the definitions of urban and rural stated in the RY 2008 IPF PPS notice (72 FR 25602) and as evidenced by the inclusion of Litchfield County as one of the constituent counties of urban CBSA 25540 (Hartford-West Hartford-East Hartford, CT), and the inclusion of Merrimack County as one of the constituent counties of urban CBSA 31700 (Manchester-Nashua, NH)). (See 72 FR 25643 and 25651, respectively). As noted above, existing § 412.402 indicates that the terms “rural” and “urban” are defined according to the definitions of those terms in § 412.64(b)(1)(ii)(A) through (C). Effective for discharges on or after July 1, 2008, § 412.64(b)(1)(ii)(B) is no longer applicable under the IPF PPS. Therefore, as Litchfield County, CT and Merrimack County, NH would be considered rural areas in accordance with our regulations at § 412.402, these two counties will be “rural” under the IPF PPS effective with the next update of the IPF PPS payment rates, which will be July 1, 2008 (under the IPF PPS effective for discharges on or after July 1, 2008, Litchfield County, CT and Merrimack County, NH are not urban under § 412.64(b)(1)(ii)(A) through (B), as revised under the RY 2008 IPPS final rule with comment period, and therefore are rural under § 412.64(b)(1)(ii)(C)). Litchfield County, CT and Merrimack County, NH will be considered “rural” effective for IPF PPS discharges occurring on or after July 1, 2008, and will no longer be considered as being part of urban CBSA 25540 (Hartford-West Hartford-East Hartford, CT) and urban CBSA 31700 (Manchester-Nashua, NH), respectively. We do not need to make any changes to our regulations to effectuate this change. We note that this policy is consistent with our policy of not taking into account IPPS geographic reclassifications in determining payments under the IPF PPS. Four IPFs (two in Litchfield County, CT, and two in Merrimack County, NH) greatly benefit from treating the counties in which they are located as rural. These IPFs will begin to receive the rural facility adjustment and see an approximate 17 percent increase in payments. Five IPFs in NH that are currently treated as rural will experience an approximate 3 percent decrease in payments because the rural NH wage index value decreases when this change is made. One IPF in CT that is currently treated as rural will experience an approximate 4 percent decrease in payments because the rural CT wage index value is lower when this change is made. The area wage index values for CBSAs 31700 and 25540 increase with the change. No other IPFs in CT or NH are affected by treating Litchfield and Merrimack Counties as rural. b. Multi-Campus—Wage Index Data Collection Historically, under the IPF PPS, we have established IPF PPS wage index values calculated from acute care IPPS hospital wage data without taking into account geographic reclassification under sections 1886(d)(8) and (d)(10) of the Act. As we discussed in the May 2006 IPF PPS final rule (71 FR 27040), hospitals that are excluded from the IPPS are not required to provide wage-related information on the Medicare cost report (which is needed in order to make geographic reclassifications). Thus, the wage adjustment established under the IPF PPS is based on an IPF's actual location without regard to the urban or rural designation of any related or affiliated provider. In the RY 2008 IPF PPS notice (72 FR 25602), we established IPF PPS wage index values for the RY 2008 calculated from the same data (collected from cost reports submitted by hospitals for cost reporting periods beginning during FY 2003) used to compute the FY 2007 acute care hospital inpatient wage index data without taking into account geographic reclassification under sections 1886(d)(8) and (d)(10) of the Act because that was the best available data at that time. The IPF PPS wage index values applicable for discharges occurring on or after July 1, 2007 through June 30, 2008 are shown in Table 1 (for urban areas) and Table 2 (for rural areas) in the Addendum to the RY 2008 IPF PPS final rule (72 FR 25627 through 25673). For RY 2009, the same data (collected from cost reports submitted by hospitals for cost reporting periods beginning during FY 2004) used to compute the FY 2008 acute care hospital inpatient wage index data without taking into account geographic reclassification under sections 1886(d)(8) and (d)(10) of the Act was used to determine the applicable wage index values under the IPF PPS because these data (FY 2004) are the most recent complete data. (For information on the data used to compute the FY 2008 IPPS wage index, refer to the FY 2008 IPPS final rule with comment period (72 FR 47308 through 47309, 47315)). We are continuing to use IPPS wage data as a proxy to determine the IPF wage index values for RY 2009 because both IPFs and acute-care hospitals are required to meet the same certification criteria set forth in section 1861(e) of the Act to participate as a hospital in the Medicare program and they both compete in the same labor markets, and therefore, experience similar wage-related costs. We note that the IPPS wage data used to determine the RY 2009 IPF wage index values reflects our policy that was adopted under the IPPS beginning in FY 2008 that apportions the wage data for multi-campus hospitals located in different labor market areas (CBSAs) to each CBSA where the campuses are located (see the FY 2008 IPPS final rule with comment period (72 FR 47317 through 47320)). The RY 2009 IPF PPS wage index values presented in this notice were computed consistent with our pre-reclassified IPPS wage index policy (that is, our historical policy of not taking into account IPPS geographic reclassifications in determining payments under the IPF PPS). For the RY 2009 IPF PPS, the wage index was computed from IPPS wage data (submitted by hospitals for cost reporting periods beginning in FY 2004 (just like the FY 2008 IPPS wage index)), which allocated salaries and hours to the campuses of two multi-campus hospitals with campuses that are located in different labor areas, one in Massachusetts and another in Illinois. Thus, the RY 2009 IPF PPS wage index values for the following CBSAs are affected by this policy: Boston-Quincy, MA (CBSA 14484), Providence-New Bedford-Falls River, RI-MA (CBSA 39300), Chicago-Naperville-Joliet, IL (CBSA 16974) and Lake County-Kenosha County, IL-WI (CBSA 29404) (refer to Table 1 in the Addendum of this notice). The table below describes the change in wage index value and the number of IPFs affected by the multi-campus hospital policy change: Table 11.—IPFs Affected by the Multi-Campus Hospital Policy Change CBSA No. of IPFs Wage index value change 14484 (Boston-Quincy, MA) 17 0.0153 16974 (Chicago-Naperville-Joliet, IL) 47 −0.002 29404 (Lake County-Kenosha County, IL-WI) 2 0.0288 39300 (Providence-New Bedford-Falls River, RI-MA) 12 −0.0111 c. OMB Bulletins The Office of Management and Budget
(OMB)publishes bulletins regarding CBSA changes, including changes to CBSA numbers and titles. In the May 2006 IPF PPS final rule for FY 2006 (71 FR 27040), we adopted the changes discussed in the OMB Bulletin No. 03-04 (June 6, 2003), available online at *http://www.whitehouse.gov/omb/bulletins/b03-04.html* . Those changes were strictly nomenclature changes and did not represent substantive changes to the CBSA-based designations. In this notice, we incorporate the CBSA nomenclature changes published in the most recent OMB bulletin that applies to the hospital wage data used to determine the current IPF PPS wage index, and we expect to do the same for all such OMB CBSA nomenclature changes in future IPF PPS rules and notices, as necessary. The OMB bulletins may be accessed online at *http://www.whitehouse.gov/omb/bulletins/index.html.* 2. Adjustment for Rural Location In the November 2004 IPF PPS final rule, we provided a 17 percent payment adjustment for IPFs located in a rural area. This adjustment was based on the regression analysis, which indicated that the per diem cost of rural facilities was 17 percent higher than that of urban facilities after accounting for the influence of the other variables included in the regression. For RY 2009, we are applying a 17 percent payment adjustment for IPFs located in a rural area as defined at § 412.64(b)(1)(ii)(C). A complete discussion of the adjustment for rural locations appears in the November 2004 IPF PPS final rule (69 FR 66954). 3. Teaching Adjustment In the November 2004 IPF PPS final rule, we implemented regulations at § 412.424(d)(1)(iii) to establish a facility-level adjustment for IPFs that are, or are part of, teaching institutions. The teaching adjustment accounts for the higher indirect operating costs experienced by facilities that participate in graduate medical education
(GME)programs. Payments are made based on the number of full-time equivalent interns and residents training in the IPF. Medicare makes direct GME payments (for direct costs such as resident and teaching physician salaries, and other direct teaching costs) to all teaching hospitals including those paid under the IPPS, and those that were once paid under the TEFRA rate-of-increase limits but are now paid under other PPSs. These direct GME payments are made separately from payments for hospital operating costs and are not part of the PPSs. The direct GME payments do not address the estimated higher indirect operating costs teaching hospitals may face. For teaching hospitals paid under the TEFRA rate of increase limits, Medicare did not make separate medical education payments because payments to these hospitals were based on the hospitals' reasonable costs. Since payments under TEFRA were based on hospitals' reasonable costs, the higher indirect costs that might be associated with teaching programs would automatically have been factored into the TEFRA payments. The results of the regression analysis of FY 2002 IPF data established the basis for the payment adjustments included in the November 2004 IPF PPS final rule. The results showed that the indirect teaching cost variable is significant in explaining the higher costs of IPFs that have teaching programs. We calculated the teaching adjustment based on the IPF's “teaching variable,” which is one plus the ratio of the number of full-time equivalent
(FTE)residents training in the IPF (subject to limitations described below) to the IPF's average daily census (ADC). In the regression analysis, the logarithm of the teaching variable had a coefficient value of 0.5150. We converted this cost effect to a teaching payment adjustment by treating the regression coefficient as an exponent and raising the teaching variable to a power equal to the coefficient value. We note that the coefficient value of 0.5150 was based on the regression analysis holding all other components of the payment system constant. As with other adjustment factors derived through the regression analysis, we do not plan to rerun the regression analysis until we analyze IPF PPS data. Therefore, for RY 2009, we are retaining the coefficient value of 0.5150 for the teaching adjustment to the Federal per diem base rate. A complete discussion of how the teaching adjustment was calculated appears in the November 2004 IPF PPS final rule (69 FR 66954 through 66957) and the May 2006 IPF PPS final rule (71 FR 27067 through 27070). 4. Cost of Living Adjustment for IPFs Located in Alaska and Hawaii The IPF PPS includes a payment adjustment for IPFs located in Alaska and Hawaii based upon the county in which the IPF is located. As we explained in the November 2004 IPF PPS final rule, the FY 2002 data demonstrated that IPFs in Alaska and Hawaii had per diem costs that were disproportionately higher than other IPFs. Other Medicare PPSs (for example, the IPPS and LTCH PPS) have adopted a cost of living adjustment
(COLA)to account for the cost differential of care furnished in Alaska and Hawaii. We analyzed the effect of applying a COLA to payments for IPFs located in Alaska and Hawaii. The results of our analysis demonstrated that a COLA for IPFs located in Alaska and Hawaii would improve payment equity for these facilities. As a result of this analysis, we provided a COLA in the November 2004 IPF PPS final rule. In general, the COLA accounts for the higher costs in the IPF and eliminates the projected loss that IPFs in Alaska and Hawaii would experience absent the COLA. A COLA factor for IPFs located in Alaska and Hawaii is made by multiplying the non-labor share of the Federal per diem base rate by the applicable COLA factor based on the COLA area in which the IPF is located. As previously stated, we will update the COLA factors according to updates established by the U.S. Office of Personnel Management (OPM), which issued a final rule to change COLA rates effective September 1, 2006. The COLA factors are published on the OPM Web site at *http://www.opm.gov/oca/cola/rates.asp* . We note that the COLA areas for Alaska are not defined by county as are the COLA areas for Hawaii. In 5 CFR 591.207, the OPM established the following COLA areas:
(a)City of Anchorage, and 80-kilometer (50-mile) radius by road, as measured from the Federal courthouse;
(b)City of Fairbanks, and 80-kilometer (50-mile) radius by road, as measured from the Federal courthouse;
(c)City of Juneau, and 80-kilometer (50-mile) radius by road, as measured from the Federal courthouse;
(d)Rest of the State of Alaska. In the November 2004 and May 2006 IPF PPS final rules, we showed only one COLA for Alaska because all four areas were the same amount (1.25). Effective September 1, 2006, the OPM updated the COLA amounts and there are now two different amounts for the Alaska COLA areas (1.24 and 1.25). For RY 2009, IPFs located in Alaska and Hawaii will receive the updated COLA factors based on the COLA area in which the IPF is located and as shown in Table 12 below. Table 12.— COLA Factors for Alaska and Hawaii IPFs Location COLA Alaska Anchorage 1.24 Fairbanks 1.24 Juneau 1.24 Rest of Alaska 1.25 Hawaii Honolulu County 1.25 Hawaii County 1.17 Kauai County 1.25 Maui County 1.25 Kalawao County 1.25 5. Adjustment for IPFs With a Qualifying Emergency Department
(ED)Currently, the IPF PPS includes a facility-level adjustment for IPFs with qualifying EDs. We provide an adjustment to the standardized Federal per diem base rate to account for the costs associated with maintaining a full-service ED. The adjustment is intended to account for ED costs allocated to the hospital's distinct part psychiatric unit for preadmission services otherwise payable under the Medicare Outpatient Prospective Payment System
(OPPS)furnished to a beneficiary during the day immediately preceding the date of admission to the IPF (see § 413.40(c)) and the overhead cost of maintaining the ED. This payment is a facility-level adjustment that applies to all IPF admissions (with the one exception as described below), regardless of whether a particular patient receives preadmission services in the hospital's ED. The ED adjustment is incorporated into the variable per diem adjustment for the first day of each stay for IPFs with a qualifying ED. That is, IPFs with a qualifying ED receive an adjustment factor of 1.31 as the variable per diem adjustment for day 1 of each stay. If an IPF does not have a qualifying ED, it receives an adjustment factor of 1.19 as the variable per diem adjustment for day 1 of each patient stay. The ED adjustment is made on every qualifying claim except as described below. As specified in § 412.424(d)(1)(v)(B), the ED adjustment is not made where a patient is discharged from an acute care hospital or CAH and admitted to the same hospital's or CAH's psychiatric unit. An ED adjustment is not made in this case because the costs associated with ED services are reflected in the DRG payment to the acute care hospital or through the reasonable cost payment made to the CAH. If we provided the ED adjustment in these cases, the hospital would be paid twice for the overhead costs of the ED (69 FR 66960). Therefore, when patients are discharged from an acute care hospital or CAH and admitted to the same hospital's or CAH's psychiatric unit, the IPF receives the 1.19 adjustment factor as the variable per diem adjustment for the first day of the patient's stay in the IPF. For RY 2009, we are retaining the 1.31 adjustment factor for IPFs with qualifying EDs. A complete discussion of the steps involved in the calculation of the ED adjustment factor appears in the November 2004 IPF PPS final rule (69 FR 66959 through 66960) and the May 2006 IPF PPS final rule (71 FR 27070 through 27072). D. Other Payment Adjustments and Policies For RY 2009, the IPF PPS includes the following payment adjustments: An outlier adjustment to promote access to IPF care for those patients who require expensive care and to limit the financial risk of IPFs treating unusually costly patients. In this section, we also explain the reason for ending the stop-loss provision that was applicable during the transition period. 1. Outlier Payments In the November 2004 IPF PPS final rule, we implemented regulations at § 412.424(d)(3)(i) to provide a per-case payment for IPF stays that are extraordinarily costly. Providing additional payments to IPFs for extremely costly cases strongly improves the accuracy of the IPF PPS in determining resource costs at the patient and facility level. These additional payments reduce the financial losses that would otherwise be incurred in treating patients who require more costly care and, therefore, reduce the incentives for IPFs to under-serve these patients. We make outlier payments for discharges in which an IPF's estimated total cost for a case exceeds a fixed dollar loss threshold amount (multiplied by the IPF's facility-level adjustments) plus the Federal per diem payment amount for the case. In instances when the case qualifies for an outlier payment, we pay 80 percent of the difference between the estimated cost for the case and the adjusted threshold amount for days 1 through 9 of the stay (consistent with the median LOS for IPFs in FY 2002), and 60 percent of the difference for day 10 and thereafter. We established the 80 percent and 60 percent loss sharing ratios because we were concerned that a single ratio established at 80 percent (like other Medicare PPSs) might provide an incentive under the IPF per diem payment system to increase LOS in order to receive additional payments. After establishing the loss sharing ratios, we determined the current fixed dollar loss threshold amount of $6,488 through payment simulations designed to compute a dollar loss beyond which payments are estimated to meet the 2 percent outlier spending target. a. Update to the Outlier Fixed Dollar Loss Threshold Amount In accordance with the update methodology described in § 412.428(d), we are updating the fixed dollar loss threshold amount used under the IPF PPS outlier policy. Based on the regression analysis and payment simulations used to develop the IPF PPS, we established a 2 percent outlier policy which strikes an appropriate balance between protecting IPFs from extraordinarily costly cases while ensuring the adequacy of the Federal per diem base rate for all other cases that are not outlier cases. We believe it is necessary to update the fixed dollar loss threshold amount because analysis of the latest available data (that is, FY 2006 IPF claims) and rate increases indicates adjusting the fixed dollar loss amount is necessary in order to maintain an outlier percentage that equals 2 percent of total estimated IPF PPS payments. In the May 2006 IPF PPS Final Rule (71 FR 27072), we describe the process by which we calculate the outlier fixed dollar loss threshold amount. We continue to use this process for RY 2009. We begin by simulating aggregate payments with and without an outlier policy, and applying an iterative process to a fixed dollar loss amount that will result in outlier payments being equal to 2 percent of total estimated payments under the simulation. Based on this process, for RY 2009, the IPF PPS will use $6,113 as the fixed dollar loss threshold amount in the outlier calculation in order to maintain the 2 percent outlier policy. b. Statistical Accuracy of Cost-to-Charge Ratios As previously stated, under the IPF PPS, an outlier payment is made if an IPF's cost for a stay exceeds a fixed dollar loss threshold amount. In order to establish an IPF's cost for a particular case, we multiply the IPF's reported charges on the discharge bill by its overall cost to charge ratio (CCR). This approach to determining an IPF's cost is consistent with the approach used under the IPPS and other PPSs. In FY 2004, we implemented changes to the IPPS outlier policy used to determine CCRs for acute care hospitals because we became aware that payment vulnerabilities resulted in inappropriate outlier payments. Under the IPPS, we established a statistical measure of accuracy for CCRs in order to ensure that aberrant CCR data did not result in inappropriate outlier payments. As we indicated in the November 2004 IPF PPS final rule, because we believe that the IPF outlier policy is susceptible to the same payment vulnerabilities as the IPPS, we adopted an approach to ensure the statistical accuracy of CCRs under the IPF PPS (69 FR 66961). Therefore, we adopted the following procedure in the November 2004 IPF PPS final rule: • We calculated two national ceilings, one for IPFs located in rural areas and one for IPFs located in urban areas. We computed the ceilings by first calculating the national average and the standard deviation of the CCR for both urban and rural IPFs. To determine the rural and urban ceilings, we multiplied each of the standard deviations by 3 and added the result to the appropriate national CCR average (either rural or urban). The upper threshold CCR for IPFs in RY 2009 is 1.8041 for rural IPFs, and 1.6724 for urban IPFs, based on CBSA-based geographic designations. If an IPF's CCR is above the applicable ceiling, the ratio is considered statistically inaccurate and we assign the appropriate national (either rural or urban) median CCR to the IPF. We are applying the national CCRs to the following situations: ++ New IPFs that have not yet submitted their first Medicare cost report. ++ IPFs whose CCR is in excess of 3 standard deviations above the corresponding national geometric mean (that is, above the ceiling). ++ Other IPFs for whom the Medicare contractor obtains inaccurate or incomplete data with which to calculate a CCR. For new IPFs, we are using these national CCRs until the facility's actual CCR can be computed using the first tentatively settled or final settled cost report, which will then be used for the subsequent cost report period. We are not making any changes to the procedures for ensuring the statistical accuracy of CCRs in RY 2009. However, we are updating the national urban and rural CCRs (ceilings and medians) for IPFs for RY 2009 based on the CCRs entered in the latest available IPF PPS Provider Specific File. The national CCRs for RY 2009 are 0.686 for rural IPFs and 0.5370 for urban IPFs and will be used in each of the three situations listed above. These calculations are based on the IPF's location (either urban or rural) using the CBSA-based geographic designations. A complete discussion regarding the national median CCRs appears in the November 2004 IPF PPS final rule (69 FR 66961 through 66964). 2. Stop-Loss Provision In the November 2004 IPF PPS final rule, we implemented a stop-loss policy that reduces financial risk to IPFs expected to experience substantial reductions in Medicare payments during the period of transition to the IPF PPS. This stop-loss policy guarantees that each facility receives total IPF PPS payments that are no less than 70 percent of its TEFRA payments had the IPF PPS not been implemented. This policy is applied to the IPF PPS portion of Medicare payments during the 3-year transition. During the first year, for transitioning IPFs, three-quarters of the payment was based on TEFRA and one-quarter on the IPF PPS payment amount. In the second year, one-half of the payment was based on TEFRA and one-half on the IPF PPS payment amount. In the third year, one-quarter of the payment was based on TEFRA and three-quarters on the IPF PPS. For cost report periods beginning on or after January 1, 2008, payments are based 100 percent on the IPF PPS. The combined effects of the transition and the stop-loss policies ensure that the total estimated IPF PPS payments were no less than 92.5 percent in the first year, 85 percent in the second year, and 77.5 percent in the third year. Under the 70 percent policy, in the third year, 25 percent of an IPF's payment is TEFRA payments, and 75 percent is IPF PPS payments, which are guaranteed to be at least 70 percent of the TEFRA payments. The resulting 77.5 percent of TEFRA payments is the sum of 25 percent and 75 percent times 70 percent (which equals 52.5 percent). In the implementation year, the 70 percent of TEFRA payment stop-loss policy required a reduction in the standardized Federal per diem and ECT base rates of 0.39 percent in order to make the stop-loss payments budget neutral. For the RY 2009 (that is for discharges occurring on or after July 1, 2008 through June 30, 2009), we are not making any changes to the stop-loss policy for IPFs continuing to transition. However, beginning January 1, 2009, the stop-loss provision will have ended for all IPFs because it was implemented to be effective for the duration of the transition period, and the transition period will be completed beginning January 1, 2009. As indicated in “Section III. A.2.6 of this notice for RY 2009, we are increasing the Federal per diem base rate and ECT rate by 0.39 percent because these rates were reduced by 0.39 percent in the implementation year to ensure stop-loss payments were budget neutral. V. Waiver of Proposed Rulemaking We ordinarily publish a notice of proposed rulemaking in the **Federal Register** to provide a period for public comment before the provisions of a rule take effect. We can waive this procedure, however, if we find good cause that notice and comment procedures are impracticable, unnecessary, or contrary to the public interest and we incorporate a statement of finding and its reasons in the notice. We find it is unnecessary to undertake notice and comment rulemaking for the update in this notice because the update does not make any substantive changes in policy, but merely reflects the application of previously established methodologies. Therefore, under 5 U.S.C 553(b)(3)(B), for good cause, we waive notice and comment procedures. VI. Collection of Information Requirement This document does not impose any information collection and recordkeeping requirements. Consequently, it need not be reviewed by the Office of Management and Budget under the authority of the Paperwork Reduction Act of 1995 (44 U.S.C. 35). VII. Regulatory Impact Analysis A. Overall Impact We have examined the impacts of this rule as required by Executive Order 12866 (September 1993, Regulatory Planning and Review), the Regulatory Flexibility Act
(RFA)(September 19, 1980, Pub. L. 96-354), section 1102(b) of the Social Security Act, the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4), Executive Order 13132 on Federalism, and the Congressional Review Act (5 U.S.C. 804(2)). Executive Order 12866 (as amended) directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is 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
(RIA)must be prepared for major rules with economically significant effects ($100 million or more in any 1 year). For purposes of Title 5, United States Code, section 804(2), we estimate that this rulemaking is “economically significant” as measured by the $100 million threshold, and hence also a major rule under the Congressional Review Act. Accordingly, we have prepared a Regulatory Impact Analysis that to the best of our ability presents the costs and benefits of the rulemaking on the 1,669 IPFs. The updates to the IPF labor-related share and wage indices are made in a budget neutral manner and thus have no effect on estimated costs to the Medicare program. Therefore, the estimated increased cost to the Medicare program is due to the updated IPF payment rates, which results in a $140 million increase in payments, and the transition from 75 percent PPS/25 percent TEFRA payments to 100 percent PPS payments, which results in a $20 million decrease in payments. The sunset of the stop-loss provision has a minimal impact on IPF payments in RY 2009. The distribution of these impacts is summarized in Table 13. The effect of the updates described in this notice result in an overall $120 million increase in payments from RY 2008 to RY 2009. The RFA requires agencies to analyze options for regulatory relief of small businesses, if a rule has a significant impact on a substantial number of small entities. For purposes of the RFA, we estimate that the great majority of IPFs are small entities as that term is used in the RFA (include small businesses, nonprofit organizations, and small governmental jurisdictions). The great majority of hospitals and most other health care providers and suppliers are small entities, either by being nonprofit organizations or by meeting the SBA definition of a small business (having revenues of less than $6.5 million to $31.5 million in any 1 year) (For details, see the Small Business Administration's Interim final rule that set forth size standards at 70 FR 72577, December 6, 2005.) Because we lack data on individual hospital receipts, we cannot determine the number of small proprietary IPFs or the proportion of IPFs' revenue that is derived from Medicare payments. Therefore, we assume that all IPFs are considered small entities. As shown in Table 13, we estimate that the net revenue impact of this notice on all IPFs is to increase payments by about 2.5 percent. Thus, we anticipate that this notice will not have a significant impact on a substantial number of small entities. Medicare contractors are not considered to be small entities. Individuals and States are not included in the definition of a small entity. In addition, section 1102(b) of the Act requires us to prepare a regulatory impact analysis if a rule may have a significant impact on the operations of a substantial number of small rural hospitals. This analysis must conform to the provisions of section 604 of the RFA. For purposes of section 1102(b) of the Act, we define a small rural hospital as a hospital that is located outside of a metropolitan statistical area and has fewer than 100 beds. With the exception of hospitals located in certain New England counties, for purposes of section 1102(b) of the Act, we previously defined a small rural hospital as a hospital with fewer than 100 beds that is located outside of a Metropolitan Statistical Area
(MSA)or New England County Metropolitan Area (NECMA). However, under the new labor market definitions, we no longer employ NECMAs to define urban areas in New England. For purposes of this analysis, we now define a small rural hospital as a hospital with fewer than 100 beds that is located outside of an MSA. Therefore, the Secretary certifies that this notice has a significant impact on the operations of a substantial number of small rural hospitals. We have determined that this notice will have a significant and positive impact on substantial number of hospitals classified as located in rural areas. Since the impact on rural hospitals is positive, we did not consider alternatives to reduce burden on these IPFs. Section 202 of the Unfunded Mandates Reform Act of 1995
(UMRA)also requires that agencies assess anticipated costs and benefits before issuing any rule whose mandates require spending in any 1 year of $100 million in 1995 dollars, updated annually for inflation. In 2008, that threshold is approximately $130 million. This notice will not impose spending costs on State, local, or tribal governments in the aggregate, or by the private sector, of $130 million Executive Order 13132 establishes certain requirements that an agency must meet when it promulgates a proposed rule (and subsequent final rule) that imposes substantial direct requirement costs on State and local governments, preempts State law, or otherwise has Federalism implications. We have reviewed this notice under the criteria set forth in Executive Order 13132 and have determined that the notice will not have any substantial impact on the rights, roles, and responsibilities of State, local, or tribal governments. B. Anticipated Effects We discuss below the historical background of the IPF PPS and the impact of this notice on the Federal Medicare budget and on IPFs. 1. Budgetary Impact As discussed in the November 2004 and May 2006 IPF PPS final rules, we applied a budget neutrality factor to the Federal per diem and ECT base rates to ensure that total estimated payments under the IPF PPS in the implementation period would equal the amount that would have been paid if the IPF PPS had not been implemented. The budget neutrality factor includes the following components: Outlier adjustment, stop-loss adjustment, and the behavioral offset. In accordance with § 412.424(c)(3)(ii), we will evaluate the accuracy of the budget neutrality adjustment within the first 5 years after implementation of the payment system. We may make a one-time prospective adjustment to the Federal per diem and ECT base rates to account for differences between the historical data on cost-based TEFRA payments (the basis of the budget neutrality adjustment) and estimates of TEFRA payments based on actual data from the first year of the IPF PPS. As part of that process, we will re-assess the accuracy of all of the factors impacting budget neutrality. In addition, as discussed in section IV.C.1. of this notice, we are using the wage index and labor market share in a budget neutral manner by applying a wage index budget neutrality factor to the Federal per diem and ECT base rates. Thus, the budgetary impact to the Medicare program by the update of the IPF PPS will be due to the market basket updates (see section III.B. of this notice) and the planned update of the payment blend discussed below. 2. Impacts on Providers To understand the impact of the changes to the IPF PPS discussed in this notice on providers, it is necessary to compare estimated payments under the IPF PPS rates and factors for RY 2009 to estimated payments under the IPF PPS rates and factors for RY 2008. The estimated payments for RY 2008 are a blend of: 25 percent of the facility-specific TEFRA payment and 75 percent of the IPF PPS payment with stop-loss payment. The estimated payments for the RY 2009 IPF PPS will be 100 percent of the IPF PPS payment and the stop-loss payment will no longer be applied. We determined the percent change of estimated RY 2009 IPF PPS payments to estimated RY 2008 IPF PPS payments for each category of IPFs. In addition, for each category of IPFs, we have included the estimated percent change in payments resulting from the wage index changes for the RY 2009 IPF PPS, the market basket update to IPF PPS payments, and the transition blend for the RY 2009 IPF PPS payment and the facility-specific TEFRA payment. To illustrate the impacts of the final RY 2009 changes in this update notice, our analysis begins with a RY 2008 baseline simulation model based on FY 2006 IPF payments inflated to the midpoint of RY 2008 using Global Insight's most recent forecast of the market basket update (see section III.B. of this notice); the estimated outlier payments in RY 2008; the estimated stop-loss payments in RY 2008; the CBSA designations for IPFs based on OMB's MSA definitions after June 2003; the FY 2007 pre-floor, pre-reclassified hospital wage index; the RY 2008 labor-market share; and the RY 2008 percentage amount of the rural adjustment. During the simulation, the outlier payment is maintained at the target of 2 percent of total PPS payments. Each of the following changes is added incrementally to this baseline model in order for us to isolate the effects of each change: • The FY 2008 pre-floor, pre-reclassified hospital wage index and RY 2009 final labor-related share. • A market basket update of 3.2 percent resulting in an update to the IPF PPS base rates. • The transition to 100 percent IPF PPS payments. • The removal of the stop-loss provision. • Our final comparison illustrates the percent change in payments from RY 2008 (that is, July 1, 2007 to June 30, 2008) to RY 2009 (that is, July 1, 2008 to June 30, 2009). Table 13.—Projected Impacts Facility by type Number of facilities CBSA wage index and labor share (percent) Market basket (percent) Transition blend (percent) Stop-loss (percent) Total (percent)
(7)All Facilities 1,669 0.0 3.2 −0.5 −0.1 2.5 Urban 1,301 0.0 3.2 −0.5 0.0 2.6 Rural 368 0.0 3.2 −0.6 −0.3 2.1 Urban unit 931 0.0 3.2 −2.6 −0.1 0.4 Rural unit 308 0.0 3.2 −2.4 −0.5 0.1 Freestanding IPF By Type of Ownership: Urban Psychiatric Hospitals: Government 141 0.1 3.2 6.7 0.3 10.5 Non-Profit 83 0.0 3.2 0.2 −0.1 3.3 For-Profit 145 −0.1 3.2 5.6 0.1 9.0 Rural Psychiatric Hospitals: Government 40 −0.1 3.2 8.3 0.4 12.1 Non-Profit 7 0.2 3.2 0.9 0.4 4.5 For-Profit 14 −0.4 3.2 5.5 0.4 8.4 By Teaching Status: Non-teaching 1,424 0.0 3.2 −0.4 −0.1 2.6 Less than 10% interns and residents to beds 137 0.0 3.2 −0.4 0.3 3.1 10% to 30% interns and residents to beds 73 0.0 3.2 −2.0 −0.1 1.0 More than 30% interns and residents to beds 35 0.0 3.2 −1.6 −0.5 1.1 By Region: New England 121 0.4 3.2 −2.4 0.0 1.2 Mid-Atlantic 284 −0.1 3.2 1.9 0.2 5.2 South Atlantic 226 0.0 3.2 −0.5 0.1 2.8 East North Central 292 −0.2 3.2 −2.3 −0.3 0.3 East South Central 164 −0.4 3.2 −0.2 0.0 2.5 West North Central 141 0.1 3.2 −1.7 −0.2 1.4 West South Central 228 −0.1 3.2 −1.1 −0.5 1.3 Mountain 74 −0.3 3.2 −1.7 −0.7 0.5 Pacific 132 0.5 3.2 0.4 0.0 4.2 By Bed Size: Psychiatric Hospitals: Less than 12 beds 24 −0.1 3.2 −1.9 0.0 1.1 12 to 25 beds 62 −0.1 3.2 1.2 0.1 4.2 25 to 50 beds 94 −0.2 3.2 2.4 −0.5 4.9 50 to 75 beds 77 0.0 3.2 5.1 0.2 8.6 More than 75 beds 174 0.1 3.2 6.5 0.4 10.4 Psychiatric Units: Less than 12 beds 489 0.0 3.2 −4.6 −0.7 −2.4 12 to 25 beds 430 0.1 3.2 −2.9 −0.3 0.0 25 to 50 beds 217 0.0 3.2 −2.0 0.2 1.3 50 to 75 beds 55 −0.1 3.2 −1.8 0.3 1.4 More than 75 beds 47 0.0 3.2 0.7 0.3 4.2 3. Results Table 1 above displays the results of our analysis. The table groups IPFs into the categories listed below based on characteristics provided in the Provider of Services
(POS)file, the IPF provider specific file, and cost report data from HCRIS: • Facility Type • Location • Teaching Status Adjustment • Census Region • Size The top row of the table shows the overall impact on the 1,669 IPFs included in the analysis. In column 3, we present the effects of the budget-neutral update to the labor-related share and the wage index adjustment under the CBSA geographic area definitions announced by OMB in June 2003. This is a comparison of the simulated RY 2009 payments under the FY 2008 hospital wage index under CBSA classification and associated labor-related share to the simulated RY 2008 payments under the FY 2007 hospital wage index under CBSA classifications and associated labor-related share. There is no projected change in aggregate payments to IPFs, as indicated in the first row of column 3. There would, however, be small distributional effects among different categories of IPFs. For example, rural for-profit IPFs and IPFs located in the East South Central region will experience a 0.4 percent decrease in payments. IPFs located in the Pacific region will receive the largest increase of 0.5 percent. In column 4, we present the effects of the market basket update to the IPF PPS payments by applying the TEFRA and PPS updates to payments under the revised budget neutrality factor and labor-related share and wage index under CBSA classification. In the aggregate this update is projected to be a 3.2 percent increase in overall payments to IPFs. In column 5, we present the effects of the payment change in transition blend percentages to the final year of the transition (TEFRA Rate Percentage = 0 percent, IPF PPS Federal Rate Percentage = 100 percent) from the third year of the transition (TEFRA Rate Percentage = 25 percent, IPF PPS Federal Rate Percentage = 75 percent) of the IPF PPS under the revised budget neutrality factor, labor-related share and wage index under CBSA classification, and TEFRA and PPS updates to RY 2008. The overall aggregate effect, across all hospital groups, is projected to be a 0.5 percent decrease in payments to IPFs. There are distributional effects of these changes among different categories of IPFs. Government psychiatric hospitals will receive the largest increase, with rural government hospitals receiving an 8.3 percent increase and urban government hospitals receiving a 6.7 percent increase. In addition, psychiatric hospitals with more than 75 beds will receive a 6.5 percent increase. Alternatively, psychiatric units with fewer than 12 beds will receive the largest decrease of 4.6 percent. In column 6, we present the effects of the removal of the stop-loss provision. Stop-loss payments are no longer applicable when payments are 100 percent IPF PPS payments. However, all IPFs will receive an increase in the rates of 0.39 percent. The overall aggregate effect, across all hospital groups, is projected to be a 0.1 percent decrease in payments to IPFs. While stop-loss payments were intended to be budget neutral, we slightly underestimated the percentage by which we needed to decrease the Federal per diem base rate in the implementation year. Therefore, the aggregate impact of removing the stop-loss provision is a 0.1 percent decrease in payments instead of 0.0 percent. There are distributional effects of these changes among different categories of IPFs. Rural freestanding psychiatric hospitals will receive the largest increases, with rural government hospitals, rural non-profit hospitals, and rural for-profit hospitals each receiving a 0.4 percent increase. Alternatively, psychiatric units with fewer than 12 beds and IPFs located in the Mountain region will receive the largest decrease of 0.7 percent. Column 7 compares our estimates of the changes reflected in this notice for RY 2009, to our estimates of payments for RY 2008 (without these changes). This column reflects all RY 2009 changes relative to RY 2008 (as shown in columns 3 through 6). The average increase for all IPFs is approximately 2.5 percent. This increase includes the effects of the market basket update resulting in a 3.2 percent increase in total RY 2009 payments, a 0.5 percent decrease in RY 2009 payments for the transition blend, and a 0.1 percent decrease in RY 2009 payments for the removal of the stop-loss provision. Overall, the largest payment increase is projected to be among government IPFs. Rural government psychiatric hospitals will receive a 12.1 percent increase and urban government psychiatric hospitals will receive a 10.5 percent increase. In addition, psychiatric hospitals with more than 75 beds will receive a 10.4 percent increase. Psychiatric units with fewer than 12 beds will receive a 2.4 percent decrease. 4. Effect on the Medicare Program Based on actuarial projections resulting from our experience with other PPSs, we estimate that Medicare spending (total Medicare program payments) for IPF services over the next 5 years would be as follows: Table 14.—Estimated Payments Rate year Dollars in millions July 1, 2008 to June 30, 2009 $4,584 July 1, 2009 to June 30, 2010 4,799 July 1, 2010 to June 30, 2011 5,055 July 1, 2011 to June 30, 2012 5,373 July 1, 2012 to June 30, 2013 5,722 These estimates are based on the current estimate of increases in the RPL market basket as follows: • 3.2 percent for RY 2009; • 2.9 percent for RY 2010; • 3.0 percent for RY 2011; • 3.2 percent for RY 2012; and • 3.2 percent for RY 2013. We estimate that there would be a change in fee-for-service Medicare beneficiary enrollment as follows: • −0.3 percent in RY 2009; • 0.2 percent in RY 2010; • 0.5 percent in RY 2011; • 1.5 percent in RY 2012; and • 2.5 percent in RY 2013. 5. Effect on Beneficiaries Under the IPF PPS, IPFs will receive payment based on the average resources consumed by patients for each day. We do not expect changes in the quality of care or access to services for Medicare beneficiaries under the RY 2009 IPF PPS. In fact, we believe that access to IPF services will be enhanced due to the patient and facility level adjustment factors, all of which are intended to adequately reimburse IPFs for expensive cases. Finally, the outlier policy is intended to assist IPFs that experience high-cost cases. C. Alternatives Considered The statute does not specify an update strategy for the IPF PPS and is broadly written to give the Secretary discretion in establishing an update methodology. Therefore, we are updating the IPF PPS similar to the update approach used in other hospital PPSs and as published in the November 15, 2004, final rule. We note that this notice does not initiate any policy changes with regard to the IPF PPS; rather, it simply provides an update to the rates for RY 2009. Therefore, no other options were considered. D. Accounting Statement As required by OMB Circular A-4 (available at: *http://www.whitehouse.gov/omb/circulars/a004/a-4.pdf)* , in Table 15 below, we have prepared an accounting statement showing the classification of the expenditures associated with the provisions of this notice. This table provides our best estimate of the increase in Medicare payments under the IPF PPS as a result of the changes presented in this notice based on the data for 1,669 IPFs in our database. All expenditures are classified as transfers to Medicare providers (that is, IPFs). Table 15.—Accounting Statement: Classification of Estimated Expenditures, From the 2008 IPF PPS RY to the 2009 IPF PPS RY [in Millions] Category Transfers Annualized Monetized Transfers $120. From Whom To Whom? Federal Government To IPFs Medicare Providers. E. Conclusion This notice does not initiate any policy changes with regard to the IPF PPS; rather, it simply provides an update to the rates for RY 2009 using established methodologies. In accordance with the provisions of Executive Order 12866, this rule was previously reviewed by OMB. (Catalog of Federal Domestic Assistance Program No. 93.773, Medicare—Hospital Insurance; and Program No. 93.774, Medicare—Supplementary Medical Insurance Program) Dated: March 14, 2008. Kerry Weems, Acting Administrator, Centers for Medicare & Medicaid Services. Approved: April 4, 2008. Michael O. Leavitt, Secretary. EN07MY08.038 EN07MY08.039 EN07MY08.040 EN07MY08.041 EN07MY08.042 EN07MY08.043 EN07MY08.044 EN07MY08.045 EN07MY08.046 EN07MY08.047 EN07MY08.048 EN07MY08.049 EN07MY08.050 EN07MY08.051 EN07MY08.052 EN07MY08.053 EN07MY08.054 EN07MY08.055 EN07MY08.056 EN07MY08.057 EN07MY08.058 EN07MY08.059 [FR Doc. 08-1213 Filed 5-1-08; 4:00 pm]
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- 15 CFR 930
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- Pub. L. 106-554
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- Pub. L. 102-546
- 106 Stat. 3590
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- 20 USC 6535(c)
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- 34 CFR 79
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- Pub. L. 92-463
- Pub. L. 101-440
- 40 CFR 93.118(e)(4)
- 40 CFR 2
- Pub. L. 104-13
- 47 CFR 76.1618
- 46 CFR 515
- 38 Stat. 721
- Pub. L. 106-113
- Pub. L. 97-248
- 42 CFR 412.428
- Pub. L. 108-173
- 5 CFR 591.207
- 44 USC 35
- Pub. L. 96-354
- Pub. L. 104-4
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